Decoding the new economy

702 Sydney Weekend computers: December 2010

The Christmas lock down

The Christmas holidays are approaching and we take time out to look at what you can do to protect your home and business computers while you are on holiday.

Listeners’ questions we covered included;

Removing Trojan Horses from a computer
Computer virus infections often arrive in the form of Trojan Horses – programs that pretend to be something else such as an image viewer – removing them can be difficult.

The IT Queries website has the step-by-step instructions for removing a virus infection using the Malwarebytes program.

Ejecting a stuck DVD or CD
Steve asked about getting a stuck disk out of his computer. Luckily on most optical drives, at least those with trays, there is a pin hole where you can push in a straightened out paper clip to manually open the drive.

Tune into ABC 702 Sydney to hear Paul Wallbank and Simon Marnie discuss the tech issues that affect you or listen online through the ABC Sydney webpage.

We love to hear from listeners so feel free call in with your questions or comments on 1300 222 702 or text on 19922702. If you’re on Twitter you can tweet Paul at @paulwallbank and 702 Sydney on @702sydney.

Holiday computer checklist

A few ideas on making your holiday more enjoyable

With the Christmas holidays almost here, a lot of business and home computers will spend a good part of the next month turned off. Even though they are shut down, bad things can still happen. There’s a number of things you should do before heading off for a break.

Before you go

Backup
Before shutting down for the holidays backup all your important data. Your backup should include favourites, mail, address books and documents. Some programs, such as accounting systems, have their own backup routines.

Store the backups away from the computer, preferably offsite. We recommend making two copies, leave one onsite for easy access and store one elsewhere. If something terrible happens to your home or office while you are away, your data is at least safe.

For working and essential documents, setting up a free Dropbox service and copying them to it is a great idea. Dropbox is also good for saving documents you foolishly intend to work on while you’re away as well as essential documents.

Turn everything off
Printers, modems, routers, should all be turned off and disconnected from power and communications lines. Most modern computer equipment still has power running through it even though it is turned off. Power surges from storms are common, so don’t take chances.

If your computer is connected to a network, telephone line or cable connection then these should all be disconnected as well. Power surges are common on communications cables. Everything that connects your computer to the outside world should be turned off and unplugged.

Hide your equipment
Give thieves as little temptation as possible. Don’t leave computers in full view. Lock away anything portable and draw the curtains or blinds in the room where your computer is kept.

What to pack

As technology becomes an essential part of our lives, we tend to take it with us. This is particularly true with devices like iPads and DVD equipped laptops which are as much entertainment devices as they are for work.

To get the most from them, there’s a few things to consider when packing.

Update your systems
Run the update routines for your operating system, essential software and security programs before you leave so there will be no major updates clogging up your downloads while you try to work or play.

Power
The most irritating thing when on the road with a computer is running out of power. Do you have all your chargers packed away? If you have space it’s also a good idea to carry a powerboard so you can share scarce power outlets with other users.

Connectors
Don’t forget your USB cables to connect phones and cameras so you can download photos, update music and, for some devices, recharge them.

Packing
If you are flying anywhere, it’s best to take electronics with you as carry on baggage. Carry them in a bag where they are easily accessible so you can take them out without fuss at security checkpoints.

When you return

Your computer is the very last thing you should turn on. Make sure modems, printers, external drives and networks are all running before turning your computer on. If you have a cable Internet connection, give it a few minutes to connect before trying to log on.

Update your system.
Before checking emails or surfing the net, update your anti-virus and check for any system updates. Run Windows Update and your anti-virus program’s update program. New nasties will have come out while you are away and there’s a good chance some of them may be waiting in your inbox.

Christmas and New Year are a time to relax, by taking a few easy steps with your technology you can ensure your phones and computers are part of an enjoyable break.

Have a merry Christmas and a great New Year.

Other peoples’ platforms

The risks in the privately owned web range from obscure terms of service to arbitrary payment problems. This is why you need to control as much of your business’ online presence as possible.

“We have successfully established an online business, but we have run into problems with Ebay (indefinite suspension – unfairly I might add)” wrote Ralph*, an old client.

“We are pretty desperate, as this is now our sole business and we are now without an income.”

