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	<title>Financial Markets &#187; Technology</title>
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		<title>Jason Calacanis on Facebook Privacy Changes &#8211; not good !!!</title>
		<link>http://www.appapillai.com/blog/2009/12/13/jason-calacanis-on-facebook-privacy-changes-not-good/</link>
		<comments>http://www.appapillai.com/blog/2009/12/13/jason-calacanis-on-facebook-privacy-changes-not-good/#comments</comments>
		<pubDate>Sun, 13 Dec 2009 22:05:07 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[Calacanis]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[privacy]]></category>

		<guid isPermaLink="false">http://www.appapillai.com/blog/?p=1059</guid>
		<description><![CDATA[Jason is alerting everyone who uses Facebook . . . beware &#8211; agree.
Is Facebook unethical, clueless or unlucky?
Location: CalaCompound, Brentwood, CA
Date/Time: December, 13th 2009 11:20AM
===============================
Facebook proved again this week that they are either the most
unethical or clueless internet company in the world. An amazing
accomplishment since Facebook is also one of the most promising, and
certainly fastest [...]]]></description>
			<content:encoded><![CDATA[<p>Jason is alerting everyone who uses Facebook . . . beware &#8211; agree.</p>
<h3>Is Facebook unethical, clueless or unlucky?</h3>
<p>Location: CalaCompound, Brentwood, CA<br />
Date/Time: December, 13th 2009 11:20AM</p>
<p>===============================</p>
<p>Facebook proved again this week that they are either the most<br />
unethical or clueless internet company in the world. An amazing<br />
accomplishment since Facebook is also one of the most promising, and<br />
certainly fastest growing, internet companies of all time.  Perhaps<br />
I&#8217;m being hyperbolic (who me?), or maybe they are a little of both,<br />
but the fact remains they screw up on important issues almost as if<br />
it&#8217;s a &#8220;best practice&#8221; to do so.</p>
<p>In case you missed it, when you logged into Facebook this week you<br />
were road blocked with a popup explaining that they &#8220;we&#8217;re making some<br />
changes to give you more control.&#8221; Sounds good, and like most users<br />
looking to quickly get into a website or application, I simply clicked<br />
through the message. How important could it be?</p>
<p>When faced with a TOS (Terms of Service) or license the world has been<br />
trained to hit the word &#8220;agree,&#8221; and click, click, click until they<br />
get to the actual website or software they were trying to get to in<br />
the first place.</p>
<p>Everyone in the industry knows this, and certainly a company built off<br />
of studying social behavior like Facebook would. Since the ToS is<br />
considered a formality, it is up to technology companies&#8211;in fact our<br />
industry&#8211;to behave. If we don&#8217;t behave well then we are going to get<br />
regulated by clueless politicians and policy makers. That would suck<br />
for everyone.</p>
<p>So What Happens When you Clickthrough?<br />
===================<br />
In this case, if you simply click through the windows you&#8217;ve exposed<br />
all of your private Facebook information, including comments, friends,<br />
pictures and status updates, to &#8220;everyone.&#8221; In other words clicking<br />
through changes everything in Facebook terms&#8211;unlike every other<br />
license or update screen you&#8217;ve experienced in your life.</p>
<p>I&#8217;m sorry, what the frack just happened? I turned over my friend list,<br />
photos and status updates to everyone in the world? Why on earth would<br />
anyone do that with their Facebook page?</p>
<p>The entire purpose of Facebook since inception has been to share your<br />
information with a small group of people in your private network.<br />
Everyone knows that and everyone expects that. In fact, Facebook&#8217;s<br />
success is largely based on the face that people feel save putting<br />
their private information on Facebook.</p>
<p>When you do get to the second page a series of confusing radio buttons<br />
default&#8211;yes defaults&#8211;to giving everyone access to your social graph.<br />
Wow. I&#8217;ve been using the internet since before images were supported.<br />
I&#8217;ve been a member of every social network since Six Degrees and Ryze,<br />
almost a decade before Facebook became available to the public, and I<br />
was confused by their settings page. An average user, certainly, has<br />
no idea what is going on by these changes.</p>
<p>So why is Facebook trying to trick their users?</p>
<p>Simple: search results.</p>
<p>Facebook is trying to dupe hundreds of millions of users they&#8217;ve spent<br />
years attracting into exposing their data for Facebook&#8217;s personal<br />
gain: pageviews. Yes, Facebook is tricking us into exposing all our<br />
items so that those personal items get indexed in search<br />
engines&#8211;including Facebook&#8217;s&#8211;in order to drive more traffic to<br />
Facebook.</p>
<p>So why is this wrong?<br />
==================<br />
While there is nothing wrong with having a service that is &#8220;public by<br />
default,&#8221; it is highly unethical to flip your users over to public in<br />
a such a deceitful way</p>
<p>Twitter is, of course, public by default, and we all know that<br />
Facebook is obsessed with Twitter innovations including their short<br />
status updates, their API and most of all, their &#8220;open by default&#8221;<br />
strategy.</p>
<p>Facebook has had a couple of innovations in their history, like their<br />
application layer and news feed (which is now gone), but for the past<br />
couple of years they&#8217;ve given up on innovation and focused on stealing<br />
ideas from Twitter and out-executing them, while not caring about user<br />
rights. This is challenging for Twitter, which is run by the highly<br />
ethical Evan Williams and Biz Stone. In fact, those two guys are<br />
massively conservative when it comes to their user base.</p>
<p>Facebook continues their non-stop copying of Twitter, and even after<br />
the absurdly stupid &#8220;Facebook Beacon&#8221; debacle, they continue to try<br />
and sneak unethical behavior past the masses&#8211;and the industry.</p>
<p>The result? They&#8217;re winning and winning big!</p>
<p>It is so depressing when one of our leading companies bases their<br />
ethics on &#8220;will we get caught?&#8221; and perhaps more precisely: &#8220;if we do<br />
get caught will it cost us anything in relation to the money we&#8217;ll<br />
make when we go public?&#8221;</p>
<p>The Issue Facebook is creating for all Internet companies<br />
===============================<br />
Another problem Facebook is creating with their reckless behavior is<br />
that they are simultaneously making users distrust the internet and<br />
bringing the attention of regulators.</p>
<p>As an industry we should police ourselves and do everything we can to<br />
create trust with users.</p>
<p>It would be great if the &#8220;adults&#8221; sitting around Zuckerberg&#8217;s cube<br />
would explain to the Golden Child that just because he&#8217;s on the Forbes<br />
billionaires list and he generates a mob of sycophants around him at<br />
the TED conference, that doesn&#8217;t mean he gets a free pass to bring the<br />
heat down on all of us.</p>
<p>Behave yourself dude!</p>
<p>How would you do it better?<br />
====================<br />
If Facebook was more concerned with ethics than world domination, they<br />
would simply post a popup that said something like:</p>
<p>&#8220;Dear Facebook Members,</p>
<p>Good news, we&#8217;ve now added the option to share your content with<br />
everyone! Be sure to check out this new feature here and be sure to<br />
consider if you want to expose your content to the world before<br />
changing your settings!&#8221;</p>
<p>Of course, that would result in 1% of users turning their service to<br />
&#8220;everyone&#8221; (i.e. public) a month. It would take years to convert a<br />
meaningful amount of users and their personal data into revenue<br />
generating public objects. With Facebook&#8217;s IPO&#8211;the one that will save<br />
Silicon Valley&#8211;around the corner, there is simply nothing we can do.</p>
<p>Facebook&#8217;s IPO and revenue growth trumps user&#8217;s rights, right?</p>
<p>Growth at all costs!</p>
<p>Long live the Golden Child!</p>
<p>Ticker: FCBK FTW!</p>
<p>Can I still get a friends and family allotment?</p>
<p>#fail</p>
<p>====================</p>
<p>Questions (hit reply, or post to your blog):</p>
<p>1. Is Facebook clueless, unethical or just unlucky? Why?<br />
2. Will Facebook&#8217;s latest behavior result in more lawsuits and/or<br />
industry regulation?<br />
3. Do you trust Facebook with your information?</p>
<p>all the best,</p>
<p>Jason</p>
]]></content:encoded>
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		</item>
		<item>
		<title>Craig Newmark</title>
		<link>http://www.appapillai.com/blog/2009/09/03/craig-newmark/</link>
		<comments>http://www.appapillai.com/blog/2009/09/03/craig-newmark/#comments</comments>
		<pubDate>Thu, 03 Sep 2009 12:10:49 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Markets]]></category>
		<category><![CDATA[Technology]]></category>
		<category><![CDATA[Craigslist]]></category>
		<category><![CDATA[Newmark]]></category>

		<guid isPermaLink="false">http://www.appapillai.com/blog/?p=990</guid>
		<description><![CDATA[I like Craig Newmark and admire him for what he has accomplished in this world  m
Why Craigslist Is Such a Mess
By Gary Wolf08.24.09



