Asking the tough questions

Being well informed is the key to getting real results from a technology investment

Last week saw three challenging questions cross my desk — “What on earth is cloud computing?” “Can you explain the National Broadband Network?” and “Why does the Internet matter?”

All the questions ended up being rolled into an article that was picked up by radio and television. Which in itself is an interesting study on how Twitter and blogs drive other media channels.

That these three questions had to be asked shows how poor those of us in the technology sector have been in explaining the great opportunities the digital era offers businesses and communities

For too long we technologists have been locked into talking about gigabytes and megabits, HTML and XML while not explaining what these tools deliver

In most of the tech industries, it’s assumed that if something is shinier and has more features then it’s better for the customers.

This is best seen in the social media circles, where most experts are blinded by the fun of using Twitter or Facebook and struggle to explain what they can deliver to business.

Bizarrely this has resulted in a whole tribe of social media experts who claim there is no way we can apply business measures to their blind recommendations that your organisation should be tweeting out status updates every hour.

A blind acceptance that newer or cheaper is better has locked many big and small customers into at best dysfunctional deals. Worse still, is the “we’ll save a fortune with this new widget” mentality we discussed in last week’s column that is nothing but a trap for people who should know better.

Promising cheap, new and shiny has allowed many technology vendors to lock ill informed buyers into upgrade cycles that have delivered increased costs for little benefit. Internet providers, telephone companies and outsourcing multinationals have exploited customer ignorance to deliver massive profits over the years.

This isn’t to say there aren’t cost savings to be had by adopting new methods and technology, there clearly are. But it relies on the customer, in this case your business, to understand how the new ideas will benefit their workplace.

It comes down to the user to ask the tough questions, if you don’t understand what the computer tech, web designer or social media expert is talking about, stop them and ask.

Tough questions are good for the experts and gurus. It forces the good ones to think about the solutions they recommend and gives the poor ones the hint that other industries might offer better prospects for selling snake oil.

Most importantly, it’s about allowing you to understand what’s going on without jargon and verbiage. Having a clear, concise view allows you to make better, informed choices.

With a changing business environment, it’s too important to be bluffed or ignorant about what these tools mean for you and your industry. Ask the hard questions so you can make the right decisions.

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Five free, easy and essential online business marketing tools

Your customers are now online. Here’s 5 free and easy to use tools to help reach them.

The web has become the shopping strip of the modern economy, where potential customers see what every business has to offer without leaving their home or office. According to the the Sensis e-business report over 90% of businesses and 70% of consumers now do an online search before buying a product or service.

So every opportunity to promote your business online has to be grabbed, even if you don’t have a website. Luckily there’s a range of free and easy to use services to help your business be seen online.

Five of the easiest and most important free services are listed here and it’s best to use all five to help you get the most online visibility for your business.

Google Places

The first and most essential service every business needs is Google Places. Having a Places listing puts a business in the Google search results directly below the paid spots at the top of the page.

It’s a pretty powerful location on the web real estate map and, being free, it’s hard to refuse. Given how Google is by far the most used search engine, a Places listing is essential even if you already have an extensive web site.

Google Places  allows you to upload logos, pictures, descriptions, and other details which makes it an even greater opportunity to get the message out to your customers. For many smaller business, particularly those in the trades, a Google Places page may be all the web presence they need.

Facebook Pages

The marketer’s social media tool of choice, Facebook recently celebrated reaching 500 million users. For businesses, Facebook offers the Pages service which allows you to set up a page for your business.

Facebook’s greatest advantage is it lets your customers talk directly to you and to each other. It’s an excellent way to bring your fans together and keep track of what’s happening in the marketplace.

While setting up the page is simple, there are some sophisticated ways you can improve your Facebook presence. Facebook themselves have good tutorials and sites like SEO Moz have good examples of how to get the most from Facebook pages.

Blogging platforms

Until recently blogs were used as online diaries, today they have become a flexible, free and easy way to set up a web presence.

The two biggest free blogging platforms are WordPress and Blogger. WordPress is the more flexible of the two while Blogger is quicker and easier to setup.

