(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 »

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 »

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
The 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!

This post is partially motivated by my colleague(I hope he is not reading this) who spent all his Christmas and New year Vacations at home with his PC still running next to my desk. I am amazed to calculate how much electricity he just wasted. Well, you wouldn’t leave your television ON for all day while you are at the office, and yet, across the world, millions of work PCs are left on all night—wasting energy, costing owners millions in utility costs, and contributing to global climate change.

Generating the electricity needed to power those computers requires hundreds of power plants that produce billions of tons of CO2 emissions. Many of those machines sit idle for 12 to 16 hours per day, burning electricity, but not doing any work, because businesses habitually leave their computers running overnight.So how much does this one click matters? Here is an awesome report published by Harris Interactive some time back.

Some Numbers Worth Understanding

A mid-sized company with nearly 10000 PCs,  wastes more than $165,000 a year in electricity costs for computers that have been left on overnight. By turning these computers off, an employer can keep more than 1,381 tons of carbon dioxide (C02) out of the atmosphere.  Across the nation(read USA), this adds up to more than $1.72 billion dollars and almost 15 million tons of CO2 . When calculated using EPA’s  Green House Calculator the emitted Carbon is equivalent to  Annual CO2 emissions of  4  coal fired power plants.

As of April 2007,  145,800,000 Americans have full-time jobs. 72 percent of all employed adults regularly use a PC for work purposes at their jobs. Combining these findings suggests that more than 104 million workers reach the end of the work day with a PC to shut off—or not to. Next most important things is to analyse the reason for this type of behavior from the office goers.

Workers Attitudes behind this Wastage:

In an enterprise like situation, when asked whose responsibility it should be to save energy in the workplace, 28 percent of PC users said it should be down to management or the IT department. More than half (53 percent) said they were not at all concerned about their companies’ carbon footprints, indicating that effecting change in “shut down” practices at the behavioral level might yield disappointing results.

Making Business Out of IT:

Almost all the industries (be it mid or large sized) are facing similar challenges of harnessing maximum output with minimum power and infrastructural expenditures. And with global recession the idea of Cost cuttings also include supervised use of Power and Infrastructures in the enterprises and commercial centers. No  company likes to waste money. On the surface, the financial impact of 24-hour computer power consumption may seem insignificant compared to traditional concerns such as payroll, supply, and rent—but the waste is actually substantial. A few important findings from enterprise point of view :

• Energy costs—typically 10 percent of the corporate technology budget—could rise to as much as 50 percent in the next few years.
• If not exaggerating, a good  Power management software can reduce a PC’s power consumption by 80 percent, allowing companies to save between $25 – $75 per desktop PC.
• Turning off PCs, with their heat-intensive power supplies, will also reduce the load on air conditioning equipment, leading to even more energy savings.

If you are working in/for an enterprise, its your responsibility to turn off/hibernate  your PC when you are not working. On the funnier side, Gary Hird, IT strategy manager at UK retailer, John Lewis, says “I joined the company in 1989 and one of the first things I noticed was that every light switch had a sticker next to it, reading ‘switch off, you’re burning my bonus” .

But on a Serious Note “It takes between 60 and 300 trees to absorb the yearly CO2 emissions generated by a single PC left on 24 hours a day. That means it would take between 1.24 and 6.24 billion trees to absorb the emissions caused by the nation’s office computers that are never shut down.”

Take one step towards being Green, try to hibernate the PC whenever possible.

The European Commission’s  Joint Research Centre has developed a high resolution digital view of man-made green house gas (GHG) emissions for any 10 km x 10 km area in the world. Scientists from the JRC Institute for Environment and Sustainability (IES) have made it possible to visualize the distribution of GHG emissions all over the world at local level through an add-on layer to Google Earth™.

This application brings environmental information closer to the world’s citizens. By simply entering a city name, the amount of greenhouse gases released since 1970 can be visualized. In addition, the main sources of GHG emissions in the year 2005 can be identified: industries (fuel combustion, process and waste emissions in energy and manufacturing industries); transport (road, rail, shipping); residential fuel combustion and waste handling; and agriculture.

