Author: Paul Wallbank

  • Establishing a online small business presence

    Establishing a online small business presence

    How does a small business get online quickly and cheaply? This was a topic I explored in my last book, the e-Business guide, so it was good to revisit the topic after being invited to contribute a post to the new Proquo small business exchange website.

    Proquo, a joint venture between NAB and Telstra, was launched earlier this month and offers more than two million Australian small businesses an online platform to network, trade or swap services with each other.

    The service’s name is a take on the phrase ‘quid pro quo’  – meaning ‘this for that’ – and it offers users the opportunity to swap or exchange their skills or services in addition to traditional monetary payments.

    Developed by NAB’s innovation hub, NAB Labs and Telstra’s Gurrowa Innovation Lab, the joint venture operates independently of its parents although the service will tap into both companies’ huge small business customer base and complement their existing service offerings.

    For the blog post, I give a quick overview of the basics a small business proprietor needs to keep in mind when setting up an online presence, something every organisation should have. Hopefully we’ll have the chance to expand upon this important business topic.

    This is a paid post on behalf of Nuffnang

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  • Ditching the old tech – Lessons for the iPhone from the Apple iMac

    Ditching the old tech – Lessons for the iPhone from the Apple iMac

    “I’ve been betrayed, I’ll never buy another Apple product again!” was the cry in 1998 when the company announced their new range of iMacs and portables wouldn’t support the long standing Apple Development Bus (ADB) system and floppy disks.

    At the time Apple had been in decline, only the year before Microsoft had bailed the company out with a few conditions that had deeply irritated the company’s loyal customer base.

    Many of those customers – mainly in education and graphic design – had invested deeply in ADB compatible equipment and their irritation at abandoning that investment for USB based kit was understandable.

    Today we’re seeing similar protests about the rumoured dropping headphone jacks from the upcoming Apple 7 device, customers aren’t happy about the possibility being forced from a well established standard to a less reliable and likely more expensive system.

    Unlike the computer world of 1998 today’s marketplace is very different, Apple is no longer a quirky and niche product but the most profitable of the tech industry’s giants – as Microsoft was back when Steve Jobs swallowed his pride and accepted Bill Gates’ bailout.

    However most of Apple’s profits come from one product line, the iPhone. While the iPhone is probably the only truly consistently profitable smartphone, it competes in a fiercely fought for consumer market.

    Already in China, one of the company’s most profitable markets, the iPhone’s market share is falling in the face of good quality but slightly cheaper Chinese and Korean devices.

    Should Apple push those consumers too far by shifting the iPhone to a more expensive or proprietary system then the competing Android devices may well pick up market share and dent Apple’s fat profits.

    However history shows that these hardware shifts do happen and older technologies are supplanted by more expensive, but better, inventions regardless of how much users have spent on the status quo. A century ago the automobile started replacing a millenia of investment in horse drawn technologies.

    In the case of Apple abandoning the ADB back in 1998, it was the spur to adopt the USB standard which up until then had been buggy and unwanted as Bill Gates himself had found.

    As history shows, Apple thrived after ditching the old technology despite the complaints at the time and if the company resists the temptation to lock users into a proprietary system there is no reason to think the same can’t happen again.

    Apple mouse (with ADB connector) courtesy of Wikipedia

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  • Spreading the tech industry’s footprint

    Spreading the tech industry’s footprint

    Just how broad is the US tech industry? It’s tempting to think that most of the American tech sector is concentrated in San Francisco Bay Area with some offshoots in Seattle and on the East Coast but as this New York Times piece describes, the country has a range of high-tech industry clusters.

    Like Silicon Valley itself many of those clusters exist because of other industries, research facilities or companies – Seattle being home to Boeing, Microsoft and Amazon being an example.

    Another example of how other industries have influenced the development of industry clusters is shown in the example of Philadelphia.

    I hadn’t thought have Philadelphia as having a tech sector until I spoke with Australian tech company Nuix about one of their key North American offices being in the Philadelphia suburb of Conshohocken.

    When I observed that Philadelphia wasn’t the obvious place to set up, Nuix’s managers pointed out how the city’s pharmaceutical, medical technology and telecommunications provide a deep talent pool for tech companies along with the city’s location between New York and Washington DC being an advantage as well.

