Posts tagged ‘capital’


Creating real value, and that’s not what Facebook and Twitter do

17.06.2014

My forced Facebook sabbatical came to an end in the late morning. So what did I think of it all?
   One of my Tweets last night was: ‘I hope [it is temporary], though I have found people out for 7–12 days now. Now it’s Monday I hope they have got over their hangovers!’ At the time I thought: this Facebook is probably not a 24-hour operation. These guys are probably off for the weekend, and they work part-time. We might see them on Monday morning, US time, or whenever they come back from Thanksgiving, Memorial Day, Bill Cosby Day, or whatever it is they celebrate over there. Oh, it’s California, so they are probably stoned.
   Sixty-nine hours weren’t quite enough to break my habits, though they were beginning to change. No more was I looking up Facebook in bed before I go to the office, or having a quick gander at night. But on the desktop, I left one tab open, which would always draw me there to have a glance at what friends were up to.
   The timing was a bit exceptional: we had the top 23 pages for the Miss Universe New Zealand 2014 finalists to launch. Had it not been for that, I wonder if I would have bothered with Facebook at all. I had queries to field, direct messages to respond to.
   The direct messaging is obviously separate from the rest of Facebook, as it was the one thing that hadn’t failed. But everything else was worsening: initially losing liking, commenting and posting, then losing the fan pages I administered. Friends could not see my wall, while a few who could see it tried to like things and were given errors. Aside from a few exceptions, no one seemed to think this was out of the ordinary and worth chatting to me about. Not that I mind this: they could all get in touch with me via other media. But this signals that it is OK to get an error when liking something, and shrug it off as temporary, because we believed Facebook when it told us to try again in a few minutes. Never mind that in Facebookland, ‘a few’ means 4,000. We have low expectations of these dot coms.
   So when people joke about how these things always tend to happen to me, I wonder. I’ve always maintained they happen to us all. Maybe the difference is I don’t believe these buggers when they tell me that things will be back in a few minutes, because invariably they don’t. So I put an entry in to Get Satisfaction, or on this blog, so others don’t feel they are alone.
   And if I had found the limits of the site—because I believe on Vox I did in 2009, when exactly the same thing happened, and the techs had no way out—then Facebook should know about this.
   Facebook was, through all of this, useless. It had closed down its Known Issues on Facebook page, which seemed foolhardy, because this certainly was a known issue with the increasing number of Tweets about it. There were no acknowledgements, and most of the time, feeding anything into its report forms resulted in errors. Sometimes I got a blank screen. Its own help pages told you to do things that were impossible. If it were any other firm, people would be crying bloody murder or wanting their money back. (And I am technically a customer, through my mayoral campaign last year.)
   A few other accounts came back, for the people I interacted with on Twitter and Get Satisfaction in the same predicament.
   So what now? I might Facebook less. The 69 hours were a good reminder. One of the things I had watched during the sabbatical was the following video via Johnnie Moore, where Douglas Rushkoff speaks about how these big innovators aren’t really adding value, only capital. He gives the example of Twitter:

The company that was going to be the maker of things now has to be the site where he aggregates the other makers of things … so that you can show multi-billion-dollar returns instead of the hundred millions that you were doing … You know, for Twitter, I just saw yesterday, they’re failing! Only $43 million last quarter! Isn’t that awful? Oh my God! Only $43 million, which is, I mean, how many employees do they have? I think that would be enough but their market cap is so outlandishly huge, so much money has gotten stuck in there, that they’re gonna be stuck looking for a new way to somehow milk more money out of an otherwise great tool and they’re gonna kill it. They have to—they have to, ’cause they need that home run.

   Can we expect there to be greater innovation in such an environment, for any of these platforms? If we aren’t feeling the same buzz we once did with these sites, there’s a good reason, and the above is part of the problem. They aren’t creating value any more, only market cap and stock, or, as Rushkoff says, ‘static capital.’

This is what [Thomas] Piketty was really writing about … Capital has the ability to actually create profit, so all these companies, all this development, are really just different versions gaming the system rather than rewiring the system, rebooting it, which is the opportunity here.

   I spent part of the last few days looking at the PDF proofs for Lucire Arabia, where at least I know I am part of making something that is creating value and, through its content, helping people. While my original motive for being on Facebook et al was promotional, for my businesses, I have to question if that was the best use of my time, and for creating value. Facebook organized my friends, as Google organized the web—now that those are done, there is the next step.
   I left Vox—or rather, Vox left me when the site died and I was no longer able to post—and put more time elsewhere, namely into my first mayoral election campaign. I knew I was creating an opportunity to help people, and the upshot of that is the free wifi system we have in Wellington today (ironically probably very heavily used to update Facebook). It meant more than a means to Facebook and Instagram: the bigger picture was to signal to the tech sector that Wellington is open for business, and that we aren’t being left behind in an industry that can create frictionless exports and intellectual capital.
   We aren’t quite there again in 2014, as Facebook is back, but it may be worth contemplating just where I’m creating value for business and society when it’s not election year. This year, I don’t have a book planned—but it may have to be something where a good bunch of people are going to get some benefit.

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