How Things Work in the Information Economy (2)

Regardless of the flaw behind the current browser technology, the successful strategists evolve by maintaining a large toolbox.   They always stay ahead of the curve by connecting the ideas, the principals and the events in terms of the relativity while working on their contingency options.  Relying on one type of technology tool is not in their playbook. 

In summary,  the successful strategists always implemented the following strategic moves:

• Assessed the Big Tangible Picture; 
• Positioned themselves with good planning and preparation; and   
• Influence their settings by promptly deciding on the right option.   

Assess.  ... Position. ... Influence.  ... API.  ... It is that simple.   The OODA process does not always work in the field especially when the even parity between the two competitors becomes tangible.

Whenever the API process is consistently in a positive motion, the successful strategists will evolve forward.  ... 

Compass Rule 
Evolve. Don't dissolve.

How Things Work in the Information Economy

This past Thursday,  a U.S. government agency  discovered  that an important portion of the pervasive web browser was compromised.  The basic solution was to disconnect the Java component from the browser.  On Sunday, the initial solution was provided by Oracle's Java division.

It is not over yet. The long term solution is still two years away.  Be cautious of your various interactions on the web.

Lesson
Getting off the information grid would be quite challenging  for those who felt that they were being hoodwinked by the techie gods and the pseudo visionaries..

Bugs will constantly occur in technology. They do get fixed.   Those who were affected by it, learn this important lesson- life goes on.   

Perfection is an illusion.  ... Do not be overly depended on technology. This is the red pill of the information economy.  

This post has been updated.  #

Compass Trend # 27: The "Efficient Algorithm" Society

In the "efficient algorithm" economy, almost everyone is being scored and ranked . To get ahead, it helps to know the hidden situational rules of the "information economy" game.

A Compass View of Some Unique Information Economy Rules

Following are a list of pretty good rules for Information Age Innovation

• The blue colored text is from Alidade.net
• The black-colored text are our comments 

The things that surprise you are good indicators of how innovative you are.
Seeing how unrelated things are connected together in an effective way is a better indicator of how insightful that a person is  Being mindfully insightful is the step before innovation.

Amateurs discuss principles and technology, professionals emphasize  process.

In any strategic-driven venture, the amateurs are always talking about the principles of general leadership and the tactical abstract. Talk is their specialty.  (The Cult of the Art of War is famous for that.)

The professionals are centered on utilizing their principles-supported (and rules-based) process models while mastering their logistics. The procedures supported the specific rules.  The specific rules supported the principles.  It is that simple.  

In order to succeed in a chaotic setting, they also built various contingencies strategies to their process model for pursuing opportunities.

"Innovations" that do not improve your process model (or product) more than 3- to 10- fold are mere improvements and not likely worth upsetting the status quo to implement.

A characteristic of Industrial Age processes is that information and decision making are captives of the physical structure.

The successful strategists are usually focused on making decisions that go beyond the physical structure.

Information-rich processes are characterized by and sustained with diversity.

A well-tailored information-rich system that is constantly updated with a diversity of relevant information, will benefits its implementers. 

Successful strategists are constantly assessing the state of their terrain (and beyond) while positioning themselves toward an effective state of influencing.

When diversity is lost, processes typically fail.

All good process models usually possess well-strategized contingency rules. They only fail when people failed to implement the "adjust to evolve" rule.

The criteria of a good process model must be generalized  enough to cover the requirements of the settings. The process model must have the rules that enable the implementers to adjust its scope. 

A brute-force solution wastes money and effort while remaining inferior to more clever solutions.

A solution with a limited scope, usually have negative impact when . Building and implementing a clever solution begins by seeing the big tangible picture of one's grand settings and beyond.

All the information about a system is contained within the system. Extracting the information properly and acting on it, is the most difficult task facing the chief decision makers.

The most trivial type of information in an information-rich process is the location of the physical elements.

The other trivia are people's opinions and gossips.

Prediction and causality have useful meanings in Industrial Age processes but are problematic for information-rich processes.

Sometimes, people make predictions without any sheer evidence. Their claims are worthless. The Dao De Jing declared that those who know how, do not say.