An advantage with using a blogging platform is they are very easy to update and offer far more flexibility and customisation than the other free tools. Keep in mind you can use WordPress on your own website or take up the paid option to use your own domain.

True Local

News Limited’s online listing tool is important for Australian businesses not just because it connects with News’ online and offline publishing networks but also for their content sharing agreements with Google, Navman, Yahoo!7 and some of the mobile phone companies. This means a listing on True Local goes onto all of these services.

True Local offers a number of listing levels ranging from free to $220 a year. Interestingly, News’ Premium service charges for much of what Google Places offers for free, which is one reason why Google is the preferred free site. True Local’s reach in both search, partner sites and offline channels makes it important for business to be listed on the service.

Sensis Listings

Telstra’s directory service, Sensis, offers a free Yellow Pages listing which appears in both their online and printed versions as well as Telstra’s online and mobile services. While listing here will mean you’ll get a polite but anxious call from a Sensis sales representative offering you a deal on a Yellow Pages paid ad, it’s still a very important channel given Telstra’s market share.

As Ken in the comments has noted, Sensis don’t allow you to add a website address to the free listing. While this reduces the effectiveness of a Sensis online listing, it still means your business will appear in Telstra’s online and mobile searches, so it is an important channel to be listed on.

These five tools are a great help for all businesses, regardless of their size or web presence, and each can be set up within in a hour. You could have all five working for you within a day.

Get these free tools working for your business so customers can find you on the web.

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Why cloud computing isn’t just about savings

Looking for massive cost savings should not the sole reason for choosing a new product.

“Billions of IT savings in the Clouds” trumpeted the Australian Financial Review last week in a front page article on cloud computing that claimed moving services online could “slash technology costs by up to 80 percent”.

If nothing else, those lines lead any IT industry veteran to rise a wry eyebrow; a business that adopts a new platform, technology or vendor solely on the claim of massive cost savings is in for a world of pain, disappointment and heartbreak.

There’s no doubt that cloud computing and software as a service are the IT industry’s growth areas and there are many benefits for the businesses that adopt these technologies. Reduced costs is one of the attractions, but it isn’t the only factor a businesses should consider.

Other aspects are the flexibility of not locking yourself into specific hardware and technology platforms, reduced capital and labour commitments along with improved security, reliability and data protection.

This last point is probably the killer reason why you shouldn’t be looking for 80 percent cost savings with any product. As we discussed a while back, to go onto the cloud you have to trust your supplier has the utmost competence and integrity. A provider who offers nothing but slashed costs will struggle to provide peace of mind.

It’s likely in a few years time only the biggest of the biggest companies will have inhouse IT staff and servers as most business IT operations will run over the internet and through web browsers. Most businesses will think having IT staff on the payroll is as unusual as employing a full time plumber or electrician in the office.

Although we probably won’t get to bank those savings — as we’ve found with the roll out of IT services in the last 20 years, new industries will develop that will soak up the labour and create new cost centres. While today’s services may be 80% percent cheaper, just as today’s computers and mobile phone are 80% cheaper than those of 20 years ago, we’ll be using other services and the price of those will soak up a lot of those savings.

A bigger concern is for the cloud and software as a service industries themselves. If online services are identified as merely a cost cutting product, then these markets are going to be rapidly commoditised with a race to the bottom not dissimilar to what we’ve seen in the PC industry. Which will perversely mean security and reliability conscious businesses will keep their IT in house rather than risk it to a cheap charlie data service.

History’s shown that selling and buying cheap in technology is a mug’s game. So don’t get seduced by claims of ridiculous savings with any technology; be it cloud computing, telecoms services or any other line item. All too often that cheap price or massive saving hides some nasty traps.

Because of the compelling benefits cloud computing is the way businesses will go over the next few years but those who choose a platform simply because it appears 80% cheaper probably won’t be around to tell us about it.

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Does innovation scare customers?

US consumers ranked Facebook with airlines and cable companies in satisfaction. Is this because of innovation?

