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	<title>Nathan and his Open Ideals &#187; Strategy</title>
	<atom:link href="http://openideals.org/category/strategy/feed/" rel="self" type="application/rss+xml" />
	<link>http://openideals.org</link>
	<description>... and the trouble it often gets him in</description>
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		<title>My raw thoughts on Google&#8217;s acquisition of Motorola Mobility</title>
		<link>http://openideals.org/2011/08/16/my-raw-thoughts-on-googles-acquisition-of-motorola-mobility/</link>
		<comments>http://openideals.org/2011/08/16/my-raw-thoughts-on-googles-acquisition-of-motorola-mobility/#comments</comments>
		<pubDate>Tue, 16 Aug 2011 00:59:54 +0000</pubDate>
		<dc:creator>nathan</dc:creator>
				<category><![CDATA[Mobile Mobile]]></category>
		<category><![CDATA[Soapbox]]></category>
		<category><![CDATA[Strategy]]></category>

		<guid isPermaLink="false">http://openideals.org/?p=711</guid>
		<description><![CDATA[Overall, I am positive on the acquisition, with my main concern being that Google is clear and decisive about how they plan to proceed with the integration and operational side, and that they don&#8217;t unintentionally create confusion and concern in &#8230; <a href="http://openideals.org/2011/08/16/my-raw-thoughts-on-googles-acquisition-of-motorola-mobility/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p>Overall, I am positive on the acquisition, with my main concern being that Google is clear and decisive about how they plan to proceed with the integration and operational side, and that they don&#8217;t unintentionally create confusion and concern in the consumer market.</p>
<p><strong>ARMING UP FOR THE PATENT WAR</strong><br />
Obviously this acquisition is related to the ongoing patent wars between Apple and Google (with their hardware partners HTC and Samsung as the primary proxies for litigation). Motorola has a deep, broad collection of intellectual property. Not only did they invent the cellular telephone and have years of creating popular consumer mobile hardware (StarTAC!), but they also have created their own Linux+Java mobile OSes in the past, which could provide support for Google in the case vs. Oracle.</p>
<p><strong>GOOD FOR DEVELOPERS FOR NOW</strong><br />
I don&#8217;t think this will change much for developers in the next few years, as Android has great momentum that won&#8217;t end anytime soon. It may be a boon ultimately, as Google must work harder to maintain the image of Android being open now. The more transparency and code they release, the better for all.  I would also hope Google uses this to support and/or indemnify its app developers from worrying about being sued by patent trolls like LodSys.</p>
<p><strong>PUTTING THE NAIL IN THE RIM COFFIN<br />
</strong>Motorola has a &#8220;Pro&#8221; category of devices, with enhanced security in the OS to meet enterprise and gov requirements, as well as Blackberry style keyboards. This device could be a &#8220;Nexus Pro&#8221; sold bundled with Google Enterprise services to take on RIM directly as complete business tack. Google is having a lot more success in this space than people realize, taking on IBM, Microsoft and RIM all in one swoop. This is an area that Apple cannot compete in.</p>
<p><strong>COMPETING WITH YOUR PARTNERS</strong><br />
It will be a tricky task to manage Android and Motorola business units of Google. While not entirely comparable, there are some good lessons to learn from Palm and Apple&#8217;s own failed attempts at licensing an OS while producing their own competitive hardware. I was at Palm when we had the PalmOne (Hardware) and PalmSource (OS) divisions, when there were still Palm licensees such as Handspring and Sony, and it was a really difficult mess. PalmSource had to treat us like a separate company, in order to appease partners, but at the same time, we didn&#8217;t have the freedom those partners would have to implement their solutions because we had to maintain unity with the Palm vision. Eventually, all the licensing ended, Palm bought Handspring, and the whole company unified again, and then ultimately failed, and was acquired by HP.</p>
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		<title>Discussing New Tactics for Human Rights</title>
		<link>http://openideals.org/2010/01/27/discussing-new-tactics-for-human-rights/</link>
		<comments>http://openideals.org/2010/01/27/discussing-new-tactics-for-human-rights/#comments</comments>
		<pubDate>Wed, 27 Jan 2010 14:58:01 +0000</pubDate>
		<dc:creator>nathan</dc:creator>
				<category><![CDATA[Bloginess]]></category>
		<category><![CDATA[Deep Thoughts]]></category>
		<category><![CDATA[Guardian]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[human rights]]></category>
		<category><![CDATA[new tactics]]></category>

		<guid isPermaLink="false">http://openideals.com/?p=546</guid>
		<description><![CDATA[This week, I&#8217;m participating in a one week online dialog regarding the development of new tools and tactics for the purpose of documenting human rights violations. The New Tactics in Human Rights Project, led by a diverse group of partner &#8230; <a href="http://openideals.org/2010/01/27/discussing-new-tactics-for-human-rights/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p>This week, I&#8217;m participating in a one week online dialog regarding the development of new tools and tactics for the purpose of documenting human rights violations. The New Tactics in Human Rights Project, led by a diverse group of partner international organizations, advisors and practitioners, promotes tactical innovation and strategic thinking within the international human rights community. While there is an amazing list of researchers and practitioners who have been invited to seed the thread, all are welcome to join in the discussion, as well.</p>
