Valve’s Steam and Mac gaming

I was attending a LAN gaming session (aka. real “social gaming”) with a group of friends a while ago. Last time, we spent a lot of time installing (and updating) games and trying to get computers to find each other and I had to borrow someone else’s computer. This time, we were quickly up and running and I could proudly play on my MacBook Pro.

Sure, I had installed Windows 7 using Bootcamp on my Mac, because while VMware Fusion was okay for Tales of Monkey Island and even Torchlight, it just doesn’t cut it for hardcore gaming. The only game that I had any problems running over Bootcamp was, oddly enough, Postal 2. Otherwise, I was equal among my PC using peers. I had dreamed about this day.

But what really made things easy for all of us was Valve’s Steam, a gaming portal/service.

The iTunes model strikes again.

Steam ...for the rest of us

We have passed a long time the point where new games are automatically better than older just due to technological improvements. We were still playing games we played over 3 years ago, and some of them were “old” even by then, like Unreal Tournament 2004. The reasons for this are Windows XP and DirectX. These two technologies have enabled a decade of games that are still playable almost without any emulation. The biggest change is happening right now with multicore and 64bit CPUs.

What Steam has done is basically something that other forms of entertainment could learn a lot about, if they could get over their stone age business logic and hunting down their customers. PC game piracy has always been a problem and one reason why PC gaming today seems to be an afterthought to console gaming. Steam (and other similar services, like Impulse) mostly eliminates the piracy problem with a central authorization structure, but yet provides added value to the customer. You only need to install Steam on any computer and log in and you have access to all your games (provided that you have the bandwidth to download the over 2 GB that most games today use). This is something that isn’t possible with iTunes and only recently was possible with Spotify.

What really sets Steam apart here from other entertainment industry offerings is actual value for users. What Steam has done, is really catch the long tail of ecommerce, even though the concept of long tail has long since gone out of fashion. By being able to sell couple of years old games that are virtually impossible to find anywhere (legally) and for a fraction of the price is just amazing. I was able to buy Psychonauts, the most amazing game ever, for just 2 euros and even at the normal price of 9,99 euros it’s 1/4th of what it did cost on the shelves (and it still costs around 15 euros on Amazon). After the Steam’s holiday sales during Christmas, I found out that I had bought many games, mostly because the price was right.

Other benefits from using Steam is that all your games are automatically updated and even for some games, your progress and settings are saved in the “Steam Cloud” – allowing you to play seamlessly on multiple computers.

But there aren’t any games for Mac

The year 2010 turned to be a pleasant surprise for gamers, especially for those, like me, who have switched to Mac. First, Telltale Games announced that their games would be available for Mac as well. This was excellent news for all Sam & Max and Monkey Island fans who would no longer need to boot up VMware Fusion.

And, sure, there have always been Civilization IV and The Sims 3 for Mac, but having new, native games for Mac was excellent news. Clearly a certain threshold has been breached and the amount of gamers living in self-denial on Mac is now large enough that the market is suddenly viable.

Nothing could have prepared us, the people who still reflexivly keep our left fingers on WASD and use multi-button mice, for the annoucement from Valve that both Steam and Valve’s game engine Source would be available for Mac.

Now, I don’t see that this will mean that soon Mac OS X would be equal gaming platform with Windows, but it does warm my heart. I know that I still need to boot to Windows to really enjoy gaming. The reason Telltale and Valve have been able to pull this out is based on their choices to use cross-platform frameworks (like OpenGL) instead of Windows-only technologies like DirectX. You also need to keep in mind that both Telltale and Valve seem to have target audiences that use Macs and have both targeted certain niches, the former makes high quality “casual” adventure games and the latter high quality first person shooters for more “hardcore” crowd. It is unlikely that other game developers or publishers will follow suit. For a true revolution, Microsoft would need to not only port DirectX to Mac OS X but also develop it at same pace with Windows. Looking at Microsoft’s track record with Mac software, this is even less likely than playing Left 4 Dead natively on Mac looked a couple of months ago. The more likely scenario is that as hardware gets faster and emulating a graphics card gets more efficient, running even the most recent 3D games in VMware Fusion starts to be feasible. A possible scenario is also that through technologies like OpenCL, PC games aren’t as dependent on GPUs and DirectX as they are today.

On the other hand, this shows how Apple’s decision to invest in cross-platform frameworks like OpenGL, OpenCL and WebKit can really pay off in the long term. It also shows that being nice and having something like Bootcamp can be an advantage. I was really surprised how easily I could install Windows 7 on my Mac and how Apple had provided drivers for everything.

What Steam proves is that to succeed on the internet, you really need to be familiar with your customers and understand their needs and truly deliver superior experience and added value to them. This is nothing new, but somehow the rest of the entertainment industry seems to think that they can still get away with last century tactics.

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E’ship diary part 6: on the important matter of product design

product design in startups.jpgI made a fairly big mistake with my company at the start, I tried to segment functions in the company too fast. Maybe it was my business education, maybe it was books like “The E-myth Revisited,” and certainly it was my lack of management experience, but I tried to keep my area focussed on business development and away from technology for which “I have a CTO.”

But startups don’t work this way and the entire reason for working in a team is that you share the work and hopefully create synergetic effects (1+1=3!) in the process.

And the truth is that even as for non-technologist like myself (I am a geek though) designing products is not so hard.