The Privately Owned Web

Ralph’s problem is typical of thousands of businesses that rely on one Internet service. Some months back we looked at “Nipplegate”, the story of a Sydney jeweller who had her Facebook page closed down because of her anatomically correct dolls.

All of these services are privately owned with their own terms and conditions along with their own corporate objectives. If you choose to use their product, you have to follow their rules – just like a shopping mall management can order you off their premises because they don’t like the colour of your socks.

The most glaring example of this is Wikileaks where Amazon, Paypal, Mastercard and Visa all threw the whistleblower site off their services for allegedly breaching their terms of services in various obscure ways.

The Terms of Service Trap

A business’ Terms of Service usually feature clauses wide enough to catch even the most honest and diligent business, this is by design as it gives management the excuse to throw anyone who makes their lives difficult, which is exactly what has happened with Wikileaks.

While Ralph’s problem is nothing like the scale of Julian Assange’s, all of these stories illustrate the dangers of relying on one service for your livelihood. Should that service change the way it operates, then any business that relies on that could be broke in hours, as many businesses that rely on Google search results have found.

Most of the Internet is not a public space, almost all of it is privately run along similar lines to that shopping mall or a walled estate.

Ralph and Julian Assange have shown us the limitations and risks of the privately operated web. As citizens and business owners we have to understand these corporations’ objectives are not always the same as ours and make judgements on how we live with the risk of finding ourselves in breach of a Term of Service in our business or personal lives.

We’re still in relatively early days of the net and all of us are still learning. One lesson is clear though, we can’t allow our livelihoods to be held hostage by a small number of big technology companies. Make sure you have alternatives to your online channels.

*Ralph is not his real name

Online ethics

how should we conduct ourselves online?

We have an established set of ethical rules for our professional and business conduct, but how applicable are these guidelines in the online world?

Thinking online communications aren’t serious, unlike what we say in written correspondence or at meetings, is a common fallacy. While it’s true most online chatter is often more informal and relaxed, we are still being held to professional standards whichever forum we use.

Many people treat what they put online as something similar to what you’d say over a coffee or after work drink, the problem is that most of what you do online can be endlessly copied and forwarded to others, as we see in the Wikileaks controversy. This makes it a very different medium to the spoken, informal social networks we have outside of the Internet.

We should also remember this isn’t just about social media tools like LinkedIn, Twitter or Facebook; it’s about any communication you carry out online such as using email, Internet chat, making comments on blogs or posting on public and private web forums.

In many ways the online rules are similar to the standards we expect in the offline business world, but because of the nature of the web, the emphasis is often different.

Private stays private
A private conversation has to stay private. What someone says to you in a private message or posts to a private forum – such as a locked Facebook page, an email or a direct massage – should never be repeated on the public Internet without the express permission of the person who sent it and those it was addressed to.

Don’t misquote
The remarkable thing about the Internet is how many people misquote others despite the fact most of what happens on the Internet is a written, or recorded, medium. If you’re going to quote someone, make sure you’re accurate.

Never plagiarise
Equally, you shouldn’t be too accurate. If you are going to extensively quote someone else, either link to their website or get permission to use their work. As the Cook’s Source scandal showed, we cannot assume that just because something is on the net we can just copy it.

Give credit where possible
Be generous in crediting other people for their work – linking to other people’s websites is not just a courtesy, it helps the web work better and adds value for all of us. It also improves your credibility.

Be open about affliations
Should you be commenting on issues you have a professional or financial interest in them then disclose them. On the web, people tend to be suspicious of those who may have vested interests so being open will enhance credibility.

Resist anonymity
There are good reasons to post anonymously however you should only do that when it’s necessary. Being open about who you are improves your reputation and credibility. We’ve looked at the risks and benefits of online anonymity previously

Be polite
There is a school of thought that claims manners aren’t necessary online. This isn’t true. You will quickly shred your credibility by being aggressive, attacking people and using foul language.

Don’t go overboard
If you get angry, take a deep breath and relax. Think about what you’re saying and if you have to post something angry, do it the following day when you’ve had time to think about it.

The idea that the online world is somehow separated from the rest of our lives is false. How we behave online has real consequences in the physical world as we can ruin our careers, be sued or even go to jail for things we say online.

Our online ethical behaviour should follow that of the physical world. If we wouldn’t do it on the street, in our meeting rooms or in front of our mothers then we shouldn’t do it online.