Read Write Web reports the 2010 American Customer Satisfaction Index found Facebook in the bottom 5% of trusted US companies. The article goes on to quote Larry Freed, CEO of ForSee Results, as saying “it’s clear that while innovation is critical, sometimes consumers prefer evolution to revolution”.

There’s no doubt Facebook’s many user interface and privacy changes have upset consumers however can this be blamed on “innovation”?

Perhaps Facebook’s problems were because those “innovations” largely didn’t benefit the site’s users and the few that did were poorly communicated.

For innovations to be accepted by the market they have to provide some benefit; generally people don’t like change and the old saw “if it ain’t broke, don’t fix it” applies. If something is working fine, then why make a change that isn’t going to benefit the people who use it?

An overlooked angle with social media platforms like LinkedIn, MySpace and Facebook is how their business model is more like a free to air commercial TV station where the users, or viewers, are not the customers; the advertisers are.

So to put Facebook’s recent mistakes in context perhaps we should be looking at how their innovations were aimed at improving things for their customers, the advertisers, but had the unfortunate effect of upsetting users who are the reason advertisers buy space on the site.

Perhaps Facebook’s changes didn’t upset their customers and, given users have stuck with Facebook despite their fall in reputation, it shows their innovations have actually delivered.

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Preparing for the industries that don’t yet exist

just as today’s kids are being educated for industries that don’t exist, business too have to prepare for those future sectors.

In 1999, the then Clinton administration Education Secretary, Richard Riley, said “We are currently preparing children for jobs that don’t yet exist…”

Last week’s COSBOA conference in Brisbane showed another aspect to that statement; in the next decade most businesses will be operating in industries that don’t yet exist and all organisations will using technologies yet to be thought of.

The day’s conference sessions reflected this with the topics consistentently coming back to technology; for instance, discussions on taxation coming around to e-tax and marketing covering e-commerce and social media.

In many ways, the emphasis on social media is a bit unfortunate because these tools are really yesterday’s news; Twitter has been available for three years, Facebook for six and blogs since the establishment of the World Wide Web in 1993.

The mobile Internet, location based services and augmented reality are the current frontier as described by Ben White, Optus’ Director of Strategy and Corporate Development in his keynote to the conference.

Darren Alexander of Launceston based company Autech emphasised this change later in a later forum by describing how his business has evolved over ten years and where technology was taking regional businesses. If you doubt the value of the National Broadband Network, have a chat to Darren sometime.

Also on that technology panel Mike O’hagan of mini movers  described how outsourcing and crowdsourcing has changed his, and others, businesses. This is something we’ve covered previously and discussed how this presents challenges to many established businesses.

While this means we’re in a great era of great opportunity, it’s also a time where the slow movers will fall by the wayside. When nearly 50% of businesses don’t have a website and where retailers are ignoring their customers moving online, you can’t help but think many of these enterprises are heralding their own doom.

On a national level this is clear as well. While I’ll leave the commentary on the politicians’ promises to small business at COSBOA to others, it should be pointed out that accelerated depreciation and small business ministers in cabinet are nice, but without an overhaul of the tax system that puts investment in Australian businesses and innovation on the same footing as passive investments like housing and shares then Australia’s investment structure is going to remain unbalanced and much of our business and intellectual potential is going to go untapped.

Australia’s national obsession with property and our dependence on raw commodity exports to finance a private debt habit put us in the same position as the business without a website. We need to be thinking properly about the future and equipping ourselves with the skills to deal with tomorrow’s technologies and the 21st Century world economy.

While in our own lives and businesses we can’t change national policy, we can prepare for the changes by being aware of the trends, experimenting with them and making the financial and management investment in today’s tools that are creating tomorrow’s industries.

Are you prepared to be part of the future?

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The downside of social media marketing

Social media is a great business marketing tool, but it has downsides as a Sydney jeweller learned

Until last Sunday, Facebook was working well for jeweller Victoria Buckley; the page for her store in Sydney’s upmarket Strand Arcade was generating sales and had a rapidly growing fan base from around the world.

One of the key parts of her marketing campaigns are porcelain dolls made by the Canadian designer Marina Bychkova. Her classic doll Ophelia features in the window displays, on posters in the store and on the shop’s Facebook page.