I had a discussion with an industrial designer (my all time fav. people to hang around with) concerning the term ‘a perfect product.’ Her field understands the term as a product that functions perfectly, I choose to add “for the customer” to that definition.

The start of product design is always to ask: “so is this cool for people?“, meaning will they like it, do they need it, will they pay for it? I don’t think all question can be answered from the start, except the one of “is this cool?”

A very big part of entrepreneurship is sales, and as they say: you have to believe in what you sell. Easier when you already have a product, I’d love to sell Apple computers for a living, but when the product doesn’t exist, you have one of two choices: one, you design the product yourself, starting with “is it cool?”; two, you trust that your CTO can design something cool.

That’s not a problem, except for one thing: is cool something we decide or the market decides? It is of course the latter and one bullet point in an entrepreneur’s job description missing from that of the CTO’s is keeping a close eye on the market.

Therefore, product design is absolutely something entrepreneurs cannot delegate! And on that short note, I’ll leave it.

All my entrepreneurship diary posts can be followed under the tag ‘Vincent’s eDiary.’ I don’t write about what we do as a company on purpose, but you can always ask in the comments or via the email address on the right. Picture courtesy of The Esoteric Church (of all places!).

IDEA GENERATION: what is your workflow?

visual excel for idea generation.jpgI asked yesterday for a more graphical and intuitive way to plan out costs for products and projects. The reason lies in an essay I co-authored several years ago with Jeremy Fein, co-founder of this blog. I forget the exact title of the thing, but its premise was that good entrepreneurial teams are composed of both brains & brawn (Asterix and Obelix, in other words). It has since become my philosophy towards entrepreneurship and building teams.

Good ideas also reside in intersections between different modes of thinking. I don’t know who made up the idea of the ‘execution multiplier for ideas‘ (Derek Sivers posted it on his blog once), but an idea is worth little without someone carrying it out. Similarly, in Neil Fiore’s book “The Now Habit” (the ONLY self-help book I would ever recommend to people) he writes about the source of good ideas, which often come when you least expect it: on your breaks, your holidays, anywhere which is not work-related.

While productivity is a great thing and crucial to executing ideas, idea-generation itself is actually not very compatible with the productive mind. But it’s not impossible to combine the two either.

Let’s look at a sample workflow from problem to idea generation to product (product meaning the outcome of idea generation, which has to lead somewhere):

1. You have a problem (duh… no really, don’t come up with an idea if it doesn’t solve a problem!)
2. You discuss it with people to try to figure out it’s parameters —what is the true gist of the problem?

This is a good time to get stuck. Where do you go from here? Do you go the left-brained route — the super-rational approach that would e.g. benefit from some number crunching in Excel? Or do you take a right-brained approach — the artistic approach of drawing out the problem further on a white board or an outliner?

It of course depends on the complexity of the problem, but it isn’t time yet to go super-rational all of a sudden. It breaks you out of creative solution mode and gets you into execution mode, which is really brain-dead “getting things done” mode. Before you get things done, you have to define “things” much further.

The next step in my process would be:
3. draw out several solutions, preferably in a group, and discuss them and the logic behind it. Is it an elegant solution to the problem? Does it solve it or does it complicate it? What scenarios are there and what are its parameters?

As soon as you come to scenarios, we come into process mode. And this is where a more left-brained approach of calculating resource-allocation (people, time, money) absolutely makes sense. In my last post, I was hoping that someone would have a good way of making this more compatible with step 3, I am still waiting for someone to come up with a good solution, however.

4. calculate it out. What are the costs associated with each solution, what are the benefits of each solution?

Costs vs. benefits could also be called expenses vs. income on a financial projection for a startup. Solid resource allocation is ultimately the lifeblood of a company, however in an early stage it is also the language to use when looking for funding for your company.

I don’t want to be too rigid about this; I’ve struggled with the process of “problem -> idea generation -> execution -> product” in the past and think that it’s an area that benefits from several approaches and also leads to more-than-several pseudo-suggestions on how to approach this.

Rather, I thought to expand a little on yesterday’s post and clarify why I really do want a more visual Excel (for lack of a better term). If you want to combine right- and left-brained perspectives, a white board alone won’t do it and Excel alone won’t do it. I want software that does both.

SOFTWARE SEARCH: Excel-based Graphical Outliner for Mapping Cost Scenarios, Does it Exist?

Just a quick shout out to all you smart people out there. For a cost analysis, I’m trying to build several alternative cost-structures, but preferably in an outliner-like format. I’ll go into what I mean in a second, but if you can think of anything, please comment or send me a mail on techiteasyblog (at) Google Mail.

What I want is a combination of this:

Microsoft Excel cost modelling.jpg

And this:

graphical excel omnigraffle cost modelling.jpg

And what I’d like to do with it is drag & connect different modules together and have it auto-add the end-sum when multiple modules are linked.

Any help appreciated, thanks! I have no reward for you at the moment, except if you’re in the Netherlands or I’m in your country, I’ll take you out for a drink and I will definitely pimp your site in this blog post if you include it with your awesome answer!

Social web for the long-term

Now that the biggest waves of Buzz hype are hopefully behind us, it’s a good time concentrate what Google Buzz actually is and what it isn’t. I have followed Buzz with great interest and I’ve previously talked about Jaiku, feeds and discussions on the web on general here. I even pushed Plaxo at one point, but they are pretty much dead in the water right now. I was couple of years off and a technology wrong with my prediction of sort-of real-time web in 2008.