Simultaneously, we are overwhelmed with mountains of "high noise and low signal" information that possessed the value of near-zero.

The keys to prevailing over this situation are:

• Know the approach for collecting the right data; 
• Know the approach for assessing the data strategically; and 
• Know the approach for staying focused while avoiding contentment.

Information Technology has about as much to do with Information Age processes as the internal combustion engine has to do with Industrial Age processes (See Rule #2).
It should be obvious.

The Laws of Physics still hold. Particularly for information.

The physical laws of one's settings (and one's own technology) should always prevail over the scope of any information.

If you want a new idea, read an old book
To discover a new idea, read a classic that well-respected experts have considered as a super text. (Make sure it is a relevant translation.)

During your reading, focus on how things work and how things are connected.  It is that simple. The other alternative is to walk around and be aware of one's own settings.  


Food For Thought
Q: If your competition has a similar toolbox (resources, process, etc.) like yours, what would you do to gain a strategic advantage? 

Side notes: 

When efficiency hits its limitation, innovation becomes the immediate goal. The chief decision makers must now focus on the building of  a special tool that provides a higher performance standard to the users. When a high quality tool can be configured to many unique situations, the user now has a grand advantage against their competition.

Compass Trend #25b: Inefficient Cities Going Chapter 11

Click here for another view on inefficient cities.

Compass Trend #25: Inefficient Cities Going Chapter 11

A few months ago, we posted an item on the possible causes behind the various cities going bankrupt.  ...  Stockton,  Mammoth Lakes, and San Bernardino have recently joined this unique group of  bankrupted cities.


In your view, what are the possibilities that Scranton, Pennsylvania  and a few other U.S. cities will become members of this list soon? 


Positive News
In less than five years, the city of Vallejo has strategically emerged from this state of financial calamity.  ...  

Compass View
Due to certain micro trends and specific data, we have seriously expected that more cities will be following this route quite soon.  ... We and many other sideline strategists have speculated that a European country might go bankrupt quite soon.   ...   Humorously, Germany could only save so many countries.     ... By being the Alpha in Europe, how long will Germany hold its advantage?  


Follow the ideas, the events and the people.  ... You can connect the dots.   


To live effectively in the information economy, one must be strategically efficient in their connection of their intent and their settings to the Big Tangible Picture of the information  economy.  Depending on the level of one's own settings, the political-economical-social factors can be quite relevant to that implementer.

The Importance of Knowing Why.

In the information economy,  the successful strategists always know the causation of a tangible strategic situation.


The Case of the Facebook IPO
Click here.  This is what some people have read.  Now, click here for the back story.   


Comments from the Compass Desk
Most people do not spend anytime, knowing the causes of the situation.  They run on their belief of simplicity by accepting the entire situation as the cause and the outcome. At times, some of them are deceived.


During the assessment process, the successful strategist never take things for granted. They usually viewed their grand situation (Big Tangible Picture [BTP]) in terms of layers. By looking at the patterns of similarity and dissimilarity, they are able to determine the reasoning behind the configuration of the situation. 


Understanding the configuration of The Big Tangible Picture usually enables the successful strategists to know the various available options. It also allows them to identify the benefits, the challenges and the drawbacks for each option.


Summary
Some of the stuff in our algorithmic-based information society are just illusions and mirages.  The only stuff that counts is our own belief of "persisting and persevering over the myriad of obstacles.  ..."

Compass Trend (21): The Information Economy is Mobile

• In 2015, mobile local search volume will surpass desktop search for the first time.
• By 2016 we expect mobile to exceed desktop by 27.8 billion queries.
• U.S. mobile ad revenue predicted to be $7.7 billion by 2016.
• 65% of that revenue ($5.0 billion) will come from local.
• 40% of Google Mobile searches are local.

(Source: BIA/Kelsey, 2012)

Compass Trend (12): More Emphasis on Efficient Competition

How does one thrive in the information economy when the aim of achieving operational efficiency is paramount?

Accept that the practice of efficient competition is the new norm.

Competition is the opposite of competency. ... Embrace the norm.

