Monday, September 30, 2013

When Technology Gets in the Way: The Danger of Making Tech the Ends Instead of the Means

Once upon I time I was a U.S. Army Intelligence Officer in Iraq.  In Iraq my little intelligence organization had its piece of a $2.7 billion analysis system called DCGS-A.  DCGS-A was intended to be a complete solution for intelligence in the Army, allowing analysts to bring in data from a variety of sources, aggregate the data, make predictions, and create products for dissemination all with a single tool.  The problem with DCGS-A was that DCGS-A did not work.  Besides being incredibly complex to set up and use, crashing frequently, not effectively talking to other Army systems, none of the pieces of DCGS-A worked nearly as well as existing tools used across many other agencies. Instead of using DCGS-A, my analysts used a collection of off-the-shelf tools and web-based databases that did the job better, maintained interoperability with the rest of the intelligence community, and cost far less than DCGS.

The Army’s response to widespread criticism?  In short, double-down on DCGS-A, train all intelligence Soldiers from basic training on to use only DCGS-A, and cease renewing licenses to other tools.  The result is a system that sort of works when properly configured and coddled.  Set up and operation require a full-time contractor to be present; uniformed personnel are not even allowed access to certain administrative settings.  This level of complexity violates a fundamental principal of warfare: simplicity.  Military Intelligence organizations still spend weeks trying to get the technology up and running to support an exercise or mission.  The last piece of equipment you want in an austere and dangerous environment is a fickle computer system that no one can configure except for an out-of-shape unarmed civilian with travel restrictions. 

My IT strategy lesson?  Beware of the trap of seeking out technology for technology’s sake.  If you’ve already make the connection to Zara, you think faster than I do.  I’m sure several very important people saw a pretty slideshow about all the nice things DCGS-A would do for them and their Soldiers.  Unfortunately there was no lobby for all of the more elegant and effective solutions already in use by people more interested in accomplishing a mission than having the newest toy.

Please consider the old lesson of function over form when making IT decisions as you go out to be leaders in this great tech world.  Avoid buying tech that looks pretty and sounds cool but does the job worse.  Tools should be simple, easy to use, and—ideally—cheap.  Locking a team into an ecosystem works great until they have to share with the team in the office next door, which is locked into a different ecosystem.  Stick to the fundamentals.  Systems need to be interoperable, and teams need to be able to share information and communicate.  Team members should not spend more time getting technology to work than they spend doing their jobs.  If new technology offers less functionality or makes it harder to do your job, get rid of it. 


Disclaimer: this work represents the opinion of the author and not that of the U.S. Army, Boston University, IS714 Table 2, or the guy named Phil who isn’t surveilling you on your commute.

PayPal's Advantage in Mobile Payments

In line with our class conversation today, Forbes recently published an article discussing PayPal and the future of mobile payments. My opinion is that the competitors in this race are all providing a software solution for a hardware problem. Amazon, PayPal, Google, Apple, etc. all have the infrastructure and software know-how to implement a mobile payment system. The key to adoption is going to depend on the physical actions a customer has to take at a check out counter.

Paying in a brick and mortar store via your mobile device has to be both easier than a credit card and at least as secure. The hardware technology that mobile payment competitors seem to be jumping on is called Near Field Communications (NFC). The Forbes article describes a view point I agree with, "If I have to reach into my pocket for something when I’m checking out, why do I care if it’s a credit card or my phone.  It’s still effort on my part."

Apart from having to take out your phone and wave it in front of some sensor, there are still the security and authentication issues. This is where PayPal steps in with Beacon. Communicating via Bluetooth, the customer never has to take their phone out of their pocket. As a security option, customers can choose to enter their personalized pin-code to complete the transaction.

PayPal is not only already positioned well infrastructure-wise to dominate this market, they now have the technology (in hardware form) to do it. They will need to capitalize on mobile payments for ecommerce with in-app software technology to round out their offerings, but dominance in physical mobile payments would help with digital mobile payment adoption.

Sunday, September 29, 2013

Table 3: Amazon's web services are major competitive threat to cloud providers such as EMC, VMWare, and Google

Amazon’s web services (AWS) are a major competitive threat to cloud providers.  AWS already has a dominant role in the arena of cloud services.   According to Gartner, “AWS has more than five times the compute capacity of its next 14 rivals combined.”  AWS offers a cheap and scalable infrastructure which is easily accessible and useable from small scale user to the largest corporations.  As confidence in the cloud increases, AWS is well positioned to capture a larger portion of corporation’s IT budgets as they transition from capital intensive physical infrastructure to cloud based services.  According to a Morgan Stanley report over the next five years, 3 percent to 17 percent of IT spending could be transferred to cloud-based service. 