Jaiku rebornIn a way I view Google Buzz as a reference platform, like Google Wave Preview, instead of a finished product. Of course, because Buzz is right there in Gmail’s interface, it’s Buzz deserves to get all the critical comments about its launch it got. It could be argued that without exposing it to the larger public at start, it would have been impossible to get all those great ideas to make it better. One interesting thing to note is that most requested features for Buzz are UI-related. However, I’m more interested in what makes Buzz work behind the scenes, because if Google can get the critical mass behind this, things are going to be great.

It was again a sad example of the sorry state of technology blogging when Buzz first hit the web. In that little world that’s so enamored with Twitter, Facebook and status updates, it never occurred to anyone that Google was aiming much higher. One of the worst offenders was the serial-troll Lyons. He was followed with lots of others who came up with as lame puns in their headlines without actually figuring out what they were looking at. Instead we got petty lists of “fails” in Buzz. Yeah, on the surface that these Techmeme all-stars barely skim, Buzz might resemble Twitter, but the differences are pretty obvious from the start.

The attention spans are so incredibly short that that they have completely forgotten that even in this age of agile Web 2.0 iterative processes, things take time. This was probably best illustrated by this post, where the author totally oblivious to the lineage of Buzz claimed that

As always, time will tell whether this is a game-changer or just another Jaiku, the Twitter competitor that Google bought but never found a way to leverage.

In their defense, even Ars Technica got it wrong.

The only reason I can come up with why people associated Buzz instantly with Twitter was the simple user interface. Much more interesting comparisons would have been with Friendfeed (which kind of tried to do this in simple way), Yahoo Updates (which kind of tried to do this in a difficult way) or it’s genetical ancestor Jaiku (which kind of did this LBS twitter thing in a pretty nice package a good three years ago).

While I agree that Buzz is a rather odd combination of product/platform/project, I do find it exciting that Google has the resources to just try things. We are so early to this social web thing that if someone pretends that they know what exactly works, they’ll be proven wrong in a fortnight. Sure, I do agree that Google might be forgetting that what people want are applications and not technology (a mistake Nokia keeps on repeating, and one reason why they are so incredibly lost in the technology woods. Or like Yahoo, which just pumps out nice web tech with no apparent apps or revenue streams). Google has the money to experiment and the mindset to test things on a large scale. That takes balls. That’s what the whole world wide web was about in the first place, experimentation. You have to be pretty clueless if you take anything on the internet right now as granted.

Seriously, take a long view here. Even on the internet, you need some time to lay out the groundwork even when you’re working in the application layer. If you think about the 2,5 year timeline between Jaiku’s acquisition and Buzz, there were little hints along the way in many of Google’s products. To be able to have something like Buzz, Google had to first come up with a friend/follow system and a location system. You know like following other people on Google Reader and Google Latitude? The ADD-riddled tech bloggers were pretty hyped about Google Latitude and how it was going to kill Brightkite, Foursquare and other LBS services, but somehow Google Buzz failed to generate a single comparison to these services?

But all this is just technology. What about the revolution that I hope Google can pull with Buzz? What’s the beauty in Google Buzz? You only need to check Google’s API page for Google Buzz and you’ll soon realize that all the stuff behind what makes Google Buzz work are open standards, which enable pretty ground-breaking integrations that could just solve the mess discussion on the internet is right now.

As a sidenote, when tech bloggers complain how they can’t add this and that twitter stream to their Google Buzz timeline or how the tweets are not in real-time and all that, they would only need to look at that API and realize that because Google looking at the whole thing at much higher level, it’s actually the publisher who needs to find a way to enable a thing awkwardly called PubSubHubbub, and in that instant all the content is pretty much real-time. Of course, I have no idea if it is at all feasible to use PubSubHubbub in the scale of Twitter, but the point is that Google is not planning to have custom pipelines to Buzz, but to play with common, open protocols and APIs. Another point is that once your content works with Buzz, it works with any aggregator/social app that has decided to have that same common, open infrastructure.

So, instead of trying to centralize every user, every piece of content to their site, like Facebook and Twitter, Google has had the guts to try and harness all the discussion on the web to their service. It’s going to be a happy day when this post right here and all the discussion and the comment this might generate are all happily syndicated in Buzz.

The open nature of Buzz is not all news to some creatures on the web. On Twitter and Facebook you can follow and be followed by inanimate products and abstract brands and they can have pages and whatnot, but right now, to be able to take part in Buzz you need to have a Google Account and that means that you have to be a natural, real person and you shouldn’t have more than one account. This is pretty bad news to all the “SEOs” and other “internet marketing experts”. It is also excellent news and pretty amazing on this forcing-marketing-down-your-throat in this “social” happy place we call the web 2.0. Simply, that means real people and real feeds that try to integrate the real discussion on the web. All those @’s and #’s? What about real discussion with real threading and real topics? What about a renaissance of long-form personal publishing? (If you didn’t follow any of the previous links, please read this. I’m totally with DeWitt Clinton here).

The trick to make all this work and where Friendfeed and Plaxo failed is critical mass. I’m pretty sure that the guys at Facebook are really looking at Friendfeed again and rethinking what parts they should chop off it instead, because if Google can truly pull this off and make this pipe-dream of semantic and social aggregation nirvana that plumbs everything out of what it can get it social graph on work, Facebook has no other option than to open up and that’s pretty much the end game for them right there.

