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Why Success Often Sows the Seeds of Failure - WSJ
Why Success Often Sows the Seeds of Failure - WSJ
Once a company becomes an industry leader, its employees, from top to bottom, start thinking defensively. Suddenly, people feel they have more to lose from challenging the status quo than upending it. As a result, one-time revolutionaries turn into reactionaries. Proof of this about-face comes when senior executives troop off to Washington or Brussels to lobby against changes that would make life easier for the new up and comers.
Years of continuous improvement produce an ultra-efficient business system—one that’s highly optimized, and also highly inflexible. Successful businesses are usually good at doing one thing, and one thing only. Over-specialization kills adaptability—but this is a tough to trap to avoid, since the defenders of the status quo will always argue that eking out another increment of efficiency is a safer bet than striking out in a new direction.
Long-tenured executives develop a deep base of industry experience and find it hard to question cherished beliefs. In successful companies, managers usually have a fine-grained view of “how the industry works,” and tend to discount data that would challenge their assumptions. Over time, mental models become hard-wired—a fact that makes industry stalwarts vulnerable to new rules. This risk is magnified when senior executives dominate internal conversations about future strategy and direction.
With success comes bulk—more employees, more cash and more market power. Trouble is, a resource advantage tends to make executives intellectually lazy—they start believing that success comes from outspending one’s rivals rather than from outthinking them. In practice, superior resources seldom defeat a superior strategy. So when resources start substituting for creativity, it’s time to short the shares.
One quick suggestion: Treat every belief you have about your business as nothing more than a hypothesis, forever open to disconfirmation. Being paranoid is good, becoming skeptical about your own beliefs is better.
·archive.is·
Why Success Often Sows the Seeds of Failure - WSJ
Panic Among the Streamers
Panic Among the Streamers
Netflix could buy 10 top quality screenplays per year with the cash they’ll spend on that one job.  They must have big plans for AI.There are also a half dozen AI job openings at Disney. And the tech-based streamers (Apple, Amazon) already have made big investments in AI. Sony launched an AI business unit in April 2020—in order to “enhance human imagination and creativity, particularly in the realm of entertainment.”
When Spotify launched on the stock exchange in 2018, it was losing around $30 million per month. Now it’s much larger, and is losing money at the pace of more than $100 million per month.
But the real problem at Spotify isn’t just convincing people to pay more. It runs much deeper. Spotify finds itself in the awkward position of asking people to pay more for a lousy interface that degrades the entire user experience.
Boredom is built into the platform, because they lose money if you get too excited about music—you’re like the person at the all-you-can-eat buffet who goes back for a third helping. They make the most money from indifferent, lukewarm fans, and they created their interface with them in mind. In other words, Spotify’s highest aspiration is to be the Applebee’s of music.
They need to prepare for a possible royalty war against record labels and musicians—yes, that could actually happen—and they do that by creating a zombie world of brain dead listeners who don’t even know what artist they’re hearing. I know that sounds extreme, but spend some time on the platform and draw your own conclusions.
·honest-broker.com·
Panic Among the Streamers
Interview with Kevin Kelly,editor, author, and futurist
Interview with Kevin Kelly,editor, author, and futurist
To write about something hard to explain, write a detailed letter to a friend about why it is so hard to explain, and then remove the initial “Dear Friend” part and you’ll have a great first draft.
To be interesting just tell your story with uncommon honesty.
Most articles and stories are improved significantly if you delete the first page of the manuscript draft. Immediately start with the action.
Each technology can not stand alone. It takes a saw to make a hammer and it takes a hammer to make a saw. And it takes both tools to make a computer, and in today’s factory it takes a computer to make saws and hammers. This co-dependency creates an ecosystem of highly interdependent technologies that support each other
On the other hand, I see this technium as an extension of the same self-organizing system responsible for the evolution of life on this planet. The technium is evolution accelerated. A lot of the same dynamics that propel evolution are also at work in the technium
Our technologies are ultimately not contrary to life, but are in fact an extension of life, enabling it to develop yet more options and possibilities at a faster rate. Increasing options and possibilities is also known as progress, so in the end, what the technium brings us humans is progress.
Libraries, journals, communication networks, and the accumulation of other technologies help create the next idea, beyond the efforts of a single individual
We also see near-identical parallel inventions of tricky contraptions like slingshots and blowguns. However, because it was so ancient, we don’t have a lot of data for this behavior. What we would really like is to have a N=100 study of hundreds of other technological civilizations in our galaxy. From that analysis we’d be able to measure, outline, and predict the development of technologies. That is a key reason to seek extraterrestrial life.
When information is processed in a computer, it is being ceaselessly replicated and re-copied while it computes. Information wants to be copied. Therefore, when certain people get upset about the ubiquitous copying happening in the technium, their misguided impulse is to stop the copies. They want to stamp out rampant copying in the name of "copy protection,” whether it be music, science journals, or art for AI training. But the emergent behavior of the technium is to copy promiscuously. To ban, outlaw, or impede the superconductivity of copies is to work against the grain of the system.
the worry of some environmentalists is that technology can only contribute more to the problem and none to the solution. They believe that tech is incapable of being green because it is the source of relentless consumerism at the expense of diminishing nature, and that our technological civilization requires endless growth to keep the system going. I disagree.