<p>Here&#8217;s a brief summary of what we&#8217;ll be covering:</p>
<blockquote><p>Join us for this important on-line dialogue featuring Documenting Violations: Choosing the Right Approach from January 27 to February 2, 2010.  This dialogue will feature practitioners that have developed database systems to document human rights violations, organizations on the ground documenting violations, and those that are training practitioners on how to choose the right approach and system for their documentation.  We will look at options for ways to collect, store and share your human rights data safely and effectively.  If you are trying to figure out the best documenting system for your work &#8211; or if you have found something that works well, please join us for this conversation to share your questions, ideas, resources and stories!</p>
<p>Featured Resource Practitioners<br />
Featured resource practitioners for this dialogue include (click here for more biographical info):</p>
<ul>
<li>Vijaya Tripathi and Megan Price work with the Martus database developed by Benetech</li>
<li>Agnethe Olesen, Daniel D&#8217;Esposito and Bert Verstappen work on the OpenEvSys database developed by HURIDOCS</li>
<li>Jorge Villagran and Sofia Espinosa of the Guatemalan National Police Archive Team</li>
<li>Patrick J. Pierce,  head of the International Center for Translational Justice &#8211; Burma Program</li>
<li>Oleg Burlaca, utilizes HURIDOCS methodology and working on websites for World Organisation Against Torture and SOVA Center for Information and Analysis</li>
<li>Patrick Stawski, Human Rights Archivist at Duke University and Seth Shaw, Duke&#8217;s Libraries&#8217; Electronic Records Archivist</li>
<li>Jana Asher, M.S., is the Executive Director of StatAid</li>
<li>Agnieszka Raczynska of Red Nacional de Organismos Civiles de Derechos Humanos, Mexico</li>
<li>Daniel Rothenberg is the Managing Director of International Projects at the International Human Rights Law Institute (IHRLI) at DePaul University College of Law</li>
</ul>
</blockquote>
<p>Read on:<br />
<a href="http://www.newtactics.org/en/blog/new-tactics/documenting-violations-choosing-right-approach">http://www.newtactics.org/en/blog/new-tactics/documenting-violations-choosing-right-approach</a></p>
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		<title>The Droid&#039;s Dharma: Supporting the Tibetan Language on Android</title>
		<link>http://openideals.org/2009/11/20/the-droids-dharma-supporting-the-tibetan-language-on-android/</link>
		<comments>http://openideals.org/2009/11/20/the-droids-dharma-supporting-the-tibetan-language-on-android/#comments</comments>
		<pubDate>Fri, 20 Nov 2009 06:11:27 +0000</pubDate>
		<dc:creator>nathan</dc:creator>
				<category><![CDATA[Guardian]]></category>
		<category><![CDATA[Mashups]]></category>
		<category><![CDATA[Mobile Mobile]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[android]]></category>
		<category><![CDATA[fonts]]></category>
		<category><![CDATA[tibet]]></category>

		<guid isPermaLink="false">http://openideals.com/?p=477</guid>
		<description><![CDATA[DISCLAIMER: I am by no means an expert in this issue &#8211; I am just an an enthusiastic hacker with a dream. Also I don&#8217;t read Tibetan, but I enjoy looking at it! Thanks to the open-source movement and the &#8230; <a href="http://openideals.org/2009/11/20/the-droids-dharma-supporting-the-tibetan-language-on-android/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p><em>DISCLAIMER: I am by no means an expert in this issue &#8211; I am just an an enthusiastic hacker with a dream. Also I don&#8217;t read Tibetan, but I enjoy looking at it!</em></p>
<p>Thanks to the <a href="http://www.gnu.org/">open-source movement</a> and the hard work of many <a href="https://collab.itc.virginia.edu/access/wiki/site/26a34146-33a6-48ce-001e-f16ce7908a6a/tibetan%20fonts.html">Tibet supporters and typography experts</a>, I am happy to announce that  rendering of Tibetan characters is now supported on the most fantastic of mobile smartphones, <a href="http://www.android.com/">Google Android</a>!!!</p>
<p><a title="YarlungRaging2.JPG by nathanialfreitas, on Flickr" href="http://www.flickr.com/photos/natty/4118510985/"><img src="http://farm3.static.flickr.com/2686/4118510985_379d582822.jpg" alt="YarlungRaging2.JPG" width="500" height="375" /></a><br />
<em>Tendor&#8217;s <a href="http://yarlungraging.blogspot.com">Yarlung Raging</a> blog viewed on a T-Mobile myTouch3G Android Phone</em></p>
<p>While it only has a small alphabet of characters, the Tibetan language has been notoriously difficult to support on Mac, Windows and Linux due to some complexities in how one character can modify the next. Dedicated academics, volunteers and software engineers have stayed focused on solving this and the most recent versions of all major operating systems are able to render Tibetan and provide Tibetan character input tools. Google Android is based on Linux, and fortunately is able to support the use of the GPL-licensed <a href="https://collab.itc.virginia.edu/access/wiki/site/26a34146-33a6-48ce-001e-f16ce7908a6a/tibetan%20machine%20uni.html">Tibet Machine Unicode font</a>.</p>
<div style="float:left;margin:3px"><a title="YarlungMobile1.jpg by nathanialfreitas, on Flickr" href="http://www.flickr.com/photos/natty/4118510513/"><img src="http://farm3.static.flickr.com/2722/4118510513_c1b63dfe25_m.jpg" alt="YarlungMobile1.jpg" width="180" height="240" /></a></div>
<p>However, by default Android only has a small number of fonts built-in, and doesn&#8217;t support the easy addition of new fonts or locales. It does however have something called the &#8220;fallback&#8221; font, which is used to render any encoded text it comes across that it doesn&#8217;t quite know what to do with.</p>
