Category Archives: Business as unusual

Busyness how-to

"the real utility of 7 Habits and 12 Disciplines and 50 Ways is that they create the illusion of progress simply by adding another layer of busyness."

Now, where did I put that PDA?

Patenting everything

Excellent article by the always readable David Warsh on how patenting has gone overboard, with various companies patenting things that are a) obvious, old hat or both, b) patented just for the sake of suing people who want to create real products, and c) limits real innovation.

Tom Evslin has previously written about a peer-review patent process, which is especially important for software patents, where it is relatively easy to demonstrate prior art, if only people know about it. 

I read somewhere recently that someone was thinking about patenting a method of patenting obvious  innovations (particularly in software) just to get at the patenters. Excellent idea, if I only could remember where I saw it…. 

(I am giving a talk called "Intellectual property – an anachronism in a digital age?" next week and am putting together pointers. Yochai Benkler seems a great starting point….)

Don Tapscott on Wikinomics

(Second installment in a series of Notes from FastForward 2008)

Don Tapscott: Wikinomics – setting the stage

Don started by saying that this is not new: Time’s Person of The Year was you, and that is soooo 2006. Mass collaboration changes everything. Buy my book! Now, seriously… 

Companies are becoming more professional and peer-oriented, less hierarchical, more meritocratic. This is not new either – Paradigm Shift said this in 1991, and Peter Drucker has said it for a long time before that. Why is it taking so long? The drivers have been missing, but are here now: 

Four drivers of change:

1: Technology, particularly 2.0 technologies: Things talking to each other – one friend has his sprinkler system couple to his intrusion system, in case a burglar jumps over the fence. In the new world, you browse the physical world. GPS allows not just positioning, but movement. True multimedia changes what a film is. New web based on XML, the web is becoming a global computational platform. In some ways, search becomes the new operating system, But legacy systems exist and the integration problem will not go away quickly.

2: The net generation: We have this generation that are not afraid of technology because for them, it has always been ubiquitous. We have had boom, bust and echo in demographics, but the echo is larger than the boom – in Asia and South America have tsunami coming along. These kids multitask, don’t use the TV, they are very active with collaborative technology, games and search. Their synaptic connections are actually different, since they have had this during their formative years. They use email technology to send a formal letter of thanks to a friend’s parents.

3: A social revolution: The rise of collaborate communities. XML has overtaken HTML: Flickr beats Kodak, YouTube beats MTV. MySpace has 15,000 bands….. His son created a Facebook group on Wikinomics that exploded and is now placing demands on him….

4: An economic revolution: You are getting new companies: Digital conglomerates. Google is the fourth largest broker of hardware in the United States. Microsoft, Yahoo, Google, amazon.com, ebay – these are not some blips. Coase: Transaction costs is really cost of coordination and contracting. From industrial companies to extended enterprises to business webs, and now we will have mass collaboration. Example: Goldcorp, a mining company ready to be shut down, because the geologists cannot find gold. So they put their geological data on the Internet, hold a competition on the internet, $500,000 prize money, 75 submissions find $3.6b worth of gold. Many of the best submissions came from people who where not geologists.

How do you harness mass collaboration? 7 things:

  1. Peer pioneers: We are smarter than me, a book written by 1500 people. Spikesource: Tests open source software, certifies it, support it. Marketocracy.com investment fund, zopa.com peer lending.
  2. Ideagoras:  Creating an eBay for innovation. P&G looking for a molecule that will take red wine off a shirt, innocentive.com. Crowdsourcing.
  3. Prosumers. Turning your consumers into producers. 99% of Linden Labs product (Second Life) is done by its users. The record industry is the poster child for not understanding this. The final chapter of Wikinomics is a wiki…want to be the context provider for the definitive guide to the next century business.
  4. The new Alexandrians. The sharing of science. The Human Genome has transformed bioscience. Tracking Avian flu through mashups. The alliance for climate protection. Killer app of wikinomics may be saving the planet.
  5. Open platforms. Amazon.com – open platform from innovation. 1/3 of revenues from API.
  6. The global plant floor. 787 is a peer produced airplane, with their suppliers. Suppliers co-design airplanes scratch and deliver compelte subassemblies. The Chinese motorcycle industry is run by small companies that meet in tea houses, collaborate, now has 1/3 of all motorcycle production. Next year: 1500 dollar car from China.
  7. The Wiki workplace: Geek squad (20,000) design products for geek squad. 

“New paradigms cause dislocation, conflict, confusion, uncertainty. New paradigms are nearly always received with coolness, even mockery or hostility. Those with vested interests fight the change. The shift demands such a different view of things that established leaders are often last to be won over, if at all.” (Marilyn Ferguson).

