WTF – Tim O’Reilly – Lightbulbs On!

What's the Future - Tim O'Reilly

Best Read of the Year, not just for high technology, but for a reasoned meaning behind political events over the last two years, both in the UK and the USA. I can relate it straight back to some of the prescient statements made by Jeff Bezos about Amazon “Day 1” disciplines: the best defence against an organisations path to oblivion being:

  1. customer obsession
  2. a skeptical view of proxies
  3. the eager adoption of external trends, and
  4. high-velocity decision making

Things go off course when interests divide in a zero-sum way between different customer groups that you serve, and where proxies indicating “success” diverge from a clearly defined “desired outcome”.

The normal path is to start with your “customer” and give an analogue of what indicates “success” for them in what you do; a clear understanding of the desired outcome. Then the measures to track progress toward that goal, the path you follow to get there (adjusting as you go), and a frequent review that steps still serve the intended objective. 

Fake News on Social Media, Finance Industry Meltdowns, unfettered slavery to “the market” and to “shareholder value” have all been central to recent political events in both the UK and the USA. Politicians of all colours were complicit in letting proxies for “success” dissociate fair balance of both wealth and future prospects from a vast majority of the customers they were elected to serve. In the face of that, the electorate in the UK bit back – as they did for Trump in the US too.

Part 3 of the book, entitled “A World Ruled by Algorithms” – pages 153-252 – is brilliant writing on our current state and injustices. Part 4 (pages 255-350) entitled “It’s up to us” maps a path to brighter times for us and our descendants.

Tim says:

The barriers to fresh thinking are even higher in politics than in business. The Overton Window, a term introduced by Joseph P. Overton of the Mackinac Center for Public Policy,  says that an ideas political viability falls within a window framing a range of policies considered politically acceptable in the current climate of public opinion. There are ideas that a politician simply cannot recommend without being considered too extreme to gain or keep public office.

In the 2016 US presidential election, Donald Trump didn’t just  push the Overton Window far too to right, he shattered it, making statement after statement that would have been disqualifying for any previous candidate. Fortunately, once the window has come unstuck, it is possible to move it radically new directions.

He then says that when such things happen, as they did at the time of the Great Depression, the scene is set to do radical things to change course for the ultimate greater good. So, things may well get better the other side of Trumps outrageous pandering to the excesses of the right, and indeed after we see the result of our electorates division over BRexit played out in the next 18 months.

One final thing that struck me was how one political “hot potato” issue involving Uber in Taiwan got very divided and extreme opinions split 50/50 – but nevertheless got reconciled to everyone’s satisfaction in the end. This using a technique called Principal Component Analysis (PCA) and a piece of software called “Pol.is”. This allows folks to publish assertions, vote and see how the filter bubbles evolve through many iterations over a 4 week period. “I think Passenger Liability Insurance should be mandatory for riders on UberX private vehicles” (heavy split votes, 33% both ends of the spectrum) evolved to 95% agreeing with “The Government should leverage this opportunity to challenge the taxi industry to improve their management and quality control system, so that drivers and riders would enjoy the same quality service as Uber”. The licensing authority in Taipei duly followed up for the citizens and all sides of that industry. 

I wonder what the BRexit “demand on parliament” would have looked like if we’d followed that process, and if indeed any of our politicians could have encapsulated the benefits to us all on either side of that question. I suspect we’d have a much clearer picture than we do right now.

In summary, a superb book. Highly recommended.

Crossing the Chasm on One Page of A4 … and Wardley Maps

Crossing the Chasm Diagram

Crossing the Chasm – on one sheet of A4

The core essence of most management books I read can be boiled down to occupy a sheet of A4. There have also been a few big mistakes along the way, such as what were considered at the time to be seminal works, like Tom Peter’s “In Search of Excellence” — that in retrospect was an example summarised as “even the most successful companies possess DNA that also breed the seeds of their own destruction”.

I have much simpler business dynamics mapped out that I can explain to fast track employees — and demonstrate — inside an hour; there are usually four graphs that, once drawn, will betray the dynamics (or points of failure) afflicting any business. A very useful lesson I learnt from Microsoft when I used to distribute their software. But I digress.