Craigslist founder Craig Newmark. Photo: PLATON




The Internet&#8217;s great promise is to make the world&#8217;s information universally accessible and useful. So how come when you arrive at the most popular dating site in the US you [...]]]></description>
			<content:encoded><![CDATA[<p><span style="font-weight: normal;">I like Craig Newmark and admire him for what he has accomplished in this world  m</span></p>
<h3>Why Craigslist Is Such a Mess</h3>
<div style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; font: normal normal normal 0.9em/normal georgia, 'times new roman', serif; padding: 0px;"><span id="contributor" style="margin-top: 0px; margin-right: 20px; margin-bottom: 0px; margin-left: 0px; float: left; padding: 0px;">By Gary Wolf</span><a style="text-decoration: none; color: #1199bb; padding: 0px; margin: 0px;" href="http://www.wired.com/services/feedback/letterstoeditor"></a><span id="display_date" style="padding: 0px; margin: 0px;">08.24.09</span></div>
<div id="embed_wide" style="padding: 0px; margin: 0px;">
<div id="pic" style="padding: 0px; margin: 0px;"><a style="text-decoration: none; color: #1199bb; padding: 0px; margin: 0px;" onclick="launchWindow('/imageviewer/?imagePath=%2Fimages%2Farticle%2Fmagazine%2F1709%2Fff_craigslist_f.jpg&amp;amp;imageCaption=Craigslist founder Craig Newmark.  &amp;amp;imageCredit=PLATON','1092','827')" href="http://www.wired.com/print/entertainment/theweb/magazine/17-09/ff_craigslist#"><img style="padding: 0px; margin: 0px; border: initial none initial;" src="http://www.wired.com/images/article/magazine/1709/ff_craigslist_f.jpg" alt="" /></a></p>
<div style="padding: 0px; margin: 0px;"><a style="text-decoration: none; color: #1199bb; padding: 0px; margin: 0px;" onclick="launchWindow('/imageviewer/?imagePath=%2Fimages%2Farticle%2Fmagazine%2F1709%2Fff_craigslist_f.jpg&amp;amp;imageCaption=Craigslist founder Craig Newmark.  &amp;amp;imageCredit=PLATON','1092','827')" href="http://www.wired.com/print/entertainment/theweb/magazine/17-09/ff_craigslist#"><img style="padding: 0px; margin: 0px; border: initial none initial;" src="http://www.wired.com/images/zoom.gif" alt="" /></a></div>
<div id="caption" style="padding: 0px; margin: 0px;">Craigslist founder Craig Newmark. <em><br style="padding: 0px; margin: 0px;" />Photo: PLATON</em></div>
<p><span style="font-size: small;"><span><br />
</span></span></div>
</div>
<div id="article_text" style="padding: 0px; margin: 0px;">
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;"><strong>The Internet&#8217;s great promise</strong> is to make the world&#8217;s information universally accessible and useful. So how come when you arrive at the most popular dating site in the US you find a stream of anonymous come-ons intermixed with insults, ads for prostitutes, naked pictures, and obvious scams? In a design straight from the earliest days of the Web, miscellaneous posts compete for attention on page after page of blue links, undifferentiated by tags or ratings or even usernames. Millions of people apparently believe that love awaits here, but it is well hidden. Is this really the best we can do?</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Odd perhaps, but no odder than what you see at the most popular job-search site: another wasteland of hypertext links, one line after another, without recommendations or networking features or even protection against duplicate postings. Subject to a highly unpredictable filtering system that produces daily outrage among people whose help-wanted ads have been removed without explanation, this site not only beats its competitors—Monster, CareerBuilder, Yahoo&#8217;s HotJobs—but garners more traffic than all of them combined. Are our standards really so low?</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">But if you really want to see a mess, go visit the nation&#8217;s greatest apartment-hunting site, the first likely choice of anybody searching for a rental or a roommate. On this site, contrary to every principle of usability and common sense, you can&#8217;t easily browse pictures of the apartments for rent. Customer support? Visit the help desk if you enjoy being insulted. How much market share does this housing site have? In many cities, a huge percentage. It isn&#8217;t worth trying to compare its traffic to competitors&#8217;, because at this scale there are no competitors.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Each of these sites, of course, is merely one of the many sections of craigslist, which dominates the market in facilitating face-to-face transactions, whether people are connecting to buy and sell, give something away, rent an apartment, or have some sex. With more than 47 million unique users every month in the US alone—nearly a fifth of the nation&#8217;s adult population—it is the most important community site going and yet the most underdeveloped. Think of any Web feature that has become popular in the past 10 years: Chances are craigslist has considered it and rejected it. If you try to build a third-party application designed to make craigslist work better, the management will almost certainly throw up technical roadblocks to shut you down.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Craigslist is not only gigantic in scale and totally resistant to business cooperation, it is also mostly free. The only things that cost money to post on the site are job ads in some cities ($25 to $75), apartment listings by brokers in New York ($10), and—in a special case born of recent legal trouble—advertisements in categories commonly used by prostitutes, because authorities encourage vendors to maintain a record that would aid investigators. There is no banner advertising. They won&#8217;t let you join them, and at this price you can&#8217;t beat them either.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">At times it has occurred to people that the problems with craigslist could be solved by appealing to its eponym, Craig Newmark. Newmark is under lots of pressure these days. His company is being sued by eBay, a competitor and minority shareholder angry at being excluded from the company&#8217;s deliberations. The attorney general of South Carolina has blustered about prosecuting his CEO for facilitating prostitution, and there have been strong challenges from law enforcement agencies in other states, too. The tabloids have relentlessly played up stories about two so-called craigslist killers, one who allegedly used the site&#8217;s erotic-services section to lure victims and another who used the help-wanted ads. Newmark responds to such criticism with extreme serenity. Inquire about his finances and he talks about his hummingbird feeder. When his Twitter page asks him, &#8220;What are you doing?&#8221; he retweets in the voice of a squirrel.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;Run, run, run,&#8221; he says. &#8220;Dig, dig.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Though the company is privately held and does not respond to questions about its finances, it is evident that craigslist earns stupendous amounts of cash. One recent report, from a consulting firm that counted the paid ads, estimates that revenue could top $100 million in 2009. Should craigslist ever be sold, the price likely would run into the billions. Newmark, by these lights, is a very rich man. When anybody reminds him of this, the craigslist founder says there is nothing he would care to do with that much money, should it ever come into his hands. He already has a parking space, a hummingbird feeder, a small home with a view, and a shower with strong water pressure. What else is he supposed to want? Frustration over these sorts of replies sometimes becomes comical. In a July 2007 television interview, Charlie Rose spent half the program attempting to get Newmark to admit his good fortune, and failing. &#8220;I don&#8217;t have anywhere near as much control as you think,&#8221; Newmark said.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;I&#8217;m not talking how much control; I&#8217;m talking percentage of ownership,&#8221; Rose said. Rose is usually kind to his guests, but the scent of unacknowledged wealth brought out his ferocity.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;Oh, same thing from my point of view,&#8221; Newmark said, trying to move the topic along.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;Do you own more than 50 percent of craigslist or not?&#8221; Rose asked.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;No.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;You don&#8217;t?&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;Correct.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;In other words, other people own that, or you&#8217;ve given it away or whatever.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;Could be, Charlie.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;OK, but I&#8217;m—why are you so &#8230;?&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;Coy?&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;Yeah.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;It doesn&#8217;t matter,&#8221; Newmark said. &#8220;I mean &#8230;&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;I know it doesn&#8217;t matter,&#8221; Rose repeated, his face a mask of pain.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Newmark&#8217;s claim of almost total disinterest in wealth dovetails with the way craigslist does business. Besides offering nearly all of its features for free, it scorns advertising, refuses investment, ignores design, and does not innovate. Ordinarily, a company that showed such complete disdain for the normal rules of business would be vulnerable to competition, but craigslist has no serious rivals. The glory of the site is its size and its price. But seen from another angle, craigslist is one of the strangest monopolies in history, where customers are locked in by fees set at zero and where the ambiance of neglect is not a way to extract more profit but the expression of a worldview.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">The axioms of this worldview are easy to state. &#8220;People are good and trustworthy and generally just concerned with getting through the day,&#8221; Newmark says. If most people are good and their needs are simple, all you have to do to serve them well is build a minimal infrastructure allowing them to get together and work things out for themselves. Any additional features are almost certainly superfluous and could even be damaging.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Newmark has been working hard to extend the influence of his worldview. His public pronouncements have the delighted yet apologetic tone of a man who has stumbled on a secret hiding in plain sight and who finds it embarrassingly necessary to point out something that should long have been obvious. He seems to have discovered a new way to run a business. He suspects that it may be the right way to run the world.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;"><strong>Public spirited and mild-mannered,</strong> politically liberal and socially awkward, Newmark has one trait that mattered a lot in craigslist&#8217;s success: He is willing to perform the same task again and again. During the company&#8217;s first years, Newmark approved nearly every message on the list, and in the decade since he has spent much of his time eliminating offensive ones. Even by the most conservative accounting, he has passed judgment on tens of thousands of classified ads. Very few people could do this and thrive.</p>
<div id="embed" style="padding: 0px; margin: 0px;">
<div id="pic" style="padding: 0px; margin: 0px;"><img style="padding: 0px; margin: 0px; border: initial none initial;" src="http://www.wired.com/images/article/magazine/1709/ff_craigslist2_f.jpg" alt="Craig Newmark" /></div>
</div>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Newmark knows that he is not typical. He tends to interpret things literally, and when he was younger other people often confused him. In 1972, while still a college student, he read <em>Language in Thought and Action</em>, the classic book on communication by S. I. Hayakawa, and it helped him understand himself better. &#8220;All of a sudden I&#8217;m thinking, &#8216;It can&#8217;t be that everyone else has a problem. It has to be me,&#8217;&#8221; he says.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">We are sitting in a San Francisco coffee shop called Reverie Café Bar, where Newmark spends long hours and has given countless interviews. Many things in his life are a matter of routine. When he talks, he calls upon a repertoire of conversational gambits he has been collecting forever, and he has a selection of sound effects on his mobile phone, such as a cymbal crash, that he can trigger to make it clear he is joking. When people misunderstand him, he doesn&#8217;t get upset. &#8220;I&#8217;m the Forrest Gump of the Internet,&#8221; he says. He loves customer service. &#8220;I&#8217;ll only be doing this as long as I live,&#8221; he says. He taps his phone, triggering a ghostly <em>whaaahahaha</em>. &#8220;And after that, who knows?&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Email has always been an ideal outlet for Newmark&#8217;s genial nature. Craigslist began in 1995 as a mailing list with announcements of events of interest to technical people, and as more of them began to subscribe, he encouraged readers to post their own news, archived the messages on a Web page, and tried to make sure all the content was legitimate. After Netscape&#8217;s IPO in August of that year, craigslist became a portal into the dotcom scene. Within two years, he had thousands of readers, most of whom he didn&#8217;t know. This was a big responsibility for somebody who is not an extrovert. &#8220;I used to email him every day,&#8221; says Christina Murphy, one of the first tech recruiters to use craigslist regularly. &#8220;If I made a mistake in a job posting, I would have to call him and ask for a change. It drove him insane.&#8221; Murphy, along with an Internet consultant named Nancy Melone, began meeting with Newmark, trying to map out a more professional future for craigslist that didn&#8217;t require its founder to take phone calls. Job postings were an obvious source of revenue, and in 1998 they launched a nonprofit called List Foundation. Recruiters would pay $30 for ads, everything else would be free, and any money left after paying the cost of upkeep and administration would be given away. Melone was CEO. Newmark&#8217;s willingness to cede so much control worried Murphy, who soon quit the venture. &#8220;It was a beautiful, perfect little world,&#8221; she says. &#8220;And it was being taken over by other forces.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">For nearly a year, the site was available at two URLs, <em><a style="text-decoration: none; color: #1199bb; padding: 0px; margin: 0px;" href="http://www.craigslist.org/">craigslist.org</a></em> and the less embarrassingly personal listfoundation.org. But Melone and Newmark were pulling in different directions, or rather, Melone was pulling and Newmark was digging in his heels. By the end of the decade, the Internet frenzy was at its peak and the smartest minds of the new industry all agreed that the right strategy was to get big fast in anticipation of a sale or an IPO. Melone wanted to raise prices. Newmark worried about charging for listings at all. Melone wanted to become a dotcom; Newmark was wedded to the idea that craigslist was a community service. Melone was gregarious, a talker. Newmark had vast powers of passive resistance. A split was inevitable, and one day in late September 1999, craigslist users who came in through the<em><a style="text-decoration: none; color: #1199bb; padding: 0px; margin: 0px;" href="http://www.listfoundation.org/">listfoundation.org</a></em> address found themselves automatically bounced to a new, for-profit Web site, called MetroVox. Run by Melone, it offered similar sorts of community listings and had a far more aggressive plan to grow. Melone said that Newmark had authorized the switch; Newmark announced that he&#8217;d been blindsided.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">This was craigslist&#8217;s first serious competitive challenge, and perhaps its last. Newmark had some personal qualities that ought to have been fatal in an entrepreneur. Aside from his communication problems and an aversion to exerting authority, he cared nothing for entrepreneurship. But in the battle with MetroVox he had an asset that more than compensated for these shortcomings: For years he had worked on his site with an uncanny, machine-like constancy, doing all the painstaking and repetitive things that would make most people desperate with frustration and boredom, and he had done them happily. And now his users paid him back in the most obvious possible way: They stopped using the List Foundation address, resumed posting their free ads at <em>craigslist.org</em>, and emailed Newmark when problems occurred. Less than a year later, the bubble burst and MetroVox faded away.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Newmark abandoned the idea of running craigslist as a nonprofit, which would have required him to learn and follow too many rules. He realized that nobody could stop him from giving away his money if he made too much of it, and in the meantime he handed out a significant portion of his ownership to others as a way to avoid acquiring too much authority. &#8220;I was worried about going middle-aged crazy,&#8221; he says. He also put great distance between himself and any executive responsibility. The current CEO, Jim Buckmaster, joined the site in 2000 as a programmer and handles every business and strategic issue. It was Buckmaster who crafted the current strategy for growth—a slow, bloblike, seemingly unstoppable accretion of new craigslist cities, each an exact clone of the others, launched with no marketing or publicity. Sometimes a new site grows very slowly for a long time. But eventually listings hit a certain volume, after which the site becomes so familiar and essential that it is more or less taken for granted by everybody except the distressed publishers of local newspapers. Revenue from newspaper classified ads is off nearly 50 percent in the past decade, a drop that comes to almost $10 billion. Only a fraction of this loss is because of Newmark&#8217;s company, but as the largest online classified site, craigslist is easy to blame.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Because he is the founder of a remarkable Internet company that also happens to be helping the nation&#8217;s dailies go out of business, Newmark&#8217;s opinion is eagerly sought, and he spends an increasing amount of time at conferences and international meetings, where he attempts to answer questions about how to best defend the public interest in an era of cheap and ubiquitous media. As we watch the birds on the patio of Reverie, Newmark tries out some of the phrases he is hoping to use in the coming months as he unfolds the lessons of craigslist. &#8220;My big mission is to help make grassroots democracy as much a part of our government as representative democracy,&#8221; he says.</p>
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<div id="caption" style="padding: 0px; margin: 0px;">Jim Buckmaster was hired as a programmer in 2000. A year later he became CEO.<br style="padding: 0px; margin: 0px;" /><em>Platon, grooming by Tamara Brown/Artist Untied</em></div>
