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  • feedwordpress 06:31:00 on 2018/12/06 Permalink
    Tags: , , , , technlogy   

    So I’m Going to China Saturday. That Just Got Interesting. 

    So yes, I am planning on going to China on Saturday. My first time, I’m a bit embarrassed to say. It’s not for a lack of opportunities, but rather a conviction that when I did go, I’d make a study of it, staying for at least two weeks, if not more.

    But I’ve realized lately that in the past three decades of my career-related travel, I’ve never gone anywhere for more than one week. I admit, I’ve boxed China out, because I assigned it such import, such gravitas, that I needed to justify the 15-hour flight (and its attendant biome and geospatial shock) with a commitment of time I was never able to make.

    So this year, I said fuggit. I’ll go when I can go, and for however long I can go. Dip a toe, go longer later. That’s my new approach. China has been looming at the edges of my self-imposed myopia for too long; plus my kids all speak Mandarin and have traveled there frequently. WTF is wrong with me?

    So six or so months ago I received, and subsequently accepted, an invitation from a partner of mine, Club de Madrid, to participate in a conference in Guangzhou. The topic could not be more newsworthy: “Advancing Reform and Opening Up: Promoting Win Win Cooperation.” I mean….Win Win? China and the US?! Right?

    The plan was to come in a day before, so as to get my jet-lagged shit together, and to leave the day after, so as to be truly in true gonzo form by the time I hit my daughter’s Intermezzo concert back in New York on Weds.

    But then…this. The arrest of the CFO of a major Chinese technology company is jaw dropping, both objectively, given what’s going on geopolitically, as well as from my limited and admittedly self-centric point of view. A senior executive of one of the most powerful and important companies in the Chinese data economy – who happens also to be the daughter of the company’s founder– detained in Canada at the behest of the United States. Yeah, I kind of don’t care what the arrest was for (Iranian sanctions, FWIW). This is …A. Big. Fucking. Deal.

    Let’s put this another and arguably more cynical way. The Trump administration is playing high stakes poker with China so as to divert attention from its domestic dumpster fires (um, Mueller, for those not playing along at home), and it’s using  the Chinese technology industry as a convenient and utterly defensible foil.

    Because let’s be honest. It’s beyond believable that a company like Huawei might be in the thrall of the Chinese government. If you think that’s not a defensible statement, well, please leave your comments below, because I’ve no heard anyone I respect who studies China say otherwise.

    So the stage is set.

    And, by the way, why did Canada do Trump’s dirty work? That’s certainly outside the scope of my ramblings, but well worth investigation. Suffice to say, a scion of global capitalism is now in jail for geopolitical crimes, a first in the modern history of the western hemisphere, as far as I can tell. That she’s Chinese, and in Canada? Icing, folks, icing.

    So this move could have been played at any time, but it’s simply perfect that it’s been rolled out now, just as the China trade tariff war has come to a boil, just as the stock markets, so beloved as a symbol of our president’s success, have been tanked by the uncertainty of the global deal between Chinese totalitarian capitalism and…well what now do we properly call the US version (Facebook capitalism? Nah. Google? Um, no. Amazon? Let’s try again….And Apple? Well, that’s complicated…Let’s just say coal capitalism, shall we! Yes, that’s it, coal!)

    All of this is worth many more ponderings, and much more thinking out loud. Regardless, one thing I’m certain of: There won’t be a single senior US technology executive going to China for the next week or two, if not longer. And I’m sure simply publishing this piece will lower my odds of boarding a flight this weekend, but I must ask, out loud: Given the facts of today, would you travel to China on Saturday?

    Asking for a friend.

     

     
  • feedwordpress 14:17:45 on 2018/11/27 Permalink
    Tags: , , , , , , mark zuckerberg, , , , , ,   

    Zuckerberg In A Bunker 

    Mark Zuckerberg is in a crisis of leadership. Will he grasp its opportunity?

    Happier times.

    It seems like an eternity, but about one year ago this Fall, Uber had kicked its iconic founding CEO to the curb, and he responded by attempting a board room coup. Meanwhile, Facebook was at least a year into crisis mode, clumsily dealing with a spreading contagion that culminated in a Yom Kippur apology from CEO Mark Zuckerberg. “For those I hurt this year, I ask forgiveness and I will try to be better,” he posted. “For the ways my work was used to divide people rather than bring us together, I ask for forgiveness and I will work to do better.”

