May 19th, 2012
Kenney Ho, a staff reporter from Korean newspaper The Chosunilbo (The Chosun Daily) sent me a set of delightful questions.
According to Kenney, The Chosunilbo “has a history of 90 years, has been the most dominant, and influential paper of all time in Korea. It is the No.1 newspaper company in Korea with more than 1.8 million circulation, firmly holding the largest market possession. The paper is recognized Asianwide, where there are many readers in Japan and China.”
-You said “All mobile device vendors experiencing losses are not likely to really recover”. Even though, it wouldn’t mean that the employees, executives of Nokia has completely nothing in hands for recovery. If you are the CEO of Nokia right now, What are your steps to make Nokia recover its deficits?
My statement was based on the historic data which shows that 14 phone vendors have either exited the business or lost their independence during the last decade. No vendor that has reached a period of prolonged loss making has recovered. These are just observations and it’s possible that Nokia may be the first to recover. However, going by the patterns of the past, it would be very unlikely. When I thought about the reasons why companies have not been able to recover I came to the second observation about the way phones are sold. Once a brand reaches a point where it’s considered “risky” for distributors and operators to range they tend to defer purchases which leads to a spiral of continuing losses and more damage to the brand. The market amplifies “distress” and recovery becomes impossible.
If I were the CEO of Nokia I would set course for turning the company into a new business. I would approach the market asymmetrically and not try to compete directly with the other vendors. I would look toward services, platforms and software solutions and de-emphasize hardware.
-Many experts say that because Nokia dominated phone making industry in the 2000s, they maintained a corporate culture of complacency, which led them to decline. Do you agree with this? If you agree, Can you point out the examples of Nokia’s complacency?
Complacency would mean that Nokia would not invest or try new things. This is not quite right. The company invested in software, services and platforms. It tried many new things and had a large R&D budget. It was the leader in mobile software for many years. There was, however, a culture of arrogance about their position. This meant that they did not think the basis of competition would change. They thought they were too big to fail. They did not challenge the core business model of hardware-first and try to find an internal disruptive business.
-Experts note that Nokia should have reacted directly to Apple’s iPhone appearance at 2007. What should have Nokia have done at that time?
The iPhone showed that software and experiences matter more than operator relationships. Nokia did a lot of research on user experiences and software but when the decision came to implement the ideas, the constraints of hardware and logistics and operator preferences took precedence and the software was compromised. What Nokia needed to do is build product around software not software around the hardware and the market.
-Since Apple’s iPhone appeared in 2007, Samsung took a Fast-follower tactics which made them successful, which Nokia could not. Do you think Fast-follower have advantage over first-mover?
I don’t consider first-mover or fast-follower to be accurate descriptions of strategy. Success follows from innovation and only from innovation. There are various forms of innovation: there is new market creation, new business models, low cost or distribution innovation. Nokia tended to create low cost innovations which opened new, low-end markets. Apple created a new market for browser-based devices and for app-based experiences. These were enabled by an ecosystem that benefited from integration.
Samsung implemented a portfolio strategy with a large number of devices and price points which allowed them to find market niches that could be exploited. This was a distribution innovation. Each strategy has advantages and disadvantages and each strategy is usually linked to company core priorities and processes. There are times during a technology cycle when one strategy is better and another is worse. This is why companies find themselves successful and then fail. Their processes don’t match the technology adoption cycle.
For example, in the PC market there is little potential for new experiences tied to an integrated device (except for tablets) and hence there is little growth opportunity for an Apple-like approach. The innovation that matters in the PC market is mostly cost reduction. Nokia was doing cost reduction at a time when voice products were commoditizing. Cost reduction does not work when the basis of competition is new experiences and new business models. As smartphone hardware commoditizes, it’s unlikely that Samsung will have an advantage unless is goes to a low-cost approach and enters into direct competition with low-end devices.
-Can you predict the ‘Big 5′ in handset industry 10years from now? Many people think the list will include Apple, Samsung. Who else might be on the lists?
