16 Jan 2012

Life Needs Randomness

  I've been thinking a lot about filter bubbles lately -- and not just the internet kind. The people around me every day are a filter bubble of their own -- chances are they drive similar cars, wear similar clothing and have similar hobbies. Since people tend to cluster around people that are like them, and then subsequently attempt to fit into that group, our lives tend to keep us pretty firmly within our comfort zones. We don't get a lot of randomness.

Dice

This post was originally about curation on the web, which is a solution specific to the filter bubble problem online. Curation, while not a new concept in real life or online (we've long had DJs and social bookmarking services), is picking up steam as people realize that there is value in assembling interesting and unique collections. Sites like Gilt, Pinterest and Restaurant Bucket List all deal in curation (Gilt employs people to do it, the others crowd source it) and let visitors stray outside of their algorithmic recommendation circles to find new and unique areas or things to try out. 

But there's more to breaking out of filter bubbles than just changing what sites you go to online -- there's a big bubble in the real world too, and breaking out of this one is even more difficult. The solution is not to set out on a quest to find new interests -- you don't know what you don't know, so you probably won't find it. The trick is to increase randomness. When I think of a typical week, I don't get that many opportunities for serendipity -- the people I know and the places I go are generally pretty predictable. 

I don't have a perfect solution -- there probably isn't one. However, there are some interesting prospects that I'll be watching and thinking about. A few standouts on the web to help increase real-life randomness are Meetup and GrubWithUs. Meetup is focused on informal meetings for any groups of people that want to assemble, and GrubWithUs bills itself as a way to "Eat with Awesome People". Another interesting avenue is volunteering -- in the past, I've found that the perspectives gained from volunteering are as outside-the-box as any I've found elsewhere.  

Serendipity is an important ingredient to success -- not just financial, but in life. We can all think back to chance encounters that ended up making a big impact on how we think, act or relate -- and often they happen because of a new person or experience outside of our normal comfort zone. The more steps we can take to actively expose ourselves to new ideas and people, the more interesting people we will become, and the more success we will have.

 

19 Dec 2011

Good Enough

I just finished reading an article in the New York Times blaming the high cost of law school on the onerous requirements set by the sole ratifier of legal qualifications, the American Bar Association. In an hour or so, I will head over to a CVS walk-in clinic to get a diagnosis for some (likely cold related) chest pains I have, and hopefully some accompanying medicine.
JulyAug 2008 - Lawyers Rule; Doctors Drool - balance drawing

The law profession and the medical profession are two extremely high cost fields. Students of either discipline must spend hundreds of thousands of dollars and untold apprentice hours learning the intricate details of their trade. When they finally are deemed fit to practice, they are licensed by a central body and allowed to "serve the public", again at an astronomical cost.

The irony is that many of the needs that the public are much simpler than the complicated licensing procedure leads one to believe. Just as I don't need a brain surgeon to bandage my stubbed toe, I probably don't need a fully licensed lawyer to prepare basic divorce papers. Unfortunately, however, there are few gray areas when it comes to medicine and law. The intentions are good -- given what's at stake (life and liberty) the licensing bodies want to make sure that the public gets fully qualified staff.

Inevitably, however, this "one size fits all" approach needs to change. The legal and medical professions, in order to keep costs down and best serve the world, need to develop a pyramid structure where basic issues can be dealt with by people with less (and less expensive) training, and more complicated situations are escalated to better-qualified (and more expensive) specialists. We already see the beginnings of this happening in both fields -- walk-in clinics staffed by nurse practitioners licensed to write some prescriptions can efficiently handle fevers and aches without involving a doctor. Online services like LegalZoom can sell boilerplate documents for certain basic legal structures and situations. As a result of these initiatives, thousands more have access to basic care and eager entrepreneurs have one less cost and barrier.

As our country faces escalating health care and tuition costs, as well as a widening gap between classes, the solution isn't adding more laws and limits or fixing prices. The solution lies in the question "what is good enough?", and allowing both suppliers (eg, medical and legal professionals) as well as consumers decide the level of specialization they need.

21 Aug 2011

What is the Cloud, Anyway?

In the last 9 months, it seems like just about everyone I know has gotten a new job. They still work at the same companies, calling on the same customers, designing the same equipment. Nine months ago, they would have described themselves as sales representatives, data center engineers, or software developers. Today, they all work with "the cloud".