    More than one year after that work reputedly began, what lesson from Facebook’s still rolling catastrophe? I think it’s pretty clear: Mark Zuckerberg needs to do a lot more than publish blog posts someone else has written for him.

    And while I’m not much of a fan of the company he’s built, I think Facebook’s CEO can change. But only if he’s willing to truly lead, and take the kind of action that today may seem insane, but ten years from now, just might look like genius. What actions might those be? Well, let’s review.

    Admit you have a problem. Yes, over and over and over, Facebook executives have copped a plea. But they’ve never acknowledged the real problem is the company’s core DNA. More often than not, the company plays the pre-teen game of admitting a small sin so as to cover a larger one. The latest case in point is this post-modern gem: Elliot Schrage On Definers. The headline alone says all you need to know about Facebook’s latest disaster: Blame the guy who hired the firm, have him fall on a sword, add a bit of Sandbergian mea culpa, and move along. Nope, this time is different, Facebook. It’s time for fundamental change. And that means….

    Submit to real governance. Like Google, Uber, Snap, and other controversial tech companies, Facebook implemented a two-class system of shares which canonizes their founder as an untouchable god, rendering the company board toothless in moments of true crisis (and in appeasement mode the rest of the time). Following Uber’s lead, it’s time for Mark to submit to the governance of the capital markets and abandon his super majority voting powers. He must stand before his board naked and afraid for his job. This and this alone will predicate the kind of change Facebook needs.

    Bring in outsiders. Facebook’s core problem is expressed through its insular nature. This is also the technology industry’s problem – an engineer’s determination that every obstacle can be hacked to submission, and that non-engineers are mainly good for paint and powder afterward. This is simply not the case anymore, either at Facebook or in tech more broadly. Zuckerberg must demand his board commission a highly qualified panel to review his company’s management and product decisions, and he must commit to implementing that panel’s recommendations. Along those lines, here are a two major thought starters:

    Embrace radical change. Remember “Bringing People Closer Together” and the wildly misappropriatedTime Well Spent“? This was supposedly a major new product initiative to change Facebook’s core mission, designed to shift our attention from what was wrong with the platform – data breaches, the newsfeed, false news and election meddling – to what could be right about it: Community pages and human connection. Has it worked? Let’s just be honest: No. Community doesn’t happen because a technology company writes a blog post or emphasizes a product suite it built for an entirely different purpose. Facebook can’t be fixed unless it changes its core business model. So just do it, already. Which leads to:

    Free the data. Facebook has so far failed to enable a truly open society, despite its embrace of lofty mission statements. I’ve written about this at length, so I’ll just summarize: Embrace machine-readable data portability, and build a true, Gates-line compliant platform that is governed by the people, companies, and participants who benefit from it. Yes, actually governing  is a messy pain in the ass, but failing to govern? That’s a company killer.

    Many brilliant observers are calling for Mark’s head, and/or for the company to be broken up. I’m not sure either of these solutions will do much more than insure that the company fails. What tech needs now is proof that it can lead with bold, high-minded vision that gives back more than it takes. Mark Zuckerberg has the power to do just that. The only question now is whether he will use it.

     
  • feedwordpress 23:02:06 on 2018/11/12 Permalink
    Tags: , , , , , ideas, , , ,   

    When Tech Loves Its Fiercest Critics, Buyer Beware 

    Detail from the cover of Harari’s lastest work, 21 Lessons for the 21st Century.

    A year and a half ago I reviewed Yuval Noah Harari’s Homo Deus, recommending it to the entire industry with this subhead: “No one in tech is talking about Homo Deus. We most certainly should be.”

    Eighteen months later, Harari is finally having his technology industry moment. The author of a trio of increasingly disturbing books – Sapiens, for which made his name as a popular historian philosopher, the aforementioned Homo Deus, which introduced a dark strain of tech futurism to his work, and the recent 21 Lessons for the 21st Century – Harari has cemented his place in the Valley as tech’s favorite self-flagellant. So it’s only fitting that this weekend Harari was the subject of New York Times profile featuring this provocative title: Tech C.E.O.s Are in Love With Their Principal Doomsayer. The subhead continues: “The futurist philosopher Yuval Noah Harari thinks Silicon Valley is an engine of dystopian ruin. So why do the digital elite adore him so?”

