Category Archives: Business – Opinion

Reading List October 5, 2005

  • Napster: The Inside Story and Lessons for Entrepreneurs (The Next Big Thing) – Don Dodge was a VP at Napster (he now runs Microsofts emerging business unit) and he gives a brief inside look at what happened to Napster in 2000 and lessons that entrepreneurs can learn from that experience.
  • Medical Data Wants to Be Free (Business 2.0) – Business 2.0 points to Fred Wilson’s blog (A VC) where he states that "[I am] convinced that we are on the cusp of a revolution in the way
    medical information is collected, shared, and used…We
    need control of our data so we can secure it, put it in a place where
    it will be available in a crisis like Katrina, so that we can continue
    to get the care we need. The public doesn’t understand this yet. But
    some people do. . . . So my bet is that medical data is about to start
    moving out of the hospitals, doctors offices, and health care plans,
    into the hands of consumer and the intermediaries they authorize to
    handle their data for them. This is a big opportunity."
  • The Economics of Peer Production (Business 2.0) – Erick Schonfeld writes a very interesting "Future Boy" column about the emergence of peer production as a replacement (complement?) for companies and markets as an organizing structure in the information realm.  Example of peer production: Wikipedia.
  • Yahoo! Print (Business 2.0) – Yahoo1 is taking a different tack than Google when it comes to indexing and searching books.  For one thing they’re concentrating on books already in the public realm.
  • Networking (New York Times) – This piece ties in nicely with the "Economics of Peer Production" piece.  Basically it says that the next wave of productivity improvements in business will come from the collaborative information environments (distributed networks) that businesses are investing in.
  • Folksonomy’ Carries Classifieds Beyond ‘SWF’ and ‘For Sale’ (New York Times) – This article focuses on three web services that allow people to self-organize based on their interests.
  • The Long Tail of Social Software (The Long Tail) – New services like Ning and JotSpot offer opportunities to expand the web’s application explosion.

Reading List October 4, 2005

  • Important Stock Tip (The Post Money Value) – A venture capitalist thinks the news of desktop applications’ demise is greatly exaggerated.
  • Web 2.0! = A Check (The Post Money Value) – The new-new thing is getting old.
  • It Just Doesn’t Matter (Patrick Eakes) – Patrick doesn’t care about major league baseball anymore (not that he hates it, he’s just indifferent), and I’m with him there.  It was great seeing the Expos turn into the Nationals and see my kids and my friends’ kids really get into it.  But this year’s Nationals were lightning in a bottle because they had to play with kids and re-treads and because Washington had baseball-starved fans in a long-neglected market.  Once the money kicks in and the Nats begin to look like the Mets or the Braves it will be harder to get excited.  From national pastime to irrelevance, what a shame.
  • Blogs and Marketing (The Lex Files) – Lex Alexander points to a report on how well some ads campaigns are doing via blogs, and thinks that it is good news for the Greensboro News & Records "Hometown Hubs" effort.
  • The Road to Greenville (A Little Urbanity) – Greenville, SC offers some great lessons in urban planning.

Lego’s Open World

Did you know that Lego has a fanatic adult fan-base?  Me either.  Some of those fanatics hacked Lego’s recently released Lego Factory system to customize it for their own uses, and instead of pulling an Apple the company decided to embrace them.  The company figures it can get new product ideas from the fanatics and it won’t cost them a dime.  Read all about it here.

Reading List September 13, 2005

  • Seven Deadly Sins (A VC) – Fred expands on a few of the seven deadly sins for entrepreneurs that venture capitalist David Beisel posted about, speaking of which…
  • Seven Founding Sins (Genuine VC) – David Beisel looks at seven deadly sins commited by many company founders.  They include inauthenticity, sloth, extravagance, taciturnity, greed, arrogance and indecisiveness.
  • Skype-eBay and Today’s Lesson (The Post Money Value) – To see the potential in the eBay purchase of Skype you have to think big.
  • Where’s the Dog Bowl? (The Post Money Value) – Rick Segal thinks that Microsoft isn’t "eating its own dog food" when it comes to the use of Outlook with the IMAP protocol.  The real interest to me is that it was the first thing I’ve read that helped me understand what IMAP means/does.
  • Positive Image and Context (The Post Money Value) – Rick has an interesting take on the memo written by the now-resigned head of FEMA, Michael Brown.  He points out that in the context of the entire memo the infamous sentence “Convey a positive image of disaster operations to government officials, community organizations and the general public” isn’t really bad.  His feeling is that if Brown had used plain language like “You’ll need to keep the red tape crap in check, show people their
    gov’t actually cares and paying taxes has somewhat of a point.”
    then this wouldn’t have blown up into a PR disaster.  He makes an interesting point.
  • NYT’s Brooks Revealed that "from Day One," the Bush White House "decided our public relations is not going to be honest" — Why Hasn’t He Written About This? (Media Matters) – During an interview on the Chris Matthews show David Brooks said that from day one the Bush administration wasn’t going to admit mistakes, even if it meant being dishonest.  Duh?
  • Jackson Compares FEMA Contracts to ‘White-Collar Looting’ (San Jose Mercury News) – From the article, "The Rev. Jesse Jackson suggested Sunday that
    the federal government was encouraging ‘white-collar looting’ by
    awarding no-bid contracts to favored companies to rebuild
    hurricane-ravaged areas, rather than giving those displaced by the
    disaster priority for jobs." The Rev. is beating the same old drum, and it’s going hurt the people he should be trying to help.  The jobs need to go to those who can do it best, period.

