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Category: economics

The Things We Use The Most Have The Worst User Interfaces

One by one, Apple is taking on the lousy interfaces we have to deal with every day. The mobile telephone has had a terrible interface forever. When you’re selling the subscription to the pipe, the device is meaningless. The iPhone isn’t really a phone, and that’s the revolution in the device.

Cable television listings are impossible to search and the remote control is ill suited to the task. The economics are the same. The cable business isn’t about the user interface, it’s all about selling cable subscriptions. As long as it’s not an active negative, the method of finding, selecting and recording televisions will never improve.

There’s a revolution hidden in fixing television’s interface, because the new schema will include both hundreds of television channels, on-demand shows, music channels, and all the multiple media channels of the internet. We’ve become so used to working with terrible interfaces that we don’t even understand that something better is possible.

As with the iPhone, software will be the key. Cable television’s interface cannot iterate except in extreme circumstances. The software model is key to moving the interaction forward, and Apple seems to be the only company positioned to the HCI experiments at the edge into the mainstream.

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More Rules for Startups: Embrace Error

Here are some of my rules for startups:

  • Have a great product that everyone wants
  • Enable huge margins by creating great value
  • Reduce the production cost of your product to as close to zero as possible
  • Sell lots of your product
  • Make it easy for your customers to pay you
  • If you don’t have a hit product, preserve your ability to make errors

Efficiency in a start up business has to do with your margin for error. The larger your margin for error, the better your chance of success. You want to use resources wisely so that you can make more errors. If you are a model of efficiency and save money on all the right things and don’t invest in making errors, it won’t matter.

When you find the right product or service, and the stars align, you’ll want to be able to put your foot on the gas. That takes money, it’s the moment when you test your belief in your product. It’s hiring at the right time, scaling infrastructure, buying advertising and providing adequate customer service. If your company has money, you maintain control. If you don’t, you’ll lose equity to investors in exchange for the funds to go from beta to launch.

And a final piece of advice, understand what the words ‘burn rate’ mean. Until your burn rate has crossed over the zero point, and your model is delivering on the margins in your plan, you’re on the clock. It works just like basketball, you miss every shot you don’t take. If you’re open and you have your shot, you’ve got to take it.

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We dwell in language: Lakoff and the politics of the frame

If you haven’t taken the time to listen to Dave Winer’s conversation with George Lakoff, it’s worth your while. If you subscribe to the Morning Coffee Notes RSS feed, it may already be on your iPod. Lakoff is a co-founder of the Rockridge Institute and a practitioner of what’s called cognitive science. He posits that “words matter,” and in politics they matter more than you might realize.

Lakoff investigates the currents of language, rhetoric and influence that swirl below the surface of our everyday language. Political language is by its nature adversarial; by various methods it attempt to persuade and influence. One view of campaigns and elections is that candidates have platforms that can be rationally evaluated. Here are the positions, which candidate holds the ‘right’ ones? The voter is a rational actor.

Can a person step into a frictionless abstract space where “facts” can be evaluated and decisions made outside of time and our mortality? Lakoff says no. Do people always make decisions that serve their best interests? No, they don’t. Lakoff has the political sphere covered, but this thread started much earlier. Look at Daniel Kahneman‘s Nobel Prize winning work in behavioral finance and economics.

While the sciences have only recently weighed in, the poets and philosophers have long understood this idea. How can we make “objective decisions,” when as TS Eliot says in Burnt Norton, we are “distracted from distraction by distraction.” We dwell in language, it’s where we make our home and compose the stories that we tell each other everyday. And language isn’t neutral.

The idea of the frame is that by controlling the context and lexicon of a conversation, you can shade the outcome. For instance, if I ask you “when did you stop beating your wife?” and if you accept the frame, you will be left with a limited and incriminating set of answers. Political strategists and candidates attempt to do this to gain an advantage. The interesting thing about the idea of the frame is that it’s most effective when it’s hidden from view. When the frame is brought out into the light, and becomes a normal part of political rhetoric, it loses its special power.

