Live by Free, Die by Free?
There is a spirited debate going on over at Mark Cuban's blog about the risks of a "free" strategy, a topic that's been in the news lately thanks to Chris Anderson's new book (which you can read for free at Scribd.)
There is a spirited debate going on over at Mark Cuban's blog about the risks of a "free" strategy, a topic that's been in the news lately thanks to Chris Anderson's new book (which you can read for free at Scribd.)
As part of New England Innovation Month, this Thursday will see What’s Next in Tech: Exploring the Growth Opportunities of 2009 and Beyond.
- Michael Greeley, General Partner, Flybridge Capital Partners
- Mike Dornbrook, COO, Harmonix Music Systems (makers of "Rock Band")
- Helen Greiner, co-founder of iRobot Corp. and founder of The Droid Works
- Brian Halligan, social media expert and CEO of HubSpot
- Tim Healy, CEO of EnerNOC
- Ellen Rubin, Founder & VP/Product of CloudSwitch
- Bijan Sabet, General Partner, Spark Capital
- Neil Sequiera, Managing Director, General Catalyst Partners
The conversation will be moderated by Scott Kirsner, Innovation Economycolumnist at The Boston Globe.
Don't hold your breath.
Except as provided in this chapter, every contract by which
anyone is restrained from engaging in a lawful profession, trade, or
business of any kind is to that extent void.
The California law does make some exceptions around the selling of a business, but is much more comprehensive than the proposed Massachusetts version, which goes on for several pages and merely requires non-competes not go "beyond that necessary to protect the employer’s legitimate business interests. There's a very informative Web site on this issue at www.prohibitrestrictiveemploymentcovenants.net.
Several of my colleagues from VSee were in Washington, DC this week, supporting an event for the UNHCR in which Angelina Jolie and officials from the UN and US State Department talked live to refugees at a camp in Chad.
One of VSee's engineers, Yuen-Lin Tan, has been keenly concerned about the plight of refugees in Africa, and got a chance to do something about it last April when he brought some equipment to a camp in Chad that was serving as a home for refugees from Darfur. Yuen-Lin got a VSee running over a satellite link from Darfur to the USA, which you can see in an amazing video. That created a lot of interest from VSee customers, but most importantly it led to an event this Saturday, June 20th, which the UN HCR has designated World Refugee Day.
Starting at 9:00 AM EDT, conversations between the US and the Djabal camp in eastern Chad will be streamed live on the UN WRD web site: refugeedaylive.org. At the camp, a satellite terminal will be connected to a WiFi network, allowing a UN volunteer with a portable PC to walk around the camp, connecting people in the US to people in Chad. Here is Yuen-Lin preparing the equipment to be sent to Chad:
The only thing more annoying than New Yorkers complaining about the lack of a good deli in Boston is listening to people from California and the Southwest saying that we don't have authentic Mexican food. I am glad to say that, finally, they are wrong.
A quick trip through the Callahan tunnel will bring you to Angela's Café, a tiny (24 seat) family operated gem in East Boston that serves the best Mexican food this side of Puebla where Angela Atenco Lopez cooked before joining her son Luis Garcia in Boston.Luis handles the front of the house while Angela can be seen in the kitchen. Both seem to thoroughly enjoy their work - an enjoyment matched by patrons who seem to be a healthy mix of East Boston locals and people who venture from downtown and the suburbs.
Luis reports that crowds have grown considerably since a laudatory review in the Boston Globe. I won't try to duplicate that here, but will say that you should be sure to try the mole and anything that is on special when you are there. Despite their success we still managed to get a table on short notice on a Saturday night, although the place was full when we sat down, so check it out.
Angela's Café
131 Lexington Street
East Boston, MA 02128
617-567-4972
Reservations Accepted
24 seats
Parking - street (but easy to find)
Tonight, Boston marketing impresario Bobbie Carlton held the second Mass Innovation Night at the Charles River Museum of Industry & Innovation in Waltham, Massachusetts. This showcase of local high tech companies drew several hundred attendees and eight companies ranging from raw startups to...IBM.
