Tuesday, July 15, 2008

Think It Through

I ran across this article a day or two ago which contains some good advice, from somebody who's in the business of investing in startups, Stu Phillips of Ridgelift Ventures. He writes that one of the most common problems he sees, with new ventures and small business', is "failure to think things through."

A good list of common issues:
  • How does the product fit into the customer's environment?
  • What is the sales strategy - how do you make more on the sale than it costs you to get.
  • What is the likely response of your competitors (especially if they are large and profitable – read well armed!)?
  • How is value built for the investors (M&A or IPO)?
  • What is your contingency plan when things (inevitably) go wrong?
  • What do you need to do to raise the NEXT round of investment at a better price than the current round?
The point is that this thought process takes place BEFORE problems arise.

Monday, July 14, 2008

Business Would Be Boring If...

we didn't laugh a little. A very good friend once told me we should play as hard as we work. Since hearing that bit of wisdom I have tried to take it to heart. Perhaps you should as well. Here a some funny quotes about business to hopefully at least make you smile.

  • "A criminal is a person with predatory instincts who has not sufficient capital to form a corporation." Howard Scott.
  • "I'm spending a year dead for tax reasons." Douglas Adams.
  • "I always arrive late at the office, but I make up for it by leaving early." Charles Lamb.
  • "In Italy for thirty years under the Borgias they had warfare, terror, murder and bloodshed but they produced Michelangelo, Leonardo da Vinci and the Renaissance. In Switzerland, they had brotherly love; they had five hundred years of democracy and peace and what did they produce? The cuckoo clock." Orson Welles.
  • "Only one thing is impossible for God: To find any sense in any copyright law on the planet." Mark Twain
  • "The definition of a consultant: Someone who borrows, your watch, tells you the time and then charges you for the privilege." letter in the Times newspaper.
  • "In the business world an executive knows something about everything, a technician knows everything about something and the switchboard operator knows everything." Harold Coffin.
  • "The first rule of business is: Do other men for they would do you." Charles Dickens.
  • "Few great men would have got past personnel." Paul Goodman.
  • "When I asked my accountant if anything could get me out of this mess I am in now he thought for a long time and said, 'Yes, death would help'." Robert Morley.

Thursday, July 10, 2008

You(r)Tube Privacy at Risk

Yes, we know what you watched last summer, or at least Viacom's attorneys soon will.

The owners of Comedy Central and VH1 are attempting to prove that more people watch pirated clips of John Stewart and Behind The Music than, say, the Wii Fit Girl. In the aggregate, maybe more people are watching clips of The Daily Show on them Internets. But a viral video will still draw more eyeballs than any single thing the mainstream media can belch out, regardless of how clever Stewart is. Partly that's because most people who'd want to see it already have, for free, over the airwaves.

Trouble is, our video viewing habits are supposed to be protected by federal law. After a reporter went dumpster diving on Supreme Court nominee Robert Bork in 1987 and came up with Blockbuster rental receipts (he was looking for porn, but mostly he found Hitchcock and Fellini) Congress passed a law explicitly protecting the privacy of movie rentals. The judge in the Viacom case, Louis Stanton, decided that watching a YouTube video somehow qualified as less worthy of protection than Bork's VCR.

The usual answer from people who claim to be perfectly happy having attorneys rooting around their private lives like squirrels in a nuthouse is that they've "got nothing to hide." To which I usually say, "terrific, now drop your pants." Everybody's got something to hide, even if it probably isn't what they watched on YouTube.

The right to keep one's thoughts and interests private -- and by extension, things that indicate thoughts and interests, like books and movies -- is one of the keys to democracy. Nobody can demand to know what's going on between my ears (and trust me, you don't want to know). That's the way I like it.

The real problem here is the obsession with data collection that infects Google, Microsoft, and other major service providers. If there's a reason to keep a running record of every YouTube video I've watched or Web search I've run over the last 18 months, I can't see it -- and Google has done a p*** poor job of explaining why they need it. Because if a record is out there, you're almost guaranteed that some day a lawyer with a subpoena may come looking for it.

Do you YouTube?

Wednesday, July 9, 2008

Top Technologies You Need to Know About

Software publishers and hardware manufacturers are making significant efforts and progress on simplifying their offerings to the benefit of everyone. Simplicity is about “How do humans really work? What do they really need to do to accomplish a task?” These are very difficult questions to answer, but the answers are coming because a number of designers have been working on the question for some time.

Several technologies and products are examples of simplicity including SaaS and offerings like the Google search engine. What was the theme that came in second for this year. “You don’t know what you don’t know.” Clearly this is an issue as technology becomes more complex and good offerings become more plentiful.

So what are the current “hot” items from a short- and long-term perspective? The short-term technologies that business's should consider include:

Virtualization: All sizes of organizations should virtualize their servers and applications and that many publishers are responding by packaging their software in virtual appliances. Business's can adopt much of this technology now for servers, and over the next few years you will see your desktops, applications and storage all virtualized. VMWare is king of this space, but Microsoft, IBM, Oracle, Sun and Citrix all have reasonable options.

