Archive for March, 2009

Creativity: logical or lateral?

Friday, March 27th, 2009

ThinkingLateral Action recently discussed the idea that Edward de Bono’s classic idea of lateral thinking has some detractors.

I believe the upshot of the challenge is that evidence shows creativity more as a process of trial and error, logical stepwise thinking, and execution of ideas than any “different” perspective.

The example discussed as the contentious one: physiologists not knowing what the long loops in kidney tubules were for and an engineer easily being able to identify them as a solution concentrating feature.  de Bono contends that the engineer’s fresh perspective was the lateral thought process that was needed by the physiologists. Robert Weisberg, author of several books on thinking and creativity, says that from the engineer’s point of view, the conclusion was logical and not very far out of his experience and skill set.

I think the argument merely bolsters my long-held view that diversity on teams is critical for success, especially when innovating.  So I think creativity stems from both logical and lateral thinking.

Efficiency and knowledge management

Thursday, March 26th, 2009

I’ve been out talking to people recently, trying to find out more about what the business community needs these days.  Apart from outsourcing managers, bankruptcy professionals, and downsizing specialists, the number one thing they need is efficiency: doing more with less.

In days past, an efficiency expert was someone whom the frontline workers dreaded.  These people might come in and count the number of keystrokes a data entry operator performed in an hour.  Or they would measure the distance or time it took for someone to walk from their desk to the photocopier.  Or they could study the flow of paperwork around an office, sniping bottlenecks whenever they found one.

Obviously efficiency is best built into systems from the ground up.  Retrofitting better process and flow into existing systems is more difficult, yet necessary.  For today’s businesses, nimble responses to whatever the economy is throwing at them are crucial. Many businesses are finding that getting a better handle on their business data and customer-facing materials is key to success.  Data mining and content management can be combined into a single organic “knowledge base”.  This was the concept behind just-in-time inventory and web-based ordering systems.  Business owners are finding innovative ways to expose key elements of what was once “confidential” information so they can connect more closely with their customers.  A recent example I discussed with one business: bookings for education engagements, with participant permission, can be put online so others can sign up to fill the empty spots in the class and lower the cost for everyone.

There are plenty of examples — and of course there are risks.  Accidental exposure of proprietary information is the key issue that makes all business owners wary.  I believe that as web applications that drive all aspects of a business become more and more trusted, the compartmentalization of proprietary and public information (all coming from a shared base) will become more accepted.

The idea of not having to put information into a database ever more than once is they key to deriving efficiency from any knowledge management implementation.

Local content means high touch

Tuesday, March 24th, 2009

Newspapers were originally very good at being part of the communities they served.  To save money, they started buying content, thus losing their connection to the community.  Now that bought content is available for free all over the Internet, meaning that many newspapers have lost any edge they may have once had.  TechDirt reports on a newspaper in Austin that has ties with the South By Southwest (SxSW) event and is doing very well thank you.

nav_logoThis is another example of the “local sells” idea that I have been pushing lately. But imagine if someone were selling local stories to a local newspaper — it would still lack a true connection to the community.  So we’re not just talking about paying lip service to the idea of local content, but really being involved in and aware of local happenings.

The news is dead; long live the news!

Saturday, March 21st, 2009

Clay Shirky recently wrote a brilliant piece about the inevitable death of newspapers.  He gives a bunch of reasons for this inevitability, but also casts the light of hope on the situation.  He does that by showing how we are in the midst of an upheaval, a revolution, and predicting the outcome or showing what will replace the dead newspapers is impossible at this point.

Lots of people are tuning up to play the funeral dirge for the newspaper business, but Shirky points out that journalism will continue to thrive, albeit in a different form.  This makes sense to me, and I think the previous doom and gloom scenarios about how the Internet is making people illiterate are utterly false.  Writing well is just as important as ever and the proliferation of blogs provides more people an opportunity to practice the craft.  I would also venture that investigative and research skills (another key aspect of good journalism) are not diminished by the Internet per se (as many people claim, pointing to aggregators and link farms as proof of laziness).  There were lazy journalists before the Internet and there will be in the future too.

