Social Media - Twitter Tips for Newbies, Noobs and the More Experienced

I’m often asked how to use Twitter. Carol Vorderman recently tweeted a question about who can see the messages ("tweets") she sends to specific people. So here are a few tips on this and other subjects.

These tips apply whether you are tweeting in a business or personal capacity, and are for the more experienced as well as for newbies:

(1) How long should a tweet be?

You probably know that each Twitter message or "Tweet" is not more than 140 characters. This is deliberately 20 shorter than SMS text messages, to allow SMS to be used with space for usernames and acronyms that start tweets, e.g. DM (direct message) and RT (re-tweet).

Tweets can therefore be sent from mobile phones using SMS, as was common originally. Now the smartphones have their own Twitter “apps” to view and send tweets.

But if you keep your tweets to 70-120 characters (leaving 20-70 characters spare). your tweets can more easily be re-tweeted by other people. This is because "RT" and your username is added to the re-tweet (see below).

(2) Views of the TimeLine

Whichever app you use, the tweets you see are just a selection from the master list of tweets called the “timeline”.

Using Twitter is like looking at the master timeline through a grill. Change the grill slightly, by changing the people you follow or by doing a search, and you’ll see a different set of tweets.

(3) Direct Messages

If you start a tweet “DM @someone” then only the someone will see it. Unlike "replies", DMs do not show in the public list of tweets for your account, nor in searches.

“DM” can be typed manually, as long as it is at the very start, or by using a “Direct Message” facility. (In “New Twitter” it is just called “Message”.)

You can only DM to an account (person) which is following the account you are using at the time.

However when they reply to you, depending on the app they use, it may come back as a DM or a public reply. Indeed they can copy and paste it into a new tweet. So best to assume that anything tweeted, by any method, is in the “public domain”. (The same of course applies to emails – I’m amazed at what gets forwarded to me, further down the email, that the original author certainly didn’t expect to go beyond the original recipient !)

(4) Replies and public messages

If you start a tweet "@someone", as happens automatically with a "reply", then normally only that person will see it. However there are two exceptions to this:

• If someone is following both you and the recipient, then some apps will display such messages
• Anyone looking at your profile will see all your tweets except DMs

So again, assume all tweets are in the public domain.

Note that if you put one or more characters (such as a space) before the @username, then all your followers will see the tweet.

When replying, consider copying some or all the original tweet into your reply, so the reply makes sense to the original tweeter.

Some apps have a “See Conversation” button which links a tweet into an intelligible series of replies.

(5) Re-tweeting

If there’s a tweet you’d like to copy to your followers, (as it’s funny, informative or whatever), then you can “re-tweet” it. This adds “RT” and the original tweeter’s username at the start.

As mentioned above, it is therefore worth  keeping your own tweets to 70-120 characters (leaving 20-70 characters spare).so your tweets can more easily be re-tweeted by other people.

Some apps let you edit the re-tweet and add comments. Or you can copy and paste it into a new tweet, together with the author's username, and manually start it "RT".

(6) Usernames

The username you use to login is fundamental to your Twitter existence. As far as possible keep the username the same as you “real name” which is also part of the set up.

The username is your address, whereas your real name displays against each tweet. Tweets from you show your real name, tweets to you only show your username. So best to keep the two names similar or the same, otherwise you are expecting people to remember two names for you.


When setting up your username, it’s therefore worth keeping it short so that characters are not wasted for Retweets and any other tweets sent to you. So @carolvorders is better than @carolvorderman, but @carolv or @carolvord are shorter and would therefore have been better (if either had been available).

You can change your username and real name at any time. However changing the username is like changing your telephone number – it causes all sorts of issues. Best to get ithe username right first time, if you still have the chance.

In registering the username, it is case-specific. So register "CarolVorders" and it will always appear in tweets as @CarolVorders. However:

• Registering "CarolVorders" prevents anyone else registering any variations such as Carolvorders
• The login process to Twitter is not case sensitive, so Carol can log in as CAROLVORDERS

(7) Blocking and Unfollowing unwelcome people

If someone sends tweets to you that you find really annoying, perhaps because there are too many tweets, there is the option to “block” them.

Likewise if you follow someone that becomes boring or annoying, then simply unfollow them.

(8) Celebrities

Remember celebrities are actually real, if not ordinary people. Some have a big ego, some don’t. If you send tweets to them, they will usually respond much like you would:

• They will re-tweet the funny, the oddball, or the worthy
• They will especially re-tweet if you offer praise for a book, show or whatever else they have done (but don’t over-do these re-tweets celebs!)
• They will reply to your sensible questions, at least when they have the time and inclination

However over-do the tweets you send to them, in number or content, and they will simply ignore you. They may even block you. You wouldn’t want to be “stalked” any more than they do!

(9) Tweeting Frequency

Tweets have a natural life of no more than around an hour. After that tweets tend to pass beyond the view of anyone looking at their Twitter feed occasionally. So this means re-tweet rates plummet after about an hour.

So if you’re trying to get a message across to your followers, and the world in general, then tweet fairly frequently during the day. However simply repeating the same message, even with different words, will infuriate your followers who are reviewing their tweets regularly. They may then unfollow you. Find different ways of saying it, and only tweet as often as you would tolerate if you were following yourself all day.

The other issue is to avoid tweeting in blocks. If you retweet, send a public tweet or even reply to people so that you are sending tweets in quick succession in blocks of more than 2 or 3, then you will saturate the screens of some of your followers. This can be very annoying for them if it happens too often. I find I simply don’t read blocks of tweets from the same person, and will then unfollow persistent offenders.

This issue. is especially relevant to sending automated tweets. Space the tweets out a bit in time so other people's  tweets are likely to appear between them.

If you are tweeting for an audience in a different time zone, then spacing tweets may still come through as a block to your followers, given the absence of tweets from other people they follow. Worth considering:

• Separate Twitter accounts for the domestic and overseas audiences, and/or
• Automating tweets, perhaps to repeat tweets but at a different time of day to suit each audience

(10) Differing Twitter Apps

If you look at tweets through Twitter’s own apps (either the old, new or mobile versions), then you can see what app and possibly device is being used.

For example you can see Philip Schofield uses Twitter’s own app on his iPhone and iPad. Carol Vorderman has an iPhone but also uses Twitter “via web”, probably on her PC. Dave Gorman tends to use Tweetdeck,.plus Twidroid  from some type of android mobile phone.

Tweetdeck is very common, and it’s worth knowing it has three columns for “Direct Messages”, “Mentions” (where their username is somewhere in the tweet) and their main “Timeline” for people they follow. TweetDeck also lets you add customised columns for searches etc. As “Direct Messages”, “Mentions” are more obvious to Tweetdeck users, they tend to see and respond to Mentions more than people using other apps. Other people typically have to click a button periodically to see their mentions.

Hootsuite is another common tool, which also allows you to handle Facebook, LinkedIn and other social media within the one app.

There are many other options. The apps are usually free, sometimes sponsored by adverts. So see what other people are using (as above), find out a bit about the apps from the websites, and try them out.

One word of warning  though. Watch put for any app that you can set to automatically download tweets every few minutes. It can be downloading thousands of tweets a day, each of which has an “avatar” (photos etc) of the tweeter. Depending on the app's design, it can download the same avatars repeatedly. This can consume vast amounts of your precious megabytes if you are using a phone, 3G dongle or otherwise have a limited monthly data allowance. It can get very expensive left on overnight!

