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Diaspora: a Social Network Where Users Own Their Data

May 24, 2012 by Marie Wiere

In recent years many people have expressed concern regarding Facebook’s ever-changing privacy policy and use of user data to generate advertising revenue. A few years ago a small group of New York University students came up with an idea to try to create a new kind of social network where users rather than companies, own their personal data. The students called their idea of social freedom Diaspora and posted a thrown together amateur video on crowdfunding website Kickstarter to try to raise $10,000 to create this social network. The video far exceeded expectations raising $200,641 before coding had even begun.

The Original Diaspora Concept

The student founders of Diaspora envisaged an owner-centric social network, where users didn’t have to be concerned about their data being exploited. On Diaspora, users could store data on a server of their choosing (either their own or sign up on for someone else’s) and use, share or delete the data whenever they chose.

Using open source software the founders hope that Diaspora can challenge Facebook and destroy the notion that only one social network can dominate the market.

The Challenge

Currently Diaspora is a private site with a small dedicated following. Without any marketing more than 600,000 people have requested invites to the site. However, this is obviously a miniscule number of people in relation to Facebook’s hundreds of millions of users. When Diaspora opens to the public later this year, they will need to be able to offer other reasons beyond data ownership to entice people to join.

Potential Differentiation Opportunities for Diaspora

One idea the company is exploring relates to the possibilities that could open up for people who own their own social network data to greater analyze, learn and profit from it. Along these lines a data locker model is being explored where users can choose to share their data selectively with businesses they trust.

Diaspora is also working to add greater artistic ownership to the site, to allow users to control how each post appears visually, in order to greater display their personalities on their profiles. Once this prototype becomes a reality users will be able have creative control over their page and status update layout, font, and how photos and videos are displayed. The idea is to allow users to create innovative page imagery that they could be proud to share. Users can also share their Diaspora profile on other social network sites, which will help Diaspora to recruit new users.

Diaspora’s Potential

A recent article in Bloomberg Businessweek on Diaspora suggests that:

‘The data economy’s “disregard for individuals” is a ticking time bomb, that increasingly large security breaches and that feeling of being tracked will slowly shift consumers to demand more control. And that could mean a larger audience for Diaspora.’

In June Diaspora will join the startup accelerator program Y-Combinator. Y-Combinator has helped launch cloud storage site Dropbox and house/vacation sharing website Airbnb which I wrote about last week among other companies. It is hoped that Diaspora will evolve during its time at Y-Combinator with a possible public launch later in the year.

The recent success of Instagram illustrates that users like creative control, which suggests that Diaspora could be successful by giving users design freedom. However, so many social networks have failed to compete with Facebook. MySpace for example, offers users more creative freedom than Facebook, (albeit not as much as Diaspora is proposing) and is no longer popular. Time will tell how Diaspora performs, but what do you think? Share your thoughts in the comments section below. Meanwhile if you would like to learn more about Diaspora check out the project website and to request an invite to join click here. 

Posted in Innovative Ideas, Social Media Marketing | Tagged , , | 1 Comment »

Should Your Organization CrowdSource its Strategy?

May 20, 2012 by Marie Wiere

CrowdSourcing is a collaborative open call approach to problem solving and idea creation.  One such example is Google’s Project Glass, which involved the company sharing an idea for future technology and requesting feedback from the public to create consumer driven products.  Recently I read a research paper from McKinsey Quarterly by Arne Gast and Michele Zanini on the idea of crowdsourcing corporate strategy, which I will discuss in this blog post.

Why consider this approach?

So often an organization’s strategy suffers from a lack of diverse perspectives and lack of leader understanding of the operational challenges their employees face.  As a result strategies are often created that sound great in the boardroom but have the opposite impact in practice.  Leaders that fail to consider the implications of their strategic decisions on front line employees, may experience implementation challenges from employees who do not support the organization’s strategic vision.

Benefits of this approach

By incorporating perspectives from front line employees, strategies are less likely to be flawed relative to those created in isolation.  Crowdsourced strategies have the potential to be more insightful and actionable.  Employees are likely to become more engaged as they learn that their opinions are encouraged and can make a difference.  As a result of greater employee involvement, implementation is easier and employees are more likely to support the company’s strategic direction.

CrowdSourcing strategy in practice

Companies that have adopted this approach range from the obvious: Wikimedia to companies that were not founded on collaborative content creation such as 3M, HCL Technologies and Rite-Solutions.  HCL Technologies rethought their business-planning process to create greater transparency and to generate more diverse feedback and insights on their business plans.  In 2009 the company launched an online platform called My Blueprint and invited more than 8,000 employees to view 300 posted business plans.  Interested individuals gave detailed, actionable feedback on the plans and quality insights were obtained. By including others in the process, opportunities for cross-unit collaboration were more easily identified.  Overall crowdsourcing enabled the company to gain fresh perspectives to greater analyze their business plans and focus on specific actions to take to achieve desired results.

While the concept of crowdsourcing strategy is a very new idea, this concept has great potential to improve decision-making, avoid group think, eliminate ideas that would not work well in practice and to create visions that are more meaningful to lower level employees.  What do you think? Would your organization be open to crowdsourcing their strategy? Share your thoughts in the comments section below. 

