Why business fail while others boom?

The death of most business is indifference. 

Companies fail because no one cares: not users, not employees, not investors, and certainly not the media. It’s death by a thousand shrugs. 

Why did the number 2 IT training company - New Horizons in Australia die last week - after 20 years of being the best franchiseeof the USA New Horizons Franchise? Why has the DDLS shareholders shareprice dived from 50c to 12c in the last 3 years since they purchased DDLS for $4.9m after it was previously sold for over $11m a few years before?

My view is what they are doing is stale, old and not focussed on their customers and certainly not focussed on their stakeholders. 

When you have Product Zietsgeist  , the product resonates with users not because it’s better, but because it feels extremely culturally relevant at that particular moment in time for a particular group of people. 

Users want it to win. Maybe because they hate the competitor with the “established ” product. 

Maybe it’s because the NextTech product appeals to a particular value or aspiration. 

Regardless of what drives your business -  it’s an unfair advantage that can separate winners from the also-rans. 

Product Zeitgeist Fit (PZF) we Call it the NextTech Fit (NXT)  is when a product or service resonate  with the mood of the times. 

What makes 

• users and employees want you to win
• investors want to invest 
• media and trend watchers want to write about you and 
• big companies want to but from you ?

What makes some things work, and others just don’t. 

It helps explain why something that seems really weird and awkward, like letting a total stranger sleep in your house, can become a global phenomenon like Airbnb , and why something that seems really clever, like a private social network, just don’t… yet. 

And it can help explain why a concept like online pet food delivery can blow up in a bad way in one era, then blow up in a really good way 15 years later.

When you’re riding the nexttech revolution, you’re able to activate the energy  from the four players that can change the trajectory of  your company:

• Advocates
• Engaged Employees
• Investor Base
• The tight media media 

When these four groups care about what you’re doing, impossible things suddenly become possible. It gives you the momentum to get started.

How do you get first users and first capital 

What’s the secret?

The fact is that people need a different motivation to try something new, something that connects with them emotionally rather than functionally. 

And let me tell you - know one cares how much you know until they know how much you care.

So here are a few PZF  examples that have grown by being in the right time at the right place.

Crypto

The financial crash in 2009 caused much anger and lack of trust Against the banks was palpable. 

As the decade went on, there was growing momentum to do something about those large platforms and companies that adversely affect our experiences and societies. 

It gave crypto the energy, excitement, and funding to get the flywheel spinning. There have been a lot of attempts at internet money before, but it was only in 2009 (when the Bitcoin whitepaper was published) that we really found that spark.

In the comments section of Bitcoins first code (above) Satoshi embedded a message about the financial bailouts. Though a precise motivation is unknown, the ethos around mismanagement of the traditional financial system fueled a lot of the enthusiasm around crypto in the early years. 

But here’s the thing about crypto - it’s still not that easy to use. Despite that, people are still using it, building on it, investing in it, and writing about it, allowing it to hold product zeitgeist or an NXT fit as it moves toward product market fit.

Clean meat

The revolution against climate change and the moral and ethical issues of industrial farming has boosted the idea of a veggie burger. 

The timing of the NextTech revolution is right 

But has anybody actually tried one of these burgers? Some are okay; some are (subjectively) disgusting; and there are open questions about the health benefits of them. 

Despite that, people are still lining up to buy them, talented scientists are still working on it, investors are still funding it, and big companies are still trying to partner with them. It’s not better than meat—yet—but it’s got a great chance to get there thanks to NXT product  - https://bsivc.blogspot.com/2019/11/meat-free-meat-raises-35m-from-blue.html

4 tests to spot  NextTech Product 

• “Nerd Heat”: Coined by my partner Chris Dixon, this is when the most talented, hardest working, and most in-demand people—the product managers, engineers, and data scientists—are so intrigued by a product that they’re working on it, and ate excited, enthused and engaged trying to make it work - to move it beyond the fringes to the mainstream. 

• The “Despite Test”: When people are using it  despite the fact that it’s not that user friendly or, in some cases, that it’s straight-up terrible (see examples above). It shows that the product has a line into something emotional, not solely functional. Wanted, not just needed.

• The “T-shirt Test”: If people with no connection to the company are wearing their t-shirts or putting their stickers on their laptops or wearing their socks, that  desire to associate with the idea indicates as much a movement as a product. 

