Archive for the 'All' Category

How recommendations can isolate people

It’s curious to me that Findory is fading on us, perhaps slipping into oblivion. It’s not the only startup with a good idea to see the lights dimming through the window of opportunity. And it’s certainly not for a lack of insight or technical chops.


I love the idea of automatic learning and recommendations. But the application of that concept makes more sense in the context of an experience as opposed to an experience itself. Last.fm understands this and represents it more effectively than just about anything I’ve seen on the Internet yet.

Scott Karp faults Findory for failing to capture the serendipity of learning what you didn’t realize you needed to know…and, particularly, who else doesn’t know it yet.

“Perhaps the good old fashioned niche is as personalized as we need to get. TechMeme and Digg are highly niche sites, and thus are tailored to the specific interests of their users without getting so personalized as to break the bonds of community.”

Succeeding as a startup in online media is also part first-mover. It’s part aesthetics. It’s part who you know and who you adopt into your friends and family.

It’s also part editorial voice. I think Findory is an interesting mirror into my interests, but I’ve found that I’m not an interesting filter through which to view the world. There are probably few individuals who are. Similarly, what I liked most about Megite was seeing other people’s personalized news, not so much my own.

But there are many communities and concepts that filter the world of information in ways that are interesting and also matter in a particular context. The filter (or media brand) represents the community and gives meaning to the information. This is publishing 101 stuff, and it applies online as much as it does off.

Succeeding in online media is also part fashion. Findory never reached a critical mass of coolness. It’s hard to say what difference the fashion sense of the engineers and founders at startups makes in their ability to succeed, but decision-making at any company is driven at least in part by intuition, moreso at startups. Without keen intuition for market forces or at least your customers, your efforts will be out of synch with the world you live in.

Related to all this, I suspect the personalized My New York Times and similar publisher offerings are going to fail or at least prove lackluster for similar reasons. None of them are first-mover offerings. None of them are pretty or engaging. None of them provide a community filter that makes information relevant and interesting. They lose the editorial voice of their parent. They’re too hard to setup. And they just aren’t cool.

On the other hand, publishers can take the behavior data their readers are generating on the site and apply that in a way that surfaces interesting information or in fact connects them to similar people directly. TechMeme is a pureplay in this space, but it’s applicable at any media site. Greg Linden probably has great software to make that possible for all publishers’ sites.

I’m also curious to see how publishers pick up on socially engaging widgets like MyBlogLog and the new ways to build community within your domain. I like how Scott framed up the issue in this quote:

“Despite all the hype about the “user in control,” purely personalized news may be too much control, a slippery slope that leads to solipsism. The proverbial “water cooler” is symbolic of our fundamental need to share the news, to validate our experiences by sharing them with others. How can there be “conversation” if we’re all talking about something different?”

Nice.

[STARTUP] gets acquired by [BIGDOTCOM] for $[LOTSOFMONEY]

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A Dotcom Startup
Competitor #1
Competitor #2
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Name of co-founder #2
Silicon Valley location
Exotic location
Large Dotcom #1
Large Dotcom #2
Web 2.0 Buzzword (noun)
Web 2.0 Buzzword (noun)
Web 2.0 Buzzword (noun)
Web 2.0 Buzzword (verb)
Web 2.0 Buzzword (verb)
Industry blogger
University
Year
Acquisition Price $
Where you keep your high school yearbook
Your favorite band

Screencasts mature…now with advertising!

I’m liking some of the innovations coming out of IDG’s InfoWorld these days (my old digs). I’m told the podcast advertising is working really well for them, but I’m particularly interested to see that they have begun screencasting in earnest…and it’s sponsored, to boot.

The InfoWorld home page now has the rotating feature box which yesterday included a link to a series of AJAX instructional screencasts. Among several related pieces, Peter Wayner produced a 7 minute instructional screencast on the Yahoo! user interface javascript libraries.

