Why you should NOT buy Target’s TruTech brand

Here’s a rant/report on an experience I had with Target Stores that might prove helpful as you think about your interactions with customers, how you support them and what it does for a brand — and a huge caution if you ever considering buying Target’s consumer electronics brand, TruTech.

Before I get started some disclosure is necessary: my wife was once the audio buyer for Target and I was a manufacturer’s representative calling on her with Pioneer Electronics (no…I didn’t ask her out while she was a buyer but waited until she was promoted out of the area into a non-conflict of interest position…but I digress). So we both know this game well and I can only imagine what Joe SixPack thinks since alot of “Joe’s” seem to be having similar experiences.

In November of 2006, I purchased a Target brand TV/DVD combo for my first year college daughter (this Target “TruTech” model). It was cheap but more than sufficient for her needs. When plugging the batteries into the remote I remarked on how cheap it was and — having broken and lost many remotes in my day — was not terribly concerned since universal remotes are so easy to find and cheap to buy…

…unless you’re a major mass merchandiser that buys from multiple vendors that do not offer or publish their remote control codes and have one place to buy a replacement for nearly 17% of the retail price of the unit itself!

(Please note the updates at the bottom of the next page)

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Steve & Bill: A perfect time for *you* to reflect…

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Early this morning I watched the video of Steve Jobs and Bill Gates at AllThingsD conference. So many people have written about this event — and many were hoping it would be a cage match between Bill and Steve — that I’m going to add a perspective and place this event into a different context.

In January of 2005, I reminisced a bit about being in Hawaii in November of 1983 when Steve intro’ed the Macintosh to the company (I was with Apple’s manufacturer’s representative group in Minnesota at the time).

When I work on technology innovation with senior strategists in organizations through strategy and ideation work, it’s important to appreciate the revolutionary and evolutionary aspects of human creation without solely focusing on the past. But having a perspective on what it was like and where we are now can inform where we’re headed and help set expectations on how fast the future we invent will be adopted.

Listening to these guys talk about 128kb’s of memory in the first Macintosh with an operating system taking ~20kb’s of RAM is hilarious to me as I sit in front of a laptop with 3GB’s of memory that can run Mac, Windows and Linux OS’es; an 120GB hard drive (floppies at the time held 400kb which is less than half of one jpeg image from my digital camera!); and recipes were the killer app for personal computers while I now can do press layout and video editing while casually looking up almost any piece of data I need instantly with bits flying through the air to my wireless card. Add to that webcams, digital video and still cameras, software for blogging, social connections and even virtual spaces, searchable worldwide information and knowledge sets (e.g., Wikipedia) being delivered and the changes are incredible…and accelerating.

But there is SO MUCH change underway that the less than 30 years worth of changes in personal computing Steve and Bill have experienced will happen in years instead of decades and we’re already in a time of change that is thrilling and scary as hell at the same time.

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Communication breakthroughs…

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With free time this weekend to explore online, I was able to perform a cursory examination of the landscape of breakthrough communications providers in telephony, web conferencing and streaming video (the last one I’ll discuss in this post). Certainly not a comprehensive analysis by any means, but it gave me a good sense of where we are and what needs to yet happen.

As you can see from this screenshot from one of my non-public ‘test’ blogs, I was goofin’ around and testing streaming video offerings from Stickam and uStream. The former has been around awhile longer so I like their technology better and it works great, but they’re targeting a young, social network crowd and positioning streaming as a way to connect with one another. Cool but not yet useful for business purposes (yeah…I care about the social stuff but we need commerce too!).

uStream is certainly driving toward a more serious technology user — and people that are interested in delivering value of some sort with shows and connecting with an audience — so it suits my needs, those of my clients, and just about everyone else I know that is in business, education or an organization of some sort….but can it or any of these shows deliver?

Listening (and once watching a uStream streaming video) Leo Laporte of TechTV and now TwIT fame, he’d talked with the founders of uStream (on Net@Nite with Amber Macarthur) about one of his shows which he had streamed live. He had just over 4,000 viewers and the server blew up. The uStream team is remedying that problem but this brings up my #1 issue: to be serious contenders, these communications technologies must scale.

I’ve brought up scale over-n-over again on this blog and I know that streaming video is really hard and the bandwidth needed is expensive. What if a hot ‘show’ is streamed on Stickam or uStream and has even 1% of the disappearing network TV show audience (37.5 million viewers in the US in March for broadcast networks), there is NO way that any of these lower end solutions would be up to the task of streaming to an audience of 375,000 people…let alone millions.

When individuals, companies or organizations start down a path of choosing superior communication technologies, they are placing a bet. I view many solutions — Skype, Stickam, uStream, and many Web 2.0 solutions — are bleeding edge and not a safe bet. That said, I’m experiencing many solutions myself and know exactly what I (and many of my clients) want but believe that we’re not quite there yet…

…but man, are we close.

