The R-Squared Method by Lou RG

Why Education Is Broken

noreply@blogger.com (Louis Rosas-Guyon III) — Tue, 05 Feb 2013 11:00:00 +0000

The American education system is a disaster, which is not news to anyone. Our students consistently rank at the bottom in mathematics, science and literacy, in spite of the fact that we spend more per student than most other countries. In fact, we now spend more money per student than ever before -- with diminishing results.

Our school system is in dire need of a 21st Century make over. The current system is a mishmash of history and it is starting to show it's cracks.

Agrarian Roots
For starters, the academic calendar is a living anachronism. The original academic calendar was set up around the agrarian calendar. Kids got out for Spring Break, not to get drunk in Daytona, but to help with the spring wheat planting. Likewise, they got off for the summer to help with the August harvest, and the subsequent winter wheat planting. That's why school starts in September.

Yet all attempts to change the school year to eliminate summer vacation sends up storms of protest from children, teachers and the enormous summer camp industry. I'm in favor of a "3 months on, 1 month off" school year. I would also reduce the total number of classes per school day, extend the class period and condense the class so everything for the class is taught in one 3 month period. If we are really smart, we stagger this schedule between schools to avoid freeing all the teenagers at the same time too.

The Industrial Impact
Next, the Industrial Revolution added it's input. First off, the factories funded most of the early investments in public education because they needed minimally skilled laborers. The entire process of primary and secondary education is based around a factory model, even down to the shift-change bell. The entire system of grades (K thru 12) is nothing more than an assembly line moving students closer to a Certification of Minimal Skills (AKA a high school diploma).

Even the methods used to teach are largely sanitized, systematized, codified and controlled. There is little room for divergence from teaching plans sent down by the bureaucrats on high. Great teachers are hamstrung by the legal department's dictates. School boards are largely plagued by infighting amongst petty tyrants intent on protecting their meager fiefdoms from the evil specter of budget cuts. In short, the system is a disaster.

Fortunately, this won't last much longer. The Digital Revolution is here and we must change, and we need to start with education. I am not talking about small reforms, either. I'm not talking about more standardized tests or any of the other ridiculous measures being discussed. What is needed is radical redesign of the entire system from top to bottom. We need to embrace the realities of the new age we live in and prepare our students for tomorrow.

We need to orient away from the liberal arts model of education and pivot towards an approach that focuses on creating autodidacts. Schools need to be teaching critical thinking, analytical skills, computer programming, mathematics, problem solving, innovation and, more importantly, learning how to teach ourselves. It needs to leverage online learning resources from a diverse pool of ideas and opinions.

The truth is that no one can accurately predict the changes that are coming over the next 50 years. But until we can just upload knowledge into our brain, schools will continue to be important. If we are truly going to take up the challenge of the 21st Century, we must educate students who will at least have a fighting chance in that world.

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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New Internet Job: Virtual Assassin

noreply@blogger.com (Louis Rosas-Guyon III) — Wed, 09 Jan 2013 10:30:00 +0000

Worried that his son was spending too much time playing an online video game, a father in China hired virtual assassins to hunt down and kill his son's online characters. The hit men succeeded, but the young man kept on playing.

Whatever you think of his parenting style, you cannot deny that he created a job. A contract job, but still an exchange of value. As we delve further into digital technology and extend a data layer over the entire world, jobs that are currently unimaginable will become critical and lucrative. I doubt there will ever be big money in video game assassinations, but there may come a time when digital reputation protection is critical.

Chronic unemployment will be with us for the next few decades until these new jobs emerge. It takes time because no one has discovered those jobs yet.

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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The Great Convergence

noreply@blogger.com (Louis Rosas-Guyon III) — Wed, 19 Dec 2012 11:00:00 +0000

Some time ago I wrote about the looming scientific convergence. These rare events happen when different sciences all arrive at a unified understanding of a pivotal truth about life, the universe and everything. Each of these different sciences, using different tools and fields of knowledge, all run smack into a unified understanding of reality that causes everything to change dramatically.

The Industrial Revolution was born with the steam engine. But the steam engine was born from the convergence of Newton's laws, advances in metallurgy and applied pneumatics. Then followed all the incredible leaps in science, technology, productivity, work, society, business, governments and economics which we call the Industrial Revolution.

Convergences in science are exciting to witness. You should know because we are seeing one happen now. I am convinced we are living at the very beginning of a rapid series of multiple convergences.

I'm not sure what that next revolution should be called. Instinctively I want to call it the Digital Revolution, because so much of it will be caused by the application of digital technology. However, I cannot ignore the enormous part to be played by biotechnology, nanotech, robotics, new materials and good old physics.

