Tuesday, October 27, 2009

Websites vs. Web presences

In a discussion with an old colleague yesterday, I realized that she and I would advise a client looking to build a web presence for the first time completely differently.

She would go down a brand-marketing path: spend time selecting a good company name, carefully-design your unique selling proposition, write elegant marketing copy and integrate it into thoughtful layout, prune-down and focus your copy, being sure to get it all correct before going live.

I would advise them to do the opposite: publish small chunks of super useful information, now and often, making sure that search engines and social media services found them, relegate a traditional website to the 'nice-to-have' category and don't worry about integrated content and design since most of the content will be separated from design anyway.

My logic went like this: people don't enter websites from the top anymore, they enter them from the side. If you don't *already know* the name and pedigree of the organization, you Google keywords about them, or stumble over a post on someone's Facebook page or a blog you follow. If you had to pick, a 'high velocity' brand in the social media-sphere will get you more bang for your buck than a beautiful, elegant website.

Her point was that no one has time to read blogs, and that one's blog consumption level is directly related to the amount of spare time one has. Search engine optimization is all well and good, but without a professionally-designed website, anyone clicking through will dismiss you as not being legitimate. In fact, the organization should be discouraged about having high lead-to-client expectations - websites are required baselines for doing business in this day and age, and it doesn't pay to mess with them.

After debating the two approaches for a while, we concluded that both are valid, of course - in fact, should be part of a unified approach - but that one might be emphasized over another depending on the organization. In other words, established companies looking to expand their well-known brand within reasonably defined markets should emphasize brand marketing and websites; young brands without much of a following should concentrate on getting the word out there by travelling the engines and social media pathways.

Thursday, October 22, 2009

The On-Demand CTO


In this day and age, not everyone can afford a full-time technology executive on staff. But just because one can't afford it doesn't mean one has to do without.

The On-Demand CTO gives you the right balance: someone who has taken the time to understand your business, is available when you need them, has no vested interest in pushing a product, and won't cost you an arm and a leg.

Here's how it works:
- Get to know your CTO ahead of time. Make sure the individual you're considering "fits" culturally with your organization, and exhibits a genuine interest in your challenges. Someone experienced in your direct industry is helpful, but most C-levels learn quickly, and sometimes an "outsider" perspective can be of use.
- Sign an engagement letter and NDA. This doesn't cost anything.
- Get your CTO acclimated. Let the CTO set up a series of conversations and site visits to meet with the individuals involved in your business - executives, managers, employees - to get up to speed. Depending on the size and complexity of your business, this can take days or weeks, and can be billed either hourly or on a flat-fee basis.

That's it. Now you have a trusted ally you can go to for technology issues. That can be a quick phone call, attendance during planning meetings, preparation of proposals, assistance with technology vendor selection - even project management or hiring oversight. Your CTO can be an experienced name on a business plan or a trusted voice for a Board presentation.

Traditionally you'll get billed by the hour, like an attorney. If you're engaging them for a specific plan or proposal or project, they may be willing to work on a flat fee basis. If you don't need the input, you don't use them.

Thursday, October 8, 2009

Raising Money from Angel Investors

I just returned from a 128 Innovation Capital Group meeting at a hotel on Route 128 in Boston. Turns out that I had attended one of their sessions more than ten years ago when raising money for my last startup WebOnTap, Inc. I know this because when I showed up at the venue my nametag had the WebOnTap name on it instead of my Augmented brand - a company name that hasn't existed since my partner and I sold the company to Endurance International (nee Bizland.com) back in 2000.

