Business model prisoners

While most companies become prisoners of their business models, one way to deal with this is to have a strong strategy that means you know when shift to new models and products when the time is right. 

Broadstuff’s “All you need to know about Apple in 3 easy steps” suggests that the Cupertino giant may have this kind of strategic fortitude, with the consequence that financial markets get huffy because it means quarter-on-quarter performance is not the first priority. 

look at Apple over 35 years and you will see that they:

1. Are typically a very early entrant, integrating a variety of existing systems in a hitherto poorly served early adopter sector with promise, to create an easy-to-use product.

2. Use great design to create a demand for a high margin product. In recent years they have also become “cuter” at doing software as well as hardware after being caught out by the MS-DOS ecosystem

3. As that market matures, retreat to the highest profit quartile. Follow the money, not the volume.

So great has been Apple’s performance in recent years that the markets have created their own expectations bubble about performance. 

Build-to-run

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Like Alan Patrick of Broadstuff, I’m a fan of Techmeme, the technology news aggregator that tells you at a glance what the hot tech/web industry stories are. 

In a post about its slow-but-steady growth, Alan talks about get-rich-quick start ups which go for growth at almost any cost and compares them with those – like Techmeme – that take their time: 

There is also a difference in motivation between a “build-to-run” entrepreneur and a “build-to-sell” one, I liken it to the difference between an artist who creates what is true to them, vs one who creates what will sell, now. Big studios love commercial art, but there is another whole market for “indie” art, which is often highly influential over time, and it doesn’t always require starving in a garret. 

It’s not necessarily about the integrity of the business, or the users, or a “get rich slow” mentality. Techmem’s founder, Gabe Rivera, quoted on Bloomberg says: 

I don’t want to deal with the obligations attached to raising money, and I still want to be able to take a nap after lunch.

Now that’s a man who has his priorities in order… 

Lazy narratives and how to be wrong

Apple-bashing is a game a lot of people these days.

John Gruber at Daring Fireball is challenging the emerging narrative of the company’s inevitable decline after the death of Steve Jobs. 

Apple was far from perfect under Steve Jobs. But in hindsight, critics and skeptics of the company now see fit to deem his reign flawless or nearly so. Here’s a guy on Yahoo Finance telling Henry Blodget that “Steve Jobs wasn’t wrong about anything ever.”

What you want is to be (1) right more often than wrong; (2) willing to recognize when you are wrong; and (3) able and willing to correct whatever is wrong. If you expect perfection, to be right all the time, you’re going to fail on all three of those — you will be wrong sometimes, that’s just human nature; you’ll be less willing or unwilling to recognize when you’re wrong because you’ve talked yourself into expecting perfection; and you won’t fix what’s wrong because you’ll have convinced yourself you weren’t wrong in the first place. The only way to come close to being right all the time is to be willing to change your mind and recognize mistakes — it’s never going to happen that you’re right all the time in the first place.

There’s some wisdom for us all in that…

Networks Thinking: Adapting for Complexity

These are the notes, slides and suggested further reading for the lecture I’m giving today at Warwick Business School as part of its Complexity, Management & Network Thinking business module entitled Networks Thinking: Adapting for Complexity.

Introduction

Networks became a focus for me about seven years ago, as I began to look at the effect that social networks and the web were having on the industries I was working in, marketing communications and media. The more I learned about networks, the more it seemed to me that they were incredibly important in re-thinking how our business worked – the business of attracting attention, essentially – and that they were important both as the cause and context of disruption we were experiencing (and would continue to experience for some years to come).

When it came to media and marketing, channels were being replaced (displaced, disrupted) by networks as the dominant model. The implications were profound for industries that had been built on building big channels, for big audiences with big advertisements and big budgets attached.

At iCrossing, the digital agency which gave me a home and let me develop a social media and content practice, we started re-designing the whole process of brand communications, from research through to measurement, with three principles

  1. Understand your networks
  2. Be useful to your networks
  3. Be present in your networks

It became clear very quickly, that once you started to adapt your customer communications to the new reality of networks, you started to look at the rest of the business very differently and that the impact of networks, the need to adapt to the age of networks, was going to be felt throughout the organisation. Networks were disrupting the existing media and communications models so much that soon politics, commerce, culture and society as a whole would begin to feel its effects.

