Showing posts with label revenue models. Show all posts
Showing posts with label revenue models. Show all posts

Monday, May 18, 2020

The Pandemic Reminds Us "Everything is Deeply Intertwingled" – We Need Better Logics for That


A bat catches a cold in Wuhan, and weeks later the whole world coughs. America and China battle a trade war, and then there is a shortage of PPE and ventilator parts from China.  Poor neighborhoods suffer high death rates because of poor health, but even celebrities and heads of state go into ICUs.  The economy craters, and we argue over relief to businesses versus workers based on which is more disposed to misuse what they might be given.  Health officials say flatten the curve, financiers say reopen, and corporations say they don’t dare reopen without testing.  The Federal government is too polarized to fix much of anything, and has forgotten their real job of governing by consensus.  

Modern technologies of global connection -- both physical and virtual -- make the pandemic emerge in weeks instead of years, and make all the butterfly effects far more complex.  That is our new curse, but also our new blessing.  We have global travel and supply chains, global communications and media networks -- a global village composed of local villages.  Techies moved fast and broke society, and now discourse seems too polarized to fix it.

All of these effects are driven by market forces -- however regulated.  Marketplaces of goods and services and marketplaces of ideas.  These marketplaces are driven by complex interplays of top-down structure and bottom-up emergence from billions of actors --and systems of actors.  

Technology has made these forces more dynamic and turbulent, but technology can enable smarter and better-regulated marketplaces -- if we re-focus.  We cannot undo this onrushing dynamic -- we need to get smarter about how we use technology to help us go forward.

The pandemic may be the kick in the ass we need to reform society over a wide range of domains and levels.  Seeing the commonalities can help us capture a new synergy.  If rise to that challenge, the future will be bright. If we fail it will be dark.  Many see that, but few focus on the root causes. 

Peter Drucker said “The greatest danger in times of turbulence is not the turbulence, it is to act with yesterday’s logic.” Two new logics can help us correct the failures of our current logics.

Ever-growing intertwingularity

The problem we now face all too urgently is that our lives are all deeply intertwingled, but we fall back to simplistic “fast” thinking with rigid categories and institutions.  Some leaders rise to the challenge and others flail, and we argue over who does which.  The regulation of our marketplace of ideas that “mediates consent” about facts has broken down, as has our social/economic marketplace.  These problems are difficult and complex – but we can get smarter about solving them – the first order and second order effects.  (To get a sense of the range of these issues, see this briefing by Tony O’Driscoll [since adapted for publication] and this McKinsey report. To see how this has reopened old questions, and may provide an opening for new thinking, see this NY Times report on the shifting issues for the 2020 election.)
 
The symbolic circle of the Tao reminds us of that truth is never entirely black or white, but shades of gray that depend on the light we view it in and the perspective we view it from.  Just how much is subject to argument, discovery, and rediscovery, as reality emerges.  This is age-old, but it is more urgent than ever that we come to grips with it.  2020 will mark a turning point in human history.

For decades our world and our markets have been increasingly stressed, even as we seemed to be progressing.  Tensions of nationality, race, ideology, religion, economics, technology, and governance are raging.  Things fall apart; the centre cannot hold /…The best lack all conviction, while the worst / Are full of passionate intensity.”  It is now urgent that we re-center more wisely on our better convictions.

The Enlightenment has run aground because those who saw the light and had the benefits did not pay enough attention to sharing that.  Liberals turned away from “the deplorables” instead of caring for and raising them up.  Capitalists extracted short-term profits and enriched themselves with stock buybacks -- exploiting workers instead of empowering them.  Factions and political parties fought zero-sum struggles to control the existing pie instead of engaging in win-win cooperation to create and share a larger pie.

The Chinese ideograph for crisis is composed from the characters for danger plus opportunity.  Many retreat in fear of the danger and seek to throw blame and erect walls, but wiser heads look to the opportunity.  Most see opportunity in narrow domains, but some look to the big picture.  We now face an urgent and historic opportunity to refocus on a more enlightened and productive kind of cooperation across the full range of issues.

