Tuesday, December 7, 2010

The Future Is Coming

Blog friend Alvis Brigis has a post up about the transition in economic activity he sees underway in the US. While I still question just how broadly applicable the Prosumer concept will prove to be, I concur that it is certainly one of the options available to people today to begin their individual transition into the developing economy.

In his post, Alvis identifies some of the factors that contribute to the on-going economic downturn:

The erosion of traditional American jobs continues unabated and we can expect it to steadily worsen. From a macro perspective, there is simply no silver-bullet counter to the converging forces of globalization, automation, overvalued real estate prices, national debt, mega quantitative easing (printing more U.S. dollars to buy back our bonds so they don’t tank - a new round of $600 billion has just been proposed), mounting international resistance to U.S. monetary policy, massive overseas spending (Iraq, Afghanistan) general inefficiencies in govt, defense, education, oversight, and social services. Despite weak signs of life in the country’s massive services sector, which comprises an astounding 80% of U.S. jobs, last week’s dismal jobs report reinforces the steady downhill march.


I find it telling that all of them are governmental/regulatory in nature.

That said, I also find it refreshing (if not at all unexpected of the man) that his prescriptions are all oriented around the individual human, alone or in organised groups, creating their own relief without recourse (or even regard) to government.

Note that I did not say in dis-regard to government. Lack of reliance does not mean rejection.

Elsewhere in the post, he says:

If our goal is to save American jobs, then it’s our responsibility to identify, vet and selectively apply these emerging solutions.

First and most obviously, we can turn to well-established, leading-edge American tech and web companies like Microsoft, Google, Apple, Intel, Cisco, IBM, Johnson Controls, Amazon, EBay for software, hardware and intelligent systems that can bring down personal and business costs and increase profit.

........

Even more interesting is the symbiotic relationship these companies have with their customers. Each and every one of them fundamentally depends on user generated content and participation to function. Therefore, they inherently must make the cost of participation as low as possible, and the benefits to users as high as possible


Every company Alvis identifies is dependent on government provided infrastructure just to operate and all of them have both governmental regulatory constraints and self-imposed limitations they impose on their users - Alvis' proposed Prosumers. Certainly they offer some opportunity, and the Groupon example Alvis provides is inspirational, but the problems left unstated make success through these channels much more unlikely than Alvis makes apparent (not an unexpected aspect of an introductory effort such as this one, it should be acknowledged).

All of the companies named have to offer the most user experience for the least user expense (whether financial or in usage frustration levels). All of the companies named risk additional regulatory and taxation burdens resulting from increased individual economic activity beyond that already regulated/taxed. From this it can be seen that increased usage will result in decreased usability. Methinks these won't cooperate much or for long.

All of which ignores the mores most of them practice; E-Bay discriminates against anyone wishing to exercise the tenets of the US 2nd Amendment on their site for only one example of highly dubious company conduct that inhibits the user/prosumer experience. Google is infamous for it's unethical censorship and data gathering practices.

The point being that none of the examples proffered are positioned to be quite as opportune as Alvis seems to believe. They could be, but in practice have not been to-date. Perhaps an effort to persuade them differently, developed at the local societal level, would be a practicable first step in changing this circumstance.

As is his usual practice, a complex and thoroughgoing look at the present circumstance with an eye to getting to a future we all can find fulfilling. Well done you.

5 comments:

Alvis Brigis said...

"the problems left unstated make success through these channels much more unlikely than Alvis makes apparent"

True. In retrospect I should've touched more on my belief that this won't really help in the immediate / near-term. As many commenters have pointed out, you included, present-day social media (FB, Groupon) is capable of creating efficiencies in existing businesses - mostly services and consumer based businesses - and therefore won't generate enough jobs to offset the ones that will steadily be lost.


"none of the examples proffered are positioned to be quite as opportune as Alvis seems to believe. They could be, but in practice have not been to-date. Perhaps an effort to persuade them differently, developed at the local societal level, would be a practicable first step in changing this circumstance."

I agree that I should've developed some richer scenarios to help make the case for more generative near-future social media. I plan to write a follow-up post addressing exactly this. But here are three examples more-or-less off the top of my head:

1) Groupon 2.0 shows that the company will eventually allow ALL businesses (with web access) to use the co-op / ad model. Perhaps in 1-2 years Groupon 3.0 or 4.0 will get us there. At that point it'll be available to organic farmers, wood furniture builders, lumberjacks, etc. Though these roles still make up a very small amount of the whole American Pie, they are more fundamental to core value growth.

2) Media. The advent of FB credits will eventually allow users to sell photos and other media directly to news sources and other media seekers, thus starting the process of cutting out high-margin big boyz like bigstockphoto and istockphoto. This will cannibalize existing media structures, but it will allow many more people to participate in the media economy and generate revenue (albeit less revenue than current "pros").

3) Agriculture. Imagine a system like CureTogether.com except called GrowTogether.com that encourages farmers of all sorts to input data from their growing process (be sure to imagine in cheaper temp, humidity sensor nets that link into smartphones). This network could help farmers make smarter decisions on the fly re: weather patterns, water usage, etc. This would especially help amateurs
or farmers with a lack of access to info. Over several seasons, this software would net a Farmers Graph and help individuals make better crop planting decisions, would take a % of human error out of the equation.

Hope these help make the case for the growing power of prosumerism.

Big thanks for the dialogue! Am eager to learn your thoughts on this "LLC" concept!!

Alvis Brigis said...
This comment has been removed by the author.
rashid1891 said...

I agree that I should've developed some richer scenarios to help make the case for more generative near-future social media. I plan to write a follow-up post addressing exactly this. But here are three examples more-or-less off the top of my head:

Anonymous said...

Be sure to read Martin Ford's book, The Lights in the Tunnel: Automation, Accelerating Technology and the Economy of the Future (free PDF at http://www.thelightsinthetunnel.com)

He deals with these questions at length, and I think, offers a pretty compelling solution.

Will Brown said...

Thank you Annonymous, I am doing just that.