Category: business advice

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.

Similar posts:

  • No Related Posts

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?

Similar posts:

  • No Related Posts

The basics of service

Cathy’s saga shows how people skills are as important as competency when you’re running a service business. You need manners and respect to match your skills.

Of course, if you don’t have any skills to start with, you might want to consider doing something else.

Recently I wrote about the things you should look for when choosing an IT service provider. Shortly after writing that column I caught up with Cathy (names changed to protect the guilty) and found out what happened in her search for a tech.

The results weren’t pretty and the reasons why are a lesson for anyone in a service industry. Let’s start with the most fundamental.

Respect
I find it hard to believe I actually have to write this, but I’ve seen it too often myself. Cathy’s first computer tech treated her with contempt and didn’t listen to her problem and needs.

You might think your clients are beneath you and maybe you are right. After all, that dumb customer doesn’t know how to use a mouse, fill in a BAS, fix a cistern or carry out root canal therapy.

But that dumb customer also pays your wage, so quit the attitude and show some manners and respect.

You should also respect your competitors, a point I forgot in last week’s column. Scoffing at the previous guy’s work is bad form and good clients will show you the door if they have any sense.

Competence
Don’t take on jobs you don’t understand. This is particularly common with computer techs who have a habit of saying: “yeah, I can fix anything” when a client calls.

In Cathy’s case she had a Windows 2003 Small Business Server which superficially looks like Windows XP but is a very different beast under the bonnet. The tech was experienced enough to know better.

Funnily, the tech I referred to Cathy declined the job because he felt her requirements were outside his skills. If the first guy Cathy called had shown the same humility and competence it would have saved everybody a lot of distress.

Appearance
In an industry known for cowboys, wearing boots that would look straight out of Rawhide is a big mistake. Clients are conservative creatures and many will turn away if you are too different to their expectations.

Dress how a customer expects you to dress- an accountant wears a suit, a computer tech has the blue shirt, dark pants combo and a bricklayer wears a pair of stubbies revealing more than you care for when the brickie bends over.

When you’re in an industry where people are afraid of being ripped off, showing up in a flash car confirms their fears. Leave the Porsche at home and show up in a cheap hatchback, the things are easier to park anyway. As you’ve probably guessed, Cathy’s tech drove up in a Mercedes.

Billing
Last week I advised avoiding the “no fix-no fee” crowd. However, that’s different from standing by your work.

If you’ve screwed up, as Cathy’s tech did, then bleating: “I sweated for you” is plain silly. If the customer is unhappy, waive or discount the bill.
Sure, sometimes you end up copping the pain when an unreasonable customer complains but billing issues are a reliable early warning a client is going to be a major pain. Refund their money and get them out of your lives.

The story does end well though. Finally Cathy found someone who was polite, competent and barely raised an eyebrow when they saw the mess made by the first tech.

Cathy’s saga shows how people skills are as important as competency when you’re running a service business. You need manners and respect to match your skills.

Of course, if you don’t have any skills to start with, you might want to consider doing something else.

Similar posts:

  • No Related Posts

Saving your technology relationship

Like it or not, your businesses is married to technology and often that marriage is not a happy one. Tech support is like a counsellor to your IT relationship; a good one will save you a lot of drama, stress and tears.

Like it or not, your businesses is married to technology and often that marriage is not a happy one. Tech support is like a counsellor to your IT relationship; a good one will save you a lot of drama, stress and tears.

When a friend asked about changing IT support for her organisation last week I had to give the question some thought as switching service companies isn’t something you do rashly.

The first problem she presented was price. She was worried the quotes she’d received and the hourly rates were more than her own charge out rate.

On that front the advice is simple – get over it. Your doctor and plumber charge more than most peoples’ hourly rates and a good tech will save you a fortune in therapist and data recovery charges. So we’ll leave price to last and look at the other factors;

Confidence

Do their staff inspire confidence? The truth is support is as about trust mort than it is about competence. You have to trust the tech with your valuable data and systems.

The first step in establishing confidence is how they answer the phone. Are they polite, informed and prompt to return calls?

If they don’t care about you when you make a sales enquiry, you can be pretty sure they aren’t going to be helpful when you have a computer disaster.

So if you don’t like their phone manner, look elsewhere.

