Thursday, July 8, 2010

Sigmoid Curves and Network Effects Drive Scale and, Usually, Profit Margins

Ultimately, businesses live and die on three simple dynamics: distributions, network effects and  sigmoid curves (S curves), says Niel Robertson, Trada CEO.

Distributions tell you how much you can afford to spend selling a product, he says. Accounts worth $1,000 each cannot be sold the same way as accounts worth $1 million each. Mass media advertising or distributors might work for the former, but direct sales is feasible for the latter. 

S curves determine how far you can scale a business, he says. S curves also illustrate product life cycles and the strategy of creating the next new wave of products before the current revenue driver begins to decline. 

Network effects account for the out-sized returns when a business can achieve huge market share.

Almost all problems (and most opportunities) come from understanding how to take advantage of these functions – rather than fight against them, he says.

There's a Difference Between a "Search Query" and a Robo Call

Twitter's search query numbers include 'searches' from Twitter apps such as TweetDeck and Seesmic that are actually just automated calls those apps send out every few minutes to populate columns users have set up to see tweets on certain topics.

So maybe recent Twitter "search volume" figures are a bit inflated?

Differing iPhone Demographics in France, U.K., Germany

Apparently iPhone owners in several European countries have distinct and non-similar age profiles.

The key segment in France is 16-to 24-year-olds, who represent 36 percent of France’s iPhone owners; in the UK, it’s 25- to 34-year-olds, who account for 40 percent of the U.K.’s iPhone owners; and it’s 35- to 44-year-olds in Germany, who make up 33 percent of Germany’s iPhone owners.

In France, which has the highest adoption of iPhones in Europe, only 57 percent of the total iPhone installed base is male; in Germany, it’s 76 percent.

Wednesday, July 7, 2010

Where Google Might Go Next

Taking a look at places users go immediately after visiting Google to search for something suggests the next area Google might explore, after its recent move into travel: gaming.

The table shows the top 20 downstream industries visited after a Google visit during the month of June 2010.

Google's presence is obvious in most: Search Engines (Google.com), Entertainment (YouTube), Shopping and Classifieds (Google Shopping, Google Base), Business and Finance (Google Finance). Google's presence is perhaps less obvious in others: Social Networking and Forums (YouTube, Orkut, Google Talk), Education (Knol, Google Book Search, Google Scholar), Lifestyle (Blogger).

After travel, gaming is the next area where Google does not arguably already have a presence.

Anybody Can Make a Mistake: This Doesn't Exactly Sound Like a Mistake

Late last month, lobbyists for the pro-net neutrality movement began circulating a letter on Capitol Hill demanding the immediate passage of a law that would allow the Federal Communications Commission to regulate broadband access as a common carrier service. The letter featured over 160 signatories, among them the Dr. Pepper Museum, Planned Parenthood of North Texas, and Operation Catnip, a spay-and-neuter clinic in Gainesville, Florida.

One signatory doesn’t remember signing anything related to net neutrality, and the other signatories contacted by The Daily Caller could not explain their support for Title II reclassification. In fact, they didn’t even attempt to explain their support.

Legislators vote on bills they haven't read. Apparently groups sometimes "support" issues they don't necessarily understand.

The Web is Getting More Social, Google Says


No surprise then that Google, one way or the other, will "get more social" in response.

Deja Vu All Over Again?

Some might argue that Apple's invention of an amazing new product will prove to be "deja vu all over again."

Though any such analysis has to account for the intervening success of the iPod, which completely dominates market share in the MP3 player market, what happened in the PC business could happen in the tablet PC market, some will argue.

Namely, Apple could wind up a niche supplier of high-end devices, rather than the dominant provider in the segment, because of its insistence on a "closed" model.

Zoom Wants to Become a "Digital Twin Equipped With Your Institutional Knowledge"

Perplexity and OpenAI hope to use artificial intelligence to challenge Google for search leadership. So Zoom says it will use AI to challen...