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The Wordperfect Axiom

Seth Godin's Blog - 10 March, 2010 - 15:20

When the platform changes, the leaders change.

Wordperfect had a virtual monopoly on word processing in big firms that used DOS. Then Windows arrived and the folks at Wordperfect didn't feel the need to hurry in porting themselves to the new platform. They had achieved lock-in after all, and why support Microsoft?

In less than a year, they were toast.

When the game machine platform of choice switches from Sony to xBox to Nintendo, etc., the list of bestelling games change and new companies become dominant.

When the platform for music shifted from record stores to iTunes, the power shifted too, and many labels were crushed.

Again and again the same rules apply. In fact, they always do. When the platform changes, the deck gets shuffled.

Think this only applies to software?

The platform for healthcare changed from independent doctor's offices and small practices to hospitals and hmos.

The platform for TV changed from airwaves to wires (so HBO and ESPN win, NBC loses).

The platform for cars is changing from gas engines to alternatives.

And the platform for books is changing (fast!) to e-books and readers. Just published today: the Vook multimedia production of Unleashing the Ideavirus. The price will increase to $5 in two weeks, but right now it's 99 cents. It runs on the web and on your iphone [try this link too] (and the iPad on April 3rd.)

Here's the thing: Vook abridged it, built it, filmed it and distributed it in less than ninety days. They have a software application that they can use again and again for other titles. They've organized themselves to be profitable at a profit margin that few big book publishers can match.

Once again, the platform changes. Insiders become outsiders and new opportunities abound.

Categories: Business

The factory in the center

Seth Godin's Blog - 9 March, 2010 - 12:15

Old time factories had a linear layout, because there was just one steam engine driving one drive shaft. Every machine in the shop had to line up under the shaft (connected by a pulley) in order to get power.

That metaphor extended to the people working in the factory. Each person was hired and trained and arranged to maximize output. The goal was to engage the factory, to feed it, maintain it and have it produce efficiently.

Distribution was designed in sync with the factory. You wanted to have the right number of trucks and drivers to handle whatever the factory produced and to get it where it needed to go.

Marketing was driven by the factory as well. The goal of marketing was to sell whatever the factory could produce in a given month, for as much money and as little overhead as possible.

And things like customer service and community relations were expenses, things you did in order to keep the factory out of trouble.

So...

What happens when the factory goes away?

What if the organization has no engine in the center that makes something. What if that's outsourced? What if you produce a service or traffic in ideas? What happens when the revolution comes along (the post-industrial revolution) and now all the value lies in the stuff you used to do because you had to, not because you wanted to?

Now it doesn't matter where you sit. Now it doesn't matter whether or not you're adding to the efficiency or productivity of the machine. Now you don't market to sell what you made, you make to satisfy the market. Now, the market and the consumer and idea trump the system.

Suddenly, the power is in a different place, and the organization must change or else the donut collapses.

Categories: Business

You rock

Seth Godin's Blog - 8 March, 2010 - 10:07

This is deceptive.

You don't rock all the time. No one does. No one is a rock star, superstar, world-changing artist all the time. In fact, it's a self-defeating goal. You can't do it.

No, but you might rock five minutes a day.

Five minutes to write a blog post that changes everything, or five minutes to deliver an act of generosity that changes someone. Five minutes to invent a great new feature, or five minutes to teach a groundbreaking skill in a way that no one ever thought of before. Five minutes to tell the truth (or hear the truth).

Five minutes a day you might do exceptional work, remarkable work, work that matters. Five minutes a day you might defeat the lizard brain long enough to stand up and make a difference.

And five minutes of rocking would be enough, because it would be five minutes more than just about anyone else.

Categories: Business

You rock

Seth Godin's Blog - 8 March, 2010 - 10:07
This is deceptive. You don't rock all the time. No one does. No one is a rock star, superstar, world-changing artist all the time. In fact, it's a self-defeating goal. You can't do it. No, but you might rock five... Seth Godin
Categories: Business

Losing Andrew Carnegie

Seth Godin's Blog - 7 March, 2010 - 10:43
Carnegie apparently said, "Take away my people, but leave my factories and soon grass will grow on the factory floors......Take away my factories, but leave my people and soon we will have a new and better factory." Is there a... Seth Godin
Categories: Business

Losing Andrew Carnegie

Seth Godin's Blog - 7 March, 2010 - 10:43

Carnegie apparently said, "Take away my people, but leave my factories and soon grass will grow on the factory floors......Take away my factories, but leave my people and soon we will have a new and better factory."

