Thursday, December 29, 2011

A Few Random Things...

Berlin - I've recently come across several online articles about this city becoming the latest hotspot for tech startups - especially in the social networking space. The most recent being Om Malik's nice post from a few days ago. I've only been to Berlin once, about four years ago, but I was very impressed with the city and all it had to offer. It's big, multicultural, has a good transportation system, inexpensive housing, and boasts some world class universities and technical institutions. Throw in the Currywurst stands on every other corner and the assistance offered by the city government and groups such as Berlin Partner, and you have a all the right ingredients for this city to rival anyplace else as a proving ground for new technology.


10 years ago - I lost a job I had been in for only 11 months. Yep. Three days after Christmas. I was pulled me into a conference room with the head of HR and that was that. The place was truly Dickensian (It was the best of times, it was the worst of times...), but mostly, it was the worst of times.

While out walking my dog today, I wished a woman I passed on the street a 'Merry Christmas'. She seemed quite startled that some random stranger would speak to her and offer some sort of random pleasantry. "People don't talk to one another any more", she said. "Well I do", I replied. Her smile afterwards made my day.

Just sayin'

Wednesday, October 12, 2011

Netflix is not New Coke

The recent dustup over at Netflix regardng the ill-fated Quikster venture has been compared by some to the Coke/New Coke debacle over 25 years ago. Although the situation may appear that way, in reality these are two entirely different corporate screwups.

When the Coca-Cola Company reformulated its primary soft drink to have a sweeter taste, with less ‘bite’, the marketing gurus on North Avenue announced this in typical Coke fashion: full page magazine ads, television commercials, public tastings and billboards trumpeting the new flavor. The outcry from the public was immediate and vocal and the product’s failure has gone into history as one of the most famous corporate blunders of all time. The entire episode has become fodder for countless discussions and is studied in business schools across the country.

I would suggest that the public’s rejection of New Coke was not a failure of the product per se, but rather a failure of the company’s lauded marketing department. Remember the four “P”s of the classic Marketing Mix: Product, Price, Promotion, and Packaging ? In this case, the new Product and Price were fine, but the Promotion and Packaging strategies failed miserably.

There are many suggestions (post mortem, of course) regarding what Coke should have done but there’s little question in my mind that the product could have succeeded if handled differently from a marketing perspective. Even if the newly formulated, sweeter Coke met public resistance, the company could have quietly pulled back after issuing a statement about ‘tweaking our formula to meet changing tastes' or some other bland comment.

In contrast, the Netflix/Quikster disaster can’t even be called a marketing mess. The way the company handled this was so inept from a management perspective that this too will likely become part of future business school curriculums. Netflix, which spearheaded the ‘DVD by mail’ category and had become the de facto go-to company in this space had also created a new distribution outlet (and income stream) in the form of streaming these videos over the internet to its customers’ homes. Obviously the broad adoption of this new service would result in significant cost savings to Netflix in the form of reduced mailing fees, labor, inventory, warehouse space and other carrying costs. However, instead of offering this new distribution model to its customers as another choice for its customers, the company instead announced that it would eventually cease the DVD business and its customers would (one day) be required to watch their movies via the internet only. Although no timeframe was given - the point was clear. Netflix wanted out of the DVD business as soon as possible and its customers would have to adapt to the new business model.

In addition, Netflix announced a new pricing structure in which customers would have to pay separately for the DVD only service and the new web-streaming service. if customers wanted the option for both, they would have to effectively pay double the price they had been paying. After a large initial outcry and ridicule on social media outlets, Netflix announced that the DVD only service would be split off into a new company called ‘Quikster’. Laughably, the bright lights at Netflix failed to secure Twittter account for this name leading to even more ridicule on online news outlets and social media once they learned who currently had this account name. Eventually, to its credit, Netflix admitted that it had made a series of missteps, quickly closed the door on the ill fated Quikster, and announced that at least for now, its customers would still be able to rent DVDs by mail as well as through internet streaming (although the dual-pricing model will remain).

So even though some observers today may equate the Netflix problems of 2011 with the New Coke rollout of 1985, they have little in common except for a lot of corporate ‘woulda-shoulda-coulda’s that are even clearer in hindsight.

Thursday, October 06, 2011

Moving to the Cloud ? (Part 2)



This is a continuation of my high level discussion about some of the important things to consider when creating a cloud based business. Part 1 noted a few business items that need to be addressed. Part 2 discusses some of the user experience, content, and architecture to think about while you’re in your planning and early startup stages.


