Code, Camera, Action

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Post: Forgive us for thinking we live in the promised land

Back at the office Tuesday after a long holiday break. So lots of questions for me, and a busy day. Good to be back.

It was also the day that Google announced a new mobile phone, the Nexus. Early reviews all say it’s fabulous, as good as the iPhone in many ways. It’s got a much better screen, they say, but correspondingly worse battery life.

Not to be outdone, Apple has been leaking details of their next big thing – a tablet of some sort, to be announced late this month. There’s been lots of speculation about that on the blogs, of course. We can’t figure out what earth-shattering feature might differentiate an Apple tablet from previous, ho-hum tablets. Consensus is that it’s got to be different or Steve Jobs wouldn’t do it. Different and useful. More than “surfing the internet on the can” – which the iPhone and MacBook handle quite well, thank you.

If anybody can, I am sure that Steve Jobs and company will figure out what a tablet is good for – or at least how to wow us enough that we’ll want one, too.

But, wow, that it has come to this. Three years ago, the iPhone turned the cell phone handset business upside down. Now that the competition has caught up, Apple is moving on to something completely different – presumably an entirely new product line. They’ll still be printing money with iPhones.

And we have come to expect that the Steve Jobs won’t do something that’s not revolutionary.

Back to that Google phone. The hardware looks fine, an iPhone knock-off almost as minimalist as Apple’s wares. On the Nexus, the iPhone’s one-button-to-rule-them-all gives way to four buttons and a roller-ball nose.

(See Amit’s post on the back button vs home button design philosophies for the benefits of multiple buttons.)

Based on a brief hands-on with a Droid, I have no doubt that it will handle Gmail and Google apps much better than any phone on earth.

Oh but that home screen – it’s ugly as the Nexus’s name. Google’s marketing shows a wallpaper gray boxes that the reviews say ripple to follow your fingertip on the screen. The reviewers say it’s cool, but in still images make the gray cubes look ckunky.

And yet, in three short years the competition has gone from pushbutton phones (remember Motorola’s Razr) to two iPhone-quality choices – one an Android clone that’s better than the iPhone in significant ways.

And it sounds like Apple plans to respond with something completely different.

Tech products are becoming differentiated as much by aesthetics as features. It’s not about making products that secure a market position (though Apple’s app store policies use some of those old-fashioned tricks, too). It’s about fast teams. Teams that can get things done and drive products to market.

The Google and Apple competition is so interesting because of the firms’ different approaches to innovation. Google’s approach is driven by data, drawn from testing of thousands of users, in hundreds of iterations. Apple’s designs seem to come full-born from the head of Steve Jobs.

Exciting times we live in – and a great time to be shopping for a phone.

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Filed under  //   apps   economy   iphone   mobile   post  

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The App Economy

There are roughly 20 times more people playing FarmVille these days than there are actual farms in the U.S.

via businessweek.com

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Filed under  //   apps   code   economy   virtual  

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The perverse economics of DRM in the book business

Brian O'Leary --

But if we care about readers paying more for content, we have to recognize that DRM restricts use and lowers the value of the content inside.  Teaching our best customers to pay less for things does not seem like a good idea.

 

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Filed under  //   books   business   drm   economy  

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Niall Ferguson: U.S. Empire in Decline

"But let's face it: If you're trying to borrow $9 trillion to save your financial system...and already half your public debt held by foreigners, it's not really the conduct of rising empires, is it?"

via finance.yahoo.com

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Filed under  //   economy  

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Do we need this many charities in America?

Paul Lamb writes:

So how we can innovate the sector as a whole so any nonprofit can do better regardless of the prevailing economic winds?

One radical idea is to adjust the nonprofit model and begin to let communities engage directly with causes and people in need.

Taking a page from the playbook of peer-to-peer services such as eBay, charity "buyers" and "sellers" could engage directly without the need for a middleman.

Instead of giving money to the United Way to support food banks, why not give the money directly to the hungry?

via csmonitor.com

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Filed under  //   economy   network   nonprofits   philanthropy   social enterprise  

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Even bad product reviews boost sales

AlpacaDirect.com, always offered a page full of cherry-picked customer comments raving about the site's alpaca sweaters, socks and yarn. But recently Hobart, [the owner,] decided to take the idea a step further: He hired PowerReviews, whose software lets shoppers write their own product reviews directly on the retailer's Web site.

It was a risky move for the four-year-old company, based in Brentwood, Calif. Hobart was effectively paying to host bad press -- such as posts by customers who described AlpacaDirect's golf cardigan as "kinda sweaty" and a "poor fit." Both awarded the cardigan three out of a possible five stars.

But a month after installing the PowerReviews service, Hobart saw sales climb 23% on items that had customer reviews.

The increased sales include items that have negative reviews.

Your customers are already talking about your products. Why not make it convenient for them to do that onsite -- where everybody gets the benefit of their testimonials? 

Hat-tip to socialnomics.net, which goes on to talk about how companies can benefit from negative feedback.

