A Completely Automated Business

Here’s a thought…

how far are we away from kids at Harvard coming up with a fully automated business for a class project?

I said it in that context for a couple:

  1. I suspect fully automated businesses already exist in the fringe but I’m talking about something more widely applicable
  2. By the time the kids at Harvard are doing it, it’ll be big news and government regulators will have to start shifting around this potential

Imagine a company called Widgets.com.  Widgets.com is a market place for widgets where manufacturers of widgets can list their products.  Buyers of Widgets can come to the site, pick the widget they want and place an order for delivery.  When a customer places an order, the order is relayed through to the manufacturer and the manufacturer will ship the widget directly through to the buyer.

Widgets.com outsources it’s live chat and call center.  And their web design.  And their IT.  And their Legal.  And their Accounting. And their digital marketing.

Widgets.com would also have extensive data analytics that would help track key information for making strategic decisions.  These data points would include customer feedback and reviews, website activity, error tracking, legal reporting, financial reporting, and social media stats.  And anything else you wanted to include.

The Widgets.com algorithm would be capable of making executive decisions, but would aim to outsource nuanced details.  For example, if pink widgets were trending on social media, a note would go out to the digital marketing team and manufacturers of pink widgets, while a request would go to the web designer to feature pink widgets.  If the situation was more nuanced, say with a zero star review, the algorithm would track that info, forward it to a capable customer service rep and have them work to resolve the issue.

It’s actually a fun exercise because you can do this with just about any decision being made within a company.  I’m pretty sure these are the steps to building this decision engine:

  1.  Identify the cues to look for when identifying a problem
  2. Use additional cues to verify the problem
  3. Review past solutions to the problem or similar problems
  4. If a past solution has worked, use it again
    1. If a past solution works again, make a note
    2. If a past solution doesn’t work, go back to step 2
  5. If a past solution didn’t work, look to variations of solutions to similar problems.

I know that’s a bit of an oversimplification but what I’m getting at is that with enough time and insight, a top CEO could effectively upload his decision engine into a neural net.  Perhaps a decision engine wouldn’t make the best CEO for a complex company that operates in a rapidly changing environment with an actively engaged customer base… but maybe at that point, a human CEO isn’t cutting it either.

That’s where I see this going, especially because it’s already happening.  Big data analytics is an early stage version of human/digital hybrid CEO.  Right now, we’re mostly using data analytics to provide the human CEO with more information.  If the human CEO sees that everything X happens, Y needs to happen, he can automate it.  Once it’s automated, that’s the responsibility of the digital CEO.  As more information starts to get tracked, more patterns will emerge, and more automation will occur.  As that process progresses further and further, the human side is needed less and less.

I’m not sure how this will play out, but I do know that today’s pundits are suggesting that the CEO’s role will be among the last to be taken out by automation.  That before the CEO role goes digital, manufacturing will be replaced by 3D printing, warehouse workers will be replaced by robots, delivery drivers will be replaced by automated trucks and drones, and even computer programmers will be replaced by computers who programmers have taught to program.  Considering that the new Atlas looks like its about to try out for Cirque, who knows.

Reddit Might’ve Just Saved Net Neutrality

Reddit is one of my primary information feeds.  Perhaps needless to say, I’m a fan.  Over the last week or so, I’ve observed something rather significant.

First, the gaming community mobilized against EA and their release of Star Wars: Battlefront 2.  EA’s new progression system meant that most of the game’s best content had to be earned.  Doesn’t sound too bad at first, until you find out that to unlock all the game’s content, it would take over 4500 hours, or $2,100.  To put that in perspective, if you were to play for 3 hours a day, 365 days a year, it would take you just over 4 years to unlock all the content.  To put that in perspective, the next generation of consoles is expected out before then.  And that $2100 that they’re hoping you’ll spend?  That’s above and beyond the $80 price tag for the game itself.  Short-sighted greediness for sure, but something was different this time.

Someone on Reddit had a rant, and EA replied with a classic, corporate speak, disingenuous answer.  I won’t bother repeating the entire reply as the opening sentence says it all:

“The intent is to provide players with a sense of pride and accomplishment for unlocking different heroes.”

I’m tempted to pick it apart, but I’d just be pointing out the obvious.  The response though, was something special.  That reply, became the most down-voted comment in the history of Reddit, earning over 600,000 demerits within just a few days.  Not only did this make the news across several major outlets and cause the execs at Disney to check in on EA, but EA also froze the in-game payment system until further notice.  A win?  Maybe,  but the gaming community isn’t buying it (literally) as they suspect EA will just unfreeze the payment system once enough gamers have caved in.  Well fortunately for the gamers, sales are down significantly compared to the game’s first installment and that’s starting to weigh on EA’s stock price.  Effectively, the gaming community found a way to mobilize on Reddit to deny EA the opportunity to make a really dumb decision.  All within a few days.  All with a few clicks.  Very interesting.

Among all the gaming hoopla, I saw a post that said something to the effect of, ‘If we cared half as much about Battlefront 2 as we did about net neutrality, we wouldn’t have to worry about net neutrality’.  Well, Reddit responded.  Earlier this week, for about 48 hours straight, Reddit’s entire front page was entirely dedicated to the mobilization for net neutrality.  This wasn’t a banner, or an ad, or front page image, it was what seemed to be thousands of posts, across thousands of sub-reddits, all being up-voted by the masses.  I was almost a little annoyed that for 2 days, I didn’t have normal access to one of my news feeds, but I couldn’t help but be in awe of what I was seeing.