VoIP: I had no idea there was so much going on…

Switchboard
Like you, I take incremental changes and small moves in technology and disruption in stride. Then something will happen to make me sit up straight in my chair and say, “Whoa!” as I realize how much is going on in some given space, the pace of change within it and how much disruption is occurring when my attention was elsewhere.

Since I don’t specifically follow the telephony space, I sat bolt upright today as I realized that there is A LOT more going on in with Voice over Internet Protocol (VoIP) than I’d ever dreamed.

Yesterday’s post about Skype vs. Gizmo and their respective call-out pricing, had two guys weigh in with comments: Kris Tuttle who is a researcher with interesting things to say about this space and a guy named Ken Kennedy who left a comment with this amazing link to VoIP providers around the planet.

Over lunch today I went through a few dozen of these links (skimming only, of course) and thought about what was happening with voice. I was stunned by how many providers are offering robust and interesting voice services. Of course, interoperability between providers is key (and the basis for the open SIP protocol) for a level playing field of services to explode with use.

I’ll come back to this post on Skype and the disruptive innovation occurring in telephony and that, “Telephony companies are on life support (and arguably have been for
years) but their death may never come even though they may be in a vegetative state for decades. The voice over IP (VoIP) disruptive innovation is going to continue and, in my opinion, accelerate as always-on, ubiquitous wireless internet connections proliferate.
” The kicker? Most people I know:

a) Won’t take the time to play with most of these providers and figure out how to use them

b) Just want to pick up a phone and dial it to connect with someone

c) Won’t bet their personal telephony use — or especially their business use — on some unknown provider or service that can’t give them a service level agreement or ensure a qualitative experience for callers

d) Don’t care and get pissed off when they do choose a provider and can’t call between services. The mess with instant messaging is a great example as AIM, Yahoo, Microsoft and Jabber users couldn’t interoperate and IM each other across services.

Throw in companies embracing the Asterisk open source PBX for businesses (which is SIP-based) and we’ll experience growing demands for seamless and quality interoperability. I also see this entire space as one just waiting for someone to herd-the-cats together and offer an infrastructure from which interoperability between services can occur

The good news? All of us will win with all the energy, effort and enthusiasm being pored into internet telephony as services make this space better and better.

Skype = $30 or Gizmo = $624

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Voice over Internet Protocol (VoIP) is really coming of age. In the last year, I’ve experienced a marked shift of companies I do business with using the Asterisk open source PBX, many people and companies using the Skype PC-based system, and hardly anyone I know using SIPPhone or GizmoProject.

This post is about Gizmo and Skype specifically and what accelerates adoption and what doesn’t.

I love Gizmo. It sports a far superior and more intuitive interface than Skype; recording capability built right in to the software; and an open vs. a proprietary protocol (Skype’s is closed).

When I’ve been in spirited discussions about Skype’s superior peer-to-peer architecture over SIP’s point-to-point one, I’m interested…to a point. What I care most about is a system that provides significant cost reduction, new features and benefits along with my biggest hot button: double the call quality over landline-to-landline calling (8khz on phone lines vs. 16khz with VoIP approaches taken by Skype and Gizmo).

But I’m really wrestling with why I’d use Gizmo over Skype. I’m on the phone an average of 10 hours per week which is 520 hours a year or 31,200 minutes (I call both local and long distance in the US and in Canada to both mobile and landlines) and:

  • I pay Skype $30 and have unlimited calling in the US and Canada for one year
  • I’d pay Gizmo $624 for those same minutes at about two cents per minute.

The international rates are cheaper on Skype which hasn’t been a big deal for me since the people I talk to internationally are on Skype. To show you how little I’m using Gizmo and how Skype-oriented I’ve become, I still have over $8 of the Gizmo callout minutes I bought early last year and instead have paid the money for unlimited US and Canada calling ($29.95); purchased a SkypeIn phone number ($30); adapters, Wifi phones and other Skype stuff all because of no unlimited calling on Gizmo.

I *really* want Gizmo and SIP to succeed since it’s an open protocol and everyone can play in this sandbox with software and hardware. But just like the early days of paying by the megabyte for access to the Internet, it wasn’t until Earthlink had an all-you-can-eat for $19.95 per month that the doors blew off Internet use. I believe that’s what it’s going to take for Gizmo to get on the radar screen of users who are using Skype (Note: there are 8,692,139 online with Skype now which is nearly 3 million more than this time last year so it’s being adopted quickly).

Am I missing something? Should Gizmo immediately offer an unlimited $30 for an all-you-can-eat deal for calling in North America?

Hidden Value in Web 2.0

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Yesterday I received an email from Paul Freet, founder and CEO of BigContacts. Since it was a generic "I thought you’d be interested in this since you have written about stuff like this before" email, I was going to instantly delete it. Instead, I wrote him back a hopefully productive email explaining why I thought generic ones like his didn’t work and, in fact, usually backfired with bloggers.

