Tapping in to the collective consciousness for fun & profit

Tonight I was reading the November 28th issue of Forbes magazine. I read an article that was an “aha!” and sent it off to someone I know that is leading strategy surrounding innovation and ideation at a company. Let me give you the two reasons why this happened to have hit me:

1) I’ve been observing many Web 2.0 developments on the internet with all these new startup companies who are getting-to-market with not-yet-finished products. Starting with Google’s release of Gmail (which *still* shows on their web site that it’s in “beta”) and moving to Yahoo 360 and many other web-based offerings, the new paradigm is to quickly prototype and release a product or idea and get the collective feedback of users. It’s working so well, everyone seems to be doing it.

Then I read the Forbes article entitled, “Collective Opinion” (registration required). It stated in part,

“For years toymaker Lego rarely strayed from peddling 100-piece building-block sets that typically sold for $15. That’s what customers were telling it to do–the customers participating in focus groups, that is. This venerable market-research tool puts a dozen ordinary folk in a room to talk about products while market experts listen in.

Yet a few years ago Lego unveiled a blockbuster product that was a radical departure from anything else in its 73-year history. The Star Wars Imperial Destroyer debuted in late 2002 as Lego’s largest and most expensive set ever, at 3,100 parts and a $300 price tag. Its first production run, planned to last a year, sold in less than five weeks.

This winner came out of a different sort of focus group, one with 10,000 players. These were Lego customers responding to an e-mailed invitation to participate in an online popularity contest for new product ideas. The participants saw short lists of proposed toys, six at a time, and clicked on the ones that sounded appealing. They’d rank their choices and, if they felt creative, suggest a new idea. These ideas were fed, in turn, to other customers for popularity scoring against the ideas from Lego’s own toy creators. The new suggestions, in turn, got creative juices flowing among still other players in the game. Virtual brainstorming, you could call it.”

2) What Lego has done (using a company called Informative‘s software) is to automate the collection of their customer’s wisdom and guidance and accelerate innovation. While it’s tough to “beta” finished goods like Lego produces (vs. an internet service, say, like Writely), tossing out ideas to customers enables a company to float many ideas and it’s the potential buyers that will help hone the product offering, modify or add to the prototype or concept, or even suggest new ones.

More and more leaders in companies are realizing the power of tapping in to the collective consciousness that is represented by millions of people jacked in to the global internet network. Imagine what’s going to happen as this brainpower is harnessed to solve problems, focus on need, suggest and recommend products and services and let their intentions known so organizations and governments can better predict behavior and respond faster. Fortunately, companies like Informative, Google, Technorati and others understand that this collective consciousness is there and are rapidly trying to figure out how to tap in to this thought-stream.

Hey Audible! What about podcasters? Hey Apple! Where are you?

There is significant controversy over Audible’s announcement last week of their new AudibleWordcast and the fact that it’s one more file format scheme. There is a ton of mostly negative buzz from users and the cognoscenti. But it was Mitch Ratcliffe’s acting-in-his-consultant-to-Audible capacity in a blog post (BTW, read the comments if you read his post) that made me sit up and take notice. Responding to Mitch’s post were Dave Winer, and Doc Searls (also Doc here and here).

Unfortunately Mitch took the time to piss-in-their-Wheaties instead of engaging in an honest debate. He starts off his post talking about Bill Gates and it made me wonder if Mitch, like Bill, thinks Dave, Doc, Om and others are communists since we’re not all embracing Audible’s scheme?

As a podcaster with a nice critical mass of listeners, I’m currently more interested in just doing the show as a fun hobby. Would that change? Maybe if it became so popular that storage and bandwidth got out of hand and I had to make the podcast self-supporting. Would I take advertising? I’m not sure though it would be hard to walk away from significant monthly sums if my little show became popular.

I’m a firm believer in value-for-value. If I do work for you, you pay me. All humans work toward their incentives (food, shelter, love, recognition, work) and podcasters’ payoff for our effort is NOT always expressed by podcasting-value in exchange for monetary-value. Incentives for podcasting vary widely by individual (some for the love of podcasting, some for a crusade, others for community, others for money) so there needs to be some sort of payoff for people’s effort and energy devoted to podcasting.

