Sunday, April 10, 2011

Taking The Quotes Out Of "Design Thinking"

Bruce Nussbaum, a design thinking thought leader and a professor of Innovation and Design at Parsons The New School of Design, recently wrote that Design Thinking Is A Failed Experiment.

He claims that:

"Design Thinking has given the design profession and society at large all the benefits it has to offer and is beginning to ossify and actually do harm."

Rubbish.

I would argue otherwise. Design thinking is not a catchphrase anymore, and that perhaps is an issue for someone like Bruce who wants to invent a new catchphrase to sell his book. When I tweeted his post, Enric Gili - a friend, co-worker, and a design thinker whom I respect - had to say this:


I couldn't agree anymore. I have learned, practiced, and taught design thinking, for living. I have worked with folks from IDEO, closely, very closely. I have mentored students at Stanford d.school and I live and breathe design thinking. I don't think of it as a method that goes out of fashion. For me, it's a religion, a set of values, and an approach that I apply to all things that I do on daily basis.

I have taken the quotes out of "design thinking".

Just as I don't get excited by the rounded corners and gradients of Web 2.0 I don't think of design thinking as voodoo dolls. To some, this appears to be a failure of design thinking. Design thinking has gone mainstream; it is not dead. What is dead is a belief that it's a process framework that can fix anything and can even cook dinner for you. Design thinking is an approach that codifies a set of values. Design thinking is not an innate skill. It can be taught, gained, and practiced.

"I place CQ within the intellectual space of gaming, scenario planning, systems thinking and, of course, design thinking. It is a sociological approach in which creativity emerges from group activity, not a psychological approach of development stages and individual genius."

Design thinking is ambidextrous; it advocates abductive as well as deductive thinking. The "design" in design thinking is an integrative discipline. As my boss used to tell me, you can't have Ph.D in design. Unless you're a smartypants clever clogs, it doesn't make sense. If CQ is a sociological-only approach, it fundamentally defies the inclusive and integrative values of design, which is a vital driver for creativity.

"It’s 2020 and my godchild Zoe is applying to Stanford, Cambridge, and Tsinghua universities. The admissions offices in each of these top schools asks for proof of literacies in math, literature, and creativity. They check her SAT scores, her essays, her IQ, and her CQ."

It's 2020 and IDEO has gone out of business and so is d.school. I am applying for a new job and they measure my CQ. I miserably fail at this CQ thing, perhaps. Do I care? Absolutely not. I have got my design thinking value system that may not be catchy to sell a book, but good enough to get my job done, spectacularly.

Creative Quotient? Give me a break.

Thursday, March 31, 2011

It's 1999 Again: The Bubble 2.0 And Talent Wars Of The Silicon Valley

I have been living in the Silicon Valley for a while, and sure enough I haven't forgotten the dot com days. A few days back, on my way to the San Francisco airport, I saw a billboard by aol advertising that they are cool (again!). I also observed that parking lots alongside 101 weren't that empty. I told myself "man! this does feel like 1999".



The smart people - entrepreneurs, VCs, and analysts - that I talk to, tell me that we're in a bubble. They call it Bubble 2.0. Perhaps, they're right. The company valuations are through the roof. Facebook is valued around $75 billion and Color, on the launch day, had $40 million in the bank. The angel, super angel, and incubator investment deal flow is bringing all the talent to the Valley and all these young smart entrepreneurs are working on some of the coolest things that I have ever seen. But, there's a talent side that I am worried about. What this influx of easy venture capital has ensued is companies waging talent wars. For companies such as Google, attracting and retaining talent has become very difficult. Facebook and Twitter are new Google and Quora is new Facebook. The talent acquisitions that worked in the past, such as Facebook acquiring Friendfeed, have started to fall apart since the founders realized that serial entrepreneurship is a much better option that allows them to control their destiny against trusting someone else's innovation engine.



I like the creative ways in which the start-ups try to attract the talent. When Google launched a sting operation against bing, they took the honeypot keyword "hiybbprqag" used in the sting operation to register the domain http://www.hiybbprqag.com and redirected it to the Google Jobs page. They received a few thousand resumes that week. I am seeing more and more creative techniques that the companies use to attract talent. The value proposition for a killer designer or a super-geek programmer to work for you has to extend beyond the basics in the valley. This is especially true under current circumstances where there is a stunningly short supply of designers and developers in the Valley.



