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  • Chris Anderson and 'Free': The Internet's 'Law of Gravity'

    Chris Anderson , Editor in Chief of Wired Magazine , says "free"--or "Free!"--is "the future of business." Sure, free products have been with us for ages--but, as in the case of giving away cookbooks to encourage housewives to buy Jell-O, "free" hasn't always been free. But while the 20th Century notion of "free" was a marketing strategy, Anderson says in the 21st Century "free" moves beyond a psychological tool. We are living "in the world of Moore's Law." Everything gets cheaper and cheaper (following Moore's law, the cost of processing power--or the cost of a transistor--goes down by 50% every 18 months). And the marginal cost of productivity goes down to zero. So "free" has become truly free. And this is bringing radical change to the marketplace. Soon, "anything that becomes digital will be available in a free version." Anderson has new book coming out titled Free: The Future of a Radical Price , and he spoke on the subject as the keynote speaker at Wired's Disruptive by Design conference earlier this week: You can read Anderson's article on the subject from Wired here .
  • GM's Bankruptcy, New Era for Smaller, Innovative Auto Companies

    General Motors is likely to file for Chapter 11 bankruptcy early next week . This might have come as a shock a decade ago, and yet any bad news for the automaking giant raises few eyebrows today. So what is to become of the US automanufacturing business now? In the latest Wired Magazine , Charles Mann suggests we are entering a new age for the industry. One that will reward smaller, innovative companies--much like what happened in the comuter industry three decades ago: If a domestic auto industry is to survive, it will have to incorporate and encourage breakthroughs from outsiders like Transonic. Automakers will need to transition from a vertical, proprietary, hierarchical model to an open, modular, collaborative one, becoming central nodes in an entrepreneurial ecosystem. In other words, the industry will need to undergo much the same wrenching transformation that the US computer business did some three decades ago, when the minicomputer gave way to the personal computer. Whereas minicomputers were restricted to using mainly software and hardware from their makers, PCs used interchangeable elements that could be designed, manufactured, and installed by third parties. Opening the gates to outsiders unleashed a flood of innovation that gave rise to firms like Microsoft, Dell, and Oracle. It destroyed many of the old computer giants—but guaranteed a generation of American leadership in a critical sector of the world economy. It is late in the day, but the same could still happen in the car industry; it just has to harness our national entrepreneurial spirit to develop the next wave of auto breakthroughs. Read Beyond Detroit: On the Road to Recovery, Let the Little Guys Drive here .