How Fast Does Google Index This Page? SEO 101? February 6, 2010
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When I post on Read Write Web, it is indexed by Google within minutes. That is no surprise as it is a high traffic blog with high Page Rank score.
But I was very surprised to find a post that I wrote on this blog indexed within 15 minutes. It might have been quicker than that. My method was crude:
- post
- some time later (in this case 15 minutes) Google the headline
So maybe it was 10 minutes? or 5 minutes? For this obscure long tail blog. Hey, welcome visitor, this is a really exclusive club, no riff raff here I can assure you. OK, maybe nobody here
My test # 1 was on this blog post:
http://bernardlunn.wordpress.com/2010/01/30/punk-manufacturing-the-next-industrial-revolution/
My Google search: punk manufacturing.
My test # 2 was on this blog post:
http://bernardlunn.wordpress.com/2010/02/06/blogging-as-a-useful-distraction/
My Google search:blogging useful distraction
Result: hours later, nada.
My test # 3 will be on this post. I am testing a theory. On Test # 1 I linked to Wired, a high Page Rank site. Theory: Google looks at links to determine how fast to index. Is that possible? I know nothing about how spiders really work.
So on this post I am going to link to Danny Sullivan. Methinks Google pays attention to him
Hi Danny, here is some random link love:
http://searchengineland.com/google-recommends-the-competition-on-your-place-page-35316
So, now I will post, wait a few minutes, Google and update this page with result.
10 mins: nada
Surprise: nothing on Twitter either.
But found lots of other people exploring this subject:
http://www.google.com/search?hl=en&client=firefox-a&rls=org.mozilla:en-US:official&hs=Wot&tbo=1&output=search&q=How%20Fast%20Does%20Google%20Index&tbs=qdr:y&ei=9-5tS_38A4nM8Qbhs4WQBg&sa=X&oi=tool&resnum=5&ct=tlink&ved=0CB4QpwU
Maybe it is about search popularity? Punk Manufacturing is obscure. How fast does Google Index is a big SEO concern. So maybe I am there but on later pages?
Tried as far as page 5: nada
Result of my test? Who the hell knows?
Blogging as a USEFUL distraction February 6, 2010
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Yes, I know, blogging is just a waste of time. Unless you are using it for a specific purpose, to promote something, why bother? For most bloggers, for the real long tail the reason is just:
because I love to do this
So why is it USEFUL? If you have a job, particularly if you have a start-up, you have to focus. The three things you have to do are:
focus, focus and focus
The problem is that all focus can make Jack a dull boy. You lose your intellectual sparkle. You get bored. Then you get tempted to diversify in your day job. And that will mess up your day job. Much better to satisfy your need for intellectual diversity in a way that does not distract from your day job.
For example, I am fascinated by emergence in business, by the declining power of large companies, by subjects such as punk manufacturing. But none of those are relevant to how I make a living.
I could just read about these subjects, but the way I learn about stuff is to read, write and then converse. So the act of writing brings clarity and then the conversations that result from that writing bring new information and insights.
In short, it is fun but also useful as a
SAFE DISTRACTION.
Punk Manufacturing – The Next Industrial Revolution January 30, 2010
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I love this article by Chris Anderson in Wired. It is great journalism. Who says media is in trouble? You just need great journalism that is brilliantly presented both in print and online. Easy! But that is not what inspires me to write today. The future of media is another story and much discussed (media folks love navel gazing). The future of manufacturing is a much, much bigger story. It is a huge part of the story that I have been trying to chronicle here and in my writing on Read Write Web.
Do read the whole Wired article. The stories are inspiring on many levels. Story telling is an important art and Chris Anderson does it well. What I want to do is abstract some of the trends that key off this world that Chris is chronicling.
The story is encapsulated well in the headline:
In the Next Industrial Revolution, Atoms Are the New Bits
Here are a few choice quotes (but really, read the stories, they bring this academic stuff to life):
Here’s the history of two decades in one sentence: If the past 10 years have been about discovering post-institutional social models on the Web, then the next 10 years will be about applying them to the real world.
This story is about the next 10 years.
Transformative change happens when industries democratize, when they’re ripped from the sole domain of companies, governments, and other institutions and handed over to regular folks. The Internet democratized publishing, broadcasting, and communications, and the consequence was a massive increase in the range of both participation and participants in everything digital — the long tail of bits.
Now the same is happening to manufacturing — the long tail of things.
