During the last few days – I stumbled on 2 interesting thread.

One from Frank Scavo – where he summed up Nick Carr’s presentation on Cloud computing and how it is changing the IT landscape.  Not much new here from Cloud computing perspective – but I like how Nick uses historical analogy and compare it to the past trend in the Power industry. I have included Nick’s talk on Youtube here.

Second one is from Dave Kellogg – who summed up recent Tom Siebel talk and some of the initiative that he is working on. It is a good summary of some of the larger trends affecting our society in the current day and age. More and more folks are jumping in to help monitor and mitigate carbon footprint we leave behind on daily basis. This influx of both capital and intellectual power will help make the world a better place. It is also becoming good business as more and more bright people jump on the bandwagon to improve energy utilization and work towards providing better alternative sources.

Particularly, I like one of the link that point to Zerofootprint product offering. It has simple calculator that people can use to analyze how much we contribute to the CO2 emission and how we can be more conscious in our daily life reducing the CO2 footprint we generate. Also, it share up and coming enterprise applications for companies to measure and manage their own carbon footprint.   It is not only good from the social consciousness perspective – but also good business.

Enjoy!

Although it is an hour long video – but captures well why in today’s world it is vital for everyone to remain connected with their customers and help spread ideas. Also, Seth has great delivery and captures this topic so eloquently. It is fun to hear some of his usual examples around slice bread or purple cow. Anyway – enjoy.

I will be in Atlanta week of Nov 9th attending Summit - Sage annual customer event. I am looking forward to catching up with lot of our customers; business partners and colleagues from different businesses. There are plenty of good sessions planned and opportunities to have dialog around what is happening in the MAS 90/200; MAS 500 and Accpac world. Ping me if you are attending Summit. I would love to catch up.

We live in a time where communicating to broad audience alone one way has limited reach and stickiness. To make a message sticky and gain viral spread – you want to communicate through your audience. You want to foster a community of influencers who can help spread your message and communicate for you.

Ask someone who is running a business and they will more likely suggest that bigger risk they run is not getting adequate market recognition making sales cycle harder for them. Putting businesses in a position to not able to compete effectively in the market place. Unless you are doing some ground breaking invention – not many will cite they run technology/product risk as the primary reason to go out of business. Market risk usually trump over the product risk. Largely products adopts and evolves to follow customer/technology life cycle. At least until it meets a disruptive trend.

Several well known Marketing gurus have suggested how to effectively target marketing message to create the viral adoption taking “Marketing” from job function perspective to “market-ing ideas that spread” broadly. e.g. Seth Godin…around his thought process “Ideas that spread – wins” or Tribal management. or Forrester on its analysis around how to create Groundswell. Web is littered with such case studies and adoption stories – some more successful than others.

It is one of the reason - more businesses from the get go are increasingly embracing social media and encourage employees to rather share ideas broadly. Folks will invest from the start building community of developers/influencer/promoters needed to give business a market edge. Taking the discussion beyond Marketing department to engage every one involved in the endeavor to help promote your business; ideas; product; etc.

At the end of the day ask yourself – who best positioned to spread what you do best and all the creative ideas about your business than your own employees. So start the journey with your team and go get your ideas out…

I find myself in more situations lately educating others or asking others to embrace social media as part of professional life. It has become a norm for start up companies where social media is part of life. However, in established companies it is a journey: some leap forward and others need hand holding to get the journey started.

I usually find 2 stumbling block for the folks who have not done it before:

1. Overcome their own inertia or fear what does it mean to share ideas on the whole world wide web.
2. Not knowing how to get started – particularly how to keep personal and professional life separate and private as one deem appropriate.

