mind × the + gap

A really interesting article by the Editor in Chief at Wired magazine, Chris Anderson titled “Free! Why $0.00 Is the Future of Business” was the subject of much debate recently.

Accordingly to Chris, the economy of the brave new world is mainly driven by “scarcity” and “wastage” (as against to the old world concept of demand vs. supply). Out side of online business it may take a rather detailed and elaborate study to apply this new economy driver phenomenon to the world at large, such as manufacturing or airline industry.

Chris talks about six business models with examples that are used in the web2.0 economy, and goes on the indicate that all of them revolves around the concept of “Free!”.

At the same time, he argues that less successful (or failed) ventures have not appreciated the psychological bearer called “penny gap” which separates the cheap from the free.

Talking about “Freeconomics”, he says that what makes ‘free’ economically possible is known as externalities, a concept that holds that money is not the only scarcity in the world. Chief among the others are your time and respect, two factors that we’ve always known about but have only recently been able to measure properly. The “attention economy” and “reputation economy” are too fuzzy to merit an academic department, but there’s something real at the heart of both.

Some other interesting ‘observations’ include:

• Forty years ago, the principal nutritional problem in America was hunger; now it’s obesity, for which we have the Green Revolution to thank.
• Going from tens of dollars in the 1960s the cost of a transistor is approximately 0.000001 cent today for each of the transistors in Intel’s latest quad-core. This meant that we should start to “waste” transistors.
• If the unitary cost of technology is halving every 18 months, when does it come close enough to zero to say that you’ve arrived and can safely round down to nothing? The answer: almost always sooner than you think.
• In the Greek philosopher Zeno’s dichotomy paradox, you run toward a wall. As you run, you halve the distance to the wall, then halve it again, and so on. But if you continue to subdivide space forever, how can you ever actually reach the wall?
• Not too cheap to meter, as Atomic Energy Commission chief Lewis Strauss said in a different context, but too cheap to matter.

It would be interesting to look forward to his forthcoming book – “Free!”.

Here is the link to the whole article.

What is the reason for someone to create and maintain a Weblog?

Blog is a tool to put ideas, reactions and observations into public. A personal diary in public.

In the process, one creates content, expresses likes and dislikes (and gives opportunities to Web2.0 apps to sell you a relevant product!), have the contentment of speaking it out (and, in some cases, being ‘heard’ also), and it creates a possibility for an interaction for you where someone might respond to your views.

As to the frequency of blogging, I do not suppose there could be any rules as such. I think if you get one good idea per week to talk about in your blog, and you keep that practice for an year, effectively you would end up having about 50 good ideas. I would say, that makes a really productive year: 50 good ideas! Not bad…

This also goes on speaking about the new Social dynamics that the technology has infused among us.

On the downside, the chief one, as I see it, is that there is a real threat to a prospective book that one may write… All the ideas that one found worth talking about, are already in one’s blog in the public… What would one write a book about?

[Well, being conscious about this, I am keeping the topic and ideas about my book private 🙂 At the same time, I do wish to marshal certain skills for a more effective book by writing a blog.]

Having said that, if a blog manages to bring reputed and like-minded folks together and becomes interactive where people could review and audit ideas, concepts, observations of the peers’, it could surely lead towards a paper. And a paper that is peer-reviewed always carries higher credibility and authority compared to a book which practically anybody could write and publish.

So, essentially what I am saying is, if you are reading this, and if you do maintain a blog as well, go ahead, drop in a comment and I would have a look at your ‘stuff’ also…