We need to do it all over again

2012 has been an eventful year.  Olympic games and other things have caught the attention of many.  It is also a year where we have become somehow used to see companies go bankrupt.  A recent casualty has been COMET, a traditional business selling electric appliances.  It started in Hull, in Yorkshire, where I spent 11 years as a student and then as a university lecturer.  I remember seeing two COMET shops very close to each other in the town centre.  I have to confess I might have been in one of the shops only once.

COMET has gone into administration.  Customers still complain that even by doing this the discounts they offer are not that great.  Other retailers including PCWorld, Currys and others are very competitive.  Electric appliances (TVs, music players, computers and other househould items) are being sold by many other companies which did not use to do that before (my friend Nick Davey has given me this insight).

And then we have the media saying that the problem of COMET is that they did not exploit the online world as they should have.  Its competitors did it.  Still, this does not sound fully convincing, at least from where I stand.  The online world is more complex, challenging and unpredictable than we are used to think.

Before throwing COMET into the online world, we should be asking basic questions about its business.  The business should not be another 'online' brand.  COMET needs to rediscover itself, and see if its origins can still spark and inspire people to be their customer.   What was the vision of the business?  What if it was already achieved?  How can COMET position itself as a valuable, unique and reliable business?

Personally I have not seen any similar business getting close to its customers, educating them about the new technologies we are now using in our daily lives.  It takes more than being technologically savvy to create a good relationship with customers.  I wonder if there are also core values that could inspire people to work for COMET.

We need to do the homework of thinking hard about what the main reason of existence for a business is.  We need to do it all over again.  The online world will be there at any time, but not the ideas and values that make us good companies or good customers.  Time to stop and think about COMET and businesses in general.

Forgive me because I sinned, I forgot my password !

A new bank account, a new security system to learn on top of everything else that goes for me in the cyber world.  Using the magic of the internet I tried to transfer money from one account to another.  The new account came with instructions to change the passwords (not only one) which I did, but forgot those.  

So it was time to phone the bank and ask for forgiveness.  I confessed my sin (sorry I forgot my passwords), and then I was given the opportunity to redeem myself by revealing many more details about my identity.  Ok, this time I remembered details quickly, and I was sent letters with new security details which I have learned now by heart, I promise not to do it again (I mean forgive such vital information).

But then when trying to transfer money to this new account from my old bank account, disaster happened again.  The amount to be transferred looked suspicious for the system, it had to be referred for later approval.  I tried a different route by transferring smaller amounts, and this is when my online access was blocked.

Another phone call to make (not that they are cheap!).  And more questions about my identity.  Telephone security number?  I had forgotten all about it.  I had to go then through about 20 more minutes of questions and calls transfers, plan B of security check it seemed.  Some of the questions were the same as at the beginning of the call, only they were asked by different people, all of them wanted to follow the protocol, to make sure I am who I say I am.  I finally passed the test.  Explained (again!) what had happened and then I was forgiven for the second time in a single day by those who protect my identity.  

The whole thing has made me think about our security systems and how as they become more sophisticated they also become more demanding of our memory and of what we may have said or done.  So I will have to have my own security information stored somewhere else than my memory (not that I am getting too old) and remember specific details for specific accounts.  As if they were members of my family or my close friends group whose birthdays, jobs, family details, pregnancies and bereavements among other things I must remember.  

There is a third bank account which operates differently from the other two...but let us leave that for another post.  

The road to networking success might be an old one but travelled with new wheels

Recent news in the world of business show that many retailers are re-considering their strategic position.  Some of them have seen that position being under threat given the entrance of new players into their markets.  Technology seems to be playing a key role but still the strength of many companies seems to be what they do well and who they do this with.

I recently wrote about the TESCO case, and with my students we looked again at what TESCO should be doing to retain if not attract their customers.  TESCO has lost ground to other supermarkets, possibly because customers have become more in tune with what the competition offers:  more attractive shops, more focused and tailored offers, and in general a better experience.  

In other sectors, companies like BLOCKBUSTER have also seen their market share reduced, because competitors are now offering the experience of watching a video through an electronic channel.  BLOCKBUSTER is now closing some of its stores in countries like the US (I also learned they are closing stores in other countries like Colombia).  The UK has now seen the entrance of competitors like NETFLIX and LOVEFILM.  The fight is on to attract or retain customers.  

Both TESCO and BLOCKBUSTER still have a critical mass of customers, and it would be more costly to attract new customers than retaining existing ones.  This is why other companies like FACEBOOK are investing in acquisitions (i.e. INSTAGRAM), because in a way, they want to buy customer groups (INSTAGRAM has already attracted more than 20 million customers in less than 2 years of operation).  An acquired company can not only bring their customers, it can also bring a new technology to serve them.  

So networking is taking an interesting avenue of development:  working or buying channels of distribution which at the same time bring know how on new technologies.  Perhaps TESCO and BLOCKBUSTER can take stock from what FACEBOOK has just done.  

