All posts by blewis

Choosing Media Server Software

Some years ago on my home network, I set up a Media Server on an old Windows PC, as I wanted to be able to stream some stored home movies, music and photographs to Laptops and TV screens around the house. The TV Screens had WDTV Live units (~ AUD$100) connected to them which were hardwired to the network, so they could play the content being streamed.

The Serviio Media Server was great (free, effective, easy), but the Windows PC (Win10 Pro) not so much. I started to run out of hard disk space as I transferred files across plus the Media Server would always go non-responsive every time Windows wanted to update itself (all too regularly).

Raspberry PiThen came my January 2017 holiday project, where I decided to relook at the $50 Raspberry Pi as the much more powerful model 3 had been released. It occurred to me that this unit, with a big fat portable Hard Disk attached could make a fantastic Media Server.

Most of the introduction to Raspberry Pi articles I read usually talked about using the free minidlna as a media server, so I thought I would start with it. Installing it was a bit fiddly and it was hard to determine where the issues lay when it wouldn’t work properly. For instance, the media server worked, but had no content. Or I couldn’t log into the samba share over the network (which was not strictly at minidlna problem). Eventually I uninstalled it as:

  • minidlnaI had to log into the Raspberry Pi and use a text editor on the config files to make changes (always time consuming and a little dangerous).
  • It was completely rubbish at tracking what was on the disk. All too often its directory would be corrupted showing file s that were no longer there (as I had moved them), or not showing files that were there, for reasons I couldn’t fathom. Eventually I gave up trying to solve this as it was too frustrating.
  • The third issue was that it presented very little to the DLNA client other than a complete list of media files, or the files categorised into their folders. Our needs (the wife’s) included knowing “What have you just been viewing” and “what’s just been added” which weren’t options.
  • I was also a little concerned that the project governance for minidlna was weak (eg minidlna is called its previous name everywhere, but you can only download minidlna) which could lead to heartache when updating it downstream.

The second crack at it was installing Plex. Plex had lots of great reviews, so I had high hopes. Mind you, you tend to get the reviews you look for. Eventually I uninstalled it as:

  • PlexIt has lots of system defined options for presentation in the client, (eg By Album, by Artist etc) but you can’t configure them or turn them off. This means I have about 10 options I don’t want and can’t have the ones I do (the Recently Added folder)
  • The licensing agreement of Plex is of concern – it appears you give them a right to use any content you load into Plex in anyway they like (whether you have the right to do this or not). Others online also seem concerned about this.

Finally, I installed Serviio, which I hadn’t realised previously you could run in a Linux environment. For some reason It generally doesn’t appear in Media Server reviews for Raspberry Pi. Serviio runs over Java and is a little complex to build as you must install java first (already there on Raspbian Jessie for Noobs), ffmpeg and finally Serviio. Once in it was easily configured though a nice interface via the web browser. However I did tweak some config files to name the server in a way that suited me. In summary:

  • Serviio Serviio seems to track changes on the hard disk without error.
  • Offers my wife the menu options she want’s which is “Last Viewed” and “Just Added” and can hide all the rest of the options.
  • Finally, Serviio doesn’t seem to offer any creepy licensing requirements either (from a non-lawyers reading of the EULA).

Winning. At this stage I’m keeping it.

Good Revenues

“What makes for good revenues?” You ask.

good revenues from shaversWould you rather own Dollar Shave Club or the Gillette Corporation? Probably the answer is Gillette, because its worth a hell of a lot more. But, the answer could be different tomorrow because of Dollar Shave Club’s good revenues.

Gillette was founded in 1904, has 750M customers and is valued at USD$19B. Dollar Shave Club was founded in 2011, has around 2M members and was valued on sale recently at USD$1B. This means that Gillette’s customers are valued at USD$25 each, whereas Dollar Shave Club’s Members are valued at USD$500 each. They both sell razors! Startling, isn’t it?

Lets have another look, say Engineering firms. I have held commercial and leadership roles in engineering businesses (Avionics, Telecommunications, Machine Tool Engineering, IT ) for half my adult life, so I reckon I have some insight into how they operate.

Your standard engineering business offers design services, and may also offer a bit of hardware, software and installation. Perhaps they also offer maintenance services for the hardware and software. Commercially, their revenue is generated from a customer that they win a big project with, then they may pick up a trickle of maintenance work. If they’re lucky, the customer uses them again for another project in another area.