NewImage

Networks are a model for managing complexity

Some of the topics and themes addressed in the talk include…

  • Embracing complexity
  • Scales from individual, to team, to division to team…
  • Understand networks (& then your networks)
  • Develop organisational and personal networks literacy
  • Networks thinking: design for networks
  • Beginning to lay down principles
  • As well as understanding… your networks… principles…
  • Presence first, process second: more important to be in play and prepared…

Sources cited

Recommended reading (some already cited as sources):

Recommended blogs

 

 

 

Advice for web start-ups

Partly for a project I’m working on and partly to have another try at using the lovely Storify curation platform, I’ve pulled together this collection of my favourite links and resources about web start-ups.

Let me know what you think – and if there’s anything that should be added…


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Image: Facebook’s old office in Palo Alto…

Business in Networks: Internet World Kongress, Munich – notes and links

These are the notes and slides for my talk at Internet World Kongress & Fachmesse, given today in Munich. I believe a livestream of the talk is available on the website and there may also be an archive with slides.

This talk is about how business is being disrupted by the web and the things we can do to adapt successfully, both at the organisational and personal level.

It combines some of the elements from two talks I gave earlier in the year: the web Super Skills I discussed at TEDx Brighton and the ideas about disruption, change management and Glasnost moments I talked about at CityCamp Brighton.

Here are the key points and relevant links:

Digital marketing at the edge of business transformation

  • We’re having some fun here, but just a bit. So obviously, I am talking to a room of digital marketers, so the idea of being at the leading edge is attractive, so is the idea that they have the stuff that is required to be the leaders of their wider organsiations.
  • The point is that they are closest in some ways to the web’s disruption of business. They have the tools and the need to adapt fastest, so the insights they gain may be what business as whole needs.

Business as usual to revolution as usual

  • The context is that we are living and will be living in a time of constant change, of permanent revolution.
  • Marc Andreesen explain this particularly well – as I’ve mentioned before. The web is pure software, we can keep reinventing it.

The Everywhere Web

  • Buzzwords are the hamster wheel of digital media and thinking clearly. We spend a lot of energy getting nowhere.
  • Two or three years ago, after a talks about Twitter people were asking what’s the next big thing after Twitter?
  • Better to udnerstand the big trends and call them what they are. I think about the social web, the data deluge and the everywhere web as the big meta trends.

Networks Thinking

  • We need to level up our thinking to deal with complexity. A friend of mine studying creativity at Goldsmiths introduced me to “threshold concepts”. they are ideas you really have to grasp before you can understand a whole lot of other things.
  • Networks are one of these, perhaps the most important for our age. We think we understand networks, but we really don’t a lot of the time.
  • When you are a German learning English you realise there are “false friends”, (“falsche Freunde“) words which sound or look the same in both languages but mean different things, e.g. “Gift” in German means “poison” rather than a present.
  • We don’t grasp how magnificently, terrifyingly complex networks are. We like to draw pictures of them and then think we’ve captured their meaning, when they are more like the weather – always changing, hyper-complex. Predictable if you are smart and have a huge amount of data and training, but only to a point and only some of the time. (There’s mileage in that weather forecasting analogy – I’d like to come up with it.

Platform-ism

  • One of the traps we fall into when we are thinking about networks is “platform-ism”.
  • We see Facebook as a proxy for the web, as a our new TV channel, we see Likes or Fans or Followers on Twitter as the gauge of our success without taking the time to understand our networks.

Accidental influencers

  • Another mistake we make is to think that influence is something fairly straightforward in networks.
  • To be sure there is a celebrity effect – when someone with a huge amount of followers on Twitter plugs a charity or website it gets a lot of traffic (sometimes). But influence is not as predictable or as straightforward as we think.
  • We fall prey to what psychologists call “narrative bias” – we think we see how things work, think it is obvious after the facts. Duncan Watts’s new book will deal with this subject in some detail.
  • Duncan Watts coined the lovely phrase “accidental influencers” to describe how unpredictable influence in networks can be…
  • Talking about networks with some mathematicians last week one remarked that place, location in a network might be the thing that best predicts influence, rather than popularity.

