Tag: businessmodels
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“Labor is valuable only insofar as it occupies a constraint the firm hasn’t yet automated.”
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The new economics of enterprise technology in an AI world – This is a strange collage of IT project success and failure. I think it’s saying that if your IT projects don’t show legible business improvement. They’re considered a failure. // Also, you have to look at an IT project as a big system, not…
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A head full of bologna
Lots of links and stuff this episode: AI isn’t a coworker, it’s just automation wrapped in hype. Tech moves fast, but nothing lasts—except bad takes, questionable business models, and the creeping realization that managers just want fewer humans to manage. Meanwhile, we live like kings and don’t even notice. Put it on ice Good episode…
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The State Of Business Buying: Companies Still Struggle To Meet Buyer Expectations – “Buyers are increasingly dissatisfied. Eighty-seven percent of buyers express dissatisfaction with the provider they choose at the end of a “successful” purchasing process. Price is the reason cited most often — but there are others that are perhaps more instructive. Buyers are…
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– Navigating Private Equity ownership. – A memo template for R&D’s plans after private equity. Basically: here’s how we’ll spend less money and use attrition to lower staff costs (hire more junior people as senior people leave).
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Why Is Demand Marketing An Obstacle To Its Own Success? – ‘Too many marketing subfunctions (demand/ABM, field marketing, customer marketing, digital, and events) create strategies unique to their function, independent from the others. Marketers often say that they have a “unified” plan, but it’s more like a PowerPoint deck with “chapters” for each team’s individual…
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Aligning with User Needs with Rod Johnson – ’Spring Source ended up not monetizing Spring at all — but rather worked on monetizing with products that were complementary to Spring. “We monetized Spring by not monetizing Spring, by using it to open the door”’ // Great interview if you’re into the whole open source business…
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Commoditize your condiments, or, open source business models considered
Business models are fascinating. Most business models come down to a type of arbitrage, at least as I understand it. You find something you have that you can sell to someone else, crucially, at a price above what it cost you to make that thing.1 In, let’s call it, The Capatalist Upbrining, there is a…
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IBM Is Buying HashiCorp. What Comes Next? – Good analysis of the possible business strategy, the synergies to activate. // “Customers in specific industries, often highly regulated and conservative in outlook, have often chosen IBM and continue to do so. For them, the value of cloud is complementary at the margins, not a wholesale change…
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About Placemark.io – Is there room in the TAM for a startup like me? Seems representative of starting a software-business, there needs to be room in the market, a chance to make it big: “As I’ve said a bunch of times, the biggest problem with competition in the world of geospatial companies is that there…
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Focusing on just outcomes leads to whacky tech decisions
Confusing outcomes with capabilities I don’t have this sorted out well, but the baby keeps crawling on me to remind me to chill the fuck out about being a professional thought leader and be more of a professional dad. (That’s right, I’m blaming my three year old for the shoddiness of the below!) In the…
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Datadog’s $65M/year customer mystery solved – “Above $2-5M/year annual spend is where bringing a vendor in-house tends to come up. And this is because it is around this number where the cost of hiring a whole team to do what a vendor is doing can theoretically make sense.”
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🗂 Link: Uber’s no-good, terrible-rotten bad Q2 loses more than $5 billion
There’s yet to be any real evidence that Uber’s business model will ever do anything other than burn investors’ money to make traffic worse. Source: Uber’s no-good, terrible-rotten bad Q2 loses more than $5 billion
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Coté’s Commonplace Book #40
I was down in France, just around Paris this week to speak at an event. The audience gave me the chance to work on a military-centric version of my standard talk which was fun, and was well received. I dove even deeper into the ongoing US Air Force story of modernizing their software. It’s chock…
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Link: Why Mexico has not become more prosperous—and how it could
“In other words, workers end up in jobs where they are less productive than they might be. Too many individuals who should be workers become entrepreneurs or are self-employed. Efficient businesses are taxed and penalised, while subsidies help sustain unproductive ones. Joseph Schumpeter’s notion of “creative destruction”, in which capitalist competition drives out weaker firms…
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Link: Dropbox S-1 Analysis – The King of Freemium
“Founded in 2007, Dropbox epitomizes the freemium go-to-market. Dropbox has grown from 0 to 500 million users over that time period. 2% of those users convert to paid and pay an average of $9.33 per month. 90% of revenue originates through self serve channels – an astounding figure for company that generated more than $1B…
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Link: Rupert Murdoch says Facebook needs to pay publishers the way cable companies do
“The publishers are obviously enhancing the value and integrity of Facebook through their news and content but are not being adequately rewarded for those services,” Murdoch wrote. “Carriage payments would have a minor impact on Facebook’s profits but a major impact on the prospects for publishers and journalists.” Original source: Rupert Murdoch says Facebook needs…
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The “purpose driven reader”
A number of trends in media have left most news sites catering to a new kind of reader. According to the stereotype, this reader doesn’t visit news home pages, relying on starting points like Facebook instead. This reader sees news as just another category of entertainment, an escape or time-killer, and believes “important news will…
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The single over-arching theme is this idea is that one should not compete, one should try to differentiate really hard. You want to do things that are one of a kind, you want to do something like a monopoly. You don’t want to do things that put you in cut-throat competition, like opening a restaurant.…
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The single most important lesson we learn from the short history of the consumer internet industry is that winning internet business models are engineered around consumers. In fact, consumer internet businesses must be designed, architecturally, to be more consumer centric than their physical world equivalents. This is because, fundamentally, the internet increases transparency and information…
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