So what’s wrong with the traditional revenue model?

readitional business has difficult revenuesFirstly the future is always hard to plan on. Forecasting sales is really difficult as your confidence in invoicing dates is low. All to often future forecasts are based on last years data, without any insight on which customers the sales will come from.

Secondly this means they will be generally less profitable as they need to endlessly spend more on acquiring new customers, plus their operational people are expensive but regularly benched.

Thirdly It’s always going to be feast or famine when it comes to cashflow. Times of famine also mean you lose good people!

Perhaps some innovative thinking is required?

When designing an offering to the market, a large number of requirements need to be addressed:

  • Corporate strategy alignment
  • Customer problems that need solving and their demands for a specific bundle of features  and benefits
  • Your own operational capability and supplier capabilities
  • Legislative, environmental and community requirements
  • Internal requirements from marketing, operations, finance, IT and human resources etc, etc

But what I’ve noticed over the last 30 years or so though, is that there is one area which gets very little attention – the underlying commercial arrangements, or commercial packaging of an offer. Everyone tends to use industry norms instead.  So that’s what I want to address with this article, and answer the question “What makes for good revenue?”.

Commercial Packaging is the Key to Good Revenues

Experience indicates there are 3 principles of good commercial packaging, that should be considered.

  1. Low Barriers to Entry
  2. Maximise your Profitability
  3. High Barriers to Exit

Pretty simple, yes? So let’s dive a little deeper.

Low Barriers to Entry

So on top of creating products and services your customers value,  you want to make it as easy as possible for the customer to buy.  So how do you do this?  Well, lots of ways (and I’m sure my list isn’t exclusive).

lower your drawbirdge to make selling easierHave a Trusted Brand – Consumers still insist on buying pharmaceuticals from name brands that are chemically identical to the generic brands, but three times the price.

Lower Entry Cost – Large upfront costs can be turned into “one low monthly payment” with financing leases. Mobile phones are costed into contracts rather than having an upfront payment. Colour printers are discounted to make them easy to buy and profits are made from the ink. Some features can be removed and sold back later as “accessories”. Perhaps the type of revenue model (sell, rent, subscribe, licence, usage, brokerage etc) should be altered to lower the cost.

Lower Ongoing Cost – Consumers have a much higher propensity to buy a product with lower ongoing costs but a longer contract, than a higher costing short contract that has the same total value. Lower ongoing costs doesn’t mean you earn less! $100 a week for 10 weeks, isn’t nearly as valuable to you as $50 a week for a year! Its why adding the metallic paint option to your new car costs you another month or two of repayments, rather than increasing the monthly cost. Its why the first service of a new car, appears to be free.

Reduce Risk – “Try before you Buy”, “30 days Free Access”, “Freemium” & the “Money Back Guarantee” are common ways of reducing risk. Some of these cross over as  tactical marketing solutions, not underlying commercial packaging, but they are worth considering.  Another method can be to change the business model and offer a rental of plant & equipment first, for clients who are not sure they will get good use out of a product.

Maximise your profitability

So once you have got the customers, you want to make as much money from them as you can, for as long as reasonable. Right? This translates to:

jump as high as you can to Maximize profitabiltySeek Annuity Income – Wouldn’t it be better if one sale led to months or years of revenue, rather than a couple of milestone payments then you’re done?  Annuity income means getting ongoing regular payments from just one sale.  It can come from a business model that charges a regular fee, such as rentals, subscriptions and licensing. It can come from selling consumables such as printer ink. It can come from selling consumable products or bigger items with built in obsolescence such as smart phones. It can come from selling product extensions such further musical albums. It can be supported by supply contracts and automatic resupply.

Lower Costs – Profitability increases as you lower your costs. Review your value chain and eliminate waste. Automate the routine as much as you can. Substitute cheaper resources whenever possible. It could mean having a graduate trainee program, it could mean FAQs and technical manuals written and published online, it could mean investing in systems to support your customers!

Higher Prices – Don’t leave money on the table, use research to understand how your customers value your solutions! Understand how they will pay a premium for a better solution! Jon Manning, the pricing expert behind Pricing Prophets once said to me, “best practice is always having some price experiments going on”.

