Payment Processors are the Ball Bearing Factories in the War on Spam

Has the Schweinfurt of the spam industry been identified, in the form of three big credit card payment processing companies?  The New York Times published an interesting article today, which indicates that 95 percent of the credit card transactions for various herbal supplements are processed by just three payment companies.

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Utica: City With a Warm Heart

My favorite place in the world is my hometown of Utica, New York.

Some people wonder why, as it’s seen as an old manufacturing town that’s past its prime.  It’s dying. It’s decaying.

It’s got problems, don’t get me wrong, as do many of the towns and cities that follow the path of the Mohawk River and Erie Canal across Central New York. But there’s something there that I don’t think I truly appreciated living and growing up there.

That something is a welcoming nature and the fact that the city has always been a magnet for immigrants.  It has a vibrant mix of heritages from the waves of immigrants that have settled there over the years.  Italians, Germans, Poles, Ukrainians, and Irish made the place great through the early part of the 20th century. I still think it’s the best place in the world for Italian food. Go here or here or here. You’ll see.

Diversity is what makes Utica great.  There’s an extremely positive show on NPR that explains what it’s all about.  Fifty minutes of time, but time well spent.  More on it from the Observer-Dispatch as well. It tells you why the nickname “The second chance city” is fitting.

Posted in Diversity, Travel | Tagged , , | 1 Comment

LTV>CPA

Fred Wilson recently wrote this great post on LTV>CPA.  It’s something us old-school direct marketers had ingrained in us from day one.  It’s something that’s not taught as much as it used to be.  It’s worth a read, particularly the comments section. (Fred always gets great comments!)

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Big Data and the Rise of Asymmetrical Analytics

The McKinsey Global Institute just issued their report Big data: The next frontier for innovation, competition, and productivity.  It’s worth the time to read and act on (not think about).  Now.

The McKinsey analysis looks at five sectors in some detail–health care in the U.S., the public sector in Europe, retail in the U.S. and manufacturing and personal location data globally.  In each of those areas, the ability to use the “data exhaust” to create value is stunning.  One such example is the assertion that more effective use of the big data sets created by the health care industry will result in 8% savings annually in the United States, or $300 billion in efficiencies.

So what’s changed?

First, we now we have the ability to capture data and store it (via inexpensive storage technology) and actually sort through the data (via new tools like Hadoop).  Second, the world has changed as we morph from a world of “data asymmetry” to a world of “analytic asymmetry.”

In the past, the data itself was hard to collect, store and disseminate.  That led to the rise of information services companies like Experian.  Get the data, sort it, store it (on big iron) and license it to others.  Companies that had more data than the competition won, even if they used it in relatively crude fashion. For example, in paper-based direct response marketing, the old RFM (recency, frequency, monetary value) segmentation schemes were startlingly effective.  All you needed was access to purchase information in a reasonably timely fashion and you could do well against the competition.

Now, information is relatively easy to collect and disseminate.  It becomes so much “exhaust.”  The McKinsey report says that Facebook users create 30 billion bits of data a month.  Twitter also creates mountains of data, as do other companies.  And a lot of it is now available via API in either free or so cheap a form as to be effectively free.

So if the data is out there and available, what’s the competitive advantage?  It’s in making sense of it. Asking the right questions to avoid being bogged down is important.  Having the tools to quickly make sense of the data is critical to beating the competition to the punch–who will, ultimately, be working from more-or-less the same data sets.

What should you do?  First, decide if you buy in.  Assuming you do (and reasonable people may have different opinions, which I’d love to discuss) then you’ve got to figure out how to create transparency into the data, build the algorithms and start building new products and services using that data. Create “asymmetrical analytics” differentiation between you and the competition.  And win.

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It’s Never About The Money–UAW Wages Aren’t Why U.S. Cars Suck

Interesting article in The Truth About Cars on how Ford still has an $8/hour fully-loaded disadvantage to the transplant (Japanese and non-union) automobile manufacturers.

The union wages and union rules are red herrings. Yes, they make for good talk and for interesting arguments. But how much a union employee is paid-or an over-priced executive, for that matter-is not the point.

What matters is that the employees simply reflect the behavior that they see from the company. When the company prays at the altar of Wall Street, and cuts corners wherever possible while rewarding the executives and a few select Goldman Sachs bankers, what will employees do? They can keep arguing with their neighbors about the sub-standard quality of the vehicles they are asked to assemble–and are probably embarrassed by–or simply say “screw it” and meet expectations.

And the death spiral begins.

Stop worrying how much you pay people. Build good things. Do good, meaningful work. Fire Wall Street. Win.

Posted in Branding, Leadership, Marketing | Tagged , , , | 2 Comments

What Are You Quarterbacking Today? Or Are You Getting Things Done Instead?

The hardest position to play in football is quarterback. You have to be an excellent athlete, of course, but also have the intelligence to learn complicated playbooks, manage the clock and show leadership to your team mates.

To be a corporate Monday-morning quarterback, you have to exhibit exactly ZERO of those qualities. It’s the easiest position in the world to play, and get paid for!

So how’s your Monday going? Are you out there today building something new for your customers? Or improving the ability of your team members to get things done?

Or are you holding “after action” meetings for activities in which you did not participate, plan or were responsible for? I’m sure a lot of things happened over the weekend that your operations and technical people had to deal with. They know what went wrong and how to correct it. They’ve got it. Your presence and opinion, although interesting to you, is irrelevant.

Cancel the “fact-finding” and blame missions today. Choose to create, win and lead instead.