    Philadelphia’s civic leaders have contributed to it with their Startup Philly program that offers services and incentives ranging from networking events through to a seed investment program.

    VeryApt CEO Ashrit Kamireddi, one of the recipients of a Startup PHL angel round, describes the pros and cons of the city investment program and points out it was the factor in setting up their business there.

    Prior to raising a $270,000 angel round led by StartUp PHL, my two cofounders and I had just graduated from our respective grad programs and had placed 3rd in Wharton’s Business Plan Competition. We could have settled our company anywhere, with New York and San Francisco being the obvious choices. For a startup, the initial round of funding is where geography is most critical. Most angels don’t want to invest outside of their backyard, which explains the natural tendency for startups to relocate where there is the most capital.

    Kamireddi’s point about capital is critical, for tech startups finding funding is probably the most important factor in where the company is based.

    Funding though isn’t the only aspect and for established companies, particularly those in the Bay Area struggling with high costs which is what the New York Times article focuses on in its example of Phoenix, Arizona.

    The spread of the US’s tech sector shows the country’s industrial depth and strength, it also shows how other factors affect the spread of technology businesses.

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  • Startups become a Sydney mayoral issue

    Startups become a Sydney mayoral issue

    There’s a mayoral election pending in Sydney and the talk of the city becoming a startup hub is becoming one of the issues.

    Over the next few days I’m hoping to interview each of the four major candidates on their policies regarding how they see Sydney competing against the likes of Singapore and Shanghai, let alone San Francisco or London.

    In 2009, I was working with the New South Wales state government on their Digital Sydney project which looked at how the state capital could become a global centre, one of the things we found was that the city had many of the attributes successful creative centres had – diversity, tolerance and access to talent.

    That project died in the face of bureaucratic ineptitude but the idea still kicks around with last week’s launch of the NSW Government’s Jobs For The Future report which, despite its opening thirty pages of buzzwords and waffle, contains some serious analysis of the state’s reliance on inward facing service industry jobs.

    Refreshingly, the NSW Government strategy looks beyond the current mania around tech startups based on the Silicon Valley venture capital model – something the Federal government’s Innovation Statement failed to do – and discusses how to encourage growth and investment in other emergent sectors both inside and outside the inner city startup communities.

    While Sydney can be an attractive place to live for the digital elite, it falls down in a number of areas with property being among the most expensive in the world, telecommunications being costly and unreliable coupled with a complacent corporate sector and a stingy investment community.

    Making the city more attractive is going to take a number of initiatives that including easing the cost of doing business, improving links between academia and industry along with tapping into Sydney’s diverse immigrant populations.

    Some of these factors are within the City of Sydney’s purview but most of them are state or Federal matters. By definition this limits what local politicians can do.

    Which doesn’t mean they shouldn’t try to do them and it’s good to see these topics have become issues in the local elections. For Sydney though, one suspects it’s going to business as usual until The Lucky Country’s luck runs out.

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  • Japan’s demographic ruins

    Japan’s demographic ruins

    As Japan’s society ages and urbanises, the effects are being seen in buildings and communities being abandoned.

    The Japan Times reports on how the nation is now becoming a magnet for urban explorers discovering what lies insides abandoned homes, hospitals, hotels and theme parks.

    Many of the abandoned tourist attractions are legacies of the 1980s economic boom that saw a massive over-investment in property plays. With a shrinking population, those facilities were always doomed but in a growing society, there would have been economic reasons for redeveloping them.

    In Japan though, those economic drivers don’t exist in much of the country as the Japan Times explains.

    “Japan is in some sense uniquely blessed as a land of ruins. Its rapidly aging population, low birth rate, urbanization and lack of immigration have left a legacy of ghost towns and more than 8 million abandoned homes, or akiya. That tally could hit 21.5 million, one-third of all residences nationwide, by 2033, according to the Nomura Research Institute.”

    Japan is the first of many nations that will face the consequences of an aging population, what they do will be a lesson to all of those who follow. Of those, China will probably the biggest experiment.

    One big lesson is property demand changes and once valuable assets don’t necessarily hold their value in the face of a societal shift.

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