Category: Business

  • The questions in Big Data

    In my last post that touched upon Big Data, I had mentioned how the seeming intent of Big Data is to synthesise actionable insights from processed and unprocessed information at touch points related or unrelated to the enterprise, and then use it to target consumers better. While this is probably true for the short-medium term, I read a wonderful perspective at GigaOm by Beau Cronin on its true potential – the path to building the equivalent of global-scale nervous systems. As I tweeted after I read it, it reminded me of something I’d written a couple of years back before I’d heard of #BigData – if we could actually use data to go beyond that to answer life’s profound questions. Before we go into the subject, here’s a nice video by OgilvyOne titled “Big Data for smarter customer experiences” (via) though it’s skewed more towards the experience rather than the data.

    Beau Cronin has mentioned several possibilities this would give rise to, and the post made me think if something like the hive mind concept would mesh into it as well – a sort of hybrid neural network. He has also pointed out the hurdles we would face while we get there – gathering, processing and conversion into actionable insights, and how phenomena such as priming,expectations, and framing matter so much in how we perceive our physical and social environments. In essence, a fascinating read.

    I was particularly intrigued by framing, and began thinking about it in the context of the unstructured data – tweets, posts, mails, videos – that is a major component of Big Data. The fundamental question being – is it unstructured because we’re framing it ‘wrong’? Based on the enterprise’ intent and not the users’? Ironically, I couldn’t frame the questions right until I met the ever-brilliant S, who has always maintained that the answer is easy to find once the question has been framed right. He has developed (Tulpa -to build or construct in Tibetan – is the concept he enlightened me on while we were discussing semantics) something that at a rough level mashes the MECE principle with Frame Semantics and the entity-relationship model. There’s IPR involved, so no more beans shall be spilled, but as always, I learned much from the conversation.

    In essence, structure can definitely be derived from what we currently call unstructured data, provided we frame the queries right. I can intuitively begin to understand that in the era of data abundance, the only way we can make sense of all of it is by focusing on an intent that is derived from a common purpose, so that the sources of data (users) will be more open to help solve the challenges of data collection. The processing and inferences that follow would yield the best results when the right questions are asked. I have a feeling that the questions asked by a business in an earlier era might not cut it.

    until next time, role models

  • Can media become social enough?

    A few days back, it was reported that Facebook now had a million active advertisers, and that LinkedIn has 3 million company pages. I’ll let that sink in, in case you hadn’t heard. Despite all the social-ness, I realised it’s impossible not to call it media. The wiki definition for media is “tools used to store and deliver information or data” That, for me, is a smartphone now! I also wondered how many media behemoths could boast of a million active advertisers. And that’s when it really struck me how much the traditional media we were used to have been sidelined – yes, they still get advertising revenue, but from a sheer reach perspective. Google, Facebook, YouTube and many more platforms get anywhere between a few million to a few hundred million visitors every day.  To put it all in perspective, TOI – the world’s largest English daily has a readership of over 7 million.

    Media and advertising have had a very intertwined life, unless of course the publication/channel has been on solely a subscription based model. I think the magic of Facebook (and Google, before it) and those that followed is that they have democratised advertising by not just making it something any small business could spend on according to their means, but also giving them the ability to advertise according to contexts – intent, interest, social etc.  Though Google, Facebook etc are still intermediaries, they never flashed their powers, though the latter has begun to, recently. As brands move away from a one-size-fits-all mode of advertising, these platforms give them more options of form and function, and changing the face of advertising. (Google’s exploits are known, here’s a pertinent read on Facebook)

    In such a scenario, what really does a traditional media channel have to offer to its consumers and clients? I’m not saying that they’re all going bankrupt next Sunday, but it’s clear which way the wind is blowing. One way, of course, is to use their brand value, and replicate (and grow) their audience on devices and platforms which better serve advertising interests. They can hone their value offerings by offering various contexts and their combinations – local, social, interests, and so on, and build business models for each. The early movers are already making big deals. But that is the red ocean that everyone is fighting for. How really can a player differentiate?

