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If Rip Van Winkle had slept for 20 years and woken up today…..

Rip Van Winkle was a character in a Washington Irving short story who went to sleep before the American War of Independence and woke up twenty years later in an independent US of A. A loyal subject of the British Monarch, he went to sleep to run away from his nagging wife, and woke up to find that his wife had died, his friends were nowhere to be seen and the British Monarch was no longer of any import in his land. So he “saw” dramatic change seem to appear “overnight”.

If, instead, he’d gone to sleep at the end of 1989 and woken up this morning, these are some of the changes he would have seen:

Costs of compute power

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A gigabyte of storage


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The Mobile Phone


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Access to the internet/the web


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Windows/The Desktop


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The march of AIDS


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Climate change: The Arctic Icecap


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Just sayin’.

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Posted in Four pillars .


Life in Transit: Happy New Year everyone

Life In Transit

Note: My thanks to Orin Zebest for all the photographs, provided via Flickr on a Creative Commons Attribution Licence. Orin, you’re Ze Best. And I’ve left all your original titles in!.

Note: I had some trouble with the photographs when viewed via the permalink. I’ve reloaded each one from a different “source” and with standardised parameters and it seems to work. Let me know if you have any trouble.

2010: The Year of Platforms

I think 2010 is going to be the Year of Platforms. Not Snake-Oil-as-A-Service. Real honest-to-goodness heavy-lifting platforms. The stuff that makes it possible for everyone to have Everything-As-A-Service.

Some of you think that platforms are passe, so 2007. Some of you think that platforms are cloud-cuckoo-land, to be filed alongside the Paperless Office and the Paperless Loo. To my mind there’s something very William Gibson-ish about platforms: the future’s already here, it’s just unevenly distributed.

In 2010, we will see this distribution become more even. We use platforms every day, it’s just not that obvious to us. A credit card is a platform, as Richard Schmalensee and David Evans pointed out so vividly in Paying With Plastic. An airport is a platform. Facebook is a platform, as is Twitter. As is LinkedIn. If you’re using a smartphone to read this, then you’re probably using a platform: both iPhone as well as Android are platforms. If you’re at a desktop and using Firefox and WordPress, as I am, they’re platforms as well. Amazon.com is a platform, as is Force.com. Ribbit, the reason I spend a good deal of time in San Francisco, is a platform. Each with its own ecosystem. Each working with other platforms in a co-opetitive, almost fractal way.

So just what is a platform? A place. A device. A company. An everyday item. Bits of software. All of the above.

When I say “platform” I mean:

  • something that is a foundation, an enabling environment, upon which others can build things, make things
  • something that exists for a specific purpose (or set of purposes), and which invests in capabilities related to those purposes
  • something that then makes it easy for people to use those capabilities
  • something that does all this in a commercial model that facilitates the creation and development of new products, new services, new markets, new marketplaces
  • something that can coexist with other platforms and ecosystems

Humour me for a minute or two. Imagine what would happen if enterprise IT departments started behaving like the platforms that I defined above. A foundation. An enabling environment. Something that exists for a specific set of capabilities, that executes on those capabilities, that makes it easy for people to use those capabilities, that supports the creation and development of new products and services. You know something? I think many boards would be happy to have an IT department that did just that, that behaved like the platforms defined above.

It’s not just about IT departments. It’s about all shared services. Actually it’s about all services. You see, whenever something gets produced and consumed at the point of production, whenever something cannot be inventoried or “bottled”, there is something quintessentially human about the phenomenon. So we have more to learn from biology than we have from physics, something we’re slowly getting better at. Slowly.

Commuter Service

Dinky Service Station

The importance of trust

Service is a human concept. Human beings concern themselves about all sorts of things above and beyond the “fit-for-purpose-ness” of the service. They care about their personal safety and security, about fairness and equality in the environment around them, about simplicity and convenience of use, about many such things. And they care about the exchange of value taking place, what they have to give up, what they gain for it. Humans want to trust the people who provide them with the services, they want to trust the people who provide the platforms underpinning the services.

In a hierarchical world, with deep vertical integration and end-to-end control, this may have seemed easy. In a networked world all this becomes a lot harder, as vertical integration becomes less feasible, as services become more and more “horizontal”, as end-to-end control becomes a nonsense. In such a context, trust becomes more and more important, a point that Chris Brogan makes eloquently in his book Trust Agents. Let me give an example. People can give me a million reasons why Facebook should be considered “closed” and “evil” and whatever else. But to me Facebook is the place where Dave Morin works, where David Recordon works, where Chris Kelly works. They become the face of Facebook to me, and if I trust them I trust Facebook. I cannot do otherwise. It’s the same with Amazon. Every time I meet Werner Vogels I meet Amazon. Trust agents. If I don’t like something I am free to express it; if enough people express themselves similarly then things change. Customer-driven change, built around trust relationships. That’s the way it is nowadays.

Anything that aspires to be a platform needs to engender this trust. So when you look at “platform APIs” don’t be surprised at what they do at their core. They’re usually about a very small number of things:

  • user directories, adding and removing people, grouping and classification
  • identity, authentication and permissioning
  • service and data inventorying, cataloguing and access
  • publishing of things digital
  • distribution of things digital

Safety First

The need for openness and transparency

Much of this is done to satisfy the security, safety, privacy and confidentiality aspects of human needs. It’s not about control. It’s about what people want. Of course the platforms can do this more openly, more effectively. But we have to remember these are pioneering times for open platforms. Marty Cooper made the first mobile phone call in 1973. Tim Berners-Lee wrote his Web paper in 1989. Software-based open multisided platforms are relatively new in comparison, and they will adapt to achieving the trust levels necessary.

