ideasarehere

April 28, 2011

New Problems for Old Economies

Filed under: business,creativity,internet,marketing — Erik Dobberkau @ 00:04

In the last post I mentioned that our scarcest resource today is time, and ended on the question why so few people successfully solve the problem of helping us find what we want.

The problem companies with an industrial background now are facing is this is not a repetitive process, something you can manufacture cheaply and sell for a lot. It’s a process which requires you to care about one single topic more than everyone else so you become the go-to person (or company), and you have to accept that you probably can’t repeat this in another area, because you have to sift ever more, so your own time gets ever more scarce as well. But you only have to have a following in one area of demand to have enough leverage to monetize on it.

So here is the wrap-up of the whole axiom:

  • New users take the standard when they joined a (technical) movement for granted.
  • Continuous technical improvement combined with a continuous intake of new users creates an erosion cycle of the perceived quality of service.
  • With more content available, unobtrusive, personalized recommendations play a larger role than new content.
  • These recommendations can only be effictively mirrored in highly complex algorithms or better be done by a real person, someone who cares about the topic.
  • This care or curatorship creates credibility, credibility leads to a following, a following creates leverage, and ultimately leverage creates revenue.
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