Among my many Business books, I thought the insights in Geoffrey Moores Book “Crossing the Chasm” were brilliant — and useful for helping grow some of the product businesses i’ve run. The only gotcha is that I found myself keeping on cross referencing different parts of the book when trying to build a go-to-market plan for DEC Alpha AXP Servers (my first use of his work) back in the mid-1990’s — the time I worked for one of DEC’s Distributors.

So, suitably bored when my wife was watching J.R. Ewing being mischievous in the first UK run of “Dallas” on TV, I sat on the living room floor and penned this one page summary of the books major points. Just click it to download the PDF with my compliments. Or watch the author himself describe the model in under 14 minutes at an O’Reilly Strata Conference here. Or alternatively, go buy the latest edition of his book: Crossing the Chasm

My PA (when I ran Marketing Services at Demon Internet) redrew my hand-drawn sheet of A4 into the Microsoft Publisher document that output the one page PDF, and that i’ve referred to ever since. If you want a copy of the source file, please let me know — drop a request to: ian.waring@software-enabled.com.

That said, i’ve been far more inspired by the recent work of Simon Wardley. He effectively breaks a service into its individual components and positions each on a 2D map;  x-axis dictates the stage of the components evolution as it does through a Chasm-style lifecycle; the y-axis symbolises the value chain from raw materials to end user experience. You then place all the individual components and their linkages as part of an end-to-end service on the result. Having seen the landscape in this map form, then to assess how each component evolves/moves from custom build to commodity status over time. Even newest components evolve from chaotic genesis (where standards are not defined and/or features incomplete) to becoming well understood utilities in time.

The result highlights which service components need Agile, fast iterating discovery and which are becoming industrialised, six-sigma commodities. And once you see your map, you can focus teams and their measures on the important changes needed without breeding any contradictory or conflict-ridden behaviours. You end up with a well understood map and – once you overlay competitive offerings – can also assess the positions of other organisations that you may be competing with.

The only gotcha in all of this approach is that Simon hasn’t written the book yet. However, I notice he’s just provided a summary of his work on his Bits n Pieces Blog yesterday. See: Wardley Maps – set of useful Posts. That will keep anyone out of mischief for a very long time, but the end result is a well articulated, compelling strategy and the basis for a well thought out, go to market plan.

In the meantime, the basics on what is and isn’t working, and sussing out the important things to focus on, are core skills I can bring to bear for any software, channel-based or internet related business. I’m also technically literate enough to drag the supporting data out of IT systems for you where needed. Whether your business is an Internet-based startup or an established B2C or B2B Enterprise focussed IT business, i’d be delighted to assist.

Ians Brain goes all Economics on him

A couple of unconnected events in the last week. One was an article by Scott Adams of Dilbert Fame, with some observations about how Silicon Valley was really one big Psychological Experiment (see his blog post: http://dilbert.com/blog/entry/the_pivot/).

It’s a further extension on a comment I once read by Max Schireson, CEO of MongoDB, reflecting on how Salespeoples compensation works – very much like paying in lottery tickets: http://maxschireson.com/2013/02/02/sales-compensation-and-lottery-tickets/.

The main connection being that Salespeople tend to get paid in lottery tickets in Max’s case, whereas Scott thinks the same is an industry-wide phenomenon – for hundreds of startup companies in one part of California just south of San Francisco. Both hence disputing a central ethos of the American Dream – that he who works hard gets the (financial) spoils.

Today, there was a piece on BBC Radio 2 about books that people never get to finish reading. This was based on some analysis of progress of many people reading Kindle books; this being useful because researchers can see where people stop reading as they progress through each book. By far the worst case example turned out to be “Capital in the Twenty-First Century” by Thomas Piketty, where people tended to stop around Page 26 of a 700-page book.

The executive summary of this book was in fact quite pithy; it predicts that the (asset) rich will continue to get richer, to the expense of the rest of the population whose survival depends on receiving an income flow. Full review here. And that it didn’t happen last century due to two world wars and the 1930’s depression, something we’ve not experienced this century. So far. The book just went into great detail, chapter by chapter, to demonstrate the connections leading to the authors thesis, and people abandoned the book early en mass.

