Colin Charles Agenda

Advice from David Ogilvy about group buying

Colin Charles — Sun, 20 May 2012 08:44:05 +0000

I just started reading Confessions of an Advertising Man by David Ogilvy of Ogilvy advertising fame. I’m about half way thru it and I think that if you’re in the advertising, media, or the digital/social space, you should definitely read this brilliant book.

He lists four problems that advertising faces, and I highlight excerpts of problem one (highlighting is my own):

The first problem is that manufacturers of package-goods products, which have always been the mainstay of advertising, are now spending twice as much on price-off deals as on advertising. They are buying volume by price discounting, instead of using advertising to build strong brands. Any damn fool can put on a price reduction, but it takes brains and perseverance to create a brand.

Listen to a speech I made in Chicago in 1955:

“The time has come to sound an alarm, to warn manufacturers what is going to happen to their brands if they spend so much on deals that there is no money left for advertising to build their brand. Deals don’t build the kind of indestructible image which is the only thing that can make your brand part of the fabric of life.”

Andrew Ehrenberg of the London Business School has one of the best brains in marketing today. He reports that a cut-price offer can induce people to try a brand, but they return to their habitual brands as if nothing had happened.

Why are so many brand managers addicted to price-cutting deals? Because the people who employ them are only interested in next quarter’s profit. Why? Because they are more concerned with their stock options that the future of their company.

Price-off deals are a drug. Ask a drug-addicted brand manager what happened to his share of the market after the delirium of the deal subsided. He will change the subject. Ask him if the deal increased his profit. Again he will change the subject.

This was David Ogilvy talking about modern group buying sites in 1963.

Yesterday I asked on Twitter: Do you run a restaurant? Have you succeeded in running a group buying deal? Have you seen return customers? Comments like its a scam, anyone that wants a cut price deal is unlikely to return for full price, and even feedback from buyers whom don’t return due to disappointing experiences or how the food just isn’t worth the full price. I had some offline conversations about this and the ones that did return were basically already loyal customers saving money through a deal.

My own thoughts about group buying have been posted before: a Groupon before you close looking at the deal dynamics behind a deal, and some initial thoughts when they first started becoming mainstream.

Information diets and media biases

Colin Charles — Tue, 08 May 2012 23:19:18 +0000

Via Murdoch’s Pride is America’s Poison:

In the digital era of do-it-yourself news consumption, it is easier than ever to assemble an information diet that simply confirms your prejudices. Traditional news organizations, for all their shortcomings, see it as their mission to provide — and test — the information you need to form intelligent opinions. We aim to challenge lazy assumptions. Fox panders to them.

Brilliant article on ethics and the role media plays. In today’s social world with social feeds, you tend to get news that is influenced by what your friends read (Facebook has several such apps). On Twitter they don’t even necessarily need to be your friends, just people you choose to follow.

In the Malaysian context, this really means you need a balanced news diet. Mainstream media is pro-ruling party, while alternative media tends to be pro-opposition or sometimes have their own agendas. There’s no middle ground in the sea of tabloids.

No longer affiliated with MNCC and TeAM

Colin Charles — Sun, 06 May 2012 21:27:42 +0000

Its worth noting that I’m no longer on the councils for the Malaysian National Computer Confederation (MNCC) and the Technopreneurs Association of Malaysia (TeAM). For MNCC, it was a retirement at the end of a term, and for TeAM it was a resignation during the term. Yes, both allow you to stick around for 2 years in general. I wish the organizations much luck in their future endeavors.

Twitter, Facebook MySQL trees online – pushing MySQL forward

Colin Charles — Tue, 10 Apr 2012 11:51:19 +0000

Just yesterday, I’m sure many saw Twitter opensourcing their MySQL implementation. It is based on MySQL 5.5 and the code is on Github.

For reference, the database team at Facebook has always been actively blogging, and keeping up their code available on Launchpad. Its worth noting that the implementation there is based on MySQL 5.0.84 and 5.1.

At Twitter, most of everything persistent is stored in MySQL – interest graphs, timelines, user data and those precious tweets themselves! At Facebook, its pretty similar – all user interactions like likes, shares, status updates, requests, etc. are all stored in MySQL (ref).