Or as MIT professor Eric von Hippel puts it:
“Hardware is becoming much more like software,”
Chris touches upon the naming issue, always fun when something is as nascent as this. How a name catches fire is totally mysterious:
Blogger Jason Kottke wrestled with what to call this new class of entrepreneurship, these cottage industries with global reach targeting niche markets of distributed demand. “Boutique” is too pretentious, and “indie” not quite right. He observed that others had suggested “craftsman, artisan, bespoke, cloudless, studio, atelier, long tail, agile, bonsai company, mom and pop, small scale, specialty, anatomic, big heart, GTD business, dojo, haus, temple, coterie, and disco business.” But none seemed to capture the movement.
Being a wordsmith, I am going to make my attempts. First, a rather academic one, the sort of thing that can talked about in boardrooms and MBA classes:
Emergent Manufacturing
That is part of emergent business networks. But that is rather dry. It does not capture the wild creativity of the maker culture. So my preferred name is:
Punk Manufacturing
Yes that dates me a bit. Punk was an attitude from bands who were fed up with the old music status quo. It was pure energy and creativity, not recognizing barriers, just smashing through. In the dark economic days in London in the late 1970s, listening to the Clash play London Calling had that same visceral energizing, optimistic feel.
These are dark economic days in America. The squeeze on the people-formerly-known-as-middle-class is horrendous. We know that government cannot help. We know that big companies cannot help. In our gut we know that both are the problem, not the solution and we need to take care of ourselves. But doing what? When anything digital moves to free, you have to make something. This leads some people back to small scale farming, inspired by Omnivore’s Dilemma.
I can see huge numbers of people inspired to do stuff with punk manufacturing. I can see my 8 year old son who just loves building lego. I hope he will be able to lead a life, make a living, building cool stuff.
It is interesting that the Wired article came out in the same week that the Apple iPad dominated the news. Frankly, I stayed away from that party. But a few posts caught my eye. This one by Alex Payne bemoans the fact that iPad is closed, that it won’t allow the young hackers of today to do what an earlier generation did with early PC and Apple technology. This is the line that resonated with me:
The thing that bothers me most about the iPad is this: if I had an iPad rather than a real computer as a kid, I’d never be a programmer today.
I was going “yea, right on” as I read that. But after reading the Wired article, two other thoughts came to mind:
- Who cares? This is not where the action is any more. The PC problem has been solved. It works. Great. Move on. Use it to build/create something.
- Just do it punk! Don’t tell Jobs what to do. He won’t listen. It is his toy and his party. And he has usually been right from his angle at least. You don’t need Jobs. Build your alternative. That is the DIY spirit that Mike Arrington was working on with the Crunchpad. That did not pan out. But it could inspire many others to give it a go and one may have the user interface and design magic to make it catch fire.
The big picture for me is the resurgence of entrepreneurial creativity, not a few people creating the next Google. More like:
A million entrepreneurs now!
The ones who don’t worry about lack of credit, who see China and India as a resources and markets and not problems. The ones who have been told that they are just a punk and love to hear that.
This means the rollback of power of Big Coompanies. Chris has also been looking at Coase’s theories and how the Internet makes them relevant again. John Hagel has been showing how big American companies have been failing investors through declines in Return On Assets and how Chinese companies may show the way. The problem I have with John Hagel’s view is that he is attempting to teach elephants to dance, to teach Big Companies how to work like a network of small companies. That won’t work. The people running Big Companies like it that way and the transformation is too hard.
Big Companies will lose power to millions of small companies.
But I should re-emphasize that I consider John Hagel to be the leading strategic thinker on this subject. His work on emergent networks of motorbike manufacturers in China inspired Wikinomics and that inspired me to think again about stuff that I had almost forgotten about.
This is what I have been dimply perceiving and attempting to chronicle for a few years now in posts such as these:
- My original post on Emergent Business Networks in September 2007.
- Emergent Business Networks revisited.
- How decoupled is the innovation economy from the rest of the economy?
- Relocalization
- Distributed Mass Customization – Is Etsy The New EBay?
This is why the doom and gloom about America is wrong. Although the next few years will be difficult economically, no other country has the entrepreneurial spirit to seize the types of punk manufacturing opportunity that Chris describes.
