January 6, 2010

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Back in the late ’70s I worked for awhile at the Psychical Research Foundation (whoa, it still exists), which lived in a couple of old houses — now long gone — on the campus of . The PRF was spun off of what was then called the Foundation for Research on the Nature of Man, or the Institute for Parapsychnology, and since re-branded as the Rhine Research Center. All of it began with Duke botanist J.B. Rhine’s work toward understanding what he called extrasensory perception, or ESP. This work eventually veered outside Duke’s comfort zone, so it spun out in such a way that it was at Duke but not of it.

The PRF’s work had to do with academic study of the possibility of life after death. Far as I know it never found much evidence, but it was fun helping them try, and even more fun writing about it, which was my job there.

In the midst of that work, I produced a fake research paper, as a joke, put a big pile of copies in the midst of other papers offered at a psychical research convention (yes, they had those, and they were quite serious), and waited for nature to take its course.

The paper was called “Psi Burn,” and claimed that psychical research itself caused fun forms of harm. (Psi is a catch-all term for paranormal powers) I wish I had one in front of me, but I don’t. Omni 1978_12 - DecemberI do remember that the sources included titles such as “Twenty cases suggestive of intoxication” (or maybe it was “Twenty copies suggestive of reproduction”), “A second report on Mrs. Veeble’s smart dog,” and “A wave theory of death.” Somehow (I think Martin Gardner of Scientific American was involved) the paper found its way into the hands of James Randi (aka “The Amazing Randi”), then a famous opponent of parapsychology in its many forms. Randi loved the piece, and caused it to come to the attention of the science fiction writer Ben Bova, who was then on his way to becoming an editor at a new magazine called OMNI. Bova wanted “Psi Burn” for an early issue, and offered to pay me good money ($800, which was 4x my rent at the time). I accepted, and my very brief career as a contributor to OMNI began.

A second humorous piece followed. It was about how NASA budget cuts forced the agency to confine its explorations to the third planet from the Sun, and to job out the rocketry to custom van builders. The only line I remember from it was, “The presence of yeast in the atmosphere suggested not only the presence of life, but of food and drink as well.” After that I got very ambitious about my writing career and hired an agent who managed to get me nothing (shot down by Saturday Night Live, National Lampoon and others) while also screwing my relationship with OMNI. The money that paid for my work at the PRF also ran out, and I decided to pursue a remunerative and relatively stable opportunity: co-founding a new advertising agency where I would be creative director. That agency (Hodskins Simone & Searls) took off and eventually moved to Silicon Valley where it did quite well. That agency work launched me into the tech world, where I still live.

Anyway, all this comes back after reading In 2010, We Will Live on the Moon: Remembering the giddy futurism of Omni magazine, by By Paul Collins, in . “…with equal parts sci-fi, feature reporting, and meaty interviews with Freeman Dyson and Edward O. Wilson, Omni‘s arrival every month was a sort of peak nerd experience,” he writes. Indeed, it was — on the supply as well as the demand side.

What’s weird, looking back on OMNI‘s ambitious fantasies (robots, space travel), is that the less flashy stuff is what really happened. Collins:

It was in a 1981 Omni piece that William Gibson coined the word “cyberspace,” while the provoking lede “For this I spent two thousand dollars? To kill imaginary Martians?” exhorted Omni-readers to go online in 1983–where, they predicted, everything from entire libraries to consumer product reviews would soon migrate. A year later, the magazine ran one of the earliest accounts of telecommuting with Doug Garr’s “Home Is Where the Work Is,” which might have also marked the first appearance of this deathless standby of modern reportage: “I went to work in my pajamas.”

I’m not in my PJs now, because I don’t have any. But it’s 2:30 in the afternoon in the attic warren where I write on the Net through a 20Mb symmetrical fiber optic cable, and where I’m finally about to take today’s morning shower. Close enough to utopia, if you ask me.

[Later...] Hey, does anybody know if any of the old OMNI stuff is up on the Web anywhere? I haven’t been able to find any. When I’m back at the house in California next month I’ll see if I can find those two issues, scan them and put my pieces up on the Web. If not, no loss. But it’ll be fun to try.

And thanks to Brian Benz’ comment below, I found omnimagonline.com, including the above copy of the cover of the November 1978 issue with my “Psi Burn” piece.

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First, read Dave‘s The Mother of all Business Models. The money grafs:

Want to get a message to Dave while he’s on the BART riding under SF? $5. Want to get a message to him while he’s walking the tradeshow at CES? That costs more.

If you’re important enough you shouldn’t even pay to use the mobile device. They’re going to make so much money from your attention. If you’re really important, thinking Warren Buffet, Bill Gates, Mike Arrington, they should pay you — a LOT — to use their device. Wow.

