Well, Chris Anderson over at WIRED just published yet another article that is sure to get its fair share of praise.  I’m sure it will gain a following and eventually be another book, following up “Free” and “The Long Tail“, both of which essentially started as articles in the mag.  I will start by saying I’m a fan of Chris and his work.  Those two books are some of my favorite business-ish books. Well, on to the article.  This latest incarnation of thought is titled “The New Industrial Revolution” as it is emblazoned on the cover of the February 2010 issue, or “Atoms are the New Bits” as titled within (I don’t know what they want it called).  The line of thought in this piece can be seen not only in Chris’s previous works but many strains of it can be seen throughout WIRED over the past few years. One of the key points that I’d like to highlight regards community & open-source development.

As seen in both Free and The Long Tail, community and open-source are the future of industry, advancement, and entrepreneurship. Even large, blue chips are taking part to some degree.  Take Microsoft’s decisions to open beta-test its latest Windows and Office packages as an example.  Other companies are entirely based on these community participation models. This free or near-free participation and approach has been tested, and proven, with the web and the constant content generation found there. Now, as can be interpolated from the article title, the open-source and open availability of these digital bits is being translated into near-free atoms! Actual physical products and goods are the next step to prove the concept of opensource.  As we translate all the content, development, and innovation of the web into physical products, entrepreneurial opportunity will explode and prices, competition, and innovation will accelerate at levels unseen. Now, resistance will obviously occur, but pressing forward will yield tremendous return.  Threadless is one company that is a common example of this opensource bits-to-atoms process, and a good one at that.  They have demonstrated the win-win possibilities of the model in creating not only more unique, high-quality products but at reasonable prices with low-overhead, high profit business returns. This is only the beginning, of course, as Chris introduces us to much more complex possibilities than t-shirts.

Take Local Motors as an example that he mentions.  They have actually begun production on a car that was designed and voted on by a community, in fashion of Threadless’ t-shirts.  It will be built mostly using “after-market” parts and assembled individually as orders come in.  Interestingly, Local Motors follows a model described in another WIRED article found back in June here. Currently Local Motors is coming out as a niche company, giving little competition to the major car conglomerates but that will likely change as Local Motors develops or others come into the game.  This is only the beginning! Local’s design-to-market turn around is a distant dream to any detroit competition.  As Chris states:

the company says it can take a new vehicle from sketch to market in 18 months, about the time it takes Detroit to change the specs on some door trim.

Even better is the open availability of the design plans under creative commons license.  This allows components, add-ons, mods, and more to be created by anybody, unveiling countless other business possibilities. This is just one example of companies taking technology, community, and open-source to the world of physical products, to “atoms”.  Many other examples may not scale like Local Motors nor have the desire to do so.  The fact is many small entrepreneurial ventures, with today’s technology and tools, have the opportunity to compete with the behemoths or simply fill niches that are untouchable by them.  It is a beautiful thing to behold.  And we aren’t talking about the digital realm here.  This is manufacturing, production, products, this is atoms!  With simple tools such as 3D printers (for less than a grand), access to custom limited-run manufacturing at remarkably affordable prices (thanks again internet), and open community feedback, the opportunity pool is much deeper than it used to be!  Even nuclear power is being approached with this technique as I discussed here regarding yet another WIRED article.  Like I said, this theme can be seen throughout their articles over the last while.

So what does all this mean for the entrepreneur?  Well, if you haven’t picked it up already, its all about endless opportunity and open, community development of ideas!  With that in mind, what do you think? Any other great examples of similar business models in use?  Let me know!!

Entrepreneur Magazine’s November issue featured an article regarding a new-ish concept that Starbucks has embarked upon.  Many companies carry a common goal, a desire for international brand recognition and dominance.  Well, in some industries, that may not be the way to go.  Starbucks, one of those international branding phenomena, is actually “hiding” their brand within a few new locations.  What?! Yes, they are practically invisible as the the backer of a few new shops being opened.  With a billion dollar namesake, why would you forsake it? Well, coffee happens to be an area where indie is in.  Local, hip, one-of-kind, shoot-from-the-hip, is desirable.  People like their coffee shop, not some international cookie-cutter.  The new “15th Ave Coffee & Tea” is just that, local, hip, and still Starbucks (although you may not realize it).  The new coffee house features many ideas and innovations typically found only in local establishments with a coffee connoisseur founder.  That is in-part because of the liberty given to the new shop to run as such.  Protocols are a little more liberal but carry the support and resources of a powerhouse company in Starbucks.  Also, Starbucks is not the only one embarking on this trend.  As the article points out, Great Harvest Bread Co. has done this since the beginning. Similar ideas are coming out of Marriott Hotels and others.

Sustainability is a common term, often referring to some energy-efficient lifestyle choice or other “green” concept.  The goal being to create lifestyles, energies, and other things that are, yes, sustainable over the long term.  Using renewable resources that won’t wound the world more than it helps.  Sustainability is really the ability of any concept to continue onward running on its own production and energy.  In physics, the ultimate in sustainability would be a “perpetual motion machine“.  Although these don’t exist and even violate laws of thermodynamics, they would be the ultimate example of sustainable ideas.  They utilize energy they create to fuel themselves with 100% efficiency.
In the movement to affect world change, to progress society forward, to enhance the lives of those around us, from the poorest poor to the richest rich, sustainability can be a very valuable trait to any good strategy.  If it is temporary, like a loaf of bread to a starving person, it is good, but if it gives someone a lifetime of bread through seeding and farming, it is great and sustainable.

The greatest sustainable concept: Entrepreneurship

One of the reasons I am passionate about entrepreneurship is its uncanny ability to strive for sustainability. 

A recent TED talk by Tim Brown attempts to bring the industry of design from simple aesthetics to mainstream innovations and accelerated human progression.  Are you a designer?

I am somewhat a tech junkie for those who don’t know.  Although I may not always have the newest coolest gadgets, I’m simply fascinated by advancements, innovations, and breakthroughs in technology.  Right now Netflix is of interest to me as they continue against the grain of good ol’ fashioned cable.  Among the leaders of the internet TV movement, they are spearheading the campaign to unlimited, on-demand content availability via the web.  Needless to say, I like it!  I’ve been impressed with companies like redbox and their business model for simple, cost-effective dvd availability but as with much of today, these other concepts are simply side roads on the path to our new cloud reality.  In Wired magazine’s latest issue, they highlight Netflix’ bold moves and risks here.

Hastings [CEO] planned to one day deliver the entire recorded output of Hollywood, instantly and in high definition, to any screen, anywhere…

Netflix has taken the boldest step yet toward a world in which consumers, not programmers, determine not only what they watch but when, where, and how. The dream of routing around cable companies just may be in sight…

It is odd, in an era when the Internet seems able to worm its way into every part of life, that nearly all of us still watch television the old-fashioned way, piped over cable or beamed in by satellite and available only in bloated packages of channels programmed by network executives…

That’s not to say there are not obstacles, even substantial ones. Cable companies are beginning to make attempts with various web-based offerings attempting to route out not only Netflix but the internet TV movement, especially the “free” side of that movement.