Automate the Cycle – once you have sold to a customer, you don’t want to put a decision in front of them every month to continue buying. Automate the delivery, invoicing and payments wherever you can!

High Barriers to Exit

When you have a profitable customer, you don’t want to lose them as new customers are much more expensive to acquire.

A Better Customer Solution & Experience – generates more loyal customers than a loyalty program marketing comes up with. A cancelled flight is far more damaging thpenalities for exitan expired frequent flyer points, and I don’t care that Telstra is more expensive, if you want to check your email in regional Australia, they’re the only choice. Beware unethical behaviour, it appears lucrative in the short term, but will cost you in the long run.

Requires a Loss to Exit – Nobody wants to lose their email address which traditionally keeps most people with their ISP, long after they start to think about leaving. If you live in the Apple ecosystem, you don’t want to lose all your apps (covers, in car holders, chargers etc) when you move to Android, and vice a versa.

Requires Effort to Exit – Nobody wants to lose their mobile phone number when changing phone companies, which is why the Government had to force number portability onto Optus, Telstra etc. But despite it being a reasonably easy process, the Telco’s will still make you jump through alot of hoops to exit. It’s a pain, and its deliberate. However it’s nowhere near as painful as changing Banks!

Requires Penalties to Exit – Minimum contract lengths and exit penalties have found their way into an enormous number of industries, despite having no relationship to the underlying costs that customer churn causes. If you are renting anything or subscribing for access to a service, expect to be locked in with alot of pain if you try to break the contract. See Smartphone and ISP contracts!

So what would happen when you re-engineer your business for good revenues?

  • Perhaps engineering businesses would see themselves as sellers of more lucrative maintenance contracts, with the initial design project just the gateway? The service teams would no longer be the poor cousins of the project teams!
  • Perhaps expensive suit manufacturers, could package in drycleaning services to the monthly fee you pay for accessing their clothing line.
  • Perhaps Pharmacies could help you reorder your drugs as you need them, rather than waiting for you to come in.
  • Perhaps Real Estate Agents would provide services around building value in your house over the long term, rather than just  appraising it and selling it.

And perhaps the business that you launch and grow, will become a valuable commodity. Looking at Dollar Shave Club again, their revenues per customer are valued at a massive  20x higher than a competitor selling the same product in a traditional way! Dollar Shave Club clearly has the “good revenues”.

Who wants to actually slaughter a cow?

The Butcher and the Value Proposition

Every time I hear people working in digital in Australia complaining about potential clients not wanting to pay for their services, or not truly valuing their services, I sigh…. They somewhat viciously call these people, the non payers, the Parasite Economy.   But instead;  rather than blaming others,  perhaps they should be thinking about their own value proposition!

Because I strongly disagree with them.  In my argument I like to use the analogy of the Butcher. Because A. I reckon the Butcher is a great analogy and B. It tends to upset the intellectual elite who embrace innovation and reject without thinking the “patently absurd notion” that they could learn anything from Butchers.

Evolving the Butchers Value Proposition and Business Model

But here’s the thing, the Butcher’s value proposition and business model is mature, clear and valued.

The value proposition is simple; people want to get some meat locally, but they don’t want to actually butcher a cow (yuck!) or have to store an entire dead cow (difficult).

The winning business model is to put a shop on the high street without competitors, front load your cabinets to look bountiful and be hygienic.

But when you pick at the surface, things get a bit interesting. Butchers have evolved their business model over thousands of years. You can be sure that along the way entrepreneurs have tried out different variations on the offering, and found they failed to deliver as much value as selling meat in a butchers shop. Do any of the below ring a bell?

  • Selling you cows for slaughter – checkthe value proposition of the butcher
  • Slaughtering you cow at your request – check
  • Providing you a slaughtering room to do the deed yourself – ?
  • Providing and sharpening butchers knives – check
  • Providing a large cool room for you to store your dead cow – check
  • Bringing meat cuts to you to buy, door to door – check

You see almost all these offerings are plucked from different parts of the value chain, but the local butcher operates the part where his value is maximised and easy to understand. He converts larger pieces of meat into a variety of meal size portions makes them available for you locally. It sounds simple, but it took thousands of years to evolve to this.

How can you not learn from this evolution of a business, or find it fascinating?
Its quite apparent that when people complain of potential customers not valuing their service, the truth is not that there is no value, but the market hasn’t yet determined where the simplest and greatest value is.