However, it sounds plausible to me; assets tend to hold their relative “value”, whereas money is typically deflationary (inflation of monetary values and devaluation through printing money, no longer anchored to a specific value of gold assets). Even the UK Government factor the devaluation in when calculating their future debt repayment commitments. Just hoping this doesn’t send us too far to repeat what happened to Rome a couple of thousand years ago or so (as cited in one of my previous blog posts here).

Stand back – intellectual deep thought follows:

The place where my brain shorted out was the thought that, if that trend continued, that at some point our tax regime would need to switch from being based monetary income flows to being based on assets owned instead. The implications of this would be very far reaching.

That’ll be a tough sell – at least until everyone thinks we’ve returned to a feudal system and the crowds with pitchforks appear on the scene.

For Enterprise Sales, nothing sells itself…

Trusted Advisor

I saw a great blog post published on the Andreessen Horowitz (A16Z) web site asking why Software as a Service offerings didn’t sell themselves here. A lot of it stems from a misunderstanding what a good salesperson does (and i’ve been blessed to work alongside many good ones throughout my career).

The most successful ones i’ve worked with tend to work there way into an organisation and to suss the challenges that the key executives are driving as key business priorities. To understand how all the levers get pulled from top to bottom of the org chart, and to put themselves in a position of “trusted advisor”. To be able to communicate ideas that align with the strategic intent, to suggest approaches that may assist, and to have references ready that demonstrate how the company the salesperson represents have solved similar challenges for other organisations. At all times, to know who the customer references and respects across their own industry.

Above all, to have a thorough and detailed execution plan (or set of checklists) that they follow to understand the people, their processes and their aspirations. That with enough situational awareness that they know who or what could positively – and negatively – affect the propensity of the customer to spend money. Not least to avoid the biggest competitor of all – an impression that “no decision” or a project stall will leave them in a more comfortable position than enacting a needed change.

When someone reaches board level, then their reference points tend to be folks in the same position at other companies. Knowing the people networks both inside and outside the company are key.

Folks who I regard as the best salespeople i’ve ever worked with tend to be straight forward, honest, well organised, articulate, planned, respectful of competitors and adept at working an org chart. And they also know when to bring in the technical people and senior management to help their engagements along.

The antithesis are the “wham bam thankyou mam”, competitors killed at all costs and incessant quoters of speeds and feeds. For those, i’d recommend reading a copy of “The Trusted Advisor” by Maister, Green and Galford.

Trust is a prize asset, and the book describes well how it is obtained and maintained in an Enterprise selling environment. Also useful to folks like me who tend to work behind the scenes to ensure salespeople succeed; it gives some excellent insight into the sort of material that your sales teams can carry into their customers and which is valued by the folks they engage with.

Being trusted and a source of unique, valuable insights is a very strong position for your salespeople to find themselves in. You owe it to them to be a great source of insights and ideas, either from your own work or curated from other sources – and to keep customers informed and happy at all costs. Simplicity sells.

Recommended Bedtime Reading, and signing off for a bit…

I’ve never really been a big fiction fan. About the only author i’ve read extensively (outside high technology and business stuff – don’t yawn) was by Michael Crichton. At least the books that have yet to be turned into films. Well, all except “Disclosure”, where Demi Moore sexually harasses Michael Douglas and then throws the company’s political establishment against him when he refuses to succumb to her charms. But I digress.

There’s been a lot of comment on the blogs and twitter feeds I follow on the West Coast of the USA that keep on citing a new book by Andy Weir called “The Martian”. I tried to buy it on my last trip abroad, thinking i’d go buy the voiced version on Audible to listen to, but baulked at it’s then £20+ price tag. However, it appeared on an Amazon email last week for under £10 in hardback form, so I bought it.

Finished it today (like many of the USA folks, completely immersed in it for two days between work bursts). I’m completely with them; it is a fantastic book, and would make a great film. A modern day Robinson Crusoe, but one accidentally left behind on Mars. At least Crusoe had to worry more about Cannibals than continuously working around all the life support systems, and food, to last long enough to be rescued. If indeed NASA didn’t just leave him behind to eat his poison pills. Thoroughly recommended, and superbly written throughout.

