Tag Archive for 'facebook'

Platform growth over user privacy

Published on January 18, 2011 in DataPortability, Privacy and social computing, with 0 Comments. Tags: , , .

Facebook announced that data about yourself (like your phone number) would now be shared with applications. Since the announcement, they've backed down (and good work to ReadWriteWeb for raising awareness of this).

I've been quoted in RWW and other places as saying the following:

“Users should have the ability to decide upfront what data they permit, not after the handshake has been made where both Facebook and the app developer take advantage of the fact most users don’t know how to manage application privacy or revoke individual permissions,” Bizannes told the website. “Data Portability is about privacy-respecting interoperability and Facebook has failed in this regard."

Let me explain what I mean by that:

This first screenshot is what users can do with applications. Facebook offers you the ability to manage your privacy, where you even have the ability to revoke individual data authorisations that are not considered necessary. Not as granular as I'd like it (my "basic information" is not something I share equally with "everyone", such as apps who can show that data outside of Facebook where "everyone" actually is "everyone"), but it's a nice start.

http:__www.facebook.com_settings_?tab=applications

This second screenshot, is what it looks like when you initiate the relationship with the application. Again, it's great because of the disclosure and communicates a lot very simply.
Request for Permission

But what the problem is, is that the first screenshot should be what you see in place of the second screenshot. While Facebook is giving you the ability to manage your privacy, it is actually paying lipservice to it. Not many people are aware that they can manage their application privacy, as it's buried in a part of the site people seldom use.

The reason why Facebook doesn't offer this ability upfront is for a very simple reason: people wouldn't accept apps. When given a yes or no option, users think "screw it" and hit yes. But what if they did this handshake, they were able to tick off what data they allowed or didn't allow? Why are all these permissions required upfront, when I can later deactivate certain permissions?

Don't worry, its not that hard to answer. User privacy doesn't help with revenue revenue growth in as much as application growth which creates engagement. Being a company, I can't blame Facebook for pursuing this approach. But I do blame them when they pay lipservice to the world and they rightfully should be called out for it.

Manipulating numbers that don’t mean anything

Published on June 7, 2010 in social computing, with 0 Comments. Tags: , , , .

Erick Schonfeld wrote a post today saying all the hoopla over Facebook's privacy isn't justified. I disagree for two reasons.

1) Awareness.
When Facebook announced their new changes, I tweeted why the hell no one was complaining. Chris Saad and I then wrote one of the first (if not the first) posts that criticised the Facebook move. CNN referenced our post and the entire industry has now gone over the top complaining.

Why didn't anyone from the major blogs critique the announcement immediately? Why the time lag? For the simple fact there wasn't awareness - people hadn't thought about it deeply. And to validate my point, check this recent exchange with a friend in Iran when I asked him how the people of Iran felt about the changes. He had no idea, and when he found out - he got annoyed.

2) The monopoly effect
I love Facebook as a service. But I will also admit, nothing compares to it - I love it for the sole fact it's the best at what it does. If there was genuine competition with the company, that offered a compelling alternative - I wouldn't feel as compelled to use it. They win me over due to great technology and user experience, but I'm not loyal to them because of that.

I think Facebook has some security right now because no one is in their class. But they will be matched one day, and I think the reaction would be very different. Rather than tolerate it, people would move away. And whilst Facebook can lock my data and think they own me like I'm their slave, the reality is my data is useless with time - what they need is permanent access to me, and to have that, they need to ensure my relationships with them is permanently ahead of the curve.

Facebook’s no longer a startup

Published on September 16, 2009 in Internet and Trends, with 0 Comments. Tags: , .

Facebook pokeFacebook announced today that they became cash-flow positive in the last quarter. This is a big deal, and should be looked at in the broader context of the Internet\'s development and the economy's resurgence.

The difference between a start-up and a growth company
There are four stages in the life-cycle of a business: start-up, growth, maturity, and decline.

In tech, we tend to obsess over the "start-up" - a culture that idolises small, nimble teams innovating every day. Bu there is a natural consequence of getting better, bigger, and more dominant in a market - you become a big company. And big company's can do a lot more (and less) than when they could as startup's.

Without going too much into the difference between the cycles, it's worth mentioning that a functional definition to differentiate a "startup" business from a "growth" business is its financial performance. Meaning, a startup can be one who has revenues and expenses - but the revenues don't tend to cover the operating costs of a business. A growth business on the other hand, is experiencing the same craziness of a start-up - but is now self-supporting because its revenues can over its costs.

This makes a big difference in a company, lest of all longer term sustainability. When a business is cashflow negative, it risks going bankrupt and management's attention can be distracted by attempts to raise money. But at least now with Facebook finally going cash-flow positive, it has one less thing to worry about and can now grow with a focus less on survival and more on dominance.

Cash register

Looking at history
Several years after the Dot Com bubble, I remember reading an article by a switched on journalist. He was talking about the sudden growth of Google, and how Google could potentially bring the tech industry back from the ashes. He was right.

Google has created a lot of innovative products, but its existence has had two very important impacts on the Internet\'s development.

First of all, there was adsense - a innovative new concept in advertising that millions of websites around the world could participate in. Google provided the web a new revenue model that has supported millions of content creators, utility providers, and marketplaces powered by the Internet.

Secondly, Google created a new exit model. Startup's now had a new hungry acquisition machine, giving startups more opportunities to get funded as Venture Capitalists no longer relied on an IPO to make their money - which had now been effectively killed thanks to the over-engineered requirements of Sarbanes Oxley.

Why Facebook going cashflow positive is a big deal
Facebook is doing what Google did, and it's money and innovation will drive the industry to a new level. Better still, its long been regarded that technology is what helps economies achieve growth again, and so the growth of Facebook will not only see a rebuilding of the web economy but also of the American one. The multiplier effect of Facebook funding the ecosystem will be huge.

And just like Google, Facebook will likely be pioneering a new breed of advertising network that benefits the entire Internet. And even if it fails in doing that, its cash will at least fund the next hype cycle of the web.

So mark this day as when the nuclear winter has ended - it's spring time boys and girls. We my not have a word like Web2.0 to describe the current state of the Internets evolution, but whatever its called, that era has now begun.