Musing gently about choice in the enterprise

2947240629_288829bfaa

114430223_2eed0218b4

[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.

2009-10-01_0508

2009-10-01_1223

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.

2009-10-01_2231

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:

2009-10-01_2241

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….

short.span

[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.

Swiftly going West: Digital parody comes of age

kanye_swift_mashup_main

I know my readership is “old” but most of you are not as old as I am. So that means you’re more than likely to have heard about the Kanye West/Taylor Swift incident a few days ago. I heard about it, found it at least mildly distasteful, despite Kanye’s apology; I was therefore glad to hear about Beyonce’s touch of class later.

But that’s not the point of this post. Why would I write about two people I don’t listen to, on a programme I don’t watch, and whose lives I have no interest in? Simple. I write because of this video:

2009-09-17_2240

Chris Messina tweeted and alerted me to this, a mash-up between Kanye West and Taylor Swift.

Stop there, just for a second. Shut your eyes and imagine. Imagine what will happen if the video goes viral. So-called rights holders crawling out of their shells and demanding recompense, when none is called for in a sensible copyright regime. Am I being sensationalist? I don’t think so. Just take a look at this article, brought to my attention by friend and colleague Kevin Marks.

Experiencing things by watching and hearing and reading. Learning from those experiences. Borrowing from the experiences you have. Letting your imagination run rampant and riotous. Using that imagination to praise, to teach, to lampoon, to savour alone, to share with all.

We have to allow the Matt Kammerers of this world to do their thing. Sampling from here and there in order to make a new thing. A new thing. Copyright law used to be reasonable for centuries, despite attempts to mutate it at critical stages: the inventions of the press, the radio, the copier, the tape, even the CD. Since the dawn of the digital age, attempts to enshrine stupidity in law have increased. Much of what passed for creativity and comment and parody and satire may not be possible in the future if the law is allowed to become more of an ass.

The current battles are really not about downloading or filesharing or mashing up. There is far too much evidence that the downloaders, filesharers and mashup makers are themselves the ones behind the massive growth in digital sales.

The battles have been about control. Control that allows owners of obsolete marketing and distribution systems to exert power on a new generation, because they can. Because we let them exert that power throughly poorly thought out law.

The battles are about control. Control that is alien to the very basis of the internet. Centralised and monolithic, able to criminalise a cohort in the twinkling of a cataracted eye.

The battles will be about control. Control of an entire generation and their right to their culture.

Guess what? Not much stands in the way. Except you and me.

No them out there, just an awful lot of us

default

Been travelling for a while. While I was catching up on my reading, I was reminded of a much-loved Douglas Adams quote in a post by Kevin Anderson. [Now Kevin is someone I read regularly and would recommend wholeheartedly]. Anyway, I just had to share the Adams quote again, for those who may not have seen it first time round a decade or so ago:

Because the Internet is so new we still don’t really understand what it is. We mistake it for a type of publishing or broadcasting, because that’s what we’re used to. So people complain that there’s a lot of rubbish online, or that it’s dominated by Americans, or that you can’t necessarily trust what you read on the web. Imagine trying to apply any of those criticisms to what you hear on the telephone. Of course you can’t ‘trust’ what people tell you on the web anymore than you can ‘trust’ what people tell you on megaphones, postcards or in restaurants. Working out the social politics of who you can trust and why is, quite literally, what a very large part of our brain has evolved to do. For some batty reason we turn off this natural scepticism when we see things in any medium which require a lot of work or resources to work in, or in which we can’t easily answer back – like newspapers, television or granite. Hence ‘carved in stone.’ What should concern us is not that we can’t take what we read on the internet on trust – of course you can’t, it’s just people talking – but that we ever got into the dangerous habit of believing what we read in the newspapers or saw on the TV – a mistake that no one who has met an actual journalist would ever make. One of the most important things you learn from the internet is that there is no ‘them’ out there. It’s just an awful lot of ‘us’.

It’s worth reading the whole Adams post, which you can find here. Things that were synchronous are becoming asynchronous as well; things that were asynchronous are becoming synchronous as well; we have a lot to learn about whom and what and when we trust as a result.