Those who see and work on these problems in particular domains of concern and expertise can unite in spirit and vision with those in other domains.  We can forge a new Age of Enlightenment – a Reformation of The Enlightenment.  An awakening of interconnection and cooperative spirit is emerging.  Our challenge is to synergize it.  Some elements:
  • Economic and health insecurity for some leads to insecurity for all.  A safety net is needed.
  • Market systems need slack to respond to black swan events.  “Just-in-time” and “lean” are efficient only when not overstressed.  Global supply chains need resilience and redundancy. Too much slack and safety drain our wealth and will, but too little lead to disaster.
  • Moving fast and breaking things can break things that cannot be fixed.  Experience can blind us, but inexperience can kill.
  • Power among local, state, national, and global government must be properly balanced and adaptable to stress.  Power and wealth must be shared fairly among people, factions, and nations, or those left wanting will throw rocks at the crystal palace.  The resurgence of nationalism, factionalism, and the crisis of disinformation are symptoms of perceived unfairness.  Government that is too small is just as bad as too big.

Our modern, high-tech world is far too complex for purely top-down or bottom-up management and governance -- we need a smart and adaptive blend. That requires openness, transparency, trust, and fairness, so even when there is disagreement, there is a common sense of reasonableness and good spirit.

New Logics for Intertwingularity

My recent work has focused on two new ways to deal better with this growing complexity.  These new logics that do not just exhort people to be better and wiser, but better align interests so that virtue is rewarded. 

One relates to failures of our marketplace of ideas – especially our social media and other collaborative systems.  Computer-augmented human collaboration first emerged in the 1960s, and was used for disaster preparedness (natural and nuclear).  It progressed slowly until the Web made it far more powerful and accessible to consumers, but we failed to direct those social media systems to serve us well.  Struggling to find a business model, they hit on advertising. We now recognize that to be “the original sin of the Internet” because it misdirects our platforms to serve advertisers and not users.  Algorithms can help augment human intelligence to make us smarter collectively -- instead of making us stupider, as social media now do.  Systems that elucidate nuance, context, and perspective can empower us to draw out and augment the wisdom of crowds (as explained in detail on this blog) to deal more smartly with our deeply intertwingled world.  That could drive a new Age of Enlightenment in which technology augments the marketplace of ideas in the ways that we have always relied on to mediate consent – an emergent mix of top-down guidance and bottom-up emergence that can lead to new, yet natural, forms of digital democracy.

The other relates to failures of our economic marketplace – how we can shift from the short-term. zero-sum logic of extractive mass-market capitalism to more long-term, win-win forms of market cooperation.  That can restore the emergent, distributed, and human logic of traditional markets that Adam Smith saw as socially beneficial -- before modern mass-marketing alienated producers from consumers and lost sight of broader human values.  Our digital economy now enables new ways to shift from fighting over a current pie to cooperating to co-create a larger pie -- and to share it fairly.  That logic can empower a reformation of market capitalism from within that could actually be more profitable, and thus self-motivating.  We can apply the power of computer-mediated marketplaces to let businesses and consumers negotiate at a human level -- about the values they care about, how to co-create that value, and how to share in the benefits.  We have begun to think in terms of customer journeys, but have been trying to fit customers into segments or personas. Instead, we need to design for segments of one that are custom-fit to each customer, to build relationships with each customer on human terms.

These two logics are interrelated: a flawed economic logic for consumer platform services has been built on advertising revenue (“the Internet’s original sin”). That has warped incentives to favor engagement with junk content that sells ads, rather then the value to users of quality content. An improved logic for value will create incentives for our platforms to facilitate a logic for a better marketplace of ideas.

The brief descriptions of these new logics may sound like just more exhortations, but the posts that they link to provide details of operational mechanisms -- and evidence that their elements have proven effective.  These new combinations of elements can quickly become second nature, because they draw on and re-channel natural behaviors that promise to make them highly self-reinforcing.

