The world has become a village thanks to Twitter – News power change

Towers for news

TowerCenturies ago in Europe merchants build towers to lookout for ships to arrive on the river to the harbor. Upon this knowledge they could prepare and act.
The number of people informed was limited.
The communication model was 1 tot 1.

Newspapers

Two centuries ago newspapers could spread the news with a delay of a day.
The number of people informed was relatively large: those who could read and afford a newspaper.
The communication model was from a limited number of sources to a large audience: thus very controllable and censurable.

Telex

A century ago the telex could bring you news instantly to your office.
Having this knowledge they could speculate or arrange before others could.
As telex was expensive, the number of informed people was small, but they had the advantage of immediate information delivery over long distances.
Again the communication model was 1 to 1 as there was a high price to pay for the high speed, which has an economic value.

Telephone

Then telephone could bring the news even quicker as there was no need for coding and decoding the message, decreasing the cost of news delivery and no knowledge to operate (make a call).
The communication model was 1 to 1. Due to the popularity the operating cost decreased significantly.

Broadcasting

News
First there was radio and later TV, both broadcasting to millions of people instantly.
Thus the competitive advantage of other information carriers was lost: newspapers needed to rethink their business.
Still the number of sources was limited and the distribution of information was still expensive, but was affordable by the large audience and was sponsored by advertising.
The number of sources was rather limited, but audience was massive (millions).

The Internet

The Internet allowed access to a wide range of sources of information and news almost without boundaries.
At first the established news agencies started to distribute their content over the Internet.
A few years into the Internet age as both the cost of access and the cost of publishing on the internet decreased, individual bloggers started to distribute news, information and their views too.
This changed the information from a limited number of sources into multiple sources distributing information to different smaller audiences.
The established news agencies couldn’t compete or control anymore.

Mobile phones

Nowadays everyone in business has a mobile telephone allowing staying updated everywhere.
Thus people can stay up-to-date anywhere in the world with news from anywhere.
Again this is a 1 to 1 communication model with the advantage that both parties don’t need to be in a fixed location.
A smart phone is even better as it can receive the news from a range of selected sources thus not limited to a 1 to 1 communication model.

Mobile Micro Blogging

Micro bloggingMobile micro blogging has changed the distribution of information: anyone can send out a message by texting (sms) or from the Internet to a central aggregator (like Twitter, Plurk or Jaiku), which can be followed by many from anywhere.
This has become a system of multiple sources aggregated and distributed to multiple sources. Operating at a fairly low and affordable price or even free!

That is why this Mobile Micro Blogging is so unique and very disruptive.
Example: the Twitter messages about the terrorist attack in Mumbai

The world has become a village

As around 80% of the world population is covered by mobile networks and about 4 billion mobile phones are in use, the majority of people have access to mobile phones.
Most of these mobile phones (75%) can send an SMS (texting) allowing sending a message to an aggregator.
Hence the world has become a village where anyone can distribute information to the masses at a low cost: the cost of sending a sms (texting).

This fast mobile one-person-to-many broadcast communication has become a problem for companies, leaders and governments as there are no more barriers.

Let’s hope the connection between all people and cultures brings peace and will keep peace in the world as it will be very difficult to keep anything secret or not being broadcasted.

Everybody can own and know the news and it is no longer a priviledge for a selective group of people.
The power of news has changed definitely.
Will you be able to use it for your business?

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CRM needs change: from data entry system to data aggregator

The CRM as it has been

There are so many vendors, so many solutions, so many different marketing packages, but all the CRM solutions come down to the same:
A CRM a relational data base having:
- Input forms: leads, customers, projects, salesmen, products
- Search screens: on all the above and many of their combinations
- Reports using the same data

Standard relational data base systemsRelational data base tables
All the CRM solutions are based on the standard Structured Query Language (SQL) statements for inserting, appending and retrieving information in or from the relational data base.

In order to imagine what is a relational data base: a spreadsheet where the different worksheets are the tables with data:
- The rows of each worksheet are the records: a record for every customer
- The columns are the fields: customer name, customer address,…
Several worksheets make up the complete information about the customers: contact details, contact history, projects,…
SQL allows to querying and inserting data into the different tables.
More on CRM and relational data base here.