Cloud

What's interesting is to hear different definitions of "the cloud" as it pertains to different areas of business. To a storage engineer, the cloud means bigger datacenters, hungry for hard drives and bulletproof RAID systems. To a telecommunications salesperson, the cloud is a way to hold meetings across the US or even the world without physical presence or expensive dedicated lines. To a scrappy entrepreneur, the cloud is a way to scale an exponentially growing web application on-demand as more users require increasing resources faster than even the best purchasing staff can get hardware spun up and on-line

While these definitions are all convenient in their domains, my favorite definition, which has yet to fail me, is simple: the cloud is about rental. Rental is a powerful concept: it allows people or organizations to use products or services on an as-needed basis, without owning them yourself. Cars, apartments and DVDs all benefit from separating owners and users. 

The cloud is simply an extension of the rental business to all things computing. For the first 50 years of computer history, anyone that wanted to use computers needed to purchase expensive hardware and maintain complicated networks. [Mainframes changed this a bit for some of history but lost favor to cheaper, commoditized hardware. But that's another post]. Companies that wanted a presence on the internet needed to buy servers and try to efficiently balance cost, obsolescence, and load. Users that wanted to get all the benefits that come with PCs -- word processing, storage, internet -- needed to buy relatively expensive desktop boxes that required frequent updates. The three converging factors of cost, obsolescence and load created a game of hot potato such that nobody wanted to take the risk inherent in renting out computing services, because owning and renting out to others was a dangerous proposition.

In the last 3-5 years, the confluence of commoditized hardware, network connectivity, and interconnecting software has made the idea of renting computer services possible. As a result, big companies that are experts at managing some aspect of computing such as storage, software, or processing, can take the responsibility of "owning" the necessary hardware or service and allow others to access their systems for a recurring fee. For many users, renting in this manner is an extremely attractive proposition, because it brings with it enormous flexibility. Individuals can rent space to store pictures, videos and music online, which relieves them of the hassle of backing up and transferring. Entrepreneurs can rent network connectivity and processing power, which allows them to "try out" a new business without the enormous capital commitment of building a datacenter and support staff. Established corporations can simplify their IT organization by renting everything from CRM systems to productivity software to entire operating systems. The cloud means that nearly any user can get the benefits of centrally and expertly managed products without the cost of actually owning and maintaining those products themselves.

It's exciting, because it represents tremendous leverage. Just as mortgages put ordinary people into great homes (some might say too great, but again, another post), cloud computing brings great services to ordinary people and businesses. Allowing a college freshman access to hundreds of computers in an Amazon datacenter for pennies per computing hour has the potential to spawn more businesses than venture capital ever did.  Although "the cloud" might be a popular buzzword, it's also a truly transformational concept that will be around for the long haul. Understanding it for what it really is -- a rental business -- helps cut through the newspeak and lays bare the tremendous implications.
4 Aug 2011

Move Over, Wal-Mart

We just moved into a new apartment in downtown Chicago, and are in the mildly unpleasant packing stage. Yesterday, my mother- and father-in-law came over to help us move some boxes and organize. No sooner did we get our kitchen table unpacked that we realized we needed a square bit for the screws in the table. With no local hardware stores open at 7pm, I decided to just order a bit set from Amazon Prime with local express delivery for a total cost of just over $10 ($7 for the bit set and $3.99 for shipping).

Fast forward, 9:45am today, the package comes from UPS. 

Wow! There are few companies that have transformed their markets as much as Amazon (and I'm not even talking about their cloud businesses). Think back for a second, ten years ago. Before Amazon, shopping online meant doing a Yahoo! search, coming up with some sketchy looking web site that wanted a credit card on an unsecured connection, and then paying $12 to ship the product. Hopefully I'd get it in a week or two. 

Now, to the chagrin of other online (and perhaps local) merchants everywhere, I can't tell you the last time I ordered from a site that wasn't Amazon. For $16/year ($80 for Prime shared among 4 other people), I get free 2-day shipping and $3.99 overnight shipping on a huge chunk of items they carry. To put this in perspective, $3.99 is less than I'd pay to take any type of public transportation to a hardware store, and I get the item almost as fast. Unlimited free 2-day shipping means that I can order just about anything I want, as much as I want, and get it fast -- typically orders placed Monday at 11pm will be on my doorstep early Wednesday.