Presentation

They say looks don’t count for much. They are wrong when it comes to support.

Tidy, well dressed techs and a well presented web site indicate a business that takes itself seriously and is more likely to treat your needs as important.

Curiosity

Every business is unique in its own way and a good support company will ask lots of questions when arriving at a new site. Confidence inspiring questions include your business objectives, how you use technology and where it is currently frustrating you.

Questioning along those lines indicate people who want to know where technology fits in your business and how you can get the best return on your investment. Techs that ask those questions are worth a lot to you.

A good tech isn’t a “yes” man or woman. If your brother in law who knows something about computers has suggested something truly stupid then a trustworthy advisor will point you in the right direction rather than just agree with you. So take polite disagreement as a very good sign.

Training

It never ceases to amaze me how the tech support industry doesn’t train people. The vast majority of techs don’t get formal training and most support companies, particularly at the SME level, give their staff little preparation for new systems.

This means lower charges for you, but lousy service. Which is another reason why price should be the last of your concerns. Ask your prospective support provider what training they give their staff.

Outrageous claims

Be careful of silly claims. One of my favourites was a dodgy business a few years ago that claimed “all our technicians are qualified computer programmers” which is the same as an electrician advertising “all our staff are licensed forklift drivers”.

A similar thing applies to “no fix, no fee” claims. Avoid any company advertising they won’t charge you if they can’t figure out the problem as you’re paying a new operator to learn on your system.

Claiming to support big corporations is often the mark of a new, naïve business. Usually that indicates the owner once worked as a contractor for a company that setup that BigCorp’s desktops. Treat those claims with disdain unless it is a big support outfit with accordingly high charges.

24/7 service and two hour callouts are fair enough if you are prepared to pay for them. Be careful though when dealing with smaller support outfits as they can struggle to meet these promises.

Charging structure

Unethical support companies love the large billing unit. So avoid companies that charge in 30 or 60 minute blocks as these encourage techs to pad out basic jobs. A fair unit is ten or fifteen minute periods

The best plan for a business is a regular support contract which includes a basic level of services per month. These often include a base number of technician’s hours, either onsite or remotely. Review the hours regularly as you can overpay for time you don’t need.

Price

Finally we get to where most clients fall down. Good support companies that train, support and reward good staff have high overheads and the corner cutters will always be substantially cheaper.

You should be prepared for rates in excess of $150 an hour, with discounts for bulk purchase and fixed fee support contracts, the longer you are prepared to enter into a contract for the better the discount.

By all means shop around but don’t fixate on price, the company that charges $180 an hour to provide a qualified, experienced tech is far better value than outfit charging $60 an hour to provide a part time student working for beer money.

Don’t be surprised or offended if the really good support companies tell you they can’t help. Many choose businesses they can help and decline those who they don’t believe are a right fit for their skills. If that happens, ask them if they know of someone who is a better fit for you.

The relationship between technology and business is often complex, but its not one most businesses can neglect. Make sure you’re investing the right people and expertise in your systems.

Similar posts:

  • No Related Posts

Why innovation rises during a recession

Steve Lohr in the New York Times looks at how innovation rises in downturns. Are the various stimulus packages a roadblock to innovation?

Steve Lohr in the New York Times reports R&D budgets increased for 900 of the United States’  1,000 largest corporate spenders on research and development.

What stands out is how patent applications rise during economic downturns with an increase of 25% in the 1929-32 period. Steve goes on to point out;

The Depression years yielded fundamental advances in technologies of the future like television, nylon, neoprene, photocopying and electric razors, according to the Thomson Reuters analysis.

A similar trend is true around later, far shorter recessions, when basic work on personal computing and later Internet-related technologies were done.

In this respect, economic downturns are necessary as they clear out the old, inefficient industries and allow new ideas and businesses to take hold.

While governments had to do something to avoid a massive depression when the capital and trade market froze in late 2008, is the propping up of debt laden industries like banks, housing companies and auto manufacturers  going to act as roadblock to new ideas and businesses?

Just a thought.

