“From my cold, dead hands…” It’s something that came to mind as I was thinking about writing this post. The part that doesn’t make sense about the Internet, today and perhaps since ever, is that American concept of “Freedom,” of independence and lack of governance.

In my post on piracy, my point was not complete. YES, historically, there has been a trend in every industry towards eliminating inefficiencies and yes, in some ways making things digital is just another step down that line, but NO, as @ksilvennoinen pointed out in the comments, digital goods do have a value greater than zero, the question is how to find a way to recuperate that value from customers.

To me value equals investment, but that is not the way pricing works. Unfortunately, I managed to misplace my pricing bible some months ago and can’t seem to recall most of the rules of pricing, but there is a strong psychological component to it. And the psychological part is what I am confused about. To get another book in here, it’s just like “Positioning: the battle for the mind,” if online goods are ‘positioned’ against a never-ending slew of free content, how do you position yourself to be priced at a value greater than zero?

On the one hand, it’s not so hard. You position yourself in such a way that a comparison does not make sense. Let’s take digital books, an area I actually don’t consider as threatened as publishers and media-outlets would like you to believe. The reason is that as soon as you download a digital book and view it on a PC, it immediately becomes an inferior product. Unlike a TV-show or movie, which I can frankly watch on a post-stamp (no matter what David Lynch says), reading and eyes work best together on either paper or e-paper (haven’t tried reading on the iPad, though I really like doing it on the iPhone). Of course the real threat to e-books in a PC environment is websites, but that’s a story for another day.

To get back to it, e-books work best in a dedicated reading environment, which immediately creates opportunities for platforms and putting walls around those. Platforms ensure that there is a network effect of content, walls ensure that there is no inter-leakage between the quality-controlled inside and the dark-waters-of-piracy outside. And that mechanism allows digital goods to be priced to recuperate investment and more. But…

Where it gets confusing again is how very open the Internet is. This openness allows you to create an app in a day, it also allows you to jailbreak an iPhone (now with US-gov. support), and it allows for me to get a movie that Chinese kid 107-xg46-*** released 5 minutes ago on the torrentZ. Amazon was built on this openness, as was OS X, as was pretty much anything that was stolen out of the Xerox labs 35 years ago. While there is a trend of eliminating barriers in general, it is even more prevalent on the Internet.

So, what I am asking myself here is the following questions:

• Is this 1969 again, where hippies roamed free, sex was consequence-less, and there is an Aids-epidemic on the horizon, which will make us go back to the 50s in terms of promiscuity?
• Are platforms doomed? I’m just talking platforms, not walls around them. Twitter is an example of an open platform.
• Are the walls around platforms doomed? So: iTunes & iOS-devices, Amazon & Kindles, Facebook & human relationships, every online retailer in the world…
• Is pricing digital goods a logical thing when taking into consideration how it is positioned against other digital goods?
• Should digital goods be free and prices be set for things that cannot be spread digitally: iOS devices, Kindles, Disk-media, other consumption-devices…
• And many more questions…

Getting back to value equals investment in my third paragraph. In any chain that leads from idea to the user, there are value points, which come from some kind of investment. In the embroidery example, a strong value point appears to be the creator. Without that person, there would be no creation. And, of course, there are plenty of examples on that. In the case of iPhone, strong value points are both the conceptualisation (R&D expenditure) and the production costs. In the case of Amazon, the website (presentation, distribution, etc.) is a strong value point. The end-product can still be digital, as it is in the case of the embroiderer’s designs, the iPhone apps, and the Kinde-ebooks, but the investment in certain parts of the chain is very much real.

And the value to consumers, which the crux of the matter, is equally real. If I compare 2010 to 1995, we live in the era of digital convenience. From e-banking, to restaurant-reviews, to TV-shows, to software, we undeniably live in a better world, but one where, ironically, we are less willing to spend as much on it. But there is another side to this as well. Let’s say, everything that exists is walled off. You’d have to pay to get access to every blog-post, to every youtube-video, to everything else that is already being charged for. I would sincerely start to question whether it was all worth it.

The Internet continues to be confusing to me, part shopping bonanza, part free-for-all utopia. Writing this has brought a little clarity, but if you have stuff to add that clears it up even more, please feel free to share it in a comment.

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I 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!).

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I 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.

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After reading the excellent Andrew McAfee Enterprise 2.0 book, I was wondering if there was any point for Heavy Mental to publish yet another review. There already are plenty around with Venkatesh Rao’s on Enterprise 2.0 blog and Gil Yehuda’s probably being the most interesting ones.

It might be more valuable to offer a perspective focussing on the Adoption part of the book. By and large, the adoption topic has been the one sparking off most of the conversations and thinking on the Enterprise 2.0 topic. The idea is to confront McAfee work with a reference on the topic of adoption of innovation : Diffusion of Innovation : by Everett Rogers.

