En Avant

Why isn’t roaming available at home as well as abroad?

Jim — Fri, 05 Mar 2010 00:12:43 +0000

Like any Telecom XT Mobile customer, I’m unhappy with the recent spate of outages, but I’m sympathetic to the harassed engineers at Telecom and Alcatel-Lucent striving to find and cure the problems. Anyone who’s ever built a large new system dreads a spate of apparently unrelated problems which act like pouring acid into an open wound. The shrilling and wailing of customers, competitors and often-ill-informed commentators does nothing to help. However, I’m struck by one curious feature of the New Zealand environment which should have alleviated the problem - roaming. One of the advantages of GSM-based systems is that roaming is very easy for customers and operators - it’s a built-in aspect of the technology and the business model. If I’m overseas, my phone selects a network from all those with coverage for my location (in my preset preference order), which I can easily override if I so chose. But back home, even though I can see other networks on my phone, my SIM card bars me from choosing them. That’s anti-competitive, as well as being a damned nuisance.I’m normally anti-regulation but telecommunication seems to need it. Operators naturally want to maximise revenue spent with them and not their competitors, but that should be achieved through pricing, service, quality and loyalty. Local roaming won’t diminish payment commitments under pricing plans and phone purchase agreements. If I was the regulator, I’d definitely be taking a hard look at mobile network operators barring their customers from using other networks (and while s/he’s at it, local and international roaming charges relative to own charges).

En Avant - the end is nigh

Jim — Wed, 03 Mar 2010 17:21:00 +0000

It’s been almost 3 years since I started writing this weblog and, like many bloggers before me, I’ve decided to stop. Not that I haven’t still got things to say, stories to tell, and opinions to expound, no; but I’m finding regular blogging has become a chore - which I don’t need to do. Also, if I don’t post regularly, readership will fall, and there’s no point talking to an empty room. On 28 March 2010, 3 years to the day after it all began, I’ll post my last entry here, revisiting my most-widely-read posts - the popularity of some has surprised me - and of course thanking you, my readers, for your interest and support.

I expect to still appear online occasionally, if more overt business purposes call for it (or as a guest blogger if someone invites me), and no doubt making the odd comment on other people’s blogs, which is what got me into this in the first place.

One of my objectives from blogging was to increase my network, and I have met a fantastic group of people through being online. Who would have thought that, blogging from little EnZed, I’d be in New York meeting the CEO of a leading US PaaS contender (that’s you, Sinclair) or having lunch in Grenoble with a Caribbean-born financial market commentator (hi, Rawdon) and his lovely French wife. Now my biggest worry is - will I still be eligible to be a member of the Vista Group of Wellington business bloggers? But there are still 24 days to go, so I can legitimately attend the March lunch and schmooze my continuing participation.

So now the end is near (cue Frank Sinatra), but not quite yet.

Developer job at Click Suite

Jim — Thu, 25 Feb 2010 00:47:10 +0000

Click Suite is looking for a senior .Net developer to take a leading role in an online marketplace project. Very exciting. Pass it on if you know someone very good.

Governance in early-stage businesses

Jim — Tue, 23 Feb 2010 02:00:01 +0000

Put 90 minutes aside on 24 March for breakfast with veteran US investor Bill Payne while he talks about governance in early-stage businesses.. This is an Institute of Directors event at the Wellington Club, and neatly complements the IoD’s “Fresh thinking, First boards” programme aimed at lifting the performance of small and medium businesses through smarter governance.

Here’s some background on Bill:

Bill Payne is in New Zealand as the BNZ University of Auckland Business School Entrepreneur-In-Residence. to impart some of his experience to NZ entrepreneurs, investors and universities. Bill is a prominent angel investor - so well known he is often referred to as the closest thing America has to an Entrepreneur Laureate. His angel investing history stretches back almost 30 years after selling his own engineering business to DuPont in 1982 and includes being involved in setting up four of the most prominent angel organisations in the USA.

He has written a book, The Definitive Guide to Raising Money from Angels, as well as having written or been interviewed for articles in The New York Times, USA Today, Business Week and many other investor/education articles and websites.

From 1995 he served as Entrepreneur-in-Residence at the Kauffman Foundation for twelve years. The Kauffman Foundation is a not-for-profit foundation in Kansas City often referred to as the world’s largest foundation devoted to entrepreneurship. Its vision is to “foster a society of economically independent individuals who are engaged citizens, contributing to the improvement of their communities” and it does this through education (including mentoring), entrepreneurship, advancing innovation and research.

While Bill is in New Zealand he will be working with angel investor groups, running seminars, meeting with government organisations (NZTE, FRST etc) and serving as a mentor to some ICE Accelerator companies alongside the ICE Angels. He’s also got a blog up and running on the Icehouse incubator website.

It is very rare that we get a visitor of Bill’s experience and respect in New Zealand and for such a long time. Over 50 organisations including 6 incubators, 5 universities and potentially thousands of people will be able to gain directly from Bill’s visit.

You can book a place for breakfast with Bill online at the IoD.

Disclosure: I am a member of the IoD Wellington branch committee.

Hi-Tech Awards time

Jim — Sun, 21 Feb 2010 20:32:37 +0000

You’ve got just two weeks left to enter the 2010 New Zealand Hi-Tech Awards. Even if you’re not an entrant, reward and encourage your team by booking a table at the Awards Dinner - it’s a great party (in Auckland this year on 7 May).