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<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Many people who have heard Newmark&#8217;s public remarks find the ideals admirable but difficult to apply. What would such an approach mean in practice? His cause is not helped by the fact that if the craigslist management style resembles any political system, it is not democracy but rather a low-key popular dictatorship. Its inner workings are obscure, it publishes no account of its income or expenses, it has no obligation to respond to criticism, and all authority rests in the hands of a single man. Ask Newmark about any feature you would like to see on craigslist and you will always get the same response.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;Ask Jim,&#8221; he says.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;How do you get your feedback? Have you ever done a poll or anything like that?&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;The thought makes me tired. But you can suggest that to Jim if you wish.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;What if Jim says no?&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;If you want to ask him again, you can,&#8221; he says.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">At this point in our conversation I begin to feel the spirit of Charlie Rose upon me. After all, Newmark is the founder, a major shareholder, and the public face of the company.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;What would it take to get you to fire Jim?&#8221; I ask.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Newmark matches me mischief for mischief.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;Ask Jim.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">It is easy to find hypocrisy in the idealism of a business owner who prescribes democracy for others while relieving himself of the tiresome burden of democratic consultation in the domain where he has the most power. But of course, craigslist is not a polity; it is just an online classified advertising site, one that manages to serve some basic human needs with startling efficiency. It is difficult to overstate the scale of this accomplishment. Craigslist gets more traffic than either eBay or Amazon .com. eBay has more than 16,000 employees. Amazon has more than 20,000. Craigslist has 30. Craigslist may have little to teach us about how to make decisions, but that&#8217;s not the aspect of democracy that concerns Newmark most. He cares about the details, about executing all the little obvious things we&#8217;d like government to do. &#8220;I&#8217;m not interested in politics, I&#8217;m interested in governance,&#8221; he says. &#8220;Customer service is public service.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Last year Newmark got about 195,000 email messages. He estimates that roughly 60 percent were spam. He read all the rest and replied to many. He has a boss now, a customer service manager named Clint Powell, who was hired about six years ago. But he maintains his habits for reasons that have little to do with the normal logic of work. They are part of his identity, an unconventional mode of self-realization through which he took hold of a barrier that always separated him from the world and made it into a kind of performance. Athletes compete. Artists create. Newmark answers email. He knows that this will seem absurd from the outside, but he is blessed not to care. In fact, he likes to treat people to a laugh when he can. It&#8217;s sometimes impossible to discern his intention exactly, and this is essential to the effect. On our way out of the cafè, I step aside to let Newmark go ahead, and he walks face-first into the plate glass door.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;"><strong>Jim Buckmaster is tall and thin,</strong> Newmark is short and round, and when they stand together they look like a binary number. In 2004, I saw them give a talk in which Newmark, who is 5&#8242;7&#8243;, stood on a milk crate and was still barely eye-to-eye with his CEO, who is 6&#8242;7&#8243;. It was a memorable performance, but they don&#8217;t have much opportunity for the gag these days because their joint appearances are rare. At the craigslist office, the two men work in the same room, but their desks are set up so they sit back-to-back. They are not social friends, and in fact they almost never talk. Newmark does not excel at chitchat, and Buckmaster is a quiet type, too.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Buckmaster dropped out of medical school at the University of Michigan in 1986. He hung around the university for 10 years, studying the classics, doing data entry work, and teaching himself programming. By 1999, he was working as a webmaster in San Francisco for a dotcom called Creditland, where he was not happy. &#8220;The marketing side had attained ascendancy,&#8221; he says. He posted his résumé on craigslist, and Newmark found it.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Craigslist was very unlike Creditland. &#8220;It wasn&#8217;t even really clear who decided to hire me,&#8221; Buckmaster says. He looked around and began finding things to do. He wrote forum software to give users a chance to interact. When he realized that every post had to be reviewed and published by hand, he created the automated process that allowed craigslist to grow. He coded a search engine. A year after he arrived he was CEO. There was no competition for the job, no ritual transfer of power, and no instructions. &#8220;In the entire time I&#8217;ve been here, I don&#8217;t think Craig has ever said to me, &#8216;This is the way it has to be,&#8217;&#8221; Buckmaster says. The only topic he can remember their disagreeing about is the peace sign that adorns the craigslist Web address. &#8220;Craig thought it was associated with the hippies and that hippies were discredited,&#8221; Buckmaster says. &#8220;Whereas I think peace is among the most desirable things you can have.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">The long-running tech-industry war between engineers and marketers has been ended at craigslist by the simple expedient of having no marketers. Only programmers, customer service reps, and accounting staff work at craigslist. There is no business development, no human resources, no sales. As a result, there are no meetings. The staff communicates by email and IM. This is a nice environment for employees of a certain temperament. &#8220;Not that we&#8217;re a Shangri-La or anything,&#8221; Buckmaster says, &#8220;but no technical people have ever left the company of their own accord.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">The purity of this culture is its most tenaciously guarded asset. A few years ago, Phillip Knowlton, a Bay Area psychologist who was on the craigslist staff in the site&#8217;s early years, sold his 28 percent stake in the company to eBay. Buckmaster and Newmark approved eBay founder Pierre Omidyar, himself a programmer, as the representative of eBay on the craigslist board. But at that point, Omidyar no longer ran eBay, and he was replaced by an eBay vice president who had overseen the acquisition of a craigslist competitor in Europe. When eBay launched a competing service in the US, Buckmaster responded by reorganizing craigslist and weakening eBay&#8217;s influence. The companies have since sued each other. While the dueling complaints hinge on questions of stock dilution and conflict of interest, it is hard to imagine any conventional business executive being satisfied with the way craigslist operates. What kind of company declares itself uninterested in maximizing profit? &#8220;Companies looking to maximize revenue need to throw as many revenue-generating opportunities at users as they will tolerate,&#8221; Buckmaster says. &#8220;We have absolutely no interest in doing that, which I think has been instrumental to the success of craigslist.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Buckmaster and I talk in the San Francisco penthouse condo of Susan MacTavish Best, who owns a small PR company. Best and Buckmaster lived together as a couple for five years. Though they are now separated, they remain friends, and she continues to serve as a kind of translation mechanism by which the hints and silences of craigslist management are converted into responses suitable for the press. Queries, in recent months, have concerned mostly sex and violence. That the world would expect craigslist to take responsibility for the rare violent criminal who lures victims through an ad strikes Buckmaster as absurd. He points to the thousands of people who die every year in auto accidents. &#8220;Does anybody call up the head of GM and say, &#8216;Somebody just got killed using your product? How can you sleep at night? Don&#8217;t you realize that a person is dead?&#8217;&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Buckmaster&#8217;s dispassionate protest reflects his cast of mind. Emotional appeals are more likely to provoke his skepticism than his sympathy, and when the complaints come from aspiring Internet entrepreneurs he is especially prone to sarcasm. He hears many such complaints, because one of the most curious things about craigslist is that a company designed and run entirely by programmers is so hostile to outsiders who want to pull neat technical tricks to improve the site. A few years ago, independent programmer Jeff Atwood created a service that would allow people to search multiple cities at once or even search craigslist globally. Buckmaster arranged some technical interference to kill it off. Another programmer named Ryan Sit created a service called Listpic, which scraped images from craigslist and dumped them into an interface for browsing: You could scan through all the photos from the apartment listings or see pictures of all the dogs up for adoption. Buckmaster banished Listpic, too.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">He had specific objections to both. Listpic ran ads, it put a high burden on craigslist servers, and when he looked at traffic records he noticed that Listpic was being used mainly to enhance enjoyment of the sexy images people posted in their erotic-services ads. Universal search subverts craigslist&#8217;s mission to enable local, face-to-face transactions; it increases the risk of scams and can be exploited to snatch up bargains, giving technically sophisticated users an advantage over casual browsers. But the very surfeit of these practical objections—many of which probably have technical solutions—hints that the real explanation lies elsewhere, and with a minimum of pressure Buckmaster will state it plainly. It is the same reason that craigslist has never done any of the things that would win approval among Web entrepreneurs, the same reason he has never updated its 1999-era Web design. The reason is that craigslist&#8217;s users are not asking for such changes.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">&#8220;I hear this all the time,&#8221; Buckmaster says. &#8220;You guys are so primitive, you are like cavemen. Don&#8217;t you have any sense of aesthetic? But the people I hear it from are invariably working for firms that want the job of redoing the site. In all the complaints and requests we get from users, this is never one of them. Time spent on the site, the number of people who post—we&#8217;re the leader. It could be we&#8217;re doing one or two things right.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">This ends the debate for him, but his tone is oddly non-triumphal; in fact, Buckmaster&#8217;s statement of fealty to users has a weary sound that I don&#8217;t understand until weeks later. Only after I have spent every spare hour on craigslist—browsing the ads, tracking the spam, reading the help forums, contacting users—do I finally begin to grasp something of his situation. The truth is that a lot of people complain about craigslist. Buckmaster is correct that few of them complain about the design. They complain about spam, they complain about fraud, they complain about the posting rules, they complain about the search, they complain about uploading images. They complain about every way a classified transaction can go wrong. They seldom complain about amazing new features they imagine they might possibly want to use, because they are too busy complaining about the simple features they depend on that don&#8217;t work as well as they&#8217;d like. By eliminating marketing, sales, and business development, craigslist&#8217;s programmers have cut out all the cushioning layers that separate them from the users they serve, and any right they have to teach lessons in public service comes from the odd situation of running a company that is directly subservient only to the public. Here&#8217;s the lesson: The public is a motherfucker.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;"><strong>Craig Newmark</strong> says that craigslist works because people are good, and he has stuck to this point of view without wavering. Whether you accept it as true will depend on your standard of goodness.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Sometimes entire categories of craigslist are rendered nearly unusable by spam. Con artists prowl the listings, paying sellers with fake cashier&#8217;s checks and luring buyers to share their credit card numbers. Other evils are more subtle. Business owners whose judgment is distorted by self-interest fail to understand the rules and put the same item in multiple categories or repost it many times a day to insure it stays prominent, crowding out other sellers. A woman listing a car forgets to tell buyers about problems with the title until they&#8217;ve made a long trip out to see it. In all transactions there is a possibility of misunderstanding as well as abuse, and at 99.99 percent perfection there would still be thousands of angry people every month.</p>
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<div id="caption" style="padding: 0px; margin: 0px;">Newmark says that craigslist works because people are good.</div>
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<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">The battle flows back and forth. Captchas—distorted words that can be interpreted by humans more easily than by machines—tamed spam on craigslist for a while. Then it came back full force, not because the spammers had solved the difficult problem in artificial intelligence but because they had hacked an easier problem in global economics. I recently established a friendly email dialog with a young man in Dhaka, Bangladesh, who works on a 13-person team that creates craigslist spam. He fills in Captchas, creates new accounts with masked IP addresses, and posts ads all day long using text from a database provided by his employer, an anonymous spam king. The going price for a spam post on craigslist is about 50 cents, with large discounts for volume. When I told Buckmaster about my new friend, he took the news calmly. &#8220;These are technically sophisticated people who take pride in their work, and when we knock them down they don&#8217;t just decide to go find something else to do. You could say we are breeding the perfect spammer.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Without a computer science research department to work on evil-fighting algorithms, or a call center to take complaints, Buckmaster has settled on a different approach, one that involves haiku. The little poems he has written appear on the screen at times when users might expect a helpful message from the staff. They function as a gnomic clue that what you are seeing is intentional, while discouraging further conversation or inquiry. For instance, start too many conversations in the forums and your new threads may fail to show up. Instead, you will see this:</p>
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<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">frogs croak and gulls cry<br style="padding: 0px; margin: 0px;" />silently a river floods<br style="padding: 0px; margin: 0px;" />a red leaf floats by</p>
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<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Attempt to post a message that is similar to one you&#8217;ve already entered, and this may appear:</p>
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<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">a wafer thin mint<br style="padding: 0px; margin: 0px;" />that&#8217;s been sent before it seems<br style="padding: 0px; margin: 0px;" />one is enough, thanks</p>
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<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">The slight delays in cognitive processing that these haiku cause are valuable. They open a space for reflection, during which you can rethink your need for service. But haiku can&#8217;t solve everything. Supporting the poems are tens of thousands of users who are willing to devote two or three seconds of time to flag inappropriate ads or forum posts. Too many flags on an advertisement and it will vanish. The staff can lower the number of flags required to vaporize an ad if they want to clean out an especially polluted category, and they can raise the threshold if people grow flag-happy. Users whose listings are flagged off the site get no hint as to what they may have done to attract ire. Instead, they are directed to the &#8220;flag help&#8221; forum, where pseudonymous volunteers will offer an educated guess while having some fun at their expense. Last spring a baffled user posted a query about why her ferrets-for-sale ad disappeared. Within 60 seconds there was this reply: &#8220;Train the ferrets to read the terms of use. Maybe they can help you out next time. Pet sales are prohibited on this site.&#8221;</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">An ad can be flagged off the site for any reason. Reject too many people for a job opening and they may flag your ad in spite every time they see it—and every new ad you post, too. Describe yourself as incredibly handsome and cynical date-seekers may flag you as a favor to the innocent. The claim that craigslist, used by millions of strangers, is somehow a democracy begins to be believable exactly here, in the crotchets, irritations, prejudices, and minor forms of harassment that characterize life in a small town where any proposal you make is subject to the judgment of everybody.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Flag something as inappropriate in the discussion forums, where craigslist employees have the final word about what goes, and these lines appear.</p>
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<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">thanks for flagging this<br style="padding: 0px; margin: 0px;" />staff will look at it shortly<br style="padding: 0px; margin: 0px;" />hey, a dragonfly!</p>
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<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">Buckmaster&#8217;s sly haiku evokes an entire scene. Somewhere, at this moment, an innocent party is staring at a computer screen, furious at an offensive remark. Somebody else is fruitlessly trading insults with volunteers on the help desk. A third person is checking the site again and again, looking for a listing that was submitted but never appeared. All craigslist can offer at these moments is a shrug and a joke, in the style of a <em>Dilbert</em> cartoon.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;">This is old-fashioned. But craigslist is old-fashioned in any number of ways. It relies on email and the telephone in an era of SMS and social networks. It sticks to traceless transactions in an industry that makes its living collecting data from every touch. And just as people who run technical companies are reaching an apex of confidence in their ability to invent new forms of community based on sharing everything, craigslist still treats social life as dangerously complex, deserving the most jaded caution. Corporate isolation, user anonymity, refusal of excessive profit, glacial adoption of new features: These all signal Newmark and Buckmaster&#8217;s wariness about what humans, including themselves, might do if given the chance. There may be a peace sign on every page, but the implicit political philosophy of craigslist has a deeply conservative, even a tragic cast. Every day the choristers of the social web chirp their advice about openness and trust; craigslist follows none of it, and every day it grows.</p>
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding: 0px;"><em>Contributing editor Gary Wolf</em> (<a style="text-decoration: none; color: #1199bb; padding: 0px; margin: 0px;" href="mailto:gary@aether.com">gary@aether.com</a>) <em>wrote about tracking personal data in issue 17.07</em></p>
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		<title>Technology and innovation</title>
		<link>http://www.appapillai.com/blog/2009/08/23/technology-and-innovation/</link>
		<comments>http://www.appapillai.com/blog/2009/08/23/technology-and-innovation/#comments</comments>
		<pubDate>Sun, 23 Aug 2009 11:07:15 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[innovation]]></category>
		<category><![CDATA[Varian]]></category>

