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Algorithms That Go $0-to-a-$Billion in a Pop
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All because of an algorithm...
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Overview Transcript Case Study Video
Mathematicians-scientists
Who inspires our understanding of the algorithm and its future? Stephen Wolfram, Mathematica, (left) and Ray Kurzweil (right) and Alan Turing (center) and Gregory Chaitin (cursor over) are some who have.
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Business, Algorithms and Ideation
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1. Small Business School eHarmony is a billion dollar business based on the power of its algorithms
2. Mathematica, Stephen Wolfram's business, is based on algorithms that understand algorithmic functions
3. Ray Kurzweil picked up on Pythagoras, then Mozart, and now God's algorithms
4. Alan Turing's thinking machine
5. Greg Chaitin's essential Algorithms
6. $0-to-a-$Billion in Less than a Lifetime
7. Knowledge Management algorithms
8. Algorithms are the Internet's tools
9. Algorithms & Collaboration software
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Indexes of Indexes of Indexes:
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Algorithms create lists, indexes or databases. They sort and parse.
The net result for you and me – you will soon tell an algorithm,
"Get me a list of my best business prospects within 50 miles."
Of course, you will have defined your product well and/or
you will have a very good demographic profile of your classic customer.

Those who know algorithms willl always have leads for new sales.
Those who understand algorithms will also sort their customer database
to know when and how to get repeat business.

Google has been a great teacher.
Everybody does a search on their own name and most of us will get long lists of references.
Many people discover hundreds of people with the same first and/or last name.

When you put you name in quotes and you get a much smaller list of people with your first and last name. You may even find a few references to you that you did not know existed.

The science of algorithmic matchmaking is in its infancy.
We opened the discussion on this site with our episode of the show about eHarmony.
That has quickly become a billion dollar business
(yet, it can be tricky business – they almost went broke).

Every computer-based and/or internet-based business use algorithms.
The best businesses use them very well.
They have discovered that patterns and similarities matter.

This is the part of a drive inward to a deeper level of interiority.

436 Questions.29 dimensions What is a question? Is it a probe inside? What is it describing inside?
Where do those "insides" reside? In the mind? And. where is the mind? ...in the brain? Hmmmm... Maybe? ...human will? Yes. No. Maybe. What can a "Yes or No" question tell you? What do ranges describe? What are opposites? ...antonyms? What is inbetween?

With eHarmony within every one of their 436 questions, there is a scale, a value range, between Yes and No, between 0 and 10.

Matchmaking requires a range, then degrees of tolerance outside a range. So, how do you find a possible match? What do you compare? Are certain dimension more important dimensions than others to weigh? Then, how is each set of answers weighed against the others? And, how and which do you compare across literally millions of people?

We are the front edge of this inquiry. The very nature of complexity is up for re-examination. Algorithms de-complexify complexity. Certainly prior to the indexing capabilities of a computer, such tasks would be impossible. There is no way a human being could do such calculations on such large numbers of people.

Algorithms: So, we need to learn about indexes, sorting, parsing, databasing, systems, relationality, and patterns. To see into the future, it is good to look at the past, especially its most formative history.

History. The first documented "algorithmic" discussions were in ancient Greece¹. Pythagoras (circa 450 BC) examined relations between laws in nature and the harmony within the sounds of music. Pythagoras could see that music and numbers were inseparable and he believed that these were the keys to unlock the pathways that bridge the spiritual and physical universe.

Harmony and algorithms were also used much later by Mozart when he created an algorithmic indexing system for his musical piece, Reunion. And, of course, Ray Kurzweil used algorithms to have a computer create the music piece he played on I've Got a Secret (1965).

Of course, Turing and von Neumann had begun algorithmic explorations in the 1930's such that by the early 1950s, algorithms had become almost the exclusive domain of the computer science departments; our philosophers and artists now have some catch up to do if we are to come full circle from those very early points of inquiry.

You can feel the energy within the web pages of US National Institute of Standards & Technology (NIST), MIT, Stony Brook and others. It seems as though they all understand that we, as a scientitifc and intellectual community, are on the edge of very basic discoveries about the nature and structure of the universe by seeing new patterns, a different kind of supersymmetry, deeply within the structure of information.

Here is a little more formal definition, a dictionary of algorithms (NIST). Also, there are other great resources to begin to understand the computing sciences:

First principles. If you are a regular viewer of the show, you know that we struggle to understand the first principles of business -- what separates the good, the bad, and the ugly.

We believe that any business, to be a business, must obey a very simple, first principle of business: order / continuity. Simply, people need to know that the business is in business and something can be bought or sold.

Yet, it is only the good businesses that obey the second principle: relation/symmetry. These businesses create something of value that others want, and when they get paid for the product or service, there is a symmetry or balance.

Fast-growing and truly excellent businesses obey the third principle: dynamics/harmony. Here, "dynamics" are relations extended through time and "harmony" is at least two symmetries interacting and extending through time. Algorithms are the keys that keep some semblance of order within the complexities of these interacting symmetries and we believe that the people of eHarmony, through their own unique use of algorithms, are attempting to satisfy this condition.

And, we believe all fast-growing, good businesses are attempting to satisfy this third principle.

Today, with the advent of inexpensive computing, an explosion of ideas and new insights has begun. In 1955-56 Lejaren Hiller and Leonard Isaacson¹ created the first algorithmically generated muscial composition at the University of Illinois using computers. The kids that grew up with technology in their cribs are now young adults and their insight revolution is just beginning.

Those of us who grew up in the Newtonian world of space and time failed to interpret the web correctly and many of us dot-bombed. With the elimination of space-time borders, businesses like eHarmony are poised for a multi-billion dollar expansion. Every business and every organization that needs to look at the interiority of their people will be their next big market.

Today eHarmony is about finding the love of your life; we predict that it will soon be about opening the paths for love within our businesses and then throughout our world. Perhaps it will, as well, be about helping each of us to find out where there are blocks, walls and conceptual misunderstandings that hold us back.

For more, please review two episodes of the show: Information-Knowledge-Insight
and One Workplace for all starting with each of their homepages.


REFERENCES:

1. eharmony: Galen Buckwalter is leading the work on algorithms. For more about the 29 dimensions, please continue with the eHarmony discussions about their research.

2. Wolfram: Mathematica and A New Kind of Science, by Stephen Wolfram

3. Alan Turing: The Turing Machine

4. Ray Kurzweil: The Edge of Singularity and Kurzweil Companies

5. Gregory Chaitin: The Limits of Mathematics (Springer, 1998)
Small Business School How to Run Algorithmic Information Theory on a Computer
Small Business School See the first chapter of The Unknowable (Springer, Singapore, 1999)

Also:
A Brief History of Algorithmic Composition, by John A. Maurer IV (Stanford)

 
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