AWS is currently positioned in the bottom two layers of the services stack, offering Platform as a Service and Infrastructure as a Service.  AWS’s place in the stack positions them to challenge traditional enterprise service providers such as EMS and VMWare.  The transition to the cloud will eat into the business model of storage companies such as EMC that rely on large IT expenditures as companies scale their IT infrastructure. AWS’s  DynamoDB and Redshift data warehouse, on top of the basic infrastructure, will also challenge virtualization and database companies.  AWS’s pay-as-you-go business model allows enterprise clients to fluctuate there IT spending according to business needs and business cycles. 


Due to AWS’s position as the largest player in cloud storage and their positioning in the services stack, they are ideally position to move into the “Software as a Service” layer.  A move into this layer in the service stack will allow them to capture more individual end users and small business.  A move into this layer of the stack would challenge established services such as Google AppEngine and Microsoft Office 365.  Moving forward, if Amazon decides to move into the top layer of the services stack and begins to target the end user, AWS’s structure of raw storage, organization, and compute layer will allow users to tailor the services to the specific business needs of the organization.  AWS’s pay-as-you-go model also provides an advantage over the subscription based service offered by Google and Microsoft.  If AWS made the move into SaaS they could market themselves as an One-Stop-Shop cloud platform.

Threadflip- future threat for EBAY?



threadflip.jpeg 
Threadflip is a relatively new San Francisco-based resale market place for women's clothes. 

Where does it differ from other resale market places such as EBAY: the level of service.

1- Threadflip is tailoring each experience based on unique personalities and tastes. 
2- Site feels more human and personal- uses facebook profile to create a different relationship between buyer/seller
3- Provides and end-to-end shipping solution for sellers that don't want to go to the post office
4-"white glove service" for sellers who want to be less involved (they do the photographing, listing and shipping for you)
5- A format that enhances browsing, resulting in shopping for things the customer didn't know they wanted
6- Making blogging part of the experience for those who want it


This small business is growing like crazy leveraging on their amazing conversion rates of sellers becoming buyers and buyers becoming repeat-buyers. 

"Threadflip is at the intersection of a couple major trends happening in the technology world right now. It is part of the “sharing economy,” where people can make money from their underutilized assets and/or time. With this sector, fashion “re-commerce” has taken off as sites like Threadflip, Poshmark, and TheRealReal make it easier (and more fun) to sell used clothing online. This latest update also speaks to a shift toward “social e-commerce,” where your friends and personal preferences are factored into the online shopping experience. Looking for clothing online isn’t just about search anymore. Advancements in social networking and “big data” mean that we can be presented with things we are liable to like, rather than proactively seeking them out."

It is clear that this social-based commerce is going to become the norm. How will this revolutionize the retail stack? How will Threadflip influence the business models of other resale markets like EBAY?

Thoughts?


Owning the stack through partnerships: Virgin HealthMiles teams up with Fitbit

In a mutually beneficial move, Virgin HealthMiles announced its partnership with device manufacturer, Fitbit, giving HealthMiles users the ability to instantly upload their activity and health data to Sir Richard Branson's health engagement platform. Fitbit joins the ranks of app developers and device manufacturers who are integrated with HealthMiles, including MyFitnessPal and Polar.

Virgin HealthMiles provides employee health programs that helps members increase their daily activity and offers cash rewards of up to $500 per year. With a "device agnostic" approach to its platform, it can own more of the IT stack by allowing its members to use whichever device they already own or like the most.

The strategic win for both HealthMiles and FitBit is clear: greater market exposure and brand recognition for both companies, leading to greater trust and, as they both hope, greater adoption. 

Saturday, September 28, 2013

Is radical Mobile Innovation over ?!


The impending demise of Blackberry and the apparently lackluster upgrade of the iPhone is raising new questions about Mobile Innovation. Sure, there will be more and more speed, memory and features added in the next few years (see PwC's mobile innovations forecast here) , but is mobile innovation, that led to a product like the iPhone, dead?

There is a paradox in experiencing a device such as the new iPhone - a radical departure not just in computing but ultimately in the conduct of daily life that didn't even exist a decade ago - and finding it boring, even while understanding what an incredible feat of human ingenuity it represents. 

Are smartphones going the PC way? Instead of going for the next giant leap in mobile technology, are companies more happy to focus on increasing features and looks?

What do you think? Will the next decade see the existing mobile revolution disrupt other industries but see no spectacular innovation on mobile technology itself? Have we reached a point of stagnation in radical mobile innovation?