The talent war is for real. It's easy to get money and get started on an idea, but a real success requires a great team composition that is not easy to achieve. But, that's the reality of the start-up world and we should recognize that the people are even more important than ever before. If you think retaining talent was hard, gaining talent is much harder. I also foresee that these new millionaires will most likely angel invest their money into new start-ups. This floodgate will result into more start-ups competing for talent and possibly with the marketing budget of the incumbents. But, then, if we believe, it's a bubble, it gotta burst one day, and when that happens, it won't be pretty.

Monday, March 28, 2011

Selling To Enterprise - Power Struggle Between IT And Line Of Business

During my several interactions with - CIOs, senior IT leaders, and Line of Business (LoB) heads - I have firsthand observed the power struggle between LoB and IT and a slow but continuous tarnish in their relationship due to cloud and SaaS offerings. IT and LoB work for the same company but they build their little and in some cases huge empires within a company. Even if the end goal of a company is to leverage technology to gain competitive advantage, they all have orthogonal goals that appear to be conflicting from the outside. In a negotiation, it's imperative to recognize that both parties never want the same thing. It's about getting to a deal that's a win-win situation. Regardless of the kind of ISV you represent and who the buyer is, I suggest you make the both - IT as well as LoB - work in your favor.

The ISVs that typically face these challenges fall into one of these three categories: 1) On-premise vendors that sell into IT find it difficult to compete against SaaS vendors selling similar solutions to LoBs 2) SaaS vendors that primarily sell into LoBs find it difficult to get pass IT 3) On-premise vendors aspiring to sell on-premise as well as their new SaaS solutions to LoBs find lack of relationship with LoBs challenging. Not only the ISVs need to understand which category they belong to, but they also need to understand the conflicting goals between LoB and IT and have a strategy and a solution to overcome that. It's not black and white and there's no prescriptive approach. It does vary across customers, their IT maturity, industries, and regions.

The LoB is always about time to value. They want a solution today and they want it now. This is the reason SaaS has a compelling value proposition - nothing to install, no software to purchase, and relatively shorter implementation cycle - to serve the LoBs. On the other hand, IT wants governance, risk management, and integration. They see SaaS solutions as silo one-off solutions popping up everywhere in the company, keeping the CIO up in the night. IT sees technology and LoB sees solutions. This is also a function of how IT operates. I have seen many different variations of the same thing. If you have a clear value proposition for LoB, do cater to them, but don't bypass IT. It's tempting, but don't do it, instead make them your friends. Bypassing IT might help in the short-term but eventually you will run into issues.

I would recommend a few things:

Help IT scale: If you believe that IT wants control and hence wants to do everything on their own, you're most likely wrong. It turns out that IT doesn't mind at all if business can perform certain functions in a self-service way, as long as the IT is ensured that they have underlying control over data and (on-premise) infrastructure. The private clouds are flourishing for very same reasons. This is great news for on-premise vendors that are struggling to sell into IT with dwindling budgets. Focus your innovation on simplifying IT landscapes and making on-premise deployments more self-service for LoBs. For SaaS vendors, this is where you win over the on-premise vendors by providing instant value to an LoB and giving IT control over data security, governance, and integration.

Don't compete based on price alone: I have heard many times that compete based on price and you will win, regardless of whether IT or LoB is a buyer. Competing based on price could be a good thing, but it's not everything. Personally, I have observed quite a few bake-off situations and learned that price alone does not determine the final outcome. The IT as well as LoB do look for things beyond a vendor offering a cheap solution. If you're expensive, you need to have an end-to-end value proposition that is far better than your competitor and if you're cheap, you have to be cheaper by a magnitude to the second cheapest competitor for a customer not to ignore you. Also, the on-premise and SaaS offerings have not-to-easy price comparison since they have different CapEX/OpEx models resulting into potentially different TCO for a customer.

Follow the money trail: IT and LoB have their own budgets. Traditionally, on average, IT spends 80% of their budget on "keeping the lights on". The rest is spent on "innovation" or "strategic projects". While this is a broad generalization, this could vary from customer to customer. The most progressive CIO that I have so far worked with has the exact opposite number - 80% on innovation. As a vendor, not only you need to understand who has the power to write a check, but which bucket has the most money left with the least hoops to jump through. In some cases, IT has chargeback (to business) models and LoB-sponsored projects. Follow the money trail and understand the aspirations on both sides and position your solution accordingly. If there's no pain, there's no gain. Spend time on finding the biggest pain-point and a budget to fix it instead of educating a customer that they may have a problem.

Happy selling!

Monday, February 28, 2011

Making The Cut To Favorite Cloud, SaaS, And Tech Bloggers

The Dealmaker Media has published a list of their favorite Cloud, SaaS, and Tech bloggers. Once again I am happy to report that I made the cut. I am also glad to see my fellow bloggers Krishnan and Zoli on this list who are the driving force behind Cloudave. I was on a similar list of top cloud, virtualization, and SaaS bloggers that they had published in the past.

