The Sleazy Carnival

Seth Godin set up a friends computer and found “the digital world, even the high end brands, has become a sleazy carnival”

carnival clown stallSeth Godin set up a friends computer and found “the digital world, even the high end brands, has become a sleazy carnival” as he clicked his way through dozens of pop ups, offers and confirmation windows.

The only real surprise is Seth can’t have set up a Windows computer for some time as crapware has been the bane of IT techs for years. At the 2007 Consumer Electronic Show Micheal Dell notoriously pointed out this crapware was worth $60 per computer.

Dell’s point was valid in one respect; if you are selling at unsustainable price points then you have to do everything you can to improve your profit margins.

At the beginning of 2010, Dell find itself locked in the low value, low margin end of the industry with a declining market share at a time when US consumers are banging shut their wallets. It’s fair to say Micheal has reaped what he sowed.

It’s unfair to just single Dell out – cost cutting, upselling and downright double dealing is endemic in the IT and electronics industry and the vendors only have themselves to blame as they trained customers to fixate on price and then struggled to claw back a decent profit.

The tech sector has betrayed its customers and only has itself to blame for the lack of trust and declining profits.

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The new business tools

Probably the biggest highlight of a fast, hectic 2009 was November’s X Media Labs in Sydney which illustrated just how the world is changing as a result of new media channels, faster Internet and more powerful computers.

The organisers of X Media Labs, Brendan Harkin and Megan Elliot, describe it as “a meeting place uniquely designed to assist companies and people get their own creative ideas successfully to market, through concept development, business matching, and direct access to world-class networks of creative professionals.”

Brendan and Megan held the first event at the Sydney Opera House in 2003 but have since relocated to Shanghai. The Chinese connection was strong with the guest speakers including property developers and social media entrepreneurs.

Wang Xing, founder of Chinese social networking sites, Fanfou and Xaionai impressed everyone with the size and growth of the Chinese Internet market. It left no doubt where the eyeballs and where the wallets will be as we continue into the 21st Century.

More challenges were presented by Zheng Xaioping, founder of property developer BAZO, who went through the growth of Chinese cities and the directions government and investors are taking within those cities.

A local success was Zareh Nalbandian of Sydney’s Animal Logic who showed some behind of the behind the scenes footage of Happy Feet and a US advertising campaign for fast broadband featuring a jet engine assisted shaved rabbit. It illustrated how exciting, quirky and innovative work is being done in Australia.

To show the US isn’t out for the count, Susan Bonds, president of 42 Entertainment, showed how bringing together many strands of the online digital media tools created a massive alternative reality game for the movie Dark Knight.

Probably the most exciting presenter was Professor JoAnn Kuchera-Morin from the University of California’s Santa Monica Nanotechnology Allosphere. Her talk, a version of which is on the TED website, showed the possibilities in the new economy as arts, science and technology come together.

Not everybody has the resources of the US National Science Endowment, a big movie studio, or the Chinese government to support their projects, but as Brasserie Bread showed a few months back you can create a buzz using some of these tools quickly.

That’s the challenge for all of us over the Christmas break – to figure out how we can harness the power and opportunities the second decade of the 21st Century is going to present us.

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Spam of the year

While cleaning out the IT Queries mailbox I came across a funny spam

full mailboxWhile cleaning out the mailbox of IT Queries I found this among the spam messages;

HELP! I’m currently being held prisoner by the Russian mafia and being forced to post spam comments on blogs! If you don’t approve this they will kill me. They’re coming back now. Please send help!

Sometimes you can’t help but laugh.

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The Technology gripe line: ABC Nightlife computers

Paul Wallbank joins Rod Quinn for ABC Nightlife computers from 10pm on Friday, December 18 to rant about what bugs us about technology.

Tune in across Australia on your ABC Local Radio station or listen online through the Nightlife website.

You’re welcome to join the rant. Feel free to call in on 1300 800 222 and tell us what irritates you about the Internet, computers, mobile phones or anything else that goes beep.