(11) Multiple accounts

It is possible to have multiple accounts, such as for yourself and your business. But Twitter doesn’t encourage multiple accounts, and their own apps don’t cater for them. You’ll need to use another app, most of which do handle multiple accounts. Just try a few, as above.

(12) Lots more to say, but one last thing for now – Apps for Photos, Videos , Soundbites and longer tweets

If you want to write more than 140 characters, or add a photo, soundbite or video, then there are a number of apps like @twitlonger and @twitpic.. Again look at what other people are using, and see whether you like how they look to your readers, and the way they work

You typically use these apps by logging in whilst already logged into a Twitter account, and the app automatically connects to Twitter, If you have multiple accounts, then it is the account you are logged into at the time. Just check you are posting to the right account each posting!

Management Reporting – “SparkLines” and “Tweets” to Deliver Concise Information (in one cell & in one hundred and forty characters or less).

Senior management want relevant information quickly, clearly and concisely. Graphics are a great way. A picture can paint a thousand words.

A dashboard with graphs can convey so much. But a single screen view? Aren’t a few words needed to explain the “why” to go with the “what”?

“SparkLines” are a great way to get certain information across. These are tiny graphs that sit in a single cell. There’s a range of styles.

There are basic Sparklines in Office 2007, with a better set in 2010. You can also get Excel add-ins that work in 2003, if you use that.

This comparison between standard Excel and add-ins gives a good idea of what can be achieved. The danger then is using too many of them!

There’s also “Gauges”. These are ideal for a clear idea of a specific KPI target, such as sales conversion rate, versus a target or range.

But no matter how many graphs and graphics you use, sometimes a few words of explanation are needed. Hence maximum 140 character “Tweets”.

The idea here is to express the commentary so concisely, each point fits into a single cell. That is quite an art. Practice makes perfect.

If you’re wondering what that looks like, count the characters in the headline and paragraphs above (or copy into Word and use “Word Count”!)

Business Performance Management - Forecasting and Reporting with SaaS

Recently I attended a seminar about a cloud SaaS-based planning, budgeting and forecasting system.This has been built by people from a background with leading systems such as Hyperion and Cognos Planning. Potentially very valuable, for businesses that can't afford such tools, or want something more flexible.

There were a number of general points made at the seminar:

1. For a start-up business, flexibility in design of the financial model is key. But as the business becomes established and grows, very soon having a rigid structure becomes more important (subject to the next point). 
2. However forecasting needs and business structures tend to change, such as with re-organisations. The modeling system must be able to cope
3. Whilst Excel provides ultimate flexibility, its drawbacks are significant - difficult to use in a multi-user situation, easy to get formulae wrong, difficult to roll up a consolidation, and needing constant checking (to name a few)
4. Would you use Excel for an HR or CRM system? So why for one of the most important functions of a business, its financial planning?

Well until recently planning systems of any note were the preserve of the richer businesses. These systems typically require involvement of IT personnel to make changes. This means planning users are then not able to control the model themselves, and more importantly when. No wonder many prefer Excel, where the model is all under their control.

Whilst there have been a whole string of systems that leave control in the hands of the users, these have tended to come and go as technology has changed. The power of Excel has killed off many of them, despite Excel's shortfalls. Just one or two of the other systems of note remain.

A good planning system will provide, especially by comparison to Excel:

1. Automatic consolidation roll-up (of regions, departments, business units etc)
2. Multiple dimensions (customer, territory, etc) that is just impractical in spreadsheets
3. Formulae applied consistently, such as working out employee on-costs
4. Clear data input sheets that won't break Excel
5. Easier version control
6. What-if on multiple scenarios, far quicker than using Excel
7. Overall a substantial reduction in cycle time and cost, where the analysts spend less of their time on administering the system and more on planning and review

The cloud opens up additional possibilities.:

• One system that can be accessed for input and review worldwide, wherever there is an internet connection
• Encryption of the data and/or definitions, so that the "picture" can be kept confidential (no need to email Excel around for review on unsecure email)
• Strong backup and recovery potential - often lacking when using Excel

This particular cloud SaaS software can be run in the cloud on a shared database, or on a dedicated database. The latter allows the user to decide when the version upgrades take place - something to avoid in the middle of an intense planning process. The software can also be installed on the user's own internet server if required.

With a 3-user system around £2500pa (or £1500 for 1 user) for the basic version, this entry point means the power of a full corporate-grade planning system is now available to even a reasonably small business. It can also cope with many more users than that, and payment only follows need.

Whilst it is not sold principally as a reporting tool, it does include actual vs budget reporting, including dashboards. With the correctly-structured database behind it, you can drill down not only into budget detail but also the transactions behind the actual numbers.

If you would like to talk about this and other planning / forecasting system solutions, do contact me by email at challisc @ camwells.co.uk or by phone on +44(0)1628 632914

SaaS Cloud Computing - The Hype, The Truth and The Wardrobe

Last evening I had a long chat with the MD of a SaaS (Software as a Service) business. His company specialises in Service Management for larger businesses with 20-500 engineers out in the field. If his SaaS system goes down, thousands of engineers would be left twiddling their thumbs. His customers' businesses would literally grind to a halt. That's "business critical"!

He had taken his company's on-premise solution and converted it to run in the cloud. His customers have the luxury of sitting down with their SaaS provider to cover the service in minute detail. With customers that demanding, he knows absolutely what is needed for "business critical". He talked about "4 9s" and "5 9s" uptime, where unplanned downtime is essentially non-existent. We talked about what else is involved in running a business critical system.

We also talked about a number of other SaaS solutions he's involved with. At the other end of the scale is a system that typically cuts 30-40% off the freight costs of a distributor reliant on parcel courier firms. Whilst this can mean millions of pounds of savings to the distributor, a delay in processing isn't a big issue.

Two key conclusions from this:

1. There are a vast array of SaaS applications out there, and plenty new ideas on their way. It is like opening a wardrobe full of great clothes - but you still need to choose the right app for the job..
2. What each SaaS application  needs to provide can be quite different. For example if you are looking at CRM (customer relationship management), accounting and a front-end business process like service management, different issues will be important. Comparison to the quality of any existing on-premise system is a key factor. It's a matter of "horses for courses" and "choosing the right cloud"

The Hype and The Truth

When choosing a SaaS app, the vendors will do their best to persuade you that what they are offering is "safe". "You won't need to worry about that", "We've covered that", etc, etc.

But how? In many cases you are well advised to delve that little bit deeper on certain issues, depending on the specific app and its business criticality.

Here are a few of the statements I've heard from SaaS vendors and cloud advocates that are worth a little further thought:

(1) “Security is not an issue” / “Security should not be an issue”

“Security” means different things to different people. I tend to regard it in two distinct parts:

• Access security, to stop unauthorised access either to view, take or damage data
• Backup and disaster recovery  

Security is an issue for most new users, before they understand what goes on. Whilst it should not be an issue, the security standards in different parts of the SaaS cloud industry vary widely. If you are thinking of putting an app into the cloud, where the data and/or the processing is business critical, be sure to review providers carefully.