The 103 SaaS Vendors In Our Survey January 15, 2010
Posted by bernardlunn in B2B Media, SAAS.add a comment
The initial survey results have been published on ReadWriteWeb. Here are the vendors we included in our survey:
| 37 Signals |
| AceMetrix |
| Acquia |
| Adaptive Planning |
| Appointments-Plus |
| Approva |
| ArcSight |
| AriaSystems |
| Athena Health |
| Baynote |
| Bill.Com |
| Birst |
| Blackbaud |
| Blackboard Inc |
| BoardVantage |
| Book4Time |
| Clarizen |
| Cloud9 Analytics |
| CMFGX |
| Concerro |
| Concur Technologies, Inc. |
| Constant Contact, Inc. |
| Corefino |
| cornerstone |
| CrowdFactory |
| Cybersource |
| Damballa, Inc. |
| Daptiv |
| Datacraft Solutions |
| DealerTrak |
| DemandTec |
| Demandware |
| EchoSign |
| Elastra |
| Eloqua |
| Ensenda |
| EventBrite |
| Five9 |
| Genius Inc. |
| GoodMailSystems |
| HireRight |
| HostAnalytics |
| InsideView |
| Intacct |
| Intuition |
| Jigsaw |
| jive Software |
| Kadient |
| Kenexa |
| Ketera |
| Lavante |
| LifeLock |
| Lithium Technologies |
| LogMein |
| Loopfuse |
| Marketo |
| MedeAnalytics |
| metricstream |
| mformation |
| NETSUITE INC |
| newvinelogistics |
| NTR Global |
| Oco-Inc |
| Perimeter eSecurity |
| PivotLink |
| ProfitKeeper |
| Quantum Whisper |
| Qube |
| Relenta |
| ResponseLogic |
| Retail Solutions |
| Right90 |
| RightNow Technologies, Inc. |
| Salary |
| SALESFORCE.COM INC |
| SchoolDude |
| SCI Solutions |
| Select Minds |
| ServiceMax |
| SignalDemand |
| Skillsoft |
| SlideRocket |
| SmartTurn |
| SocialCast |
| SPS Commerce i |
| SuccessFactors, Inc. |
| Syncplicity |
| Taleo Corporation |
| TimeBridge |
| TimeTrade |
| Ultimate Software |
| Varolii |
| Veeva |
| VFA |
| VisageMobile |
| Vocus |
| Websense |
| Xero |
| YouSendIt |
| Zendesk |
| Zoho |
| Zuberance |
| Zuora |
How Much Revenue Does Google Get From Apps? January 11, 2010
Posted by bernardlunn in Uncategorized.add a comment
That seems like a simple question? Wrong. Two authoritative sources peg the number at wildly opposite numbers:
BusinessInsider says $10m, based on “a source outside Google familiar with Apps”
SoftwareMagazine says $667m, based on a methodology that is not stated.
So, what is $657m ($667m minus $10m) between friends? Who cares? Well if you are an investor in SalesForce.com you might care to know who is the # in SaaS revenue (which at $667m is Google). If you are a VC investing in SaaS and mighty Google can only get $10m, you want to know.
I tried Twitter, Vark and LinkedIn to get more sources (as well as lots of Google and SEC time). All sources just reference these two extremes.
Software Magazine is quoting revenues for 2008 and is saying that Apps is about 3% of total revenue.
Let’s start with some base facts as per Google’s latest 10Q (page 23):
Advertising revenues made up 97% of our revenues for the three and nine months ended September 30, 2008 and 2009. We derive most of our additional revenues from offering internet ad serving and management services to advertisers and ad agencies and the license of our enterprise products, search solutions, and web search technology.
So, the Software Magazine number looks closer than the $10m. Phew! Hate to think about all that hype for $10m!
On latest quarter reported – Sept 3oth – that is about $720m. But that is wrong. What we really need is a breakdown of the non-ad revenue ie:
- internet ad serving and management services to advertisers and ad agencies
- license of our enterprise product
- license of search solutions, and web search technology.
So if we knew 1 and 3 we would derive 2 – the apps biz. Or maybe Google will break out the data for us in future?
URL Yard Sale January 11, 2010
Posted by bernardlunn in Uncategorized.add a comment
These are past their use by date. They are URLs that I booked with some idea in mind and I no longer have active plans for them. If this fits your venture get in contact by email (bernard dot lunn at gmail dot come). All reasonable offers considered:
doctorresearchnetwork.com
foodsorcerer.com
inostradamus.com
mdresearchnetwork.com
structuredcontentplatform.com
themainstreetweb.com
ventureprediction.com
10 Internet Biz Predictions For 2010 December 5, 2009
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Brave or foolhardy? My 10 Internet Biz Predictions For 2010 by Twitter. Self-imposed brevity.
# 1. The US economy will have another dip and unemployment will stay close to current levels. The creative part of creative destruction does not keep pace with the destruction part.