Many allied visions for better logics of emergence are finding new relevance in this era of crisis.  We have only to join together and rise to the occasion.  We say that “we are all in this together” – we need to open our minds to really think that way, and to work with new logics and “choice architectures” that make that natural.  With better logics, our instinctive behaviors can once again synergize to flow in increasingly enlightened ways.

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For more about the new logic for the marketplace of ideas (and intertwingularity in general), see this list of selected items on the SmartlyIntertwingled.com blog.

For more about the new logic for the economic marketplace, see this list of selected items on the FairPayZone.com blog.

Thursday, December 26, 2019

2020 Vision -- The Restoration of the Customer

The Age of the Customer: You Ain't Seen Nothin' Yet

Nearly a decade has passed since Forrester said we were entering The Age of the Customer. That is apparent and has obvious implications. But as the decade of the 2020's dawns, I call out a deeper vision -- The Restoration of the Customer -- that could bring far more fundamental changes in the coming decade.

There are two surprising turns that may be taken in this decade to restore power to customers -- one that can fundamentally change how we conduct business, and one that can fundamentally change how we collaborate.

Those turns might just begin to undo many of the ills of the industrial revolution and of the computer revolution.  Both turns center on a return to enlightened human values:
  • The customer is not just a persona with a bundle of attributes that a business can learn how to manipulate, but a unique human being that has been bred since pre-history to thrive on a cooperative effort to create value and share it.
  • The user is not just a a source of attention that can be engaged to be sold to advertisers, but a customer to be served what they value -- again, a cooperative effort to create value and share it.
What those paying attention see

Forrester put the basic drivers nicely (emphasis added):
In this era, digitally-savvy customers would change the rules of business, creating extraordinary opportunity for companies that could adapt, and creating existential threat to those that could not. ...It requires leaders to think and act differently – in ways that feel foreign, unfamiliar, and counter-intuitive. And honestly, it is simply hard to do. ...These dynamics will endure as new technologies like artificial intelligence and robotics emerge to challenge core notions of what it means to be a company, what it means to build human capital, and what it means to compete and win.
...And, a deeper vision

Here I point to some little recognized ideas on how re-centering on value can change not only the dynamic of commerce, but also a parallel dynamic of customer value that is equally important.
  • First, the commercial dynamic that Forrester describes is just the foundation for reversing how the "progress" of technology cost us the human dimension in commerce -- a dimension that we had when commerce was just the way villagers did business with one another -- with human beings on both sides of an ongoing relationship. 
  • Second, we humans, as "customers" of Web services, have lost control of our experience of the world.  Our central experience of human interaction has been hijacked by platforms who "engage" us in order to profit from bombarding us with advertising and paid propaganda.
First: Back to the future of commerce

Consumers are increasingly alienated from the companies they do business with. Instead of neighbors or shopkeepers, we deal with soulless institutions that we distrust and feel abused by. That has been, increasingly, the price of productivity and material riches. But now technology has advanced far enough to restore the dimension of human values -- if we applied to do so. That does not require that we abandon the miracle of capitalism, but only that we bring it back to the marketplace of human value. Technology now makes it possible for even large faceless institutions to build human interfaces that behave with human values. That will drive institutions to interact with human in ways that are more truly human.

FairPay is a framework for centering on why and how to do that. The key is to recenter on relationships and the creation and sharing of value in ways that are tailored to each individual. Specifics on how to do that are in my FairPayZone blog, some articles written with prominent marketing scholars, and my 2016 book. Some of the best places to begin to understand this are:
Second: Who does it serve? - a course correction in how we experience the world

Social media and other online content services have changed how we experience the world, including how we interact with other people. Computer-mediation began with great hopes, but now it seems we have built a Frankenstein's monster.  As growing calls for change are beginning to focus on new levels of regulation, it is not enough to regulate against specific harms. Instead we must refocus on what we want to regulate for -- who these "services" serve, and what we want these platforms to facilitate. They were supposed to make us happy and smart -- instead they are making us angry and stupid. But technology can reverse that, if we incentivize that.