Content related –

Does your logo and overall ‘look and feel’ and graphic scheme appear professionally done? Are you relying on free clip art or other public domain sources for your graphics ? That may be ok for a short while, but eventually you’ll need to come up with something unique and memorable with snappy colors, attractive visuals and enough content to entice your first time visitors to stick around a while. How sticky is your site? What's the average length of your visitors stay at the site? Have you tested the UX (really tested it) from an outsider's perspective (and not with a direct hard wired connection to your web server).


How many users can be online to your site at once ? Are the drags on performance? What about your database read/writes ? How scaleable is your architecture as your userbase grows ? Have you planned for additional capacity/throughput and what it would take to ramp up to the next level.


Is your content dependent upon a ‘Web 2.0’ or crowdsourcing philosophy? Do you accept submissions of original content, writings, essays, articles, artwork, photography, etc. from your visitors ?


If so

How are submissions made to your site?
Who reviews/approves submissions for appropriateness?
How often is 'old' content removed ?
Is old content archived and searchable ?
Do contributors retain copyrights to their work or do submissions become your property ?
How easily/quickly can an authorized user edit/add/remove content ? Does the webmaster need to be involved, or is this a simple task for others ? Who *are* the authorized users for things like this ?


Language :

In which language are you presenting your site? Have you given thought to offering a multilingual site? Remember the internet is global, and people will be able to access your site from anywhere in the world. Is sure your baseline code architecture prepared for the possibility of multilingual pages ? Even if you don’t anticipate clients or web visitors from other countries, do you want to make them feel ‘welcome’ by your presentation ?

Finally….

This leads to an entirely different discussion related to banking and accounting issues which I won’t even begin to discuss here.

You may have the one perfect vision and be the expert at making your vision a reality, but if you miss the ball on some of these critical details that need to be in place behind the scenes, you may end up being one of the many thousands of great start ups that failed due to less than perfect execution.

Wednesday, September 28, 2011

So you're moving to the Cloud...

Moving to the Cloud ? (Part 1)

From time to time I’m asked to review or provide an unbiased critique of a web-based site or online startup. Occasionally this request stems from someone I know who has been potentially tapped to assume a significant role in the leadership of the site. Other times, the site is in its conceptual stages and needs someone to throw a few darts at the concept to make sure things are well thought out and to avoid ‘gotchas’ later.

So here are a few items to take under consideration you begin the path down this road to web stardom. These questions and discussion points below are in a kind of free-ranging style, but you get the idea of some of the important things that need to be ironed out and discussed among the principals. Remember, it’s far better to do this legwork up front rather than run into the gamut of woulda/coulda/shouldas later.

If you’re just in the ‘proof of concept’ or ‘blue sky’ stage, that’s one thing, but once you make the decision to go to the next step and map out your real business plan, the way you maneuver through these items (and potential roadblocks) will be critical to your success.


Business related –

Has your business model been conceptualized from the beginning as a (hopefully) for profit company ? Did it begin as a ‘fun’ or ‘cool’ website that now you think you would like to monetize? If it began as the latter, are the principals ready to make the leap and truly commit the time and resources to make it happen?
Who has an equity stake in the business? Has this been formalized in writing with documents and attorneys and all those necessary details, or are you just ‘winging’ it for now ? Do you have a business license ? Do you even need one ? Articles of incorporation? Do you have a clearly defined corporate hierarchy and officers (even if it’s just a few people) ? What about a board of directors or advisors?

Who owns the domain ? How long is it ‘locked in’ ? Have you also acquired the *.net and other variations ?

Do you have any NDAs ? Are there any in place? Were they drafted by an attorney knowledgeable in IP law ?

Do you have a clearly written, unambiguous privacy policy that’s available for all to see ?
What is your revenue model? You can't expect to keep site running forever by relying on your own bankroll or even donations. Will you sell advertising ? offer Subscriptions? Ask users to pay for premium content? If you end up with a lot of highly defined, qualified users, then even without a lot of revenue, you now have a very valuable asset. Find a way to use this to your advantage, but be careful with user privacy rights.

Where is the site hosted ? Does the hosting company offer you a competitive SLA that meets your needs ? When / how often/ is their maintenance window ? Do you run the risk of being offline during these times ? Would you be able to change to a different ISP/hosting company without too much difficulty ?

Who is your chief webmaster and top software architect/coder(s), What about your DBA(s) ? Who are these people? Are they employees or contractors ? Do you as the principal have access to all code? Who else has access to the code/logins/etc. ? What if the main technical person leaves or quits - what would it take to have someone else step in and take over? What type of agreement is in place for updates, code maintenance, database work ? Have you implemented best practices for code design and checkin/checkout procedures ?