Perhaps if you look at your offering through this lens, you can evolve your offering to something that’s easier and more lucrative. Note – nobody asks the Butcher for free food as it will be good exposure for them as there is no Parasite Economy for Butchers!

And when he innovates?

Butchers know that when competing, you get the greatest acceptance and valuing of innovation when it is a small referenceable change rather than a complete paradigm shift. Which is why you see new and different sausage mixes being on sale – rather than lab grown meat in the cabinets!

A Home Music Server for AUD$352

Every now and then I like to re-connect with my geek roots.

Raspberry PiSo a couple of years ago I bought the boy a Raspberry Pi computer  which pretty much sat there collecting dust  after the initial outing.  It appears playing games on the computer doesn’t translate to wanting to find out how the computer works.  Sigh.  But on to my story.

The Raspberry Pi was pitched as a very low cost, credit card sized computer that is powerful enough to do some interesting things whilst getting you interested in computing.  I had purchased one of the first releases for the for the boy (A Raspberry Pi Model 1 B +).

Over the summer I decided to crack it out and see what I could make it do.  Turns out I could bend it to my will, but it was a little slow and frustrating, so I bought an updated unit and it was fine.  The new Raspberry PI 3 B model (faster with more USB connections, Wifi and Bluetooth).  I planned to turn it into a Music Server.  My costs for the project were:

  • $54 for the computer (more like a pack of cards, than a credit card!)
  • $12 for the power supply (I wanted to use theirs, not a spare)
  • $11 for a good looking plastic enclosure
  • $16 for a 16GB SD Card (for the oeprating system)
  • $259 for a WD My Book 4TB external powered Hard Drive (for my music)

So $352 all up (HDD from JB Hifi, Raspberry Pi and accessories from RS-Online)

With the Raspberry PI all the software was free, but you had to learn how to use Raspian, the preferred version of Linux that I installed on it.  I have almost zero experience with Linux, so it was a little daunting.  But installation was easy, you download the operating system to an SD card (like you stick in a camera), then stuck it into the raspberry PI (with monitor, keyboard and mouse connected) and booted it up.  Pretty much all instructions are online and fairly simple.  The main steps were:

  1. I configured the operating system to give the unit a name and install VNC software, so I don’t have to have a monitor and keyboard connected, i just use my laptop to connect (some call this going headless).
  2. I removed software I didn’t need to save space (the office and mathematica products).
  3. I setup the HDD to be accessed by the Raspberry Pi and make sure it got mounted in the same place in the directory structure every time.
  4. I setup Samba, the file sharing software, so that I could copy files across my network onto the new computer’s HDD.
  5. I allocated the computer a static IP address on my network, so I could always find it.
  6. I installed MiniDLNA as the media server software.

Note One.  all of the above was done by someone who had almost no familiarity with Linux or the Raspberry Pi (Im mainly a windows man).  I think the key to being able to do it,  was slowly building a manual using a GoogleDocs Document, with each of the commands and my commentary.  So that I could learn along the way and repeat the steps when I had to wipe the SD card and start over.

Note Two.  I haven’t indicated any of the commands or configuration changes I had to do.  That was all online and easily found with a google search.  What wasn’t,  which I had to figure out, was the steps and their sequence, to make it all work!

The Result:

  • A media server on our network full of music we have bought, that can send it to any device such as our network speakers.
  • A tiny footprint with a the computer the size of a pack of cards, and the external HDD being small.
  • Less noise and heat being generated in the house, by removing a big computer that needed a fan to keep it cool (it was slowly dying).
  • A low cost replacement, that is easy to repair!
  • Around 8 hours of my time invested, but as Im more familiar and recorded all the steps, so I can build another Raspberry Pi to do the same job in under an hour.

Quite chuffed with myself.  My next project will be using a Raspberry Pi to turn an old laser printer into a wireless Laser printer using the Raspberry PI wirelessly on my home network and hiding it away behind the printer.

So Raspberry Pi has evolved enough to be useful.  No longer just a learning tool!

manage sales

Manage sales activities, not just outcomes

What do you think is going to happen if you think the way to manage your sales function,  is  simply double last year’s sales to create this year’s targets?

  1. Your sales will double?
    or
  2. Your sales staff will start looking for new jobs?

I’d vote for B every time. As you can’t just double sales without a plan, and only checking in on a sales teams performances at the end of a year is a disaster.

