If You Build it, They Won’t Come

In the movie Field of Dreams a disembodied voice admonishes the main character: “If you build it, they will come.” While in the movie this refers to a baseball diamond in the middle of an Iowa cornfield, many in IT apply the same logic to the latest technical wizardry.

Examples abound in the world of new and emerging technologies. From so-called “Web 2.0″ technologies to the newest collaboration and communications technologies, these gadgets are pitched as solutions to problems from market share to poor internal communications. Workers that are loathe to raise their heads above their cubicle wall and exchange ideas with coworkers will magically become the next great communicator when you sprinkle some IT pixie dust on the problem. If you build it, the IT industry tells us, they will come.

While Field of Dreams ends happily, and “they” do indeed come, the real world is usually not so magical. Buying a collaboration package, creating a blog or firing podcasts out into the ether must be part of an overall solution to a business problem. Problems that are solved solely through technical changes are few and far between, and the technology should be the icing on the proverbial cake that solves the problem, rather than the cake itself. If your people are not communicating, find out why, change their behaviors, offer training, and then install some technology to shift the organizational changes into overdrive. If you want to market to the Myspace generation, figure out if it’s a market worth perusing, do your due diligence, and then start working the social networking scene as part of your overall marketing strategy. If you research it, dovetail it with your business strategy, get the right people aligned, determine your audience and then start installing new technology, they will come.

Return of the Pod People

Well I’ve joined the ranks of the pod people, and made my podcasting debut speaking with Tom Parish of Enterpriseleadership.org about IT strategy, the future of the CIO role, and how IT shops can transition to the “Breakthrough IT” model. I look forward to being enjoyed on subways, during rush hour and in gyms everywhere.

Unfortunately the interviewer sounds crystal clear, and I sound like I am calling from East Berlin, circa 1983.

Enjoy the show!

Un-Targeted Marketing

Technology has revolutionized many aspects of the modern corporation, and as of late, perhaps none as dramatically as marketing. From providing reams of data on customers, response rates and infinitely detailed market segmentation, to engendering an ability to contact millions of people in seconds, IT has forever changed the way companies engage their customers.

While the vast majority of technical innovations in the marketing arena have been positive, the ease at which we can now reach millions of customers has an insidious side: the effortlessness at which a company can become exposed to the tyranny of the minority. As rapid feedback cycles allow companies to react to customer whims in moments, causing speed at reacting to feedback to take a back seat to determining which customers to actually react to. It is all too easy to allow a few loud voices to shift an otherwise successful marketing endeavor, or irrevocably change the course of a company for the worst.

Similarly, market segments that were difficult to reach can now be assaulted on multiple digital fronts. However, the ease of access to a formerly untapped market does not necessarily make that market viable. Shifting your focus away from core customers to attract an additional 1% market share makes no sense if that change in focus causes a dramatic loss from your core contingent. Grandma may now be on the web, but that doesn’t mean you should be wasting your efforts trying to sell her the latest sports car.

Like all things high tech, it is easy to employ a tool for no other reason than that it is available. Whether you are targeting your average citizen or a massive multinational conglomerate, investigate your marketing decisions on their own merits, without consideration for the tool or technology that makes the effort possible. Just because you can wage a massive campaign on a formerly ignored target group does not mean that is where you should be focusing your efforts.

The Keys to the Kingdom

While far from a bona-fide conspiracy theorist, I have always provided corporations with the minimal amount of personal information possible to complete a transaction due to a minor fear of nefarious intentions. Does Crest really need to know my income level, favorite activities and age when asking how I like their toothpaste? Yesterday however, I did something uncharacteristic: I provided a travel company with a list of every city I’ve visited in the last ten or so years (at least that I could remember).

I’ve been experimenting with the Facebook service, and while the jury is still out, one interesting feature is a travel map that shows people in your network where you have been, and notes places that you can provide information on. I’ve been to Las Vegas several times so a friend can discover that information, and ask me for lodging tips, while I can find out the best places to visit near Mumbai from someone in my network. Providing information like this brings up two questions central to the burgeoning “social networking” scene: What value do you provide that would entice customers to provide this data, and how do you leverage it once you have acquired it?

Travel Map

The map, provided by TripAdvisor.com and pictured above provides for an immediate “cool factor,” delivering the digital equivalent of the physical map riddled with pushpins, without leaving drywall that looks like Swiss cheese when one wants to move the map. There are literally thousands of other companies clamoring for similarly detailed information, yet they don’t think about the value side of the equation. Demanding that I fill out a six page form to request a marketing brochure, or gain access to detailed product information is an intrusive hassle, but a compelling offering like the travel map makes disclosure of personal information far more palatable.

What will be interesting is noting how TripAdvisor uses the data they now have logged in some dark corner of their servers. A traditional “shotgun” marketing approach would likely be ineffective, while tailoring campaigns to every customer’s unique travel history will take far more planning. With the proverbial keys to the kingdom bestowed upon more and more companies it will be interesting to watch as internet marketing handles this abundance of detailed data. I see the future of social network-driven marketing being more about mass customization than target identification. The marketers that can customize offerings that are compelling and appealing based on what they know about their customers will rule the day, and traditional “generic” offerings will look black and white in a world of color.

Selling Virtualization

It’s hard to imagine a technology that is hotter than virtualization. From the IT press to the server room, techies are gushing about the wonders of this technology as they bandy about esoteric terms from cloud computing to iSCSI. Where virtualization falls flat is when it comes time to actually “sell” the technology to colleagues in the C-suite.