Tomorrow, i’m off to Cornwall for a short break before I start my next assignment, which will start on June 2nd. Really looking forward to it. As such, the frequency of my blog posts are, with effect from today, going to drop to one per week. I think my daily posts have now caught up with my brain nuances, and the newsflow in High Technology has started to slow. At least until Apple have their Worldwide Developers Conference at the start of June, and Google do their matching I/O conference a week or two later.

In the three months or so i’ve been writing this blog, a few articles keep on getting lots of page views well after their posting data. The Crossing the Chasm one got reposted on LinkedIn by the original author of the book i’d summarised, and I started to get warnings from WordPress that I appeared to have an incoming tidal wave for 3 days running.

For some reason, my mention of Chromecast working on the Tesco Hudl tablet gets regular traffic, nominally by hoards of people querying Google to see if Tesco sell Chromecast in the UK.

Surprisingly few look at my tips for spotting the 4 key trends to look at with any business, in order to suss out what dimensions are and are not working. Or the other post about how to conduct yourself in a price war (there are only two things you focus on, and all paths to action stem from there).

I’m gone for a week, and to see how adept my 2 year old granddaughter has got on her iPad Mini we bought her (a necessity, as when she visits us, I never could get it back until she leaves again). She is impressively native on it with photos and with YouTube. Even tries to swipe “Skip Ad” on ITV on the telly.

So, signing off until May 30th. See you once i’m back.

At long last: Thorough journalism meets MH370

The Mystery of Malaysia Airways Flight 370 Book Artwork

A long time ago, Microsoft turned up at several ISPs doors with a distribution of their latest browser, Internet Explorer 6. Around a week later, CDs of a completely customised version of Demon’s trial experience landed on over 180,000 customers desks. The speed at which every team executed was phenomenal (even leading to complaints from BT that we must have been given an unfair advantage; we hadn’t). A key part of this execution being the web team then led by Sylvia Spruck Wrigley.

Since the time we both worked there, she’s learnt to fly, runs her “Fear of Landing” blog and has written another book (Why Planes Crash: 2001) that catalogued several air accidents.

It looks like she’s just repeated the same scale of feat as the one she pulled off at Demon, writing a book about Malaysia Airlines Flight 370, the whole book written in 4 weeks. I know she was interviewed by Russian Television about MH370 long before she’d written the book, given some of her excellent work pulling together some of the threads of the investigation. As she recounted on her Facebook feed:

So, yes, I wrote a book in a month. To be fair, I became obsessed with it the month before, so a lot of the research was already done. I wrote like CRAZY. I also kept spreadsheets to track *everything* so that I would be able to share stats. Here you go:

Idea conceived: 1st of April
First word written: 2nd of April
First draft done: 19th of April
Book launched: 27th of April
Spreadsheets created for random tracking: 12
Days where I wondered if I was crazy: 26
Total words: 46,173
Words per day high score: 6,095
Max words per hour: 820
Most played song on iTunes: Red Lights
Best arbitrary reward for hitting wordcount goals: Wonka Nerds imported from US
Packets of Nerds eaten: 6
Gym visits: 4
Pounds gained: 6
Vows to go to gym every single day if I can just get this goddamn book done: 37
Days that my loving boyfriend left town because I was unbearable to live with: 10
Naps taken: 30
Baths needed: 27
Baths taken: 4
Victory dances around the living room when I achieved a round number on my wordcount: 7
Conversations dominated by MH370: all of them

I’ve forwarded this news (of the book that is!) to various people in the USA who have been left practically crawling up the wall with the many hours of otherwise content-free coverage of MH370 on CNN. I hope this will provide them with some much needed escape from that monotony!

So, to leave you with the summary:

In this age of constant surveillance, it shouldn’t be possible to lose a Boeing 777 carrying 239 passengers. It’s inconceivable that the aircraft flew for seven hours without anyone noticing that it was up there, completely off track. Yet, that’s exactly what happened. Sylvia Wrigley, pilot and aviation expert, explores the possibilities in the pages of The Mystery of Malaysia Airlines Flight 370. Wrigley is a pilot and aviation writer who has been obsessing about aviation safety for ten years.

Understand every aspect of the mystery

  • Flying with Malaysia Airlines
  • MH370 Disappears
  • Popular Theories
  • A Deep Sea Search
  • The Aftermath

You can buy your copy of the book (as I have) from several places via Sylvia’s own link here.