The technical challenge is really complex and it’s going to take some time until all the pieces are in place. Google has put their thing out in the open and it is now the publishers’ turn to do some back-end changes so that this discussion utopia can get its legs. I’m not expecting the social web to turn on its head in a day, but this is some serious stuff for the long term. The reason why I think Google can pull this off is that Google just needs to show ads on the web to make this worthwhile, Facebook et al. need to monetize every inch of their userbase. Google can, and it is in their advantage, to utilize open systems and not lock people in. And, hey, maybe things don’t pan out. Google has the cash to try something else.

Single Purpose Browsing & Why Tabbed Browsing Makes for a Pretty BAD User Experience

When Firefox, previously called Phoenix and Firebird, launched tabbed browsing (well, after Bloatzilla), I was super-excited and pimping it to all my friends. It’s been a while since I felt this way and, with tab-saving in browsers (which I of course turn on), I tend to choose the browser with the least tabs saved in it. Apps like Choosy for the Mac, which gives me a pop-up with a choice of browsers whenever clicking a link, or which chooses the best-performing browser running at the time, are a life-saver, but they are just a piecemeal solution to a greater problem.

Firefox, in its latest version (3.6), introduced a nifty feature for a better tab user-experience, which I hope they expand a little more. Basically, when you click on the little icon on the top right (see screenshot), you get a nice overview, called “Showcase,” of all the tabs loaded in your browser at the time.

Firefox showcase tabs.jpg

A similar implementation is of course Safari’s and Chrome’s start-window, which shows you an overview of your most viewed sites, making it a visual replacement for your bookmarks and/or history managers.

For some time now, you’ve also had the feature of restoring tabs after closing your browser, either voluntary, which makes sense as tabs consume an insane amount of ram and CPU (especially for Flash sites, but for plenty of other things also), and as a safety feature, when your browser crashes. Saft for Safari (Mac only) introduced a tab-recovery user-interface (see picture), where you see a list of tabs previously loaded and where you can tick or untick sites that you want to start up with. I believe Firefox has a similar interface for tab-recovery after a crash.

Saft restore browser or tab windows Safari.jpg

But it’s all still a hassle and I really haven’t come across a perfect implementation of dealing with several dozens of tabs. I wouldn’t mind having the option of starting Firefox tab-free, with option of restoring whatever tab I used previously, in its original state, via something like the Firefox Showcase interface. There are some Firefox extensions that do just that, but I’ve so far not come across something that is intuitively usable.

There is the other problem, which is that sometimes you want to open a browser for a single purpose, such as Google Maps, Gmail, or the weather, and it’s annoying to have to open a browser with 50+ tabs in it. Some sites have become applications rather than sources of information and just like it doesn’t make sense to open the full Office suite when opening Microsoft Word, it doesn’t make sense to open several tabs to go to one site.

Since last night, I’m experimenting with Fluid on the Mac, one of a few, I’m sure, applications that turn websites into applications that launch from your application folder. So I now have a Google Calendar app, a Google Docs app, etc. For Gmail, I really like Mailplane, which also uses Webkit, Safari’s open source sibling, as a basis for creating a service dedicated to one site, or in Mailplane’s case, multiple Gmail accounts.

So far that is the best user-experience for me if I want to go to a site that is also an application. Tabs, I’m sure, have a purpose, but they just invite information overload and the guilt for not being able to deal with it all. If you, the readers, have similar experience, feel free to share them, and if you found solutions, please let us know as well!

Addendum: talk about measuring the real cost of tabs… In the last weeks, I received 12 identical letters from the Dutch government regarding an access code I requested once. Turns out that it was one of my 50 saved tabs in Firefox that, every time I restarted the browser, requested a new code when the page loaded.

Enterprise 2.0 Forum : the Jive side of Swiss Re project

(Hi It’s Cecil here. A french version of this blog post is available on Heavy Mental)

The Enterprise 2.0 Forum to be held on 17 and March 18 in Paris at the Meridien Montparnasse will present some case studies. The Swiss Re project is one of them.

So I’ve contacted Jive Software for an interview to check Jive situation today (rather good as the Gartner Magic Quadrant tends to show) but also their view on that project.

I owe quite a lot to Jive. As part of my job, I invited back in summer 2008 Devan Batavia (VP Sales EMEA) to give us a presentation on their product, then Jive Clearspace today Jive SBS (Social Business System).

It was a revelation. All the problems of knowledge management, innovation, productivity in a global enterprise and complex environment, all these problems that I was intimately involved with in my everyday job, all appeared in full light in one of the most relaxed and most professional presentations that I have ever witnessed.

To such extent that it has inspired my own presentation Enterprise 2.0 and allowed me to put order in my ideas and shed light on an irrefutable truth : my subject is Enterprise 2.0.

Devan has politely declined the interview and rerouted me to Nathan Rawlins to answer them. Nathan is Sr. Director of Product and he is in charge of steering the revolution of the Social Business. A bit of Jive promotion of course, but many ideas and comments that are worth visiting … Read more »

CeBit 2010: On 3D technology and its commercial potential

CeBit 2010 3D.jpgThis year, I had the chance to visit CeBit 2010 for the very first time. It was an anticlimactic experience. Being raised with reports of CESs and Macworlds, you can’t help but hope to stumble on the next big thing, but what I was confronted with what had the air of a dusty town ripped out of a Western movie after all the gold diggers left for fairer grounds. In this case, the gold drought is the recession, and the aftermath (to me) appeared as a number of very empty spaces and the remainder seemingly under-budgeted, not “2010 innovative” but 2007 innovative, and with a big sticker on their back saying: “I’m under-confident, please buy something!”

