This is Why Google Scares the Sh*t Out of Companies

Wow. I mean really, WOW! One announcement of a Web based product that is currently inferior to your product that only runs on a very limited number of devices and your company looses Billions of dollars. Wow.

This is what happened to TomTom and Garmin stock prices when Google announced Maps Navigation. I suspect their stock prices will come back *some* but not to their previous levels. A new bar has been set and it’s very, very low. There was a certain amount of value in those companies because there existed a barrier to entry: satellites, relatively expensive hardware, distributors, supply chains, etc.

Google had all of that or didn’t need it. New rule book and they made it up.

Now a similar announcement by a different company wouldn’t have had this effect. But it’s Google. And Google doesn’t play the way your company does. It doesn’t have the same cost structures and it has a major cash cow that can fund that free product for many years before it becomes profitable. Basically long enough to drive you out of business. (This reminds me of another company in the 80’s and 90’s)

Google scares companies. But Google is also starting to scare people. It was bad enough when the only real data they had on you was your publicly available data and your search history. But now imagine a scenario that Louis Gray is toying with, where someone goes all Google.

You run the Chrome OS, which is basically the Chrome Browser running on Linux. You use only the Google Docs product and of course Search and Gmail, then Google Chat and  Google Reader. Now throw in to that an Android phone with GPS and Maps Navigation.

Google knows every Web page you visit, every search you make and has your documents and email in their searchable database, plus they know where you are at any given point (because no one goes further than 10 feet from their phone anymore).

As a user you can control the products you use and where your data is stored (at least to some degree). But as a company how do you compete with this?

A few days ago  I suggested every company needs to be reevaluating all aspects of their business and I meant it.

Going even further back, two years ago (ironically when writing about Google and their effect on your business model) I suggested to disrupt your own business model. Don’t wait for Google or someone else to disrupt your model do it yourself. At least theoretically. This way you’re less caught off guard and maybe even come up with a whole new business.

HP did this when they launched their Ink Jet devision to compete with their highly profitable LaserJet devision. Google even did this when they launched Google Wave, which is *supposed* to be a replacement for email.

What does your disruptor look like?

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Pandora
Image by SqueegyX via Flickr

I’ve had a music blog (kind of) for a while now – Wall-Notes. I say kind of because it’s a pretty effortless blog. And honestly it’s more like a link blog.

When I listen to music in Pandora I figured out that there’s an RSS feed for the songs and bands you bookmark (not thumb up). For a long time I was pulling that RSS feed through FriendFeed and then into Twitter. Then I decided to pull that feed into Tumblr, which is the platform Wall-Notes is on. I love how the RSS feed pulls the album cover and info through. It’s very cool.

Yes, I know there are lots of music bloggers on Tumblr and there’s a “better” way to do it. I just don’t want to go through the manual steps. I want to automate the work flow of it.

I then feed that into Twitter and Facebook. Well last night Pandora rolled out a new feature to make posting to Twitter and Facebook much easier. The Facebook feature is especially cool because it lets your friends listen to the song you posted right there on your wall (this feature isn’t working for me right now but it’s new).

Share Pandora with Your Friends on Facebook, Twitter, and Beyond

myTouch_now_playing.jpg
When I think about my connection with music, I think about three impulses: the impulse to discover, the impulse to buy, and the impulse to share. Here at Pandora we’ve had the discover and buy bits covered for some time, but it’s been frustrating to use Pandora to share the music you’re encountering with your friends. You could send an email or embed a widget on MySpace, but in the age of Twitter and Facebook our offering has been pretty spartan. That all changed tonight.

Now this is all well and good but it doesn’t help my blogging efforts. My process is a little clunky.

What I’d really love: A Blog This feature like many other services have with the functionality they have in Facebook that allows readers to listen to the song I post right on the blog. Or if Posterous could work their magic with links from Pandora like they do with Video links and import RSS feeds and add the player, I’d switch Wall-Notes to Posterous.

This really seems like a big opportunity for Pandora or someone else to enable thousands of music blogs all with links and affiliate links.

For now I’ll tinker with Bookmarks and RSS feeds, unless one of you has a better idea for me.

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The Time I was Written Up for Blogging

blogger license plate
Image by Tac Anderson via Flickr

About a year and a half ago I was written up for blogging. It was kind of a weird moment and I’ve never really talked about it much. It wasn’t that big of a deal but I thought I’d share how it happened and what I learned from it.

I had been at HP for about 10 months (I’m kind of surprised it hadn’t happened earlier) and I wrote this post on the TechBoise blog. I had started the TechBoise blog before going to HP and kept it running the whole time I was there. (The formatting is a little wacky because the blog has been moved across a few different platforms and hosting sites.) The TechBoise blog was, and largely still is, the only place for local tech and startup news. I was basically part of the media. Granted I was the the weird kid that rarely got invited to anything but I knew all the reporters and worked with them to get local startups and the tech scene in general greater visibility.

