What Is Happening at johngeraci.com?

Wow, here it is already the backside of February and I have yet to publish the year’s first post to johngeraci.com. How did this happen?

Me talking about cities (by Keziban Barry)

Well I’ll tell you: I’ve been insanely busy so far in 2012. Busy growing faberNovel in NYC, busy talking at TEDxBigApple (video soon), busy with, uh, personal things as they say. So six weeks has gone by without a single post.

I have been posting over on faberNovel’s blog occasionally: see Twitter Usage in NYC Follows Patterns Established Before Columbus and Hello Storefront Retailers: Are You Safe From Web Disruption? among others.

But in general I’ve been writing less and doing more. And that feels like the right thing for right now. 2011 was a year for writing, thinking, positioning. 2012 is a year for DOING. And I’m doing, which leaves less time for writing.

I do miss this blog though. And I love that I’m still getting comments on posts I wrote several months ago. Makes it all feel kinda worth it. So I’m going to try to continue posting here occasionally, even through all of the DOING that I’m doing.

So: look for activity here to pick back up a bit hopefully over the next several weeks.

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Read This Article To Understand What 2012 Is Going To Be About

Have you read this month’s Wired article on YouTube fame seekers?

If not, please read it now.

I think it may be the most eye-opening article I’ve read this year.

What it describes is a growing group of 20-somethings living in Los Angeles trying to make it as stars of their own YouTube shows.

What it’s about is the new, creator-empowered culture of production built on top of the Internet that is (finally) coming of age and is going to change everything.

Here’s a snippet from the article:

Most people move to Hollywood with the hope of making it big, but Zonday is helping show the way to something strange and new: making it small… A narrow, lucrative fame is the path that has opened up for him and for the thousands of others like him. After going viral, they’ve figured out how—against all expectation—to stay viral.

Going viral, staying viral, and making that work for you without a studio – that’s the name of the game these people are playing.

The article goes on to describe a company that has sprouted up to help these creators out, and how it operates, what its business model is, etc. Great read.

Almost makes me wish I was living in Hollywood.

But of course the implications here are much bigger than just how video content gets made. You could take the topic of video in the article and replace it with anything: writing, music, software production, physical products – anything – and the article would work to describe the new model of creation and production that is now taking root around the world.

And among other things, this is what 2012 is going to be about – seeing this new type of production begin to grow into maturity, and seeing what that does to industries everywhere.

It should be an interesting year.

Happy New Year, see you in 2012…

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Drones: Coming Soon To The Skies Near You

I know there are all sorts of noteworthy IPOs making the news this week, but the OTHER news item that’s filling the papers, and the one I felt like blogging about here, is the news about DRONES.

Drones are everywhere suddenly: first, one drops out of the sky in Iran, then one does the same in the Seychelles, then Google Maps reveals images of a secret drone base in Nevada.

That sure seems like a lot of drones in our lives in one week.

But it’s nothing like what the future may hold. Why? Because drones are poised to displace helicopters and airplanes as the way police agencies and even corporations do their business in the skies.

This LA Times article about drones caught my attention a few weeks ago when it said that helicopters cost the LA police $1.7 million each, whereas the new five-pound police drone would cost just $40,000.

In other words you could buy 40 5-lb drones for the cost of one helicopter. That’s some serious disruptive potential if ever I’ve seen it.

(Here’s a question: if the police can suddenly buy drones for 1/40 the cost of a helicopter, do they pocket the extra money, or do they just buy 40x the number of aircraft they had previously, and use them all?)

Police aren’t the only ones who want in, of course – FedEx is interested too, among others. They envision “using a fleet of package-laden drones led by a traditionally piloted plane that could keep an eye on the robotic aircraft.”

And what about TV news stations and local delivery services? At $40k, they’d want drones too of course. Along with just about any other service that could take advantage of a small, pilotless, aircraft. Farmers in Japan are already using them to dust crops.

