Journal: Groupon’s Missed Opportunity
11 Society, About the Idea, Collective Intelligence, Communities of Practice, Earth Intelligence, IO Mapping, IO Sense-Making, Methods & ProcessThe tech industry has a total crush on Groupon, that darling of the start-up scene that emails you huge discounts on everything from Gap jeans to gym memberships. Now that Google is about to acquire the Chicago-based start-up for billions of dollars, it’s like the tech blogs are all competing to see who can gush the most about how great Groupon is and how smart Google is for wanting to acquire them. It’s really not that big of a deal – how many times have we seen this kind of Cinderella story before?
Though I don’t find the acquisition all that interesting, I’m fascinated by the concept of Groupon, mainly for the incredible opportunity they missed. On the surface, Groupon seems to be about killer deals. They negotiate huge discounts with national and local businesses in exchange for the promise of thousands of new customers – pay $25 and get $50 worth of Thai food, for example, or pay $60 for a normally $250 dental exam. It’s a classic loss-leader tactic – gain new customers at a loss in hopes that they return and generate more business later.
When you take a closer look at Groupon’s phenomenal success, though, there’s a lot more going on than just bargains. Groupon was one of the first companies to successfully harness the power of group behavior across the social web in the name of a common purpose. That’s incredibly powerful! Think of the potential – for the first time in history, the physical barriers to collective, powerful action have been torn down, and Groupon figured out how to focus that power into a single, common goal. That’s huge!
Definitions: Segmented Polycentric Integrated Networks
DefinitionsTip of the Hat to Sumner Carter at Facebook.
Reference: WikiLeaks Interview in Forbes–Promoting Business Ethics
03 Economy, 07 Other Atrocities, 11 Society, About the Idea, Commerce, Commercial Intelligence, Corporations, Cultural Intelligence, Ethics, Historic Contributions, InfoOps (IO), Journalism/Free-Press/Censorship, Money, Banks & Concentrated Wealth, Officers Call, Power Behind-the-Scenes/Special Interests, Privacy, Reform![greenberg](http://phibetaiota.net/wp-content/uploads/2010/11/greenberg.jpg)
Nov. 29 2010
Fascinating article, including leaks in the pipeline (banks), whistleblowers, censorship, his story, trying to stop leaks, spying, untrustful competitors, secrecy, war, field of intelligence, etc. … “our primary defense isn’t law, but technology…courage is contagious” (p.8) — JAS
Forbes Cover Story . . . Forbes Transcript
Following is an excerpt from page 5 regarding moving in the direction of ethical business — JAS
![julian cover](http://phibetaiota.net/wp-content/uploads/2010/11/julian-cover.jpg)
What do you think WikiLeaks mean for business? How do businesses need to adjust to a world where WikiLeaks exists?
WikiLeaks means it’s easier to run a good business and harder to run a bad business, and all CEOs should be encouraged by this. I think about the case in China where milk powder companies started cutting the protein in milk powder with plastics. That happened at a number of separate manufacturers.
Let’s say you want to run a good company. It’s nice to have an ethical workplace. Your employees are much less likely to screw you over if they’re not screwing other people over.
Then one company starts cutting their milk powder with melamine, and becomes more profitable. You can follow suit, or slowly go bankrupt and the one that’s cutting its milk powder will take you over. That’s the worst of all possible outcomes.
The other possibility is that the first one to cut its milk powder is exposed. Then you don’t have to cut your milk powder. There’s a threat of regulation that produces self-regulation.
It just means that it’s easier for honest CEOs to run an honest business, if the dishonest businesses are more effected negatively by leaks than honest businesses. That’s the whole idea. In the struggle between open and honest companies and dishonest and closed companies, we’re creating a tremendous reputational tax on the unethical companies.
No one wants to have their own things leaked. It pains us when we have internal leaks. But across any given industry, it is both good for the whole industry to have those leaks and it’s especially good for the good players.
But aside from the market as a whole, how should companies change their behavior understanding that leaks will increase?
Do things to encourage leaks from dishonest competitors. Be as open and honest as possible. Treat your employees well.
I think it’s extremely positive. You end up with a situation where honest companies producing quality products are more competitive than dishonest companies producing bad products. And companies that treat their employees well do better than those that treat them badly.
Would you call yourself a free market proponent?
Absolutely. I have mixed attitudes towards capitalism, but I love markets. Having lived and worked in many countries, I can see the tremendous vibrancy in, say, the Malaysian telecom sector compared to U.S. sector. In the U.S. everything is vertically integrated and sewn up, so you don’t have a free market. In Malaysia, you have a broad spectrum of players, and you can see the benefits for all as a result.