<p>What I realized is that you could replace this font with a Tibetan unicode font compatible with Linux, and that this would then enable Tibetan support in all applications on Android, including the web browser, email apps, instant messaging, and short messaging (SMS), among others.</p>
<p>The steps below outline the technical how to for Android users.<br />
<br style="clear:left;" /><br />
<strong>WARNING: This is not for novices. However, it isn&#8217;t rocket science either. Your average neighborhood mobile phone enthusiast should be able to figure out how to do this, and potentially help their friends do it too. Down the road, I hope we can make this process easier and/or Google will allow for the addition of any font to the system.</strong></p>
<p><strong>Step 1:</strong> Get Root on your Android device. You don&#8217;t need to mod your phone with a custom firmware, you just need root access to change system fonts. Here&#8217;s some places to start looking on how to (this changes weekly, btw, and differs for each type of Android phone):</p>
<ul>
<li><a href="http://wiki.cyanogenmod.com/index.php/Main_Page#How_do_I_unlock_or_root_my_device.3F">CyanogenMod: How To Root</a></li>
<li><a href="http://www.ryebrye.com/blog/2009/08/16/android-rooting-in-1-click-in-progress/">Android 1-click Root</a></li>
<li><a href="http://neilandtheresa.co.uk/Android/">Android InstantRoot</a></li>
</ul>
<p><strong>Step 2:</strong> Download <a href="https://collab.itc.virginia.edu/access/wiki/site/26a34146-33a6-48ce-001e-f16ce7908a6a/tibetan%20machine%20uni.html">Tibet Machine Unicode font</a>. <em>You can learn more about the variety of Tibetan fonts available <a href="https://collab.itc.virginia.edu/access/wiki/site/26a34146-33a6-48ce-001e-f16ce7908a6a/home.html">here</a>.</em></p>
<p><strong>Step 3:</strong> Make the system font folder writeable and backup the existing font<br />
<em>This can be done using desktop &#8216;adb&#8217; tool from the SDK or the Android terminal app on the device</em></p>
<blockquote><p># su<br />
# mount -o remount,rw -t yaffs2 /dev/block/mtdblock3 /system<br />
# chmod 777 /system/fonts<br />
# cd /system/fonts<br />
# mv DroidSansFallback.ttf DroidSansFallback.ttf.bak<br />
# exit</p></blockquote>
<p><strong>Step 4:</strong> Write the Tibetan unicode font as the new fallback font:<br />
<em>Using <a href="http://developer.android.com/guide/developing/tools/adb.html">ADB Desktop tool</a> with Android connected via USB</em></p>
<blockquote><p>adb push TibMachUni-1.901b.ttf /system/fonts/DroidSansFallback.ttf</p></blockquote>
<p><em>Using on-device terminal app: </em></p>
<blockquote><p>#cd /system/fonts<br />
#wget -o DroidSansFallback.ttf  http://tinyurl.com/tibfont /system/fonts/DroidSansFallback.ttf</p></blockquote>
<p><strong>Step 5:</strong> Reboot your Android phone</p>
<p><strong>Step 6:</strong> Point your Android browser at <a href="http://yarlungraging.blogspot.com">http://yarlungraging.blogspot.com</a>, <a href="http://lobsangmonlam.org/">http://lobsangmonlam.org/</a> or <a href="http://tb.tibet.cn">http://tb.tibet.cn </a> to verify the Tibetan font support is properly installed.</p>
<h2>What&#8217;s Next</h2>
<p><strong>Two big steps from here&#8230; this is a call to action for Android developers out there:</strong></p>
<ul>
<li>Develop a one-click app that can install Tibetan (or any other third-party language) font for any rooted device</li>
<li>Port an existing <a href="http://old.thdl.org/tools/input.html#jskad">Java-based Tibetan input utility</a> into Android as an <a href="http://android-developers.blogspot.com/2009/04/updating-applications-for-on-screen.html">Input Method Editor</a> so that you can have a way to write Tibetan character emails, SMS messages and blog posts.</li>
</ul>
<hr />Many thanks to the authors and developer behind the following posts upon whose work this effort was based:<br />
<a href="http://karuppuswamy.com/wordpress/2009/04/25/how-to-change-fonts-in-android/">karuppuswamy.com: How to change fonts in Android?</a><br />
<a href="http://karuppuswamy.com/wordpress/2009/04/25/mounting-system-partition-in-read-write-mode-in-android/">karuppuswamy.com: Mounting /system partition in read-write mode in Android</a><br />
<a href="http://www.android-devs.com/?p=33">android-devs.com: Adding Additional Language Fonts to Android</a></p>
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		<title>Attack of the &quot;Mad Men&quot; Twitter-Bots</title>
		<link>http://openideals.org/2008/10/06/attack-of-the-mad-men-twitter-bots/</link>
		<comments>http://openideals.org/2008/10/06/attack-of-the-mad-men-twitter-bots/#comments</comments>
		<pubDate>Mon, 06 Oct 2008 20:41:19 +0000</pubDate>
		<dc:creator>nathan</dc:creator>
				<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Mashups]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[bots]]></category>
		<category><![CDATA[mad men]]></category>
		<category><![CDATA[twitter]]></category>
		<category><![CDATA[viral marketing]]></category>

		<guid isPermaLink="false">http://openideals.com/?p=92</guid>
		<description><![CDATA[I experienced an interesting phenomenon this morning using Twitter, and I have to believe some sort of automated twitterbot marketing network is behind it. It all begin with an innocent tweet about how I spent the weekend: &#8220;MC and I &#8230; <a href="http://openideals.org/2008/10/06/attack-of-the-mad-men-twitter-bots/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p>I experienced an interesting phenomenon this morning using <a href="http://twitter.com">Twitter</a>, and I have to believe some sort of automated twitterbot marketing network is behind it.</p>
