Wednesday, June 24, 2009

Tools driving strategy…the new Dot-com model?

This morning I was walking over the parking lot to my college office and I came across a Craftsman screwdriver on the side of the lot. It had been run over a few times but was in good shape. I started to bend down to take it along when I realized that I had several screwdrivers of that size, including a Craftsman. I thought, “I already have enough tools.” My next steps to my office led to thinking about too many tools and then tool overload from a digital perspective. We are not just overloaded with information, we are beginning to be overloaded with tools. Keeping up FB, MySpace, Twitter, blogs, and wikis is a monumental task. The other day I came across the Carsonified page, where Carson basically keeps a log of all the many web services that exist. Admirable and necessary, but getting to be a bit overwhelming. Unfortunately, tool overload has led to poor strategic planning.

Following smart and insightful people on Web 2.0 platforms certainly makes me more engaged and knowledgeable. Occasionally, I have something to add to the conversation. I fear, however, that enterprises are implementing Web 2.0 tools without developing a cohesive strategy. Developing a strategy featuring Twitter, blogs, wikis, and web services is not the right path. Developing a strategy using Twitter, blogs, wikis, and web services is the proper way to proceed. The difference is monumental. Using these tools requires a strategy which has goals, objectives, and assessment. It typically starts with a goal that states “we want to use microblogging technologies to establish many-to-many relationships with current customers which will improve accessory sales by 20%.” This goal is followed by tactics, probably using Twitter coordinated with something like Cotweet, to begin the microblogging process. Experimentation with Twitter is a good thing. But recognize that Twitter is a microblogging tool and there needs to be a corporate microblogging strategy which includes coordination, tactics, assessment, and training.

Understand the difference between featuring and using. Using implies that the tools may change, are additive and sometimes transient, and that use is backed by a strategy which has concrete goals and objectives (and assessment). Featuring says that we are making decisions based on tools rather than strategy (aka tactics vs. strategy, if you have strategic planning experience). No one should base future decisions on tactics. You should base future decisions on strategy. Tool overload has obfuscated this simple dictum for some companies. The pace of Web 2.0 tool growth has made some companies shelve their strategic plans. Strategy still needs to drive tool decisions. Don’t let strategy be driven by tools. Don’t let people tell you that we’re entering a new paradigm and strategy is too slow. Don’t let it be dot-com paradigm ignorance all over again.

Monday, June 08, 2009

Why I do like Yahoo

I do not have Yahoo set as my homepage and generally only use the finance section of Yahoo. But I do think the company has value and a future. First, I really like Carol Bartz. She has a good interview at the All Thing D conference which makes it apparent as to why Yahoo pursued her management talent.

More than Bartz, however, is my gut feeling that we are focusing too much on search. I think, and have stated in this blog, that search is huge. Not just internet search, but enterprise search, which is going to explode in the next few years. Any type of search begins with a need, this is why search is such a good fit for the advertising revenue model. There is a lot more information needs beyond search, however. Think of all the viral, news, and tool information that you have acquired. Most of it did not come from search. Content is still king. Social networking is great for many types of information, but we still need content from trusted sources (not that my facebook friends are not trusted!). Communities are good at commentary, opinion, and ideas. Not always the greatest at journalism, facts, and even objectivity.

I think Bartz will optimize Yahoo's best assets through her ability to lead people.