As in my last post Jeremy pointed out  “the environmental footprint of their premises, logistics and supply chain, paper and ink consumption, utility consumptions (water, electricity,…), transportation and travels, waste, etc. must also be a point of concern”. Using this application we can definitely get a better view to the complete picture.

How to Use the Application:

• Install Google Earth

• Downloaded EDGAR GHG viewer 2005

Once you have installed Google Earth, install EDGAR GHG viewer and restart the application. Its just a matter of some clicks. I was really excited to see it for the first time. I am attaching a few snapshots that I took today morning. Try it yourself, you will understand how grave the scene is atleast in Europe, China, India  and USA.

Snapshot 1 – US of A.                                                           Snapshot 2 – Europe and Middle East with Africa

Snapshot 3 : Asia.

Representations : The data presented here covers carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorcarbons (HFCs), perfluorcarbons (PFCs) and sulfur hexafluoride (SF6). In order to compare different greenhouse gas emissions the emissions of individual gases have to be converted into CO2-equivalents. The Green Areas of Map has 0.00 -0.10 G equivalent of CO2 and Black/Blue spots are worst affected areas with or more 250 G equivalent of CO2 .

Personally, I hope this modeled simulation of World Wide GHG emissions will help a lot of people involved in Carbon Foot printing or planning to join the Green movement world wide. Let me know your ideas and reviews about this. The data sets are also available for download (free ) at the link.

“For those new to Tech IT Easy who could obviously not remember the initial announcement, Anand Kishore Raju is a new blogger on Tech IT Easy, who will focus on providing you with analyses of greening the internet, carbon footprints, energy and power figures of the internet and web2.0. Anand, the floor is now yours…”

The debate on climate change has moved beyond an argument about whether it is happening or not, to a discussion about what can be done to tackle its root causes. Pollution and energy savings are keywords that are becoming more and more of interest to people and to governments across the globe, and the research community is also becoming more sensible towards these topics.

McKinsey & Co. recently reported that the world’s 44 Million servers* consume about 0.5 percent of total electricity productions across the globe and emits about 80 megatons of Carbon Dioxide a year, which is nearly the emissions of entire countries like Argentina or the Netherlands (Data needs an Update ).

Dear everyone,

I am extremely happy to start off this new year by introducing a fresh face on Tech IT Easy, Anand Kishore Raju, who will be blogging with us in 2010. His main areas of focus as a blogger will be greening the internet, carbon footprints, energy and power figures of the internet and web2.0.

Anand is currently working as a Research Engineer at Telecom ParisTech (ENST). His area of research focuses on the Energy aspects of the Internet, what the scientific community calls “Green Networking”. His efforts are directed towards making Computer Network Science aware that processing, moving and storing bits has a cost in terms of energy and in terms of the Carbon Emission Footprint.

In the past, Anand had also worked at Collaborative Systems Group (ColSys) at Bilkent University, Turkey, where he developed a taxonomy for user properties, influence factors for feedback quality in web 2.0, existing and novel models for deviation types and their detection. He also holds a degree in Computer Science and Engineering and aspires to join HEC in near future.

Anand joins a smart team of collaborators, some of which also work in green computing and many of which share an interest in this important topic for sure. As such, please join us in welcoming Anand to the team and I hope you enjoy reading his words on Tech IT Easy!

Happy New Year,

The Tech IT Easy team

I’m always fascinated by business models, i.e. at how entrepreneurs and companies put together services in order to make money from them. I’d call it the source code of business if I hadn’t seen the other source code in Luxembourg —legal and accounting—but arguably that’s more like binary code, i.e. 99% unintelligible.

Sarah Lacy writes about SMSONE, a ultra-local news provider in India similar to Outside.IN, a Union Square Ventures funded US-only company that provides news updates via the web. SMSONE does it, as the name suggests, via SMS. And it spreads through a franchising model, working with local entrepreneurs that pay a franchise fee and also collect a share of the advertising revenue from locally focussed businesses. It is able to do this because of something that apparently doesn’t exist in the US (but does in Europe): receiving an SMS in India doesn’t cost the recipient anything.