		<guid isPermaLink="false">http://www.appapillai.com/blog/?p=985</guid>
		<description><![CDATA[Hal Varian on how the Web challenges managers
Google’s chief economist says executives in wired organizations need a sharper understanding of how technology empowers innovation.

McKinsey Quarterly
JANUARY 2009



More than ten years into the widespread business adoption of the Web, some managers still fail to grasp the economic implications of cheap and ubiquitous information on and about their [...]]]></description>
			<content:encoded><![CDATA[<h3>Hal Varian on how the Web challenges managers</h3>
<h4>Google’s chief economist says executives in wired organizations need a sharper understanding of how technology empowers innovation.</h4>
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<p class="date">McKinsey Quarterly</p>
<p class="date">JANUARY 2009</p>
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<p>More than ten years into the widespread business adoption of the Web, some managers still fail to grasp the economic implications of cheap and ubiquitous information on and about their business. Hal Varian, professor of information sciences, business, and economics at the University of California at Berkeley, says it’s imperative for managers to gain a keener understanding of the potential for technology to reconfigure their industries. Varian, currently serving as Google&#8217;s chief economist, compares the current period to previous times of industrialization when new technologies combined to create ever more complex and valuable systems—and thus reshaped the economy.</p>
<p>Varian spoke with McKinsey’s James Manyika, a director in the San Francisco office, in Napa, California, in October 2008. Watch the video or read the transcript of his comments below.</p>
<div class="articleInteractive"><a name="HalVarian"></a><a id="interactiveHalVarian" onclick="javascript:MKQ.OpenInteractivePopUp('/wrapper.aspx?ar=2286&amp;story=true&amp;url=http%3a%2f%2fwww.mckinseyquarterly.com%2fHal_Varian_on_how_the_Web_challenges_managers_2286%3fpagenum%3d1%23HalVarian&amp;pgn=hava09_exhibit', 600 , 910, 'interactiveHalVarian')"><img src="http://www.mckinseyquarterly.com/files/asset/stillimage/77.jpg" alt="" /></a></p>
<div id="title"><strong>Hal Varian on how the Web challenges managers</strong></div>
<div id="interactiveDescription">Google’s chief economist on how technology empowers innovation.</p>
<div class="launchInteractive"><strong>On flexible innovation</strong></div>
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<p>We’re in the middle of a period that I refer to as a period of “combinatorial innovation.” So if you look historically, you’ll find periods in history where there would be the availability of a different component parts that innovators could combine or recombine to create new inventions. In the 1800s, it was interchangeable parts. In 1920, it was electronics. In the 1970s, it was integrated circuits.</p>
<p>Now what we see is a period where you have Internet components, where you have software, protocols, languages, and capabilities to combine these component parts in ways that create totally new innovations. The great thing about the current period is that component parts are all bits. That means you never run out of them. You can reproduce them, you can duplicate them, you can spread them around the world, and you can have thousands and tens of thousands of innovators combining or recombining the same component parts to create new innovation. So there’s no shortage. There are no inventory delays. It’s a situation where the components are available for everyone, and so we get this tremendous burst of innovation that we’re seeing.</p>
<h5 class="bHead">On corporations and work</h5>
<p>The question is, “What are other periods where we saw technology influence the way organizations work?” One nice example comes from the works of Alfred Chandler, where he describes how the telegraph and the railroad had a big impact on the development of the modern corporation. And this was a synergistic operation: one, you had to have a large organization to manage these technologies, and two, you had to have the communications and transportation infrastructure to enable the management at a distance.</p>
<p>So I think now, with what we’re seeing with mobility, we’re going to have a totally different concept of what it means to go to work. The work goes to you, and you’re able to deal with your work at any time and any place, using the infrastructure that’s now become available.</p>
<p>At the base, there’s the innovation infrastructure making better, faster, cheaper networks. There’s the improvement in the human–computer interface because the big challenge in mobile communication has always been dealing with this—quite limited—interface. But then, the kinds of innovations I think will arise on top of that will be innovations in how work is done. And that’s going to be one of the most exciting aspects, in my opinion.</p>
<p>If you look at the beginning of the 20th century, we saw the rise of mass production. Henry Ford and the entire team were down on the factory floor raising this, lowering that, speeding up the assembly line, changing the way things were built, and were able to extract far more efficiencies than were available before. I think the same thing is happening now with digital technology. When we’re all networked, we all have access to the same documents, to the same capabilities, to this common infrastructure, and we can improve the way work—intellectual work, knowledge work—flows through the organization. And again, in my opinion, that will lead to a substantial advantage in terms of productivity.</p>
<h5 class="bHead">On free goods and value</h5>
<p>Back in the early days of the Web, every document had at the bottom, “Copyright 1997. Do not redistribute.” Now every document has at the bottom, “Copyright 2008. Click here to send to your friends.” So there’s already been a big revolution in how we view intellectual property. So it’s not so much the question of what’s owned or what’s not owned. It’s a question of how can you leverage the assets you have to realize the most value.</p>
<p>I think that the availability of these very inexpensive platforms you’re creating, in disseminating content, means that it’s become intensely competitive. The content is as valuable as it ever was, it’s just the competition that’s pushed the prices down to something that approximates zero. So it’s not something that the content producers necessarily embrace, but it’s something they’re forced into by the nature of the technological change.</p>
<p>In these models, there is typically a revenue-generating component somewhere in the value chain. And most commonly today we’re seeing it on the advertising side. To look at this from a historical perspective, it’s really not so new. If you look at the 1920s, the technological question in the ’20s was, “How can we build a business model around broadcast radio?” And nobody really had a good idea. And back in the mid-1990s we asked, “How can we build a business model around the Internet?” And the preferred model at the time was a micropayments system. That never happened, for some reasons, but what did happen instead is we moved into the advertising model, and the advertising’s model been phenomenally successful.</p>
<p>We have to look at today’s economy and say, “What is it that’s really scarce in the Internet economy?” And the answer is <em>attention</em>. [Psychologist] Herb Simon recognized this many years ago. He said, “A wealth of information creates a poverty of attention.” So being able to capture someone’s attention at the right time is a very valuable asset. And Google really has built an entire business around this, because we’re capturing your attention when you’re doing a search for something you’re interested in. That’s the ideal time to show you an advertisement for a product that may be related or complimentary to what your search is all about.</p>
<h5 class="bHead">On workers and managers</h5>
<p>I keep saying the sexy job in the next ten years will be statisticians. People think I’m joking, but who would’ve guessed that computer engineers would’ve been the sexy job of the 1990s? The ability to take data—to be able to understand it, to process it, to extract value from it, to visualize it, to communicate it—that’s going to be a hugely important skill in the next decades, not only at the professional level but even at the educational level for elementary school kids, for high school kids, for college kids. Because now we really do have essentially free and ubiquitous data. So the complimentary scarce factor is the ability to understand that data and extract value from it.</p>
<p>I think statisticians are part of it, but it’s just a part. You also want to be able to visualize the data, communicate the data, and utilize it effectively. But I do think those skills—of being able to access, understand, and communicate the insights you get from data analysis—are going to be extremely important. Managers need to be able to access and understand the data themselves.</p>
<p>You always have this problem of being surrounded by “yes men” and people who want to predigest everything for you. In the old organization, you had to have this whole army of people digesting information to be able to feed it to the decision maker at the top. But that’s not the way it works anymore: the information can be available across the ranks, to everyone in the organization. And what you need to ensure is that people have access to the data they need to make their day-to-day decisions. And this can be done much more easily than it could be done in the past. And it really empowers the knowledge workers to work more effectively.</p>
<h5 class="bHead">On computer monitoring and risks</h5>
<p>One of the really interesting phenomena that’s been going on in the last 20 years is what I call “computer-mediated transactions.” So now, in the middle of almost every transaction from person to person or organization to organization, there’s a computer. And the computer can monitor that transaction, record the information, collect the data, and assure that the transaction is carried out the way it was intended to be carried out. So one of the subtle implications of this is you can now write contracts and make contracts enforceable that simply weren’t enforceable before.</p>
<p>Let me give you an example. Suppose you go rent a car and they say, “Hey, we’ll give you $10 off if you don’t go over the speed limit.” Well, that might sound like a good deal, but what’s to keep you from going over the speed limit? Well, the answer is now they’ve got a transponder in the trunk and it will monitor your behavior and charge you accordingly. And the same thing happens with semitrucks: virtually every semi on the road today has a computer in it. And that computer improves the logistics. It monitors the performance of the driver and it helps things get to the consumer more quickly. So there are a lot of capabilities of that sort that allow you to contract on terms that were just not available to you before.</p>
<p>[At the same time,] you get a new technology in and people are excited about the positive sides of it. Then you see there are also some negative aspects. And you’ll have a regulatory infrastructure that arises to deal with those. I think everybody is very excited about the intended aspects of this technology—the fact that you can personalize, the fact that you can monitor, the fact that you can provide products that are more closely suited to a consumer’s interests and needs. What people are worried about are the unintended consequences, the downsides, the negative sides, the security, the identity theft, the possibility of extortion or embarrassment. These are the problems: not what people <em>want</em> to do but what <em>could happen</em> if these technologies weren’t appropriately managed.</p>
<h5 class="bHead">On reshaping industries</h5>
<p>We’re obviously going to see enormous change in the traditional marketing industry. You look at TV, you look at print, you look at radio and other media of that sort. On the Internet, we’ve learned to measure advertising effectiveness, and the challenge now is to move those same effectiveness measures over to the offline media.</p>
<p>That can be done. I think we’re going to see vast improvements in how those industries function in the future. And in general, if we look at service industries—well, everybody I think is in agreement that we’re going to see lots of efficiency improvements in services, because we do have this network capability. We have the technological infrastructure. We can improve communication flows. The second beneficiaries of that will be with service industries who’ve already seen a lot of advances in manufacturing productivity. And the tough nut is the one we’re working on cracking now.</p>
<p>What I actually work on to a large extent is a current feeding of the auction model that we have at Google. As you know, all of our ads are sold by auction. That’s a relatively novel pricing mechanism in the ad world. And there’re a lot of intricacies that involve how you manage that. We’d like to extend that model to the offline world: to radio, TV, print, and other media. It’s a model that was enabled by the Internet. It’s not something you could’ve done without that information technology there. And it’s a great model for all sorts of resource allocation issues.</p>
<p>I think the people who originally designed the model way back in 2001 had a very, very useful insight. They recognized that the content provider has impressions to sell. So you’ve got some space in your TV show. You’ve got some space on your page. You’ve got some space that’s available to put an ad. But what the advertiser wants to pay for is clicks or conversions or visits. So they don’t really care how many impressions they show. Normally, what they care about is getting people into their store and, ultimately, getting people to purchase. So you have to build a system that allows the publisher to sell impressions but the advertiser to buy clicks. And I think we’ve managed to accomplish that in a nice, elegant way. <img src="http://www.mckinseyquarterly.com/img/widget_q-gold.gif" alt="" width="17" height="20" align="middle" /></div>
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		<title>Current trading technology . . .</title>
		<link>http://www.appapillai.com/blog/2009/07/18/current-trading-technology/</link>
		<comments>http://www.appapillai.com/blog/2009/07/18/current-trading-technology/#comments</comments>
		<pubDate>Sat, 18 Jul 2009 14:15:42 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Exchanges]]></category>
		<category><![CDATA[Markets]]></category>
		<category><![CDATA[Technology]]></category>
		<category><![CDATA[aleynikov]]></category>
		<category><![CDATA[Goldman Sachs]]></category>
		<category><![CDATA[trading]]></category>

		<guid isPermaLink="false">http://www.appapillai.com/blog/?p=966</guid>
		<description><![CDATA[The Real Story of Trading Software Espionage
By Rob Iati, Partner, The TABB GroupJULY 10, 2009

Much has been made of the 32MB of Goldman Sachs&#8217; proprietary algorithmic trading code (&#8220;trading secrets&#8221;) allegedly stolen by Sergey Aleynikov, now portrayed in the financial media as the new Julius Rosenberg, Aldrich Ames, Robert Hanssen and John Walker all rolled [...]]]></description>
			<content:encoded><![CDATA[<h3><span>The Real Story of Trading Software Espionage</span></h3>
<p><span>By Rob Iati, Partner, The TABB Group</span><span>JULY 10, 2009</span></p>
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<p>Much has been made of the 32MB of Goldman Sachs&#8217; proprietary algorithmic trading code (&#8220;trading secrets&#8221;) allegedly stolen by Sergey Aleynikov, now portrayed in the financial media as the new Julius Rosenberg, Aldrich Ames, Robert Hanssen and John Walker all rolled into one. That may prove to be true; but while it makes for a great news story at this point in time, it highlights the new significance of high frequency trading—which is built on this technology—in the marketplace.</p>
<p>We are all keenly aware that electronic routing and execution has become the mechanism by which our capital markets operate. Algorithms account for more than 25% of all shares traded by the buy side today—a number steadily rising for several years now. However, the incredible capabilities offered by technology have given meteoric rise to a relatively few high frequency proprietary trading firms that now wield far greater influence on the markets today than most people recognize. The familiar names of Lehman, Bear and Merrill are being replaced by less familiar ones like Wolverine, IMC and Getco.<br />
For example, high frequency trading firms, which represent approximately 2% of the 20,000 or so trading firms operating in the US markets today, account for 73% of all US equity trading volume. These companies include proprietary trading desks for a small number of major investment banks, less than 100 of the most sophisticated hedge funds and hundreds of the most secretive prop shops, all of which operate with one thing in mind—capture profit opportunities by being smarter and faster than the closest competition.</p>
<p>They are, as a rule, secretive, stealthy, smart, and relatively unknown. The key to being smarter is their unique technology that enables them to profit on a number of these quantitative strategies, which they will protect at all costs.</p>
<p>The value of high frequency trading strategies</p>
<p>Proprietary trading takes in a number of unique strategies, including market making, arbitrage (ETFs, futures, options), pairs trading and others based on the linked trading of more than one asset class, e.g., futures index and cash equities. In fact, TABB Group estimates that annual aggregate profits of low latency arbitrage strategies exceed $21 billion, spread out among the few hundred firms that deploy them. While we know all the large investment banks such as Goldman Sachs are committed to prop trading profitability, the hundreds of smaller, private high frequency prop shops extend much greater influence in the marketplace by providing liquidity that keeps activity flowing.</p>
<p>While none of us knows the ingredients of Goldman&#8217;s &#8220;secret sauce,&#8221; we can say that any algorithmic code in and of itself is precious but has limited value until placed in the right circumstances. Those circumstances are not available to just any Tom, Dick or Sergey, but represent the core strategy of the fast-rising high frequency trading firms.</p>
<p>First, strategies that optimize the value of high frequency algorithmic trading are highly dependent on ultra-low latency. The right decisions are based on flowing information into your algorithm microseconds sooner than your competitors. To realize any real benefit from implementing these strategies, a trading firm must have a real-time, colocated, high-frequency trading platform—one where data is collected, and orders are created and routed to execution venues in sub-millisecond times.</p>
<p>Next, since many of these strategies require transacting in more than one asset class and across multiple exchanges often located hundreds of miles apart, i.e., NY to Chicago, that infrastructure will often require roundtrip long haul connectivity between the data centers.</p>
<p>Lastly and most importantly, this code has a limited shelf life, whose competitive advantage is diluted with each second it is outstanding. While a prop desk&#8217;s high level trading strategy may be consistent over time, the micro-level strategies are constantly altered—growing stale after a few days if not sooner—for two important reasons. Firstly, because high frequency trading depends on ridiculously precise interaction of markets and mathematical correlations between securities, traders need to regularly adjust code—sometimes slightly, sometimes more—to reflect the subtle changes in the dynamic market. The speed and volatility of today&#8217;s markets is such that the relationships forming the core of our algorithm strategies often change within seconds of our ability to implement the very strategies that exploit them. Secondly, competitive intelligence is so good across all rival trading firms that each is exposed to the increasing susceptibility of their strategies being reverse engineered, turning their most profitable ideas into their most risky. As a result, any firm acquiring the &#8220;stolen&#8221; code would gain benefit from it for no more than a few days before that firm would need to adjust the code to the dynamic conditions. Since these changes build on themselves, in a matter of weeks that code would look quite different from that which was originally &#8220;stolen.&#8221;</p>
<p>There&#8217;s no doubt that Goldman Sachs, or any other proprietary trading firm, could indeed lose tens of millions of dollars from its proprietary trading if their strategies are stolen—and that is very serious. The competitors that obtain access to these trading secrets could (and would) use it to front run or trade against it, ruining even the most well-planned tactics. This news story contains many very important sub-plots: trading espionage, the necessity for a trading firm to have sophisticated security systems built around its technology, the requirements for risk management, and even the potential for proprietary trading software to be targeted on a wider scale for terrorist activity; but more than anything else it highlights the critical role played by high frequency prop trading in this new market.</p></div>
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		<title>Stephen Wolfram on the Quest for Computable Knowledge</title>
		<link>http://www.appapillai.com/blog/2009/07/10/stephen-wolfram-on-the-quest-for-computable-knowledge/</link>
		<comments>http://www.appapillai.com/blog/2009/07/10/stephen-wolfram-on-the-quest-for-computable-knowledge/#comments</comments>
		<pubDate>Fri, 10 Jul 2009 12:17:59 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[Wolfram]]></category>

		<guid isPermaLink="false">http://www.appapillai.com/blog/?p=960</guid>
		<description><![CDATA[Pioneering work . . .