I think the future of media is murky, yet bright — hey, you can get a sunburn on an overcast day.  I look forward to seeing the waters clear over the next few years.

Thoughts on repairing the world

Tuesday, March 17th, 2009

They say those who don’t study history are doomed to repeat it.  I have never disagreed with that notion, but I have also never really studied history in as much depth as I probably should.  Still, every once in a while I find a quotation that I swear must have come from last week’s pundits when in fact it was said a very long time ago.  The following is not the best example, since the language is somewhat antiquated, but all the sentiments apply to current events.  Take heed anyone trying to fix our recent economic and social woes:

You cannot bring about prosperity by discouraging thrift.  You cannot strengthen the weak by weakening the strong.  You cannot help the wage earner by pulling down the wage payer.  You cannot further the brotherhood of man by encouraging class hatred.  You cannot help the poor by destroying the rich. You cannot keep out of trouble by spending more than you earn. You cannot build character and courage by taking away man’s initiative and independence.  You cannot help men permanently by doing for them what they could and should do for themselves.

While researching this post, I discovered that this quotation is usually attributed to Abraham Lincoln. As it turns out, that is a misattribution. The error apparently originated in a leaflet printed in 1942 by a conservative political organization called the Committee for Constitutional Government. The leaflet’s title was “Lincoln on Limitations”. It contained some genuine Lincoln quotations on one side and the “Ten Cannots” on the other, but the attributions were juxtaposed. Unfortunately that means I haven’t been able to identify the original author of the words, which were likely first published around 1916.

Note that Paul Getty offered a different perspective when he said: “You cannot bring about prosperity without discouraging thrift.”  This is the idea that all of us can help improve the economy by responsibly spending our money and not hiding in our basements with the blanket over our heads, hoarding every penny.

Newspapers are thriving

Wednesday, March 11th, 2009

The headline is of course a red herring.  The newspaper business is dying.

But as late as last year, there was one sector of the newspaper industry that was still growing (at least in several geographies): local weeklies.  Amazingly, advertising salespeople Newspapersin this niche are just now turning to the web to augment the advertising packages they offer to clients. As I’ve been posting recently, locale-specific web advertising works.  The challenge for any media company is to include quality locale-specific content along with the advertising.  Citizen journalists, like the mythical shiftless immigrants that take the blame in other industries, are supposedly stealing jobs from “real reporters”.  In fact, there is a collusion of events and circumstances that have gutted most news gathering organizations.  Sadly, a vicious cycle compounds the problem: the more anemic a news gathering staff becomes, the less capable they are at producing quality content, the less the readers want to read, the less the advertisers want to pay, the less money the paper has, the more anemic a news gathering staff becomes…

Steve Yelvington is a brilliant man who (based on what I can tell from his brief bio) has worked in the newspaper business all his career.  But he is one of the few thinkers in this area, with such a background, who has broken out of his shell and is coming to pretty solid conclusions about how to move forward.  It’s cool to read about his work to implement a content management system for his company, but also get his perspective on the issues facing his industry as a whole.  Many of the issues are related to the newspapers trying to drive revenue and thinking they can charge for their online content.

One interesting conclusion he has come to is that combining the online and traditional print organizations into a single entity often fails.  I find this counter-intuitive.  But when I read his reasons for stating this, it is purely to do with human nature: the way people resist change.  I truly believe that if a media outlet were to launch tomorrow and they built a combined web/print model from the ground up, the combined effort would be much more natural.

Another key point that Yelvington tries to get people to listen to: unique visitors is a bogus statistic.  If you think you can capture 10 percent of the “85 zillion” unique visitors, you’re dreaming.  What you really want to focus on are the return visitors.  People who like your site enough that they keep coming back.  Yelvington warns that this number is usually surprisingly low.  His dire statement: “If you can’t get people to come back for free content, what makes you think they will pay?”

