Business Strategy: Creaming

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In the past week I have been sending information to a Silicon Valley consulting firm seeking a dialogue and an estimate to incorporate into my business plan for my startup.  Today I received a reply that the consulting firm was ending discussion because they did not want to do work that did not guarantee paid business.

In Peter Drucker’s book, Innovation and Entrepreneurship, such a strategy is called “creaming”.  It is a business plan that seeks to maintain the status quo while also seeking the largest profit margins.  This strategy allowed Japanese mini-mills to undermine and destroy the American steel industry and Japanese auto makers to undermine and destroy the American auto industry.  It is no surprise that Peter Drucker was fired by General Motors.  Now, we are facing the same business plans in the American information technology industry.

Today, I appealed the decision of that consulting company’s Vice President and wrote directly to the Owner.  I have pointed out Drucker’s observations.  I have also decided that if my appeal fails, I will go to information technology companies outside the United States.  I do not want to be part of the recurring American addiction to a recipe for disaster.

Netular Technology versus Psuedo-Netular Technology

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I have been having a very interesting discussion on Linkedin.com having expressed my opinion about current information technology and the netular  information technology I would like to see.

The people who have been exchanging their views with me cannot see the forest for the trees.  One is offended that I do not rave about all the social transitions the technologies are offering.  Another spews buzzwords like a chainsaw.  Another assumes my opinion is a product of my impatience for the convergence of the existing technologies.

Einstein once said he would spend a majority of his time defining a problem and a fraction of his time solving it.  A majority of the time on information technology is spent solving and a fraction actually taken to understand.  The consequence is most of the solutions out there are not designed, they are hastily assembled patchworks that because of the inertia of being first on the field are only replaced by further patches.

Our entire system of networks is built upon a foundation of linear and tabular architecture that is present in our CPUs, memory, storage, data structures, programming languages, organization, locations, events and goals.  In reality we are only dabbling in networks and doing an abysmal job of using them to their full effect.  We don’t understand them.

Marshall McLuhan said that when a new media is created the first thing we do is pump old media through it.  That is what we are doing now.  We are taking every form of old media we have and pushing it through the internet.  There is not a single case where we have successfully departed from linear and tabular old media.  I have looked at all the current technology, I have used it, I understand its internals and I stand by what I say.

We need a fundamental change in the way information technology works otherwise we are going to continue with an undesigned brute force attempt to solve our problems without ever understanding them.  The outcome will not be progress, but the perpetuation of flat earth thinking.

Linear and tabular thought are responsible for many of the problems we have in the world.  The biggest is the inability to fully appreciate the uniqueness of everything and everyone in this world.  The supreme example of this has been the long history of Religion, Genocide, Slavery, Nationalism, Imperialism, Racism, Eugenics, Fascism, Nazism, Communism, Marxism, Capitalism and Socialism.  All of them fail us because they depended on linear and tabular models of thought that denied the respect of the individuality of all experience.  True netular thought has the potential to challenge all of these misconceptions.  I think it is appropriate that this transition is on the horizon with the rise of globalism.  I doubt it will be a peaceful transition.

Actually, the insights into the underlying order in networks has made quite a bit of progress. One of the leaders in this area is Albert-Beszlos Barabasi who authored the book “Linked” http://www.nd.edu/~networks/Linked/index.html . Another researcher Kwabena Boahen made a fascinating presentation at TED http://tinyurl.com/6nnkb7 . There is also the work of Simon Williams that has come up with a new associative database architecture http://www.lazysoft.com as well as a commercial product, Sentences.

It is time for everyone to fundamentally change the way they think.

25 Bubbles: Information Technology

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1. Service Oriented Architecture will create more problems than it will solve

2. Relational databases have reached the end of their innovative value

3. Object oriented programming is based on a fictional ontology

4. Unified Modeling Language is incapable of abstracting systems

5. Current enterprise architectures are conceptually naive

6. The world wide web is 80 percent data slum surrounding 20 percent data excess

7. The majority of communication on the internet has no goal or purpose

8. Business uses information technology to demonstrate due diligence and then ignores it

9. Merging scientific databases is useless because they have no consistent metrics

10. The central processing unit is an inefficient and ineffective brute force antique

11. Data has never been accurately and precisely represented, understood or stored

12. We do not understand the information technology of genetics

13. We do not understand the information technology of chemistry

14. We do not understand the information technology of physics

15. Information technology is simply a popular metaphor not the reality of the universe

16. Computerized climatological models have no predictive capability at all; our understanding of climate change is hindsight

17. Weather prediction is based on satellite images not computer modeling

18. Computer scientists have no idea what consciousness is nor does anyone else

19. Business models and data models are like oil and water
20. Silicon Valley and every corporation affiliated with it will not save the world

21. Science does not have its rightful place in information technology

22. Little information technology involves design, most of it is craft

23. Calling a programmer an engineer does not make a programmer an engineer

24. Calling a programmer a designer does not make a programmer a designer

25. There is hope, but the people who got us here definitely will not get us there

If You Don’t Like the Speed, Get Off the Ride

We have lived in “exponential times” since the big bang (if there was one)

VIDEO

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Atheism: The Reason Project

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The Reason Project will soon be a 501(c)(3) charitable foundation devoted to spreading scientific knowledge and secular values in society. The Reason Project will draw on the talents of prominent and creative thinkers in a wide range of disciplines — science, law, literature, entertainment, information technology, etc. — to encourage critical thinking and wise public policy. It will convene conferences, produce films, sponsor scientific research and opinion polls, award grants to other non-profit organizations, and offer material support to religious dissidents and public intellectuals — all with the purpose of eroding the influence of dogmatism, superstition, and bigotry in our world. The Reason Project was founded by Sam Harris and Annaka Harris.