(2) “There has NEVER been a documented case of catastrophic data loss with a cloud service”

Keeping to the security theme, this phrase could relate to failure in access security or data recovery.

For data recovery, yes there has been at least one documented case sadly. About a year ago US telecoms carrier T-Mobile halted sales of the Sidekick cellphone after a server caused millions of customers to lose personal data

I also know of another unpublicized incident where the hosting provider hadn’t spotted that the backup had stopped working due to data volumes breaching a limit, so no backups were available when a recovery was required. There are undoubtedly more cases that have not been publicised.

Nonetheless cloud providers, through economies of scale, can usually provide a more robust computing environment than businesses can do for themselves on-premise, at least for smaller businesses. Many businesses do not have a disaster recovery plan, and if they do, how often is it tested? But equally what are the SaaS provider’s arrangements and testing frequency?

For loss of data from the database, it is not usually known for organizations to publicise such losses – indeed they probably don't know it has happened. However it’s also true that on-premise systems are often leaky. Customer databases are notorious, so moving to the cloud may even be an improvement in this respect. But you need to consider the specific app, and how SaaS compares to existing or potential on-premise systems.

(3) “We’ve had online banking for years, so SaaS security is OK”

Thinking of access security, the banks all have a different approach. Some use physical devices to generate codes and/or random letters, others random letters from passwords. In all cases the access mechanism is more sophisticated than just username and password.

Username and password is the typical level of security for remote access to on-premise systems. But there’s often a second stage to access each specific application. Depending on the app you are considering, is one level of username and password in a SaaS system sufficient?

(4) “Encryption for privacy of data will slow the system down too much”

Would you want someone working at the cloud provider seeing your data and taking a shine to it? Maybe sell the data to a competitor? There are at least two ways to adequately encrypt a database so that unauthorised access “through the back door” won’t work:

• Encrypt the whole dataset
• Encrypt just the definitions, and leave the incomprehensible data un-encrypted

Both methods are in active use, without significant performance issues. The performance impact depends on the technology the SaaS provider uses. You need to decide whether your data needs to be encrypted, and where necessary choose a supplier who can provide it.

Encryption is also more commonly applied to the data being transmitted to and from the server. Do you require this?

(5) “SaaS relies on multi-tenanted databases” / “There’s no security risk with multi-tenanted systems”

Many SaaS offerings are only available where some or all customers (“tenants”) share the one database. This makes it easier to manage, and therefore cheaper to provide.

But Sod’s Law says if it can go wrong it will go wrong. How long will it be before a report is produced with a mix of everyone’s data?

What techniques are the SaaS provider using to ensure this doesn't happen. Do they offer physical segregation on a separate server ? Some systems are available as single tenancy (at a price), or indeed to run on an internet server in-house.

(6) "Providers make sure they get things right, as their business depends on it"

So they should. However examples like those above and situations like BP in the Gulf of Mexico, show there can be incompetence or cost-cutting that jeopardises best intentions.At the very least you need to establish what the SaaS provider is officially doing, and not just take their word for it.

(7)  “No consultancy is required for configuration, implementation or training” / “SaaS has a more modest implementation cost”

It’s certainly true that many, but not all, cloud systems are trying to make configuration as easy as possible. They are also trying to make the user screens intuitive. But so are the better on-premise systems. For a system of equivalent complexity, the experience of what set-up works best is equally relevant to cloud as to on-premise. The time and expertise needed is comparable.

Then there are all the implementation issues around change management, and specifics like data conversion. It is easy to get this all wrong. Once the system has been selected and configured, there is little if any difference between SaaS and on-premise for implementation.

Whilst many providers are encouraging you to do a DiY job, it’s best to assume an equivalent amount of professional help for SaaS at each stage as with on-premise. This is subject to the differences highlighted in these two articles on selection , where a quicker project can mean lower professional fees for SaaS, and implementation where similarities mean very similar professional involvement for SaaS and on-premise.

(8) “How many examples would you like for on-premise failures? SAP just settled with Waste Management on a $100 million failed project WM claimed cost them $350 mill on revenue etc.”

There’s no question that there are substantial failures with on-premise projects. This is typically because short-cuts are taken, and/or the people involved are inexperienced.

The same will undoubtedly be true with cloud computing, not least because the providers are telling buyers they can cut costs by cutting corners.

We’re already seeing specialist re-implementation consultancies for SaaS products used by larger businesses.. Unlike most computing, SaaS is working up into corporates from smaller businesses. As the projects get bigger, the cloud project disasters will start to happen. Not because it is cloud, but because of poor implementation technique.

(9) “Upgrades are smaller and easier to test. Nothing will go wrong”

This is often true, up to a point. But like on-premise software, there have been major problems where an upgrade has not been handled sensibly. Also the changes can be quite significant if the functionality of a relatively lite launch version is being expanded rapidly into a fully-fledged application.

In particular, any packaged software needs beta testing by members of the user community. Does this happen for the specific SaaS app? Can you take part in end-user "beta testing", to check the new app still works in a way appropriate for your business? Sadly critical problems have been known to slip through when there's been inadequate testing by end-users.

It also helps if the company has senior management experience of application development, rather than a hosting company getting into apps.

(10)  “Cloud is Pay-as-you-go monthly billing”

As discussed in the earlier article, monthly billing is common, but is not always the case. It also varies whether you have to make a minimum commitment, such as a year, or can stop at any point.

Pay as you go billing can be a major issue for the IT providers, which in turn can become a major issue for you. Lump-sum payments for 1, 2 or 3 years may become more commonplace.

Depending on  the app, there can also be scope for  "gain share" agreements, where the SaaS provider earns according to savings provided, with or without a monthly fee.

(11)  “SaaS offers a richer user experience and productivity”

This area is very much a matter of comparing one software product against another. There is no inherent advantage of cloud SaaS systems, except that they tend to be newer systems that may better use more modern technology, However that means they are less well proven than established offerings. You take your pick.

(12)  “Utility computing models inherent in SaaS leads to more innovation”

Why? How? The innovation may come from the fact that new entrants tend to have less functionality than established offerings, and need to be developed to catch up. New entrants can also select new technology, rather than being constrained to decisions made some years ago. But as above, new means unproven. You have the option.

(13) “Data centre location is NOT an issue”

This is an issue in at least two respects, and if in any doubt seek legal advice: 

1. Data held outside of the European area is a Data Protection issue unless there is a special arrangement such as the US “Safe Harbor” scheme  
2. Any data held in the US is subject to the Patriot Act, amongst others. This give the US government powers of access to data that means the UK government, for example, is not prepared to hold UK citizens’ data in the US.

(14) “User numbers and computing power can be scaled up and back down easily.“

You can certainly scale up easily. Some systems let you adjust back down monthly. But many systems require a 12-month commitment to any increase, which makes scaling back down more difficult.

 
IN CONCLUSION

There’s no doubt that SaaS cloud computing can provide significant benefits. It’s just a pity that some of the SaaS advocates are trying to hoodwink you into using the cloud by using misleading statements.

Nonetheless, by working with the right SaaS providers, in the right way, these and other risks can be tackled and the benefits realised consistently.

So what’s next for your systems?

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News Update - Monday 11/10/10

Here's the pick of the last week's news stories that are likely to impact your business:

Libya Closes .ly Domain: Do you use bit.ly or another .ly domain? Beware. And where else does such power lie in the internet?