Also see:

Blackberry never had a chance
Mobile innovation drying up?
Design innovation in mobile gone?
Smartphone innovation is dead

StumbleUpon's Mobile Ad Breakthrough

A critical part of Facebook's platform strategy is effective mobile advertising.  Their recently re-introduced mobile app install ads, which appear in a user’s news feed, include the name of the app, an image, a short description and an “Install Now” button that directs consumers to the app’s page in Google Play or Apple’s App Store.  In terms of conversion rates, the click-to-install rate from these ads can be up to 10 times higher on average than a standard banner ad, while cost-per-install might also be 20% to 30% cheaper.

Because effective mobile advertising is so critical for businesses, I wanted to share another recently discussed success story.  Stumble Upon is a form of a search engine that finds and recommends web content to its users. Its features allow users to discover and rate Web pages, photos, and videos that are personalized to their tastes and interests using peer-sourcing and social networking. In recent years, it's user base has fallen by 50% to 3.3 million/month.  Now it is seeing a jump in revenue due to mobile advertising.  Their 'Stumble button,' which provides readers with new stories or websites that resemble those they’ve suggested to other users, is a natural fit on mobile, enabling users to easily browse without a keyboard. 




Stumble Upon and it's advertisers recognize that on mobile, banner ads are not as effective as ads that are more deeply integrated into the user experience.  When users click the Stumble button, they have a 5% chance of being redirected to an advertisement, either a video clip or an ad in the form of a website or game.  Each of these destinations are intended to be more interactive than a conventional display ad.  Users can also vote on these ads. A particularly successful ad on Stumble Upon was Red Bull’s short video of skydiver Felix Baumgartner jumping from a helium balloon in Earth’s stratosphere last year.  This success can mean big bucks for Stumble Upon, as they charge around $75,000 for a few days of mobile promotions.

As business like Facebook and Stumble continue to seek ways to generate revenue from their mobile user base, I am curious what other successful tools and strategies you know about.

Jeff Bezos Quotes: What's not going to change?

Amazon's success is commonly attributed to the founder and CEO Jeff Bezos, who is well known for his unique business leadership. He is also quite quotable. I found it very interesting to read some of his quotes, understanding what he thinks and does differently.

One of my personal favorites:
"I very frequently get the question: 'What's going to change in the next 10 years?' And that is a very interesting question; it's a very common one. I almost never get the question: 'What's not going to change in the next 10 years?' And I submit to you that that second question is actually the more important of the two -- because you can build a business strategy around the things that are stable in time. ... [I]n our retail business, we know that customers want low prices, and I know that's going to be true 10 years from now. They want fast delivery; they want vast selection. It's impossible to imagine a future 10 years from now where a customer comes up and says, 'Jeff I love Amazon; I just wish the prices were a little higher,' [or] 'I love Amazon; I just wish you'd deliver a little more slowly.' Impossible. And so the effort we put into those things, spinning those things up, we know the energy we put into it today will still be paying off dividends for our customers 10 years from now. When you have something that you know is true, even over the long term, you can afford to put a lot of energy into it."

This is, I believe, a very useful perspective for strategic planning. As we discuss IT strategy and transformation through digital technology, it will be really helpful to think this way as well.
What are other things that you think will not change for Amazon? What about your industry?

Google versus Facebook: Some Statistics


This infograph from Mashable could provide a good backdrop for our discussions about Google versus Facebook.

Thursday, September 26, 2013

How should Google maintain its browser-based advantage?

One of the themes in yesterday's discussion was how Google's dominance in the browser-layer is key to its monetization strategy.  I like someone in the class with some deep technical expertise to develop a coherent argument to go deeper into this theme.  Google's Eric Schmidt initially was reluctant for Google to commit to this project.  In a 2009 WSJ article, Larry Page described "the Chrome operating system as a kind of anti-operating system — one that is basically indistinguishable from a browser. Netbooks loaded with Chrome will boot up almost instantaneously and will store data on the Internet instead of a hard drive.
....I wanted the operating system to kind of be out of the way.”
--
There are good technical descriptions of what makes Google Chrome different. Here's one for example. There's even a comic book version.  We know that the first browser war between Microsoft (IE) and Netscape (Navigator) was 'won' by Microsoft.  Now, the browser war is between Microsoft (IE) and Google (Chrome) but the shape and scope of browser is different.  It's a gateway to knowing the user (privacy), providing relevant advertisements (monetization) as well as creating the foundation for the future logic of interactions between individuals and companies. 
--
Any takers to develop more detailed connection between the technical architecture and business logic of monetization on the morphing of browser/OS layers? 