The Depression years yielded fundamental advances in technologies of the future like television, nylon, neoprene, photocopying and electric razors, according to the Thomson Reuters analysis.
A similar trend is true around later, far shorter recessions, when basic work on personal computing and later Internet-related technologies were doneThe Depression years yielded fundamental advances in technologies of the future like television, nylon, neoprene, photocopying and electric razors, according to the Thomson Reuters analysis.
A similar trend is true around later, far shorter recessions, when basic work on personal computing and later Internet-related technologies were done.

Similar posts:

  • No Related Posts

The value of communities

Businesses are just as much a part of the community as individuals. Cherishing and growing your businesses community of friends and supporter can reap big dividends.

Sydney’s Growthtown evenings are an irregular gathering of entrepreneurs discussing challenges facing fast growth businesses, and always a stimulating night with founders telling how they dealt with issues as diverse as setting up US operations, finding investors and exiting a successful venture.

Last week’s event featured Marketing Angels’ Michelle Gamble explaining how she uses the brand pyramid to help her clients and Kylie Little, founder of Essential Baby, describing the journey from a business idea to exiting from a big business buy out.

Kylie’s story of Essential Baby’s early days resonates with anyone who has started a business after the arrival of a baby. It’s always a relief to find you’re not the only one who thought it’s possible to run a business while your blissful cherub sleeps contently for most of the day.

In many ways, Essential Baby’s story describes the dream exit for many entrepreneurs, or at least most venture capital funders, with the website being bought out by Fairfax.

Interestingly, Kylie’s tale about what happened after a big organisation bought her business has some similarities to Lars Rassumussen’s experience of Where 2 Technologies’ absorption into Google.

The cultural shock of moving from an independent start-up to being part of a bigger organisation is huge and the problems can’t be underestimated. So there’s a lesson on being careful what you wish for.

One part that shone through both Kylie and Michelle’s presentations was how important communities are to a business. It’s often easy to think businesses are stand-alone entities, proudly independent of the world around them.

In reality every successful businesses relies on groups of supporters, be they customers, suppliers, financiers or just simply fans. Businesses need communities just as the community needs them.

Communities aren’t just generated by Twitter followers, witty blog entries or clever search engine optimisation, it takes credibility, honesty and doing the right thing by those around you.

So who are your communities and what are you putting into them? You may find those groups are your business’s most important assets.

Similar posts:

  • No Related Posts

The new global businesses

The business of going global is even easier than before. Services like Magcloud, Createspace and remote access tools are making it easier than ever to get a product out to the world.

It’s old hat to point out the internet is changing business and globalisation is making the world smaller. But last Tuesday I saw three businesses that showed just how profound these changes are.

That Tuesday morning Mark Fletcher’s Australian Newsagency Blog had a post about the Strange Light Magazine, a collection of photos around Sydney during the recent dust storm.

Some notable points about Strange Light – it was self-published in 31 hours using HP’s Magcloud, the photos were all sourced from Flickr and Derek Powazek, the publisher/author, did everything from San Francisco.

Publishing on demand using services like Magcloud and Amazon’s Createspace is worthy of many blog posts in themselves. Derek’s story of Strange Light on his own blog is a terrific step-by-step guide to creating a self-published magazine. Notable are his points about obtaining permissions and proof reading.

It isn’t one-way traffic between California and Sydney, Australians are also doing business in the US without leaving home. The same day I read the Strange Light story, I had a coffee with Andrew Rogers from Sydney’s Anchor Systems, who set up a new data centre for US-based developer management system, GitHub.

All of GitHub’s hardware is in the US and their new data centre equipment came completely bare, without operating systems or software. Andrew’s team was able to build, configure and test the systems from their Sydney office.

The fact GitHub were prepared to accept a quote from a business 11,000km away and have full confidence the job could be done from across the world shows just how distance no longer matters to forward-thinking enterprises.

Finally, that day I managed to catch up with an old contractor who now runs a remote support business for homes and small offices. You call him and he logs into your computer to fix the problems.

Nothing particularly special there except he operates out of Thailand. So he gets to run an Australian business from a Phuket beach hut. He has business he enjoys without sacrificing the lifestyle he wants.

These entrepreneurs are showing how the globalised economy is really working. Each are using freely available tools that allow individuals and small teams to offer their talents across the world.

You might want to have a look at the tools which are revolutionising your industry, you can be sure your competitors around the corner and around the world are already doing so and might soon be offering innovative new ideas to your customers.

Similar posts:

  • No Related Posts