Facebook Groups and other changes. Time to check your personal and business settings on Facebook

Why drop GoogleApps? So why start?

Internet Access Continuity: As BT's network gets opened up to TalkTalk and now Virgin, sharing infrastructure can't help businesses and households and who need resilience in internet access

Business lessons: Latest case studies on why start-ups fail. Issues relevant for FTSE 100 down to mom'n'pop

Social Media – The Power and the Groups (LinkedIn & new on Facebook)

This week Facebook launched some new functionality. They've trumpeted the fact that you own your data on Facebook, and can now extract all your data to transfer to a rival service (at least in theory). You can also see more clearly what data is being passed to external applications. But of more interest to businesses is the new “Groups” functionality, that replaces a more simplistic “Old Groups” facility.

Many of you will, be familiar with Groups on LinkedIn. Anyone can set up a group there. Any user can join any group, though you do have to ask permission to join some of them. Groups are typically used for topics like Cloud Computing, alumni of a firm or college, clubs or locality. But also anything else where a group of people share a mutual interest.

LinkedIn Groups provide the opportunity for discussions between members who share that interest. The Group manager can post messages to all members without necessarily being connected. This is also effectively true of anyone who posts to a group discussion. It’s therefore a great way to get in touch with people you don’t know, in addition to keeping in touch with people you do know.

The new Facebook Groups is similar. The official Facebook view on Groups is that they are for families, “bestest friends” and other personal groups where you would want to share photos and information you wouldn’t want to share with friends generally – who might include parents, clients or boss!. There’s a lot more to it than that. For example someone can add their own friends to their own Group, so unless you get email notifications, you won’t easily know what Groups you have been joined into!

For business the temptation might be to have a Facebook group for your business and/or individual brands. This could be instead of or in addition to a presence with “Pages”. “Pages” is much more than the name implies. It lets you set up discussion groups under a number of headings. There are various choices.for businesses, entertainers and celebrities.

The name “Camwells” is set up as both a “local business” and a “product”. That was mainly to prove that a brandname can be set up in each category, by you or indeed by any one else. Likewise I have set up a Camwells “Group” to at least reserve the name!

Therefore from both a personal and business perspective it’s worth making sure your presence and admin settings suit you for each of these services, now and each time the functionality changes. It's also worth monitoring your business name and brand names, whether formally registered or not. This is recommended even if you don’t expect to make active use of the services.

But the Groups and Pages services of LinkedIn and Facebook can be highly beneficial when used well. It’s great these tools are “free”. The challenge is to use them effectively without it costing an arm and a leg in time or extra people.

How are you going to use Groups and Pages for your business?

Escaping Excel Hell – Using Graphical Add-Ins

If you’re familiar with my articles on "Escaping Excel Hell", then I’m often suggesting you replace Excel with a proper database-backed system.

This can be for planning/budgeting or a host of other business applications.

But one area where Excel remains extremely useful is for management reporting. Whilst there’s a key role for structured dashboards, Excel also has an important role to play.

One way or another information from a database system can be placed into Excel, where you can format it and present it in a variety of ways.

However there are two useful formats that are not available in standard Excel:

1. SFE Sparklines (see comparison with new standard features in Excel 2010)
2. Gauges for management dashboards (see one example in the screen shot above, which is just one of several formats)

Used selectively and carefully, these graphics can add great value to management reporting.

The gauges are available under a free 30-day trial from the Camwells website.

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KPIs – Why? What? Who? When? Where?

Key Performance Indicators (KPIs) is a term that means different things to different people. Here’s a quick roundup:

Why?

When properly used, KPIs can dramatically improve business performance.

Conversely the wrong KPIs can wreck performance, either by encouraging the wrong behaviour, or by taking people’s eyes off the ball.

What?

KPIs are often results like “Revenue”, but are most powerful when used as “Drivers”

Who?

Starting at the top of an organisation, these can filter down each level of the organisation.  What’s key to each person in achieving the business’s objectives?

When?

Anything from annually to hourly or less. Weekly can be good, to tie into weekly management meetings.

Where?

Are you taking proper advantage of KPIs in your business?

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SaaS Cloud Computing – Is It Worth The Hype?

As with every other generation of computing, SaaS (Software as a Service) cloud computing is portrayed as wonderful. Best thing since sliced bread. Or at least since silicon chips.

But does it live up to the hype?

It’s clear that there are substantial benefits with SaaS cloud computing. We looked at some of them before, including better remote access, potentially better backup and disaster recovery, and typically quicker to start implementation (though is very similar thereafter).

But is it all a bed of roses? With other types of computing  it’s only by addressing the pitfalls and risks that the benefits can be properly realised. Is SaaS cloud computing any different?

Of course not. Let’s look at what cloud computing really is.

WHAT IS SaaS? 

SaaS is actually “outsourced hosting of packaged software, provided as a service”:

• “Outsourced” means handing control of day to day activities to a third party, with all the benefits and drawbacks that brings, such as needing a clear exit path
• “Hosting” means data will be held somewhere else, potentially overseas. Many SaaS systems are hosted by a company other then the software provider.
• “Packaged software” means it has all the benefits and disadvantages of on-premise packaged software, and has similar characteristics to on-premise software of equivalent complexity
• "Provided as a service" means you do not have to pay for the IT infrastructure, you just pay for use of the system (in one of a number of ways)

There are other forms of cloud computing if you want to develop your own apps and/or host your own apps.

WHAT DOES THIS MEAN?

Firstly it is worth properly understanding  the pros and cons of SaaS cloud before subscribing for any service. That way you can avoid unsuitable providers, and put the right internal practices in place

Secondly don't believe the hype. Statements such as "Security is not an issue" and "Data centre location is not an issue" should be taken with a massive pinch of salt. Next week we'll look at statements like these and the reality behind them.

Thirdly think very carefully about adopting the DiY shortcuts many cloud providers suggest. Change management, project management, data conversion, and many other aspects of an implementation are similar if not identical between SaaS and on-premise solutions:

• Selection Process for SaaS - How Different from On-Premise?
• Implementation Process for SaaS - How Different from On-Premise?

Lastly, if in doubt ask. We're happy to help.

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News Update - Monday 4/10/10

Here's the pick of the last week's news stories that are likely to impact your business:

Microsoft Office Web Apps: Having announced in March that they were going to focus on developments for the web, they nonetheless have to tread carefully with Office. An update to the Office web apps seeks to build on the notion of Office as a combined software and web service platform.

European e-tailer Trustmark: With the Cloud Industry Forum about to launch a trustmark scheme for cloud providers, the EC is starting a trustmark scheme for etailers that is hoped will expand cross-border trade

Silent calls: Is your business making automatic telephone calls? There are now substantial fines

Twitter stats:

• 29% of tweets actually produce a reaction - that is, a reply or a retweet.
• 6% of all tweets are retweeted, virtually all within the first hour after the original tweet
• Nearly 80% of Twitter's users experience the service through Twitter.com. However, this is unlikely to be representative of the more active users, who tend to use services such as Tweetdeck.

“Curation”: Letting you capture tweets and other social media activity on a specific subject, such as your company, its products or services

Living with the Apple iPad (part 3)

Back in May I talked about the launch of the iPad in the UK. In July  I wrote about some tips for purchasing and using an iPad. In August I updated this with further tips, mainly on syncing with a PC. Now after 10 weeks of use, where the iPad has hardly left my side, here is a further update looking at what’s good and bad about the iPad.