To me, the most interesting technologies were 3D and a massage chair that took me under for 20 min. The biggest news story, however, was USB 3.0, a sad state of affairs if 2010 is marked by a tiny, soon to be in every computer, plug (no matter how fast that damn thing is).

Ignoring the massage chair, which I can’t recommend enough, 3D was the hot topic, inspired by, of course, Avatar. Everybody, from Nokia to Nvidia, appeared to have something related to 3D. They mostly had excuses for it—Nokia was pimping its high bandwidth infrastructure for 3D content aimed at TV & telephone providers; Nvida was pimping its 3D shutter technology for consumer PCs; Frauenhofer Institut was pimping its glasses-less 3D technology; and more and more and more—but my end-conclusion, also after trying to explore the potential for a revolution that was Avatar, was that 3D is an excellent gimmick that will draw a crowd to your stand or cinema, but will leave you disappointed 2/3 times.

Ironically, Nokia had the most impressive display of 3D, showing it off on a 15,000 euro JVC flatscreen. When asked for details, however, all they could tell me was the price of the TV and that their bandwidth technology was not for sale to the “likes of me.” Very arrogant, those Nokia folk and it wasn’t just the 3D guy either… Nvidia’s shutter glasses also worked well and I see a real potential for 3D gaming. Frauenhofer’s glasses-less 3D-TV… pah! The problem with 3D is that it’s so easy to do it badly and 3D without glasses is far from ready. 3D with glasses is far from ready!

I don’t get the obsession with not wearing glasses either. First of all, they’re roomy, which means that you can wear them over existing glasses, they won’t make the claustrophobic more claustrophobic, and they’re disposable. Putting on glasses in the living room is kind of like turning off the light when watching TV.

Last, but not least, I liked lcReflex, which developed an interesting, if not very portable contraption, that makes applications on a computer screen three-dimensional. It involves something they call a Stereomonitor, two screens joined together at a 90 degree angle (one front-facing, one on top facing down) and a semi-transparent mirror in the middle. Put on glasses and you can manipulate an image of brain in 3 dimensions, which should be very interesting for, eh, brain-scientists and playing 3D Tetris.

What’s fairly clear is that we are very close to having 3D in our living rooms, whether it’s for playing games or for watching (selected) TV-shows and movies. But 3D has the same problem that HD-DVDs and -TVs have, which is that it’s insanely niche. You can’t play everything on it and you need some pretty expensive equipment to play it. That combination doesn’t justify much of an investment in it.

The best chances for success belong to companies like Nvidia, which produce consumer-priced solutions for consuming content. Add to this that it is (relatively speaking) fairly easy to convert digital content from 2D to 3D. I very much see the next stage of gaming to becoming 3D.

I’m much more bearish on video-media. Great that cinemas have found a new revenue stream to subsidise their troubled existence. Great that 7 out of 10 filmmakers are considering to make their next film in 3D. I don’t think cinemas have to worry about living rooms competing with them on that level anytime soon. While the need for a big screen to enjoy 3D is a myth well-worth breaking (and it soon will be in gaming), it is still a powerful way to experience a movie and something you can sell at €/$ 15 a pop. Home-entertainment still has the expensive technology problem and the fact that BluRay DVDs simply aren’t selling to anyone except Playstation 3 owners.

As mentioned, 3D’s gimmick power is strong, but that will wear off after having 3D technology in your living room and hardly any media to consume on it. It’s much better off in cinemas where the growing few pay a few bucks more to see space debris floating above their heads, or on consoles where the price of a 3D add-on is hardly more than buying a Guitar Hero guitar.

E’ship diary part 5: project management and vision development in the face of ambiguity, technology and market risks

white box development.jpgHaving reached a personal milestone, part 5 of my entrepreneurship diaries, I should mention that it’s very pleasurable and useful for me to write on these topics, and I hope it’s the same for you. In this post, I want to briefly address the issue of uncertainty in early stage technology companies and how that affects management.

As I mentioned before, I was asked to join this company as CEO after consulting them on the commercial applications of this exciting new technology. Joining a year later, we had a good understanding of the strengths and weaknesses of the current organisation. During the consulting stage, I wrote a business plan with a fairly clear time line (to me and our sponsor), but it wasn’t being executed upon as required. One of my the deliverables I set myself was therefore to get development back on track, which not only respects the resource boundaries (financial, human, technological) we face, as well as sends out the signal that we are a serious business.

One thing I keep hearing over and over from entrepreneurs is that you have to be comfortable with ambiguity. And that is absolutely true. We continue to iterate on ideas based on changes in technology, customer and partner feedback, and our own ideas, something that would drive any sane man crazy, but we have to keep it under control. The best way that I find to do that is continuing to develop the vision of where we are going (the strongest motivator I can imagine) and maintain a loose type of project management that gets us to that goal.

I call this project management, as it deals with schedules, milestones, and resource allocation over a period of time. Uncertainty is an important factor to consider in this. In a large company, chances are you’re dealing with a predictable environment, in an early stage startup this is not the case. Getting a tighter schedule in place continues to be a challenge we are working on, however I find that being alert, flexible, and adaptive all the time contrasts with the more stable art of project management. Please correct me if I’m wrong, in which case present a solution also! Of course, there have to be thresholds in place, which to me is very much defined by risk assessment.