Right now, we are living in the Information Age, born from the transistor, which came from the convergence of materials sciences and information theory. The Information Age is the precursor to the Next Revolution. And just like the Industrial Revolution changed everything about life, work, war, business and economics, so too will this Next Revolution change everything.

At this point, I understand your skepticism. "We just finished having everything change with computers and the Internet, Lou. How much more change can there be?"

Trust me. I have wrestled with the same question. But the facts remain, sciences are converging every day:

Digital computer printers are making human organs.
Green houses are cleaning industrial waste water.
Miniaturization is advancing.
Battery technology is improving.
Materials sciences are delivering newer, more amazing materials at a faster clip.
Gesture control of computers is improving.
Stunning advances in mind control of computers.
Nano-tech medicines are being tested.

Any time when many different fields of scientific study come together, something amazing happens. Everywhere I look, I see signs of that happening right now. We are at the beginning of an unbelievable transformation of society, culture, governments, business, economics, war, technology, productivity, work, efficiency and science. Life will change completely during the Next Revolution.

Are you ready for it? Want to learn how to ensure your business thrives instead of dies? (305) 423-9574

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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Useful Apps & Tools

noreply@blogger.com (Louis Rosas-Guyon III) — Sat, 15 Dec 2012 04:59:00 +0000

Here's a collection of new apps & web tools worth a look. Since I don't make a dime from any of them, I am in no way responsible for your results. Enjoy!

Convert across multiple file formats (PDF, DOC, XLS, PPT, HTML, DWG, IMG & XPS)
www.online-convert.com
http://www.cometdocs.com/ccn/

Create free websites
http://imcreator.com/

Create 3D building plans
www.roomsketcher.com/en/

Create graphs, flowcharts, diagrams & technical documents
www.gliffy.com

Check availability of websites
downforeveryoneorjustme.com

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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CSR: Smart Business or Communist Plot?

noreply@blogger.com (Louis Rosas-Guyon III) — Mon, 03 Dec 2012 11:00:00 +0000

It really does sound like tree hugger nonsense -- corporate social responsibility. This silly, childish notion that corporations, the greatest engines of economic monstrosity should suddenly be nice and actually spend money on "good" things. What about shareholder value maximization? Has the world gone mad??

Alright, so I exaggerate. The point is the biggest companies on earth did not get there by being kind stewards of the environment and by giving labor higher wages. It's just not in their corporate DNA so it's not realistic for them to adopt it successfully. Their best bet is to use it strategically, as a cost savings measure.

However, it seems that corporate social responsibility (CSR) is something that can be successfully built into the business from day one. That means it's very difficult for existing businesses but a potentially powerful advantage for future businesses.

If from it's birth, a corporate culture dedicated to the ideals of social responsibility were developed, it could enjoy a significant business advantage. For example, the TOMs shoe company which gifts a pair of shoes to a needy person in the world for every pair they sell. This has garnered the company untold millions of dollars in free publicity which creates the necessary brand awareness needed for people in industrialized nations to overpay for cheap shoes. They buy because they are doing something good for someone more needy while simultaneously making a personal statement for the world to see. This model has been wildly successful and I suspect we will see it re-emerge in many varieties.

The point is that a successful business model can be designed around CSR. If you work it into the DNA of the business, CSR can be a powerful marketing tool. If you correctly tell the story of how you can help the world, you will attract socially conscious customers.

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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Polls Sch-molls - My Frustration With 2012 Politics

noreply@blogger.com (Louis Rosas-Guyon III) — Thu, 18 Oct 2012 17:56:00 +0000

Where to begin? I promise to keep it brief and non-partisan.

American politicians are confused about the difference between job creation and wealth creation. This means they're both wrong about the role of government in the economy. Both President Obama and Governor Romney are guilty.

During the 2nd Debate, both claimed that government doesn't create jobs. Romney and Obama are both wrong. Government absolutely creates jobs. Government does not create wealth.

Jobs and wealth are not the same, not by a long shot.

Last time I checked, federal, state and local government are the largest employer in the USA. Cops, firefighters, soldiers, teachers, DMV workers, court clerks, elected officials and bureaucrats of all stripe are all government jobs.

Another pervasive element of this economic fiction is that money "confiscated by the government" (AKA taxes) falls into some deep, dark pit from which it never escapes. Only, the majority of total state and local government expenditures are payroll! That money is then spent on housing, clothes, food, education, cars, fuel and everything else that makes the economy run. By any definition, that's a job -- and it was created by government.

Wealth creation is an increase in total production caused by the implementation and successful sale of an idea. The iPhone created wealth which created jobs - though mostly in China. The iPhone created wealth by increasing demand for Apple stock which then rose in value. This created new wealth for Apple shareholders.