How do your leaks fit into that?
To put it simply, in order for there to be a market, there has to be information. A perfect market requires perfect information.
There’s the famous lemon example in the used car market. It’s hard for buyers to tell lemons from good cars, and sellers can’t get a good price, even when they have a good car.
By making it easier to see where the problems are inside of companies, we identify the lemons. That means there’s a better market for good companies. For a market to be free, people have to know who they’re dealing with.
You’ve developed a reputation as anti-establishment and anti-institution.
Not at all. Creating a well-run establishment is a difficult thing to do, and I’ve been in countries where institutions are in a state of collapse, so I understand the difficulty of running a company. Institutions don’t come from nowhere.
It’s not correct to put me in any one philosophical or economic camp, because I’ve learned from many. But one is American libertarianism, market libertarianism. So as far as markets are concerned I’m a libertarian, but I have enough expertise in politics and history to understand that a free market ends up as monopoly unless you force them to be free.
WikiLeaks is designed to make capitalism more free and ethical.
But in the meantime, there could be a lot of pain from these scandals, obviously.
Pain for the guilty.
Do you derive pleasure from these scandals that you expose and the companies you shame?
It’s tremendously satisfying work to see reforms being engaged in and stimulating those reforms. To see opportunists and abusers brought to account.
———————————
Thanks to: Dan Drasin via John Steiner.
Reference (2): United Nations Intelligence in Haiti
05 Civil War, 07 Other Atrocities, 08 Wild Cards, 10 Security, 10 Transnational Crime, 11 Society, Analysis, Augmented Reality, Ethics, Government, Historic Contributions, InfoOps (IO), Intelligence (government), IO Multinational, IO Sense-Making, Law Enforcement, Methods & Process, Military, Officers Call, Peace Intelligence, Real Time![MINUSTAH1001 JPEG Small](http://phibetaiota.net/wp-content/uploads/2010/11/MINUSTAH1001-JPEG-Small-225x300.jpg)
MajGen Eduardo ALDUNATE Herman, Chilean Army (Ret), served as the Deputy Force Commander of the United Nations Force in Haiti (MINUSTAH) in the earliest rounds, and was instrumental in both sponsoring the Joint Military Intelligence Analysis Center (JMAC) concept in its first modern field implementation, but also in evaluating most critically both the lack of useful intelligence from allies relying on secret sources and methods that did not “penetrate” to achieve gangs and neighborhoods; and the astonishing “one size fits all” propensity of the allies to treat every “threat” as one that could be addressed by force.
His contributions are helpful in understanding the more recent failure of allied relief operations in Haiti that again assumed that the use of armed bodies would address the problem, without making provision for real-world ground truth intelligence (CAB 21 Peace Jumpers Plus) or intelligence-driven harmonization of non-governmental assistance (Reverse TIPFID).
Reference: Walter Dorn on UN Intelligence in Haiti
Reference: Civil Military Operations Center (CMOC)
2003 PEACEKEEPING INTELLIGENCE: Emerging Concepts for the Future
Books: Intelligence for Peace (PKI Book Two) Finalizing
Reference: Intelligence-Led Peacekeeping
Reference: Network Nation, National Greatness
About the Idea, Collaboration Zones, Communities of Practice, InfoOps (IO), IO Mapping, Methods & Process![brooks](http://phibetaiota.net/wp-content/uploads/2010/11/brooks.jpg)
National Greatness Agenda
We now need a movement transcendent of partisan cliques and organized around a broad revitalization agenda and love of country. November 12, 2010
The Crossroads Nation
From Bill Clinton’s bridge to the 21st century to President Obama’s new foundation, the next American century is often described vaguely. Here’s why. November 9, 2010
Phi Beta Iota: In a very generic sense, what David Brooks proposes is perfectly aligned with the concept of a Smart Nation and the need to nurture a World Brain and Global Game.
Reference: Bruce Schneier on Cyber War & Cyber Crime
Historic Contributions, IO Sense-Making, MoviesIn this address, Bruce examined the future of cyber war and cyber security. Mr. Schneier explored the current debate on the threat of cyber war, asking whether or not the threat had been over-stated. He then explored the range of attacks that have taken place, including the Latvian DOS attack and the Stuxnet worm. The address concluded with an exploration of the future of international treaties on cyber war.
Phi Beta Iota: This is utterly brilliant stuff, a historical contribution. A power struggle between military and police over cyber-security, in US military won–this has consequences. The weak aspect is the proponency for treaties among states–states are but one of the eight tribes, any “treaty” environment that does not adapt to the reality of eight tribes and hybrid networks is not serious.
2010: OPINION–America’s Cyber Scam