 

Becoming More Efficient; Moonshot scale ideas available

 

Efficiency Straight Ahead

The statistics below are from an unashamed promotion of a new book, but I thought this was well articulated. The authors cite some statistics to think about:

Examples of Energy Inefficiency

  • The average car spends more than 95 percent of its time …. doing nothing.
  • Less than 40 percent of electrical transmission capacity is in use at any given time.
  • A calorie of beef requires 160 times more energy to produce than one of corn—and as the world grows richer, more people eat beef.
  • The cost of bringing an oil well online has more than tripled over the last decade.
  • A Motorway operating at peak throughput is less than 10 percent covered with cars.
  • Phnom Penh has a lower water leakage rate than London.

There used to be a very small detached house just inside Pamber Forest which I used to pass daily, and often wondered whether I could live quite happily in such a small place. Not quite as extreme as the Capsule Hotels you find in some areas of Japan, but a step in that direction nonetheless. This would probably mean quite a ruthless clean of the miscellaneous stuff we have all over the current house, but i’m sure there would be impressive efficiencies if we knuckled down to it.

The good thing about looking at stats like this is to start having thoughts of what Larry Page (CEO of Google) terms “Moonshots“. What could be done to improve things 10x, 100x or 1000x better than is considered normal by the rest of us, and what changes will that lead us to.

The authors feel that there’s a lot of waste in the status quo, and thus a great chance to produce and use resources much more effectively. But they don’t think it means that the sky is falling, and that our grandchildren are fated to inherit a poisoned, angry, gloomy, planet. That is also the argument of their new book, Resource Revolution: How to Capture the Biggest Business Opportunity in a Century
by McKinsey’s Stefan Heck and Matt Rogers.

My brain starts to wander at this point, and I still have this nagging feeling that all the books in my bookcase could be summarised down to 1-2pages each of people really tried – or less than 30 if examples are cited. One of the neat things about Kindle Books is that Amazon actually allow you to produce and sell stuff at that length; the The Bitcoin Primer: Risks, Opportunities, And Possibilities book
I purchased was an excellent 27 page read.

In terms of manufacturing (I guess they must be manufacturing consultants by day), they suggest looking at five areas: substitution (replacing costly, clunky, or scarce materials with cheaper, better ones); optimization (using IT to improve the production and use of resources – to order rather than into stock?); virtualization (which must really mean sweating otherwise idle assets?); circularity (finding value in products after their initial use) and waste elimination.

However, then then start citing “having to deal with more complex supply chains”, while integrating “big data” (hmmm – fad alert!) and finding diverse talent with new skills in areas like software- and system-integration (while I thought those were pretty well established!).

They conclude, “any bet that we will succumb to a global economic crisis is a bet against human ingenuity. No such bet has ever paid off.”

Looks an interesting book nonetheless, and i’m sure some good nuggets to pick at. Duly added to my Wish List.

Avoiding the strangling of your best future prospects

Escape Velocity Book Cover

I’m a big fan of the work of Geoffrey Moore, whose seminal work “Crossing the Chasm” i’ve cited before (in fact, the one page version is the #1 download from this blog). However, one of his other books is excellent if you’re faced with a very common issue in High Technology companies; having successful, large product line(s) thats suck all the life out of new, emerging businesses in the same enterprise. The book is “Escape Velocity”:

Unlike Crossing the Chasm, i’ve not yet summarised it on one sheet of A4, but have outlined the major steps on 14 slides. It sort of works like this:

The main revenue/profit engines in most organisations occur between the early and late majority consumers of the product or services; that can last a long time, denoted by the Elastic Middle:

Product Lifecycle

That said, there are normally products that sales will focus on to drive the current years Revenue and Profit targets; these routinely consume a majority of the resources available. Given a fair crack of the whip, there are normally emergent products that while not material in size today, are showing good signs of growth, and which may generate significant revenue and profits in the 1 to 3 year future. There are also likely to be some longer term punts which have yet to show promise, but which may do so in a 3 to 6 year timeframe:

3 Horizons

The chief way to categorise products/services against the relevant Product Horizon is to graph a scatter plot of revenue or profit for each line on one axis, against growth on the other (10% growth is a typical divider between the High and Low growth Quadrants):