I don’t know if the effort by Reddit or any of the other tech majors will be enough to stop this repeal.  Senators don’t pay nearly as much attention to internet chatter as they do to phone calls to their office.  Assuming an average call takes 10 minutes, an office could theoretically take 144 calls over a 24 hour period, or 1008 calls over the course of a week.  There are 100 senators, meaning a little over 100,000 calls would completely occupy the senate’s phone lines for a week.  If that happened, it would probably be the documented as one of the greatest public protests of all time.

At this point, I don’t have a clue how many up votes were cast across how many posts.  If I had guess, somewhere between 2-5 million, suggesting that the support is somewhere between 20-50 times what it should probably take to get the government to reconsider their position.

There are a few problems here.  First, why is it that in a democratic framework, where the people have not asked to repeal net neutrality, is the Chairman of the FCC introducing measures to repeal net neutrality?  The second problem is that internet community, arguably the constituents of this decision, are protesting this decision more fiercely than anything they’ve ever done – and it might be ignored.  Finally, and perhaps the worst problem is that we’re encouraged to think that calls into our senators’ offices are what will make the difference here but at this point, we know that’s bullshit.  They listen when they have to, and they use public backlash as a measure of what they can get away with while still being able to get re-elected.  In all likelihood, there are only two calls that would make a difference here:  If Ajit Pai received a call from the president, or if received a call from the chairman of Verizon.  Unfortunately for us, both have vested financial interests in restricting how the general population accesses information… so I don’t see it happening.

Doom and gloom, I know.  But there’s a bright side.  An awesome bright side.  Government needs tech, desperately.  I’ve been mulling over the idea of a app that would let governments better connect and engage with their people.  The current lines of communication between politicians and their constituents minimize inbound traffic which increases the disconnect.  Without a live connection to your people, it becomes a lot easier to pay attention to the lobbyist that just took you out for a nice steak dinner.  The people need a platform that lets them engage in real time with the people making these kinds of decisions, one that’s easy to use, that people would want to use, and one which decision makers would be held accountable to.  The way that EA and Disney reacted to the Star Wars: Battlefront 2 issue was the first time that any modern platform, let alone Reddit, ticked all those boxes.  If we manage to stop the repeal of net neutrality, I might even say proof of concept.

While Reddit might be the first to demonstrate the effectiveness of a platform like this, Reddit wasn’t designed to bridge the gap between a government and its people.  To do that, it might have to be a little less rough around the edges and frankly, that’s just not Reddit.  But that’s ok, because I have a hard time thinking that I’m the only one that’s been inspired here.  I suspect there are a lot of smart people out there who are seeing what I’m seeing.  We need to revolutionize the way that a government listens to its people and I think the public is figuring that out in a hurry.

One of the greatest counter-productive efforts throughout history has been the ruling class putting a greater emphasis on maintaining their power than helping their people.  A lot of us assumed that kind of behavior died off with the monarchies but somehow it’s more obvious today than ever.  I think we have the internet to thank for that.  The internet revolutionized how we access information which means the government is having a harder and harder time controlling the conversation.   They’re still trying, and it’s confusing the hell out of a lot of people, but the truth keeps finding a way.

The best thing about this for me is that when I keep pulling at that thread and try to visual where this takes us, I start to see something pretty special. If we could create a public that’s actively engaged with the governance issues that they’re interested in, able to control the public discourse, and aware of what one another is thinking in real-time, we have a highly capable voter base that’s capable of decentralizing a government’s power.  If we can connect that voter base to governing officials who are accountable to public discourse and the ongoing engagement of their constituents, we may just be able to put everyone back on the same team and point them in the same direction.  Wouldn’t that be neat.

 

 

Business Ideas: The Next Great Chat Platform

First came texting.. or sms.  Then came a slew of other chat platforms like BBM, Facebook Messenger, WhatsApp, Snap, and not to mention the messaging functions in other apps like Instagram.  I thought it was downright ridiculous what Facebook paid for Whatsapp considering that they could’ve bought all of Blackberry, including Blackberry’s BBM platform and security IP for a fraction of the price.  I could see a shift away from sms but considering that 99% of my texts were just brief text messages, all the added functionality on the newer platforms were lost on me.

The craze over Snapchat also seemed rather ridiculous.  The novelty of sending nudes that would auto-delete wore off pretty quickly when people remembered you could still take a screen shot, but the platform persisted.  I think I eventually figured out why Snapchat was so popular, and it’s rather interesting.  When pictures auto-delete, they don’t take up space on your phone, meaning you can send them frivolously.  A picture is worth a thousand words so a facial expression along with a text is a far richer message than just the text.  It’s also a bit of a game with all the added functionality of filters that continue to push the boundaries of augmented reality.  Effectively, it’s a superior mode of communication to classic texting and like with most things.. the kids are all over it while the old people are complaining about how they don’t understand kids these days.

So what’s the winning recipe?  Especially when you have such well established heavy-weights dominating the industry?  Simple solve the two most relevant problems.  Give them a centralized messaging platform and take an opensource approach to the development of add-ons and other features.

A central messaging platform would allow you to receive messages from all the other messaging platforms, features in tact.   The opensource approach to feature development and add-ons would effectively give the platform to the people, letting them continually develop what they wanted for it.  Almost a democratic approach to its evolution.

Anyone already using more than one platform would likely to gravitate to a centralized messaging hub.  Knowing that the hub maintains the features of all other major platforms, you wouldn’t even need to have the app on your phone after adding your account.  Keeping the feature development in the hands of the users would also ensure that the platform would always remain current.

Texting is like a utility.  Sending brief messages from person to person has become standard mode of communication and the technology is readily available.  Make it secure, make it quick, and have a rich set of continually updated features.  One and two are the responsibility of the business, number three are for the people.  I see a few other businesses who have pulled this off, and many more who might benefit by taking a closer look.