So back in May of 2008 a local reported emailed me about the recently announced layoffs at HP. Instead of responding to him in email or by phone, I did what comes naturally to me and I blogged about it. This freaked out some people at HP. Now if you read the post I linked to you might be wondering what the big deal is. Well, there’s more. They had me pull the post which I was later able to repost after some edits. (Basically I had to take out the whole first part.) Here’s what was in the original post that isn’t there anymore:

I’ve been thinking how to respond to the recent stories about the “re-balancing” going on at HP, when Joe Estrella pinged me for a statement. Here’s my statement Joe, thanks.

When I talk about HP, I’m referring to the Imaging and Printing Group (IPG) of which the JaserJet Business (LJB) is a part of. Boise is the primary LaserJet sight. I should also state that any statements here are my opinion and don’t represent that of HP.

As an HP employee I don’t know a whole lot other than what management tells us. And as a publicly traded company they don’t tell non management employees much more than they tell the public.

Here’s what I do know:

  • Printers are in a much different Market than they were 10-20 years ago. (I really hope this doesn’t surprise anyone too bad.)
  • HP is still the #1 printer company by almost 50%, depending on how you slice the market.
  • IPG has had a hiring freeze on for a while now and is extending that hiring freeze into the foreseeable future.
  • Communications from upper management tells us that this is enough to avoid layoffs within LJB (take it for what it’s worth).
  • If there is any attrition don’t expect Micron type mass layoffs.
  • Don’t expect any growth at the site either.

I didn’t say anything technically wrong (this was all public knowledge) and the content isn’t what I got written up for. It was the timing and the reason for the post. <huh?>

Here’s what I did wrong:

  • Technically I responded to a “press inquiry” (nothing freaks out PR people more than employees talking to the press)
  • I talked about the layoffs and certain financial aspects of the company during the “quiet period”

Like I did then, some of you may be asking: “what’s the quiet period? It turns out that publicly traded companies can’t talk about certain things right before an earnings call. The SEC can actually fine companies big money for this.

Now anyone who knows corporate communications (which I now have a much better understanding of) will tell me that I still didn’t do anything technically wrong. The “quiet period” really only applies to people with enough insight into the business. (aka upper management with acronyms in their title starting with the letter ‘C’) It doesn’t technically apply to your average employee.

But HP has established a hard and fast rule that all employees have to follow the quiet period. This reduces speculation and helps prevent federal investigation (something HP has had issues with before).

I crossed that line. It was made clear in the company policies and I didn’t follow it. I didn’t break the rule on purpose, I just had a different context than management.

  • Joe was a reporter but we talked all the time about Boise tech. I didn’t think of his question as a “press inquiry” it was just Joe.
  • I had no clue what the quiet period was and if I had paid better attention to the employee training where they covered that or actually read the emails from corporate comms, I probably would have realized it.

Ultimately it was a valuable lesson. My action’s have consequences and sometimes bigger things are at play than just me and my opinions. There are people that comb the blogs and comments of blogs and Twitter and Facebook trying to piece information together about businesses. They’re called, reporter’s, analysts, bloggers and investors. And if the wrong thing, or enough wrong things, are said then those people draw conclusions and influence others actions And that can leads to a drop in stock prices and that can lead to a loss of jobs for people. I wasn’t worried about my job but there are other people that are less equipped to find other jobs or do there own thing. than I was.

It also taught me that companies need to learn to speak to employees in the context of social media. Having blogging guidelines for people who blog is not enough. You need to have a full set of social media guidelines. You need to help your employees understand not just why they can’t say (verbally or digitally) certain things but WHY they shouldn’t. Do’s and Don’ts are not enough.

I was fortunate that my manager understood the value that I brought to HP and that the failure represented a two way problem: I didn’t follow the rules but the rules didn’t make sense in my world. And as we move forward this is only going to get worse. Who’s a reporter? Who’s the media? Most bloggers don’t call themselves reporters. What about your friend with a blog? Any friends on Facebook have a blog?

You need to guide your employees not control them. You have to help them understand the WHY’s so they are better equipped to make decisions in a world that is evolving faster than our ability to even get a name on it, let alone make recommendations on how to behave in it.

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Facebook Fan Pages are the New Microsite

Facebook, Inc.
Image via Wikipedia

Facebook has been on a very steady yet steep growth trajectory for years now. They consistently innovate (even if it’s just copying what others do).

What can Facebook learn from Friendfeed?

They are relentless at adding new features and are constantly changing their user experience and how they display posts. They’ve changed it at least 3 times this year.