In order to solve more complex problems of data located in different tables, the different relational data base tables are being joined.
All these features and methods are standard for relational data base systems.

All this relational data base technology was commercially available on a large scale since the mid-eighties from several vendors: like Oracle and several others. Thus there is nothing technically new since long ago.

Variations on the same CRM theme
Many flavors and other approaches have been created addressing different segments of the market: CRM for call centers, CRM for after sales, CRM small businesses, CRM for project companies, …
All of them are variations on the same pattern: a relational data base with entry forms and reports.

Web service as innovation?

Since 2000 the new technology feature is offering a CRM as a web service (Saas Software as a service), eliminating the setup, running costs and no IT expertise required.
However this is no innovation as the functions and features remained the same.

Mobile CRM

At the same time several attempts have been made to use the CRM on mobile phones.
The high cost of mobile data communication has limited the adoption of mobile CRM.
Thanks to the availability of Wifi, the cost of mobile CRM has become affordable.
As the quality of the displays of mobile phones is increasing CRM on your mobile will become a standard feature.

Disruptive changes in business

Since the nineties email, Internet and mobile communications have been introduced and have changed radically the way people do business.
As businesses have undergone disruptive changes in their methods of work it is time to change the CRM too.

Disruptive changes in CRM

Multiple information resourcesNew innovative CRM solutions are required in order to cope with the changes:
A solution which helps the sales and marketing people by collecting all the electronic available data from multiple sources:
- The email communications
- The Internet: company website data, news feeds, social website data
- The website where your leads and customers visit: visit data
- The intranet for data from within the company

Instead of a data entry and reporting system, the CRM needs to change into an aggregator of data from different sources.

All data that already exists in electronic format needs to be used by the CRM, without being re-entered, for lead generation, customer nurturing and selling.

The evolution of CRM:
1. The first new solutions have aggregated the email communications by customer.

2. Then solutions have integrated information available on the Internet.

3. A next step is to integrate the visit data from your website by company (leads and customers).

4. Finally the information locked up within disparate systems within the company will need to be integrated. This is the most difficult as there is no standard or uniform data storage use and no uniform data retrieval available.

The benefits of CRM changes:
This change is very disruptive from the fairly simple data entry and reporting systems to complex data aggregator systems that will serve sales and marketing in order to:
- Better lead generation
- Improve nurturing customers
- Increase sales
- Decrease significantly the amount of administrative work and time wasted
Thus increasing profits.

Note: LEADSExplorer provides email, Internet and website visit data aggregation as a web service.

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The problems with podcasting as marketing tool

PodcastingPodcasts are multiple audio or even a video recordings (or series) distributed over the Internet to a computer or portable media.
The difference with other streaming media is the syndication, the subscription for receiving the updates whenever new content is added.

Podcasts were originally intended to distribute radio-type of shows; many different uses have been found including marketing.

Currently podcasts are used for different marketing purposes on a one time basis, instead of a series of audio or video messages: new product announcement, educating potential customers, use of solutions, customer success stories.

Advantages

People are lazy, thus listening to a podcast is easier as it requires less effort than reading.
- Audio can have a better impact than text.
- Video can have an even bigger impact.

Podcasts can be played on moments the audience doesn’t want to read: like when commuting.

A short video will tell more than a thick manual as people are visual.

Podcast problems

Production costs:
For every level of higher impact you can obtain, the number of free variables becomes smaller:
- Audio: the voice, the pronunciation and the intonation need to be perfect
- Video: the body language and the expressions on the face need to match the content.
These will increase the production costs.

Writing:
Writing a text is straightforward and many people have writing experience.
Writing a podcast (especially a video podcast) is more like writing a script for a radio play or a TV show and less people are experienced.

Presenting:
Many people can write only few can present in front of a microphone. Even less are capable of not looking stupid before a video camera.

The distribution costs:
If the podcast is not popular, the distribution costs are easy to afford.
In case the podcast becomes popular (accidentally), the costs involved will shoot through the roof and go beyond your budget.

The audience:
Not every company has a high speed Internet connection or the employees have to share one fast access. This makes the podcast unbearable.