In all fairness, I haven’t read Diffusion of Innovation. I only know it through Scott Berkun presentation on innovation (already mentioned in a post on the subject). Scott quotes Everett Rogers work :

The diffusion of innovation is based more on sociology and psychology than on technology. Here are the things technologists hate : whenever they come with innovation, the main forces against the innovation adoption are sociological ones : ego, envy, fear, pride, politics, security etc …

These are the factors according to E. Rodgers to evaluate how likely your solution is bound to be adopted :

• Relative advantage : what value does it bring ?
• Compatibility : how much effort to transition to this innovation ?
• Complexity : how much learning is required to apply it ?
• Triability : How easy is it to try the innovation ?
• Observability : How visible are the results ?

Enterprise 2.0 represents innovative ways to communicate, collaborate and share knowledge among distributed teams in the organizations. So let’s see how Mc Afee writings answer these questions …

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This post is part of a series, a diary of starting a business if you will. It follows part 1, the decision of becoming an entrepreneur.

One thing I found out is that it’s hard to put your responsibilities down on paper… there are so many!!! There is of course a basic job-description, which more or less sounds like that of a project manager/pull-the-rabbit-out-of-the-hat magician: “make it happen that we go from this thing on paper to the product in the hands of customers.” “Make it happen” is a super-loaded phrase, which can mean countless things.

There is a continuous struggle between micro-management and keeping the overview. Micro, because it is your responsibility that every (little) thing is carried out by your employees (if you have them). Overview, because You the entrepreneur are The Organisation. There is a third struggle that shouldn’t exist really, that between your professional life and your personal life. I’ve come to the conclusion that the only way to do this thing well is to focus on it exclusively. Friends, family, love, …blogging… it’s a nice luxury to have, but it comes second place.

The responsibility of an entrepreneur are thus: have a goal and make sure that everything is executed to get to that goal.

In a technology company, there are matters of technology and business (really, in what business except for strategy consulting isn’t there a mix of “technology,” which can mean anything from cooking to software development, and the commercial side of things, which is meant to pay for everything?). What I found was that as someone with a business background, who sort-of-kind-of has an idea about product development, and has a better grasp of business development, I still can’t let go of the reigns of product development entirely.

Product development ties in directly with business development. People are unwilling to pay for something that doesn’t exist and similarly our budget is supposed to last us until we have something worth paying for or investing in. Therefore, as an entrepreneur I have to make sure that product development stays on track. The absolute best way to do this is to have a capable product development manager in charge. The truth of it is that startups by their nature are resource-poor, which includes tripple-A product development managers (probably employed at multinational X or Y somewhere), and there is a lot of learning/training on the job. Learning/training means that the (hopefully) existing product development manager (in our case yes) still has to be managed, through schedules and regular meetings. In any case, product development is in its conceptual stage a very brainstorm-friendly activity, which means the more the merrier. But ultimately, a startup must get beyond this stage, respecting the entire resource-poor situation that a startup usually faces.

So, responsibilities of an entrepreneur as far as the technological product development is concerned: If you have a product development manager, you have to make sure that he works under the realities of the business. If you don’t, which I imagine many 1-person software startups operate under (as well as those lucky strategy consultants), well then you have to do the job of product development as well, keeping a close eye on the business realities.

OK, the business part of things. My role is fairly well-defined here as I come from a business background and approach startups from a business perspective. Assume that role 101 is having a firm grasp on everything that goes on, which can be phrased as “where are resources (people, time, money) being expended at and is it wise to do so.” This entails having a good budget plan and sticking to that.

Role 102 is to build the business, which I call business development, but that often gets confused with sales as that that is what it says in job adverts. Business development is the building of the business, which includes sales, but also includes building the company and all that entails.

So, we are trying to get from point A to point P, how do we go about it? If product development is about turning an idea into a product, business development is building a business plan into a business. Business plans are total BS unless they contain validated information. Some key-chapters in business plans are the market overview, the market approach, the time-line, and the financial need to meet all these objectives. Business plans can serve as a. cannon fodder, b. a plan of approach, c. one of several signals to attract investment. For c. no investor will take a look at your business unless you have a plan of approach (b.). On that plan, there should be a time-line, which you are following (predictability!) and there should be a goal: the market you are targeting and your approach.

The market section of the business plan presents a big problem for technology entrepreneurs. Because (non!) customers often don’t know what they want. I can ask a target group “what kind of air do you like to breathe?” and it wouldn’t surprise me if a significant number of responses would say: “I like to breathe air that smells like perfume.” OK, that’s a terrible question, but what I mean is that people sometimes make up answers that have nothing to do with reality (that said, both the perfume business and the fast-food industry have made lots of money from essentially selling air that smells good. Scent is also plays a very important part in memory, but I digress…)

What I’m a big fan of is validated market data, which is data gathered from actual customer experience with your product or part of it. That brings forth another problem of a bias towards early (and over-excited) adopters, something which the book “crossing the chasm” deals with, but is really not something that I think is realistic to address at an early stage, except that validated market data can also come from experts in the markets you are targeting.

