Archives for September 2006

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Lame Half-steps at HP

  • Patricia Dunn continues as Chairman of the Board for 4 months.  She should be out immediately.
  • She will remain on the Board as Director even after January.  What a joke.
  • Mark Hurd will be the new Chairman while keeping his CEO position. He may be the savior of HP and untainted by the current scandal, but the separation of CEO and Chairman roles is a fundamental principle of good Corporate Governance.

Bad. Bad. Bad.  I guess Robert is right: HP still has a major ethical problem.

Update (9/12): Management guru Tom Peters weighs in: 

“Your watch. Your responsibility. That’s the whole damn point of a chain of command—in Iraq or Palo Alto.
Step down, Ms Dunn.”

(hat tip:Paul Kedroskyy)

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The End of the Internet

Please read this Public Service Announcement.
(hat tip: Brian Solis)

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SVASE VC Breakfast Club in San Francisco

I’ll be moderating another SVASE VC Breakfast Club meeting on Thursday, Sep 14th in San Francisco.  As usual, it’s an informal round-table where up to 10 entrepreneurs get to deliver a pitch, then answer questions and get critiqued by a VC Partner. We’ve had VC’s from Draper Fisher, Hummer Winblad, Kleiner Perkins, Mayfield, Mohr Davidow, Emergence Capital …etc.

Thursday’s featured VC is John Parsons, General Partner, The Halo Funds. The Zvents post has all the info and a map, and if you plan to attend, please register here.

These sessions are a valuable opportunity for Entrepreneurs, most of whom would probably have a hard time getting through the door to VC Partners. Since I’ve been through quite a few of these sessions, both as Entrepreneur and Moderator, let me share a few thoughts:

  • It’s a pressure-free environment, with no Powerpoint presentations, Business Plans…etc, just casual conversation, but it does not mean you should come unprepared!
  • Bring an Executive Summary, some VC’s like it, others don’t.
  • Follow a structure, don’t just talk freely about what you would like to do, or even worse, spend all your time describing the problem, without addressing what your solution is.
  • Don’t forget “small things” like the Team, Product, Market..etc.
  • It would not hurt to mention how much you are looking for, and how you would use the funds…
  • Write down and practice your pitch, and prepare to deliver a compelling story in 3 minutes. You will have about 5, but believe me, whatever your practice time was, when you are on the spot, you will likely take twice as long to deliver your story. The second half of your time-slot is Q&A with the VC.
  • Last, but not least, please be on time! I am not kidding… some of you know why I even have to bring this up.

Here’s a participating Entrepreneur’s feedback about a previous event.

See you in San Francisco!Zbutton 

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Size Matters

Apparently Katie Couric is not the only one who can easily lose 20 pounds by some photo-processing wizardry. The magic is available to anyone, and it does not even require a conspiring press department, or even Photoshop knowledge.

The slimming goodness comes to you thanks to HP, the company that introduced a line of digital cameras that can slim anyone’s waistline.

The demo video on HP’s site is worth watching. (hat tip: Ho John Lee).

I see unlimited potential here: if you can slim, why not add, too, at the right places? We can all have a custom-tailored body. And to be PC and balanced, yes, guys could use some “enhancement” too… no, not *that* ..Were talking about decent pics here…although reading this, who knows what the norm is anymore….

Well, since you brought it up, how about 9 inches? Isn’t that too big?

(Seeing the photo of The Swiss Army Giant Knife) I think we can agree that 9 inches are too big to be useful…

Back to the HP cameras, this is the kind of enhancement I had in mind, but without the steroids or hard work. Oh, and not in 12 weeks, but 12 seconds.

Warning to journalists, writers and corporate Board members: if you received a camera as a gift from HP, have it *de-bugged*. According to leaks from usually well-informed sources, some units included HP’s experimental feature: the camera may listen in on your electronic communication and secretly report back to HP HQ.

Update (827/07):  According to this TechCrunch story, FotoFlexer now allows you to make body parts look larger or smaller 😉

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Your Neighborhood Bank Becomes Your Trusted SaaS Provider

If you’re like me, you haven’t talked to a bank teller for years, in fact haven’t set foot inside a branch for a long time. Why should you? You do all your banking online. (?) But you probably wouldn’t think of your bank as *The* Software as a Service provider to run your entire small business…

That’s exactly what Fokus bank pulled off in Norway, in cooperation with 24SevenOffice and Bluegarden. The new, innovative bundle is probably the first of its kind in the World: single sign-on Web solution for your banking and all other business software needs. (hat tip: Espen Antonsen)

Let me reiterate: it’s not just online banking, but a full hosted business system. Given all the trouble I had just getting Quicken / Microsoft Money to work with several major US banks, I have a hard time imagining them come forward with such revolutionary offering. Key benefits to:

  • Customers
    • Trust, security. SaaS is not as widely accepted in Europe as in the US, and certainly the key issue is that flexible new products come from lesser known smaller providers, which SMB’s see as a major risk. Having the bank manage your data is a reassuring solution.
  • The Bank
    • Customer retention, in fact competitive advantage to attract businesses away from other banks. In a world when it’s easy to switch banks for the sake of higher interest, Fokus will have a virtual lock on its customers: that of convenience.
  • 24SevenOffice
    • Access to Fokus banks 200,000 customers; prospectively using it as a vehicle to penetrate the Danish Market since Fokus is owned by Danske Bank. Marketing/PR value of launching a “World First”

This is not the first innovative deal coming from 24SevenOffice: previously they teamed up with Telenor, a leading Scandinavian telco to create a 3G “Mobile Office“.