Back to the IT department. One of the reasons people distrusted the IT department was the smoke-and-mirrors black-box nature of the beast. What was not expressed clearly was not understood. What was not understood was not trusted. Back to the trust issue. Do what you say you’re going to do. Do it. Prove you did it.

This requires something somewhat alien to the command-and-control nature of the traditional firm. Openness and transparency.

Cutaway Canyon

Verifiability

That’s why you can find open, accessible and extensive documentation on APIs in places like the Facebook Developer Wiki. But it goes further than that, because trust works in daisy chains. So Facebook have to say “policy” things like “You must not use a user’s session key to make an API call on behalf of another user.”. Why? So that their identification, authentication and permissioning is seen to work. And seen to work verifiably.

Another example. This is what Apple has to say as part of the documentation for the iPhone Dev Center, under Fast Launch, Short Use:

The strength of iPhone OS–based devices is their immediacy. A typical user pulls a device out of a pocket or bag and uses it for a few seconds, or maybe a few minutes, before putting it away again. The user might be taking a phone call, looking up a contact, changing the current song, or getting some piece of information during that time.

In iPhone OS, only one foreground application runs at a time. This means that every time the user taps your application’s icon on the Home screen, your application must launch and initialize itself quickly to minimize the delay. If your application takes a long time to launch, the user may be less inclined to use it.

In addition to launching quickly, your application must be prepared to exit quickly too. Whenever the user leaves the context of your application, whether by pressing the Home button or by using a feature that opens content in another application, iPhone OS tells your application to quit. At that time, you need to save any unsaved changes to disk and exit as quickly as possible. If your application takes more than 5 seconds to quit, the system may terminate it outright.

So Apple take care of the user experience through the policies and guidelines of their platform.

As I said before, it’s not just about the IT department, I used them as an example. Every firm is a platform. Why stop at firms? This thing is fractal. Aggregations of firms, entire markets, are platforms.

Even governments are platforms. Platforms that identify, authenticate and permission people to use products and services, that allow them to publish services and data, to subscribe to services and data, in a controlled manner. Platforms that allow people to build new services simply and efficiently, that allow markets to form and be formed.

Yes, governments too are platforms. Something that Tim O’Reilly has been driving for quite some time, and something that the current administration appears to be taking seriously. But open government is no simple matter, even with all the heart and will in place. We use terms like collaboration and teamwork and innovation freely, but making them work in a government context is easier said than done.

Model Engineering Ingenuity

Balancing Buddies

Smaller Than Small

Lumber Mill in Miniature

Small pieces loosely joined

Yesterday my daughter wanted me to buy something from AllPosters,, and when I did I was faced with a variety of payment options. Not just the traditional Visa or Mastercard. But stuff like PayPal and Amazon Payments. Sometime before that I was using InstaPaper to bookmark stuff I wanted to read later, and I watched some stuff on Boxee. In both cases I think I used Facebook Connect. Some of you have heard me speak about using last.fm and audioscrobbler and FoxyTunes and TwittyTunes and Firefox and Twitter in a simple chain before.

It’s where things are going. Sets of small horizontal services doing simple but important things, with the customer having a level of choice at each stage rather than being faced with lock-in. Platforms have to be about choice, no one wants to learn the AOL way again. Walled gardens do a prison make.

It’s not enough to be open, the platforms have to focus on open innovation. As the saying goes, none of us is as smart as all of us. Whatever set we belong to, the aggregate of smart people outside the set will usually overwhelm the aggregate of smart people within the set. Innovation takes place most effectively at the edge where two well-bounded domains meet, and collaboration becomes even more important as a result.

I guess all of this strikes some of you as utopian and rose-tinted and overly optimistic, but I urge you to look for yourself. Think about mail. Think about publishing. About “sharing”. About bookmarking. About paying. About watching. About reading. In a digital context you have choice for every one of these activities. Sure there are dominant market leaders. And sure there is immense resistance to their dominance. Monocultures will not be tolerated, not by the public, not by the regulators, not by the competitors. It’s only a matter of time.

Which means that interoperability and standards become very important.

Shipping Container Junction

Interchange

Switchboard Railyard

Interoperability, standardisation and convergence

It has taken a long time for people to figure out that the data centre and the exchange are like Kipling’s Judy O’Grady and the Colonel’s Lady, sisters under the skin. The very concept of cloud computing, and of cloud services, has been a long time in the making. And we’re going to need a lot of work done to get interoperability right, to get the standards right. And the standards aren’t just about formats and protocols, they’re about the data. Which is why microformats are going to grow in importance, why Linked Data will become critical, why the Web Science Trust set up by Tim Berners-Lee is such an exciting proposition.

As all this takes place, we have to keep reminding ourselves of the biggest change that has taken place as a result of the Web. The power of Us.

Graffiti Yard

Doc's Diner and Saloon

Customer power and rights

Anybody can build a digital bookstore, but they can’t get millions of reviews overnight. Anyone can build a photo site, but not get a bazillion tags overnight. Anyone can build an auction house, but not get millions of buyer and seller ratings. Anyone can build a social network, but not get yottabytes of user-generated content stored with them. In today’s world, 20 million is a public beta and 500 million the table stakes for entry into global marketplaces. People will come where they can deposit their data easily and take it out as easily. They know that they are instrumental in creating value. So initiatives like Doc Searls’ VRM will become very important. [Sometimes people get hung up about the name. Don't. The concept is important, not the name.]