Stephen Wolfram on the Quest for Computable Knowledge
June 29, 2009

Stephen Wolfram recently received an award for his contributions to computer science. The following is a slightly edited transcript of the speech he gave on that occasion.
I want to talk about a big topic here today: the quest for computable knowledge. It’s a [...]]]></description>
			<content:encoded><![CDATA[<div class="post_title">Pioneering work . . .</div>
<div class="post_title"></div>
<div class="post_title"><a title="Permanent Link to Stephen Wolfram on the Quest for Computable Knowledge" href="http://blog.wolfram.com/2009/06/29/stephen-wolfram-on-the-quest-for-computable-knowledge/">Stephen Wolfram on the Quest for Computable Knowledge</a></div>
<div class="post_time">June 29, 2009</div>
<div class="author_info"></div>
<div class="author_info"><em>Stephen Wolfram recently received an <a href="http://www5.in.tum.de/Bauer85_NumerischeMathematik50/index.html" target="_blank">award</a> for his contributions to computer science. The following is a slightly edited transcript of the speech he gave on that occasion.</em></div>
<p>I want to talk about a big topic here today: the quest for computable knowledge. It’s a topic that spans a lot of history, and that I’ve personally spent a long time working on. I want to talk about the history. I want to talk about my own efforts in this direction. And I want to talk about what I think the future holds.</p>
<p>So what do I mean by “computable knowledge”? There’s pure knowledge—in a sense just facts we know. And then there’s computable knowledge. Things we can work out—compute—somehow. Somehow we have to organize—systematize—knowledge to the point that we can build on it—compute from it. And we have to know methods and models for the world that let us do that computation.</p>
<p>Well, I think in history the first really big step in this direction was taken a really long time ago—with the invention of counting and arithmetic. The big idea that we know pretty much existed by 20,000 BC was that you could just abstractly count objects, independent of what the objects were. And then that there were definite unchanging rules of arithmetic that could let one abstractly compute things.</p>
<p>But of course just counting things is a very coarse form of systematic knowledge. Human language lets us describe much more, but it isn’t systematic—it doesn’t allow us to go directly from our knowledge to computing new things. But it was still a crucial step in perhaps 4000 BC when written language first emerged—and it became possible to systematically record and transmit knowledge about things.</p>
<p>It didn’t take long before numbers and writing led to kings in Babylon making pretty broad censuses of people and commodities. From which at least it was possible to compute taxes. But when it came to working out more about what would happen in the world—well, probably most people just assumed it was all just fate, and that nothing much could be predicted.</p>
<p>Thousands of years went by. But then something happened. People had known that there were regularities to be seen if not on earth, at least in the heavens. And then it was realized that one could use arithmetic—the same arithmetic that worked for commerce and for land surveying—to predict things about the heavens. To work out the behavior of the planets, and even to say things about spectacular events like eclipses. It was the beginning of the tradition of exact science as we know it.</p>
<p>Of course, it wasn’t at all clear where the boundaries were. Things worked in predicting the heavens, so why not predict the weather, the rise and fall of kingdoms, and everything? Of course, that didn’t work so well. But still, with people like Pythagoras around 500 BC, it seemed that nature, and music, and much more—even if not human affairs—could perhaps be described, and computed, using numbers. There were other possibilities too, though, even at that time.</p>
<p>And indeed on the other side of the world, probably around 400 BC, Panini was coming up with rules—not numbers, just rules—that described the grammar of Sanskrit. Going from human language—and finding a formal way to describe its structure—and in effect to use that to compute the poetic forms that could be produced. That idea did reappear a few times in scientific history; for example, Lucretius talked about how atoms might make up the universe as letters make up words and sentences. But for practical purposes, the notion of creating formal systems from the structure of languages was lost for more than 2000 years.</p>
<p>And instead, what emerged in Greek times—probably around 350 BC—was the idea of logic. The notion—found in the works of Aristotle—that the structure of human arguments, of human reasoning, can be represented in a stylized form—using logic. The idea that just as numbers let one abstractly count things, so logic could let one abstractly see the structure of certain forms of deduction and reasoning—and rhetoric. So that one could find ways to derive conclusions about the world by structured, formal, reasoning.</p>
<p>But what really took off from that idea was not really general reasoning—but instead specific forms of reasoning about arithmetic and geometry—about mathematics. And quite quickly—with Euclid and so on—there began to be a whole tradition of finding the truths of mathematics by derivation and by proof.</p>
<p>At the same time, though, there was another tradition. The tradition of trying to organize knowledge—of making lists and categories of things—like in Aristotle. And of just outright collecting knowledge, like at the library of Alexandria, where, as it happens, Euclid worked.</p>
<p>Well, in a sense these were academic, philosophical pursuits. But by 200 BC people like Archimedes were putting mathematics—and computation—firmly into practice in creating technology. And it’s looking as if Archimedes probably did another important thing too: he really started mechanizing the doing of computation. You know, I’ve spent much of my life working in that kind of direction, and it’s fun to realize that I’m in a very old business. Because it’s looking as if Archimedes may well have started building gear-like devices that could do computation—say astronomical predictions—22 hundred years before<em><a href="http://www.wolfram.com/products/mathematica/">Mathematica</a></em> and so on.</p>
<p>Well, after all the successes of Greek philosophy and mathematics and so on, one gets the impression that lots of people thought that everything that could be figured had been figured out. And nobody pushed hard for a long time to do more. Still, just like in Babylonian times, there were people trying to compute—to predict—more about the world. A lot of it was hocus pocus. A notable example was Ramon Lull, from around 1300, who invented a whole combinatorial scheme for generating possible ideas, and explaining what could happen in the world. That didn’t work so well. But still, there was a general feeling that the kind of systematic derivations that existed in mathematics should somehow be applicable to at least some of the goings-on in the natural world.</p>
<p>And by the end of the 1500s—with Galileo and so on—there was a notion that physical processes could be understood in the “language of mathematics”. The big breakthrough, though, was Isaac Newton in 1687 introducing what he called “mathematical principles of natural philosophy”. Really pointing out that things in “natural philosophy” could be worked out not by some kind of humanlike reasoning, but rather by representing the world in terms of mathematical constructs—and then using the abstract methods of mathematics (and calculus and so on) to work out their behavior.</p>
<p>Why it worked wasn’t clear. But the big fact was that it seemed to be possible to work out all sorts of unexpected things—and get the right answers—in mechanics, both celestial and terrestrial. And it was that surprising success that has propelled mathematics as the foundation for exact science for the past 300 years.</p>
<p>But back to the main story. A lot of relevant stuff was going on at the end of the 1600s. In the 1660s, people like John Graunt were in effect inventing statistics. Going beyond the Babylonian census to have more abstract mathematical representations of features of states—and things like life tables. And around 1700 there was something else: Gottfried Leibniz talking about his “characteristica universalis”.</p>
<p>You see, Leibniz had started taking seriously the idea that it might be possible to really make knowledge computable. He wanted to invent a universal symbolic language that could represent everything. And then effectively to apply methods of logic and mathematics to this symbolic representation—to resolve all human arguments. He started building clockwork computers. He tried to persuade the leaders of his time to start collecting knowledge in big libraries. But even though I think he had very much the right idea—one just couldn’t get there with the technology of 1700. It was a few hundred years too early.</p>
<p>But even though Leibniz’s big idea didn’t work out, the notion of systematizing knowledge was becoming more and more popular. The British Museum was founded in 1700, as a kind of universal collecting place—not of knowledge, but of actual things, natural and artificial. In 1750, Carl Linneus went beyond Aristotle, and came up with the modern scheme for systematically classifying living organisms. In the mid-1700s encyclopedias—like <em>Encyclopedia Britannica</em>—were getting founded and there was an effort to collect everything that was known into systematic books. Meanwhile, on the computation side, mathematics was doing pretty well, both in terms of abstract theorem development, and practical use in physical science and engineering. There were efforts to make it more systematic.</p>
<p>In the 1830s Charles Babbage got serious about automating the computation and printing of mathematical tables, and started imagining a kind of universal “analytical engine”, which, as Ada Lovelace described it, could “weave algebraical patterns just as the Jacquard loom weaves flowers and leaves”. Then in the 1850s George Boole pointed out that logic was really just like mathematics—and that one could use mathematical methods to work out questions in logic. And somehow it was beginning to seem that mathematics had a great deal of universality.</p>
<p>Indeed, between non-Euclidean geometry in the 1820s, abstract algebra in the mid-1800s, and transfinite numbers in the 1880s, it had begun to seem like mathematics was a kind of universal framework for abstraction. In 1879 Gottlob Frege came up with predicate logic, in effect trying to find a way to represent general truths, whether in mathematics or elsewhere. Mathematics was doing so well in physics and engineering. So many new theoretical areas were springing up from algebra, calculus, geometry and so on. It must have seemed in the late 1800s as if the whole world would soon be described and worked out in terms of mathematics.</p>
<p>There were efforts—by Peano and so on—to come up with definitive axiomatization of mathematics. And there was an increasing conviction that the methods of Euclid—starting from axioms and then systematically deriving theorems—would unravel all of mathematics, and perhaps all of science. By 1910, there were efforts like the Whitehead-Russell <em>Principia Mathematica</em>, where the notion was to formalize mathematics in terms of logic, and then, in effect, just build up everything from a modest set of axioms. And David Hilbert had the idea that really mathematics should be almost mechanical: that one could in effect just churn out all truths automatically.</p>
<p>Well, along with all this theoretical and foundational activity, there were also practical things going on. Starting in the mid-1600s—possibly with precursors going back to Archimedes—mechanical calculators were increasingly developed, and by the end of the 1800s they were commonplace. The idea of the Jacquard loom—and of things like player pianos—had introduced a notion of programming: having punched cards that could specify what operations the mechanical device should perform. And very gradually that idea began to be generalized.</p>
<p>There had emerged from calculus and so on the notion of an abstract mathematical function: <em>f</em>(<em>x</em>), where somehow the function itself was a bit like the variable. But just what could a function be? Perhaps it was something built from logic-like constructs, as in the work on Moses Schönfinkel on combinators. Perhaps something built with rewrite rules, as in the work of Emil Post. Perhaps something built with the operation of “primitive recursion”—in effect a kind of arithmetic recurrence.</p>
<p>All of these seemed like possible representations, but none seemed fundamental. And with the discovery of the Ackermann function in 1920, for example, it became clear that at least primitive recursion wasn’t the complete story of reasonable functions. But from all this, there was at least emerging a notion of being able to treat functions like numbers and other data. Actually, Leibniz had already suggested numbering possible logic expressions way back in 1679.</p>
<p>What did this have to do with the foundations of mathematics? Things like set theory had developed, and there had started to be all sorts of brewing paradoxes and things as set theory started to try to talk about itself. But still it seemed that with fancy enough footwork Hilbert’s idea of systematically finding all truths in mathematics could be saved. But that all changed in 1931 with the arrival of Gödel’s Theorem.</p>
<p>Gödel started by taking one of those paradox-like statements: “This statement is unprovable.” But then he did something very interesting. He showed that that statement could be expressed as a statement in arithmetic. He found a way to set up equations about integers and other constructs in arithmetic, and have them represent his at-first-not-mathematical-seeming statement. That had a big consequence: it showed that with mathematics itself, one could set up statements that one could then show couldn’t be proved or disproved within mathematics. Mathematical statements about which mathematics just didn’t have anything to say.</p>
<p>Well, that was pretty interesting for the philosophy of mathematics. But in some sense it was a technicality in Gödel’s proof that really changed the world. You see, to show what he showed, Gödel in effect ended up inventing programming. Because to show that his funny statement could be represented in terms of arithmetic, he actually showed that any of a huge class of statements could also be represented that way.</p>
<p>At first it wasn’t incredibly clear what the significance of this was. Whether it was just a technical detail of the particular mathematical systems—things like “general recursive functions”—that Gödel had considered. But what happened next was that in 1935 Alonzo Church came up with lambda calculus—and then in 1936 Alan Turing came up with Turing machines.</p>
<p>Both of them were in effect trying to come up with ways to describe everything that could reasonably be computed. Turing’s scheme was the clearest. He in effect had a way of describing a procedure for computing things—potentially by machine. One might have thought that to compute different things, one would always have to have a different machine. One square-roots machine. Another exponentials machine. And a quite different machine to do logic puzzles. But the crucial thing that Turing showed was that in fact there are universal machines—which can just be programmed to do any of these operations, or in fact to emulate any other Turing machine.</p>
<p>At first it wasn’t clear quite what the significance of this was. After all, perhaps there were different ways to construct machines that would have different properties. But meanwhile, people were constructing more and more machines that did practical computations. Beyond calculators, there had been Hermann Hollerith’s census-counting machine. There were starting to be machines for doing logic, and for combinatorially breaking codes. There were machines for doing more and more elaborate equation solving. And by the 1940s, electronics was becoming established as the underlying technology of choice.</p>
<p>There was also increasing knowledge of the physiology of the brain, and it was beginning to look as if somehow it might all just work with electronics. And by the 1940s, people like McCullough and Pitts were using Turing’s universal machine idea as evidence that somehow neural circuits could successfully reproduce all the things brains do. Particularly through John von Neumann that idea then merged with practical work going on to try to make programmable electronic computers. And the result was that the theoretical idea of universal computation got turned into the idea of producing universally programming electronic computers—and the idea of software.</p>
<p>In the early days of electronic computers, it was pretty much assumed that computers were somehow like electronic brains, and that eventually computers would be able to take over brain-like work, just like mechanical machines had been able to take over most mechanical work. Movies began to portray computers that could be asked questions, and compute answers. There didn’t seem to be any doubt that all knowledge would soon be computable—even if perhaps computers would show signs of the “simple logic” on which they were based—somehow being more “robotic” in their answers than humans would be.</p>
<p>There were some practical efforts to actually start working out how computable knowledge would be set up. Following up on crowdsourced projects like the assembly of the <em>Oxford English Dictionary</em> at the end of the 1800s, there were projects like the Mundaneum—which in particular tried to collect all the world’s knowledge on 12 million index cards, and be able to answer questions sent in by telegraph. By 1945, Vannevar Bush was talking about the “memex” that would provide computerized access to all the world’s knowledge. And by the mid-1950s, the idea of artificial intelligence was becoming all the rage. In a sense artificial intelligence was thought of a bit like mathematics: the idea was to make a general-purpose thinking machine, that could start just from nothing, and learn and figure out anything, just like humans—rather than to make something that started from a large corpus of existing knowledge or methods.</p>
<p>One particular direction that was pursued a lot was handling human language. In the mid-1950s, at almost exactly the same time, two important things had happened. Noam Chomsky had suggested the idea—in a sense finally a followup to Panini from 400 BC—that the grammars of human languages could be represented in algorithmic form. And at almost exactly the same time, the idea had been introduced of constructing languages for computers in algorithmic form.</p>
<p>But despite the idea of an algorithmic structure to human language, it proved a lot more difficult than expected to do actual computations with human language—whether for language transformation, information retrieval or whatever. Computer languages were a much better idea, though. They provided precise formal specifications for what computers should do, given in a form that was close enough to human language that people could learn them a bit like the way they learn human languages.</p>
<p>Meanwhile, through the 1960s, 1970s, and 1980s, computers were gradually becoming more and more powerful, and more and more common. There were ideas like relational databases. Then there were applications like graphics and word processing. And the concept that had begun as a kind of footnote to technical work on the foundations of mathematics had become a central part of our world.</p>
<p>But still, the early idea that computers would be like brains—and that all the world’s knowledge would be computable—just hadn’t happened. There were many places computers were extremely useful. But there was more to do. Just how far can the notion of computation go? How much can one compute? About the world? About human knowledge?</p>
<p>Well, I’ve thought about these things a lot over the years. In fact, the three large projects of my life have all in a sense been concerned with aspects of this very question.</p>
<p>In <em>Mathematica</em>, for example, my goal has been to create a framework for doing every possible form of formal computation. <em>Mathematica</em> is in a sense a generalization of the usual idea of a computer language. In a sense, what<em>Mathematica</em> tries to do is to imagine all possible computations that people might want to do. And then to try to identify repeated structures—repeated lumps of computational work—that exist across all those computations. And then the role of the <em>Mathematica</em> language is to give names to those structures—those lumps of computational work. And to implement them as the built-in functions of the system.</p>
<p>I wanted <em>Mathematica</em> to be a very general system. Not a system that could just handle things like numbers, or strings, or even formulas. But a system that could handle any structure that one might want to build. So to do that I in effect went back to thinking about the foundations of computation. And ended up defining what one can call unified symbolic programming. One starts by representing absolutely everything in a single unified way: as a symbolic expression. And then one introduces primitives that represent in a unified way what can be done with those expressions.</p>
<p>In building <em>Mathematica</em> over the past 23 years one of the big ideas has been to include in it as much—in a sense formal—knowledge as possible. The methods, the algorithms, the structures that have emerged throughout the fields of mathematics and computation. It’s really been an interesting thing: we have this very unified environment, and as we add more and more to it, it’s a kind of recursive process. Because it’s unified, and because in a sense so much of what it does is automated, the new things we add get to build on everything that’s there before. In a sense we get to see the generality of the idea of computation; we get to use it to create ways to handle even more kinds of things.</p>
<p>You know, it’s funny how long it takes for paradigms to sink in. The basic ideas for the unified symbolic programming that exists in <em>Mathematica</em> I came up with nearly 30 years ago. But every few years I realize more that one can build with those ideas. <em>Mathematica</em> started with technical and mathematical computation. But it’s turned out that its foundations are general enough to go far beyond that. To make a lot more things computable in systematic ways.</p>
<p>Well, one of the reasons I wanted to build <em>Mathematica</em> in the first place was that I wanted to use it myself. To explore just what the broad implications are of the fundamental idea of computation. You see, while computation has been of great practical importance—even in science—there’s a lot more to explore about its implications for the foundations of science and other things. If we’re going to be able to do science—or in general to make knowledge systematic—we kind of have to imagine that there are ultimately theories for how things work. But the question is: what are the primitives, what’s the raw material, for those theories?</p>