Firstly why buy it?

I just love it. This emotional response far outweighs any of the negative logical points below.

I love its neat size. I love the touch screen and its magnification features. I love using standard apps such as email and Twitter in a portable format. I love that I can run iPhone apps at a size that makes them much easier to use. I love …. The list goes on. The device itself just works beautifully. It runs at least all day on one charge.

It was bought principally for passive use - to read websites and documents and watch YouTube videos  - but also to write and run simple business presentations. But what I’ve found is that I’m spending much more time on it writing stuff – tweets, notes of meetings, emails, etc.

So would I be better off with a Windows netbook or small laptop? That is the question I’ve been researching in terms of buying another device.  Without going into too much detail:

• Netbooks provide a similar size screen, or slightly larger, with the advantage of a “proper” keyboard
• Netbooks running Windows (Starter Edition) or Linux can run Word, Excel, Powerpoint, other PC apps, and Flash videos on websites (see below) which the iPad won’t run
• However Windows Starter is a heavily cut down version of Windows, so I’ve been focusing on smaller “laptops”, with and without a DVD drive (which netbooks do not have)

The conclusion I’ve come to is:

1. Use a smaller laptop (or maybe a netbook) to run PC software, Flash, and/or if a lot of data entry is needed
2. Run an iPad for everyday tasks and ultra-portability. Unless a laptop was necessary, like really necessary, it would be the iPad by my side

What tips are there for purchase?

As I mentioned in the earlier articles:

1. Go for a case such as the InCase instead of a screen shield. The InCase acts as a protector and a stand, both for own use, but especially for running slideshows and business presentations
2. Think twice whether it’s worth spending £100 on the microSIM socket models. This sum doesn’t include a 3G contract. The new MiFi devices from Three and Vodafone (subject to coverage) are £50 or less, and can be shared with your laptop and other WiFi devices, again excluding contract. But the charge doesn't last very long, so you need to carry a mains or car recharging cable.
3. Also think twice whether it is buying more than the 16GB RAM version. More is only needed if you are likely to want to store lots of videos or pictures.
4. But as neither the RAM nor the 3G slot can be upgraded later, go for the best model you can afford.

I have also found it useful to lock the screen in the landscape position, so the “menu” button used to change apps is always on the right (or left if you prefer).

But what are the frustrations?

There are a few principle frustrations, none of which relate to the device itself, in two main categories:

1. Limitations in the software provided as standard by Apple
2. Limitations in the third party apps, especially PC software that has been rather too heavily cut-down for the iPad

Limitations in the software provided as standard by Apple

Out of the box, the system has five fundamental frustrations:

1. The Safari web browser does read PDFs, but does not have a “Find” function. For these and longer web pages, it’s all by eye!
2. No support for Flash. You can watch YouTube videos and BBC iPlayer, but most other videos or sound streams on websites cannot be viewed. This means you cannot watch or listen to any live TV transmissions nor videos embedded on the BBC website, amongst others. (But note that as Flash crashes regularly on a PC, a non-Flash standard such as HTML5 is preferred as a future solution)
3. Difficult to load photos from a PC. All photos wanted on the iPad must be held permanently as a copy in one specific folder on the PC, otherwise what is already on the iPad gets overwritten and lost
4. It is not multi-user, so confidential information cannot be hidden if you let someone else use the device. It would be far better if there was a simple set-up for multiple log-ins and a public folder, similar to Windows
5. The absence of left and right arrows on the keyboard can be a bit annoying, especially when trying to correct spelling mistakes. 

(Tip: You can get around the lack of arrow keys in two ways (a) by tapping on the beginning or end of a word, and (b) by holding your finger down on a word until a mini magnifying glass appears, and sliding held-down finger to move cursor. There are also "Undo" and "Redo" keys hidden on the second and third levels of the keyboard, accessible by pressing the numbers and then symbols keys)

The three principle optional apps which are available at a small charge are poor:

• “Pages” for word processing is OK, as it can read and write simple Word documents. For writing notes, I tend to use the standard “Notes” app instead
• “Numbers” spreadsheet is almost unusable for new spreadsheets, but can read and write simple Excel
• “Keynote” for presentations is actually quite good, but can’t be used to run anything but simple imported Powerpoint or Mac Keynote presentations (suggestions welcomed for any workarounds!)

The “Office2 HD” app for iPad at only £4.99 is supposed to have much better Word and Excel read and write functionality (so you can edit a Word document and send it on). This is officially only for 97-2003 (XP) versions, but not 2007 or 2010. I have just downloaded it, and will try it out with a range of Office versions and report back later.

Otherwise you need to try out compatibility yourself. Fonts are likely to be a problem, and you will need to standardise and coordinate things like this if necessary.

Limitations in the third party apps

The iPad runs on the same operating systems as the iPhone4:

• All iPhone apps run on the iPad, in “portrait” mode but with a x2 button that magnifies them to fill the available screen
• Specific iPad apps are also available, designed for the iPad screen

These are all downloaded from Apple’s “ iTunes” site, whether the apps are free or chargeable. The site clearly groups apps into iPad and iPhone.

Native iPhone apps tend to be very good, albeit formatted for the small size of an iPhone screen. The following major apps are currently only available in iPhone format :
•    Facebook (plus third party clients in iPad format)
•    LinkedIn
•    Foursquare
•    MetOffice (with information no more accurate than on PC)
•    Some newspapers, such as the Guardian

Native iPad apps are often cut down versions of PC apps. These tend to have frustrating omissions. It’s as if the iPad version of each app was rushed out at minimal expense. To take a few:

1. YouTube: The iPad version does not run playlists, so each video has to be run independently, and when each video finishes the playlist sequence not visible to see what next to play. Fortunately frequency range and response virtually indistinguishable from a standard PC, using the same standard headphones, so I’ve gone back to using the PC when available. In addition, I’m finding a YouTube video opened from a Twitter or similar link does not run until clicking to run in the Safari browser
2. TweetDeck: This keeps crashing at random (the only app to do so) and is missing several standard features, such as not being able to see details of a person. This means that it is not possible to start following a person mentioned in someone else’s tweet. There has been no update for over 2 months, despite many recorded complaints
3. Twitter’s own iPad app: This is not a patch on either the “old” or “new” Twitter PC apps.

So in Conclusion

The iPad is certainly a tremendous piece of kit. It is far more than just a gadget. What works well, works very well indeed.

However, it would just be good for the software issues mentioned above to be fixed sooner rather than later. Then the iPad would be just brilliant!

Social Media - Customer Generated Comments - Blessing or Curse?

We discussed a business using location services such as FourSquare a couple of weeks ago, I mentioned that they are great when people comment positively about you to spread a good word.

But whether you are a venue or another type of business, what if there are any negative comments?

Negative comments can be genuine, but they can also be spurious and indeed defamatory – perhaps from competitors or disgruntled employees.

How you deal with these is crucial. In my experience a genuine complaint that is well handled produces customer loyalty that you just don’t get by always getting it right!

Conversely dealing well with comments which are clearly wrong or exaggerated is equally important. Anything you put on a website will speak volumes for you as a venue.