Warehouse for Mountains

Scale and its implications


As I said before, all this is taking place at scales where we’ve never operated before, or even conceived of operating before. Skype, Apple, Facebook, Amazon, PayPal, they’re all showing us scale in a way we’ve never seen before. But up to now much of the scale has been achieved in some sort of walled garden. That’s going to change. Google. What we’re seeing with OpenSocial and Android is not to be taken lightly, what we’re seeing with Facebook Connect and Amazon Web Services is going to get bigger and bigger.

Platform-based scale has its effects on cost points and price points, on coverage and availability. And the changes have already taken place. It takes nearly nine minutes for light from the sun to reach us. Something similar is happening with platforms. Platforms beget scale. And ecosystems.

IT departments will have a choice. Firms will have a choice. Governments will have a choice. To paraphrase Gandhi, they can be the change they want to see. Or fossilise watching.

Health. Education. Welfare. Communications. Transportation. Welcome to the world of platforms. Or…..

Sidelined

End of The Line

Back to the old IT department. Creating and operating an enabling environment. Handling the directories and catalogues and relationships. In some cases operating Apple-like and “certifying” the applications, in other cases taking a laissez faire approach like Facebook does. Leaving the choice of device to the individual. Letting that individual select the services she wants. Relaxed about the hosting of those services, making that the responsibility of the application provider. Focusing on doing the core things well, in an open multisided marketplace.

So what’s wrong with the picture?

Folds In The Sky

Yup, the sky’s got a fold in it.

If we don’t get the cloud computing environment right, we will hold all this up for a few more years. Which would be a terrible waste. A waste of energy, of scarce resource, of money, of time. Of everything.

Platforms are the way forward. Platforms can and will happen. Platforms are happening. We just have to make sure that the infrastructure for the platforms is done right. Infrastructure in terms of compute cycles, storage and bandwidth. Infrastructure in terms of interoperability protocols, standards and guidelines. Infrastructure in terms of duties and rights and regulations. Infrastructure in terms of sustainability and affordability.

If I had to choose one word for 2010 it would be Stewardship.

Stewardship made possible by open platforms on reliable infrastructure.

Have a great 2010, everyone. Especially if you got this far reading this post.

My thanks again to Orin Zebest for all the photographs, provided via Flickr on a Creative Commons Attribution Licence. Orin, you’re Ze Best.

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Posted in Four pillars .


The moving finger writes ….

The Moving Finger writes; and, having writ,
Moves on: nor all thy Piety nor Wit
Shall lure it back to cancel half a Line,
Nor all thy Tears wash out a Word of it.

Omar Khayyam

omar_khayyam

Remember those lines? Did you ever wonder what it would feel like to have a moving finger that writes?

And today I know how it feels. Because today I bought Dan Bricklin’s Note Taker.

A delightful and slightly obsessive-compulsive little application, letting you take simple notes quickly and efficiently on to your iPhone. No mess, no fuss.

And, unlike Omar Khayyam’s Moving Finger, this one can be lured back To cancel half A Line. There’s an erase function.

Easy to use, easy to share what you write. Dan, well done. [Disclaimer: I know Dan and count him amongst my friends.]

IMG_0002

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Posted in Innovation.

Tagged with , , .


Not enough joy

An old colleague, Andrew Yeomans, reminded me of this recent piece in Gizmodo, looking at digital music revenues for punk-pop band Too Much Joy.

Reflections on an industry screaming of incumbent inertia, lackadaisical about their figures and the meaning of those figures.

Lackadaisical where it hurts: in the income streams that trickle towards the artists. You know, the creative people.

The figures speak for themselves.

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Posted in DRM and IPR, Music.


Thinking about food and music and climate change

I think about food. A lot. In fact I’m perennially hungry, have been that way ever since I can remember. So it should come as no surprise that every now and then, I try and view things from the perspective of food.

Take music for example. Recorded music. Music that has been bottled or canned or preserved.

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The ability to preserve music in this form is fairly recent in human history. And without this ability, the whole argument about downloads and ripping and  format transformation rights and I don’t know what else falls by the wayside.

So when I look at this diagram, and read this report, I begin to wonder. Incidentally, there’s a worthwhile series of posts on the subject here and here, dealing, for example, with the winner-takes-all bias in some of this.

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I know how I feel about preserved food. About preservatives in food. About additives and e-numbers and what-have-you. I know how I insist on using fresh herbs and spices when I cook, even though it takes longer and it’s more expensive.  I know how I dislike frozen food, how much I dislike frozen food. I will not knowingly eat something that has been microwaved if I can avoid it. These things I know.

There was a time when there was no such thing as frozen food. In the history of food the ability to freeze food and reheat later is fairly recent.

There is a cost to freezing and transporting and heating frozen food. That cost will soon become more apparent to people, as awareness of carbon footprint in the food transportation and processing business grows. And more people will start eating local produce again.

And maybe we’re going to see something similar about music and film and sport. If this whole DRM and downloads and intellectual property rights debate continues to get out of hand, criminalising entire generations and seeking to corrupt and destroy the value of the internet, then we’re going to see a revolution.

We will see a renaissance of live music, of live performances, of live sport. Local teams supported. Local farmers supported. Local playwrights and poets and authors supported.

We will see a renaissance of travelling bands, of authors and poets on roadshows reading their own works.

