Mini-podcast: Listrak's Ross Kramer on not investing in sales and marketing

An audio story from The Mistake Bank.

When Ross Kramer started his first technology business, he focused on the technical side to the exclusion of sales and marketing. In retrospect, that was a mistake.

You can download the story here.

Biography:
Ross Kramer started his first company, a web hosting firm named Vertex Internet, in his Penn State dorm room in 1997. He quickly noticed the struggles his customers were having in communicating with their customers efficiently and effectively, so he started Listrak to help with their email marketing needs. Under Ross’ direction, both companies have grown into technologically-advanced companies that are leaders in their industries.

Listrak services clients such as Daimler Chrysler, Motorola, L’Oreal and the Islands of the Bahamas from its Lititz, PA headquarters. Listrak is a two-time winner of the Central Penn Business Journal’s Top Fifty Fastest Growing Companies and the 2005 Growth Company of the Year by the Technology Council of Central PA.

Tags:
learning, Mistake Bank, sales, marketing, technology, podcast, investment

More insight on the Honda Fuel Cell vehicle

If you read today about Honda's new fuel cell car (here or here), you may be interested in a fuller discussion we had on a recent podcast.

automobiles, environment, technology, fuel cell, green technology, podcast, corporate social responsibility

Mistake Bank featured in the Ning blog

Ning is the platform that hosts The Mistake Bank and more than 300,000 other social networks (!). In the Ning blog, they feature a few networks each day that use Ning. And last night, they posted a nice writeup of The Mistake Bank. Did you ever notice this: when others discuss an idea you have, they often explain it more clearly than you can! Please check it out.

And if you're interested in starting a social network, for a class reunion (like my wife did) or any other purpose, I'd highly recommend Ning. It's highly functional and exceptionally easy to set up, maintain and customize. (Note: I have no connection with Ning other than as a user of their software.)

Ning was founded by Gina Bianchini and Marc Andreesen. Andreesen previously had founded Netscape and Opsware, two highly successful startups. I think he knows something about growing successful companies.

Related Post:
"The Breakthrough Company": wise advice for the emerging entity

Tags:
Mistake Bank, social networking, technology, entrepreneurism, growth

US third broadband option an elusive goal

Earthlink's withdrawal from the municipal WiFi business, leaving the future of networks in Philadelphia and other cities uncertain at best, and similar news from MetroFi, has closed a chapter in the search for alternatives to the phone company and the cable company for a third broadband competitor.

Third-tier cities and rural areas are most affected. When the cables and telcos are offering higher-speed services (like Verizon's FiOS), they are doing so in the major metro areas. So it's not surprising that cities themselves are getting, perhaps reluctantly, into the broadband business. The efforts of Chattanooga, Tennessee, to build out a municipal fiber network, are profiled in a recent article in the Wall Street Journal.

While covering US broadband problems profiled before in this blog, like lower coverage, high prices and relatively low speeds compared to other countries, the WSJ article usefully shows the impact on customers, especially business customers, of poor broadband availability and performance:

In a converted saddle factory here, Jonathan Bragdon, 38 years old, runs a 40-person company that he says couldn't exist without a lot of affordable Internet bandwidth. Seven of his employees live and work in other cities, including New York and Leeds, England. His business, called Tricycle Inc., transmits high-resolution 3-D simulations of carpeting to interior designers.

More important than download speed for such work is upload speed. Yet, on most connections it often takes longer to upload files to the Internet than it does to download them from the Internet. With Comcast, Mr. Bragdon was getting a download speed of eight megabits a second, but an upload speed of only one megabit a second.

About two years ago, Tricycle switched to the EPB's fiber network. Mr. Bragdon says that lowered his costs several-fold and gave him the flexibility to upgrade to speeds as fast as 100 megabits a second. "With the rivers and the mountains, young people want to live here," says Mr. Bragdon. "But you need good bandwidth to work here."

Let's hope businesspeople like Mr. Bragdon can get the bandwidth they need, from whatever provider. And if the cables or the telcos won't provide it everywhere it's needed, perhaps the municipalities will have to.

