Traditional Business Is Still In Denial
Here it is, September 1st, 2010 and two things jumped out at me this morning after reading some business news. Newspapers still think they have something solid going, and Mall’s are still being touted as a good investment. With all the evidence that traditional business is failing in most sectors, those incredibly smart people are making critical errors in judgement.
Yesterday, a company called POSTMEDIA/Network announced that they have a new logo. Now it’s not the logo that has me scratching my head this morning. Former President of Roger’s Paul Godfrey is the President & CEO of Postmedia Network, this group’s list of brands should make you wonder why they continue down the futile path of print. Considering that Newspapers are dropping like flies these days, the predicting doom of book stores and other outbound media, why would you or anyone else invest in this venture? Not one but 11 brands under the Postmedia Network umbrella, all newspapers! They handle the National Post, Times Colonists, The Vancouver Sun, The Province, Calgary Herald, Edmonton Journal, Leader-Post, The StarPheonix, Ottawa Citizen, The Windsor Star and The Gazzette. These are probably the most read newspapers in Canada, and are also failing.
You can find Canadian Newspapers listed in iPad, you can’t read them, the list is of their websites you have to go visit, this will have to change if they want to survive. Newspapers should scrambling to make as many mobile apps as possible, build other ways of generating revenue. The online ad market is staggeringly huge, but for some reason print & TV are merely poking a stick at it. They will all but be forgotten when the other 3 billion people come online in the next 2 -3 years.
Another confusing move this morning, I was actually surprised how I responded when I read that a Mall in Surrey, B.C., Canada was sold for $91 Million, that’s cheap by today’s standards but it still sold. But a mall? Granted this mall is anchored by some heavy weights, SAVE-ON FOODS, Canadian Tire, Staples, Winners, HomeSense, Cactus Club and HSBC, plus 26 other businesses. Back in the 70’s & 80’s, he who owned the channel of distribution, had a secure future, would never be in danger of being out of business. Now, we still need some box stores, we will need warehouses, forklift drivers and so on. But you can also see where most of these mall businesses will either be 100% online or gone.
So the questions begs to be asked, why would you buy a mall? The investment of the land? Maybe. The longevity of these businesses remaining long time anchors in a mall? Maybe, but I doubt it.
These moves in of themselves are not life threatening or even bad for that matter by today’s standards, but in the next 3 – 5 years, I suspect they will be asking themselves what they were thinking.
Consider these two small movements today, and I quote, profits in Canada’s non-residential construction sector will fall to a five-year low this year, that’s according to a report by the Conference Board of Canada. Pre-tax profits for this year in this sector will be 1.2 billion, down from $1.4 billion in 2009, and will not recover to pre-recession levels until 2014, at it’s earliest, it’s survey forecast. If at all I wonder.
In Washington there is more bank demise, the number of problem-ridden US banks rose to the hihest levels in 17 years, just in the second quarter! The number of institutions on its “problem list” rose more than 7 percent in the second quarter.
Traditional business is still in denial, they keep doing business as usual thinking everything will turn out alright. Really? Do you really think things aren’t changing, do you really believe that a global population who screams to be heard, to be served the way they want to be served, they want it to be almost free or extremely low cost, they want it in an Open & Free Business Model. Today’s public will look until they find it the way they want it, no longer can you force people to do it your way big business, you best pay attention, because if you won’t, someone will pay attention and take your business. Wake Up!
On a positive note, today the Bank of Canada interest rate hike has been delayed : )
Could The Internet Get Unplugged?
First off let me confess, I am an Internet Junkie, I make my living mostly because of the Internet. Having said that, I could probably still survive without the NET, but I doubt it, I would have no way of proving my work. Imagine if say Big Brother decided the Internet should be turned off, unplugged! What would you do? Worse yet, what would happen if every computer was confiscated from every home? You’re right, that’s just plain stupid!
I mean, how would Generation G’s and Zoomers survive without the Internet, without technology period? Those two demographics are going to turn the world upside down, it’s already happening. The rules are being re-written, broken and frankly destroyed by innovation and new ways of getting things done. In fact, they don’t care what we older generations think, they don’t even want to discuss how we used to do things, they just want to do what they want to do whether it works or doesn’t. They behave like a Venture Capital firm would, just keep doing something until it scores big time financially on the Internet.
The idea of an organization turns their stomach, Gen G will be able to organize without organizations, that ability to coalesce will have profound destabilizing impact on institutions. You must concede, The Internet is fueling those who want to be heard, the rise of people, people who regroup and organize on the fly. We are in a time where one voice makes a difference, we the people are taking charge and we are speaking up, Corporations don’t know what to do with us in this state. It would so much easier if they could just unplug all of us from the Internet so they wouldn’t have to deal with us. They want us to go about our business and continue to trust them on Wall Street, keep the wool over our eyes. That’s just not going to happen is it?
The Internet doesn’t make us more creative, it’s a platform, a game changer that enables what we create to be seen, heard, and used. The Internet let’s us write the rules of business, let’s us share, let’s us give our creative rights away. The momentum is already too much to stop, the Internet could not be turned off or unplugged, our economies would collapse, businesses would cease to exist. Imagine a world without the Internet, we would have to redesign how work, how we organize work, much like we are doing in this Digital Age. KAOS would ensue, just as it is with the removal of the Industrial Age thinking, the old model is dead.
The new open models are allowing creative individuals to make more money than those that fall under the Copyright Laws of yesterday. Copyright as it is written does not work on the Internet, but a Creative Commons License, or a Collaborative Licenses or possibly User Rights Licenses may prevail.
