The Emperor has no clothes

The Intuition Economy

Posted in Internet Economy by williamdyson on November 23, 2005

It is clear that the evolution of business models on the internet are moving forward at a much more rapid pace than very off line models. Most of the services that are now considered to be in danger from new models were considered cutting edge not long ago. For some it has only taken about 5 years for there model to begin to show the chinks of growing obsolesce

I think that this is due to the fact that as companies grow very large they cannot no linger act quickly, and the new rules that are put in place to organize growing companies slows down innovation and snuffs out intuition. A major impact on the speed of extinction for some of these models is the fact that complete application to test the market for validation can now be developed and deployed very quickly.

I think that many of the models for analysis and use of information to make a business decision (Velocity) no longer work as the time that you have to make the decision has collapsed to the point that the analysis must now be done at the speed of intuition. Because of the compression of time that companies have to make decisions I think that we are in a new phase of intelligence on the internet. I think that this is going to very much be “The Intuition Economy�?. This is an era where the flashing speed of intuition is a company’s most valuable asset. The amount of information that can be collected for an analysis of a decision can be very large. The time to gather this information even using computers is not fast. Once you gather this information it must be filtered down to an amount that can reasonably be acted on by a human. In most companies many individuals would need to meet over a span time to discuss the information and how to act on it. Today on the internet in many area this will no longer work. By the time that the decision is made using the old process the intuitive company has acted and in a sense is in the future of the process.

Applications that are built very open can survive in the intuition economy as there is very little cost in adding new functionality. In fact the cost of adding the new functionality is far less than the cost of not adding it.

Two companies that are good examples of this currently are Goolge and Apple. They are different in what they do (at this moment) but they both are very intuitive. At Apple Steve Jobs is the intuitive force. The company is run very top down with Mr. Jobs intuition and experience being the driving force behind all decisions. Because of this Apple with itunes and the ipod have been able to make decisions and act on them at a speed that has crushed all competitors. By the time they decide on how to compete he is 5 to 10 steps ahead…and in the future; knowing and creating what is next…not guessing..

Google is a mixture of bottom up and top down. As a company they allow the intuition of their developers to bubble to the top and then the two founders decide or intuit what will be next. I think that this shows very much in there varied offerings and their scattered technology and architecture. Because of the intuition that they have harnessed they have left all of there competitors in the past while they also know and create what is next…


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