# 2.The stock market will be up for the year, despite some nasty moments and despite a lousy economy, as interest rates will remain low
# 3.Return of the Internet IPO. Media heralds the “golden age of the Internet” but we are all careful not to utter phrases such as dot com that recall funneling $100 notes into a furnace.
# 4.LinkedIn IPO is the poster boy for the return of the Internet IPO perfectly timed for the combo of a lousy economy and rising stock market.
# 5.Facebook does NOT IPO and there is lots of Blogosphere chatter trying to figure out why not.
# 6.Twitter is acquired by either Microsoft or Google for an amount that creates a lot of talk about a bubble.
# 7.VCs find it easier to raise money in aggregate. But almost all the real returns go to a very small number of firms and most struggle for a sustainable role.
# 8.25% of the financial services industry find work doing something different and some of them will be very successful and create a lot of positive impact.
# 9.Google’s stock underperforms a broader Internet stock index as pundits focus on their lack of advantage in the golden triangle of social + mobile + real time
# 10.Do Not Track legislation roils the behavioral marketing market and the smart bets on monetization move to transactions and subscriptions.
(yes to math folks, this version does not restrict to 140 characters, pre TwitEdit)
Online Transparency: Mega Wave Building Now December 3, 2009
Posted by bernardlunn in Web 3.0 Semantic, capital markets.Tags: data.gov, open university, transparency
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During the US Presidential election campaign, Google ran a series of amazing meet the candidates events that were broadcast online. They were the opposite of the sound bites on mainstream media. The candidates had plenty of time and were questioned by a highly intelligent audience. Barack Obama was one of the candidates (other ones worth watching IMHO are McCain and Bloomberg). There was one point that made me really appreciate the “audacity of hope”. It was when Obama was asked how somebody with so little experience in Washington could stand up to the special interest lobbies. His response (it is around 0.50 minutes on the video), which previewed what became Data.Gov, made my hair stand on end. Data.gov is real and in this video he describes the initial vision and mission.
Could Data.Gov Become Obama’s Greatest Legacy?
The question seems absurd. But listen to what Harold Wilson, Prime Minister of the UK for 8 years, described as his greatest legacy. Despite many high profile achievements at the pinnacle of power, dealing with big crisis and initiatives on the front page and prime time, he chose his work to create The Open University.
The Open University was founded on the belief that television and radio could bring high quality degree-level learning to people who had not had the opportunity to go to university.
At the time, the creation of the The Open University was lost amidst far more high profile news. But 40 years later all the high profile urgent stuff he worked on is simply material for the history books, while The Open University still has tremendous impact on the lives of millions by improving access to quality education.
Data.Gov will also take years to have a big impact. But it is a toothpaste out of the tube dynamic. Once the data is out, nobody can get it back in. And this is riding a massive wave of online transparency. There is no need to fight entrenched interests – just ride a massive wave that will effortlessly wash away those entrenched interests and lobbyists.
The Decline Of Asymmetric Information Intermediaries In Consumer Markets
Online transparency is about taking away the power of asymmetric information from an intermediary. We have already seen this play out in consumer markets. Buyers now have access to much better data about pricing and costs. The most notorious intermediary exploiting information asymmetry was the car dealer. That game has changed forever.
Cars, houses, travel and many other big consumer markets now have the consumer in charge. Good data and social ratings have changed these markets forever. These are the big and complex purchase decisions for most consumers. But the data is still totally simple compared to information about how laws are made in Washington and who influences how those laws are made and how they benefit from those laws.
The Big 3 Markets That Will Be Impacted By Transparency
These consumer markets are also really simple compared to these three big markets:
1. Scientific Technical Medical Publishing.
2. Capital Markets.
3. Healthcare.
The data that drives these markets is horrendously complex. And what happens in these markets really, really matters to all of us.
Enter Stage Right, The Semantic Web
The Semantic Web, the geeky guy that web 2.0 hipsters like to poke fun at, is about to enter the stage and finally has a big role to play.
The data complexity in these markets is overwhelming for a the “slap some HTML and Ajax on top of RDBMS” that is the de facto technical approach today. The best data modelers in the world cannot design upfront for these markets.
Obliterating Data Obfuscation
Software engineers use “obfuscation” techniques to deliberately hide the underlying code designs in order to prevent a user from making an illegal copy through reverse engineering. That is a reasonable objective. What is not reasonable is “intermediary obfuscation”, the deliberate obscuring of reality through layers of complexity and impenetrable jargon. Special interests use data obfuscation to protect their profits.