Wednesday, September 25, 2013

Amazon's New Fire HDX--Mayday and Video Downloads

I was reading about Amazon's new Fire HDX and in particular the mayday feature today--Jeff Bezos calls it a "Wow" feature. It connects users of the new Fire HDX tablet to a live tech support rep via video chat within 15 seconds (that's the goal anyway). The rep has access to the tablet and can remotely draw directions onto the screen helping users with any technical need they might have 24/7. In terms of customer service, especially for a tablet, this is a big departure from more traditional delivery methods: calls, chats even Apple's genius bar.



An article in Slate made a good point about how much having an army of live reps to support the Kindle Fire HDX would cost. And the Kindle Fire HDX is relatively inexpensive, probably being sold close to cost. Revenues though can be driven by users locked in to the Kindle Fire HDX, who with the help of friendly tech support, can now more easily download content and shop online--a strategy much like Google's--give away the device/platform and make your money from users in another way.

The new tablet is interesting also because it seems to correspond with more investment in content (Amazon's developing its own programming) and Prime. The fire HDX will let you download content from Prime, Amazon's streaming video service--it will be interesting to see how Netflix might respond.

Amazon: Packed in the Stack

How Jeff Bezos Made Amazon Everyone's Everything All of the Time

"There are some things that you can only do," Bezos said at one point, "Or only do really well, if you get to play in the entire stack, including all the way down to the hardware and the operating system." 

Right from the horse's mouth, Jeff Bezos mentions Amazon's strategy for the stack: domination. In the article, Bezos details Amazon's current products and service in the stack, including its new virtual tech support feature, Mayday, which has just been introduced in its recently debuted Kindle Fire HDX. And as a treat for us MS-MBA students, he shares what he views as the company's greatest opportunity in the stack (spoilers: it's software). 

This is a great precursor to our discussion about Amazon and eBay next week (sadly, I'm not on one of the Amazon teams). Considering Bezos' emphasis on the customer and a mantra of "Premium products for non-premium pricing", you can begin to see how being in all layers of the stack really pays off. 


What Users Say Vs. What They Do

Patrick's comment in class got me thinking about Google v. Facebook as far as tracking what users say and do. His point was that Google knows what you've already done (purchases, searches, driving directions) while Facebook knows what you say (feelings, perceptions, topics of interest) which likely influences what you might do in the future. 

How will each of these data channels converge in the future? To Venkat's point on P&G's marketing re-organization - bridging that 'engagement gap' between customer values and behaviors will be vital for firms of the future. What does everyone else think?

Tuesday, September 24, 2013

Stores Continue to Stalk

While this article isn’t describing anything new, I find the way in which stores are using technology (even mobile technology) to gather data about shoppers… “interesting.” In looking at Meeker’s 2013 trends, we’ve seen how mobile commerce is the new medium for shopping and that retailers are looking for ways to take advantage of this medium to make more money.

This article talks about how companies such as Nordstrom (the company that is the center of my project) are used mobile technology to further advance their merchandising strategies.

Thanks to an experiment with Euclid, Nordstrom used your wifi signals, in combination with video surveillance, to track your movements in store. The idea was to count how many people have walked by the store, how many people have entered the store, those shoppers’ movements within a certain location of a store and other metrics such as how long a shopper looked at a product before buying it.

Is this a huge problem to anyone?

I personally don’t mind it. I’m a sucker for Amazon recommendations. It may come off predatory to some, but to me, this experiment is intended to be able to provide those very same recommendations in store. If the data from this initiative helps Nordstrom outfit their stores better, deliver real-time sales to me personally, put the products I care about in front of me, then who am I to complain? This technology (unlike some of the others described in this article) doesn’t seem particularly intrusive to me but, more importantly (and for the sake of this class), it is something that I think can be wildly implemented across other industries.


I know very little about hospital operations and patient tracking. But I imagine a similar technology could be applied to beds to track patients as they move around units within a hospital. Wait times would decrease, patient throughput would be accelerated and improvements could be made in facility design. Sure, some patient data may/may not have to be released in order for this to help but the overall improvement is helpful.

Or, cities could monitor your commute to figure out where potholes or other opportunities for road improvements are located. Instead of deploying people to "look" for potholes, this would be real-time alerts to the city, allowing them to make more informed decisions. Again, this becomes a potential debate on privacy, but the overall gain is valuable.

In the end, I suppose many people disagree: Nordstrom quit using the technology in part because shoppers said the company crossed the line. 

Blackberry: Becoming Irrelevant Just as the World is Getting Digital?