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Filed under  //   business   economy   edge   network   social media  

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Post: Google Sidewiki - Danger, says Jeff Jarvis

Google is trying to take interactivity away from the source and centralize it. This isn’t like Disqus, which enables me to add comment functionality on my blog. It takes comments away from my blog and puts them on Google. That sets up Google in channel conflict vs me. It robs my site of much of its value (if the real conversation about WWGD? had occurred on Google instead of at Buzzmachine, how does that help me?). On a practical level, only people who use the Google Toolbar will see the comments left using it and so it bifurcates the conversation and puts some of it behind a hedge.

Jeff Jarvis asks if Google has applied the "Don't be Evil" test to Sidewiki.

Announced today, Sidewiki lets folks leave comments about web pages. If you're using the Google Toolbar (or, eventually, Chrome) you can see and add these comments to any web page. Page creators or domain owners have no influence on Sidewiki comments -- though verified domain owners can place the first comment.

There is an API, and Sidewiki comments are available as RSS feeds.

I see two issues here. The first is the iFrame problem -- why I object to the Digg bar and HootSuite and any other tool that puts their nav bar across the top of pages and obscures URLs. As a site owner, I resent Google's influence on the context my posts appear in.

The other problem here is with fragmenting the conversation. Should Sidewiki take off, I will be spending time curating Yet Another Comment System -- this one at Google's instigation. And with Sidewiki, there's no recourse against spam, defamation, lies, etc. -- all of which now appear right beside my content.

That's three big strikes against what Sidewiki aims to do. Not an auspicious start.

Is it just me, or is Google starting to creep you out?

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Filed under  //   economy   edge   post  

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Are we headed for an advertising bubble?

The push for share of [advertising] voice has created an arms race, where brands spend more and more to hold on their share of a slowly growing market. Like housing prices, this will sustain itself until someone — that is, the buyer — walks away from the table.

via harvardbusiness.org

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Filed under  //   advertising   economy  

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Dan Pink on the surprising science of motivation

Science shows the that way businesses traditionally reward work -- salary, bonuses, etc. -- is fine for straightforward tasks. But it leads to less effective and less creative results for creative work.

Dan Pink reviews the research, and shares what he thinks we should do about it.

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Filed under  //   action   business   economy  

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Post: The Free Content Blues

  

Chris Dixon on the revenue situation between Google and the newspapers:

Newspapers, like all websites, are suppliers of content to Google.  In most markets, with genuinely competitive buyers and suppliers, the revenues are shared between buyers and suppliers in proportion to their relative bargaining power.  Their bargaining power depends on how fragmented each side of the market is – how many genuine alternatives each company has.

via cdixon.org 

His point is that in the current marketplace -- with Google the dominant provider of search traffic to newspaper sites -- newspapers have no alternative. They can block Google's web crawlers so we won't find them (the internet equivalent of taking their content and going home) -- and we won't care.

Folks have written about newspapers' over-capacity and monopoly thinking. The value of the newspaper business was based on local monopolies and ad delivery, which the internet have collapsed. 

True, "there is nothing inherently un-monentzable about newspaper content," as Chris says -- once it becomes scarce.

But even if newspaper content becomes scarce (from bankruptcies, say, or collusion), can newspapers do what's needed to succeed online? Newspapers that remain may get more savvy with how they bring their content to the web (with topic hubs and the like). But until they get serious about pleasing their online audiences -- and, yes, Google -- information scarcity won't help them. 

Even these basic facts of the web seem too hard for newspapers to act upon right now:
  1. Logins, paywalls and incomplete stories in RSS discourage linking
  2. Linking fuels Google
  3. And Google is likely the biggest traffic driver for newspapers
For newspapers, only the first of these is within their control. And yet talk of paywalls persists, while the papers rail against Google.

But let's go with Chris's idea. Say that the newspapers negotiate with Google and competitors for prime search positioning, and Google tweaks its algorithm to benefit the newspapers.  

What content is valuable online?
  • Timely information -- reported faster than anybody else
  • Scarce or specialized content -- information we can't get anywhere else
  • Insight -- history and present fact brought together into a big picture
  • Aggregated content. Maybe not the fastest, but brought to a destination where we go for content discovery. Our breakfast-table overview. 
Since TV, newspapers have been aggregators, and no more. Newspapers do answer our occasional "I wonder what's on the Washington Post's front page" query -- but Google does just about everything else better. Google certainly does aggregation better. 

And what about newspapers' structure leads us to believe they would be any better at providing this value than blogs -- or specialized online news sites like politico.com? At this point, there are so many things that blogs do better. 

The problem for content lies on the supply side. There's too much of it, and the cost of producing it -- for those properly structured -- can be low enough that I don't see newspapers being able to compete.

I hope I'm wrong, but it reminds me of the old saw about attitudes in the steel business. Where Big Steel saw dumping by cheap foreign suppliers, Nucor said thank heavens steel is so heavy that it's expensive to ship across the ocean.

Which attitude would you want on your team? 

More to the point: would we notice if newspaper stories began turning up in Google searches?

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Filed under  //   business   content   economy   post  

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