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Morettini on Management

Morettini on Management
Phil Morettini provides commentary on the High Tech industry, as well as tutorial articles for C-level managers in Software & Technology companies

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Steve Jobs, the iPhone and Apple Strategy - have we seen this story before?
2007-07-24 01:59:00
Apple computer and its red-hot iPhone have dominated the business news recently. By all accounts, with good reason. I haven't had the opportunity to play around with an iPhone yet, but the early reviews have been very positive. Initial interest demand has been high, especially given the usual amount of mystery and intrigue woven by Mr. Jobs and the folks at Apple.For a first-time entry in to a large, competitive business such as cell phones--you've got to be impressed. Yet I've got this vague feeling of familiarity when it comes to this story--I somehow feel that I've seen it and heard it all before?.THE RETURN OF JOBSApple Computer since the return of Steve Jobs from the hinterlands has felt a lot like the Apple from Jobs initial run at Apple. He's restored the company's attitude, and dominates publicity, product direction and what feels like nearly every little detail about the company. Not bad for what is roughly a $20B company. It speaks to how strong and impressive Mr. Jo...
More About: Pod , Apple , Story , Steve Jobs

The Haphazard Development of People in Early Stage High Tech Organizations
2007-06-25 03:51:00
Many entrepreneurs start out giving little thought to how they will grow their embryonic technology business in the long run. They are totally focused on designing and releasing the first product, or making that first sale. This focus is usually a very positive thing in a new company, since grandiose plans of startups have a way of getting derailed by the harsh realities of trying to survive.Other more organized and contemplative entrepreneurial types have a master plan all laid out, including the steps on how they are going to grow their company all the way to the happy exit they have planned. This approach can be of great benefit as well; even though things won't go exactly as planned, it's great to have a road map that you can adjust as conditions change.One thing that many younger organizations don't do so well, is in planning the development of their staff. Don't misunderstand; there are a lot of development opportunities for employees of newer and smaller companies. But th...
More About: People , High Tech , Tech , Development , High

Business Models in the SMB Market
2007-06-10 23:55:00
The SMB market is typically a very popular topic for hardware and software companies. Every one wants to sell to the Enterprise market; as a result, competition is fierce and standards are very high. If you get to the Enterprise market early, with an innovation that creates a new category, you can find success if you are truly making a contribution to the market. But late entries into a market segment, as well as early stage companies competing with larger, established companies, often have a very tough go of it. In these situations, attention often turns to the Small and Medium-Size Business , or SMB, market.And why not? At first blush, the SMB market appears to be huge, as well as underserved. It looks like a perfect haven for an early stage or turnaround company with a solid product, but not quite enough differentiation, brand name, or marketing muscle to push out the big boys in the Enterprise space. So the decision is made to focus on SMBs.What's Wrong With This Decision?There ...
More About: Models , Market , Mark , Sine

Is It Time to Sell Your Hardware or Software Company?
2007-05-31 17:59:00
This is the point that most, if not all, technology entrepreneurs aspire to reach. They dream of selling their company and laying on a beach somewhere, a colorful drink with the requisite umbrella, cooling in their hand.There are a few of you out there that would never sell your company (it's your identity, after all), preferring to work forever lest you slow down and quickly deteriorate. But that's another story; we'll save your psychoanalysis for another day?Some of you that want to sell your company have the most grandiose plan of all in mind: An initial public offering (IPO) through a brand name investment banker, bringing not only unimaginable riches, but fame along with that fortune. But that rarely happens--we'll also table that discussion for another column?So let's get back to the great majority of you out there, who set out to some day cash in all of your hard work, by selling your company directly to another company. How do you know when the time is right?WHAT MAKES ...
More About: Hardware , Software , Company , Time , Sell