Regarding risks, let me start by saying that not all risks can be addressed, which is why being comfortable with ambiguity is so important. And second, there are many different types of risk, technology, financial, market, etc., but one usually outlines the thresholds that you have to respect. In my case, I see this clearly as market risk, as nothing matters if your customers aren’t buying… however, this really is not something to take for granted.

In medicine for instance, which is traditionally patent-based and largely dependant on a complex regulatory process, you have a 15 year window, of which you can spend up to 12 years developing your super-innovative cure. Clearly the technology risks outweigh the market ones (note: this ignores the rise of generic, cheap, knock-off drugs). In the web-industry, on the other hand, it’s perfect for rapid prototyping, it’s hard to protect innovations and easy for competitors to clone them, and it makes much more sense to push out your products asap. That means that there can be plenty of competition and the risk lies in grabbing sufficient market share to make a (sustainable) profit.

In our case, we are not as “high-tech” as medicine and not as “high-market” as web-development, in the sense that we face both market and technology risks. However, I see market risks as more important and try to align both market & technology approaches together. As an example, one of the things we did several months ago, was demo our technology to the general public and to selected partners. After the experience, we interviewed them thoroughly on their experience, as well as their initial expectations. We want to make sure that people don’t expect something different than what we deliver and that our product meets and exceeds their expectations. That gives us a clear view of where we want the product to go.

On a technology level, that presents us with certain thresholds in terms of “the experience” and price-points. And whenever we face a technology change, whatever solution is being developed, it has to fit within that end-picture the customer expects. That also overcomes the problem of black-box development, which is not uncommon in technology development.

So, that’s more or less how we continue to develop the vision for our company and the project management that supports it. We started with a lucid dream of producing great technology. We demoed initial versions and tried to align our vision to the needs of our users. And we end up (hopefully) building what our customers want and pay for. I would love to do this in a web-environment, as that really makes prototyping so much cheaper and quicker, but we do the best we can with our not so intangible technology.

All my entrepreneurship diary posts can be followed under the tag ‘Vincent’s eDiary.’ I don’t write about what we do as a company on purpose, but you can always ask in the comments or via the email address on the right.

Enterprise 2.0 : the end of office politics ?

I have been thinking about this topic for a while now. Enterprise 2.0 book from Andrew McAfee chapter 8  (Looking ahead), a nice twitter conversation with @oscarberg, and a New York Times article about Microsoft Creative Destruction : all combine to convince me there was some room for a blog post. Snip from the NYT article :

Internal competition is common at great companies. It can be wisely encouraged to force ideas to compete. The problem comes when the competition becomes uncontrolled and destructive. At Microsoft, it has created a dysfunctional corporate culture in which the big established groups are allowed to prey upon emerging teams, belittle their efforts, compete unfairly against them for resources, and over time hector them out of existence. It’s not an accident that almost all the executives in charge of Microsoft’s music, e-books, phone, online, search and tablet efforts over the past decade have left.

As Wikipedia defines it :

“Office politics is the use of one’s individual or assigned power within an employing organization for the purpose of obtaining advantages beyond one’s legitimate authority. Those advantages may include access to tangible assets, or intangible benefits such as status or pseudo-authority that influences the behavior of others. Both individuals and groups may engage in Office Politics.”

One has to be extremely pedagogic to explain me how on earth this may help the company in being more profitable, increasing customers satisfaction and being a better place for employees, the three goals of any company according to Eliyahu Goldratt.

Read more »

Toward Enterprise 2.0 with Cécile Demailly

Early Strategies has just released a fresh an extremely useful report on Enterprise 2.0 and the current level of adoption.

This international (FR, UK, NE, US) survey (summary) was conducted between November 2009 and January 2010, targeting Multinational Companies (MNCs) and international organizations (France-Telecom, Cisco, AT&T, Amadeus, IBM etc …). The clear intent was to study change execution.

This report sheds a bright light using real life examples on favorite topics of the Enterprise 2.0 Activists community : cultural values, strategic reasons, change agents, executive champions, management inducements etc …

This analysis is precise enough to distinguish different results depending on the type of company business (B2B, B2C). It’s pretty interesting to see the consequences this difference creates in companies adoption strategy.

The results and conclusion on strategy, maturity, change, policy but also on people daily work and perceived usefulness have priceless value for anyone wishing to embrace the subject of Emergent Social Software Platforms (ESSP) adoption.

Last but not least, the report addresses the ROI issue, the one most E20 activists are the least comfortable with – Andrew McAfee included. Early Strategies approach differs as it distinguishes tangible from intangible ROI. thus provides a completely different perspective on the whole thing.

Together with McKinsey’s and Cisco, probably the most insightful report on the topic I’ve read so far.

Tech It Easy has been lucky enough to have the opportunity of an interview with the person behind Early Strategies : Cecile Démailly. Impressive professional background, real enthusiasm and insight on the ESSP topic, and a charming person : Tech It Easy readers deserve no less …(Note, I’ve bolded+italicize most interesting and valuable parts- there are quite a few). Read more »

Positioning with other IT systems: the liquid nature of Enterprise 2.0

Emergent Social Software Platforms (ESSP) are now at the doorstep of the enterprise. The question one may ask is : how does it fit alongside the already existing Enterprise IT systems.