All Audible addressed was money and is focused on what I perceive is their primary audience: content/copyright holders like publishers.

The Essence of the Audible Issue
They didn’t address podcasters needs in their announcement. The controversy being played out isn’t over value-to-value exchange, but rather is over .mp3 vs. the new Audible .aa format and the supposed robust service they’re offering to podcasters enabling them to make money from their podcasts. This is clearly all about being Audible being the conduit for advertisers to tap in to this new podcasting phenomena and has *nothing* to do with podcasters themselves. I don’t believe they’re offering enough value for podcasters to turn our heads toward Audible.

Is it a good thing for podcasting to have yet another file format and is it even necessary to facilitate measurement and auditing? Is Audible even in the best position to perform this middle-man type service? Or is what Audible has launched, like I believe, completely unnecessary as there are already ways to measure and track podcast listening?

The supposed benefits of .aa is measurement and tracking and the ability to monetize podcasts. But as I said in my post about Apple and what they know about YOU whenever you re-synch your iPod to iTunes, I believe that measuring and tracking is occurring and monetization can happen without resorting to yet another, completely unnecessary file format.

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Connecting the Dots podcast for November 13, 2005

With literally a day spent wandering along the south shore of Lake Superior and down through the middle of Wisconsin, I had a lot of time to think, experience, wonder and explore. Several of my musings were around internet connectivity that would need to cover A LOT of geography.

Lots of people (like George Gilder) are comparing-n-contrasting the U.S. broadband penetration with that of Korea, Japan or Singapore. Come on…South Korea alone is 70% the size of Wisconsin! Just as a point of comparison, South Korea has a land mass of 98,640 square kilometers and Wisconsin has 169,642! Isn’t it obvious why a tiny country like South Korea has ubiquitous (and fast) broadband and internet infrastructure? The US geography is so enormous — and population density a fraction of other countries — that the investments needed here are huge.

While driving for hours I thought, “Hey! I could grab my M-Audio Microtrack and record a podcast.” So I did. Hope you enjoy it.

Listen to or download this week’s podcast

Where or where are the Web 2.0 turnkey hosts?

Where are the modular, Web 2.0-ish web application hosting companies empowering individuals and, most importantly, the small to medium sized companies (that are the engine of the world’s job creation) so they’re able to accelerate in to this next phase of the Web?

In the last few months (and especially the last few weeks), I’ve had opportunity bitch-slap me in the face that *someone* needs to address. Admittedly there are some really hard problems to figure out (identity management, infrastructure) but the opportunity is there:

1) Small to Midsize Businesses (arguably SMB is defined as organizations with revenues from $0 to $1.5B) are either *clueless* about blogging, vlogging, podcasting, social apps, wiki’s, ecommerce-with-digital-delivery, content management…or they see it as *really hard* to deliver…so they don’t bother. SMB’s need to host each of these in different places — or they require *gignormous budgets* to develop and deliver meaningful Web applications.  When I was working at Vignette, we could deliver it all but only for the BIGGEST organizations and only those with the largest BUDGETS could buy, build and deliver truly meaningful web offerings for their organization.

All but low-level brochureware web sites and hard ecommerce was (and still is) available to SMB’s. To fully take advantage of all that Web 2.0 promises, offerings need to be holistic, seamless and modular….Lego-like in their assembly and ending up looking like those SMB’s spent millions on it.

2) SMB requires click-n-configure, drag-n-drop, browser-only creation and administraton that allows most of the non-techies in an organization an opportunity to manage. In a hosted environment,multiple creators/managers/users (located anywhere on the internet) need to be involved with discrete portions of the overall Web offering (like just their blog; just their child web site; just their part of the ecommerce catalog, etc.).