There is no guarantee that Apple or Samsung will be the top vendors 10 years from now. I expect Chinese brands to become dominant in market volumes. I expect online service companies like Amazon, Baidu, Facebook to create new platforms which and have their own devices, perhaps in large volumes. I expect new input methods (like voice) to create new opportunities and perhaps new platforms and ecosystems. I expect Google may make a lot of money. One thing is for sure, being a hardware-oriented company without software and services and platforms and ecosystems is a sure path to becoming disrupted.
-Nokia was the leading company in Finland. What are the reactions of Finland towards Nokia’s downfall?
People tend to blame each other for failures and this is the main discussion topic in Finland: who’s to blame. The failure of a company is rooted in complex decision processes which usually take years to run their course. It’s quite futile to lay blame on persons, especially since the same persons were celebrated for their wisdom at another point of time. At the same time as Nokia is failing however, another Finnish startup is celebrated world-wide and about to go public: Rovio, the maker of Angry Birds. It will be bigger than Nokia. Finland should make sure there are more Rovios to come.
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May 19th, 2012
IT business industry is becoming a smart place. The new era businesses requirements for smart and better solutions for hastily rising developments. Offshore outsourcing services is such one such services that is emerging and spreading with a great pace.
Indian offshore outsourcing services are one of the fastest and largest rising business sectors all around the world. This IT sector takes care of more than 1000 of projects each and every year. These impacts on the national economy straight away. It has improved the level of annual gross incomes in India. India is providing its services on all IT demands of both places our nation and other offshore nations. With the homely demand for website solutions and software development enhancing, the India software development organisations have also enhanced their level of excellence levels.
With the anticipated spiralling offshore outsourcing services demand in IT sector, the Indian software development services giving companies have fetch millions and billions value work or projects to our nation.
India’s leading offshore outsourcing services providing companies are located in some of the major cities of India such as Hyderabad, Delhi-NCR, Bangalore, Pune, and Chennai. Though other cities of the nation too are now up-and-coming as hub for software development, the stated cities have turn into the spirit of IT development with chief software development in india existing here. All this expansion has come after the country emerge out of economic recession that had absorbed the entire globe. Since then the constant development has been because of comfortable restrictions and other guiding principle ruling the outsourcing business. The boost in competition amid number of software development companies to verify its merit in the world market too has added the passion in offshore outsourcing India services. This development had led to India offshore outsourcing software development companies inflate their domestic and international functions.
Going down the remembrance lane, it was not long back that India was measured an under developed nation with no competent resources. But gradually, with the commencement of software development services from India it progressively increased velocity. During the primary phases of IT sector, there was lethargic expansion for quiet sometime. The government guiding principles forced many limitations. But with the commencement of development in job opportunities and nations economical situation the government modified the policies. The next phase saw the forthcoming of joint-ventures amid Indian and overseas companies. Joint ventures were put up to take work or projects and finish it in smaller time and with professional resources. In the present moment we have many flourishing joint ventures and some very booming self-regulating software development houses that provide services and business all across the world. At present the Indian offshore outsourcing services have no motives to look behind. These companies are continuing with much satisfaction, pride and keenness to proffer the best of services to their clientele.
There is definitely no doubt that offshore outsourcing has really turned into a vital business policy in the hands of smart business women & men and different corporate organizations. As a subject of fact, as the universal economic crisis strike every country, more and more business owners commence to hold the offshore outsourcing as an successful way to flourishingly cut down expenditure without compromise the quality of work, and thus keeping a vigorous profit scope as well.
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May 16th, 2012
Well over half of the world’s personal computer users — 57 percent — admit they pirate software. That includes 31 percent who say they do it "all of the time," "most of the time," or "occasionally," plus another 26 percent who admit they pirate, but only "rarely." Fewer than four users in 10 (38 percent) say they "never" acquire software that is not fully licensed. These startling findings come from a survey of approximately 15000 computer users in 33 countries that together make up 82 percent of the global PC market. Ipsos Public Affairs conducted the interviews in January and February of 2012 as part of the ninth annual BSA Global Software Piracy Study. Learn More at www.bsa.org
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May 16th, 2012
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May 16th, 2012
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May 13th, 2012
The Russian based “Pirate Pay” startup is promising the entertainment industry a pirate-free future. With help from Microsoft, the developers have built a system that claims to track and shut down the distribution of copyrighted works on BitTorrent. Their first project, carried out in collaboration with Walt Disney Studios and Sony Pictures, successfully stopped tens of thousands of downloads.