    Well, I’m not sure if I qualify as one of those elites, but I have a theory, one that wasn’t quite raised in the Times’ otherwise compelling profile. I’ve been a student of Harari’s work, and if there’s one clear message, it’s this: We’re running headlong into a world controlled by a tiny elite of superhumans, masters of new technologies that the “useless class” will never understand. “Homo sapiens is an obsolete algorithm,” Harari writes in Homo Deus. A new religion of Dataism will transcend our current obsession with ourselves, and we will “dissolve within the data torrent like a clump of earth within a gushing river.” In other words, we humans are f*cked, save for a few of the lucky ones who manage to transcend their fate and become masters of the machines. “Silicon Valley is creating a tiny ruling class,” the Times writes, paraphrasing Harari’s work, “and a teeming, furious “useless class.””

    So here’s why I think the Valley loves Harari: We all believe we’ll be members of that tiny ruling class. It’s an indefensible, mathematically impossible belief, but as Harari reminds us in 21 Lessons, “never underestimate human stupidity.” Put another way, we are  fooling ourselves, content to imagine we’ll somehow all earn a ticket into (or onto) whatever apocalypse-dodging exit plan Musk, Page or Bezos might dream up (they’re all obsessed with leaving the planet, after all). Believing that impossible fiction is certainly a lot easier than doing the quotidian work of actually fixing the problems which lay before us. Better to be one of the winners than to risk losing along with the rest of the useless class, no?

    But we can’t all be winners in the future Harari lays out, and he seems to understand this fact. “If you make people start thinking far more deeply and seriously about these issues,” he said to the Times, “some of the things they will think about might not be what you want them to think about.”

    Exactly, Professor. Now that I’ve departed the Valley, where I spent nearly three decades of my life, I’m starting to gain a bit of perspective on my own complicated relationship with the power structure of the place. I grew up with the (mostly) men who lead companies like Amazon, Google, Facebook and Apple, and early in the industry’s rise, it was heady to share the same stage with legends like Bezos, Jobs, or Page. But as the technology industry becomes the driving force of social rupture, I’m far more skeptical of its leaders’ abilities to, well, lead.

    Witness this nearly idea-free interview with Google CEO Sundar Pichai, also in the Times, where the meticulously media-prepped executive opines on whether his industry has a role to play in society’s ills: “Every generation is worried about the new technology, and feels like this time it’s different. Our parents worried about Elvis Presley’s influence on kids. So, I’m always asking the question, “Why would it be any different this time?” Having said that, I do realize the change that’s happening now is much faster than ever before. My son still doesn’t have a phone.”

    Pichai’s son not have a phone, but he is earning money mining Ethereum (really, you can’t make this shit up). I’m not sure the son of a centi-millionaire needs to earn money – but it certainly is useful to master the algorithms that will soon control nearly every aspect of human life. So – no, son, no addictive phone for you (even though my company makes them, and makes their operating systems, and makes the apps which ensure their addictive qualities).

    But mining crypto currency? Absolutely!

    Should Harari be proven right and humanity becomes irrelevant, I’m pretty sure Pichai’s son will have a first class ticket out of whatever mess is left behind. But the rest of us? We should probably focus on making sure that kid never needs to use it.

    Cross posted from NewCo Shift. 


    By the way, the other current obsession of Valley folks is author Anand Giridharadas’ Winners Take All – The Elite Charade of Changing the World. Read them together for a one-two punch, if you dare…

     
  • feedwordpress 17:36:20 on 2018/11/05 Permalink
    Tags: , , , , ,   

    Lazy Ad Buying Is Killing The Open Web. 

    But…I just *bought* a robe. I don’t want another one.

    If you’re read my rants for long enough, you know I’m fond of programmatic advertising. I’ve called it the most important artifact in human history, replacing  the Macintosh as the most significant tool ever created.

    So yes, I think programmatic advertising is a big deal. As I wrote in the aforementioned post:

    “I believe the very same technologies we’ve built to serve real time, data-driven advertising will soon be re-purposed across nearly every segment of our society. Programmatic adtech is the heir to the database of intentions – it’s that database turned real time and distributed far outside of search. And that’s a very, very big deal. (I just wish I had a cooler name for it than “adtech.”)” 

    But lately, I’m starting to wonder if perhaps adtech is failing, not for any technical reason, but because the people leveraging are complicit in what might best be called a massive failure of imagination.

    I’m about to go on a rant here, so please forgive me in advance.

    But honestly, who else out there is sick of being followed by ads so stupid a fourth grader could do a better job of targeting them?