Once again, I’m a judge; it’s always inspiring to read the entries and interview the finalists. This year’s categories are:

PricewaterhouseCoopers Hi-Tech Company of the Year
NZX Emerging Hi-Tech Company of the Year
HiFx Innovative Service Product of the Year
Duncan Cotterill Innovative Software Product of the Year
Dell Innovative Hardware Product of the Year
International Business Wales Hi-Tech Exporter of the Year
Recruit IT Hi-Tech Employer of Choice Award
Swaytech Hi-Tech Journalist of the Year
Maxnet Young Achiever of the Year
Hi-Tech Inspiring Individual of the Year
NZMEA Kiwi Hi-Tech World Beaters Award
Tait Radio Communications Flying Kiwi Awards.

New good business won’t fix old bad business

Jim — Sun, 21 Feb 2010 04:52:50 +0000

Your core business isn’t doing very well, but you’ve uncovered a great opportunity for a new complementary product with low overheads, great margins and - best of all - recurring revenues. Wonderful! You’ve saved the company. Actually, no, you haven’t; not if your main business is still broken. All you’ve done is find some marginal new income which, more often than not, you’re hoping will disguise your poor performance elsewhere, hoping that a miracle will occur, hoping that the market for your old business will rebound, and hoping that your competitors won’t still eat your lunch.

Time and time again, I see firms - IT services, energy supply, retailing, telecommunications, consulting, manufacturing, etc, etc - chasing shiny new marginal revenue while avoiding the hard decisions in the core. Don’t kid yourself. New revenue might buy you time but, one way or another, you’ve still got to fix the broken old business; fix it or get out of it.

Bill Nighy spoof interview on Tobin tax

Jim — Wed, 17 Feb 2010 21:50:26 +0000

Completely one-sided but good-fun spoof interview with Bill Nighy playing a banker trying to argue against a a Tobin tax (a charge on financial transactions, initially suggested for currency transactions but much wider application is being advocated in the wake of the most recent financial system crisis).

Driving distracts mobile phone users

Jim — Wed, 17 Feb 2010 01:27:13 +0000

In a new twist, Wired magazine reports that driving distracts cellphone users

Routine driving impedes a person’s ability to relay information from a cellphone call accurately to a conversation partner and to remember key elements of that information, say psychologist Gary Dell of the University of Illinois at Urbana-Champaign and his colleagues. Although many drivers regard talking while cruising a straightaway as no harder than walking while chewing gum, “that intuition is incorrect,” Dell says.

The road safety legislators have it all the wrong way round! Same result though; just a 180 degree different spin.

First boards, fresh thinking

Jim — Mon, 15 Feb 2010 17:26:44 +0000

A new initiative from the Institute of Directors in NZ aims to lift governance skills in small and medium businesses. Most are owner-managed, and many suffer from the owner spending too much time working “in the business” rather than “on the business”.

Perhaps the biggest fear for owner-managers is loss of control, but a good non-executive director isn’t there to usurp the owner’s authority, instead helping shape thinking and encouraging decisive action:

They are committed only to the company, but can be objective about it.

Combine this level of commitment with skill in critical areas - say, international trade, marketing or finance - and you can tap into a powerful source to guide the company and help it to grow and develop. A well-chosen board is also one of the cheapest sources of advice available.

A good board will challenge the perspectives and attitudes of the owners and managers. If the owners, perhaps unconsciously, have been used to getting their own way, they may find this a bit of a strain…to say the least. The smarter, progressive ones will get over it and recognise the benefits of being challenged, but also properly supported, by independent-minded people.

The role of owner, owner-manager or Managing Director can be pretty lonely. A board gives them the opportunity to test their ideas and get a sense of perspective from people not involved in the day-to-day

Another common fear is expense. However, just like hiring good staff, a good director will easily help you make or save many times the cost of their fees.

If you look at successful medium or large businesses, almost all have at least one independent non-executive director. Very few of those companies would consider not having that oversight and advice. Visit firstboards.iod.org.nz for more information.

Disclosure: I’m a member of the IoD Wellington branch committee.

Toyota - will it again snatch victory from the jaws of defeat?

Jim — Sun, 14 Feb 2010 19:27:29 +0000

The global Toyota car recall has been extensively covered in the mainstream media. Product recalls are not a new phenomenon in the car industry; even the highest quality marques have them. So why has so much media commentary, particularly in the US, been full of delighted glee at Toyota’s misfortune? Simple - they’ve had 30 years of hearing and telling each other that US car makers (and by implication the US itself) are rubbish, having been resoundingly trounced by Toyota in market share, production methods, quality and general admiration. As Dave Segal wrote in the New York Times last week, “Life … is just high school writ large.” Finally the smart Japanese kid who has beaten you year after year has failed a test. Schadenfreude.

However, if past experience is anything to go by, Toyota can turn disaster into success. In the 1980s, Toyota suffered a massive and widespread quality failure in New Zealand. In a country where cars don’t rust much (for reasons I don’t fully understand), it seemed that the entire Toyota fleet was rotting away, and people referred to their most popular models - Corolla and Corona - as Toyota Corrodas. Branding hell. After a slow start, cash-rich Toyota did something very few other companies could have. It offered a free panel repair/replacement to every Toyota owner with a car less than 5 years old (and didn’t quibble if it was several years older). At the same time, Toyota developed and introduced a virtually rust-proof multi-layer galvanizing process to its body manufacturing, and announced a comprehensive long-term warranty on not just the body, but the entire vehicle. A carefully-conceived, long-term advertising campaign shifted the Toyota brand positioning away from technical promotion to emotional connection. The end-result - Toyota became more local than the locals and one of the most trusted brands in the country.

US automakers should watch out. Toyota may be a bit slow to respond at first, but it has huge resources, and when it sorts itself out, then beware. Toyota will be back, and better than ever.