We can design new architectures for our interactive media that create value for us.  The key is to recognize that each of us is an individual, and we should be able to individualize our services, mixing and matching offerings to make just the service we want for what we are doing now. The most urgent part of that is to shape our media services to give each of us what we value. The Web stated out seeking to do that, and we can return to that vision. It won't be free, but it can be affordable. And we have seen that "free" is not really affordable (because it is not really free). If we do not change direction, our democracies and our civilization will collapse. Some starting points for seeing how:

(Cross-posted with my other blog, FairPayZone.)

Wednesday, July 24, 2019

To Regulate Facebook and Google, Turn Users Into Customers

First published in Techonomy, 2/26/19 -- and more timely than ever...

There is a growing consensus that we need to regulate Facebook, Google, and other large internet platforms that harm the public in large part because they are driven by targeted advertising.  The seductive idea that we can enjoy free internet services — if we just view ads and turn over our data — has been recognized to be “the original sin” of the internet.  These companies favor the interests of the advertisers they profit from more than the interests of their billions of users.  They are powerful tools for mass-customized mind-control. Selling their capabilities to the highest bidder threatens not just consumer welfare, but society and democracy.

There is a robust debate emerging about how these companies should be regulated. Many argue for controls on data use and objectionable content on these platforms.  But poorly targeted regulation risks many adverse side-effects – for example abridging legitimate speech, and further entrenching these dominant platforms and impeding innovation by making it too costly for others to compete.

But I believe we need to treat the disease, not just play whack-a-mole with the symptoms. It’s the business model, stupid! It is widely recognized that the root cause of the problem is the extractive, ad-funded, business model that motivates manipulation and surveillance.  The answer is to require these companies to shift to revenue streams that come from their users.  Of course, shifting cold-turkey to a predominantly user-revenue-based model is hard.  But in reality, we have a simple, market-driven, regulatory method that has already proven its success in addressing a similarly challenging problem – forcing automakers to increase the fuel efficiency of the cars they make. Government has for years required staged multi-year increases in Corporate Average Fuel Efficiency. A similar strategy can be applied here.

This market-driven strategy does not mandate how to fix things. It instead mandates a measurable limit on the systems that have been shown to cause harm.  Each service provider can determine on their own how best to achieve that.  Require that X% of the revenue of any consumer data service come from its users rather than advertisers.  Government can monitor their progress, and create a timetable for steadily ratcheting up the percentage.  (This might apply only above some amount of revenues, to limit constraints on small, innovative competitors.)

It is often said of our internet platforms that “if you are not the customer, you are the product.”  This concept may oversimplify, but it is deeply powerful.  With or without detailed regulations on privacy and data use, we need to shift platform incentives by making the user become the customer, increasingly over time.

Realigning incentives for ads and data.  Advertising can provide value to users – if it is targeted and executed in a way that is non-intrusive, relevant, and useful.  The best way to make advertising less extractive of user value is by quantifying a “reverse meter” that gives users credit for their attention and data.  Some services already offer users the option to pay in order to avoid or reduce ads (Spotify is one example).  That makes the user the customer. Both advertisers and the platforms benefit by managing user attention to maximize, rather than optimize for exploitive “engagement.”

What if the mandated user revenue level is not met?  Government could tax away enough ad revenue to meet the target percentage.  That would provide a powerful incentive to address the problem.  In addition, that taxed excess ad revenue could fund mechanisms for oversight and transparency, for developing better solutions, and for remediating disinformation.

Can the platforms really shift to user revenue?  Zuckerberg has been a skeptic, but none of the big platforms has tried seriously.  When the platforms realize they must make this change, they will figure out how, even if it trims their exorbitant margins.
Users increasingly recognize that they must pay for digital services.  A system of reverse metering of ads and data use would be a powerful start.  Existing efforts that hint at the ultimate potential of better models include including crowdfundingmembership models, and cooperatives. Other emerging variations promise to be adaptive to large populations of users with diverse value perceptions and abilities to pay.

A growing focus on customer value would move us back towards leveraging a proven great strength of humanity — the deeply cooperative behavior of traditional markets.

