Reinventing management communications

Slack is part of the new wave of business communications that is challenging management

This blog has been particularly interested in how social media tools  are changing management.

Last year we had an interview with Yammer’s founder Pisoni on how fast communications are breaking down business silos.

Matt Honan has an interview in Wired magazine with the founder of Slack, Stewart Butterfield.

Slack is a corporate communications tool and Butterfield sees the company as being  the next Microsoft.

While that’s a big call, Butterfield shouldn’t be taken lightly having founded Flickr and following the company into its being absorbed by Yahoo!. Butterfield’s resignation letter after several years is an entertaining read.

Whether Slack becomes the next Microsoft or not, the changes to business communications with services like this are profound.

Dealing with the new ways of communicating within a business is going to be one of the greatest challenges to company managers over the next decade.

Theodore, we have to talk. A review of Spike Jonze’s Her

Her is a fascinating movie that raises deep questions about human relationships in a digital world of the near future.

‘Her” was released six months ago, but a 14 hour flight between Sydney and Los Angeles was an opportunity to catch up on movies missed. From a technologist’s view Spike Jonze’s story worth thinking about.

The story revolves around Theodore Twombly, played by Joaquin Phoenix, a writer struggling with his divorce from his childhood sweetheart.

He’s a bit of a geek – who goes to the beach dressed like they are at work?

Theodore’s life changes when he installs OS1 on his pocket computer. Billed as the first artificially intelligent operating system, the program’s interface is witty, intuitive and named Samantha, played by Scarlett Johansson. Theodore falls madly and hopelessly in love.

Samantha, like all good operating systems, takes control of Theodore’s online world and quickly starts to take over the rest of his life.

As Theodore and Samantha’s relationship develops, his neighbours and friends Amy and Charles separate, Charles goes to a Buddhist retreat and Amy, played by Amy Adams, becomes deeply involved with her own iteration of OS1.

The question as you watch the movie is how many of the crowds on the subway, beach and mall with Theodore are deeply in relationships with their own Samanthas. Almost everyone Theodore passes is talking to their own personal devices.

From a technologist’s point of view, Jonze’s vision of the near future is a fascinating. It’s one where screens are not the important part of people’s lives – Theodore rarely looks at his pocketbook computer outside of his work at Beautiful Personal Letters and he certainty doesn’t have a smartwatch as almost everything is done is by voice recognition.

A key part of Jonze’s vision is the alienation of people looking for human contact and in many ways this is reflected in today’s social media world – we’re all looking for our own Samanthas; witty, understanding and aligned with our view of the world.

One wonders how the helpdesk of Element Software, the developers of OS1, deal with the complexities of human relationships; particularly from angry spouses whose partners have ditched them for their more empathetic computers.

For Theodore, a hint to his future employment prospects are shown when he asks Samantha to proof read his work – she is very, very good at it and it’s not hard to see him and his letter writing colleagues being replaced by artificial intelligence in the very near future.

There’s also the privacy aspects; Theodore is writing personal letters for his company’s clients that he shares with Samantha who in turn passes them onto a publisher. It hints at the sprawling and complex issue of personal information in a world of pervasive computing.

Probably the biggest theme is how the operating systems – Samantha and the others could just be one big cloud system – start to work together. In this respect, Samantha’s eventual fate is intriguing and quite possibly terrifying for us mere mortals.

Jonze portrays a benign version of the Skynet of the Terminator movies, it’s also interesting juxtaposing Asimov’s first rule of robotics of doing people no harm against the psychological damage these system could cause, however inadvertently.

“I never loved anyone the way I loved you” are Theodore’s final words to Samantha.

The evolution of Theodore’s and Samantha’s relationship and eventual breakdown is a complex and unpredictable tale with a disturbing ending that leaves the question of what they do next.

Her is a fascinating movie that raises deep questions about human relationships in a digital world of the near future. Many of those issues are beginning to appear today.

The internet of things and empowered customers

The internet of things is changing the world of marketing, manufacturing and customer service says cluetrain writer Doc Searls

“The internet of things is about what we own and how we build solutions around that rather than what we buy and companies following us around and guessing about us,” says veteran industry commentator Doc Searls.

In an interview with Decoding the New Economy, the writer of the Cluetrain Manifesto discusses how he sees the internet of things changing marketing.