The implication is also that product development is again completely tied in with business development which leads us down the path of rapid prototyping, another practice that works great in software / on the web, not as easily (though not impossible) with hardware. In any case, the experts in this area most well-known today are:

• - Steve Blank, who wrote “The Four Steps to Epiphany” and is currently hosting the excellent Stanford’s Entrepreneurial Thought Leaders seminars (btw. Steve Blank also writes a great blog on customer-focussed development, which I’ve only just started reading.
• - Eric Ries, who authors the blog Startup Lessons Learned and has some great articles on responsible (=lean) development.
• - And Donald Reinertsen, who wrote an incredibly dense book called “Principles of Product Development Flow,” a book which is clearly an authority in the field, but which I cannot recommend to any sensible entrepreneur with a 60hr/week schedule. Those principles, by the by, number in the 100+.

As well as of course Toyota and plenty of other experts out there, I’m sure, many of which are referenced by the people mentioned.

I think that it can safely be said that task 3 or a sub-task of business development is working towards the customer, the lifeblood of a business.

There are other tasks of course, which have to do with human resources, legal work, accounting, etc. Some of which can be outsourced, some of which can be done half-heartedly (oh no, I didn’t say that), some of which are really-really important, etc.

All these tasks, however, require a certain authority. The entrepreneur’s responsibility is to either be an authority on a task level or to be sure to work with authorities, either in the company or in an (informal) consulting fashion, so that they are carried out responsibly.

Task 4 can thus be entitled: be an authority on the tasks that need to be carried out or have access to one.

So, a whole can of worms starting a company can be and it is vital that it does not interfere with the single most important thing that you must do as a human being: be healthy! Health is part sleep, part exercise, part food, part love. There is no yin without yang and vice versa. Thus forget everything I said about personal life being no. 2. The best is if it reinforces what you do in your work. Health leads to happiness and happiness leads to optimism: a key-quality in entrepreneurship if there ever was one.

So the responsibilities of an entrepreneur summarised:

• 100: keep your eye on both sides of the court: the goal & the resources needed to get to that goal
• 101: align Product development with Business development
• 102: always validate your market data by staying close to your customers
• 103: be an authority on the tasks that need carrying out or have access to one
• 104: stay healthy and happy.

This was written in a single session with minimal editing. I hope it kind of makes sense. Part 3 of my e’diary will be on the topic of: can you prepare for entrepreneurship? As I have a master in entrepreneurship, I thought it might make for an interesting perspective. All my entrepreneurial diary posts can be followed under the tag ‘Vincent’s eDiary.’ By choice, I’m being mysterious about my company. If you have questions, feel free to comment or write to me via the email address on the right.

Picture courtesy of Be The Dream.

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The following is a draft I wrote prior to the announcement of the iPad, but which I didn’t publish because it was a series of hypotheses based on an as yet non-existing product. It’s a series of thoughts on how an interface of a touchscreen larger than an iPhone might look like. It is inspired by both my experiences with Macs and since recently with an iPod Touch. Here goes.

A couple of thoughts I had last night (written on 13.01.2010) about interfaces, the current state of development for the iPhone OS, how Apple could build a hybrid of Mac and iPhone OS, and how the company could build multi-tasking into its rumoured tablet. My thought were the following:

a. A new category: I don’t think the iTablet, if it exists, will be either a Mac or an iPhone. My super-superficial reason: it doesn’t fit in the Mac line-up depicted on the online Apple Store (see pic), but a more underlying reason is that I don’t see space for it in either a Mac-category or a Mobile phone/media player category. Which is not to say that it won’t do either well, but I think it will more fall into the class of Netbooks, though of course with the purpose of bombing those low-tech, low-innovation devices out of the water… just like Apple did with MP3 players and with Phones. Note from today: as it turns out, the iPad is depicted below the iPod, iPhone, and Mac lines, but time will tell where it will be once it’s on sale.

b. The Keyboard: I think that any 10″ screen will demand more connectivity to secondary (Apple) devices than the iPhone allows for. That means, an external keyboard and mouse, which transforms the tablet into a desktop. I have less complaints about the software-keyboard now, after working with a Touch for a while, but I still don’t see it as an alternative for longer texts, which a larger screen would warrant. Some months ago, I made a stupid mock-up of the iPhone + a keyboard (see pic), which is how I envision it looking (only better).

c. The App Store: 3 Billion Apps downloaded, Apple just reported, which also suggests a kind of lock-in. For better or worse, developers have accepted the App-store and I think it works for several reasons for both, namely more protection from pirates, more predictability for developers when developing for the black hole that is Apple, and more control by Apple, which is what Apple likes, not to mention new income streams for both. I think the App Store will continue to exist and will present new challenges when talking about a larger screen. Note from today: I don’t believe that what we will get to see in less than two months will be that what people were playing around with after the Apple keynote. iPhone apps inflated to a larger screen, come on?