Yahoo! Sucks…Again

It appears that Yahoo! isn’t just having problems with their Yahoo! Music Engine.  According to this article at MarketingVox they’ve had mega-problems with their search ad service for over a week.

As much of a pain-in-the-butt the music problem has been the ad problems are a much bigger deal, both for Yahoo! and its clients.  From the article:

Although ads continue to run and advertisers can now access their
accounts, some advertisers’ credit cards and bank accounts have been
and are still being charged continuously for amounts several times over
the budget they had set, advertisers have told MarketingVOX. Though
Yahoo in all likelihood will reimburse these greatly inconvenienced –
and in some cases bankrupted – advertisers, the process is not likely
to be pleasant.

And how is Yahoo! responding?  Again from the article:

…Yahoo’s Gaude Paez told MarketingVOX that the upgrade caused
"unexpected issues," and that their engineers were working around the
clock to fix the problem.

According to various advertisers, however, Yahoo has not proactively
contacted them to inform them of the ongoing problems, and others say
Yahoo has also not returned calls or responded to repeated requests for
answers.

I’m glad to know that I’m not the only who has a hard time getting a rise out of Yahoo!, and now I’ll expand on what I said in my original "Yahoo! Sucks…Today" post; I bet if Google had a music service it would actually work and I doubt we’ll see a snafu like this with their ad service.

My last thought on this: it’s one thing for them to screw up customer service on the music service, but I really can’t understand screwing up on one of their bread & butter "products" like advertising.  I think they’re about to get "Dell Hell’d."

The Wisdom of Sharing

In his post "A Basic Threat to the Web" Dana Blankenhorn carried a comment from Karl Auerbach,
a former ICANN governor
and what Dana calls a "certified "good guy" of Internet governance."  The comment originally appeared on Dave Farber’s list, and I excerpt it here:

I’ve become concerned with how search engine companies are making a
buck off of web-based works without letting the authors share in the
wealth.

I’ve looked at my web logs and noticed the intense degree to which
search engine companies dredge through my writings – which are
explicitly marked as copyrighted and published subject to a clearly
articulated license.

The search engine companies take my works and from those they create  derivative works.

The search engine companies don’t ask my permission. Rather they
presume that they have the right to create these derivative works
unless I create an explicit denial via a robots.txt file.

The search engine companies generate revenue by making use of the
derivative works they have created from my original works. I, as the
author and copyright owner of the underlying work, am not given any
share of that revenue stream.

Yes, I gain visibility because the search engines create means to find my writings.

Perhaps that would be a reasonable bargain to make – if the  opportunity to make such a bargain were actually presented…

I am increasingly coming to the opinion that some portion of the
revenues received by search engine companies should flow to the
creators and copyright holders of the original works that are indexed
via the derivative works made by the search engines.

I have to take serious issue with this line of thinking.  Here’s my thinking:

  • I truly believe that anything posted online by its owner qualifies for "fair use."  As a web user you know that the search engines are there; if you don’t want your work to be found, shared, etc. then don’t post it.

    I understand the argument that the search engines are essentially making a presumptive deal by aggregating the content and then allowing content creators to opt out, but I disagree with that for the mere reason that by physically posting your content online you are taking the first step in making the deal.  If you don’t post it there’s nothing to aggregate.

  • Search engines provide a service that is monetarily free to users on both sides of the equation, unless you’re utilizing paid search listings.  Check your web logs and figure out how many visitors came from search engines and most likely you’ll find it is the majority. 

    So you’re getting traffic/exposure that you didn’t have to pay a penny for. But nothing in life is free, so the "price" we pay is that we allow the search engines to use our content under the terms of fair use and let them figure out how to make money.  Without money they die. Without them the web dies, or at least atrophies.

  • In his post Dana points out that if everyone takes the point of view that the search engines should share the revenue and if they don’t they’ll pull back their content, then the search engines will have nothing left to search and the afore mentioned atrophy will occur.  Personally I don’t see the business or creative masses being that shortsighted.

    Take traditional publishing companies.  Over the last 10 years they have been struggling with their business models, asking questions like "Should we put all of our content behind a secure site and charge access ala The Wall Street Journal?" or "If we make all our content free how do we make money?"  What they are finally figuring out is how to work with the web and not against it.  They are finding that magic mix of "free" content and "premium" content.  A prime example is what Anne Holland is doing over at MarketingSherpa (Full Disclosure: Anne used to be a client).

