The process is not only disruption of business methods but also somewhat hidden from view but probably and ultimately the worst of it is the disruption of skilled jobs to lower paid ones or to none atall.
In the UK, and USA jobs we are told by government are increasing, also self employment and small new businesses. The politicians are shouting it out as proof of ‘their policies’ working in action. Also, to compete with china with its high productivity low wage economy ours has to fall to compete, that’s why the government and politicians don’t point out the facts and the consequence’s of disruption. Its not going to happen to them is it?
Guy Standring recognises the low wage work of the emerging underclass. in his book naming them as The PRECARIAT.
The main facts are that automation due to new technologies in all sectors and powered by monopolistic internet driven new practices are hollowing out employment. But its so far invisible because enterprising people are building small/micro often service and food businesses and that low paid shelf packing, food industry, cleaning jobs and agriculture harvesting can provide people with as many as three jobs a day to keep up an average income. Of course there are more jobs, low paid ones and deceitful apprenticeships; income-wise everything is going South whilst statistics are going North. Its heading for a ‘Hunger Games Future’.
There are negative and positive effects that can now be clearly seen and understood regarding our usage of the internet. Dealing with it and exposing some of the underlying factors; mostly its fear in one shape or another, we will come to that later.
Lets first look at the disruption caused so far, to understand that it is currently and mostly becoming a race for dominance in whatever sector you care to look at. Only by being fully conscious of these trends can we look at operating better systems in favour of the majority rather than a few of the elites that control the centralisation power game; their game of overcoming their own inner fears by building power structures of wealth and influence.
One of the first industry’s to experience disruption of its power and income has been the newspaper industry with its revenue producing models of paper sales, advertising and especially classifieds being decimated by the internet. Classified ads have moved lock stock and barrel to EBAY. Advertising revenues are down and migrating to Google. Job vacancy listings have mostly scattered to websites.
Newspapers are owned by just a few, not many will mourn for their loss of power. Funny thing that still remains is the politicians that still cling to their entrenched opinions that newspapers with their shrinking readers are still disproportionately influential. Which shows how stuck in their old ways they are; as internet usage shows a continuing flow to alternative news sources.
AMAZON pushed aside an entire 500 year established industry. Destroying old book production and sales and distribution methods. They did it because nobody in that publishing industry in their arrogance believed it was possible and probably deserved their fate those monolithic book publishers, but the book-store retailers and the authors themselves got a very poor deal.
Amazon is a continuing story; as a consequence of their success they are now becoming the everything store. Observation and past experience shows too us that in the digital operations arena there is one winner and no room for secondary competition, because once established with heavy traffic on a website, dislodging it to an alternative is not a common event. Winner takes all. Controls all within its sphere of operations, and Amazon wants it all.
P-to-P streaming of music alerted the music industry and unlike the book publishers they were more aware of the consequences of inaction, such as that which befell the book publishers due to Amazon. They didn’t want a repeat in their industry, in their monopoly. So they forced, err, lobbied their political mates to make it illegal, and classed as piracy to use technology (and cleverness and savy not to mention altruism) to freely distribute music. Thus the termination of Napster was engaged upon, but without the music monoliths brining about their own alternative just the aim of demolishing competition. So others filled the vacuum. So those once in total command let in the interlopers like Apple and now Spotify and of course with Amazon and Google in on the act of stealing a new market from under the noses of the arrogant incumbents. Their prizes were snatched whilst these music monoliths were looking the other way. Now these huge music sales catalogues and streaming portfolios are dominated by internet delivery systems (streaming) are dominated by recent entrants on the scene. Fear of change paralysis the mental agility of those in top positions within incumbent markets, they don’t seem to learn and others don’t appear to be able to see their own car crash heading towards them.
Radio stations however were quick off the mark to downstream their broadcasts and playlists into internet operations. One time the music business was a monopoly shared by Radio stations and copyrighted music inscribed onto physical products on Vinyl, Tape and CD. Now its going towards a free for all with streaming being the forecasted winner.