See there is a couple of things wrong with just setting bigger targets.

  1. Targets require resources to get you there.sales activities
  2. Targets are designed to tell story at moment in time, not help you with the journey to get there.

Manage Sales Activities

Most people are aware that sales require activities to generate them, and that series of activities is normally called a pipeline or funnel. Perhaps 10 leads give you one prospect, and 10 prospects generate you one sale. In that example, 100 leads generate 1 sale. So to double your sales, at the simplest level, you need to double the number of leads you generate. If your average sale is $50K and your business turns over $1M a year, you need another 20 sales to get you to your two million, or another 2,000 leads require generation per year.

(Note you can also focus on multiple funnels, changing the ratio’s and the size of the sale!, but Im not talking about this today).

So to specifically address point 1, to double your sales you need to invest in doubling all the activities in your pipeline. I.e. how are you going to generate another 2,000 leads? Spend more money on SEO?, Spend money on PR?, Spend money on a content strategy? Spend money on advertising?

Hopefully I make my point. A sales target without a supporting plan and resources allocated to achieving it will fail. Sales staff know this and will start looking for a new job before they get blamed for managements lack of planning and execution.

The second thing wrong with just setting a bigger target is its focussed on measuring performance at the end, not along the journey. Making it much tougher to manage sales staff.

Set Activity Targets

I’m a big fan of two types of targets – sales outcomes and the end of a big period (monthly, quarterly yearly) and activity targets for your regular meetings (daily, weekly, fortnightly).

By your performance, you will be able to generate indicative ratio’s of how your sales funnel works. For example (for normal week):

• 10 leads from the website.
• 20 leads from advertisements in industry magazines.
• 10 leads from attending two events.

We may also discover that roughly 10 leads generate us 1 prospect, and 10 meetings with prospects generate us 1 sale. Therefore, our baseline operational cadence per week is:
• 30 leads generated from Marketing Activities
• 2 events attended
• 10 leads generated from events, and
• 10 prospect meetings conducted by sales people
However the average week has no sales, as our $50K sales occurs every 2.5 weeks!

Therefore a weekly sales meeting focused on sales outcomes only would be less than useful as even though we are supposed to generate sales averaging $20K per week, sales occur only once ever 2.5 weeks and are that the $50K per sale level. Hard to tweak your activities, when you are guessing on outcomes.

But a sales meeting focused on our activities and whether we have the required operational cadence is vastly more useful.
For example if out week generated (with suggested decisions in brackets)
• 30 Leads – from the website (Big Week!, is this a trend that means our ratio’s need revision?)
• 0 Leads – from advertisements (better investigate what’s happening)
• One Event – attended by sales staff (need to lift our game and identify some events to attend)
• 20 Leads : from the one event (can we discuss what made this event such a high performer so we can replicate it?)
• 5 Meetings – Attended with prospects (That’s too low, what’ss preventing us from getting out the door?)

You see focusing on your sales activity or your sales cadence allows you to make small changes to improve performance as they suggest themselves. Focusing on outcomes only makes staff either happy or sad.  Manage sales activities!

Vision and Coffee

coffee and visionI like coffee. The drink sure, but also the doing. The concept that we can exchange information, ideas and insights much more naturally over a drink, than if we were sitting in a meeting room. For instance, yesterday I had a coffee with a woman who was having difficulty growing her marketing business. There were a number of reasons for her challenges but one specific reason caught my eye.

She had the commonly held belief that you should envision a better world, and work towards changing things to your vision. In her case she felt that too many of her potential clients were failing because they didn’t have a strategic marketing plan. She wanted to change that. Unfortunately, the vast majority of potential clients just didn’t care.

Now there is absolutely nothing wrong with having a vision of how you want to change the world, but can I suggest that its better if it’s a big vision, rather than a small one for personal gain. Everyone loves what Elon Musk is trying to achieve with Tesla, Space X and Solar City. Everyone loves what Job s did bringing design to the forefront. Everyone loves the fact that Ghandi chose peace as the method to effect change. These are all big visions. No one loves a small vision except for you.

