PLENTITUDE NOT SCARCITY – New Rules https://kk.org/newrules Just another kk.org site Tue, 08 Sep 2009 03:14:54 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.12 Don’t seek refuge in scarcity. https://kk.org/newrules/dont_seek_refuge_in_scarcity_1/ Tue, 08 Sep 2009 03:14:54 +0000 Continue reading ]]> Every era is marked by the wealth of those who figure out what the new scarcity is. There will certainly be scarcities in the network economy. But far greater wealth will be made by exploiting the plentitude. To make sure you are not seeking refuge in scarcity, ask yourself this question: Will your creation thrive if it becomes ubiquitous? If its value depends on only a few using it, you should reconsider it in light of the new rules.

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Avoid proprietary systems. https://kk.org/newrules/avoid_proprietary_systems_1/ https://kk.org/newrules/avoid_proprietary_systems_1/#comments Wed, 02 Sep 2009 10:20:24 +0000 Continue reading ]]> Sooner or later closed systems have to open up, or die. If an online service requires dialing a special phone number to reach it, it’s moribund. If it needs a special gizmo to read it, it’s kaput. If it can’t share what it knows with competing goods, it’s a loser. Closed systems close off opportunities for others, making leverage points scarce. This is why the network economy–which is biased toward plenty–routes around closed systems. One could safely bet that America Online, WebTV, and Microsoft Network (MSN)–three somewhat closed systems–will eventually go entirely onto the open web, or disappear. The key issue in closed-versus-open isn’t private versus public, or who owns a system; often private ownership can encourage innovation. The issue is whether it is easy or difficult for others to invent something that plays off your invention. The strategic question is simple: How easy is it for someone outside of the host company to contribute an advance to their system or product or service? Are the opportunities for participating in your own network scarce or plentiful?

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Don’t pamper commodities… https://kk.org/newrules/dont_pamper_commodities/ https://kk.org/newrules/dont_pamper_commodities/#comments Mon, 31 Aug 2009 11:07:07 +0000 Continue reading ]]> …let them flow. The cost of replicating anything will continue to go down. As it does, the primary cost will be developing the first copy, and then getting attention to it. No longer will it be necessary to coddle most products. Instead they should be liberated to flow everywhere. Let’s take pharmaceuticals, especially genetically bio-engineered pharmaceuticals. The cost of little pills in the drug store can be hundreds of times greater than what they cost to produce in quantity, yet many drugs are priced expensively in order to recoup their astronomical development costs. Pharmaceutical companies treat and price their drugs as scarcities. One can expect, however, that in the future, as drug design becomes more networked, more data-driven, more computer mediated, and as drugs themselves become smarter, more adaptive, more animated, the competitive advantage will go to those companies that let “copies” of the drug flow in plentitude. For example, a highly evolved bioengineered headache relief drug may be sold for a few dollars on a “take as much as you need” basis. The company makes its profits when you pay it handsomely for tailoring that drug specifically for your DNA and your body. Once designed, you pay almost nothing for additional refills. Indeed there are already a few start-up biotech companies headed this way. The field is called parmacogenomics. They are heeding the call of plentitude.

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Maximize the opportunities of others. https://kk.org/newrules/maximize_the_opportunities_of_1/ https://kk.org/newrules/maximize_the_opportunities_of_1/#comments Thu, 27 Aug 2009 04:04:45 +0000 Continue reading ]]> In every aspect of your business (and personal life) try to allow others to build their success around your own success. If you run a hotel, what can you do to permit others–airlines, luggage retailers, tour guides–to be part of your network? Rather than viewing their dependency on your success as a form of parasitism, or worse, as a rip-off, understand this tight coupling as sustenance. You want to entice others to create services centered around the customer attention you have won, or to supply add-ons to your product, or even, if it is a new-fangled idea, to create legal imitations. This is a counter-intuitive stance at first, but it plays right into the logic of the net. A small piece of an expanding pie is the biggest piece of all. Software is especially primed to work this way. The programmers who created the hit game Doom deliberately made it easy to modify. The results: Hundreds of other gamers issued versions of Doom that were vastly better than the original, but that ran on the Doom system. Doom boomed and so did some of the derivatives. The software economy is full of such examples. Third-party templates for spreadsheets, word processors, and browsers make profits for both the third-party vendor and the host system. It takes only a bit of imagination to see how the leveraging of opportunities also works in domains outside of software. When confronted with a fork in the road, if all things are equal, go down the path that makes the opportunities of others plentiful.