Is It Time to Sell Your Hardware or Software Company!
2007-05-31 02:21:00
This is the point that most, if not all, technology entrepreneurs aspire to reach. They dream of selling their company and laying on a beach somewhere, a colorful drink with the requisite umbrella, cooling in their hand.There are a few of you out there that would never sell your company (it's your identity, after all), preferring to work forever lest you slow down and quickly deteriorate. But that's another story; we'll save your psychoanalysis for another day?Some of you that want to sell your company have the most grandiose plan of all in mind: An initial public offering (IPO) through a brand name investment banker, bringing not only unimaginable riches, but fame along with that fortune. But that rarely happens--we'll also table that discussion for another column?So let's get back to the great majority of you out there, who set out to some day cash in all of your hard work, by selling your company directly to another company. How do you know when the time is right?WHAT MAKES ...
More About: Hardware , Software , Company , Time , Sell

Organizational Structures in Software & High Tech Companies
2007-05-12 00:37:00
So you've put together a hardware or software startup company. Chances are you didn't give a lot of thought to what the next step should be in organization development--you just wanted to bring in some revenue and find a way to keep the doors open. Or, maybe you gave it a great deal of thought, even before you bound your initial business plan--there are quite a few anal-retentive planning types out there--you know who you are!I don't mean to make light of this issue; it's actually quite a serious one. Let's look at a few of the questions to consider when deciding how to organize your company, as well as a few options.IMPORTANT QUESTIONS TO PONDERWhat are the strengths, weaknesses, and operating styles of the principals? I believe that this is a critical question to ponder, if one wants to organize the company successfully. One of my great examples is HP. Bill Hewlett and Dave Packard instituted a decentralized structure almost from the very beginning of Hewlett-Packard. They we...
More About: Software , Companies , High Tech , Tech , High

Strategic Acquisitions for Software and Technology Companies
2007-04-30 22:35:00
Acquiring new products or whole companies is a popular activity for many growth and market-share oriented companies. Is it a good idea?Well, as I often say--it depends. I get involved in company or product acquisitions quite often in my consulting practice. There is nothing inherently good or bad about acquisitions in the technology business. However, there is nothing inherently bad about opening a restaurant, either. Nonetheless, a very high percentage of restaurants (I've seen figures as high as 90%) fail within 5 years. The failure rate for acquisitions may not be quite as high as for restaurant startups, but technology acquisitions are also judged to be failures at shockingly high rates. Caution should rule when approaching either of these very popular activities. As I'm fond of saying about success or failure in any complex business activity--the devil's in the details.Common Motivations for Acquisition ActivityLet's examine the common reasons that acquisitions are consider...
More About: Software , Companies , Technology , Soft , Trat

The Mechanics of Email Marketing
2007-04-08 02:53:00
There are many different possibilities for technology and software companies, when it comes to formulating a marketing mix. I've written before about some of my favorites. One method that can be a big winner, if done well, can also be a big loser if done poorly. I'm referring to email marketing. If you want to be successful, you need to do it very well, as a result of SPAM and the general bursting of everyone's email inbox these days.Why Email Market ing ?Email marketing can be so productive for a company, because unlike more passive forms of online marketing (ex: PPC advertising, Banner Ads), you can usually target you audience very effectively. This is especially true if you are using an in house list; by definition, these are prospects that have some reason to have an interest in your products. In B2B marketing, there is an abundance of excellent niche lists available for rental, to use in a targeted campaign. In B2C they aren't quite as good overall, but there may be very good...
More About: Mail , Email Marketing

Open Source Software Business Models
2007-03-30 01:59:00
Open Source has been gaining ground for quite some time. Some would say, using the example of Linux, that Open Source has Microsoft and the rest of the traditional software giants on the run. No doubt that open source software has had a major impact on the economics of the software business, across many different market segments.But is it a good model to use in your software business--if you are actually interested in making money?Not Generally My Cup of Tea--But Let's Take Another LookI will admit that my feelings toward open source business models have always been lukewarm, at best. Maybe there's a bit of dinosaur in me. But the idea of putting into the public domain the code that you've sweated to produce, at great emotional and financial expense rubs me the wrong way. It trikes me as fundamentally opposed to the basic nature of capitalism and the entrepreneur.Like just about everything else in business, however--the devil's in the details. Using Open Source methods has been ...
More About: Software , Business , Open Source , Models , Open

