The following is a guest post by Eric Clemons, Professor of Operations and Information Management at The Wharton School of the University of Pennsylvania.
After returning from the World Economic Forum in Davos, I have been thinking about how to build more perfect human societies out of the visibly and demonstrably imperfect human decision makers we have to rely upon. Any classically trained techie knows the answer — it’s feedback loops for error correction. That’s how affordable class B amplifiers are made out of cheap off-the-shelf components.
But what does that have to do with the governance of societies or the future of the high tech sector? So before Davos I was asked the typical “let’s diss Davos” question … “Is Davos anything more than a networking event?” I’d never been to Davos, I didn’t really understand Davos, and I gave the wrong answer. I tried to explain that it was more than networking. The correct answer, of course, is that there is nothing more than networking when trying to plan, to impose structure, and to create even more wealth from otherwise uncoordinated actions. There is nothing more important for the governance of civil and commercial society than people interacting, working together, learning about each other in a full frontal, full bandwidth interaction.
So…what did I learn from my high tech full frontals?
- Google is scarier than I thought. They know exactly what they are doing … from the launch of new free products to their settlement of class action litigation … and they have only one goal. Their successes are no accident and their setbacks are investments, not mistakes. They know what their goal is and you can probably guess. And no, they are not subsidizing the gPhone, the gDrive, or Google Office as their only remaining meaningful charitable contributions now that Bill and Melinda have already solved Malaria, HIV, and the other medical problems that beset Africa.
- Microsoft is now cuddlier than I thought. I have more affection than I used to for the beleaguered team in Redmond (Hell, I have affection for them for the first time). And I am counting on them to ensure that there is a counterbalance to Google. I like bipolar worlds, at least on the technology side.
- Facebook is worth a couple of looks below the obvious surface. If Google has had a plan, the Zuckerbergs may have been merely lucky at first. They (Mark and Randi) are a couple of delightful kids, the brother and sister team of idealists, making a better world one friending at a time. I know there is a business model in here somewhere. I know that they Zs will implement it without abusing my privacy. I hope that they can do it without trying to rely on push-it-out, in-your-face advertising.
- Before Davos I had thought that Michael Arrington of TechCrunch was a jerk. I now know that a lot of this reaction was envy on my part. I learned by watching up close that he is faster with a sound bite, a summary, or a quick insult than anyone else in the field, and that he would rather be physically assaulted than change what he writes. If he is a jerk he is definitely my kind of jerk.
More later on the future of paid search, the future of advertising, the future of online social networks and their impact on the marketplace, the relationship between internet penetration and the quality of American beer, the future of petites digerati in the workplace, later, if Arrington will have me back.
Are you going to share what you believe to be Google’s “one goal”?
I have my views, but they’re so darkly cynical I daren’t go into it right now.
Great advice.
Here’s some more:
1. Always wear fresh underwear
2. Say please and thank you whenever possible.
3. Be respectful of your elders
Thanks, Kid.
hilarious!
“The quality of American beer?” Looking forward to that one!
Professor Clemons,
I fully realize the forum of this post but I’m curious:
Was an acknowledgment of any companies outside of these three (and Mike, heh.) in that frontal interaction?
As you pulled out the feedback loop reference, I’m inclined to wonder what manner and degree of squelch you applied to that signal.
Do tell.
-Jay
Microsoft cuddly, Arrington not a jerk…. what pig did you fly home on?
Interesting insights. I would appreciate it if you could provide us with more insights concerning Google…maybe worth a separate post ?
http://www.wefo...ation/index.htm
“We believe that economic progress without social development is not sustainable, while social development without economic progress is not feasible.”
lorem ipsum jargon put in plain English. There was an independent documentary where 2 guys went to world economic forums and presented mock proposals. This reminds me of that.
Eric,
Nice to see this type of review on Techcrunch, as I’ve read mixed reviews on Davos elsewhere. The World Economic Forum has some responsibility to find answers to the problems facing many economies. I agree with your conclusion, that this is only going to be achieved through structure and ultimately networking, or conversing. I think this will help to create the fair and open civic and commercial governance you mention. Discussion = feedback?
We can’t all turn up at Davos. I thinks it’s really important that the discussions continue online, and that everyone is afforded the opportunity to contributing. We certainly have the tools to help these conversations take place, lowering the barriers for anyone with a conviction to contribute.
Google and maybe Microsoft in a bipolar world…. How paranoid is that? Facebook has a buisness model… Thats clearly the evidence of TechCrunch beeing kidnapped!
I just actually read your article. What you heard there was very high level. I am surprised that you are drawing conclusions based on that at all.
http://i.gizmod...startup-company
Sending spies in is the only real way to find out what they’re cooking. Microsoft is cuddly, LOL. I don’t wanna call you a sucker. I have to, you’re a sucker.
“as their only remaining meaningful charitable contributions now that Bill and Melinda have already solved Malaria, HIV, and the other medical problems that beset Africa.” – Huh?
It’s sarcastic, He’s sucking up to Microsoft and trying to make Google look like the worse company. Ultimately they are both equally as bad and Bill Gates is no saint. He does seem to like charitable contributions as deductibles though.