    Biz_Is_The_ArtI had a vague thought. Media’s original strength was its relationship with users and the trust involved. In the social media era, how can that be leveraged? Flipboard has already allowed users to become curators and create their own magazines. Is that the future, along with shared revenue on advertising? What if users can also curate the advertising their ‘subscribers’ can see? After all advertising is also news/information and has a certain value depending on the source. Traditionally, media  has been the middle man between advertisers and users, but what happens when everyone is media? Can media start aggregating influencers in every domain, including niches, provide them the material for curation, negotiate on their behalf to relevant advertisers, and share the revenue? Perhaps the next  disruption will be the platform that can handle the complexities involved. What do you think?

    until next time, mediator

  • Evolution of Enterprise 2.0

    In the last post  – on defining social collaboration – I had also applied it in the context of social business. It was a brief mention and I did describe it as a utopian thought at this stage. However it reminded me of a debate late last year on Social Business and Enterprise 2.0, because ‘collaborative tools’ found mention then. The reasons for the debate notwithstanding, it was still interesting.

    It began with a post from Andrew McAfee, written in favor of Enterprise 2.0 and in which he pretty much called ‘social business’ geriatric. 🙂 Stowe Boyd shot back with this post, giving his definition of social business and insisting that the nomenclature was important.In keeping with my generally agreeable nature, I subscribe to parts of both thoughts. Social business as an idea is indeed old, but its adoption has been patchy at best. The ‘social’ tools of this era can enable greater, better and more consistent adoption, as there is indeed much potential for synthesis when people, processes and technology meet. Because of this, the manifestation of ‘social business’ would be new.

    But in my mind, there is quite a dichotomy between Social Business and Enterprise 2.0 anyway, primarily because of intent, and therefore the way they’re pitched as ideas. To use them interchangeably would be doing injustice to both. Enterprise 2.0 focuses on using social technologies to address the objectives of the organisation. But Social Business has a larger role and (for the purpose of a direct comparison) would involve setting organisational objectives with a social-societal perspective and a purpose that people can identify with. In Hugh MacLeod’s words, “the need to belong  to something that matters”.

    Is one better than the other? I don’t think so and it is perhaps not an apt comparison. Enterprise 2.0 is perhaps a better fit (relatively) to the current organisational frameworks, while Social Business is much more radical. But it is quite possible that over a period of time, an organisation that adopts Enterprise 2.0 will transform into a Social Business. As for social collaboration, it is a process that can fit well into both.

    until next time, a social enterprise 🙂

  • Flipping news models

    Google’s Fast Flip has been receiving quite a lot of attention these days. Based on the Google News model of aggregation and categorisation, Google has partnered with quite  few sources including BBC, BusinessWeek, Washington Post, New York time, to name a few, which shows previews of their pages on Fast Flip, but looks exactly like they would on the source site, almost. We’ll come to that in a bit. The stories can be accessed basis sources, sections and the other parameters we are used to – recent, most viewed, recommended etc. Oh, yes, much of it is the user interface, that lets you ‘flip’ through the content, ‘like’ stories, and you can click through to the source site, if you want to read the full story. It has its rough edges, and is far from being any sort of killer to anyone, but its a damn good start, much better than any interface that any publication has brought out so far. On the revenue front, there are contextual ads on Fast Flip itself, and Google will be sharing revenue with newspapers. It is interesting to note that the previews of the source sites do not include ads. So if I am able to read a story completely in the preview, (which in many cases I am), I wouldn’t go to the source site, nor would I see/click the ads there. This is potentially an area of conflict, since the (shared) revenue from the one ad that’s displayed on Fast Flip cannot compare with the revenue from the source site. Meanwhile, I’m looking forward to a time when perhaps, Google Reader will have a similar interface. 😉

    In the last few weeks, this is the second instance of Google engaging with publications and ‘helping’ them create a revenue stream. The first instance was Google sending a proposal for micropayments, in response to a request for paid content proposals from the Newspaper Association of America. As per an NYTimes blog, this would be an extension of Google Checkout. Google is only one of the companies that have sent a proposal, and the list includes Oracle, IBM, and Microsoft. The system is of course in its early planning stages, and the business model has a 30-70 split (Google-publisher). Though Google still doesn’t believe that paying for content will be the remedy for newspapers’ woes, it  still has a vision of a premium content ecosystem, which includes five key features that combine the Google’s e-commerce, search, and advertising platforms.