d: The User Interface: I’ve written previously about Quick Look in Snow Leopard and how I also dug its slight innovation in terms of in-icon playing of media. Previously, OS X also introduced Dashboard into Tiger (I believe), whose interface, on the surface at least, resembles the iPhone. My view is that Apple will give developers the option to just keep the same resolution apps as they have offered before, though not exclusively of course. But imagine “Quick Looking” an app and still having it run inside its “Icon,” while the user does something else. For the rest, I of course think that full-screen Apps will exist, which is where Dashboard comes in, or at least a type of Dashboard. (Note: that was wrong. More below.)

e. Integration with the Mac: One of the most underused interfaces, at least on my Mac, is Dashboard, which allows people to have continuously open widgets on anything from news, to games, to radio, to system monitoring. It’s useful for those purposes, but not really something i spend more than a few minutes at a time with. Yet the first thing that came to mind when thinking of a “Tablet,” using both iPhone and Mac interface components, was Dashboard. It creates a new layer on top of a traditional desktop, allowing for user-input and information display. When I envision someone running the apps that would work on the “iTablet” also, I think of it either being that you open up a new layer on your Mac and run the very same apps on it through something like a Dashboard-like interface. Or, and the simplest solution is usually the best, through having the Tablet sync through iTunes with regular applications on the Mac.

Note from today: well, obviously this was wrong, but there have been several theories aired of having a type of Dashboard on the iPad for apps like calculator and weather, which don’t at all make sense to run in single focus on a larger screen than the iPhone.

Further thoughts from today: I do think that we will see a new OS update for both the iPhone and iPad before the release of the iPad. This will address the concerns that people have about it just being a larger iPod Touch. For the rest, to me the only downside to this device is the lack of a front-facing camera for video-calling, and some minor things. And I also think it’s the perfect “parent device!” What the Wii was to gaming, the iPad is to computing, addressing a very very blue ocean.

As previously stated, I’m still in line to get one this year, though only after trying one first.

Vincent

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OK, time to write a few words about the iPad. In true spirit of fanboyishness I started (and finished) writing this post in bed on my iPod Touch. Let me start by saying that with reservations I want the iPad. Reservations include that like you, I haven’t actually used the device, and that it doesn’t include a front facing camera which is a real shame. Flash… Pah! I really don’t care. Anyone who experienced the professional look, feel and support you get even from a €0.79 game on the Touch or iPhone isn’t going back to freeware flash (read my Farmville review as an example).

I’m not trying to provoke you by being so dismissive of flash, even though I feel a lot of people really really hate how the iPad turned out. I am only writing out of my own current and past context and reserving final judgement until it’s in my hands.

My context is several. I was born into an age when there weren’t any personal computers. As a matter of fact, Apple had only just been conceived when I was born. I grew up without computers, until I got a toy Amiga at 13, and a very buggy 1st PC at 15. It ran DOS mostly and crashed a lot in Windows 3.1. I mention this because people in my generation suffer from a curse. We were forced to learn a zillion crappy commands as teens, which made our parents and family members consider us computer geniusses and not a week goes by when I don’t get at least 1 question about a bug in a computer. Last week, I spent maybe 5 hours trying to get a Wifi card to communicate with an Internet radio, I will have to set up skype VOIP at my parents’ house this year and who knows what else.

My no. 2 reason for getting an iPad? To give it to my parents and save me future headaches (knock on wood).

My no. 1 reason is different. Last December, my MacBook was lost on a train. I’m using an older MacBook from work at the moment and digging this iPod Touch a lot. In many ways I do more on the Touch now. It has its flaws of course, and no it has nothing to do with “openness” or flash. The screen is too small and there are times (less than you would think) where I need a physical keyboard.

So picture my context. I travel a fair amount, I think the MacBook is not always neccessary but the Touch/iPhone is not always enough. The Touch meets my casual gaming needs (serious games, that’s what consoles are built for), it kind of meets my wordprocessing needs (still typing on the Touch …). So why on earth, for that price, wouldn’t I want an iPad?

Truth be told, I was considering getting a sleek MacBook Pro to replace my lost MacBook. But for years, I’ve secretely lusted after a shiny iMac as well, never being able to justify having both a laptop and a desktop. The iPad is not a standalone PC. It needs to be synced with one (every week or so). But it also gives me a chance not not restrict computing to a small 13-15″ screen and buy a “real” computer so that makes sense to me.

In my UNIQUE context, the iPad makes sense. In my less unique context regarding my parents, it makes sense. 2010 is hopefully a year of less computing headaches and more of just getting things done.

the end
Vincent

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As is usual when I take a long break from writing, my blog posts end up becoming insanely long. Take it as you will, but I’ve tried to make it as coherent a post as possible. P.S. this is a post written under de cover of my “leave of absence,” which means I still write, but less frequently. – - Vincent.

A good friend of mine, Zihni Ozdil from the Netherlands / Turkey, Historian Extraordinaire, is now publishing his wisdom online. If history, politics, and culture (“beyond the superficial”) is something you find interesting, I encourage you to check it out. On his site, I found an article entitled ‘the real Evil Empire,’ which, ignoring the provocative title, deals with the interesting topic of the cold war and the ‘demonification’ of Russia and communism at that time.