Adam Smith, author of The Wealth of Nations, defined wealth as "the annual produce of the land and labour of the society." Because iPhones sold well, the annual produce of our society increased and more wealth was created. The stock market simply acts as a convenient way to measure wealth and convert it into cash.

But government plays an important role in wealth creation. It's called infrastructure, or "the things a government can do to facilitate future commerce." Railroads, canals, airports, the interstate highways, human space flight and the Internet are a few examples of government infrastructure investments that led to spectacular wealth creation.

Consider the iPhone as a great example. Without government investment in electrical and Internet infrastructure, the iPhone could not exist. Plus it gets to the store via railroads and highways. History is clear -- every penny we spend improving America makes us all wealthier.

Recently, I read some political junkie argue that most infrastructure is already in place in the First World so there's no need for future investment. This is frightfully shortsighted. It ignores the reality of technological advance. New technologies will necessitate, or greatly benefit from, infrastructure investments.

But I digress...

And I promised to keep it short...

Anyway, that's my current problem with the Presidential race. How can either one improve the economy if they don't understand the difference between jobs and wealth?

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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We Need A New Name for Phones

noreply@blogger.com (Louis Rosas-Guyon III) — Fri, 14 Sep 2012 10:30:00 +0000

Should we still think of them as telephones? The palm-top computer is here and it's called a smartphone. But soon it will start to disappear. All technology that moves into ubiquity eventually becomes invisible.

We are taking the next steps toward augmented reality. Soon, relevant, actionable data will be projected onto your glasses (until they get contact lenses working). Imagine standing and talking to your neighbor with his Facebook profile hovering to the right of his head. His last Twitter post, his wife's name, the kid's names, even the dog. Any and all info you need. In real time:

Everything you look at will offer you information. Advertising will become more relentless than ever, but it will just become the background noise of our lives. Useful, actionable, relevant information will be available on command.

Artificial intelligence will join the fray. Your smartphone will make decisions for you. Simple tasks will get handled -- sending orders to your robot servants, reject phone calls without bothering you, recommend nearby restaurants, weather reports, traffic, paying bills plus everything it already does now. We will have real digital assistants.

Once we arrive at this point, the physical smartphone will get smaller and cheaper. You don't need to touch the thing to control it anymore, so why spend money on touch screens or keyboards? Eventually they'll be fashion accessories, from a piece of expensive jewelry to a lump on your belt. Until they get smaller and smaller and just become part of our clothing -- and digital computers vanish. They become invisible because they are literally everywhere.

So, is it still a telephone? Is that still the right name for it? We use it less for telephony and more for data today! I think it deserves a new name.

What do you think?

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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A Cloud of Things

noreply@blogger.com (Louis Rosas-Guyon III) — Tue, 28 Aug 2012 10:00:00 +0000

The Internet of Things leads to the Cloud of Things.

In a world where everything exists physically and virtually, you have an Internet of Things. When the soda machine can share data on sales, temperature and inventory with it's owners and even the can of soda exists digitally, you add a digital data layer to the entire world.

Even though it sounds like science fiction, it is happening now. For many years, biologists have used radio transmitters to tag and track animals for study. RFID now enables smart warehousing systems that can track inventory as it travels between destinations or along the assembly line. The added digital data layer is enabling a new generation of asset management and tracking.

But it doesn't stop there.

An Internet of Things inevitably leads to the Cloud of Things. The key advantage of the Cloud is that machines don't matter. Because your data and apps live on the Cloud, the device you use to connect to those tools is largely irrelevant.

When everything is connected to the Internet, then everything can leverage the Cloud.

Imagine a time when smartphones and tablets can be bio-metrically locked. Perhaps it's voice print, retina scans, finger prints, pass codes or any combination thereof. It's only a matter of time until the usage of these devices can then be billed based on the user. I may own the smartphone but when you unlock and use it, then you get billed.

However, when you use my smartphone in this scenario, its YOUR smartphone in the same way the cloud makes every computer your computer. You see your contact list, your appointments, your emails, everything that you normally see on your smartphone. All of this information is bio-metrically tagged to you so there is no chance of anyone else seeing it.

Because I'm the ultimate owner of this Cloud smartphone, my needs have priority. I will get all my incoming calls (locked to my bio signature so only I can answer them) and so on.

As processing power continues to drop in price, we will see more and more devices becoming "smart" in the same sense as modern smartphones. Imagine checking your appointments on a bottle of soda. Or checking messages on a public bathroom mirror. As we incorporate more digital technology in our everyday items, we will open up new opportunities for connectivity.

To get a better idea of how this future will impact your business, call (305) 423-9574 or email us today!