Who would have thought the big money would be in the conversation. What you and I say everyday on the Internet, is being used to figure out trends, where we are gathering, and what we want to be able to do, for the purposes of making money. It’s what we do here in North America, we are always trying to figure out how to make more money, as much as we can possibly want. What would happen if the tap was turned off, the Internet was unplugged, or worse yet controlled by Cable Networks, Government, and Internet Telcoms. It’s called NET NEUTRALITY, and it’s real, it’s in the courts today.
So What Would You Do If The Internet Got Unplugged?
Lessons From Fashion's Free Culture – Open & Free!
I love it when I find evidence that Copyright Protection doesn’t generate the same kind of revenue that an Open & Free Business Model does, it puts a smile on my face. No it’s not perfect, but neither is Copyright Protected sectors, they are failing miserably in this new open business model, they are trying to function within it and still can’t figure out what to do. Why? They are trying to use old industrial age thinking on a model that doesn’t require alot of control. Some control yes, but not nearly enough to keep everyone comfortable.
Companies that practice or use the big C (Copyright) are struggling to function in the New Open Marketplace, where FREE is almost impossible to compete with, so don’t compete! There are many, many sectors that do not qualify for Copyright Protection, and they generate more revenues than most with Copyright Protection. Copyright is about one thing and one thing only, control! I’m generalizing of course, but that’s the core motive when you strip all away.
Here is a TED Talk that is very interesting, with much to think about, food for thought.
Johanna Blakely: Lessons from fashion’s free culture.
Cloud Computing & The Power Of One
The world of business is struggling to re-invent itself, the comfort zone of executives paralyzing corporations everywhere is coming to a point of no return. With the shift from baby Boomers to Zoomers, the business handbook is about to be thrown out the window and rewritten by these fine young business cannibals. They will cannibalize the very business models that succeeded the last 100 years, only to be thrown out or completely rewritten. The Boomer, Gen X, Gen Y generations are doubling over in pain from the paradigm that is taking place. We are moving to Cloud Computing & The Power of One.
Ten years ago I shared at a conference, that one day Microsoft would have you save your documents on their servers, today we have Microsoft Office in a web based format, and you are saving your documents out there on the Cloud. Now I had no idea what it would look like, but it was predictable. Google Doc’s has you doing the same, not too mention all the other tools you use for free at Google. Google has us, just like Neo in the movie the Matrix. We just can’t help but use Google’s FREE tools, search, Google Earth, Google Maps and so on. Google has figured out how to get our attention, they came to us, they made themselves available to us 24/7, and they did it without making us spend a dime. The Cloud is here and it’s going to get better, stronger and safer. Think about the power you now have because of Google, they have shown you how to take control, they have shown you your true power without telling you.
We have also moved into a new generation of entrepreneurs, we the people are getting the power back again, back from those who have kept us in a fragmented state. The Power of One is unparalleled here on the Internet today, and it’s just beginning. Social Media for some reason woke the world up, and yet, being Social is not new. We’ve been doing it for centuries, it’s just different now, it’s been transform into a digital realm. We are now driven indoors, we can do things today we couldn’t do before, and no each one of us has power we didn’t have before. The challenge with that power, we’re still not sure what to do with it. Sure, some individuals are making good use of this power, but for the most part, the world still doesn’t know they have it. This Power of One.
When speaking or doing workshops, people are so confused by the power they have in their hands, and when you share a few things they have the power to do, they say they don’t know how. With Great Power comes Great Responsibility, it could be that is the underlying fear that immobilizes people. The power of converting mass market to mass niches, which in turn takes the control away from the very people that have kept we the people in a fragmented state.
In the book, What Would Google Do?
The shifts, the paradigm shift we all must go through is a painful one, as we move to the cloud & the power of one, we are a threat to those who want to keep control. To keep you coming to them, to pay for things kept behind walls, to force you to act in a manner that makes you feel sold. Those days are over, the marketplace is now becoming Open & Free, where Open & Free is a Business Model.
The Cloud is a very useful tool, and it will get better. The Cloud will also assist in giving you power you’ve never had before. You do have control, just open your eyes, remove the fear, and let your voice be heard, because the world is listening unlike they ever have before. So speak up, use the cloud & you will be one of the many known as The Power of One.
Owen Clark's Byzhub MeetUp Event August 17th
I had the priviledge of speaking at Owen Clark’s Byzhub event last night (Tuesday Aug 17th, 2010), to a very smart group of people. The room was awesome and full, 30+ people came to here about the future of business. I have to say, if your business is not registered at the Byzhub website, you are leaving money on the table. Owen’s network of businesses hovers the 1,000 mark as of this writing, which means, you can connect and promote your business directly to those connected to Byzhub.com! Stop reading right now, go and register at http://www.byzhub.com it’s free, and you can start networking with other business looking for your products and services. It’s all about networking baby! The future of business never looked so bright, this the best speaking event I’ve had so far this year!
My chauffeur was Rick Rake of Click Media Works, and my Vanna White Escort was Danielle Knowles of Red Pencil. We rode in an awesome convertable Mustang, top down as it was smoking hot.
Rick's Mustang
If you haven’t attended a Byzhub MeetUp Event you are missing out, the best people, people you want to connect with, people that can help your business are at these events, you need to be there! So make sure you are part of Byzhub – Business Community. It’s where your business needs to be!
Here are a few pics from last night:
Thanks to all for attending, you’re all ROCK STARS in my world! And Thank you Owen Clark!