Yesterday, I had an interesting discussion with some Canadian Swedes that moved to Florida with their kids and had trouble finding a school. The only way, it seemed, to guarantee that their kid ended up in a good one is to have an A-class school in your district (which you can find via a website that profiles attendees according to race and economic background… wow…) and to have paid your electricity bills. It worked out well for them, but clearly suggests the underlying problem of a long-term selection bias.

Last night, meeting the Canadian Swedes, where I was also in the company of a Russian and a Japanese, I noted that it was strange that while both Russia and Japan, being superpowers in their own right, have infamously challenging education systems, which result in some pretty smart people graduating from either country, the US does not seem to follow that pattern, at least not at the high school level, and certainly not across all demographics. Yet, by all accounts, the US is a superpower, if not the superpower of this and the last century.

My post today is not about comparing countries’ education systems, it’s more about the strategic purpose of education. Many people don’t know this about me, but I don’t vote and I don’t generally care about (regional) politics. To me, our planet should be one country, where anyone can move and work anywhere, and services don’t have to be moved just because you physically moved  XX km/miles to another country. But I do recognise the power of competition and how that can lead to excellence. Versus a ‘group think’-like mediocrity where everyone just tries to be like everyone else and no one exceeds. So, in a way, I endorse a system of divided regions, because I think it leads to competition and thus excellence.

Education plays a strong role on the competitive advantage of nations, as it does in certain companies. Last year, applying to a lot of consultancy companies and working as one myself, I was struck at the importance that the accumulation of knowledge plays in this industry. If I were to start my own consultancy, continuous education of the staff would most certainly be a cornerstone of the business strategy, because knowledge is your product as a consultant.

I know that this thinking plays a strong part in government circles as well: how to make your/our country as strong as possible, not (just) in military terms, but in the sense of knowledge, mostly measured by the no. of graduates and the no. of patents that are published every year (as well the commercialisation thereof, which doesn’t go quite as smoothly).

I know that the no. of graduates coming out of Chinese universities is tremendous, and the no. of patents coming out of US ones is among the highest in the world also. So clearly, the US, superpower extraordinaire, is doing something right. I don’t however entirely understand why the primary/secondary school system is so abysmal then in the US. My only explanation is that, in academic circles, there are no national boundaries, and a Russian researcher can just as well (if not better) produce patents in the US as anywhere else.

There are other dimensions to the US superpower status as well, of course. It’s a military superpower, it is a cultural superpower (in terms of films, music, and literature), it has a large consumer-base. These three dimensions—safety through military strength, an easily adopted culture, a consumer’s paradise—also have the effect that they serve as an attraction point for outside academic or other talent. And while other countries may have strong educational bases, the other aspects are perhaps ignored just a little too much, still making the US a prime export location for knowlegde.

In the strategic literature, there is the concept of the resource-based view, which stipulates that company strategies are nothing more than a collection of resources, some of which are internalised and some that are not. I think that in the context of the US and education, the resources that must be internalised are those that lead to the commercial exploitation of technological advantage, which sounds abstract, but basically means making sure that the best technology/knowledge is produced in-house and generates economic benefits in-house as well.

But there other resources that must most certainly not be held onto in-house. These include standards, which facilitate the assimilation of knowledge. In education, the standards that we use are the bachelor-master-phd system, which can easily be studied in different combinations and locations. And text-books, which as many students know, are often from US-origins.

In many ways, the cultural exports from the US—movies, music, literature—are nothing more than the spreading of a standard, that of a language and a way of thinking, which makes assimilation of outside talent easier. And as long as that outside talent is used for the benefit of the US, in the form of patent exploitation, the US benefits, even if their own primary/secondary education system is quite uneven.

As mentioned, I don’t care about politics, country-differences, or governments. But if my logic is correct, I wonder if a metaphor exists for commercial superpowers, i.e. companies that are market leaders and remain so by attracting the greatest talent and finding ways to turn that into economic benefits.

Organisations are not complete economies like governments are and also have the benefit of being mobile—by law they are considered single persons, which have residence, pay taxes, etc. just like everyone else. So, as long as they obey the law, they can choose where they stay and choose to ignore local conditions, much like, I theorise, some governments do, instead focussing on the bottom-line: attracting excellence and turning that into profit, while keeping ‘unnecessary’ expenses as low as possible. Well, at least that is the stereotype of an organisation, while pressures have certainly lead some to adopt a more socially-responsible attitude.

Clearly, the question of talent, whether attracting or training it, remains a vital one for both countries and organisations. But I don’t think there is necessarily a correlation between talent and local conditions.. at all.. though local conditions do play a part in the quality of life, or lack thereof, which affects the talent’s in question desire for a certain location.

Vincent out.