Breaking The News: TV media is also monopolistic owned by the few, especially dominated so far with their 24 hour news anchors for the indoctrination of the many. But this is now changing rapidly. TV News, newspaper news, is dying off as more and more seek less mainstream and constricted (officially sanctioned) real live news. Its coming. Its all going to go to better more diverse front-line people, not a bad thing, not everything is bad on the internet. The old news media only shows biased propaganda approved by its owners and as a result, becoming far less powerful, even if the politicians can’t see it, because it reflects there every utterance as news! That’s why the big TV corporates media is changing to a frivolous none news based entertainment medium.
Kodak was a huge international corporation; it invented the entire industry of photography and all its offshoots. Internet networked social media combined with smart phones with high quality on-board cameras demolished the entire business in a decade, a business that took over a hundred years to grow. Instagram, Flicker, Facebook, Pinterest and others did for Kodak and other associated photographic businesses e.g. PhotoMe photo booths and the entire passport print industry was also blown away. Most uses are totally frivolous; a new psychosis: Obsessive Selfi Dissorder. And these newcomers provide tens of jobs whereas Kodak employed thousands upon thousands. This employment displacement has only just begun as many other industries will become disrupted.
FACEBOOK is beating Google on mobiles and is set to emerge as the platform winner and thus win all the advertising revenue prizes. And its you that gets the ads because your addicted to using it.
Remember these ‘social media’ platforms and search engines are there to make money from you their users. If that is not clear: they want you to pay them or use them so your usage can be used by them to sell to others. By financing the monopolistic growth of centralised services all competition and free services die out. Centralisation is no good for the growth of local economies, for local anything including politics as the more centralised anything gets the more shut out are those on the periphery; and we are all on the periphery of something or other.
Fear killed Blockbuster. To any external observer Blockbuster was well placed and with a great market presence, a great brand and established corporate identity. Blockbuster and other smaller film rental outfits were closed down by the rise of video streaming. Not because of the PirateBay types but due to others seeing the value of streaming on demand entertainment directly to the connected home TV set.
It was the inability to grasp the opportunity and to have the vision in the first place that killed Blockbuster. The managers were not capable of adopting nor embracing change and becoming a leader of it. This is an example of the paralysis of an entrenched and arrogant mindset and the fear of uncertainty, fear of change, inner fear of their own limitations. So you can begin to see that rigid incumbents in an industry sector under threat from a marauding and clever entrepreneur who seeks ambition fulfilment and power are easy prey.
BBC with its IPlayer and other incumbent TV channels are also adopting on demand and catch up TV but they are only followers not leaders like Netflix.
The banks never envisioned the concept of PAYPAL. Card shop chains never thought of Moonpig.com and Alibaba replacing strings of individual middlemen suppliers
The high street retailers are showrooms for lower cost sellers of the same or similar product supplied on-line, opening their doors to savvy shoppers with smart phones comparing at the store, and often buying elsewhere (on-line).
The displacement is set to change almost every industry and methodology
Uber – anyone can be a taxi or a delivery driver by joining Uber and the existing Taxi drivers and their firms are revolting against it. In some cities the authorities have banned Uber. But the writing is on the wall.
SKYPE will erode the telephony market.
Paypal is reducing banking profits.
3D printing will soon be producing designer clothes @ home.
McDonald’s is beginning automated order taking, soon those low paid jobs will be eradicated to no jobs atall. McD’s Touch screens.
The Netrscape millionaire is on his way to becoming a billionaire by investing his Netcape windfall into promoting and fostering more of the same sort of things. Mark Andresson along with other silicon valley venture capital vultures like Kliener Perkins – Joh Doerr and others play poker with investments for new ideas of disruption, so there will be more disrupter to come. A funny TV show about this is Silicon Valley.
Going back to the big game changers:
Facebook is also focused on utilising its dominance for advertising that is defined and aimed at the known target (us) and our likes, which they package and sell to others.
Dominance of the advertising industry is the prize and there seems to be shaping upto only two combatants: Facebook versus Google. Its going to be fought out on mobile devices. Only the outdoor advertising market is set to keep its dominance.
Clear Channel v JCDecaux fought their dominance battles in the outdoor physical billboard and poster advertising market: a hugely profitable business empire – they fought each other to a standstill and each owns the outdoor infrastructure itself. Dominance in infrastructure is one route to vast fortunes. So we have the platform battles in the mobile smart phone markets.