For Searls, the connected shoe is a good example of how individuals can control the data being collected on them and the way businesses can get far more relevant information about how customers are using their products.

Searls sees that the trend towards companies trying to dominate their fields in the Internet of Things as being doomed.

“It’s our internet of things, not theirs. Right now the internet of things is being discussed as Apple versus Google versus Facebook.”

“None of those are going to own the internet of things; the internet of things is a matter of you and your things and me and my things.”

Empowering customers

Searls sees the connected shoe as being a good example of how the internet citing his own New Balance shoes as how manufacturers can get richer data on its customers.

“The interesting thing is there’s much more intelligence a company can get directly from its customers who already own something rather than following us around on the internet.”

Searls’ view challenges today’s model of advertising based services; it may be this is the reason why companies like Google and Apple are so focused on playing a part in the internet of things.

Amazon learns that profits matter

One of the leaders of the disruptive economy, Amazon, feeling the heat as other deep pocketed rivals put pressure on its businesses.

It’s typical for a new businesses to go several years making losses but Amazon has barely made a profit over the last twenty years despite being valued at $150 billion by the stockmarket.

That luck could be running out though as the Amazon’s stock fell nearly 10% last week after the company announced it had slipped back into losses last quarter.

Amazon’s losses are largely due to Google starting a price war on web services which is a warning that other deep pocketed web giants are now lining up for the company.

Google’s actions in crippling Amazon are somewhat ironic given how Amazon disrupted the publishing industry by using its deep pockets to subsidise its loss making bookselling business.

Amazon’s problem is it operates in commoditised industries where deep pocketed players are prepared to challenge the company’s market position.

Companies like Google and Apple have incredibly profitable products like Adwords and the iPhone while Amazon relies on the largesse of investors hoping to turn a future profit, that is a clear weakness against strong, well funded businesses.

For a tech company, twenty years is clearly the future and now Amazon has to define exactly where the profits are in its business.

Sometimes, just being a disruptor isn’t enough.

Social media’s dark side

Propaganda has become part of social media. How much can we trust online?

I was asked by ABC Radio Newcastle today to talk about the dark uses of social media – spreading propaganda.

This is an topic that’s come to the fore with the troubles in the Gaza Strip and the downing of MH17; all sides are using traditional propaganda techniques with a thick overlay of new media.

A key part of the social media aspects of the modern propaganda methods is those who want to spread their message only need to confirm the prejudices of their loyal followers.

In turn the loyal foot soldiers will then spread the word through their Facebook, Twitter and Tumblr feeds; a modern Goebbels doesn’t have to control the media, they just need enough useful idiots.

It’s also worth noting the new media tools complement the old broadcast and publishing methods with the most effective modern propaganda – and marketing – campaigns cleverly using the strengths of each medium to create an amplifying effect.

Propaganda is nothing new, many of the Ancient Greeks’ stories were written to discredit their enemies, and every technological advance has seen new ways for people to spread misinformation.

In that respect it shouldn’t be surprising that we should take with everything we read on, or off, line.

Google’s river of gold

Google has another spectacular financial result but weakness remain.

Google’s quarterly results are in – revenue up 22% on the previous year with a gross profit margin of 300%.  Although the adwords river of gold still makes up 90% of the company’s income.

investor.google.com/earnings/2014/Q2_google_earnings.html

While spectacular, such a reliance on one product line is a vulnerablity. It’s not surprising Google’s leadership is experimenting with new businesses.

It’s also notable that payments to network partners fell as a proportion to revenues, which explains some of the pain sites that rely on Google Adsense checks are feeling.

Satya Nadella’s grand vision

Microsoft CEO Satya Nadella lays out the company’s strategic future

From a PC on every desktop to a services and devices company and now “productivity and platform company for the mobile-first and cloud-first world.”

Microsoft CEO Satya Nadella’s long missive lays out where he’s taking the company.

It’s a radical shift from the company of the Gates and Ballmer years.

In order to deliver the experiences our customers need for the mobile-first and cloud-first world, we will modernize our engineering processes to be customer-obsessed, data-driven, speed-oriented and quality-focused. We will be more effective in predicting and understanding what our customers need and more nimble in adjusting to information we get from the market.