(Picture courtesy of thehindubusinessline.com)

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What many of you might not know is that the reason Nokia became the biggest mobile phone manufacturer is because of Apple. When all their competitors were standing still, Nokia decided to think a bit differently. This story was one of the hidden gems in “Fast Strategy“, a book co-authored by Mikko Kosonen, a former executive at Nokia, and it tells the story how Nokia was able to challenge Motorola, Ericsson and other big players of yesteryear.

“When everyone saw mobile telephony as a professional service, Nokia’s leadership saw mobile phones as consumer – almost fashion – products. Rather than predict five or ten percent maximum penetration rate, Nokia quickly imagined everyone in the world having one – or why not several? – mobile phones for personal as well as professional use.” (page 3)

“[On the importance of strategic insight] Some insight may result from intense personal awareness and conviction, such as Pekka Ala-Pieitilä at Nokia being an avid Mac user and seeing the potential for Nokia to turn mobile phones into mass market consumer goods the way Apple was doing for personal computers.” (page 21)

One has to wonder why this Mac-love was only visible in the strategic thinking while Nokia’s Mac-support (PC Suite and other things) has been abysmal throughout the years.

So, what has changed so dramatically that blogs and business newspapers are declaring doom on Nokia? First of all, Nokia’s DNA changed the moment the became #1 mobile phone manufacturer in the world. Before that they were a challenger, trying out

The Nokia 1100, the best selling consumer electronics device in the world

different things and taking risks. But now they are playing defensive, trying to maintain their market share. According to Kosonen, Nokia is trying to counter this by being “strategically agile”.

But it isn’t just that. The backwaters of mobile innovation, USA, suddenly became relevant. I would argue that this is mostly due to Blackberry and iPhone and the huge domestic market. Also, one has to remember that the US is overpresented on the internet, so once the web broke through to mobile devices and Apple started to market the idea of software apps on mobile devices, things seemed to change a bit. Nokia has never been strong in the US, or for that matter in any market where consumers do not choose their own phones and where Nokia has never been able to work with operators. That’s probably the only thing that has been constant.

Couple of weeks ago yet another analyst group forecasted how Apple could pass Nokia in as soon as 2011. Now, this fantasy was based on how iPod users would convert to iPhone users and how Apple should launch low-cost iPhones (especially to developing countries) and sell customized ringtones and overall act in a non-Apple way (and eerily like Nokia). And yet, we’re still talking about smart phones which so far represent a tiny minority of total mobile market.

Sure, Nokia needs to get its act together, especially on the services front, but it’s too early to say that they’re doomed. Especially when you consider that Nokia is pretty strong in the developing countries. My prediction is that it’s not Nokia that will be irrelevant in the mobile phone market in the future, but the US market ‘s importance will fade and it is the mobile players that win elsewhere that continue to matter. The sheer size of mobile phone markets in Africa just boggles the mind.

In the new world of the mobile web, Nokia’s biggest problem is their own legacy, something that slowed Ericsson and Motorola down when Nokia was decided to bring mobile phones to the masses. Apple, on the other hand has shown that it can take advantage of market discontinuities in many different markets where traditional barriers to entry are crumbling down.

“For decades, the dominant players were EMI and RCA, and more recently Sony Music, which had built up the assets and capabilities … In today’s digital world, however, companies like Apple, which have none of the traditional music industry capabilities, are becoming leading players.”

In summary, it’s all about bringing technology to the masses. Apple did that for smartphones, but Nokia, inspired by Apple’s success bringing personal computing to masses, did and continues to do that for mobile phones. It’s just Nokia struggles with the US and smartphones for the rest of us. In Fast Strategy, Cisco’s Corporate Vice President Strategic Allainces, Steve Steinhilber is quoted to have said “…five years ago could Nokia really have expected Apple to be the main threat to their high end phone business?”

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I hate breaks in anything I do, blogging, work, sports, love, etc., because it’s always harder to return back into the zone. Similarly, I already knew subconsciously that it would be hard to return back to blogging after the proposed hiatus. Routines are good and when they are moved aside, they get replaced by something else.

The human body is a machine and everything, from hours in the day, to food and exercise, to making money, to relationships, are all pieces in the machine of life. There’s only so many hours in the day is a well-familiar phrase to most of us and reflects the difficulty in balancing different activities and responsibilities, with some just falling off the map.

I am not saying that I plan to stop blogging, but I do think that we all need to make choices in our lives which will affect other, previous ones, like domino blocks.

Dynamics…

I just bookmarked a blog post on delicious on forming sales teams in a startup. It’s a good one and you should all read it. As I tagged and bookmarked however, I immediately thought, hey, I’m pretty sure no one on my company will read it. Why? Maybe because we already figured it out… Maybe because we figure stuff out as we are doing it… Your choice.

Blogging or any kind of writing for public purposes brings several complications to business people:

• it is public knowledge, meaning that the competitive advantages are slim: I don’t think this is a major factor, as most innovations are combinations of different ingredients that may or may not be public knowledge. Great artists steal, as they say.
• Writing is processed explicit knowledge from something that was previously implicit and needs to be made implicit again by the reader for it to be useful in a practical context: I’ve written about the knowledge-generating company and the knowledge spiral twice before. Another phrase, “You can’t help yourself, because your *self* sucks!” also comes to mind.

