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COEFFICIENTS
                        OF FRICTION


                        SOLVEfor
                        INTERESTING
                        OTHERWISE LIFE IS DULL.
Thursday, 19 July, 12
AKA
                        THRUST AND LUBE


                        SOLVEfor
                        INTERESTING
                        OTHERWISE LIFE IS DULL.
Thursday, 19 July, 12
bit.ly/Leanfriction/
Thursday, 19 July, 12
2.5% of      20% of your
                        your weight   food & oxygen
           100                                            Brain
                                                          Body
              75

              50

              25

                  0
                        Body mass     Calories consumed



Thursday, 19 July, 12
85% of brain
                   growth
               happens in the
               first 3 years so
                 you can be
               born without
                killing your
                  mother.

Thursday, 19 July, 12
YOU WERE LITERALLY
                   BUILT TO THINK.

Thursday, 19 July, 12
We have such lofty
                           aspirations.



Thursday, 19 July, 12
http://www.flickr.com/photos/electropod/5327967258
Thursday, 19 July, 12
Thursday, 19 July, 12
http://www.flickr.com/photos/fiddleoak/6218482933
Thursday, 19 July, 12
But your brain writes
                        checks your body can’t
                                 cash.


Thursday, 19 July, 12
Atoms = friction.
   Friction sucks.




                        http://www.flickr.com/photos/access/2165374689 by Access. Denied
Thursday, 19 July, 12
Just about the only thing
                         we’re great at is long
                          distance running.


Thursday, 19 July, 12
The spirit is eager, but the
                         flesh is wussy.



Thursday, 19 July, 12
Good ideas,
                        lousy containers.



Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
http://www.flickr.com/photos/opensourceway/7496799718
Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
http://bs.cyty.com/menschen/e-etzold/archiv/TV/rca/img/rca1956ad.jpg




Thursday, 19 July, 12
Photo by DVIDSHUB on Flickr (http://www.flickr.com/photos/dvids/4417086779)
Thursday, 19 July, 12
Levers,
                        pulleys,
                        wheels.




Thursday, 19 July, 12
Photo by ♀Μøỳαл_Bгεлл♂; used under a creative commons license.
                                      http://www.flickr.com/photos/aigle_dore/5952302862
Thursday, 19 July, 12
We’ve spent the last
   100,000 years fighting
   friction with thrust.




                        http://www.flickr.com/photos/statelibraryofvictoria_collections/5599297439
Thursday, 19 July, 12
STEAM WILL
                        SET US FREE.

Thursday, 19 July, 12
Photo by Steven De Polo on Flickr (http://www.flickr.com/photos/stevendepolo/4550903693)
Thursday, 19 July, 12
Beasts of burden
                        without the whining.



Thursday, 19 July, 12
The industrial era
               fundamentally rewrote the
                 thrust/friction equation.


Thursday, 19 July, 12
The means of
         (mass) production




 Photo by Nevada Tumbleweed (Mark Holloway) on Flickr http://www.flickr.com/photos/us_army_rolling_along/4241473639
Thursday, 19 July, 12
In thrust, bigger is better
               (more thrust fights more friction.)




Thursday, 19 July, 12
Thursday, 19 July, 12
Regulation & legislation

                           How big
                                              Materials      Labor       Capital
                        companies
                        think about
                        competitive                              Processes


                        advantage.
                         (with apologies to               Distribution
                           Michael Porter.)




Thursday, 19 July, 12
Regulation & legislation


                         Materials      Labor       Capital




           Control the                      Processes

      infrastructure.
                                     Distribution




Thursday, 19 July, 12
Regulation & legislation


                              Materials      Labor       Capital




                  Train the                      Processes

                workforce.
                                          Distribution




Thursday, 19 July, 12
Regulation & legislation


                              Materials      Labor       Capital




                Lock up the                      Processes

                   capital.
                                          Distribution




Thursday, 19 July, 12
Regulation & legislation


                                     Materials      Labor       Capital




                        Patent the                      Processes

                         process.
                                                 Distribution




Thursday, 19 July, 12
Regulation & legislation


                                      Materials      Labor       Capital




                        Control the                      Processes

                         channel.
                                                  Distribution




Thursday, 19 July, 12
Regulation & legislation


                              Materials      Labor       Capital




                  Lobby the                      Processes

                regulators.
                                          Distribution




Thursday, 19 July, 12
Barriers to entry in a
              thrust world

         Economies Vertical Access to
          of scale integration capital




Thursday, 19 July, 12
http://www.flickr.com/photos/juggernautco/225260288
Thursday, 19 July, 12
Which is
              why your
              org chart
              came from
              the civil
              war.


Thursday, 19 July, 12
EFFICIENCY
                           DRIVES
                        CONSUMPTION.

Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
Uses 75% less coal
Thursday, 19 July, 12
WTF?




Thursday, 19 July, 12
Shouldn’t more efficiency
                mean less consumption?



Thursday, 19 July, 12
Now      2010     2009     2007

                        Server   Server   Server   Server
                                 Server   Server   Server
                                          Server   Server
                                          Server   Server
                                                   Server
                                                   Server
                                                   Server
                                                   Server


                                                   A rack


Thursday, 19 July, 12
2007   2006   2004   2002




                                             A row

Thursday, 19 July, 12
2002   2001   1999       1997




                                             A data center

Thursday, 19 July, 12
Today’s server
                   is yesterday’s data center.