When reading about this, I was immediately reminded of a similar business model employed by a Dutch entrepreneur in Russia, Ms. Annemarie van Gaal, founder of Independent Media, a company that distributed Russian versions of magazines like Cosmopolitan, Marie Claire en Good Housekeeping (source). When she spoke at the Star entrepreneurial seminar in Rotterdam a year ago, she told us about how she differentiated herself from the competition (paraphrased as I haven’t got my notes with me):

The trouble with getting your magazines distributed in Russia was that you had to pay quite a lot of money (some would call it bribes) to companies that would then take care of it… badly. Instead van Gaal decided to do it differently. She would hire street kids to distribute her magazines, similar to the gold days of newspapers: the newspaper boy.

If you read Sarah Lacy’s account on Techcrunch, you’ll see that SMSONE does it similarly, hiring local kids, often without much education, to take care of distribution. Doing it via official channels is likely a nightmare over there, and centralising distribution kind of defeats the purpose of micro-news.

It’s a different way of thinking, which many of us westerners don’t have. I mean, would you entrust your products to a beggar on the street or to a street musician? Not only is it probably against the law (except if the government does it), we pride ourselves on our super-organised infrastructure, where anything from temp-workers to interns are there to provide companies with a flexible workforce, and anything from printing presses to mobile internet exists to produce and distribute your stuff.

Of course, I wouldn’t just leave you with these two examples. In the beginning of 2008, Boston Consulting Group published a study of “local dynamos”— domestically focussed companies, which use creative business models to capture value from emerging markets that are filled with challenges, like lacking infrastructure and low-income consumers. The map below shows how widespread these companies are.

Some very interesting examples are mentioned, like:

• Shanda, a Chinese gaming-company, that, in order to combat software-piracy, focusses on providing interactive services through gaming, services that are impossible to pirate. And to overcome a lack of a financial infrastructure to pay for online services, they work with pre-paid cards.
• Indian CavinKare, which sells cheap sachets of shampoo through small local retailers, while using educational marketing to teach customers how to use their products.
• Goodbaby, which targets the many 1-child families in China, who are both willing to spend more on their child than multi-child families would, but are also in need of education.
• Amul, an Indian food-and-beverage-marketing-organisation, which collects and pays for milk locally, while tracking all operations via satellite and uses ERP solutions to make analysis based on the data and gauge whether future supply needs to be increased or decreased.
• Wimm-Bill-Dann Foods (Russia), which works extensively with local partners, and has devised leasing schemes for expensive machinery to boost their production and is able to serve 280 million consumers nation-wide.

The BCG, of course, takes the stance of its customers, Western companies, and the study is mainly aimed at how multinational companies (MNCs) can replicate 6 of these dynamo’s advantages, in order to compete with them. They are:

1. Customising to local needs – which involves first understanding these needs, and then meeting them.
2. Devising innovative business models that overcome local challenges – a logical follow-up to the last point, how to make money from the info you gained.
3. Leveraging the latest technologies – meaning that these emerging economies are less burdened with traditional infrastructure and quicker on the uptake of more affordable, newer, and easier-to-spread technology, e.g. mobiles.
4. Benefiting from low-cost labor and overcoming shortages of skilled labor – there’s two ways to look at this; a local workforce will be better equipped to interact on a local level, a highly-trained workforce will be better equipped to run a business. Tough call.
5. Scaling up fast – Russia, India, China, Brazil, etc. are all giants with the promise of huge rewards when you capture them. Many of these dynamos grow quickly through both through acquisitions and building up their network of suppliers and distributors.
6. Sustaining long-term hypergrowth without imploding – this kind of follows on to the last point

Some of the Western companies mentioned, which have managed to compete on a local level, include:

• General Motors, which has adapted its luxury-liners to meet the demands of its Chinese customers, who are usually sitting in the back;
• LG, in China, which has learned that the audio-quality of its televisions is more valued by its customers, who often reside in noisy environments;
• Carrefour, which has started to work with local municipal governments in China, as these don’t meddle in their operations like local dept. stores would, and are able to provide access to prime locations;
• Perfetti Van Melle, in India, a candle/chewing-gum manufacturer, which has found local means to advertise, interacts frequently with local partners, and has adapted its products to local tastes;
• and Yum! Brands, which owns Pizza Hut and KFC, and has adapted its menus to meet local Chinese tastes, started a new food-chain aimed specifically at the market, and uses its international expertise to integrate IT, lean supply chains, and a higher level of food standards into their offering.