    Case in point is the ad above. I took this screen shot from my phone this past weekend while I was reading a New York Times article. The image – of a robe Amazon wanted me to buy – was instantly annoying, because I had in fact purchased a robe on Amazon several days before. Why on earth was Amazon retargeting me for a product I just bought?!

    But wait, it gets worse! As I perused the next Times article, this ad shows up:

    That would have made sense *after I bought a robe, but…” I bought slippers two weeks ago. So WTF?

    You might think this ad makes more sense. If the dude buys a robe, makes sense to try to sell him a new pair of slippers, no? Well, sure, but only if that same dude didn’t buy a new pair of slippers two weeks ago. Which, in fact, I did just do.

    So, yeah, this ad sucks as well. Not only is it not useful or relevant, it’s downright annoying. The vast machinery of adtech has correctly identified me as a robe-and-slippers-buying customer. But it’s failed to realize *I’ve already bought the damn things.*

    Is it possible that adtech is this stupid? This poorly instrumented? I mean, are programmatic buyers simply tagging visitors who land on ecommerce pages (male robe intender?) without caring about whether those visitors actually bought anything?

    Are the human beings responsible for setting the dials of programmatic just this lazy?

    Yes.

    I’ve been a critical observer of adtech over the past ten or so years, and one consistent takeaway is this: If there’s a way for a buyer to cut corners, declare an easy win, and keep doing things they way the’ve always been done, well, they most certainly will.

    But why does it have to be this way? Digging into the examples above yields an extremely frustrating set of facts. Consider the data the adtech infrastructure either got *right* about me as a customer, or could have gotten right:

    • I am a frequent ecommerce customer, usually buying on Amazon
    • I recently purchased both a robe and some slippers
    • I am reading on the New York Times site as a logged on (IE data rich) customer of the Times‘ offerings

    These are just the obvious data points. My mobile ID and cookies, all of which are available to programmatic buyers, certainly indicate a high household income, a propensity to click on certain kinds of ads, a rich web browsing history reflecting a thickly veined lodestar of interest data, among countless other possible inputs.

    Imagine if a programmatic campaign actually paid attention to all this rich data? Start with the fact I just purchased a robe and slippers. What are products related to those two that Amazon might show me? Well, according to its own “people who bought this item also bought” algorithms, folks who bought men’s robes also bought robes for the women in their life. Now there’s a cool recommendation! I might have clicked on an ad that showed a cool robe for my wife. But no, I’m shown an ad for a product I already have.

    Why?

    I’ve got a few calls in to verify my hunch, but I suspect the ugly truth is pure laziness on the part of the folks responsible for buying ads. Consider: The average cost for a thousand views (CPM) of a targeted programmatic advertisement hovers between ten cents (yes, ten pennies) to $2.  With costs that low, the advertising community can afford to waste ad inventory.

    Let’s apply that reality to our robe example. Let’s say the robe costs $60, and yields a $20 profit for our e-commerce advertiser, not including marketing costs. That means that same advertiser is can spend upwards of $19.99 per unit on advertising (more, if a robe purchaser turns out to be a “big basket” e-commerce spender).  So what does our advertiser do? Well, they set a retargeting campaign aimed anyone who ever visited our erstwhile robe’s page.  With CPMs averaging around a buck, that robe’s going to follow nearly 20,000 folks around the internet, hoping that just one  of them converts.

    Put another way, programmatic advertising is a pure numbers game, and as long as the numbers show one penny of profit, no one is motivated to make the system any better. I’ve encountered many similar examples of ad buyers ignoring high-quality data signals, preferring instead to “waste reach” because, well, it’s just easier to set up campaigns on one or two factors. Inventory is cheap. Why not?

    This is problematic. What’s the point of having all that rich (and hard won) targeting data if buyers won’t use it, and consumers don’t benefit from it? An ecosystem that fails to encourage innovation will stagnate and lose share to walled gardens like Facebook, Google, and others. If the ads suck on the open web (and they do), then consumers will either install ad blockers (and they are), or abandon the open web altogether (and they are).

    We can do so much better. Shouldn’t we try?

     

     

     
  • feedwordpress 20:07:01 on 2018/10/31 Permalink
    Tags: , , , , , food, , , , , , small business   

    After the Token Act: A New Data Economy Driven By Small Business Entrepreneurship 

    Gramercy Tavern in New York City

    If Walmart can leverage data tokens to lure Amazon’s best customers away, what else is possible in a world of enabled by my fictional Token Act?