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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Avoid the Poverty Trap & Get Rich(er)

noreply@blogger.com (Louis Rosas-Guyon III) — Wed, 18 Jul 2012 20:30:00 +0000

Earlier today I experienced a mini version of the poverty trap, mostly due to my own cheapness.

Two months ago I took my car in for regular service. My mechanic, a brilliant automotive specialist with a penchant for terrible jokes, advised me to change the brake pads but I didn't want to spend the extra $200 because my family was going on vacation and I wanted the extra cash, just in case. So I delayed changing the brake pads.

We went away and had a great trip. When we got back home, I promptly forgot all about my brake pads and went about my normal routine. Then yesterday I started hearing that lovely grinding noise that informs the ignorant car owner that the brakes are in trouble. So I took the car back to The Joker.

What should have cost me $200 (two months ago) cost me $650 today! In addition to brake pads, I needed new rotors because I had ground them into powdery uselessness. Apparently that grinding noise really is something grinding -- who knew?

This is the exact same trap that leads to persistent poverty. Because poor people don't have the money to spend on preventative maintenance, they end up paying more in the long run. This economic logic applies to every aspect of their lives -- not just with car repairs.

For example, poor people buy cheap shoes which wear out/break thereby forcing them to buy another pair of cheap shoes. The cycle propels itself along. Whereas the wealthy can afford to buy top quality shoes (which are astronomically expensive compared to the Walmart varieties) which can become family heirlooms because they last forever.

Simplified version: the rich spend money once and then don't spend it again. Poor people spend money over and over on the same things.

Because I was cheap and I didn't want to spend the extra $200 (for whatever reason), I ended up spending 3 times more. But all was not lost -- my stupid cheapness has become this blog post so you can avoid the same mistake.

Don't nickel and dime yourself into spending more later. Spend a little now on preventative maintenance and save yourself money down the line. It applies to cars, shoes and computers too. Pay now, or pay more later. It's up to you.

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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Free Idea: DIY Construction Coach

noreply@blogger.com (Louis Rosas-Guyon III) — Wed, 27 Jun 2012 10:30:00 +0000

I admit that lately I have become fascinated by the DIY Channel on cable TV. For some reason, watching hapless homeowners trying to remodel their houses provides me with hours of laughter. I realize not everyone has my background in construction but it's hilarious to watch otherwise intelligent people confounding common sense.

However, last night while watching someone almost kill himself and his wife because they didn't understand the concept of bracing heavy beams before trying to raise them up, it occurred to me there's a fantastic business opportunity for under-employed contractors.

Do It Yourself doesn't seem to be slowing down. Millennials are embracing the idea started by the Baby Boomers of saving money on home improvements by eliminating the cost of competent laborers. However, a little guidance (for a reasonable fee) is always wise.

If you are an under-employed contractor or handyman, you may want to consider marketing yourself as a DIY Coach. Simply stated, you will help coach homeowners through their remodeling work. You'll help with construction planning, permitting, building, dealing with inspectors and all the other skills that you have to offer. They will pay for advice, consultations and planning.

The beauty of this idea is that once you have them as a customer, it becomes easier to up-sell them on other services. Homeowner has enough sense to be afraid of electrical work? Up sell him your electrician services. I am willing to bet that more than half the time, the DIY Construction Coach will end up getting the full contract, with a labor discount because the homeowner's will "help."

With all the economic turmoil, especially in the construction industry, it makes sense to take advantage of industry trends and adapt them to circumstances.

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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A Future Economic Bubble

noreply@blogger.com (Louis Rosas-Guyon III) — Mon, 25 Jun 2012 10:30:00 +0000

Today is my birthday so I figured I would share some investment tips with you. I realize that you are supposed to give me presents on my birthday, but what can I say? I'm a giver.

The graying of the population creates an ever growing market for medical technology. Huge markets draw significant investment. That means there will be an enormous increase in health care and home care jobs in the immediate future.

And these are some of the technologies and companies that will revolutionize medicine in the coming years:

This bubble will burst around 2035.
Invest now and get out before the crash.

You can thank me for all the money you make by sending me a commission. I'm not greedy so I'll let you decide how much my advice was worth.

And happy birthday to me!

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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A Dark Secret of the IT World That Hurts Your Business

noreply@blogger.com (Louis Rosas-Guyon III) — Fri, 22 Jun 2012 10:30:00 +0000

A long time ago, at a customer that no longer exists, BHF and I recommended a new firewall to the CIO. We specified a low-end Sonicwall because all they really needed was spam and porn filtering for fewer than 50 users. The CIO thanked us and sent us on our way.