Have you considered an exit strategy? This should be part of your contingency planning for unexpected events. Always consider your options at both a macro and micro level. Things change, competitors arise from nowhere. Be prepared and respect your competition. They have smart people working for them, too.

Later, in the next part, I’ll discuss some of the high level content, programming, and user experience things to remember as you embark down this path to working in the cloud…

Tuesday, September 06, 2011

What's Your Global IQ ?

I have read that in this age of global business, it's difficult to find employees who are willing to work internationally (not relocate - just travel abroad as needed) and are also 'internationally savvy', i.e., they are culturally sophisticated, know how to build and maintain excellent relationships with global partners and have a good sense of the social and economic world in which our partners live. They read the Economist and the IHT as well as technical journals, speak at least a modicum of languages besides English, and know the ins and outs of global travel, i.e., how to get around from Barcelona to Berlin, deal with currency issues - whatever. When working in Germany, they can name at least a few of the German states, and in France, a couple of the Departments. Bonus points awarded for having some knowledge of the local politics and geography.

Is this an accurate assessment? Is it really that hard to find Relationship Managers, Client Service professionals, Project Managers, or Account Executives who possess the qualities to tread comfortably in a foreign locale, and professionally represent one's company in an international setting ? When I've worked abroad with colleagues from Germany, Finland, or Italy for example, beyond English and their native language, they often speak a 3rd (or even fourth !) language quite well, and even beyond that, they have a good understanding of US news, politics, or even sports.

Do the Dutch, Germans, and Swedes have a corner on this ability to maintain intercultural competency in a business setting? Is there hope for US business to compete on a global setting and be respected by our business partners on a cultural level ? Can we raise our global IQ to compete on their level ?

Thursday, September 01, 2011

Um,,,What's that word again ?

The recent post in The Economist by their columnist using the psuedonym, "Johnson' brought a chuckle. The author relates an amusing anecdote in which she, as a native of Ireland now living in Brazil, has learned to speak Portuguese with a decidedly unique accent to the native Cariocas. Her visit to a school in Sao Paolo prompts amusement by the students who have difficulty understanding her pronunciation of their language.

She concludes the article by asking her readers for their own 'depressing moments' on their own road of language study. Although I didn't reply on the article itself, I immediately recalled one embarrasing moment from a trip to Berlin I undertook a few years ago. I had just left one of that city's fabulous museums, and was riding the Strassenbahn on a cold January afternoon when I suddenly realized that I couldn't find the scarf I had earlier in the day. "Mein Schaf...", I muttered to myself,under my breath, but loud enough to be heard by other riders. "Wo ist mein Schaf ?" I quickly became aware of some snickering by the riders within earshot. I couldn't figure out what was so funny, but it wasn't hard to determine that it was me at whom they were laughing. Finally, a woman across the aisle leaned over to me and said in English, "Did you lose something?" "Yes, my scarf", I replied. "Oh, she said. That's unfortunate, because it'll be much harder to find that than the sheep you said you couldn't find". Yes folks. Schaf = sheep. Schal = scarf. Lesson learned.

Thursday, August 25, 2011

G+ - Where's the Buzz ?

Am I the only one that is beginning to feel that FB has reached its apogee in the social media space and is now at a stage where it’s simply going to hover for a while? How long can it expect to continue to add wave after wave of new users? It reached a point of critical mass long ago, but anyone who really wanted to join the site has already done so and those who haven't done so yet can't be expected to become avid, active users even if they eventually do so.

I am not at all suggesting that FB will crash and burn. No way. But time after time I’ve seen or heard people make comments like “I wouldn’t miss it that much” or “not such a valuable tool” or even “a waste of time”. Granted, the site has something like 700 million+ users, so there’s a ton of virtual inertia there, but except for enabling users to post lightweight, frequently superficial ‘updates’ and uploading photos, many of these same users don’t see the huge value proposition that FB would have you believe it offers.

One big caveat is that these same comments I noted above were taken from a BusinessInsider.com article the other day. Obviously the ‘audience’ for this online news outlet is somewhat more upscale, professionally employed, technologically astute, well educated, and skewed to the slight older side of the average FB user. Facebook’s own statistics show that only about 15% of its users are age 35 or above and fully well over 50% are between 18 and 34. These are highly prized demographics for advertisers of course – the most valuable group – but will we see that same 50% continue with FB once they reach their middle years and are themselves busy with their families, careers, mortgages, and daycare ? It’s unlikely that many will actually close their accounts, but the rapid growth of new FB accounts and the associated new postings I believe is unsustainable.