A simple mandate requiring internet platforms to generate a growing percentage of revenue from users will not cure all ills. But it is the simplest way to drive a fundamental shift toward better corporate behavior.

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Coda, 7/24/19:

Since the original publication of this article, this issue has become even more timely, as the FTC and Justice Department begin deep investigation into the Internet giants. 

  • There is growing consensus that there is a fundamental problem with the ad- and data-based business model
  • There is also growing consensus that we must move beyond the narrow theory of antitrust that says there can be no "harm" in a free service that does not raise direct costs to consumers (but does raise indirect costs to them and limits competition). 
  • But the targeted strategies for forcing a fundamental shift in business models outlined here are still not widely known or considered
  • It primarily focuses on these business model issues and regulatory strategies (including the auto emissions model described here), and how FairPay offers an innovative strategy that has gained recognition for how it can generate user revenue in equitable ways that do not prevent a service like Facebook or Google from being affordable by all, even those with limited ability to pay.
  • It also links to a body of work "On the deeper issues of social media and digital democracy." That includes Google-like algorithms for getting smarter about the wisdom of crowds, and structural strategies for regulation based on the specific architecture of the platforms and how power should be modularized (much as smart modularization was applied to regulating the Bell System and enabling the decades of robust innovation we now enjoy.)

Tuesday, April 09, 2019

A Regulatory Framework for the Internet (with Thanks to Ben Thompson)

Summarizing Ben Thompson of Stratechery, plus my own targeted proposals

"A Regulatory Framework for the Internet," Ben Thompson's masterly framework, should be required reading for all regulators, as well as anyone concerned about tech and society. (Stratechery is one of the best tech newsletters, well worth the subscription price, but this article is freely accessible.)

I hope you will read Ben's full article, but here are some points that I find especially important, followed by the suggestions I posted on his forum (which is not publicly accessible).

Part I -- Highlights from Ben's Framework (emphasis added)

Opening with the UK government White Paper calling for increased regulation of tech companies, Ben quotes MIT Tech Review about the alarm it raised among privacy campaigners, who "fear that the way it is implemented could easily lead to censorship for users of social networks rather than curbing the excesses of the networks themselves."

Ben identifies three clear questions that make regulation problematic:
First, what content should be regulated, if any, and by whom?
Second, what is a viable way to monitor the content generated on these platforms?
Third, how can privacy, competition, and free expression be preserved?

Exploring the viral spread of the Christchurch hate crime video, he gets to a key issue:
What is critical to note, though, is that it is not a direct leap from “pre-Internet” to the Internet as we experience it today. The terrorist in Christchurch didn’t set up a server to livestream video from his phone; rather, he used Facebook’s built-in functionality. And, when it came to the video’s spread, the culprit was not email or message boards, but social media generally. To put it another way, to have spread that video on the Internet would be possible but difficult; to spread it on social media was trivial.
The core issue is business models: to set up a live video streaming server is somewhat challenging, particularly if you are not technically inclined, and it costs money. More expensive still are the bandwidth costs of actually reaching a significant number of people. Large social media sites like Facebook or YouTube, though, are happy to bear those costs in service of a larger goal: building their advertising businesses.

Expanding on business models, he describes the ad-based platforms as "Super Aggregators:"
The key differentiator of Super Aggregators is that they have three-sided markets: users, content providers (which may include users!), and advertisers. Both content providers and advertisers want the user’s attention, and the latter are willing to pay for it. This leads to a beautiful business model from the perspective of a Super Aggregator:
Content providers provide content for free, facilitated by the Super Aggregator
Users view that content, and provide their own content, facilitated by the Super Aggregator
Advertisers can reach the exact users they want, paying the Super Aggregator 
...Moreover, this arrangement allows Super Aggregators to be relatively unconcerned with what exactly flows across their network: advertisers simply want eyeballs, and the revenue from serving them pays for the infrastructure to not only accommodate users but also give content suppliers the tools to provide whatever sort of content those users may want.
...while they would surely like to avoid PR black-eyes, what they like even more is the limitless supply of attention and content that comes from making it easier for anyone anywhere to upload and view content of any type.
...Note how much different this is than a traditional customer-supplier relationship, even one mediated by a market-maker... When users pay they have power; when users and those who pay are distinct, as is the case with these advertising-supported Super Aggregators, the power of persuasion — that is, the power of the market — is absent.
He then distinguishes the three types of "free" relevant to the Internet, and how they differ:
“Free as in speech” means the freedom or right to do something
“Free as in beer” means that you get something for free without any additional responsibility
“Free as in puppy” means that you get something for free, but the longterm costs are substantial
...The question that should be asked, though, is if preserving “free as in speech” should also mean preserving “free as in beer.”
Platforms that are paid for by their users are "regulated" by the operation of market forces, but those that are ad-supported are not, and so need external regulation.