Thursday, 19 July, 12
So why
              are we
           building data
             centers?




Thursday, 19 July, 12
Efficiency creates demand.




Thursday, 19 July, 12
Gates envisioned a
                        computer in every
                           household.


Thursday, 19 July, 12
SMARTPHONES
                         (Picard uses Android)
Thursday, 19 July, 12
SOFTWARE
                        EATS EVERYTHING.

Thursday, 19 July, 12
Software eats
                                              everything.




                        Digital                 Digital
                        inputs    Software     outputs

Thursday, 19 July, 12
Lube, not
                          thrust.




Thursday, 19 July, 12
THE TRAVEL AGENCY




                                   http://www.flickr.com/photos/uggboy/4158150814
Thursday, 19 July, 12
THE RECORDING
                          INDUSTRY



                                http://www.flickr.com/photos/saucysalad/3640865387
Thursday, 19 July, 12
DVDS




                           http://www.flickr.com/photos/maladjusted/5207565912
Thursday, 19 July, 12
Don’t fight friction with thrust.
             Instead, reduce the friction.



Thursday, 19 July, 12
Every business that differentiates based
   on its ability to thrust is doomed.
Thursday, 19 July, 12
The world went from scarce,
                   resistant atoms to
                abundant, frictionless bits.


Thursday, 19 July, 12
ABUNDANCE, NOT
                           SCARCITY.

Thursday, 19 July, 12
Because > From




  Photo of Doc Searls from Wikipedia.
  Or because of it.
Thursday, 19 July, 12
Scarcity has value. But so
                       does abundance.



Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
“...every single thing I’ve done professionally
      since 1996 is a direct result of blogging.”
Thursday, 19 July, 12
Publishers “see content
                        as a scarcity we
                        produce and control.
                        Facebook and
                        Google ... see content
                        as an abundant
                        resource to learn from,
                        value and exploit.”

                                        Jeff Jarvis
Thursday, 19 July, 12
Frictionless supply means
                     endless demand.



Thursday, 19 July, 12
Make money because of
                             abundance.



Thursday, 19 July, 12
FIGHT THRUST
                         WITH LUBE.

Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
It’s easy to start something.




Thursday, 19 July, 12
Old model          New model
                   Upfront investment       Crowdfunding

                         Infrastructure         Cloud

                        Marketing costs      Social media

                Delivery, billing, fraud       Paypal

                        CRM, Intranet, IT       SaaS

                         Risk of failure        Lean

Thursday, 19 July, 12
http://www.flickr.com/photos/ecastro/3053916892/
Thursday, 19 July, 12
Photo by the US Army. Used under a Creative Commons license.
                            http://www.flickr.com/photos/soldiersmediacenter/4097699857




Thursday, 19 July, 12
                        Ready, aim, fire
                            is so 1995
Instead: aim, fire, ready




Thursday, 19 July, 12
(now bullets are free!)




Thursday, 19 July, 12
LEARNING FROM
              EVERYTHING, ALWAYS.

Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
h"p://www.flickr.com/photos/pixel_addict/465394708/?
Thursday, 19 July, 12
Thursday, 19 July, 12
Everything is an
                         experiment.



Thursday, 19 July, 12
Thursday, 19 July, 12
EMBRACE YOUR
                        INNER CYBORG.

Thursday, 19 July, 12
How do we make
                        sense of all this?
Thursday, 19 July, 12
Human/machine blends
                            always win.



Thursday, 19 July, 12
HT: Andrew Chen




Thursday, 19 July, 12
Thursday, 19 July, 12
The vertebrate eye is “backwards      The cephalopod eye is
           and upside down”. Light travels       constructed the “right way
           through cornea, lens, aqueous         out”, with the nerves
           fluid, blood vessels, ganglion         attached to the rear of the
           cells, amacrine cells, horizontal     retina. No blind spot.
           cells, and bipolar cells.




               Extension of the brain          Invagination of the head
Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
THREE CONCRETE
                          EXAMPLES

Thursday, 19 July, 12
http://gothamist.com/attachments/garth/2006_06_17_taxis.jpg Text
Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
Photo by Peak Educational Consulting LLC from http://www.futureeducators.org/goteach/2011/08/09/innov8-flip-it/
Thursday, 19 July, 12
Thursday, 19 July, 12
Can you get the
best teacher in
the world to your
classroom?
Cloud says yes.classroom
    Flipping the



http://www.flickr.com/photos/emilymills/7228318644
Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
Thursday, 19 July, 12
(phew)
                        CONCLUSIONS

Thursday, 19 July, 12
The next (fifty)
                        Billion-Dollar Companies.



Thursday, 19 July, 12
The best time of all
                         to be a disruptor.



Thursday, 19 July, 12
Embrace abundance and
          make money from because.



Thursday, 19 July, 12
Fire first. Scale later.
Thursday, 19 July, 12
Live in the data and act like
        everything is an experiment.



Thursday, 19 July, 12
Build for the day when
                          friction is gone.



Thursday, 19 July, 12
Thursday, 19 July, 12
Thanks!
                                   @acroll


                                   bit.ly/Leanfriction/

                        SOLVEfor
                        INTERESTING
                        OTHERWISE LIFE IS DULL.
Thursday, 19 July, 12

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Thrust and lube - Startupfest 2012