So news arrives from the US that some 300 venues or more are clubbing together for a possible “class action” against TripAdvisor. This is one of the more established and respected customer feedback sites.

So how should you react to negatives?

Firstly it’s obviously worth monitoring what’s being said on feedback sites like FourSquare and TripAdvisor, and social media sites like Twitter and Facebook. If you spot something critical that looks genuine, how are you going to respond? Privately? In public on the site? Both?

But if there’s something clearly ridiculous, what’s the plan? Should you ignore it, flame it, address it coolly, or go legal? Does the website provide venues with a mechanism to tackle such comments? It all depends.

But if nothing else, remember that anything you say online will stay online. With Google caches and the like, any comment will stay somewhere online no matter what you try to do to remove it!

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Escaping Excel Hell - Solutions for Planning and Forecasting

Financial planning is key for any business. Each business is different, so a flexible system is required.

For this reason Excel is often the natural choice for the job. But anything more than a very simple model becomes very difficult to build, and certainly difficult to maintain.

There can be issues with aspects such as:

• Ensuring there is a 3-way P&L, balance sheet and cash flow. This is especially important where finance needs to be raised, or plans need to be made within cash constraints.
• Virtually impossible to check formulae do actually work as expected across the whole model
• Extra trouble adding up various entities reliably, be they departments, business units or companies (consolidation)
• Difficulty when sales need to be looked at in a number of dimensions, such as territory, market, product variants etc
• Issues with allowing multi-user access
• Confusion trying to deal with versions as the planning process develops

It is therefore preferable to use a system made specifically for the job. Something which is sufficiently flexible to handle each business and its needs as they change over time, yet provides a strong multi-user platform.

Systems available for small and medium sized businesses were no match for those affordable by large businesses. Now strong cloud systems are becoming available at a price that also makes them attractive to medium and small businesses. These systems not only address the issues above, but provide benefits such as remote access, encryption, automatic backup and disaster recovery.

If you would like to talk about these options, do contact me by email at challisc @ camwells.co.uk or by phone on +44(0)1628 632914

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Social Media - Twitter Limits - Will They Affect You?

Ordinarily you can tweet on Twitter without any real restriction. But there are actually limits, which are worth bearing in mind, at least for business use. Or if you retweet and reply a lot.

Business Performance Management - Dashboards - Good, Bad or Excel?

The idea of management dashboards, taking the automobile concept into performance management, has been around since the 1970s. Best practice has advanced considerably, not least as technology has provided ever more powerful and cheaper solutions.

But as with anything powerful, the opportunity to do more harm than good is ever present. Cheap tools make it tempting to do a DIY job. That could prove very expensive.

CIMA, the management accountants, have produced a useful paper that sets out the role of management dashboards within the overall topic of performance management – “Improving decision making in organisations - Unlocking business intelligence” . This was published in September 2008, so some of the details are a little out of date - for example Microsoft PerformancePoint has now been incorporated into SharePoint, but dropping the budgeting  functionality.

CIMA also run a series of public Masterclasses that cover dashboards. Discounts are available for CIMA & ICAEW members and some other people - see details for each course, pages 10-13.

Or if you want to cut straight to the chase, do give me a call on 01628 632914.

In any case a lot of people like speedometer “gauges”, as in the graphic above. Here is an example that can be incorporated into Excel, for which a free trial is available.

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Business Models - How could you emulate Poundland?

So the story goes, a man bought 10 pairs of reading glasses from Poundland for £1 each. That's £10 he reckoned it cost him to save his marriage. He was going to put a pair in each room so he stopped bellowing to his wife to help him find his one existing pair.What a good idea! (But see comment below)

In Poundland every item is one pound. With some 299 stores after 20 years of trading, they make substantial, rising profits. So how?

They won't say exactly, but there's two streams of business:

1. Specials. They buy surplus stock, such as end of lines or cancelled orders. That way their suppliers avoid a major loss.
2. Regulars. They offer items that usually sell for just over a pound, by buying in megabulk directly from the manufacturer at the lowest possible price. 

For items selling just below a pound, they can provide manufacturers with megabulk purchases to justify special packs not made for anyone else, such as 1.5kg bags of sugar instead of 1 kg.

Poundland also runs on super-slim margins, relying on high volume through their stores to deliver profits. Admin costs are cut by making everything one sales price. 

In negotiating buy price, they also offer swift payment. None of this 60 day malarkey the big boys impose on struggling suppliers. Payment can be right with delivery, possibly on order. Now wouldn't the world be easier to trade in if everybody did that?

The trouble with that idea, of course, is that not everything flies off the shelves the same week. I remember a trader from my youth that was selling cut-price jeans. Demand was high, and the list of stores expanded rapidly. Then bang! Bust! They had to pay suppliers before they had sold enough to cover their costs, and the money ran out. It's called "over-trading"and is a major risk of rapid growth. Poundland apply sound business sense and clever use of systems.

So here's another case of everyone winning... manufacturers, customers, landlords and indeed fellow retailers who appreciate the extra footfall. And Poundland earns the profit.

So how can Poundland's principles be applied to your market?

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Cloud Computing – Is the Big Issue “Control” or “Trust”?

What is the big issue in using cloud computing? “Control” or “Trust”?

At the ICAEW IT Faculty’s seminar on Cloud Computing last Friday, several questions were voted on at the end by the delegates. Having listened to various presentations, their main concern about using cloud computing was “loss of control”.

The industry itself, through the “Cloud Industry Forum” (CIF) is launching a Code of Practice on 18th October. This seeks to provide advice to buyers so they can make an informed choice on what they call “Cloud Service Providers”. This includes certification of specific providers against agreed criteria and information. CIF says it’s about “trust”.

Trust and control go hand in hand. If you cannot control the systems directly, who can you trust to do it?

One of the speakers at the ICAEW seminar usefully compared traditional outsourcing with SaaS Cloud (Software as A Service). There are several similarities, such as buying in specialist expertise. and moving from up-front capital to monthly expense.

But there are also substantial differences. The key one is that outsourcing agreements are typically negotiated one-to-one, whereas most SaaS services only offer standard terms. Take it or leave it.

So if you are going to outsource running any of your business applications (apps) to a SaaS cloud provider, especially business-critical apps, who are you going to choose? Who are you going to trust?

As I’ve said before I am “positive but cautious” about using SaaS cloud, and therefore about recommending clients to do so. There are substantial benefits possible, such as remote access worldwide, improved disaster recovery and typically lower costs. But there are some key risks and pitfalls that need to be managed by the provider and/or user.

My discussions with leading members of the cloud provider community have concluded that, in general, industry “best practice” is not yet good enough for business-critical apps such as accounting and ERP. There are however some providers with first rate offerings.

The CIF initiative is effectively a good first step in defining “best practice” for the industry. The Code of Practice  is asking providers to set out aspects such as how they provide “Provisions for Service Continuity”, the exit paths available, and the level of liability insurance carried. It also asks for background information about the provider.

Let’s see how this develops. In particular let’s see whether it adequately defines “best practice” and engenders trust. Then let’s see whether more people are prepared to cede control and grasp the benefits of the cloud.