Three Powerful Forces Driving Transparency
We are now seeing three powerful forces driving transparency:
- Political will from the leader of the largest economy in the world.
- Consumers and B2B buyers expecting transparency from sellers and rewarding the sellers who deliver it with more business.
- Semantic Web/Linked Data technology that is increasingly mature with many passionate proponents seeking a prime time role for the technology. In the capital markets, XBRL is the key enabling technology.
Online transparency is a mega wave to ride.
CIOs Think XBRL Impact Will Be Big (But It Is Not High On Their Priority List) December 1, 2009
Posted by bernardlunn in Uncategorized.Tags: capital markets, cio, compliance, governance, risk, transparency, xbrl
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I have developed a journalistic habit – try to find THE STORY. It is valuable habit when sitting through long conferences. You can learn lots of detailed stuff at conferences but it is too easy to get lost in the trees and not see the forest.
The story at the XBRL Conference jumped out at me when I saw two slides from a presentation by John Van Decker of Gartner. This generated the headline:
“CIOs Think XBRL Impact Will Be Big (But It Is Not High On Their Priority List)”
Of course headlines and sound bites can suffer from a different problem – oversimplification. So take a look at the underlying data as shown in the presentation slides. Specifically look at: John Van Decker, Vice President – Corporate Performance Management and Financial Management Systems, Gartner in Beyond The Mandate. See slide marked: Technologies that will have major impact.
# 1 at 37.1% is no surprise: Web Oriented Software. Actually that’s a catch-all term that includes almost all the other categories
# 2 at 29% is the big surprise: XBRL!
Add in the related # 3 at 24.8%: Governance Risk & Compliance (GRC) and you can see what is keeping CIOs awake at night. Arguably, XBRL is a tool to enable GRC:
XBRL + GRC = 53.8%.
To put this in perspective, check out the % for some “hot” subjects:
- SAAS: 15.7%
- Enterprise Mashups: 6.2%
OK, so much for the first part of the headline:
“CIOs Think XBRL Impact Will Be Big”
What about the second part?
“But It Is Not High On Their Priority List”
Look on the next slide labeled: XRBL adoption is SLOW!
For those relatively new to XBRL, the 1,2 and 3 relates to the SEC Mandate, where 1 is the first wave of filers. My takeaways:
- There is a lot of work to educate the 3rd wave of filers. 72% cite “lack of knowledge” (and therefore, not surprisingly lack of budgets or technology).
- Nobody has provided a compelling use case beyond the mandate, so the 1st and 2nd wave filers are not doing more than they absolutely need to in order to meet SEC mandates.
For more basic intro to XBRL, see my recent post and links on ReadWriteWeb.
Talking To John Hagel About Emergent Business Networks November 29, 2009
Posted by bernardlunn in Globalization, capital markets.Tags: big shift, china, emergence, john hagel, partnering, return on assets, ROA
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John Hagel is one of the leading business strategists, author of The Only Sustainable Edge. I interviewed him back in July about the research he is doing at Deloitte into the dramatic and overlooked plunge in Return On Assets (ROA). When Deloitte contacted me again about some new data which dug deeper into ROA in different markets, I wanted to learn more about the background story. In conversation with John, the story emerged. The story is what big western companies can learn from Chinese companies about peer partnering in emergent business networks.
The Return On Asset Bombshell
The Big Shift research done by John Hagel and his team shows:
“U.S. companies’ return-on-assets (ROA) have progressively dropped 75 percent from their 1965 levels despite rising labor productivity.”
That is dramatic. If you had to select a single measure by which to judge the value delivered by a CEO, board, or management team, it would be return on assets. To quote from the Wikipedia entry:
“The return on assets (ROA) percentage shows how profitable a company’s assets are in generating revenue. This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control.”
And here is the bit that matters:
“Return on assets is an indicator of how profitable a company is before leverage.”
If you want to understand the financial meltdown that happened at the end of 2008, just think leverage, i.e. debt. Companies juiced up their earnings using leverage. They have been doing this more and more in the last 30 years.
What happens when you take that away? You get the return on asset bombshell that the Shift Index reveals. It is like taking steroids away from an athlete and then saying, “Now, how fast can you run 100 meters?”