The fast forward:
- In case of a written text the reader knows more or less if you are skipping things.
- A fast forward on podcast doesn’t indicate what the listener or viewer has missed.
The audience has to sit through the entire podcast, whereas readers can scan a text fast

No copy/paste:
If your audience needs to make a summary for his CEO, they need to write it all down themselves. This is much more work.
One solution to this is providing a transcript of the podcast.

Languages:
Whereas a text can be translated into another language at a relatively low cost, a podcast needs to be reproduced for every other language requiring:
- To find the suited people
- To translate
- To produce the podcast

Findability:
The search engines are made for indexing text, thus with podcasts they are limited to the short summary of the podcast not revealing the entire content.

Social acceptance in the office:
Reading a text on the Internet in the office is considered as allowed as you gather information.
Listening to an audio podcast is already less allowed and is disturbing other employees if your audience doesn’t have an personal office: even in a cubicle
Watching a video during office hours is considered as entertainment, not as work.

Using podcasting as a marketing tool is not evident and might not reach your audience it was intended for.

Do you use podcasting for marketing purposes?

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Marketing software tools scale well – sales tools not

Marketing tools scale well

There is abundance of tools and solutions for Marketing.
This is probably because information technologies is very efficient when a process:
- Can be automated
- Replicated over an over again
- Large numbers are available making automation profitable
- Large numbers enable to generate statistical data

The large numbers and the replicative feature comply with the one to many communications character of Marketing.

Marketing has a whole range of applications and web services available for:Swiss knife tools
- Email campaigns
- Direct mail
- Website analytic
- Inquiry forms
- SEO analysis
- Webinar
- Presentation software
- Lead management software
- Competitor analysis systems

All these tools scale very well as a relatively small effort can generate a huge amount of communication messages send out.

Sales tools don’t scale well

The salesman is into one to one communications: there for he has a range of personal communication media at his disposal:
- Landline telephone
- Mobile phone
- Email
- Instant Messaging

Besides these communication tools, there are several sales supporting or useful information technologies available:Screwdriver
- Contact managers
- Appointment / agenda solutions
- Contract manager
- Proposal managers
- Collaboration solutions
- CRM

The problem with all or most of these solutions is that they all require data entry.
Thus they do not scale well for the users as for every use it requires time, dedication and quality persistency (obstinacy?) of the user.

Information generation instead of data entry

In most cases there is not any data generated or captured from other sources in these solutions.
Thus these are time demanding solutions for the salesman.

However useful and time saving information could be collected and aggregated within the CRM or sales tools:
- Email collecting by customer: several CRM solution already provide this
- Internet information: many sources can provide information about the customer: company and people
- Website visit data collection by company: only a few solutions exist, but hardly any has a seamless integration without the need of data upload.
Thus instead of data entry, solutions for the sales rep could capture, aggregate and generate useful and interesting information that would make the applications much more interesting.

This automatic data collection and aggregation would help the sales tools scale better as they would save time.

Computer assisted selling

The future of sales supporting or sales assisting applications and solutions, should be assisting the salesman in his nurturing and selling.
Moreover the salesman should obtain direct results, have useful features and reap the benefits of such a Computer Assisting System, bringing effortless together all the information on the lead and customer. Not having the salesman to enter all the data himself as this is less beneficial for him.

In the end it is the salesman, who close the deal and makes the company operate, thus the sales tools should serve the salesmen.

How much do the software sales tools help you or do they require more time than they bring?

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The Computer says NO – The Internet says NO

In Great Britain there is the TV-comedy show “Little Britain“.
One of the most famous characters is Carol Beer working in a bank branch office, where she is indifferent and unpleasant towards her customers.


Well-know as “The computer says NO”

Now there is also “The Internet says NO(Google search page).

PS: When using Internet banking, a bank clerk isn’t required anymore. More adoption of online banking will bring cost savings to the financial institutions.

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TechCrunch after CreditCrunch? Doom or innovation drive?

Money will be scarce as large investment banks and the main investment insurer have gotten into financial problems.
Crunched cars

Start ups

Typically VC’s have a score rate of 1 good exit on 10 investments.
As money resources have become limited, the Venture Capitalist company needs to select its investments even more carefully.
This usually leads to risk adverse investments, probably less innovative, thus less innovation and implying less change.