We will see a renaissance of people paying to see artists perform, rather than paying for the right to perhaps maybe one day hear something recorded, canned and preserved, something they have to climb DRM Everest to hear, and even then it may not be possible.

DRMers and dreamers. Which one are you?

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Posted in DRM and IPR, Food, Music, Stupidity.


Hauling bits around

I’ve probably known Bob Frankston for far too long. Actually I don’t think that’s possible; along with Dan Bricklin, he has been a fantastic foil, sounding board and mentor over the years. My trips to Boston would not be the same without my meetings with the two of them.

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This particular post, however, is heavily influenced by discussions I’ve had with Bob, who is the only man I know completely capable of interrupting himself, and doing so with panache and flair.

Of late I’ve been having some interesting experiences with Twitter, particularly in the context of being able to acquire things remotely and getting them sent to me.

First off, some weeks ago, I was trying to source a hard-to-get CD. I have this strange fondness for Canadian folk/rock, the consequence of growing up at a time (early 1970s) and a place (Calcutta) when Joni Mitchell, Neil Young, Gordon Lightfoot, Leonard Cohen and The Band were part of every respectable music listener’s staple diet.

With that sort of upbringing, when I read about a new star on the horizon, Taylor Mitchell, I planned to listen to her. After hearing a couple of songs on her MySpace site, I tried to buy her album, but it was not available online anywhere. Then I found out, only a few days later, that she’d died, in very tragic circumstances.[Please do consider contributing to her memorial fund, which you can do here.]

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Now I was even more determined to acquire her CD and listen to it, my own way of paying homage to her undoubted talent. But I was in Windsor, UK and the only shops that sold it were in College St in Toronto. So I tweeted it. Were any of my Twitter friends in Toronto that day? Were they prepared to do me a big favour and sacrifice time and effort to get me the CD?

Yes. Unbelievable, but it happened. Someone I only knew via Twitter, a New York resident, was in Toronto that day, saw my tweet, went to the shop, bought the last copy. And managed to get it to someone else who worked 100 yards from me in London.

More recently, some weeks ago, I was thinking and praying about my godson Noah. I was going to see him just before Christmas, and I wanted to get him something special. I’d already spoken to his mother, and I knew that he was in a creative Lego mood. But which kit? And what could I do to make it memorable and different?

The answer came serendipitously. I was scheduled to have dinner with Cory Doctorow and his wife Alice, and I was idly catching up on his Boing Boing writings while waiting for them at Saf last week. [Excellent company, excellent restaurant]. And then I saw this:

LEGO-for-MUJI-Paper-and-Block-Sets-06

So I read the story. And I knew I’d found the perfect present. But could I get it anywhere online? Nope. Only available bricks and mortar in Japan.

I tried for a few days, and then yesterday I tweeted my need. Anyone in Japan right now and likely to get back to the UK before 17th December and willing to acquire the Muji-LEGO mashup? Answer came there one. And wonderfully, magically, the present is now winging its way to me.

These are just instances. What really matters is the emerging business models. how people are innovating in this space. Over the last fortnight or so I’ve learnt about a couple of examples:

Lug-it, a cloud-based physical haulage system: “a P2P package delivery system on top of your extended social network”

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SendSocial, which promises to let you “send anything, anywhere, without an address”.

logoWhich brings me all the way back to Bob Frankston and the reason for this post. Bob’s always drilled into my head the concept that the addresses and numbers we use should never be considered routing; instead, I should consider such things to be nothing more than hints, clues as to the best way to get something to someone. Reading about SendSocial reminded me about his dicta, with their focus on getting things from person to person without an address.

Similarly, seeing what the people at lug-it were doing also filled me with glee. There was something so tellingly small-world-experiment about it, something intrinsically valuable about social networks and their P2P characteristics.

So now I have cause to think. About what this means for social networks. About what this means for digital communications.

And I have cause to celebrate. About the beauty and simplicity of the ideas that are blossoming in this space. Lug-it, SendSocial, I hope you succeed.

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Posted in Social software, Twitter.


Numbers of Mass Distraction

2009 Is Record Year For UK Singles Sales
Innovation boosts record label income as licensing and rights deals generate £195m in 2008
New business models boost income for British record labels: licensing and multiple rights deals net £122m in 2007
New BPI Stats show strength of digital music

Just some of the headlines from a group of people not known for their progressive thinking when it comes to music and downloads and filesharing.

But let’s not look at the headlines. Let’s look at the facts:

2009 has already become the biggest ever year for UK singles with more than 117m sold to date, recorded music body the BPI today announced.

“Sales of single tracks in 2009 have now surpassed the previous all-time record of 115.1m, set in 2008. The total of 117m has been reached with 10 weeks of trading, including the vital Christmas period, still to run in 2009.

“That singles have hit these heights while there are still more than a billion illegal downloads every year in the UK is testimony to the quality of releases this year and the vibrancy of the UK download market.  Consumers are responding to the value and innovation offered by the legal services and these new figures show how the market could explode if Government acts to tackle illegal peer-to-peer filesharing.”

“The UK Top 40 is now almost entirely comprised of digital singles. During this year, 98.6% of all singles have been retailed in digital formats.   More than 389.2m single track downloads have now been sold in the UK since the launch of the first mainstream online stores in 2004.

All from that well-known friend of illegal downloaders and filesharers, BPI. I have to consider the statements to be largely factual since they have no incentive to report these particular numbers falsely.