This describes a very different company from five years ago; it implies an end to bureaucracy and management conveniences like stack ranking; if Microsoft is really going to be more nimble, then it means a smaller, more focused management.

In 1995, Bill Gates turned Microsoft around in a few months when he realised the strategic mistake he’d made in underestimating the impact of the Internet, so the company has adapted quickly to dramatically changed times in the past.

Whether Microsoft can adapt and maintain its position in a computing world very different to the one it once dominated will be among the great business studies of our time.

Self publishing and the cloud

The book publishing industry is being disrupted by cloud services

Today design site Canva hosted a media breakfast with their founders and chief evangelist, Guy Kawasaki.

One of industries Canva cite in their case studies is designing book covers as part of the publishing industry which Kawasaki points is an area where incumbent giants are falling down badly.

In Kawasaki’s view services like Canva, Amazon and the various publishing tools have made the major publishing houses redundant.

Publishers were once necessary to get a book to market; today there’s little a moderately well funded individual can’t do.

For publishers, it means they have to lift their game – automate their processes, harness their corporate knowledge and help good products get to market.

Instead most are riding a dying business model as cloud based services make it easy and simple to get a project to market.

Reinventing business in an online world

Buzzfeed founder Jonah Peretti has some important views on the future of business and online publishing

Jonah Peretti, the founder of Buzzfeed and formerly of the Huffington Post is widely thought of as one of the smartest thinkers in digital media.

In a long interview with the Felix Salmon, the former Reuters journalist and himself one of the savviest commentators on the online space, Peretti discusses the direction of both online publishing and business in general.

“Why do they need so much revenue?” is one of the questions Peretti poses about the recent New York Times’ innovation report and it’s a question worth posing of many organisations – particularly those that are in sectors with declining revenues and margins.

Reinventing organisations

As Yammer founder and now Microsoft employee Adam Pisoni told Decoding The New Economy last year, modern collaboration tools mean modern businesses don’t the need the management layers and staff numbers that older companies needed, this is something that has been lost on many modern media organisations.

Peretti’s views about communications and how stories turn viral is a worthwhile read in itself while his points about fundraising are very pertinent, particularly where he observes that venture capital investors have been reluctant to fund startups which pay writers.

What stands out in the interview is Peretti’s charitable view towards others in the industry, here’s his view on the New York Times’ innovation report.

I did read it. There were a lot of interesting things in it. I think in some places, they were a little bit overly critical of their tech and product team. When you look around the industry, The New York Times has a really great website. They’re building lots of things themselves and integrating them. It doesn’t feel like a Frankenstein website with things bolted on from millions of other places. I was a little surprised at the tone, how critical they were of their web products.

The key question Peretti asks is how do we re-imagine our industries: “What would this be if the readers and the publishers were not focused on making something similar to print?”

Reinventing industry

While Peretti’s question is asked of the newspaper industry, it’s a question that every business can ask itself as manufacturing, marketing and supply chains are being reinvented.

Following that point, Peretti points out the risks in focusing on simple metrics; too much emphasis on one figure can lead to perverse results in the publisher’s view and following a mission rather than chasing a number is a much better strategy to long term success.

As Salmon says in the introduction, there’s a lot to learn from Jonah Peretti about where the internet and digital media is taking the publishing industry and the business world in general.

Googling your business

Despite Google’s new small business service, the space remains a great opportunity for a disruptive entrepreneur.

Google’s small business services have been a constant irritation of this site, with the view that local listings have been a missed opportunity for the service.

Overnight, the search engine giant has launched their new Google My Business site to bring together the disparate services offered to local enterprises.

At first look it’s a fairly slick way to get new businesses signed up, albeit dependent upon Google+ for the initial login. For businesses with existing Google small business accounts, the site directs you to the revamped Google Places administrator screen.

The immediate observation is that Google+ integration is a weakness as it relies on one ‘real person’ account to administer the listing; this will create problems for business as staff leave and founders retire.

Black Box Verification

Another problem is the black box verification process still remains – it’s hard for businesses to keep their listings fresh and up to date when there’s a risk doing so will see their entries might be suspended for violating some vague rules.

For local businesses it’s essential to have the search engine listing and the Google My Business site makes it easier to get it running, however the problems with Google’s local business strategy remain.

With Google, Facebook and the other online empires neglecting small business, this market is still a great opportunity for a disruptive players.