Yelvington also remarks frequently on his blog about something that is really at the heart of Media 3.0 thinking: technology matters far less than the community.  All the assumptions that the innovations in software and bandwidth are what really drive growth are discounting the power of social media: it’s about people not technology. Yelvington cites Pownce versus Twitter.  Pownce was slicker, faster, and easier to use.  But it is gone now.  Twitter had the critical mass of people interacting (so much so that the community on Twitter has a joke about “fail whale“: what happens when the traffic gets so heavy that Twitter just stops working).  The Twitter team has worked diligently to overcome the scaling problems and the “tweeting” community continues to grow.

I will continue to read Yelvington’s blog with interest.  It’s great to see new thinking coming out of an industry that most technology pundits have simply written off.

Local sells, lying loses

Tuesday, March 10th, 2009

The following is a modified excerpt from an actual Web site (I took out the angle brackets and script notation):

Thank you for visiting my site. This is Corey Peters. I grew up in the –script src=“http://j.maxmind.com/app/geoip.js” –document.write(geoip_city()); document.write(geoip_region()); area. This is my story on how filling out one simple online form changed my life. Basically I actually make around $5,500 to $7,000 a month from Google.

So when you read the results on the web, you think the guy grew up in your local area.  But it is a scam and a half.  It is a scam because it is about link farming.  But it is another half a scam because it dynamically changes the “facts” for each visitor no matter where they are.  This practice is cropping up all over the Internet; Facebook allows it to happen.

Five hotties in (your city) want to meet you!

Three people from (your city) have a crush on you.

It is despicable.  I am especially annoyed with this practice after reading my brother-in-law’s excellent point about how legitimately locale-targeted Google ads can be very effective.

The rise and fall of the CD empire

Monday, March 9th, 2009

I previously wrote about the need to change the business model for the recording industry.  This is a slightly different take on the same subject.

Yesterday was the 30th anniversary of the first public demonstration of the Compact Disc.  The technology has been good to us.  It was a great way to store and carry digital data, starting with music but expanding to software and photos over time.

Record companies (often called “labels” in the industry lingo) eventually stopped producing vinyl records and switched to CD production.  In those thirty years there was a pretty rapid rise and fall of the CD.  Lately there has been an attempt to recast the vinyl record as a more “pure” sound.  Of course, the sound you get out of any particular system has different characteristics which is why some people think mp3 is the best and some say a much more lossless format is better.  In any case, the reproduction quality of the format is not all that makes it rise or fall, as we saw with Beta versus VHS.  Often business reasons are behind the success or failure.

In the case of CDs, digital distribution is simply easier, and is quickly becoming faster too.  The cost to digitally distribute content is very close to zero.  The labels want to hang on to their middleman status.  They want to be able to control distribution.  That’s what they’ve been all about since their inception.

The artist often gets about 9 percent of a CD sale.  The label gets 46 percent and the retailer about 45 percent.  Now, these are unconfirmed numbers but most accounts I have read float around this same breakdown — and the point is to show how small a percentage goes to the artist.  Cutting out the middlemen and having a far lower priced product (approaching zero) would mean the artist gets a cut of all proceeds.  For those thinking that a cut of zero is still zero, think of freely available digital content like business cards you hand out: the more people who know and like your free content, the more will be willing to pay for scarce goods or services you can charge for.  And in the future it will be the artist who can best offer these scarce items: concerts, time with the artist, commissioned songs, and physical items (like limited edition album art).  All offered without the middlemen.

Interestingly, some artists are trying to sue their record companies to prove that digital distribution is more akin to a licensing arrangement (like they’d get if their music appeared in a movie) than a distribution mechanism.  So far the courts decree that they are one and the same. but I predict that something will change drastically over the next few years.  (I personally feel that digital distribution is best compared to radio airplay, where the distributor gets money from advertising and then pays royalty… although I argue that in the Internet age that royalty can be paid directly to the artist.) The downward pressure on the price people can charge for digital distribution (aka “piracy”) makes some kind of radical change inevitable.