Under The Radar is one of the best conferences that I go to. This is the best place for disruptive start-ups to pitch an get noticed. They make a great attempt to connect entrepreneurs with investors and blogger like me. I have blogged about the disruptive early stage cloud computing start-ups as well as the disruptive start-ups in the categories of NoSQL and virtualization. Most of these start-ups have either had a good exit or have been doing well. The best example so far is Heroku's $212M exit. I met the Heroku founders at Under The Radar a couple of years back.

I am looking forward to soaking up even more innovation this year!

Wednesday, February 23, 2011

SaaS And Inverted OEM Channels

One of the things that I love to do: keep meeting the entrepreneurs to better understand the market and the challenges that they face. Recently, I met an entrepreneur that I highly admire. His company has SaaS components that other ISVs would OEM. Let's say, you are an ISV that would OEM his components and his company goes out of business. What are your options? We had a great conversation on SaaS escrow. Turns out that there is no real good solution. There are a few SaaS escrow solutions that ensure that the customers get their data back, if the company were to go out of business, and they also offer partial business continuity solutions. However, they won't be useful in this case.

One thing that he mentioned got stuck in my mind. He said, during his on-premise days (sigh!), the companies that OEMed his software wished that he goes out of business. The ISVs had his software working anyways and they won't have to pay him anymore. The same story is very different in the cloud. It's an inverted OEM model. If you're a SaaS ISV, you will do everything to make sure that your OEM partner stays in business for your and your customers' business continuity.

I have covered SaaS escrow before, but the solutions that are currently out there aren't perfect, and the OEM channel model makes it worse. The entrepreneur I met is attempting to solve this problem in a very creative way. I cannot discuss the specifics, but I will give you an update once he is done. SaaS changes not only the way the companies make, sell, and consume software, but it fundamentally changes how ISVs and customers need to think about their business and ecosystem. The legacy on-premise thinking won't translate well into SaaS.

Friday, January 28, 2011

5 Tips To Become An Influencer On Twitter

I have been answering quite a few questions on Quora. The most recent one was "What are 5 tips to becoming an influencer on Twitter?" This post is a version of my answer on Quora.

Being an "influencer" means different things to different people, but I would attempt to describe this in the most general sense.
  1. Be unique: Twitter has very low signal to noise ratio. You don't get others' attention if you cannot differentiate yourself and your contribution. Be passionate about the topics that you care for and work hard to craft high quality tweets. Go through a brutal qualifying process to discard the weak draft tweets and post the ones that are of the highest quality. Treat your Twitter account as your personal brand and think what makes any brand stand out. As Seth Godin would say, be the purple cow.

  2. Be a great blogger: Let's not forget that Twitter is still a form of blogging; a microblogging. Ask yourself what makes a great blogger? Apply those qualities on Twitter such as extensive due diligence, passionate about your point of view, not afraid of picking up a fight when you think you are right, not afraid of taking criticism in public, ability to give constructive feedback, and importantly discovering, reading, and synthesizing the information. To blog and to tweet is the last mile to influence the people. There's plenty of legwork that happens before that.

  3. Converse with the influencers: Being surrounded by smart people makes you smart. This is not only true in real life, but it is also true in social media. Don't just follow the influencers, but try to understand why they are the influencers. Retweet their posts with your insights, thank them, and reach out to them with interesting stories, insights, and comments. Also, make an attempt to meet them in real life at tweetups and other networking events. At times, they are more open to meeting people than you might think.

  4. Hashtags: I cannot overemphasize the importance of following and tweeting the live events. Follow a few conferences remotely such as #tcdisrupt or #sxsw and be part of weird memes such as #lessambitiousbooks. Also, try following obscure events. This is how you will discover interesting people and people will discover you. Follow up with people, that you like, after the event. Don't be afraid of self-promotion as long as you are humble and adding value in the conversations and interactions.

  5. Cross-channel pollination: Twitter is one of many social media channels. Author your own Tumblr or Posterous blog, answer questions on Quora, post interesting pictures on Flickr and Instagram, and importantly, use the channels to direct people to follow you on Twitter. There are many different ways people find other people to follow on Twitter. Use the low impedance nature of Twitter to your advantage by converting all the social media interactions to have rich conversations with them on Twitter.
You don't have to be an influencer in real life to be an influencer on Twitter. In fact, that's exactly the point. It's all about Twitter as a channel that empowers simple human-beings, that are not influencers of any kind, to do amazing things and become an influencer. Justin is a great example. He found Twitter and used the medium for what it was good for. Now, he has a book and a TV show. On the other hand, Eric Schmidt has 54 tweets but has 2.34 million followers, as of 01/27. I don't think of him as an influencer on Twitter. Is he an influencer in real life? Hell, yeah. There are also people like Padmasree and Chamillionaire that have effectively been using Twitter to amplify and extend their great influence in real life to social media.