Saint-Exupery: We should welcome the future because it will soon be the past.

We should respect the past because it was once all that was humanly possible.

Andy MacAfee on Enterprise 2.0 success factors

(First installment in a series of Notes from FastForward 2008)

Andy MacAfee: Enterprise 2.0: What will it take to bring about a world of change

MacAfee talked about what it takes to bring about change – Enterprise 2.0 (corporate use of Web 2.0, as I see it) has moved from the what through the why to the how. He looked into some of the factors that seem to be connected with success, grouped into technology, initiatives and culture.

Technology must have intuitive and easy tools (meaning that it needs to work with email, for one thing), the tools must be egalitarian and freeform, the borders must seem appropriate to users (meaning that you need some borders and confined spaces), at least some of the tools must be explicitly social, and the toolset must be quickly standardized.

The most difficult part lies in the intuitiveness – avoid feature creep! The egalitarianism and the freeform part has more to do with bosses than with technology. Bosses are not comfortable with letting loose the process definition part – they need to work hard to get out of the way, at least initially.

Initiatives usually involves incentives – they exist, and they should be soft. Not just T-shirts and nerf toys, but not much more, and not monetary. Goals need to be clear and explained – being interested in Enterprise 2.0 is not good in itself. Many companies don’t have a goal – the US Intelligence community is an example of an organization that has one. Most important: You need incentives; having evangelists, and having official and unofficial support from the top. You also need excellent gardeners, bottom-up energy and activity, and clear and explained goals. The CEO Blog is a good thing – Marriott has one, dictates it and it is not created by the PR team.

Most difficult: Getting the incentives right, and getting the excellent gardeners – people that accelerate the emergence of structure in wiki environments. In any population there are not enough of them.

Culture: Some important issues are that people should be trusted, there should be slack in the workweek, helpfulness has been a norm, top management accepts lateralization (turns out it is very hard for companies to accept even light user commentary, for fear that it might be negative, even though all statistics show that it it is very powerful – most of it is going to be positive, and the negative comments make the positive ones more valid), there are lots of young people, and there is pent-up demand for better sharing. Most important: trust, lateralization, and pent-up demand for sharing.

Most difficult: Trust, slack in workweek, and top management accepting lateralization. You need spare cycles!

Conclusion: enterprise 2.0 is going to increase differences among companies – technology accentuates differences, and this one will. The data is accumulating. The reason lies in willingness to embark, sincerity of effort, and ability to execute. These differences will matter – it will not be the end of the hierarchy, but it will help companies become more responsive, help capturing and sharing knowledge (particularly as the demographic bulge is leaving the workforce) and then there is this vague notion of collective intelligence. Groups and committees, geographically dispersed, can do spectacularly valuable things with this technology.

Clunky does it

Seth Godin gives examples of how winning web sites often are not those that win design awards, unless you define ”bad design” as ”does not work”.

VG Nett logoI am not sure this is a real trend, but here is another example: vg.no.  This Norwegian newspaper has a website that breaks all possible criteria for good design: It is seemingly disorganized (there is not thematic order to the articles), has colorful images and distracting images all over, is very long, and is manually put together. And it is wildly successful: VG is Norway’s largest newspaper*, and vg.no has more readers than the paper paper.

Vg.no is also different in that only 5% of the material at the web site comes from the paper version. The managing editor of vg.no, Torry Pedersen, has so far resisted any integration with the paper version tooth and nail – something the very successful media house Schibsted gives him, not least because his profitability levels have consistently been over 40% and he has taken more than a quarter of all news and entertainment traffic in Norway.

I used to think that search would take over newspapers, but Torry begs to differ: Only 10% of his readers come through search engines – the rest arrive in the front doors, looking at the lively, entertaining and rather chaotic front page as a gateway to something interesting, something newsworthy, a break in a hectic or slow day.

In other words, there are more than one way to skin a cat, or, in this case, to bring newspapers to the web. Torry’s way should be something to ponder for traditional papers such as the New York Times, with their rather austere and self-important designs. The Atlantic has an interesting front page, but the content does not change often enough to make it a frequent stopping place. As for the rest – look out for Google News…

*On a personal note: I never read it myself, since it is decidedly tabloid in nature. The Internet version, though, is subtly different. 

Microsoft and middle age

Bob Cringely, as usual, has the most original and insightful take on Microsoft’s bid for Yahoo.

Masterstudies.com

Masterstudies logo

I am involved (board member) in an exciting startup, a company called Masterstudies.com. We offer potential students a way to find suitable MBA and other Master level programs, and universities and business schools a way to find good students.

