Monopoly job killers
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Monopoly job killers

Summary
Scott Galloway argues that Apple, Amazon, Facebook and Google are monopolists is a power relation within:
  • A state in which a group has enough power to enforce its will on other citizens.  If this is a central authority with a cohesive military, it can overpower other warlords and stabilize the society. 
  • An economy in which one business has enough share in a market segment to control margins to its advantage.  An economic monopoly can be broadly beneficial: AT&T monopoly, US patent monopoly rights;
that trade workers for technology.  Monopolies that he argues should be broken up to ensure the return of a middle class. 

Following our summary of his arguments, RSS is Rob's Strategy Studio comments on these arguments assuming they relate to a complex adaptive system (CAS).  While Scott's issue is highly significant his analysis conflicts with relevant CAS history and theory. 

Silicon Valley's tax-avoiding, job-killing, soul-sucking machine
In Scott Galloway's article 'Silicon Valley's tax-avoiding, job-killing, soul-sucking machine' he describes and analyses the impact of the four high technology
This page discusses the effect of the network on the agents participating in a complex adaptive system (CAS).  Small world and scale free networks are considered. 
power nodes
on the US economy is the study of trade between humans.  Traditional Economics is based on an equilibrium model of the economic system.  Traditional Economics includes: microeconomics, and macroeconomics.  Marx developed an alternative static approach.  Limitations of the equilibrium model have resulted in the development of: Keynes's dynamic General Theory of Employment Interest & Money, and Complexity Economics.  Since trading depends on human behavior, economics has developed behavioral models including: behavioral economics.  .

Galloway is an academic, lecturing at NYU's Stern School of Business about digital marketing and brand strategy.  His students are grateful for jobs at Amazon.  And he has also benefited from the e-commerce hub.  The growth of Amazon and Apple stock has powered his investment portfolio.  His 1997 startup Red Envelope leveraged the e-commerce platform.  His 1992 startup Prophet gained capabilities from Google, and by 2010 his L2 was benefiting from Facebook's platform driven catalysis, an infrastructure amplifier.  

From this position leveraging major network hubs, Galloway explains why these 'big tech' companies: Amazon, Facebook, Google and Apple; became so highly valued by the stock markets.  He concludes their success is visceral:
After two decades of experience and study of: Apple, Amazon, Facebook and Google; Galloway concluded it is time to break up big tech.  He has seen a variety of justifications for breaking them up.  They:
  1. Destroy good jobs - Uber has transformed middle class jobs into self-employed roles without benefits.  P&G and Intel generated $2.1 million in revenue per employee.  Facebook generates $23.4 million per employee.  Google is capturing advertising from old world value delivery system pulled onto its digital delivery network employing 200,000 less people to generate the value.  
  2. Are evil - Big Tech argue they are replacing the 'evil empire' of Microsoft, but Galloway suggests they are no better.  "Don't be evil" is just PR.  They are for-profit businesses with employees.  But they have revenues larger than the Manhattan and Apollo programs.  They avoid paying their share of taxes.  And they have enough profit to be able to invest in protecting the vital digital hubs that we depend on but they don't.  Instead they have allowed themselves to become weapons of foreign nations!  
  3. Are more powerful than the US is the United States of America.   government.  Congressmen are deferring to high tech. companies to build the first line of defense against digital attackers.  The products Facebook, Google and Apple are delivering are designed to be powerfully addictive but are not regulated by the F.D.A Food and Drug Administration. 
    .  So Galloway wants the nation's defense to be provided by the state. 
Galloway asserts there is a more important reason to break up the big four.  They are destroying the middle class:
RSS is Rob's Strategy Studio notes that the:
This chronology suggests the US middle class has been undermined by: Tax policy changes, Disruption by US integration of a low cost global supply chain; with most politicians now more interested in leveraging the wealthy.  Gordon notes these policies undermine US growth.  He also demonstrates that computing technology has struggled to have a broad impact on the economy, undermining Galloway's justification for anti-trust action. 

Still it may be beneficial to apply anti-trust enforcement to these powerful companies if, like IBM in the 1980s, they are a constraint on broader leverage of recent inventions.  Undoubtedly, positive return, W. Brian Arthur's conception of how high tech products have positive economic feedback as they deploy.  Classical products such as foods have negative returns to scale since they take increasing amounts of land, and distribution infrastructure to support getting them to market.  High tech products typically become easier to produce or gain from network effects of being connected together overcoming the negative effects of scale. 
economics, while attractive to venture companies, generates winner take all conditions. 