Hell, I might even want a drone of my own for forty thousand dollars. I could think of some pretty cool things to do with a couple of drones. I can think of a few startups off the top of my head (which I doubt I’d want to ever actually start).

Yes, the future is looking very drone-filled indeed. Drones drones drones. I don’t know if it’s the future we want, but it’s the one we’re likely to get.

I have to point out that the FAA hasn’t yet approved domestic drones. They see a lot of issues to be resolved first, starting with how to deal with drones that crash (as is happening a lot this week). So for now – in the U.S. at least – it is in the hands of the government as to whether or not this plays out.

But with a few more iterations on the technology, plus a little lobbying effort on the part of companies who make drones, I expect we might see a dramatic change in the way our skies are used.

Posted in Cities, Disruption | Leave a comment

Embrace Disruption To Save The U.S. Postal Service

If your business revolves around charging people money to deliver messages by hand over a period of days, how do you survive in a world where anyone can send anyone else a message for free instantaneously?

That’s the question the U.S. Postal Service has been worriedly asking itself as it gazes into the mirror for the past ten years.

Yesterday it announced that the answer to that question was to cut next-day mail and close half of their processing plants.

That’s their response to the crisis, which they perceive as a budgetary crisis. They’re trying to save $2.1 billion a year in the face of collapsing revenues.

Those steps may save them their $2 billion, but they will also create a service that is even worse in comparison to the technology that disrupted it in the first place. It will speed the end of the Postal Service altogether.

If the Postal Service wants to survive in this new era, it has to embrace the disruption that has happened all around it. It has to transform itself, shed its baggage, and get with the times, damn it.

Embrace the disruption!

How should it do this?

Here are a few ideas.

For starters, make all delivery of personal mail free. That’s right, free. No stamp needed. Just drop your letter in the mailbox and away it goes.

Wha? Why? Well remember – we’re living in a world where sending messages is free. How can you make it as an organization charging money to deliver messages in that kind of world? You can’t. If you’re going to stay in business, you’ve got to saddle up and ride out to meet the competition. Free delivery of messages.

Next: double (or triple) the price of delivery for junk mail to compensate for that freebie to writers of real letters. That will have the combined effect of increasing revenue per transaction, and also decreasing the number of non-primary transactions that happen in the first place. It will free up resources to focus on real mail being sent. With all of those free resources, it might even increase the ability to deliver real mail to destinations same-day.

Then: advertise on the backs of letters. Attach a little advertisement sticker to each (free) piece of mail that goes through the Postal Service. Now suddenly you’ve got revenue for your free mail system. Will people care? No, they’ll love it – just like they love free web pages that have ads on them. People love free services and don’t mind seeing a few ads in exchange for them. The web has taught us that a couple billion times.

(Conversely: people hate spending their time searching for stamps to attach to letters. Life has taught us that over and over again.)

Finally: remember who the customer is and what the mission is. The customer is the people of the U.S., and the mission is getting their messages securely to their destination. There are a lot of ways to go after that, just one of which is delivering mail. The Postal Service should be ruminating on that idea, and ought to be reinventing itself in different ways along those lines. I think there could be lots of ways to go there.

If the Postal Service took these steps, or similar ones to transform and reinvent itself, we might see a leaner, healthier service, and one that was actually optimized to the world around it, instead of one that was slowly but surely collapsing in the face of newer solutions to old problems.

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Did Bitcoin “Fail” or Is it Just One Step On the Road to P2P Currency?

There’s a fantastic article in Wired this month about The Rise and Fall of Bitcoin.

It’s a great read and a well-written article, but reading it one gets the sense that Bitcoin failed, and all of the P2P currency experiment has failed with it. Paul Krugman dismisses it, a consultant calls it a pyramid scheme, the author concludes that “beyond hardcore users, skepticism has only increased”.