Software as a Service: Bill.Com, The Business Analyst, Capital Confirmation, GoFileRoom, MyPay, Run by ADP, PaySimple, SageWorks ProfitCents, SAP Business By Design, TimeBuilder and XCM all have offerings that can be installed quickly and run from a Web browser. In some cases, I do not know of a viable competitor with the same capabilities at any price. In other cases (unfortunately under nondisclosure) there are some superb offerings that you will see yet this year in addition to these new generation products.

Third-party products: These vendors expand and improve mainstream products by finding a need and filling it. For example, for QuickBooks alone there are: LeGrand CRM, MISys manufacturing, Fishbowl Inventory, BillQuick Time and Billing, Avalara AvaTax, SpeedTax, Softrak Adagio FX and Wasp Barcode just to name a few, plus thousands of others. Further, many of these products can work standalone or with other products as well.

Windows Server 2008: Windows Server has notable performance and reliability improvements including the supporting products of SQL 2008, Hyper V, ForeFront and improved Active Directory. SharePoint Services, PerformancePoint, Exchange 2007 and IIS are all becoming more widely deployed.

Windows Vista and Office 2007: The current technology is good, and ready to be deployed. I recommend using the 64-bit versions even though initial implementation may be a little more difficult. For most organizations using Open Licensing with Software Assurance is the best strategy, particularly after you have enrolled in MPAN. Remember that these technologies will be replaced by Windows 7 and Office 14 in 2009.

Improvements in scanners: Both Fujitsu and Canon have had notable and major improvements in their product lines this year. You should definitely take note and make your acquisitions from the new lines. The Fujitsu ScanSnap S300 and S510 are notable improvements as are the Fujitsu fi-6140 and fi-6240.

Reporting: There are significant shifts occurring in business reporting including Excel reporting tools like BizNet Software, Adagio FX, Crystal Xcelsius and the shift at Microsoft from FRx to PerformancePoint. Many of the business analytics companies and products have been purchased by larger companies, for example Business Objects being acquired by SAP, Cognos being acquired by IBM, and Hyperion being acquired by Oracle.

Voice over IP (VOIP): This technology has come of age. In doing the research for my own company this year, I was exceptionally pleased at how usable and affordable advanced features had become. I can see no condition under which a phone system should be replaced without at least some consideration for VOIP compared to traditional PBX or KSU systems. This applies to all sizes of companies.

Green: From the introduction of Intel’s Atom to the announcement by Dell about making their product line 50 percent more energy efficient over the next two years, being energy efficient is more than a fad. You can help your business save money by buying more energy-efficient products today, and by teaching your team about energy-saving steps to use with technology.

Security: Far from being solved, most organizations are just assessing their risks and choosing encryption software. We believe that encryption will be needed on all laptops, desktops, servers and backups by the year 2012, possibly sooner. Passwords still are sufficient today, but two- and three-tier authentication is also becoming more important.

Longer term technologies that will probably have merit include:

New generation communications: Including WiMax, 802.11n and soon-to-arrive on the desktop 10GB Ethernet.

Replacement cellular technology moving from 3G to 4G: Players will include Apple with the iPhone, RIM with new-generation BlackBerry products, Google Android and Samsung.

More SaaS and Utility computing: It should be possible to run an entire business with no servers in-house if you choose this strategy. Assume all current services can be hosted, virtualized or will be offered as SaaS.

Small portable devices replacing laptops: Prototypes have already been created using projection and other techniques eliminating laptop devices. Many of the new-generation cell phones are candidates to have enough computing power to serve as your access to information. Internet and cell phone convergence will lead to even bigger shifts in the way we use technology. Scorecard today: 3.3 billion cell phones, 1.2 billion laptops. I expect even more cell phones within three years and only moderate growth in laptops. I recommend the return to desktops at the office and home unless there is a need for portability. This strategy provides more speed and security at a lower cost.

Nanotechnology: I have long been a fan of this technology that crosses multiple industries. For computing, we expect smaller devices, security implemented via nanotechnology and flexible screen technology

Monday, July 7, 2008

Ride Your Bike to Work

I started riding my bike today before/to work and thought it would be a good idea to share some of the benfits of cycling to work. With gas prices being over $4.00 a gallon every mile biked is money saved.

According to the 2007 edition of the AAA's "Your Driving Costs," you could drive a small sedan 15,000 miles a year for 41 cents per mile. The cost can reach 66 cents per mile if you put 15,000 miles on a four-wheel-drive. That's an annual cost of $9,997—a difference of $3,750 between those two options. Those numbers mean you could save $1500 a year on a 10 mile commute if you biked it. Anyone care to take a guess on 2008 numbers?

And not to mention, you will get in better shape. A little exercise never hurts and no 12oz curls do NOT count :).

Benefits to Your Employer
  • improved employee health and well being
  • reduced need for parking
  • reduced stress in the work place

Benefits to employees
  • an opportunity to get in shape while commuting
  • reduced commute cost
  • improves their overall attitude and morale

Benefits to the community
  • improve air quality reduced
  • fuel consumption and highway congestion