Chatalas Shrugged

During our November 20 class we met in groups to discuss the books which we read, and about which we wrote our second book review. Of the four books offered as options for our reading pleasure, the majority selected Cluetrain Manifesto.

Our Cluetain discussion group identified several important points in the book worth conveying:

• The Internet (and technology) is changing the way we communicate and do business.
• The Internet has led to a flattening of the power hierarchy, which should lead to decentralization. Information is power, and everybody now has access to information.
• The market is a conversation. Businesses must listen to their customers and employees to best succeed in the wired world.
• The approach of the book epitomizes the open-source democratization of the web.

We all had opinions about ideas within the book that intrigued us, including…

• The authors’ optimism about the rapid changes to be created by the Internet
• Consumers desire honesty; we can tell when something is not genuine.
• We don’t like being mere marketing targets.
• The book wasn’t realistic as to how to truly affect change.

Of utmost importance, though, is the group members’ feelings about the historical context of the book and its content.

• The industrial revolution giving way to a networked society
• A revolutionary book using the web and theses to challenge the status quo
• Prophetic in predicting doom for antiquated business models that fail to adapt to technology

Christensen et al attempt to gaze into the future of the telco industry, using the methods put forth in earlier chapters. Taking a look at the various players and technologies is quite interesting. And I don’t doubt for a moment that suppression will rear its head as the companies scramble to maintain market share and delay disruptive innovation. I also don’t doubt that the telcos will remain strong in the face of competition and new technology.

Generally, it would seem that due to the recent patterns of innovation, the best opportunities for growth would be in services offered via IP. Yes, VOIP might not be the best quality at present, but it will be fine-tuned and improve. In the reading, I was struck by the cable companies’ initial decision to go for the primary telephone line market; this only would set up a battle with the established telcos, and would bring challenges in defining differentiation. Of course, the cable companies figured this out pretty quickly, and moved to the IP technology.

When I read about non-users, I sometimes wonder why consumers delay the inevitable. But here I am, a classic member of that category when it comes to the smart phone. I’m well aware of the myriad features that would benefit me, but it just hasn’t been a priority for me. I’m fine with my cell phone and computer… maybe the smart phone overshoots me for now. Either way, I watched fascinatingly today as friends accessed every football box score, checking on player statistics. It seemed a little cumbersome, but the convenience is what will win the day. (As an aside, in an unscientific poll, of the 14 men at this baby shower, every one had at least one fantasy football team.)

Questions

• What benefits do cable companies derive by being in the telephony business?
• What has transpired in the wireless industry since the book was written?
• Which of the technologies discussed in the chapter do you see as having the most growth potential and prospects for longevity?
• What technological innovations do we foresee coming on the scene over the next few years?

One of the thesis points of The Tragedy of the Commons is that “freedom in a commons brings ruin to all.” Essentially, as we derive gain from the common, we inevitably serve our self-interests to the detriment of the common-good. Let’s bring this to the present-day internet. Much of society has access to the internet, and when online there is a wealth of information and uses. But at what stage do the common facets of the internet move to selfishness, negatively impacting the experiences for others? E-mail and spam is an example where profit motive intrudes and often makes our in-boxes an unpleasant destination. And the beauty of so much free content is tarnished to some extent by meddlesome advertising. Politics is rife with instances of the tragedy of commons; corruption becomes king to those who obtain keys to the kingdom. What is created as a commons for our representatives to advocate for constituents falls victim to personal indulgence. Of course, business provides several examples as well: broadcasters/media acting as if they own rather than use the public spectrum; drug manufacturers complaining about onerous regulations that are in place to protect citizens; car manufacturers, oil companies and tobacco put the bottom line above society’s best interests. Of personal interest in the commons article was the mention of national parks; I’ve spent practically every summer in Glacier National Park, and it was easy for me to apply and visualize some of the comments and speculation.

The study “Around the World Wide Web in 80 Ways” attempts to assess uses and gratifications of online activity in the realm of political interest. Since much of my time on the internet is spent related to politics, it was interesting to see the research results, and where my habits fall. It’s pretty obvious that I mostly reside in the group that uses the web for Entertainment and Social Utility in regard to political information. Politics is entertainment for me and I love following its daily fluctuations; and it is a large part of my discussion with others, including providing points for argument.

Questions for Discussion

• What are some political and social ramifications of overbreeding?
• At what stage will the commons of the internet move to overt self-interest, negatively impacting the experiences for others?
• In what ways are you finding gratification in your internet usage?

Flavián, C., and Guinalíu, M. (2005). The influence of virtual communities on distribution strategies in the internet. International Journal of Retail & Distribution Management, 33(6/7), 405-425. ABI/INFORM Global database. (Document ID: 877316031).

techcommunity.ppt

Businesses are accustomed to employing the Internet in their endeavors, and it has been an effective tool for reaching large numbers of consumers. But the use of online communities is proving to be an excellent method for building brand loyalty.

The Influence of Virtual Communities on Distribution Strategies in the Internet, by Flavian and Giunaliu, details this important trend, and provides case studies of five companies that are successfully utilizing virtual communities.

