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Google, Amazon, and Netflix Know Their Most Important Product Is You
Companies succeed when they invest in human capital, which used to just mean a company's employees. Today, it means investing in the company's customers as well.
Michael Schrage examines the various roles of models, prototypes, and simulations as collaborative media for innovation risk management. He has served as an advisor on innovation issues and investments to major firms, including Mars, Procter & Gamble, Google, Intel, BT, Siemens, NASDAQ, IBM, and Alcoa. In addition, Schrage has advised segments of the national security community on cyber conflict and cybersecurity issues. He has presented workshops on design experimentation and innovation risk for businesses, organizations, and executive education programs worldwide. Along with running summer workshops on future technologies for the Pentagon's Office of Net Assessment, he has served on the technical advisory committee of MIT's Lincoln Laboratory. In collaboration with the Center for Strategic and International Studies (CSIS), Schrage helped launch a series of workshops sponsored by the Department of Defense on federal complex systems procurement. In 2007, he served as a judge for the Industrial Designers Society of America's global International Design Excellence Awards.
Michael Schrage: What really launched my serious research into network effects and the economics of network effects was some of the work that I was doing in human capital. And the notion that innovation isn’t just a transaction. Innovation is an investment in the human capital and capabilities and competencies and creativity of your customers. Network effects are basically how customers or users create value for each other. It’s basically an external to the individual user. So an example of a network effect would be if you and I had a phone that would be great for you and I. But a network effect is the more people who use phones, the more valuable the phone network becomes. The more valuable each other become because we can call more people and more people can call us. And heck, there may even be the opportunity to do a conference call which is another form of network effect. So network effects are basically a way that the more people participate in using a product or service, the more valuable it becomes.
There’s no such thing anymore as a non-networked organization. Now admittedly some networks are better than others but we can absolutely make the case that one of the fundamental transformations over the last 50 years is the networkification of large organizations and small organizations not just in OECD countries but all over the world. Networkification has taken over the world. It’s how do you get value from these networks. There’s a wonderful line from the first industrial sociologist, a Frenchman by the name of Frederic le Play. He was the superintendent of Ecole des Mines. And his phrase was the most important product of the mine is the miner. It’s not the coal. It’s not the metal. It’s not the tin. It’s the human capital that allows you to extract the value from the mine. So let’s update this to the twenty-first century. The most important product of the network is the networker. Not the bids, not the bytes, not the bandwidth, not the data. It’s the people and in an Internet of things age the things, the machines, the devices on the network. If we can make networkers more valuable we make our networks more valuable. And that is indeed the recipe for an Amazon, for a Google, for a Yelp, for a LinkedIn, for an AT&T, for a Netflix.
What does Google do to make customers better? It gives them the ability to search and iterate on those searches. And what does Google do? It converts those clicks into more efficient search. That’s the essence of a web 2.0 network effects company. The same holds for the Amazon recommendation engine or for Netflix. So what you’re doing is you’re making – you’re not just giving customers what they want. You’re investing in improving their capabilities. What was another way that Google did that? Google gave you for free Gmail email which enables it to learn more about your social network, what you’re interested in communicating about, et cetera. The same thing with LinkedIn. So the whole notion – that’s why LinkedIn bought a company like Lynda. Not just to improve people’s resume but to improve people’s skills.
So the notion of a network effect here is as we give our customers the ability to do more for themselves they can do more with us and on our network. So in the early days of the telephone all you could do was talk to someone. Then you could do a fax. Then you could do a conference call. Then there were these things called modems that allowed you to send email. You’re increasing the capability of the customer allowed you to get more value from the network. And indeed customers wanted to do so much you had to do what? You had to redesign the architectures and the capabilities of the network. So you have an iterative network development process here. As customer capabilities and capacities increase, you have to change the capabilities and capacities of the network, and vice versa.
The first industrial sociologist, Frenchman Frederic le Play, revolutionized business strategy by recognizing that the coal mine's most essential asset wasn't the raw material extracted from the mine, but the miner himself. Steve Jobs expressed a similar notion, though not exactly the same, when he said his favorite Apple product wasn't a piece of technology, but the team of people he worked to build.
The essence of the message here is that products aren't what help a company innovate. Investing in the human capital on which their business depends helps companies innovate. Bringing that lesson into the present day means incorporating information about the highly distributed digital landscape.
We are no longer just talking about a company's employees. Instead, we are talking about customers who exist on a network — think Google, Amazon, Netflix, and LinkedIn — serving essential information about their habits back to the company. When Google decided to invest in their users by offering free email services, the returns were enormous in terms of both market share and awareness of their customers' habits.