Ben concludes that:
...platform providers that primarily monetize through advertising should be in their own category: as I noted above, because these platform providers separate monetization from content supply and consumption, there is no price or payment mechanism to incentivize them to be concerned with problematic content; in fact, the incentives of an advertising business drive them to focus on engagement, i.e. giving users what they want, no matter how noxious.
 This distinct categorization is critical to developing regulation that actually addresses problems without adverse side effects
...from a theoretical perspective, the appropriate place for regulation is where there is market failure; constraining the application to that failure is what is so difficult.
That leads to Ben's figure that brings these ideas together, and delineates critical distinctions:


I agree completely, and build on that with my two proposals for highly targeted regulation...

Part II -- My proposals, as commented on in the Statechery Forum 
(including some minor edits and portions that were abridged to meet character limits):

Elegant model, beautifully explained! Should be required reading for all regulators.

FIRST:  Fix the business model! I suggest taking this model farther, and mandating that the "free beer" ad-based model be ratcheted away once a service reaches some critical level of scale. That would solve the problem -- and address your concerns about competition.

Why don't we regulate to fix the root cause? The root cause of Facebook's abuse of trust is its business model, and until we change that, its motivations will always be opposed to consumer and public trust.

Here is a simple way to force change, without over-engineering the details of the remedy. Requiring a growing percentage of revenue from users is the simplest way to drive a fundamental shift toward better corporate behavior. Others have suggested paying for data, and I suggest this is most readily done in the form of credits against a user service fee. Mandating that a target level of revenue (above a certain level) come from users could drive Facebook to offer such data credits, as a way to meet their user revenue target (even if most users pay nothing beyond that credit). We will not motivate trust until the user becomes the customer, and not the product.

There is a regulatory method that has already proven its success with a similarly challenging problem – forcing automakers to increase the fuel efficiency of the cars they make. The US government has for years mandated staged multi-year increases in Average Fuel Efficiency. This does not mandate how to fix things. It mandates a limit on the systems that have been shown to cause harm. Facebook and YouTube can determine how best to achieve that. Require that X% of the revenue come from users rather than advertisers. Government can monitor progress, with a timetable for ratcheting up the percentage. (This should apply only above some amount of revenues, to facilitate competition.)

With that motivation, Facebook and YouTube can be driven to shift from advertising revenue to customer revenue. That may seem difficult, but only for lack of trying. Credits for attention and data are a just a start. If we move in that direction, we can be less dependent on other, more problematic, kinds of regulation.

This regulatory strategy is outlined in To Regulate Facebook and Google, Turn Users Into Customers (in Techonomy). More on why that is important in Reverse the Biz Model! -- Undo the Faustian Bargain for Ads and Data. (And some suggestions on more effective ways to obtain user revenue:  Information Wants to be Free; Consumers May Want to Pay, (also in Techonomy.)

SECOND: Downrank dissemination, don't censor speech! Your points about limiting user expression, and that the real issue is harmful spreading on social media, are also vitally important.

I say the real issue is:
  1.  Not: rules for what can and cannot be said – speech is a protected right
  2.  But rather: rules for what statements are seen by who – distribution (how feeds are filtered and presented) is not a protected right.
The value of a social media service should be to disseminate the good, not the bad. (That is why we talk about “filter bubbles” – failures of value-based filtering.)