Selling Through OEMS
2007-03-13 20:10:00
I've recently discussed selling through VARs as a distribution channel strongly favored (maybe a bit too much!) by many early stage technology and software companies. In this article I'm going to look at another channel that is often misunderstood and misused: The OEM channel.When a company goes about it the right way, OEM business can be an excellent additional revenue source for startups--and any high tech company, for that matter. Where I want to throw out a caution flag, is when a company decides they are going to rely on OEMs as its primary--or only--channel.Now this can work, you might say. And you would be right. But in most cases, I believe, it isn't the best way to proceed. It can work, if you have the right type of product, and you've thought your strategy through very thoroughly. The problem is with most companies, this the usual scenario. What I find more prevalent is the old "let's make it, and we'll get someone else to sell it for us" approach. As I've discussed...
More About: Selling , Through , Sell

Pay Per Click (PPC) Online Advertising
2007-03-01 10:43:01
It's known by several names: PPC or Pay Per Click advertising, CPC or Cost Per Click advertising, or sometimes by the best known PPC advertising engine, Google Adwords.Pay Per Click advertising is no longer new; as a result, much of the "easy" money has already been made. But I'm struck by how many companies I run across that are NOT using this method, to attract prospects or make sales on the web. While it is a competitive channel, unlike the early days of this medium, it is still one of the most effective, and cost-effective, method to promote most any product or service online.PPC should not only be a staple of the promotion budget of nearly every company, it should be one of the first promotion methods utilized on behalf of a new product, service or company. Here's why:Complex to Optimize--But Simple to StartPPC advertising campaigns can be very complex and extensive, and will be once you get them optimized. Many companies are spending tens of thousands of dollars/month on PP...
More About: Advertising , Online Advertising , Online

Dell Computer
2007-02-15 10:37:04
Dell has been in the news recently, and like many big companies that have had a glitch in their performance, not in a good way.Slowing revenue growth, accounting scandals and customer service issues--you've heard it all before. By the way, where was the seminar that all big company managements attended, encouraging them to cut corners on their financial reporting practices? It seems that the same pattern has been replicated to an astounding degree across a broad array of large corporations. There has to be some root cause of this; too much smoke in this area to be a coincidence. And of course, the "Professional CEO" relieved of his duties--and replaced by the company founder, returning on a white horse to his original role to refocus the company.These things have been so common in corporate America. Business writers may have been able to perform an automated "search and replace" in their word processor and write a new, yet the same, story for each additional corporation unfortunat...
More About: Computer , Dell , Comp

Search Engine Optimization (SEO) Through Online Bookmarking
2007-02-08 22:33:01
I've spent a fair amount of time talking about Search Engine Optimization in the past. The reason is that in the new century, this is as fundamental to marketing success as print advertising in the last fifty years, and maybe billboard advertising in the fifty years previous to the last fifty. The details and tactics of marketing change, but goals don't really--getting your products and business in front of prospective customers. It would be really hard to find a business of any size these days that doesn't have a website. If they don't, they are probably on the same path as the carriage builders of the early 1900's--becoming extinct.That's why I spend so much time exploring SEO: it is nearly universally critical to the market presence of every company, especially high tech and software companies. So here is one more new technique that you can use to build your company's Internet presence, including the always present goal of improving your ranking in Search Engine Results fo...
More About: Bookmark , Book