It shows the value of out of the box thinking in terms of reaching people, and I believe that traditional “Western” thinking should long ago have been thrown out the door anyway, particularly in light of the troubles that media-, automotive, and financial industries are going through. We are in the flux of disruptive innovation and only those quickest to grasp new technologies and ways of thinking are able to survive another day.

No shortage of lessons on that from entrepreneurs in emerging economies…

Vincent out

Whether or not to design a new OS is probably the wrong question to ask at this point. Gruber says that hardware makers should strongly consider going the Apple route and design their OS and hardware combined. I think that the iPhone vs. any other mobile OS battle, and any other standards-battle really, proves that it’s not so much about the OS as it is a about critical mass of apps. At the same time, had the App-less iPhone v1 (lame pun intended) been a badly design hardware+OS, then no one would’ve bought it. But that was threshold 1, which the iPhone got out of and we are in threshold 2 now: features, i.e. Apps.

PC OSs are in the same boat. As much as I like Mac OS X, if it didn’t run the apps that I needed to be productive or unproductive (you know, media & games…), then the chances of me getting a Mac are zero. Any new OS maker is in the same boat, having to think about both their OS and the apps that run on it. A hardware maker designing an OS would have to think about all three dimensions (+ all the other stuff: consumers, partners, etc.).

I think I was fairly down on Android as an OS and fairly up on Chrome OS (COS), long before it either came out. I’m still sort of down on Android and very much up on COS. The reason is for once not hardware or software, it’s the changing world of telecommunication.

I haven’t been silent about my feelings about mobile operators. They’re not good, mostly for people in Europe that travel internationally a lot. And just when some positive movement is happening in terms of mobile and sms roaming charges, we now get Internet roaming, where operators still find plenty of opportunities to gouge consumers. It’s not unusual to pay several Euros/dollars/pounds per MB for instance, which is o.u.t.r.a.g.e.o.u.s.

As such, when I saw the ASUS EEE and all the other Netbook models being offered with subscriptions, I was skeptical. But what I didn’t think much about, because I wasn’t a user at the time, was the opportunities that ubiquitous internet (within roaming reality) offered: by buying a subscription with a laptop you are in fact instantly online, which makes any argument against a NetOS moot. It completely opens up the road for a NetOS maker, like Google, but also like Nokia, RIM, Palm, Apple, Microsoft, etc. to build an OS that entirely operates on a connected backbone. This is the opportunity that I see Chrome OS exploiting and why I think it, as well as the iPhone netbook/tablet if it comes out, will be massively successful.

I still don’t like the idea of hardware enslaving itself to telecom-operators. But I think we really can start thinking about a cable-less world a few years from now, with all the implications (no more offices, augmented shopping, etc.) that it can bring.

Yay mobile net. Yay Net OS.

/ Vincent

(Picture: city in clouds, courtesy of www.crestock.com)

A few months ago, I wrote to you about an experiment I was conducting regarding collecting videos from people that could not make it to a reunion I was organising for my high school. Out of the ca. 300 people that signed up to our Facebook group, only ca. 100 can make it in the end (this weekend). Many of them live all over the world, hence it made sense to try and involve them in some way.

Just like you guys couldn’t offer me much of a suggestion regarding how to arrange this distributed video system, people were fairly unresponsive to my request to send me greetings by video or audio. Even pictures from the good old days were apparently too much to ask for–us “oldsters” used analogue cameras back in the day and no Flickr in sight.

This all changed however just last week when we decided to focus on what I call the lowest common denominator in organised activities like this reunion and also business. Focussing on the simplest possible solution to solve a collaborative problem.

We asked everyone that couldn’t make it to send a short text to say hi, etc. And the responses came rolling in. Within 2 days, we already had 30 and they keep coming.

