An Example Of How Business Professors Can React Quickly And Make Teaching Relevant And Timely

My post eBay Acquires Skype indicated some referral traffic from Professor Alex Brown at the University of Delaware, College of Business & Economics. Professor Brown appears to be using his blog to both 1) offer students an opportunity to express interest to cover and analyze the eBay-Skype deal in a marketing class and 2) point students to information and opinions about the deal in the blogosphere.

This is a good, and often forgotten, example of how professors can make their business courses very timely and relevant to students. It is also a good example of how professors can use blogging technologies to communicate with their students.

New Blog For Me At BusinessWeek Online MBA Blog Community

This entry has been reproduced from my 21Publish blog.

I have a new MBA blog over at BusinessWeek Online here.
I’m not only a vendor but also a user and participant in the community.
I’m personally excited that the MBA blog community at BusinessWeek
(* a blog community just being launched this afternoon on the 21Publish platform*) has turned out so nice
looking! Also very happy to see Clear Admit (one of the influential blog sites in the MBA world) and other cool MBAs early in the process of
signing up at BusinessWeek. Stefan has some personal words over at his blog
which are quite visonary and address end-user generated content. Kudos
to both the BusinessWeek and McGraw-Hill folks we’ve worked with to get
this done!

Services Offered

Freelance consultant. Provide both interim management and business strategy, marketing, and operations consulting services to clients. Specialty sectors include high-tech, software, services, and communications/telecom. Sample services include:

  • Outsourced management for growth-phase companies (business development & general management)
  • New business initiatives and product introduction
  • Operational diagnostics and change management
  • US market entry for international ventures
  • Business and marketing plan development

Post updated (March 2009).

Don’t Become An 80s Rock Drummer

"Don’t Become An 80s Rock Drummer" … These were the words of hall of fame drummer Dave Weckl (one of my favorite drummers) at his drum clinic in Texas last night.

There’s a lot of talk about specialization these days. Pick a niche and master it. Become the best in the world. There’s a lot of truth in this because people can’t master everything. Plus the professional market is very competitive these days. If you are not a master of something, there is increased risk of someone always beating you out.

Now for those who don’t know, Dave Weckl is one of the world-renowned fusion drummers. He plays jazz, rock, funk, latin, world music, etc. His comment about not becoming an 80s rock drummer was not at all a downplay on rock music. It was actually professional advice. There are many 80s rock drummers today that are unemployed. In essence when the rock music trend died, those who only played rock drumming got specialized out of existence. If you want to stay employed, Dave’s recommendation was that you need to be able to play all types of drumming styles.

In other areas, consider tennis. The old days used to consist of specialist players like John McEnroe that could serve and volley or Bjorn Borg that could play the baseline. Today, specialist players are nearly extinct, and all the pros are all-court players (i.e., can play serve and volley or the baseline). Or consider golf. Tiger Woods used to be just a long game player. He’s improved his short game tremendously. Guys like Phil Mickelson can play both the long game and a phenomenal short game.

So it seems that a case can be made for not specializing and becoming more of a generalist. Having diversity can be a strength too.

But before I go down that path too much, if one investigates Dave Weckl’s music in depth, he has a very signature style to his play, and his drum setup has a crafted sound. If one thinks about other commodity markets (such as haircut places), there can be some differentiation achieved by having different ambiance, etc. Supercuts differs from a high-end salon, say like Mario Tricosi’s. The essence of the difference is a difference in style.

Changing gears a bit, another noteworthy case to mention is crossover innovation and success. People like Tom Parks in the signal processing area took and over-an-under ladder theorem in mathematics and applied it to create equiripple digital filters used worldwide. People like Ronald Reagan and Bill Clinton became recognized for their communication abilities, one or both of them leveraging from the acting sector (depending on how you count things). People like the founders of Skype came from the P2P world and have changed how people look at the telcom space and the internet.

Now I’ve cut a few corners here on market structure and when specialist versus generalist strategies may be more effective in some markets versus others (sometimes it also comes down to how one defines a "market"), but I think there’s also a duality of truths. People both are and are not a bunch of pluggable parts in an organization.

Update: Dave Weckl also had another good saying. "How do you define young versus old? When does one become old? The answer: When one has to start paying bills. That’s when you become old. Experiment (in drumming) as a youth and when you don’t have to pay for things.