BlackBerry recently signed a letter of intent from a group led by Fairfax Financial Holdings  to pay shareholders $9 a share in cash (with the usual caveats) --essentially taking the company private.  This is happening at a time when mobile devices are more prevalent and likely to be more important and influential in our lives.  The initial indications are that the future is not anchored around consumer devices and services but the company seems to be wanting to focus on enterprises using its secure networks as the basis for differentiation. 
Reversal of Fortunes 

The final price of less than $5 billion should be seen in relation to the market value it enjoyed in 2008--$80 plus billion.  Is this case similar to Kodak--which invented the digital camera but did not see the rapid shift? Is it similar to Nokia--which was the undisputed leader in the feature phones. Did it just miss the smart phone shift? is it as simple as that? or something deeper and more fundamental about the digital transformation underway? 

Did Nokia management engineer their transformation with Microsoft better than Blackberry's management?  More importantly, why did companies such as Samsung or HTC or others not want Blackberry?   Could Facebook have leveraged the technology? or eBay? or Amazon? 

Worth thinking about. 

Venkat

Monday, September 23, 2013

Microsoft betting big on touchscreen laptops

Although touchscreens have played a key role in the success of smartphones and tablets, they have yet to successfully catch on in more traditional computers – namely desktops and laptops.  This is due in large part to the view that users would quickly become fatigued from holding their arm up to use a vertically-mounted touchscreen (as opposed to a mobile touchscreen that can be held horizontally) – the so-called “gorilla arm” issue, which Steve Jobs frequently cited in his opposition to including touchscreens in MacBooks. 


Unlike Apple, Microsoft has decided to invest heavily in making touchscreens the standard in new laptop PCs.  To start this transition, Microsoft has entered into a partnership with Intel to require all new fourth-generation Ultrabooks to have touchscreens.  This move is clearly intended to boost sales for Windows 8, which was designed with touchscreen interactions in mind, but has fallen far short of initial sales projections.

If Microsoft is correct and touchscreen laptops become the norm, this could represent one of the few times that the company has been right when Apple was wrong about predicting consumer habits and preferences.  However, the alternatives to traditional touchscreen interfaces for computers are becoming more numerous: for example, the Leap Motion uses a Minority Report-style input, which could effectively be used to interact with both laptop screens and larger monitors that may not be within easy reach.  With this kind of next-generation technology already being built into laptops, is Microsoft making the right choice by forcing the implementation of current-generation touchscreens?



 

Sunday, September 22, 2013

Apple's Next Decade: Businessweek Interview with Tim Cook

Yesterday I upgraded my phone and iPad to the new ios 7. As a user, I was pleasantly surprised by the brand-new interface design: the font,the color, the ways the icons of the apps come out when you touch on it, all new experience. I also experience a faster response whenever I touch the screen. Some may say that these are not innovations but as a customer I love these subtle changes Apple make in design.

This interview with Tim Cook by Businessweek helps us to understand Apple's strategy in the smartphone and pad markets and how Apple differentiate themselves from other competitors:


"So I think in most markets in consumer electronics, there’s always a large junk part of the market. We’re not in the junk business. We don’t want to make something for that. What we want to do is make a really great product and provide a great experience. And I’m sure we’ll get enough customers that want to buy that. We want to please them."

It is also very interesting to hear Tim's opinion on the iOS and Android system. The comment on the fragmentation of Android as a reason for him not to worry about the market share of iOS makes sense at least for me. 


This is the link to the original article:

http://www.businessweek.com/articles/2013-09-20/apple-ceo-tim-cooks-complete-interview-with-bloomberg-businessweek

Smart Teeth

We have discussed different technology trends in class including wearables like Google Glass. It appears that one step beyond wearables is technology that is actually a part of your body. As nanotechnology advances, products will expand beyond simple biological sensors to things like "smart teeth."

teeth.jpg

Smart teeth can "differentiate between chewing, speaking, coughing, and smoking 94 percent of the time." You can imagine the information that various sensors could provide to dentists and doctors. Living up to the male stereotype, I hate going to the doctor, I often think it is a waste of time. I tend to 'tough it out' or self-medicate unless I have a lingering illness or serious injury. If there were sensors that I could swallow or implant in my body that would track my health, I would be an early adopter.

Initial applications will be collecting supplementary data for doctors, but I am looking forward to the day where something can instantly and correctly diagnose any disease, virus, or infection. Automation of the knowledge worker is a current hot topic... imagine automation of physicians. Sensors could instantly diagnose and prescribe treatment. Robotics are already being experimented with in surgeries.

I'm curious if any of you think more advance versions of products like smart teeth will catch on and how many of you would be willing to put proven sensors in your own body. (Admittedly decades away).