Business plans will need to show revenue during the first year and a break-even operating income on the profit & loss within 2 years. This will require selling the products or services during the first year and getting lead generation almost from the start.

In any case for the second time in 7 years, burning money companies are doomed.

Grown ups

Grown ups are companies that have their start-up phase behind them, will address investment banks or bankers for additional money such as loans, bridge loans or even convertible loans. Just for the same reasons and the problems of the credit insuring institutions, less risk will be taken.
Companies that have a proven track record of sales and customers (preferably recurrent revenue) will be in favor of getting additional money.

Innovating businesses or businesses that aren’t break-even yet will be avoided by investors as much as possible.
This makes these companies the perfect prey for larger well funded companies as an acquisition target and will lead to consolidation of the market.

As a company, getting into break-even is a must be. Thus they need to cut costs or increase their sales over a very short time.
- Cutting costs seems the easiest, but this can jeopardize the future of the company as new developments are scrapped.
- Increase sales will be hard to do too: business models can be changed, prices can be lowered or new markets can be addressed by repackaging or marketing differently the current solution. This requires creativity and marketing initiatives that are not just spending on advertising.

Large or established corporations

Many opportunities will exist to acquire new technology at a fraction of the research and development costs, if these technologies would have been developed internally.

Moreover the proposition for acquisition could go as far as offering the founders a future n the company and the investment bankers a less than initial invested capital return. This could be for both parties better than getting into a bankruptcy, where no-one gets anything.

Technology innovation as the disrupter of doom

All the above is true, only if no technology change or advances are brought to the market.Technology inovation as disupter

This is probably not applicable for all industries, as in very mature markets little technology advances are possible.
However even if in just a few industries new technology advantages become available on the market, the beneficiary effects can spill over into the mature markets, by decreasing operating costs.

Technology progress spills over
One possible example are the new services of Amazon: EC2 and S3.
These new services allow software companies to dispose over significant lower cost solutions for supplying web services.

In return these companies can offer web services at a lower cost:
- New companies can start up as they see a feasible opportunity
- Grown-up companies can address new segments in the market and thus obtain new market share.

This innovation will act as a domino effect upon their customers. 
The web services companies will be having lower operating costs themselves, allowing them to take market share and grow their business on their turn.

In other markets the technology disrupter can be in place since a long time, but not being applied completely.
- In retail banking the banks will increase their online banking services in order not to have any transaction in their branch offices (as the continental European banks have done since long) and having solely advice (sales) functions in the branch offices.
- Airlines will stimulate online bookings and self registration at the airports.
- Companies will rationalize their lead generation and sales processes, what will probably lead to Internet lead generation and online interactive sales.

Thus technology advancements and innovation will drive new business and growth again. Doom will be doomed.

What will be the technology disrupter of doom in your market?

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The Big Bang of CERN: The Internet or LHC?

Today 10 September at CERN the first attempt to circulate a beam in the Large Hadron Collider (LHC) has been made. The goal is to try to recreate the “Big Bang”.
If this news hasn’t reached you, then you have probably seen the picture on Google.
Large Hadron Collider - LHC at CERN

Even if their main goal isn’t achieved or successful, CERN has changed the world by creating the Internet.

In March 1989 Tim Berners-Lee, wrote a proposal for information management for transferring information over the Internet by using hypertext, this would enable collaboration in the high energy physics community.

The goal was to have a single information network to help CERN physicists share all the computer-stored information at the laboratory. Hypertext would enable users to browse easily between texts on web pages using links.
In order to make the WorldWideWeb – as it was called in 1990 – usable Berners-Lee created a browser-editor using his NeXT personal computer (Steve Jobs).
CERN had the first web server ever.

Thus even if the biggest and most expensive ($6Billion) laboratory experiment even fails completely; CERN has already changed the world where we live in: the Internet – a Big Bang.

The first goal was exchange of information for collaboration.
Today the Internet has many more purposes for both personal and business life.

Rapping on the Large Hadron Collider:

More seriously:

Will CERN change your life again? Will the LHC have the same impact as the Internet? Only time will tell

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The Buyer knows more than the Sales rep.