    Well, Walmart vs. Amazon is all about big business – a platform giant (Amazon) disrupting an OldBigCo (Walmart and its kin). Over the past two decades, Amazon bumped Walmart out of the race to a trillion-dollar market cap, and the OldCo from Bentonville had to reset and play the role of the upstart. The Token Act levels the playing field, forcing both to win where it really matters: In service to the customer.

    But while BigCos are sexy and well known, it’s the small and medium-sized business ecosystem that determines whether or not we have an economy of mass flourishing.  So let’s explore the Token Act from the point of view of a small business startup, in this case, a new neighborhood restaurant. I briefly touched upon this idea in my set up post, Don’t Break Up The Tech Oligarchs. Force Them To Share Instead.  (If you haven’t already, you might want to read that post before this one, as I lay out the framework in which this scenario would play out.) What I envision below assumes the Token Act has passed, and we’re at least a year or two into its adoption by most major data players. Here we go…

    ***

    Fresh off her $2,700 win from Walmart, Michelle decides she’s ready to lean into a lifelong dream: Starting a restaurant in her newly adopted neighborhood of Chelsea in New York City. Since moving to the area from California, she’s noticed two puzzling trends: First, a dearth of interesting mid- to high-end dinner spots walking distance from her new place, and second, what appears to be higher-than-average vacancy rates for the retail storefronts in the same general area. It appears to be a buyer’s market for retail restaurant space in Chelsea. So why aren’t new places launching? She read the Times’ piece on vacancies a few years ago (before the Token Act passed) and was left just as puzzled as before – seems like there’s no rhyme or reason to the market.

    Michelle wants to start a high end American gastro pub – the kind of place she loved back when she lived in Northern California (she’s fond of Danny Meyers’ Gramercy Tavern, pictured above, but it’s a bit too far away from her new place). She has a strong hunch that such a place would be a hit in her new neighborhood, but she’s not sure her new neighbors will agree.

    Now starting a restaurant requires a certain breed of insanity – they say the best way to make a small fortune in the business is to start with a large one. The truth is, launching restaurants has historically been a crap shoot – you might find the best talent, the best designer, and the best location – but if for some reason you don’t bring the je ne sai quois, the place will fail within months, leaving you and your partners millions of dollar poorer.

    It’s that  je ne sai quois that Michelle is determined to reveal.  The tools she will leverage? The newly liberated resources of data tokens.

    Before we continue, allow me to draw your attention back to the rise of search, indeed, the very era which begat Searchblog in the early 2000s. Google Adwords launched in 2000, and within a few years, the media world had been turned upside down by what I termed The Database of Intentions.  As if by magic, people everywhere could suddenly ask new kinds of questions, finding themselves both surprised and delighted by the answers they received.

    Gates-Line compliant ecosystem quickly developed on top of this new platform, driven by an emerging industry of search engine marketing and optimization. SEO/SEM sprung into existence to help small and medium sized businesses take advantage of the Google platform – by 2006 the industry stood at nearly $10 billion in spend, growing more than 60 percent year on year. Adwords grew from zero to millions of advertisers by connecting to a long tail of small businesses that took advantage of an entirely new class of revealed information: The intents, desires, and needs of tens of millions of consumers, who relentlessly poured their queries into Google’s placid and unblinking search box.

    Were you a limo service in the Bronx looking for new customers? It paid huge dividends to purchase Adwords like “car service bronx” and “best limo manhattan.” Were you a dry cleaner in West LA hoping to expand? Best be first in line when customers typed in “best cleaners Beverly Hills.” Selling heavy machinery to construction services in the midwest? If you don’t own keywords like “caterpillar dealer des moines” you’d lose, and quick, to whoever did optimize to phrases like that.

    My point is simply this: Adwords was a freaking revolution, but it ain’t nothing compared to what will happen if we unleash data tokens on the world.

    ***

    Ok, back to Michelle and her new restaurant. Of course Michelle will leverage Adwords, and Facebook, and any other advertising service to help her new business grow. But none of those services can help her figure out her je ne sai quois – for that, she needs something entirely novel. She needs a new question machine. And the ecosystem that develops around data tokens will offer it.