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Touch as many nets as you can. https://kk.org/newrules/touch_as_many_nets_as_you_can_1/ Tue, 25 Aug 2009 05:16:12 +0000 Continue reading ]]> Because the value of an action in the network economy multiplies exponentially by the number of networks that action flows through, you want to touch as many other networks as you can reach. This is plentitude. You want to maximize the number of relations flowing to and from you, or your service or product. Imagine your creation as being born inert, like a door nail off a factory conveyor belt. The job in the network economy is to link the nail to as many other systems as possible. You want to adapt it to the contractor system by making it a standard contractor size so that it fits into standard air-powered hammers. You want to give it a SKU designation so it can be handled by the retail sales network. It may want a bar code so it can be read by a laser-read checkout system. Eventually, you want it to incorporate a little bit of interacting silicon, so it can warn the door of breakage, and take part in the smart house network. For every additional system the nail is a part of, it gains in value. Best of all, the systems and all their members also gain in value from every nail that joins.

And that’s just for a stick of iron. More complex objects and services are capable of permeating far more systems and networks, thus greatly boosting their own value and the plentiful value of all the systems they touch.

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Plentitude will soon reach the level of zillionics. https://kk.org/newrules/plentitude_will_soon_reach_the/ https://kk.org/newrules/plentitude_will_soon_reach_the/#comments Wed, 19 Aug 2009 04:09:02 +0000 Continue reading ]]> We know from mathematics that systems containing very, very large numbers of parts behave significantly different from systems with fewer than a million parts. Zillionics is the state of supreme abundance, of parts in the many millions. The network economy promises zillions of parts, zillions of artifacts, zillions of documents, zillions of bots, zillions of network nodes, zillions of connections, and zillions of combinations. Zillionics is a realm much more at home in biology–where there have been zillions of genes and organisms for a long time–than in our recent manufactured world. Living systems know how to handle zillionics. Our own methods of dealing with zillionic plentitude will mimic biology.

The network economy runs with plentitude. It vastly expands the numbers of things, increases the numbers of intangibles with ease, multiplies the numbers of connections exponentially, and creates new opportunities without number.

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A network is a possibility factory. https://kk.org/newrules/a_network_is_a_possibility_fac/ https://kk.org/newrules/a_network_is_a_possibility_fac/#comments Wed, 19 Nov 2008 10:24:18 +0000 Continue reading ]]> So tremendous is the fount of plentitude in the network economy that having to deal with nearly infinite choices and mushrooming possibilities may be the limiting factor in the future. Navigating sanely through an expanding ocean of options is already difficult. The typical supermarket in America offers 30,000 to 40,000 products. The average shopper will zoom through the store in 21 minutes, and select out of those 40,000 choices about 18 items. This is an amazing feat of decision making. But it is nothing compared to what happens on the web. There are one million indexed web sites, containing 250 million pages. To be able to find the right page out of that universe is astounding, and the number of pages doubles every year. Dealing with this plentitude is critical because the totals of everything we manufacture in the world are only compounding. The total amount of information stored in the entire world–that’s counting all the libraries, film vaults, and data archives–is estimated to be about 2,000 petabytes. (A petabyte is a billion megabytes, or about a quadrillion books the size of this one.) That’s a lot of bits.