Government monopoly is a power relation within:
  • A state in which a group has enough power to enforce its will on other citizens.  If this is a central authority with a cohesive military, it can overpower other warlords and stabilize the society. 
  • An economy in which one business has enough share in a market segment to control margins to its advantage.  An economic monopoly can be broadly beneficial: AT&T monopoly, US patent monopoly rights;
focus, on IBM, was enough to counter this wealth capturing effect, by forcing open nascent markets where the whole high technology development is a phase during the operation of a CAS agent.  It allows for schematic strategies to be iteratively blended with environmental signals to solve the logistical issues of migrating newly built and transformed sub-agents.  That is needed to achieve the adult configuration of the agent and optimize it for the proximate environment.  Smiley includes examples of the developmental phase agents required in an emergent CAS.  In situations where parents invest in the growth and memetic learning of their offspring the schematic grab bag can support optimizations to develop models, structures and actions to construct an adept adult.  In humans, adolescence leverages neural plasticity, elder sibling advice and adult coaching to help prepare the deploying neuronal network and body to successfully compete. 
process would begin again allowing additional companies to generate outsize profits and wealth for their stock holders! 

The father of, McClure's magazine journalist, Ida Tarbell, experienced firsthand the destruction of his oil production business through railway monopoly price manipulation, at the behest of John D. Rockefeller, building his Standard Oil trust:
This benefit to the railway was highly analogous to that of working with IBM, where its power and control ensured a predictable, architected stream of products that could be planned and budgeted for, and which generated little competitive uncertainty: Major corporations all used CICS is IBM's Customer Information and Control System, a teleprocessing networked, transaction processing monitor that supported the operation of customer transaction programs.  It was the choice of IBM 360 & 370 mainframe customers performing centralized database queries and updates from their retail outlets. 
! Mainframe upgrades were predictable even if they were costly.  No one got fired for using IBM in the 1970s. 

During the period 1870 to 1940 monopolies in oil, steel, and railways had been broken up while telephones were allowed to remain due to the relative success of US telephone deployment compared to all other countries.  After the Second World War the positive return, W. Brian Arthur's conception of how high tech products have positive economic feedback as they deploy.  Classical products such as foods have negative returns to scale since they take increasing amounts of land, and distribution infrastructure to support getting them to market.  High tech products typically become easier to produce or gain from network effects of being connected together overcoming the negative effects of scale. 
economics of telephony and computing ensured monopoly power assisted AT&T and IBM.  There were significant inventions generated in the research labs of these powerful giants.  But Gordon makes it clear that computing deployment had limited impact on economic growth.  RSS notes the constraints emanating from the IBM 'monopoly':
A new area of monopoly power derives from
Plans emerge in complex adaptive systems (CAS) to provide the instructions that agents use to perform actions.  The component architecture and structure of the plans is reviewed. 
schema
and signals, is an emergent capability which is used by cooperating agents to support coordination & rival agents to support control and dominance.  In eukaryotic cells signalling is used extensively.  A signal interacts with the exposed region of a receptor molecule inducing it to change shape to an activated form.  Chains of enzymes interact with the activated receptor relaying, amplifying and responding to the signal to change the state of the cell.  Many of the signalling pathways pass through the nuclear membrane and interact with the DNA to change its state.  Enzymes sensitive to the changes induced in the DNA then start to operate generating actions including sending further signals.  Cell signalling is reviewed by Helmreich.  Signalling is a fundamental aspect of CAS theory and is discussed from the abstract CAS perspective in signals and sensors.  In AWF the eukaryotic signalling architecture has been abstracted in a codelet based implementation.  To be credible signals must be hard to fake.  To be effective they must be easily detected by the target recipient.  To be efficient they are low cost to produce and destroy. 
shared by users of big tech's products and services with these central network nodes.   Capturing the details, and analyzing them, with big data encompasses the IT systems and processes necessary to do population based data collection, management and analysis.  The very low cost, robust, data storage organized by infrastructure: HADOOP; allows digital data to be stored en mass.  Data scientists then apply assumptions about the world to the data, analogous to evolved mechanisms in vision, in the form of algorithms.  Rather than depending on averages, analysis at Verisk drills down to specifics and then highlights modeling problems by identifying the underlying CAS.  For the analysis to be useful it requires a hierarchy of supporting BI infrastructure:
  • Analytics utilization and integration delivered via SaaS and the Cloud to cope with the silos and data intensive nature. 
  • Analytics tools (BI) for PHM will be hard to develop.  
    • Complex data models must include clinical aspects of the patient specific data, including disease state population wide.  
    • A key aspect is providing clear signals about the nature of the data using data visualization. 
  • Data communication with the ability to exchange and transact.  HIEs and EMPI alliance approaches are all struggling to provide effective exchange. 
  • Data labeling and secure access and retreival.  While HIPAA was initially drafted as a secure MPI the index was removed from the legislation leaving the US without such a tool.  Silos imply that the security architecture will need to be robust. 
  • Raw data scrubbing, restructuring and standardization.  Even financial data is having to be restandarized shifting from ICD-9 to -10.  The intent is to transform the unstructured data via OCR and NLP to structured records to support the analytics process. 
  • Raw data warehousing is distributed across silos including PCP, Hospital system and network, cloud and SaaS for process, clinical and financial data. 
  • Data collection from the patient's proximate environment as well as provider CPOE, EHRs, workflow and process infrastructure.  The integration of the EHR into a big data collection tool is key. 
facilities including categorization with deep neural networks are representational models that achieve high performance on difficult pattern recognition problems in vision and speech.  But they need specialized training methods such as greedy layerwise pre-training or HF optimization.  , enables 'big tech' to setup seductive and highly profitable
This page reviews the strategy of setting up an arms race.  At its core this strategy depends on being able to alter, or take advantage of an alteration in, the genome or equivalent.  The situation is illustrated with examples from biology, high tech and politics. 
evolved amplifiers
.  Some of these offers are beneficial to the users.  And the huge profits have allowed 'big tech' to invest heavily in innovative is the economic realization of invention and combinatorial exaptation.  While highly innovative, monopolies: AT&T, IBM; usually have limited economic reach, constraining productivity and supporting the use of regulation, or even its threat, that can drive their creations across the economy. 
research and development:

A more fundamental problem with Galloway's proposal is that any wealth generated by current US policies cannot flow to a middle class.  That would require more consequential changes than Galloway suggests.  Four policy alternatives have been observed over the last 2000 years:
  1. Middle ages' agrarian power hierarchies, with
    Peter Turchin describes how major pre-industrial empires developed due to effects of geographic boundaries constraining the empires and their neighbors' interactions.  Turchin shows how the asymmetries of breeding rates and resource growth rates results in dynamic cycles within cycles.  After the summary of Turchin's book complex adaptive system (CAS) theory is used to augment Turchins findings. 
    dynamics described by
    Turchin
  2. A Roman republican system capturing wealth through conquest and transferring it to: an increasingly land rich powerful elite minority, and an increasingly land poor majority providing the soldiers and workers; subsequently sustained by handouts of treasure.  Once the surrounding nations have been vanquished the aristocratic elite will attack its self.  
  3. Resources captured through conquest, to feed economic engine with added fossil fuel enabling expansion.  Eventually hits limit and must be destructively reset like 2. 
  4. The 1940s US driven scenario, which Galloway desires.  But this can be seen to be a special case of prior war perturbed capture of land (from American natives) and post war capture of markets from UK, Europe & Japan.  The wealthy aim to collapse case 4 back to 3, but this eventually leads to comparative weakness (ancient regime France & Jeffersonian US vs. England).  Maintaining 4 requires fending off the wealthy and continuous improvement cycles to match skills & tasks to evolving niches.  All four scenarios destabilize across metaethnic boundaries. 
To return to Galloway's 1940's scenario would require:
From the perspective of
This page introduces the complex adaptive system (CAS) theory frame.  The theory is positioned relative to the natural sciences.  It catalogs the laws and strategies which underpin the operation of systems that are based on the interaction of emergent agents. 
John Holland's framework for representing complexity is outlined.  Links to other key aspects of CAS theory discussed at the site are presented. 
CAS theory
:

Scott Galloway's dramatic article calls attention to the problems of inequality and the power of Apple, Amazon, Facebook and Google.  It's a starting point for assessing the benefits and problems of high technology monopolists is a power relation within:
  • A state in which a group has enough power to enforce its will on other citizens.  If this is a central authority with a cohesive military, it can overpower other warlords and stabilize the society. 
  • An economy in which one business has enough share in a market segment to control margins to its advantage.  An economic monopoly can be broadly beneficial: AT&T monopoly, US patent monopoly rights;
in the US is the United States of America.   economy. 




























































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This page looks at schematic structures and their uses.  It discusses a number of examples:
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Each goal has a series of associated complex adaptive system (CAS) strategy strings. 
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  • A business can gain focus from targeting key customers,
  • Business planning activities performed by the whole organization can build awareness, empowerment and coherence. 
  • A program approach can ensure strategic alignment. 
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