2-1c1a4 'Commoditize your complement' tactic

2-1a6 ‘Incentives’ - Incentives drive (almost) everything. Understand your incentives.

• Mega corporations contribute to open-source projects out of self-interest, not out of charity

  • ”Commoditize your complement” - A classic tech strategy
    • For Google, the fight for operating systems spills over to the fight for search profits
    • Intel supports Linux to commoditize operating systems

• 8-2b2e Humans really care about other humans

  • 1-2g2b Humans are significant insofar as we can create knowledge

• 5-3c1 One of the lessons from the last era of the internet is that if a service needs to be built, it will probably get built — if not as a public good, then as a private good

  • 8-2b2d Value shifts to adjacent layers

In corporate networks, network-complements relation is zero-sumdevelop

• Corporate networks can’t really encourage knowledge creation in themselves whereas blockchain networks candevelop
  • But remember: 8-1b2a Most automation (and probably disruption as well) happens indirectly

If what you are competing off of is commoditized (e.g., from textbook) you’d have to differentiate yourself with something not (or cannot be) commoditized (e.g., integrity, honesty, creativity)

• 5-1b1b2b Don’t try to be the best. Be the only. 2-1c1 ‘Comparative advantage’ - If others can do it, let them
  • 8-2b2e Humans really care about other humans
    • 9-2a4 Specifically, be long volatility with people’s ability to create new knowledge

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“China awards 1.3 million engineering undergraduate degrees each year vs 130,000 in the US. Intense competition leads to widespread overcapacity and low profitability across many industries. I don’t know if Chinese manufacturers will ever make money but I came away not wanting to invest in any manufacturing business in the rest of the world.” – John Arnold on China’s manufacturing capacity

Don’t commoditize yourself.

Related:

• 5-1b1b2b Don’t try to be the best. Be the only.