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The law of plentitude is most accurately rendered… https://kk.org/newrules/the_law_of_plentitude_is_most_1/ Tue, 11 Aug 2009 11:25:21 +0000 Continue reading ]]> thus: In a network, the more opportunities that are taken, the faster new opportunities arise.

Furthermore, the number of new opportunities increases exponentially as existing opportunities are seized. Networks spew fecundity because by connecting everything to everything, they increase the number of potential relationships, and out of relationships come products, services, and intangibles.

A standalone object, no matter how well designed, has limited potential for new weirdness. A connected object, one that is a node in a network that interacts in some way with other nodes, can give birth to a hundred unique relationships that it never could do while unconnected. Out of this tangle of possible links come myriad new niches for innovations and interactions.

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The more interconnected a technology is… https://kk.org/newrules/the_more_interconnected_a_tech_1/ Tue, 11 Aug 2009 11:17:40 +0000 Continue reading ]]> …the more opportunities it spawns for both use and misuse.

Some of the best video games of all time were elegant little programs that ran on early computers such as the Commodore 64. Millions of C-64s were sold during the early 1980s; most of them lie at the bottom of landfills today. Their flealike memories and lack of disk space have been replaced by Powerbooks and Pentiums. The few still working are sold at collector’s prices. But out on the web, filling niches no one could have predicted, are a flock of emulators. You can download a Commodore 64 emulator onto your Powerbook. At the click of a button it will turn your state-of-the-art workstation into a moronic C-64 (or one of 25 other golden oldies) so you can play an ancient version of Moondust, or PacMan. This is equivalent to having a switch on the dashboard of your Ferrari to make it run like a VW Bug.

These refreshing street uses for technology stem from the plentitude of interactions. Artifacts of the industrial economy yield limited potential for such weird, tangential uses. The network economy, on the other hand, is a cornucopia of products and innovations that cry out to be subverted in new ways. Indeed, in a network, new opportunities arise primarily when existing opportunities are seized. A business that successfully occupies a niche immediately creates at least two new niches for other businesses. There is, for example, no end to the number of companies that will find a niche in email; the more wild ideas that are created, the more wild ideas can be created. The arms race between spammers and readers is only in its infancy.

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The power of the fax effect– https://kk.org/newrules/the_power_of_the_fax_effect--/ https://kk.org/newrules/the_power_of_the_fax_effect--/#comments Thu, 06 Aug 2009 07:36:16 +0000 Continue reading ]]> more fax machines increasing the value of all previous machines–does not rely on the proliferation of Panasonic brand fax machines, or of any particular machine. Since many faxes are sent from laptop computers, or from a server somewhere, the power of plenty derives from opportunities rather than lumps of matter.

As opportunities proliferate, unintended uses take off. In the late 1970s, the Shah of Iran exiled his rival, the Ayatollah Khomeini, to Paris. Since the Shah controlled his country’s media he assumed Khomeini would not be able to reach the Iranian people from France to stir up trouble. But sympathetic Iranian clergy exploited an unsuspected technological opportunity: the cassette tape. Every week in Paris Khomeini’s friends recorded his inflammatory speeches on cheap recorders and smuggled copies (easily disguised as music tapes) into Iran, to be multiplied on $200 duplication machines and passed out to every mosque. On Fridays, Khomeini’s sermons were played throughout Iran on boomboxes. The clerics turned the common tape deck into a broadcast network. I’m sure that not a single engineer who developed cassette tape technology ever envisioned it being used for broadcasting. Electronic media, because it is animated by electrons, is highly susceptible to being subverted by new uses.

Recently Sprint, the telecommunications company, pioneered flat cellular phone pricing–you could make all the cell phone calls you want for a fixed monthly fee. Within days of the pricing, the startled marketing experts at Sprint heard reports that people were using the cell phones as baby monitors. Parents would go into baby’s bedroom with a cell phone, dial the kitchen, and then leave the line open. VoilĂ !

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