Category: economy

  • the failure imperative

    Reading an Inc Magazine profile of TechCrunch founder Mike Arrington, one of the quotes that leapt out of the story was Arrington’s view on entrepreneurs and failure;

    Our main competitive advantage is that my team and I truly love entrepreneurs. They’re my rock stars. I’ve always been fascinated by entrepreneurs. I had four businesses that did not work out. TechCrunch is my first real success, and it happened by accident. If I were to write a book, it would be about what drives entrepreneurs. I meet the winners, and the losers, too. Most of them could go out and get a perfectly reasonable job as an accountant or a lawyer. Instead, they risk everything for almost certain failure. The losers are actually more interesting sometimes. You learn a ton from failure.

    “You learn a ton from failure”

    We have a habit of celebrating the winners and ignoring the ventures that didn’t work out, if we don’t outright scorn them.

    The thing is we learn from the failures — the misjudgements, bad luck and downright stupid ideas that we all have when running a business teach us about ourselves, our partners and the world around us.

    We need to be valuing those lessons as they prepare us for when we do have a success.

    The world is becoming increasingly risk adverse and the paradox there is that by avoiding failure, we ultimately reduce our chances of success.

    Similar posts:

    • No Related Posts
  • Why hung Parliaments are good for business

    Heather Ridout, the Australian Industry Group chief executive, is quoted that Independent control of Parliament will result in “instability, uncertainty and short-termism in policy development” which is an interesting view, given these are exactly the reasons voters have punished the major parties.

    Indeed Heather has seen this first hand as a member of the Henry Tax Review Panel, where the final report was hidden for six months, then the bulk of the recommendations were ignored and the few accepted were mutilated and taken out of context.

    All of this with no debate or consultation with the community in a review that would “position us to deal with the demographic, social, economic and environmental challenges of the 21st century.

    So much for the vision of the big parties.

    Leadership isn’t delivered by risk adverse, focus group obsessed political managers doing deals with big corporations and lobbyists; it’s delivered by leaders who are capable of stating their case and steering their views, visions and policies through fair and robust debate, not hiding behind well crafted communications strategies and sound bites.

    We need leadership in both business and politics to face those 21st Century challenges the Treasurer identified when he announced the Henry Tax Review.

    A hung Parliament is a once in a generation opportunity to rebuild leadership and confidence in our governments. It’s one we shouldn’t squander.

    Similar posts:

    • No Related Posts
  • Failing Fast: Google Wave’s real business lesson

    A key philosophy underlying much of Silicon Valley’s successful companies is the “fail fast” concept where a business releases a rough version of a new idea and asks the world what it thinks. Should people like the idea, it gets developed and if they don’t, it gets dropped and everybody moves on to the next brainwave.

    The “fail fast” philosophy was behind Google Wave’s dropping last week, as CEO Eric Schmidt said at the Techonomy Conference on the day it was announced; “….we release it and see what happens. It works, you announce product, you ship it…”

    Until recently, “failing fast” was restricted to hot shot Internet businesses but as the cost of product development falls due to better collaboration tools, testing methods and global outsourcing, it’s become easier for all businesses to experiment without risking an organisation’s future.

    This is very different from the old style of doing business, a good example of how things used to work was Boeing’s development of the 747 Jumbo Jet which was a $2 billion dollar bet, $14bn in 2010 dollars, on a big lumbering subsonic jet in the mid 1960s when the future of aviation seemed to be with sleek supersonic aircraft like the Concorde.

    While Boeing’s bet paid off, it took 15 years and nearly sent the company broke.

    Most of today’s businesses aren’t locked into 14 billion dollar and 15 year investment cycles as we can test products with simulation tools, computer aided design programs, fast prototyping and oursourcing services like o-desk for labour and alibaba.com for manufacturing without risking the farm.

    For most businesses, it’s not even a matter of spending time and money actually developing ideas, usually it’s something as simple as testing a new idea by buying a domain name and setting up a low cost website on a cheap hosting service for under $200. If the idea flies then you start looking at spending real money on making the product ready for the broader market.

    Failing fast presents a great challenge to the traditional organisation where the slightest failure is a stigma. In the new economy, a risk adverse culture is going to be punished by competitors who accept that not every idea is right for its time and learn lessons rather than punish those associated with the unsuccessful project.

    While this is bad news for large organisations run by risk adverse managers it is one of the great opportunities for nimble and smart companies. If your business is prepared to take small risks, learn from the misses and celebrate the wins then your business could well be on the way to being the next Google.

    Similar posts:

    • No Related Posts
  • The freeways of the future

    “I don’t see why the Internet is important to me” said Maggie, the first caller to our “is the Internet the ultimate consumer’s revenge “ radio program.

    Maggie’s question is a very good one at a time when governments, businesses and households are investing heavily in Internet technology. Just a few hours before the radio show I’d been invited by television program A Current Affair, to discuss if Australia’s 43 billion dollar investment in a National Broadband Network is worthwhile.

    For Maggie and ACA’s viewers, the answer is “yes, it is very important” — the Internet today is what the motor car was to the early 20th Century and railways were to the 19th Century. Communities that aren’t connected will miss the benefits of the 21st Century economy.