<p>It all begin with <a href="http://twitter.com/natdefreitas/statuses/948165127">an innocent tweet</a> about how I spent the weekend: &#8220;MC and I were sick all weekend, so we watched the entire first season of &#8220;Mad Men&#8221;&#8230;. time to start wearing my fedora again!&#8221;. My wife Micaela and I have been avidly watching the second season of <a href="http://www.amctv.com/originals/madmen/">AMC&#8217;s Mad Men</a>, and took the $20 plunge on iTunes to catch up on the first season.</p>
<p>A few minutes later I received an email notification from Twitter that <a href="http://twitter.com/bettydraper">bettydraper</a> was now following me. I laughed, and thought it was cute that some person out there loved &#8220;Mad Men&#8221; enough to a) impersonate one of the main characters, b) notice my tweet and c) actually then follow my feed. I followed Betty in return, and noticing she referenced <a href="http://twitter.com/don_draper">@don_draper</a> in a recent tweet, I followed him as well.</p>
<p><img src="http://s3.amazonaws.com/twitter_production/profile_images/61368207/inheritance_bigger.jpg"/> <img src="http://s3.amazonaws.com/twitter_production/profile_images/58955235/DonDraper_bigger.jpg"/></p>
<p>Now, I quickly realized this must be some sort of viral marketing campaign, or at the least an obsessed group of fans, role playing and recreating these characters in Twitter, hoping to tap into some of the magic of infamous twitterers such as <a href="http://twitter.com/darthvader">DarthVader</a> or <a href="http://twitter.com/FSJ">Fake Steve Jobs</a>. Then, however, something strange began&#8230;</p>
<p>Within minutes, I was also being followed by <a href="http://twitter.com/jane_siegel">jane_segel</a>, <a href="http://twitter.com/ken_cosgrove">Ken_Cosgrove</a>, and <a href="http://twitter.com/harrycrane">harrycrane</a>, all characters from the show. Not that intrusive, but obviously my twitter account was being glommed onto by more make believe twits&#8230; how many more should I expect? The whole Mad Men crew?!</p>
<p><img src="http://s3.amazonaws.com/twitter_production/profile_images/61309242/jane_face_7_bigger.jpg"/> <img src="http://s3.amazonaws.com/twitter_production/profile_images/60625802/KEN_FLOWERS_bigger.jpg"/> <img src="http://s3.amazonaws.com/twitter_production/profile_images/61290228/harry_face_bigger.jpg"/></p>
<p>What to make of this? Well, considering the timing, either there is a dedicated staff of trained twitter monkeys, or someone has built a bot engine using some combination of <a href="http://search.twitter.com">Twitter Search</a> and the <a href="http://apiwiki.twitter.com/">Twitter API</a>. Nothing mind blowing here, but interesting to come across it in the wild and to see how multiple twitter identities are weaved together to create, or perhaps recreate, the relationships of the show in this online environment.</p>
<p>What did bother me, was the speed at which I was picked up and followed by all of these other characters&#8230; just because I was interested in Betty and Don&#8217;s tweets, doesn&#8217;t mean I want to also know that Cosgrove and Harry Crane are out there, too. Now that they&#8217;ve got me hooked, perhaps the bots could monitor the frequency at which I mention Mad Men, and follow me, draw me into, their twitterweb over time. That would be more natural, and reveal the truth of itself in a much less obvious way.</p>
<p>The obvious irony is that this whole post is about viral marketing for a show that is all about the greatest era of marketing that ever existed&#8230; the era that created much of how we think about mass marketing and advertising. While digital campaigns such as this pique my imagination for a few moments, they unfortunately don&#8217;t have the staying power of an Oscar Meyer weiner tune.</p>
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		<title>Message to the labels: Forget Horizontal and Vertical… Think “Adjacent”</title>
		<link>http://openideals.org/2007/06/12/message-to-the-labels-forget-horizontal-and-vertical%e2%80%a6-think-%e2%80%9cadjacent%e2%80%9d/</link>
		<comments>http://openideals.org/2007/06/12/message-to-the-labels-forget-horizontal-and-vertical%e2%80%a6-think-%e2%80%9cadjacent%e2%80%9d/#comments</comments>
		<pubDate>Tue, 12 Jun 2007 20:25:08 +0000</pubDate>
		<dc:creator>jon</dc:creator>
				<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Strategy]]></category>

		<guid isPermaLink="false">http://www.cruxyconsulting.com/?p=63</guid>
		<description><![CDATA[Over the past few weeks conversations with a variety of musicians, managers, technologists and label executives have revealed a common theme. Emerging digital music distribution models require record labels to seek out new ways to capture value from the artists &#8230; <a href="http://openideals.org/2007/06/12/message-to-the-labels-forget-horizontal-and-vertical%e2%80%a6-think-%e2%80%9cadjacent%e2%80%9d/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p>Over the past few weeks conversations with a variety of musicians, managers, technologists and label executives have revealed a common theme. Emerging digital music distribution models require record labels to seek out new ways to capture value from the artists they sign, develop and market. <strong>The value that labels capture through publishing and licensing is no longer commensurate with the value they create developing an artist’s “brand”.</strong> If labels were able to participate in merchandising and touring revenue, artist and label incentives would be better aligned. Look for more labels to demand 360 degree relationships with their artists so that they can participate in a broader range of monetization opportunities.</p>