3 Horizons to Category Power

Any products or services on Horizon 0 needs to be shielded from core resources and to be optimised to be cash generative while it lasts. The other product/service horizons are segregated and typically have a different go-to-market team (with appropriate Key Performance Indicators) assigned to each:

Focus Areas

The development pattern for Horizon 2 products are typical of the transition from “Chasm” into the “Tornado” stage on the normal Chasm lifecycle diagram. It’s a relentless learning experience, ruthlessly designing out custom services to form a standard offering for the market segments you target:

Free Resources to Context

As you execute through the various sales teams and move between financial years, there’s a lot of introspection to ensure that the focus on likely winners continues is appropriately ruthless:

Action

The sales teams driving Horizon 2 offerings should be seeking to aim high in customer organisations and drive strategies to establish a beachhead, then dominate, specific focus segments. In doing so, be mindful that a small supporting community tends to cross reference each other. Good salespeople get to know the people networks that do so, and work diligently to connect across them with their colleagues.

Trusted Advisor

The positioning of your Horizon 2 offers tend to vary depending on price and benefit; this in turn looks about like the findings from another seminal work, “The Discipline of Market Leaders”. That book suggested that really successful companies put their relentless effort into only one of three possible core competences; to be the Product Innovator, to be Customer Intimate or to be Operationally Excellent:

Benefit Sensitivity

Once you have the positioning, the Horizon 2 sales team relentlessly focus on the key people or organisations that make up their target market segment(s):

Drive to Share of Segment

The number of organisations they engage differ markedly between Enterprise (Complex) and Consumer (Volume) markets:

Target Customers

So the engagement checklist needs to address all these areas:

Target Market Initiatives

The sales team need to be able to articulate “What makes their offer different”:

Differentials

Then pick their targets:

Growing Horizon 2

Above all, be conscious who your competitors are and where you’re positioned against them:

From Whom

That’s largely it. Just a process to keep assessing the source of future revenue and profits, and ensuring you segment your sales teams to drive both this years business, and separately working on the green shoots that will provide your future. And avoiding what often happens, which is that the existing high revenue or high profit lines demand so much resources that they suffocate your future.

You can probably name a few companies that have done exactly that. Yours doesn’t need to be the next one now!

The Jelly Effect and the importance of focus on AFTERS

Jelly Effect by Andy BoundsI have a few books in my bookcase that I keep for a specific reason. Normally that they are succinct enough to say the obvious things that most people miss. One of these is The Jelly Effect: How to Make Your Communication Stick by Andy Bounds.

His insight is that most people want problem solvers, not technicians. They typically don’t care two hoots about the history of your company, or all the detailed features of your products or services. What they do typically care about is what will have changed for them AFTER your assignment or project with them has been completed. Focussing on that is normally sufficient to be succinct, to the point and framed around delivering the goals that customer feels are important to them. All that without throwing large volumes of superfluous information at your prospect on that journey. Summarised:

“Customers don’t care what you do. They only care what they’re left with AFTER you’ve done it”.

The end results of taking the deeper advice in the book include:

  • One bank, who won business from 18 pitches out of 18 after having implemented AFTERs
  • Another bank increased weekly sales by 47% based on focus on AFTERs
  • A PR and Marketing Company that have won every single sales pitch they have made after having previously won far less sales than their available skills deserved
  • The author suggests it’s worked for every single company he has worked with, from multinational blue-chips, to small local businesses, to charities looking to win National accounts, to family run businesses.

He describes the process outlined in the book in a short 5 minute video here.

I was once asked to write out the 10 reasons why customers should buy Software from my then Company – Computacenter, widely considered to be the largest IT reseller in Europe. Using the principles of “The Jelly Effect”, I duly wrote them out for use by our Marketing Team (they could choose which one of the 11 reasons to drop):