<p>Well, in the exact sciences there’s been a lot of success over the past 300 years with theories based on mathematics. With taking those ideas of numbers, and algebra, and calculus, and so on—and building theories of the world out of them. That’s certainly the way the big successes of areas like physics have worked. But of course there’s a lot in the world that we don’t yet know how to explain. There’s a lot in nature, for example, that just seems somehow complex, and beyond our theories.</p>
<p>But the big thing that I started asking myself nearly 30 years ago now is whether the reason it seems that way is just that we’ve been thinking too narrowly about our theories.</p>
<p>Maybe it’s not enough to use the primitives that we happen to have developed in the course of mathematics. Maybe the world doesn’t happen to work that way. Well, what other primitives could we use? In the past, we would have had no idea. But now that we understand the notion of computation, we do have an idea. What about just using simple programs? What about basing our theories and models not just on the constructs of math, but on the general kinds of rules we find in programs?</p>
<p>Well, OK. But what kind of programs?</p>
<p>Normally when we use programs we do it in a very engineering kind of way. We set up particular programs—usually very complicated ones—that perform particular tasks we want. Well, my idea of nearly 30 years ago was to ask, what if we just look at the world of programs as we look at an area of natural science? If we just see what’s out there in the computational universe of possible programs? Let’s say we just start with the simplest possible programs, and see what they do.</p>
<p>I happened to study a lot some systems called cellular automata, that just consist of rows of black and white cells, with little rules for how the colors of the cells should be updated. Well, at first I’d assumed that if the rule for the cellular automaton was simple, its behavior would somehow have to be correspondingly simple. I mean, that’s the intuition we tend to have from everyday life, and from today’s engineering and so on. If you want to make something complicated, you have to go to a lot of effort. And you have to follow complicated rules and plans. But I decided that I should just do the experiment and see what was true. Just trying running every possible simple cellular automaton program, and see what it did.</p>
<p>And the result was really, really surprising. And it kind of shattered my intuition about how things work. Because what I found was that even very simple programs—started off in the simplest way—could produce incredibly complex behavior. Patterns that if you saw them you’d say, “That must have been produced by something really complicated.”</p>
<p>Well, so what I found, by doing in effect empirical computational science, was that in the computational universe there’s incredible richness in a sense very near at hand. I think this is a pretty fundamental thing. And actually I think it explains a pretty fundamental observation about our world.</p>
<p>You see, even though when we build things it always seems to take a lot of effort to build something that is complicated, nature doesn’t seem to work that way. Instead, it seems as if nature has some kind of secret that effortlessly produces all sorts of complexity. And I think we now know what that secret is. It’s that nature is sampling all sorts of programs in the computational universe. But even though the programs are simple, they just don’t always happen to be ones whose behavior is simple. They don’t happen to be the programs that correspond to things we’ve built with our mathematics and our traditional mathematical science.</p>
<p>Ultimately it’s not that you can’t build complexity from mathematical primitives and so on. But what’s happened is that the exact sciences have tended to just define themselves to be about cases where that doesn’t happen. We haven’t studied the full computational universe of possibilities, only a thin set that we’ve historically found to be tractable.</p>
<p>Well, this has many implications. It gives us a “new kind of science”—as I pointed out in the title of the <a href="http://www.wolframscience.com/nksonline/toc.html">big book</a> I wrote about all this. A kind of science that in a sense generalizes what we’ve had before. That uses a much broader set of primitives to describe the world.</p>
<p>Already that science has had lots and lots and lots of applications. All sorts of new models of natural and man-made phenomena. Where the foundation is not a mathematical equation, but a computational rule. The science has shown us new ways to think about all sorts of things. Not just traditional science. Also technology—creating things that go beyond what one can foresee from traditional engineering. In art—capturing the essence of the richness that seems to give nature its aesthetic. Even in philosophy, thinking about old questions like free will. Maybe the science will even get us to the ultimate point in a question for knowing about the world: being able to give us an ultimate fundamental theory of physics.</p>
<p>You know, the way physics has gone in the last few hundred years, it seems kind of hopeless to even imagine that one might be able to find a truly fundamental theory of physics. It seems like at every stage, models in physics have just been getting more and more complicated. And one might assume, given the obvious complexity that we see in our universe, that there’s no possibility for there to be an ultimate simple theory of it all.</p>
<p>But here’s the critical thing one learns from studying the computational universe: if one just samples possible programs, even very simple ones can have great richness in their behavior. So then the question is: in the computational universe of possible programs, just where might the program for our universe lie? Is it in effect a giant program? Or something tiny? That we might be able to find just by searching the space of programs. Well, I don’t know for sure. Though a crucial fact about our universe, long noted by theologians, is that it certainly isn’t as complicated as it could be. There’s at least some order in it. And maybe that means we can find a program for it that’s really small.</p>
<p>So what’s actually involved in universe hunting? I think one has to concentrate on in a sense very abstract models, where there aren’t built-in notions of space, or time, or matter, or really anything that’s too familiar from our existing physics. But if one just starts enumerating very simple sets of rules, the remarkable thing that happens is that one starts finding candidate artificial universes that at least aren’t obviously wrong—obviously not our universe.</p>
<p>There’s one big problem with all this. A fundamental pheonomenon I call computational irreducibility.</p>
<p>You see, once we start thinking in computational terms, we start to be able to ask some fundamental questions. Traditional theoretical science has been very big on the idea of predictability: of somehow working out what systems will do. Well, in the past it always seemed reasonable to assume that if the science was done properly, that kind of prediction would be possible. That somehow the scientist would be able to be smarter than systems in nature, and work out what they would do more efficiently than they do it themselves. But one of the big discoveries from what I’ve done is what I call the Principle of Computational Equivalence. Which says that as soon as a system isn’t just obviously simple in its behavior, it will be as sophisticated computationally as any other system.</p>
<p>So this means that the scientist will just be equivalent to the system being studied—not smarter than it. And that leads to what I call computational irreducibility: that a great many systems in effect perform computations that we can’t reduce, or predict. That we just have to simulate to see what they will do. Well, that’s obviously a problem for universe hunting. Because we can’t expect to simulate every step of the evolution of our universe.</p>
<p>And indeed what happens is that you get candidate universes that flap around in all sorts of complicated ways. They could actually be our universe. But computational irreducibility makes it really hard to tell. It can even be like Gödel’s theorem: it becomes undecidable whether a particular candidate universe has a particular property like our real universe. Still, I think it’s quite possible that we’ll be lucky—and be able to find our universe out in the computational universe. And it’ll be an exciting moment—being able to sort of hold in our hand a little program that is our universe. Of course, then we start wondering why it’s this program, and not another one. And getting concerned about Copernican kinds of issues.</p>
<p>Actually, I have a sneaking suspicion that the final story will be more bizarre than all of that. That there is some generalization of the Principle of Computational Equivalence that will somehow actually mean that with appropriate interpretation, sort of all conceivable universes are in precise detail, our actual universe, and its complete history.</p>
<p>But those are issues for another day. For now the main point is that from NKS—this “new kind of science”—one learns just how much of the world can really be thought of in computational terms. There are limits from computational irreducibility to how easy it is to work out consequences. But there’s much more than just traditional science that can be represented in computational terms.</p>
<p>Well, back to the main thread of computable knowledge. In the last decade or so a lot of practical things have happened with it. The web has arisen, putting huge amounts of material in computer-readable form. Wikipedia has organized a lot of material—encyclopedia style—and has codified a lot of “folk knowledge” about the world. And search engines have arisen, giving one efficient ways to find anything that’s been explicitly written down on the web—fact, fiction, or otherwise. Meanwhile, all sorts of things that at one time or another were considered tests for artificial intelligence—playing chess, doing integrals, doing autonomous control—have been cracked in algorithmic ways.</p>
<p>But the general problem of making the world’s knowledge computable—of making computers really act like the science-fiction computers of the 1950s—has always seemed too difficult. Or at least that’s the way it seemed to me. And I guess every decade or so I would wonder again: are we ready to try to make the world’s knowledge computable yet? And I would say, “No, not yet.” We’re closer than Leibniz was. But we’re not there yet.</p>
<p>Well, a few years ago I was thinking about this again. And I realized: no, it’s not so crazy any more. I mean, I have <em>Mathematica</em>, which gives a foundation—a language for representing knowledge and what can be computed about it. And from NKS I understood a lot more about what can be represented computationally, and just how simple the underlying rules to produce richness and complexity might be. And thinking that way got me started on the third big project of my life—which has turned into <a href="http://www.wolframalpha.com/">Wolfram|Alpha</a>. And in fact, today [June 15, 2009] it’s exactly one month since Wolfram|Alpha was first launched out into the world.</p>
<p>The idea of Wolfram|Alpha was to see just how far we can get today with the goal of making the world’s knowledge computable. How much of the world’s data can we curate? How many of the methods and models from science and other areas can we encode? Can we let people access all this using their own free-form human language? And can we show them the results in a way that they can readily understand? Well, I wasn’t sure how difficult it would be. Or whether in the first decade of the 21st century it’d be possible at all. But I’m happy to say that it worked out much better than I’d expected.</p>
<p>Of course, it’s a very long-term project. But we’ve already managed to capture a decent amount of all the systematic information that you’d find in a standard reference library. We’ve managed to encode—in about 6 million lines of<em>Mathematica</em> code—a decent slice of the various methods and models that are known today.</p>
<p>And by using ideas from NKS—and a lot of hard work—we’ve been able to get seriously started on the problem of understanding the free-form language that we humans walk up to a computer and type in. It’s a different problem than the usual natural-language processing problem. Where one has to understand large chunks of complete text, say on the web. Here we have to take small utterances—sloppily written questions—and see whether one can map them onto the precise symbolic forms that represent the computable knowledge we know.</p>
<p>Before we released Wolfram|Alpha out into the wild, we had to try to learn that pidgin language people use—by looking at corpora of questions and answers and statements. But in the past month we have seen something wonderful: we have hundreds of millions of actual examples of humans communicating with the system. So—like a child learning language or something—we can now start to learn just how to understand what we’re given.</p>
<p>Well, so what will happen with Wolfram|Alpha, and this whole quest to make the world’s knowledge computable? Wolfram|Alpha will get better—hopefully quite quickly. So that one will really be able to ask it more and more of those questions one might have asked a science-fiction computer of the 1950s.</p>
<p>It’s interesting to see how it compares to the early ideas of artificial intelligence. In a sense, those concentrated on trying to make a computer operate like a person—or a brain—but bigger, faster, and stronger. To be able to work things out by reasoning. A bit like pre-Newtonian natural philosophy. But what we’re trying to do with Wolfram|Alpha is to leverage on all the achievements of science and engineering and so on. We’re not trying to fly by emulating birds; we’re just trying to build an efficient airplane. So when you ask Wolfram|Alpha to work out something in physics or math or whatever, it’s not figuring out the answer by reasoning like a person—it’s just trying to blast through, using the best methods known to our civilization, to get the answer.</p>
<p>It’s not obvious that in 2009 computers would yet be powerful enough to get lots of answers in what amounts to a human reaction time. But they are. And that—combined with the existence of the web, and being able to deliver answers on it—is what makes Wolfram|Alpha possible.</p>
<p>What of the future? Well, Wolfram|Alpha is in a sense taking existing knowledge, and encoding it in computable form, and computing answers from it. And almost everything it’s asked is unique—it’s never been asked the same question before, and nobody’s ever written down the answer on the web before. It’s getting figured out in real time, when it’s asked. And it’s in effect coming to new conclusions that have never been seen before.</p>
<p>But in a sense Wolfram|Alpha is very traditional in its knowledge: it’s using models and methods and structures that already exist—that are already part of the existing canon of science, engineering, and so on. But what about inventing new models and methods on the fly? Well, in a sense NKS gives a clear direction for doing that. We can just look out there in the computational universe and see if we can find things that are useful to us.</p>
<p>At first, that might seem crazy. By sampling a space of simple programs, how could we ever get anything rich enough to be useful for practical purposes? Well, that’s a key lesson from NKS: out in that universe of simple programs are lots with all sorts of elaborate behavior. Maybe even rich enough to be our whole universe. But certainly rich enough to be useful for lots of purposes.</p>
<p>Traditionally in doing engineering—or science—we tend to want to construct things step by step, understanding how we will achieve our goals. But NKS tells us that there’s a much richer supply of things out there in the computational universe—just ready to be mined. It’s a bit like the situation with physical materials: we make technology in effect by going out in the material world and seeing materials with certain properties, and then realizing that we can harness them for our particular technological purposes. And so it is in the computational universe.</p>
<p>In fact, increasingly in <em>Mathematica</em> we are using algorithms that we were not constructed step-by-step by humans, but are instead just found by searching the computational universe. And that’s also been a key methodology in developing Wolfram|Alpha. But going forward, it’s something I think we’ll be able to use on the fly.</p>
<p>We did an experiment a few years ago called <a href="http://tones.wolfram.com/">Wolfram<em>Tones</em></a>. That samples the computational universe of simple programs to find musical forms. And it’s remarkable how well it works. Each little program out there defines a sort of artificial world, with its own definite rules that we recognize as “making sense”, but which has enough richness in its behavior to make it seem interesting and aesthetically engaging to us.</p>
<p>Well, we can do the same thing with modeling, with recognizing patterns, with constructing engineering objects. Just going out into the computational universe and mining it for things that are useful to us. Mass customizing not only art, but also scientific theories and engineering inventions. Even mathematics.</p>
<p>You know, if you look at all the mathematics that we do today, its axioms fit comfortably on a page or two. And from that page or two emerge all the millions of theorems that constitute the mathematics of today. But why use the particular axioms that we have used so far? What happens if we just start looking at the whole space of possible axiom systems? In a sense at the space of possible mathematics? Well, it’s pretty interesting out there. All sorts of different kinds of things happen.</p>
<p>If one looks at the history of mathematics, one gets the impression that somehow the mathematics that’s been studied is all there could possibly be. That we’ve reached the edge of the generalization—the abstraction—that can be done. But from studying the space of all possible mathematics, it’s clear that isn’t true. One can find our areas of mathematics in there. Logic, for example, turns out to be about the 50,000th axiom system in the space of all possible axiom systems.</p>
<p>But there doesn’t seem to be anything special about the axiom systems we’ve actually used. And in fact, what I suspect is that really the choice of them is just a reflection of the history of mathematics: that everything we see today is what we get by generalizing specifically from the arithmetic and geometry that were studied in ancient Babylon. That history of mathematics has informed what we’ve been able to do in theoretical science. But there’s so much more out there. That we can see in the computational universe. And that maybe we’ll even be able to find and explore on the fly with a future Wolfram|Alpha.</p>
<p>So what will the future hold for all of this? We’ll be able to compute from the knowledge that our civilization has accumulated. We’ll be able to discover and invent more and more on the fly. And in time I expect that more and more of what we have in the world will end up being “mined” from the computational universe.</p>
<p>What will this mean? Well, right now the things we build in engineering are usually sort of limited to things where we can understand each part of what we do. When we write programs, we do it one piece at a time, always setting it up so that—at least apart from bugs—we can foresee what the program will do. But increasingly, the technology we use will come from mining the computational universe. We’ll know what the technology does—we’ll know its purpose—but we won’t necessarily understand how it does it.</p>
<p>Actually, it’ll be a little like looking at systems in nature. There’ll be the same kinds of complexity. Actually probably more. Because even in an area like biology, where there’s a lot happening even at a molecular scale, the complexity is in many ways limited by the effects of processes like natural selection. But we won’t have those kinds of constraints when we get our technology from the computational universe. We’ll potentially be able to get the most efficient, most optimal, version of everything. And it almost always won’t have any of the simplicity—the identifiable pieces and mechanisms—that exist in our technology today.</p>
<p>So then the big question is: what will the technology do? What purposes will we find for our technology? It’s a very interesting thing, to look at our technology today, and to ask what people at other times in history would have thought about it. Because what we realize is that not only would they not understand how it works. But they also would not understand why anyone would make it. The purposes evolve as the technology evolves.</p>
<p>And as we look at the future of computable knowledge, we may ask what purposes will be found for it. Some we can foresee. But many, I suspect, we cannot. Today our technology is rife with history: we see particular mechanisms over and over again because they were invented at some point, and propagated into the future. But as more of our technology is found—in a sense from scratch—in the computational universe, less history will be visible. But where the thread of history remains—and the arc of our civilization continues to be visible—is in the purposes that are found for things. There is much that is possible; but what we choose to do depends on the thread of our history.</p>
<p>Today is an exciting moment—indeed, I suspect, a defining moment in human history. When we are making a transition from a world in which computation is just one element to a world in which computation is our central concept. In which our thinking, our actions, and our knowledge all revolve around computation.</p>
<p>And what makes this possible is that we are finally now getting into a position where we can take all that knowledge that we as humans have accumulated in our civilization, and encapsulate it in an active computational form. And when we do this, we make it possible to dramatically extend and generalize all our achievements so far.</p>
<p>In a sense our whole history so far has been played out in a tiny corner of the computational universe. But we are now in a position to take all of our knowledge and achievements, and go out and colonize the whole computational universe, extending our human purposes and experience to an unrecognizably broad domain.</p>
<p>I feel extremely fortunate to live at a time in history when all of this is unfolding, and to be in a position myself to contribute to what can happen. I thank you all here for recognizing the journey I have taken so far. And I look forward to everything that will be possible in the years to come.<br />
Note: a summary timeline of the quest for computable knowledge, based on Stephen Wolfram’s earlier notes, is available <a href="http://www.wolframalpha.com/timeline.html">here</a>.</p>
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		<title>Technology in the battlefield</title>
		<link>http://www.appapillai.com/blog/2009/04/13/technology-in-the-battlefield/</link>
		<comments>http://www.appapillai.com/blog/2009/04/13/technology-in-the-battlefield/#comments</comments>
		<pubDate>Mon, 13 Apr 2009 22:34:09 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Geopolitics]]></category>
		<category><![CDATA[Technology]]></category>
		<category><![CDATA[Army]]></category>
		<category><![CDATA[Masellis]]></category>
		<category><![CDATA[SWJ]]></category>