The media has picked up on it too. A fairly misinformed piece on GigaOm (MySQL has problems focused on Stonebrakers fate worst than death? Pfft. Facebook wants to move its code to github? Read the reasoning — its spam handling on LP.), and a shorter piece on CNET.

Both Twitter and Facebook code trees mention that its what they use in their environments, but it’s not supported in any way, shape or form. Facebook recommends Percona Server or MariaDB. Facebook also has tools like online schema change in the repository, amongst others like prefetching tools written in Python.

I haven’t had the chance to play with the Twitter release yet, but it looks like this can only push Percona Server and MariaDB forward. Based on 5.5, some of these BSD-licensed features can make it in, and some have already made it in I’m sure. And what pushes these servers, will push MySQL forward (see lots of new features in MySQL 5.6).

On a personal note, it is amazing to see some MySQL-alumni push this forward. At Twitter, there’s Jeremy Cole and Davi Arnaut. At Facebook, the team includes Domas Mituzas, Harrison Fisk, Yoshinori Matsunobu, Lachlan Mulcahy. Nothing would be complete without mentioning Mark Callaghan (though not-MySQL alumni, active MySQL community member) who led a MySQL team at Google, and now at Facebook.

Square helping the everyday entrepreneur

Colin Charles — Mon, 09 Apr 2012 20:30:27 +0000

I arrived in San Francisco yesterday (Easter Sunday) and my usual shuttle service to Santa Clara had some issues fulfilling my journey (some 1h45m wait). So I took a taxi. As soon as I arrived at my destination, and he knew I was a techie, he said: “Look, a San Francisco startup has this cool device that helps independent entrepreneurs like me accept payments by all kinds of credit cards.”

He didn’t know what the device was called, but I immediately recognised it as the Square app (I’ve recently written about this space). On an Android phone. Found it interesting during tipping: 15%, 20%, or 25%. No option to enter your own choice. Enter your email address for a receipt (there’s also a phone number option, which I am sure I can’t use). Then the taxi driver writes one physically for you as well. I presume the driver gets money in his bank account in a rather short period of time.

How did it use to work? A manual scan on carbon paper with a device the credit card company provided. Probably submit the receipt and get paid within a much longer period of time. Or it used to be plain old cash — most drivers would never accept a card, preferring only cash.

Square uses: CentOS, Puppet, Ruby, Graphite, MySQL, PostgreSQL, Redis. They also build the service on the JVM orchestrating Ruby on Rails, Sinatra, JRuby, MRI and Java. Incidentally, love the way they hire people — tell them what is required of them, then ask them to complete a task/programming example.

Square-like payment devices in Asia

Colin Charles — Sun, 01 Apr 2012 10:25:16 +0000

Ever since I heard about Square, I was impressed. I was wowed when they used Square to accept payments at WordCampSF 2010 (May 2010). It all just felt right. Swipe the card, email the receipt. The experience felt like making a purchase at an Apple Store with their handheld point-of-sale systems. Square sadly never made it out of the USA and there were rumours that VeriFone and others were going to do similar things. Naysayers claimed security problems (square is magnetic stripe based, rather than chip-based last I used it). Alas, its 2012 and I’ve still not seen anything usable.

So it pleases me to see Swiff in Singapore and the fact that PayPal Here (product page) will also launch in Singapore. Malaysia seems to have SoftSpace. However its April 2012 now and the first reliably available service is Swiff.

Square is upfront with their costs – it basically takes 2.75% of the transaction. That’s considerably higher than the 1.8% charged by Malaysian banks. However it takes away the burden of renting a terminal which can set you back RM130-150/month, with the only option of a refund on that exceeding RM10,000 of transactions per month. And the chances that the terminal accepts “everything” tends to be slim (its usually just Visa/MasterCard). Swiff lacks fixed rates at the moment, and SoftSpace claims to be inundated with queries (but will support more security and have a chip reader).

PayPal might crack this though. They have experience with dealing with banks and banking regulations (Malaysia famously has BAFIA as law). Many tech-savvy people already tend to have a PayPal account (and if they don’t, maybe they’ll start one). They’ve also gone out with a flat 2.7% transaction fee.

I’m looking forward to more competition in this space. It can only lead to lower rates. And with bazaars, conferences, etc. this sort of thing can be very useful.

