Sunday, September 10, 2006

Dell In Fortune Magazine

There is an article in the latest issue of Fortune about Dell's woes. According to the article, the problems stem from Dell betting too heavily on cost reductions, not embracing AMD chips, design, and lastly.... ignoring the customer.

For me, Dell's downfall can be traced to its outsourcing of its previously excellent service overseas. Nobody wants to call for service on a complex issue and reach someone you can barely understand explain concepts that you can barely understand. My own experience in ordering a computer a few years ago did little to inspire confidence as a sales person in India was overly confident about Dell's ability to get the computer to me in the time frame I needed. He didn't understand my concerns about the shipping methods used and an upcoming holiday that may have resulted in other delays. Almost everything he told me was untrue.

Unfortunately, the article contains a glaring error. It indicates "(l)ast year the company launched a high-end sub-brand called XPS." I own an XPS from a few years back and a simple Google search shows the XPS line goes back several years."

Tuesday, August 22, 2006

Riding the Solutions Rocket Straight to PR Mediocrity

Check out the news release below. Repeat after me... "The word solutions means NOTHING." Saying you sell solutions or provide solutions is like saying you sell stuff. I've highlighted my favorite bits below with comments.




GreenPages Sharpens Solutions Focus

(URL: http://www.crn.com/sections/vista/vista.jhtml?articleId=191801251)

By Steven Burke,


5:14 PM EDT Mon. Aug. 07, 2006

GreenPages is riding the solutions rocket.
The Kittery, Maine-based integrator has sharpened its solutions focus over the last year, with professional services-based solutions now accounting for 40 percent of sales, up from 12 percent a year ago, said GreenPages President and CEO Ron Dupler. And he said he expects a 30 percent increase in annual sales to $100 million this year.


What exactly is a "solutions focus"? Is that something you get when you read Encyclopedia Brown very intently? And why repeat this meaningless word twice?


"The technology solutions business is growing exponentially," Dupler said in an interview at the GreenPages Solutions Summit 2006 conference in Portsmouth, N.H., which brought together 70 of the company's customers and 42 of its vendor partners.

What exactly is a "technology solution"? Does that mean technology is your problem? If so, then maybe an abacus would work for you.


"There is a tremendous opportunity for our clients to leverage technology to drive their business. There are also significant challenges, because the technology is complex," he said.

Why use something when you can "leverage" it. How fancy of Mr. Dupler. Not only is the technology complex, the words used to describe it are complex.

Over the last year, GreenPages has doubled the size of its solutions architect staff, increased its project management staff to seven (up from four) and added field engineering talent.


Oohhhhhh... They're not consultants, they're solutions architects.


The company's solutions march was accelerated by its April acquisition of TenCorp, a solution provider based in Needham, Mass., that had a robust state/local government and education business. The deal also brought GreenPages a wealth of technical talent and an ISO-certified advanced project and configuration center.

The solutions march. Didn't Souza write that?

Even with its stepped-up solutions push, GreenPages isn't turning its back on its reseller procurement business, according to Dupler. In fact, the company has tripled the size of the ISO-certified center.

Just what the hell were they doing before they did solutions? Oh wait, they're in the reseller procurement business. Huh?

Dupler said that when he took the GreenPages top job nearly two years ago, he envisioned a 50-50 products-to-solutions business mix. But now he sees the solutions business exploding, noting that ultimately, "the external market will dictate what we look like as a business."

What are we up to, six uses of this meaningless word? Considering that a garbage man offers a sanitation solution and a car salesman offers a transportation solution, isn't a solution essentially a product?



"There's a tremendous hunger for our solutions expertise," Dupler added. "We're also good at supply chain, logistics and e-commerce."

Actually, I think there is a hunger for PR clarity.

The procurement side of the business is now "table stakes" for customers, who are increasingly relying on GreenPages to solve business problems with the best technology available, Dupler said. "The difference between GreenPages and the rest of the market is our solutions capability. We are farther down the road with the evolution of our business. We have an amazing technical staff that can guide our clients through the maze of choices available to them." At the heart of GreenPages' business model is a vendor-agnostic philosophy that puts the interest of the client above any single manufacturer, Dupler noted. "We weed through all the hype and select the best technology. Our first commitment is to the customer," he said.

Table stakes? A gambling term? Now I'm even more confused. As for solutions capability, what exactly does that mean? It doesn't define a difference.

As for vendor-agnostic, let's look at the definition of the word "agnostic" on m-w.com

1 : a person who holds the view that any ultimate reality (as God) is unknown and probably unknowable; broadly : one who is not committed to believing in either the existence or the nonexistence of God or a god
2 : a person unwilling to commit to an opinion about something

Okay, either they're saying they don't have a committment to the vendor being or not being a god, or that they're unwilling to offer an opinion on a vendor. If they won't give an opinion on a vendor, then exactly to they honor their committment to the customer?