So far it has been a fun little project which has involved helping to specify functionality and interface, interacting with the very competent management, and talking to investors.

I think the company has something very useful to offer – there are literally millions of people around the world trying to find their way among the thousands of MBA and other Master level programs in business and related areas. One of the ways we differentiate ourselves from the competition lies in the way universities can specify what kind of leads they want – if you want details, contact our CEO, Linus Murphy.

We have spent the Fall making sure the product is good enough (partially with input from some of my students) and the database large enough (currently at 6,700 different programs) and now is the time to softly launch. There are still bugs to work out, but prospective students can now sign up, fill in their details, select schools and programs based on their preferences. Even though we have not marketed it at all, the traffic figures are promising, the number of leads sent per day is in the hundreds and it is rather exciting to see the details flying by – we are getting leads from all over the world.

I am rather optimistic that this company will succeed in providing value both to universities and students. In the words of our intrepid chairwoman, the student-to-university market is one of the few inefficient markets left, and it is high time someone does something about that. That’s us!

So – why don’t you check it out and tell me what you think?

Carr on computers as current

Cover The Big SwitchNicholas Carr: The Big Switch: Rewiring the World, from Edison to Google.

In his excellent book Holidays in Hell, P. J. O’Rourke visits Future World (an attraction at Disney World) and says that it is "like opening a Chinese fortune cookie to read, ‘Soon you’ll be finished with dinner.’"

I get the same feeling reading Carr’s book (an advance copy) – it is well written, stylish and easily recognizeable like Disney World – and understandable to the masses. The main message of the book is that because of faster networks, computing will be centralized and made accessible like electric power. Carr even draws a line back to the history of electric power provisioning. All very well, we already see this happening with Google applications and Gmail. But I first heard this prediction in 1990, spoken not as a wild speculation of the future but as a likely and not particularly exciting outcome by my thesis advisor, professor Jim McKenney at the Harvard Business School.

The centralized and ubiquitous computing future Carr eloquently predicts is, in principle, a return to shared mainframes accessed over telephone lines, only cheaper and faster by orders of magnitude. The mainframe lost dominance to the PC because people wanted control of their own computing and their own data, so they chose a cheap, weak and unreliable computing platform over one that offered stability, performance (at least in the aggregate) and reliable backups. Otherwise known as a disruptive technology.

Many hard disk crashes and viruses later, a significant portion of the populace have not yet moved their files to Google Docs and are unlikely to do so. For that matter, I would venture that more information and computing is still done on mainframes than on Internet-accessible servers. That is not where the innovation is, true, but new computing platforms come in addition to other platforms, not as replacements.

So we will move into the Cloud, but for social computing, collaboration, and information lookup. People will still want their local storage and (at least perceived) local control. And will end up with a three-tiered personal computer architecture: Traditional centralized computers for transactional systems that demand global recalculation (like airline reservation systems), personal storage and processing for the very personal (where are you going to store those photos, you said?) and cloud-based computing for stuff we want to find and share.

Oh well. This is not news. I know Carr’s book is written for the great unwashed, and I admire his language and clarity of examples, but it is like Tom Friedman’s The World is Flat: If you have been reasonably awake and facing in the right direction the last 10 years or so, you will not find any surprises here.

And that’s a pity, for I read books for ideas, not for summaries. And this one, for all its elegance, had me dozing off more than switching on.

Proximity rules!

Google prediction trading and proximity. This graphic sure is interesting – read the article for explanations:

 

Wait a minute….I live in Norway, waaaaay out in the boonies – this explains a lot! 

Falling dollar and Silicon Valley

Interesting discussion: What happens to Silicon Valley as the dollar exchange rate falls even further. According to Nat Torkington, there is enough money in SV already, so foreign capital influx will not change much. And given the cluster characteristics, outflow of talent will be slow. But the exit procedure – the IPO – might move from NYSE or NASDAQ to stock exchanges abroad.
I don’t know about the outflow – much of the innovation in SV has been due to a diaspora of talent from Asia and to a certain extent Europe. It is only natural that some of those people will want to move back home and bring a little bit of the left coast with them. The question is rather – what is the critical size of an innovation cluster like SV, and how important is the VC part of it? If the answer to both is “large”, the SV will maintain its dominance for a very long time.

Writing the sizzle and not the steak

Paul Krugman complains that his colleagues write like theater critics rather than critical journalists. I have seen the same thing happening here in Norway. The reason, of course, is that actually figuring out what is going on and explaining it to the public is hard work, requiring understanding, a facility of explanation, empathy with the audience and, most importantly, the need to change your physical location to somewhere less pleasant than press conferences.