Ten days later, the CIO called us to install an All-In-One Web Appliance that was the new firewall, spam filter, porn filter, FTP server, email server, web server, e-commerce host and network router! I couldn't resist asking the CIO why he didn't get the version that made cappuccino.

I am not a huge fan of multi-function appliances of this ilk. They rarely perform any of their functions well and when one part breaks, the whole thing breaks. Not to mention, they are usually absolute overkill. But, we did as we were asked and we installed the monster. I'll spare you the sordid nightmare tale that this appliance unleashed. It was a constant source of misery, grief and unhappiness for us.

It wasn't until four months later that I accidentally discovered the manufacturer had given the CIO a very hefty "commission" for buying their appliance. Aside from screamingly unethical, it was simply the wrong tool for the job. All they needed was an Internet firewall that could filter porn and spam. They should have spent $700 but instead they spent closer to $7500! Ridiculous.

However, you'd be surprised how often this happens. IT personnel are under constant bombardment with offers of commissions if they convince you to buy. It sucks that a business owner has to ask themselves if the IT recommendation is for the right business product or if it offers the highest kickback.

It was shortly after this episode that BHF and I cancelled all of our relationships with hardware vendors. We agreed that we would never earn a kickback on equipment we recommended since it would only tarnish the validity of our recommendation. Our integrity is too valuable to sell for a few dollars in kickbacks.

For technology advice you can trust. Call (305) 423-9574.

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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The 10-To-1 Relationship Between Sales and Costs

noreply@blogger.com (Louis Rosas-Guyon III) — Wed, 20 Jun 2012 10:30:00 +0000

In today's ailing economy, when every dollar counts, hospitals are looking for ways to improve their bottom line. One option is to add $11.7 million in revenue. The other option is to reduce operating costs by $100,000. According to Deloitte (formerly Deloitte & Touche), these two options have the same impact, but clearly one is more achievable.

As I have long argued on this blog (1, 2, 3, 4), increasing revenues is only one option to maximizing profit. But the far better option is the elimination of costs. Unfortunately, too many CEOs take the easy route to cutting costs by laying off workers. However, once you have trimmed all the payroll fat, there are still plenty of areas to look for cost reductions:

Look at cutting executive perks.
Reign in expense accounts.
Identify and eliminate errors in production.
Travel costs can usually be trimmed drastically.
IT budgets can be slashed by the strategic implementation of cloud computing.
Review existing contracts to find possible savings.
Consider in-sourcing alternatives

More importantly, cost control is all about focusing on the core competencies of your business -- what do you do better than anyone else that makes you money. Focus on that and find ways to support that function while reducing costs that don't directly impact that core competency.

It's exciting to have a major financial firm back up arguments in favor of cost cutting as more effective that new revenues. When there's a 10-to-1 relationship between them, it makes sense to grab the low hanging fruit first.

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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Free Browser-Based Image Editor

noreply@blogger.com (Louis Rosas-Guyon III) — Wed, 20 Jun 2012 02:11:00 +0000

Check it out! http://www.pixlr.com/editor/
This is a light, powerful web-based image editor that can easily handle most of what you need to do.

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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5 Steps to Crowdsourcing Your Start-Up Capital

noreply@blogger.com (Louis Rosas-Guyon III) — Wed, 13 Jun 2012 10:00:00 +0000

The beauty of the internet is that it's now possible to crowdsource start-up capital!

Did you hear about Crypteks USB?

They developed a lockable and encrypted USB thumb drive. They created some pretty art showing what their gizmo would look like and listed it on Kickstarter.com. They got over $190,000 from backers when all they needed was $12,000! Once a project closes, you then keep your backers updated on the development. Simple.

Stop bellyaching that you don't have the money to build your idea. Here are the 5 steps to crowdsourcing your start-up capital.

Invent your concept. This is the hardest step.
Find a factory that can make it for you. Make sure to get their minimum order quantity!
Figure out how much shipping and all the other costs then determine your unit sale price.
Create a Kickstarter project based on all the information you've collected.
Tell everyone you know and ask them to tell everyone they know too.

After that, you wait. If your idea spreads far enough and collects enough money, congrats!

Stop thinking about it and get started already! The world is waiting for your product. And all the money you need is waiting for you. You have no more excuses.

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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Lazy Workers: A Cautionary Tale

noreply@blogger.com (Louis Rosas-Guyon III) — Mon, 11 Jun 2012 10:30:00 +0000

About 10 years ago, I was performing an IT audit for a former customer. Part of our audit routine involves poking our noses into every aspect of your tech systems, including your ecommerce websites. As I was snooping around the web store setup, I happened to find thousands of unprocessed sales orders. If memory serves, there were about $50,000 in sales that were never collected!