Food in Dublin, Ireland

Colin Charles — Sun, 01 Apr 2012 09:53:20 +0000

It is not hard to find a pub in Dublin, so go to any and they would probably serve you an excellent pint of Guinness. It may not be the cheapest though — 4.50-5.20 Euros per pint. Sin tax must be high.

I had Hanley’s Cornish Pasties. Its like a stew, put into pastry ;) A must try. Many pubs also serve a steak & Guinness pie… Well worth eating a traditional cuisine.

We did end up eating some very nice sushi as well as Lebanese food. All around the Grafton St area and Dublin 2/Dublin 4.

Paybox Services and seeing MariaDB in use

Colin Charles — Fri, 30 Mar 2012 13:54:44 +0000

When I was at MySQL, I took for granted that pretty much every website I used had software at the back of it that was basically MySQL. It was a nice feeling. MariaDB is a lot younger, so when I was in Paris and had to make a payment for the taxi I was sitting in, I smiled a little when I saw that Paybox Services was processing my transaction. Some might recall that Paybox Services deployed MariaDB, since the 5.2 release. It was a wonderful feeling that somewhere in that transaction, MariaDB was behind it!

Paybox wanted some features inside of MySQL 5.5 and have been holding out for MariaDB 5.5. Its kind of nice to see that today, MariaDB 5.5.22 has been released as a release candidate. It is only a matter of time before Paybox can benefit from things they’ve wanted like semi-sync replication.

On the term “go global”

Colin Charles — Mon, 26 Mar 2012 07:45:54 +0000

In my recent rant about my thoughts on the startup ecosystem in Malaysia, I mentioned:

Its amusing when I see programs titled “go global”. When you start your business, especially if its a web shop, you’re already world-wide. Why are you building locally?

My intention for that was very clear. If you’re a tech startup, think global from day one. Don’t “Malaysianize” your product because we’re not Vietnam or China. Or we just don’t have population masses like India or Indonesia. Or language differences like Thailand.

It seems like a friend of mine whom I’ve known for a little over three years, Doc Siva took a little offence to the statement. Doc Siva is an amazing guy, fun to chat with and is a prolific writer (lots of articles in net@value in The Edge). He works tirelessly to help entrepreneurs, and is even running an accelerator now.

The problem stems from the fact that the term “go global” is just too generic a term. Everyone uses it. From the genuine to the dodgy.

There’s the Cradle Coach & Grow Programme which helps you to go as far as IPOing. Doc Siva also has the Go2Market/Go4Growth/GoGlobal/GoIPO programs via Proficeo, his company. TeAM (disclosure: I’m currently a council member) also runs marketing missions that help your business “go global” in the region.

I believe all the above help to some extent. Kudos Cradle, Proficeo, TeAM. I’m sure I’ve missed a bunch of others that are doing a wonderful job. Programs like this are awesome for an entrepreneur since there’s no cost to the company and you get to other markets faster.They’re addressing the entrepreneur who finds it difficult to get his product in the hands of others, so that deserves a big kudos. They’re helping the entrepreneur grow.

The original post was never meant to be flamebait. It was never meant to point a finger at any one party. If you/your organisation took offence to something I said, that was not my intention. Much apologies. I parted with sage advice for the entrepreneur:

Don’t blame the government. Don’t blame the VCs/angels/investors. There’s an old English proverb which states, “If there is a will, there is a way”.

It was just meant to list problems that seem to be endemic in Malaysia. If time permitted, I could come up with a well researched tome with ideas on how to fix things. But its not like I do this for a living, right? ;-)~

A quick thanks since this post was read by Doc Siva before I posted it up online.

More MariaDB after Percona Live Santa Clara

Colin Charles — Sun, 25 Mar 2012 22:21:22 +0000

Right after Percona Live Santa Clara (which MariaDB is quite present for), its worth noting there are a few more events happening on Friday, April 13, 2012 at the Hyatt Regency Santa Clara. MariaDB will be present at 2/3 of those events.

SkySQL & MariaDB Solutions Day – go ahead and register
Sphinx Search Day – if you dig full-text search, you should be present so go ahead and register

The one event MariaDB won’t be present at is the Drizzle Day. That doesn’t mean you can’t attend talks across all these events though — the schedules are synced so you can move freely across events. Friday in itself is like a mini-conf, because it seems like there will be four simultaneous tracks happening.