Category: business advice

  • Old business and new tech

    Old business and new tech

    The payments war has been well and truly on as companies like Stripe, Apple and PayPal battle it out to control the next generation of currency.

    One of the more hapless bystanders in this has been the CurrentC consortium, a group of US retailers set up to take advantage of mobile technology and bypass merchant fees.

    This weekend news leaked out that some of the consortium members have disabled Near Field Communications functions in their store Point of Sale systems to prevent Apple Pay and Google Wallet from working while they wait to roll out CurrentC.

    In a deep dive review of CurrentC, Tech Crunch looks at how the service works and its limitations. One of the things that jumps out in Tech Crunch’s review is just how cumbersome the system is compared to its competitors.

    Despite being founded in 2011 and having the backing of some of America’s biggest companies, CurrentC is two, or possibly three, iterations behind other services which illustrates the problem of incumbents trying to innovate their way out of problems.

    No doubt the committee model of CurrentC hasn’t helped the development process along with the aim being addressing the consortium’s fixation with merchant fees rather than making things easier for customers.

    It’s hard not to conclude that CurrentC is doomed and the actions of retailers in blocking competitor’s products is only staving off the inevitable. When old businesses embrace new tech they have to be thinking of their customers’ problems, not theirs.

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  • On being a digital anthropologist — brian solis on technology disrupting buiness

    On being a digital anthropologist — brian solis on technology disrupting buiness

    “Technology is part of the solution, but it’s also part of the problem,” says Brian Solis, the

    Brian Solis describes himself as a digital anthropologist who looks for how businesses are being disrupted. We talk about digital darwinism, how businesses can approach change and the role of individual changemakers within organisations.

    “My primary responsibility is to study disruptive technology and its impacts on business,” says Solis. “I look at emerging technology and try to determine which one is going to become disruptive.”

    To identify what technologies are likely to disrupt businesses it’s necessary to understand the human factors, Solis believes.

    One of the problems Solis sees is the magnitude of change required within organisations and particularly the load this puts on individuals, citing the story of one pharmaceutical worker who tried to change her employer.

    “Her mistake was thinking this was a short race, she thought everyone could see the opportunity inherent in innovation and change when in fact it was a marathon. She burned herself out”

    “What that means is to bring about change you really have to dig yourself in because you’re ready to do your part. You can’t do it alone, you have to do change in small portions and win over the right people.”

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  • How smart hiring paid off for the PayPal mafia

    How smart hiring paid off for the PayPal mafia

    One of the challenges facing people who’ve started their own businesses is re-entering the broader workforce. Many managers are reluctant to hire previously self employed workers; the PayPal experience shows that attitude could be hurting working

    At the Dreamforce Conference in San Francisco yesterday three PayPal alumni, part of Silicon Valley’s infamous ‘PayPal Mafia’, discussed why the company was such a successful incubator of talent.

    “The company was composed of a bunch of young folks who were very driven,” said founder of LinkedIn and early PayPal employee, Reed Hoffman. “Once they sold the business to eBay they weren’t the type to retire.”

    Along with PayPal’s founders being driven, the company also tended to hire people who had run their own businesses but were finding the  going tough in the economy at the time; “Silicon Valley was collapsing under its own weight,” observed PayPal founder and fellow panellist Max Levchin.

    “There was a lot of running for safety in the Valley,” Levchin remembers. “We were looking for people who were into risk taking and were excited to take a risk and this would be the last company they worked for because the next one would be their own. As a result we biased the selection towards entrepreneurs.”

    Copying that hiring practice today is Stripe where co-founder John Collison told Decoding the New Economy last month that one of the keys to managing a fast growth business is to hire entrepreneurs and former self employed workers.

    “They are self starters; they don’t need much supervision,” said Collison in describing how hiring people who’ve run their own businesses makes running a business that has gone from ten to 150 employees in three years.

    it’s no coincidence that one of the investors in stripe is Peter Theil who along with Levchin founded PayPal and is probably the best known of the ‘PayPal mafia’.

    PayPal and Stripe’s experience show the folly of overlooking workers who’ve run their own businesses; in a world where business is becoming more competitive, having entrepreneurial employees is an asset too good to miss out on.

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  • Conglomerates fall out of fashion

    Conglomerates fall out of fashion

    After the announcement earlier this week that HP will split into two, now Bloomberg reports Symantec is considering splitting, this comes after the news that PayPal is being carved off eBay and that Yum foods is looking at divesting some  of its Chinese assets.

    It looks like we’re moving into a period where conglomorates are out of fashion; that’s good news for lawyers and consultants advising the companies however it will be worth watching to see what this means for customers, employees and shareholders.

    That HP is reportedly shedding 55,000 jobs says some of these conglomerates were chronically overstaffed so it might be good news for the stockholders of the split companies.

    Either way, it’s always worth remembering that conglomerates come in and out of fashion in the business world.

     

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  • Adrift in the data lake

    Adrift in the data lake

    Last week Yahoo! closed down their directory pages ending one of the defining services of the 1990s internet and showing how the internet has changed since the first dot com boom.

    The Yahoo! Directory was victim of a fundamental change in how we manage data as Google showed it wasn’t necessary to tag and label every piece of information before it could be used.

    Yahoo!’s Directory was a classic case of applying old methods to new technologies – in this case carrying out a librarian’s function of cataloguing and categorising every web page.

    One problem with that way of saving information is you need to know part of the answer before you can start searching; you need to have some idea of what category your query comes under or the name of the business or person you’re looking for.

    That pan was exploited by the Yellow Pages where licensees around the world harvested a healthy cash flow from businesses forced to list under a dozen different categories to make sure prospective customers found them.

    With the arrival of Google that way of structuring information came to an end as Sergey Brin and Larry Page’s smart algorithm showed it wasn’t necessary to pigeonhole information into highly structured databases.

    Unstructured data

    Rather than being structured, data is now becoming ‘unstructured’ and instead of employing an army of clerks to categorise information it’s now the job of computers to analyse that raw information and pick out what we need for our businesses and lives.

    As information pours into companies from increasingly diverse sources, a flood that’s becoming so great it’s being referred to as the ‘data lake’, it’s become clear the battle to structure data is lost.

    At the Splunk Conference in Las Vegas this week, the term ‘data lake’ is being used a lot as the company explains its technology for analysing business information.

    Splunk, along with services like IBM’s Watson and Tableau Software, is one the companies capitalising on businesses’ need to manage unstructured data by giving customers the tools to analyse their information without having first to shoehorn it into a database.

    “Thanks to Google we got to look at data a different way,” says Splunk’s CEO and Chairman Godfrey Sullivan. “You don’t have to know the question before you start the search.”

    Diving into the data lake

    It’s always dangerous applying simple labels to computing technologies but some terms, like ‘Cloud Computing’, don’t do a bad job of describing the principles involved and so it is with the ‘data lake’.

    Rather than a nice, orderly world where everything can be pigeonholed, we know have a fluid environment where it wouldn’t be possible to label everything even if we wanted to. A lake is a good description of the mass of data pouring into our lives.

    The web was an early example of having to manage that data lake and Google showed how it could be done. Now it’s the turn of other companies to apply the principles to business.

    Google fatally damaged both Yahoo! and the Yellow Pages, other companies that are stuck in the age of structured data are going to find the future equally dismal. Don’t drown in that data lake.

    Paul travelled to Las Vegas as a guest of Splunk

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