This is not to say that both TESCO and BLOCKBUSTER need to find solutions to their crises outside them. On the contrary, they need to review what value they are offering to customers and see if they can learn from their competitors or future collaborators.  Thinking strategically of how companies deliver value needs to be on the table.  TESCO might have lost that in their attempt to be good at everything.  BLOCKBUSTER might have lost it by not considering that technology can make life easier to their customers.  Perhaps they need to add technological value to what they are about.  This might mean they need to travel the old road to success, what they know best, but with new wheels. 

Listening to and Pleasing : What a difference!

Last week I was teaching a class about project  management to my students, so I started with the idea that a project is to meet a number of needs from stakeholders.  As usual and (un)fortunately, another idea came to my mind about how projects are born.  We tend to think that we are to continuously please our audiences (customers, students, even the wife!), so we are here for them, so as to make our jobs worth pursuing and worth paying for.  But somehow I managed to make a distinction between listening to and pleasing.

Pleasing seems to be a common trait in the work of many managers and specialists.  They want to give their audiences the best: "The customer is always right!" we hear and often accept.  The more expert we become, the more we think we 'know' what our audiences want.  But if we are going to better understand their needs, what they want to achieve in life, and more importantly how we are to support them in their life quests, it is essential to look at how we listen to them.

I said to my students: Imagine if I please you continuously, what challenges would you have to meet by yourselves?  What sort of core ideas and concepts am I going to offer to you for you to solve real life problems?  How can I stretch their minds if I just please them with all the answers, superficial content, whilst they continue browsing through their mobile phones and laptops the latest gossip in Facebook?  What if you always do what the customer says?  You should always reply to their requests, but that is different from pleasing them.  

I am not against Internet browsing (I do it a lot, even to look for the latest reviews of products that I have already bought!), as long as it does not take over concentration.  Turning this situation for the better, it seems that when 'browsing', students and customers (me included) are looking for something else in our lives. As managers and educators we should be listening to ourselves and our audiences, trying to see the bigger picture.  What is it that we really mean?  What is it that we want to achieve?  What are their worries?  

I might not be able to please myself or my audiences fully, but at least I can try to think of our and their needs and expectations.    This might take time and patience, also letting go of our idea of "thinking about the product that is to meet their needs" and replacing it for the idea that "there is a person there with a problem or a need, and I will see that I do what I can that fits both of our circumstances and help us both".  This can apply to many activities in projects, including their definition and their planning.  

And if this applies to work, how could it apply to the rest of our lives?  

Time to listen, what a precious think to have.  Listening and Pleasing, what a difference! 

What do we wait for? E-commerce during recession time

This week I gave a lecture to my students on e-commerce. When I was finishing its preparation I decided to include a few suggestions for them if they want to start an e-commerce site.

Suggestions turned out to be more about what to do with a business idea, and looking for good ideas for good businesses I decided to show a short video of Martha Lane Fox, co-founder of lastminute.com

Many people who know about what happened in the 1990s with the '.com' bubble burst would acknowledge that many e-commerce failures were not due to technology, but to lack of planning, lack of good relationships with suppliers and sellers of products, and more importantly, frenzyness.

Textbooks suggests that a proven business model is a key factor for an e-commerce site to succeed, but in the case of last minute, there was little in the way of a model that connected those who had products/services to sell, with those who were looking for them, doing a 'last minute search' on the internet.

Martha Lane Fox strikes me as a gentle but determined person, who presumably also had a good network of people to start with, and an curiosity to find out things and try out possibilities. She encourages people to think big, start small, and keep going. Wise words I think.

In another class students to whom I asked the question "What are we waiting for to start your own e-commerce business" complained 'almost immediately' that during recession times it is very difficult to start. So I told them what a wise person told me once: There is a difference between a job and an employment. The first one needs to be done regardless. The second one is a paid one.

I guess now there are many jobs to be done, connecting people, brokering information, listening carefully to what is really needed in our countries and societies. Many people (me included) find it difficult just to buy things (like the latest mobile phone!) or continue consuming what we used to consume. But I am sure if the right product comes along, I will think again.

Those people who might not feel it is a right time to start, could also think of their networks of people. I finished my lecture with another question: "Who are going to be your friends / contacts in a couple of years time?" Maybe it is time we all dig our well before we get thirsty, in case you want to have a look at the book with this title.

So what are we all waiting for?

Mining through systems: Facebook and Tesco

Facebook and Tesco supermarket (private companies) seem to be going in opposite directions right now. The former is increasing its share value, the latter has diminished it. Both companies work with information systems that are generating benefits but also headaches.

I am not an expert in valuing companies neither am I knowledgeable of initial public offerings (IPO). But I can venture to guess why is it that the information systems of these companies seem to be playing a key part in the companies current valuation and with it in their successes or shortcomings.

Facebook could be offering any potential clients a database of active customers who increasingly spend more time in the Facebook site. Advertising from this database could increase sales for those announcing in Facebook. With new applications coming to feed from and into such database, we now see that our preferences and those of our 'friends' could be used for those wanting to sell us things. Moreover, those individuals or organisations who want to remain connected to customers or to other people can do it through Facebook. The value of 'attention', the value of 'retention', and the value of 'networks' are now playing in Facebook's favor.