10 Reasons to buy Software from Computacenter

  1. Reducing your Costs. We compensate our folks on good advice, not sales or profits. We would rather show you ways to lower or eliminate your software spend, rather than stuffing you to the gills with products or services that you don’t need. Putting a commission hungry software salesperson rarely delivers cost savings in a tough economic environment; we think being synonymous with “help” is a better long term business strategy.
  2. Improving Service Levels. Your Internal Account Manager or Sales Support contact is the central hub through which we bring all our software skills to bear to help you. We expect to be able to answer any question, on any software or licensing related query, within four working hours.
  3. Access to Skills. Computacenter staff have top flight accreditation levels with almost all of the key infrastructure and PC software vendors, and a track record of doing the right thing, first time, to deliver it’s customers business objectives cost effectively and without surprises. Whether it’s the latest Microsoft technologies, virtualising your data centre, securing your network/data or weighing up the possible deployment of Open Source software, we have impartial experts available to assist.
  4. Freeing up your time. Computacenter has trading agreements in place with over 1,150 different software vendors and their local distribution channels, almost all signed up to advantageous commercial terms we make available to you. We can find most software quickly and buy it for you immediately on very cost effective commercial terms, and with minimal administration. Chances are we’re buying the same thing for many of your industry peers already.
  5. Reducing Invoice Volumes and associated costs. We’re happy to consolidate your spend so you receive just one invoice to process per month from us across all your hardware, software and services purchases from Computacenter. We often hear of cost-to-handle of £50 per invoice, as well as the time you staff take to process each one. Let us help you save money, and reduce your costs at the same time.
  6. Renewals without surprises. We can give you full visibility of your software renewals, enabling more effective budgeting, timely end user notifications, simpler co-termed plus consolidated contracts, and lower support costs. Scheduled reporting makes late penalty fees and interrupted support a thing of the past. Reduced management burden, and more time to focus on your key management challenges.
  7. Self Service without maverick buying. We work with IT and Purchasing Managers to make only their approved software products, at their most cost effective licensing levels, available using our CC Connect online purchasing service. This can often halve the spend that users would otherwise spend themselves on retail boxed versions.
  8. Purchase Power. Computacenter customers together account for the largest spend of any reseller on almost all of the major Software vendors we trade with. In the final analysis, you get the best prices and access to the best vendor, distributor and Computacenter skills to help achieve your business objectives.
  9. Spend Reporting. Knowing what license assets you have is the first step to ensuring you’re not inadvertently duplicating purchases; we’ve been known to deliver 23%+ savings on new software spend by giving IT Managers the ability to “farm” their existing license assets when staff leave or systems evolve in different parts of their organisation. Reporting on your historical purchase volumes via Computacenter is available without charge.
  10. Managed Procurement. We’re fairly adept at, and often manage, relationships for new and renewal purchases across 80-120 different software vendors on behalf of IT and Purchasing staff. If you’d like to delegate that to us, we’re be delighted to assist.
  11. Services. If you’ve not got time to work out what you’ve purchased down the years, and wish to consolidate this into a single “bank statement” of what your current and upgrade entitlements are, we can do this for you for a nominal cost (we use our own internal tools to do this fast and accurately for the major PC software vendors, independent of the mix of routes you used to procure your software assets). When times are tough, many vendors think “time to audit our software users”; your knowledge is your power, and even if you find there is some degree of non-compliance, we work to minimise the financial exposure and protect your reputation. We’ve been known to strip 75% off a vendors proposed multi million pound compliance bill using our licensing experts and some thorough research.

So can we help you?

I think that summarised things pretty well (my boss thought so too). Not least as the company were surrounded at the time by competitors that had a tendency to put software sales foxes straight into customer chicken coups. We always deliberately separated what media outlets consider a divide between advertising and editorial, or between church and state; we physically kept consultants measured on customer satisfaction and not on sales revenue. Computacenter are still pretty unique in that regard.

They still do that to this day, a long time after my involvement there as the Director of Merchandising and Operations of the Software Business Unit finished.

I don’t think the Andy Bounds has overhyped his own book at all. Its lessons still work impeccably to this day.

 

Focus on End Users: a flash of the bleeding obvious

Lightbulb

I’ve been re-reading Terry Leahy’s “Management in 10 Words”; Sir Terry was the CEO of Tesco until recently. I think the piece in the book introduction relating to sitting in front of some Government officials was quite funny – if it weren’t a blinding dose of the obvious that most IT organisations miss:

He was asked “What was it that turned Tesco from being a struggling supermarket, number three retail chain in the UK, into the third largest retailer in the World?”. He said: “It’s quite simple. We focussed on delivering for customers. We set ourselves some simple aims, and some basic values to live by. And we then created a process to achieve them, making sure that everyone knew what they were responsible for”.

