Tag Archives: Reality checks

Sharing Isn’t Caring

Suppose you are depressed or maybe you want to quit a bad habit – smoking, for example. Well, of course, there are apps to help you fight depression or to quit smoking. Maybe you want a discount on your car insurance so you agree to install what the industry calls a “telematics device.” As one report explained, these things report when the car was used, distance driven, and time spent driving. They also want to know how fast a driver typically drives and any incidents of hard braking, both of which are indicators that the driver takes risks and doesn’t pay attention. Finally, and perhaps most controversially, the devices can track a car’s location.

Since you’re a fairly literate person, digitally speaking, you know the apps collect some data and obviously so does a tracking device. What you don’t know is what happens to the data that the apps collect. If you go through the app’s privacy policies (you know – the thing you clicked through when you signed up), you’ll probably find that the developer might share data with third parties. And, in fact, a study just released shows that of 36 top-ranked apps for depression and smoking cessation available in public app stores, 29 transmitted data to services provided by Facebook or Google, but only 12 accurately disclosed this in a privacy policy.

Does this concern you? It should. It is not difficult at all for someone who has “non-PII” – anonymized personal information – to trace it back to a real person with a name, address, and other information. How many auto insurance companies also offer life insurance? How many share data – even anonymized data – with health insurers. And wouldn’t those health insurers love to know if you think you’re depressed, as would a life insurance company? Am I paranoid? Yes indeed, and you should be too.

As it turns out, while many of us are more wary about what companies are doing with our data, we’re still not DOING much about it. As eMarketer reports, Internet users are clearing cookies and sharing less on social media. Ad blockers continue to gain popularity. But nearly one-third of US internet users are still willing to sacrifice privacy for convenience.

Clearing cookies, using a VPN, making sure that apps don’t get permissions that they don’t need (why does a flashlight app need your contacts?), and other things can help but at the core of this issue is many companies’ philosophy to beg forgiveness than to ask permission. They have a laser-focus on making money and are woefully blind to their users’ concerns. That’s what really concerns me. You?

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Filed under Helpful Hints, Huh?, Reality checks

Your Ideas Suck

One thing I’ve done over my decade in consulting is to go to tech events. Many of these attract dozens of budding entrepreneurs as well as we consultant types who are always on the lookout for a new client. Inevitably, as you’re making small talk and new connections, someone will tell you about their earth-shattering, world-changing brilliant idea. All they need is some seed money. Most of the time, their ideas…well…suck. Let me explain why.

First of all, they can’t explain the problem that they’re solving. They have a vague idea of who might have the problem but they can’t really explain what the problem is since they’re not the customer. Then they can’t exactly explain how they’ll scale – how they will attract a large enough customer base to get them to positive cash-flow and profitability. Lastly, they can’t explain the revenue model – how they will monetize the enterprise.

Major suckitude, in other words.

If you can’t explain how your idea takes in someone’s money – an investor’s or a customer’s – and spits profit out the other end, you’re in big trouble. An idea isn’t a business, you see.

One thing I’ve learned in consulting on franchises is that a lot of food franchises want you to have some food experience. While specific industry experience is less of a requirement in other categories, having relevant experience is a huge help everywhere, even if it’s just demonstrating skills that can help in your new business. If you don’t have the basic skills you need to germinate your idea – leadership skills, sales skills among them – or relevant industry experience, you are going to fail. Was that mean? OK, it was mean, but your idea still sucks because you are hanging it out there all on its own with nothing to support it. No money. No experience. No skills.

By the way. Most people who have been around for a while (your potential investors and others) can figure out very quickly if your buzzword-laden pitch is BS. Dressing up your sucky idea with a fancy presentation laden with jargon is lipstick on a pig.

What ideas don’t suck? The best businesses come from someone trying to solve their own problem and having the business acumen to grow that solution into something that can benefit others if the problem is a big enough one. There is a plan to make money, acquire customers, and generate a profit. Got an idea with those things? THAT doesn’t suck!

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Filed under Consulting, Reality checks

Something Could Be Gaining

I was watching TV last night and on came a commercial break. There were 5 commercials in this pod along with a couple of promo spots for the network I was watching. When the pod was over, something dawned on me and that has prompted today’s thought.

Not one of the five companies that were advertising was in business a decade ago. Every single one of them was digitally-based and every single one of them was disrupting an existing business sector.

There was an online realtor who would buy or sell you a house without using a local agent. There was the online employment site that would find you a job and serve as your headhunter. There was a site that would pack your pills into individual doses and mail them to you, no trip to the pharmacists needed. The next company would book your next vacation and notify you if now was not the optimal time to book.

I wonder, a decade ago, if the pharmacists thought that they would be threatened by a company that could fill prescriptions in a way no drug store could and at prices that are reflective of their no physical outlet cost structure? Why bother going on interviews with headhunters when you can post your resume and let the algorithm find you interested employers? Why spend on a recruiter when you can have candidates screened electronically and only see the best?

Satchel Paige is quoted as reminding us “Don’t look back. Something might be gaining on you.” I think that’s optimistic. If you are in any business these days, something IS gaining on you and they may be the advertisers whose commercials you watch as they go by. Disruption is a fact of business life and unless you’re thinking about how your business could be replaced, you’re missing the boat.

Make sense?

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Filed under digital media, Reality checks, Thinking Aloud