I am not an expert but I have embraced few things as part of my daily personal/professional life. Here is what I do:

a. Facebook: It is my personal family/friend group. This is where I keep up with what is happening in the life of my family and close friends. I usually share personal/family stuff here. I am particular about whose invitation I accept on Facebook or who I invite to be my friend. You can find me on facebook at http://www.facebook.com/alok.tyagi

b. Twitter: This is where I microblog on what is happening in my professional life. Usually, I share organization thoughts that are important to me. I accept everyone who want to follow me on twitter – except lately I am finding blocking some people who seem to have find a way to push porn on Twitter. You can find me on Twitter at http://www.twitter.com/aloktyagi

c. Personal blog: This is where I speak my mind and share my personal/professional opinion on wide variety of topics – usually topics that are near and dear to my heart. You can find my personal blog at http://aloktyagi.wordpress.com

d. Company blog: This is where I represent my professional view as it pertains to the company I work for. You may want to check out your company policy. Some companies are restrictive on what you can say or not. Others are rather liberal and allows people to speak their mind. Anyway – it is better to know company policy as you blog on company site or forum. You can find my company blog at http://community.sagemas.com

e. LinkedIn: I don’t use it as much as others do. It is mostly my professional contact list and I usually use it to do quick reference check or know relationship when I meet someone new. I only accept LinkedIn requests from people that I know of or met recently at some conference/networking event. You can find me on LinkedIn at http://www.linkedin.com/in/aloktyagi

Anyway – there are various other avenues and some people use social media more than others. I suggest find your comfort zone and start the journey – whether to start on the personal end or professional end or both. What is important is to start the journey and be regular.

While talking to few acquaintances who are in the business of building different kind of software (Attention based; consumer product; SaaS; or others) than on-premise enterprise software products – it is interesting to observe similar discussion. This is probably the core nature of software business. At the end of the day it comes down to 2 set of metrics driving business:

1. Acquiring new customers/members/subscribers/etc. More and more businesses now run calculations to understand the cost to acquire new customer/member. Cost to acquire new customer usually is much higher than many would guess, if they had no clue. It gets costlier in mature industry where traditional market is about replacing someone else’s product. Also, it can be costlier in the web world where there is now actual cost of  goods sold (think of all the IT infrastructure that goes around delivering a service) as opposed to the cost of CD.

Question usually gets asked: Beside product strategy to attract and differentiate offering from competitors – keep cost of customer acquisition in check; what other ways to generate traffic/leads; foster communities; target competition; create winning buzz; adjust pricing or terms; bundle products/services to make it more attractive; etc. Increasingly more web based product focus on marketing presence on the local/industry circuit from the get-go rather broadly within ranks via blog/communities to earn credibility. Increasing emphasis on Marketing too important just to leave it to dedicated few – every one has to play.

2. Retaining a customer. It is about understanding the likelihood of customers staying on the product. Generally a combination of understanding attrition rate (as some folks leaves the fold) and knowing life time value of a customer/member. Although harder to find, however, there are industry best practice metrics for the type of busines one can use as a guideline. These days businesses (particularly on the web) have a greater understanding of trends among its existing customer base. One suggestion: if you don’t already know about your customer trends – invest quickly and gain better understanding. By the nature of it -Web based businesses know well how many of their customers renew membership; what is their average monthly dues; what %age of customers usually don’t renew; on an average how long customers remain a member; what feature gets used most; demographics details; etc. Likewise, enterprise software products – SaaS or otherwise have similar metrics to help project maintenance or recurring revenue.

Question usually gets asked: What needs to be done to keep a customer happy using our product/services? What features to add (particularly that generate stickiness); what pricing lever to play; how to provide value without disrupting the apple cart; what promotion to have; etc. To find the secret formula that can help a customer retained longer paying healthy dues – is what makes a business sticky and profitable in long run.

So to remain growing – it is about adding more new customers than the customers leaving the fold. Visualize a funnel – add more while few trickle away. A math described easy but takes an organization with a winning attitude to achieve…

This one is funny. It takes one to start the party…

Also, remind me of a quote…”one person can change the world”

Last few days I went through two separate incidents reminding me of poor business applications resulting into bad customer experience that can easily be avoided – should customer view point is considered while automating any business process. 