I suggest Facebook and YouTube should have little role in deciding what can be said (other than to enforce government standards of free speech and clearly prohibited speech to whatever extent practical).  What matters is who that speech is distributed to, and the network has full control of that.  Strong downranking is a sensible and practical alternative to removal -- far more effective and nuanced, and far less problematic.

I have written about new ways to use PageRank-like algorithms to determine what to downrank or uprank – “rate the raters and weight the ratings.”
  • Facebook can have a fairly free hand in downranking objectionable speech
  • They can apply community standards to what they promote -- to any number of communities, each with varying standards.
  • They could also enable open filtering, so users/communities can chose someone else’s algorithm (or set their preferences in any algorithm). 
  • With smart filtering, the spread of harmful speech can be throttled before it does much harm.
  • The “augmented wisdom of the crowd” can do that very effectively, on Internet scale, in real time.
  • No pre-emptive, exclusionary, censorship technique is as effective at scale -- nor as protective of free speech rights or community standards.
That approach is addressed at some length in these posts (where “fake news” is meant to include anything objectionable to some community):
…and some further discussion on that:
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More of my thinking on these issues is summarized in this Open Letter to Influencers Concerned About Facebook and Other Platforms

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See the Selected Items tab for more on this theme.

Thursday, January 03, 2019

2019 New Year's Resolution: Let's Work Together to Invent a Better 2020!

My forecast for 2019: The best way to predict the future is to invent it -- let's work together on inventing a better 2020!

We face two over-arching and related challenges, one in the world of technology, and one in the larger world of enlightened democratic society.

At the broadest level, 2019 promises to be perhaps the worst and most traumatic year in recent American history. My point is not one of politics or policy (I bite my tongue), but of our basic processes of democratic society -- how we all work together to understand the world and make decisions. We now see all to well how much harm technology has done to that -- not by itself, but as an amplifier of the worst in us.

Within that world of technology, many have come to realize that we have taken a wrong turn in building vast and deeply influential infrastructures that are sustained by advertising. That perverts the profit incentive from creating value for we the people, to exploiting us to profit advertisers. That drive for engagement and targeting inherently conflicts with the creation of real value for users and society. We seem to not even be looking very hard for any solution beyond band-aids that barely alter 1) the perverse incentives of advertising, and 2) the failing zero-sum economics of artificial scarcity.

We seem to be at a loss for how to solve these problems at either level. I suggest that is simply a failure of will, imagination, and experimentation that we can all help rectify. Many prominent thought leaders have said much the same. I list some of them, and offer creative suggestions in An Open Letter to Influencers Concerned About Facebook and Other Platforms. I hope you will read it, as well as the related material it links to.

My suggestions are more specific, actionable, and practicalThat letter summarizes and links to ideas I have been developing for many years, but have taken on new urgency. They are well-supported, but as yet unproven in their full form. I can't be sure that my solutions will work, but there seems to be growing consensus that the problems are real, even if few have suggested any actionable path to solving them. (I have been a successful inventor and futurist for many decades. I have often been wrong about details of my answers, but have rarely have been far wrong about problems and issues. Very smart and well-informed people think I am on the right track here.)

But whether or not I am right about the solutions, we all have to make it a priority try to find, test, and refine the best solutions we can to confront these critical problems.

Still, few in technology, business, or government have turned from business as usual to rise to the urgent challenges we now face -- and even those who alert us to these problems seem to have few concrete strategies for effective action.

Please consider the urgency and importance of these issues at both levels, see if my suggestions or those of others resonate -- and add your voice in those directions -- or work to suggest better directions.

If we do not begin to make real progress in 2019, we may face a very dark 2020 and beyond.

If we do begin to turn this ship around, we can recharge the great promise of technology to augment our intellect and our society, and to create a new economics of abundance.

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This is cross posted from both of my blogs, FairPayZone.com and Reisman on User-Centered Media, which delve further into these issues.