efficiency
Netflix vs Blockbuster – Perfect example of an industry replaced by a more efficient version of itself
The chart of revenues below says it all. The beginning revenue of Blockbuster was $6 billion, while the ending revenue of Netflix is $2.2 billion. When the inefficiencies of having retail locations, moving physical inventory, and maintaining overhead/staff are cut out of the ecosystem, far less revenue is needed to support the whole business.
How Google Crunches All That Data
Source: http://gizmodo.com/5495097/how-google-crunches-all-that-data
If data centers are the brains of an information company, then Google is one of the brainiest there is. Though always evolving, it is, fundamentally, in the business of knowing everything. Here are some of the ways it stays sharp.
For tackling massive amounts of data, the main weapon in Google’s arsenal is MapReduce, a system developed by the company itself. Whereas other frameworks require a thoroughly tagged and rigorously organized database, MapReduce breaks the process down into simple steps, allowing it to deal with any type of data, which it distributes across a legion of machines.
Looking at MapReduce in 2008, Wired imagined the task of determining word frequency in Google Books. As its name would suggest, the MapReduce magic comes from two main steps: mapping and reducing.
The first of these, the mapping, is where MapReduce is unique. A master computer evaluates the request and then divvies it up into smaller, more manageable “sub-problems,” which are assigned to other computers. These sub-problems, in turn, may be divided up even further, depending on the complexity of the data set. In our example, the entirety of Google Books would be split, say, by author (but more likely by the order in which they were scanned, or something like that) and distributed to the worker computers.
Then the data is saved. To maximize efficiency, it remains on the worker computers’ local hard drives, as opposed to being sent, the whole petabyte-scale mess of it, back to some central location. Then comes the second central step: reduction. Other worker machines are assigned specifically to the task of grabbing the data from the computers that crunched it and paring it down to a format suitable for solving the problem at hand. In the Google Books example, this second set of machines would reduce and compile the processed data into lists of individual words and the frequency with which they appeared across Google’s digital library.
The finished product of the MapReduce system is, as Wired says, a “data set about your data,” one that has been crafted specifically to answer the initial question. In this case, the new data set would let you query any word and see how often it appeared in Google Books.
MapReduce is one way in which Google manipulates its massive amounts of data, sorting and resorting it into different sets that reveal new meanings and have unique uses. But another Herculean task Google faces is dealing with data that’s not already on its machines. It’s one of the most daunting data sets of all: the internet.
Last month, Wired got a rare look at the “algorithm that rules the web,” and the gist of it is that there is no single, set algorithm. Rather, Google rules the internet by constantly refining its search technologies, charting new territories like social media and refining the ones in which users tread most often with personalized searches.
But of course it’s not just about matching the terms people search for to the web sites that contain them. Amit Singhal, a Google Search guru, explains, “you are not matching words; you are actually trying to match meaning.”
Words are a finite data set. And you don’t need an entire data center to store them—a dictionary does just fine. But meaning is perhaps the most profound data set humanity has ever produced, and it’s one we’re charged with managing every day. Our own mental MapReduce probes for intent and scans for context, informing how we respond to the world around us.
In a sense, Google’s memory may be better than any one individual’s, and complex frameworks like MapReduce ensure that it will only continue to outpace us in that respect. But in terms of the capacity to process meaning, in all of its nuance, any one person could outperform all the machines in the Googleplex. For now, anyway. [Wired, Wikipedia, and Wired]
Image credit CNET
Memory [Forever] is our week-long consideration of what it really means when our memories, encoded in bits, flow in a million directions, and might truly live forever.
The Machine is Us/ing Us
Great video of the evolution of the Internet; how its basic features changed the habits and expectations of users and therefore changed entire industries forever. It takes the viewer from web 1.0 to web 2.0 to web 3.0 and explains the transitions and the tipping points that once passed lead to irreversible changes. Industries trying to hang on to old business models and processes will die and be replaced by new industries operating at new plateaus of efficiency.
Notes from the Field: Made Up Words; Digital Jargonisms
web potato – the new couch potato
digital natives – the kids who dont know what newspapers are or what linear TV is
digital immigrants – old(er) ad execs who arrived on the island of digital, praying someone would save them from it help them figure it out
professional malpractice – preaching about digital when you’ve never tweeted or facebooked
obd – obsessive branding disorder
twinterns – interns who were hired to twitter
timeshifting – watching TV at whatever-the-hell-time they want
placeshifting – watching TV at whatever-the-hell-place they want
addressable audience – old(er) ad execs thinking digital gives them more tools to target (address) individual consumers with unwanted ad messages
niche-busters – blockbusters but for smaller (niche) audiences
analog dollars for digital dimes – with the greater efficiency and measurability of advertising in digital mediums, for every dollar taken out of analog mediums, only dimes need to be put back into digital to achieve similar or greater effect
I know I am wasting half of my ad dollars; I just don’t know which half — is more like “I know I am wasting 99% of my ad dollars” (banner ad click through rates are generously at 1%, which means the other 99% is known to be, for sure, wasted — no more guessing necessary).
measured media = TV, print, radio — which equals not really measurable at all
(old) branding – the process of systematically duping customers into buying inferior products by mis-information, dis-information, and lying
(new) branding – consistently delivering on the promise of superior products through rapid, customer-driven innovation
re-intermediation – re-insertion of a digital middleman whose job it is to filter, prioritize, and deliver only what is relevant and timely
click farms – banks of low-wage workers who click google ads to earn a living rather than do farming
Digital Consigliere
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Prototype Web Services
- drag2share – quickly share news items by drag and drop on email addresses
- LivePhotoFrame – upload and remotely manage a digital photo frame via unique URL
- MedleyTuner – create a continuous listening experience by uploading mp3s
- MusicSamplr – discover new artists and music, listen to samples
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- Signatory – sign and date a document and verify it hasn't been altered since that exact time.
- WebTeleprompter – just what it says it is