1. My elder daughter who is now 17+ was in the process of buying a car. I decided to have her apply for an auto loan where she can be a secondary co-applicant with me – hoping it will start to establish her credit history. We spent multiple hours at one of the major national bank filling out the paper work, etc. only to be reminded after few days that loan can’t be granted with her as a co-applicant given she is a minor. How hard it is to have a simple work flow in the loan application process to error out on the age of a minor while filing the application when certain conditions are not valid? Think about the countless hours wasted of the banker; someone from their lending department and leaving customer with a bad taste who unnecessarily have to go through this long process. 

2. A national university suggests we pay bill on-line to get student registered to their college. We all conduct commerce on-line and now assume certain level of service. However, this university only accepts MasterCard as an acceptable form of payment. It does not accept Visa cards or other popular on-line payment forms. Visa and MasterCard are the big gorilla in the credit industry. In fact, hands down Visa is #1 in the industry with 60% of the market share. MasterCard comes second with close to 30% market share. We happen to be fortunate and had few days left before the deadline for us to apply snail mail way posting cheque in mailbox. Why tout on-line when you can only serve a percent of the customers? 

Anyway, it brings me to the point – automating business processes are to provide improved customer experience. Making business applications usable and customer connected is important.

We experience similar trend in the enterprise software industry – particularly products that have been around for decades and has accumulated lot of features over time. But if those features are hard to use and don’t provide basic reminders or simple error checks – what is the point as they anyway end up in lost productivity and unsatisfied customers. Just ponder – how few features get used when the product is difficult to navigate and hard to use. Feature rich is good – but product build without customer experience in mind is simply not a recipe for success. Applications has to be usable and not just functional to serve desirable customer experience.

Usability matters and it is much more than just cosmetics.

I love reading books. Books have been helpful and insightful in guiding me all along. Beside several great mentors  who supported, coached and guided me along – I credit few good business books in shaping my thought process thus far.

My younger daughter, Mansi, is another bookworm. Over the last 2 years or so – I hardly find her sitting idle. If she has no home work or other chores to do – a good chance is that she is reading some book. She usually read fiction books that come in series.

Yesterday, I asked her to provide me a list of the series of books that she has read during the last 2 years or so. Here is what she provided me a short while later – complaining she can’t remember all. I also asked her to include number of books in that series she has read.

1. Keys to the Kingdom                                                                          7
2. Spiderwick Chronicles                                                                        8
3. Heir series ( Warrior Heir, Wizard Heir, Dragon Heir)                       3
4. Harry Potter                                                                                       7
5. Series of Unfortunate Events                                                                         13
6. Nancy Drew                                                                                        57
7. Flora series ( Flora Segunda, Flora’s Dare)                                        2
8. On The Run                                                                                         7
9. Pendragon                                                                                          10
10. ( The City of Ember, The People of Sparks)                                       2
11. ( The City of Stars, The City of Flowers , The City of Masks)           3
12. Twilight Saga                                                                                      4
13. (Nobody’s Princess, Nobody’s Prize)                                                 2
14. Secret of Droon                                                                                   8
15. Chronicles of Narnia                                                                          7

Total                                                                                                                140 

Incredible!!! I hope she keeps up with her book reading spirit as she grows up. It also explain all those trips to the local library every other week or so to drop off and haul the next bundle.

Are you the CEO of your destiny who is  investing towards your future – learning and sharpening the game?

Great musicians never stop trying to improve; great athletes never stop trying to improve – so why should that not be true for everyone else.

However, it is rather common that many of us stop investing towards learning once formal education is over. Class room education may stop but quest for learning and keeping up with the changing landscape should remain high on the personal agenda. Whatever it is that one want to be better at – can be better – should a person keep hunger in the belly to learn and create opportunities to apply.

It remain a key difference that set apart individuals who succeed from others. Successful individuals never stop applying new learning. They can be gauged by their curiosity to learn and apply everyday. One key metrics – just check their book shelf. It is common for them to read several books a month.

So ask yourself – what is competing for your time that takes away personal obligation towards investing in yourself and learning?

One way is to make a commitment – find books/on-line material/social networking groups/etc. that are relevant to an individual profession and get started. Good books can be the single best personal investment and life mentor. 

I say let’s start today.