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Tuesday, 14 November 2006

Foolishness revisited

Posted on 05:54 by Unknown
In a post last month, I talked about Dr. James G. March's ideas on the value of foolishness in business. In the Harvard Business Review interview (link - $$) that served as the basis for that post, Dr. March cited one bit of foolishness that can have good consequences for business: that of borrowing ideas from another domain.

Today's Wall Street Journal illustrated just this concept in its front-page article on how one British hospital is borrowing processes from Ferrari's Formula 1 pit crew to improve its operating room to intensive care transfers, and thereby reduce fatalities.

The teams compared their processes, which, as March would point out, have far more differences than similarities. That's the foolish part. Yet within those differences, several similarities stuck out, one more than any other: small mistakes could accrue into serious problems (for the F1 team, that meant a slow pit stop; for the surgeons, a much worse result).

Defining a shared goal of identifying and rooting out the tiny mistakes allowed the doctors to determine which of the F1 team's processes to copy and how they should copy them.

Resulting in lower error rates (40% lower), and, over the long run, likely a lower fatality rate. All from some foolish thinking.

(Picture: cover of "Ferrari Formula 1: Under The Skin of the Championship-Winning F1-2000" via motorsportscollector.com)

innovation, operations, foolishness
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Monday, 13 November 2006

Apparel industry's constant reinvention inspires

Posted on 08:15 by Unknown

If you feel as if you're stuck in a going-nowhere industry, stop feeling sorry for yourself and consider this: the US apparel industry, long considered dead, continues to reinvent and renew itself.

Back in September, James Flanigan of The New York Times wrote about NYDJ, a company that created innovative blue jeans that look great on women over 35. And today's Wall Street Journal profiles Barry Forman, who sold his garment company when the business began moving to Asia, only to re-emerge with a company that fixes problems with Asian-made garments shipped to the US.

NYDJ uses innovative product design and speed to compete with cheaper overseas rivals. Says President George Rudes in the Times article, “[Specialty and department] stores want up-to-the-minute fashion and quick changes, so you have to make the products here.”

Forman's company, Santa Fe Finishing, thrives by exploiting white space created by the move toward Asian production; namely, that it's impractical to send back flawed goods to Asia. It's best to repair them, in many cases. Forman says, "When I was a manufacturer, I drove a mile to the factory when there was a problem.... What the hell do you do when your goods are from 9,000 miles away?"

So, if you think there's no more room for innovation in your industry, look in the mirror!

(Picture: NYDJ Tummy Tuck jeans from Dorothy's Lubbock Boutique)

innovation, strategy, apparel
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Google AdWords report week 5

Posted on 05:45 by Unknown
Here is the report for the latest week of the Google ad experiment. I increased the budget last week, so we'll see what effect if any there was on the clickthroughs, CPC, etc.

# impressions via Google search: 526; #website hits: 11; clickthrough percentage: 2.09%; cost per click 54.9 cents.

# impressions via Google's ad network (i.e., other sites where Google posts ads): 3,522; #website hits 8; clickthrough percentage: 0.23%; cost per click 44.6 cents.

# response forms: 1.

Pretty similar results (within the range of variation I'd been seeing) despite the increase in budget. Slightly higher cost per click. So we'll have to see if increasing the budget was worthwhile. Here's how the two top keywords did:

Keyword Impressions Clicks Total cost
MVNO 359
8
$4.22
MVNE 83
2
$1.26

See you next week.

marketing, advertising, Google, Google AdWords
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Saturday, 11 November 2006

Wireless cable is not an oxymoron

Posted on 04:20 by Unknown
See this post from the New York Times Dealbook blog. Comcast may buy Sprint, but more than as a way to add a fourth service. The companies have a long history together. Comcast was part of the original Sprint PCS investment group in the mid-90's, and now is part of the cable consortium working with Sprint on an MVNO-like wireless offering.

According to Jason Bazinet of Citigroup, as quoted in Dealbook, “Wireless will likely emerge as a critical platform for voice, data, and video. In short, wireless untethers cable’s entire business.”

4G, WiMax, W-CDMA, it can give one a headache. But imagine the convenience and performance of your home WiFi network extended across town, across the state, the nation or the world. Now that could prove useful.

innovation, wireless, cable, 4G, WiMax
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Friday, 10 November 2006

If you care about information technology, read this

Posted on 13:15 by Unknown
I wanted to point out a terrific article in this month's Harvard Business Review, by Professor Andrew McAfee of Harvard Business School, on how businesses can manage and utilize IT better.

In it, Professor McAfee segments the IT space into three components: Function IT (e.g., spreadsheets), which improve individual tasks; Network IT (e.g., Lotus Notes, wikis), which provide general-purpose collaboration tools that users can adapt to their needs; and Enterprise IT (e.g., CRM, ERP), software products that define/enforce cross-functional or inter-company business processes.

Why the segmentation? Because the benefits and challenges of implementing each type vary dramatically. For example, the greatest challenge in adopting Enterprise IT solutions is managing the changes required in how large groups of people work, while with Network IT the challenge is to encourage users and demonstrate how they can make use of the technology.

Graciously, HBR is offering the full article online FREE this month only!

And, in a case of putting his money where his mouth is, eating his own dog food, or whatever cliche you'd like to use. Professor McAfee has an excellent blog in which he comments and expounds on his ideas regarding IT. Add it to your reading list.

information technology, strategy
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Friday comix - the complementor relationship

Posted on 09:01 by Unknown

strategy, alliances, complementors, Friday Comix
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Thursday, 9 November 2006

"Lost" as metaphor for the dysfunctional company

Posted on 12:58 by Unknown

Have you ever watched "Lost" and felt you were a fly on the wall watching the executives at your company interact?

We just got finished with watching Season 1 on DVD. (I know, I know, we are two years behind, but we have small kids, are busy, etc.... Anyway, we're trying to catch up, thanks to Netflix.) And I noticed the following: watching the "Lost" survivors is like watching a dysfunctional management team at work. Don't believe me? Consider this:

Dr. Jack is the CEO. Everyone comes to him when a decision needs to be made. Sawyer is the rival with his own agenda. Locke is like the IT guy--nobody knows what he actually does, plus he creeps everyone out--but all know they can't live without him. Kate is the schemer who's always looking to suck up to the CEO (but keeps relations with the rival, just in case). Sun is the quietly-effective leader who really should be running the place if people wised up and took notice.

They're not without talent, but they can't get their act together. For example, they
  1. Have different agendas
  2. Sustain unproductive rivalries (Jack-Sawyer)
  3. Make assumptions about others and act on those assumptions
  4. Don't communicate
  5. Can't overcome cultural barriers (Jin is isolated almost the entire first season)
  6. Can't organize or coordinate their actions
  7. Don't cooperate
  8. Are afraid of scary things in the woods (have you ever viewed your competitors that way?)
It makes for great TV, but it's hell if you have to work in it every day. Sound familiar?

(Picture from JOJ TV)

organizational behavior, strategy, alliances
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