Steve Ballmer's Biggest Regret: Missing the Phone

For anyone that had doubts about Microsoft's "Best decade" being behind them, here is a blunt quote from CEO Steve Ballmer:
“If there’s one thing I guess you would say I regret, I regret that there was a period in the early 2000s when we were so focused on what we had to do around Windows that we weren’t able to redeploy talent to the new device called the phone. That is the thing I regret the most. The time we missed is the time we were working on what became [Windows] Vista and I wish we had resources slightly differently [deployed]. It would have been better for Windows.”
Best part: we didn't work on a phone because we were too busy developing Vista.
#fail



Saturday, September 21, 2013

Amazon’s Instant Video App Adds AirPlay Support For Streaming To Apple TV

Yes, it finally happened. You can now watch Amazon Instant Videos on your Apple TV through the Amazon Instant Video app on your iPad, iPhone, iPod, etc. Although the article doesn't elaborate much more on this statement, it does bring up the issue of 1st-party vs. 3rd-party offerings, which we'll discuss soon in class.

The Apple TV allows consumers to easily play iTunes content on their TV's, adding another incentive to purchase media from iTunes. Amazon, although not as robust as iTunes currently, still offers an impressive digital library of movies, TV shows, books, music, audio books, media subscription services (through Prime) and most recently, original content. Now that Instant Video is AirPlay compatible with the Apple TV, it is only a matter of time before it becomes an Apple TV app, similar to what happened with HBO Go. But will market dominance change now that Instant Video is AirPlay compatible?

Most likely not. iTunes is still the leader in music sales and TV show and movie downloads. And let's not forget its behemoth app store. By opening up Instant Video to AirPlay, Apple TV is giving consumers even fewer incentives to buy other streaming boxes, like Roku or Tivo, further solidifying Apple TV's surprising market dominance. Apple TV's weakness has arguably been its narrow content access, but opening up the Amazon library and its Prime streaming service to AirPlay silence most of these critics.

Personally, Amazon is my pick for digital content because I'm locked into their networking effect. I'm a Prime member and rely on Amazon for most of my shopping. It's quite convenient to make and track purchases, both digital and physical, in one place. Plus, the digital streaming service included in my membership is a great alternative to Netflix, a service that Apple doesn't proprietarily offer.

With the last Apple device I own being open to Amazon Instant Video, I really have very little incentive to buy anything apart from apps from iTunes. However, most consumers will still purchase content through iTunes because it is what they are used to. Apple is just affirming their place in the emerging "TV layer" of the stack, most likely in preparation for the highly speculated iTV which will no longer be just a hobby.

What do you guys think? Good move or bad move by Apple to allow Amazon Instant Video to AirPlay to Apple TV?

http://techcrunch.com/2013/09/17/amazons-instant-video-app-adds-airplay-support-for-streaming-to-apple-tv/



Friday, September 20, 2013

Dell 2.0: Advising Michael Dell on its Reinvention.

It is now official. Dell has been taken private led by Michael Dell, who said that: "taking the PC maker private will unleash the creativity and confidence of the company he founded in his college dorm room in 1984, as it seeks to reinvent itself and focuses on business software and services." In saying so, he has stated that the focus of reinvention will be on business software and services. Not on new hardware or the business model of creating hardware that propelled Dell to be a PC leader in the 1990s (as a dominant reseller of Wintel architecture).  The future of Dell appears to collide directly against IBM, HP, Accenture, Infosys and other business consultancy companies that are rooted in technology services. 

We will discuss IBM soon in the class. In the meanwhile, it is worth thinking about how Dell can truly reinvent itself in the business services marketplace.  Please feel free to provide your responses. What advice would you give Dell? Pick one advice and support it.  

Thursday, September 19, 2013

The "Showrooming" Phenomenon


The trend towards mobile is evident in brick-and-mortar stores around the world. Customers are displaying their mobile tendencies right under the noses of retailers. Showrooming is a consumer mobile trend where they are physically inside a store and using their mobile devices to look for better prices and deals at other locations. For brick-and-mortar stores, this is a huge challenge. Here is an example from a retailer in Australia who didn't face this challenge with the consumer in mind.


Charging customers for window-shopping in the store is not the best way to build customer loyalty. Some popular retailers are employing the Price Match Guarantee to keep customers from straying. The following blog discusses other solutions to battle 'showrooming' but to be honest they didn't impress me (Showroom Solutions). One of their solutions is to simply make sure you have an online presence and the other is to improve the customer experience. I thought this group of MS-MBA's could come up with some better, technology driven solutions. Retailers could be extremely upfront and provide the price comparisons either on their own website, mobile app or in-store (think Progressive car insurance). Retailers could also race to provide the best customer experience by using customer data to personalize the shopping experience. What other insights can retailers provide to differentiate and avoid showrooming? 

