What is Abundance?

January 22, 2007 · Posted in abundance, economics, innovation, strategy · 1 Comment 

Do you work, purchase, or consume anything? If so this new understanding of Abundance effects you.

“You keep using that word. I do not think it means what you think it means.” The character Inigo Montoya from the movie “Princess Bride”

In 2000 I began a project to change the world. My partner in this project was The Shad0w, contributor to the BitTorrent protocol and creator of BitTornado program. Napster and other peer-to-peer file sharing systems were in full swing and BitTorrent was just starting to catch on. At that point we realized that it was impossible to stop people from copying information. Music, movies, books, or software programs are all just information. Any information can be digitized. Once digitized copies are basically free. But we also realized that if people weren’t paid to make new information the world would stagnate. The entire legal system of intellectual property was based on restricting copies and now that was impossible.

While Shadow worked on BitTorrent and other technologies I worked on business models for this new world we were entering. I began researching, doing experiments and reexamining everything I knew about information. The result of that were several profound discoveries. One of them was a completely different way of looking at economics.

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Apple iPhone Marketing Mistake

January 19, 2007 · Posted in innovation, strategy · 3 Comments 

Apple is great at marketing. The PC vs. Mac commercials are viral video favorites. Those videos have launched a new micro genre of fan made PC vs. Mac commercials. Now that is some amazing marketing, which I don’t think they quite planned. But they could have predicted. That is why I feel they are making a huge mistake in threatening legal action against people making and sharing skins that make other phones and PDAs look like the iPhone.

Not only do I think it’s a mistake to try to force people to not share these skins I think Apple should make the skins and give them away.

iPhone Skin

Here is my thinking on this. The graphics on the screen aren’t what makes the iPhone cool, its what the iPhone does, its the functionality that makes an iPhone worth buying. So Apple could have a great viral marketing campaign by saying, “For all you people with other devices you can imagine what its like to have the real thing.” And Apple could poke fun at copy cats saying, “You can look like an iPhone, but to do what an iPhone does, you have to get an iPhone.” Apple could even give away removable stickers or possibly even sell phone carrying cases that make other phones look like an iPhone. The entire message, only an iPhone will do.

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Talking to Idiots

January 18, 2007 · Posted in innovation, strategy · Comment 

One of the traits of a great innovation is how obvious it appears once you’ve seen it. Unfortunately a lot of frustration can occur trying to explain the innovation to people who haven’t yet grasped the concept. Often it feels like you are trying to explain the innovation to an idiot. While this might be the case, if your innovation depends on explaining it to idiots you have a serious problem. Chances are that your idea will not become an innovation very soon if you can’t explain it to investors and it definitely won’t if you can’t explain it to customers.

How can you tell if the problem is with the way you are explaining it or if you really are just talking to an idiot? If the person you are talking to is an idiot, move on. But if they aren’t an idiot you are left with two other possibilities. The first is you aren’t explaining it very well. That can be easily fixed. The second is a warning sign that your idea won’t catch on. If your idea is too far ahead of a customer’s demand they won’t understand it. If that is the case you will waste a lot of time and money trying to bring it to market.

In communication sciences we have a term for this, its called rupture. Two people might be using similar or even the exact same words but using different definitions or making assumptions that are radically different. The meaning of the message gets lost in transmission. The context is as important as the code of any communication.

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