Good Post On Pay Per Call Internet Advertising

Anita Campbell has a very interesting post on pay per call advertising. I have never heard of this type of product before, but it definitely seems like something worthwhile to explore for small businesses (and businesses in general for that matter). This kind of product seems like it would help to eliminate click-through abuse as well as set the bar a little higher on screening customer prospects in certain biz models.

Merit Works In The Small But Not The Large

This is not a fact-based post. It is one based on opinion, anecdotal information, and little research. The post was triggered by a discussion I had with a close friend about advancing in a professional career within a larger organization.

We set the stage as follows. Should one rely on doing great or extraordinary work to advance, make sales, get recognized, etc.?

My general belief is that doing great work is necessary but not a sufficient condition. To win, one also needs to get the overall process and structure right. That’s why I say merit applies only in the small. You can win individual battles on the margin with merit. You have to get the structure right to win big, to win in the large.

As an example on career advancement and recognition, people should only plan on advancing so far with merit alone. At some point, a person needs to make deliberate efforts to factor politics, marketing, and sales into the equation. If a person doesn’t, of course he/she can still win, but I think a win in those circumstances would be in spite of an unfavorable structure. If a person doesn’t factor systemic items into the mix, he/she will be playing in the small and not maximizing the probability of success by playing in the large.

I’m not advocating playing politics or becoming a sleazy-style salesperson, but consider the following:

  • a very exceptional but quiet performer progresses nicely in her career, but a more vocal and good performer gets promoted to senior status because that latter one started to get "marketing top-of-mind awareness" with the manager overseeing the promotion
  • a salesperson selflessly helps a friend for many months, but never gets an introduction to the friend’s contact (who is desirable client prospect for the salesperson) simply because the salesperson did not follow a proactive, best-in-class process of asking to be introduced to the prospect
  • a rising star makes tons of good friends with co-workers, but only spends once a year mingling with the managers that have a say on promotion opportunities
  • another post I made which relates to the importance of structure over merit is here ("A Supportive Manager Outweighs All").

My recommendation is to preserve one’s key values but recognize when one is working in the small and ignoring the structure of a situation. Look for opportunities that are consistent with your value system and cultural norms but that align with the structure.

eBay Acquires Skype

From CEO Meg Whitman. Although I did not know there was 54 million Skype users (I neither follow Skype’s nor eBay’s operations closely), this number doesn’t change my initial impressions of the deal.

Update: Some financial info related to Skype in terms of 2004 and 2005 revenues. Pretty rapid growth in revenue since 2004 was $7M in revenue and 2005 is projected to be a $60M+ year.

Update: To clarify my position, I don’t buy the synergy play in terms of how the deal is valued and/or how financial value is created, but I do believe Skype is a great company. It is scary that the company could have been built that fast.

Update (9/13/05): Good analysis by Nivi on the eBay-Skype deal. As I mentioned before, I am on the same side of the fence that the deal is not about synergies (in the classic business use of the term). One question to ask though is whether there can actually be a VoIP monopoly that cannot be toppled. Consider how fast Skype rose to power. How big are the barriers to entry for this sort of thing? Can additional barriers be built up? What about raising the switching costs off of Skype? The Skype earnout (whether directly or indirectly) surely prices in some of the management team’s ability to create more barriers to competitors, but I’m not sure that’s the perfect insurance card for eBay. Did we manage to lock up all the smart Estonians in the deal too?

Update (9/13/05): Will Hsu (eBay) has a post on market reactions and movement related to the eBay-Skype deal. He also points me to a PDF that outlines eBay’s view on synergies. To be frank, I haven’t digested the file, listened to the press conference, etc. I did scan to see that the presentation draws a similarity of the acquisition to the PayPal deal which accelerated revenue by reducing buyer-seller friction. That said, I think that a lot of people were already using PayPal before the eBay deal hit, so the risks associated with acquisition were reduced and synergies could be "proven in" in some sense before a big chunk of change was plopped down. Plus, I think payment is a bit of a different animal, right?

Update (9/13/05): Good Infectious Greed summary of the eBay-Skype it slices, dices, chops thing.

Update (9/13/05): Phil Windley et. al. on eBay-Skype from slightly different angle on identity 2.0.

Update (9/23/05): Fred Wilson weighs in a third time.