That may be so for Bitcoin, but isn’t there a precedent to this with other big ideas on the web? Didn’t it take Friendster breaking new ground and then failing in order to bring us MySpace, and ultimately Facebook? (I say “ultimately”, but FB is less than ten years old – it could easily flame out and be replaced by a hardier version of it in the next several years). Didn’t it take Napster, then Gnutella, then Kazaa etc etc etc to arrive at the hardened, shutdown-resistant BitTorrent for file sharing? (Not to defend BitTorrent – I don’t use it, feels gross to me, but I use it to make a point).

Reading the article, I feel like the unmistakable conclusion, which the author doesn’t make, is that Bitcoin failed, but in doing so it blew a gigantic hole in the concept of money, broke a lot of new ground, and that new ground is bound to be claimed by some other player in the next few years one way or another. Some Mark Zuckerberg of bitcurrency will emerge, tweak the Bitcoin model to fix the problems that destroyed it, and we’ll have the biggest currency disruption the world has ever seen.

This seems inevitable, does it not? People have played with the concept a few times, and gotten it wrong. But that just exposes where the potholes are for the next guy coming along. The idea is only a few years old. Give it another few iterations, and someone is going to get it just right.

(If you want to read some interesting comments on Bitcoin and the possibilities for P2P currency – as well as lots of derision – check out the comments in Paul Krugman’s article on it from September.)

Posted in Disruption | 7 Comments

Local CO2 Mapping Takes Off (With Your Help!)

Last week (or was it the week before?) I blogged about what I see as a big problem with the issue of global warming: contextualizing it as something “global” instead of local.

When you frame something as global, it becomes nobody’s problem. When you frame it as local, it becomes everyone’s problem. I suggested we start thinking in terms of “local warming” instead of global warming, and start mapping CO2 output by city, so that communities can see and understand what their own contribution to the problem is.

What I love about the web is that as soon as I wrote that post, someone (Phil Green) responded by setting up a group on a site where people interested in this could crowdsource maps of local CO2 output, using openly available data.

The group now has six members. Not a deluge yet, but a nice first showing all things considered. Better than DIYcity had a few days after launch.

Now comes the moment of truth: will people in the group – or you, if you’re reading this and want to help out – get together and actually make a prototype of a local CO2 map? I think a simple map, hacked together in a day with existing resources, could make a big splash and set the ball rolling.

Do you want to help out? If you do, go to the website and sign up for the group. Or ping me at john at johngeraci.com and I’ll help set you up with the people at that site who are interested in this.

Would be great timing, with the U.N. Climate Change Conference happening right now in South Africa.

Posted in Cities, Innovation | 4 Comments

Please Stop Talking About Global Warming

Here’s a question: why don’t people talk more about climate change?

It seems to me like something that should be a constant topic of conversation these days, especially given that 2010 was the biggest year ever for global CO2 output, exceeding the worst scenarios scientists had concocted. Yet whenever I bring it up – on Twitter, with friends, on this blog, wherever – I feel almost as though I’m talking about Bigfoot sightings or something.

Actually no: Bigfoot talk goes over much better than mentioning global warming. Bigfoot talk at least gets a flicker interest from people. Global warming is just met with awkward silence, followed by an abrupt shift in conversation to the hilarious things cats do or some such topic. It’s a serious conversational transgression. Like talking about a wart or something.

The question is why?

There are many answers, of course: the global warming issue doesn’t have any human characters so there’s no story to follow, it’s too big and slow moving to pique interest, there’s no sex in it, it feels very vague. And it doesn’t have cats doing hilarious things. All real problems when it comes to capturing and holding people’s attention.

But a big issue I think is with the term: global warming. Anything that’s global is by definition Someone Else’s Problem. Whose, exactly? Not sure. The UN or someone. Bono. I don’t know, but not me.

So if it’s not my problem, I’m not going to think about it, right? And I’m sure as hell not going to talk about it.

But it occurred to me: what if we broke it down, and started referring to it locally? What if we thought and spoke not in terms of “global” warming but New York warming, or San Francisco warming or London warming? What if we were all aware of what our city’s “warming” was for that year? How much CO2 our locale was producing, and the local temperature for the year relative to historical norms?