It just shows you 2 things: 1. really K.I.S.S. (keep it simple & stupid) is the best way to deal with most problems. And 2. we are really not ready for a video-based messaging system. Sure, there’s Youtube and more, but you also need to record, you need to look good on the recording, you need to convert it to flash, you need to upload it, the receiver needs to convert it back, edit it (a super-big hassle!), and then present it in a usable way. Far from K.I.S.S.!

Vincent

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)

It’s been a while since I wrote about food and retail, an area that I still like (and actually find much more interesting than tech or simple business), but which I’ve put on the backburner for now. I don’t like Starbucks as a business nor as a coffee, for a number of reasons that I will elaborate on in this post, but I do like that the company, back under the helm of Schultz, is undertaking some new initiatives.

Reasons why Starbucks bothers me include, most of all, that it is not a coffeeshop with a European target-audience. We Europeans have plenty of choice and tradition in terms of coffee, and I have no problem finding a place of atmosphere with some kickin’ coffee at half the price of one of those Americanos (which, btw. taste terrible). The only attraction of Starbucks is for me as a take-away place, but that was not really the aim of the business, as described in Schultz’s book.

Starbucks was meant to be a “3rd Place,” a place where people can temporarily reside that is not their office or their home, and that is where Starbucks, in my opinion, fails. It should also not seen in isolation from other chains, like McDonalds, Subways, and the many “CloneBucks’s” that have arisen since the writing of Schultz’s book—it is basically a manual for how to start your very own Starbucks and, apart from its partnerships, it’s a low-tech business. Right now, when you enter a Starbucks in say, Cologne, Germany, it will look exactly the same as the one in Paris, France, and that act of replication already devalues the concept in my eyes. All Starbucks Cafés are very clean-looking, unlike a Hard Rock Café for instance, which doesn’t make them all that much better than a McDonalds (Café), which serves coffee equally well.

End complaints about Starbucks, a chain I had all but given up on.

The most depressing part of this business is the ease at which McDonalds managed to replicate its basic features, ……… but let’s not forget that the Starbucks people aren’t stupid and learning goes both ways. Clearly, McDonalds (another business, I’m a fan of) has strong process-advantages, which are also quite apparent to the observer and can be benefitted from by outsiders. Something that, it turns out, Starbucks exploited and will hopefully lead to a more efficient machine of a business, while (hopefully) placing the focus back on the “3rd Place” idea.

And now, it has been revealed, Starbucks is trying to get back into that game with its “community coffeeshops initiative.” While I don’t think that this will drastically improve the Starbucks offering, I do hope that it allows for more creativity and individuality down the road.

That said, there is still a lot of room for “3rd Places,” also in terms of building chains of them, they just need to be better designed to actually be a 3rd place. From books, to music, to zen-gardens, people like me are still looking for the equivalent of what was before probably known as the “gentlemen’s club,” by I mean, in an entirely un-sexist way, a place where you can go and relax, alone or with friends.

Starbucks seems to have gotten lost on the path and retreated down to the level of commoditization. It make me wonder if perhaps these types of qualitative initiatives simply cannot be undertaken quantitatively, without losing too much in the process.

Vincent

From the European FT this weekend:

“Blackberry owners will soon be able to download music wireless tracks to an application that will help the smartphone compete with those made by Apple and Nokia. … Most tracks will not have copy protection software, which restricts how many devices the music can be moved to.”

It’s the word “most,” which has triggered today’s rant on PR, technology, media, and more. First of, what kind of statement is that most tracks will not have copy protection? Why not all, why not none?

Looking at the past, we all know that copy protection, aka DRM, has plenty of negative associations attached to it. And, as with most negatively perceived technologies, it has been hacked so often that the word “protected” has just become a PR term. Copy protection is not a feature, it’s a handicap, but clearly most songs on the Blackberry platform will not be handicapped, which is… a feature??

We all know that optimally, no producer (or organisation associated with music production) would allow music to be released DRM-free. But the very fact that protection means Zilch, means that actually there is no point to implementing any kind of DRM-system, except on the request of the owner(s) of particular songs (which probably happened here). So, instead of all or none, we get “most,” which is just BS. I already predict that this new initiative is going to fail, by the sheer indecisiveness of the PR message alone, which is a reflection of how little thought-out the business strategy must be.