• The “Eyebrow Test”: it’s when the people who have been working on those products, are so clearly elegant, and passionate - and.can see the imperfections  and problems as easy fixes 

The NextTech revolution is often   organized around a really compelling villain. The innovator and disruptor. They talk about why their  company matters, not just what it does. Their product remains authentic and outstanding and product decisions are connected with the mission. 

This is the NexTTech Mission 

“To help you create your generational legacy through 

Collaboration, Learning and Growth”

The team are  as connected with these ideas as the leader is

Because if you can get the PZF you’ve got an unquestionable advantage in getting your product or service global and scalable.

In Summary

Look for the things that are broken and terrible but that people still really care about.  

Look for the four tests: the raised eyebrows, the T-shirts, the nerd heat, and the people that are still using a product, despite its shortcomings. 

Look for the things that are reacting against the previous generation and resonating with the mood of the times. 

Ultimately, that’s where the NextTech future lies.

Join us at our next Nexttech Forum www.nexttech.edu.au

Inspired by 

D'Arcy Coolican's Summit talk "The Allure of Product Zeitgeist Fit". - Andreessen Horowitz

https://go.a16z.com/TRXQH0s0h000XEz00MHsIR0

Cybercrime can cause a midsize firm to go out of business

Mid-market companies may not think they are a target for cyber crime, but they are actually at the top of the list.

According to the October 2019 EYGlobal Capital Confidence Barometer, The 2 biggest fear that middle-market companies the have about cybersecurity is 

1. reputational damage. 
2. Second on the list is operational disruption.

This is no surprise, given the harm that cyber attacks have caused to many large brands around the world. 

 Those mid sized firms with between US$50m and US$3b in revenue — should be concerned about the reputational damage an attack can cause.

The EY Global Capital Confidence Barometer asked mid-market firms about their biggest barrier to using data as a competitive advantage: 27% said exposure to cyber threats is the biggest barrier, second only to increasing regulation at 28%. 

Lack of confidence in their security means they are afraid to monetize the data they have captured through channels such as customer profiling and targeted advertising.

They are also right to be worried about operational disruption, given the size of the potential financial impacts. And mid-market firms should be much more concerned than they are about all the different impacts of cyber attacks, as they are more vulnerable compared to larger organizations and typically have insufficient defenses. 

Cybercrime can cause a midsize firm to go out of business

The highly sophisticated, ever-changing nature of cyber crime makes it nearly impossible for mid-market companies with scant resources to keep abreast of the threats.

Many attackers aim to use mid-market firms as Trojan horses for attacks on larger companies. Targeting massive companies is relatively more difficult, because these organizations usually have dedicated cybersecurity teams and systems, so an easier way to attack them is through their suppliers.

 For example, an attacker might try to plant malicious code in the supplier’s application, which will then find its way into the larger company via their business relationship.

Although a breach of this nature would generate more negative publicity for the larger company, the mid-size company would likely suffer reputational and financial damage, as the companies it supplies may cancel contracts and blacklist it. It might not be as public, but it will be financially painful. In a worst-case scenario, this disruption could cause the mid-size firm to go out of business.

Another problem is that insufficient cyber defenses are leading some companies to lose competitive advantage. 

Large vulnerability

Every mid-size company we talk to knows that cybersecurity is an issue. But the size of the threat, and the time and resources needed to defend it, are major challenges for them. 

Many don’t have the funds or human capital to deal with the constantly shifting technologies involved.

This is exacerbated by an industry-wide deficit of cybersecurity talent, which leads mid-market companies to have a less informed understanding about what security and controls they need. Talent in cybersecurity is much rarer compared to systems implementation, development and maintenance.

Consequently, there are not enough people with the right skills to provide companies with customized advice at affordable prices, or even respond to issues. There is also insufficient data available to help mid-size firms establish the right levels of control.

A mid-market company should integrate cybersecurity requirements across the organization as they design their business and as they continue to innovate. 

Kris Lovejoy EY Global Advisory Cybersecurity Leader

Regional issues

Some regional variations surfaced in the EY Global Capital Confidence Barometer. For example, mid-market companies in China were more concerned about the threat of regulatory penalties linked to cybersecurity than those in other countries. 

This isn’t surprising, given the strict China Internet Security Law that went into effect in 2017.