    To illustrate how important it will be, let’s have a look at Maggie’s life. We’ll assume she’s an older person living in a regional Australian town or one of the fast growing fringe suburbs of a big city.

    Probably the most immediate change the Internet delivers for Maggie is how it is giving her a stronger voice as a consumer and citizen. This is what we discussed on the ABC program, how Internet tools like social media are giving customers and voters their voices back.

    With reliable broadband Maggie can be researching products and voicing her dissatisfaction with government and private organisations to the world in a way that would have been impossible a few years ago.

    Those Internet tools also growing communities around her as like minded people across the world and in her own district are connecting online then meeting in real life at events like Coffee Mornings.

    Not only does the Internet connect communities, it connects families — one lady recently described to me how she speaks more to her daughter living in Brazil through Skype than she did when they lived nearby. The net brings friends and families back together and helps overcome social isolation.

    Exclusion in education has always been a pressing issue, once upon a time you had to be in Cambridge or Oxford to access the world’s great minds. With a fast reliable Internet connection, the kids in Maggie’s neighbourhood can listen to a Harvard or MIT professor’s lecture without leaving their hometown.

    Bringing knowledge to local communities will also help Maggie should she have to have to go to the local hospital, the local doctors will be able to consult specialists without Maggie having to travel long distances to get specialist advice.

    Importantly for Maggie and her local hospital, the access to online training resources mean the local staff will be up to date with their professional development and across new trends, ensuring Maggie’s standard of care will be equal to the big city teaching hospitals.

    Solving staff training issues also delivers benefits for the local business community. It means the Maggie’s son Tim, the owner of a local plumbing business, doesn’t have to pay for expensive training courses or to travel into town to attend business conferences.

    The net also means Tim can access the world’s best business minds without leaving his office. Which gives him benefit of running his business more efficiently and profitably.

    For Tim’s kids, it also means they aren’t excluded from the entertainment world. They can stream and download the latest things happening and share equally on social networking sites. They may be in a small town, but they can play in the big world.

    Having these education, business, training and entertainment resources strengthens communities. It means kids and entrepreneurs can live in their home towns and still participate in the global economy. It means Maggie is a valued and important citizen of her country and the world.

    Fast accessible Internet is more than important, it’s vital just in the ways roads, railways, canals and the telegraph were in their eras. The investment in these freeways of the future is necessary to grow strong and dynamic communities.

    Similar posts:

    • No Related Posts
  • 5 ways to manage information overload

    In a speech to university graduates on the weekend President Obama described some of the problems we face with information overload. That the US President struggles with it despite his army of secretaries, assistants and advisors shows just how big the task has become for the rest of us.

    Albert Einstein famously said “information is not knowledge” and that’s certainly true of the net. We need ways to process the data that comes pouring in so we understand the context and value of what we’re reading. Here’s five ways to manage your information overload;

    Mail Rules

    For most business people, email is the first thing we look at each morning and it’s where half the day can easily disappear. The mail rules built into every email reader help you filter the important from the not so important.

    It’s also worthwhile reviewing your email subscriptions every few months and unsubscribing from newsletters that no longer interest you. The less clutter, the better.

    Google Alerts

    “Unknown unknowns” is a quote from a less esteemed historical figure and there’s a lot we don’t know happening on the net that can affect our lives and businesses. The Google Alerts tool gives you a regular email summary of what’s appeared on the web for any search term you enter.

    The right terms in Google Alerts gives you an insight on news and trends about your industry, competitors and customers. It’s a great, but underused, market intelligence tool.

    Twitter

    90% of what you read about Twitter discusses marketing, in my view Twitter’s real value lies in following smart people who tweet smart things. You get the benefit of the accumulated wisdom of the people you follow and the things they find interesting.

    These days I find I spend as much time reading links I’ve saved from Twitter as I do surfing the net. It’s become an invaluable tool.

    RSS Feeds

    Most websites have a built in feature called Really Simple Syndication, or RSS feed, which pumps out updates to the site as they happen. You can use the built in RSS features in your browser’s bookmarks folder or a dedicated feed reader to keep up to date with your favourite websites. Just click on the subscribe button most websites feature.

    Favourites

    Bookmarks or favorites is the oldest way to save information off the web and it can result in overload of its own. If you keep your bookmark folders organised, it can be a treasure trove of useful information.

    We’re at the early days of the information economy and the flood of data which engulfs us is going to get even greater. The challenge for all of us is to learn how to manage this so we can derive the best benefits from this new economy for our businesses, society and families.

    As President Obama said in last weekend’s speech at Hampton University, Virginia;

    “What Jefferson recognized… that in the long run, their improbable experiment — called America — wouldn’t work if its citizens were uninformed, if its citizens were apathetic, if its citizens checked out, and left democracy to those who didn’t have the best interests of all the people at heart.

    “It could only work if each of us stayed informed and engaged, if we held our government accountable, if we fulfilled the obligations of citizenship.”

    The same is true of our personal and business lives as it is of our citizenship. Get informed.

    Similar posts:

    • No Related Posts