What does this mean for Wal-Mart, the undisputed king of retail in the US? Why do people even need to go to a store anymore? Wal-Mart has built their business (a $175B market cap, as of this post) on low prices and efficiency. But Amazon ($93B) is pretty efficient themselves, and a lack of sales tax in many states means potentially even lower prices. They don't need physical stores, or greeters, or cashiers -- just robots and warehouses. While $3.99 next-day shipping isn't necessarily available to every geography in America, overnight and 2-day UPS does hit a lot of customers out there. While there's still a big barrier to online shopping for most people in the world, it is eroding fast.

Innovation in the retail goods space is going to be key for either (or any) company that wants to be "king of retail" in the next 10 years. RFID tagging, local drop shipping, in-store pickup and more are all going to change the way consumers purchase basic staple goods. Wal-Mart is no slouch themselves when it comes to innovation, particularly in the supply chain, so it will be an interesting battle. The big winners, fortunately, are the consumers, so we can sit back, watch, and vote with our dollars -- or maybe our one-click purchase credit card clicks. 

If you're interested more in this topic, check out this excellent Amazon vs. Wal-Mart Infographic at Minyanville
28 Jul 2011

Customer Service 2.0 - The Web Meets the Helpline

What percentage of your customer service questions are reliably answered with a phone bank or automated system? Perhaps one in 20 times I end up getting some sort of satisfactory resolution from an automated system, but most of the time I end up screaming "OPERATOR!" into the phone while simultaneously mashing "0" in the hopes of getting a person. After 5 or more minutes of navigating menus and entering account numbers, someone finally picks up. Their first question? "Hi, what is your account number please?"

Infuriating, and vastly inefficient. 

Frustration_narrowweb_300x3490

Instead of the silliness of using an inherently slow, linear information system like a phone to attempt to gather information only to place the customer on an interminable hold, why not offload some of the gruntwork to the web? A simple login to the company's site followed by a form where I describe my problem would make getting the correct information to the company much easier. More important for me, it would make *entering* that information much easier and more efficient. After clicking the submit button, the page could give me a useful estimate of my hold time and then the backend system could call my phone and connect me with a real person as soon as one was available. For me, no waiting with the phone to my ear; for them, less wasted time repeating information means less customer service costs.

Amazon is on the right track already (surprise!) -- they have a help option that allows logged in users to request a call. But you still end up spending some time in menus, and there is very little information that you add before they call you. Such a change shouldn't be terribly difficult -- companies like Twilio and open-source software like Asterisk make phone-computer bridging relatively easy. Perhaps somewhere, somebody does this perfectly already -- but why not everybody?
6 Jul 2011

It's Gotta Be Open

I'm continually amazed at how effectively cloud services like Dropbox, Amazon S3, Amazon Cloud Player and Google (well, just about Google everything) have eliminated my dependence on any given computer or device. I take tons of pictures and save lots of contacts on my phone, but if I were to lose it, I could remotely wipe it with no loss of data whatsoever. Same thing (mostly) goes for any of my computers -- they're all basically interchangeable. It's great to throw stuff into a Dropbox folder or Cloud Drive playlist and not have to worry about syncing files yourself.
Cloud

However, perfect interchangeability relies heavily on open standards. Today, as I was transferring some songs from my laptop to Cloud Player, I was reminded of the dangers of DRM (copy protected) files when it reminded me that my copy-protected iTunes files* were unable to be uploaded. Since I rarely listen to music on my computer, and my Android phone doesn't support iTunes DRM, this effectively means my files are now useless. Luckily it's only 20 or so songs (and I knew they were eventually going to be useless when I bought them), but for people with big libraries, it's definitely a pain. The lesson going forward is to always avoid DRM, unless you're OK with losing the file in the future. Books on my Kindle, for instance, are basically gone if I ever get a different device, since they're heavily locked down.

The lesson is -- devices don't matter any more. What matters is interoperability. Dropbox, to their huge credit, focused on wide support from the very beginning -- they had a Linux client early on, and they have mobile versions for iOS, Android and Blackberry. It's a pretty safe bet that they'll support just about anything out there going forward. iCloud, on the other hand, is firmly entrenched in the Apple ecosystem. It works great if you've got a Mac at home that you connect to your iPad and iPhone. You can even throw Windows 7 in there without too many issues. But what about some of the exciting devices coming out from the other guys? Apple certainly doesn't have too much interest supporting their arch-rival Google's Android OS, and they won't be bothered to support Blackberry or WebOS. You can put all of your stuff on iCloud, but moving later when the next shiny tablet comes from someone other than Steve Jobs won't be pretty. There's always going to be some other cool toys, and vendors are always going to try to lock you into their platforms. Stay with the guys that let you take your data anywhere you go -- it's the only way to really be future-proof.