    Thanks to her Walmart experience, Michelle has become aware of the power of personal data. She’s also read up on the Token Act, the new law requiring all data players at scale to allow individuals to create machine-readable data tokens that can be exchanged for value as directed by the consumer. After doing a bit of research, she stumbles across a startup called OfferExchange, which manages “Token Offers” on behalf of anyone who might want to query TokenLand. OfferExchange is a spinout from ProtocolLabs, a pioneer in secure blockchain software platforms like Filecoin. It’s still early in TokenLand, so an at-scale Google of the space hasn’t emerged. OfferExchange works more like a bespoke yet platform-based research outfit – the firm has a sophisticated website and impressive client list. It uses Facebook, Twitter, LiveRamp, and Instagram to identify potential token-creating consumers, then solicits those individuals with offers of cash or other value in exchange for said tokens.

    Michelle does a Crunchbase search for OfferExchange and sees it’s backed by Union Square Ventures and Benchmark, which gives her some comfort – those firms don’t fund fly-by-night hucksters. And OfferExchange site is impressive – in less than five minutes, it guides her through the construction of an elegant query. Here’s how the process works:

    First, the site asks Michelle what her goal is. “Starting a restaurant in New York City,” she responds. The site reconstructs around her answer, showing suggested data repositories she might mine. “Restaurants, New York City,” reads the top layer of a directory-like page. Underneath are several categories, each populated with familiar company names:

    • Restaurant Reservation and Review Services
      • OpenTable Google Resy Yelp Eat24 Facebook (more)
    • Food Delivery Services
      • GrubHub Uber Eats PostMates InstaCart (more)
    • Transportation Services
      • Uber Lyft Juno Via (more)
    • Real Estate Services (Commercial)
      •  LoopNet DocuSign CompStak (more)
    • Location Services 
      • Foursquare Uber Lyft Google NinthDecimal (more)
    • Financial Services
      • American Express Visa Mastercard Apple Pay Diners Club (more)

    And so on – if she wished, Michelle could dig into dozens of categories related to her initial “restaurant New York City” search.

    Michelle’s imagination sparks – the kinds of queries she could ask of these services is mind blowing. She could  limit her query to people who live within walking distance of her neighborhood, asking her *actual neighbors* for tokens that tell her what restaurants they eat at, when they eat there, the size of their checks, related reviews, abandoned reservations, the works. She might discover that folks like Indian takeout on Mondays, that they rarely spend more than $100 on a meal on Tuesdays, but that they splurge on the weekends. She could discover the percentage of diners in Chelsea who travel more than two miles by car service to eat out at a place similar to the one she has in mind, and what the size of the check might be when they do. She can also check historical average rents for restaurants in her zip code, over time, which will certainly help with negotiating her lease. The possibilities are endless.

    Put another way, with OfferExchange’s services, Michelle can litigate the merde out of her je ne sai quois.

    *** 

    This post is getting long, so I’ll stop here and pull back for a spot of Thinking Out Loud. I could continue the story, imagining the process of the token offer Michelle would put out through OfferExchange’s platform, but suffice to say, she’d be willing to pay upwards of $5-20 per potential customer for their data. The marketing benefit alone – alerting potential customers in the neighborhood that she’s exploring a new restaurant in the area – is worth tens of thousands already. And of course, OfferExchange can connect anyone who offers their tokens to Michelle’s new project a discount on their first meal at the restaurant, should it actually launch. Cool!

    But let’s stop there and consider what happens when local entrepreneurs have access to the information currently silo’d across thousands of walled garden services like Uber, LoopNet, Resy, and of course Facebook and Google. While better data won’t insure that Michelle’s restaurant will succeed, it certainly increases the odds that it won’t fail. And it will give both Michelle and her investors – local banks, savvy friends and family members – much more conviction that her new enterprise is viable. Take this local restaurant example and apply it to all manner of small business – dry cleaners, hardware stores, bike shops – and this newly liberated class of information enables an explosion of efficiency, investment, and, well, flourishing in what has become, over the past four decades, a stagnant SMB environment.

    Is this Money Ball for SMB? Perhaps. And yes, I can imagine any number of downsides to this new data economy. But I also believe the benefits would far outweigh the downsides. Under the Token Act as I envision it, co-creators of the data – the services like Uber, OpenTable, or Facebook – have the right to charge a vig for the data being monetized. Sure, it’d be possible for an entrepreneur to steal customers via tokens, but I’m going to guess the economic value of allowing your customers to discover new use cases for their data will dwarf the downside of possibly losing those customers to a new competitor. Plus, this new competitive force will drive everyone to play at a higher level, focusing not on moats built on data silos, but instead on what really matters: A highly satisfied customer. That’s certainly Michelle’s goal, and the goal of every successful local business. Why shouldn’t it also be the goal of the data giants?

     
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