Friday, January 21, 2011

Drupal On The Cloud, Beyond Content Management

This post is co-authored by Manish Garg and Chirag Mehta

Drupal is widely recognized as a great content management system, but we strongly believe that Drupal offers a lot more than that – a framework, a platform, and a set of technology – to build and run enterprise applications, specifically on the cloud. This post is an attempt to explore the benefits and potential of Drupal on the cloud.

Elasticity

One of the last things the customers should worry about their websites is the performance degradation due to sudden spike in the traffic. For years, the customers had to size their servers to meet the peak demand. They overpaid, and still failed to deliver on promise, at peak load. Cloud solves this elasticity problem really well, and if you are using Drupal, you automatically get the elasticity benefits, since Drupal’s modularized architecture - user management, web services, caching etc. - is designed for scale-up and scale-down on the cloud for elastic load.

PaaS

If Heroku’s $212 million acquisition by Salesforce.com is any indication, the future of PaaS is bright. Drupal, at its core, is a platform. The companies such as Acquia through Drupal Gardens are doing a great job delivering the power of Drupal by making it incredibly easy for the people to create, run, and maintain their websites. This is not a full-blown PaaS, but I don’t see why they cannot make it one. We also expect to see a lot more players jumping into this category. The PaaS players such as phpfog and djangy have started gaining popularity amongst web developers.

Time-to-market and time-to-value

Drupal has helped customers move from concept to design to a fully functional content-rich interactive website in relatively short period of time using built-in features and thousands of modules. Cloud further accelerates this process. Amazon and Rackspace have pre-defined high-performance Drupal images that the customers can use to get started. Another option is to leverage PaaS as we described above. The cloud not only accelerates time-to-market and time-to-value, but it also provides economic benefits during scale-up and scale-down situations.

Application Management

The cloud management tools experienced significant growth in the last two years and this category is expected to grown even more as the customers opt for simplifying and unifying their hybrid landscapes. With Drupal, the customers not only could leverage the cloud management tools but also augment their application-specific management capabilities with Drupal’s modules such as Quant for tracking usage, Admin for managing administrative tasks, and Google Analytics for integration with Google Analytics. There is still a disconnect between the native cloud management tools and Drupal-specific management tools, but we expect them to converge and provide a unified set of tools to manage the entire Drupal landscape on the cloud.

Open source all the way

Not only Drupal is completely open source but it also has direct integration with major open source components such as memcached, Apache SOLR, and native support for jQuery. This not only provides additional scale and performance benefits to Drupal on the cloud, but the entire stack on the cloud is backed by vibrant open source communities.

Security

It took a couple of years for the customers to overcome the initial adoption concerns around the cloud security. They are at least asking the right questions. Anything that runs on the cloud is expected to be scrutinized for its security as well. We believe that the developers should not explicitly code for security. Their applications should be secured by the framework that they use. Drupal not only leverages the underlying cloud security, but it also offers additional security features to prevent the security attacks such as cross-site scripting, session hijacking, SQL injection etc. Here is the complete list by OWASP on top 10 security risks.
Search and Semantic Web

One of the core functionally that any content website needs is search. Developers shouldn’t have to reinvent the wheel. Integration with SOLR is a great way to implement search functionality without putting in monumental efforts. Drupal also has built-in support for RDF and SPARQL for the developers that are interested in Semantic Web.

NoSQL

The cloud is a natural platform for NoSQL and there has been immense ongoing innovation in the NoSQL category. For the modern applications and websites, using NoSQL on the cloud is a must-have requirement in many cases. Cloud makes it a great platform for NoSQL and so is Drupal. Drupal has modules for MongoDB and Cassandra and the modules for other NoSQL stores are currently being developed.

Drupal started out as an inexpensive content management system, but it has crossed the chasm. Not only the developers are trying to extend Drupal by adding more modules and designing different distributions, but importantly enterprise ISVs have also actively started exploring Drupal to make their offerings more attractive by creating extensions and leveraging the multi-site feature to set up multi-tenant infrastructure for their SaaS solutions. We expect that, the cloud as a runtime platform, will help Drupal, ISVs, and the customers to deliver compelling content management systems and applications on the cloud.