References / further reading

And as I mentioned, for more on Superskills see my notes from my TEDx presentation and for more on Glasnost moments and LOOP take a look at the notes from my City Camp presentation

Lastly, my book Me and My Web Shadow is available from your local Amazon (in Germany it is here) and other good retailers (well ones with large inventories) :)

If you saw the talk at Internet World Kongress or on the livestream and have any questions or feedback please do let me know.

ZZ1A4C91A9.jpg


Business in Networks: Internet World Kongress, Munich – notes and links

These are the notes and slides for my talk at Internet World Kongress & Fachmesse, given today in Munich. I believe a livestream of the talk is available on the website and there may also be an archive with slides.

This talk is about how business is being disrupted by the web and the things we can do to adapt successfully, both at the organisational and personal level.

It combines some of the elements from two talks I gave earlier in the year: the web Super Skills I discussed at TEDx Brighton and the ideas about disruption, change management and Glasnost moments I talked about at CityCamp Brighton.

Here are the key points and relevant links:

Digital marketing at the edge of business transformation

  • We’re having some fun here, but just a bit. So obviously, I am talking to a room of digital marketers, so the idea of being at the leading edge is attractive, so is the idea that they have the stuff that is required to be the leaders of their wider organsiations.
  • The point is that they are closest in some ways to the web’s disruption of business. They have the tools and the need to adapt fastest, so the insights they gain may be what business as whole needs.

Business as usual to revolution as usual

  • The context is that we are living and will be living in a time of constant change, of permanent revolution.
  • Marc Andreesen explain this particularly well – as I’ve mentioned before. The web is pure software, we can keep reinventing it.

The Everywhere Web

  • Buzzwords are the hamster wheel of digital media and thinking clearly. We spend a lot of energy getting nowhere.
  • Two or three years ago, after a talks about Twitter people were asking what’s the next big thing after Twitter?
  • Better to udnerstand the big trends and call them what they are. I think about the social web, the data deluge and the everywhere web as the big meta trends.

Networks Thinking

  • We need to level up our thinking to deal with complexity. A friend of mine studying creativity at Goldsmiths introduced me to “threshold concepts”. they are ideas you really have to grasp before you can understand a whole lot of other things.
  • Networks are one of these, perhaps the most important for our age. We think we understand networks, but we really don’t a lot of the time.
  • When you are a German learning English you realise there are “false friends”, (“falsche Freunde“) words which sound or look the same in both languages but mean different things, e.g. “Gift” in German means “poison” rather than a present.
  • We don’t grasp how magnificently, terrifyingly complex networks are. We like to draw pictures of them and then think we’ve captured their meaning, when they are more like the weather – always changing, hyper-complex. Predictable if you are smart and have a huge amount of data and training, but only to a point and only some of the time. (There’s mileage in that weather forecasting analogy – I’d like to come up with it.

Platform-ism

  • One of the traps we fall into when we are thinking about networks is “platform-ism”.
  • We see Facebook as a proxy for the web, as a our new TV channel, we see Likes or Fans or Followers on Twitter as the gauge of our success without taking the time to understand our networks.

Accidental influencers

  • Another mistake we make is to think that influence is something fairly straightforward in networks.
  • To be sure there is a celebrity effect – when someone with a huge amount of followers on Twitter plugs a charity or website it gets a lot of traffic (sometimes). But influence is not as predictable or as straightforward as we think.
  • We fall prey to what psychologists call “narrative bias” – we think we see how things work, think it is obvious after the facts. Duncan Watts’s new book will deal with this subject in some detail.
  • Duncan Watts coined the lovely phrase “accidental influencers” to describe how unpredictable influence in networks can be…
  • Talking about networks with some mathematicians last week one remarked that place, location in a network might be the thing that best predicts influence, rather than popularity.

