Tuesday, July 14, 2015

The Internet of Everyone and the Zero Marginal Cost Model

 

"Odds are that we're going to be okay..."

Marginal cost is the term used in the science of economics and business to refer to the increase in total production costs resulting from producing one additional unit of the item. Zero marginal cost describes a situation where an additional unit can be produced without any increase in the total cost of production. Producing another unit of a good can have zero marginal costs when that good is non-rivalrous, meaning that it is possible for one person to consume the good without diminishing the ability of others to simultaneously consume it as well. --Wise Geek.com

One of the very first observations about managed print services from inside the copier industry was, "...why would I ever build a practice if MPS is designed to reduce prints/clicks? It doesn't make sense, we're creating our own demise..."

I couldn't have agreed more and that couldn't have been a more irrelevant point.  Prints were heading down, businesses were reducing costs with or without us, so getting into REAL managed print services meant we could help our clients manage the decline instead of being buried by it.

Back then, some people refused to see their existing model for what it is; a Sunset Model.

Now This -

We've been talking about the "internet of things", 3D Bio-printers, and the new way of work for months. Interesting sure, yet these are simply pieces of the great unknown, universal puzzle.  What's beginning to come into focus is that transformation isn't occurring at separate rates, in unique verticals like music, healthcare, manufacturing, or even printing.

This transformation is universally driving towards a distributed, peer to peer, collaborative environment set to eclipse the very core of capitalism - all verticals at an accelerating rate.

Effectively, everything, even printing, will be available for the cost an app. This is to say everything we need to exist in the physical realm will be provided at little or now 'cost' (as cost is defined today).

"The Internet of Every One"  welcome to zero marginal cost in mps, along the entire value chain. 

Raw materials will be a renewable resource - today's dinner dishes are tomorrow's sneakers and the day after's


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