Related Posts:
US broadband prices vs. the rest of the world: nothing has changed
US consumers need a third broadband option

Tags:
broadband, technology, pricing, Wall Street Journal

Move to Intel chips helped Mac hit the jackpot

When the Mac's move to Intel chips was announced almost three years ago, it seemed like a good, practical move. The PowerPC chip was falling behind Intel, performance-wise, and Apple wanted to leverage Intel's much larger investment in performance and capability. Intel, for its part, wanted the sexiness of being associated with a cooler brand than Dell, Lenovo, etc.

But the full impact of the processor swap is only now becoming apparent. Yesterday Apple stated that its latest quarterly earnings rose 36% over the same period last year, powered by a 51% increase in Mac sales. The Wall Street Journal buried this telling passage into its article on Apple's earnings release:

Apple's computers now also easily run Microsoft Corp.'s Windows operating system, which has helped Apple in a long-running campaign to persuade Windows users to switch to Macs.

Precisely. The Intel processor was a Trojan Horse hiding Windows compatibility--the real value of the switch from PowerPC. Eons ago, people in companies used Macs all the time (it was on my desktop in 1989). Then Windows 3.1 swept through the business world, and Macs retreated to schools, graphic designers and filmmakers.

Now, people who require some Windows programs (because of work or other reasons) can retain that compatibility and get the benefits of OS X and all the interesting applications that run on it.

One of those people is me. The Mac returned to my desktop in August 2007 after a 12-year hiatus. It's good to be back.

technology, personal computers, Apple, strategy, Wall Street Journal

The new media onslaught is making entrepreneurs out of creators

An article from the New York Times earlier this week ("Bridging The Gap, The Sequel") starkly illustrated that venture capitalists from Silicon Valley and creative types from Southern California are having difficulty cooperating to create financial and partnership models for new media.

One of the biggest obstacles, according to the articles, is the Southern Californians' focus on upfront cash rather than long-term equity.

How this situation came to be is easy to understand: when the means of production of creative property were expensive, there was a distinct separation between the "suits," who raised needed capital, and the "talent," who wrote, acted, sang, directed, etc. The suits financed productions and paid the talent, who worked job to job. It was in the talent's interest to get as much of their payment upfront as possible because (1) they didn't know when their next job would come through and (2) the suits could, and wanted to, maintain full ownership of the property.

Now production costs can be much smaller, for music, video, text, etc. Prices for distribution are coming down too as new outlets emerge for digital distribution. And media companies are looking to hedge their risk as the old moneymakers (CDs, DVDs) erode.

As a result, an entire new entrepreneurial class has emerged, between the suits and the talent, combining the ability to raise money, cut deals, etc., with songwriting, producing, or acting. Around this "middle class" is a new set of technology and business enablers that are providing key pieces of the production and distribution infrastructure for these creators. (This edition of the radio program "Fresh Air" discusses some of the new models and companies emerging in the music business. Companies like Indieflix provide distribution services for video/film producers.)

Here's an example of the new world order for music: the LinkedIn profile for Fran Ten of the LA band West Indian Girl:

oversee and run all the departments of the west indian girl business - management, marketing, new media, touring, merchandising, promotions, licensing, legal, accounting, art, etc etc.

music is a business and musicians that dont understand this are at a disadvantage.

this job is just as much a blue collar job as the one i had in high school working at a brake factory in grand rapids, mi. sometimes i think it's even dirtier.

Technology advances have made internet video and mobile entertainment accessible to consumers on a wide scale. The business models are lagging behind. The old way--suits and talent--isn't going to be able to work them out. The "middle class" will have to do it.

(Photo: a still from "Fields of Mudan," the all-time best-selling DVD on Indieflix.)

mobile, media, alliances, technology, music, video, business models, New York Times

CTIA Day 2 - a look back

broadband, technology, wireless, mobile, CTIA, Wireless 2008, Las Vegas

Most interesting discoveries of CTIA Wireless 2008

As I wait in the Las Vegas airport for my flight home, here are the most interesting discoveries I made at this year's show.

Chargebox - they sell a neat vending machine to recharge cellphones.

Wildwave - a Canadian company that creates and distributes mobile digital content.