Craving knowledge by the probable purchaser

In these days where information on companies, products and solutions is available by just launching a query or is being brought at your attention by a web service, the days are over of the Salesman knowing more than the probable purchaser.

The buyer is interested in his problem, thus has investigated and evaluated many possibilities and options provided by the market, specifically concerning his problem.
Thus in a short amount of time the buyer becomes an expert in this particular field of solutions. He becomes very knowledgeable by craving knowledge on the Internet.

Sales rep. lagging behind

The Salesman however has a several solutions or products able to solve a multitude of problems – sometimes even in different fields of business.
His knowledge will be lesser than that of the lead who has been investigating the Internet and the competitors.

Formerly a Salesman could get away and get the contract signed with a good sounding explication as knowledge was:
- Hard to obtain.
- The Sales rep. was one of the main sources

However, in the era of the Internet he has to be careful whatever he tells, as the buyer could already know about it.
So times have changed. Sales rep. needs to adapt new technology.

Both could/should investigate

If the customer has become more knowledgeable about products, solutions and vendor companies at the same time the Salesman can be better informed about the company of the potential customer.
- The Internet as a data source concerning the company, market, management and the contact.
- The website visit data gives insight to the Sales rep. about what the visitors of this company have been doing.

These are part of the functionalities provided by LEADExplorer for the Sales rep. in order to be better prepared.

Thus both parties can have enhanced their knowledge using technology.

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Open Source as your competitor? Not!

Panic: The Lead selects Open Source

The potential client declares he has selected an Open Source solution.
There are two possibilities:
- He is really planning to use Open Source
- He uses the Open Source as a threat to get lower prices

In both cases you loose…
So the best thing for you is that the lead really adventures the Open Source.

Open Source benefits?

Not free
Only a limited number of Open Source software is really free to use. People who think Open Source = free are at least forgetting operating and maintenance costs.

Not similar or comparable solution
In case of your solution the lead had very specific requirements you had a hard time to match and would have cost investing in additional functions and features.
In case of the Open Source the purpose of the application often is different. The basic requirements of the potential customer are not answered and the specific requirements are often a far cry.

Legal advice
There are legal aspects involved too: try to figure out what exactly is allowed with the Open Source:
- GNU General Public License (GPL)
- GNU Library or “Lesser” General Public License (LGPL)
- GNU Affero General Public License (AGPL)
- Common Development and Distribution License (CDDL)
- Common Public Attribution License 1.0 (CPAL)
- Common Public License Version 1.0
- Open Software License, all versions through 3.0
- Q Public License (QPL), Version 1.0
- Open Public License

It is a myriad of different licenses: thus consider the need and the cost of hiring a lawyer with knowledge in this field before even thinking about using the software.

One possible problem is: when you change or add software, it is likely your modifications have to be put into Open Source too. This could be good: any bugs might be solved by a willing programmer for free. On the other hand, this might also mean that the features you paid for become available to your competitor too.

The Linux specialist
As in most cases the Open Source software is based upon Linux, finding a Linux specialist is required in order to:
- Understand what is required to run the application (type of Linux, server requirements, …)
- Set up the servers
- Installing the application and the Open Source data base (MySQL, ProstgreSQL ?) or other prerequisites
- Running the application
As you only need his services temporarily or not every day, you can only consider a consultant or someone who does it ‘after hours’.

Even if you have an in-house Linux specialist you still have to take his time and thus wage into account.

Business analyst and application specialist
As these software applications are often very refined due to the many people who have contributed, these applications can have many functions and features.

Less is more doesn’t apply in this case.

So you are going to need a business analyst for analyzing what you really need of the solution and if the application really is a solution to your needs.
And additionally an application analyst who knows how to set up and parameterize the application in order to become a solution for your problem/company.

Running the solution
As the Open Source solutions requires to be run on:
- Your own sever: you need to obviously have the server and in house or external competencies about operations (backups, maintenance, …) and the application
- Managed server (at a monthly fee): you still need knowledge about running/upgrading the application.
- Hosted application: Could be a more sensible alternative, but certainly not free either.

Upgrades
An active Open Source project is supported and developed by many developers. New versions are available at all times. Often even ‘nightly builds’ for the masochists among us. Unless the developers get bored and abandon the project, which is not that unusual. You could always fund further development yourself, but for most clients a commitment and investment like this is totally out of scope.