With The Homepage Redesign Influencers Once Again Become Influential

But things are really heating up in the corporate world as well. Despite the fact that Twitter seems to get most of the press, Facebook seems to get more corporate love. It’s probably because Facebook has more ways for brands to engage. Besides advertising you can have Groups and Fan Pages (although Facebook really wants you to have Fan Pages). And brands seem to have swallowed the hook. Fan Pages seem to be the new microsite.

Guitar Hero(R) Becomes First Videogame to Surpass One Million Facebook Fans

I subscribe to several PR Wire and Business Wire RSS feeds and I am amazed at how many companies issue press releases about their Facebook Fan Pages. It’s kind of sad really Everything from milestones like Guitar Hero passing a million fans to Crest launching a competition on their page.

Crest Whitestrips Advanced Seal Rewards Heart-Warming Holiday Moments with

Companies continue to launch apps for Facebook. This Atari announcement got me thinking, Atari + Facebook = Facebook Games. Makes sense. But no, Atari + Facebook = Photo editor? I’d expect that from HP or Kodak or Polaroid or a scrap booking company or something but not Atari. Oh well.

Atari Launches Its Social Networking Application With Creative Photo Editor:

It’s kind of crazy actually. We’re reaching that saturation point where Social Networking is becoming the “Xtreme” of the 2000’s. I’m not saying don’t launch campaigns on Facebook – if it makes sense. I’m not saying don’t link to your Facebook page in a press release, but do we really need a press release just to announce your Facebook page? That’s just kind of kind of lame IMO.

Community FirstBank Launches Facebook and Twitter Social Media Initiatives

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Why Business is Broken

Mechanical desktop typewriters, such as this U...
Image via Wikipedia

I believe companies need a complete overhaul from the inside out. From business models to internal and external communications practices. Why?

Our processes, organizational structures, communications practices, systems for measuring ROI internally and externally and the vast majority of our business models were created in an age of triplicate carbon copy paper, typewriters and inner-office memo’s.

The Business World and all that it entails was created in a time that is irrelevant to most of today’s work force. The few people for whom it may posses some level of relevance are mostly retired or planning to be as soon as their 401K’s bounce back enough.

This doesn’t just apply to the News and Music industries, it applies to every type of business.

I’m not advocating for a total rebuild. There are a lot of good practices that are tried and true for any environment. But if you’re not reevaluating everything right now you will be shortly.

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Why it doesn’t matter how big Twitter gets

Twitter
Image via Wikipedia

There’s a lot of chatter about the fire hose data deals Twitter is making and will continue to make.

The holy grail of data filtering in our over data flooded world is surfacing the quality content above irrelevant noise. This has proven to be the true value of Twitter. This strength is serious enough to be a credible threat to Google and the current search industry.

The real time web is the coolest thing to happen in our space in at least a few months. But it’s really, really cool. What’s really cool about Twitter is the value that it has unleashed through its API and partners. How big of a deal is Twitter’s API? Big enough to make a company built on that API a threat to more established businesses.

Just How Big Is TweetMeme Anyway, And Why Does It Matter?

Everyone is trying to take real time Twitter data and massage it into a useful, filtered news stream. Bit.ly has a new product on the way called Bit.ly Now. Digg is rebuilding the service from the ground up to take advantage of Twitter data in figuring out what’s hot sooner.

But it doesn’t matter how big Twitter gets.The value isn’t in the quantity of conversation or shared links its in the quality of the shared links.

Twitter power users are some of the biggest info junkies on the planet. The collective filtering power of all the geekiness is worth more than what Twitter is valued at.

It doesn’t mean Twitter is worth more because those valuable early adopters are fickle at best. But Twitter currently controls their mind share and add that to search related products like Digg or straight up search engines like Bing and the potential is only begining to be seen.

Web 2.0 Summit: A Conversation With Qi Lu. Bing Wave 2 With Twitter.

Qi Lu, spoke with Tim O’Reilly. He hit on some of his overall goals with Microsoft and search, but the real story was clear: The deal between Microsoft and Twitter to inject real-time tweets into Bing’s results. Yes, the deal is real and it’s a key part of what Microsoft is calling “Bing Wave 2.”

Things are about to get super duper interesting.

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My 3 Favorite VC Bloggers

I’m not involved in the VC world anymore but still love the field and find VC’s great BS filters for what’s happening in our space. I thought I’d share with you my 3 favorite VC blogs, although there are many more these three are the ones I would most recommend.

Most of you are probably familiar with Fred Wilson, and if your not you should be. Fred has some great advice I try and follow and every serious blogger should follow. This is from a Q&A he did with Technorati:

What’s your advice for aspiring professional bloggers?

Show up every day with something interesting to say and don’t be afraid to speak your mind.