News Update - Monday 27/9/10

Here's the pick of the last week's news stories:

Mobile Payment  The new smartphones and the apps they can carry produce a number of business opportunities – incluidng writing and selling apps, and getting involved with the apps such as with Foursquare. Making payments via mobilephone is becoming more common. Now VISA’s payWave is being trialed on the New York subways and taxis.This requires a physical change to the phone, in putting a card into the phone’s memory slot. But what if you are already using the slot? Nonetheless micro payments are becoming a reality, which opens up all manner of new services.

Outages in Social Media: Both Facebook with a two and a half hour outage, and Twitter with a re-tweeting issue.These certainly show these services are not infallible. As businesses place greater reliance on them for marketing and customer service let's hope the problems don't get worse.
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Cloud Security: Of more concern is the Interpol chief’s Facebook account being hacked and the unease in the US that the Electronic Communications Privacy Act (ECPA) was enacted way back in 1986 and needs to be updated. Potential cloud users such as the UK Government are also concerned about powers in the US Patriot Act. Together these make using US-hosted cloud services a real issue.

Longevity of Apps: Microsoft has announced that their “Live Spaces” blogging platform will close and some 60 million users will be migrated to Wordpress. This follows their withdrawal in the last couple of years of MS Performance Point planning functionality and MS Money. Whilst the potential withdrawal of software apps has long been an issue when selecting software, Microsoft seem to be making a splash of it.

New Twitter, new revenue. The launch of a new Twitter client and new ways the company is trying to make money provide opportunities for businesses to leverage Twitter


Attending meetings on an iPad New apps available

Social Media - New Twitter, Monetization, Business Models and You

Twitter. It feels like it has been with us for ever. In fact it was conceived and launched only in 2006. The 140 character size of "tweets" arose because at the time the service was designed to be used with SMS text messages on mobile phones, as well as on the web.

Twitter is a free service which has not carried any form of advertising. Until recently it was only guesswork how they would make money. Nonetheless Twitter has raised over $50 million from venture capitalists. Apparently Twitter is looking  for $1.5billion of revenue in 2013. So how will Twitter make this money? And how will that affect you and your business?

At the heart of Twitter is a database of users and tweets, recently extended to include the optional location “geotags” of the locality of where a tweet was sent. Twitter has allowed external software to read and write to that database through its API (Application Programming Interface). As a result a whole forest of “Twitter clients” has emerged, such as Tweetdeck. Many of these systems do carry advertising. So it is not unreasonable for the authors of Twitter clients to pay for usage of the API. In addition, search engines such as Google apparently pay to access Twitter accounts.

In April Twitter announced “Promoted Tweets” that would appear at the top of tweet searches, much like Google searches. In the summer they talked about a host of other ideas. However for businesses each case is just another form of advertising and PR, not fundamentally new..

New Twitter (September 2010)

Then this week Twitter launched “New Twitter”  This is a substantially enhanced Twitter web client of their own which they bill as “easier, faster, and richer experience”. This is in “preview” (beta) mode currently with a small number of users, with full rollout planned over the next few weeks.

The first thing to notice is that this new client places Twitter in direct competition with the Twitter web clients that previously provided a better interface than Twitter’s own. Is Twitter wanting their cake and eat it?

Nonetheless this new client is clearly aimed at increasing the number of registered, and more importantly “active” users. Apparently they are looking for 1 billion by 2013. The target is to make it a key part of everyone's daily lives.

How Can You Use Twitter In Your Business?

There are a variety of ways Twitter can be used by a business, from the smallest to the largest. These include:
•    Marketing, including geotagged tweets for local businesses
•    Customer service
•    News announcements
•    Reactively monitoring what is said about your business, especially complaints

Whilst the “New Twitter" does not add much in the way of underlying functionality, the increasing use of Twitter means it should form a core part of any business’s marketing mix. How are you using it?

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Escaping Excel Hell - Processes Desperately Seeking Automation

What business processes are you running on spreadsheets that really ought to be on a proper multi-user system?





Solutions available for:

• Planning  and forecasting
• Management reporting, analysis and dashboards
• Order processing
• etc etc etc

Just ask

Email challisc @ camwells.co.uk or ring +44(0)1628 632914 

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Business Performance Management - How Important Are Multiple Dimensions?

A few years ago a young AIM-listed client asked whether we could build a cash flow forecast model for their business. Their business plan had been to take two years to develop a major product, and in the meantime use two interim products to provide initial cashflow. These products hadn’t sold as well as expected, and further funding was needed.

The audit was imminent, and there needed to be a clear 12 month forecast to allow the auditors to provide a clean audit report. A major issue that was focusing my client directors’ minds somewhat!

We did indeed build a forecasting model. But in the absence of an affordable multi-user system, it was built in Excel. All sorts of issues, but the one to highlight here is trying to cope with multiple dimensions.

The major product could be sold in several different markets, around the world in various territories. In each country each market was likely to have a different sales partner, adding this product to their existing offering to their specific market. Varying local markets and shipping costs would make pricing potentially very different across the globe.

Initially we focused on sales by territory. Then it became clear that the CEO was thinking principally about sales by market. Ideally it would be sales by sales partner. Whilst physically possible in Excel, this would be more complicated than the client could reasonably maintain for themselves.

There was also the issue of multi-dimensional reporting of actual activity against these forecasts and budgets. Nightmare for them using Excel.

As I mentioned in a previous article, last week I reviewed a cloud-based system that would deal comfortably with this situation, provided the multi-user access the client really needed.

If this type of situation  sounds familiar and you’d like to talk about practical solutions, so contact me by email at challisc @ camwells.co.uk or by phone on +44(0)1628 632914

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Cloud Computing - Business Models and How They Affect You

Whether you are an end-user, reseller or software provider, the rise of cloud computing will affect you. Probably significantly. But how? What can be done?

Once upon a time the internet promised “disintermediation” - the demise of the middleman. Now this is happening increasingly in the IT software industry as a result of SaaS cloud solutions (Software as a Service).

Disintermediation has happened in many industries such as air travel, where you can now book directly with the airline. The ultra-cheap flights are a product of that change. Travel agents have had to change to survive. Many haven't.

With car insurance the high street brokers have tended to disappear, and the comparison sites are just middleman brokers online (albeit in some cases a front for the group insurers). Despite this, I was interested to see a new insurance broker opening in our high street - I must ask them what's going on!

With software applications (apps) it's happened to a certain extent in being able to buy software direct from the author. In general this is low value software that would not have been commercially viable via resellers.

However traditional IT resellers are now under threat from cloud SaaS services. Software vendors are offering software apps to users directly for uses such as accounting and ERP – in the mid-market applications traditionally the preserve of resellers.

The more complicated cloud services still need implementation help, such as configuration and training. But in many cases support is provided direct by the software vendor, rather than from a local reseller as before.

But does this mean the end of resellers, with their transformation into implementation consultancies? This has long been the model for SAP and other corporate systems. Will this become the norm in the mid and small business markets?

Probably not. The simpler software systems can be sold “off the page” using demo videos and other pre-recorded techniques, without a salesman involved, helped by recommendations. The more sophisticated the system is, the more likely a discussion and/or demonstration will be needed – be this face-to-face or via a webinar. The vendor can employ sales people themselves, or continue to use “the channel” of resellers – or both. Even the simpler systems benefit from more people promoting the system, who will all expect commission.

But wait a minute! Many SaaS cloud services are paid for on a monthly subscription, with the benefit to users of a lower cost and delayed payment. The other side of this coin of course is a later cash inflow for vendors and resellers than before. Something has to give.