3) Ecommerce is really, really hard for SMB. Forget about B2B selling unless, again, the budgets are huge (remember B2B in the dotcom era?) but this is critical via web services in order to be competitive on the world stage. I’ve got my bride’s company hosted at www.bigstep.com which is web/catalog/ecommerce (shopping cart too) but Bigstep does NOT have what we and dozens of other companies I talk with CRAVE: digital purchase and delivery of PDF’s, media files and other files (micropayment capability would be frosting on this cake) in exchange for a customer’s payment, seamless creation and the ability to add modular functionality quickly.

What do *you* want? What is available to you today?

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Connecting the Dots podcast for November 6, 2005

Recorded on the M-Audio Microtrack…this week’s show discusses Web 2.0-like web services and more about the “dirty little secret” of performance with them.

I’m a user of several different web services (Flickr, Typepad, Gmail, Bigstep) and am growing increasingly anxious

In addition, some thoughts about Apple, iTunes, the iPod and what *could* be known about you and your listening habits is brought forth.

Listen to or download this week’s podcast

Apple’s Achille’s Heel…

No question that games have been Apple’s Achille’s heel. In fact, one of the key reasons I purchased an HP laptop was for games (my 11 year old son begged me). Of course, there are a host of little utility things that only a PC can do since the manufacturer <insert name here> doesn’t support the Mac for some miscellaneous dweebezaarb application.

What if the upcoming Mac on Intel took care of that?

When announcing this past Summer that going forward Apple would be primarily supporting the Intel chipsets — and that developer’s needed to create “universal binaries” with Rosetta (powered by Transitive) so they’d run on both the current PowerPC chips as well as the future Intel ones — I became quite interested in the emulation possibilities.

Games are, however, far too demanding to run well in emulation. Every ounce of performance is necessary to provide a good user experience. An experience which is, in fact, growing ever more powerful and rich with the advent of new gaming systems like the Playstation 3 and XBox 360.

Still, there is a lot of interest and debate about what Apple will do in this PowerPC to Intel transition. What if there was a minimal, base-case load of Windows (or an emulator) so that games and other applications would operate natively on Intel? Could Apple provide a near-equal gaming experience with Windows games yet have Mac OS X be the dominant operating system? It’s intriguing to think that — with this transition — Apple would instantly and immediately remove the one key problem users have in switching to Apple: games.

High tech….always an adventure.

iPod, iTunes and what Apple knows about YOU

Had a *very* lively email discussion today with the smart folks in the Podcast Minnesota group after I started the thread about a new service that debuted (Fruitcast). It is just too good to leave inside an email threaded discussion — and did it *ever* get me to thinking and connecting the dots about my iPod, iTunes, podcasts and what Apple knows about me.

Fruitcast has launched before Adam Curry’s Podshow has fully rolled out. Fruitcasts’ value proposition is to offer a way for podcasters to potentially monetize podcasts through advertising. There was a lot of discussion in the PodcastMN group and great points like:

  • CR: it’ll be interesting to see what happens with podshow.  because having advertising in their shows will select for a different type of audience.  and i suspect there will be some backlash about it. because honestly, the whole motivation for podcasting was to find content out there that didn’t completely emulate the model of traditional radio in every way.
  • Mike W: I don’t know why everyone is in such a rush to “monetize” their podcast. I still am mildly offended that every somewhat popular blog has ads plastered all over them.
  • Mike W: While I am going to watch this with a watchful eye, I don’t ever want to lose control over what I do. If I advertise anything, it will be first and formost something I believe in and use.
  • Mike O: There’s no way to know who’s listening — so what advertiser in their right mind would pay that kind of money to listen to me ranting off into the void?
  • Michael K: pointed out that there’s no way to know how many of those downloads are actually being listened to.  What advertiser would want to fire their messages off to non-played files on people’s disk drives?

None of this might matter in the long run. Podcasters might not even have a voice since Apple could — given enough data about each-and-every podcast listener — simply personalize the iTunes music store based on each subscriber’s listening criteria and forget about trying to insert ads in to podcasts at all or get permission from a podcaster to do so. If you’re a listener and are in to rock-n-roll, then there are a handful of podcasts that ought to be front-n-center on the podcast page for you. If you’re a technoweenie, there are tons of tech shows like This Week in Tech, Podtech, ITConversations, etc. that could be too. Ads could be delivered to “channels” of podcasts on the podcast page and money offered to those podcasters that care to participate in an ad insertion model.