Brad Feld with the Foundry group in Boulder has a great blog you should follow. He’s probably the single most intelligent VC’s regarding technology I’ve met. The guy’s a total geek and wicked smart.

Mark Solon with Highway 12Ventures is relatively new to the blogging scene but is already one of my favorite blogs to read. He is the single most trustworthy VC’s I’ve met and most startups that have worked with him will tell you the same. He’s also a total health nut and could kick my butt on a bike any day. Besides that he’s a great friend and it’s his birthday today. Happy 44th Mark.

The Highway 12 blog is especially relevant is you’re in the Rocky Mountain area but he covers topics every startup should read. Gems like this:

Don’t Let The Bastards Grind You Down | Highway 12 Ventures

“Who the hell do you think I am to tell you that your business won’t be successful?”

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Being a Social Media Ninja

I’ve blogged here almost every day but not yesterday. But I did post, A LOT not just here. Why? Well because I was putting into practice some of the things I’ve been talking about here and consulting on with my client. I actually got to get my hands dirty, something I don’t do much of lately when I’m just doing strategy for clients.

I got to help launch Microsoft’s first store yesterday. I’ll be down in California next week opening the Mission Viejo store too. It was a great experience. You can see everything I was doing here on the Microsoft Store Posterous site.

It’s been great and we’ve had some wonderful success I’ll share with you when it’s all said and done (I’ll also share some valuable lessons about dealing with haters and trolls) but for now I’ll leave you with a clip from a post I wrote back in July:

New Comm Biz  Be a Social Media Black Belt with Posterous

If you’re on top of things managing your social media you have a Twitter, Flickr and YouTube account plus a blog. If not go do that right now. Even for the most conservative companies out there, it’s pretty standard now to have Twitter, Flickr and YouTube set up. If you don’t and you think your company/client won’t go for it, try asking, you might be surprised.

If nothing else YOU should have a Twitter, Flickr and YouTube account. If not, I don’t know why you’re reading this.

Now to earning that Black Belt: (For the benefit of those with uber anal legal departments we’ll leave out blogs).

Assuming you now have all 4 of these accounts set up (Posterous, Flickr, YouTube and Twitter) go into your Autopost to Everywhere setting in Posterous and enable posting to these other accounts. You can also set to post to Vimeo, Facebook, Delicious, your blog and many other services, but we’ll focus on the big three because they’re the ones I use the most.

Now take a picture or a video on your phone and send to post@posterous.com. If you sent a picture, you just posted to Posterous, Flickr and Twitter. If it was a video you just posted to Posterous, YouTube and Twitter. Score!

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Twitter and Distributed Influence

Last month I wrote about the dillema TechCrunch found themselves in after TwitterGate. The problem arose when Twitter removed TechCrunch from their Suggested User List (SUL). It now seems that Twitter has recently taken TechCrunch’s key rival, Mashable, off the list as well.

This gives us an interesting point of comparison. The first graph here shows Twitter follower count for both TechCrunch and Mashable through August. Total flat line for TechCrunch as Mashable continues to grow.

Then we see what an extra month brings. Notice anything interesting? Yes, TwitterCounter got a face lift but do you see something else? On the 3rd of October something happened to both accounts. There’s a noticeable bump as TechCrunch begins to gain followers. There’s also a very slight change in Mashable’s trajectory. It’s very small and not quite equal to TechCrunch’s new growth but I find this deliciously fascinating that it happened on the exact same day. My guess is that this is the day Mashable came off the SUL. That would explain the slowed decline but why TechCrunch’s rebound? It could be that when people no longer were recommended Mashable they began looking around for their tech geek news. This is pure speculation of course.

TechCrunch vs Mashable

TechCrunch vs Mashable

The bad thing about Compete is that it lags a month behind. We don’t have current traffic data but let’s look at what an extra month of Mashable on the SUL did. Here’s the last report.

As expected TechCrunch continued to loose traffic and mashable continued to grow. I find it interesting that both of their trajectories accelerated. I’m very, very curious to see what happens with next months data. Will TechCrunch begin to rebound? Will Mashable’s growth slow? Any bets? My theory is that we’ll see their site traffic begin to mirror their Twitter follower growth.

TechCrunch vs Mashable Web

TechCrunch vs Mashable Web

I talked about the immense power this gave Twitter. Apparently like revenue, Twitter isn’t comfortable with that power. At the Web 2.0 Conference Ev revealed that the new feature, Twitter lists that are still in beta will replace the SUL.

This effectively distributes the power that Twitter holds and spreads it over it’s millions of users. While Twitter looses the direct influence it held, I’d argue that the accumulation of all those distributed lists is greater than the the one individual list.

This has always been Twitter’s strength. Taking the accumulated power it holds and distributing that freely across it’s network. They’ve done this with app developers, users – everything really.

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How to Predict the Future

Create it!

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