Tonight's lineup:
I had a chance to visit with a few of these. IBM?Lotus showed off its latest Software as a Service offering built on the Notes/Domino platform: LotusLive. Offering the social networking capabilities of LinkedIn and Facebook, the document sharing capabilities of Domino, eRoom and Sharepoint, and the collaboration features of WebEx and Sametime, LotusLive can connect people inside and outside the enterprise for $45/month.
Pixily is a good example of the simple but useful type of service enabled by cloud computing. For $14.95 a month, Pixily will let you send them a postpaid envelope of documents. They will scan them and store them on the Web (using Amazon S3) and then either shred the documents or return them to you. They also OCR them, so you can search by content. They were handing out green Tyvek envelops good for a month's service.
Nexiwave was not giving a demo, but they were describing a new voice conferencing service that does speech recognition on the conversations. (They claim 85% accuracy). While they aren't yet available in real time, the transcripts offer the capability of searching for keywords in a meeting - shades of the omniscient computer from Star Trek that could play back any scene.
The venue for the event is interesting in its own regard. Housed in Francis Cabot Lowell's factory in Waltham, the Charles River Museum of Industry & Innovation houses exhibits of the watchmaking business that once dominated Waltham, a collection of early steam engines, and part of the Whirlwind computer. I put some pictures here.
The next Mass Innovation Night is June 10, 2009.
According to WCAX News, someone hacked a trailer-mounted dynamic message sign in Colchester, Vermont to warn motorists to turn back or face an impending zombie invasion. To add insult to injury, the hackers protected their message with a password, requiring the construction company to turn the sign around until they could consult the manufacturer to get the master password.
"There will come a time when you believe everything is finished. That will be the beginning."
-Louis L'Amour in Lonely on the Mountain
Gartner Hype Cycle
In preparation for an upcoming event, Scott Kirsner, columnist for the Boston Globe and observer of the local high tech scene, challenged participants to come up with what they thought were some of the biggest growth opportunities right now in technology.
My first thoughts were to look to life sciences and clean energy, but both require enormous capital outlays, which are in short supply these days, and/or scientific breakthroughs. That seemed to put the time horizon beyond Scott's "right now" requirement and led me to William Gibson's observation that the future is already here - it's just unevenly distributed. I just needed to sort out where various things were on the Gartner Hype Cycle. So in preparation for answering Scott's question, here are some thoughts on the hot areas of the moment:
Social Media. Mary Hodder may regret having popularized the term now that it seems everyone you meet is a "social media consultant," your Mom is on Facebook, Ashton Kutcher has a 1.5 million Twitter followers and Oprah is catching up fast, but Twitter and Facebook don't seem to be anywhere close to their peak. Sure it's possible that some new company will improve on the concept and eat their lunch (anyone remember Alta Vista?) and Twitter will probably get sold for a billion dollars before anyone figures out its business model, but people will always want to keep up with their friends and, more importantly, tap into a web of people they trust to find information and make decisions. A local company that I am advising, Daily Grommet, is applying this concept to e-commerce, which may be the way someone finally figures out how to make money with this stuff.
Cloud Computing. The idea that the heavy lifting of computing could be centralized and professionally managed has come and gone and had more variations than anyone can count: mainframes, time-sharing, client-server, thin client, Application Service Provider (ASP), Software as a Service (Saas). Most of these never took off because they couldn't match the responsiveness of a personal computing device given the available bandwidth. Cloud Computing is different in that instead of trying to persuade the end-user to give up his PC, it is aimed at getting the IT manager to give up his server. The advantage is not just the economy of scale but the convenience of being able to quickly ramp up that scale without making major capital investments. I knew cloud computing had arrived when one of the engineers I'm working with decided to postpone installing the server he was building and just pulled out his credit card and put the app he was building on Amazon's EC2. Boston has always favored IT infrastructure companies and should offer plenty of opportunity as IT managers everywhere look for ways to manage their applications in the cloud. We'll know that cloud computing has finnaly reached the Plateu of Productivity when Google either abandons its proprietary platform or opens it completely to the outside world.
