2.  Born in 1952, has no college or university degrees  Publisher and editor of Whole Earth Review from 1984-1990  Helped launch Wired magazine in 1993, and served as Executive Editor until 1999  Currently Editor-At-Large for Wired

3.  Founding board member of WELL  Member of The Long Now Foundation  Two famous books › New Rules for the New Economy › Out of Control

4.  Tracts of the information networking universe  Rules of value to be found in relationships  Importance of looking out of your box  Maximize innovation and maximize the fringes

5.  Sleek and efficient corporate model  Failure of traditional business practices in the modern business world  Network fears vs. liberal arts excitement

7.  The net is our future  Chips  Dot of intelligence  Connecting everything to everything  Small becomes smart

8.  Doors  Cars  Phones  They transmit simple messages  “I’m here!”

10.  As membership increases, network increases  n² = n*n  network growth  Networks encourage the successful to be more successful

11.  Industrial › Gradually › Single Organization › Benefits one company  Network › Exponentially › Shared by the entire network’s value › Increasing returns

12.  Industrial › Organization’s benefit  Network › Value › Silicon Valley  Advance technology  Social organization

13.  Expect bad things to happen  Changes occurs over time  Value & membership

14.  Need than luxury › Consumer products  “Technology has become our culture” › Internet, telephone, TV, computer  Tipping point

16. The fax effect

18.  Anticipate the arrival of cheapness  Prices Invert as the quality of items improve  The price of goods and services decreases as technology improves

19.  Every item will invert in pricing and eventually become free  The Goal: invent items faster than they are commoditized

20.  Most Cost Effective Way to gain increasing returns in the economy is to make items free  Consider the Netscape Example

21.  Consider these questions… 1. Is the freebie worth more than a silly premium? 2. How will you eventually capture the support of customers if there is no initial flow of money?

22.  Act as if your product is free  Invest in the first copy  Selling the ancillary products

24.  Networks have no clear center or outer boundaries  Distinction between us and them becomes less meaningful in a network

25.  Primary focus of a company:  Shifts from maximizing a firm’s value to maximizing infrastructure whole.

28.  Demand of strongest commitment  Only one standard will ultimately prevail  Uncertainty level is still high  Risks for being wrong are greater

29.  One standard so widely accepted  Becomes embedded  Nearly impossible to dislodge

30.  Standards hasten innovation  As they’re established, growth takes off

31. “As more of the economy migrates to intangibles, more of the economy will require standards.” - Produces a yin-yang tradeoff

32.  Positive side  Consumers keep most gains in productivity  Consumers get cheaper prices and higher quality

33.  Negative  Consumers have never-ending decisions to make  What to buy, when to upgrade/switch, what standard to join

34.  As we use computer chips more, we will find that the world will become more computer-generated.

36.  Instability and disequilibrium are the norms  Be aware of the peak  Must go downhill before innovation

37.  Shortsightedness  Global perspective  Adapt number of different practices at once  IBM  Easier to start new organization then change successful old one

39.  Places vs. Spaces  The Shift from Places to Spaces through Electronically Mediated Spaces

40.  The only side a network has is outside › Outsource chores to other companies which are within your network  Prepare for flash crowds › Mass audience goes from one hot spot to another, you must always be ready

43. “If the system settles into harmony and equilibrium, it will eventually stagnate and die.”

44.  To sustain a perpetual disequilibrium  robust growth sustains itself by poising on the edge of constant chaos  constant innovation is perpetual disruption

45.  Economy builds on constant extinction of companies that are outpaced  Careers will begin to resemble networks of multiple commitments

46.  To undo the industrial economy  flux of innovation permeates new economy like efficiency permeated industrial economy

47. Networks are in a constant state of flux.

48. “To achieve sustainable innovation you need to seek persistent disequilibrium.”

49.  Must chase after disruption without succumbing to it  Must remain perched in an almost-falling state

51.  The central economic imperative of the network economy is to amplify relationships. › The way to do this is through a NETWORK

52.  Structure to generate relationships  Members relate as peers › Help make things better

53.  Def – To fuse producing and consuming into a single verb.

54.  Prosuming occurs mostly online  When people prosume on large scales, it is called Mass Customizations

55.  Lets producers cater directly to you  Leads consumer to be happier with final result

56.  Smarter relationship technology  P3P cards – track information

57. 1) Create a tailored product 2) Recalling preferences intelligently 3) Anticipating what they (the customer) want before they articulate it. -Example: Firefly, Amazon

58.  Helping to increase sales  Makes the producer smarter  The next step is using it for ‘tangible’ items when shopping

59.  Consumers now have more of a responsibility  “The new economy begins with technology and ends with trust,”  Alan Weber

61.  Economics were based on year to year  Focusing on long-term outcomes › Growth of world economy increasing in long run  Global infrastructure = $4 quadrillion

62.  Great Asymmetry › Creating more than you destroy  Leads to opportunities for people to build off › Innovative technology  Technology increases amount of opportunities available

63.  Thought new technology = more productivity  Increased efficiency = more productivity

64.  Productivity is for machines › Has increased over the years  Opportunities is for humans › Requires innovativeness, risk, guesswork  “What is the right job to do?”

65.  After time costs decrease and productivity increase › Communication and experience  Increases efficiency

66.  Ideas of primary needs have changed  Desire for luxuries = new primary needs  Technology influences these desires

67.  One leads to two, two to four, etc.  Look into what can be built from this innovation