Insights

Apple, Flash and the new development realties

http://www.apple.com/hotnews/thoughts-on-flash/

I usually don’t comment on technology platforms but the situation between Adobe and Apple is going to affect the entire landscape of web, mobile and pad device development. If you click on the link above you will find a open letter from Apple CEO Steve Jobs that makes his case for not running Flash based products on his mobile devices. I will let him explain his position but what it means to Decision Counsel and many of our clients is that as we continue to develop products for mobile users and devices; the Apple platforms will require unique and separate development efforts. This is significant because the iPhone continues to build on its significant market share and the iPad platform has received an enthusiastic reaction from its users. In short, Apple is too big to be ignored.

The reason this presents such a pressing concern to our community is that 70% of the rich media used on the web is flash based. Additionally Adobe tools are used to produce a significant amount of the worlds web sites. While I believe PC based web browsing will not be affected by this battle, mobile device development surely will. To that end Decision Counsel has launched a mobile development initiative that will focus entirely on touch screen, mobile device and pad/tablet computing. We are going to focus primarily on i-Phone, Blackberry and Android Environments with some consideration of Windows and Symbian if they begin to gain market share. It’s time we put our money where our rhetorical mouth has been.

Whether you are just starting your mobile applications development or looking to evolve existing products, I would recommend examining this battle between Adobe and Apple, it will be a strategic issues for all of us. The silver lining to all of this is that the mobile media content market is still nascent and evolving. It would have been great if there was one master development platform that allowed us to “write once, publish to all” but it does not exist. (perhaps HTML 5 tools will evolve to that point) I hope you find the article as compelling as I did. Steve Jobs has clearly decided to challenge the industry to consider mobile a separate animal in the same way the web was considered in 1995. I remember back then we would always say “but its still just content right” we discovered it was a lot more than that back then and I think we will again.

Best Sal

Lessons from our Riverboat office.

Update from the Rhine River: Unless you have unlimited budget, using your U.S. based carrier is really not a long term option. We have calculated that if we used AT&T for all of our data communications on this trip we would spend between 2000 and 3000 a month and that is based on the discounted plan. The key to operating a remote office Europe is really a story in buying local communication resources. Our GSM data and telephone coverage has been phenomenal and has saved us when the satellite internet connection and land based broadband networks failed.

We are working with our hosts to figure out the monthly costs of an unlimited data and mobile plan that would take you throughout Europe and we are going to post later today.

More to come………

Lessons from our Riverboat office.

Update from the Rhine River: Unless you have unlimited budget, using your U.S. based carrier is really not a long term option. We have calculated that if we used AT&T for all of our data communications on this trip we would spend between 2000 and 3000 a month and that is based on the discounted plan. The key to operating a remote office Europe is really a story in buying local communication resources. Our GSM data and telephone coverage has been phenomenal and has saved us when the satellite internet connection and land based broadband networks failed.

We are working with our hosts to figure out the monthly costs of an unlimited data and mobile plan that would take you throughout Europe and we are going to post later today.

More to come………

You can work from anywhere right?

This week, our EVP Brad Gerstein and I will be on a client trip to Europe. We arrived in Amsterdam yesterday and had a well connected day since we both use GSM phones and our hotel had very fast wifi. We are going to use this week to test numerous connectivity devices and the prospect of the globally connected enterprise. We are scheduling video conferences, creative meetings and strategy sessions this week to push the envelope on global collaboration. If you have suggestions for our “connectivity lab” let us know. More to come……

Microsoft needs to learn from Palm

If you did not see the news Palm once again took a fall It what is proving to be a very familiar pattern, Palm introduced a innovative and useful product, failed to to get developer and carrier support and lost at the point of sale. Blackberry owns corporate, Apple owns the consumer and Nokia owns Europe, bottom line they can’t compete. Now Microsoft is coming back with the latest version of their mobile platform and it is time to see if they can play the game. Now lets start with a reality check, Microsoft has billions to invest, a desktop installed based to leverage and tons of large corporations standardized on their platform, so they have more than enough resources to weather the battle.

The problem? Microsoft can’t seem to build a system that really leverages the best of what mobile can be. If you are one of the top 5 software companies in the world you should be able to seamlessly integrate the best entertainment products, (iTunes for Windows Mobile?) best business email technologies and social media platforms. Leverage your competitors mistakes (anyone know why Apple still hates flash on mobile devices?) and utilize your expertise in gaming that you have gained form your XBox community.