Side note: I blog about Paul Krugman because he is no longer behind the NYT paywall. Modern media can in essence choose between relevancy and payment, and NYT took the longer-term view. Good. 

A new model for air travel

Jon Udell has an extremely interesting post about Ed Iacobucci and the reinvention of air travel, essentially moving from a hub-and-spoke routing model (which is akin to line switching of a telephone network) to a model that more resembles packet switching. Instead of holding routes constant and let the passenger’s time be a variable, this approach allows the passenger to price his or her own time, and have the airline (with smaller and more flexible jets) respond accordingly. Very interesting, especially in relation to the concept of free flight, where air planes choose their own routes (and, implicitly, manage their own security envelopes) from one destination to another.

Bob on employee engagement

My long-time boss in Concours, Bob Morison, is a commentator on NPR’s Nightly Business. Here is one comment:

Consulting as system and profession

Toppin, G. and F. Czerniawska (2006). Business Consulting: A Guide to How it Works and How to Make it Work. London, The Economist.

This is a useful but uneven book. Its main contribution lies in the development of a model called “the Business Consulting Ecosystem”, which describes the various entities in the consulting profession and how they interact. There are also good descriptions of how the industry has evolved over time and good interviews with many consultants and clients. I particularly liked chapter 11, which describes the markets for ideas and how companies try to capitalize on them, though that may be because one of the companies described is Index, which I worked for in the nineties.

On the negative side, the latter part (second half) of the book and the conclusions feel quite a bit like a Powerpoint presentation, with bullet points giving the outline and filler text added in. The book is also slightly dated, since it was published in 2004 and things have moved on a bit, though it does report on the transition to outsourcing and the increasing polarization between advisory consulting and implementation.

So, smart in parts, useful in general, but uneven when it comes to drawing decisive conclusions. Sounds like the consulting business.

Something about the patient

I amy be preconditioned, since I just read Blink, but notice what Reynolds says here about a patient he took to the hospital because he "there was something about him that set alarm bells ringing".

That’s experience speaking.

I think experience like that takes at least 5 years to develop, to the point where you get a "feel" for how a number of complex variables interact without knowing it. I have some of that feeling myself: I spend a lot of time walking into companies to do presentations or interviews for research projects, and end up getting a "feel" for what the issues are in the company almost as I walk in the door. Other people within consulting and research – that is, problem solving activities – that I know have described the same experience. Of course, you have to do a lot of documentation and testing and so on, just as Reynolds runs the ECG. But very often, the first feeling you get when you arrive somewhere ends up being your conclusions and recommendations also.

Of course, I may delude myself, and engage in on-the-fly evidence distortion and theory confirmation rather than theory falsification. But I wonder… 

Phisheries report

Wired has an interesting 25-page article on how FBI did a sting operation involving a "flipped" card scam bulleting board operator. Reminiscent of Markoff’s books about the various hunts for Kevin Mitnick and other mistfits.

I can’t help but notice what sad sacks these "hackers" and "cyber criminals" turn out to be. Not much of Al Capone over them, just overweight and pale board jockeys sitting up all night hammering out badly spelled instant messages. 

Google as super-Akamai

Cringely speculates about what Google is going to do with all those data centers, and how to counter the strategy he thinks they are following by creating an intra-ISP P2P network. His description of why Microsoft won’t compete with Google even though they can is a pretty good example of disruptiveness in action.

Pitfalls for the US speaker in Scandinavia

(To be updated, I hope. Suggestions?) 

One of the reasons one has a blog is that it is a great place to put things to refer back to. I recently hosted Dan Pink at a conference here. Before the conference, we had a conversation, and I outlined some errors I often see European management speakers make when visiting Scandinavia (or even Europe in general). It occurred to me that this was something I could put here for the benefit of others and to save myself having to repeat it. (Dan, incidentally, didn’t hit a single one of these. Excellent.):

