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Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
Glyn Moody: Open for business
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Glyn Moody: Open for business

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A look at the ways in which openness of all kinds can benefit businesses.

A look at the ways in which openness of all kinds can benefit businesses.

Published in: Business, Technology
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  • 1. open for business <ul>glyn moody </ul>
  • 2. good news, bad news <ul><li>good news </li><ul><li>we are living through a transition that is not just ”once in a lifetime”, but *once in a civilisation* </li></ul><li>bad news </li><ul><li>we haven't done this before, so we don't know how to do it </li></ul></ul>
  • 3. blown to bits <ul><li>”once in a civilisation” transition </li><ul><li>from a world of atoms to a world of atoms + bits
  • 4. from an analogue world to an analogue + digital one </li></ul><li>analogue to digital media </li><ul><li>vinyl LPs to CDs
  • 5. video tapes to DVDs
  • 6. books to ebooks </li></ul></ul>
  • 7. the rise of the digital <ul><li>analogue has been with us since the beginning of consciousness
  • 8. digital has been with us *longer* - since the beginning of life </li></ul>
  • 9. digital DNA <ul><li>DNA consists of very long strings of Adenine, Cytosine, Guanine, Thymine – A,C,G,T
  • 10. this is a *digital* code: </li><ul><li>A -> 00
  • 11. C -> 01
  • 12. G -> 10
  • 13. T -> 11 </li></ul><li>CGGTATAAT -> 011010110011000011 </li></ul>
  • 14. life is digital <ul><li>complex life would be impossible without digital information
  • 15. only digital information can be repeatedly copied faithfully </li></ul>
  • 16. the re-invention of digital <ul><li>Nature got there first several billion years ago
  • 17. humans only got there about 70 years ago
  • 18. specifically, Alan Turing got there about 70 years ago with his description of a Turing machine </li></ul>
  • 19. there is only one computer <ul><li>one deep consequence of Turing's work is that it proved all (sufficiently powerful) computers are essentially the same </li><ul><li>they can be made to emulate any other computer
  • 20. they can run any software written for any computer </li></ul></ul>
  • 21. there is only one computer revolution <ul><li>not possible to limit computer advances to one particular field
  • 22. digital's 0s and 1s do not come in different flavours
  • 23. increase in speed, increase in capacity, decrease in size, decrease in cost affects *every* application of computing, not just one corner of it </li></ul>
  • 24. there is only one Internet revolution <ul><li>what applies to computers, applies equally to the Internet
  • 25. improvements in transmission speed and reductions in cost apply to *all* digital data that flows across it: there is no discrimination
  • 26. this is the essence of Net Neutrality </li></ul>
  • 27. the race to the bottom <ul><li>computer and Internet progress is a scalar quantity – its magnitude may vary, but its direction is constant – so there is an inevitable race to the bottom
  • 28. the cost of processing anything, storing anything and transmitting anything, tends ineluctably to zero </li></ul>
  • 29. of CDs... <ul><li>first CD appeared in 1982 </li><ul><li>without any kind of copy protection
  • 30. because it was impossible to copy the CD's 700 Mbytes of data: the 1983 IBM PC XT had a 10 Mbytes hard disc – less than one song
  • 31. similarly impossible to share it across the Internet: the Hayes Smartmodem, released in 1981, had a speed of 300 bits/s – about 400 hours to upload one song </li></ul></ul>
  • 32. ...and MP3s <ul><li>developed in early 1990s, just as Internet was taking off
  • 33. used clever tricks to reduce music file size to 10% of original – reduced time to upload file by factor of 10
  • 34. modem speed then 14.4 Kbit/s – less than one hour to upload/download one MP3 song: slow, but possible </li></ul>
  • 35. today <ul><li>Mbit/s broadband connection mean that entire films can now be shared
  • 36. P2P networks like BitTorrent make it even easier to distribute those files and share them in the background
  • 37. 1 Terabyte hard disc (1000 Gbytes) costs € 50; stores 150,000 MP3s </li></ul>
  • 38. tomorrow <ul><li>a 1 Petabyte (1000 Terabytes) USB stick will cost € 50 and store every song ever recorded in CD quality (no compression)
  • 39. a 1 Exabyte hard disc (1000 Petabytes) will cost € 50 and store every film ever recorded
  • 40. the race to the bottom will be over </li></ul>
  • 41. absolute zero <ul><li>the race to the bottom means any digital content can be copied and shared and hence acquired for a trivial cost that is tending to zero very rapidly
  • 42. what does this mean for business? </li></ul>
  • 43. DRM: less than zero <ul><li>DRM is not the solution </li><ul><li>DRM only needs to be broken once for content to be uploaded, copied and shared everywhere
  • 44. DRM will always be broken at least once
  • 45. DRM makes digital content less valuable than freely-available versions without it
  • 46. digital content with DRM is actually worth *less* than zero </li></ul></ul>
  • 47. the law is an ass <ul><li>”stricter” enforcement of copyright infringement laws is also counterproductive because it's predicated on attacking your actual or potential customers
  • 48. worse: many surveys show that unauthorised downloaders spend *more* on content - they are actually your *best* customers </li></ul>
  • 49. <ul><li>what's left? </li></ul><ul><li>to stop sharing of digital goods there is nothing
  • 50. the only option is to *embrace* it
  • 51. not surprisingly, first to do so was the world of computing
