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Life after the dip -or- What happens when you lose everything? July 1, 2008

Posted by David Gillespie in digital strategy, marketing, music, Video Games, work/life.
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2 comments

Note: This is a continuation of yesterday’s thoughts.

Also note: not The Dip.

Capitol Records buildingIn the music industry’s case, they’ve spent the last decade attempting to bend consumer behaviour to their will. All the time and effort put into better encryption, DRM etc. only for it all to be futile, forcing people into a dead model. Think about that. Ten years of lawsuits, of bad ideas, of attempts to stall the forward march of consumer technology. Each writ issued was an extra nail in the coffin of a decrepit business model established to confuse value and price point and foist it upon the unwitting consumer. As one of my favourite writers likes to say, the epic, epic lulz. As a complete aside, anyone know how many lawyers the RIAA has? I’m just curious…

In the games industry’s case, budgets and teams are swelling, but this is not where industry growth is coming from. The really booming sectors are taking things back to small teams and games that take hours not days to play. Respecting people’s time and attention spans, you can spend five minutes doing something else entirely and then get back to what you are doing. It is a business model that is fluid, moving with the trends of its audience who are not the pimply teenagers with plenty of time on their hands anymore, they are developers themselves, they are in advertising, they’re lawyers and doctors and parents whose free time has not grown with their disposable income.

Exposing what people want to engage with and burying the stuff they’re not interested in is key, and it is only an issue if your business model rests on the viability of the things people don’t like. Digital Rights Management for starters if a zero-sum strategy where nobody wins. I’m a big believer artists should be compensated for the work they do (indeed one day I hope to do nothing but), but in the interim we need new models that are malleable. In the words of Seth Godin:

Persistence isn’t using the same tactics over and over. That’s just annoying.

Persistence is having the same goal over and over.

If your goal is delivering value, then everything will be fine. If your goal is to keep the game unchanged, then we have a problem on our hands.

Image courtesy of maubrowncow, with thanks to compfight.

Eyes on the prize: what is your company’s core offering? March 3, 2008

Posted by David Gillespie in digital strategy, marketing, web 2.0.
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1 comment so far

I’m a big believer in a business being free to focus on its core product(s). If it ain’t what you do, then it ain’t what you do! Far too many times I’ve seen companies get distracted by an interesting piece of technology or an idea outside their scope or ability to act on. When that happens, your core product suffers, and your competitors who may have been running a distant second seem to close the gap over night.

It isn’t simply a case of distraction though, outsourcing can also land your ability to succeed and innovate in the hands of people who don’t share your priorities, goals, or values. What that means is a devaluing of your offering in the eyes of the people you’re hoping to sell to. An inconsistent experience you can’t directly impact means your brand comes to be associated with, at best, a level of impotence in affecting positive change for its own offering, and at worst, a frustrating end-user experience. On top of the impotence. With a good measure of GAF* thrown in.

The same idea applies to brand extension. Let’s compare Google and eBay, two titans from Web 1.0. One seemingly goes from strength to strength with an occasional bit of conjecture, and another is mired in a mix of end-user apathy and anger, with top-tier management failing to set a cohesive direction. Google’s acquisitions may seem puzzling at times from the outside, however each purchase (with the occasional exception) can fairly readily be tied back into search, and eventually monetised.

Contrast this with eBay’s acquisition of promising-but-troubled VOIP provider Skype back in 2005. 2 1/2 years on this seems like a move geared around nabbing promising tech before someone else does, and not around how such a service better positions eBay to grow. Now both services are languishing with indifference and open hostility, and the purchase is little more than a land-grab in hindsight.

The trouble with a land-grab is eventually the people who actually own the land show up and cause trouble. In this case the digital natives are fighting back, services like Etsy crop up and move in on markets that could have and maybe should have been eBay’s. All due to the company losing focus, and the same can be said for Yahoo!, parts of Microsoft, and a myriad of players in the offline space too.

Times like this some old-school business lessons can come in handy. Echoed in Fred Wilson’s post about the New York Times, Jack Welch’s mantra to his VPs was be number one or two in your market, otherwise get out. Seth Godin says in his book The Dip “being the best in the world is seriously underrated”. And as I say up top, “If it ain’t what you do, then it ain’t what you do!”

Anyone have examples that fit into the above they’d care to share?

Seth Godin – The Dip January 10, 2008

Posted by David Gillespie in marketing.
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2 comments

Last night I bought Seth Godin’s book Dip, and I finished it at lunchtime today. I’m a slow reader, but even then it really only takes two hours to get through and has some really good sound advice that can be applied to almost anything. I was inspired to buy it after I read a blog post (that I now can’t find) in which the writer said the book had changed his life.

Dip concerns itself with quitting, primarily knowing when to quit, and quitting without shame. Seth’s premise is that any activity will have an enjoyable start before a dip sets in, and the key to the dip is figuring out if you’re in a cul-de-sac (and therefore a dead end –> you should quit) or in the dip, which you should lean into (after a sober analysis of the resources required to get you through) and focus on the end result that took you there in the first place. You can find a far better summation at Seth’s own blog, or you can just go right ahead and buy it  (I recommend the latter).

I’d happily send you my own copy, but a friend is getting it whether he likes it or not via a breakfast meeting tomorrow morning.

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