If your vision is small, perhaps it’s better to start with viewing the reality of a situation clearly and take advantage of it, rather than struggle to implement a vision no one else cares for. In her case it turns out she was also extraordinarily good at acquiring sponsors for events. There is clearly massive demand for assistance in this and its easy to sell. The sponsor acquisition service can also be a gateway product to selling services such as developing strategic marketing plans once you are trusted and clearly cash flow positive for the client.

I would package up the sponsor acquisition service with something like a small kickoff fee, then a commission payable on the value of the sponsorship. So from the client point of view the risk is very low and the value is black and white. There is little need for others to “believe” in your vision.

Its hard to embrace this “realist” approach though. Perhaps the coffee tastes a bit too bitter. Although Im sure you will get used to it.

Strategy, the Accounting Equation and the failure of Arrium

If I remember rightly, the very first thing you learn in Accounting in first Year Uni is the Accounting Equation.  The fundamental framework that underlies the recording of a business’s activities.

Assets = Liabilities + Shareholder Funds

It means that for everything a company has, there is a claim on it by either the owners of the company, or by those that the company has a liability to (i.e. its suppliers of labour, inventory, cash etc).

But its actually more than this.  Bear with me, its actually the basis of strategy!

Everyone’s heard the lie line “the purpose of the company is to increase the wealth of the shareholders”.  So the Board of Directors can believe they are acting correctly and ethically when they pay out dividends, even if this slowly compromises the company’s ability to survive.   Almost certainly this will also shaft the suppliers to the company.  So when a Board ignores warnings and continues to give cash to shareholders, Administrators need to step in to start looking after suppliers.  i.e.  Looking back to our Accounting Equation, the shift in strategy becomes obvious – the emphasis moves from looking after shareholders, to looking after those with the Liability  (the Shareholders).

This isn’t abstract, it translates directly into the real world.  Have a look at Arrium.  Since One Steel became Arrium in 2012, it paid out a large percentage (41%+) of its profits as Dividends.   Despite plenty of warnings that trading conditions were deteriorating, despite profitability diminishing, and having to maintain crushing debt levels.  It still looked after the shareholders.  Only in 2015 did it have to call a halt to the Dividends.  There was no building a war chest to make the company more resilient.   Consequently, the Administrators have taken over and will now look after the Creditors, to the detriment of the Shareholders.

So the fundamental strategy of a company isn’t the value proposition of a company that it takes to a market segment,  it’s how it balances the competing needs of owners and suppliers so that it can survive!

see the forrest and the trees

My catch phrase this week has been “Think like a Marketer, Act like a Salesperson”

A colleague went to raise $16M with a cunning plan. Two investors told him his plan was stupid, not cunning, and he pretty much threw his pitch in the bin.

See the forrest and the treesAnother colleague deployed some new infrastructure, based on market research for the demand. He blew his dough as it turned the research wasn’t nuanced enough. There was no demand for the new version of offering.

Now I have been a marketer and a salesperson, and what I have noticed is that most people have a tendency to think like a salesperson, and act like a marketer. However, success in business development tends to come from operating the other way round. What do I mean?

Sales people operate at the coal face, consequently their intuition and insight into how customers feel is excellent  – they are constantly altering their behavior based on feedback. However they tend to wear their hearts on their sleeve. If three customers in a row hate a new product, they will give up on selling it.  They don’t see the market, they only see the prospects. (Just see the trees, but can’t see the forrest)

Marketers have a much more dispassionate view of market places. They may estimate, as in the case of Encyclopaedia Britannica, that only one person in a hundred has demand for their product. Therefore logically, 100 people need to be approached to make one sale. However, they are always abstracted from customers, relying on research rather experience. After a while their gut feel becomes so disconnected, that they can be convinced that jumping into the fire is a good idea, if the data supports it.  (just see the forrest, but not the trees)

So, if you think like a marketer “I will have to speak to 25 investors to get one interested (a 4% response rate) then act like a sales person “I notice they wince every time I suggest it will only take 12 months” you end up doing the hard slog, but learning and refining every step of the way.  A winning strategy.

I think its an handy mental framework when trying to develop new business around new products and markets.

When you compare yourself to others

There is a line from the poem Desiderata that I find myself quoting quite often to founders of small innovative businesses.

If you compare yourself with others, you may become vain or bitter, for always there will be greater and lesser persons than yourself.