Companies have spent a fortune during the last 10 years implementing business critical Enterprise wide systems such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Supply Chain Management (SCM) or Product Lifecycle Management (PLM). Yet another system could be seen as a risk for the balance of the whole company IT strategy.

In his enlightening book on PLM (Product Lifecycle Management, Driving the Next Generation of Lean Thinking) Michael Grieves proposes a map to illustrate the positioning of PLM together with the main business critical IT systems.

This blog post extends this map and propose a perspective on Enterprise 2.0 platforms positioning.

Read more »

Why I look down on coding (and why I’m completely wrong about it)

beautiful machines.jpgI live in a funny world. My company, which is composed of several disciplines in the manufacturing, industrial design, and, yes, programming space, is one factor. I sometimes see people screw together contraptions in our workshop, and I see coders banging away at their PCs and Macs, and I wonder what the hell I am thinking calling programming low or high tech. There are different degrees to everything and just like metal and a few screws can lead to an amazing creation, so lines of code produces the amazing virtual reality I interact with most of my days.

This will be a short post. I think that the Internet has proven to be a two sided coin. It brought us freedom of information, but bits are also information, which makes it hard to gain value from them. Looking at it through a business lens (a flaw of mine) I can’t help but wonder if programming is a worthwhile direction to take, if you want to make money at least.

The other side is what I wrote about in paragraph one. Code produces wonderful things and I am grateful everyday for the fruits of that labour. So I sincerely hope that my world, the business world, will continue to allow for “the code” to reign free, and for those that produce code and its products, to reap the rewards and continue to do what they love.

So I apologise for whatever I wrote previously, namely that software is not high-tech, i.e. innovative, because it simply does not apply to all code (just to the 100s of 1000s of me-too apps and websites out there, which ruin it for the good ones).

This post was inspired by Fred Wilson’s post “Code As Craft” and by one of our interns producing “beautiful code.”

E’Ship Diary Part 4: what to pay attention to when starting a business

facing the mountain of starting a business.jpgThis is just a short list of challenges that I faced with my current business. Feel free to suggest other things in the comments.

  1. your relationship with the company & people you’re starting with: coming out of a position that involved reading a lot, a lot of contracts, I’m kind of particular about how to phrase them. I like the idea of contracts if they very clearly state the boundaries of your position and the relationship you have with others. It should also clearly state the deliverables that have to be met, though that can also be included in a separate “action plan.” A good contract should leave no room for misinterpretation, which is why it took about 3 weeks and 8 draft-revisions to get it just how both me and the company wanted it. Of course, a 1 person business doesn’t have to do this, nor someone that doesn’t get paid, though both in “hobby (that become) startups” situations and multi-team startups, it’s good to have a thing on paper that states a number of things including responsibilities & shares, as well as, if possible, time-frames for carrying out the job. You don’t need a lawyer for this, it’s best to start with a simple list of what you want to achieve and work from that. Very important is to mention what national law this contract falls under (e.g. Dutch law or French law), full names & addresses, etc.
  2. your intellectual property: I’m kind of running up against something like this now, which is why I think it’s worth mentioning. IP has different values in different industries of course, but in my industry, a high-tech non-software one, it plays an important role. Not only is it important to dedicate certain resources at protecting your IP, you also have to watch out that others don’t lay claim on it, just because you spoke to them once or twice (or worked there at some point. The Mattel vs. Bratz case is an interesting one to follow for that.). IP protection also plays a part when talking to outside parties like investors. Last but not least, it does protect you against copycats, though, as mentioned, the value of patents or similar varies from industry to industry.
  3. your own finances: They say that you should have enough saved up to not have to work for 1 year. I’ll just say that I made sure that I do have a comfort zone, though not so much that I won’t stay hungry (lesson 101 in entrepreneurship and raising (rich) kids: instill a hunger for success).
  4. the company finances: at my last company, my job was to handle certain business affairs for companies that have their legal address with us. Company finances are a complex affair, and plenty of swindlers out there try to get out of taxes here and there. Not that I don’t sympathise, but be careful of not signing something that makes you responsible for someone else’s problem. Something similar occurred last year, where someone signed something that nearly (!) made him responsible for ca. 1 million euros in unpaid taxes. Let’s just say that the lesson was to have complete transparency from the start and not sign if it doesn’t exist. Preferably this should be specified in the contract (point 1) also. The other side of the coin is that the company has to become a financial vehicle for the people working there. That means that managing its finances (income and expenses) is vital to making sure that there’s also enough money to pay all the costs.
  5. staying organised: Kind of obvious, a chaotic entrepreneur doesn’t make for a good entrepreneur. As I have about 12 different jobs, I have to make sure that I don’t forget what needs to be done, to prioritise the important things at the right time, and to delegate those tasks that I have no time for or someone else is better suited for.
  6. staying healthy: I’ve seen three people pass away that I’ve had a professional relationship with. One was of an advanced age, one had a deadly disease, and the third passed away at a very young age of medical complications. Two of these were entrepreneurs, and both let themselves get carried away by stress. Stress means: less sleep, eating crap-food (my new term for fast-food), and not taking the time to exercise. It is not where I want to end up, I want to do a good job (it is just a job) and live long enough to reap the rewards (preferably, I’d like to live forever, but that’s a future startup).
  7. staying connected to people: as a first time CEO, I have a lot of questions and the best way to have them answered is to ask them to people that are smarter than me. Luckily, there are many, many smart people out there, and people love talking about that which they know.