Thriving in the Info Economy (2)

To thrive in the information economy, the smart strategists cautiously avoid and evade the many visual and audio distractions around our chaotic-filled settings.

To get an alternative view, we recommended our audience to visit Cook Ding Kitchen and Jade Dragon.com.

Compass Trend (10): Employing the Health-Perfect Employees

In order to minimize their costs and maximize their operational efficiency, some of the companies are now demanding the employment of non-smoking employees. From the employers viewpoint, they have to achieve the minimum costs at all levels. We believed that this trend has the potential to become the standard for lower tier employees. Sooner or later, these companies will only employ people who possessed the near-perfect food diet.

The standards of employment are now being raised in our minimum-growth economy. The exception to this "possible" norm is the person who generates a great amount of profit that exceeds the cost by 10 x's.

In summary, staying ahead of the curve means that one must stay focused on the various political, economic, social and technological influences that are appearing in our performance-driven society.

Compass Trend (9): Automation, Self Service and Other Matters

We have been briefing you on the effect of automation in our information economy. Some of you could have noticed that the upswing of automation usually come with the negative effect of low labor growth.

The next target of automation is now being implemented in the police department. Due to the current state of the economy, what is the chance that there will be more foot patrol?

Self Service

As mentioned in a previous post, self service is the other "hot" trend. It is only a matter of time where the majority of the fast food companies and the utility companies will be automating most of their services in the various regions. We believed that most of the "one on one" services will be provided by companies that are catered toward the upper middle tier and the upper tier of the social-economic value chain.

Playing the Cyclical Game

The quantity of the quality competition and the supply of a specific item usually determine the price of the demanded item. This rule is one of the many drivers that have pushed the information economy forward.

To gain the strategic positional edge of their grand setting, one must understand the uniqueness of those demand cycles and the dynamic pricing (variable ticket pricing) of their business situation.

Questions to Think about

Have automation, self service and low-wage labor affected your region? Can you see how it might affect you and your company now and later?

Do you have a tangible process that enables you to organizes and prioritizes your objectives and approaches, by connecting it to the Big Tangible Picture(BTP). If so, has it helped you set the pace of your workflow?

Are you utilizing your process to stay ahead of the curve?

To stay ahead of changes and your competition, you have to spend some time reflecting on the causes and the after-effect of your actions.

Ask yourself these three questions:

• Did today's activities assisted you in terms of meeting your long-term objectives?
• Are you ahead or behind the curve?
• Are you still on that path of achieving strategic effectiveness?

Then, use the answers as a foundation for reviewing one's strategic position.

We will discussed more about this matter in a later post.

Compass Trend (8): The Automated Trend Continues

As mentioned in previous posts, low-level human labor in the U.S. is on a decline. There is a moderately-high supply of human labor and a slow low market demand for that niche.

Automation is slowly lurking forward toward the many areas of business, esp in the restaurant business.

Do not be surprised to see that there are more vending machines that are being utilized at certain social economic niches within our information society. Self-help service is the current trend.

In summary, manual labor has become minimized especially when automation is being used. Anytime, outsourced industrial jobs are coming to the U.S . It means that the company has figured out how to automate it.

Notes from the Compass Desk
Our suggestion to those who have high aspirations and want to stay ahead of the curve. Be the top 10% who are innovative and inventive. Create the unique value proposition for those who have the ambition and the capital. Do not be expendable.

Notes from the Compass Desk

When the criteria of the grand situation is near-symmetrical, transitive and reflexive, the successful strategists are focused on comprehending the configuration of the Big Tangible Picture and identifying the exceptional point.

It is quite simple when one knows what to look for and have the process to do it.

/// Updated on 01/19/12

Competing in the Info Economy: Understanding the Seasonal Cycle

To properly compete in the information economy, one should always consider the cyclical stage of the targeted terrain as a decision point.

Assess the Big Tangible Picture of your competitive terrain.

Position yourself toward the opportunity before the market cycle rises

Influence the opportunity before the cycle declines and the configuration of the terrain changes.

Q: Do you know how to assess your competitive terrain?

