Author: Paul Wallbank

Paul Wallbank is a speaker and writer charting how technology is changing society and business. Paul has four regular technology advice radio programs on ABC, a weekly column on the smartcompany.com.au website and has published seven books.

The bedrock of trust

Trust is the foundation of business; without trust you have no business

An article in last weekend’s New York Times described the problems of AXA Rosenberg; a quantitative funds manager owned by the French financial giant AXA. The role of quant funds is to use sophisticated share trading programs that maximise returns to large investors.

Sometime in mid 2009 an error was discovered in the software AXA Rosenberg used to trade on behalf of its clients. They didn’t tell their clients until April 2010, at least ten months later.

As a consequence, AXA Rosenberg are finding clients are fleeing them. This illustrates just how important trust is in business.

You don’t have to be a big corporation to fess up to mistakes; we all make them and the sooner we admit them the easier it is to rebuild or keep the trust of those around us.

Trust is the bedrock of business, as AXA Rosenberg has found without trust you have no business.

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Choosing a content management system

There’s no such thing as a straight answer in technology, so you need to ask the right questions.

Last week I was asked by a business owner what is the best open source Content Management System for their website. Like many questions in technology, the answer was “it depends”.

Discussing open source and CMS in the one sentence is dangerous as you enter a world of religious geek wars were relationships and reputations are ruined over arguments concerning which product is best; think of the Mac versus PC war fought on a thousand fronts.

There’s also the danger of business owners misunderstanding what “open source” means; to many it means “free” because they don’t realise most of the implementation cost of technology is in the labour time of setting the systems up, not the initial purchase cost. Another risk lies in being blinded by the word “free” results in the business being locked into an inappropriate and ultimately more expensive solution.

This isn’t say the same thing can’t happen with a proprietary system either and often you’ll find being locked into one software vendor means you’re forced into expensive upgrades whenever it suits the vendor’s marketing plan.

Software licenses themselves are a source of risk, in the case of one major technology company I wouldn’t be surprised to learn that half their customers are in breach of their user agreements due to some obscure, arcane and contradictory clause buried deep in the legalese. Not that the software company itself would know, being just as befuddled by their own license conditions as their long suffering customers.

Of the open source Content Management Systems, three options stand out from a crowded field; Drupal, Joomla and WordPress. Each one has it’s own benefits;

WordPress

One of the features that marks WordPress out as the leader in the blogging world is its CMS functions. For most websites and business, WordPress combines ease of use with a vast range of plugins, templates and features. Because of its popularity, there’s an army of consultants and webmasters who can get a professional, corporate looking WordPress based website up and running.

Joomla

Coming from website development roots, Joomla based sites don’t have a habit of looking like blogs that WordPress based sites sometimes do. Like WordPress, Joomla has a large base of developers and supporters and offers access to a wide range of extensions and templates. It offers more flexibility than WordPress if you want to customise your site’s look or feel.

Drupal

Drupal is the best if you want a technical solution. While it’s more expensive and time consuming to set up, it offers more flexibility and power for the business. Drupal is probably the best choice if you have a high traffic site with lots of often changing content.

The ultimate solution comes down to what is right for your business so it’s best to get an expert in to have a look at what your current needs and future plans are for your website. Both Smartcompany’s Aunty B and Craig Reardon have previously looked at how to find the right experts.

One thing to keep in mind when asking experts is that religious aspect; many websites designers are evangelists for one platform or another, so ask widely and remember to be firm about your budgets.

I’d be interested to hear from business owners what their experiences have been with the different platforms and in seeking advice, so please comment below on what you’ve found when shopping for a CMS. Religious geek flamewars on the topic are welcome as well.

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Every business is a people business

Our businesses are all about people regardless of what we sell.

Facebook’s problems with privacy shows how all business are about people. When managers and business owners forget, their businesses are heading for trouble.

When you’re running a web based service, it’s easy to forget those valuable views and clicks are people. Facebook’s current problems are a reminder that it’s people that sit at the core of every business; as staff, management and customers.