Unlike technical innovations with a direct impact on end users, a virtual infrastructure looks and feels the same to an end user or non-technical person. The web, for example was something you could touch and feel, but applications residing in a virtual server (hopefully) react in exactly the same manner as a non-virtualized server, and the server room still has lots of silver-grey boxes with blinking green lights complimenting the dull roar of cooling fans. Even a seasoned technical person likely would not be able to tell the difference between a virtual and traditional environment by a quick glance, much less the CEO or CFO who writes a check to build that infrastructure, so conveying the benefits of virtualization becomes difficult when done through a traditional “show and tell” pitch.

Aside from things like reducing infrastructure costs, dispense with theoretical-sounding talk of cloud computing and stick with a metric anyone can understand: time. A virtualized environment takes hardware out of the equation, and therefore dramatically reduces the time associated with hardware acquisition, setup and maintenance of business applications. A business application can be provisioned, relocated or have its resource allocation changed in minutes, where in the past days of productivity might be lost. While these time savings may seem trivial, think of a massive enterprise software implementation where a couple of days of lost time is literally worth tens or hundreds of thousands of dollars. Virtualization allows for new testing environments to be created, deployed and recreated in moments, rather than days that would have had users and consultants twiddling their thumbs while IT did its work. Old applications can be moved to new hardware, and virtual servers quickly put back into play in case of disaster.

Even minutes of downtime saved during business hours can translate into massive savings that justify the expenditure on a virtual environment. Stop speaking about clouds and ESX, and couch virtualization as an enterprise-wide time saver, and the CEO and CFO won’t be able to get virtualization implemented quickly enough.

Chief Who??!?

I’m going to let you in on a little-know real estate investment tip. Forget California, New York or the sunny shores of the Caribbean, the real money to be made is in C-suite real estate. For years C-suites were stable, with roomy offices and square footage to spare. There were the big three: the CEO, CFO and COO. As IT went from an esoteric handful of engineers to an equally esoteric swarm of techies, along came the CIO to oversee them.

Things were going fine, and then marketing wanted their corner office and added the CMO (Chief Marketing Officer) to the mix. Worried about its recently won turf and not to be outdone, IT added the CTO (Chief Technical Officer). As the C-suite captains fought over closet space, the world suddenly became a more dangerous place, and the CRO (Chief Risk Officer), CSO (Chief Security Officer) and CCO (Chief Compliance Officer) muscled their way into the C-suite. With things growing disorderly, the CPO (Chief Process Officer) arrived on the scene, developing processes to ensure the CFO’s adding machines were not getting in the way of the CRO’s 18-volume risk management plan.

With no end to the insanity in sight, the latest and perhaps strangest addition to the C-suite is the CBO (Chief Blogging Officer). Just when I thought blogging had finally made its way through the hype cycle, the CBO arrives on the scene. Make no mistake, there are loads of people blogging and it is an effective communication medium that companies can use to speak with their employees and customers. Despite this, elevating blogging to the C-suite is similar to having a Chief Telephone Officer, or Chief Paper Officer when your problem is ineffective corporate communication.

The key to blogging, like any other media, is the message rather than the media itself. Corporate blogs that deliver a legal-sanitized message once every six weeks are as ineffective as press releases whose meaning is shrouded in corporate-speak and legalese. The solution to better communication internally and externally is making effective messaging a company priority, embedded at all levels of the corporation, rather than yet another CdjO (Chief du jour Officer)!

IT’s not Easy Being Green

Kermit the frog could have landed a six figure job with Gartner Group when he predicted that “It’s not easy being green” way back in the 70′s, when the earth was supposedly cooling and a “data center” was the kitchen drawer where you kept your phone book and unopened mail. As the general green movement has gone mainstream, green-anything is in vogue. Ever-expanding data centers seem a prime target for “greening,” as powerful processors with massive cooling requirements suck up copious amounts of electricity. The IT industry, always quick to provide a technological solution or every problem is pointing to virtualization as the future of data centers, and recently has been emphasizing a virtual architecture’s green “street cred.” After all, consolidating machines will take less data center space and therefore less power and cooling.

While this is all well and good, I would caution companies looking to virtualization, water cooling or any of the more esoteric technologies as tools for greening up IT. The first danger is what I call the Prius Effect. Many supposedly environmentally minded individuals traded in their cars for an “environmentally friendly” Prius, ignoring the fact that its novel hybrid technology is made of (and from) an array of metals, toxic chemicals and other petroleum-based products with a presumably high environmental impact. Similarly, prematurely dumping existing IT infrastructure to acquire greener technology may end up being less green in the short and long runs, as the metals and manufacturing of PC-type products is certainly not known for being environmentally friendly.

The second caution before embarking on something as complex as a complete infrastructure overhaul in order to green up is that there are plenty of effective yet less glamorous ways to decrease the environmental impact of IT. There are technical solutions to shut down the thousands of workstations that are often left powered up when employees go home, or a simple note to employees suggesting they shutdown requires almost no cost, and can have a measurable impact on IT-related power consumption. Nearly every device sold in the last 10 years has power saving modes that are overlooked, and if a company is serious about going green, developing and implementing just such a power saving plan might be a fine (and inexpensive) task for a summer intern.

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