Microsoft's 2020 Strategy: What about Bing and Xbox?!

http://www.ign.com/articles/2013/09/18/hundreds-of-tv-show-ideas-being-considered-by-microsoft

I liked the framework and approach that the Microsoft 2020 group used today. However, I think they missed an important metric, growth. They chose the three largest division of Microsoft and merged them together for a cohesive, enterprise-centric, strategy. However, the two divisions that they neglected are perhaps the two fastest growing segments at Microsoft (Bing/Bing Ads and Xbox/Windows Phone). As Professor Venkatraman mentioned, a financial picture of Microsoft in 2020 would have helped us visualize the growth in each of these divisions.

DISCLAIMER: I am an avid gamer and Xbox fan. Suggesting that Microsoft's gaming division is on the decline would be a rejection of my life's work. Therefore, I may be biased.

To support my hypothesis that Microsoft's Xbox division will see significant growth in the next 7 years, this article demonstrates that the next generation of the Xbox (Xbox One) will be much more than just a video game console. In addition to the already strong Xbox platform (integration with Netflix, HBO, ESPN, Skype), Microsoft has plans to add original TV programming to the Xbox One, circumventing traditional cable providers. The Xbox One stands to become a multi-functional media box in your living room, which I believe will lead to significant growth in the coming decade for Microsoft's console division.

Wednesday, September 18, 2013

Apple 2.0 must innovate with IP management

Check out some of the many Apple Patents at PatentlyApple - as mentioned in class, Apple is positioning themselves well to ramp up in the IP management business. I'd argue that the future of innovation at Apple is what they do with their IP - they will innovate by becoming more open.

This is an image of a recent patent they were granted. 
http://www.patentlyapple.com/.a/6a0120a5580826970c019aff73416e970c-pi

My internship this summer made me realize that IP, specifically patents, is a vital part of any innovation strategy. How many patents you have, who you license or sell them to, and how you drive that process all play into your innovation 'style'. Also important is what patents you bring in from the outside. Traditionally, Apple designs in house and they protect IP like their first-born child - they're VERY closed.

Here's a way to look at open vs. closed
http://johnkapeleris.com/blog/wp-content/uploads/2010/08/Closed-vs-Open-Innovation.jpg

This open vs. closed innovation spectrum will play a big role for Apple 2.0. IBM has led the pack for 20 years in granted patents, but also in revenue generated from Patent licensing. Notice Samsung, Microsoft, and Sony on this list - where's Apple? I've been looking for patent revenue data but have yet to find a good source.






http://go.bloomberg.com/market-now/files/2013/01/Patent-chart.png

Google Glass used as an educational tool for medical students in India

A doctor in Chennai performed a surgery and live-streamed it to medical students two blocks away using Google Glass. This way the students could see the procedure through their professor's eyes, quite literally. This is another example of how technology impacts fields like healthcare and education in developing nations such as India. The original article is here:  http://timesofindia.indiatimes.com/tech/personal-tech/gadgets-special/In-a-first-Chennai-doctor-uses-Google-Glass-to-air-operation-live/articleshow/22671453.cms

Why you should look at Google and not Facebook as a model to stay ahead

Rocket Ship vs. Time bomb
A view point on why setting the company culture from the very beginning of the venture can be important. This article compares Google and Facebook strategies to sustain in the market, and highlights that Google's breakthrough innovation culture is a better model than Facebook's incremental innovation culture.

Excerpt:
"Maybe Facebook will continue to jazz up its Timeline and improve its search capabilities. It will, for sure, buy or copy more hot products such as Instagram,Pintrest, and Foursquare. But it won't develop any earth shattering technologies because it doesn't do Google-style "moonshots"—it just doesn't have the culture and DNA. It is still the social network that the kid in the dormroom built. - Read Full Article

Takeaways:
  • Continuous breakthrough innovation as an important strategy
  • Developing the right corporate culture should be a big consideration from the start of the venture
  • Does building "Goodwill" let business get away with doing what its wants?

Tuesday, September 17, 2013

What if Apple and Google Actually Went to War?

A highly entertaining account of what would happen if Google and Apple actually got into a real war with each other.
Scenarios are based on actual stats about both companies, so its a good follow up to our last class, and shows just how large and powerful these tech companies have become in a short time.

Who do YOU think would win?