Ophelia is a little bit different to most dolls in that she’s naked and anatomically correct — she has nipples.

Last weekend Victoria received six warnings from Facebook about “inappropriate content” on her page. There was no indication of which images or text broke the rules or what would happen to her page if she took no action.

“The frustrating thing is I can’t pinpoint which images” says Victoria, who goes on to point out that over the year she’s used Ophelia in her marketing, including two large banners in the busy shopping precinct, she’s received no complaints.

“It’s all a bit arbitrary”, says Victoria “it only takes one anonymous person to click on the flag content button and there’s a problem”. Earlier this year her Flickr account was set to restricted because of Ophelia’s nudity.

To avoid problems, Victoria has blacked out any potentially inappropriate parts of Ophelia on the store’s Facebook profile and started a “Save Ophelia- exquisite doll censored by Facebook” group until she can resolve the issue.

But here lies another problem; she can’t find a way to contact Facebook. “It’s become an increasingly important part of the business” Victoria says of the Facebook page and “I just don’t know what’s going to happen to the site”.

Right now Victoria has no idea what is going to happen to her business’s profile. As she can’t talk to Facebook, she’s uncertain of the page’s future.

This uncertainty illustrates an overlooked issue with social media sites. All these services are proprietary, run by private organizations to their own rules and business objectives.

In many ways, they are like private mall owners. They are perfectly entitled to dictate what merchants and customers can do on their premises. If you don’t like it, you have no recourse but to take your business elsewhere.

As consequence these sites have a great deal of control over your online business, a lesson that’s been hard learned by many eBay and PayPal dependent Internet retailers.

A good example of what can go wrong are the Geocities websites. Ten years ago Geocities was a popular free hosting site used by many micro businesses and hobbyists. Just over a year ago the now parent company Yahoo! shut them down and all the data on them has been lost.

By relying another company’s Internet platform, you are effectively making them a partner in your business. That’s great while things go well, but you have to remember their business objectives and moral values are different to yours.

This is why a business website is essential; your traffic and all your intellectual property is too important to sit on another businesses’ website with all the risks that go along with that.

The lesson is that while using Facebook, Twitter and other Internet services are an important part of the business marketing mix, your business needs the security of its own website and all your marketing channels, both online and offline, should point to it.

Fortunately Victoria’s across that, she’s pointing her Facebook fans to her website telling them, “You can join my independent mailing list at this link, in case they get really stupid and close this group.”

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The collaborative economy

Should you help someone with a business idea even if they could become a competitor?

“I couldn’t help her, she might become a competitor!” said Nick* when I asked if he’d been able to help Angela* with a business idea.

That response, and the murmured agreement of everyone around us, broke my heart as Angela’s business experience could have helped Nick’s struggling operation.

Nick had taken the short term, narrow and reflexive view rather than listen and think through the opportunities presented by collaborating with Angela, a successful businesswoman who had recently sold her previous venture and was exploring new ideas.

As we discussed a few weeks ago, most business is now global. Instead of worrying about the guy up the street, most enterprises have to worry about what’s happening in the rest of the world. Business is now bigger than petty neighbourhood turf wars.

In many cases, identifying your business’s weaknesses and finding partners who have complimentary skills can grow everybody’s ventures and the overall market. This is particularly true in regional areas where locals are having to look outside their districts for the right skills and products.

To be honest, this issue is personal; one of my IT businesses was constantly hamstrung because I couldn’t establish relationships with other tech support companies. The companies I approached were happy for us to refer work to them but the idea of referring work back or, God Forbid, working together when we had complimentary skills was untenable.

As a consequence none of the businesses grew and everybody was a loser. That reluctance to collaborate between parties is one reason why the IT support sector is such a dog’s breakfast.

Nick’s reluctance to help and engage with other players may not kill his business but he’s lost a valuable resource that could have made his company’s growth easier. It’s a loss for everyone.

If your neighbours or friends have an idea, embrace them even if they could be a competitor, they may be the best allies you ever had.

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