Umair Haque / Bubblegeneration
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Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.


 
Saturday, September 16, 2006

Edge Strategy


"...If you create value, you can make money. There are very few companies (if any) these days who have created something wildly successful but fail as a company because they can’t make money from it."

Says Ev; he's exactly right (if you've been following the discussion here).

-- umair // 11:44 AM // 7 comments


Comments:

There are tons of wildly successful things which do not make money, and they're all hyper social. They're called restaurants, bars, and nightclubs. Popularity is fleeting.
// Anonymous ted // 5:38 PM
 

Hi Ted,

It should be pretty clear that they have vastly different economics than what we're talking about.

There is a 10x + difference between social + hypersocial.

Thx for the comment.
// Blogger umair // 7:02 PM
 

Wildly successful hyper edge things that had/have no (legal) ways to monetize what they provided:-

Kazaa
Napster
Linux
Apache

Also: a 10 x difference in volume means a 10 x bigger financial disaster if the basic profitability is not there.
// Anonymous Anonymous // 11:06 PM
 

Rubbish. In science, you can disprove any theory by quoting just one counter example. Here are some edge creations that could not monetize despite volumes galore:-

Kazaa
Napster
Linux
Apache
// Anonymous web9.0 // 11:09 PM
 

Hey Ted/9.0,

1) Linux + Apache have zero profit motive.

2) You're talking about first generation p2p nets from 10 years ago; me/Ev are talking about...today.

3) As for science, in fact, your understanding of Popper's point is off the mark.

It was about framing hypotheses, not turning the world into black and white with simplistic single counter examples. Which is why we use statistics and significance tests, but your examples are don't even force us to go that far...

Thx for the comment.
// Blogger umair // 11:44 PM
 

Somewhat tangential but I just read this. Dave Winer wrote in 2001 about how users would drive companies and how companies should become fulfillment houses. Wondering if you think Dave is more right than wrong in his insight?

"Today's companies become fulfillment houses, building products on contract. Manufacturing margins will shrink, the real value will be in the insight -- this is what people want now -- and the risk taken that today few manufacturers seem willing to take.

But listening to users is actually not that easy. It's easier to *be* a user and make products for other users. And that my friends, the combination of user-based information exchange and products that reflect user experience and wants, is where money will be made on the Internet.

Dave Winer"
// Anonymous alcatholic // 1:08 AM
 

Somewhat tangential but I just read this. Dave Winer wrote in 2001 about how users would drive companies and how companies should become fulfillment houses. Wondering if you think Dave is more right than wrong in his insight?

"Today's companies become fulfillment houses, building products on contract. Manufacturing margins will shrink, the real value will be in the insight -- this is what people want now -- and the risk taken that today few manufacturers seem willing to take.

But listening to users is actually not that easy. It's easier to *be* a user and make products for other users. And that my friends, the combination of user-based information exchange and products that reflect user experience and wants, is where money will be made on the Internet.

Dave Winer"
// Anonymous alcatholic // 1:13 AM
 
 

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