Silence. Polite coughing. Someone poured out some water. More silence. “Was that it?” an official finally asked. And the answer to that was ‘yes’.

The book is a good read and one we can all learn from. Not least as many vendors in the IT and associated services industry and going in exactly the opposite direction compared to what he did.

I was listening to a discussion contrasting the different business models of Google, Facebook, Microsoft and Apple a few days back. The piece I hadn’t rationalised before is that of this list, only Apple have a sole focus on the end user of their products. Google and Facebook’s current revenue streams are in monetising purchase intents to advertisers, while trying to not dissuade end users from feeding them the attention and activity/interest/location signals to feed their business engines. Microsoft’s business volumes are heavily skewed towards selling software to Enterprise IT departments, and not the end users of their products.

One side effect of this is an insatiable need focus on competition rather than on the user of your products or services. In times of old, it became something of a relentless joke that no marketing plan would be complete without the customary “IBM”, “HP” or “Sun” attack campaign in play. And they all did it to each other. You could ask where the users needs made it into these efforts, but of the many I saw, I don’t remember a single one of those featured doing so at all. Every IT vendor was playing “follow the leader” (and ignoring the cliffs they may drive over while doing so), where all focus should have been on your customers instead.

The first object lesson I had was with the original IBM PC. One of the biggest assets IBM had was the late Philip “Don” Estridge, who went into the job running IBM’s first foray into selling PCs having had personal experience of running an Apple ][ personal computer at home. The rest of the industry was an outgrowth of a hobbyist movement trying to sell to businesses, and business owners craved “sorting their business problems” simply and without unnecessary surprises. Their use of Charlie Chaplin ads in their early years was a masterstroke. As an example, spot the competitive knockoff in this:

There isn’t one! It’s a focus on the needs of any overworked small business owner, where the precious asset is time and business survival. Trading blows trying to sell one computer over another completely missing.

I still see this everywhere. I’m a subscriber to “Seeking Alpha“, which has a collection of both buy-side and sell-side analysts commentating on the shares of companies i’ve chosen to watch. More often than not, it’s a bit like sitting in an umpires chair during a tennis match; lots of noise, lots of to-and-fro, discussions on each move and never far away from comparing companies against each other.

One of the most prescient things i’ve heard a technology CEO say was from Steve Jobs, when he told an audience in 1997 that “We have to get away from the notion that for Apple to win, Microsoft have to lose”. Certainly, from the time the first iPhone shipped onwards, Apple have had a relentless focus on the end user of their products.

Enterprise IT is still driven largely by vendor inspired fads and with little reference to end user results (one silly data point I carry in my head is waiting to hear someone at a Big Data conference mention a compelling business impact of one of their Hadoop deployments that isn’t related to log file or Twitter sentiment analyses. I’ve seen the same software vendor platform folks float into Big Data conferences for around 3 years now, and have not heard one yet).

One of the best courses I ever went on was given to us by Citrix, specifically on selling to CxO/board level in large organisations. A lot of it is being able to relate small snippets of things you discover around the industry (or in other industries) that may help influence their business success. One example that I unashamedly stole from Martin Clarkson was that of a new Tesco store in South Korea that he once showed to me:

I passed this onto to the team in my last company that sold to big retailers. At least four board level teams in large UK retailers got to see that video and to agonise if they could replicate Tesco’s work in their own local operations. And I dare say the salespeople bringing it to their attention gained a good reputation for delivering interesting ideas that may help their client organisations future. That’s a great position to be in.

With that, i’ve come full circle from and back to Tesco. Consultative Selling is a good thing to do, and that folks like IBM are complete masters at it; if you’re ever in an IBM facility, be sure to steal one of their current “Institute for Business Value” booklets (or visit their associated group on LinkedIn). Normally brim full of surveys and ideas to stimulate the thought processes of the most senior users running businesses.

We’d do a better job in the IT industry if we could replicate that focus on our end users from top to bottom – and not to spend time elbowing competitors instead. In the meantime, I suspect those rare places that do focus on end users will continue to reap a disproportionate share of the future business out there.