Is there a typical large corporation working today that still believes this?

Most organizations now have it backwards. The factory, the infrastructure, the systems, the patents, the process, the manual... that's king. In fact, shareholders demand it.

It turns out that success is coming from the atypical organizations, the ones that can get back to embracing irreplaceable people, the linchpins, the ones that make a difference. Anything else can be replicated cheaper by someone else.

Categories: Business

Spring reading list--big ideas for idea people

Seth Godin's Blog - 6 March, 2010 - 17:44

Readers have told me that they enjoy my off-the-wall book lists. Here's another. Science fiction, Tom Peters, Krista Tippett and even a book for touring musicians.

Enjoy them. And don't forget it's okay to share books. They don't wear out.

Categories: Business

Spring reading list--big ideas for idea people

Seth Godin's Blog - 6 March, 2010 - 17:44
Readers have told me that they enjoy my off-the-wall book lists. Here's another. Science fiction, Tom Peters, Krista Tippett and even a book for touring musicians. Enjoy them. And don't forget it's okay to share books. They don't wear out. Seth Godin
Categories: Business

Pulitzer Prizefighting

Seth Godin's Blog - 6 March, 2010 - 10:36
People are drawn to existing competitions like moths to a flame. It's precisely the wrong way to succeed. Lots of journalists take significant detours in their careers and their writing in order to win a Pulitzer. Maybe not to actually... Seth Godin
Categories: Business

Pulitzer Prizefighting

Seth Godin's Blog - 6 March, 2010 - 10:36

People are drawn to existing competitions like moths to a flame.

It's precisely the wrong way to succeed.

Lots of journalists take significant detours in their careers and their writing in order to win a Pulitzer. Maybe not to actually win one, but to be in that class, to have peers that have won one. Mystery novelists stick to the center of the road, because that's where the road is. Movies are written and released in order to win an Oscar. Once there's a category, a ranking, a place to battle for supremacy, we run for it. 

Do you go to trade shows or enter markets or submit RFPs or push for a GPA or even gross ratings points because there's a list of winners or because it's what you actually want to do? Most bestseller lists and prizes measure popularity, not effectiveness.

I wonder if real art comes when you build the thing that they don't have a prize for yet.

Categories: Business

On self determination

Seth Godin's Blog - 5 March, 2010 - 10:52
I posted this eight years ago (!) but a reader asked for an encore. ...are we stuck in High School? I had two brushes with higher education this week. The first was at a speech I gave in New York.... Seth Godin
Categories: Business

On self determination

Seth Godin's Blog - 5 March, 2010 - 10:52

I posted this eight years ago (!) but a reader asked for an encore.

...are we stuck in High School?

I had two brushes with higher education this week.

The first was at a speech I gave in New York. There were several Harvard Business School students there, invited because of their interest in marketing and exceptional promise (that's what I was told... I think they came because they had heard that Maury Rubin would make a great lunch!).

Anyway, they asked for my advice in finding marketing jobs. When I shared my views (go to a small company, work for the CEO, get a job where you actually get to make mistakes and do something) one woman professed to agree with me, but then explained, "But those companies don't interview on campus."

Those companies don't interview on campus. Hmmm. She has just spent $100,000 in cash and another $150,000 in opportunity cost to get an MBA, but...

The second occurred today at Yale. As I drove through the amazingly beautiful campus, I passed the center for Asian Studies. It reminded me of my days as an undergrad (at a lesser school, natch), browsing through the catalog, realizing I could learn whatever I wanted. That not only could I take classes but I could start a business, organize a protest movement, live in a garret off campus, whatever. It was a tremendous gift, this ability to choose.

Yet most of my classmates refused to choose. Instead, they treated college like an extension of high school. They took the most mainstream courses, did the minimum amount they needed to get an A, tried not to get into "trouble" with the professor or face the uncertainty of the unknowable. They were the ones who spent six hours a day in the library, reading their textbooks.

The best part of college is that you could become whatever you wanted to become, but most people just do what they think they must.

Is this a metaphor? Sure. But it's a worthwhile one. You have more freedom at work than you think (hey, you're reading this on company time!) but most people do nothing with that freedom but try to get an A.

Do you work with people who are still in high school? Job seekers only willing to interview with the folks who come on campus? Executives who are trying to make their boss happy above all else? It's pretty clear that the thing that's wrong with this system is high school, not the rest of the world.