That’s it for now and all I could fit into 30 min. of writing. All my entrepreneurship diary posts can be followed under the tag ‘Vincent’s eDiary.’ I don’t write about what we do as a company on purpose, but you can always ask in the comments or via the email address on the right.

E’ship diary part 3: Why I don’t like the term ‘entrepreneurship’

Both ’startup’ and ‘entrepreneur’ are terms that immediately evoke an often false reaction from an audience and I would personally prefer not to describe my work using those words. In the following post, I write about three associations in regards to entrepreneurship, one positive, one negative, both somewhat false, and one what I see entrepreneurship as really: just a job. As usual, these diary posts, which I try to write in a short amount of time, are produced with minimal editing. I hope it makes sense. All my entrepreneurial diary posts can be followed under the tag ‘Vincent’s eDiary.’ I don’t write about what we do as a company on purpose, but you can always ask in the comments or via the email address on the right.

The popular associations
The word entrepreneur has two popular and a third upcoming association. One association is negative, that of a risk-taker and in some ways a loser—this would be more in a European context where job-security is highly valued. The other is positive, that of a potential Bill Gates or Steve Jobs, i.e. the smart entrepreneur who sees a big opportunity and has the drive, intelligence, and access to other resources to make it very big.

Of these two, the latter is what we are all aiming for, but realistically that applies to less than 1% of entrepreneurs today (using the very broad definition of someone that starts anything from 1-man webdesign company to an ambitious cure for cancer). The first association is also a misunderstanding of entrepreneurship, as entrepreneurs are not blind risk-takers, or at least they shouldn’t be. I would say and hope that it applies to a minority of entrepreneurs also.

The third association: a career-choice
Entrepren_eurship - What you need to go from idea to product.jpgThe third association is that of an upcoming trend: entrepreneurship as simply a job. You’ll find plenty of job-adverts with “entrepreneurial attitude a plus” or similar in the job-description, a term I hate just as much as the often mis-used “business development,” standing for just B2B sales.

Added to the job-description part comes that there are plenty of entrepreneurial courses and full academic programmes available to the public, one of which I enjoyed, though I know from personal experience that that doesn’t make a person an entrepreneur.

A third factor contributing to the ‘entrepreneurship is a job’ association is easier access to the marketplace. I’ve had some online discussions with Cecil Dijoux on this blog about today’s technology culture in the context of enterprise software development, and there is as much a democratisation of software-/web-ware development, as there is of other increasingly “low-tech” industries. (As a side note: My definition of low-tech is a technology something has very low barriers to developing it.).

I think that the abundance of resources (not just) in regards to programming, to very well developed (internet) distribution methods for getting products, tangible or intangible, out to customers, as well as more-and-more programmes for funding/assisting startups, means that entrepreneurs have access to a better developed funnel where it comes to their profession of gathering resources and marketing their products.

That doesn’t make it easy, and actually brings other challenges like being one tree in a very large forest, but it does mean that it can be seen as a type of job.

Now, what is there not to like about the word ‘entrepreneurship’?
Maybe it’s a personal thing, but I feel very uncomfortable telling people I meet that I’m an entrepreneur. One, I do see it like a job, a job that I have to do well, and nothing special really. The term ‘entrepreneurship’ makes it sound fancy, which it is not. Two, I’m a European and I do feel the same association that many Europeans have to the word, which is that it’s “less than a real job.” Rationally, I don’t think that’s true, but emotionally I have found myself feeling the following initial reaction more than once when someone comes up to me and describes himself as an entrepreneur:

Get a job, you hippie!

Add to this that a startup is not a company until it makes money, and an entrepreneur is not an entrepreneur until he makes money doing what he does.

So I think the term ‘entrepreneurship’ is glorified, perhaps invented to make entrepreneurs feel like they’re doing something special, same as the term ‘Artist’ or ‘Inventor.’ Art isn’t art unless the audience considers it so, and people have invented plenty of mousetraps that are now collecting dust in a garage somewhere.

Suggest something new please
I’d like a new term for what I do and maybe you can suggest one. It should perhaps be related to a startup, which immediately summarises what is happening: A company that is starting up and isn’t there where it wants and needs to be yet.

The problem is that an entrepreneur is not always in the same class as a startup. He can be 50 years old and have a long and successful career behind him. Would you call him a “starter,” a term often used for people fresh out of college applying for a job at Consultant X or Multinational Y? Generally, entrepreneurs are responsible for the activities that happen in a startup in order to make it a success. Their chances of success increase if they have prior experience, resources, and networks to build upon, that make it easier to access the three pillars of “starting up,” as I’ve summarised in the picture above.

In regards to the above, I personally like to describe my work as “I’m running a small company and we’re developing a new product X,” but that is also a bit of a mouthful.

The other side of the coin is that entrepreneurs are in (desperate) need of marketing, where glorification does play a part. I read somewhere that entrepreneurship can be described as the process of developing something irregardless of resources currently in possession. That suggests a pitch is necessary, and perhaps already being termed an entrepreneur helps getting a foot in the door. I doubt it and it would personally bother me if that’s all it took, but I’m smart enough to realise that we “entrepreneurs” need to do whatever it takes to acquire resources, as long as it fits our code of ethics of course.

So, entrepreneurship, yes or no? I don’t like the term, but I may be stuck with it. If I come up with something more apt, I’ll let you know. And same for you please!

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