11.24.2009

Freedom from too much information

The abundance of free content gave me another idea for a possible scarcity to spawn a freemium business model. What if the abundance of free content gets old? What if we begin to experience the negative side of all that abundance? What if we begin to throw up red flags when we're feeling overwhelmed by the abundance like:
  • I didn't ask for this information!
  • This is too much information!
  • I'm not ready for all this content!
  • This comes at a bad time for me!

To throw up red flags like this is a healthy sign. We are exhibiting a sense of an independent self with healthy boundaries from recurring abuse. We've disentangled ourselves from entrapments that fail to honor, respect and value us. We are standing up for what represents who we intend to be and how we want to relate to the world. We are acting on choices found within rather than reacting with fear, guilt or obligatory limitations to what gets imposed on us.

Within this possibility, freedom from "too much information" is a new scarcity created by the abundance of content. The abundance is easy to come by, the freedom from it is not. It's no problem to drink from the fire hose. It's a big problem to shut it off or distance ourselves from getting blasted.

Within this possibility, the abundance of content is free. It then will be worth some added expense to:
  • get information only when we request it
  • get the right amount of information for our immediate purposes
  • get the content when we're ready for it
  • get to postpone receiving or inventory content for later use when the timing is right

This business model would then function as a disruptive innovation for enterprises that:
deliver content on it's own broadcasting schedule in formats that cannot be time-shifted
publish content in bound volumes that cannot be searched, tagged or bookmarked
aggregate large quantities of digital resources that do not support searches for personal uses
push too much content onto audiences that wanted "just a little for now"

The goal posts would then be moved. The game would be changed to providing answers to questions, responses to requests and possibilities to generate further questions. Free content would remain free, but freedom from it's timing, excesses and lack of selection options would be costly.

11.23.2009

Free answers - costly questions

When we're formulating a "freemium" business model, we need to become well travelled along the boundary between abundance and scarcity. Any new abundance creates new scarcities while rendering previous scarcities as obsolete, contrived or controlling. The new abundance also heightens our appreciation of the potential value, benefits and uses of a new scarcity. We recognize how some of the new scarcity is cheap, over-priced or useless.

This morning I've been exploring how "quality questions" might become the new scarcity amidst the abundance of free content, answers, finds, resources and solutions. It initially occurred to me that there are plenty of cheap questions, throwaway questions and unrewarding questions. We don't need "consumer education" to recognize questions that create value while satisfying our love our mysteries, adventures and ongoing explorations.

I then realized that most of my best questions have dawned on me in the midst of intense thought processes. Questions seem to arise like emergent outcomes of complex adaptive systems. When I'm describing this process I say things like:
Reflecting on all those recent developments that I'm seeing suddenly gave me a new question to explore.
Changing my point of view revealed a new question I was not previously considering.
Making use of that new concept raised a whole new set of questions for me to get answered.
Comparing these alternatives uncovered many deeper questions to ponder.
When I'm saying things like this, I'm expressing a profound appreciation for quality questions. I regard them as relatively scarce compared to the abundance of further explorations. I value them as gifts, treasures and gems. The value of these questions seems genuine to me, not artificial, contrived or hyped. I'm using the questions to support processes that I trust while get me where I want to go.

I then entertained a new question: could the right kind of question change our minds? I thought of several different ways to ask the question:
  • How can challenging questions open closed minds that have adopted a stance of "no further questions your Honor"?
  • How could an insightful question shatter long-held assumptions which have denied the reality of the situation?
  • How can penetrating questions revise reasoning that has relied on "either/or" binary explanations?
  • How could several disturbing questions transform a draining vicious cycle into an energizing virtuous cycle?
I then noticed how I was framing valuable questions as challenging, insightful, penetrating and disturbing. I was setting myself up to appreciate scarce questions, discriminate between different qualities of questions, and regard the right questions for the job as inherently useful. By seeking valued outcomes from my use of questions, I was both open to benefiting from the abundance of answers and guarded against cheap, throwaway and unrewarding questions.

This seems to me like the start of a freemium business model that works with "content wanting to be free".