Palm never did three critical things and it killed their chance for success. A. They never moved beyond Sprint with their product line and by the time they got Verizon signed up, Droid arrived and killed them. B.  They never had a developer strategy that provided solid distribution for their partners and C. They could never make inroads into the corporate market.  These are mistakes Microsoft does not have to repeat.  Redmond has enough money to get all the carriers attention and  they have a huge corporate installed base they should be able to leverage for growth.  Of course they need to come up with a great alternative to the AppStore.

Google, Apple, Blackberry and Nokia are all ahead of Microsoft right now and Mr. Balmer need to catch up fast.  He need only look to Sunnyvale to see the price of failure.  Tell me what you think, Sal

the new agency / media reality

MINSONLINE reported today that Meredith had just become the agency of record for Chrysler. While every media pundit and their grandmother has been predicting that media companies and agencies would start vying for the strategic lead with major clients; this is the best illustration that it has become a serious reality. The truth is that ‘agencies’ have lost their strategic footing. Media companies have great strategic knowledge of markets and customers segments, usually have great research and have huge databases of customers. Add creative and strategic services and you have a recipe for success. Because so many of our clients are media companies, DC started to build a partnership model 2 years ago that enables us to ‘private label’ our services to B2B media firms. It made no sense for us to invest money and resources trying to be experts in every market segment. I think many agencies are going to face the same decision we did, do you invest in the databases, content and research resources required to compete with segmented media firms or do you partner? I believe the most successful will merge or be acquired by a complimentary partner. Check out the article for yourself, I would love to hear your comments. Sal

http://www.minonline.com/news/Meredith-Takes-the-Keys-Marketing-Unit-Lands-Chrysler_12951.html

On Corporate Arrogance

I was saddened this week as I read the coverage of Motorola’s line of Android based smart phones. As many of you know I left Motorola in the mid 90’s at the height of its cell phone and pager dominance because (and I swear this is true) the President of Motorola told our product team that “nobody will ever want to watch choppy video in 3 inch windows on their computers”. I was very bitter when Real Networks went public and pretty much “Apocalyptic” when Google bought YouTube. (So much for not carrying grudges.) Yet, I have great fondness for Motorola, they had excellent management philosophies, a love of smart technical minds and a fraternal culture that made you proud to work there. I never pursued an MBA because Motorola all but gave me a degree with extensive training, implemented best practices and access to great minds.

This week reminded me what happens to market leaders when they are unwilling to cannibalize their own products and force product evolution. I remember having brutal disagreements with Motorola senior executives as they dismissed RIM and Nokia as serious competitors and took a Henry Ford approach to selection, options and feature development. So this week they introduced a very strong line of smart phones into the market they once dominated with little fanfare, poor distribution and some earned skepticism. Blackberry has a huge installed base of North American business users, Apple has the finest consumer experience for entertainment and the best application store in mobile and Nokia has a huge global installed base of smart phone devices but struggles in the U.S., plus Palm has quadrupled their stock price with the high expectations for the Pre devices and new software platform.
So how do we prevent making the same mistakes that lead Motorola to lose leadership positions in not 1 but 2 multi-billion dollar categories?

1. Understand the competition completely. True competitive analysis is a culture not an exercise with a deliverable. Examine the new product pipeline weekly, include small market share players (Sidekick anyone?) and constantly ping users for unbiased opinions. (I recommend customer panels to all of our clients, BtoB or BtoC)
2. Don’t be afraid to shorten a product lifecycle even if you leave money on the table. Bill Walsh the famous 49er coach let Joe Montana, Todd Rathman and Ronnie Lott leave the team even though they had a couple of good years left. He felt it was better to let go of a great player too soon instead of too late. The same is true of products and services. Many publishers are facing the question of when to close print publications and transfer all of their sales efforts to online and digital programs. In some cases it means significant revenue loss that cannot be replaced for a couple of years. I would argue that if print is not making money and is not directly related to supporting ancillary revenue streams, it is better to begin the painful transaction earlier than later.
3. Don’t leave major gaps in your product line. Look at the recent success of the Flip portable video cameras. Canon, Kodak, Sony and Casio all have great products but in comes a small nice player who captures a sub $200.00 price point for video and the competition is caught flat footed. The major players kept trying to maintain higher price points with additional features instead of embracing a large segment of the market who just wanted something “good enough”.
4. Rapidly replace bad products. For all the flack that Microsoft takes for lack of innovation and bully tactics, they do recognize mistakes and rapidly respond to product failures. Windows Vista has been a big disappointment but Microsoft has rapidly accelerated the introduction of Windows 7 in an effort to minimize the damage. They did the same thing with the dreadful Windows Me and will be killing the clunky Entourage in the next version of Office for the Mac.
5. Have customers handle the testing and QA process. Some of the best QA data and features feedback we have ever received has been directly from front line users of our web sites. This was also true of our product development teams at Acer. Having customers serve as “official” development team members usually guarantees that your offerings have a better chance of gaining traction.