I’ve been following 24SevenOffice for quite a while (and have received occasional updates from Staale Risa, COO), largely due to my obsession with “Enterprise” functionality to small businesses. I can count on a single hand (two fingers?) the number of All-in-One SaaS providers with comparable breadth of functionality: CRM + ERP + Office .

My only wish is that the company entered the US market sooner. Recently they launched an International version, accessible to US customers, but frankly, that’s about the one thing coming from 24SevenOffice that I am unimpressed with. It removes the key value proposition of being a full-rounded, integrated solution ( a’la NetSuite but more) and positions the system as a lower-cost CRM competing head-on with SalesForce.com. Well, I have news for my European friends: this version does not compete with Salesforce, but with the dozens of other challengers. Personally, I think it’s a marketing blunder.

That said I know the company is working on porting their full system (think accounting, HR ..etc) to US requirements and a full blown US launch is in the works …. stay tuned.

Update (9/8): To access the full 24SevenOffice site, trick the system by selecting a European country, e.g. the UK. You still have to do some digging, a lot of logistic functions are hidden under Financials.
There’s also a neat demo here.


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Wired Wiki, Numbskulls and Collaboration in Business

The Wired Wiki experiment is over – the collective result of 25 ad-hoc “editors” is now published on Wired News: Veni, Vidi, Wiki

Was the experiment a success? I think the process itself was, but not necessarily the end result. After the LA Times Wikitorial fiasco the very fact that for a week civility reigned and no wiki-war broke out is a success, as both journalist Ryan Syngel and wiki-host Ross Mayfield confirm. But of course measuring success simply by the peaceful nature of the editing process means significantly lowering the bar… how about the result, the actual article? Ryan’s take:

Is it a better story than the one that would have emerged after a Wired News editor worked with it?
I think not.
The edits over the week lack some of the narrative flow that a Wired News piece usually contains. The transitions seem a bit choppy, there are too many mentions of companies, and too much dry explication of how wikis work.

In other words, it’s more an encyclopedia entry than an article, concludes Mathew Ingram: is has a lot of information (perhaps too much), but it lacks personality. Ironically, other than the different styles of the individuals editors, the desire for a successful experiment may have contributed to the outcome. After a few revisions you reach a point where the article can’t be improved by simply adding lines – some parts should be deleted, others my not feel correctly structured.

Personally I’ve been struggling with adding an idea on the organizational/human factor in a corporate environment, which logically would belong under the “Wiki while you work” heading, except that someone already started the thought under “When wikis fail”. Should I disturb what’s there, or stick my piece in the wrong place? I suppose most editors faced similar conflicts, and compromised in order to avoid starting a wiki-war – but that’s a compromise on the quality of the final article. (note: I ended up restructuring the two paragraphs).

Mike Cannon-Brookes hits the nail on the head pointing out the role of incentives:

I’d say simply that the interests of the parties are misaligned. Ryan wants the article to say something about the wiki world. Wiki vendors want a link from Wired.com. Certainly, wiki vendors want it to be an accurate piece – but they also want it to be an accurate piece with them in it. Amusingly, the recent changes page reads like a whose who of the wiki world.

This misalignment of incentives leads to bloated, long lists of links. The article trends towards becoming a directory of wiki vendors, not a piece of simple, insightful journalism.

Collaboration works best if there is a common purpose. Wikis shine when it’s not the discussion, individual comments that matter, but the synthesis of the collective wisdom.

Where else could the interest of all parties best aligned than in the workplace? As Jerry Bowles correctly points out, social media in a corporate environment is very different from social media in the public web. After the initial “grassroots movement”, if management fully embraces the wiki not as an optional, after-the-fact knowledge-sharing tool, but the primary facility to conduct work, it becomes the fabric of everyday business, is used by people of real identities and reputations, and most importantly shared objectives.

This is why Nick Carr is so wrong in Web 2.0’s numbskull factor. He supports Harvard Prof. Andrew McAfee‘s point of extrapolating the low contributor/reader ratio of Wikipedia into the corporate world and concluding that fractional participation will result in the failure of social tools. He goes a step further though:

“In fact, the quality of the product hinges not just, or even primarily, on the number of contributors. It also hinges on the talent of the contributors – or, more accurately, on the talent of every individual contributor. No matter how vast, a community of mediocrities will never be able to produce anything better than mediocre work. Indeed, I would argue that the talent of the contributors is in the end far more important to quality than is the number of contributors. Put 5,000 smart people to work on a wiki, and they’ll come up with something better than a wiki created by a million numbskulls.”