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The Buddhist Economics of @NewsGang Live: To Live Outside the Law You must be Honest

Radio

I listen to this daily radio show that suddenly appeared on the network. It was unannounced in any general media, but has already developed a national and international following in its short life. Its topics range from technology and product strategy, to the latest gadgets, to politics, comedy, and even some occasional drama. It’s not part of a national syndicated media network, it doesn’t seem to have venture capital backing, and it only accidentally has advertising. Actually it’s not even broadcast over the airwaves— although one can listen to it live. I get it through iTunes and listen on my iPhone, although the other day I listened by clicking on an MP3 file on a web page. It’s compelling radio, I try not to miss a day.

This show has a roundtable format more common to television political commentary shows, or technical conferences. It’s pundit talk, or as they sometimes call it “reckless punditry.” Because the show has no advertisers and isn’t part of any network, it’s an open forum. The guests aren’t compensated, they show up because they want to be part of the conversation about what’s going on right now. A point of reference would be Bill Maher’s HBO talk show, Real Time. Although the differences between Maher’s show and this one are significant, the show is unscripted, improvisational, really more of a jam session. The show’s host often compares the structure of the show to a small jazz ensemble. In this sense, it’s a new form of editorial composition.

Initially the show’s roundtable was composed solely of well-known technology industry figures. The conversation occurs over a conference call with the participants scattered all over the country. They call in from airports, their cars, while on an exercise treadmills, in their home or regular offices, or just out walking around. The show’s format changed profoundly during a particularly chaotic episode. One of the participants in the panel posted the call in number and conference code to Twitter, and uninvited participants started calling in. Imagine watching an episode of Washington Week In Review where interested members of the audience simply joined the panel at will. This potentially destructive moment became the seed of something new. It connected a filtered live social web, via Twitter, to the show’s jazz-based conversation. To extend the metaphor, some unknown out-of-town musicians were sitting in. There’s an etiquette to jamming and sitting in, and it’s up to the band leader to make it all work and blend.

The show was transformed and a new format emerged where some of the regular pundits were joined by members of the audience in a new kind of conversation. There’s a distinction between this and traditional call-in newstalk radio. Let’s go back to the jazz metaphor, when an audience member is called on to solo, they’re expected to jump in and wail. A point of reference here would be Dave Winer’s idea of the “unconference.” In technology conferences, the sum total of knowledge in the audience exceeds that of the panel of speakers. The unconference attempts to surface the knowledge, ideas and opinions of an interested group through a moderator. The composition of the group and the skill of the moderator are determining factors in the quality of the output.

There are a lot of interesting threads generated by the format of this daily radio show. But the starting point for my thoughts was connecting the show’s low-cost mashup production methodology with a phrase used by the musician Robert Fripp. After disbanding King Crimson in 1974, Fripp wanted to create music within “small, mobile, independent, intelligent units.” Working with Brian Eno, Fripp had created a performing and recording technique called Frippertronics that he believed would allow him to do significant work outside of the big rock band / recording industry context. The idea of small, mobile, independent, intelligent units is also linked to the ideas of E.F. Schumacher and his book “Small is Beautiful: Economics as if People Mattered.”

Schumacher also referred to his thinking as “Buddhist Economics.” Here’s a quote that explains what that might mean:

It is clear, therefore, that Buddhist economics must be very different from the economics of modern materialism, since the Buddhist sees the essence of civilization not in the multiplication of wants but in the purification of human character.

All economic systems are built on fundamental metaphysical ideas about what a person should want and achieve in this life. The concept of Buddhist economics came from studying economies of small villages in Burma in 1955. Schumacher published his essay “Buddhist Economics” in 1966.

This radio program doesn’t have any visible economics which is a constant source of concern for the show’s participants and its audience. While its production costs are low, with no revenue generated, a negative cash flow situation is implied. This is conjecture based on an external view with no inside knowledge. In the culture and economics of Silicon Valley small isn’t beautiful, scalability is beautiful. The venture capitalists on Sand Hill Road don’t fund small. This begs the question: Is there a global, networked, small village Buddhist economics that could support this radio show so that it could continue to thrive? And can something like this show thrive, not in abundance, but in enoughness?

The other question that surfaces is that of sustainability. Is it actually of any importance for this radio show to continue on for years and years? The after-hours jam sessions at Minton’s didn’t go on forever. Those who witnessed Bird, Monk and Pres engaging in late night cutting contests heard the sound of lightning in a bottle. Perhaps it’s enough that this kind of a radio show can emerge when we need it, a kind of “just-in-time” culture.

By the way, the host of this show? He’s the guy who said “links are dead.”

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