Paul Wallbank joins Rod Quinn for ABC Nightlife computers from 10pm on Friday, December 18 to rant about technology; its bugs, errors and things that simply don’t work as they should.

Tune in across Australia on your ABC Local Radio station or listen online through the Nightlife website.

You’re welcome to join the rant. Feel free to call in on 1300 800 222 and tell us what irritates you about the Internet, computers, mobile phones or anything else that goes beep.

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Riding the hype cycle

Despite the Google Phone only existing in a couple of photographs, the device is making headlines as the new “iPhone killer” and there’s no doubt early adopters are asking “should I wait for this new phone?”

Despite the Google Phone only existing in a couple of photographs, the device is making headlines as the new “iPhone killer” and there’s no doubt early adopters are asking “should I wait for this new phone?”

It’s a tough life on the bleeding edge – the life of an early technology adopter features long days breathlessly waiting for the next hyped up product with short periods of extreme disappointment when the latest uber toy fails to live up to the marketing promise.

To explain how hype works in the tech sector, the consultants at Gartner invented the Hype Cycle.  The cycle explains how a typical product is released in a wave of publicity that drives it to the “peak of inflated expectations”.

Eventually the bubble pops and the widget plunges into the “trough of disillusionment” where users either abandon it or suffer the taunts of their friends and workmates.

Over time, those persistent fans find what the widget does well and it begins to crawl up the “slope of enlightenment” as the believers convince others the product really is good for something.

When enough people accept the widget as the best tool for a certain job it settles on the “plateau of productivity” where it happily sits until a better mousetrap comes along.

In reality some widgets move faster than others and not all make it over the peaks and plateaus. A look at the 2009 cycle shows some products that have taken a decade to approach the peak of inflated expectations while others have simply been abandoned by their makers or the market before they’ve completed the journey.

For business owners, most focus on the tools that have reached the plateau of acceptance. This is partly because wasting time on a new device that doesn’t do what it’s supposed to squanders an entrepreneur’s scarcest asset.

The other main reason for avoiding hyped products is they carry risk and most business owners have enough risk in their lives to satisfy even the most adventurous tech warrior.

None of that means we shouldn’t be looking at new gadgets and ideas – the world is moving fast and those who don’t adopt new technologies and concepts will be left behind. But just be a bit careful of the hype and unrealistic expectations of what the latest new thing can do for you.

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ABC 702 Sydney weekend computers

Join Paul Wallbank and Simon Marnie on the Sydney 702 ABC Weekend program to discuss today’s issues for home and office computer users.

abctowerJoin Paul Wallbank and Simon Marnie on the Sydney 702 ABC Weekend program this Sunday, December 13 to discuss today’s issues for home and office computer users.

This Sunday from 10am we’ll be looking at protecting your computers over summer; what to do before going on holidays and how to avoid storm damage.

Tune in on ABC 702 or listen online at www.abc.net.au/sydney. We love listeners comments, questions and opinions so call in with yours on 1-800-800-702 or SMS on 19922702.

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Quality: The essential ingredient

So it’s worthwhile thinking about the raw materials in your business. Are you providing your customers with a quality product? Or is your only selling proposition cheap, cheap, cheap?

“We can’t pay for speakers, we have to cut costs!” said the conference organiser when asked if the day’s presenters were being paid for their time.

Most of the event’s sessions featured speakers who were at best going through the motions. Thankfully no-one on stage had a book, training course or a box set of DVDs to sell.

The sad thing was the event itself was a great idea and the organisers have a genuine belief and passion for what they are doing, but I’m not sure that came across to the day’s participants.

What this showed is how important quality raw materials are to a product or service and if you skimp on materials, you end up with an inferior product. in the case of conferences and conventions it’s the speakers who are the materials.

This is as just as true in any business and if you’re in a market where there are lots of inferior products, and there is no shortage of third rate conferences out there, then you just commoditise your product.

Every day we see this in the technology industries – cheap, me too products and services that have no differentiation from the competition except on price.

So it’s worthwhile thinking about the raw materials in your business. Are you providing your customers with a quality product? Or is your only selling proposition cheap, cheap, cheap?

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