    Without the search engines these same publishers would be in trouble.  They’ve figured out that if they make a certain amount of content freely available then the search engines will help potential customers beat a path to their door.  It is up to them to figure out how to make those customers pay, and they are doing it increasingly well.

  • Finally I have to say that the current environment provides content creators with an opportunity they couldn’t have dreamed of even 15 years ago.  I think the average writer of 15 years ago would have laughed uproariously at the complaint that someone had provided free exposure for her content, but damnit they didn’t pay me for it!  Back then if you weren’t published you weren’t read.  Now you can sign up for a free blog account, the search engines love you and some kid in India who may be the next great entrepreneur is reading your stuff.

    As Dana says, "I know, I know, we’d all like to be compensated for what we write. But
    that’s what business models are for. Not just advertising, but paid
    writing, speeches, consulting. Works for IBM."

Hampton Inn is Popular with a Couple of People Today

I’m in DC this week for business and my client is putting me up in a Hampton Inn down the street from their office.  The hotel is nothing fancy but it is clean, I get a free breakfast (quality is pretty good) and free wireless internet in my room and in the lobby.

All in all I’m very happy with it, and the cost is half of all the business hotels on the same block.  From past experiences I can tell you that those other hotels have pretty nice facilities (most are suites for long term business stays and vacationing families), but they also charge annoying $10/night fees for internet that aren’t even wireless.  And the food is no better than what I’m getting at the Hampton Inn.

**Funny aside** My family is with me this week, and although the kids have been staying with their cousins they did come into the room when I was checking in.  I’m in a room equipped for the handicapped so there are two peep holes in the door, one at normal height and one at about waist level.  My daughter noticed that and said, "Look they even have holes for midgets to look through." I found it interesting she thought of midgets and not kids, but then I realized that she’s now as tall as her mother so she no longer automatically associates all things writ small as being for children.**

It seems that I’m not alone in my opinion of Hampton Inn. This morning I’m reviewing my blog feeds and I find out that Rick Segal of The Post Money Value feels the same way.  He also has pictures of the "classy touches" he found in his room, and I can attest that my room is the same.

Reading List August 10, 2005

Reading List August 8, 2005

  • Blogging As You Go Belly Up (BusinessWeek Online) – An entrepreneur starts blogging in May, just in time to chronicle his company’s demise and his impending personal bankruptcy.
  • Respond or Die (MicroPersuasion) – Steve Rubel takes the case of Google not talking to CNET and uses it as the basis for a post on why PR professionals need to respond to all media, including bloggers and citizen journalists.
  • "Search" Book Excerpt (John Battelle’s Searchblog) – This excerpt from Battelle’s book looks at how Bill Gross came to invent/develop pay-per-click advertising at GoTo.com (Overture).
  • The WiMax Imperative (Moore’s Lore) – Dana Blankenhorn on the meaning of the FCC’s ruling that the telecomm companies don’t have to lease their lines to competitors, and what wireless providers have to do to compete.
  • Indeed (A VC) – Fred Wilson’s group, Union Square Ventures, just invested in a paid job search service called Indeed (think Google Adwords for job boards).  In describing the investment he does a very good job of explaining the concept and rationale of paid job search.

Reading List August 7, 2005

  • Web 2.0: It’s a Great Time to be an Investor (Venturepreneur Partners) – An article by a venture capitalist that explains how the Web is changing from a "medium where information is simply published and remains static, into a
    platform where applications reside and services are distributed."
  • How to Write Using Stream of Conversation (Rexblog) – "I believe those of us who try to understand and interpret what is
    taking place when social media intersect with traditional media often
    place an emphasis on the idea that the article is the beginning of a conversation. However, reading Joi’s complete post, I’m reminded that an article (or post or story) comes mid-stream in the conversation."
  • Outgrowing the Grownup (Moore’s Lore) – How Eric Schmidt might be screwing up Google.
  • Google Balances Privacy, Reach (CNET via Moore’s Lore) –  Is Google a threat to your privacy?
  • The War on Truth (A-Clue.com) – An opinion piece about the "war on truth" currently being waged by conservatives in American politics.
  • The Drawdown Lowdown (Reason Express) –  Possible scenarios for US troop reductions in Iraq.
  • The London Flypaper (Reason Express) – "Standard pro-war flypaper doctrine has all the young Muslims
    flocking to Iraq to die for Allah, not staying home and trying to blow stuff up.
    Pointing this out does not mean claiming that George Bush is to blame for the London bombing of 7/21 or 7/7,
    the straw man that Bush supporters love to toss up."
  • Up in Smoke (New York TImes Magazine) – The Freakonomics guys look at what happened to crack cocaine.
  • Ostentatious Obscurity (Reveries.com) – Owners publicize their restaurant by making it a secret; unlisted phone number, no signs, hostess that denies its existence.  Only in New York.
  • Rules of Success-The Path of Least Resistance (Blog Maverick) – Mark Cuban says that the secret to success is providing the path of least resistance, or in other words make things as easy as possible for customers, not yourself.