    While Google is described by many as the single largest threat to newspapers, its definitely not the only one. From new hyperlocal community sites (eg. Patch) to remnants of old giants (AOL’s Digital City, Yahoo Local) and from new age media entities like Huffington Post to new and varied kinds of aggregators (Guzzle.it, OurSignal, MeeHive, Thoora) different services are catering to the different needs that newspapers used to satisfy. The important aspect is that the new entities are well versed in leveraging the latest tools and collaborating with those who can add to their utility value. A good example would be the tie up between Huffington Post and Facebook for HuffPost Social News. Social sharing, real time are changing the way news is being consumed. I recently read about The Twitter Times, which creates a customised ‘newspaper’ by checking the links from people you follow, and the popularity of those links. Even while massive changes are happening online, and affecting the lifestyle of individuals and society at large, newspapers are still grappling with how to evolve new business models. (a good, albeit dated read on battle plans)

    There was a short but interesting discussion on Twitter a few days back, where Surekha brought up the example of PressDisplay’s business model (aggregation of various newspapers and consumers pay for access) to ask whether a DTH kind of model would work for newspapers. I didn’t think it would. The only other distribution network for television content is the local cable guy (ignoring the web for now). But ‘news’ and even the ‘features’ content can find its way to the consumer through multiple sources and media – TV, web, mobile, and multiple sources within that.  The entry barriers have fallen drastically. Scarcity model vs Abundance model. Keeping in mind the cost that newspapers incur in creating the content and the incremental value that they give the consumer, how much would a consumer pay a newspaper aggregator, and how much would the newspapers get out of that. Yes, Press Display will make money, but ask newspapers to survive only on that revenue or even that plus web advertising, and it would be a tough task. This is why newspapers are finding it hard to negotiate this transition stage (discussed earlier) because its not one answer and its definitely not a common answer. Again, as I’ve discussed here earlier, there are inherent differences between news gathering processes in the print and online space – batch processing vs real time processing. It calls for a (albeit cliched) leaner meaner structure, not just for operations’ sake, but also perhaps from a profitability perspective.

    The more I think about it, the more I realise that its not just processes, there is a cultural angle to this. As Terry Heaton points out in “The Web’s widening stream“, the knack of creating and facing disruptive innovations. We’ve discussed David and Goliath before, David becomes version 1.0, 2.0, 3.0 faster and faster, each version better than the other (because he fixes the bugs in 1.1, 2.5 etc) while Goliath reels because it can’t even figure out the answer to 1.0.  His strength has become his weakness – scale, and he doesn’t have a culture that encourages moving fast, learning from mistakes, being open to changes amongst other things. In fact, newspapers have been lazy and guilty of doing the exact thing that Seth Godin warns about in “Flipping abundance and scarcity” – putting free on top of a business model, and now rapidly trying to change it.

    I don’t think India is impervious to these changes, the time frame will vary because of several factors – technology adoption delays, vernacular content to name a couple, but as I keep repeating, its no time to be complacent. From Rediff and Instablogs which have evolved their own news collection systems to hyperlocal players of different kinds – governance based like Praja, Citizen Matters, local businesses review based like Burrp, and several other niches, the different domains of newspapers are being challenged. More importantly we’re increasingly getting used to ‘streams’ – FB, Twitter etc. The principal revenue model of newspapers has been advertising (as opposed to circulation), they have been the medium to reach audiences, with the most basic of audience filtering. The radical change (as Heaton points out) is that advertisers can be part of the stream themselves, with such filtration techniques that they can target an individual if necessary. So, for newspapers, if the advertiser won’t pay, the reader has to. The reader , meanwhile has figured out that on the web, he has an abundance of choices.

    until next time, stop press?

  • News..yes. Papers?