Over time evolution arranges the same number of atoms in more complex patterns to yield more complex organisms, for instance producing an agile lemur the same size and weight as a jelly fish. We seek the same shift in the technium. Standard economic growth aims to get consumers to drink more wine. Type 2 growth aims to get them to not drink more wine, but better wine.
[[An optimistic view of capitalism]]
to measure (and thus increase) productivity we count up the number of refrigerators manufactured and sold each year. More is generally better. But this counting tends to overlook the fact that refrigerators have gotten better over time. In addition to making cold, they now dispense ice cubes, or self-defrost, and use less energy. And they may cost less in real dollars. This betterment is truly real value, but is not accounted for in the “more” column
it is imperative that we figure out how to shift more of our type 1 growth to type 2 growth, because we won’t be able to keep expanding the usual “more.”  We will have to perfect a system that can keep improving and getting better with fewer customers each year, smaller markets and audiences, and fewer workers. That is a huge shift from the past few centuries where every year there has been more of everything.
“degrowthers” are correct in that there are limits to bulk growth — and running out of humans may be one of them. But they don’t seem to understand that evolutionary growth, which includes the expansion of intangibles such as freedom, wisdom, and complexity, doesn’t have similar limits. We can always figure out a way to improve things, even without using more stuff — especially without using more stuff!
the technium is not inherently contrary to nature; it is inherently derived from evolution and thus inherently capable of being compatible with nature. We can choose to create versions of the technium that are aligned with the natural world.
Social media can transmit false information at great range at great speed. But compared to what? Social media's influence on elections from transmitting false information was far less than the influence of the existing medias of cable news and talk radio, where false information was rampant. Did anyone seriously suggest we should regulate what cable news hosts or call in radio listeners could say? Bullying middle schoolers on social media? Compared to what? Does it even register when compared to the bullying done in school hallways? Radicalization on YouTube? Compared to talk radio? To googling?
Kids are inherently obsessive about new things, and can become deeply infatuated with stuff that they outgrow and abandon a few years later. So the fact they may be infatuated with social media right now should not in itself be alarming. Yes, we should indeed understand how it affects children and how to enhance its benefits, but it is dangerous to construct national policies for a technology based on the behavior of children using it.
Since it is the same technology, inspecting how it is used in other parts of the world would help us isolate what is being caused by the technology and what is being caused by the peculiar culture of the US.
You don’t notice what difference you make because of the platform's humongous billions-scale. In aggregate your choices make a difference which direction it — or any technology — goes. People prefer to watch things on demand, so little by little, we have steered the technology to let us binge watch. Streaming happened without much regulation or even enthusiasm of the media companies. Street usage is the fastest and most direct way to steer tech.
Vibrators instead of the cacophony of ringing bells on cell phones is one example of a marketplace technological solution
The long-term effects of AI will affect our society to a greater degree than electricity and fire, but its full effects will take centuries to play out. That means that we’ll be arguing, discussing, and wrangling with the changes brought about by AI for the next 10 decades. Because AI operates so close to our own inner self and identity, we are headed into a century-long identity crisis.
What we tend to call AI, will not be considered AI years from now
What we are discovering is that many of the cognitive tasks we have been doing as humans are dumber than they seem. Playing chess was more mechanical than we thought. Playing the game Go is more mechanical than we thought. Painting a picture and being creative was more mechanical than we thought. And even writing a paragraph with words turns out to be more mechanical than we thought
out of the perhaps dozen of cognitive modes operating in our minds, we have managed to synthesize two of them: perception and pattern matching. Everything we’ve seen so far in AI is because we can produce those two modes. We have not made any real progress in synthesizing symbolic logic and deductive reasoning and other modes of thinking
we are slowly realizing we still have NO IDEA how our own intelligences really work, or even what intelligence is. A major byproduct of AI is that it will tell us more about our minds than centuries of psychology and neuroscience have
There is no monolithic AI. Instead there will be thousands of species of AIs, each engineered to optimize different ways of thinking, doing different jobs
Now from the get-go we assume there will be significant costs and harms of anything new, which was not the norm in my parent's generation
The astronomical volume of money and greed flowing through this frontier overwhelmed and disguised whatever value it may have had
The sweet elegance of blockchain enables decentralization, which is a perpetually powerful force. This tech just has to be matched up to the tasks — currently not visible — where it is worth paying the huge cost that decentralization entails. That is a big ask, but taking the long-view, this moment may not be a failure
My generic career advice for young people is that if at all possible, you should aim to work on something that no one has a word for. Spend your energies where we don’t have a name for what you are doing, where it takes a while to explain to your mother what it is you do. When you are ahead of language, that means you are in a spot where it is more likely you are working on things that only you can do. It also means you won’t have much competition.
Your 20s are the perfect time to do a few things that are unusual, weird, bold, risky, unexplainable, crazy, unprofitable, and looks nothing like “success.” The less this time looks like success, the better it will be as a foundation
·noahpinion.substack.com·
Interview with Kevin Kelly,editor, author, and futurist