He begins by pointing out which libraries he likes and then proceeds to build a web page that utilizes the code. You can watch the screencaster type out his code and then demonstrate how it works.

Though raw in quality, the content was exactly right. The viewer is able to watch over the shoulder of someone who is at their computer working. It’s the online equivilent of Jacques Pepin…well, the finished product didn’t look all that tasty, but I learned something nonetheless.

Editor Steve Fox describes how screencasts answer the creative writing mantra ‘Show, don’t tell‘:

After all, if you’re reading about how something works, you want to see it in action. That’s where the Web’s presentation capabilities open up stunning possibilities.

Now, here’s the best part of the innovation…it has a video preroll…yes, an ad! A very brief video was baked into the beginning of the episode. Of course, I doubt Microsoft paid for this exposure being that it is so experimental, and they will be unable to measure success through traditional means, as there will be no clicks.

But show me an ad anywhere on the Internet that can capture my undivided attention better than this. And tell me how you could find a more targeted viewer than someone wanting to learn how to accomplish a specific task. It’s the best of both worlds - targeting and brand marketing.

What if this video clip was socializable (is that a word?) and caught fire around the web? InfoWorld should offer the embed script with each screencast so that someone can post it to their blog or their favorite video sharing site. And even better than that, the InfoWorld screencaster should actively post his screencasts to every video sharing site he can find and try to get some comment love from the people he’s connected to out there. Each screencast could live a contagious existence as people socialize it in different ways. InfoWorld already baked in the logo into the video stream, so any loss of control in the distribution is automatically mitigated by guaranteed brand exposure.

I’m sure critics will say that video on the Internet and video ads have been around for a long time, and podcasting already acts this way. I’d argue that this is actually really new.

Not only is the screencast format easier to produce than live action video and more compelling than podcasting, but the instructional nature of it gives the viewer and the screencaster a uniquely engaging relationship. As a result, the advertising in this environment can be much more relevant than your typical preroll video ad on news or entertainment content.

Of course, they can be fun to make, too. I’ll bet the editors are much more excited to narrate a screencast they can edit and produce on their own and distribute through the proven web page and RSS methods than they would be to sit in a mock studio with the marketing team telling them how to look good for the camera. It can’t be fun acting like you’re on TV fully aware that your webcast video audience will be a few hundred people at best after the clip gets posted behind an awkward lead capture wall.

Well done, guys. This is the kind of investment that could kick your online growth path well beyond the revenue tipping point.

Designing for the future

There’s a great presentation by William McDonough speaking at the Bioneers Conference back in 2000 about designing for the future available via Google Video (thanks Metafilter). He has a revolutionary perspective on how humanity needs to think about its current institutions and processes compared to the kind of future we’re currently designing for ourselves.

He talks about the design flaws in a society that doesn’t yet respect the rights of non human species or the future generations of life. The Endangered Species Act was passed only 30 years ago, the first acknowledgement that another species has a right to exist. He discusses the design flaws in the Industrial Revolution that led to man’s intent to constrain nature.

McDonough goes on to talk about waste and the idea of “throwing things away”. Such phrases and concepts will undoubtedly be challenged by our children who have to own the future waste problems today’s generations are creating for them. He asks how you would map the plutonian disposal locations buried deep below the earth’s surface today for generations thousands of years from now who will surely need to know where we put it.

Anyhow, this presentation really captured my imagination in several ways including the important question of what we are designing into our future world with today’s Internet innovations. What can we do today to at least mitigate if not correct the known errors in judgment made to date?

For example…

Social Decay
The tools of the Internet have enabled us to connect to other geographically diverse people in amazing ways at amazing speeds at low cost. In most cases, those connections are lighter and looser and less involved than the connections people create when spending time doing things together.

Are the lightweight connections on the Internet costing us time spent face-to-face? Are we isolating ourselves from the real world as we bury ourselves under the many media experiences surrounding us all the time? How can the Internet connect us more deeply and meaningfully to the people and the things that matter rather than distance us?