DesiderataBut like most quotes that sound worthy, I like to dig deeper to the algorithm beneath.  My starting point for this was the Johari Window  a tool for gathering insight about yourself and your  relationships.    But I have tweaked it a bit to specifically deal with making comparisons.

Information about you

I would assert that there is three types of information about you that friends, colleagues, strangers may come across.  Basically:

  1. The Good stuff – eg you are a skilled cartoonist
  2. The Bad stuff – eg. you were once charged for being in a drunken brawl.
  3. The indifferent stuff – Information about you that is neither good nor bad eg. you prefer spaghetti bolognaise to spaghetti carbonara.

There is also three levels of intimacy of information about you.

  1. The Public stuff – Everybody can discover it .  eg. You live in Melbourne.
  2. The Private stuff – Only people close to you know – eg. You have a sensational pair of leopard skin pyjamas.
  3. The Secret stuff –  Only you know this. eg. You once saw  a  car being robbed,  but didn’t intervene or tell anyone.

 

  Secret Private Public
Good eg.  You have a sensational pair of leopard skin pyjamas  eg. Skilled Cartoonist
Indifferent eg. you prefer spaghetti bolognaise  eg. You live in Melbourne.
Bad  eg. You once saw  a  car being robbed,  but didn’t intervene or tell anyone.  eg. You were conce charged for being in a Drunken Brawl

Now we are generally pretty happy for the good stuff to be public, in fact most artists employ publicists, to get the good word out and to make sure the message is right.  Conversely, we try to keep the bad stuff secret.

The problem is of course, when we compare ourselves to others, we are brutally unfair.  You see most of what we know about others is the public stuff, and occasionally the private stuff.  And as we had just seen, this is much more like to be the good stuff.  However when we compare ourselves, we compare the complete picture of who we are, including very much our weaknesses and failings.  This of course leads to misplaced feelings of despair, jealousy, failure etc.

On occasion we also witness bad stuff hat would normally be private or secret about others.  This then leads to us feeling superior and vain.

We are terrible and childish in the way we do it, but once you realise whats actually happening, it can ease the pain and make us a bit more humble.

The next paragraph is Desiderata helps me keep perspective.

Enjoy your achievements as well as your plans. Keep interested in your own career, however humble; it is a real possession in the changing fortunes of time.

 



disruptive innovation and food

Today at lunch my father announced that some industries are doomed due to disruptive innovations but some are safe. I of course reacted emotionally at first telling him he was talking complete rubbish, but then after pausing to draw breath, I like to think I rationally pointed out why no sector is safe from disruptive innovations.

Ziferblat CafeWhen talking about innovation I like to talk about Butchers and Restaurants.

The basic value proposition for a butcher is quite simple and has been the same for a thousand years. Nobody wants to slaughter a cow, and its pretty hard to store a whole cow to eat at your lesiure. Much easier to get some one else to do the dirty work, then take a tiny share. There is not much innovation going on in the sector and the heuristics for running a successful butcher shop are fairly simple – put it on the high street, front load your cabinets with delicious offerings, look hygenic.

However old and mature the standard business model is, don’t think you’re safe from disruption.  Consider restaurants.

The value  proposition of a restaurant is also pretty simple – pay a third party to give you food that you can’t or wont prepare for yourself.   But when you talk about innovation in restaurants, things start to get weird when you pick at the surface.   At most restaurants you pay for the food you order, with each dish a separate price.

Sometimes the food is in the kitchen for you to order, and sometimes its brought to your table for you to select (love yum cha!). Sometimes you pay a set price and get a set menu. Things can get much more innovative though. In South America, kilo restaurants are not uncommon. Restaurants that advertise a price per kg. You then load up your plate with whatever you like from the bain-marie, weigh it then bay the kg price.  And now there is a new innovation I find quite fascinating – as it approaches the monetisation problem from a completely different angle and throws out the original value proposition effortlessly.  A pay per minute cafe has just opened in London. Basically everything is free, you just pay for how long you stay at a rate of 3p per minute.. The catch is that for many things you may like, you may have to cook yourself. Eg there are eggs and bread in the pantry and frypans and toasters available.

The key here is that disruptive innovation can come to any sector, simply by having a good look at the value proposition that underlies all the other activity.

The butchers value proposition is just started to get looked at – which is why we are seeing franchises of poultry specialists, direct to the public wholesalers and champagne served with tastings!  Plenty more innovation to come I think.