  • 52. free software/open source
  • 53. GNU/Linux </li></ul>
  • 54. what's GNU? <ul><li>GNU born in 1983 at MIT
  • 55. GNU is ”GNU's Not Unix” - a recursive acronym
  • 56. one man's attempt to create a free version of the leading Unix operating system </li></ul>
  • 57. a change of heart <ul><li>by 1991, GNU was still unfinished: it lacked a ”kernel” - the heart of the operating system
  • 58. in March 1991, 21-year-old student Linus Torvalds started writing one ”just for fun” – in his Helsinki bedroom
  • 59. key inflection was August 1991, when he opened up his ”Linux” project using the Internet </li></ul>
  • 60. opening up <ul><li>decentralised </li><ul><li>anyone, anywhere, could join in </li></ul><li>bottom-up </li><ul><li>people fed suggestions, problems and solutions to Linus </li></ul><li>collaboration easy </li><ul><li>Internet was more affordable </li></ul><li>scalable </li><ul><li>no formal training required – everything is out in the open </li></ul></ul>
  • 61. Linus' Law <ul><li>Eric Raymond: ”given enough eyeballs, all bugs are shallow”
  • 62. different people approach a problem in different ways
  • 63. adding more people increases the probability that someone’s approach will match the problem in such a way that the solution is obvious (”shallow”) to that person </li></ul>
  • 64. power, economy, reliability <ul><li>91% of top 500 supercomputers run Linux </li><ul><li>1% run Microsoft Windows </li></ul><li>Google runs its services on millions of servers running Linux </li><ul><li>so does Facebook, Twitter etc. </li></ul><li>Android mobile phone system runs on Linux </li><ul><li>400,000 handsets activated daily
  • 65. launched November 2007 </li></ul></ul>
  • 66. billion-dollar business <ul><li>Red Hat (1993) </li><ul><li>annual revenue to February 2011 $909 million; profit $107 million </li></ul><li>main products </li><ul><li>Red Hat Enterprise Linux
  • 67. Jboss Enterprise Middleware </li></ul><li>services </li><ul><li>consulting, customisation
  • 68. technical support
  • 69. training & certification </li></ul></ul>
  • 70. easy as nails <ul><li>Nine Inch Nails: Ghosts I-IV </li><ul><li>free – first 9 tracks
  • 71. $5 download – all 36 tracks
  • 72. $10 2xCD with 16-page PDF booklet
  • 73. $75 Ghosts I-IV in a hardcover fabric slipcase containing: 2 audio CDs, 1 data DVD with all 36 tracks in multi-track format, and a Blu-ray disc with Ghosts I-IV in high-definition 96/24 stereo and accompanying slideshow
  • 74. but that's not all... </li></ul></ul>
  • 75. $300 deluxe edition <ul><li>4-LP set of Ghosts I-IV on 180-gram vinyl in fabric slipcase
  • 76. separate, large, enhanced fabric slipcase containing 3 embossed, fabric-bound, hardcover books </li><ul><li>Book 1: 2xCDs, DVD, Blu-ray slideshow disc, as for $75 option
  • 77. Book 2: 48 pages of photographs
  • 78. Book 3: two exclusive art prints </li></ul></ul>
  • 79. sold out <ul><li>despite the high price-tag, the Deluxe Edition sold out in two days
  • 80. limited to 2,500 copies
  • 81. gross income $750,000 </li></ul>
  • 82. getting personal <ul><li>Jill Sobule used a donation model </li><ul><li>$10 – download; $25 - advance copy of CD; $100 – these plus T-shirt; $200 – free admission to her shows for a year
  • 83. $500 – mentions customer's name in instrumental track; $1000 – song written personally for customer
  • 84. $5000 – comes to your house and sings for you and friends; $10,000 - *you* get to sing on her CD </li></ul></ul>
  • 85. open opportunity <ul><li>allowing digital content to be shared freely doesn't mean it's impossible to make money
  • 86. make money in different ways
  • 87. but sharing digital content also brings other big benefits that can save and make money </li></ul>
  • 88. open innovation <ul><li>open development brings past and future users in early
  • 89. offer critiques of your ideas, plus their own
  • 90. allows collaboration with companies on pre-competitive work </li></ul>
  • 91. open marketing & sales <ul><li>when you allow digital content to be freely shared, you turn the Internet into part of your marketing department
  • 92. best kind of marketing: word-of-mouth recommendations to friends and family
  • 93. allows ”try-before-you-buy” </li></ul>
  • 94. open products <ul><li>builds closer links with customers
  • 95. openness allows greater customisation </li><ul><li>greater need for post-sales input and consultancy </li></ul><li>digital abundance makes new kinds of revenue streams based on scarcity possible </li><ul><li>human-based services
  • 96. analogue goods </li></ul></ul>
  • 97. open culture <ul><li>going open has many other benefits
  • 98. encourages other companies to do the same
  • 99. encourages other open projects </li><ul><li>open content, open access, open data, open science </li></ul><li>increases the knowledge commons
  • 100. encourages open government
  • 101. generates new business opportunities </li></ul>
  • 102. open society <ul><li>society based on openness and sharing </li><ul><li>more collaborative
  • 103. more creative
  • 104. more innovative
  • 105. more efficient
  • 106. more sustainable
  • 107. more fair
  • 108. more happy
  • 109. more safe </li></ul></ul>
  • 110. openness is inevitable <ul><li>the ”once in a civilisation” transition is unstoppable – you can't ”de-digitalise” the world
  • 111. the choice is between exploiting the resulting digital abundance by opening up...
  • 112. ...or watching your competitors do it first – and maybe closing down </li></ul>
  • 113. a binary choice <ul><li>[email_address]
  • 114. twitter.com/glynmoody
  • 115. identi.ca/glynmoody
  • 116. opendotdotdot.blogspot.com </li></ul>

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