* Recognizing the problem, iTunes has since dropped DRM on files that you buy, and you can remove the DRM from your existing files for $0.30. It's not worth it to me really, but if you have a big collect that you don't want to reassemble, it might be the easiest move.

2 Jun 2011

8 Ways to Lock Down Your Digital Life

Locking down your digital stuff is more important today than it's ever been. Tracking is easy, data breaches are coming up every day (today it's PBS, Lockhead Martin and RSA), and we do everything online. Lately, I've been looking a lot into ways to get better security on my mobile, desktop, and browser. Here are 8 relatively easy ways you can turn your security up a notch without driving you crazy jumping through hoops.  

  1. Use LastPass to create super-strong passwords. LastPass is a password manager that lets you create different passwords for every site that you use. Those passwords are then stored encrypted both online and on your local computer (which means that even if the LastPass servers are hacked, your info is safe). Whenever you want to log into a site, simply type your master password, and LP fills in the rest for you. It's far better to use strong, unique passwords across the web than to use fluffybunny1 on everything. LastPass works with everything -- browsers, phones, desktops -- so it's super-easy.
    Lp
  2.  Install BugMeNot (Firefox, Chrome extensions) to give you quick throwaway accounts. BugMeNot lets you log into many sites that require registration by providing you with a dummy account, so you don't give them any info.

Read the rest of this post »

15 May 2011

Own Your Data(base)

It's been a terrible month for user data security. Epsilon and Sony, both high-profile and data-rich companies, have been breached and revealed sensitive personal data to hackers. In Sony's case, the 77 million users affected weren't even notified that their names, addresses and potentially credit card data were compromised until six days after the attack. Many speculate that in the rush to get out new product features, Sony neglected to carefully think through their security model for protecting the valuable user data they they stored. Clearly, the current system of data storage and retrieval is broken. As today's New York Times reports, there is currently no U.S. federal law regulating data theft, penalties, and notification requirements, so states are left to determine their own protocols. Companies have little downside to collecting troves of information, since the penalties for losing it are unclear while the benefits to having it are potentially great. Meanwhile, consumers have little or no control over what happens to the increasing amount of personal information that they give or leave as they interact online and in person with well connected businesses.

Dandelion_seeds_being_blown

Read the rest of this post »

19 Jan 2011

Wedding Program in LaTeX

Those of you that have undergone a wedding (and more of you that are currently planning a wedding yourself) know that just about every aspect -- from the food, to the flowers to the transportation -- is heavily marked up. Printed materials, like the program, are no exception -- printers charge an arm and a leg to churn out a good looking program. But what alternatives do you have? I've seen many, many ugly and stereotypical programs created with Microsoft Word that lacked the polish and pizazz that the professionally-done ones have. There is just something about the ordinary, boring fonts and predictable spacing that makes Word programs, well, less than special.

Wedding_prog1

There is a solution, although it requires a few notches on the geek scale. LaTeX is a free, professional-level software package to typeset just about anything. Academics use it to make their papers look great, publishers use it for crisp looking books -- and now you can use it for your wedding! Here are some screenshots -- check out the beautiful calligraphy font (called calligra (get it here)) and other niceties. This one is for a Catholic wedding, but you could definitely modify it to fit any style wedding. Here are the files: Download: wedding_program.zip

30 Aug 2010

How much juice can you squeeze?

These are the Glengarry leads. And to you, they're gold. And you don't get them. Because to give them to you is just throwing them away. They're for closers.

A few weeks back, Groupon, everyone's favorite startup, offered a nationwide Gap coupon -- $25 for $50 at Gap. By the end of the day, Groupon/Gap had sold over 400,000 of the deals -- over $10 million in discounts to customers purchasing the offer and likely around a 75% discount to Gap stakeholders after Groupon's cut. Based on their latest 10-Q (June 2010), GAP Stores has a gross margin of 42.1% (this is averaged across Gap, Old Navy and Banana Republic). Therefore, every $50 Groupon they sell has a cost to them in the neighborhood of $29 (technically a bit less, since a few costs like rent are fixed but included in the gross margin calculation). After Groupon's cut (assuming 50%), Gap receives $12.50, leaving a shortfall of $16.50. For Gap to break even, every customer entering the store must therefore spend an additional $40 (.421*$40=$16.84). So with the numbers out of the way, how does Gap, or any business, make this deal worthwhile? They key is how much value a company is able to extract out of a customer once they're in the door.

Read the rest of this post »