Voice and Video over IP. Boston has a long history in the telecommunications industry, going back to Thomas Edison and Alexander Graham Bell. As I wrote previously, voice and especially video has been through multiple cycles but now that bandwidth is cheap and easily available it is taking off. The opportunity here is not just in saving money over plane tickets or toll calls but also in the integration of communication into everyday applications. VSee Labs, is in a good position to do both. While it is mainly a west coast company, I am holding down the Boston office.
Mobile Computing. This is another area that plays to Boston's strengths. The tight control the wireless operators have traditionally exercised over the platform has made innovation difficult, but Apple's iPhone and Google Android have started to open things up. There is still the problem of how to make money - although there are thousands of apps in the Apple App Store, they don't sell for a lot of money and the average user doesn't use most of them for long, but as mobile platforms become more powerful they will supersede the PC for many applications, especially for advertising and commerce.
When in doubt, keep in mind what Roy Amara, past president of The Institute for the Future, said:
The event:
The Boston Cyberarts Festival opened this weekend. It's a collection of exhibits and events thoughout the Boston area that meet the criteria of being Art and Cyber, the latter often implying some form of interaction between the piece and the observer.
Georgina Laidlaw wrote on Gigaom's Web Worker Daily about 5 Things You’ll Miss by Not Working In An Office. More usefully, she also offered some coping strategies. Since most of the people at VSee spend more time working outside of the office than in it, we've developed a few strategies of our own, some but not all of which involve using our own product.
As previously reported, I have been serving as Chief Product Officer at VSee Labs since last Fall. VSee has built a loyal following within the US and other governments for its easy-to-use video calling product.The company is profitable and cash-flow positive and is now expanding into the mainstream business market.
Everything should be made as simple as possible, but no simpler.
Recently I was engaged in a discussion about simplicity and how the degree therof can affect the success of a software product. As it turns out, simplicty is complicated, both in terms of how it matters and in what is required to achieve it. And as usability expert Don Norman says in an essay I've reproduced below, once you've achieved it your customers may not appreciate it.
Simplicity Is Highly Overrated
Column written for Interactions. © CACM, 2007. This is the author’s version of the work. It is posted here by permission of ACM for your personal use. It may be redistributed for non-commercial use only, provided this paragraph is included.
Comment: This is one of the most misunderstood of all my columns. So after you finish, read the “Addendum” before you Slashdot or otherwise flame me. Then, if you still disagree, go right ahead and object. I don’t mind criticism. I don’t mind being wrong -- that's how I learn. But it is painful to be misunderstood.
“Why can’t products be simpler?” cries the reviewer in the New York Times, the Wall Street Journal, the local newspaper. “We want simplicity” cry the people befuddled by all the features of their latest whatever. Do they really mean it? No.
But when it came time for the journalists to review the simple products they had gathered together, they complained that they lacked what they considered to be “critical” features. So, what do people mean when they ask for simplicity? One-button operation, of course, but with all of their favorite features.
I recently toured a department store in South Korea. Visiting department stores and the local markets is one of my favorite pastimes whenever I visit a country new to me, the better to get to know the local culture. Foods differ, clothes differ, and in the past, appliances differed: appliances, kitchen utensils, gardening tools, and shop tools.
I found the traditional “white goods” most interesting: Refrigerators and washing machines. The store obviously had the Korean companies LG and Samsung, but also GE, Braun, and Philips. The Korean products seemed more complex than the non-Korean ones, even though the specifications and prices were essentially identical. “Why?” I asked my two guides, both of whom were usability professionals. “Because Koreans like things to look complex,” they responded. It is a symbol: it shows their status.
But while at the store, I marveled at the advance complexities of all appliances, especially ones that once upon a time were quite simple: for example, toasters, refrigerators, and coffee makers, all of which had multiple control dials, multiple LCD displays, and a complexity that defied description.
