The world is just beginning to undergo a profound change. It is transforming
its economies from scarcity based to economies based on abundance. The results
of these changes will cause massive social changes. Much of this change is due to
the abundance of computers and the internet.
A momentum has developed with the increase in abundant goods and services which
now means that if you want to have a voice in the direction of the future, you must
be involved in building it and not just trying to control, exploit or stop progress.
Any government or group that tries to halt progress or slow it down will be quickly
bypassed, or run over. It has become self-defeating to fight progress toward abundance
rather than to embrace it and work to increase it.
The list below is a description of methods and strategies that have caused abundance
to become a reality. It is not necessary that you read the list or understand each
of these methods in order to understand the implications of this major change. The
rest of the web site gives a brief description of what the changes are and what
they will mean to you. There are also discussions about how you can participate
in building the future.
The processes which are creating this change are:
Virtualization captures the essence of an action or item but
separates the desired essence from the physical objects that may have created it.
We listen to virtual concerts on our iPods, read and write on the computer using
virtual paper or use virtual mail to transfer our thoughts, have virtual meetings and
perhaps work in virtual offices available through any network connection.
Digitization encodes data so that it can be stored, manipulated,
duplicated, distributed and used at essentially no cost.
Volunteer Collaboration creates free and abundant resources such
as Wikipedia, open source and free software and many other tools and sources of
information and entertainment.
Freebies are things such as free software, free email, free online
storage, freely available web content, free web searches, image searches, maps,
directions etc. These may be available through generosity or they may earn money
for their provider by being monetized by advertising or by selling an upgraded version
or upgraded service for the free item. Musicians may freely share their music to
become better known and create a following.
The Network Effect causes some things to become more valuable
and useful as more people use them or are connected to them. A phone system becomes
more valuable each time a new person connects to it. Each unit that is sold or given away
creates more demand due to standardization, interoperability, popularity etc.
Notable networks are the telephone system, the World Wide Web, email, ebay, MySpace,
YouTube, FaceBook etc.
Web 2.0 websites enable users to help build useful information
by simply using the site (essentially creating by consuming). It relies on most
of the above methods and particularly the network effect. The more that it is used,
the better and larger it becomes. Some examples are YouTube, MySpace, FaceBook,
Craig's List, Flickr, del.icio.us etc.
The Long Tail is the concept that there are a few products in
each category that have high demand but most have much lower demand. This has made
it difficult in the past to create an efficient market for low demand items. Computer
networks and search capabilities have solved this distribution and marketing problem.
Amazon.com has created a marketplace for millions of book titles, ebay has created
efficient markets for unusual and small quantities of items.
Creativity is enhanced by inexpensive, professional quality computerized
tools which try to guide users to produce professional quality results. Creativity will
rapidly increase as leisure time is increased.
Automation creates goods ever more inexpensively. The increasing
functionality with concurrent decreasing cost of computers and peripherals is a good
example of this.
Nanotechnology is still in its infancy but promises to increase
abundance and functionality while decreasing raw material and manufacturing costs.
Disintermediation removes any middleman or step that is not
adding value to a transaction. For example, if you know a stock or bond that you want to
buy, an online stock trading service is faster, cheaper and more efficient than a
traditional stock broker. An important result is a drop in the cost of servicing
customers directly. Examples are in the travel industry and the financial sector.
Online Marketplaces allow consumers to compare many offers in a
short period of time and select the best product for their unique needs. They also
allow anyone to shop at millions of stores from the convenience of their homes.
They have increased competition by vastly increasing the number of competing businesses.
They have done this by providing a business "location" for small or new
companies at almost no cost.
Blogs are easy to use website creation tools that can
allow anyone to contribute their thoughts to the global conversation or become
major cultural, political, news or educational websites.
ReMixing is the combining of two or more pieces of digital content
to create new content. For example, adding a music track to a home video, or adding
a map to a web page or combining two digital photos or other content to create humorous
combinations. Search engines combine results from their searches of billions of pages
into lists of potential solutions to your search request.
Convergence combines multiple functions into one device.
Many cell phones are now capable of taking photographs or videos, accessing the
web and performing many other functions. Computers can be used to watch videos,
make telephone calls and many other functions. Eventually, most digital goods and
services will be available on any device. Some will be better for a particular
purpose and others will be more portable.
Alternative materials replace costly and scarce resources with
abundant and cheap resources or with virtual goods. A number of years ago there
was fear that the silver supply would run out due to increased photographic use.
With the advent of digital methods, photography has rapidly increased at the same
time that costs were decreasing.
Ubiquity of devices to tap the digital cornucopia is progressing.
Better devices, networks, operating systems and software combined with lower costs of
devices and programs such as One Laptop Per Child are spreading technology worldwide.