June 2009 Archives

2,5 years ago as I was experimenting with viral marketing on Youtube I decided to tape this video to understand the process. Badly recorded, done in one go, no editing. 

The video viral success took me by surprise. In 3 months it was being used around the world by developers to convince management why they should use agile methodologies. The Agile Alliance and other sites linked to it.

I started getting some feedback and comments. I was shocked with the first negative comment I got: "What a load of crap!". It took me 3 hours to recover. I kept going back to it and thinking "why do this guy think this is crap? Maybe I could have done it better, etc"

And then I realized the following: in the Internet if you want to be relevant you are going to annoy people. And people have a fast, public way of annoying you back. I got used to it and I actually welcome it. And, as my mother would say, it builds character.


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In the good old days enterprise software vendors could sell vaporware. In the good old days you could throw enough money at a deficient product or service and you could actually sustain sales growth. Dissatisfied people could be contained in isolated pockets and companies staged carefully rehearsed case studies and testimonials. You could lie effectively.

This is no longer possible. Today if you try to sell a deficient product or service, the prospective customer will find a negative review buried deep in an obscure blog, written by someone who experienced your product pain, firsthand. A couple more of these public comments and you are toast.

The Internet has made the cost of lying unbearable. If your company has a bad DNA, i.e., you lie to your employees, screw your suppliers, mistreat your customers or you simply don't care, that underlying corporate culture will surface in the web slowly but surely. You cannot contain the bad episodes that will pop out of your deficient culture.

So the only way to be on the Internet for the long haul is to be honest and open. Remove the marketing bulls**t  from your site and say it like it is. Don't oversell. And don't hide stuff. Or lie. People will get disappointed. And disappointed people create bad rep. 

Finally a world where you can be honest and come up at the top. And not feel dumb about it.

Internet SMEs

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A friend of mine had a small business reselling business copiers and printers in Évora, in the interior of Portugal. After 5 years of battling he folded in, selling his business for peanuts. The reason? Big corporations and the Internet. In his words "I cannot compete with these [big] sites that sell printers at such a low price".

What my friend did not realize was that behind some of these "big" sites, there are usually very small operations. This is the beauty of the Internet as a business medium. As long as you act respectfully, honestly, fast and urgently you can pretend you are big. And for all purposes you are big.

If you are a small regional entrepreneur being wiped out by global competition you need to start thinking along these lines. Before, you contracted global products and sold them in your local market. Now you should focus on contracting local goods (or local skills) and sell them globally. Ask the questions: Does your region provide something unique that tourists always buy when they go there? Do you have a set of local people with uncommon skills that your local market cannot exhaust?

The opportunity is to be the conduit between local supply and global demand. Use your local knowledge to establish supply relations and use the Internet to get in touch with your new dispersed, global market.

Pain is good

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You got laid off. You're sick and tired of working for companies who embarrass you in the marketplace. Maybe it is a good idea to start a business of your own. But what?

When you are stuck coming up with an idea for a new business, think about pain. Is there a group of people that has some pain and needs relief? Most of the time the pain is not obvious. It is like one of those ongoing backaches we have had for years and which we got use to. You have to look beyond the obvious to the non-obvious. And then think about a service or product that works as an aspirin.

Getting a plumber in Lisbon is a challenge. Not finding one, mind you. That is not the pain. The pain is getting one to arrive on time, within a range of 15 minutes. They will tell you they will be there "in the morning" or "after 3pm". They keep you wondering and make you waste a vacation day waiting at home _ that is pain. So the aspirin here is creating a plumber service that will avoid you having to waste a vacation day. If you are like me and all my neighborhood you will pay a premium for time.

Find the pain. And then, only then, think about the cure.

I have been thinking on whether situated software happens in the enterprise. And I figured out that it not only happens but it is a common occurrence. It occurs at the edge of the enterprise, inside departments where business people know themselves and their processes very well. This software is primarily driven by the business outside the scope of IT departments.

The problem with a lot of these situated apps is that they tend to grow. As they grow, the scope of their reach increases sometimes encompassing other departments, accumulating more operational data and becoming more mission critical. At a certain point this software is no longer situated. It is now more general. And the business no longer wants to manage it. It as now become the responsability of IT.

Solving this evolution from the edge to IT, from situated software to robust, scalable software is something that has never been addressed by the IT vendor community. A case in point is Microsoft Sharepoint, a platform where departments can create their own apps but which rapidly becomes an IT maintenance nightmare as these apps evolve. At OutSystems we stumbled on the solution of this problem. I believe a lot of vendors will follow suit. 

If you are interested in understanding how OutSystems did it, drop me a comment.

I stumbled on this piece from Clay Shirky on situated software. Interesting notion: as you decrease the size of the user target base your (social) software can leverage the non-tech links that exist in these micro communities and create services that are not possible if you consider a traditional large scope Web Application (target at a large amount of users).

Applying this to the Long Tail of Software, this situated software exists at the very end of the long tail. Software that is further down the tail than that I can only see the software that you build for one person. Which in a way is an extreme case of situated software.

By Paulo Rosado

Besides my daily job as CEO of OutSystems , I occasionally help entrepreneurs grow their businesses and avoid obvious mistakes. I have also tricked some folks in listening to my opinions on Management, High Tech, IT and life in general.
twitter.com/paulorosado

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