 

Another regional issue we see is that most of the available cybersecurity budget and talent is in the US. In other markets — including South and Central America, the Middle East, Africa and Asia‑Pacific — these resources are much more limited. Considering that most of the world’s population lives in these areas, this creates a huge mismatch.

Also, many mid-market companies in the US and Europe use outsourced technology or support based in emerging markets, where there is limited cybersecurity talent or capability. In fact, much of the affordable technological innovation in the market now comes from such countries.

It is therefore relatively easy for attackers to bury or hide themselves in such small emerging-market companies and wait for a mid-market company to acquire their services. In this way, the mid-market firm can suddenly find that they themselves have been the victim of a Trojan horse attack.

Again, the mid-market companies we work with have seen this happening and know it is an issue. But they generally do not know how to respond, and they do not have a security plan fit for their businesses. In most cases, the robust cyber plan is developed and implemented after a breach.

The smaller companies that mid-market firms buy from are even less likely to have good cybersecurity. As a result, mid-market firms must be sure to check before buying any software or services, as well as before making any acquisitions of smaller companies.

Mid-size firms are often innovative, which tends to mean they rely on contract resources but do not always check the quality of the code they are integrating. Also, some assume that, when buying network connectivity, IT services and cloud applications, cybersecurity comes installed. But that is not necessarily the case. Such vendors can provide those services, but mid-size firms must check in advance before there is any integration of systems or data. In fact, they must not assume that any of their partners — whether core technology suppliers or not — has the right level of security.

Because of these vulnerabilities, we cannot emphasize enough how large a target mid-market companies present to attackers. If your company provides services to bigger companies — for example, updating hardware in smart meters — you may not think you are a prime target of cyber crime. In fact, you are at the top of the list. You must think about it less from a size or industry perspective and instead ask: “What risk do I pose to others?”

If your company provides services to bigger companies, you may not think you are a prime target of cyber crime. In fact, you are at the top of the list.

Ryan P. Burke EY Global Growth Markets Leader

Security by design

It’s clear that mid-market companies need to invest more in this area, given the size of current and potential threats. But it is not just about size of spend — there is not necessarily a correlation between investment level and security success. The organizations that are best prepared have made security part of everything they do. In other words, they don’t think in terms of a dedicated budget; rather, they design security inside every new product, procurement and business service from the beginning as a competitive differentiator. This makes their security much more efficient and means they will spend less over time.

They need the right advice to do this. Mid-market companies often lack the resources that larger companies have for cybersecurity. We therefore do not advise that they major in cybersecurity, but instead build relationships with partners who can show them what good cybersecurity looks like and help them implement controls and assess them regularly. In most instances, you can outsource or co-source many of these services today.

Don’t be afraid

Our most important advice on cybersecurity is to not ignore these issues or let them overwhelm you. Do not be afraid to learn and ask questions. 

That’s much better than waiting for someone to tell you what to do because you have been breached or because additional regulation has been forced upon you. Invest in software development and application security testing. 

Conduct additional penetration testing on your systems to identify your security gaps. Outsource (or co-source) core security services to trusted providers with the skill and capacity to protect your business.

Our experience with middle-market companies is that they are often reactive rather than proactive — they do not get serious about cybersecurity until after they have been attacked. 

But if they address these issues sooner, it will cost them far less in the long run.

Creativity is when the rubber hits the road

Knowledge is in abundance..... experience is inevitable.... as long as you exist, you will experience.

The rubber hits the road when you create.

So what is Creativity?

Creativity is the process of bringing something new into being.

Creativity is characterised by the ability to perceive the world in new ways, to find hidden patterns, to make connections between seemingly unrelated phenomena, and to generate solutions. 

Creativity is the ability to tap into your or your teams ‘inner’ pool of resources – knowledge, insight, information, inspiration and all the fragments populating our minds –  and to combine them in extraordinary new ways.

Creativity requires passion and commitment. You need to be able to take risks and progress through discomfort and failure  to get to the finish line.

The Chinese maglev bullet train - soon to be released

A bullet train which ‘floats’ above the tracks using magnetic levitation (maglev) could soon hit 373mph in China - making it faster than travelling by plane - 

Beijing to Shanghai takes  about 4.5 hours by plane, (including preparation  time) 5.5 hours by high-speed rail, and  will take about 3.5 hours with the high-speed maglev.

 A prototype of the maglev designed by China’s China Railway Rolling Stock Corporation (CRRC)  was shown off in the eastern Chinese city of Qingdao this week and is slated to go into production in 2021. 