Outdoor advertising will become interactive with the street posters and the platform to own will be the devices used by the public. Looks currently like both JCDecaux and Clear Channel may have missed an opportunity by not becoming a mobile operator, but they probably have time and certainly the cash to buy in.
Google – Facebook – Twitter dominate the social media spaces their valuations eclipse many multinationals that produce tangible things and who employ thousands, whilst these new kids on the block have vastly fewer employees generating their services, packaging them for delivery and they are still seeking to reduce overheads; automating their processes and outputs and suppressing or absorbing any competition.
Amazon for example started out to sell books now it prints them and soon it will deliver them through its own delivery services (a forecast) Its now called: The Everything store – its sells or allows to be sold through it by associations with manufactures & suppliers just about everything. Just being so positioned sucks everything retailing and beyond into its maw.
It was supposed to be a promise of a fairer society an interconnected one with more opportunities for everyone a flattened out playing field for businesses entrepreneurs etc and a platform for ordinary people use freely and openly but the unintended results are proving the opposite case less opportunity closing enterprise sharing, less fairness etc we are the dominant corporations product purchasers – that’s all. We are in their eyes only buyers of their things and services, and to cap it all these companies are giving all our details to the government!
Its all bout reaching dominance – it’s a winner takes all event and nothing like the predictions of the digital society the connected world – the globalization panacea, were were promised; no its just the opposite of all that.
Google’s Adwords and Adsense give them control of search associated advertising with businesses bidding for the keywords associated with an individuals search linked with a relationship with their advert. As the search gateway, the entrance portal to the internet the defacto monopolist door-keeper: gives Google unprecedented power – and wealth.
And it gets worse than just the commercialisation of adverts linked to search parameters they also have another even more powerfool by product along with our search activity, with Facebook they both own personal data about all us users. (Users is a good name for our slavish addiction to their services) By just using their services we work for them, giving them their value (to advertisers) we are in fact their manufacturing arm – for free!
We should take notice that the leaders of these organisations including Apple and Microsoft are requested to join meetings with the G8 summits, the Bildeberger meetings, the WTO etc. Shows their power and the need of government to ‘steer’ it in their favour. Possibly in exchange for no legislation against them on taxation and monopolistic controls, if they feed in our activities to the governments creepy spy folks as Mr Snowden warned us that they do.
Tim Berners Lee (the inventor of the world-wide-web) has stated that the case should be the other way around, that the web should be ‘us’ focused, not dominated by service providers. We should own our own data, information and the content we generate.
Its true that the internet is providing the largest ever accumulation of wealth (power) into the hands of a very small elite. Who are using our habits and our exchanges of information and data to provide themselves with saleable information and services built from our activities. Collectively its all built out from what and how we do things on the internet. Its a collective, a gathering of all our activities linked through their search services (Google) and in social media content (Facebook).
We are lazy – they made it simple
We do have the power to take away their power over us, but it means going back to the way things were before their dominance. At one time everyone had or wanted a HOME PAGE. This page was all about what each individual wanted to say about themselves and tell to others, it was fully under personnel control, but the catch was it required skills of page building i.e. HTML capability. The search engine linking and the page building has all become extremely simplified and easy for anyone to use today, that’s the trap we all fell into. We are lazy they made it easy. We dumped our own Home Pages and used their tailor made ones for us to slip into (Facebook).
However these days its just as simple for anyone to easily build a Home Page with tools and free hosting of these pages with Word Press.
Building your own Home Page and letting your friends and family or work or business associated know its address is a simple and straightforward way to take back your power and remove theirs.
The set-up we have right now is easy to describe – get born – SHOP – die. This is the corporate view, advertising to keep the shopping going. Pressure groups that interfere with this – acting against their products is the best weapon we have.
Otherwise the future could be bleak:
A good read on that develops this theme is:
NEXT: Some Options to Change the adversities of Change > coming soon
But for now consider this.
Vote sensibly for truth candidates: Common Sensibility.
Drop out of Facebook.
Switch off the TV or be at least more selective.
Don’t use Google, use StartPage.
Create a Home Page and dump Facebook
Better Leadership – leadership training not ‘paint balling’