Microsoft, Google, Abundance, Scarcity.

Of course, there’s been a lot of discussion of Microsoft’s ‘cash rebate’ plan for search ( http://www.msnbc.msn.com/id/24760487/) over here at GearyI. A few comments in Kim’s innovation session down here in San Diego today made me ponder it’s wider implications. We were briefly discussing marketing cultures of scarcity vs. abundance. (i.e., the scarcity model says “there are (x) many customers, and we MUST COMPLETE LIKE CRAZY for them.” Abundance model says “customers come to great ideas – and the entire customer pie grows beyond expectation when we create a good ecosystem to attract them. We do not focus as much on competition as we do on creating great ideas that attract customers.”)

Now if that doesn’t sound like Microsoft and Google going at it, I’m not sure what does.

One interesting post in the blogsphere commenting on all this: machinist blog on salon.com:

http://www.salon.com/tech/machinist/blog/2008/05/23/microsoft_books_search/index.html

It’s an excellent example of the scarcity model (Microsoft) vs the abundance model (Google) at work. As Farhad points out – some monetary effects are less obvious than others. To paraphrase: “If you were a programmer, do you want to work for the visionary company . . . or the one who’s stated focus is their revenue goals?”

If markets are ecosystems, so are companies. And having goals that keep employees inspired – and attract ones with inspiration – is a competitive advantage. Believing that advantage translates to revenue? Well, that’s the whole abundance model, isn’t it? It goes a little outside the spreadsheet.

Sarah