How the internet is transforming the economy

The 'Pareto Principle'- the idea that 20 percent of products generate 80 percent of turnover - may not always be rock. In 2004, the editor in chief of Wired, Chris Anderson claimed that nearly everything is offered for sale on the internet is also actually sold- however bizarre or unnecessary the product.
It appears that business is gravitating to where there is variety instead of uniformity.

Anderson use a demand curve to illustrate his claim. On the far left, the curve rises shortly upwards. Here the best sellers in the blockbusters account for 20 percent. Then the curve levels out gently to the right this is where we find the less popular books & films. It's part of the curve is much wider spanning many more products than the peak. Instinctively one would think that 'Pareto Principle' is right, the best sellers (20 percent) are more profitable than the rest Sales (80 percent). But the figures suggest something different. The long Tail as Anderson calls it, achieves a higher turnover than a few best sellers.

The internet is the worlds largest library. Its just that all the books are eon the floor. John Allen Paulos

THE MONTE CARLO SIMULATION MODEL

 The number pi (3.1415927...) is what mathematicians call irrational. It never be written out in full. It continues for an infinite number of decimal places in a seemingly random sequence of digits. Randomness is found in many phenomena that we would like to be able to predict, such as changes in the weather or movements in share prices. Inspired by the casino city Monte Carlo , a computer simulation method is being developed to calculate these apparently incalculable phenomena.

If you roll the dice you know that it will get a 1,2,3,4,5 or 6, but what you don't know is which of these numbers you will get within a given roll. This is exactly how the Monte Carlo simulation works. By running multiple trials based on random sampling to determine an outcome. Using a combination of probability calculation and statistics.

Why is the Monte Carlo model important? Because it reminds us that models do not represent reality. I simply approximation of reality.

If I know exactly what I'm going to do what's good in doing Pablo Picasso. 

THE GAP IN THE MARKET MODEL

Positioning is like drilling for oil close is not good enough.
How to recognise a bankable idea. The goal of every need businesses to discover an unoccupied gap in the market, but what is the best way of proceeding?
The gap in the market model helps by depicting a mock scenario.
Draw 3 axis and measure the development of your customers in future products.
Say that you want to launch, a new magazine. At Each stage, How well known is the product? How loud is your partner? Position your competitor's products on the areas. If you are densely competitor you should enter your business model only has the potential to be a category killer.
For example Grazia was able to conquer the already crowded by woman's weekly. By combining sophisticated fashion news, with its strictly 'A list clients'.
Look for in a an area that is being overlooked and is not yet occupied.
The away if the area is completely empty you should check whether there is a demand for it.

THE POWER OF SOCIAL PARTICIPATION

Micro mavens understand the power contexts and nuances of the social web, they get the fact that social networking is done strategically with enthusiasm and authenticity. You can launch your personal brand and your philosophies and ideas into the cyber-stratosphere.

Writing compiling original content for a blog, podcast or online video show is absolutely critical, but it's only one piece of the social web puzzle.
1. New content
2.  Social participation.

Social participation to me is regularly connecting and interaction with people via the likes of Twitter, Facebook, Linkedin and Google+ along with commenting on other people's blogs, sharing links and liking other people's content, attending meet ups and tweet ups and Social Media events together.
In other words getting involved in and values of the online community in general. Non conformists Chris Guillebeau understands this better than most. He spends half his time creating things and the other half connecting with people, understanding the importance of relationship marketing. Authority Mari Smith is big on getting the balance right too, she says that content is king engagement is Queen and she rules the house.

THE JOHARI WINDOW

WHAT OTHERS KNOW ABOUT YOU
We cannot 'grasp' our own personality, but we can be aware of what part of our personality we reveal to the outside world. The Johari Window (Johari is derived from the first syllables of the names of its inventors Joseph Luft, and Harry Ingham). It's one of the most interesting models for describing human interaction. A full paned window divides personal awareness into four different types.

A. The squadron describes the characteristics and experiences that we are aware about ourselves and that we like to tell others about.

B. This hidden quadrant describes things that we know about ourselves but choose not to reveal to others. It decreases in size small we build up a trusting relationship without others.

C. There are things we do not know about ourselves but that others can see clearly. And there are things that we think we are expressing clearly, which others interpret completely differently. In this quadrant feedback can be enlightening, but also hurtful.

D. There are aspects about ourselves that are hidden from ourselves as well as others. We are more complex and multifaceted than we think. From time to time something rises to the surface from our unconscious. For example, in a dream

Adjectives (fun unreliable etc) that you think describe you well. Then let others (friends, colleagues) choose adjectives to describe you.  The additives are then entered into the appropriate pains of the window.

USING TWITTER

Let's look quickly at Twitter, because this is the form in which micromanagement really come to the fore. Most micro mavens have a solid followings on Twitter indeed some have vast numbers of followers. But they are also incredibly active in terms of sharing interesting links and interacting with others. In terms of all round style and strategic uses of Social Media, Mari Smith is an excellent curator of valuable information, to do social media relationship marketing. Which she feeds on Twitter across half of the networks. She also tweets a good proportion of posts most often interacts heavily with excellence. At the time of writing Smith had tweeted 66,000 times and she had over 170,000 followers. It's not hard to say why.
She covers a number of bases including: sharing other people's content, promoting Smith's forthcoming tele-seminars and interacting with Twitter followers.

Messages fly in the blink of an eye on social sites Twitter in particular. So in our attention based society it's important to limit your communication to a small number of interesting powerful engaging messages that increase your chances. 

USING FACEBOOK

Over on Facebook the action continues for the micro mavens. More often than not the micro mavens will have a strong presence on the world's biggest social networking sites. It's where they can aggregate their fans and followers in the one spot in a simple cohesive way, giving them the opportunity to not only like posts, photos and videos, but also add their '2 cents' worth in the comments section.

Mignon Grammar Girl Fogarty's Facebook pages attracted more than 85000 like since 2009 and is a great example of what can be achieved in terms of nurturing a natural cultivating strong and vibrant community of enthusiasts around a personal brand. What is the purpose. Fogarty posts regularly to Facebook which serves as an excellent cross promotional out-post to her quick and dirty tips for better writing, blog posts and podcast series. Importantly her updates attract many likes and comments. Fogarty also jumps into the comment section every now and then.