It’s not just about digital sales either. The Beatles are reported to have sold 2.25 million albums in two weeks recently. Again, data with some backing.

I like numbers. But not when they’re Numbers of Mass Distraction (NMD). Not when 136 people can become 7 million people.

Why should I care what numbers are bandied about in the press? Why should I care when someone says “Only 1 in 20 downloads in the UK is legal” or words to that effect?

Well, maybe the excerpt from Wikipedia on WMD will give you some idea why:

2009-10-29_2343

When “tentative” numbers get repeated often enough, even if they get corrected later, people tend to remember the original “tentatives”. That’s what the research shows. And by the way, when I refer to numbers or research, I try and refer to the source openly and transparently.

The ITU projects the total number of broadband connections in the UK to be 18.4m by the end of this year. Let’s take that number for a start.

BPI then says that there are already a minimum of 117m legal downloads this year, with 20% of the year to go. Without even going for seasonal adjustment to allow for Christmas, let’s take a worst-case legal download total for 2009 to be 150m or thereabouts.

If we then take the Mandelson pronouncement that only one in 20 downloads is legal, that would assume that 2009 will see 3 billion downloads in the UK. There’s been a similar pronouncement that we have 7 million illegal downloaders in the UK, which was the previous NMD or Number of Mass Distraction.

So let’s try and see whether these numbers look sane, smell right. 3 billion downloads represents 163 downloads per broadband connection per year, or one illegal download every two and a quarter days. Do you know anyone who buys a single every other day? Would you believe it if you were told there were people who did that?

Hang on a second. Why should I use the 18.4 million ITU overall broadband lines in the UK number? What happens if I use the 7 million NMD number? Now I have to believe that there are seven million people in the UK who download 429 singles each illegally every year, or 1.17 every day.

The 117m figure is solid. There is money to show for it. Till receipts.

The 18.4 million is solid. There is money to show for it. Telco billing records.

The 3 billion figure is an estimate based on digits (of the finger kind) whirling through the atmosphere.

The 7 million figure is an estimate based on conversations with 136 people.

If the 7 million figure is correct, then it means that nearly two in five people with broadband in the UK are illegal downloaders. People in the UK reading this post will know other people in the UK with broadband connections. Does this seem reasonable?

If the 7 million figure is wrong, do you think it is wrong on the low side or the high side? Imagine what that does to the daily illegal downloads that 40% of your friends now have to achieve as a NMD target.

I tend to think that maybe, just maybe, the 7 million number is a tad on the high side.

So now let’s move to the other number, 3 billion. If we assume 61.4m people in the UK (Source: National Statistics Online) then we’re talking about one illegal download every week or so for every single person in this country. Does that feel reasonable to you?

Let’s say the number of illegal downloads is not 20 times the number of legal downloads. Would you think the right number is higher or lower?

I tend to think that maybe, just maybe, the 20 times number is a tad on the high side.

Numbers can be so distracting. But let me not paint a gloomy picture. Taking the statements of the BPI alone and the events of the past year or so:

  • There is evidence that the number of legal downloads sold is sharply on the increase.
  • There is evidence that new business models are emerging, from iTunes through to OneBox, from last.fm through to spotify and we7.
  • There is evidence that people in the UK care about their digital futures.

KeepOnTruckin'

My thanks to Robert Crumb for not copyrighting this image in 1968.

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Posted in Four pillars .

Tagged with , , , , .


Musing about downloads in the UK

Some of you may have noticed that I like my cricket. And one of the things I like about cricket is the cricket story; the history of cricket is festooned with anecdotes and tales and apocrypha, filling a very large number of books. As with most other stories, over time, these stories gain a life of their own, with a series of embellishments and accoutrements; this is particularly noticeable when the story is about  larger-than-life characters, something that cricket’s cup runneth over with.

One such story involves one of the largest of the larger-than-life characters: Freddie Trueman.

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The story goes like this:

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Trueman bowls. Batsman is trapped plumb LBW. Trueman appeals. Not out.

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Next ball. Trueman ever-so-slightly irritated. Trueman bowls. Audible snick, ball deflects and sails upward, caught behind. Trueman appeals. Not out.

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Third ball. Trueman a little more irritated now. Trueman bowls. Through the gate, stumps spreadeagled, middle stump uprooted and cartwheeling. Trueman turns to the umpire and says with a wry smile “We nearly had him that time, didn’t we?”

We nearly had him that time, didn’t we?

Actually that’s the way I feel about recent discussions to do with downloads and filesharing in the UK.

First we had the Digital Britain Report. Lots of hard work, lots of interviews, lots of people given a chance to express their views and opinions.

The report had an entire chapter on Creative Industries in the Digital World. The chapter headings were Towards a New Framework for Content; Protecting and Rewarding Creativity; The Legislative Proposals; Legislation to Reduce Unlawful Peer-to-Peer Filesharing; Other Rights Issues: Fair Use; Modernising Licensing; Intellectual Property Office’s Copyright Strategy; Orphan Works;  Matched Penalties for Physical and Online Copyright Infringement; A Role for Rights-Based Funding Mechanisms; Interactive Content: Converting Creativity into Value; Digital Test Beds to Trial New Products and Business Models; Extending Existing Interventions to Interactive Content; Virtual Worlds; Digital Britain: Film, Cinema and Literature; Literature; Case Study: Retirees.

From that line-up, you would think that serious consideration had been given to most aspects of what is essentially a complex subject. The fact that we’re entering a new world, with new products, services and business models. The case for change. The legislative implications of that change, needing to reward creators while protecting the principle of fair use. And so on and so forth.