Check it out here, you can read it or listen to it.
http://www.slate.com/articles/technology/low_concept/features/2013/wargames/what_if_google_and_apple_went_to_war_in_real_life.html

Microsoft desperately trying to improve search experience through bing to compete with Google

We discussed in the previous class that Microsoft which was a leading innovator in the 90s has lost it's edge. It has failed in every arena it has entered since 2000. Be it search, social networking or cloud companies like Google, Facebook, Amazon have taken substantial lead and Microsoft has been trying to catch up ever since. This is another attempt by Microsoft to gain some market share in the search engine market. It will not only improve the look and feel of Bing but also add more search features. In my opinion Google is so dominant in this market that this looks an attempt which does not make sense. Microsoft instead should look at other market opportunities like phone or cloud where it has better chances. The full article is here:
http://www.techradar.com/news/internet/web/bing-com-joins-one-microsoft-fold-with-new-look-search-experience-1181806

Amazon proves vinyl isn't dead with record sales up 745%

Contrary to McKinsey Quarterly's advocated trend of buying and selling as digital commerce leaps ahead, Amazon sales of vinyl records have been increasing since 2008. One can make the argument, though, that it's Amazon's bundling of digital downloads of mp3's with vinyl records that have muddied the trend.


Personally, I think diehard fans of vinyl will continue to buy vinyl. Amazon just added value to that classic offering against other retailers by including the free digital download. What do you think?

http://www.techradar.com/news/audio/amazon-proves-vinyl-isn-t-dead-with-sales-up-745--1181568

Chili's to Install Tabletop Computer Screens

Here is another example of digital technologies changing the way business interact with customers.

I think having tabletop computers in restaurants is an inevitable reality. Nobody likes it when your server either takes too long to attend you after being seated or messes up your order.  Installing these systems would not only improve the customer experience but also the business's profitability.

Despite Chili's saying that they are not doing this to cut labor, restaurants are facing higher employee costs (e.g. Obamacare). Therefore the opportunity to reduce overhead, specially in these mid to low end restaurants that attract customers based on relatively quick and cheap meal, might be too good to pass up.

The full article is here:

http://online.wsj.com/article/SB10001424127887323342404579077453886739272.html?mod=WSJ_Tech_LEFTTopNews

Monday, September 16, 2013

Tablet sales is about to outperform PC by year end

In slide 45 of KPCB Internet Trends, we see the tablets shipments surpassed the PCs in quarter 4 2012, a robust growth gained within 3 years since its take-off. A recent USA article quoted research from IDC that the shipment of tablets is about to surpass PC by the end of this year, indicating that the growing trend of tablet adoption is steady and worth the attention of business to think seriously strategies on utilizing tablets for technical innovation. For example, for educational technology companies, focusing more on how interactive design elements could be implemented in e-learning platforms using both PC and tablet interface are crucial to improve customer experience. Though this may be costly in the past because of limited users confined by the costly tablets, now companies can afford to thinking more deeply how far they can go in this direction as more people are using tablets and the trend that tablet will catch with the sales of PC in the near future give them confidence to cultivate the market and take the risk.
Tablets to outsell PCs by year's end on USAToday.com: http://usat.ly/1eFNm38

Sunday, September 15, 2013

Behavioral Psychology and 'Real' Design

"Designers will be creating not products or interfaces but experiences, a million invisible transactions."

An article from Wired Magazine called "Like Magic" speaks to our class discussions about technological trends and how the consumer experience, particularly transactions, will look in the future.

This article uses Disney as a great example of companies that are heavily invested in automating the user experience. They have been spending the last four years developing wearable "MagicBands" which automates payments wherever you go in the amusement park, removing the requirement to carry cash or credit cards while you enjoy your day of magic. Of course, this type of technology benefits Disney as much as it provides a convenience for the consumer - every transaction is embedded in the experience: seamless, invisible, easy.

The article emphasizes the importance of making all user experiences 'real'. As we move forward, it won't be enough to be a developer that solves one problem, but actually "considers every nuance of our everyday activity and understands human behavior every bit as well as novelists or filmmakers." This creates a new era of product development needs: understanding the root psychology of an individual and providing solutions that match, movement by movement, the actual world in which we live.

For the full article from Wired Magazine (I highly recommend it!):

http://www.wired.com/design/2013/08/design-and-the-digital-world/

PS - If anyone wants to do a small field seminar to Disneyland to test their new wearables, I'm in.

Wearables as a Fashion Trend

With the impending release of Samsung's smart watch on September 25th and Google Glass becoming available to the general public in 2014 (I believe), I thought the wearables trend, cited in Mary Meeker 2013 report, was good to note.

Especially interesting for the wearables market is how much fashion trends will play a role in adoption. Many articles, blog posts and even an SNL skit have made it a point that wearables need to find a broader appeal than only within early-adopter techie communities.

A post in NY times Bits Blog shows that even early adopters, like a reporter for Wired, describe the glasses as "dorky." Trying to change that perception, Google Glass devices have made appearances on runways at NY fashion week and even this September in a spread in the most well-known, trend-setting magazine in fashion, Vogue--see a picture from the magazine below.


Magazines and print media in general have been so rocked by technology trends that it seems almost ironic that now this form of very traditional media might be just what high-tech wearables need in order to help make a mass-market impact.