Posted in New Concepts, Organizational Change, Strategy, Video Blog | Tagged , , | 6 Comments »

Airbnb: Pioneering the Sharing Economy

May 16, 2012 by Marie Wiere

Airbnb PinterestE-commerce company Airbnb, began in 2008 in San Francisco as a house-sharing website, helping people to find a place to sleep for the night when local hotels were sold out.  Today Airbnb has over 100,000 listings in 192 countries and has expanded to incorporate other rentals such as parking, storage, bikes, cars etc.

The video below sums up Airbnb’s basic concept:

Airbnb CEO Brian Chesky, intends Airbnb to become an online marketplace enabling small businesses and entrepreneurs to participate in what he refers to as the “sharing economy.”  Current users are typically independent and have an average age of 35 years old.  It is hoped that Airbnb can eventually enable its users to locate or offer almost anything they want to rent, while managing the transactions through Airbnb’s online transaction management system.  Chesky, recognizes that Airbnb’s scope is potentially endless, though caution is needed:

“There are so many things we can do; the most challenging part of this is to figure out what not to do.”

Airbnb PinterestThe current issue of Fortune magazine suggests that Airbnb may even have the potential to become the next eBay.  Indeed, this e-commerce company has made money from day one, by charging a commission fee of 6 – 12% on each transaction.  The company has certainly been successful in winning the support of high-profile investors including actor Ashton Kutcher and LinkedIn founder Reid Hoffman.

Whether or not Airbnb can realize their vision will like any other company be based on their ability to outpace their competition.  Imitation websites for bikes, ride shares, office space and other things have emerged and as the company diversifies it will also face competition from other websites that allow small businesses to have online storefronts such as Amazon, eBay and Etsy.  Airbnb hopes to differentiate themselves by paying close attention to detail to all aspects of their service, by being user-driven, and by focusing on ease of use with their 3-step buyer and seller transaction process.

Interested in learning how to use Airbnb? Check out the video below:

Posted in Innovative Ideas, New Concepts | Tagged | 2 Comments »

Disney Theme Parks: NextGen FastPass

May 4, 2012 by Marie Wiere

Ever since I began this blog 3 months ago, I’ve been waiting for an excuse to do an entire post on a new innovative idea from one of my favorite organizations: Disney. Fortunately for me given Disney’s innovation and creativity it didn’t take long. This week Disney began testing their high-tech FastPass (part of their NextGen project) at their Magic Kingdom park.

The current system: Since 1999 Disney theme parks have offered a virtual queuing system through use of a FastPass. Guests insert their park ticket into a machine at one of the busiest attractions and receive a ticket to return later in the day and skip the line. Typically guests can only get one FastPass every two hours and only a certain predetermined number are issued each day. FastPass holders cannot use their FastPass prior to its listed time, but in spite of its one-hour time slot it is unofficially (based on my experience as a cast member and guest) valid at any time throughout the rest of the day. The FastPass is essential for some attractions such as Soarin’ over California which in my experience typically has long lines.

The proposed system: Disney’s NextGen project is a “next generation experience” technology project rumored to cost over $1 billion. Part of this project is expected to result in the creation of guest wristbands implanted with RFID microchips. Prior to arrival guests may be able to pre select a number of attractions for FastPass, reserve show seats, book character-greeting slots etc. This information would then be downloaded into the RFID microchips, to interact with sensors located throughout the Disney parks and resorts. Additional attraction interaction features may also occur based on the information obtained on the chip on the guest’s specific interests.

http://www.flickr.com/photos/pazca/6993985474/

The “test sensor posts” and the current FastPass

The current test: This week at Disney’s Magic Kingdom park in Orlando, FL blue RFID sensor posts with a Mickey mouse symbol have been temporarily installed throughout the park. A small number of selected guests have been given bands to scan and test. As they scan their band, reservation data is sent to a cast member’s iPad. The bands are intended to provide faster access to attractions than the current FastPass system.

The full extent of what Disney’s NextGen experience could be, is still under wraps. But one thing is for sure the scope for what RFID technology could do to enhance the Disney park’s experience is potentially endless. I know I would love to test this technology, but what do you think? Share your thoughts in the comments section below.

Posted in Innovative Ideas, New Concepts, Technology | Tagged , , | 4 Comments »

The Smart Phone Room Key

April 29, 2012 by Marie Wiere

Imagine arriving at a hotel, tired after traveling and being able to skip the front desk and head straight to your room. Sounds good right? Such a situation is the reality for guests staying at hotels, which use OpenWays.

So what is OpenWays?

OpenWays is a global solution provider of mobile access-management and security solutions, which is paving the way for Near Field Communication (NFC) technology by offering a solution that works with today’s cell phones. OpenWays provide a web-based mobile phone application that automatically adapts to the phone to offer hotel customers a secure way to access their hotel rooms.

