Jan 16, 2011 | Change, Marketing, Social Media
Social media to many “50 something’s” who run most of our large businesses, is just code for wasting time that should be spent productively, but the reality is that social media is rapidly evolving into a potent business tool in several pretty fundamental ways.
- As we can see what is needed, and where far more quickly, the old resource allocation processes have become totally redundant. Allocating resources based on a plan now 12 months old is, as my kids would say “so 20th century”, it needs to be done in response to things happening NOW, and requiring response. This has huge implications on the way organisations democratise decision making at the front lines of market contact.
- As social media becomes more dense, it opens opportunities for collaboration not possible before. This is particularly potent in its ability to immediately mobilise numbers around a cause, location, or combination of both.
- Geographic barriers are no longer relevant as an organising principal. Most multinational businesses face this fundamental change in the dynamics of their organisational structures, but so to do social organisations such as the church.
- The power of social media as a marketing tool is only just starting to be recognised. We have long understood that personal recommendation is the best endorsement you can have, and the web can now offer an electronic version of the recommendation qualified by numbers and independence. Amazons system of recommendations shows the way.
And now, Hollywood has made a film about the beginnings of Facebook, and the motivation and foibles of its founder, surely, that is a sign that social media is now of age.
Jan 13, 2011 | Collaboration, Innovation, Leadership, Marketing, Strategy
Pixar is amongst the great “innovation factories” of recent decades, along with PARC, 3M, Apple, and a very few others. Part of what makes Pixar so effective is a question answered in this McKinsey interview with Brad Bird, the director who won two Oscars with “Ratatouille” and “The Incredibles” after joining when Pixar had achieved enormous breakthroughs with “Toy Story”, “Finding Nemo”, and other smash hits.
The core of his success has not been just the great people, but the environment created for them to work in, the processes evolved to manage the execution of creativity, and the restless curiosity and determination to be better, every time.
Jan 11, 2011 | Customers, Innovation, Marketing, Social Media, Strategy
If I were managing a business in financial services, I would be asking myself if I had missed the second wave of the “net-boat” that is rapidly becoming a force in financial services.
Banks and other financial institutions have reduced their costs enormously by leveraging the capabilities of the net to receive and process payments electronically in developed countries, but even there, PayPal has carved a growing share of transactions, but more importantly, opened relationships with millions of customers who use the web for shopping. Just as the retailers missed the potential of consumers to use the web to seek the best prices, banks have allowed PayPal to build a customer base to pay for them.
In the developing world, millions are not serviced by the financial infrastructure of the developed world. predictably, alternatives are emerging, powered again by the web, and businesses that have no existing financial services infrastructure to protect, are able to move quickly to provide a cost effective and easy to use service to customers and potential customers not serviced by banks.
It is unlikely in my view that banks will become the recording companies of the early 2000’s and ignore the competitive threat until it is almost too late, but their influence, particularly in the developing world will be substantially diminished from what it could have been.
Jan 11, 2011 | Management, Uncategorized
A great irony amongst the many I see, is that the skills required to produce a right answer are exactly the skills you need to recognise what a right answer looks like.
Put another way, our incompetence in a field masks our ability to recognise our own incompetence.
This irony has been observed by many, Charles Darwin and Bertrand Russell amongst others, but was systematically investigated by two Cornell University psychologists, and has become known as the “Dunning-Kruger effect“. The obvious corollary is that knowing what you do not know is usually a sign of intelligence.
Dunning and Kruger demonstrated this effect is as prevalent amongst educated people as it is amongst those with seemingly less training that may enable them to see their own weaknesses.
In today’s connected and service oriented developed world, this effect when combined with a slick presentation, and loads of self confidence can be a real trap for the unwary, just look at those sprouting financial and stock market certainties just before the GFC hit.
So, next time you hear or see someone sprouting stuff you do not understand, no matter how slick it may appear, make sure you rectify that lack of understanding before you put your hand in your wallet, alternatively, get the hell out of Dodge.
Jan 9, 2011 | Innovation, Leadership, Social Media
Ideo is an ideas factory, its stock in trade is ideas and the resulting products, that others commercialise. As such, it has been a lab or case study in how to innovate as they have grown. As a small business, they all knew each other, collaboration happened as a part of the DNA of the place, but growth and geographic spread made it increasingly difficult, so they set out to use themselves as the lab for themselves, evolving what they have called the “Tube” in which they mash up all the collaboration tools enabled by web 2.0 into a form that works for them.
Then, god bless them, they put it out there in the spirit of transparency and the collaborative energy that can be created, for us all to learn from.