Jygy - an SMS-based social network tool (disclosure: I know some of the leadership of Jygy, though this week was my first look at the system)

dial2do - one of several voice-to-text companies at the show, their software is focused on processing oral commands, such as composing and posting Twitter updates completely by voice.

broadband, content, technology, wireless, mobile, CTIA, Wireless 2008, Las Vegas

CTIA Day 1 - It's Vegas, baby

As Dan Meyer pointed out in RCR today, CTIA is just more fun this year. Is it the Vegas factor?



broadband, technology, wireless, mobile, CTIA, Wireless 2008, Las Vegas

EV-DO is a bit of a miracle

I'm in Las Vegas for CTIA, and so it's appropriate that I'm connecting on the web via Verizon's EV-DO service. (WiFi coverage in the hotels is lousy, plus it costs $12.99 per day.)

My first CTIA was New Orleans in 1992, and if I recall correctly, McCaw Cellular began developing the CDPD (cellular digital packet data) service around that time. That service didn't do much of anything, but now, sixteen years later, mobile broadband is a fixture.

broadband, technology, wireless, mobile, CTIA,
Wireless 2008

Innovative Irish company gets the red out

Traditionally, photography has been an edit-after-the-fact art form. In the film era, this meant taking lots and lots of pictures and discarding the ones that didn't come out right. Early digital photography has used editing programs like Photoshop to eliminate red-eye or improve lighting after photos have been downloaded to a PC.

An innovative Irish company, FotoNation, has developed technology that allows photo improvement to occur before the picture is actually taken. As profiled in today's Wall Street Journal, the company has developed a compact software program that eliminates red-eye in flash photographs before images are written to disk, among other innovations. Nikon and Kodak are building FotoNation's technology into their digital cameras.

Another interesting point about FotoNation: despite being founded in Galway, Ireland, the founder is Israeli and the chief engineer is Romanian--another example of the growing heterogenizing of Ireland's technology sector.

technology, innovation, software, photography, Wall Street Journal

US cable giants find a way into wireless

People have been wondering how the cable companies would establish a wireless presence (forget for a moment that they owned part of Sprint PCS but sold it off years ago). Several of them established the Pivot program, with Comcast, Time Warner, etc., acting as value-added resellers of Sprint's network. But in my experience with the cable companies, they like to own the network. Leasing is not their cup of tea. Given that, it was a bit of a surprise that they chose not to bid in the recent 700MHz wireless auction.

Now comes the news that Time Warner, Comcast and Bright House Networks (three members of the Pivot consortium) are in discussions to invest in a Sprint-Clearwire WiMax joint venture. Rumors of a tie-up between the two most prominent WiMax service providers have swirled for months, especially given Sprint's recent troubles.

This is a perfect situation for the cablecos, in my view. They get access to a full near-nationwide network, cost-sharing, and a bit of a head start on the big wireless players Verizon and AT&T on 4G.

Looks like there's another nationwide broadband competitor. Hooray!

broadband, technology, wireless, WiMax, cable,

Shop Talk Podcast #6 - Todd Mittleman on Honda's Fuel Cell car

[UPDATE March 2009. New podcast with Todd Mittleman can be found on our new Customers Are Talking blog.]

On this edition of the Shop Talk Podcast, I talk once again with Todd Mittleman, Director of Environmental & Safety Public Relations for Honda, this time about the Clarity FCX, Honda's fuel cell car for the mass market, to be launched sometime in the summer of 2008. (You can find our first interview here.)

If you've ever wondered what on earth a fuel-cell is and how it can power a car, and how you can drive in Southern California's carpool lanes with no one else in your car, you'll want to listen.

Please right-click and save here to download the podcast.

automobiles, environment, technology, fuel cell, green technology, podcast, corporate social responsibility

Shop Talk Podcast #5 - Todd Mittleman of Honda on Green Automobiles

On this edition of the Shop Talk Podcast, I talk to Todd Mittleman, Director of Environmental & Safety Public Relations for Honda, about environmentally-friendly vehicles.