This solution is currently being tested at selected Holiday Inn and Choice Hotels across the world. Guests staying at these hotels can download the application onto their smart phone prior to arrival. They then receive a text message with their room number and upon arrival can unlock their room with their cell phone. The application may also enable a customer to order room service or other hotel services from their phone. This video shows the process at Holiday Inn:

OpenWays cell phone compatibility

OpenWays is compatible with all cell phone network technologies. Current smart phone companies OpenWays support include Microsoft, Apple, Blackberry, and Google Android among others.

Why would a hotel purchase OpenWays?

Simply put OpenWays offers hotels the opportunity to provide a faster more convenient option to bypass the front desk at check in, potentially enhancing the customer experience. The solution definitely sounds like a convenient option to avoid waiting in line after a long flight or car journey. Using OpenWays also enables a hotel to save on the costs of purchasing room keys and it can be incorporated into an organization’s sustainability plan. The technology works in a way that locks could still have card slots for guests who are less technology savvy.

There is potentially no limit to how mobile technologies can continue to change and enhance the customer experience in many industries. But what do you think of OpenWays? Would you want to use your cell phone as your hotel room key? Share your thoughts in the comments section below.

Posted in New Concepts, Sustainability, Technology | Tagged , | 2 Comments »

Virtuo by TouchTunes: Redefining the Jukebox

April 26, 2012 by Marie Wiere

http://creativecommons.org/licenses/by-nc-nd/2.0/deed.en

Virtuo at last year's Las Vegas exhibition

Earlier this month I wrote a post on Megabus, a long distance bus service that had experienced success in the declining transportation industry by rethinking the product and business model. In this post I am going to write about a company called TouchTunes, who have achieved similar success by recreating the old school jukebox.

TouchTunes has created a touch screen broadband connected machine called the Virtuo, which revives the jukebox. The Virtuo was described by a vending machine distributor as being “like an iPad on steroids”.  The machine has more than 20 times the song choice of traditional jukeboxes. In addition it has enhanced search capabilities even enabling customers to search for a song using part of a lyric.

The Virtuo’s operating system OpenStage facilitates the integration of social network sites. The latest Virtuo machines revealed last month contain PhotoBooth (enabling people to take pictures at the jukebox, which they can share on Facebook) and a karaoke service.

There is also a Virtuo app, which can be downloaded to enable customers to make their song requests on their phone without getting up from their seat. Some customers have even been known to queue up their song to time it with their arrival. This video sums up some of Virtuo’s capabilities:

Virtuo machines sell for $5495 and their average weekly income is $320 (almost three times the jukebox industry average of $113 in 2010). Songs typically cost $0.50 and double in price for karaoke.

Over the past 15 years the number of jukebox machines in the U.S. has declined by 40%. Helping to turn around the jukebox industry’s decline, TouchTunes expect to increase their number of machines from 52,000 to 60,000 by the end of the year. If you would like to see and try Virtuo, you can search for your nearest location on the TouchTunes website.

So what do you think? Will TouchTunes revive the jukebox? Share your thoughts in the comments section below. 

Posted in Business Success, Industry Change | Tagged , | Leave a Comment »

5 Reasons why Best Buy is Stuck at a Crossroad

April 23, 2012 by Marie Wiere

http://commons.wikimedia.org/wiki/File%3ABest_Buy_20070222.jpg

Earlier this month, one time successful big-box retail store Best Buy posted a $1.7 billion quarterly loss and announced the closure of 50 stores nationwide. Following the news Best Buy’s CEO Brian Dunn resigned due to what the company referred to as “an unspecified personal conduct issue.” This news made many question if Best Buy has a future as a 21st century retailer.

Here are 5 reasons why Best buy is stuck at a crossroad:

1. Changing business environment: Best Buy’s business has stagnated due to changing macro-economic forces, accompanied by a shift in consumer preferences.

2. Not enough choice: Shoppers today can typically find more choices online from Amazon and other online retailers than they can find at Best Buy. Frequently the online retailers have lower prices too.

3. Jack-of-all-trades, master of none: When it comes to tech products Best Buy essentially offers a little of everything. Given this strategy, the store’s sales representatives struggle to gain specialized knowledge on products sold. If you want to buy a cell phone it is likely that you could get your questions answered in more detail from a cell phone provider’s store sales representatives than you could at Best Buy.

4. The rise of mobile technology is transforming comparison-shopping: Years ago shoppers would go from store to store comparing prices. Giving their size the big-box stores typically won. Today people can compare prices far faster and easier online at any time in any place.

5. Failure to adapt fast enough: Best Buy has made changes to react to the environment such as acquiring online music subscription service Napster in 2008 (later sold in 2011) and online movie subscription company Cinema Now in 2010. However, such changes have not been fast or successful enough to guarantee the company’s continued success. As a result Best Buy is still somewhat dependent on products that have since been digitized such as CDs and DVDs.

Another area where Best Buy has failed to adapt is their store layout of checkouts and security guards at the door. Such a layout is outdated and un-customer friendly. By contrast at Apple’s retail stores, customers can check out wherever they are in the store and can test new products if a wait is necessary.

So what do you think? How can Best Buy avoid the fate of other big-box retailers such as Borders, Linens ‘n Things and Circuit City? Share your thoughts in the comments section below.

Posted in Business Failure, Industry Change, Organizational Change | Tagged | 2 Comments »

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