Once upon a time, a toaster had one knob to control how much the bread was to be toasted and that was all. A simple lever lowered the bread and started the operation. Toasters cost around $20. But in the Korean store, I found a German toaster for 250,000 Korean Won (about $250). It had complex controls, a motor to lower the untoasted bread and to lift it when finished, and an LCD panel with many cryptic icons, graphs, and numbers. Simplicity?After touring the store my two friendly guides and I stopped outside to where two new automobiles were on display: two brand new Korean SUVs. Complexity again. I’m old enough to remember when a steering wheel was just a steering wheel, the rear view mirror just a mirror. These steering wheels were also complex control structures with multiple buttons and controls including two sets of loudness controls, one for music and one for the telephone (and I’m not even mentioning the multiple stalks on the steering column). The rear view mirror had two controls, one to illuminate the compass the other simply labeled “mirror,” which lit a small red light when depressed. A rear view mirror with an on-off switch? The salesperson didn't know what it did either.
Why such expensive toasters? Why all the buttons and controls on steering wheels and rear-view mirrors? Because they appear to add features that people want to have. They make a difference at the time of sale, which is when it matters most.
Why is this? Why do we deliberately build things that confuse the people who use them?
Answer: Because the people want the features. Because simplicity is a myth whose time has past, if it ever existed.Make it simple and people won’t buy. Given a choice, they will take the item that does more. Features win over simplicity, even when people realize that it is accompanied by more complexity. You do it too, I bet. Haven’t you ever compared two products side by side, comparing the features of each, preferring the one that did more? Why shame on you, you are behaving, well, behaving like a normal person.
The complex expensive toaster? I bet it sells well.
What really puzzles me, though, is that when a manufacturer figures out how to automate an otherwise mysterious operation, I would expect the resulting device to be simpler. Nope. Here is an example.
Siemens recently released a washing machine that, to quote their website, “is equipped with smart sensors that recognize how much laundry is in the drum, what kind of textiles the laundry load comprises, and if it is heavily or lightly soiled. Users only have to choose one of two program settings: hot and colored wash, or easy-to-clean fabrics. The machine takes care of the rest.”
Hurrah, I said, now the entire wash can be automatic, so there need be only two controls: one to chose between “hot and colored wash” and “easy-to-clean fabrics,” the other to start the machine. Nope, this washer had even more controls and buttons than the non-automatic one. “Why even more controls? I asked my contact at Siemens, “when you could make this machines with only one or two?”.
“Are you one of those people who wants to give up control, who thinks less is better?” asked this usability expert. “Don’t you want to be in control?”
Strange answer. Why the automation if it isn’t to be trusted? And, yes, actually I am one of those bizarre people who think that less is better.
It appears that marketing won the day. And I suspect marketing was right. Would you pay more money for a washing machine with less controls? In the abstract, maybe. At the store? Probably not.
Notice the question: “pay more money for a washing machine with less controls.” An early reviewer of this paper flagged the sentence as an error: “Didn’t you mean ‘less money’?” the reviewer asked? That question makes my point precisely. If a company spent more money to design and build an appliance that worked so well, so automatically, that all it needed was an on-off switch, people would reject it. “This simple looking thing costs more?” They would complain. “What is that company thinking of? I’ll buy the cheaper one with all those extra features – after all, it’s better, right? And I save money.”
Marketing rules – as it should, for a company that ignores marketing is a company soon out of business. Marketing experts know that purchase decisions are influenced by feature lists, even if the buyers realize they will probably never use most of the features. Even if the features confuse more than they help.
Yes, we want simplicity, but we don’t want to give up any of those cool features. Simplicity is highly overrated.
Don Norman wears many hats, including co-founder of the Nielsen Norman group, Professor at Northwestern University, and author, his latest book being Emotional Design. He lives at www.jnd.org.
Addendum
I’m a champion of elegance, simplicity, and ease of use. But, as a business person, I also know that companies have to make money, which means they have to deliver the products that their customers want, not the products they believe they should want. And the truth is, simplicity does not sell. Why?