There’s even a site for abandoned projects looking for a new maintainer.

Upgrade path
IF an upgrade is available: Should you upgrade and when to upgrade?

It is well known, upgrading from older sources is sometimes impossible to do, so you need to choose your upgrades carefully. As you are not a specialist in the these matters, who will guide you in order not to get stuck in an older non upgradeable version.

Who will assist in case the upgrade goes wrong ? Who can you hold responsible to fix the problem ? Can you pick up the phone and demand someone to fix this asap ?

Support
In case you bump into an error or a bug, you can post it on the message board or forum, and wait and hope until someone picks it up top solve.
As you are not important in the developers’ community having no status whatsoever, it can take long before your error is being looked at and being solved if it gets solved at all.

With some Open Source applications entrepreneurs have started small support companies, at a cost ofcourse.

Security risk
As the source code is available to any hacker, they can search for security issues to misuse your application or data if it can be publicly accessed on the internet.

Security through obscurity is no security at all‘ is an often quoted saying. While this basically is true, there’s no black/white to software engineering. Real-world practical situations are often far from theory and the ideal situation.

One should not depend on security through obscurity. One should also not ignore that there are people looking for bugs in the Open Source application you just installed with the sole intent of exploiting them for their own use.

Conclusion

So let the lead go with the Open Source as he has set his mind on low cost and cheap solution. Although he hasn’t made a complete picture of the costs involved, the customer is always right.

Maybe the lost customer will become a potential customer after a year of running into (to him unknown) problems.

In any case, a follow-up call 9 months later would be in order and might cause you to re-evaluate him as a lead.

The customer is always right.

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Get an Asus instead of an iPod or iPhone

iPhone and iPod Touch are nice to have, but writing is still not easy and comfortable. Still an iPod Touch and a mobile phone would make a nice pair.

Now there is the mobile offering of getting a free mobile phone with a free Asus eee PC with your mobile phone contract (Orange and T-Mobile). That sounds even more disruptive!

If you don’t want to get into such deals, the price tag on the mini portable of Asus eee PC 701 is (depending on the country) more or less the same as an iPod Touch (sometimes more cheaper, sometime less cheaper).
Of course the Asus is larger, but comes with a complete keyboard with real buttons.
Both have multimedia (sound and video) and Wifi making them the Anywhere-Internet-Connection devices.

A mobile phone and an Asus:

- Get a mobile phone for verbal communications and texting (sms) at a very low price thanks to sponsoring from the mobile operators (in Europe).
- Use the Asus for browsing, writing, spreadsheet and agenda (40 applications pre-installed) with the mini-but-complete keyboard and the Wifi connection.
Additionally you can use Skype for lower communication costs instead of using your mobile (Skype is pre-installed).

Of the many features:

Starting up: many times faster than a normal PC: less than 15 seconds versus over 50 seconds. So you don’t need to wait forever.
And 3 USB slots for connecting anything to your desire. Connections (MicroSD slot and Ethernet port too) that an iPod Touch and an iPhone miss.

Ever tried to make an appointment when speaking on the BlackBerry?
Speak with the customer on your mobile phone, while you flip open the Asus for looking up your agenda or to verify the content of an email.

Ever tried to write more than a short answer on the BlackBerry or to write a page on an iPhone?
You can on the Asus, maybe not for writing books on, but blogging would be great.

Reviews on the Asus by NotebookReview or TrustedReviews

Of course you will need to pay-as-you-go for the Wifi connection, but you won’t complain on the speed of the Internet.

Lower prices to come

As Asus is shipping the same mini-portable concept, but with a larger screen (8.9″ instead of the 7″) the Asus eee PC 900., expect bargain prices for smaller screen model after the summer holiday.

Go for the white one: it looks cool like an Apple MacBook and it has the flash drive like a MacAir.
Of course not playing in the same league, but you can write letters, notes, email, make quotations and surf the Internet whilst on the road.

Now you only need to connect the mobile phone with the Asus and surf on GPRS when no Wifi is available. This could be done by using a Bluetooth USB key, as most mobiles support Bluetooth.

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About us

Engago Technologies provides a B2B web service for marketing and sales.
 

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