Marketing and Selling Technology Products through the Value-Added Reseller
2007-01-29 04:28:04
Selling through multiple channels is one of my preferred strategies in technology marketing. If done properly, it allows a company to fully exploit its expensive, hard-earned intellectual property to the maximum extent. One of the most popular channels (and one of my favorites) used to sell B2B software and hardware is the Value-added Reseller, or VAR channel.VARS ARE THE DISTRIBUTION HOLY GRAIL FOR MANY STARTUP COMPANIESIn fact, with a great many startup software and technology companies, building a VAR channel network to sell their companies products is the first thing they want to do, upon releasing their first product. This is especially true when the founding management team primarily comes from a technical background. The thinking goes; they are technologists who have created a great product. They don't have a lot of experience selling or marketing--and most of the startup money has gone to, and will continue to go to developing products. Why not just recruit a bunch of resel...
More About: Marketing , Technology , Products , Selling , Market

Search Engine Optimization
2007-01-25 04:25:02
Marketing on the Internet has been quite a hot topic for some time. That means different things to different people?Banner advertising, pay-per-click ads, email newsletters, direct marketing via email, affiliate marketing, Electronic Press Releases, etc. Any and all of these may be an important part of your optimal online marketing mix, depending upon the specifics of your business and resources.However, there is one online marketing method that nearly EVERYONE should be pursuing. In my consulting practice at PJM Consulting, I find that too many technology companies are not actively utilizing this marketing method, and it?s very surprising to me. I?m referring to Search Engine Optimization (SEO).SEO is the practice of modifying the content and infrastructure of your website, to ensure that the Search Engine s find it, when someone enters a keyword search that is highly relevant to your site. This just doesn?t happen automatically?unfortunately.Offline Marketing AnalogiesMost of you a...

Keyword Discovery Site
2007-01-25 04:25:02
I've run across yet another great free resource for marketing on the web. This site is focused on Search Engine Marketing (SEM). It's specifically targeted at finding niche keywords to use in the search engine optimization (SEO) of your website, as well as keywords to use in your CPC advertising campaigns.What's unique about this site is that it combines a number of important web-based resources for finding good keywords into one, easy-to-use interface. Simply go to this site, sign up for a free account, and you are then able to drop into one "basket" all keywords that you've found, using a variety of different methods that NicheBot has aggregated into a single interface. I find it an extremely convenient and fast way to conduct keyword discovery.The interface contains six different tools, all accessible with a single click: Keyword Discovery , Word tracker, Overture, Thesarus, Keyword Analysis and Google Ranking. NicheBot does a great job of providing you with key information. T...
More About: Site , Cover

Technology Acceleration
2007-01-25 04:25:02
Technology is a GOOD THING. Well, most of the time it is.I?m sure you?ve seen articles bemoaning the NEGATIVE role that technology advancement has played in our lives. I have recently joined the ranks of those doing the bemoaning.Gadgets are GreatDon?t get me wrong?I?m a tech guy through and through. I?ve chosen to work in the technology industry for 20 years, and I love gadgets as much as the next guy. I?ve got TIVO, a laptop, a cell phone, Wi-Fi, all the standard Hi-Tech fare. I?m an email fanatic. With great anticipation I?m eyeing high end Home Theater equipment; just waiting for prices to drop a little more, and for standards to settle a bit. I love many of the things that technology does to enrich our personal lives, and I embrace the productivity improvements that it brings to doing business. And I believe that those who create new technologies and products ALMOST ALWAYS have good intentions, from a societal perspective.The Law of Unintended ConsequencesBut I also believe tha...
More About: Technology , Techno , Tech , Ology , Acceleration

Strategic Advantage
2007-01-25 04:25:02
How does a company compete in the long run? I?m not talking about day to day stuff?but what sets your company apart, and gives it a place in the marketplace that allows it to survive, and hopefully, thrive?There are a lot of different terms used to describe the ability to compete: strategic advantage, differential advantage, competitive advantage, unique value proposition, etc. But all these terms mean essentially the same thing?what have you got that the market wants, that other don?t?Drinking the Kool-AidAt PJM Consulting I have the opportunity to talk to a great many technology company CEOs, many which are of the early stage variety. I?m taken aback that some of them don?t even understand the concept of strategic advantage. To start a company, and not have thought about what is going to allow you to break into an existing market, seems pretty strange to me. Ignorance is bliss, I guess. A far greater number of CEOs understand the concept of strategic advantage, but have a tendency...
More About: Trat , Stra , Strategic , Rate , Advanta