Bill has at least gone to Africa and other regions to help them out. What have the Google founders done? reminder: Party plane and special landing rights at NASA Ames field.
hmmm…..
Davos has become through the years the international event business and political people aspire to attend, but the normal citizens too. Everyone goes their with hope for a venture, network on a micro or macro level. The discussions and the speeches are road maps for the rest of the world and a great chance to get the best from the best. Wishing the team or Davos all the success every year knowing that they are welcomed anywhere they go.
“Bill and Melinda have already solved Malaria, HIV, and the other medical problems that beset Africa”
Wow! — In what planet? It must be in a parallel universe… “your” friends, Bill and Melinda keep throwing money at these problems, with very limited progress. You should know that in order to solve these problems, profound political reform must take place in African countries, which is not happening.
After reading this incredible statement, I do not believe anything you write about.
If you *really* are a *professor* I am *really* sorry for your students.
wow i think i found the biggest microsoft fanboy on the planet. it was almost sicken to read .
Hmm…according to them it is “to provide a much higher level of service to all those who seek information, whether they’re at a desk in Boston, driving through Bonn, or strolling in Bangkok.”…
don’t tell me they have been lying to me all this time, please, PLEASE!
http://www.goog.../tenthings.html
It’s interesting to see how consistently negative TechCrunch comments are. I don’t understand why that’s the case. For all the people out there actually doing and writing interesting things keep at it. 90% of the negativity on TC stems from these individuals personal issues and shortfallls.
… and we should all hold hands and get along.
“Roses are red and violets are…”
Nathan, That’s because we actually read the post, then comment on it.
Well, I personally think it’s nice to see it’s just not another post kissing Google’s ass.
Google… do know evil.
I’m totally agree Google and Microsoft are a bipolar worlds on the Wayne’s World hehe.
Yes what do you think Google’s #1 Goal is?
Is it to, “To Be The Internet” or is it “To Beat Microsoft” ?
World domination. Capture and influence eyeballs and they brains behind the eyeballs will think whatever you want them to think
> I now know that a lot of this reaction was
> envy on my part.
The fox and the grapes!
> If he is a jerk he is definitely my kind of jerk.
The king is the man who can
About “Feedback loops”, that is the aim of my blog and the Thinkosphere website:
http://harrysel...-system-example
http://harrysel...or-of-democracy
http://www.thinkosphere.com/
Well Eric it seems you have been seduced by glitz and glitter. The same people who destroyed the American economic system make Davos possible, the same Harvard mafia which committed the biggest heist robbing people, and then got TARP with billions of tax payer money. The very same people who hardly have ever produced anything tangible their entire live but engage in financial engineering make Davos happen.
They might have invited engineers, social workers, head of states, Wahhabists, intellectual or escorts; but that is just scenery like the mountains. Real change happens in the world outside Davos. Davos is just talk, strut, and get your ego stroked by crooks who are running the world aground.
Raj
you seem to be very frustrated.. did u have a bad childhood.
The world is not black and white and neither is Davos or Bill Gates. Eric is an idiot and anyone with common sense and who read the post knows that. HIV cured… great… wonder which of his HIV+ gay lovers told him that….
Anyway Raj, losen up a little and relax… you can breathe easier you’ll find.
Did anyone at TC cover Dr. Yunus’ speech at Davos?
I must admit that as soon as i read “I have been thinking about how to build more perfect human societies out of the visibly and demonstrably imperfect human decision makers we have to rely upon.”… i started to snoooozzzeee
“later, if Arrington will have me back. “.. one word Arrington…. NOOOOOOOOOOOOOOOOOOO
Here are their goals “Targeted Advertising”.
1) They’ll give you a free app gmail so that they can see what you order and what you write about.
2) They’ll give you a free storage place online so that they can see what you write about and how much you make.
Then they’ll turn around and target advertise this stuff to you on their own TV network (YouTube).
@mba you go too far. I took Eric’s class and learned much about how to use technology strategy defensively and offensively. I also put my name next to my opinions, which is more than you do. I’ll grant that Eric prefers stories to bulletpoints — that is just his way, to each their own.
About HIV. It’s not “solved”. The Gates Foundation website says “much work needs to be done”: http://www.gate...s/hiv-aids.aspx. Sames holds for Malaria. http://www.gate...es/malaria.aspx
About Google. They’ve defended user rights from spooks more than many companies. I do not fear my data with them. That said, it’s complex. http://arstechn...006/01/6051.ars
I’d enjoy reading more strategic analysis on MSFT.
It blows my mind how you can defend this idiot and in the same phrase explain to him that HIV has not been solved, same for Malaria.
What has happened in this country that a Wharton Professor can write garbage like that. In every other country they’d fire your ass, how you can defend this idiot is beyond me.
Wouldn’t you at least question his opinions regarding MS and google and facebook if he doesnt even know the basic stuff.. (HIV and MALARIA), COME ON GIVE ME A FUCKING BREAK THAT IS COMMMMMOOON SENSE!!!!
I think the malaria / hiv comment was supposed to be tongue-in-cheek. Sloppy writing and in poor taste, yes, but I can’t believes he really thinks these crises are resolved.