One of my correspondents posed the question with great clarity:
After reading “simplicity is highly overrated,” one thing seems to puzzle me. Do you mean that features packed system cannot have a simplistic interface? Or do you mean that people are not willing to pay for a system with same number of features because it appears to have less manipulable things on its interface, and hence looks less capable than some other intimidating-looking complex machine?
The answer is the latter: people are not willing to pay for a system that looks simpler because it looks less capable. Hence the fully automatic system that still contains lots of buttons and knobs. Joel Spolsky of Fog Creek Software has an eloquent description of the problem, and why he too discovered that adding apparent complexity is necessary. See his blog:
http://www.joelonsoftware.com/items/2006/12/09.html
A few others have chimed in to support the notion that complex products look more powerful. One gave an example from Iran:
I find this exaggerated beyond proportion whenever I go to Iran. In the consumer electronics bazaars over there, the perception of luxury / sophistication / desirability goes hand in hand with more features (sometimes useless inaccessible features in the case of cellphones / networks) and anything less/ perfectly usable and functional whether cheaper or more expensive is by default considered far inferior.
In my article I used a Korean example. As a result, many of my readers seem to think I wrote the entire article based upon this one experience. Some seemed to think this was my first and only trip to a foreign (or Asian) country. Amazing. I wrote the article after decades of experience in design, especially of consumer products. The arguments apply universally. Do I travel? Hah. Over 140,000 airline miles in 2006 alone. Close to 2 million documented airline miles total.
Do we have to go to Korea or Iran to find this tendency? Nope. I have experienced this in the United States. Here is one example. I am helping a company design an entirely new approach to one of their standard products. It looks simple. During a user test, one person said that he really liked it, but it was too bad he wouldn't use it.
"Why not?" we asked.
"Because it isn't powerful enough for my particular problem," he replied.
"Try it," we suggested, "we would like to see where it fails so we can make it better."
Well, it didn't fail. it handled his problem just fine. Looking simple was the culprit. if it looks simple, he seemed to think, it must not be powerful.Many of the complaints sent to me provided examples of specific difficulties with poorly designed, complex devices. Hey, I am not advocating bad design. I am simply pointing out a fact of life: purchasers, on the whole, prefer more powerful devices to less powerful ones. They equate the apparent simplicity of the controls with lack of power: complexity with power. This doesn't mean everyone. it does mean the majority, however, and this is who the marketing specialists of a company target. Quite appropriately, in my opinion.
One person truly misunderstood because he advocated hiding the extra controls, thus preserving the apparent simplicity. Sorry: it is the apparent complexity that drives the sale. And yes, it is the same complexity that frustrates those same people later on. But by then, it is too late: they have already purchased the product.
Many correspondents understood this, but presented very sensible, very logical arguments as to why this should not be true. Logic and reason, I have to keep explaining, are wonderful virtues, but they are irrelevant in describing human behavior. Trying to prove a point through intelligent, reasonable argumentation is what I call the “engineer’s fallacy.” (Also, the economist’s fallacy.”) We have to design for the way people really behave, not as engineers or economists would prefer them to behave.
Logic is not the way to answer these issues: human behavior is the key. Avoid the engineer's and economist's fallacy: don't reason your way to a solution -- observe real people. We have to take human behavior the way it is, not the way we would wish it to be.
So, of course I am in favor of good design and attractive products. Easy to use products. But when it comes time to purchase, people tend to go for the more powerful products, and they judge the power by the apparent complexity of the controls. If that is what people use as a purchasing choice, we must provide it for them. While making the actual complexity low, the real simplicity high. That's an exciting design challenge: make it look powerful while also making it easy to use. And attractive. And affordable. And functional. And environmentally appropriate. Accessible to all.
That's why I like design: it presents wonderful challenges.
And now read the latest squabble: Why is 37signals so arrogant?
Google Street View caused a bit of controversy when it was launched in the US, but could be facing bigger problems in Europe where privacy laws are more stringent.