It seems like that might bring it down to the human level, make it more personal, more social. People might say to each other “Jesus, did you see our warming this year? Fucking outrageous. Off the map.” People might compare their city’s warming to other cities’ warming. Mayors would be forced to get up once a year and talk about how their city’s warming was 7% better than last year, certainly better than when Giuliani was mayor, blah blah blah, just to get re-elected.

People don’t take ownership of anything at the global level. But at the local level they do. They have local pride, they have local interest. They want their city to be the best, better than the next city down the road. Global anything is boring. Local is interesting.

I did a search online for graphs or visualizations of CO2 output by city. Didn’t come up with anything. I did come up with this cool/scary video, but it doesn’t really do the whole local idea justice. (Skip to 1:20 for the good stuff.)

Could someone do a visualization of CO2 output by city? In realtime even? Could someone plot the total CO2 output for various cities and post them online, create a “best” and “worst” list, update them annually?

That would be interesting to this local person.

Posted in Cities, People | 2 Comments

3D Printing: Even More Disruptive Than That.

“3d printing is even more disruptive than you’re giving it credit for.” So says Kevin Kwok of Yale University, in a comment on Wednesday’s post about MakerBot and 3D printing.

Kevin is totally right, which is why I had to write a follow-up post.

In Wednesday’s post I was focusing on how 3D printing may disrupt fabrication one day, making it totally unnecessary to do manufacturing in places like China and Detroit.

That’s pretty big.

The possibly even bigger picture though, as Kevin points out, is that 3D printing allows people to share designs with one another the same way you share and print jpegs with people these days. Or in the same way you share mp3s and burn CDs from them.

So imagine not even having to know how to design something in order to manufacture it. Imagine not ever needing to get something in the mail from UPS. Imagine stores not needing to actually manufacture things at all – they just send a blueprint, and the end user just pops that blueprint into their printer and bing, there’s the product. (I guess “store” is the wrong word in that case – as would be “manufacturer” – so what do call the designer/seller of things then? The designer? The company? The brand?). Imagine being able to share blueprints of things with others for free. You get the blueprint for a bike you like, share it with a friend, and he can then make that same bike for the cost of the materials.

It totally fragments the whole process of manufacturing and delivery of goods from start point to end point.

It’s sort of like the Gutenberg press of physical objects.

What happens to manufacturing in this case?

What happens to shipping and delivery?

What happens to stores and companies?

What happens to brands?

What happens to the price of goods?

Interesting stuff to think about.

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Is Your Company As Disruptive As MakerBot? Unlikely.

I don’t think many people are looking at MarkerBot right now and thinking “Damn that company is disruptive!”

But they should be.

MakerBot is the Brooklyn-based startup that makes open source 3D printers. 3D printers are “printers” that you can print physical, three-dimensional objects with. Objects like plastic busts of people’s heads. MakerBot’s goal is to “bring desktop 3D printing into the home at an affordable price.”

People look at MaketBot and see a lot of things. They see a cool, if somewhat esoteric product, made by Brooklyn hipsters. They see the funny projects that they do, like sending a bust of Steven Colbert’s head into space. They don’t see disruption right away.

But I’ve always thought they were future disruptors, and then last night I read somewhere that Jeff Bezos invested in their last round, and that confirmed my suspicions.

Jeff Bezos is like a shark with disruption: he can smell it six miles away. Where disruption is, he is.

All of that investment from Bezos et al isn’t to fund cool, hipster films of busts going up into space. Well sure, it is actually, in the short term. But in the long term, people are betting that MakerBot is going to disrupt something huge. Not just an industry, but INDUSTRY itself.

As in: where do you go to get things fabricated?

Right now you go to China. That’s the cheapest place in the world to fabricate, because you don’t have to worry about pesky things like liveable wages and working conditions. (At least not to the degree you have to somewhere like Detroit).

But imagine if you didn’t have to even go to China at all – imagine if it were cheaper than that, if you could just pop something into your printer and make it in your home?