When it comes to legislation to reduce unlawful peer-to-peer filesharing, the report had this to say:

The key elements of what we are proposing to do are:

  • Ofcom will be placed under a duty to take steps aimed at reducing online copyright infringement. Specifically they will be required to place obligations on ISPs to require them:
  • to notify alleged infringers of rights (subject to reasonable levels of proof from rights-holders) that their conduct is unlawful; and
  • to collect anonymised information on serious repeat infringers (derived from their notification activities), to be made available to rights-holders together with personal details on receipt of a court order.

Ofcom will also be given the power to specify, by Statutory Instrument, other conditions to be imposed on ISPs aimed at preventing, deterring or reducing online copyright infringement, such as:

  • Blocking (Site, IP, URL);
  • Protocol blocking;
  • Port blocking;
  • Bandwidth capping (capping the speed of a subscriber’s Internet connection and/or capping the volume of data traffic which a subscriber can access);
  • Bandwidth shaping (limiting the speed of a subscriber’s access to selected protocols/services and/or capping the volume of data to selected protocols/services); and
  • Content identification and filtering.

This power would be triggered if the notification process has not been successful after a year in reducing infringement by 70% of the number of people notified.

Remember, this was the outcome of a long period of formal consultation with people from all parts of the industries involved. Seemed a decent piece of work. And then what happened?

Then, the Secretary of State for Business, Inn0vation and Skills, announced plans to discard the proposals in the Report, and rather than go through a year-long trial period with non-technical measures, accelerate the move towards technical measures. Measures that ISPs have been united in opposing, for a plethora of reasons: rationale, lack of fairness, affordability and effectiveness being the main ones.

I thought to myself, when I read the Digital Britain Report, the hawks were plumb leg-before-wicket. They were out.

But no, the Secretary of State decided “Not Out”.

A little while later, I read another official document. This time it was the All-Party Parliamentary Communications Group, reporting on an Inquiry called “Can we keep our hands off the Net?”

This was another duly appointed committee going through its orderly business, seeking to answer five questions:

#1 Can we distinguish circumstances when ISPs should be forced to act to deal with some type of bad traffic? When should we insist that ISPs should not be forced into dealing with a problem, and that the solution must be found elsewhere?

#2 Should the Government be intervening over behavioural advertising services, either to encourage or discourage their deployment; or is this entirely a matter for individual users, ISPs and websites?

#3 Is there a need for new initiatives to deal with online privacy, and if so, what should be done?

#4 Is the current global approach to dealing with child sexual abuse images working effectively? If not, then how should it be improved?

#5 Who should be paying for the transmission of Internet traffic? Would it be appropriate to enshrine any of the various notions of Network Neutrality in statute?

There were ten conclusions regarding Question 1. Conclusions of an All-Party Committee duly set up to look at this issue. And what did they say? Here are some extracts:

We believe that voluntary arrangements would be the best way of tackling this issue and
note with approval the initiative which is already under way in Australia. Accordingly,
we recommend that UK ISPs, through Ofcom, ISPA or another appropriate
organisation, immediately start the process of agreeing a voluntary code for
detection of, and effective dealing with, malware infected machines in the UK.

2. If this voluntary approach fails to yield results in a timely manner, then we further
recommend that Ofcom unilaterally create such a code, and impose it upon the UK
ISP industry on a statutory basis.

We conclude that much of the problem with illegal sharing of copyrighted material
has been caused by the rightsholders, and the music industry in particular, being
far too slow in getting their act together and making popular legal alternatives
available.

We do not believe that disconnecting end users is in the slightest bit consistent with
policies that attempt to promote eGovernment, and we recommend that this
approach to dealing with illegal file-sharing should not be further considered.

We think that it is inappropriate to make policy choices in the UK when policy
options are still to be agreed by the EU Commission and EU Parliament in their
negotiations over the “Telecoms Package”. We recommend that the Government
terminate their current policy-making process, and restart it with a new
consultation once the EU has made its decisions.

Let me repeat one of those conclusions. ” We conclude that much of the problem with illegal sharing of copyrighted material has been caused by the rightsholders, and the music industry in particular, being far too slow in getting their act together and making popular legal alternatives available.

So this time I thought to myself, definitely caught behind. But the Secretary of State for Business, Innovation and Skills had other ideas.

He’s announced that formal three-strikes legislation will be in place for April 2010.

Not out.

But it isn’t time for us to give up hope as yet, despite the presidentially non-consultative hide-head-in-sand approaches in evidence. Very recently, I saw the possibility of help from a most unlikely quarter: Disney.

Here’s a quote from the CEO of Disney:

The business model that underpins the movie business is changing,” Bob Iger told the Financial Times in an interview published on Monday. “If we don’t adapt to the change there won’t be a business — that’s my exhortation to my team.”

The newspaper said Iger advocated a fundamental rethink of the costs associated with movie production and marketing.

And I thought to myself. What a shame. Britain could have led, should have led, the world in a complete rethink of the principles, practices and legislation required for a thriving digital world. Instead, we’re about to take ten steps back while Disney, of all people, move forward.

Good for Bob Iger. Good for Disney. Someone has to change.

And, as I saw the wicket spreadeagling, I turned to the Secretary of State and said, wryly, “Nearly had him that time”.

Credits: Trueman photo hanoiswans; leg-before-wicket photo Wikimedia Commons; caught behind photo cricketweb.net; wicket spreadeagled story tribuneindia.com.