  • Don’t use big-name US companies (General Motors, General Electric) as examples without explaning who they are. Outside top management echelons, most people will only know their brand names (incidentally, for GM in Scandinavia, that is Opel) and not the companies themselves.
  • Never use the US mobile telecommunications industry as an example of something good or advanced (or, at least, be very careful). Mobile communications in Scandinavia outshines the US mobile phone industry by a factor to high to compute – you can essentially get into your car in Northern Norway and drive to Rome while continually being on your cellphone. Try that in the US. (This comparison isn’t fair, there are many pockets of innovation in the US cellphone industry, but most people will judge the industry in terms of connectivity and coverage when they go to the US themselves.)
  • Be very careful about using banking examples – US banking is seen as very backward by Europeans, because of the continued use of paper checks. In reality, the US banking industry probably leads the world in technical innovations, but services between banks are not nearly as integrated as in Europe – and therefore are seen as backward. Plus, European banks have a wider range of services in the payment area – services that credit card companies and PayPal do in the US.
  • Be careful that you don’t talk about Europe as if it was a country like the USA. There is much more variation between countries in Europe than between states in the US – language, history, culture, attitudes, economics, etc. Check each country on Wikipedia (particularly economics if you are speaking to a business audience) and make sure you don’t say things that are wrong about a country.
  • Don’t refer to going to church in your talk (for example, refer to someone as "we belong to the same church" or similar). In Scandinavia, at least, less than 10% of the population goes to church regularly, and religion is a very personal thing. You will be seen as belonging to some strange cult or something.
  • In general, Europeans are less inhibited in the off-color joke department than Americans –  not that it takes much – but there is considerable geographical variation. However,  this apparent frivolity comes with subtle pitfalls: If you tell something that can be construed as demeaning to women, for instance, it will fall very flat even in an all-male audience. The telling of off-color jokes should not be attempted unless you really know your audience (or if you possess an English accent more pronouced than Stephen Fry’s.)
  • In general, Scandinavian business people are less formally dressed than Americans during daytime, but they dress up (or keep their business suits) for dinner. Quite the opposite from the US, so don’t change into jeans for that after-work restaurant thing. Unless you work in software, which is thorougly Americanized. (If in doubt, ask. Preceed it with an "In the US we do this, what’s the custom here?")
  • No US-only sports metaphors! (Which, incidentally, for most US speakers will mean no sports metaphors.) Though Europeans know what American football, baseball and basketball is, they generally don’t know these sports well enough to understand individual terms such as touch-down, loaded bases or rebound (though they might understand "slam-dunk" from context.) So, unless you are throughoughly familiar with soccer, handball or (in Scandinavia) cross-country skiing, ski jumping or biathlon, don’t use sports metaphors. They simply aren’t used as much in Europe as in the US. (As seen in Henrik Lindstad’s comment below, though, no rule without an exception.)
  • Some opinions which are labeled "conservative" in the US, are considered fascistic or simply crazy in most of Europe. The "right to carry arms", anti-abortionist sentiments, and, quite frankly, much of what George W. Bush is doing at the moment is viewed with horror by many Europeans. While most audiences will view an American speaker as a any speaker on a specific topic, mentioning that you are a member of the NRA will (for those in the audience who knows what that is) position you as a person with a frighteningly loose grip on reality for most European audiences.
  • more to come, suggestions?

Right-brainer with analysis

I recently had the pleasure of hosting Dan Pink at a conference here in Norway. Dan is a writer for a number of august publications and made his name with the book Free Agent Nation a few years ago. His most recent book is A Whole New Mind: Why Right-Brainers Will Rule the World, in which he makes the relatively simple point that because of Abundance, Asia, and Automation, all work that is explicitly defined will move to the place in the world where it can be done the cheapest. This means that competition (be it in products or services) will take place less on price (utility) and more on significance, i.e., design and emotion.

I tend to be very sceptical about professional speakers, partly because I am Norwegian (and thus a member of the most cynical group of people in the world,) and partly because 10 years on the rubber chicken circuit has given me a severe allergy to gurus giving canned speeches.

Dan turned out not only to be very solid in his analysis, but also very attuned to his audience. My job was to lead a discussion on how his ideas related to a Norwegian, as opposed to American, reality. The discussion was not necessary, because Dan and I had a couple of conversations beforehand and he took the trouble to not only read the stuff about Norway I sent him, but very carefully tailor his talk so that language and examples related to something the audience knew.

Well done, and a lesson for any speaker, no matter nationality and place. The test of your mettle is not how polished your message is, but how it is received and understood by the audience. I wish more speakers would understand this (including, incidentally, myself.)

Pretexting

HP logo  …seems to be the new word for what used to be called social engineering. Or lying. Brought to you courtesy of the board of Hewlett Packard.

The last word in this story isn’t said yet, but for now it looks like there will be some changes in HP’s board. HP used to be about great products (remember HP calculators and laser printers?) and innovation in its many divisions. You could trust products bought from them because of the solid engineering culture. Now it increasingly is beginning to look like a hollow shell, making most of its money on printer cartridges (for the last 8 years or so). Now the Board seems preoccupied with spying on each other.

How the mighty have fallen. And kudos to Tom Perkins for having some sense of ethics.

(Via Scoble, Techdirt, and just about everyone else)

Update: Now Perkins’ letter is available at The Smoking Gun. That’s a web site I would love to see here in Norway.