<p>The popular conception has been that the music industry is an evil bear that takes over 70% of the dollars an artist generates and locks artists up in a contractual prison. In many cases though, artists maintain control over lucrative merchandising and touring revenue streams. In this model, incentives for the artist and label should, in theory, be aligned. The more a band tours and pushes merchandise, the more money they make from touring and merchandising. AND the touring and merchandising acts as a fantastic marketing vehicle for album sales, benefiting the label (and the artist).</p>
<p>Now introduce digital music into this industry “balance”. At first, digital music seemed like another (though frightening) distribution and retailing model that could, in effect, conform to the physical distribution model, but with lower packaging and inventory costs. There would be online distributors (with a diminished role given the absence of physical inventory) and digital retailers. Apple’s FairPlay Digital Rights Management made it at least palatable for labels to try digital music retailing. In the meantime file sharing networks were doing two things at once. #1.) they were making it possible for people to access and sample music on an on-demand basis at no cost (to the downloader). #2.) they were removing the incentive to actually purchase legal physical or digital instances of desired music. The music industry chose to battle file-sharing on the face of their copyright, rather than evolve their business model to take advantage of this new way to interact with fans. (Here is a great piece on the value of “free grazing”. http://www.bubblegeneration.com/?a=a&#038;resource=musicrisk1)</p>
<p>Labels are now seeing the power that social tools like MySpace, YouTube and distributable widgets have in getting artist’s work in front of more people in more contexts. Lots of albums “leak” onto file-sharing networks, but widget / embedded player models are offering a more controlled way for labels to let fans “graze” for free. The ability to sample wider varieties of music, without breaking the law, promises to grow music publishing revenues. But much of the value may be transferred to the businesses adjacent to music publishing since all of these free ways to interact with songs can begin to provide a disincentive to music sales. So touring and merchandising revenue streams stand to gain from more liberal online promotional models.</p>
<p><strong>Artists should want their labels to use new technologies to market them without hesitation. Labels should want to push every button to get an artists band in front of their target market. 360 contracts, which give labels participation in the entire revenue cycle of an artist open up this type of creativity. For 360 contracts to take hold, the entire industry will have to acknowledge their importance and introduce them to the next generation of emerging artists. </strong></p>
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		<title>Iterative Technology Approaches to a Media Distribution Strategy</title>
		<link>http://openideals.org/2007/05/29/iterative-technology-approaches-to-a-media-distribution-strategy/</link>
		<comments>http://openideals.org/2007/05/29/iterative-technology-approaches-to-a-media-distribution-strategy/#comments</comments>
		<pubDate>Tue, 29 May 2007 14:24:11 +0000</pubDate>
		<dc:creator>nathan</dc:creator>
				<category><![CDATA[Cloud Computing]]></category>
		<category><![CDATA[Decisions]]></category>
		<category><![CDATA[Make Things]]></category>
		<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Process]]></category>
		<category><![CDATA[Strategy]]></category>
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		<guid isPermaLink="false">http://www.cruxyconsulting.com/?p=62</guid>
		<description><![CDATA[As a small to medium-sized media company with a large catalog of digital media, finalizing a technology strategy to allow wide online distribution is a critically important task. It can also seem a daunting one. Vendors and potential partners are &#8230; <a href="http://openideals.org/2007/05/29/iterative-technology-approaches-to-a-media-distribution-strategy/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p>As a small to medium-sized media company with a large catalog of digital media, finalizing a technology strategy to allow wide online distribution is a critically important task.  It can also seem a daunting one.  Vendors and potential partners are likely knocking on the door, each bringing a unique view of the technology problem and how their service or product can solve these needs.  Consumer pressure also abounds, as each passing week sees new tools and portals for online media consumption. Certainly, Content Delivery Network (CDN) vendors, bandwidth providers, and full-services media-oriented solutions are in the mix.  How should a small to mid-sized media distributor proceed?</p>
<p><strong>A Sea of Solutions</strong></p>
<p>The recent rise in the number of services available to the consumer, the semi-professional artist, and even to the media company directly has been significant.  There are currently dozens of solutions that can meet various needs within the media distribution space.  There are also any number of internally-deployed systems and infrastructures to handle the distribution tasks.  We have observed a number of common pitfalls when medium-sized media outfits tackle this landscape, especially when the unit functions under a larger corporate ownership umbrella:</p>
<ul>
<li>
Corporate-wide, large-scale, all-or-nothing partnerships typically, especially in the highly competitive environment facing today&#8217;s media enterprises, leave no room for market testing and fail much more often than they are successful.