That’s what MakerBot is working on. At the moment you can only do little things, and they aren’t all that strong. And you can’t whip off 1,000 while you go down the street for coffee.

But the idea, I’m sure – and this is where the disruption comes in – is that in five or ten years, the technology will have grown enough that you can do all of the above – make big, strong things, enterprise-level things, create a huge bunch of them.

And at that point, who needs China, or Detroit for that matter? You can make close to anything out of your bedroom, for the cost of the materials. (That’s assuming you have the technical know-how).

This is the way a lot of disruptive ideas start off. Very limited in scope, to the point of being considered toys. The telephone could only make calls between people two blocks away at first. Useless, the telegraph companies thought. Then it kept getting better and better. Pretty soon it could connect everyone in a town. Then long distance came in. Within 20 years, the telegraphs were gone.

Will that happen with 3D printing? Jeff Bezos clearly thinks there’s a good chance.

But the point is: I can’t think of many companies out there that have the potential to disrupt as much as MakerBot does.

Posted in Disruption, Entrepreneurs | 3 Comments

Why “Smart Cities” Wont Stop Global Warming – And May Even Accelerate It

Those of us who like to think about city-scale innovation also like to think that it is somehow going to lead us away from our carbon-abusing ways towards a new world of sustainability.

Well I’ve got some bad news: it’s not. Sorry to say it.

Civic innovation and “smart city” technology is going to do a lot to make cities more usable. But it isn’t going to help us solve the global warming conundrum. In fact it may even make it worse, accelerate the problem.

That’s right – all of those apps, all of that open data, all of those super-cool realtime traffic alerts, all of the things that make the system work better – they may actually making carbon output worse.

How?

There’s a little-known idea called the Khazzoom-Brookes Postulate (that name probably explains why it is so little-known), that explains it like this: increasing efficiency in any macro system has the unexpected effect of also increasing demand in that system over time. Basically, making a system more efficient makes resources in that system cheaper, which in turn makes using those very resources more economical and attractive to others, who then end up using more resources than they did before.

When things get more efficient, they get cheaper to everyone. And when things get cheaper, people respond by consuming more of those things than they did when the cost was higher. You end up back where you started, or worse. It’s a boomerang effect.

Let’s take a real-world example:

Say you build and launch an app that makes it easier for people to carpool. And say it actually works, and 10,000 people stop driving and instead share rides with others to work as a result. You’ve made the commute system more efficient – less energy spent to get people to work in the morning. Carbon output goes down. Great.

But a secondary effect of taking 10,000 people off the road is to create more space on the freeway during commute hours. The “cost” of driving, in terms of time, goes down for other people and businesses. That incentivizes them to fill up that space themselves. Even if they didn’t plan on using that space originally, they now think about using it – it’s a resource that was formerly expensive and is now suddenly very cheap. Some may decide to switch from taking the subway to driving, because it’s suddenly so easy to drive (extra space!). Others may be businesses who decide to open a new delivery route and make more money, because the lighter traffic presents an opportunity for them.

When all is said and done, according to Khazzoom-Brookes, you may very well have more than 10,000 people replacing the 10,000 free spots on the freeway created by the app. Your app to get fewer people driving has led to more people driving.

This goes on across every vertical, in every nook and cranny that you may be trying to improve. Making the system more efficient encourages people to use more resources, which pushes use of the system even higher.

This may be why, despite the fact that our cities are quickly getting smarter and more efficient than ever, 2010 saw the biggest single-year increase in global carbon output in history, what one scientist called a “monster” increase in emission.

None of this is an argument against making cities more efficient. Cities need to become more efficient, absolutely. But it is to say: efficiency is good for a lot of things, but it isn’t good for reducing carbon output.

What is good for reducing carbon output? Three things: legislation, behavior change, or clean energies. Or a combination of all three.

Maybe these things should be considered as part of a broader “Smart City” strategy as well, if we want cities to really be Smart?

Posted in Cities, Disruption, Innovation | 2 Comments