That got me excited. That’s what they have to be thinking at Google. And why not Twitter. Trying to think of a title for this post, I came up with The Mother of All Business Models. This is as far as I can see. A new economy. Nobodies pay, but important people are paid to use your brand cell phone/mobile device. I’m sure that’s the future. Might be horrible but we’re already almost there.

This is great stuff: a whole new frame for the sell side.

Now let’s look at the buy side, and how to keep the sellers from being horrible moms. What do we want there? Or what should we want there, if we knew we had the power, independent of advertisers and their media? I mean native power here: power that each of us has — not by grace of some company or government agency, and not limited to a company’s “platform”, which is almost always the floor of a silo or the lawn of a walled garden (and worth less or nothing outside of it).

We already have some of that power, thanks to protocols, formats and code that (essentially) nobody owns, everybody can use and anybody can improve. One of the most widespread of those, thanks to Dave, is RSS — Really Simple Syndication. Look up RSS on Google. You get 3,210,000,000 results, as of today. Much of that huge number owes to RSS’s nature as essential builing material for the Web that anybody can use, easily.

RSS is easy to make yours, personally, as your tool. Thanks to RSS (atop the Web’s and the Net’s other supportive standards, formats and protocols) anybody can produce, edit, update and syndicate pretty much whatever they like. You don’t have to go to Google or Twitter or Facebook. That independence is key, and has been there from the start, as a founding premise.

Now, what else can we create, to help assert our sides of commercial interactions and relationships — which is the central concern of the VRM (Vendor Relationship Management) community? In the Markets Are Relationships chapter of the 10th Anniversary edition of The Cluetrain Manifesto, I wrote this about the purposes of VRM efforts:

  1. Provide tools for individuals to manage relationships with organizations. These tools are personal. That is, they belong to the individual in the sense that they are under the individual’s control. They can also be social, in the sense that they can connect with others and support group formation and action. But they need to be personal first.
  2. Make individuals the collection centers for their own data, so that transaction histories, health records, membership details, service contracts, and other forms of personal data are no longer scattered throughout a forest of silos.
  3. Give individuals the ability to share data selectively, without disclosing more personal information than the individual allows.
  4. Give individuals the ability to control how their data is used by others, and for how long. At the individual’s discretion, this may include agreements requiring others to delete the individual’s data when the relationship ends.
  5. Give individuals the ability to assert their own terms of service, reducing or eliminating the need for organization-written terms of service that nobody reads and everybody has to “accept” anyway.
  6. Give individuals means for expressing demand in the open market, outside any organizational silo, without disclosing any unnecessary personal information.
  7. Make individuals platforms for business by opening the market to many kinds of third party services that serve buyers as well as sellers.
  8. Base relationship-managing tools on open standards, open APIs (application program interfaces), and open code. This will support a rising tide of activity that will lift an infinite variety of business boats, plus other social goods.
  9. The Intention Economy.

All these will also give rise to:

The latter is the title of the following section of the chapter, where I  explain that advertising is a bubble, and “so is the rest of the ‘attention economy’ that includes promotion, public relations, direct marketing, and other ways of pushing messages through media.” I then explain,

The attention economy will crash for three reasons. First, it has always been detached from the larger economy where actual goods and services are sold to actual customers. Second, it has always been inefficient and wasteful, flaws that could be rationalized only by the absence of anything better. Third, a better system will come along in which demand drives supply at least as well as supply drives demand. In other words, when the “intention economy” outperforms the attention economy.

Some context:

The attention economy will not go away. There will still be a need for vendors to promote their offerings. But that promotion will have a new context: the ability of customers to communicate what they need and want—and to maintain or terminate relationships. Thus the R in CRM will cease to be a euphemism. This will happen when we have standard protocols for all three forms of market activity: transaction, conversation, and relationship.

Transaction we already have. Conversation we are only beginning to develop. (Email, text messaging, and other standard and open protocols help here, but they are still just early steps—even in in 2009, ten years after we said “markets are conversations” in The Cluetrain Manifesto.) Relationship is the wild frontier. Closed “social” environments like MySpace and Facebook are good places to experiment with some of what we’ll need, but as of today they’re still silos. Think of them as AOL 2.0.

Now, what do we need to create The Intention Economy? (That link goes to a piece by that name written almost four years ago.) What’s already there, like RSS and its relatives, that we can put to use? What new protocols, formats, tools and code do we need to create?

Improving selling is a good thing. Improving buying is a better thing. And improving how buyers and sellers relate is better than both. Those last two are what VRM is about. (And the last one is what CRM has always been about, though it hasn’t had any reciprocating system on the buy side, which is what VRM will provide.)

If you want to see some of what we’re up to, or to contribute to it, here’s the wiki. And here’s the list.

Meanwhile, I’m working on a book titled The Intention Economy: What Happens When Customers Get Real Power. If you’re interested in pointing me to helpful scholorship, research and stories for the book, feel free to weigh in with those too.

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