I think that what we’ll see is that as this 50% demographic ages, the users will use FB less and less frequently, and eventually gravitate more to G+ which (at least in its infancy) offers a cleaner interface and a simpler user experience – for now. I like G+ quite a bit and I certainly hope that those folks in the Googleplex hold true to their ‘Don’t be evil’ pledge, but it will be interesting to see what happens once G+ opens the doors to advertising and businesses try to entice users with assorted promotions, coupons, or discounts. At this time though, there’s not much content and current users aren't much of their own yet either (at least in my own G+ network). What I would be worried about if I were the G+ braintrust is that there seems to be no 'Buzz' about G+ anywhere (pun intended). At least, G+ isn't being funded by a start up and Google can certainly afford to give it plenty of time to succeed.

Pete Cashmore of Mashable offers up a great list of what he calls ’10 things Google Plus does better’ than Facebook, and I couldn’t agree more.

Tuesday, July 26, 2011

Some early thoughts on G+…

I’ve been using Google Plus since very early July after receiving one of the earlier invitations to try it out (Thanks Ray !). After using it for the past few weeks, I have a few observations about what may be the future adoption of this site. I’m not talking about the UI, or the technical aspects, or even about Circles and privacy considerations. Rather what I’m noticing is the (albeit very early) way it’s being used by those I’ve observed online and what I foresee happening in the longer term.

Most of my online acquaintances are heavily invested in Facebook and to a lesser extent, Xing. I even have two friends who still use MySpace. Although I have a few dozen connections and some photos on FB, I was never that much invested in it and I often went days without even taking a glance in its direction.

Even though the pundits are talking about the rapid growth of Google Plus (which is certainly true), what I’m not seeing is the any indication that people are abandoning Facebook in favor of G+. Let’s face it, that’s what Google wants and that’s what they’re going after. They want this to be a zero-sum game.

I happen to like the clean UI and better (to me) privacy settings at G+. I like the fact that it’s not all junked up with games and ads although I’m sure they’re coming. (I do miss being able to poke someone, though – seriously). I also miss the ability to do a true PM, but I can certainly get by with the ‘workaround’ presented (post to one contact only, and disable ‘reshare’).

Not surprisingly, many of users I’ve seen on G+ tend to be professional marketers, SEO types, ‘social media’ groupies, or those who like to be early adopters. What I have yet to see is the adoption of G+ by the high school, college students and twenty somethings who make up so much of the current traffic on FB. It’s going to take a huge catalyst – something, whatever – to get them to do more than take a peek at G+ and actually begin using it.

Remember, I’m not a marketer or SEO guy and my comments here are worth exactly what you’ve paid for them, but what I foresee is a dual social-media world in which both FB and G+ are able to coexist (in spite of Google’s best efforts). I doubt that Gens X and Y will give up Facebook in favor of G+, but what I see is their gradual adoption of G+ as a kind of steppingstone to a more professional (but still fun) social media outlet. Kind of a halfway house between Facebook and LinkedIn. Use of G+ gives everyone a chance to rethink their ‘friends’ list and start off again perhaps a bit more carefully and with more reflection than they may have used with Facebook, given the often willy-nilly, motley collection of ‘friends’ that one really doesn’t know in the least.

Both of my daughters have signed on to G+. One is 18 and the other is 21. They’re both prime candidates for adoption and the perfect target audience that Google Inc. is seeking for this new platform. Neither however, has posted anything even once as of this writing. That’s what I’m waiting to see.

Thursday, July 21, 2011

Brother, can you spare (another) €100,000,000,000 ?


Today’s report that France and Germany have reached a tentative agreement – a “common position” as the BBC terms it – is the first good news regarding the Greek debt crisis which also threatens Portugal, Spain, and even Italy if Europe’s central bankers can’t figure out a way to resolve the Eurozone debt crisis. There is still a lot of work to do, but at least the leaders of these countries, two of Europe’s leading economic powerhouses, seem to have reached a mutual agreement to propose to the bankers currently meeting in Brussels. Greece has already implemented a severe austerity program and the citizens certainly are unhappy with the cuts they must face, but if those austerity measures along with the extension and the restructuring of Greece’s debt obligations into longer term payments, ease the crisis and prevent Greece from a full default, then it’s a necessity not only for the European economy, but ours as well.

The proposal calls not only for another 100 bn Euros, but would allow Greece to extend its payment schedules and request/require (?) non-governmental financial institutions to carry some of the additional bailout burden. At present, this is only a proposal, but it’s an indication that all parties recognize how serious this is for everyone.