Educators and administrators must build new supports for faculty and student success in a world where the classroom might become virtual in the blink of an eye.
- If you or someone you know is attending school remotely, you are more than likely learning through emergency remote instruction, which is not the same as online learning, write Rich DeMillo and Steve Harmon.
- Education institutions must properly define and understand the difference between a course that is designed from inception to be taught in an online format and a course that has been rapidly converted to be offered to remote students.
- In a future involving more online instruction than any of us ever imagined, it will be crucial to meticulously design factors like learner navigation, interactive recordings, feedback loops, exams and office hours in order to maximize learning potential within the virtual environment.
Can thinking about the past really help us create a better present and future?
- There are two types of counterfactual thinking: upward and downward.
- Both upward and downward counterfactual thinking can be positive impacts on your current outlook - however, upward counterfactual thinking has been linked with depression.
- While counterfactual thinking is a very normal and natural process, experts suggest the best course is to focus on the present and future and allow counterfactual thinking to act as a motivator when possible.
“Upward” versus “downward” counterfactual thinking<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQ1NDYxOS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0NDM2MDY2OX0.njWs1qrV1vDBxU1V75tUduUW4TjJvEHglDWsK8ZF2l4/img.jpg?width=1245&coordinates=0%2C556%2C0%2C209&height=700" id="a15fa" class="rm-shortcode" data-rm-shortcode-id="98314d4d2b256ed08f42d369fe4ae080" data-rm-shortcode-name="rebelmouse-image" alt="concept of man thinking about the past one line drawing counterfactual thinking" />
What are upward and downward counterfactual thinking?
Image by one line man on Shutterstock<p><strong>What is upward counterfactual thinking?</strong></p><p>Upward counterfactual thinking happens when we look at a scenario and ask ourselves "what if" in terms of how our life could have turned out better. </p><p>Examples of upward counterfactual thinking are: </p><ul><li><em>"I wish I had taken that other job instead of this one 10 years ago - my life would be so much better if I had." </em></li><li><em>"I wish I would have gotten the part in that high school play, maybe I could have gotten into a theatre school and became an actor…"</em> </li></ul><p>Both of these examples have the ideology that if you had made different choices, your life right now would be improved. </p><p><strong>What is downward counterfactual thinking?</strong></p><p>Downward counterfactual thinking is, naturally, the opposite of upward counterfactual thinking in that we think about how things could have been worse if other decisions had been made. </p><p>Examples of downward counterfactual thinking are: </p><ul><li><em>"I'm so thankful I studied secondary education in university instead of psychology like I had originally planned - I love teaching high school kids and I never would have gotten to do that…" </em></li><li><em>"I'm so happy I left David when I got the chance, I can't imagine still being in an unhappy marriage with someone who doesn't support me…"</em> </li></ul><p>In these examples, we see the idea that if you had made different choices your life would not be as good as it is right now. </p>
How counterfactual thinking can impact your life<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQ1NDYxNy9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyNjI2MDQxOX0.DIVQ-Yk0d6yE3tc743MH1Fz2pOg1TGHLmhp8dPp9UdY/img.jpg?width=1245&coordinates=0%2C0%2C0%2C0&height=700" id="522d7" class="rm-shortcode" data-rm-shortcode-id="da7df6ad916b043e3610223900d0f8df" data-rm-shortcode-name="rebelmouse-image" alt="man thinking what if written on chalkboard" />
How do upward and downward counterfactual thinking impact your life?