11.20.2009

Forecasting the flip

Another way to assess the likelihood of scaling an innovation eluded my searching yesterday. This morning I found it in Chapter Four of the book: Disrupting Class - How disruptive innovation will change the way the world learns by Clayton Christensen, Michael  B. Horn and Curtis W. Johnson. In the words of the authors:
It turns out there is a way to forecast the flip. ... one must plot on the vertical axis the ratio of market shares held by the new, divided by the old (if each has 50 percent, this ratio will be 1.0). Second, the vertical axis needs to be arrayed on a logarithmic scale—so that .0001, .001, .01, .1, 1.0, and 10.0 are all equidistant. When plotted in this way, the data always fall on a straight line. If the first four or five points do not lie in a line, it is a signal that there is no compelling driver for substitution. But the line is always straight if a disruption is occurring. Sometimes the line slopes upward steeply, and sometimes it is more gradual. The reason the line is straight is that the mathematics "linearizes" the S‑curve. When the substitution pace is plotted in this way, one can tell what the slope of the line is even when the new approach accounts for only 2 to 3 percent of the total. That makes it easy to extend the line into the future to get a sense of when the innovation will account for 25 percent,50 percent, and 90 percent of the total. We call this line a "substitution curve." (pages 97-98)
The compelling driver for "the innovation replacing the incumbent" is evident in the early market share data. Scaling of the innovation is simply the accumulation of the ongoing logarithmic increases. The S curve flips from "curving up" to "bending over". That turning point has been compared to "taking swings at beach balls where you can't miss", "getting caught up in a tornado" and "hitting the first bowling pin that knocks over all the others".

11.19.2009

Will your innovation scale?

Yesterday I was thrilled to discover, via LinkedIn, the announcement of a competition for business plans in the education space. So much of what I've explored in this blog could be restated as a business plan. I spent most of yesterday contemplating how I could reformulate my writings about disrupting higher ed into a scalable solution to the college dropout problem. The First Annual Milken-PennGSE Education Business Plan Competition defines it's parameters as:
Educational entrepreneurship business plans should outline the problem they address, offer a solution, and discuss scaling possibilities for bringing the proposed innovation to additional settings ...... In evaluating business plan submissions, our judges will consider the importance of the educational problem, the creativity and feasibility of the proposed solution, and the potential for widespread impact.
This morning I did a Google search of "scaling innovations" to refine my thinking about the third parameter in the competition. While I found an abundance of content that addresses the scaling of innovations in education, none of it aligned with the model in my mind about scaling. Most of it sought to get incumbents to disrupt themselves, as if educators are being asked to pull the rug out from under their own feet Thus I'm feeling compelled to spell out how I answer the question: "Will my innovation scale up into widespread use?"
  1. Innovations have a chance of scaling if they are "off the radar of the incumbents". This may occur by serving non-consumers of the market leaders, offering lower cost alternatives down market or appearing too weird to pose any obvious threat to those incumbents. Innovations are imperiled by competing directly with, stealing customers from or generating negative press for the incumbents with the resources to annihilate the innovation.
  2. Innovations may scale if they evolve into a total solution. They they offer a "package deal" that handles lots more issues besides the innovation itself. Innovations will not take off if they cannot answer the misgivings and exploratory questions of potential customers.
  3. Innovations are likely to scale if the inventors have "let go of their baby". The process of developing a viable innovation is deeply immersive and intensely engaging. The design issues demand so much attention, the inventors assume "everyone will want this". The innovation only gains widespread adoption when it serves other perspectives, functions in other contexts and solve other problems besides the inventor's original conception.
  4. Innovations improve their chances of scaling when they rebound from the dip (Godin), chasm (Moore) or hype cycle (Gartner). The second launch then appeals to pragmatists who want to use the innovation as a tool, shortcut or solution to their particular situation. They are relying on it's reputation and will spread the word if it works for them. Otherwise, innovations lose out when once the thrill is gone, the early adopters have gotten bored with it and the high churn press coverage has moved on to the next new thing.
When all four of these issues get handled by the ways of bringing the innovation to market, the odds are in its favor to scale to widespread adoption. Each neglected issue weakens the chances significantly. Failing all four concerns reduces the possibility of scaling to nil.

11.17.2009

Formulating a total solution

When we've developed an innovative product or service, the marketplace may not want it yet, understand it on their own terms or see any use for it in their personal contexts. They may be asking:
  • What good is this to me?
  • Why should I want to acquire this?
  • How can I be the judge of the quality of this?
  • Why should I trust what the sales pitch says about this?

Those adventurous types that buy something before the herd has a clue that it exists, may be disappointed with their purchase of the innovative product or service. It may not work as promised, not function in the way they had hoped, or took more effort than they expected. Those early adopters may be asking:
  • Why wasn't I told about these disadvantages and difficulties before I bought this?
  • How could I be so gullible, unsuspecting and naive to fall for this?
  • What was I thinking when I found this offer to be appealing?
  • Why was I so impulsive as to leap before I looked?