It’s the latter that represents the greatest challenge to authors and consumers of their work. I’ve also previously written about the benefit of formal education, which, I think, tries to recreate the knowledge spiral, turning explicit knowledge into the implicit kind, to be used by students in their work later on.

The dynamics of business is that there are expenses—YOU, the team, the office, etc.—which need to be recuperated by your work—the work you do for customers, after which they pay you. It leaves very little time for reflection, e.g. through blogging, etc., and for making things explicit, e.g. through blogging, etc.

I’m still a big fan of Michael Gerber’s E-myth revisited, which is really about writing that franchise manual for your business, so you can both understand the processes happening in your company, and expand on those, by more easily passing on knowledge. It’s Taylorism, of course, or Scientific Management, or any of the other management methodologies that followed in the past century.

But these activities require time, time which people inside organisations usually do not have, and hence prefer to outsource to outside consultants, who then need to make their knowledge explicit and again implicit in the minds and methods of their clients’ organisation.

It’s a real nightmare for people (like me) who think to much and always aim for something higher. And who want to blog. And who want to do good business…

Thoughts?
Vincent

(Picture courtesy of Fisica & Psychica)

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Just briefly, as the only reason I’m standing is due to the fumes of caffeine, rather than a good night’s sleep.

I just finished going through the Lesson’s Learned blog post on “The Principles of Product Development Flow,” which I think is an excellent review of a book that I does not seem to be on public release yet for us Europeans. Well, you could order it from Amazon.com.

I’m fascinated with things like lean manufacturing, total quality management, agile development, etc. Basically, product development, which Eric enticed me with, as it’s the crucial link between invention and commercialisation (aka the definition of innovation).

That said, product development is something that you best learn in university and not (just) from a book. Several reasons:

• anyone can say that they read a book
• there are no tests at the end of books, no accreditation for you.
• it’s a singular view at a problem, while in a course you (hopefully) get presented with multiple views
• you equally don’t have your peers or teachers to discuss problems and solutions with.
• And, the most important reasons of all, a good university provides a link between theory and application, by providing you with opportunities for doing internships and/or jobs.

None of this is sadly provided by books and is why I feel that reading a book on product development and management will only help someone actively engaged in this activity and/or doing a study in this field.

That said, I think that those are all areas where bloggers, authors, companies, and educational institutes can do a lot about improving the system of learning and particularly the link between learning and application.

Just my point of view, I’d love to hear yours.
Vincent
(Picture courtesy of sinesoflearning.blogspot.com)

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I think I’ve just discovered a new hero of mine in the area of blogging. Her name is Penelope Trunk and I really like her writing style as well as the focus of her blog/site/company, called The Brazen Careerist. Previous heroes include Fred Wilson, whom I also like for his style of writing, and, I’m a little ashamed to say, Robert Scoble.

The way that heroism works for me is that I start writing like these people. Scoble has this habit of asking himself questions like “Why do I like Friendfeed? Here’s 120 reasons..” Somewhat banal, when you think about it, because it’s like you’re saying “Why am I so right? Here’s 1 million reasons…” I actually adopted it for a few blog-posts, then I dropped it. Fred Wilson writes essays, shorter than Paul Graham’s (thank god), but still I like the flow of the text. And for a while, I’m sure, I tried to sound like Fred Wilson. And Penelope Trunk just has a very personable style, for lack of a better word.

That’s not to say that I will now try to write like Ms. Trunk, or that I even do it intentionally. Back when I was a kid and tried to write fiction, I always remember that it read like Stephen King, J.R.R. Tolkien, or Isaac Asimov, depending on who I was reading at the time. It wasn’t on purpose, it was more like my brain adopted the writing style more easily than say, if I spent time with an accountant and tried to replicate what he/she did.

I think each of us have brain-patterns that fit a certain craft best and for me it happens to be writing. Which is interesting, because I also read and talk to a lot of entrepreneurs, yet I am not one right now and wondering if I ever will be. Food for thought.

Have you experienced the same thing in your craft? How do you take in information from your heroes, though conversations, reading, observation, interaction, or other means? How effective has it been for you? And is it something that stays with you always or just in the beginning of your life? And, the most important question of them all… Who are Your Heroes?

Vincent

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It’s funny how our thoughts evolve from one day to the next. Which reminds me that we need to adapt our About page to reflect that a little more, as it’s about 2 years old. My thinking about Always-On Devices comes from a simple pain that I feel when I miss “a moment.” Sometimes I wish that I could… well Andy Warhol in Miraclemen phrases it much better than me.

In Alan Moore’s & Neil Gaiman’s graphic novel, Warhol’s existence is not painted in a very colourful light (pun intended). He has been resurrected as a machine into a society where money no longer plays a role and is very depressed. So his ability to record everything is really not very meaningful to him. Having only read this part of the comic last night, already my sentiments about Always-On are changing towards… and what would it accomplish?