It was the best of times, it was the worst of times

It was the best of times, it was the worst of times, 

it was the age of wisdom, it was the age of foolishness, 

it was the epoch of belief, it was the epoch of incredulity, 

it was the season of Light, it was the season of Darkness, 

it was the spring of hope, it was the winter of despair...

Charles Dickens' "A Tale of Two Cites" (1859)

Our world is witnessing internet and mobile  use and ubiquity, and there is a wave of change, both good and bad.

The Internet, 4G and 5G  is enabling People and Organisations to  transcend national borders and span the planet. 

These Organisatons are challenging  Nation-States as a way in which we humans are organising ourselves into global tribes.

Global company are negotiating with Cities and Countries for the equivalent of 'diplomatic immunity' in return for providing jobs and revenue from the incomes that their locally-based employees spend?

But is the power base still based on Countries and Ideologies?

As former Treasury Secretary Henry Paulson has written, “The battle is about whose economy will drive the technology of the future and set the standards for it.”

Why is USA banning  telecom-equipment giant Huawei saying the company is state-directed and could sabotage 5G infrastructure or use it to steal data?

China has set explicit goals of dominating such fields as artificial intelligence, quantum computing, robotics, and autonomous vehicles. Huawei is leading the 5G race as a clear winner... which is going to lay the foundation of the future of Internet of Things and the Digital Highway. 

Is there going to be a choice to back “China Technology” or “American Technology” or are people going to focus on backing the Organisation with the best product or customer service?

Chinese companies’ revenues now  account for only 25.6% of the Global 500 total, behind America's 28.8%. China is growing !!

President Xi Jinping has said that by 2049, the communist revolution’s centennial, China will be “fully developed, rich, and powerful,” a goal that China expert Graham Allison of Harvard says includes being “unambiguously No. 1,” with a military “that can take on and defeat all adversaries.”

Fortune’s founder, Henry Luce, famously declared in 1941 that the 20th century was the American Century.

Will the 21st century becomes the Chinese Century in the full sense—with China dominating culture, ideals, and concepts of human rights and human nature?

Or the Century of Global Corporations? 

Will we in fact have a full 21st Century and be able to combat Climate Change? 

This international power play reminds me of  a few ants fighting each other for the power of their colony, and so focussed on each other, that they don't see the boot above them that will stamp them into oblivion?? 

MAYBE IT WILL NOT BE ABOUT THE POWER OF NATIONS, BUT IN FACT THE ABILITY TO WORK TOGETHER TO SURVIVE AND THRIVE

It was the best of times, it was the worst of times, 
it was the age of wisdom, it was the age of foolishness, 
it was the epoch of belief, it was the epoch of incredulity, 
it was the season of Light, it was the season of Darkness, 
it was the spring of hope, it was the winter of despair...

Charles Dickens' "A Tale of Two Cites" (1859)

Bill Gates: Paranoia on China is a 'crazy approach' to innovation

Microsoft founder suggests 'objective test' of security claims against Huawei

MARRIAN ZHOU, Nikkei staff writer

NOVEMBER 08, 2019 04:39 JST

Microsoft founder Bill Gates says an objective test should be used to determine whether companies such as Huawei pose a security risk.  ©Bill & Melinda Gates Foundation

NEW YORK -- Microsoft founder Bill Gates decried the "paranoid" view fueling the current high-tech rivalry between the U.S. and China, telling an audience here Wednesday that trying to stop Beijing from developing innovative technologies is "beyond realistic."

President Donald Trump and many American lawmakers, both Republicans and Democrats, have voiced national security concerns over major Chinese companies such as Huawei Technologies. The global telecom equipment supplier was placed on the U.S. Commerce Department's Entity List in May, a blacklisting that restricts its purchases of American technologies.

"Huawei, like all goods and services, should be subject to an objective test," Gates said at The New York Times DealBook Conference. "The rule that everything that comes from China is bad ... that is one crazy approach to trying to take advantage of innovation."

The DealBook Conference is an event for innovative thinkers and business leaders to engage in discussions with Times journalist Andrew Ross Sorkin. 

The billionaire philanthropist said the U.S. and China should take advantage of each other's innovations, rather than turn against one another.

Microsoft has provided Windows source code to governments in the past, Gates said, and those officials became comfortable with the American company's products after examining the system. Huawei could adopt the same approach, he said.