Information Classes
Knowledge is power. But the power of knowledge should never be used for subjugation.  Couldn’t we mitigate abuse of knowledge by giving everyone access to as much knowledge as they want to have?  Is Internet access a right on a global scale that should be protected for all? Should objective information such as independent journalism be not just a protected public service but a requirement for modern global society?

Energy Consumption


Photo: Fully Armed Vishnu

The power requirements needed to sustain all the web sites in the world are escalating. Are there other ways to power the Internet? Can computers and networks use less power and create less waste? Is it possible to have a entirely recyclable phone? More importantly, can they create power and reduce waste?

McDonough challenges traditional capitalism and government policy alike. He sees a triumverate forming where a “Bill of Responsibility” much like the “Bill of Rights” might reconstruct the incentives for making the world a better place. It’s not about creating efficiency but rather creating a design for growth.

The questions is, “What do you want to grow?”

Open source software as a customer capture tool

I just started messing around with a product called SugarCRM which is an open source sales contact management tool much like Salesforce.com.

SugarCRMThey’ve done a really clever thing which is to build a revenue model around the added services rather than try to charge for the core software. You can download the same app that everyone else uses and install it yourself for free. But if you’re not up to the installation challenge, you can let them host it for you and get started in about 5 minutes for a $40/month usage fee. They charge more for additional services that larger groups may require.

I simultaneously started playing with the Salesforce.com free 30 day trial so that I could compare products. But I quickly realized that my learning curve for operationalizing any CRM system as part of my business was much more than 30 days. I also realized that I wanted the ability to do some major customizations which most likely need to happen at the code level. And I figured a Salesforce.com rep was going to call me and start selling to me which seemed like a fair price to pay but one I could actually do without. In fact, I got a call within 24 hours.

I wouldn’t have considered any of these issues as requirements except for the fact that they are available to me. I downloaded the SugarCRM software, installed it, configured it and uploaded a bunch of data in one afternoon. I now have a view into my customer pipeline that is going to simplify both strategic decisions as well as synthesize the variety of conversations happening across the business.

Now, I’m sure that Salesforce.com is more robust and that they have a lot of services and data integration methods I can’t get with SugarCRM. It must work better for larger organizations. I’m sure that Salesforce.com is more reliable, has fewer bugs, has more 3rd party developer tools, etc. At InfoWorld I learned that the cost of open source software becomes time and customization work which is sometimes more expensive than paying service fees (Aug. 2002, April 2006).

The San Francisco Chronicle noted this week that Salesforce.com is in a strong position with its model:

“A growing number of small businesses already realize that, despite recent problems, on-demand software makes more sense than setting up your own computer network.”

A sales manager at Salesforce.com informed me that he has never personally had to sell against SugarCRM in any of his calls. The market for it is probably pretty small.

However I just can’t help but I wonder if SugarCRM is in a position to do to Salesforce.com what Salesforce.com once did to Siebel, undercutting on price and extending efficiencies further out to the edge. The edge used to be self-serve style software as a service. SugarCRM went further and took the edge all the way out to the open source community.

A CRM app isn’t core to running my business. I can do what I need with spreadsheets. But if this tool makes my life easier or allows me to spread intelligence further or faster or if I’m able to make decisions I couldn’t otherwise visualize in my head, and I suspect it might, then I will definitely invest more heavily in it. At that point I may be calling on SugarCRM for additional services.

This software model also has the nice effect of helping me drive myself through the customer marketing funnel at my own pace. At the end of it, I won’t mind paying them for their services, and, in fact, I might be asking to pay for them. What sales person wouldn’t rather receive calls than make them?

Of course, the moment I need services that are worth paying for, I may need to switch to Salesforce.com. SugarCRM is banking on the possibility that I’ll reach user lock in before I get to that point. If I have to make that decision, then it means things are going well. And for that, SugarCRM will already have “loyalty” checked off in their column of my product comparison chart.