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.

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Glyn Moody: Open for business Presentation Transcript

  • 1. open for business
      glyn moody
  • 2. good news, bad news
    • good news
      • we are living through a transition that is not just ”once in a lifetime”, but *once in a civilisation*
    • bad news
      • we haven't done this before, so we don't know how to do it
  • 3. blown to bits
    • ”once in a civilisation” transition
      • from a world of atoms to a world of atoms + bits
      • 4. from an analogue world to an analogue + digital one
    • analogue to digital media
      • vinyl LPs to CDs
      • 5. video tapes to DVDs
      • 6. books to ebooks
  • 7. the rise of the digital
    • analogue has been with us since the beginning of consciousness
    • 8. digital has been with us *longer* - since the beginning of life
  • 9. digital DNA
    • DNA consists of very long strings of Adenine, Cytosine, Guanine, Thymine – A,C,G,T
    • 10. this is a *digital* code:
      • A -> 00
      • 11. C -> 01
      • 12. G -> 10
      • 13. T -> 11
    • CGGTATAAT -> 011010110011000011
  • 14. life is digital
    • complex life would be impossible without digital information
    • 15. only digital information can be repeatedly copied faithfully
  • 16. the re-invention of digital
    • 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
  • 19. there is only one computer
    • one deep consequence of Turing's work is that it proved all (sufficiently powerful) computers are essentially the same
      • they can be made to emulate any other computer
      • 20. they can run any software written for any computer
  • 21. there is only one computer revolution
    • 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
  • 24. there is only one Internet revolution
    • 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
  • 27. the race to the bottom
    • 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
  • 29. of CDs...
    • first CD appeared in 1982
      • 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
  • 32. ...and MP3s
    • 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
  • 35. today
    • 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
  • 38. tomorrow
    • 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
  • 41. absolute zero
    • 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?
  • 43. DRM: less than zero
    • DRM is not the solution
      • 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
  • 47. the law is an ass
    • ”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
  • 49.
    • what's left?
    • 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
  • 54. what's GNU?
    • 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
  • 57. a change of heart
    • 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
  • 60. opening up
    • decentralised
      • anyone, anywhere, could join in
    • bottom-up
      • people fed suggestions, problems and solutions to Linus
    • collaboration easy
      • Internet was more affordable
    • scalable
      • no formal training required – everything is out in the open
  • 61. Linus' Law
    • 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
  • 64. power, economy, reliability
    • 91% of top 500 supercomputers run Linux
      • 1% run Microsoft Windows
    • Google runs its services on millions of servers running Linux
      • so does Facebook, Twitter etc.
    • Android mobile phone system runs on Linux
      • 400,000 handsets activated daily
      • 65. launched November 2007
  • 66. billion-dollar business
    • Red Hat (1993)
      • annual revenue to February 2011 $909 million; profit $107 million
    • main products
      • Red Hat Enterprise Linux
      • 67. Jboss Enterprise Middleware
    • services
      • consulting, customisation
      • 68. technical support
      • 69. training & certification
  • 70. easy as nails
    • Nine Inch Nails: Ghosts I-IV
      • 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...
  • 75. $300 deluxe edition
    • 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
      • 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
  • 79. sold out
    • despite the high price-tag, the Deluxe Edition sold out in two days
    • 80. limited to 2,500 copies
    • 81. gross income $750,000
  • 82. getting personal
    • Jill Sobule used a donation model
      • $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
  • 85. open opportunity
    • 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
  • 88. open innovation
    • 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
  • 91. open marketing & sales
    • 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”
  • 94. open products
    • builds closer links with customers
    • 95. openness allows greater customisation
      • greater need for post-sales input and consultancy
    • digital abundance makes new kinds of revenue streams based on scarcity possible
      • human-based services
      • 96. analogue goods
  • 97. open culture
    • going open has many other benefits
    • 98. encourages other companies to do the same
    • 99. encourages other open projects
      • open content, open access, open data, open science
    • increases the knowledge commons
    • 100. encourages open government
    • 101. generates new business opportunities
  • 102. open society
    • society based on openness and sharing
      • more collaborative
      • 103. more creative
      • 104. more innovative
      • 105. more efficient
      • 106. more sustainable
      • 107. more fair
      • 108. more happy
      • 109. more safe
  • 110. openness is inevitable
    • 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
  • 113. a binary choice
    • [email_address]
    • 114. twitter.com/glynmoody
    • 115. identi.ca/glynmoody
    • 116. opendotdotdot.blogspot.com