Crisis and Opportunity

Source: Chinese Calligraphy Store.com

"... Every crisis carries two elements, danger and opportunity. No matter the difficulty of the circumstances, no matter how dangerous the situation...at the heart of each crisis lies a tremendous opportunity. Great blessings lie ahead for the one who knows the secret of finding the opportunity within each crisis. ... " -Chinese Proverb

Mozilla is one of those companies who thrives on the web user's need for a better browser. As a pony with a few tricks, they can only go so far.

Presently, Mozilla is too depended on one sponsor and have not created a relevant and on-going profit-generation niche.

Mozilla's Strategic Position

Following is a listing of Mozilla's current (and possible) dilemmas:

• Losing Google as a sponsor has now become a possibility;
• Losing their position to Google's Chrome;
• Losing chief talent to Facebook;
• Losing their reputation of being a secured browser; and
• Mistreating their enterprise customers by mismanaging their product releases.

How can Mozilla improve their situation especially when they are caught between a rock (the partnership with Google) and a hard place (the decline of Firefox users)?

By recognizing the significance of the CarrierIQ fiasco, Mozilla should focus on the paramount need for browser's safety and security. ... They are now centering their attention on the mobile phone industry.

Solution

Mozilla should disregard their current position and focus on developing quality features.

#

Our Compass Forecast

In the information economy, transparency and safety are never guaranteed. The company who maintains the social-economic attention of those who desired attention and digital security, will always have a market.

Regardless how technology evolves, the offering of quality products and/or quality services is essential. Focusing on the basic users needs is paramount to one's success.

Developing digital security for all significant high-tech. devices is an unique niche that usually goes on a infinite mode. The evolutionary contest between the "black hat" hackers and the computer security developers (aka. the gatekeepers) is continuous. The gate keepers are focused on building a better wall. Occasionally, they might upgrade it by adding a few unique counter-offensive measures. ... Where the other side concentrates on the identification of the various weak points within the wall. Sometimes, the hackers win. For the time being, the developers are winning while the users are just surviving.

History shows that the most sophisticated defense are for those who can afford to have it regardless of the medium.

Side note

One exception to this scenario is the Blackberry phone . This device has great security features for those who can afford it. ... It seems that President Obama used to be a big user of this phone. ... Marketwise, it also does not appeal to the consumers for a myriad of reasons. ... Do not be surprised if a relevant party will buy RIM within the next 12 -18 months.

Rimunatons from the Compass Desk 

In unsettling times, the successful strategists usually look past their own marketplace and focus on the various niches within the global digital marketing terrain, where one has a strong expertise and the competition is quite weak. Whatever specific area that they are weak at, the company will recruit the best.

When one becomes successful, he/she should be aware of the increased probability of newer competitors sprinting into their niche.

When assessing one's own competitive position in their specific market terrain, the chief decision makers must consider the connectivity of the following points: the configuration of their marketplace and beyond, the state of their organizational leadership, the logistics of building and maintaining their operation, the state of resources, the technology and the strategic gameplan.

By connecting the dots before the competition does, one can position themselves into a superior state of strategic effectiveness.

The question is, are you in that position (of strategic effectiveness) yet?

The Big Tangible Picture: The State of the Information Economy

In the old days, the large companies played the strategic positioning card of sitting on the hands and waited to acquire their young competitors with their mountains of cash reserves. They were usually focused on milking their cash cows while strengthening their market position through political-economic-social connections.

In summary, some of these larger companies became fatter and complacent by centering their attention on efficiency and quality. When the timing is right, they acquired their innovative competitors with an optimal-exploitative approach.

In the era of the information economy, some of the younger companies are "aggressively" innovating. Some of these CEO's do not even cared about being absorbed by larger companies. They wanted to build something that would last a great deal of time.

These fat dinosaurs will disappear at some point of time. No dynasty lasts forever.

Happy Thanksgiving.

Connecting the Dots and Reaping the Rewards

To understand the state of the information economy, the first step is to know how everything connects.

Technology Evolves First

It has been said that necessity is the mother of all inventions. Assumption is the father of screwups. Whether there are useless wants or significant needs, devoted (and economically-driven), the users adjusted to the new changes. Most features are rarely used.