Photo by Brasil Creativo on Shutterstock<p>While many people don't see the point in "what if" scenarios, various studies have found that downward counterfactual thinking can be more associated with psychological health compared with upward counterfactual thinking. Not only that, but research has also shown upward counterfactual thinking can be linked with current and future depression.</p> <p><strong>Downward counterfactual thinking tends to be more associated with psychological health </strong></p><p>According to a <a href="http://journal.sjdm.org/jdm06136.pdf" target="_blank">2000 study</a>, downward counterfactual thinking can be linked with better psychological health compared to upward counterfactual thinking. More importantly, in cases where downward counterfactual thinking did lead to negative feelings, those feelings acted as something of a motivator for people to take productive actions to better their current situation. </p> <p><strong>Upward counterfactual thinking tends to be more associated with depression </strong></p><p><a href="https://www.sciencedirect.com/science/article/abs/pii/S0272735816301714#:~:text=An%20upward%20counterfactual%20(as%20opposed,Markman%20and%20McMullen%2C%202003)." target="_blank">According to a 2017 study</a> that pooled a sample of over 13,000 respondents, thoughts about "better outcomes" and regret (upward counterfactual thinking) were associated with current and future depression. </p> <p><strong>Downward counterfactual thinking can actually improve your relationships and is more often engaged in by women than men.</strong></p><p>In a <a href="https://dspace.sunyconnect.suny.edu/bitstream/handle/1951/67589/Studer_Thesis.pdf?sequence=1&isAllowed=y" target="_blank">2016 research paper submitted</a> to the Department of Psychology at the State University of New York at New Paltz, downward counterfactual thinking in regards to romantic relationships was associated with relatively positive relationship outcomes. Interestingly, women were more likely than men to engage in downward counterfactual thinking about their romantic life. </p> <p><strong>Upward counterfactual thinking can have some benefits in certain scenarios. </strong></p><p>When we look back after a failed test and think "I wish I would have studied more" - this motivates us to study harder the next time a test comes up. In this way, upward counterfactual thinking (or the negative version of "what if") can actually benefit us. </p> <p><strong>This can be difficult, though, because much of the time upward counterfactual thinking is more associated with a pessimistic outlook that can be unmotivating. </strong></p> <p>Thinking in the past tense can be motivational (and even healthy) at times, but the best thing to do is look forward. </p><p>While counterfactual thinking as a whole can be used to motivate us to make better choices or appreciate where we are in life, <a href="https://www.psychologytoday.com/us/blog/darwins-subterranean-world/201809/the-psychology-what-if" target="_blank">this Psychology Today</a> article suggests that we should come up with ways to move on and focus on the present and the future instead of the past. Using counterfactual thinking as a motivational tool can be very helpful if we don't get stuck in the "what if" mindset that tends to pull us out of the present and back into the past, where things will always remain the same. </p>
Watch The Daily Show comedian Jordan Klepper and elite improviser Bob Kulhan live.
These days, if you don't laugh, you might just scream. Enter comedian and The Daily Show regular Jordan Klepper!
Despite fact check campaigns, anti-vaccination influence is growing.
- Despite announcing plans to combat disinformation, anti-vax groups continue to gain influence on Facebook.
- An analysis of over 1,300 Facebook pages with 100 million followers shows that anti-vaccination agendas are having a profound impact.
- Only 50 percent of Americans are certain they'll receive an approved COVID-19 vaccine.
Facebook announces plan to 'tackle vaccine misinformation'<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="997c512b8b8afcd4db98fdb7ece75680"><iframe type="lazy-iframe" data-runner-src="https://www.youtube.com/embed/ZTZ3Lq67yiY?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>This trend is having real-world consequences. Only <a href="https://www.sciencemag.org/news/2020/06/just-50-americans-plan-get-covid-19-vaccine-here-s-how-win-over-rest" target="_blank">half of Americans</a> are willing to get a coronavirus vaccine, with a quarter wavering and a quarter against. While we should be confident of efficacy—gossip about a <a href="https://www.webmd.com/lung/news/20200511/covid-19_vaccine_by_fall_possible_but_at_what_cost" target="_blank">vaccine arriving in the Fall</a> is ambitious and potentially unsafe—the idea that a quarter of the country will refuse any vaccine is a potential public health disaster (as if we're not experiencing one now).</p><p>Making matters worse, we can't fight disinformation with data. No matter how many articles <a href="https://bigthink.com/coronavirus/the-plandemic" target="_self">debunk Plandemic</a>, Mikki Willis gains momentum. Do <a href="https://www.facebook.com/mikki.willis/posts/2875973472513592" target="_blank">27,000 doctors</a> really support his efforts to "reform our corrupt global healthcare systems?" There's no way to tell, but that's the thing about Facebook: it doesn't have to be true. Willis's claim, which he made in conjunction with a fundraising effort for the film, has been shared 4.4k times. Convincing his fanbase that perhaps tens of thousands of doctors aren't on board will be a Herculean task. </p><p>Media Matters notes the official-sounding National Vaccine Information Center (NVIC), which, though sounding governmental, opposes every effort to vaccinate children. Beginning in February, the organization's website started publishing a "<a href="https://www.nvic.org/vaccines-and-diseases/Reports/covid-19.aspx" target="_blank">special report</a>" on COVID-19, laying the groundwork for vaccination disinformation. </p><p style="margin-left: 20px;">"The first three installments of the 'special report' adopt right-wing themes unrelated to vaccines, such as the claim that public health orders that promote social distancing result in a 'loss of civil liberties' and subject Americans to 'quarantine shaming.' The fourth installment, published on March 29, includes the first attacks on vaccine development in the series … The fifth installment of the 'special report,' published on April 1, frames the vaccine development efforts of pharmaceutical companies and other entities as a cash grab."</p>
A truck with writing "JESUS IS MY VACCINE" drives by demonstrators rallying outside the Pennsylvania Capitol Building to protest the continued closure of businesses due to the coronavirus pandemic on May 15, 2020 in Harrisburg, Pennsylvania.
