(Theodore Vail) what is the network effect?  Network Effects describes the phenomenon how the value of a good or service increases as more people start to use that good or service

(Norbert Wiener) feedback loop theory? Cybernetics is a transdisciplinary approach for exploring regulatory systems—their structures, constraints, and possibilities. … Cybernetics includes the study of feedback, black boxes and derived concepts such as communication and control in living organisms, machines and organizations including self-organization.

(Robin Dunbar) Dunbar number? 150 is the number of individuals with whom any one person can maintain stable relationships.

Who really benefits from a digitally networked society? Big business or individuals? Refer to ‘loop theory’ and the ‘Dunbar number’? I believe the big businesses benefit from a digitally networked society. This is because as the loop theory and the Dunbar number suggests individuals only connect with 5 or 6 people where as big businesses will benefit from connecting with millions and studying their interests to make profits.

What is the network effect? (Theodore Vail)

The network effect describes how the value of a good or service increases as more people start to use that good or service. This was described by Theodore Vail in 1980.

• What is the network effect? (Theodore Vail)
  • The Network effect explains the effect that the user of a service or product has on the value of the product or the service.

• Can you remember what ‘feedback loop theory’? (Norbert Wiener) 21 mins into video
  • Also known as cybernetics, Norbert Wiener explains that cybernetics is the scientific study that looks into how humans, animals and machines communicate with and can control each other.
  • It emphasizes how there is predictive behavior in humans

• What is the Dunbar number? (Robin Dunbar)
  • The Dunbar effect is also called the rule of 150 and is the number of stable social interactions that somebody can have, when in reality, it is only really 4, 4 or 6 stable social relationships.

Who really benefits from a digitally networked society? Big business or individuals? Refer to ‘loop theory’ and the ‘Dunbar number’

I personally think that big businesses benefit from a digitally networked society because the Dunbar number is 150 and a business can take the data from that 150 people that someone knows and sell it onto other businesses with the 150 people that people related to the original person know. For example if Sally Smith knows 150 people on Twitter and is interested in tea towels and her friend Bob White likes books, then they can sell the data onto other businesses in order to create lots of business

Q: How does big business benefit? What commodity do they trade in? Answer: predictive human behaviour. Write out an answer in your own words.

Businesses benefit massively because they sell data onto other businesses, which helps them to make money. They can then predict what to target advertising wise. For example, in the summer an AI can predict that more people will click on an ad link to their site for swimwear and beachwear rather than if it was advertised on a website during the winter.

• What is the network effect? (Theodore Vail) – The value of a good e.g a phone can only become important/ increase as moer people use it. For example, if only one person had a phone the goods value would be low due to the limited amount of communication it can provide.

• Can you remember what ‘feedback loop theory’? (Norbert Wiener) 21 mins into video – WW2 American Mathmatician. loop of information allows to predict future action – continuous feedback. The idea that your basing predications of the future on habbits of the past. Old media – cannot tell if consumers actually like the product. New media – people/ their actions/ locations can be tracked, this data can then be used in order to improve a product (teen media article) in order to increase sales/ the amount of consumers.

• What is the Dunbar number? (Robin Dunbar) – 150 is the suggested cognitive limit to the number of people with whom one can maintain stable social relationships, in reality the number is lower (4/5). companies can communicate with millions of people.

Internet of things – everyday objects will have embedded computer systems in them –

what is the network effect? (Theodore Vail)

how the value of a good or service increases as more people start to use it

can you remember what feedback loop theory? (Norbert Wiener)

constant loop of information – allows us to produce future actions from habits of the past – allows us to successful hit the target market

what is the Dunbar number (Robin Dunbar)?

relationships in which an individual knows who each person is and how each person relates to every other person

companies communicate to millions of people

individuals have the potential to, however only communicate with a small quantity

What is the Network Effect? The value of goods or services increase as more people start to use that good or service.  (Telephone)

Feedback Loop Theory: Provides information to an organisation about the systems successes and problems. Predicting what your going to do before you do it.

What is a Dunbar number? A suggested cognitive limit to the number of people with whom we can maintain stable social relationship with. 150 is the suggested number of friends we can maintain.

Dunbar’s number– is a suggested limit to the number of people with whom one can maintain stable social relationships this number is 150. (Robin Dunbar)

Network Effects– describes how the value of a good or service increases as more people start to use that good or service. (demand increases, the value of the good/service increases) (Theodore Vail)

Loop theory– Using previous data collected to predict future behaviors. For example walking. (Norbert Wiener)

Who really benefits from a digitally networked society? Big business or individuals ?

Generally big businesses benefit from from a digital network. This because they can predict what goods and services people will want in the future they can do this by using the loop theory. This is when a business will use data previously collected to predict future behaviors. For example teen vogue can see what people are drawn too first and which topics they are most interested in to create more content that they know people will be interested in. Therefore they will benefit as they will return to the page and hopefully become loyal to the online magazine.

New vs Old

New media is different from old media as the content is endless , there is always something for people to consume,where as old media would come to an end for example a book will eventually come to a stop.This relates to teen vogue as it always updates its content therefore the consumers wont get bored and can binge on there content.

New media can be personalized as online businesses can track what you are interested in and personalize the content to what people want to see.

A free platform is important as it allows people to accessyour goods and serviced for free, they re more likely to return where as if you charge them for just trying to browse they are more likely to look else where.

Endless: old media finishes whereas new media, online specifically, is endless ie a magazine will have its start page 1 and will have the last page, page 80 for example whereas new media you find one article nad can keep on going and going.

Stream: In media you are able to view endless amount of media mainly for free where as old media you have to purchase a physical copy which has end and is limited

Adapt: Old media used to struggle to gather accurate data to help them decide what was of interest and selling their products. By adapting to new media online they can privately gather data by which stories have the most activity and view time to create more proffit.

Endless: Old media had an end which was the end of the book or page whereas new media can become endless with plug ins into new stories

Who really benefits from a digitally networked society? Big business or individuals? Refer to ‘loop theory’ and the ‘Dunbar number’

Big businesses benefit from a digitally networked society. This is because they are able to reach a wider audience across the world to share their good or service. Businesses can see what you’re interested in by using the loop theory. They will be able to predict what the audience wants next and will be able to release a product to benefit them.