</li>
<li>
Group-by-group expirementation with consumer tools, while in most cases not harmful, usually is not quantifiable in terms of return.  Creating a MySpace page, because it seems like the thing to do, and then collecting friends is not a standalone distribution strategy.
</li>
<li>
Internal technology efforts become mired in the internal workings of a large corporation, one which is not necessarily a technology corporation.
</li>
</ul>
<p><strong>Flexible Experimentation is Key</strong></p>
<p>The number of large-scale distribution programs that have launched, and subsequently failed, in recent years and months is often staggering.  It is our belief that for the majority of small to medium-sized media companies, an effective strategy rests on the ability to experiment within campaigns.  In a lesson taken from modern software engineering practices, an iterative strategy can often prove highly effective for a number of reasons:</p>
<ul>
<li>By reducing internal cycle time and overhead, you can get in front of niche consumers with innovative new promotional vehicles quickly, and build a reputation by doing so.
</li>
<li>By limiting the initial outreach to less-critical media properties, you can gain valuable insight on what works and what doesn&#8217;t, without risking the mission-critical properties.
</li>
<li>By spending less time on organization-wide analysis and coordination, you can focus on deploying the solution quickly and spending that time to analyze and understand its impact, strengthening your overall strategy with each new piece of knowledge.
</li>
<li>When it is appropriate to roll the strategy into a unified whole, potentially for use across all media properties, the insight and data obtained from the smaller-scale initiatives will be invaluable.
</li>
</ul>
<p>Given this, how can you adopt these types of flexible practices?</p>
<p><strong>Recommendations</strong></p>
<p>The challenge, then, becomes one of balancing the substantial capability made available by consumer-oriented services with the need to measure return and iteratively form the overall strategy through a series of learning exercises.  To this end, we have found that often smaller technology firms with existing technology bases can offer a compelling solution during this phase of strategy development.  Computing and data-serving platforms such as those available from Amazon (EC2 and S3) can greatly increase the robustness and speed of deployment for these solutions, allowing them to be offered as &#8220;for real&#8221; services for a fraction of the cost of large-scale CDN partnerships.  The resources freed up by not involving a corporation-wide internal IT effort or large-scale partnership can then be put to use in gathering and understanding analytical data from these next-generation campaigns.</p>
<p>Over time, the value a media company can derive from a series of low-cost campaign deployments, in terms of strategic refinement, hands-on experience with the new technologies and user-interaction models, and avoiding costly and embarrassing mistakes, far outweighs that available from traditional closed-loop analysis.</p>
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		<title>Removing Friction from Online Transactions</title>
		<link>http://openideals.org/2007/05/22/removing-friction-from-online-transactions/</link>
		<comments>http://openideals.org/2007/05/22/removing-friction-from-online-transactions/#comments</comments>
		<pubDate>Tue, 22 May 2007 18:57:12 +0000</pubDate>
		<dc:creator>jon</dc:creator>
				<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[Virtuality]]></category>

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		<description><![CDATA[This piece is about Transactional Friction in digital content sales. Future documents will address digital content business models more directly… In the world of digital content sales, where optimal price points might be very low, a good business model depends &#8230; <a href="http://openideals.org/2007/05/22/removing-friction-from-online-transactions/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p><em>This piece is about Transactional Friction in digital content sales. Future documents will address digital content business models more directly…</em><br />
In the world of digital content sales, where optimal price points might be very low, a good business model depends <strong>on the lowest possible transactional friction.</strong> The two primary contributors to friction are transaction costs and the opportunity cost of TIME and general annoyance experienced by the user. If a near frictionless transaction environment for digital content can be developed, it promises to usher in a new era of digital content business models.</p>
<p><em>Imagine paying three cents to read a technical whitepaper or paying 10 cents to listen to the Grateful Dead, Cornell ’77, in high resolution audio. </em> <img src="http://upload.wikimedia.org/wikipedia/en/b/bf/Grateful_Dead_-_concert.jpg" alt="Grateful Dead" /></p>
<p>Most current digital content transaction models make this impossible. The solution has typically been to “resort to advertising” by translating page views into CPM and click-through revenue. While the ad model works as a monetization path for many types of digital content, it can be fairly limiting, especially for works that are highly attractive to a relatively small audience or in cases where the revenue from the CPM or click-through does not adequately capture the value inherent in the digital work. Ad Models do also have a significant annoyance factor associated with them, so they are not entirely frictionless for the content consumer.</p>
<p>Any transaction system seeks to avoid high abandonment rates since a high abandonment rate will lead to much higher subscriber/user acquisition costs which will impact long-term cash flows and can be real killers when a company is racing to acquire new customers (as in high network effect environments).</p>
<p><strong>More detail on the friction creators:</strong></p>