Give Your Lobbyist A Bonus
In their latest research the Shift Index team looks at how this is impacting different industries:
“While virtually every industry that Deloitte examined has been impacted by the “big shift”, the first wave of industries currently feeling the most pressure include technology, media, telecommunications and automotive. They also represent a ‘canary in the coal mine’ for industries that have just started to feel the effects of the Shift Index, including banking, retail and insurance. Finally, the report also reveals that heavily-regulated industries like healthcare and aerospace & defense are the most insulated, at least for the moment.
The take way for investors? Place your money in markets where the government has erected the barriers to entry through regulation. The take way for companies in that fortunate position? Give your lobbyist a bonus!
But what if you work in technology and don’t think that regulatory barriers are either desirable or practical? You certainly need to do something dramatic if you look at the ROA data in your industry:
“In terms of the technology industry, the report reveals that a decline in ROA of nearly 70 percent, despite the highest gains in labor productivity in the U.S. This industry is also experiencing a level of competitive intensity that has magnified almost four-fold since 1965 and is 30% greater than in the rest of the economy.”
What Companies Are Showing The Way?
This all sounded rather gloomy. Deloitte is in the business of advising large companies. So I assumed that John must have some role models, some tech companies that were prospering in this hyper-competitive economy. Surely the only answer was not just “work in a highly regulated industry and hire a good lobbyist”?
Yes, John had some role model of tech companies prospering despite hyper intense competition. But their location surprised me. In the past the role models brought out by management consultants were almost all American, with an occasional European or Japansese company thrown in for good measure.
The role models that Jon mentioned where Chinese tech companies.
As A Historian I Should Know About Quoting The Source
When he described how they were working, it reminded me of the Chinese motorcycle companies that I had written about in my original post on “Emergent Business Networks“.
I mentioned that I had written about this earlier having been impressed by the story about Chinese motorcycle manufacturers in Wikinomics by Dan Tapscott. Oops! John told me that Dan got the story from him. As somebody who studied History at college, I should know better. So, by way of an apology, here is a link to John’s book – The Only Sustainable Edge.
Peer Partnering vs PR Partnering & Platform Partnering
These Chinese tech companies are “partnering” to build products way more efficiently than they could by creating everything in-house. Nothing new there you might think. Partnering is what we all do, right?
Partnering is perhaps one of the most overused and abused term in the business dictionary.
There are two predominant forms of partnership today:
- “PR Partnerships”. These are designed to make both partners look good and to get press but they don’t involve much real work or create significant revenue.
- “Platform Partnerships”. These are when a big company sets the rules in order to get small companies to create products for niche markets or to sell their product in niche markets. This is like calling a landlord/tenant agreement a partnership.
By contrast, the Chinese model is more like “Peer Partnership”. Each company is genuinely independent and each partnership is mission critical to both parties. This involves some hard-nosed negotiation.
Keiretsu 2.0?
Cynics might say “we have seen this movie before”. In the 1980s it looked like the Japanese model was going to dominate. Their networks of companies were called Keiretsu. The term became popular in the start-up world; Kleiner Perkins called their network of contacts a Keiretsu.
I asked John if the Chinese model was simply “Keiretsu with a Chinese Face?” John had clearly considered this and responded that the Japanese model involved equity cross-holdings (that’s why the model appealed to VC firms). The problem with that is that the equity position outlives the usefulness of the partnership. Rather than re-negotiating or ending the partnership, cross-holdings tend to lock them in well past their “sell by date”.
Chinese Jiu Jitsu
Necessity is the mother of invention. Chinese companies have grown despite lacking two critical things that we take totally for granted in the West:
- Intellectual Property (IP) protection
- Well developed capital markets.
The Chinese firms turned these weaknesses into advantages through their approach to partnering – classic Jiu Jitsu.
Large American companies may need to learn some of these tricks. We are entering an era that looks a lot like emerging markets when:
- Intellectual Property (IP) protection is threatened by the “perfect copy machine” of the Internet and the consequent move to open source, open data and open everything else.
- Capital becomes more scarce as debt leverage declines and equity investors demand a greater real ROA.
StartUps Know That Partnering Has To Be A Core Competency
The 3 golden rules of a start-up are focus, focus and focus. Startups know that have to focus on the one thing that they do better than anyone else partner with other companies for everything else. Some entrepreneurs now consider the art of partnering as a core competency.
It is possible that we are facing an interesting inversion of the norm. It used to be that start-ups studied at the feet of managers who used to run large traditional companies. “Teach me to manage oh great suited one”.
Now the big cats in the corner office are being asked to think more like a scrappy bootstrapped start-up in a garage in cheap location in America or an equally scrappy start-up in a dusty corner of Western China. It’s enough to make you throw up your 3 martini lunch!