When the event moderator said the Trump administration is unlikely to consider that approach as sufficient to solve security concerns, Gates replied: "Anyone with tech expertise would think so."

Ajit Pai, who chairs the Federal Communications Commission, said Tuesday that the U.S. must source equipment for new fifth-generation wireless networks from trusted vendors -- and that Huawei is not trusted. He outlined arguments to consider the Chinese company a security threat and urged American wireless carriers to avoid buying Huawei products.

But trust goes both ways, Gates said. If Washington does not trust Chinese tech equipment, why would Beijing trust American products such as a jet engine, which theoretically could be shut off remotely.

The mistrust extends to the crackdown on Chinese-born engineers as well. In May, the Institute of Electrical and Electronics Engineers banned researchers from its peer review process if they are "interacting with" Huawei, though the professional association reversed the decision days later. In June, the U.S. State Department cut the length of visas from five years to one for Chinese students of aviation, robotics and advanced manufacturing.

"If you are so paranoid, what about the codes that are being written by somebody whose grandmother or great-grandmother was Chinese?" Gates said. "Is there any piece of software in the world that you are willing to trust?"

The FCC in May voted to ban telecom provider China Mobile from offering service in the U.S. over security concerns as well. The agency intends to vote this month on removing and replacing Chinese equipment from rural American wireless carriers, which currently use equipment from Huawei or compatriot ZTE in their networks.

"You should use objective measures," Gates continued, throwing up his hands. "There are people born in foreign countries who write software, honest to God."

$1 Billion Clean Energy Investment

I received an email from our MP of Wentworth, David Sharma on Friday, who shared with me the Governments plan to invest $1 Billion into new capital investment into Renewables. I am encouraged by this initiative to embrace the technology available and market forces and work together with Industry, Universities and Research Institutions such as the CSIRO to making the transition to a lower carbon future, possible. Human-induced climate change is clearly a major issue "More Renewables in the grid requires more investment  — to keep reliability high and prices steady given the intermittent nature of solar and wind." said David Sharma - MP of Wentworth. As part of the Government's plan to make energy more affordable, reliable and clean, they are providing  the Clean Energy Finance Corporation (CEFC) with $1 billion in new capital to invest in reliable energy via generation energy storage, grid capacity, and network infrastructure. The fund will invest in the following  eligible projects: energy storage projects including pumped hydro and batteries transmission and distribution networks grid stabilising technologies, and eligible projects shortlisted under the Underwriting New Generation Investments (UNGI) program. Australia's deployment of Solar and Wind  It is a remarkable fact that Australia’s deployment of solar and wind energy is happening at ten times faster than the world average. In the first weeks of 2020, Australia will tick past 25 gigawatts of wind and solar generation, meaning we will have joined the "kilowatt per capita" club. Only two other countries have made it thus far: Denmark and Germany.  New technology, market forces and human behaviour are shifting our emissions curve in the right direction, as a report last week from the Australian National University makes clear. The ANU report found that “Australia’s world-leading per-capita rate of deployment of solar and wind energy is displacing fossil fuel combustion”, and that “continued deployment of solar and wind at current rates allows Australia to meet its Paris emissions target at low or zero net cost”.   As the ANU report outlines, the main challenge for government is to “facilitate construction of adequate electricity transmission and storage to allow continued rapid deployment of solar and wind”. The Government is supporting the following initiatives in Energy Transmission and Storage :-  Investment in Snowy 2.0, a pumped hydro storage project that will be the largest in the Southern Hemisphere, and which will store 350,000 MW hours of energy. Investment in the building of  a second interconnecter between Victoria and Tasmania, better connecting Tasmania to the mainland grid and giving us access to its considerable pumped hydro capacity. Earlier this week the Prime Minister and NSW Premier announced a joint underwriting of the New South Wales - Queensland interconnector, another vital piece of network infrastructure which will strengthen the backbone of the national energy market. The Chief Scientist, Alan Finkel, is working on a hydrogen strategy and advising us on how we can become a major exporter of hydrogen produced from renewable sources.  Down the track, they will be looking at options for further electrification of the economy, particularly in the transport sector, to take greater advantage of low-emissions energy. Our energy system is  in transition towards a lower carbon future, driven by technology, the continued decline in price for Renewables, and market forces. This is an exciting time to be living on this planet!