		<guid isPermaLink="false">http://www.appapillai.com/blog/?p=857</guid>
		<description><![CDATA[A perspective on the use of technology in the battlefield.  Read it here.
]]></description>
			<content:encoded><![CDATA[<p>A perspective on the use of technology in the battlefield.  Read it <a href="http://www.appapillai.com/blog/wp-content/uploads/2009/04/213-masellis.pdf">here</a>.</p>
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		<title>Is the education model obsolete ?</title>
		<link>http://www.appapillai.com/blog/2009/03/09/is-mit-obsolete/</link>
		<comments>http://www.appapillai.com/blog/2009/03/09/is-mit-obsolete/#comments</comments>
		<pubDate>Tue, 10 Mar 2009 03:03:56 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Physics]]></category>
		<category><![CDATA[Technology]]></category>
		<category><![CDATA[education]]></category>
		<category><![CDATA[MIT]]></category>

		<guid isPermaLink="false">http://www.appapillai.com/blog/?p=761</guid>
		<description><![CDATA[UNIVERSE IN 2009
Is MIT Obsolete?
On the future of invention.
by NEIL GERSHENFELD • Posted February 3, 2009 11:27 AM

 
Illustration by Raymond Biesinger.
Today&#8217;s advanced research and education institutions are essential to tackling the grand challenges facing our planet, but they&#8217;ve been based on an implicit assumption of technological scarcity — advances in those technologies now allow these activities to expand far [...]]]></description>
			<content:encoded><![CDATA[<p><strong><a href="http://www.seedmagazine.com/news/universe-in-2009/">UNIVERSE IN 2009</a></strong></p>
<h2><a id="a002177" class="permalink" href="http://www.seedmagazine.com/news/2009/02/is_mit_obsolete.php">Is MIT Obsolete?</a></h2>
<p class="deck">On the future of invention.</p>
<p class="byline"><span class="author">by <a href="http://www.seedmagazine.com/news/author-neil-gershenfeld/">NEIL GERSHENFELD</a></span> • Posted February 3, 2009 11:27 AM</p>
<div class="articleBody">
<p> </p>
<p class="insetImage narrow"><img src="http://www.seedmagazine.com/news/uploads/MIT_finalART.jpg" alt="" /><span>Illustration by Raymond Biesinger.</span></p>
<p>Today&#8217;s advanced research and education institutions are essential to tackling the grand challenges facing our planet, but they&#8217;ve been based on an implicit assumption of technological scarcity — advances in those technologies now allow these activities to expand far beyond the boundaries of a campus.</p>
<p>Research requires funding, facilities, and people; I came to MIT to get access to all of these. State-of-the-art research infrastructure, large library collections, and world-class faculty are all expensive resources that limit admission slots, classroom space, and research positions. But what would happen if these things were no longer scarce?</p>
<p>That&#8217;s increasingly the case. The Internet has already enabled distance learning, providing video links to classrooms and remote access to online content (such as MIT&#8217;s OpenCourseWare). By digitizing not just the communication of ideas but also the fabrication of things, the campus can now effectively come to the student.</p>
<p>To understand how this is possible, return first to the earlier digital revolutions. Analog telephone calls degraded with distance; in the 1940s Claude Shannon showed that by transmitting them digitally they could be received without errors. This insight eventually gave rise to the internet. Similarly, analog computations degraded the longer they ran; in the 1950s John von Neumann and colleagues gave us digital computers that could correct their errors. These early giant mainframes begat &#8220;minicomputers,&#8221; which led in turn to the microprocessors used in personal computers (and increasingly everything else). </p>
<p>Something similar is happening to fabrication. In making today&#8217;s most advanced airplanes or integrated circuits, the intelligence is in the tools rather than the materials, which are cut, carved, mixed, and melted as they have been for millennia. But prototype processes in the laboratory can construct with codes, turning information into objects and vice versa, just as the proteins in your body can execute programs and correct errors.</p>
<blockquote class="pull"><p>Fab labs are like libraries for a new kind of literacy, the reading and writing of objects rather than books.</p></blockquote>
<p>This research will eventually lead to &#8220;personal fabricators&#8221; that will be able to make almost anything (including themselves). But it&#8217;s already possible to approximate their capabilities in field &#8220;fab labs&#8221; that are similar in cost and complexity to the minicomputers that were so important in the history of computing. Fab labs contain tens of thousands of dollars of computer-controlled tools that, although they don&#8217;t yet use fundamentally digital fabrication processes, can be used together to convert an electronic description into a functional object. Projects underway in fab labs include producing low-cost, low-power computers, wireless data networks, instruments for agriculture and the environment, and on-demand housing.</p>
<p>Pulled by a universal desire to measure and modify the world as well as get information about it on a computer screen, fab labs have spread around the globe, from inner-city Boston to rural India, from South Africa to northern Norway. The number of them has been doubling every 1.5 years or so; there are now about 30 (the most recent one opened in Afghanistan), with that many more currently being planned.</p>
<p>The only problem with providing ordinary people with modern means for invention is that this doesn&#8217;t fit within the conventional categories of education, industry, or aid. To fill this void, the fab lab network is now inventing new organizations: a non-profit Fab Foundation to support invention as aid, a for-profit Fab Fund to provide global capital for local inventors and global markets for local inventions, and an educational Fab Academy for distributed advanced technical education.</p>
<p>The Fab Academy is a network rather than a place, with teachers and students in fab labs around the world linked by broadband video, shared online information, and common technical capabilities. Its purpose is to keep up with the remarkable kids who are getting hands-on technical training in fab labs that is outstripping what they can learn in their (frequently dysfunctional) local school systems. Through this network I see colleagues above the Arctic Circle more often than ones who are in the same building at MIT, because on campus we&#8217;re all so busy juggling all of the activities that are happening in that single location.</p>
<p>The heart of MIT is its intellectual rather than physical infrastructure: a research culture that creates room for new ideas by emphasizing their evaluation through rapid reduction to practice, and by mixing short-term applications (both serious and silly) with long-term research. It&#8217;s much harder, however, to make room for new people by squeezing them into the same limited campus space. I recently helped plan substantial buildings to accommodate research growth at MIT and in the fab lab network; the former, at $100 million, was about 100 times the cost of the latter. While there are advanced capabilities that remain available only on campus, that boundary is rapidly receding.</p>
<div class="inArticleAd">
<p><span style="font-weight: normal;">This moment is akin to the turn of the last century, when philanthropists funded the spread of libraries to provide community access to the kinds of collections that had previously been available only to institutions and wealthy individuals. Fab labs are like libraries for a new kind of literacy, the reading and writing of objects rather than books. Instead of building a few big labs, it&#8217;s now possible to build a network of many more-accessible smaller labs that can be used for technical empowerment, training, incubation, and invention.</span></div>
<p>A few hundred top universities with a few thousand students each can hope to host only millions out of the billions of people on the planet, but insight and invention do not stop there. The MITs of the world are far from obsolete, but instead of draining brains away from where they are most needed, these institutions can now share not just their knowledge but also their tools, by providing the means to create them. Rather than advanced technological development and education being elite activities bounded by scarce space in classrooms and labs, they can become much more widely accessible and locally integrated, limited only by the most renewable of raw materials: ideas.  — <em>Neil Gershenfeld is the director of MIT&#8217;s Center for Bits and Atoms.</em></div>
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		<title>Reboot the FCC</title>
		<link>http://www.appapillai.com/blog/2008/12/30/reboot-the-fcc/</link>
		<comments>http://www.appapillai.com/blog/2008/12/30/reboot-the-fcc/#comments</comments>
		<pubDate>Wed, 31 Dec 2008 00:12:31 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[FCC]]></category>
		<category><![CDATA[Lessig]]></category>

		<guid isPermaLink="false">http://www.appapillai.com/blog/?p=559</guid>
		<description><![CDATA[
Reboot the FCC

We&#8217;ll stifle the Skypes and YouTubes of the future if we don&#8217;t demolish the regulators that oversee our digital pipelines.
Lawrence Lessig
Newsweek Web Exclusive

Economic growth requires innovation. Trouble is, Washington is practically designed to resist it. Built into the DNA of the most important agencies created to protect innovation, is an almost irresistible urge [...]]]></description>
			<content:encoded><![CDATA[<p><span class="Apple-style-span" style="text-transform: none; text-indent: 0px; border-collapse: separate; font: 16px 'Times New Roman'; white-space: normal; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;"></p>
<div class="headline" style="margin: 0px; font: bold 23pt/1em Arial, Helvetica, sans-serif; color: #000000;">Reboot the FCC</div>
<div class="deck" style="margin: 0px; display: block; font: bold 11pt/1.1em Georgia, san-serif; color: #000000;">
<p>We&#8217;ll stifle the Skypes and YouTubes of the future if we don&#8217;t demolish the regulators that oversee our digital pipelines.</p></div>
<div class="author" style="padding-bottom: 0px; padding-left: 0px; padding-right: 0px; font: bold 10pt Arial, Helvetica, sans-serif; color: #585449; padding-top: 20px;">Lawrence Lessig</div>
<p>Newsweek Web Exclusive</p>
<div class="body" style="padding-bottom: 0px; padding-left: 0px; padding-right: 0px; font: 9pt Arial, Helvetica, sans-serif; color: #000000; padding-top: 4px;">
<p>Economic growth requires innovation. Trouble is, Washington is practically designed to resist it. Built into the DNA of the most important agencies created to protect innovation, is an almost irresistible urge to protect the most powerful instead.</p>
<p>The FCC is a perfect example. Born in the 1930s, at a time when the utmost importance was put on stability, the agency has become the focal point for almost every important innovation in technology. It is the presumptive protector of the Internet, and the continued regulator of radio, TV and satellite communications. In the next decades, it could well become the default regulator for every new communications technology, including, and especially, fantastic new ways to use wireless technologies, which today carry television, radio, internet, and cellular phone signals through the air, and which may soon provide high-speed internet access on-the-go, something that Google cofounder Larry Page calls &#8220;wifi on steroids.&#8221;</p>
<p>If history is our guide, these new technologies are at risk, and with them, everything they make possible. With so much in its reach, the FCC has become the target of enormous campaigns for influence. Its commissioners are meant to be &#8220;expert&#8221; and &#8220;independent,&#8221; but they&#8217;ve never really been expert, and are now openly embracing the political role they play. Commissioners issue press releases touting their own personal policies. And lobbyists spend years getting close to members of this junior varsity Congress. Think about the storm around former FCC Chairman Michael Powell&#8217;s decision to relax media ownership rules, giving a green light to the concentration of newspapers and television stations into fewer and fewer hands. This is policy by committee, influenced by money and power, and with no one, not even the President, responsible for its failures.</p>
<p>The solution here is not tinkering. You can&#8217;t fix DNA. You have to bury it. President Obama should get Congress to shut down the FCC and similar vestigial regulators, which put stability and special interests above the public good. In their place, Congress should create something we could call the Innovation Environment Protection Agency (iEPA), charged with a simple founding mission: &#8220;minimal intervention to maximize innovation.&#8221; The iEPA&#8217;s core purpose would be to protect innovation from its two historical enemies—excessive government favors, and excessive private monopoly power.</p>
<p>Since the birth of the Republic, the U.S. government has been in the business of handing out &#8220;exclusive rights&#8221; (a.k.a., monopolies) in order to &#8220;promote progress&#8221; or enable new markets of communication. Patents and copyrights accomplish the first goal; giving away slices of the airwaves serves the second. No one doubts that these monopolies are sometimes necessary to stimulate innovation. Hollywood could not survive without a copyright system; privately funded drug development won&#8217;t happen without patents. But if history has taught us anything, it is that special interests—the Disneys and Pfizers of the world—have become very good at clambering for more and more monopoly rights. Copyrights last almost a century now, and patents regulate &#8220;anything under the sun that is made by man,&#8221; as the Supreme Court has put it. This is the story of endless bloat, with each round of new monopolies met with a gluttonous demand for more.</p>
<p>The problem is that the government has never given a thought to when these monopolies help, and when they&#8217;re merely handouts to companies with high-powered lobbyists. The iEPA&#8217;s first task would thus be to reverse the unrestrained growth of these monopolies. For example, much of the wireless spectrum has been auctioned off to telecom monopolies, on the assumption that only by granting a monopoly could companies be encouraged to undertake the expensive task of building a network of cell towers or broadcasting stations. The iEPA would test this assumption, and essentially ask the question: do these monopolies do more harm than good? With a strong agency head, and a staff absolutely barred from industry ties, the iEPA could avoid the culture of favoritism that&#8217;s come to define the FCC. And if it became credible in its monopoly-checking role, the agency could eventually apply this expertise to the area of patents and copyrights, guiding Congress&#8217;s policymaking in these special-interest hornet nests.</p>
<p>The iEPA&#8217;s second task should be to assure that the nation&#8217;s basic communications infrastructure spectrum— the wires, cables and cellular towers that serve as the highways of the information economy—remain open to new innovation, no matter who owns them. For example, &#8220;network neutrality&#8221; rules, when done right, aim simply to keep companies like Comcast and Verizon from skewing the rules in favor of or against certain types of content and services that run over their networks. The investors behind the next Skype or Amazon need to be sure that their hard work won&#8217;t be thwarted by an arbitrary decision on the part of one of the gatekeepers of the Net. Such regulation need not, in my view, go as far as some Democrats have demanded. It need not put extreme limits on what the Verizons of the world can do with their network—they did, after all, build it in the first place—but no doubt a minimal set of rules is necessary to make sure that the Net continues to be a crucial platform for economic growth.</p>
<p>Beyond these two tasks, what&#8217;s most needed from the iEPA is benign neglect. Certainly, it should keep competition information flowing smoothly and limit destructive regulation at the state level, and it might encourage the government to spend more on public communications infrastructure, for example in the rural areas which private companies often ignore. But beyond these limited tasks, whole phone-books worth of regulation could simply be erased. And with it, we would remove many of the levers that lobbyists use to win favors to protect today&#8217;s monopolists.</p>
<p>America&#8217;s economic future depends upon restarting an engine of innovation and technological growth. A first step is to remove the government from the mix as much as possible. This is the biggest problem with communication innovation around the world, as too many nations who should know better continue to preference legacy communication monopolies. It is a growing problem in our own country as well, as corporate America has come to believe that investments in influencing Washington pay more than investments in building a better mousetrap. That will only change when regulation is crafted as narrowly as possible. Only then can regulators serve the public good, instead of private protection. We need to kill a philosophy of regulation born with the 20th century, if we&#8217;re to make possible a world of innovation in the 21st.</p>
<p><em>Lessig is a professor at Stanford Law School and the author of five books, including most recently &#8220;Remix: Making Art and Commerce Thrive in the Hybrid Economy.&#8221;</em></div>
<div class="URL" style="padding-bottom: 5px; padding-left: 0px; padding-right: 0px; font: 10pt Arial, Helvetica, sans-serif; color: #585449; padding-top: 12px;">URL: http://www.newsweek.com/id/176809</div>
<p></span></p>
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		<title>NYTimes</title>
		<link>http://www.appapillai.com/blog/2008/11/23/nytimes/</link>
		<comments>http://www.appapillai.com/blog/2008/11/23/nytimes/#comments</comments>
		<pubDate>Sun, 23 Nov 2008 13:58:58 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[Goldin]]></category>
		<category><![CDATA[Murdoch]]></category>
		<category><![CDATA[NYTimes]]></category>