<ul>
Transaction Cost: </ul>
<p>Transaction fees for credit card and online payment system transactions are typically comprised of a fixed cost per transaction plus a percent of the total transaction value. (Google Checkout has, at least temporarily, removed this friction by offering free transaction processing through 2008 as a part of the Checkout’s launch). https://checkout.google.com/sell The fixed cost per transaction sets a natural bottom for digital content pricing.</p>
<ul>
User Time/Annoyance Cost:</ul>
<p> Users have a finite amount of time so a transaction system that fulfills a transaction with minimal time impact on the user should be favored. There is also a cost of user annoyance or frustration, which can lead to high abandonment rates, so systems must make the transaction as simple as possible for the user.</p>
<p>Here are a few of the digital content transaction models we have studied along with some pros and cons. While these are mostly web focused, they can apply to mobile and gaming environments we well.</p>
<p><strong>The Stored Account Model: </strong>Users sign up and store their financial information on the vendor’s system. Future transactions do not require users to re-enter their financial information.</p>
<p>Examples: Amazon, iTunes Store, Fresh Direct <img src="http://upload.wikimedia.org/wikipedia/en/8/8c/Freshdirect.PNG" alt="fresh direct" /></p>
<p>Pros:  Future transactions are time-efficient for the user since they only need to enter a user name and password, or possibly re-enter a subset of their purchase information for a transaction to occur. The advantage to the vendor is that they now have a &#8220;subscriber&#8221; that they can monitor and to whom they can deliver targeted recommendations over time. Once a user has put in the effort to sign up for system, they may be disinclined to spend time signing up with a competitor offering a similar service.</p>
<p>Cons: &#8211; This model presents a disincentive to execute the first transaction since additional user effort is required to establish an account. &#8211; The vendor still incurs a transaction cost each time a transaction is executed. &#8211; This model also requires that users reach a trust threshold with the vendor since the user’s personal information will be stored on the vendor’s system.</p>
<p><strong>Stored Value Model: </strong>The user funds an account such that there is one &#8220;real&#8221; transaction where the user’s money is transferred to the vendor account. Further transactions all occur completely within the system until the stored value needs to be refilled. The transactional efficiency of this mode can be calculated as follows: Initial transaction cost/number of internal transactions conducted = new per transaction cost.</p>
<p><img src="http://upload.wikimedia.org/wikipedia/en/8/8e/Linden_Dollar.jpg" alt="Linden MC" /></p>
<p>Examples: <a href="http://amiestreet.com/welcome">Amiestreet</a>,   <a href="http://www.secondlife.com">Second Life</a></p>
<p>Pros: After the initial funding transaction, there are effectively no transaction costs for purchases within the system. Users also have a switching cost since they will have to go through some amount of effort to get their money out of a system’s “currency”. There is some incentive for the user to exhaust the account which will drive future user interaction with the site.</p>
<p>Cons:  Users are hesitant to pre-fund an account unless a refund path seems to be low friction. Users must also be convinced that they will find enough content of value to exhaust the pre-payment amount. Please also consider the fate of <a href="http://en.wikipedia.org/wiki/BitPass ">BitPass</a> who attempted to build a comprehensive stored value system and ceasd operations in January 2007.</p>
<p><strong>A La Carte Purchase Model:</strong> User’s can visit a site and enter their financial information and make a purchase without having to join the site as a member.</p>
<p>Examples:  This is a typically an option on most commerce sites.</p>
<p>Pros: Buyers may be more inclined to engage in the first purchase since the time required to make the purchase is limited. This model is incredibly efficient when online payment provider systems (like PayPal or Google Checkout) are used.</p>
<p>Cons: This model does not provide any future incentive for the user to return since there are no future user efficiencies. The user will have to go through the same procedure again and again. Very little user affinity is generated with this model.</p>
<p><strong>Subscriptions Model:</strong>  Users pay a recurring amount for ongoing access to an ever expanding body of content.</p>
<p>Examples: Rhapsody, Yahoo! Music, HBO</p>
<p>Pros: There is little transaction cost friction especially when quarterly or annual renewal models are employed. Revenue is less variable. Subscription pricing also takes advantage of bundle pricing models. http://en.wikipedia.org/wiki/Product_bundling Sites can also introduce effective <a href="http://en.wikipedia.org/wiki/Switching_barriers">switching costs</a> (for example Rhapsody forces you to call to cancel your account which introduces a disincentive to cancel… a nasty form of <a href="http://en.wikipedia.org/wiki/Vendor_lock-in">lock-in</a>).</p>
<p>Cons: User setup time and decision making may be more complex since users typically have a series of “packages” to choose from. Users are also making a higher level decision about a body of content, rather than an individual content element. This can lead to higher levels of abandonment. There is also the “Homer Simpson” problem. (Homer was known to put restaurants offering all you can eat specials out of business by consuming every scrap of food. In the Internet media context, if all users were streaming music from Rhapsody for every hour of every month, data costs would quickly erode margins.) Compensation models for content providers may be complex or introduce fixed costs for the vendor. Users will require new content to be available on the system which may cause fixed costs (like storage) to go up steadily over time.</p>