I confess that all the "green" options make me a bit dizzy--hybrid, E85, fuel cell, all-electric, clean diesel. Todd helps put the various environmental considerations--fuel efficiency, emissions, carbon footprint--into context for us. And, of course, he talks about the cars Honda has now and in the future for the environmentally-conscious driver. It's a very interesting conversation.

Please right-click and save here to download the podcast.

automobiles, environment, technology, green technology, podcast, corporate social responsibility

700Mhz auction: who will be coming to Harrisburg, PA?

Depending on whom you read, the auction is making good, predictable progress or barely inching forward. I agree with the former. The nationwide C-block package, the one with open-access requirements, is approaching its reserve amount. The total bid is closing in on the pre-auction estimates of "over $10 billion." All this with less than a week gone. So I think we'll be fine, in spite of the slow bidding thus far for the D-block, public safety band.
So the real question is:

If the 700mhz band is wireless "beachfront property," then who wants to build a trashy wireless boardwalk in my town, Harrisburg, PA?

For answers, I turn to Greg Rose's Econoklastic blog, which has been the most insightful resource I've found about the auction, and the stories behind it. Greg has done a sprawling, six-part post (1, 2, 3, 4, 5, 6) on who might be bidding for which slices of spectrum. What does Greg think about Harrisburg, or, more specifically, the Harrisburg-Lebanon-Carlisle A- and E-block components?

Verizon will be aiming at the nationwide license bundle. But others, such as MetroPCS, Cricket, and Alltel, who need to fill in coverage gaps might be interested. While most of these folks would prefer the larger B-block licenses, they will use the A's and E's as fallbacks.

How about cable companies? Sorry, no. The qualified bidders (Cablevision, Cox, Advance/Newhouse) are expected to stay in their regions. Our dominant cable provider, Comcast, is sitting the auction out.

Chevron, a wild card? Greg expects them to target offshore regions where their oil platforms reside.

And, of course, Google. They are aiming at the nationwide C-block package. I for one really want the opportunity to buy a Google phone and subscribe to Google service. I can't imagine what that would be like, except I'm pretty sure it wouldn't resemble the wireless experience as we know it today.

We can only hope they're successful...

(Photo by weirdvis)

broadband, technology, wireless, Google, 700MHz auction

700 MHz auction - away we go

The long-awaited (and I mean long-awaited) 700MHz spectrum auction kicked off yesterday with the first two rounds of bidding. To maintain bidder confidentiality and try to prevent gaming the system, individual bidder names are not released--results only reflect the total amount bid in each individual auction.

The bottom line: a lot was bid yesterday, but nowhere near the FCC's "reserve" amount. This is especially important for the C-block spectrum, which will have open access requirements should the amount bid exceed the government's target of $4.65 billion (which Google, the most prominent name in the auction, could fund out of petty cash).

The C-block nationwide bid was for $1.2 billion, a tidy sum, but a long way from $4.65 billion.

Some quick facts on the auction method being used:

• C-block spectrum is segmented into three packages: a "nationwide" license, one covering the Virgin Islands and Puerto Rico, and one covering US Territories in the Pacific.
  
  
• D-block spectrum is in twelve regional segments.
  
  
• Bidders submit sealed bids each round.
  
  
• Software calculates minimum bids required to continue participating in the auction and publishes them. Bidders can choose to place the next bid at the minimum amount or drop out.

And so it goes, until there are no more higher bids. As long as the FCC's reserve amount is met, the auction is done and the winners pay for their licenses. If it's not, the licenses are not distributed and we do it all again.


broadband, technology, wireless, Google, 700MHz auction

Hats off to those who made free software into a successful business

I have been stuck in Chicago for three hours--snow in Chicago, snow in Harrisburg--and it looks to be at least another two hours before I get out. So, I've gotten a glass of wine here in the United Red Carpet Room and am prepared to stay here a while longer.

This is a roundabout way of saying that what I planned to write about, how CEOs cannot delegate strategy, will have to wait for another day.

Instead, let's talk about open-source software. ("What?" say the readers. "We were expecting something interesting!") For the uninitiated, open-source software's programming instructions (source code) are freely available and modifiable.