References / further reading

And as I mentioned, for more on Superskills see my notes from my TEDx presentation and for more on Glasnost moments and LOOP take a look at the notes from my City Camp presentation

Lastly, my book Me and My Web Shadow is available from your local Amazon (in Germany it is here) and other good retailers (well ones with large inventories) :)

If you saw the talk at Internet World Kongress or on the livestream and have any questions or feedback please do let me know.

ZZ1A4C91A9.jpg


Business in Networks: Internet World Kongress, Munich – notes and links

These are the notes and slides for my talk at Internet World Kongress & Fachmesse, given today in Munich. I believe a livestream of the talk is available on the website and there may also be an archive with slides.

This talk is about how business is being disrupted by the web and the things we can do to adapt successfully, both at the organisational and personal level.

It combines some of the elements from two talks I gave earlier in the year: the web Super Skills I discussed at TEDx Brighton and the ideas about disruption, change management and Glasnost moments I talked about at CityCamp Brighton.

Here are the key points and relevant links:

Digital marketing at the edge of business transformation

  • We’re having some fun here, but just a bit. So obviously, I am talking to a room of digital marketers, so the idea of being at the leading edge is attractive, so is the idea that they have the stuff that is required to be the leaders of their wider organsiations.
  • The point is that they are closest in some ways to the web’s disruption of business. They have the tools and the need to adapt fastest, so the insights they gain may be what business as whole needs.

Business as usual to revolution as usual

  • The context is that we are living and will be living in a time of constant change, of permanent revolution.
  • Marc Andreesen explain this particularly well – as I’ve mentioned before. The web is pure software, we can keep reinventing it.

The Everywhere Web

  • Buzzwords are the hamster wheel of digital media and thinking clearly. We spend a lot of energy getting nowhere.
  • Two or three years ago, after a talks about Twitter people were asking what’s the next big thing after Twitter?
  • Better to udnerstand the big trends and call them what they are. I think about the social web, the data deluge and the everywhere web as the big meta trends.

Networks Thinking

  • We need to level up our thinking to deal with complexity. A friend of mine studying creativity at Goldsmiths introduced me to “threshold concepts”. they are ideas you really have to grasp before you can understand a whole lot of other things.
  • Networks are one of these, perhaps the most important for our age. We think we understand networks, but we really don’t a lot of the time.
  • When you are a German learning English you realise there are “false friends”, (“falsche Freunde“) words which sound or look the same in both languages but mean different things, e.g. “Gift” in German means “poison” rather than a present.
  • We don’t grasp how magnificently, terrifyingly complex networks are. We like to draw pictures of them and then think we’ve captured their meaning, when they are more like the weather – always changing, hyper-complex. Predictable if you are smart and have a huge amount of data and training, but only to a point and only some of the time. (There’s mileage in that weather forecasting analogy – I’d like to come up with it.

Platform-ism

  • One of the traps we fall into when we are thinking about networks is “platform-ism”.
  • We see Facebook as a proxy for the web, as a our new TV channel, we see Likes or Fans or Followers on Twitter as the gauge of our success without taking the time to understand our networks.

Accidental influencers

  • Another mistake we make is to think that influence is something fairly straightforward in networks.
  • To be sure there is a celebrity effect – when someone with a huge amount of followers on Twitter plugs a charity or website it gets a lot of traffic (sometimes). But influence is not as predictable or as straightforward as we think.
  • We fall prey to what psychologists call “narrative bias” – we think we see how things work, think it is obvious after the facts. Duncan Watts’s new book will deal with this subject in some detail.
  • Duncan Watts coined the lovely phrase “accidental influencers” to describe how unpredictable influence in networks can be…
  • Talking about networks with some mathematicians last week one remarked that place, location in a network might be the thing that best predicts influence, rather than popularity.

References / further reading

And as I mentioned, for more on Superskills see my notes from my TEDx presentation and for more on Glasnost moments and LOOP take a look at the notes from my City Camp presentation

Lastly, my book Me and My Web Shadow is available from your local Amazon (in Germany it is here) and other good retailers (well ones with large inventories) :)

If you saw the talk at Internet World Kongress or on the livestream and have any questions or feedback please do let me know.

ZZ1A4C91A9.jpg