This situation is a major headache for the SaaS cloud industry! The life insurance industry has long coped with this problem by paying their brokers a lump sum when a policy is taken out. But this means the vendor has a significant negative cash flow for sometimes a year or more. When this model is applied to SaaS, a reseller may still not get as much for a sale as for an equivalent on-premise solution. Which will they prefer to sell? SaaS vendors have to pay their resellers adequately if the resellers are going to sell their services rather than other SaaS or on-premise options.

The industry is applying at least three approaches:

1. With monthly instalments, the reseller/broker gets a share of each instalment. Fine perhaps for extra services being sold, but not for a reseller’s bread and butter business. Reseller takes the pain
2. Or the life insurance model, which leaves the vendor substantially out of pocket. Vendor takes the pain, and the reseller to a certain extent if initial sales value lower
3. Customer pays a lump sum for a 1, 2 or 3 year contract, and commission is paid out of that. The customer doesn’t get the benefit of monthly instalments, and to that extent takes the pain. The vendor and reseller also take some pain with less money up-front than for on-premise software

Approach 1 means the end of resellers as we know them, as they cut back to become implementation specialists. Approach 2 means SaaS vendors have to be much better capitalised than previously to cope with growth. Either approach means less money available for vendors and resellers to help a customer in their buying decision, and indeed to help them buy their services. For the customer, it also means a higher risk of their IT partners failing, on whom they rely.

Approach 3 provides lower initial cost to customers whilst giving vendors and resellers more money to share upfront when the sale is made.

In Conclusion

Most of the SaaS cloud industry is adopting approaches 1 or 2, depending on whether the vendor can afford to pay lump sums up front, with a few using option 3. Those adopting approach 2 are offering resellers and brokers a larger amount up front, so their services will tend to be sold in preference to those using option 1.

It will be interesting to see if a larger proportion of the industry goes down the approach 2 route, and even use approach 3.

As an end-user customer, approach 3 still lets you benefit from a lower initial cost than equivalent on-premise solutions. The vendors and resellers then at least get a lump sum to share to pay for pre-sales assistance and to keep them in business. For many users, approach 3’s improvement in service and reduction in risk may be worth it. For others lowest cost will always win.

For a reseller, which approach do you prefer? Which vendors offer it? And as a vendor, will approach 1 get you the volume of sales you are looking for, or do you need to look at the other two approaches?
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News Update Monday 20/9/10

Here's the pick of the last week's news stories:

Facebook comments - How to respond to customer issues on your business pages

Gigapie - The start of a whole new breed of business games?

Foursquare button - Encouraging people to visit your shop or venue

IE9 only for Windows 7 and Vista - Good enough reason to replace those XP PCs?

Gist - As if LinkedIn wasn't enough. What is Gist saying about you?

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Social Media - What Can Location Services Do For You?

A couple of weeks ago I mentioned Foursquare, Gowalla and Facebook Places. These are all location-based services that you can leverage if you have a "venue" business - a theatre, a local shop, a shop in a national chain or any other place that people would visit.

So as a business, how can you take advantage of these services?

Let's look at how they work. The general principle is that people "check-in" to the place when they visit (although in  practice they only need to be nearby). They can then leave comments and tips, positive or negative  As a proprietor, this can be a great way of getting people "engaged" with your business, and spreading a good word.

But equally you need to watch out for any negatives. Having said that, it's not much different from any existing web forum where places are discussed - except comments are likely to be far more prominent on these location services than general forums.

When I wrote before, Facebook Places wasn't available in the UK, but it now is. Twitter has also got in on the act by allowing people to optionally tag their location to their tweets (additional to the usual 140 characters). Let's look at this first:


Twitter

Twitter is unusual in this set in that many tweets are made and read using a third party apps such as TweetDeck, which links to Twitter using an "API" interface.

Within  Twitter itself, there is the option in your account to "Add a location for your tweets". This is the "neighbourhood" you are in. The way this works is complicated, especially if you move around.

But if you are a local business it is worth switching this on, so that every tweet has your neighbourhood location tagged against it. . When someone reads a tweet for that neighbourhood, they can see a map of the neighbourhood and get the option to search all other tweets from that neighbourhood. That's when yours would appear.

The big proviso is that this new facility does not necessarily work to/from third party apps, so for the meanwhile is mainly limited to users of Twitter itself.. However if you can do it for your tweets, why not?

Facebook Places

Facebook provides a specific app to use on iPhones and other devices. A menu option is "Places", which uses the location your device is registering. This can be accurate to street and location within it.

By pressing "Check In" it provides a list of  places within about a kilometre to choose from. Or you can add a new place at the precise location you are at the time. When you check in you can add people who are with you, and then you get the option to "Like" or "Comment". However these flags do not seem to appear to people browsing from their iPhone (but probably will later).


The check-in with the comment do appear on your main Facebook wall, so your friends will see it in their news-stream.

Obviously this is useful for an individual to see when friend Joe has reached the local pub. But if you are in business how can it be used?

This Facebook page sets out how it can be set up for a business and linked to the business's page. But the comments from users suggest it isn't working properly, and there also seems to be an issue for any business with multiple locations. More importantly, it's not clear what you can do with it once you've set it up, other than provide information

Gowalla

This is actually a quick and easy way to see the various Google views (satellite etc) of where you are at that moment.

You can see "Spots" places up to about 3.5 km (2 miles), but only check into those up to about a km away. When you do you can add a comment which can optionally get posted to your Facebook and/or Twitter account.

There are "Trips" which are a collection of "Spots" that you can visit as a set, for example pubs in a town. Other than setting up a collection of your businesses into a Trip, it's not yet clear how a business might use Gowalla (can anyone tell me what they have in mind as I can't find anything quickly on their website)

Personally I find FourSquare much easier and more fun to use...

FourSquare

For some time Foursquare was "the only game in town". Literally, as it is a game - principally for towns. You collect points and badges. If you have visited somewhere more often than anyone else you become the "mayor".

The idea is that a venue can offer the "mayor" each day a free drink or some prize, and thereby encourage people to visit. However as you can check into anywhere up to about a km away, this is literally only a  game.

As the longest established location tool, most venues already exist on the system. It's easy to set up a new venue, and some people have set up their own house. That lets them be mayor - until someone who hasn't visited "ousts" them. Must be very disconcerting.to no longer be the mayor of your own home!

Foursquare is trying to compete with Facebook in  having its own "friends" . When you check into a place, you can add a comment and you can optionally tell your friends and/or Twitter, but not Facebook. You can also add "tips" e.g. "try the banoffee pie"

For your business Foursquare has a very clear webpage. There's also an increasing number of tips articles. 


In Conclusion


As an individual it's fun to use Foursquare. Gowalla does nothing for me, except the link to Google Maps. Facebook looks as if they have rushed out their location offering but it can be of some use. Adding a Twitter location can be fine, given it's only a neighbourhood.

As a business the ones to watch are FourSquare and Facebook, with Gowalla a distant third (at least in the UK). There's no harm adding a location to your Twitter tweets, which helps people find them when in the neighbourhood.

It's early days, but for businesses with shops and venues this aspect of social media can't be ignored, and could become very valuable. How are you going to leverage each of these services?

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