That got us into an email dialogue about the challenges in getting noticed and I share his pain with my clients as well as my bride’s business. As more and more people are connected via the ‘net, the noise has already become deafening and getting noticed is harder than ever.

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I’m probably the only person I know that’s gone to every Web 2.0 company (see Lists of Web 2.0 Lists here) at least once per quarter for the last five quarters. I’ve learned how Web 2.0 companies should tell a value proposition story in 15 seconds (the time it takes to absorb it on the home page); who has updated their offering adding more value or starting to charge for it; the offerings that are features…not companies; which ones have failed (they’re offline though still in the directories); and how much incredible value is just laying there waiting to be discovered.

Paul’s offering is very robust and is something you should go take a peek at right now. There is a fully populated demo so you can try it.

Part of our dialogue included a statement on how bummed I am that there is so much incredible value in Web 2.0-land and almost no one that I talk to — especially with great needs that could be solved by Paul’s solution and dozens of others in many categories — has any clue they even exist!

The answer isn’t Techcrunch since "buyers" don’t go there (and especially in light of this post by Mike). I’ve been noodling over what is needed to match demand (since users don’t even know stuff exists) with the solutions providers. If you’ve seen any nouveau sales or distribution model out there for Web 2.0 companies, I’m really interested.

Inefficient to Efficient: Bringo

Bringo
Like you probably are, I’m always frustrated when trying to navigate through call trees. I find myself zoning out when I hear, "Please listen carefully to the following options" and after I do make a connection, "Your call may be monitored or recorded for quality assurance purposes."

Bringo is a new service (with the unfortunately different NoPhoneTrees.com domain name since they started off apparently as a Dentist connection service) that provides an incredibly useful and efficient service: navigating phone trees so you can get connected with an actual human being.

I tried it with Vonage and was immediately connected to "advanced tech support" though scratched my head since what if I wanted to talk to customer service? Billing? I did, however, have an advanced tech question that’s been percolating on the back burner (did any other SIP softphone work with Vonage? No.) so I got that answered.

Next was a car rental company. Within moments I was connected with reservations so was able to ask about my next trip and any deals. Cool.

In both cases, I was pleased at how simple it was to use and that it removed a surprising amount of angst and bother when trying to connect to some company. I know they’re in beta, but they need a lot more companies in their database. What I’d also like to see going forward is to have them build-out per company selections for different departments within the company (e.g., tech support, advanced tech support, customer service, billing, supervisors, etc.).

Bringo is a perfect example of what I posted about a week and a half ago about the Internet making the inefficient, efficient.

One more thing: I’d like to see Bringo add recording to their service. When I mentioned above how every company seems to have some variation on the phrase, "Your call may be monitored or recorded for quality assurance purposes", I’ve clearly agreed to a recording or monitoring of my call. Sometimes with critical support, reservation, billing or other calls I record it on my end too with Audio Hijack Pro since I call-out often using Skype and recording it is a two click process (and it’s legal in Minnesota).

Under Minnesota Statute 626A.02, Subdivision 2: Exemptions, (c): It is not unlawful under this chapter for a person acting under color of law to intercept a  wire, electronic, or oral communication, where such person is a party to the communication or one of the parties to the communication has given prior consent to such interception. In order to deploy a recording service, Bringo would have to ensure that somehow that statement is made to me, a caller, and that I’m the agreeing party to the call.

If Bringo could offer it in those areas where an agreeing party recording a call is legal (and it may be nationally), they could legally record it and make it available for download only to the account holder who is the agreeing party. What a fantastic audit trail this would make in the event of an arbitration or lawsuit!

A Design Story: 11Mystics

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Sit back, relax and let me tell you a short story about design, pent-up demand and being positioned well for the next big evolution of the Web.

You know I’ve talked before on how design matters…a lot. That said, there seems to be a huge reluctance on the part of tools providers to make a tool high function and high design. They either throw in every possible feature or make a tool so stupid simple that anyone serious would be embarrassed to use them.

But in a time of accelerating change around people generating content, increasingly using the Web for communications and participation, there is significant pent-up demand for easy-to-use, highly functional and in-the-hands-of-mere-mortals vs. propeller-headed designer toolsets and some vendors are shipping new tools that are meeting demand in the marketplace.

Last October we embarked upon an adventure to build Rise of the Participation Culture, initially as a Web-based report. It seemed prudent to use content management or blogging engines like Drupal, Joomla, WordPress or even Typepad to deliver it, but the realization quickly came to us that we were considering using bazooka’s to kill an ant.