It sounds like a joke. Imagine coming into a venture capitalist's conference room, firing up the laptop, and announcing, "Our business sells free software...we're looking for a first round of $5 million."

"Get out of my office!" says the venture capitalist.

But today comes news that Sun Microsystems will pay $1B for MySQL, distributor of the free relational database software of the same name. And Bob Young, the founder of another open source company, Red Hat Software (most recent quarterly net income: $20 million) was profiled in "The Opposable Mind" (reviewed earlier this week).

Call it Open Source Week.

So how do open-source companies make money? By packaging that free software into standard releases, providing maintenance and help-desk services, to businesses that want to use open-source products.

The businesses' IT staffs could download the source code over the internet, compile it themselves, then distribute it to their own servers for installation--all free. But the volume of open source modules and the frequency with which the modules change add up to a major headache to companies who want a stable, predictable environment for their web sites or other applications.

The genius of the successful open-source companies, therefore, was to recognize a value niche between the chaos of truly free software and the large license fees of proprietary software like Windows. They sell open-source subscriptions at a fraction of proprietary license fees--that offer a stable, supported product to risk-averse corporate customers.

Add it up, and it's worth a pretty penny--or a billion dollars to Sun.

technology, software, open source

Reviewing the recent 700MHz auction chatter

Awaiting the 700MHz wireless spectrum auction, which begins on 24 January, is a bit like waiting for the Super Bowl. There's endless speculation, story-making, background, and then it's finally game time.

On second thought, it's like waiting for the Super Bowl if you are one of the probably 10,000 or fewer wireless fanatics out there. For everyone else, it's more like waiting for nothing at all.

At any rate, apologies to the millions who don't care about the spectrum auctions, and on to the recent chatter:

Harold Feld on Wetmachine discusses Google's motivations for bidding in the auction. While there has been some speculation that Google is simply bluffing, Harold is certain Google will participate and win. I agree with him.

Some of this speculation results from analysts' puzzlement over what Google will do with the spectrum, given that their business is as far from a network operator as you can get. To me, Google's strategy is very simple: win the auction, then lease the spectrum to people who will adopt Google-friendly (euphemism: "open") access rules for content providers.

Ike Elliott, on Telecosm, forecasts that Google winning spectrum will accelerate the development of the mobile VoIP market. As a hard-core Skyper, I'm rooting for that outcome.

Chetan Sharma in GigaOM describes the uneasy alliance/battle between network operators and media companies, which the auction results will affect.

For those interested in arcane mathematical models, Caltech rode on the coattails of the 700MHz auction hype to issue a press release describing how one of its professors created the bidding approach that the auction will use.

Finally, Rhonda Wickham, in Wireless Week, talks about the possibility that the auction may turn out to be a lot less spectacular than the anticipation would warrant.

On reflection, maybe it's not so different from the Super Bowl after all.

(Photo: "Countryside Auction" from jansun via stock.xchng)

broadband, technology, wireless, Google, 700MHz auction

News flash: companies can't succeed in the technology business all by themselves

From CES, the New York Times Bits blog reports that "the monolithic corporation" is in decline, replaced by networks of alliances, creating "a chaotic alchemy that is making business noisier and strategy even less pointed than in years past here."

While the acknowledgement of the importance of alliances is welcome, from my perspective, the only news about this is that it is news. Doesn't everybody know that companies can't do it all themselves anymore?

innovation technology alliances

Here comes the US 700MHz wireless auction

On January 24, the US Federal Communications Commission will auction off 62MHz of spectrum in the 700MHz band, where ultra-high frequency broadcast television channels operate today. This frequency range is perfect for high-bandwidth, long-distance propagation--i.e., wireless broadband.

We've written in this space that the US desperately needs more broadband options (see here and here). So this auction could (hopefully will) help reshape the broadband competitive landscape. Over the course of the auction, Shop Talk will post on its progress, the main players, and what it could mean for the US wireless and broadband industry.

Stay tuned.

To whet your appetite, read these excellent posts from Gregory Rose's Econoklastic blog covering all the companies that have registered to participate in the auction (1, 2, 3).

broadband, technology, wireless, 700MHz auction