Photo by Mark Makela/Getty Images<p>The irony is that NVIC's Facebook page is listed as an "Educational Research Center." Just today the organization posted about the <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2831678/" target="_blank">long-disproven link between the measles vaccine and autism</a> (via Robert F. Kennedy's anti-vax organization, Children's Health Defense), <a href="https://www.vice.com/en_ca/article/wxevj5/the-coronavirus-truthers-dont-believe-in-public-health" target="_blank">opportunist Joseph Mercola</a>'s questioning whether the COVID-19 surge in Texas has anything to do with the novel coronavirus, and conspiracy theory-rich GreenMedInfo, whose founder traffics in ridiculous ideas, such as <a href="https://www.facebook.com/watch/?v=1720256541450732" target="_blank">germ theory being false</a>. </p><p>And so here we are: instead of reporting on pressing global issues, Reuters has to <a href="https://www.reuters.com/article/uk-factcheck-metal-strip-medical-masks-5/fact-check-metal-strip-in-medical-masks-is-not-a-5g-antenna-idUSKBN24A2O1?fbclid=IwAR2nqo5OaXP3unV7v3jOhtdGY5JjivJgyBSqrKcW0pcEJfhdGWieDb1K5C8" target="_blank">fact check</a> whether the metal strip in face masks is really a 5G antenna or if Wayfair is <a href="https://www.reuters.com/article/uk-factcheck-wayfair-human-trafficking/fact-check-no-evidence-linking-wayfair-to-human-trafficking-operation-idUSKCN24E2M2" target="_blank">involved in human trafficking</a>. (The woman that posted the "medical doctor" video above is convinced Amazon is involved as well.) No matter how ridiculous these sound—and they should, to any functioning adult—common sense is losing ground: an <a href="https://www.sciencemag.org/news/2020/05/vaccine-opponents-are-gaining-facebook-battle-hearts-and-minds-new-map-shows" target="_blank">analysis</a> of over 1,300 Facebook pages with 100 million followers shows that anti-vax agendas are becoming more influential.</p><p>When the printing press was first invented, <a href="https://apple.news/Agz3WmeyWTEKLg-9yHo2BMA" target="_blank">anyone could hire a printer</a>. The idea of objective news took some time to work out, and it is questionable that it ever did get worked out. But we're in a truly disturbing place when one of the most effective therapeutics ever discovered—the <a href="https://www.tmrjournals.com/tmr/EN/abstract/abstract321.shtml" target="_blank">millennia-old idea</a> of allowing the body to build up immunity by introducing a small dose of an offending agent—is being used as, what? A political tool? An ideological battering ram? An apocalyptic battle song sung by the woke as they laugh at all the silly sheeple? </p><p>It's impossible to tell what the end game is. Being contrarian is now its own currency. Whether or not your agenda accomplishes anything is secondary to just being on the team—a participation trophy for simply showing up. Putting in the intellectual and emotional effort demanded by the complex and nuanced realm of science is proving too much for America to tolerate. When a nation descends into such intolerance, anything becomes possible. </p><p>--</p><p><em>Stay in touch with Derek on <a href="http://www.twitter.com/derekberes" target="_blank">Twitter</a>, <a href="https://www.facebook.com/DerekBeresdotcom" target="_blank">Facebook</a> and <a href="https://derekberes.substack.com/" target="_blank">Substack</a>. His next book is</em> "<em>Hero's Dose: The Case For Psychedelics in Ritual and Therapy."</em></p>
Why do so many people encounter beings after smoking large doses of DMT?
- DMT is arguably the most powerful psychedelic drug on the planet, capable of producing intense hallucinations.
- Researchers recently surveyed more than 2,000 DMT users about their encounters with 'entities' while tripping, finding that respondents often considered these strange encounters to be positive and meaningful.
- The majority of respondents believed the beings they encountered were not hallucinations.