		<guid isPermaLink="false">http://www.appapillai.com/blog/?p=480</guid>
		<description><![CDATA[ Ole media struggling to re-invent itself &#8211; largely failing except Newscorp(Rupert Murdoch).  Seth Goldin, lives in upper Westchester, NY and writes the peice below; not new, well known to the technorati for almost 5 years.

Watching the Times struggle (and what you can learn) &#8211; Seth Goldin
Page by page, section by section, the influence of the New [...]]]></description>
			<content:encoded><![CDATA[<p> Ole media struggling to re-invent itself &#8211; largely failing except Newscorp(Rupert Murdoch).  Seth Goldin, lives in upper Westchester, NY and writes the peice below; not new, well known to the technorati for almost 5 years.</p>
<blockquote>
<h3>Watching the Times struggle (and what you can learn) &#8211; Seth Goldin</h3>
<p>Page by page, section by section, the influence of the New York Times is fading away. Great people on an important mission, but their footprint is shrinking and the company is losing stock value and cash and power and the ability to have the impact that they might.</p>
<p>Today&#8217;s Sunday magazine has a cover story on Jennifer Aniston. Of course!</p>
<p>&#8220;All the News That&#8217;s Fit to Print&#8221; is the heart of the problem. It was never that, of course. It was &#8220;All the News That Fits.&#8221; The entire mindset of (every) newspaper has been driven by the cost of paper, the finite nature of paper, the cost of delivery and the cycle of a daily paper. You run enough articles to fit as many ads as you can sell.These are artifacts of a different age, one that today&#8217;s consumer doesn&#8217;t care a whit about.</p>
<p>Lots of organizations go through this analysis. How do you leverage your brand or your customer base to get to the next level, to enter new markets or new technologies&#8211;and do it while running your old business. And almost without exception, organizations are run by people who want to protect the old business, not develop the new one.</p>
<p>When you think about your business, realize that it is a combination of assets and constraints. The Times understood both, but suddenly, the constraints changed. Now, it&#8217;s possible for a single individual with a Typepad account to reach more people than almost any newspaper in the country can. Loosen one constraint and the game changes. That leaves you with the assets, for a while anyway.</p>
<p>When in pain, the answer is not to pander to the masses and undo the very things that made you special.</p>
<p>Ten years ago, the paper knew what it had to do. They had a shot at inventing the future, but compromised their way to it instead of leading. Here are some simple ways they could think big instead of merely failing to defend the status quo:</p>
<p><em>1. Use their influence and brand to enable users to spread their content:</em><br />
Why, precisely, aren&#8217;t the Zagats guides a NY Times product? Or Yelp? That&#8217;s a quarter of a billion dollars worth of value that the paper with the most influential restaurant reviews page didn&#8217;t create. Why didn&#8217;t they build Wikipedia? Or a platform to influence the way politicians govern?</p>
<p>Hiring and promoting David Pogue is a great example of expanding that base into the online world. Buying about.com was smart, but being afraid to put the Times name on it was an error&#8230; an opportunity for leverage, wasted.</p>
<p><em>2. Leverage the op-ed page and spread important ideas:</em><br />
Sure, Tom Friedman and a handful of other columnists have a large reach and influence. But why doesn&#8217;t the Times have 50 columnists? 500? <a href="http://www.tompeters.com/">Tom Peters</a> or<a href="http://jimleff.blogspot.com/">Jim Leff</a> or <a href="http://www.joelonsoftware.com/">Joel Spolsky</a> or <a href="http://www.personaldemocracy.com/">Micah Sifry</a> or <a href="http://www.escapefromcubiclenation.com/">Pam Slim</a> or <a href="http://ronpaulblog.com/">Patrick Semmens</a> or <a href="http://www.danpink.com/">Dan Pink</a> would be great columnists. Why not view the endless print space online as an opportunity to leverage their core asset?</p>
<p>What would happen if the huge team of existing Times editors and writers each interviewed an interesting or important person every day? 5,000 or 10,000 really important interviews every year, each waiting for a sponsor, each finding a relevant audience&#8230;</p>
<p><em>3. Build a permission asset:</em><br />
Times readers are among the most informed cultural consumers in the world. They tend to have money to spend and are eager for new ideas. What an opportunity to build 10 or a 100 or ten thousand silos. Carefully focused free email newsletters, and then blogs, each with an editor and plenty of relevant and useful ads. Well-written ideas, delivered with authority, are as important as ever. The Times sat back and let hundreds of other micro-sites deliver this instead.</p>
<p><em>4. Keep score:</em><br />
The New York Times bestseller list used to matter a great deal. It became a self-fulfilling prophecy, because bookstores discounted and promoted the bestsellers, which helped them sell more.</p>
<p>We still want to know what the bestsellers are, but the Times works hard not to tell us. There are literally a thousand categories of media that people want to know about (top blogs, top DVDs, etc.) and the Times abdicated their ability to keep score, to be the trusted referee and to drive the short head in almost every form of culture.</p>
<p>Consider this for a moment: Oprah is able to sell ten times as many copies of a book than the New York Times can. The Times abdicated their role as the leader of the conversation about books.</p>
<p><em>5. Stringers:</em></p>
<p>The Times has always used freelancers and stringers to report and contribute to the paper. But how many? Why doesn&#8217;t the paper have 10,000 stringers, each with a blog, each angling to be picked up by the central site? You wouldn&#8217;t have to pay much per story to build a semi-pro cadre of writers and reporters. When you organize the news (delivering unique perspectives to people who want to hear them) you influence the conversation.</p>
<p><em>6. Create new platforms for advertisers:</em></p>
<p>The Times has profited longer than most newspapers because of New York. New York is an efficient place to be a newspaper. Lots of people, lots of advertisers, lots of spending, influence all over the world. But even that isn&#8217;t enough to support the failing economics of dead trees and delivery. The only reason a paper exists (from a business point of view) is to sell ads.</p>
<p>So, what sort of ad-rich, ad-centric media could they build? From directories to pdfs to coupons to promotions, the list is nearly endless.</p>
<p>Instead of building something that dominates in this century the way they did in the last, the editors at the paper are pandering to the masses (and failing). Today&#8217;s Magazine not only features the aforementioned volumes of insight about Jennifer Aniston, but it also includes yet another lame Ethicist column (they run it because they always have) and a weak interview with David Lynch (which no one will talk about on Monday). It also features recipes (we don&#8217;t need more recipes, thanks, we now have an infinite number of recipes) and their latest affectation, which is overdesigned typesetting that is unreadable. All of these efforts are placeholders, not bold moves to create something that matters.</p>
<p>The people I know at the Times are smart, driven, honest and on a mission to do great work. The people didn&#8217;t fail the system, the system failed them.</p>
<p>Do the people running the Times know more about running a newspaper or building ideas that spread profitably online? How about the people running your organization? Odds are, they&#8217;re great at yesterday&#8217;s business.</p>
<p>I guess it&#8217;s about the difference between:</p>
<ul type="disc">
<li>senior management playing defense, supporting and protecting the status quo and avoiding offending the elders upstairs vs.</li>
</ul>
<li>using existing momentum and clout to build assets for the next business.</li>
</blockquote>
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		<title>Nuclear : Clean, Safe, Affordable Power</title>
		<link>http://www.appapillai.com/blog/2008/11/16/nuclear-clean-safe-affordable-power/</link>
		<comments>http://www.appapillai.com/blog/2008/11/16/nuclear-clean-safe-affordable-power/#comments</comments>
		<pubDate>Sun, 16 Nov 2008 15:36:57 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Energy]]></category>
		<category><![CDATA[Technology]]></category>
		<category><![CDATA[hyperion]]></category>
		<category><![CDATA[nuclear]]></category>
		<category><![CDATA[power]]></category>

		<guid isPermaLink="false">http://www.appapillai.com/blog/?p=442</guid>
		<description><![CDATA[Brilliant idea !
http://www.hyperionpowergeneration.com/



Clean, Safe, Affordable Power 
Where you need it,  When you need it.






Who would have thought that the benefits of generating electricity from huge nuclear power plants&#8230;


 
 Clean
no greenhouse gases to contribute to climate change Safe
the most controlled and regulated type of power on the planet Affordable
the cheapest in terms of dollars &#38; environmental impact
 Reliable
Available 24 /7 rain or [...]]]></description>
			<content:encoded><![CDATA[<p>Brilliant idea !</p>
<p><a href="http://www.hyperionpowergeneration.com/">http://www.hyperionpowergeneration.com/</a></p>
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<td valign="top"><strong>Clean, Safe, Affordable Power</strong> <br />
<strong>Where you need it,  When you need it.</strong></td>
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<td colspan="2" valign="top">Who would have thought that the benefits of generating electricity from huge nuclear power plants&#8230;</td>
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<td width="386" valign="top"> <a href="http://www.appapillai.com/blog/wp-content/uploads/2008/11/hyperion-nuclear.jpg"><img class="aligncenter size-full wp-image-445" title="hyperion-nuclear" src="http://www.appapillai.com/blog/wp-content/uploads/2008/11/hyperion-nuclear.jpg" alt="" width="386" height="288" /></a></td>
<td valign="top"><strong> <strong>Clean</strong></strong><br />
no greenhouse gases to contribute to climate change<strong> <strong>Safe</strong></strong><br />
the most controlled and regulated type of power on the planet<strong> <strong>Affordable</strong></strong><br />
the cheapest in terms of dollars &amp; environmental impact</p>
<p><strong> <strong>Reliable</strong></strong><br />
Available 24 /7 rain or shine, windy or calm</td>
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<td colspan="2" valign="top">&#8230;could ever be provided in a small, compact, energy module that can be transported by truck, rail or ship to remote locations wherever reliable electricity and heat for communities and industry is needed?<strong>Now it is! Introducing the Hyperion Power Module (HPG)</strong></td>
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<p> </p>
<p align="center"> </p>
<p><strong>Think About It:</strong> <br />
<em>Global warming. Dependence on foreign oil. Infrastructure vulnerable to natural and manmade catastrophes. Undrinkable water, poverty, disease, social unrest.</em> </p>
<p>These increasingly serious problems can only be solved by finding solutions to the ever-expanding energy crisis. </p>
<p>For many good reasons, an integral part of the new mix of energy technologies that will be needed to solve these problems is Nuclear. Wind, solar, geothermal &#8211; all available technologies are important and will have their place in the ultimate solution to our global energy problem. But the workhorse is going to be nuclear.<em>(see</em><em> </em><em><a href="http://www.hyperionpowergeneration.com/why.html" target="_top">why nuclear</a>)</em></p>
<p>However, until now &#8211; until Hyperion, nuclear power and the many benefits it offers: clean, emission-free, affordable energy &#8211; was only available from large, expensive nuclear power plants that took 10 years or more to build. And, many locations that could have benefited from nuclear power were not appropriate &#8211; the land was not available or the population was not large enough to warrant a huge power plant.</p>
<p>Invented at the famed Los Alamos National Laboratory, Hyperion small modular power reactors make all the benefits of safe, clean nuclear power available for remote locations. For both industrial and community applications, Hyperion offers reliable energy with no greenhouse gas emissions. Hyperion power is also cheaper than fossil fuels and, when you consider the cost of land and materials, watt to watt, Hyperion&#8217;s innovative energy technology is even more affordable than many developing &#8220;alternative&#8221; energy technologies.</p>
<p>Small enough to be transported on a ship, truck or train, Hyperion power modules are about the size of a &#8220;hot tub&#8221; &#8211; approximately 1.5 meters wide. Out of sight and safe from nefarious threats, Hyperion power modules are buried far underground and guarded by a security detail. Like a power battery, Hyperion modules have no moving parts to wear down, and are delivered factory sealed. They are never opened on site. Even if one were compromised, the material inside would not be appropriate for proliferation purposes. Further, due to the unique, yet proven science upon which this new technology is based, it is impossible for the module to go supercritical, &#8220;melt down&#8221; or create any type of emergency situation. If opened, the very small amount of fuel that is enclosed would immediately cool. The waste produced after five years of operation is approximately the size of a softball and is a good candidate for fuel recycling.</p>
<p>Perfect for moderately-sized projects, Hyperion produces only 25 MWe &#8211; enough to provide electricity for about 20,000 average American sized homes or its industrial equivalent. Ganged or teamed together, the modules can produce even more consistent energy for larger projects.</p>
<p>The Hyperion team is committed to helping make the clean and safe benefits of nuclear power &#8211; benefits that could assist in solving the worst of our planet&#8217;s problems &#8211; available in even the most remote locations. We hope you will enjoy learning about Hyperion through our web site!</td>
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