I’ve got your number

First you call 1176 households. You find that 136 people actually admit to using file sharing software. Not necessarily illegal, but who cares when you have a good story?

Then you take the percentage that those numbers represent, 11.6, and bump it up to 16.3; why? because people lie, of course. Not you.

Then you take the 33.9m people published as online by ONS and bump that up as well, to make it 40m. Because statistics also lie.

Mash the percentage with the target population. Et voilà, you get to 7m.

The 7m illegal downloaders referred to in the onslaught on “illegal file sharing”.

Sounds better than 3.9m, doesn’t it? Has a nice whole ring to it.

Sounds so much better than 136.

Full story at http://www.pcpro.co.UK/news/351331/how-UK-government-spun-136-people-into-7m-illegal-file-sharer

Thinking about downloads

A few weeks ago, Peter Mandelson announced his intention to push forward on stringent measures to deal with “illegal” filesharing and downloading. The measures went much further than what had been envisaged in the Digital Britain report, with responsibility for the decisions and implementation passing from Ofcom to Mandelson.

[Disclosure: I work for BT; we operate an ISP; our position on this subject has been made clear by CEO Ian Livingston here and by other senior executives here. As clearly stated in the disclaimer at the top of this blog, these are my personal views and not necessarily those of my employer.]

It now appears that “internet suspension of illegal downloaders could become law”. Before that happens, I thought it would be worth while to share some of my thoughts about this.

1. Neither filesharing nor downloading is illegal per se.

The word “illegal” regularly precedes the word “download”, to such an extent that people are used to seeing the two words together; as a result there is a risk that people perceive all downloads to be illegal. George Lakoff pointed out something very similar when analysing Katrina, showing how “citizens” became “refugees”. Earlier, there were attempts to equate “Muslims” with “terrorists”. It is important that we frame this debate correctly.

Let me put this in context. Have you ever bought a CD and transferred tracks from that CD to anything else: your iTunes software, an iPod, a smart phone, an MP3 player, even another CD? If you live in the UK, then you have broken the law. What you have done is “illegal”.

So it’s important to bear in mind that not everyone who downloads something is doing something “illegal”, there are legal downloads as well. And sometimes something appears illegal because the law is out of date, even though in practice it is not illegal.

2. Downloaders do pay for their downloads.

Last year’s best-selling MP3 album on Amazon was Nine Inch NailsGhosts I-IV. Not particularly remarkable, until you realise that the same album was available for free download as well.

Radiohead proved something similar with In Rainbows. Just because people download music, don’t assume that they’re trying to rip artists off. Most downloaders support their artists.

3. Downloading is good business for the music industry.

It’s not just the Amazon MP3 album chart that shows what’s happening. Digital music album sales are growing 32% year on year, while CD album sales are down 14.5%, when you compare 2008 with 2007.

If you have the time, go visit the Internet Archive. Take a look at what the Grateful Dead have been doing there. 3093 audience recordings available for free download. 3823 stream-only recordings available as well. Free. You see, the Grateful Dead have figured out what’s abundant and what’s scarce in their business. Digital things are abundant. Physical things are scarce. So I can record their concerts, trade the “bootlegs”, download away to my heart’s content. But they get my money for the concerts and the merchandise. As well as the CDs and DVDs that are “official”. [I now have 54 Jerry Garcia ties!].

Music is about performance, not just studio. We’ve been in a time warp where people have forgotten that and gotten hung up about other ways of making money. Like getting suckers like me to pay repeatedly for the same content across different formats. The new generations aren’t into buying physical copies, other than collectible vinyl.

4. Claims about illegal downloads can be misleading.

Yesterday, Lady Gaga was announced as the Queen of Downloads. What intrigued me was the others on the Top 10 list. Kings of Leon. La Roux. Leona Lewis. Alexandra Burke. Snow Patrol. Nickelback. Not the kind of stuff I listen to. The kind of stuff my youngest child listens to.