Rescuing retail

A Sydney butcher shows how the retail industry answers the challenge of industry change

The retail news is bad – consumer spending is dropping and the remaining customers are going online, eBay is taunting the big retailers who in turn are threatening to set up Chinese based online stores.

Are things really that bad for the bricks and mortar retailer? Are the suburban malls and high street stores doomed?

Maybe not.

In New York on the weekend Vic’s Meats, a butcher in Sydney’s Eastern Suburbs, won the retail prize at the Interior Design magazine’s Best Of Year awards for their Victor Churchill retail outlet.

Vic’s Meats show how retailers can succeed in a sector going through fundamental changes.

The last forty years have been tough for butchers as many of the traditional operators went to the wall as the sector struggled with supermarkets selling cheaper pre-packaged cuts and changing hygiene standards.

Butchers who moved up the value chain and focused on delivering high quality product survived. That same process is now happening in a similar way in other retail sectors as more efficient, convenient and cheaper providers change their markets.

At the moment we’re seeing two contradictory trends, a move to commoditised, global markets driven mainly on price and niche markets based around convenience, locality and service. The struggle right now is for established players like Myer, Harvey Norman and local retailers to understand where they fit in this system.

Vic’s Meats have figured out where they sit in their market and their lessons are valuable for other business owners figuring where their place is in this new retail world.

You have to be online

Even if you have no intention to sell online or overseas, your customers are still looking for you online.

It’s absolutely essential, regardless of what you do, to have a basic web presence. Even existing customers are looking up your details on the web when they forget your phone number and if you aren’t there, they may find your competitor’s.

We’ve covered previously what the basics of an online presence are. Make sure you have a Google Places account, Facebook page and a basic web site so people can find you.

You have to be telling your story

Whether you have the best meat, the freshest doughnuts or the fastest lawn mowing service in town then you need to be loud and you need to proud – let the world know about it.

Your website needs to say why customers should trust you and why it’s worth spending more with you than with the cheaper guy in the next suburb or continent.

One particular bugbear are bland and anonymous “about us” pages on many business websites which tell nothing about the business or the people behind it.

Your About Us page should tell the journey of why you were driven to become the best butcher, doughnut seller or lawn mower in your district. Leave the robotic mission statements to the big corporations and celebrate your competitive strengths.

You won’t win on price

The online channels don’t have the cost structures of bricks and mortar stores and that’s nothing new as small retailers have had to compete with the big chains’ economies of scale for years.

So don’t bother. Sell your story, your quality, your passion and your knowledge.

Be a resource

Engage with your local market. If there are changes, issues or events that affect your neighbourhood or market, update your site to reflect this and use social media like Twitter updates and Facebook pages to put the message out.

Vic’s Meats does that well with an informative website, recipes, cooking classes and an iPhone application. All of this builds the story that they are the experts and the people you should go to if you want the right cut of meat.

This is where Harvey Norman and Myers are failing. Many have of us have stood for half an hour waiting in Myer store to get service from an overworked assistant or have been given poor advice by a badly trained, commission driven teenager in a Harvey Norman store.

Gerry Harvey and Bernie Brookes have blown the advantages that Harvey Norman and Myer had over the online players and instead cruised on their respective models of offering interest free purchase plans or perpetual discounting.

Those tactics gave them nearly ten years breathing space while the online retail industry learned their lessons from the dot com bust. That both businesses are now reduced to making empty threats in the hope of scaring the government into wasting millions on a pointless change to customs regulations is an instructive lesson in itself.

An irony in all of this is that major chains such as Harvey Norman and Myer were part of earlier waves of change which put established retailers out of business. We should give particular thought about those butchers who fell under the market might of Bernie Brookes’ old employer, Woolworths.

Those businesses died because they couldn’t see, or deal with, the rise of the big category killers like Harvey Norman, Officeworks and Bunnings or with the longer term trends like that of shoppers moving from high streets to suburban shopping malls.

The jury is out on how many local retailers – both big and small– will go to the wall as online shopping gains acceptance, though it’s probably not a good idea to put a bet on those who sit on the sidelines and whinge that the “gummint orta do summint”.