In an age where many manufacturers are seeking vendor exclusivity, GreenPages has chosen to work with multiple vendors. Among the company's partners at the summit were Microsoft, Hewlett-Packard, IBM, Lenovo, VMware, EqualLogic, 3Com, Radware, Internap, ScriptLogic, Fortinet, Zixcorp, Foundry and Utimaco.

As part of its professional services onslaught, GreenPages has reorganized its professional services group into practice areas, said Tobi Evangelisti, vice president of solutions at GreenPages. The company also has added telephony, wireless/mobility and technical staffing as new practice areas, she said.

Ewwwwww... a VP of solutions. Sweet.

In addition, GreenPages has revised its data management, disaster recovery, compliance and managed services practices. Other practices include security, network operating systems, network infrastructure and virtualization/server-based computing.

Including the TenCorp acquisition, Evangelisti said the data management practice is expected to hit $12 million this year, up from $1 million last year.

The solutions summit for the first time featured a demo center and IT lab. "This is a live network environment," said Glen Jodoin, vice president of operations at GreenPages. "Customers can play with and test new solutions like VoIP or an iSCSI SAN."

Great, I've always wanted to test new solutions. But if I have to test it, then is it really a solution?

Also this year, the summit featured more breakout sessions hosted by GreenPages solutions architects, covering topics such as "Getting To VoIP," "Data Management" and "Disaster Recovery/Business Continuity Planning."

Man, I'm hopin' they can build me a solutions buildin'.


--------------------------------------------------------------------------------
Copyright 2006 CMP Media LLC.

Saturday, August 19, 2006

It's Ford's Fault

While watching coverage of work shutdowns at local Ford plants one worker summed up the situation perfectly. He said that Ford has relied too much on gas guzzling SUVs and Trucks at the expense of developing smaller and more fuel efficient money makers.

I've read that domestic car companies make little if any money on the small car segment. Indeed, the competition is brutal, with Toyota, Honda, and Nissan putting out nice small and midsize cars that are relatively cheap and reliable. Ford's Focus was introduced to great reviews, but Ford's bad habit of keeping the same sheet metal on cars year after year (Taurus anyone?) without a major redesign makes them look dated. Oddly Ford's Mazda has some very sharp looking cars that look fresh year after year.

While it is easy to blame unions and gas prices for domestic automaker's woes, the reality goes much deeper. Domestic models are still not as reliable as their foreign counterparts, their exteriors are often uninspired and their interiors often look, feel, and are cheap. Technology that comes standard on foreign models is optional or non-existant on domestic models. Heck, even something as simple as an interior opening fuel door is tough to find on domestic models.

While I hope Ford recovers, I don't think they'll do it by praying for a miracle or keeping their extensive model lines intact. And I certainly hope things work out for the people they employ and support.

Wednesday, July 19, 2006

Ebay -- Raising Fees Yet Again

Okay, I read this several times, but the basic message seems to be that Ebay stores for nickel and dime items was a big mistake. What I get out of this is that Ebay is frustrated with the low priced and therefore, low profit to Ebay items that are posted in their stores. I would imagine that this effort is probably more about pushing these sellers out of the stores and into higher margin auctions.

It's probably not a bad idea the more that I think about it. If you're someone who posts auctions of cheaper items, the reality is that there are probably 1000 people ahead of you with Buy It Now items already out there. These items clog out the auction people and frustrate them as much or more as these higher fees will frustrate store owners.

Dear Seller,

Since its debut in 1995, the eBay marketplace has continually evolved to meet the needs of the eBay Community. For the most part, the behavior of buyers and sellers has naturally adapted to changing conditions -- over time, we've learned to allow the marketplace to direct itself as much as possible. On some occasions, though -- in the interest of the eBay marketplace's long-term vitality -- we've had to step in and implement new policies, introduce new formats, or make changes to our fee structure to create needed incentives for eBay members.

Put simply, we at eBay have two basic roles: to deliver the best overall value for buyers, and to maximize cash flow for sellers. As eBay has grown over the years, we've added various enhancements and tools to the site -- but in essence, our "products" are two types of listings:

Core listings (auction-style, auction-style with Buy It Now, and Fixed Price) deliver the signature eBay buying experience. For sellers, they're the fastest way to sell inventory on the Internet -- the only place where items typically sell within about two weeks.
Store Inventory listings were introduced in 2001 and intended as a low-risk way for sellers to display large amounts of product in their eBay Store. This format employs low insertion fees and higher final value fees to encourage an abundance of inventory on the site.
Amid all this change, one thing has remained constant: auction-style listings are the foundation of eBay. Auction-style and other core listings made eBay what it is today -- and they'll always be front and center on eBay.com. They account for about 91% of the gross merchandise value sold on eBay.com. But recently, we've been wrestling with some troubling facts:

Store Inventory listings now comprise about 83% of active eBay.com listings on average.
While eBay.com core listings typically sell in about two weeks, Store Inventory listings on average take 14 times longer to sell. In some media categories, Store Inventory listings take more than 40 times longer to sell than core listings.
And, when you compare our operations costs for an average Store Inventory listing and an average core listing - factoring in the duration of each - our cost to host a Store Inventory listing is more than 50% higher than for a core listing. In fact, current Store Inventory insertion fees don't cover eBay's costs for hosting them.
It's vitally important -- to your business and ours -- that we maintain a healthy balance between listing formats on the eBay marketplace, and ensure that inventory conversion across the site remains strong. So we're taking action.

Today, I want to inform you of changes we're making to eBay.com -- changes intended to rebalance the overall eBay marketplace by further distinguishing the roles of core listing formats and our Store Inventory format. In short, we're improving the advantages of selling in core listing formats -- and taking action to manage the proportion of Store Inventory listings -- to ensure that the buying experience on eBay stays true to shoppers' expectations.

Core Listings
Core listing fees will remain unchanged. So for the vast majority of eBay sellers who use only these formats, their fees are not increasing.


And we'll be providing greater exposure for core listings on eBay Express. In late August, we'll begin displaying auction-style listings with Buy It Now on eBay Express for qualifying sellers. Also in late August, core fixed price and auction-style Buy It Now listings that qualify for eBay Express will be advantaged over Store Inventory listings.

Also, in response to the requests of many large sellers, we're raising the 10-item multiple listings limit to 15, effective Aug. 22.

Store Inventory Listings
For those of you who operate an eBay Store, we're making changes to Store Inventory listing fees, as well as to the on-site exposure we provide for this listing format.


We'll begin charging variable insertion fees for Store Inventory listings, as we do for core listings. Beginning Aug. 22, eBay.com Store Inventory format insertion fees will be tiered with an item's starting price.

These Store Inventory format insertion fees take effect Aug. 22, 2006:
Starting Price New Insertion Fee Current Fee
$0.01 -- 24.99 5¢ 2¢
$25.00 and higher 10¢ 2¢

Some Store Inventory format final value fees also will also increase, effective Aug. 22, 2006:
Selling Price New Final Value Fee Current Fee
$0.01 -- 25.00 10% 8%
$25.01 -- 100.00 7% 5%
$100.01 -- 1,000.00 5% (no change) 5%
$1,000.01 and higher 3% (no change) 3%

Please note that for current listings, the new final value fees will apply only after these listings are renewed.

For more detailed information on these fee changes, please see our fee changes overview.

For some time, we've been working to identify the best way to display Store Inventory listings on the site. In the spring, we pledged to sellers that we would test a variety of ways to mingle their Store Inventory listings with core listings on eBay.com. We've tested several alternatives and these tests showed the ideal approach is how we're doing it today - that is, when a buyer's search returns 30 or less core listings, we display up to 30 Store Inventory listings. This is what we'll stick with going forward.

However, starting in about a month, we'll also include an unlimited number of Store Inventory listings after all matching core listings, when the buyer clicks the Buy It Now listings tab at the top of every search results page. When the buyer hasn't selected this option, eBay.com will display Store Inventory listings along with core listings as described above.

Half.com Listings Added to eBay.com Search Results
I recognize that sellers in the Books, Movies, Music and Video Games categories will have unique challenges with the changes we're making. As many of our media sellers have requested, starting in late August we'll again provide visibility for Half.com listings in core search results, by bringing back the Half.com listings merchandising feature we used previously (click here for an example). We're also exploring additional ways to promote Half.com listings in search results on both eBay.com and eBay Express.

How These Changes Affect You
I'm confident the actions we're taking are the right thing to do for the overall eBay Community. We'll more effectively deliver on our buyers' needs and expectations. And for sellers, these changes will ensure that eBay remains a differentiated and distinct e-commerce channel with fast inventory turnover.

I know there's a lot to digest here, and that you're probably most interested in quickly determining if and how these changes will impact your business.

A typical eBay Stores seller who uses Store Inventory format -- making no adjustments to his or her selling strategy following these changes -- will experience an overall fee increase of less than six percent, based on our analysis of all June selling activity. Of course, you need to clearly understand the impact on your business -- which could be greater or less than six percent. To get started, please visit the seller resources page or consult the Frequently Asked Questions we've prepared. Also, use your seller support resources in Customer Support. Our CS teams are fully prepared to help you understand the effect on your business, and discuss your options for adjusting your eBay selling strategy to minimize impact to your bottom line.