Cut class. Take a seminar on french literature. Interview off campus. Safe is risky.

Categories: Business

Open buying and open selling

Seth Godin's Blog - 4 March, 2010 - 10:40
If I can sell you something without a sales call or expensive ad campaign, I can sell it cheaper. If you want to buy a business development relationship but you're not willing to negotiate, do contracts and invest a lot... Seth Godin
Categories: Business

Open buying and open selling

Seth Godin's Blog - 4 March, 2010 - 10:40

If I can sell you something without a sales call or expensive ad campaign, I can sell it cheaper.

If you want to buy a business development relationship but you're not willing to negotiate, do contracts and invest a lot of time, you're going to get a lesser deal.

It seems like a paradox, but it's not.

Firefox is free, largely because it doesn't cost anything for them to 'sell' it to you. If they had to meet with your IT guys and build case studies and fly people out to conferences and take you to fancy dinners, you'd pay a lot for that friction.

When the customer does a lot of work for the seller, the seller can afford to sell it cheaper. If you drive to the customs warehouse and pick up that rug that just arrived, you can bet it's a lot cheaper.

Amazon offers affiliates a fairly lousy deal. The reason is simple: it's easy. Easy to sign up, easy to get paid, no real hoops or hassles. The openness of doing the deal is a benefit of signing up with them, and so you get paid less in exchange.

If you answer a classified about making money from home stuffing envelopes, is it any wonder you're not going to get paid much? If it's really easy to get a job, the job probably isn't worth much.

In every market, there's an opportunity to create a more open sales channel and lower your price as a way of making sales.

And in many markets, there's an opportunity to offer people a cheap way to affiliate with you and keep a bigger piece of the pie in exchange.

The cost and method of selling (and buying) have a lot to do with the ultimate cost (and benefit).

Categories: Business

Try different

Seth Godin's Blog - 3 March, 2010 - 10:29
The usual mantra is to 'try harder'. Trying harder is impossible when you're already trying as hard as you can. But you can always try different. Years ago, I was creating trivia questions for a product we built for Prodigy.... Seth Godin
Categories: Business

Try different

Seth Godin's Blog - 3 March, 2010 - 10:29

The usual mantra is to 'try harder'. Trying harder is impossible when you're already trying as hard as you can.

But you can always try different.

Years ago, I was creating trivia questions for a product we built for Prodigy. We had a 99% accuracy rate in doing the questions. Which was great, except there were 1800 questions in a batch, which meant 18 wrong each time, which was totally and completely unacceptable. These were honest mistakes, made by smart people working as hard as they could.

No matter how hard we tried, we couldn't do better than 99%. So we switched our system completely and did it in a totally different way. Same number of people, same number of hours, 100% accuracy.

If it's not working, harder might not be the answer.

Categories: Business

"Be what losers call a loser."

Seth Godin's Blog - 3 March, 2010 - 02:25

Think about that for a minute or two... Sort of turns the whole idea of 'cool' upside down. From an interview with David Horvath.

And my favorite new blog in ages (from an old friend and sage): Alan Webber.

Categories: Business

"Be what losers call a loser."

Seth Godin's Blog - 2 March, 2010 - 23:18
Think about that for a minute or two... Sort of turns the whole idea of 'cool' upside down. From an interview with David Horvath. And my favorite new blog in ages (from an old friend and sage): Alan Webber. Seth Godin
Categories: Business

Sprezzatura

Seth Godin's Blog - 2 March, 2010 - 22:23

This is an archaic Italian word for being able to do your craft without a lot of visible effort. It's a combination of elan and grace and class, sort of the opposite of loud grunts while you play tennis or a lot of whining and fuss when you help out a customer.

Many people are unable to put their finger on it, but this is a magnetic trait for many of us. We want our lawyer, dentist and waiter to demonstrate sprezzatura, but of course, not particularly try to. This is one of the secrets of Danny Meyer's top-rated restaurants in New York. It doesn't have to be flashy, it doesn't even have to be the very best there ever was, but sprezzatura is enough to get us to return. As long as this light-footedness is scarce, it will remain valuable.

Categories: Business

Sprezzatura

Seth Godin's Blog - 2 March, 2010 - 10:55
This is an archaic Italian word for being able to do your craft without a lot of visible effort. It's a combination of elan and grace and class, sort of the opposite of loud grunts while you play tennis or... Seth Godin
Categories: Business
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