It still remains to be accurately seen though, how much conversion to sales can Facebook offer from its advertising.

Tesco supermarket is one of the textbook cases that we normally use to teach our students about management information systems and in particular data mining. Tesco was/still able to gather data from its customers, mainly purchasing habits. This data feeds into the systems that forecast demand and connect to Tesco's suppliers. A sophisticated system that enables managers to track the behavior of customers and products, and act appropriately.

As with Facebook, it remains now to be seen how their data mining systems can help Tesco 'recover' or 'bounce back' from their disappointing end of the year sale season.

One thing to consider though is that (un) fortunately Tesco and Facebook databases do not store everything about us. They do not store our worries, the tricks that we do on a daily basis to get by money wise, or if we decide to go with the competition. They can store what we fail to do (yes, we did not turn up to buy things, or we did not comment on the status of our friends, we did not upload pictures from our last trip, sorry). But they do not ask us questions unless being told to do so by a software application and the person in charge of it.

You might say that there is a problem of quality here, that without good quality data or good quality products and services to provide there is not much that data mining systems can do. But rather than focusing on 'data', maybe these systems should start asking us questions. Not the questions of the sort "What do I need to do for you to buy from me?", but "How can I help you to live your life better?", "What is going on in your life?" or by really listening to what we have to say. Here data mining can still play a role if we direct it to answer these and similar questions.

IT Education and Joy

Last week in the UK, the government has announced plans to reform education in information technology (IT) in schools. This follows an imminent report to be published soon in which existing education does not fare very well. I read some of the news paper articles and could pick up a feeling of 'boredom' with the ways in which IT is being currently taught. There are complaints about the tutors who often do not inspire their pupils to get interested in what technology (mainly computers, computer programmes) can to for them.

During last week also, other news reported that school children are not happy, again, they get bored easily, they become anxious with the current economic climate. The family home does not seem to be for many a place where anxieties can be soothed or transformed positively into opportunities for learning and sharing life together.

IT education is not and should not be about getting pupils to consume more technology. The government is encouraging collaboration to find ways of motivating pupils to program their own software applications. This is only part of a more comprehensive plan to bring joy back into education. Joy is about discovering who you are and who you can become with appropriate support. Joy is also about recognising other important things in life than preparing ourselves to get a job and get on with plans to grow up and be 'someone'.

IT should be a window (but not the only one) through which pupils discover the world and by doing that they discover themselves. It should not become a communication barrier in the family environment. Yes, the kids are enjoying the latest video games, they all have mobile phones and tablets, they have a computer and they draw and paint fantastic works of art, but they do not talk to their parents as they used to...

There is a deeper problem here. The problem of collective joy. Who does not remember watching a film together at home with siblings. In my house it was me, my brothers and sisters, my parents. My father also took us to watch films at the cinema. He wanted all of us sitting in the same row. Many of these experiences were very joyful. They remind me of me and the family, of the family and me.

I keep encouraging my students to work together, and help each other whenever possible, so if they discover something, they did it together. I hope the UK government and others who are looking at transforming education keep the simple and joyful things that make education worth going for.

Technology and Trust

2012 has started with many expectations about new technological developments. Just recently I was reading about the plans of Google and Apple to get into the interactive TV market. New TV sets would connect to the Internet and would offer programmes on demand. I am also sure we will also see more and faster mobile phones, mobile applications, cloud services and security developments in the next few years. In the UK, these will also be enhanced by the availability of information and content for the Olympics.

2011 has left us though with a feeling that not technology but our institutions, organisations, markets and society in general requires us to rethink how best we can manage them. The occupy and spring movements reflect a desire to establish new ways of communicating, deliberating and addressing pressing problems. With less to spend and invest, many organisations are also asking themselves how they can become part of the new landscape they are in. Going global seems to have been an alternative but now organisations have to look after the trees as well as the forest, something that perhaps the markets have not done so well.

For us as IS users, educators, designers or managers, the challenge starts in making sure we rebuild the trust of our audiences. This trust seems to have been eroded by the lack of appropriate responses to crises. Not only we need to 'stop', and 'reduce' what we do as we did last year, but we also need to start thinking of new ways of doing our jobs. Perhaps it is time also to re-define the core of what we do.

It was Peter Drucker in his book "The Effective Executive" of 1967 who suggested that we are all managers, and that as such we need to think of the value that we offer to our organisations and societies. We should focus on outwards contributions, those which our audiences value. With the advent and now widespread use of the Internet, these audiences have become global, but at the same time what we offer has become a commodity rather than a relationship. We might have stopped considering the importance of relationships and how we contribute to them with something valuable.

It is in relationships where we build trust not as a commodity but as an essential property of being human. It is time we think of using technology to facilitate communication to rebuild the trust that seems to have diminished with situations of crisis and also with situations of prosperity. Many would say that it is only in the former where trust suffers. But I also think that the good times can lead us to want more and get more from each other to limits that could then affect the trust we have in each other.