Spider Simulator
2007-01-25 04:25:02
Here's a neat tool that I ran across which can be used as "quickie" evaluator of the "searchability" of pages on your website. It works by mimicking the search engine spiders that are constantly out on the Web, evaluating and indexing Web pages for inclusion in search results. The tool is provided by Summit Media out of the UK, and it's free for all to use.To use Summit Media's tool, you simply enter the name your company and the web page URL you'd like it to evaluate. It quickly returns a basic analysis of your page, with respect to important attributes that the spiders are looking for. If you want your pages to move up in the rankings, potentially driving considerable more traffic to your site, this is a great place to start.I've found it to be a really handly little part of my SEO toolbox. For the heavy lifting I use a dedicated SEO software package, WebPosition. But for an easy, free, fast check of of a web page or two, you can't go wrong with Spider Simulator .Click on ...
More About: Pide

Online Journal for Internet Marketing Program Testing
2007-01-25 04:25:02
It's time to fill you in on another great Internet Market ing Resource that I have encountered. This one is called Marketing Experiments. MarketingExperiments.Com is a member of the MEC Labs Group and a division of Digital Trust Inc. MEC is an online laboratory with a simple (but not easy) five-word mission statement: To discover what really works. The Lab tests every conceivable marketing method on the Internet. The research is done by MarketingExperiments.com and funded by their Research Partners. A portion of the results are published in the Marketing Experiments Journal .Internet Marketing lends itself to much more objectivity than most offline methods due the ability to gather data quickly and quite competely. However even online, everytime you start a new campaign, you're essentially beginning from scratch and likely to waste effort and money prior to either getting it right or abandoning the effort. The great thing about the Marketing Experiments Journal is that they are cont...

Flattening of the Growth Curve
2007-01-25 04:25:02
In every company?s history there comes a time (or two or three or four times!) when your momentum slows, and the sales curve begins to flatten. This can be one of the most trying and frustrating times for software and technology companies. It?s certainly not as difficult as the startup phase, when ?crib death? is an ever present fear. And a no growth, flat revenue scenario is much preferable to declining sales combined with negative profitability that follows, which leads to a ?death spiral? if no effective action is taken.I do find this situation is often more confusing to company management than either the start up or death spiral scenarios. This is because it often occurs just after a period of fast growth and prosperity, where it seems that the company can do no wrong. As a result, senior managers are often in denial about what is happening?whereas in the startup or death spiral situations, the situation is much more obvious, usually motivating folks to take fast, decisive actio...
More About: Growth , Curve , Latte , Grow , Flat

Software and Technology Customer Service
2007-01-25 04:25:02
An under-rated competency, which should be considered more important to software and technology companies, is customer service. I guess that?s only natural; tech companies are very focused on gaining strategic advantage via technological advances and product differentiation. Once the product is in good shape, companies shift there focus, and become hell bent on marketing and sales activities to attract new customers. But what about taking care of existing customers? And how about the operational details of what happens when someone?be it a prospect, new customer or existing customer?contacts the company for assistance? I find these are areas that software and tech companies aren?t ?naturally good at?. It?s not part of the DNA of most tech companies. Very seldom will you see a founder or CEO who came up on the support, or customer service side of the tech business.Because of this, customer support is quite often an afterthought, a detail that senior management never seems ...
More About: Software , Technology , Techno , Customer Service , Tech

A Special Appeal
2007-01-25 04:25:02
To all the loyal readers of the Morettini on <High Tech> Management:I rarely diverge from High Tech Management topics in this Blog. The following note is about a very important cause to me, and to society at large.I am participating in the upcoming San Diego Walk for Autism fundraiser, a charity event near to my heart. The Walk for Autism Research is the signature fundraising event of Autism Speaks/NAAR, one of the prominent parent-founded charities which funds Autism Research. I am asking for your generosity and seeking donations as part of my participation in the Walk--all donations going to Autism Research. You can find more information on the event at the San Diego NAAR/Autism Speaks-Walk for Autism website.The most important reason to contribute to Autism Research is the suffering of the children affected by this hideous disease, along with the difficulties it presents to their families. More than 50 years after it was first described, Autism remains a mystery, and is aff...
More About: Special , Appeal