But it's even worse than you think. You see, the credit card system was independent from their order processing system. That means all those internet orders were being processed, packaged and shipped out to customers but they never collected the money for those orders! Talk about a double-whammy!

Just between us, I love these discoveries. They are the beautiful moments when I know I won't have any trouble getting paid for my work. Whenever I can find more money for a customer than they have to pay me, it's a great day.

I took a walk over to the Accounts Receivable offices to give them the news. To my horror, nobody cared. They were busy handling the big ticket items so they never bothered to collect a few hundred dollars in sales a day. It was a hassle. Why waste time collecting $200 when they needed to process $200,000 in credit memos?

So I brought this to the attention of the rest of the accounting team, they universally shrugged their shoulders. "Not my problem." "Not my job." And all the other lines you expect from lazy people. Seeing that nobody wanted to pick up the slack, I dropped the entire problem on the CFO's desk and let him handle it.

You know who ended up picking up this slack? One of the customer support operators. Everyday, she would log in and collect the web store credit card transactions. I'm still not sure how she ended up with the job but at least someone was doing it.

Beware of lazy departments. They are usually a sign of bad morale. And bad morale is the sign of bad leadership. Does your business have this kind of department creep? How much money are you leaving on the table?

Find out. (305) 423-9574

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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Don't Confuse One-Time Costs With Recurring Costs

noreply@blogger.com (Louis Rosas-Guyon III) — Wed, 06 Jun 2012 10:00:00 +0000

I am fortunate to consult for a successful law firm. They carried one monthly expense which made me absolutely crazy -- they were paying rent on storage space for old files. Every month they paid roughly $1,000 just to store hundreds of boxes of paper. When I spoke with all the partners in the firm, they just shrugged their shoulders and said "we've always done it that way."

So I did some research. It turned out that a local company was happy to come pickup all the files, scan them, organize them, destroy the paper copies and then provide them digitally for about $10,000.

Based on my math, that's a bargain! Spend $10,000 today to save $12,000 every year from here until the end of time? Sign me up! I'll take that deal every day of the week. Anything you can do to reduce your costs will always boost your profits.

At the heart of the issue is understanding the difference between a one-time cost and a recurring cost. The difference is pretty obvious, the one-time hurts your wallet today while the recurring cost hurts periodically over time. Logically, a one-time cost that eliminates a recurring cost should always be higher than the recurring cost. However, as long as you can re-coop that one-time cost within a reasonable amount of time after you've eliminated the recurring cost, then it pays for itself.

Be smart about your money. Recurring costs are a necessary evil but every time you can eliminate one, then jump on the opportunity. Your profits will grow accordingly.

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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A World of Abundance

noreply@blogger.com (Louis Rosas-Guyon III) — Wed, 18 Apr 2012 11:30:00 +0000

The norm throughout human existence has been scarcity. Food, clothes, money, comfort are all in short supply and we work to get them. Even information was hard to get.

Now, at the opening of the 21st Century, we are taking another step into a world of abundance. At first we saw it in information -- the internet put everything at our fingertips. But we are going to start seeing abundance in other areas soon.

I predict that 3D printing will mature to the point where we will be able to print most of the small, disposable goods we use. Need 100 forks for the party? Start printing them tonight and they're done tomorrow. And whoever figures out how to recycle the 3D printed items so they can be printed into something else will be richer than Midas.

Very soon every home will have 3D printers. Maybe even every room. Kevin Kelly hit it right on the head - the real impact of technology is when it becomes ubiquitous. What happens when everyone can manufacture from their desktop?

Imagine buying an iPhone 55 SCFE (which stands for "Super Cool Future Edition") in the color and dimensions of your choice. You get a small box with 3D printer goop (AKA the 3D printer ink), a set of computer chips, a small pane of glass and a flash drive. You dump everything into the hopper in the back of your printer and press the Go! button. The machine organizes the materials, plugs in the flash drive, grabs the data it needs and starts printing your new phone. One hour later, your iPhone is ready.

One final thought -- if nanotechnology continues to improve, it may only be a matter of time before we have 3D nano-printing. That starts opening up phenomenal possibilities. But that's for another article.

How will 3D printing impact your business? How will it change your work? Believe me, it will. Desktop manufacturing is too powerful to ignore. Find out how the World of Abundance will change your industry. (305) 423-9574

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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Save Money With Auctions

noreply@blogger.com (Louis Rosas-Guyon III) — Wed, 04 Apr 2012 11:00:00 +0000

Every start up has the same problem -- they must conserve their cash as long as possible until they get money flowing into the business. Unfortunately, starting a business is expensive, even with all the great bootstrapping advice you can find online.

But don't despair! Occasionally, the U.S. government does something that is actually beneficial. I realize that's hard to believe, but stick with me on this one.