Hollywood, software giants and the major music labels see BitTorrent as one of the largest threats to their business.
Billions in revenue are lost each year, they claim. But not for long if the Russian based startup “Pirate Pay” has its way. The company has developed a technology which allows them to attack existing BitTorrent swarms, making it impossible for people to share files.
The idea started three years ago when the developers were building a traffic management solution for Internet providers. The technology worked well. It was able to stop BitTorrent traffic if needed, which made the developers realize that they might have built the holy anti-piracy grail.
“After creating the prototype, we realized we could more generally prevent files from being downloaded, which meant that the program had great promise in combating the spread of pirated content,” Pirate Pay CEO Andrei Klimenko says.
With this new business model in mind the company continued to develop their product, and it didn’t take long before an investor was willing to support it. Last year Pirate Pay received a $100,000 investment from the Microsoft Seed Financing Fund.
Microsoft Russia’s president praised the innovative idea, which his company would also be able to use in the future.
With the cash injection the company continued working on their anti-piracy solution and December last year Walt Disney Studios and Sony Pictures were the first to hire Pirate Pay’s services. For a month Pirate Pay’s technology protected the film “Vysotsky. Thanks to God, I’m alive,” with moderate success.
The company doesn’t reveal how it works, but they appear to be flooding clients with fake data.
“We used a number of servers to make a connection to each and every P2P client that distributed this film. Then Pirate Pay sent specific traffic to confuse these clients about the real IP-addresses of other clients and to make them disconnect from each other,” Andrei Klimenko says.
The end result was that 44,845 transfers were successfully stopped. How many downloads slipped through, and whether the downloaders didn’t simply try again later is unknown. Pirate Pay don’t disclose their exact rates but say they charge between $12,000 and $50,000 depending on the scope of the project.
While Pirate Pay claim their technology is truly unique, it is not the first company to tackle BitTorrent piracy. The now defunct MediaDefender charged hundreds of thousands of dollars to attack BitTorrent trackers and upload fake torrent files.
MediaDefender was rebranded to Peer Media, and under this brand they continue to offer these and other anti-piracy services.
Whether Pirate Pay is truly different and more effective than any of the other solutions remains to be seen. Even if it’s hugely effective, the scattered nature of BitTorrent makes it practically impossible to stop all infringing downloads of a movie, while the costs may outweigh the “losses” that are prevented.
Companies that really want to make Pirates Pay are probably better off investing in improvements to their legal offers.
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May 13th, 2012
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May 10th, 2012
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May 10th, 2012
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May 10th, 2012

Coupa Software programs are growing like mad by fixing a difficult problem for companies  — helping them know if they’re investing money, and a lot of time, purchasing the supplies they require.
The organization just arrived a $22 million series E round, getting its total funding to $34 million. It’s had 13 consecutive quarters of sales growth (potential 14, based on Boss Rob Bernshteyn). It’s responsible in excess of $21 billion in investing by companies and it has large clients like Reebok, Subway, Toyota and Sales force.com.
Coupa is really a software-as-a-service for buying  –  meaning whatever a business buys, they are able to get it done through Coupa. It monitors prices, contracts, home loan approvals and removes the requirement for employees to purchase their very own stuff and submit expense reviews.  What worker wouldn’t like to eliminate expense reviews?
But what’s really awesome about Coupa is it can evaluate the investing habits famous its customers after which inform your company the way you compare. It will explain things like “inside your company approval here we are at purchasing a cell phone is 4 days and experiences 8 people. The typical within the network is 72 hrs and 4 people, so perhaps you should streamline your process,” states Bernshteyn. Companies could possibly get feedback on if they’re having to pay a lot more than others, too.
Bernshteyn states by using this last round, he averted money. “I was searching to boost $10-$15 million.” After raising $22 million he switched the tap off. “We did not actually need many we don’t wish to get too greedy,” he states.
Bernshteyn was formerly Vice president of worldwide marketing of SuccessFactors. He began there when the organization only were built with a dozen employees it later went public making millions.
Coupa’s backers include Crosslink Capital, Battery Endeavors, BlueRun Endeavors, El Dorado Endeavors and Mohr Davidow Endeavors.
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