Compass Rule: When the impact of the current technology meets the sociological and economical wants of the clients, the social-political value of the technology increases.

Click here and here for two good examples that verified the above Compass rule.

Afterthought

To stay ahead of the curve, one should not get locked into the convenience of the technology. ... Be aware of the various vendors who needs your loyalty by quietly pushing their lock-in strategy onto you.

Technology is the Opium of the Masses

Heavens know that each one of us loved our technology. Remember that it is just a tool, not the end of all means. Tools come and go. Some evolve. Most become obsolete.

Using the Chinese strategic principles as a foundation remains the constant for some people. Transforming it to something pertinent is the goal of most serious strategists. The amateurs talk about it like if it is magic. The professionals who know, don't say.

The State of the Information Economy

In the information economy, the implementation of deception is paramount.

Regardless of the times, many businesses indirectly has a myriad of Chinese strategic principles as their strategic foundation. Implementing it covertly is the key to some level of success. Most of the masses are so overwhelmed with their situation that they cannot see the various subtle influences around them. In summary, the deception would be somehow revealed. These implementers would then disappeared and wait for the next opportunity.

It all begins by knowing the Big Tangible Picture (BTP). The first step is knowing how everything connects in one's world.

So what are the rewards for knowing the BTP, he/she can anticipate "the next big change" in their competitive arena. At that moment, Then the chief decision makers are able to comprehend whether the act of profit maximization and/or cost minimization is possible.

Maneuvering in the "Informational" Influence Society

Living in an information economy means that some of us are being overwhelmed with many pressures and many influences.

Here are two ways for staying focused on one's objectives:

Using the Principles of Relax, Center, Ground, Calm and Whole

By focusing on the constant practice of those five principles, one becomes focused.

Use a prioritized script of objectives and approaches as your compass

Script your list of objectives/approaches on a sheet of paper instead of using a ipad or a pda. ... Who knows? You might develop "a mind to matter" connection with your objectives.

Seriously, if you want to visually connect the dots, we recommended software tools like Mindjet or Visio.

Good luck!

Update: You can find more information on various principles at this site.

Thriving in the Info Economy (1)

It is difficult to thrive in our information economy when we are constantly interrupted and overloaded with tons of unnecessary information. Some of our associates have already stopped viewing TV news and only surfed the web. ... Regardless of the cost of accessing data, how does one filters out the irrelevant data and gets to the facts?

Becoming Effective in a Complex World

Strategically, we all want to be effective. Being effective means that we can maximize our profits while minimizing our operating costs concurrently. It also enables us to (almost) to almost always be ahead of the competition and the market curve. The challenge is having the strategic process and the execution prowess to be effective, 24 hrs a day, 7 days a week.

Within the confines of our information economy, the world has become more fluid and quite dynamic. One point changes another and so forth. Suddenly, a major event alters the objectives and the approach of many at another point of our globe.

For example, a major political and/or economic occurrence that started from the shores of Asia now prevents a prompt delivery of a major item for a small company located in Washington state. Not only does it alters the economic state of their current and future objectives, the revenue base could be affected for many months.

Should this company have anticipated it? If so, do they have the leadership and the resources to counter the change? Is it better to respond or to react to it? ... It depends greatly on their strategic and situational experience.

You can comprehend the big picture from a top down view by doing the following:

• Recognize the current state of the terrain and the competitors within it;
• Examine the operational direction of the terrain;
• Analyze the reliability of the data; and
• Determine the strategic positioning of the terrain.

Identifying the ebb and flow and the causation of the big picture is also significant. It enables one to know where he/she stand within it.

There are more detailed steps to the Compass process. (We will touch on those steps later.)

Summary

If one can assess the strategic scope of your marketplace and the contending competitors within it, he/she would know the illusions and the reality within the terrain. By knowing the correct categories of market intelligence (the economic numbers, the logistic numbers, etc.) and assuring the veracity of the data, one can predict their strategic actions and their contingencies. The probability and the possibility of their strategic positioning becoming an advantage increases.

We will focus on this matter in a later post and in our future book.