Facebook satisfies a basic urge;  our desire to share our experiences, like party and baby photos, with our friends and relatives. We don’t want to share them with some sleazy tooth whitening advertiser and certainly don’t want them shown to the entire world.

Each time Facebook makes a change that opens more data to the world, it loses a little more of their customer’s trust and while the recent Quit Facebook Day only saw a tiny fraction of users leave the service there will be a point where most people stop trusting Facebook and look elsewhere.

It’s a classic case of a technology business not understanding the people aspect of their market.

There’s a wonderful scene in the Mad Men TV series where Kodak have a problem selling their new rotating slide projector, the advertising people fix it by telling the human story behind slide shows, that the pictures are about memory and belonging.

In a funny way Facebook is the modern slide night.

Even if you aren’t in technology, it’s easy to forget the human side of the business. For instance the excellent plumber who walks his dirty boots through the customer’s house doesn’t get invited back.

Mix technology with business and things get worse. We get so tied up in the shiny bells and cute whistles of our toys that we forget our staff don’t know how to use those tools and our customers don’t understand them.

Big businesses are probably the worst for this; over the weekend I came across one of the big telcos using an artificial intelligence web bot to bounce sales enquires between their equally uninformative website, Facebook page and Twitter feed. They were actually messing around potential customers who were looking to spend money.

Those managers responsible in that organisation probably think the system is working fine. Because they’ve been dazzled by the tech they’ve forgotten the whole point is to engage their customers and get them to buy something, not get them stuck in a continuous loop whichadds little value to the business or the client.

Understanding the human aspect of the technology you deploy gives you the advantage over those big telcos and the hottest Silicon Valley stars. So how are you dealing with the human side of your business?

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The Outsourcing Revolution

Could your business be a victim of the outsourcing revolution?

Matt Barrie, CEO of freelancer.com proclaimed at The Insight Exchange’s Getting Results from Crowdsourcing that “outsourcing and crowdsourcing are revolutionising business”.

This is true and we need to keep in mind revolutions result in some eating brioche while others walk to the guillotine. The question for every business owner should be is their industry at risk when there’s a global supply of cheap labour at everyone’s fingertips.

Smart Company covered the pros and cons of crowdsourcing in an earlier article and the interesting thing is many people, including experts and business owners, still confuse crowdsourcing with outsourcing.

Outsourcing is hiring in labour to do the job, there’s nothing really new in this except the Internet now allows providers from around the world to bid for work through sites like Freelancer.com, elance and odesk.

Crowdsourcing is where groups of people volunteer their efforts either for free or in the hope they will be selected to do a job such as logo design. Many of these sites rely on free or marginal cost labour with a few exceptions like Yvonne Adele’s Ideas While You Sleep.

One of the points we need to keep in mind with both crowdsourcing and outsourcing is while there are massive savings to be made, there are risks as both require project management skills which are often underrated and undervalued, as anyone who’s built an extension to their house can attest. The big banks found through their outsourcing adventures in the last 15 years that managing your foreign service providers can be expensive, time consuming and not without elements of risk.

As low cost solutions for relatively simple tasks involving no intellectual property, Internet outsourcing and crowdsourcing are a good solution for big and small business. It also makes you fear for a lot of local skilled businesses like designers and programmers competing against these low cost countries.

It’s not the solution for everything though and many tasks are best outsourced locally or kept in house.

Another thought is that if we accept we’ve moved to an ideas based economy, what makes us assume an American, European or Australian idea is any more valuable than an Indian or Chinese idea? So the outsourcing revolution may have some surprises for those of us who think we’ll be untouched by this. Indeed many of the websites and local business advocating outsourcing programs could themselves have competitors from low cost locations.

Regardless of these thoughts the global market is now at your doorstep even if you don’t compete overseas. The question is will your industry be going to the guillotine or one of those eating cake as the global outsourcing revolution evolves?

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You are what you tweet

Being careful with what you post online is essential to maintaining your reputation.

“This software you recommended doesn’t work. I want a refund!”

“Sorry, but I wouldn’t dream of recommending that product.”

“It’s on your website! I trusted your company to give me the right advice. Are you telling me now I can’t believe what you write?”