I used to attend a lot of these back in my earlier startup days, and I was struck by a few interesting things.
  • The average age of the attendees was at least 20 years older than I remember. Maybe it was my personal myopia at the time, but I could have sworn that the majority of folks in attendance in 1998 were people in their late 20s trying to start the next Ebay and hustling for money. That was at the height of the dotcom boom, of course, so I'm probably somewhat correct in my recollection. This event was much more mature (literally). For proof, during the "stand up and introduce yourself for 15 seconds" part of the meeting virtually no one exceeded their allotted time. Remarkable - I remember that little exercise taking *hours* back in the day.
  • Presenter Chris Sheehan (a managing member of CommonAngels, an angel funding group in Boston) laid out a process for approaching angels that had changed little since I last paid attention. The big difference was that Mr Sheehan acknowledged that initially getting in front of angels was almost always a function of working a personal network, and not of a compelling plan, per se. This was true last time I tuned in to the process, but Mr Sheehan acknowledged it up front this time.
  • I was also struck by the fact that there seemed to be many more angel groups out there than I recall, and that most seemed to have their act together. Last time I was involved in that world, angel groups almost didn't want to tell people that they were out there, let alone how to work with them (probably to filter out all the dreck that they were getting). I'm sure they get dreck now, but either less of it or they're better at screening after submission.
The entrepreneurs I spoke with were familiar, of course. Enthusiastic, starry eyed by the enormity of their ideas, and talking way too fast - probably because they were afraid I'd lose interest quickly.

For the record, I met Van Garrett of allmealdeals.com - a fascinating concept where small restaurants can offer short-term promotions on meals, which can then be distributed to you via Twitter or SMS (I'm now a subscriber). Tai Chan of Smargineering.com was pitching a novel mobile payments system, and Dave Belfer-Shevett was putting together the company around a homebrewed conference attendance application he's designed. It felt like old times.

But in one way it was markedly different: I'm not raising money. For me, this time, I didn't have that sense of tension and pressure that comes from having a payroll to meet or rent to pay or a pilot marketing campaign to get out the door. I may get back and do that again, possibly soon, but for now I got to sit back and watch without any real agenda - just interesting people and interesting ideas.


Thursday, October 1, 2009

Implementing What's Already Out There: The On-Demand CTO

Nothing New Under The Sun
At London's Great Exhibition in 1851, the following inventions were on display: the fax machine, the dot-matrix printer, the digital copier, the disk drive, programmable computers, and e-mail. All these technologies were essentially the same in principle as their modern day equivalents, but used no electronics to function. It took more than a century for them to mature and become the devices we would recognize today.

Frederick Bakewell's fax machine (which he called the 'image telegraph') traced the dimensions of a picture with a needle, converting the image into a series of electrical on/off signals, which could be transmitted over a telegraph wire and reproduced remotely. After 1851, his technique was improved and commercialized, but never achieved wide acceptance, eclipsed by the expansion of simple telgraphy, the telephone, and later, radio.

Effectively, the Bakewell device was also a dot-matrix printer and digital copier, since it interpreted images on a simple binary grid and could output multiple copies after a single 'scan.' People familiar with the long streams of connected printer paper used to print posters for parties in the 1980s will no doubt recognize the output of Bakewell's device.



Barlow's Double Jacquard Loom used a series of cards stitched together into a long strand, each one punched through with holes. Pins on the device dropped into the holes, which controlled which arms of the loom and allowed patterns to be reproduced accurately. Whether a pin was in the up or down position was effectively binary information, and the storage on punchcards therefore used the same principle as modern disk storage technology.

Barlow's loom used principles similar to those of modern computing, in that instructions could be read from a storage device to control the disposition of a machine.


By 1851 electrical telegraphy was a well-understood field, capable of sending coded text transmissions over wires. At the Great Exhibition communications were displayed that had been received from over 200 miles distant, and the undersea cable from Britain to France was completed as the Exhibition ended. A telegraph message essentially converts simple text into coded electrical signals (Morse code being the most familiar to us) which can be transmitted, relayed, and stored for later reading. The fact that human beings and paper were used at certain points in the process was simply evidence that the technology hadn't matured yet. In principle, this was e-mail. In 1851.

In short, then, the principles of these incredibly practical technologies were already present more than 150 years ago. Many of them, like the telegraph, proceeded to be improved and enhanced in the years that followed, transitioning (from the perspective of history) seamlessly into today's technologies. Others languished or developed more slowly.

