Category Archives: business

Scott Galloway Goes on a Tech Media Rampage!

Scott is a good writer and this is his latest blog post.

Here is a snippet

As I’ve written, big tech has no choice but to enter the fields of healthcare and education. These are the only two sectors, other than government, that offer the margin dollars required to sate investors’ growth expectations. Google and Facebook could wipe out the entire radio industry, and they’d still wake up hungry for more profits within 24 to 36 months based on investors’ expectations.

So expect a lot of fireworks in the M&A field.

As important, Scott brings out a basic business model dynamic that most people don’t realize drives the behavior of Facebook and Google – ad supported business models need to keep your attention and will use any method they can to keep it.

Ad-supported platforms are incentivized to allow bots and Russian interference, and to provide more oxygen to ideas that lack merit but are incendiary. Rage equals engagement, which translates to more Nissan ads. Remember that time when Netflix or LinkedIn really pissed you off? That was Twitter or Facebook.

There is lots more there – Enjoy!

 

 

How to blow $500 million and live happily ever after!

You can do that if you are a billionaire – like James Dyson.

Dyson pumped $500 million of his own money to build an electric SIV. And the design is very cool!

James Dyson and the Dyson Car

But he pulled the plug before building a prototype. Why? With the other big car companies financing their EV production models via the profits from their pre-existing car sales, he thought the project was too risky and expensive.

And that is just one part of the Dyson story. Robb goes into more detail — including Dyson’s vision that post Brexit Britain will be just fine. Sort of a Singapore next to Europe, and why Dyson moved his corporate headquarters to Singapore.

How are You at Predicting Exponential Growth?

If you are a human, the answer is probably not very good.

None of us are good at this. Why? First because of normality bias. We are reluctant to accept that things change over time. But even if we accept that things change, we tend to think that change is always linear. Sometimes it is. Perhaps most of the time it is.

But sometimes it is exponential.

Like the spread of caronavirus. One day, we were ok. A few weeks later, the entire world was at risk.

This post about Elon Musk and his understanding of exponential growth gets into the concept.

Enjoy!

And consider this comment from the “Exponential View”

Algorithmic optimisation is driving exponential improvements in AI performance faster than Moore’s Law, argues AI research group, OpenAI. It now takes forty-four times less compute to build a neural net to the power of the breakthrough 2012 AlexNet. “Algorithmic progress has yielded more gains than classical hardware efficiency.” The critical point here is that we’re seeing performance improvements across four different axes in machine learning computation: increased algorithmic efficiency, improvements in hardware architecture (such as dedicated AI hardware from firms like Cerebras and Graphcore), improvements in systems architecture (such as federated learning, which is combined with enhancement in end-point silicon like Apple’s A13 chips or analogue chips for machine learning) and the vast resources available in the cloud. In terms of packing more components onto the same silicon wafer, Moore’s Law may be stuttering, the exponential improvement in processing capability is not.

How to Manage Your Business Through the COVID – 19 crisis

Before I write anything here, a disclaimer. I really dislike “how to ..” posts that overly simplify ongoing life challenges. Stuff like, “How to Make $1 million  a Week Working Part Time from Home!”

And i am not going to write that kind of post here. The reality is that no one really knows how this crisis will shake out over time.

Steve Blank offers a post on how start ups might cope with COVID 19.

Here is the subtitle

Winter is coming

Fred Wilson offers some interesting thoughts about how the stock market and crypto markets are reacting.

His key point

… this downturn (is likely to)l see a greater number of winners and losers than most of the downturns I have lived through. That is because we are already into a pretty meaningful transition from an industrial/physical economy to a knowledge/digital economy and the very nature of this macro event is accelerating that transition in many ways. We just won’t go back to doing some things the same way.

The rule of thumb: to stay afloat, figure out how to add value in this changing environment. Don’t just “hunker down” and wait for the crisis to pass in order to go back to normal. That might work. And it might not. Follow that kind of strategy at your own risk.

An alternative? I liked Adam Rapaport’s message to fans of Bon Appetit.  I liked it for 3 reasons

  • Adam shows a positive attitude. The “We can get through this together” message is critical from leaders to followers. Or else followers will search for other leaders
  • Adam realizes that BA  clients want some sort of continued service during the crisis, and he is adapting to provide stuff in light of what is possible. He is not just mechanically doing old stuff or stopping altogether
  • Adam realizes that BA clients want to understand how BA is changing. He is sharing the process, not just the result. And he is maintaining your personal links to his staff.

You might contrast that with the NBA. Because I paid to become an NBA prime subscriber, Commissioner Adam Silver sent me an email. What did he say? That the NBA is concerned about health. Ho hum. NBA prime still has lots of video of old games. Ho hum. Nothing about what the NBA is thinking about doing to provide sports entertainment during the crisis  How could that work? I don’t know. Then again, no one is paying me the kind of money that Silver gets to do that creative work either. I was not satisfied, and Silver damaged my relationship with the NBA.

So if you are running a business, it is time to get creative. Think outside the box how to preserve your client relationships by helping them get through this crisis.

That is my “how to” message. Now, as my dear departed old dad would say “no get off your ass and do it!!!”