What struck me was this: young people seem to do the downloading, old people seem to do the anti-download complaining. I’ve seen claims that in the UK alone, £1.2bn is lost to illegal downloads. And I think there’s a fallacy there. It’s a bit like Rolex claiming lost revenues because people are buying rip-off Rolexes for $25. Does Rolex really think that someone who pays $25 for a “Rolex” is actually a potential customer for a $25,000 watch? I saw similar claims made for software purchases in India. So let’s put this in context. Does anyone really think that someone, anyone, downloads Cliff Richard illegally? Puh-leese.

5. There are many potential flaws in the suggested way forward.

What Mandelson seems to be asking for may be technically infeasible, to the extent that, as John Perry Barlow put it, the internet tends to route around obstacles. Howard Rheingold also makes the point that customers tend to get what they want; this is a customer-driven proposition. The Pew Internet and American Life Project published a fascinating report recently, headlined The State of Music Online: Ten Years After Napster. It’s well worth a read. One of the points made there is that customers now expect five kinds of freedoms:

  • Cost (zero or approaching zero)
  • Portability (to any device)
  • Mobility (wireless access to music)
  • Choice (access to any song ever recorded)
  • Remixability (ability to remix and mash up the music)

We can prevent some of these freedoms with artificial scarcities, like putting region coding on DVDs. But the market works around such things, every artificial scarcity is met with an equal and opposite artificial abundance. And there are more of “them”.

Even if a piecemeal technical solution were to be implemented, the likelihood is that it will be exorbitant in cost. There is also the consideration that the solutions put forward may breach basic human rights. When we look at what’s happened in France, Australia, New Zealand, there is definite evidence that any such move would be grossly unpopular. On top of all this, even the RIAA appears to have concluded that prosecuting the downloader is not worth while, and that DRM has had its day.

Technically complex, unlikely to succeed. Expensive. Potentially illegal. Unpopular. The list grows and grows. And of course there is the matter of asking ISPs to criminalise their customers in order to protect third-party rights, why would any ISP want to do that?

6. Do we really want to alienate a whole generation? Are there good reasons to?

The point is actually something else. It’s about culture. It’s about the way the millenials think and act. They have rediscovered something we’ve gone and forgotten, the sheer pleasure of getting under the hood of things. Making things. Making new things out of old things. Changing things.

This process of make, remake, change is part of the way they express themselves. Part of the way they think. Part of the way they create. Part of the way they protest.

Marcel Duchamp remixed the Mona Lisa. Ogden Nash remixed Joyce Kilmer’s Trees. Lampoon and Satire are culturally significant as well, no less creative than other forms of expression. If you haven’t done so already, go read Cory Doctorow’s Makers and Larry Lessig’s Remix. They will help you understand more of what is happening.

There have always been generation gaps. There have always been pushbacks against every new reproduction technology: the book, the printing press, the copier, the tape recorder, the CD. And now the internet, the world’s biggest copy machine.

Whatever you may have been told, the internet was not actually created to become a new distribution mechanism for failing entertainment industries. There is considerable pressure on the industry to change, to innovate. New business models are emerging, based on patronage, on subscription, on advertisements.

We have to allow the innovation to continue. Today, even the worst enemies of downloaders would accept that somewhere between 13% and 16% of all downloads are legal and paid for, whatever those terms now mean. There are 6 billion people out there, all getting connected to the commons that is the internet. The industry should learn from Grateful Dead and Prince and Nine Inch Nails, focus on growing the size of the pie to make sure that 13-16% represents a very big number. Because that is possible, even likely.

There are other considerations. Andrew Savikas, writing in O’Reilly TOC, puts forward an interesting argument for Content as a Service. Companies like LendAround are beginning to pick up new trends, trends that are moving away from an ownership culture to a sharing culture. Gift-based cultures and economies have been around for some time now. Millenia.

Most people are law-abiding. Most people want to make sure that artists are rewarded. Sometimes laws are out of date and need changing. Sometimes business models are out of date and need changing.

In the internet we have something precious and valuable. In the millenial generation we have something precious and valuable. It is time to keep our heads and do the right thing, foster innovation, encourage cultural expression and adaptation. And avoid seeking to alienate an entire generation…. in order to try and implement a failed proposition.