Favoritism in the High Tech Workplace
2007-01-25 04:25:02
I?m going to address a topic that isn?t often discussed formally by top management within a business, certainly not out in the open. It?s a major topic in HR circles, I?m sure. It?s also a major topic, in hushed tones, around the water cooler and during lunch among friends. But regardless of how little formal attention it gets, this is an important issue that exists in nearly every workplace, large and small. While it?s not something that gets addressed in management meetings or SEC filings, I?d venture to guess that it can have as much affect on a company as most ?high profile? management topics.The ProblemThe issue that I? m referring to is Work place Favoritism. If you?ve ever worked in an organization larger than two people, I suspect that you?ve seen it. Favoritism is part of human nature. No two people interact similarly to any other two, so it?s impossible for all workplace relationships to be ?equal?. It?s only natural to gravitate to people that you share common interests wi...
More About: High Tech , Tech , High

Free Conference Calls
2007-01-25 04:25:02
Let's talk once again about some great free sites, which help you run your business like a Fortune 500 company--on the thin budget of a startup. Web 2.0 has risen to bring back a multitude of "free" web-based services, which were common before the "original" advertising-supported web companies nearly went extinct after the dot.com bubble burst in 2001. For early stage companies in particular, the return of this "no-fee" model can be a great thing. All you need is to do a bit of searching, and you can find many great services on the web to help you grow you business, efficiently and cost-effectively. I've found a couple of sites that will make you look like one of the giants of industry, to your partners and customers, in one important area.Formal conference calls have historically been the domain of big companies, but no more. Here are two sites that allow you to set up the ubiquitous ?dial-in? conference call, to simultaneously connect multiple parties in one call. Everyone gets ...
More About: Free , Calls , Call , Conference Call , Ferenc

Is Advertising the Future of Software Revenue?
2007-01-25 04:25:02
There is a strong movement toward Internet-based software applications. Of this, there is little doubt. I have written on the SaaS trend in the past, and believe it is real. But sometimes market trends such as the move toward SaaS are overstated, both in terms of the speed of change, and also how much change the trend will ultimately affect a market. We have a word for this overstatement of a trend: ?hype?. So, is traditional software revenue model of licensing dead? Will all software eventually be ?given away? to the end user, and supported solely by advertising revenue?If you believe many of the pundits in the computer trade press, the answer is a resounding ?yes?.What do I believe? It?s a bunch of hooey. I?ve got a few gray hairs, and have been in the technology business for a while. In technology, this type of hype is neither unusual nor infrequent. For background purposes, let?s backtrack a bit, to few recent, major ?trends?, which were heralded as the ?next big thing? by the m...
More About: Software , Advertising , Future , War , Ware

Gates and Microsoft
2007-01-25 04:25:02
One of the big news items in the last couple of weeks was Bill Gate s announcing that he was leaving Micro soft . It wasn?t really an earth shattering announcement; he is intending to transition out of a direct operational role with the company over a two year period, and will remain Chairman of the Board after the transition. I?d like to congratulate Mr. Gates on his enormous accomplishments in the technology industry. I would also like to applaud his coming transition to devoting most of his remaining career (which is considerable, since he is on 50 years old), to philanthropic purposes via his foundation. If he is as successful in his charitable pursuits as he has been in industry, the world will likely be a much better place for it. Warren Buffet?s recent announcement that he is going to give away the bulk of his fortune through the Gates Foundation, is great endorsement to his promise in that field. I?d love to see him consider supporting my favorite charitable cause, Autism Resea...
More About: Soft

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