A humorous way to start the week: John Kalish on industrials, those broadway tunes that promoted shop grease, tractors and other industrial products:
From the 1950s through the 1970s, large companies regularly commissioned original musicals for their annual conventions and sales meetings. Some employed reknowned Broadway composers for these shows.
audio
The Economist on Toyota’s automotive juggernaut:
THERE is the world car industry, and then there is Toyota. Since 2000 the output of the global industry has risen by about 3m vehicles to some 60m: of that increase, half came from Toyota alone. While most attention over the past four years has focused on a spectacular turnaround at Nissan, Toyota has undergone a dramatic growth spurt all round the world. Japan’s industry leader will soon be making more cars abroad than at home. It has overtaken Ford in global production terms and is set to pass Chrysler in sales to become one of America’s Big Three. In an industry strewn with basket cases, where hardly any volume producer makes a real return on its capital, Toyota is exceptional in that it consistently makes good returns (see chart 1).
Brand Autopsy has an interesting discussion on category killers:
Costco has a very loyal clientele (who pay a membership fee). Costco understands the taste level of this group and caters to their wants and needs–for wine, apparel, technology, jewelry, etc. Costco communicates with those customers through an excellent monthly magazine, the Costco Connection. Because many of Costco’s customers are small business owners, the magazine (and, of course, the stores) cater to their needs and interests.
Now, Costco’s customers are also attracted by the deals. There is an implicit understanding that Costco is offering the best possible price on that particular product on that particular day. The product may not be offered tomorrow. So, if you want it, you better buy it today.
James Fallows takes a look at the intersection of public (taxpayer funded) and private (business) interests, specifically, weather data that we’ve already paid for. Some businesses, who have made a living recycling that data, would like to continue their gatekeeper role. [We have examples of this in Madison. Access Dane offers “subscription” access to data that we’ve already paid for]. Here’s a clip from Fallows article. Read it all.
some of the most significant innovations have been made where public and private efforts touch. In its first term, the Bush team made a few important pro-technology choices. Over the next year it will signal whether it intends to stand by them.
There is a long historical background to the administration’s choices, plus a variety of recent shifts and circumstances. The history stretches to the early days of the republic, and the idea that government-sponsored research in science and technology could bolster private business growth. Progress in farming, led by the land-grant universities, demonstrated this concept in the 19th century. Sputnik-era science, culminating in the work that led to the Internet, did the same in the 20th century.
Open source weather is available here.
Create your own weather site using the NOAA’s xml web service.
Nicholas G. Carr continues his analysis of failed software projects. Carr wonders if we should scale back our technology expectations:
Equally important, they stopped trying to be creative. Rather than try to customize their software, they began looking for cheaper, off-the-shelf programs that would get the job done with a minimum of fuss. When necessary, they changed their own procedures to fit the available software. Old, generic technology may not be glamorous, but it has an important advantage: it works.
It may well turn out that the F.B.I.’s biggest problem was its desire to be innovative – to build a new wheel rather than use an old one within easy reach. When it comes to developing software today, innovation should be a last resort, not a first instinct.
Carr is mistaken in telling technology drivers to slow down with respect to innovation. The real question is whether or not top management has made the commitment to align their business processes with the technology (and provide leadership when tough decisions must be made). Carr, of course does not mention the many successful technology innovations we take for granted today, such as
We take these innovations for granted, but each one required risk, leadership, mistakes and a willingness to make it work. There are no shortcuts. More on Nicholas G. Carr.
AT&T’s CTO recognizes what is required to succeed:
“The biggest challenge is not the technology,” he said, “but being able to change the culture.”
Surviving a meeting today, I recalled the essential skill that makes a great salesperson: the ability to listen, sometimes for extensive periods of time. I’m always amazed when a person selling something can’t be bothered to actually listen to what the buyer has to say (another way one might put this, when the cluetrain made a stop, they failed to board).
It can be difficult, for sure. I remember one meeting, where there was 3 or 4 minutes of silence. Anyone involved in sales and marketing should become familiar with the term markets are conversations. Learn more at the cluetrain.
So what makes a good opportunity? A colleague of mine at the University of St. Thomas, Dr. Alec Johnson, has come up with what I think is a simple yet effective framework for analyzing opportunities. It is based on what he terms the “Three M’s”: Me, Market, and Money. All three are related, and if any of them are missing, it’s likely the concept is not worth developing.
Local Cable Monopoly Charter Communication’s CEO Carl Vogel resigned yesterday amid a decline in subscribers and an accounting probe. Charter’s stock closed yesterday at $1.92/share, a 52 week low.
I think the cable folks have pushed the envelope with respect to pricing and “product”. I can’t imagine much growth is left in that business. The action is certainly shifting to the internet. Former Microsoft exec Paul Allen is Chairman of Charter. Allen went on a cable acquisition spree years ago, which loaded up charter with $19billion in debt (quite a bit, even for a billionaire).
Shoshana Zuboff makes a few useful points on business ethics:
When I wondered last month how the insurance industry carries on when so many customers have lost faith in it, I had no idea my worst fears would be confirmed so soon. The short answer is that some of them cheat. That’s how companies can remain profitable while being despised and mistrusted by so many customers. This was captured piquantly by Vinay Saqi, a Morgan Stanley insurance analyst, who noted insurance companies have had “a difficult time making money when the game is rigged in their favor. We’re concerned they won’t fare well in a truly competitive environment.”
Among the wealth of wrongdoing in this still unfolding story, one fact looms over the rest: Thousands, perhaps tens of thousands, of grown-ups knew about an array of fraudulent practices and failed to shout, “Wrong!” Instead, many regulators, independent watchdogs, brokers, executives in both the retail and commercial sectors, benefits consultants, and investment advisers joined together in a parallel moral universe. Collusion and conformity — “it’s not wrong because everyone is doing it” — is accepted. Obedience — “it’s not wrong because they told me to do it” — is okay. Opportunism — “it’s only wrong if I get caught” — is encouraged. And, of course, narcissism — “it’s not wrong if it’s good for us” — is celebrated.
Our wonderful farmer’s market supports Robin Good’s statement that we should “Buy local and Live Free”. Good provides a useful illustration:
It?s gotten to the point where much of our nourishment depends on a handful of giants.
And they?re shipping foods an average of 1500 miles to reach your plate, a practice that strains anyone?s notion of ?fresh.?
But a quiet revolution is in the air, and we the eaters hold the power for change.
The typical Tom (tomato) is exhausted by the time he gets to market.
1500 miles from field to fork ? that?s the trek made by the average fruit or vegetable these days. Because of the need to hold up over distances, our foods are bred, not for taste but for transport ? their ability to handle the long haul. And what do we eaters get? Tired tomatoes
Yesterday’s winter farmer’s market included a big stack of tomatoes, potatoes, cheeses, honey, spinach, apples, eggs, pork and beef.