Once the innovation gets debugged and refined, some of that buyer's remorse will vanish. Once the disconnects between marketing and actual functionality get cleaned up, more customers will be satisfied with their purchases. Then there will be a new crowd of customers who want to do more with the innovation, who wonder how to get the most out of it and who are considering ways to apply the innovation in other situations. These pragmatists may be asking:
  • Where else can this be applied?
  • How else can this be made to function for me?
  • What can this do when applied to some of my other problems?
  • Why does the innovation limit itself to those prescribed applications?

All three sets of questions are opportunities to formulate a total solution for the customers. The original innovation gets contained in a larger package. The potential buyers with problems encounter the total solution that says to them: "bring it on, we get this all the time". The potential buyers experience "customer service before the sale". They're then sold on how they were treated, served and respected by the total solution. Their trust in the innovation is deepened by how they got their questions answered, misgivings resolved and remorse prevented. The established customers get service after the sale. They become "brand hijackers" who spread the word of the "great innovation they've been using". They get into the spirit of how they we're treated as they serve their strong and weak social network links with answers to their questions. The total solution takes on a life of its own.

11.16.2009

Inducing realizations

When we're presenting, authoring, teaching or designing instruction, we're relying on a field-tested theory about learning. We may assume that the only things coming to the minds of the learner are from us. We may otherwise assume we're competing with many other things that come to their minds besides what we're presenting.

When we assume we're in control of what comes to learners' minds, we're inclined to think that we can make learning happen. We've simplified our world view to include so few variables that we're overconfident about our role in the complex interdependencies. We presume to educate by delivering to, imposing on, coercing the internal processes and manipulating the outcomes from the minds of the learners.

When we assume the learners' minds are out of our control, we're open to the possibility that learning happens emergently. We've complicated our world view to include complex adaptive systems, ecological models and adaptive outcomes. We've gained a different perspective on our role in the system. We're one more pea in the pod, bozo on the bus or drop in the bucket. We presume to educate when we do what it takes for learning to happen on it's own and to come about naturally. We stop trying to make learning happen and then let it happen by trusting the complex processes involved in the minds of the learners. For the past two decades, I've been calling this approach "inducing realizations".

One way to induce realizations in the minds of the learners is to contrast two approaches. For instance, I've just compared "making learning happen" with "letting learning happen". This breaks up the assumption that there is only one way to function, react or decide about how to proceed. It "voices a choice" that may not been previously considered. It may induce added complexity to educators' cognitive networks which routinely respond to situations which call for presentations or instructional designs. It implies that more will come to their minds than what I've just put into it by reading this. I'm assuming readers will come to your own realizations about the significance, uses and value of this choice within their personal contexts. They'll  make up their mind as they're so inclined. Perhaps some learning will happen.

11.12.2009

Leveraging your empathy for the learners

When we already know the material we're going to present, our minds become free to know the learners. We can spend time understanding them in ways they understand themselves. We can prepare to speak their minds and picture them in ways that induce more learning. This cultivated ability to empathize with the learners can be leveraged into more effective instructional designs, learner experiences and disruptive value propositions.

When I've spent time "learning the learners", here's some of what I've discovered:
  • There's a range of different expectations about what I will do for them, with them and in spite of them. Some are cynical and expecting the worst. Others are optimistic and trusting me to provide exceptional value.
  • There are lurking fears about who this may get off to a great start but end up disappointing them. Some are afraid this will be over the heads, moving too fast to keep up or too basic to be of any use.
  • There are those who want to be told the facts, methods and guiding principles. Others want to understand why this approach makes sense, how it compares to others and when it's not applicable.
  • Some learners assume classroom experiences are done to get the grade and nothing else. Others expect to apply what they learn in other classes and then later in life. Some organize their efforts to prepare for the test while the others prepare to enrich their understanding.
When we understand these kinds of variables, there are two ways to mention them to the learners. One way belittles them by saying "I know what you're thinking" and implying "How could you be so stupid?". The other opens their closed minds by saying "Some of you share these concerns" and implying "You want to get the most out of this investment you're making". The first approach is manipulative and attempts to control the learners. The second approach is empathetic and relates respectfully with the learners.

This same contrast occurs in the formulation of disruptive value propositions, innovative educations products and new business models. The first lacks empathy for the learners and pushes the product in their faces. The attempts to deliver the product backfire. The other leverages the empathy for the learners and creates demand for them to inquire into, explore further and realize for themselves the value in this offering. The effects on the learners are enduring, mutually beneficial and significant.