Tell me your thoughts…….

2009: In search of the Outlier

I started 2009 by diving into Malcom Gladwell’s new book Outliers. The book is an extension of some the ideas he introduced in Blink and it offers some great lessons in not assuming the obvious.  With everyone justifiably concerned about the global economic environment in 2009, it appears to me that business managers will have to determine whether they will focus on limiting the damage of the macro economic issues or aggressively develop  ”outlying” opportunities. The fact is that bad economies favor cash rich market leaders.  They have the ability to weather the credit crisis and the discretion to develop market share strategies that pressure competitors.  The dilemma is defining what is a true “Outlier” what is the missing data point or market opportunity that would trigger a market changing initiative?  In his book Gladwell touches upon an analysis of very high IQ (genius) individuals and examines why their performance in life was relatively average when compared to a random sampling of the population.  The reality is that business leaders often make the same mistake. In the same way that IQ was overly weighted in determining success, my belief is that we don’t look for intangibles and orthogonal data.  I have had personal experience with this, in 1997, I had two executives at Motorola tell me that no one would ever watch video over the internet displayed in a 3 inch by 3 inch square. There was no market data to support it, so we abandoned our market leading technology! When Real Networks went public a year later, I learned a lot about instinctive marketing and understanding a trend vs. a fad.  I believe 2009 presents some amazing opportunities for companies with solid, intuitive,  product development teams and marketers.  The continuing verticalization of content on the web will open huge opportunities for content creators, the  emergence of mobile platforms (iphone, android, symbian) will open up entire new markets for software developers and the proliferation of cloud computing and virtualization will create new enterprise computing services.  So the question is who will seize the opportunity?  With Venture Capital tight and entrepreneurs struggling to find angel investors, the landscape is open for the “big boys” to find their “Outliers” to risky? Let me know what you think!  

Reference: Malcom Gladwell Site | New York Times Review

What if we were wrong about relevant, dynamic content?

One of the fundamental premises of the web media world whether consumer or b to b has been the belief and commitment to dynamic content.  The idea of taking as much information as we have about a user (content interest, past behavior, search terms, geography) and then threading anything we had tagged with those attributes into a page has been a “best practice” for quite some time.  Amazon has built one hell of a business on it and news site have used contextual reference to create wonderful audience engagement strategies, so why then would I pose such a ridiculous question?  Because in a world in which 50% of media site traffic is often derived from search, pre-existing, highly edited content may present an untapped opportunity to develop category ownership and sustainable competitive advantages.

We know this works in consumer service journalism.  Restaurant guides, movie reviews and product round-ups have always been huge audience generators.  But what about topical authorities for less sexy content.  Who has the most relevant content on application virtualization or construction methodologies.  Many b to b publishers have focused on currency and coverage rather than being the most comprehensive authority on a given topic.  Often an inability to integrate with competing brands or to utilize third party content is the primary obstacle.  Recently we have seen numerous publishers with multiple titles and deep vertical industry expertise begin the process of building rich information sites with massive amounts of information organized around even the smallest verticals.  By providing users with “one stop” comprehensive sites they ensure phenomenal search results and user exploration.

So why isn’t everyone doing this? In short cost and poor content data.  Because so many companies have just recently implemented uncomprised editorial tagging, many companies cannot dynamically create this content and must assemble pages and content structures manually. (thats right, I just suggested we use dynamic tools to create static content).  Don’t get me wrong, I still love dynamically threaded lead generation, geography centric add programs and topically relevant research, I am just suggesting that perhaps we can leverage all of these dynamic experience tools to create “collections” that serves as authoritative starting points for users to engage our brands.