This is actually reasonably good logic, with one major flaw: it takes the Wikipedia example too far. A wiki in the Enterprise is not an encyclopedia; not even some esoteric Knowledge Management tool. In fact, even though wikis solve a Knowledge Management problem (lack of input and GIGO), they should not be considered KM tools at all at the workplace. Typical KM is concerned with the collection, organization and redistribution of knowledge after-the-fact, while the wiki becomes the primary platform to conduct everyday business tasks, and resolves the KM-problem as a by-product.

Update (6/15/08): Now we have pretty good terms to describe the above, instead of my lengthy explanation. See the discussion on In-the-Flow and Above-the-Flow wikis by Michael Idinopulos and Ross Mayfield.

I have news for Nick: not everyone can be in the top 20% of the corporate workforce – by definition *somebody* will have to belong to that *other* 80%. Are they all numbskulls? So be it.. that is your workforce, like it or not. With the elitist KM view Nick would actually be right:

“As earlier knowledge-management failures have shown, the elite often have the least incentive to get involved, and without them, the project’s doomed.”

True. Except when the wiki is the primary work / collaboration platform, participation is no longer optional. Not when the answer to almost any question is “it’s on the wiki.” A basic conclusion that even the numbskull-editors of the Wired article have recognized.

Update (9/7): I love Rod‘s cartoons:

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Blogger Hypocrisy

I can’t help but laugh at the hypocrisy of the blogger who posts this:

FUCK YOU

and allow me to add

 

but has this reminder at the “leave a comment” area:

Be nice or be gone. If you disagree with me or a commenter then attack the idea not the writer. If you can’t be nice don’t bother writing as I won’t post it.

How pathetic… and no, I am not linking to him.

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Excel’s Birthday: from Adulthood to Early Retirement

Excel has become of legal age today: it was first introduced on this day, 21 years ago, reminds us the Zoho Blog.  

 There are some surprising facts in Wikipedia’s history of Excel entry: the first version, released in 1985 was actually for the Mac, and the first Windows version was only released 2 years later.  While it sounds unrealistic for a Microsoft product today, back then it was rather logical:  The PC platform (DOS) already had a dominant spreadsheet solution: Lotus 1-2-3.  In fact Lotus became the IBM PC’s killer app, the very reason to use a PC at all.   The market was Lotus’s to lose, and they did so in the years to come, by not migrating early enough to the Windows platform.

I’m going to reveal a personal secret here: my current knowledge and usage of Excel is probably still on the level of Lotus 1-2-3, and I don’t suppose I am alone.   I suspect instead of the popular 80/20 rule a 90/10 rule applies here: 90% of Excel users don’t need more than 10% of it’s functionality.

Which is why Excel can celebrate becoming an adult, then retire immediately as far as I am concerned.  I’m already “inthe cloud” and am quite happy with the ease-of-use, accessibility, availability and ease of sharing/collaboration using Zoho Sheet.  Of course I am not entirely condemning Excel to retirement: it will still have a part-time job, for the “hardcore” users that need the myriad of more sophisticated functions. 

If you’d like to find out more about office tools, collaboration, just how Microsoft Office and the Office 2.0 suites can co-exist, there’s no better place to turn but the Office 2.0 Conference – see you there!

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Tax Loopholes, Shoddy Patents and Wikis

Can you possibly get a patent on tax-avoidance advice?  Apparently yes, says Jeremy Kahn at Fortune:

“In recent years, the Patent Office has begun granting patents to people who claim to have invented novel ways of avoiding taxes.

To tax shelter touts, the patents are a potentially deceptive new marketing tool. After all, if something is patented, it sounds as if it is government-approved. But just because something is patented doesn’t mean it’s legal.”

“Earlier this year, a Florida company called Wealth Transfer Group filed suit against John Rowe, the executive chairman of Aetna, alleging he infringed on the patent it holds for a tax savings technique involving the transfer of stock options to a certain type of trust because he used a similar technique without paying Wealth Transfer a licensing fee.”

This is utter nonsense and the consequences are dire. Tax advice as not that far from any other type of legal advice, and this goes directly against the logic of Case Law.

“If you can patent an interpretation of the tax law, why not patent anyone’s legal advice?” asks Carol Harrington, a lawyer with the firm McDermott Will & Emery in Chicago. “Then you could say people being prosecuted for murder can’t use a certain defense without paying a licensing fee.”

A practical concern is the Patent Office’s ability to make the right decisions: it has very few examiners with deep knowledge of tax law, especially of “creative technics” – just like it feels outdated in technology, software issues.  Add to this the explosion in the number of patent applications “leaving examiners only 20 hours on average to comb through a complex application, research past inventions, and decide whether a patent should be granted.”

An unlikely alliance of Government and the largest Tech Corporations may soon bring the power of social computing to deal with this epidemic of shoddy patents.   New York Law School professor Beth Noveck came up with the idea of letting outside peer reviewers participate in the patent examination / review process in a Wikipedia-like system. 

The professor is getting technical help from IBM, and the Patent Office expects to run a pilot in 2007 on a few hundred patents applications made available by IBM, HP and Microsoft.

Another example of wikis put to good use. 

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