<p><strong>Transaction Wrapping:</strong> Users who already pay for thing A can get thing B through thing A’s transaction system.</p>
<p>Examples: <a href="http://www.trialpay.com/">Trial Pay</a>, Mobile Provider vending (ringtones etc.), On Demand</p>
<p>Pros: These models eliminate many transactional setup costs by the user. One example is, Instead of having to pay On Demand for every pay-per-view purchase, the purchase just gets tacked on to the user’s monthly cable bill. This increases the potential for impulse buying since almost NO additional work is required for the user.</p>
<p>Cons:  this model requires a possibly complex relationship with another vendor. The primary vendor may impose a relatively high tariff per transaction, exposing the</p>
<p><em>A Cruxy Anecdote: </em></p>
<p>We have very much enjoyed developing transactional models for Second Life since it offers users a variety of low-friction ways to purchase digital content. Users can fund their avatar’s account and users can go around the Second Life virtual world buying digital content. Content can be purchased by paying a kiosk, another avatar or through real-world commerce web sites. We anticipate that users will be able to use Second Life to buy more and more “real-world” goods since this low-friction environment makes it an attractive transaction environment.</p>
<p>Second Life introduces another risk though since they have a market exchange for their “in-world” currency, the Linden.</p>
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		<title>Social Commerce at Ad:Tech 2006</title>
		<link>http://openideals.org/2007/05/15/social-commerce-at-adtech-2006/</link>
		<comments>http://openideals.org/2007/05/15/social-commerce-at-adtech-2006/#comments</comments>
		<pubDate>Tue, 15 May 2007 23:04:05 +0000</pubDate>
		<dc:creator>nathan</dc:creator>
				<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Strategy]]></category>
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		<description><![CDATA[The &#8220;Social Commerce&#8221; panel I spoke on Tuesday at Ad:Tech has been receiving praise as one of the best of the conference. I think it is deserved, though not due to any self-importance or coolness of the companies represented. The &#8230; <a href="http://openideals.org/2007/05/15/social-commerce-at-adtech-2006/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p>The &#8220;Social Commerce&#8221; panel I spoke on <a href="http://openvision.tv/blog/?p=94">Tuesday at Ad:Tech</a> has been receiving praise as <a href="http://burk504.typepad.com/medialandscaping/2006/11/social_commerce.html">one of the best of the conference</a>. I think it is deserved, though not due to any self-importance or coolness of the companies represented. The panel was great because everyone came ready to share their thoughts, learned lessons, and advice on how to engage social networks with tools for commerce &#8211; how to mashup the worlds of socialization with the traditionally closed silos of financial transactions.</p>
<p><a href="http://burk504.typepad.com/medialandscaping/2006/11/social_commerce.html"><img src="http://burk504.typepad.com/medialandscaping/images/dscf0251.jpg" style="float:left;"/></a></p>
<p>Much respect to <a href="http://compete.com">Stephen DiMarco of Compete</a> for employing a format which helped limit the all-to-familiar powerpoint abuse issues at most events like these. Each person was given one question to answer using one slide and about ten minutes of time. Everyone abided by the rules, resulting in useful information being shared with the few hundred strong audience.</p>
<p>According to the <a href="http://www.adtechblog.com/archives/20061107/social_commerce_is_king/">Ad:Tech blog post on the panel</a>, I said this at one point:</p>
<p>“Most social sites lean heavily on the audience to build the content and evangelize. To do this, he emphasizes exposing consumers to a deeper amount of content to encourage additional engagement.” Sounds good to me! I tend to go into auto-pilot mode when I get onstage, always saying interesting and sometimes profound things, but not really remembering any of it later.</p>
<p>Jeffrey Taylor, founder of Monster.com, and most recently <a href="http://www.eons.com/">EONS</a>, a sort of MySpace for the 50+ boomer crowd. Jeffrey seemed most excited to talk about how EONS is now doing infomercial style television ads, and how great the response has been. Apparently, its not as expensive as you think, and with his older target userbase, it completely makes sense.</p>
<p>David Andre spoke about the interesting work <a href="http://www.mallnetworks.com/">Mall Networks</a> is doing engaging with known brands such as NASCAR. Every major brand wants their own commerce site, social networking site, and more recently photo and video sharing site, and these guys are right in the middle of that trend, stopping corporate america from poorly reinventing the wheel, while building customer loyalty in all the right ways.</p>
<p><a href="http://www.yelp.com">Geoff Donaker of Yelp</a> demonstrated that if you give people something to do, around a topic they care about, they will go at it like gangbusters. It was also interesting to learn that Yelp started as a social workflow application &#8211; connecting people with needs to those who might be able to fulfill the goal (i.e. &#8220;I need a babysitter tonight &#8211; anyone?&#8221;) &#8211; would have been a great app! Now Yelp is squarely focused on user generated reviews of local services &#8211; restaurants, doctors, bars, salons &#8211; (&#8220;Where&#8217;s the yakatori joint in Manhattan?&#8221;) Think Citysearch, but turned on its head so the reviews are the most important aspect of the site.</p>
<p>I had great time meeting all of these gentleman, and was honored to speak alongside. Best of luck to you all.</p>
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