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Musing about culture and customers and choice: the eBaying of “content”

I have the privilege of spending time with many startups, in a variety of guises: as incubator, as advisor, as investor, as chairman, as well-wisher, friend and supporter. The startups differ widely and wildly: they range in size from a handful of people to hundreds;  they have annual burn rates in the thousands and in the millions; they have different strategies and different ways of executing them; the motives that drive them are different, the things that keep them awake at night differ as well. They make different types of products and services, for different markets, with different social and economic aims and consequences.

But they share one thing: They keep asking themselves the same set of questions:  “What does the customer want? What will she do with our product or service, how will it be used? Why will she come to us for it? And what will she pay for it?”

This isn’t rocket science; it isn’t even illuminated startup management. It’s Customer 101. So we speak a lot about customer choice, and, much of the time, we do something about it.

When it comes to culture, however, we seem to forget. Which is strange, because the changes that are taking place are at their most severe in the cultural arena. Changes that are taking place to reverse the developments of the last fifty, maybe even hundred years in a number of key aspects of culture.

  • These changes are simple yet far-reaching:
  • Consumption to Participation: The television and broadcast ages brought the ability for people to consume events globally, but it took the tools of today to let them participate globally. Obama’s campaign is a classic example. There were people all over the US, even in the “red” states, who contributed to his campaign, who participated in the discussions. Yes, there were people in Europe who tried to donate money into Obama’s campaign and failed for good legal reasons; but they could still engage.
  • One Place to Many Places: You couldn’t be part of an orchestra unless you went to where the orchestra was. Now the Mountain comes to many Mahomets, the orchestra comes to you, there are many examples of distributed music ensembles.
  • One Time to Any Time: Gone are the days when Super Bowl Monday was a nightmare for young men in Europe, who had to stay up into the early hours of Monday if they wanted to make an “evening” of it. Now they can still do that, but they don’t have to. They can hold their party on Monday night if they want. Not everything is streamed live, or needs to be. YouTube passed a billion hits a day and doesn’t stream anything live.
  • Hit Culture to Long Tail: When costs of warehousing and distribution were a significant proportion of overall cost, it made sense to reduce the number of items in inventory. As that changed the size of “inventory” available changed dramatically. So for example I buy many books from Amazon or Abebooks that aren’t in their top 10,000 sellers. Many of these books would be impossible to get via a traditional bookshop. The same goes for music and video. It doesn’t matter how many studies I see that seek to pooh-pooh Chris Anderson’s thesis, I look to what I do and what I can do. What I can do is a lot more than what I could do, because my transaction costs for “long-tail” items have reduced sharply.
  • Using to Making: The proliferation and ubiquitous availability of tools that are themselves participatory by nature has changed the basis of participation. Think of the number of video cameras you saw in the 1960s, the 1970s, the 1980s and now. Just look at the photographs, videos and notes that make it on to Facebook. Soon, Facebook will be a country whose population exceeds that of every country bar India and China. A country where everyone has feedback loops to the mother ship. Say what you like about the Borg, but don’t underestimate it. A critical change is taking place there. A country with more photo uploads than Flickr, more games players than World of Warcraft, more people than most of Europe or America. And global in reach. The stuff that gets uploaded to Facebook is not “copies of originals” but often mutations. Think of the number of video cameras you saw in the 1960s, the 1970s, the 1980s and now. More on this later.
  • Scarce to Abundant: One of the most fundamental changes is that of the internet as a copy and remix machine, making artificial scarcity something very difficult, something almost impossible. The very concept of artificial scarcity is relatively new, born of the consumption mindset driven by mass marketing. Things analog were, or at least could be, scarce. [If they weren't scarce then you could hoard them or cartelise in order to make them seem scarce]. Things digital are fundamentally infinite in abundance, since the cost of reproduction and transmission is trivial.
  • Forced to Voluntary: Payment for cultural services has always changed from age to age; sometimes it’s been about patronage; sometimes it’s been about passing the hat around; sometimes it’s been about levies and fees, as with library schemes and radio broadcasting. The fixed purchase scheme is relatively recent in comparison and is in the process of being rendered obsolete. People will now pay what they are willing to pay, even for ostensibly free things.

I could go on, but won’t. The point is simple. We’re moving from an analog world to a digital world. That means that many things change. The most important change is that in a world of abundance, the buyer sets the price. The customer is in control.

The story is one of empowerment and inclusion, of enfranchisement. And one of the key shifts that is taking place is in the almost-random repurposing of things past. For example, take the concept of “literal videos“, as exemplified by Dustin McLean. What a lovely idea. Take an old video, keep to the original pictures and backing music, rewrite the lyrics to reflect what’s actually happening on the video rather than in the song. My particular favourite is the literal video version of Bonnie Tyler’s Total Eclipse of the Heart. My thanks to Dave Morin, who pointed it out to me via Facebook.

I keep trying to tell people that while the internet may have been discovered or even invented by Al Gore, it was definitely not invented exclusively as a new distribution model for Hollywood or its musical cater-cousin. Who could have predicted that someone would do this to Carl Sagan and to Stephen Hawking.

People are creating value from things long forgotten, long abandoned, long deemed worthless.

There is an eBaying of content going on, as people repurpose stuff they find in the digital garage and attic that is the Web.

