Tag: Ben Thompson

Friday fadings

I’m putting this together quickly before heading off to the Lake District camping with my son for a couple of nights. I’m pretty close to burnout with all of the things that have happened recently, so need some time on top of mountains and under the stars 🏕️


Slack verticals vs Microsoft

The Slack Social Network

Slack Connect is about more than chat: not only can you have multiple companies in one channel, you can also manage the flow of data between different organizations; to put it another way, while Microsoft is busy building an operating system in the cloud, Slack has decided to build the enterprise social network. Or, to put it in visual terms, Microsoft is a vertical company, and Slack has gone fully horizontal.

Ben Thompson (Stratechery)

The difference between consulting full-time now versus when I last did it in 2017 is that everyone adds you to their Slack workspace. This is simultaneously fantastic and terrible. What’s being described here is more on the ‘Work OS’ stuff I shared in last week’s link roundup.

See also Stephen Downes’ commentary on mini-apps that perform particular functions inside other apps.


Only 9% of visitors give GDPR consent to be tracked

Advertising funded businesses are aware that the minority of visitors want to give consent.

They are simply riding the ad train and milking the cash cow for as long as they can get away with before GDPR gets enforced and they either shut down, adapt to a more sustainable business model or explore even more privacy invasive practices.

And the alternative to the advertising-funded web? Charge for services. And have your premium subscribers fund the free plans.

Marko Saric

This is interesting, and backs up the findings in this journal article about the ‘dark patterns’ prevalent around GDPR consent on the web. The author of this post found that only 48% of people clicked on the banner and, as the title states, only 9% of those gave permission to be tracked.


Oak National Academy: lockdown saviour or DfE tool?

There are some who are alarmed by the nature of the creature that the DfE has helped bring to life, seeing Oak as an enterprise established by a narrow strata of figures from DfE-favoured multi-academy trusts; and as a potential vehicle for the department to promote a “traditionalist” agenda in teaching, or even create the subject matter of a government-approved curriculum.

John Morgan (TES)

I welcome this critical article in the TES of Oak National Academy. My two children find the lessons ‘cringey’, not every subject is covered, and the more you look into it, the more it seems like a front for a pedagogical coup.


The More Senior Your Job Title, the More You Need to Keep a Journal

Journal entries should provide not only a record of what happened but how we reacted emotionally; writing it down brings a certain clarity that puts things in perspective. In other cases, it’s a form of mental rehearsal to prepare for particularly sensitive issues where there’s no one to talk with but yourself. Journals can also be the best way to think through big-bet decisions and test one’s logic.

Dan Ciampa (Harvard Business Review

When I turned 18, I decided to keep a diary of my adult life. After about a decade, that had become a sporadic record of times when things weren’t going so well. Now, 21 years later, I merely keep my #HashtagADay journal up-to-date.

But writing things down is really useful, as is having someone to talk to with whom you don’t have an emotion-based relationship. After nine sessions of CBT, I wish I’d had someone like my therapist to talk to at a much younger age. Not because I’m ‘broken’ but because I’m human.


Rome burning

Top 10 books about tumultuous times

There’s nothing like a crisis of survival to show people’s true natures. Though I’ve written a good deal about tumultuous times, both fiction (English Passengers) and non-fiction (Rome: a History in Seven Sackings), I can’t say I’m too interested in the tumult itself. I’m more interested in the decisions people make during such crises – how they ride the wave.

Matthew Kneale (THe GUardian)

I don’t think I’d heard of any of these books before reading this article! That being said, I’ve just joined Verso’s new Book Club so my backlog just got a lot longer…


Full Employment

Keynes once proposed that we could jump-start an economy by paying half the unemployed people to dig holes and the other half to fill them in.

No one’s really tried that experiment, but we did just spend 150 years subsidizing our ancestors to dig hydrocarbons out of the ground. Now we’ll spend 200-300 years subsidizing our descendants to put them back in there.

Cory Doctorow (Locus Online)

I’ve quoted the end of this fantastic article, but you should read the whole thing. Doctorow, in his own inimitable way, absolutely eviscerates the prediction that a ‘General Artificial Intelligence’ will destroy most jobs.


Header image by Patrick Hendry

Amazon Go, talent and labour

I’ll try and explain what Amazon Go is without sounding a note of incredulity and rolling my eyes. It’s a shop where shoppers submit to constant surveillance for the slim reward of not having to line up to pay. Instead, they enter the shop by identifying themselves via the Amazon app on their smartphone, and their shopping is then charged to their account.

Ben Thompson zooms out from this to think about the ‘game’ Amazon is playing here:

The economics of Amazon Go define the tech industry; the strategy, though, is uniquely Amazon’s. Most of all, the implications of Amazon Go explain both the challenges and opportunities faced by society broadly by the rise of tech.

He goes on to explain that Amazon really really likes fixed costs, which is what their new store provides. Yes, R&D is expensive, but then afterwards you can predict your costs, and concentrate on throughput:

Fixed costs, on the other hand, have no relation to revenue. In the case of convenience stores, rent is a fixed cost; 7-11 has to pay its lease whether it serves 100 customers or serves 1,000 in any given month. Certainly the more it serves the better: that means the store is achieving more “leverage” on its fixed costs.

In the case of Amazon Go specifically, all of those cameras and sensors and smartphone-reading gates are fixed costs as well — two types, in fact. The first is the actual cost of buying and installing the equipment; those costs, like rent, are incurred regardless of how much revenue the store ultimately produces.

Just as Amazon built amazingly scalable server technology and then opened it out as a platform for others to build websites and apps upon, so Thompson sees Amazon Go as the first move in the long game of providing technology to other shops/brands.

In market after market the company is leveraging software to build horizontal businesses that benefit from network effects: in e-commerce, more buyers lead to more suppliers lead to more buyers. In cloud services, more tenants lead to great economies of scale, not just in terms of servers and data centers but in the leverage gained by adding ever more esoteric features that both meet market needs and create lock-in… [T]he point of buying Whole Foods was to jump start a similar dynamic in groceries.

Thompson is no socialist, so I had a little chuckle at his reference to Marx towards the end of the article:

The political dilemma embedded in this analysis is hardly new: Karl Marx was born 200 years ago. Technology like Amazon Go is the ultimate expression of capital: invest massive amounts of money up front in order to reap effectively free returns at scale. What has fundamentally changed, though, is the role of labour: Marx saw a world where capital subjugated labour for its own return; technologies like Amazon Go have increasingly no need for labor at all.

He does have a point, though, and reading Inventing the Future: Postcapitalism and a World Without Work convinced me that even ardent socialists should be advocating for full automation.

This is all related to points made about the changing nature of work by Harold Jarche in a new article he’s written:

As routine and procedural work gets automated, human work will be increasingly complex, requiring permanent skills for continuous learning and adaptation. Creativity and empathy will be more important than compliance and intelligence. This requires a rethinking of jobs, employment, and organizational management.

Some people worry that there won’t be enough jobs to go around. However, the problem isn’t employment, the problem is neoliberalism, late-stage capitalism, and the fact that 1% of people own more than 55% of the rest of the planet.

Sources: Stratechery and Harold Jarche

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