The Thankless Job Of 'Making It Work'
Once the principle was demonstrated, however, the creative mind could see quite clearly where these technologies were headed. This was solidly true in the Victorian era, where great breakthroughs in invention were made in almost every field in the early part of the 19th century, but took much longer to mature and gain widespread use and acceptance. Steam technology, materials, biology - the story is the same in almost every field. After the initial discoveries, the rest of the Victorian age was simply the story of people taking those breakthroughs to their logical conclusion. Individuals like Bakewell and Jacquard get credit for the invention of the machines, but generations of individuals followed them, making their original ideas work better, refining them for a specific use, or simply integrating them into the fabric of a business or organization.

We are living through a similar time today. Most of the major breakthroughs in technology took place several decades ago - computing, materials science, gene theory. Creative minds in the mid-sixties foresaw the Internet, composite ceramics, DNA databases, or at least saw the trends and extrapolated into visions recognizable today. The implementation of earlier ideas is, of course, often more difficult than originating the idea itself, because doing so must take a much broader set of conditions into effect: financial realities, markets, operational complexity, to name a few. The truth is that the challenge for the vast majority of today's businesses and organizations, especially when it comes to technology, is not coming up with new ideas but in implementing existing ones. One doesn't need to invent social networking, one just has to figure out how to use social networking to one's advantage.

But as simple as that sounds, that's a very difficult job. Not only must one invest the time and energy to understand the landscape of technology ideas already out there, scrutinize different solutions already in place by competitors and comparable organizations, and understand the wide range of financial and practical considerations inherent in any business or organization, but one must do that while somehow running your business day-to-day.

A tall order.

Whose Job Is Technology?
Now, one could spend the time and money to hire someone to do nothing but that - a Chief Technology Officer. Many organizations of sufficient magnitude do precisely that. But most others can't afford it, and make do with one of three situations:
  • senior managers try to do the work alongside their day-to-day responsibilities
  • managers rely on junior employees to research, suggest, and even implement solutions for the business
  • managers rely on salespeople from technology vendors to design solutions
Given the fast-moving developments and broad scope of the technology world and the increasingly time-intensive requirements of any manager's direct responsibilities, the manager-intensive solution is, at best, a hit-or-miss answer to the problem. Few have the time to do justice to it, even if their personal predilections make it intriguing or fun, rather than tedious.

While junior employees often have the time and enthusiasm to explore technological solutions to business needs, they seldom have the experience, breadth of vision, or access to information to be able to craft pragmatic solutions, let along embed them in longer-term strategies that can be implemented over time. Enthusiasm is not a solution for experience.

The worst possible solution is to put ones business in the hands of vendors with a vested interest in their own products. While these individuals often have the knowledge and resources to make the process seem effortless, one cannot deny that their motivations are not directly the success of your business or organization. They will claim it is, and with some justification, but in the end they don't work for you, and don't have the incentive to give unbiased opinions. Worse, many vendor representatives often repackage 'off the shelf' solutions and present them as customized plans, using their expertise to convince you that their solution applies to you. One size does not necessarily fit all.

The On-Demand CTO
What managers in today's small and medium-sized businesses need is someone they can turn to whose job it is to focus on the innovation-implementation problem. Ideally that individual has the following characteristics:
  • Has immersed themselves in modern technologies in a practical, hands-on way
  • Has broad business and operational experience, so they can tell the difference between pipedream ideas and ones that will make a real difference
  • Has no vested interest in one technology or set of products
  • Is available only when needed, for planning or evaluation or execution
  • Delivers both rapid verbal advice and detailed, concrete deliverables, depending on what's needed by the business
Finding the right person, who not only possesses these characteristics but with whom you can work as easily as you would with another senior manager, is part of the challenge. But it can be done, and the rewards are significant.

Michael Sattler is the Principal of Augmented Industries, Inc., a firm specializing in technology leadership for startups and established businesses. His three previous startup businesses and successful fifteen year track record as a senior technology executive give him a unique perspective on technology implementation challenges.