I predict Apple will be in the best position to monetize advertising since iTunes is the defacto gateway to digital music and podcasts (yeah, yeah…that’s open to argument but it’s surely the largest gateway).

So what does Apple know about you from your iPod and use of iTunes?  Is it Apple — and not Podshow, Fruitcast, Odeo, Google or Yahoo — that will know the most about you and the podcasts to which you listen — and be the most powerful advertising powerhouse surrounding podcasting?

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What if there was no more “want”?

Though not a “Trekkie” by any stretch of the imagination, I found Star Trek: The Next Generation an interesting show and the premises were often quite compelling. One particular episode entitled, “The Neutral Zone” had this premise:

While Captain Jean Luc Picard is at a conference, the Enterprise finds a 20th century Earth craft containing three cryogenically frozen Humans.

Dr. Beverly Crusher informs Picardabout the three humans, financier Ralph Offenhouse, singer LQ “Sonny” Clemens and homemaker Clare Raymond who have already been thawed and cured of the ailments that led
them to be frozen in the first place.

The replicator on the ship could make anything any of them could think of (nanotechnology undoubtedly…instantly creating anything out of atoms) which dazzled these 20th Century humans. In one exchange between Picard and Offenhouse where the latter is extremely anxious to get back to Earth since the magic of compound interest has surely made him incredibly wealthy over the three centuries he’s been in suspended animation:

PICARD
A lot has changed in three hundred years. People are no longer obsessed with the accumulation of “things”. We have eliminated hunger, want, the need for possessions. We have grown out of our infancy.

RALPH
You’ve got it wrong. It’s never been about “possessions” – it’s about power.

So while many of us (including me fairly frequently) are focused on open source software, giving back to society, helping each other and providing for the common good, others are consumed by the accumulation of possessions and thus power. Will it take one, two or three centuries before want is eliminated and power equals influence instead of control?

Building blocks are enabling our future…

Whatever you call this next phase of the internet (Web 2.0; Blah, blah, blah “Live“) there’s one thing that is crystal clear: business as usual is over. We’re accelerating in to an era that will leverage the always-on internet, the collective consciousness of the humans that are connected through it, and the enabling technologies and web services’ offerings that companies are rushing to get in to the marketplace.

The internet-as-a-platform meme is becoming increasingly interesting and available to those that do NOT have deep pockets. From blogs, to photos (Flickr, Smugmug), to video (Brightcove, CurrenTV), to podcasting, to MySpaces, Facebook, Yahoo360 or MSN, more and more of what we want to consume, to share and to deliver-to-others is on the internet and the building blocks are either free or incredibly affordable.

When I started my blog last year and podcast this year, my objective was this, “My purpose with diving in to the blogosphere, becoming a podcaster and totally and completely immersing myself in Web 2.0 (the acceleration and momentum which is becoming palpable) is to figure it out, be in-the-game and gain an intuitive understanding of what’s happening as the collective consciousness of mankind gets connected. The only way to understand it is to live it and what’s happening right now is the most fundamental shift I’ll see in my lifetime.” Video is *really* hard to do well so I’ve not yet leveraged my years of video ability since there is little payoff for the effort…yet.

That said, the *real* reason that I (and millions of others) can do all this stuff is due to the critical mass that’s been achieved with enabling technologies. The accessibility of digital cameras/camcorders, audio recorders, and tools on the computer to manipulate and deliver content to the myriad of web service hosted offerings are just waiting for us to use ‘em — and use them we are. The more we leverage these building blocks and deliver increasingly relevant and interesting content that will be available to anyone, anywhere….the more we’ll drive increasing amounts of our attention from traditional media to the internet.

Man…I’d hate to be working for a newspaper, radio/TV station or book publisher, just knowing that my industry and business can’t help but be disintermediated at some point in the not-too-distant future.