Posted in Leadership, Organization | Tagged , , , | 1 Comment

The Lazy Train (IAD)

Riding the new Aerotrain at Dulles airport right now and noticed an incredibly dumb communication oversight. Rather than have the announcements for the gates recorded in a nice human voice, the train builders elected to use a robot voice.

It sounds weird and inhuman.

Why not spend a few bucks to record the train stops? Yeah, maybe in a few years they’ll be up to Gate Z and the announcer might be dead, but that can be recorded in advance.

Why not? It would have taken a few minutes of thinking, a proposal to do the right thing instead of the expedient, and a willingness to follow through. Robot voices–a sad way to cap off a multi-billion dollar effort, don’t you think?

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Corporate Sports

VolleyballGo into any office, particularly early in the day once everybody has had a chance to get settled and have their coffee.  What do you hear?

Keyboards clacking away, punctuated by the periodic click of the mouse as the send icon is hit.  And then a “grrr” as that next email (or ten) comes in.

Are those people being productive, generally?  The answer is probably not.  I never could describe exactly how to put it, until I was watching sports on TV.  Then it clicked.  All these office workers, sealed away in air-tight buildings away from the sun, are doing is playing sports.  Corporate sports.

There’s three major sports that I can see.  One’s an Olympic sport.  One’s a playground sport.  And one’s a twisted sport that only a picked-upon geek like me can truly appreciate.

Volleyball

This corporate sport is really easy to play.  All you need is Outlook, a bunch of people who don’t want to talk face-to-face with each other, and cursory reading and comprehension of emails.  

Start by serving over a half-accurate recap of events to CYA.  (CYA isn’t a corporate sport, although it may resemble one.)  Watch as a CYA gets volleyed back, usually copying in the recipient’s boss to CYA in front of them.  Then one of the recipients, reading the original email in a hurry on a Blackberry or some other similar device designed to destroy productivity, answers back (again to all) on an imagined fact in the email.

Quickly everybody begins to volley back the email to the “other” department–after all, it’s not like we all work on the same team, for the same company, right?  The faster you can get the email out of your box and into the other guys’ the quicker you win.  The first guy to drop the ball once the CEO finally gets added to the distribution, loses.

Much like real volleyball, you end up with sore wrists and somebody ends up face-down in the sand.  Usually not the guy who served up the whole mess in the first place.

Tag

Much like the schoolyard version of tag, this involves getting those emails out of your box–without actually doing anything with them, mind you–by tagging somebody else with them.  Like the game of tag, it doesn’t matter who you actually tag as “it.”  Just get the closest guy, tell him/her they own it, and take off.

Tag can be a lot of fun because it can also trigger games of email volleyball when one of the tagees begins to forward around the email to somebody else, who doesn’t read it completely, copies in the boss and….

Beanball

I grew up playing–or being the target of, I’m not really sure–this game in Central New York years ago. In this demented schoolyard ritual, you get a tennis ball and a bunch of people, usually boys.  The name of the game was to run around, chasing people with the ball and firing it at their head as hard as you could.  Bonus points if they wore glasses and you could knock the glasses off their head and knock them down at the same time.

In email, this game is played by blaming the recipient and–bonus points–figuring out how to have the CEO or division exec in the email trail to heap further humiliation on the recipient.  Who’s usually a guy in IT just trying to do his job when a squirrel chews through a cable. Hey stuff happens, but what good is it if you can’t blame somebody for the randomness of the world?

So what should you do?  How about getting exercise by standing up and walking over to talk to people?  Much healthier for you and–bonus points!–it generates less email, meaning you can do the work.  Everybody wins!

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A GOOD Race to the Bottom

It’s been said that you don’t want to be in a business that has the ability to be commoditized.  A commodity business lends itself to a race to do just a bit more for just a bit less–a few more features or benefits, for just a bit less money.

Once you’re in the commodity business, the race is on.  Unfortunately, the race always ends up in a race to the bottom.  And that’s not a race you want to be in, nor win.

I was speaking with somebody at work today and it dawned on me that there is a race to the bottom that you do want to win.  That’s the race to be the dumbest person in the room.

Huh?  Why would you want to be the idiot?

Because if you’re the idiot, that means the others around you are smarter, more capable and more able to help you and the team win.  If we can surround ourselves with intelligence, we’ll get smarter and work smarter.

I’m still working my way down the IQ depth chart.  I’ll let you know when I hit bottom and really start winning.

Hire smart. Promote smart. Be smart.  Be the idiot in the room!

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Good Google: A Reorg!

Google recently did some reorganization under Larry Page, raising the visibility of some executives and removing some others.  Normally I don’t think too much about the organization of any given company, given that I have no idea how the company actually runs internally and what the people considerations are.

In this case, I think the organization makes a lot of sense.  Om Malik does a nice job in commenting on the new organizational structure and laying out who the new and old players are.

I like it because it’s a nice mix of focus on the types of things people want to do (e.g. Andy Rubin as SVP for Mobile) and focusing on key platforms for the future (e.g. Sundar Pichai as SVP for Chrome).  The folks responsible for the way people want to do things can focus on things like mobile (and all the things you can do via a smartphone) and social (how people would like to interact with one another, regardless of platform), while the platform people can make the best Chrome browser out there.

The challenge that Google will face in the organization, and one I’m sure they’re facing already, is that a matrix (which snarled AOL/Time Warner for years) will result.

Takeaway:  I like the Google reorganization, as much as somebody outside the company can, and think that if they can avoid matrix problems it’s a good thing.

 

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