Stay Golden, kid: Meet The 20-Year-Old Millennial Making A Living Off Facebook

I love stories like Koby Conrad who is hustling and growing his hemp business on Facebook (uh, it’s growing like a weed?). There are so many good, smart little businesses grinding it out and supporting jobs. I wish more of the business press would focus on this kind of story (a la “Bootstrapped and Profitable” from 37Signals.)

He’s a kid with limited technical expertise, who is using the Internet to build a fast-growing, small business.

He’s the kind of hustling, hard-working person the experts say doesn’t exist in his “millennial” generation.

“Everyone always tell you to be scared,” he says.

“Be scared of things going wrong, be scared of things not working, be scared of the people you meet online, but no one ever tells you that it could all actually work.”

via Meet The 20-Year-Old Millennial Making A Living Off Facebook – Business Insider.

Managing Startups: Best Blog Posts of 2013 | Platforms and Networks

Managing Startups: Best Blog Posts of 2013 | Platforms and Networks.

This is about everything you need toread for the next couple weeks. Tremendous resource for anyone thinking about working in a “lean”, “agile”, “fast”, “iterative” or whatever mode.

Meta comment: Eisenmann’s blog is a great, living reminder of the power of blogs. With all the focus on shorter, faster, more ephemeral media (i’m looking at you Snapchat, instagram, Twitter), it’s very worthwhile to reflect on the core idea behind blogs, blogging, great posts and the whole concept of publishing for an audience.

 

True Big Data / The Atlantic Wins Journalism

If you want a good example of what “Big Data” really means, it’s this. “Big Data” isn’t just “shit ton of data”, it’s “amazing and proprietary insights that could only come from very creative analysis of a shit ton of data that only we can get our hands on”.  So, stop referring to your little facebook data project as “big data”.

And, for what it’s worth, the Atlantic just showed you what’s possible when you cross a curious journalist with a hacker’s mindset. So very cool.

 

Using large teams of people specially trained to watch movies, Netflix deconstructed Hollywood. They paid people to watch films and tag them with all kinds of metadata. This process is so sophisticated and precise that taggers receive a 36-page training document that teaches them how to rate movies on their sexually suggestive content, goriness, romance levels, and even narrative elements like plot conclusiveness.

They capture dozens of different movie attributes. They even rate the moral status of characters. When these tags are combined with millions of users viewing habits, they become Netflix\’s competitive advantage. The company\’s main goal as a business is to gain and retain subscribers. And the genres that it displays to people are a key part of that strategy. \”Members connect with these [genre] rows so well that we measure an increase in member retention by placing the most tailored rows higher on the page instead of lower,\” the company revealed in a 2012 blog post. The better Netflix shows that it knows you, the likelier you are to stick around.

via How Netflix Reverse Engineered Hollywood – Alexis C. Madrigal – The Atlantic.

Why Didn’t Honeywell Invent Nest? The Value of Purpose

Evidently, Nest is worth a couple billion dollars in the minds of investors. That company didn’t really exist a couple years ago, but investors see the potential and Nest is a good example of how a purpose-lead company can spark new growth by reimagining old businesses.

But there are higher risks, of course, with hardware-focused products like Nest, compared to software-only investments, due to the more costly ramp up for such products. But said one investor, “This is a company that could change how we live our everyday lives,” noting the tight integration with mobile phones was a key step in the evolution of such devices.

via Nest Raising Huge New Round From DST, Valuing Smart Home Startup at Upwards of $2 Billion | Re/code.

Why didn’t Honeywell invent Nest? There is no doubt the halls of Honeywell are filled with incredible technologists. They have installs in god knows how many homes in the US and around the globe. Is it because their business model is so heavily focused on resellers and contractors? Is it because they forgot what business they are really in (e.g. “we’re in the comfort business” vs. “we’re in the thermostat and electronics business”). Is it because the actual product would have cannibalized the rest of the line? Perhaps the actual Nest product wouldn’t have been a big enough opportunity for a 72Billion dollar company. Finally, perhaps the leaders at Honeywell have a really healthy and profitable thermostat business already in place and didn’t see a chance for a significant change in their growth curve from real innovation from their core products.

Here’s a clue,  from Nests “about us” page that reveals how purpose guides their approach: 

About_us___Nest

Simple. Beautiful. Thoughtful. They’re focused on “unloved” things. They know no one loves their thermostat.  But, their purpose is to make things you’ll reconsider and then fall in love with. It’s a design approach and a laser focus on the consumer mindset. They are an end user oriented company that has empathy as their core lens. Tech, coding, sales, marketing and everything else come afterwards. Rethinking old problems to help consumers is core to their culture.

Now, check out Honeywell’s “About us” page (actually, there are a number of Honeywell “About us” pages. This one is for their consumer products):

About_Us_-_yourhome.honeywell.com

While it’s great that they are customer focused, it’s pretty clear that their customers are NOT consumers. They’re focused on resellers, builders, etc. They are designing products they know their real customers will buy, not products consumers are going to fall in love with.

Business school students will be reading case studies about Nest for years to come. It’s going to be interesting watching Honeywell’s response. Not only do they have a product challenge, but they are going to have a business culture problem, as well. They can compete on technology, but will they be able to get over the internal cultural barriers that will make it difficult to truly put the consumer needs first? Will they be able to reconnect with their core purpose as a way to re-orient their product and marketing efforts?