    Rupert Murdoch recently stated that the doomsayers predicting the end of the newspaper industry are off the mark. According to him, online readers also need news form a source that they can trust, and that’s what newspapers have always been doing. He agreed though, that newspapers would have to change from the ‘one size fits all’ approach to cater to readers’ demands. He mentioned his plans for WSJ, to offer three tiers of online content: free news, a subscriber-level service, and a third “premium service” of reader-customizable “high-end financial news and analysis.”

    The newspaper, or a very close electronic cousin, will always be around. It may not be thrown on your front doorstep the way it is today.

    On the whole, I tend to agree with him. However, I also feel that newspapers would be missing the point,  if they see this as just a change of platform. Its a mindset change, not just in terms of news delivery, but also in the way they approach business. After all, even the biggest names, like NYT , Gannett (publisher of USA Today) , are not in the pink of financial health.

    Before we get to that, a few varied ‘heritage media’ (print) trends. On one hand, we have publications like Christian Science Monitor and PC Magazine and many others switching to a primarily online only presence. On the other hand, the NYT opened up a couple of APIs, releases an AIR based news reader, the Guardian buys PaidContent, and offers full text RSS feeds, the Financial Times’ new site design resembles a blog, and some magazines are even rolling out Instant Messaging functionality. Over to India, Live Mint and Business Standard have recently launched podcasting (via WATBlog), India Today added Cosmopolitan to their existing list of digital properties and Business Standard has launched a branded Instant Messenger – BS Buddy (via Medianama). In essence, newspapers and magazines seem to be looking a bit more seriously at making the transformation from real to virtual.

    So this is a good question to ask – what’s the next step for news? To start with, they could take a good look at this list of 10 things that every Newspaper/Magazine site must do. This itself would be completely against a few things that they’d consider sacred – most notably, link sharing and responding to comments. Broadly, I’d imagine it to be a two pronged approach

    • figure out how to deliver their content on digital platforms, and that might even lead to changes in the kind of content they gather, and the way they gather it.
    • figure out a business model that can leverage the content they have – subscription/ advertising/ both.

    First the content aspect. A lot of publications have been experimenting with citizen journalism. They’d do well to check out tools like CoverItLive. Instead of randomly adding a ‘blog’ section to the website, make it work. Get enthusiastic journalists to blog. Get regular bloggers to do guest columns on specific topics of their interest. Promote them and the content they add to the site. This would help them being aggregators who also serve niche interest communities. What is equally important is to bring about a systemic approach to making journalists regard their story as just a start, and getting them to take ownership of making it a conversation. There are advantages in it for them – new story ideas as well as a better understanding of their readers. Yes, Twitter can help in the conversations too. These changes in news gathering techniques might very well change the quantity and quality of newsroom staff. This makes a great case study.

    The business aspect. I read a a very insightful article on how the entry of print publications into the digital medium will change the balance of power and wealth in the link economy. This process has already started. But before that, I think they have to see themselves as news sources, rather than just the newspaper on the web. This would influence how and where they position their ads, and would help them deliver better value to advertisers, as well as readers. While on this subject, I think online ad networks that include newspapers (with various editions and publications) along with independent blog/ blog networks that complement/add on to their content, might make sense. I remember NYT making a sort of conglomerate in association with 3 other newspapers, sometime back. There are other business models too. For example, there are community funded reporting services like Spot.us. (via RWW) Do check out this link for a very radical approach.

    Though readership of dailies (with very few exceptions) continue to drop, I don’t think newspapers are in their death throes in India. But should they wait for that? A good brand takes some time to build. There’s a reason why more people in India visit Rediff and Yahoo and even the web 18 properties than Indiatimes/ Times of India group properties. I’m hoping to see something like Instablogs join the big league soon. Brand loyalty in the real world need not translate into brand loyalty in the virtual world, especially when you’re dealing with a (by now) commodity called news. And as newspapers would know from their real experiences, once readers are used to a certain way of consuming content, it’s difficult for a competitor to sneak in. It would pay well to learn from mistakes – of those aborad who might have waited too long to transform. After all, what doesn’t kill you doesn’t necessarily have to make you stronger. And I’m not sure if newspapers would like to be part of the thin end of the long tail of news consumption, with pure play web entities occupying the head.

    until next time, save paper, save the environment 🙂