Some people will become the new scavengers, looking through the detritus of the web for things to reuse and remix. Some will build the places where they look, the tools they look with: the Bit Torrents and Pirate Bays of this world. Some will do the remixing, as in the Dustin McLeans. Some will buy, but not all: there is already a plethora of data points about freemium models and conversion rates.

If we allow this to happen, then new revenue streams will begin to emerge, new business models will come about.

If we allow this to happen, then we can participate in these new revenue streams and models.

If we try to prevent it from happening, we will fail. And therefore not participate in the new revenue streams and models.

The customer now has choice.

And we have a choice. To be on the customer’s side. Or not.

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Musing gently about choice in the enterprise

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[Photo credits: guitars: fotobicchio and shoes: Orin Zebest]

For some time now, phrases like “the customer’s in control” have been floating around the marketplace, yet “enterprise people” haven’t taken a blind bit of notice. You can’t expect them to. Many of them can’t understand what choice means in the context of the services they receive. And what they don’t experience they can’t express to others.

But it’s all changing, and changing fast. As consumerisation drives innovation from the consumer to the enterprise, and as the millenial generation enter the workforce, these changes are speeding up. Which is a good thing. Why? I shall come to it.

We start with the device, the “desktop”. Since the dawn of time the device has been under the control of the IT department: hatches battened, everything that doesn’t move painted, everything that does move shot down and then saluted in full funeral gear. [You will only write in company ledgers using company pens.] IT guys should have learnt from telco guys, who lost control of the device years ago. But they didn’t, so they have it all to do. For the millenials, their devices are more than just mechanisms of input to corporate systems; they double up as phones, as photo albums, as music systems, even as fashion statements.

But it’s not too bad; many firms are beginning to understand this, and the concept of the lockdown desktop is weakening.

Beyond the desktop we have applications and services. The historical model within the enterprise has been to create a “standard build” and then impose that one-size-fits-all on everyone. If you were lucky you had three or four builds to choose from, but even that was rare. So what happened? Nature abhors a vacuum. Water finds its own level. In most enterprises, it was only a matter of time before people found ways of subverting the system, playing chicken with those that would stop them. [You can't park here! Let's be having you now]. First there were policy-based attempts at control [thou shalt not ...]; then there were attempts to disable input drives and removable media; but with the proliferation of laptops and mobile working all this became unsustainable. [But they still tried, valiantly, to stop the variations].

What do the millenials know? They know Facebook. They know the iPhone. They choose the apps.

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They choose the apps they need to do their jobs. Not the apps they get given by someone who hasn’t done their jobs.

It doesn’t stop with the apps. They also choose who or what they want to hear from, as in Twitter or Friendfeed or Facebook News Feed, and not as in e-mail. Who or what they want to hear on the “radio”, as in spotify or last.fm. Who or what they want to read, to watch, to see.

What does this have to do with the enterprise? Everything. As the millenials continue to enter the workforce, these are their expectations and values. We’ve spoken about it for a while now, but it’s actually happening. If you care to look.

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The more intriguing questions of choice come up when you look at how tasks and resources get allocated to each other within an enterprise. Firms exist at least partly because they serve to reduce transaction costs. They could borrow capital cheaply, obtain global reach and scale, attract and retain staff by the provision of pay and benefits. At least that was the theory; over the years those advantages have dwindled: enterprise credit ratings aren’t what they used to be, the internet lowers the barrier for global reach and scale, security of tenure is no longer to be assumed and benefits sometimes  become millstones around legacy operations. So yes, firms are changing.

Despite all that change, some things haven’t changed. Management structures exist to define and agree objectives, to prioritise activities in the context of those objectives, to allocate scarce resources to the completion of those objectives, to monitor feedback on performance and to intervene when and where appropriate, to fix problems, overcome obstacles, resolve conflicts.

Maybe some of that is now changing as well. My father had one job. By the time I die I will expect to have had seven. And maybe my son will have seven jobs …. at the same time. The contract of employment is under stress and will change. But not immediately.

What may change sooner is the way tasks and resources meet each other:

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The “exchange” concept is spreading everywhere, a place where “buyers” and “sellers” are able to discover each other efficiently, particularly with the Web. Betfair is an exchange.  Match.com is an exchange, as is SeatWave or even SchoolOfEverything (disclosure: I’m chairman there). The model’s not new, what’s different is the ease with which the model can be applied universally.

So it’s not difficult to visualise a time when people at work pick jobs to be done, scanning their smart phones to see what needs doing, reading services they subscribe to in order to make those decisions.

People choosing what they do, when and how they do it, where they do it, what services and tools they need to do it, what devices they use. All possible. All being done now. But not holistically across the enterprise anywhere.

For that we need to architect our services differently. Which is where outside-in design comes in, designing for the customer, designing to provide that customer with choice. At a level of abstraction, everyone’s a customer. Your actual customers. Your trading partners. Your supply chain. And your staff.

The customer’s in control, as Esther Dyson used to say.

A coda: One of the choices we have to provide is the no-choice choice, where we make decisions on behalf of people who don’t want to make them. Barry Schwartz’s The Paradox of Choice is a good read if you want to go down that particular road. I remember how disquieting it was for me to visit a supermarket for the first time 30 years ago. I was used to walking up to a corner shop which was little more than an overstocked hole in the wall with a man sitting in it surrounded by stuff for sale. And suddenly I had an aisle full of ….toothpaste….

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[Photo courtesy the New York Times].

So one of the choices we have to provide people is the “complete default”. We’ll choose for you if you want us to.

Choices. As Yogi Berra said, If you see a fork in the road, take it.

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