Bereft Respect, Hadoop’s the new MRP?
Why aren’t they famous yet?
Only time will tell.
Many of us expert in industrial recommender systems matching Supply and Demand missed the change over from shortage of supply to shortage of demand.
Venture Capital didn’t miss this backing anything mining demand inferences. In doing so helping create the open source Web 2.0 Hadoop business architecture to mine closed data sources for your personal demand, or rather inferences of your personal intentions, then often sold to advertisers for targeting.
Private Equity didn’t miss this shift, taking nearly every public ERP/CRM company operating at scale private. At the core of ERP is MRP (material requirements planning) which business use to match supply/demand. With shortage of supply, MRP behaves as a recommender system for chasing exceptions. With abundant supply, that came with globalization, quality demand becomes the imperative to chase.
In hindsight a new classes of companies have come to the for to creating certainty of demand. Greg Gottlesman at Madrona Venture Capital believes that Amazon is in the process of becoming the world’s most valuable company. Amazon creates the best quality demand, a credit card cleared order.
Meanwhile Facebook uses social computing to gather and mine personal data for demand, and sprinkles in adverts to help persuade demand. Others sell your data to ad-tech for targeting. Some even sell your identity details. Just about all make extensive use of Web 2.0 Hadoop for “big data” demand mining.
What can upset this Golden Pony, shortage of supply?
Shortage of water, oil and other precious raw materials can and will disrupt supply and demand. For example McDonalds and Nike are already investing in smaller suppliers and alternative sources to add diversity and reduce risks in regions of the world with sustainability issues like Indonesia and drought regions.
Nike even went as far as hiring Ward Cunningham to help with prototypes for working in the emerging era of sustainability. Alas, currently over investment in demand systems feels inversely proportional to under investment in supply systems technologies.
For example the core algorithm for MRP, around since 1970s has been revised for the demand driven era by Carol Patk & Chad Smith in Orlicky’s third ‘DDMRP’ edition — but not web 2.0 social technology updated. Internally we can surmise Amazon has built Hadoop MRP.
The DDMRP authors are superb APICs, Goldratt, TOC, Lean, operations experts not computer scientists — Carlos Guestrin, Ed Chi — versed in machine learning, or social computing technologies.
What can upset this Golden Pony, shortage of demand?
Another possibility, the search for quality demand runs into stricter privacy laws in Europe, UK, Australia. Requiring a shift from away from mining personal data. Emerging pointers supporting this direction are:
- Ward Cunningham’s (Smallest Federated Datastore) Wiki
- Brad Fitzpatrick’s (Personal Git) Camlistore
- Eve Maler’s (User managed identity) UMAWG
- Adrian Hall’s (user data-flows across devices) deconstucted.io
- Doc Searl’s (reverse CRM) VRM
- Drummond Reed’s (VRM cloud services) Respect Network
All these are private by default, put the person or enterprise back to control of their own data for generating quality demand in a granular fashion. Doc’s keynote for The Respect Network brings this shift to trust and respect into commercial perspective.
Net-net: I need to find a startup crazy enough to explore updating MRP, to match demand and supply with VRM and Respect. Perhaps Jordan Ritter of Napster fame, who has set up Ivy Softworks in Seattle for Data Psychics will incubate joining up the dots?
Till then, inspired by a16z’ Ben Horowitz, listening to the Egosouls-Nirvana: produced by S’pply ‘N’ D’mand: Think I’m going crazy!