My point in all of this, infused by a single expression of vagueness, is that somehow technology has spun out of control. There is a system of checks and balances in place, there is a self-correcting mechanism at play, but no one has the complete overview of how it works and when it will work. In the case of the recession, for example, things will balance themselves out again. And hopefully we will get a system in place, the more open the better, that will regulate what is happening. But there will very likely be many casualties of war.

In the case of media and profiting from it, it looks bad, very bad. The word “most” perfectly reflects the uncertainty of where it is all heading, but anyone can see that with production and distribution becoming cheaper and more decentralised, there is hardly any need for centralised music companies, except to build systems that track what is out there and rate it (e.g. CBS/Last.fm, Hypemachine) or to fund the more expensive part of the formula: getting on TV/radio (which will also disappear at some point) or setting up a concert (which will hopefully never disappear, but is hopefully self-sufficient).

Sadly, the only solution I see to saving “the industry” is to silo everything off, which is arguable already happening when you look at the behaviour of businesses like Pandora, CBS/Last.fm, and Hulu) and sue the crap out of anyone infringing. That would make everything nice and predictable again, but only if you could make it impossible to go from one side to the other. Star wars.

Some systems where this is the case, more or less, would be gaming consoles, and you would need the same for audio and video content. But because the light and the dark side (traditional media vs. new media vs. piracy) are not separated, you will continue to see a shift towards freeing everything until the only thing predictable will be that there is no money to be made from media, just from the products (e.g. merchandising) and services (e.g. concerts) around it.

Yes, I continue to be very down on traditional media. Feel free to lift my spirits in this area.

Vincent

Dear readers,

For a reunion event of people all over the world that I am co-organising, of which a certain part cannot show up, I am planning to give the latter a chance to send their greetings recorded across the internet and shown in either video or audio-format (with picture) at the event.

However, I am a need of the appropriate service that can facilitate this process. Essentially, I am looking for:

1. Something that is web-based and does not require a user to install software on their computer
2. Something that will take video and/or (preferably both, but not necessary) audio
3. Preferably at an adequate resolution / audio quality to be played on a large screen in front of a large room of people
4. Something that I can export into an application like iMovie for Mac or Windows Movie Maker
5. As this would likely be a compilation of 50 or so people, something that requires minimal effort on my part, except for setting up the service, doing the downloading, and post-editing.

I realise that this is likely unknown territory for many of you, as it is for me, but I think would actually generally be pretty cool and hope to brainstorm about your ideas and/or the possibilities/limitations with you.

Any ideas?

Vincent
(Picture courtesy of Kimpton Middle School)

I once asked a friend how one of my clients should improve their sales technique for a technical product, knowing that his company is very successful at what it does. He, himself a “sales engineer” (i.e. a technical sales guy), found the question very difficult to answer.

I had to reshape the question to “so, how do you guys sell your technical products?” And then he was able, with full vigour, to tell me how they do it. It should be mentioned that market plays a strong role here; my friend works in a very niche business, while my client suffers from powerful competition.

I’m starting to loose my naiveté, as far as crowd-sourcing is concerned. This easy-to-communicate world we live in, sometimes makes me forget that, just because we can ask, doesn’t necessarily mean that we should. Technology may have changed, but people’s brains, psychology, and business principles have not, at least not at that rate.

My general stance these days is that, no matter what context you talk in with people, you should always assume a complete lack of imagination. Instead, by either spelling it out, or better, by asking the best interview-question in the world “tell me about YOU!,” and then extracting what you need from that, is much more effective.

It’s as Jeremy advised me to blog when I started here, Keep It Simple & Stupid (K.I.S.S.). Even though I have ignored that lesson at times, it’s a good one to follow in this all-too-unsimple world.

Apart from crowd-sourcing, the same, incidentally, applies to:

• selling people stuff: spell them out exactly how your product/service benefits them!
• applying for a job: spell them out exactly how you will make them money!
• and everything else.

Want to make the world a better place? K.I.S.S. it!

Vincent