The article gives background of brand communities as part of business strategy. Its primary components include:

• Consciousness of Kind – connecting individuals to a brand, often in comparison to competing products.
• Ritual and Tradition – the transmission of community meaning, relating with history of the brand.
• Sense of Moral Responsibility – Commitment which hels integrate and retain members, ensuring the community’s longevity.

These sound practices are taken exponentially larger via technology and online community. The Internet is known for helping connect people; virtual communities take it farther by creating dedication to a product. The case studies of Guiness, Apple, Manchester United, Amazon and I-Village confirm the rationale of investing in virtual communities. Some of the benefits of these communities include…

• Enhanced relationships and trust
• Sharing of information
• Ease of sale and distribution of products
• Ad revenue

Adamic, L. A. and Glance, N. 2005. The political blogosphere and the 2004 U.S. election: divided they blog. In Proceedings of the 3rd international Workshop on Link Discovery (Chicago, Illinois, August 21 – 25, 2005). LinkKDD ‘05. ACM, New York, NY, 36-43. ISBN:1-59593-215-1.

Adamic and Glance examine the effect that political blogs had on the 2004 US presidential election. The study analyzes some trends of liberal and conservative blogs during the two months prior to the election, mostly focused on the use of linking by the blogs, which demonstrates how the left and right communities attempts to further their agenda. In 2004, 63 million people turned to the internet to get political information, and nine percent of those read political blogs frequently. This paper looked at the linking patterns of the liberal and conservative blogs, including to other blogs, news sources, news stories and newsmaker names.

The political blogosphere is a community, with common interests, objectives and characteristics. The Daily Kos blog epitomizes community, including a consciousness of progressive policies, comparisons to the competition (conservatives), and trust in those who engage as writers and contributors. Political blog communities are entirely similar to brand/virtual communities, using technology to further engage and activate its members.

The results of the study take this biased community-think a bit further. There’s a lack of overlap in the patterns of linking by liberal and conservative blogs – both sides link to those blogs that support their views. It would appear that these groups are only choosing to be exposed to information that agrees with already established viewpoints. While the study shows that conservative sites cross-cite more than liberal blogs, it still tends to be to sites that reinforce their point.

The study continues to support the themes of self-interest within the blog communities. For news, conservatives linked to republican stalwarts like the NY Post, Washington Times and the Wall Street Journal editorial page. Liberals linked regularly to the LA Times, New Republic, and Wall Street Journal’s news pages.

So how did the blog communities affect the 2004 election? It appears the conservative blogs probably had the bigger impact. Howard Dean’s nascent bid was energized by the lefty blogs and their admiration of a campaign that transcended hierarchy and gave power to the people; word of mouth and fundraising via the internet made him the frontrunner before the eventual implosion. On the other side, were the two issues the righties hit upon which likely gave Bush the slight edge… the attacks on Kerry’s military service and the controversy surrounding Dan Rather’s report on GW Bush’s lack of thereof. Those two non-stories overshadowed the larger issues of the campaign.

UPDATE

Reflections on presentation…

It went really well. My main challenge was smoothly articulating similarities between the article about brand/virtual communities to my article about the political blogosphere. However, when I explained it, it seemed to make sense to those visiting my station. The conversations and questions were good. Overall, this was a worthwhile project.

Heffernan’s brief online post sees message boards as online communities. She indicates these big boards are gaining in popularity, and to me they seem like blogs on steroids. I looked quickly at Gaia, and while I can’t relate to its thrust, it reminds me that there are so many wide-varying online communities appealing to so many people. Which leads to consideration of my various communities.

My main online communities are fantasy sports, where we pretend to be owners and managers of sports franchises. Using online tools we make transactions, offer player trades, and engage in good-natured banter with friends. But this is a combination of an online and offline community as my league-mates are friends that I see at least once a year.

And that is indeed the case for most of my communities; we use technology to interact and strengthen an offline community. A softball league I’ve been involved with for years has a website with a message board leading to lots of conversation and teasing. Several of my college friends and I correspond regularly via e-mail. In all these cases, technology has helped a community by building trust and tradition.

Still, when it comes to the communities I regularly engage in, they are pretty much developed on a personal level: A monthly dinner club; our group that has Mariner seats and attends games together; my softball teams and leagues; the groups with which I have political conversations; and my community organization. And we can’t overlook development of the community we’re creating with our classmates in this graduate program. Putnam, in Bowling Alone, decries the trend toward less interaction and it’s detrimental effects on society. I agree wholeheartedly that connections and community are crucial to our personal and societal health.

The closest I have to a purely online community is my devout following of certain blogs. I’m not particularly active beyond occasional comments, but I nonetheless am part of a community with common interests and consciousness. By checking in regularly, I not only get updates on issues, but commentary that usually mirror my ideals.

Questions for Discussion:

• What can online communities do to more effectively engage members?
• What aspects of online community are more appealing than our personal contact within offline communities?
• In what ways are online more or less positive than offline communities?