I’m revealing for the first time — and holding myself up for potential ridicule from those who view iWeb, Rapidweaver (RW) or Sandvox as "stupid simple" or "Borsch you should be embarrassed to use it" — that we used iWeb to deliver the report. It was clearly a 22 caliber pistol to go after that ant and allowed us to quickly deliver the content…and that’s what mattered and no one cared if it was created in Dreamweaver, Expression or any other higher level and more complex tool.

As has always been my experience, the stock templates in iWeb are cheesy so I went on the hunt for more professional looking templates (and one that would resemble the look-n-feel of my blog).

I found them at 11Mystics since I was searching for great design that I could map to iWeb and 11Mystics offered very nice templates that would do the job. After buying one and discovering that the PNG images wouldn’t render in Internet Explorer 6 (one reason why I wrote When Will Internet Explorer 6 Die?), I queried support and the owner, Suzanne Boden Boben, and I began interacting by email. She provided us with a pre-release version of the template with JPG images instead of PNGs and it was flawless. GREAT customer service.

But it gets more interesting and revealing. I’ll tell you why all of this matters to you and how I perceive Suzanne as the poster child for remaking yourself and creating a business where one didn’t exist through great design, filling a need and being well versed at conversational marketing.

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Death of Distance…

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Early this morning I emailed Christian Long at think:lab (he’s a thought leader in School 2.0 and design for the future schools and cutting edge education) since I had sort of an "Aha!" and I knew he’d instantly understand the possibilities.

Schools constantly scramble for money. Access to thought leaders is challenging for the big Districts…let alone ones in rural schools. Same thing with respect to kids in other countries and this is acute in developing ones especially.

Connecting up kids with the best and brightest, the thought leaders, the astronauts and Senators, or even people from different disciplines whom educators would like to expose their kids to, spending huge bucks on satellite downlinks, lots of gear and technicians to set it all up simply isn’t possible in today’s current school funding situation.

But a few hundred dollars is possible and a missed opportunity if not acted upon.

When I first read Frances Cairncross’ book Death of Distance back in the late 1990′s, her premise that geography and distance would dissolve was a prescient perspective at the time. Not only has it dissolved, but the tools (like Skype and the Internet itself along with all the solutions leaping onto the scene) are accelerating the rate at which distance is becoming increasingly irrelevant.

The experiential impact of having Malcolm Cohan talking over Skype from Australia to Minneapolis (see Sydney to Minneapolis on Skype Video) was a wakeup call to me about the power of Internet-centric communications and how *I* have taken it for granted in some ways…but it caused me to have a knowing that I had to help others understand what’s possible right this minute.

Though what I’m about to describe has implications for businesses of all sizes as well as non-profit organizations desiring to have interactive venues with key people, I’m especially keen on what this can mean to schools and specifically K-12 education.  Educators could begin to tap into the knowledge and brain trust that exists globally without budgeting for big infrastructure or the expense of flying someone to their location. They could even connect with other educators — perhaps a professor steeped in knowledge of a topic *or* even another classroom on the other side of the world — for laughingly low costs.

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Scaling Web 2.0: The Dirty Little Secret Exposed?

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Was very pleased to see Tim O’Reilly bringing forth the issue of Web 2.0 scaling and Ray Ozzie’s perspective. This is such a vitally important issue and it needs analysis, facts and discussion and big time thought leading exposure.

I first wrote about the “dirty little secret” of Web 2.0 back in December of 2005. That secret is that infrastructure, bandwidth and minimizing latency is a huge issue for startups and is one little discussed.  It’s one I know first hand from a conferencing startup I worked with last year — and informing developers is an imperative since this dirty little secret will impact rich, internet applications; mashups; widgets; and other composite applications delivered going forward.

This problem becomes more acute as we all pull data from geographically disbursed hosted online services. I can’t tell you how many times I’ve waited…and waited…and waited….for some data to appear in a widget, an ad served from DoubleClick, or a startpage pulling simple RSS text data from dozens of different sources. Imagine when several, dozens or numerous interdependent sources (ones that pull data from other services to deliver a composite web service that is, in turn, consumed by yet another new application!). It’s a recipe for disaster unless managed at a world-class level.

Now that more of us are playing with video, Flash and, especially, streaming video (e.g., uStream and like what I did at a low level yesterday with Skype video), the challenges in betting a business, a workshop series, a product category or composite applications means that we all better get more informed about this issue and damn fast.

I’ve said before that one key to the dotcom crash was HUGE amounts of content and functionality being shoved into the top of the funnel while those of us consuming it were drinking from the tiny end of the funnel through 56kbps straws.

I fear that unless this dirty little secret is handled and done so by disseminating understanding amongst ALL creators, developers, business strategists and users of Web/Enterprise 2.0 products and services, users expectations are going to be dashed and it will create material barriers to adoption and use. Maybe not another crash, but the barriers and obstacles that will come are preventable with enhanced understanding and knowledge dissemination.

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