That recent exchange over a third party ad on a computer advice website illustrated the risks people and businesses have when they post online. Even if the post is an online ad, a comment or something else you haven’t done yourself.

Anything online that has your business or personal name attached makes you accountable to the entire world. This was one of the points in our recent discussion about about why advertising may not suitable for your business website.

So you need to be careful with what’s posted online in your name or by your employees. A few weeks back we discussed how one Engineering company deals with employees using social media with the basic rule you have to act online with the same professionalism as you would in your work dealings.

That professionalism also extends to your online ethics. If you are making recommendations it’s best not to receive commissions, rebates or freebies and if you choose to then you need to be clear about your affliations.

It’s not just websites; Facebook, LinkedIn, Twitter, any of the dozens of other social media services or the thousands of web forums hold just as many traps for ill considered comments.

The key rule is to never post anything online that you’d be embarrassed to explain to your mum.

There’s a million voices online and if you’re not one of the trusted ones you’ll be lost in the massive crowd. Your reputation is your most valuable asset.

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ABC Nightlife: Who can we trust online?

Millions of Australians are online talking with their families, making new friends and checking out product reviews before they buy. But how much can you trust what you read on the Internet?

Millions of Australians are online talking with their families, making new friends and checking out product reviews before they buy.

But how much can you trust what you read on the Internet?

Join Paul Wallbank and Tony Delroy to discuss who you can trust when surfing the web on your local ABC radio station or listen online at www.abc.net.au/nightlife.

If you’d like to join the conversation with your questions or comments phone 1300 800 222 within Australia or +61 2 8333 1000 from outside Australia.

You can SMS Nightlife’s talkback on 19922702 or twitter @paulwallbank using the #abcnightlife hashtag

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Is Microsoft Office 2010 suitable for your business?

Does Microsoft Office 2010 redefine how businesses use technology?

Last week Microsoft launched Office 2010, the latest version of their business software suite, promising to “redefine how Australian businesses can use technology to save, innovate and grow.” We’ll be seeing the new version appear on store shelves and bundled with new computers from the end of the month.

Like the last few Office versions the 2010 edition sees incremental tweaks over earlier releases rather than massive changes, most of these improvements recognise how peoples’ computer use is changing with increased emphasis on collaboration and the Internet along with more media editing in Powerpoint and data manipulation tools in Excel. The changes are good, but probably not compelling for most business users.

The biggest changes have been in the SharePoint collaboration tools which is where the Microsoft Office franchise is most threatened by cloud computing services like 37Signals, Google and Zoho. For businesses looking at taking advantage of the impressive range of SharePoint 2010 features the backend capital cost of upgrading servers and desktops to meet the needs of the new system will be substantial and there’ll need to be a very good business case for those levels of investment.

Upgrading paths are an interesting change to Office 2010, for the first time Microsoft is not going to offer deals to users looking at upgrading to the new version. What this probably shows is how effective Microsoft have been in selling recent versions of Office in OEM packages, where the software is sold cheaply with a new computer with the catch it can’t be used on any other system.

Taking away the price inducement for upgraders will mean most businesses without volume licensing agreements will move to Office 2010 as they replace that were bundled with Office 2003 and 2007 suites.

This means there will be a mix of Office 2010, 2007 and, in most businesses, the odd 2003 system so it will be important to test exactly how Office 2010 will work in your business. Microsoft have a trial edition of the new package available for download and you should run that on a test system prior to rolling out Office 2010 in your work environment.

A potential problem for early adopters is with file formats, while Office 2010 uses the same names — .docx, .xlsx and .pptx — as Office 2007, there are subtle differences in the data so setting the new systems to save in the old format is probably going to be the best way to go, although this will disable many of the new features in the 2010 edition.

Promising to redefine how businesses use technology is a pretty big aim and Office 2010 doesn’t achieve that, although it is a solid product that goes some way in recognising how work patterns are changing in the modern connected office. It isn’t a bad buy if you find the older Office versions aren’t available or the free and cloud based alternatives don’t meet your needs.

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