What are DMT beings?<p>Do DMT entities actually exist in some other dimension, or are they hallucinations that the brain generates when its visual processing system is overwhelmed by a powerful tryptamine?<br></p><p>The late American ethnobotanist Terence McKenna believed that DMT beings — which he called "machine elves" — were real. Here's how he once <a href="https://www.ranker.com/list/dmt-machine-elves-facts/inigo-gonzalez" target="_blank">described</a> one of his DMT experiences:</p><p style="margin-left: 20px;">"I sank to the floor. I [experienced] this hallucination of tumbling forward into these fractal geometric spaces made of light and then I found myself in the equivalent of the Pope's private chapel and there were insect elf machines proffering strange little tablets with strange writing on them, and I was aghast, completely appalled, because [in] a matter of seconds... my entire expectation of the nature of the world was just being shredded in front of me. I've never actually gotten over it.</p><p style="margin-left: 20px;">These self-transforming machine elf creatures were speaking in a colored language which condensed into rotating machines that were like Fabergé eggs but crafted out of luminescent superconducting ceramics and liquid crystal gels. All this stuff was just so weird and so alien and so un-English-able that it was a complete shock — I mean, the literal turning inside out of [my] intellectual universe!"</p><p>McKenna believed machine elves exist in alternate realities, which form a "<a href="https://www.irishtimes.com/culture/books/old-favourites-the-archaic-revival-1991-by-terence-mckenna-1.3924887" target="_blank">raging universe of active intelligence that is transhuman, hyperdimensional, and extremely alien.</a>" But he was far from the first to believe that DMT is a doorway to other realms.</p><p>Indigenous peoples of the Amazon basin have used ayahuasca in religious ceremonies for centuries, though no one is quite sure when they first started experimenting with the psychedelic brew. The Jibaro people of the Ecuadorian rainforest believed ayahuasca allowed regular people, not just shamans, to <a href="https://atrium.lib.uoguelph.ca/xmlui/bitstream/handle/10214/17902/RichardsonG_202004_HonThesis.pdf?sequence=3" target="_blank">speak directly to the gods</a>. The 19th-century Ecuadorian geographer Villavicencio wrote of other Amazonian shamans who used ahaysuca (known as the "vine of the dead") to contact spirits and foresee enemy battle plans.</p><p>In the West, research on DMT experiences has been sparse yet interesting. The psychiatrist Rick Strassman conducted some of the first human DMT trials at the University of New Mexico in the early 1990s. He found that <a href="https://www.erowid.org/chemicals/dmt/dmt_article3.shtml" target="_blank">"at least half"</a> of his research subjects had encountered some form of entity after taking DMT.</p><p style="margin-left: 20px;">"I was neither intellectually nor emotionally prepared for the frequency with which contact with beings occurred in our studies, nor the often utterly bizarre nature of these experiences," Strassman wrote in his book "DMT The Spirit Molecule".</p>
Manuel Medir / Getty<p style="margin-left: 20px;">"Whenever I tried to pull any information out of the entities regarding themselves, the data that was given up was always relevant only to me. The elves could not give me any piece of data I did not already know, nor could their existence be sustained under any kind of prolonged scrutiny."</p><p>It's also worth noting that not all people who smoke DMT see beings, and that some see beings that look <a href="https://www.erowid.org/chemicals/dmt/dmt_article3.shtml" target="_blank">nothing like elves or aliens</a>. The diversity of these reports seems to count against the argument that DMT beings exist in some objective alternate reality.</p><p>In other words, if DMT beings exist in some other dimension, shouldn't they appear the same to anyone who visits that dimension? Or do the beings assume a different appearance based on who's looking? Or are there many types of beings in the DMT universe, but most look like elves? </p><p>You might start seeing elves just trying to sort this stuff out.</p><p>Ultimately, nobody knows exactly why DMT beings take the forms they do, or whether they're just figments of overstimulated imaginations. And the answers might be beside the point. </p><p>In the recent survey, 60 percent of participants said their encounter with DMT beings "produced a desirable alteration in their conception of reality whereas only 1% indicated an undesirable alteration in their conception of reality."</p><p>DMT beings may be nothing more than projections of the subconscious mind. But these bizarre encounters do help some people find real meaning, whether it's through personal revelation or the raw power of ontological shock.</p>
Gender and sexual minority populations are experiencing rising anxiety and depression rates during the pandemic.
- Anxiety and depression rates are spiking in the LGBTQ+ community, and especially in individuals who hadn't struggled with those issues in the past.
- Overall, depression increased by an average PHQ-9 score of 1.21 and anxiety increased by an average GAD-7 score of 3.11.
- The researchers recommended that health care providers check in with LGBTQ+ patients about stress and screen for mood and anxiety disorders—even among those with no prior history of anxiety or depression.