Do you want to be one of the successes? If so, learn from Vic’s Meats and the other Best of Year award winners and sharpen up what you’re doing both online and in your store.

When all publicity isn’t good publicity

A reputation is more than just a high search engine ranking

Last weekend’s New York Times ran a remarkable expose of US based online entrepreneur Tony Russo’s business methods and how he’s built a business on bad online reviews.

Mr Russo’s model is basically to upset customers, they then complain in online forums which creates more links to his website, something we’re careful not to do here, those links in turn give his sites higher Google rankings.

Crazy stuff, particularly when you read the allegations of his behaviour in the NY Times article which claims he stalks unhappy customers, calls their mobile phones and even masquerades as the complaining client to reverse credit card disputes.

This is an interesting side effect of gaming search engine rankings and how consumers use sites like Google and Bing. In recent times being in the first dozen listings on these sites has been the holy grail of online marketing with the reasonable assumption that a first page result will win customers.

Up until recently that assumption has been correct as most consumers have grabbed the first sites they have found when searching for a service or product, but now that’s changing as customers are increasingly checking comments, reviews and social media sites like Facebook before deciding to buy a product.

So this news isn’t as good as it looks for the shonky merchant as the market gets savvier. Today’s customers are finding ways to dig a little deeper than just the superficial initial search, and when the purchase is going to cost a few hundred dollars most cost conscious buyers are going to spend the extra ten minutes checking out the seller’s reputation.

As online markets develop, we’re moving away from the high visibility marketing methods of the mass media era to something similar to the word of mouth driven marketplaces of the 18th Century village or town square.

This is particularly true in the hospitality industries where the review sites like Eatability and location based services like Foursquare and Facebook Places are become venues for happy, and unhappy, customers to share their experiences.

Our names as reputable businesspeople are mattering more than ever and not just with customers, but suppliers, staff and creditors as well. We’re returning to the days were a businesses person is only as good as their word and our words will bite us if we can’t be trusted.

We have to get over the idea that all news is good news and that a thousand online friends or mentions are a measure of success, we and our business are now being judged on our quality and value that we deliver. It’s something we need to keep in mind every time a customer contacts us.

Why competition is great for Google

The SEO industry threatened to devalue search. Now things are changing.

We often talk about competition being good for consumers and, ultimately, businesses. The technology industry is a good case study.

Microsoft shows how competition forces a business to raise their game; when they won the browser wars by dispatching Netscape early in the Internet era, they let Internet Explorer stagnate until the Mozilla Firefox, Opera and Apple Safari web browsers came along.

Similarly, they allowed their flagship product Microsoft Office drift once they dominated the productivity software market. The arrival of Google Docs and some other new players forced them to refresh and redesign the Office package.

Today Google find themselves in the same position – Facebook, Microsoft’s Bing and various other search engines are reminding the leader that their position is not safe.

The Business Insider website recently took a critical look at Demand Media’s business model, a service that publishes low quality articles that tend to rank high with the aid of clever Search Engine Optimisation (SEO). As a result of Demand’s high rankings on Google searches these articles tend to attract advertisers.

In a search engine market where Google is the only noteworthy game in town, this situation would suit Google and Demand Media as both would have a nice predictable stream of advertising and neither party would have any great incentive to change things and for a while it appeared that might be the case.

With the arrival of real competition to Google such as Microsoft Bing and Facebook, all things change as now search engine results matter – the whole reason Google beat out competitors was because their search results were better than anyone else’s – if Google’s results aren’t as good then users will switch.

So Google’s been changing their algorithm, the formula they use for searches, in order to improve the results of queries on their system. So much so that my fellow Smartcompany blogger, Chris Thomas, accuses them of Attention Deficit Disorder.

This is good news for Google’s users who now get better quality search results and great news for Google’s advertisers who get better quality pages where potential buyers are likely to stay longer and click more.

Google though is the biggest winner as the better results they deliver, the more profitable and long lasting their core advertising business will be.

For Demand Media, things aren’t so good as there’s no shortage of poorly written tripe on the Internet and if they can’t get Google ranking goodness then their business model dies.

Which may show that in the new economy, bad soap doesn’t necessarily replace good soap.

Author: Paul Wallbank

702 Sydney Weekend computers: December 2010

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Holiday computer checklist

Before you go

What to pack

When you return

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