In addition -- to help eBay Stores sellers make informed decisions about any changes to their selling strategies -- we're making eBay Marketplace Research Basic available to them at no cost for eight weeks, starting today. Through September 19, eBay Stores sellers can use this data to compare selling formats or determine how best to price inventory on eBay. You can access eBay Marketplace Research here.

I'll be hosting a Community Town Hall discussion on Thursday, July 20th at 4:00 p.m. Pacific time, where I'll answer your questions. Please click here for more details on the Town Hall, or to submit a question in advance.

Sincerely,

Bill Cobb
President
eBay North America

Tuesday, July 18, 2006

Meet the Beatles

One of the most puzzling aspects of the Beatles legacy is the lack of product in the past 20 years. It's been 20 years (20 years!!!!) since the Beatles CDs were released on CD, and with the exception of an uninspired Let It Be remaster, Beatles 1, Live at the BBC issue, and the 3 Anthology sets, some expensive boxed set reissues of the american versions and a new soundtrack to Yellow Submarine, I don't think anything else has come out. In that time, I've counted at least 3 versions of Tommy, and 2 or more versions of most Who albums. Rolling Stones CDs have been reissued 2 or three times. Led Zepplin's had 1 upgrade.

Considered the original CDs. The booklets, with the exception of Sgt. Pepper, were horrible. The sound was just okay. Neither benefited from the time and attention that even some one hit wonders from the 80s have received in their reissues.

Why? Surely Apple, Capitol, EMI and everyone involved could get together and create new remasters of these albums. Each could be a two or three CD set, including the original mono masters (which, according to Geoff Emerick, had much more care put into them), the original stereo masters, and the cuts from the US versions. Detailed booklets with recording history of each song could be added as well, with historical essays. Even with slumping CD sales, I would guarantee that these new CDs would be a hit, and wouldn't cost that much to produce.

Of course, every Beatle fan has been waiting for the very same thing for years. One has to wonder why the Fab Two are more willing to approve a Las Vegas show than reissuing their classics in a manner befitting their status.

Monday, May 15, 2006

Soda Thoughts

$2.19. $2 freakin' 19. For a fountain coke!?!?!?!?!?!?!?!?!?!?!?!?!?! That's what I paid at O' Charley's yesterday. I have to wonder where restaurants have their head these days as they raise the prices on high profit items through the roof. For those of us who love a coke with our meals, we'll pay it. But for a large portion of people (at least in good ole' Kentucky), the more you charge, the more likely we are to order the dreaded water with lemon.

Considering that they probably pay about 10 cents a glass at most, I'm having a hard time understanding why restaurants would want to raise the price to the point where people switch to something you charge nothing.

And while we're at it, why aren't there more diet flavored soda offerings and more caffeine free soda offerings at restaurants?

UPN & WB = CW?????

UPN and WB are merging into one network called CW. CW sounds like the name of a cable network devoted to Country and Western Music. Not sure why you'd build up whatever name these two have established and then kill it for two letters that sound like nothing together.

Thursday, April 06, 2006

CBS Makes Mistake -- NBC Poised to Make One?

If CBS thinks that its news will magically recover because Katie Couric joins it, I think they're sadly mistaken. The move will cost them far more money than it will cost the Today Show viewers. Katie tends to polarize people, isn't exactly at her best doing hard news, and has little to add to the dying 6:30 newscasts.

As for NBC, if they go with Meredith Viera, I will be scratching my head. Meredith is a person that people either love or hate on a show that people love or hate (the View). It seems much wiser to go with Campbell Brown, Natalie Morales or even the not so bright Ann Curry. Let Matt Lauer shine a little more, bring in someone less known (and who will stay younger longer) to do the show and make a name for herself for the Today show.

Friday, March 03, 2006

CBS admits it doesn't listen to its own programming by suing Stern

CBS Radio has to be nuts. I've heard Les Moonves is an egotistical jerk, but does he really think he'll win suing Howard Stern for plugging Sirius while he was on CBS?

The problem here is that essentially CBS could and did control his content. With all of the FCC garbage, surely there were at least a few CBS execs listening to the show. Is any judge, jury, or other interested party truly going to believe that CBS didn't realize what Stern was doing? Even a visit to his own fan sites would have made them aware that Stern was playing up his move to Sirius.

The solution was simple, fire him, restrict him harshly, or take him off the air for the duration of his contract. CBS did NONE of these. Why? They wanted to milk Howard for as long as possible, and even if he was doing everything he's accused of, CBS knew their ratings were going to tank as soon as he left.

My advice, drop the lawsuit and focus on bringing in some talent for the shows. Sue the guy who thought David Lee Roth would be a good DJ.