In this case, I am referring to the General Services Administrations auction site. You can bid on everything you could need to outfit your office and also put in a bid for that airport metal detector you always wanted.

Let's face it, outfitting an office is expensive. Furniture, computers, office supplies, equipment, phones and all the other accouterments needed for a 21st Century business can hit your bank account harder than you might like. By using auction sites like GSA Auctions you can significantly reduce the cost of starting a new business.

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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The Guaranteed "Sincerest Form of Flattery"

noreply@blogger.com (Louis Rosas-Guyon III) — Mon, 26 Mar 2012 10:30:00 +0000

You want to flatter me? Don't imitate me. As anyone who's ever had some obnoxious kid ape their every move can attest, it's annoying as hell. Please people, beat your children when they annoy strangers in the supermarket! But I digress...

If you really want to flatter me, give me something I can use. Not sweaters (I live in Miami!). Not awards (I have enough!). How about something really, really useful, like... Money!

Money really is the sincerest form of flattery. When you give me money it's like an affirmation of my awesome-nosity.

The good news is that this rule really applies to everyone. The best way to flatter a human animal is to offer them money. The more the merrier, though some people have shown that they will spend more than the prize money just to win. I think that's awesome!

Humans have been offering cash prizes for accomplishments since just after we figured out how to bang rocks together. From tribal bounties paid for enemy heads to the X Prize, money has always been used as a way to express gratitude for a job well done.

The real brilliance of these schemes is that they leave the details up to the participant. The people paying the prize only care about the end result. You set the rules for success and let them figure out how to solve your problem.

The Ansari family put $10 million into developing private space flight with the X Prize. Eight years later the dream of commercial space flight was made reality. Since then, there have been several X Prizes aimed at oil spill cleanups, a 100 mile per gallon car and even one for a handheld medical scanner.

Gamification is the strategy of turning normal, everyday, boring tasks into engaging games. Normal games offer points and ranking systems of ever increasing power and capability -- your standard video game philosophy of advancement. But for real world, nitty gritty, heavy duty, hardcore problems you better kick in some cash. You'd be surprised what solutions can be cooked up for the right incentive.

Don't scoff! Gamification has been applied to solving problems in fitness, employee training, financial services, project management, medicine, and market research just to name a few.

Do you have a problem you need fixed? Let us help you turn it into a game. (305) 423-9574

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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Successful Flex Pricing

noreply@blogger.com (Louis Rosas-Guyon III) — Mon, 19 Mar 2012 10:30:00 +0000

Every major city has problems with parking. Whenever you cram so many people with so many cars into a finite space, there will inevitably be a space problem.

However, San Francisco is fighting back through the power of utility pricing. In an ambitious experiment, the parking meters in San Francisco will increase the price of parking based on supply and demand. As the available parking spaces fill up, the price at all the other meters on the most crowded street will go up. On the flip side, streets with fewer parked cars will have the parking rates decline. Under this experiment, parking on some streets has risen as high as $6.00 per hour!

The experiment has been largely successful. There are more available parking spaces in high traffic areas and there are fewer complaining motorists.

Utility pricing will become a fixture pricing strategy as we continue to merge information technology with everyday items. From groceries linking price to freshness to smart vending machines, the network economy will use information to add consumer value. Suddenly all those "dumb" machines become adaptive, dynamic participants.

How will utility pricing and the network economy impact your business? Are you ready for utility pricing models? If not, let us help you ride the wave of the 21st Century. (305) 423-9574

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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More Trouble from China

noreply@blogger.com (Louis Rosas-Guyon III) — Fri, 16 Mar 2012 18:40:00 +0000

I like to keep an eye on the global economy. Not because I don't have anything better to do -- it's because in a network economy all points effect all others. The old beliefs in a "national economy" are nothing more than nostalgic fiction today.

A few months ago, I warned that the world will soon be facing a Chinese version of the Western financial crisis. As more news keeps filtering through the Great Fire Wall, it only confirms my fears.

Back in October 2011, the New York Times reported about how Chinese small business owners have had to borrow money from loan sharks. Because they are unable to borrow money from the large state-controlled banks, they turned to loan sharks for needed capital. With the current economic slow down, many business owners are unable to pay the loan sharks. In order to avoid getting their legs broken (or the Chinese loan shark equivalent), most are simply just vanishing. As the small business foundation in China crumbles, it is only a matter of time till the big businesses begin to collapse.

Today I read an article in The Economist which puts another nail in the coffin - in February, China's trade deficit hit an all time high of $31.5 billion! While they always run a small trade deficit when everything shuts down for Chinese New Year, it has never been so pronounced.