I recently visited an Art Exhibition of independent artists in Maastricht and tested out a little what an Always-On Device would look like to me. I used my camera, a Canon 870 IS, as a recording device, which I held in front of me while walking through the crowd.

I managed to capture the people experiencing an exhibition, a piano player who was adding atmosphere to a room full of art, just hypnotically playing a few notes over and over. What actually intrigued me the most, I captured maybe two dozen miniature sets for the Maastricht Opera house. It was very surreal, the sets which were made out of cardboard and wood mostly, were 3-dimensional, and I was floating with my camera device around it and through it even, capturing it all at angles never deemed possible to me before. As if I was my own film-director.

Of course, apart from the disappointing battery-life on my camera, clearly not designed for video-recording, and the occasionally funny looks that I got, the real challenge is to make that data actionable—a big priority in everything I do. It is a matter of transforming the raw footage into a tight package that can be consumed by others, and the question is really, should this be the responsibility of the creator or of the consumer…?

With us having reached and surpassed the age of the mashup, it makes less and less sense to continue to try and re-invent the wheel, rather delegating that task across far more… interested people (in the area of video-editing at least), of which there is no shortage, as long as the tools and the specific community exists. Clearly, that kind of methodology requires a lax attitude about copyright.

To recap, so that it doesn’t seem like I’m entirely floating in thoughts, an Always-On Device would need:

1. A willing human recorder
2. A recording device designed for capturing experiences
3. A way to process that information into “usable bits”
4. A favourable legal environment
5. And a willing consumer

I’ll leave the question of “do we even want it?” for smarter people than me to decide. In the mean time, I will continue my search for point 2 and 3 on that list (more on this blog, if successful).

Until after Paris,
Vincent

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Hey guys,

I wanted to pose this question on Twitter, but couldn’t describe it in 140 characters. Basically, if I want to learn about investing, what would be the best way to go about it?

I noticed, reading Business Accounting for Dummies, that accounting is a topic that is very nationally driven. Sure, there are general standards, but there will be subtle legal differences for each country and in the end you have to learn something twice or thrice (depending on how often you move).

Is it the same for investing? Am I better off talking to my local bank and seeing what my options are there? I have to say, I prefer being already informed before letting myself be sold service X or Y, so what is a good way to find out about investing via books or otherwise?

I’m not a Dummies-freak or anything, but I did like Consulting for Dummies a lot (review here) and some chapters in the (British) Business Accounting for Dummies book. Would you endorse reading the Investing for Dummies book or another one (bear in mind, that I am a “dummy” as far as investing is concerned!)?

In any case, those were my questions, which wouldn’t have fit the 140 character format. Any advice you can give is welcome!

Vincent

P.S. we are now on a new server, which shouldn’t affect your experience one bit. We may post more polls though :p

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We’ll be migrating Tech IT Easy from wordpress.com to a self-hosted solution these coming days, so I won’t be posting much, I don’t think. In the mean time, here are a few things flying through my head.

Men can’t get away with this !!

Jason Kottke pointed me towards an anti-fashion-industry trend lead by some women: the wearing-one-dress-slightly-altered-day-in-day-out-trend. Somewhat jealous, because it seems so efficient (and thus manly), but I don’t think men can get away with doing something like that, do you? Then again, men also don’t look quite as attractive…

Factors influencing the ‘virtual office’

I’ve heard several stories of entrepreneurs setting up their companies that they can operate it independently from a location, and if you’ve read some of my posts on “designing companies” and mobility, you know that I feel very strongly about doing something similar. In VAT-law, there’s the rule that you can’t locate your VAT-payments to a VAT-friendly country if you’re doing significant business in the VAT-unfriendly country. I’m guessing it’s quite similar with virtual offices. If your business activities tie you to a particular location, than that is a ‘tax’ that you have to pay.

Since there are plenty of smart tax-lawyers around who know their way around the loop-holes, perhaps it’s time for some ‘expert-consultants’ that help entrepreneurs become location-free?? The 4-hour workweek guy comes to mind.

On building (corporate) Knowledge Centres

I grew up in a library, one which my father built, so I may have a different perspective from people growing up in the more digital, paper-free world. But, to me, libraries are magical and comforting. One of the first things I did, moving to Luxembourg, was to move many of my books here (with more on the way) and asking my boss whether we can set up a library.

More broadly, a library to me stands for building and storing knowledge, whether for individuals or groups, and is a source of creativity, innovation, and also trust. Large consultancies are most famous for doing such things and if you saw the virtual universities some of them have train their staff, you’d be amazed.

No great point to this story, except that I hope that as an entrepreneur/manager/CEO you’ll also consider how to improve the lives of your employees sometimes, as well as consider that your company, which is essentially a living organism, will only benefit from having more knowledge inside of it.

On that philosophical note, I.. am.. out.

Vincent

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