The second half of this worldwide economic crisis is with the potential for the US to default on its own debt obligations in less than two weeks. Our own US Congress and the President’s economic team must come together and hammer out a compromise solution to enable us to raise our own debt ceiling so we can avoid an embarrassing and economically devastating default of our own. To say these are troubling, worrisome economic times is an extreme understatement. Imagine the scenario if Europe can’t reach an agreement on how to resolve the Eurozone debt crisis at the same time that the US defaults on its own debt obligations because of the refusal of members of Congress to work together. Could the result be another economic maelstrom such as the worldwide depression in the 1930s ? I don’t know – I’m not a macroeconomist or a banker and my comments here are just my own ramblings. But I am a student of history and knowing that the worldwide equity markets loathe uncertainty, I fear the worst unless those politicians and financial decision-makers that we place our trust in do the right thing – for the sake of us all.

Tuesday, June 28, 2011

Teaching Young People About Life Abroad


I’ve always been interested in foreign languages and life in other countries. If anyone has ever read any of my other woefully sporadic blog entries, there’s an obvious recurring theme regarding events abroad or international economics or something related to life outside the United States.
One of my biggest regrets is that I never took advantage of a study abroad option while in college. It was there for the taking and I didn’t do it. Don’t ask me why, but I’ve regretted that (non)decision big time. Ever since, I’ve tried to steer my career in an international direction with small bits of success, but just a little. Enough to taste it, but that’s about it. However, I continue to study my languages (German and French) when possible and I’ve built an impressive network of contacts abroad in many facets of professional life. Unfortunately, my actual career goal of living (or at least working) abroad on a regular basis has eluded me, though I’m doing my best not to give up. Suffice to say that raising a family has forced me to put aside certain career goals aside in favor of more important work here.

But now, though I’m living that international experience vicariously through my daughter who at the moment is traveling through various European capitals before heading over to the UK for study at Oxford. I am proud of her - not only because she seems to have absorbed my love of languages and intercultural affairs, but she has managed to actually become quite conversant in French and is now working on learning German. Although I am moderately conversant in German, and can hack around in French, she has seriously surpassed my abilities in that language. She has the dreams I once had of living the expat life in some European capital, and I hope she achieves that goal.

If you are the parent or adult advisor to a young person today. Please do your young person, and the rest of us by extension, a huge favor by encouraging them to study a second (or even third !) language. Encourage them read newspapers from other countries – it’s not hard to find the ‘English’ option on most foreign news outlets and online services. Study economics. Look at the ‘Picture of the Day’ on the BBC or Stern.de websites. See how others live and what they’re doing or celebrating. We’ll all be better the more we each understand about the background and cultures of those who live in other corners of this increasingly smaller world. Encourage them to take every opportunity to live, study, or work abroad – make the opportunity happen, and help them achieve it while they’re young, because once that threshold to adulthood is reached, it becomes much more difficult to see the world as others do.

Monday, January 24, 2011

Santayana revisited

I was never much one to read (or understand) the great writers of philosophy. Try as I might, I just never quite understood what it was they were trying to say, and I always felt out of my league when someone I know is able to intelligently discuss philosophy. Kant, Schopenhauer, Hobbes, Nietzsche - the list goes on, including the ever popular George Santayana, who most people, including me, only know through his famous aphorism, usually paraphrased something like, "Those who do not remember the past are compelled to repeat it". I've never read anything he's written except this, but it never rings truer than it does right now.

It is Santayana whom I think of when I read the news about the return of 'Baby Doc' Duvalier to Haiti. The return of this man to this wretched land is the last thing this poor country needs. Unfortunately, I think he smells an opportunity to step back and reclaim some of the power he once held over this small nation but perhaps more likely a chance to regain some of the riches he once held after he first pillaged the country. It's not hard to note that a a weakened central government, a ruined infrastructure, a citizenry that is desperately poor, and in in the capital city itself, lacking even the most basic necessities - provides an open door for a charismatic leader to step in and attempt to take the reins. Say nothing that Haiti currently has a democratically elected government and president. We've all seen populist uprisings in other nations across the globe. Sometimes nations rise up and democracy reigns afterwords (Poland, and then eventual fall of Soviet domination across Eastern Europe); sometimes the result is even more severe oppression and bloodshed (Myanmar, Iran).

The legacy of pain and suffering that the Duvalier family has foisted upon this nation cannot be ignored or forgotten. He, his father, and their murdurous Ton Ton Macoutes raped and pillaged this country for what little wealth it had. He has no business being anywhere except in a Haitian prison, yet here he is now, returned from an quiet life in Paris, supposedly back in Port au Prince to help with the reconstruction of the country. Does anyone really believe him, and why should they?

Sadly though, with something like half of Haiti's population under 20 years old, will anyone even remember the past?