China's economy is linked directly to export. With the economic troubles in the West, Chinese exports have taken a serious hit. However, while we are beginning to see signs of economic life as we adjust to austerity, the Chinese are in no way prepared for austerity measures.

How will a Chinese collapse impact the United States? Europe? All of China's trading partners should be very nervous. The network economy has increased interdependence.

Like the ancient Ouroboros symbol, the world economy is a snake eating it's own tail. We are, literally, all in the same boat. China's pain is a direct result of the Great Recession and the current EuroZone mess. The real question -- how will this further hurt the global economy?

The entire Chinese Miracle of the last two decades is entirely dependent on growth. What happens when growth stops? We will keep seeing the cracks in the Chinese economy grow wider. If you do business in China, be prepared. The news will not get better.

Are you ready for China's collapse? How will it impact your business? Find out. (305) 423-9574

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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SMB Tech Mistakes - I Don't Need Better IT

noreply@blogger.com (Louis Rosas-Guyon III) — Mon, 12 Mar 2012 10:30:00 +0000

Many SMB owners are so busy running their business, they don't have time to keep up with new IT solutions that can help them achieve their goals.

With the somewhat better economic news, many SMBs are considering strategic projects including much needed technology upgrades. Like it or not, you need to maintain and upgrade technology to stay competitive.

Replacing technology can seem cost-prohibitive, but the opposite is true: SMBs can see enormous benefits by upgrading to new computers. Just eliminating old, buggy computers can improve productivity dramatically, as workers have to stop less often because of machine errors.

Research shows that the right technologies create tangible improvements in customer satisfaction, revenues, staff morale (which leads to lower employee turnover rates and higher productivity) and, the all important, profits!

IT is not just an administrative tool, it is a strategic weapon that can help your business survive and grow. The trick is finding the right tools to help you work smarter.

Call us today and start working smarter. (305) 423-9574

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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Digital Bounty Hunting

noreply@blogger.com (Louis Rosas-Guyon III) — Wed, 07 Mar 2012 11:00:00 +0000

Say whatever you like about Google but they sure understand the economics of security.

This last weekend Google paid out $47,500 in bounties. Not for criminals or desperadoes, but techniques used to hack Google's Chrome web browser. Google understands that the best way to stop hackers is to bribe them.

And they have the deep pockets to pay out plenty. Google has already budgeted $1 million in bounties to be paid at the 12th Annual CanSecWest conference which starts Wednesday. They are offering a range of bounties from $20,000 to $50,000 depending on the severity of the exploit. I can just see the geek hordes rubbing their greedy hands in joyous villainy.

As a business model, this makes perfect sense. Security is the single largest concern in the digital world. As more and more business moves into cyberspace, we need to know our transactions, identities and money are all secure. By "hiring" hackers, Google is using their creativity and skills to improve their product. Why risk federal prison when Google will just hand you a check? It's a win-win scenario.

It's all about turning a negative into a positive. This is a well respected marketing tactic, such as Avis's "We Try Harder" ad campaign. Avis acknowledged that they were second to Hertz in the rental car business but used that to their advantage in a very successful campaign. What if there's a way to take advantage of the negatives in your business?

Can you adopt a similar practice in your business? Is there a way you can turn a negative into a positive?

Let us help you! (305) 423-9574

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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The Next Digital Business Hurdle

noreply@blogger.com (Louis Rosas-Guyon III) — Wed, 08 Feb 2012 11:30:00 +0000

When a computer can do grunt work, you don't need grunt workers. The old mainstay jobs that guaranteed a lower middle class income, like data entry clerk, just don't exist anymore. In a world where there's a computer on every desk and everyone knows the basics of using one of these infernal machines then why pay someone to type?

Simply stated -- when everyone does it, it stops being special.

Lawyers used to all need secretaries. Now, most get by without or three lawyers share one assistant. Technology has always been about labor saving. Labor saving technology used to just shave minutes from production time but now it's shaving workers from the payroll.

But that's just the first step in the revolution that's happening in business.

When IBM sold their first computers, all they did was take the business processes of the 1940's and digitize them. Those processes have served us well for more than 60 years but now they're outdated. The old mainstays of the economy are now on shaky ground as the Digital Revolution unfolds.

The next radical changes will be in how business gets done. One place I think will see traction is the merger of social media and business transactions. For example, Tradeshift offers free business invoicing for life through a social network that maximizes communication across the supply chain. It's the cloud paradigm's answer to SCM.

The next generation of processes will do exactly what they are supposed to do -- identify procedures that reduce transactional costs while improving transparency and reducing error.

But this is just the beginning. How will new business processes impact your bottom line? Are you adapting or will you die out?

Find out. (305) 423-9574

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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