Defining the Prosumer product

This week, Do.com announced it will be closing down in January. It may simply be the latest in a string of social networking apps to call it quits, but it also highlights the difficulty in developing Prosumer products that generate market traction.

do-com-logoPositioned as a productivity solution, Do.Com was also viewed as an app that straddles the work/personal divide, to be a veritable Prosumer product.

The problem is, it did not have a clear vision of what defines the “Prosumer” market, and it did not adequately redefine workflow needs in a permeable environment that increasingly blurs the dividing line between the personal and the professional.

As a result, Do.com probably missed an opportunity to craft a new perspective on the elusive Prosumer demographic. For example, as a Prosumer, my primary need is to consolidate all the social networking and collaborative platforms I use. At the same time, I need to manage the different types of connections and co-ordinate the different degrees of sharing that these tools offer, but not based on “projects” or “transactions” – rather, based on “relationships” (which are not the same as “connections”).

Despite their attempts to capture “3-dimensional” linkages amongst my networks, most collaborative tools and social networking platforms are limited by their 2-dimensional perspective of linear connections, rather than multi-dimensional relationships.

Until tools like Do.com do a better job of managing the qualitative and contextual nature of professional and personal relationships (and offer better ways to manage the different facets of these connections), they will be interesting, but not essential.

POSTSCRIPT: Here’s why Facebook can never be taken seriously as a productivity or professional tool – when editing my “official” Facebook page the day, I was prompted to add my “likes” for music and films – why would I want to share that sort of information with my professional contacts (unless it was really relevant to our relationship – client karaoke night, perhaps?).

Focus, Focus, Focus: from great idea to MVP in one (not so) easy lesson

Last week’s Lean Startup Melbourne session explored what it takes to turn your great startup idea into a minimum viable product (MVP) before launching in the market. And as the entrepreneurs pitching their product ideas soon found out, it’s all about focus: on the problem you are solving, on the solution you are offering, and on connecting with your target customer.

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The evening’s event was once again hosted by Inspire9, and generously sponsored by BlueChilli, and the ever-entertaining and animated Kussowski Brothers, along with newcomers Startup Victoria and Xero.

As well as a panel comprising 4 of Melbourne’s leading startup experts, there were a couple of lightning talks from Sidekicker and Attendly on how to find a tech co-founder, and how to identify your customer respectively.

On to the evening’s brave pitchers:

First up was ClassWired, a platform for helping ESL classes go digital. Building on personal and professional experience, the product aims to make ESL lesson content more social and the student experience more personal. The challenge is that the ESL market is divided between a handful of major players (who are easy to identify, but could leverage their scale to deploy their own solutions), and a large pool of independent teachers (who are harder to reach). While a need may exist for more interactive ESL content, the panel felt the revenue model lacked clarity, and as yet there was no compelling reason for customer adoption. ClassWired could establish some differentiation through superior instructional design, or by building content development tools for use by tutors.

Next came a presentation by Reflow, which entertained and baffled in equal measure. The product is designed to handle high-volume messaging traffic, from sensory, mobile and web sources across logistics, apps and environmental monitoring. Although the pitch was deep on technical domain knowledge, and again drew heavily on personal and professional experience, the panel was unclear as to the precise problem being addressed, and the solution being offered. Talk of “virtual hair dryers” and “sensory message overload” only helped to confuse the audience. Maybe there are opportunities in outsourcing, or in data analytics – but with cheap and plentiful hosting capacity out there, Reflow needs to find some focus.

Changing tone and gears came StillReel, which streams digital art to an LCD monitor near you. With the idea of bringing limited-edition digital artworks to a wider audience, StillReel offers a monthly subscription model, and is exploring the consumer, commercial and corporate markets. Leaving aside the concept of scarcity value in digital art, the overall feedback suggested that the market needs to be clearly defined, and the offering made more explicit. Is it simply art? Is it entertainment? Is it pandering to the elite? From my perspective, Brian Eno has created a different model via 77 Million Paintings, and no doubt social media is already “liberating” digital art and video from the galleries and museums.

Curated shopping service, YourGrocer offered the best and most succinct presentation on the night, and told a great story about how the experience of “validation in Brunswick” has helped them build a viable business connecting local grocery outlets with time-poor customers. With several options for revenue streams, supplier partnerships and even a franchise model, YourGrocer could be spoilt for choice – but like everyone else, they need to focus (and decide whether they are a community service, a social enterprise or a commercial venture).

Finally, MeetLinkShare offers virtual data rooms – a service somewhat clumsily describing itself as “The Swiss Army Knife of Mobile Collaboration”. Having built a proven platform for secure team-based document and content sharing (including annotations, tags, custom fields, multimedia and version control etc.) the team is now contemplating two significant (but quite separate) market segments: 1) Virtual Data Rooms for SME’s and 2) Private Tutors. They are also seeking a new round of funding. Again, the panel’s recommendation was to find their customer focus, although with some smart and distinct branding, it’s possible that MeetLinkShare could service both markets.

Conclusion

Having a great idea is not enough – as I learned very early on in product development, there may be an opportunity in the market, but is there a market in the opportunity? A couple of things missing from most of these presentations were:

  • a clear definition of both the upstream and downstream markets;
  • an understanding of the customer value chain (and how to monetize it); and
  • the specific contribution that each product, service or solution brings to their chosen domain.

It was also apparent that each of the pitches have opportunities across indirect applications, or within adjacent markets – so part of the challenge is knowing how to gain sufficient traction in one segment that will provide momentum (and relevance) to move into the next growth phase.

Disclosure: The author is not affiliated with any of the businesses mentioned in this blog, although he does acknowledge the receipt of 2 free beers and a couple of slices of pizza from the organisers.

6 Melbourne Graduates of Boot Camp for Start-Ups

Another Monday night in Melbourne’s silicon laneway, another Monday night meeting of Lean Start-Up Melbourne. This month’s event, generously supported by inspire9, Kussowski Brothers, BlueChilli and Alphastation, featured 6 start-ups who have recently completed the AngelCube accelerator programme.

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In no particular order, here are Angelcube’s Class of 2013:

A couple of the presenting founders, Tablo and Coinjar, have both been mentioned previously in this blog. I’m still very impressed with the simplicity of Tablo, a self-publishing platform for ebooks, and if they can figure out a B2B or aggregation model, I think they will have a great future.

As for Coinjar, the idea is right (a trading and merchant platform for Bitcoins) but there are still too many regulatory uncertainties and other risks associated with virtual currencies. And as the good people of Hong Kong know only too well, even established voucher schemes such as cake coupons backed by real money and physical goods can have a detrimental effect on local markets…

OutTrippin is a cross between 99Designs, TripAdvisor and Airbnb – selling curated travel itineraries and booking facilities for FITs (free and independent travellers). My sense is that while there is an opportunity in this space, the trick will be to successfully match trip planners and holidaymakers. Given the initial focus on the niche honeymoon market, it will be interesting to see how much traction OutTrippin can generate in the next 12-18 months (given the long-term planning logistics of most wedding events….).

etaskr is an insourcing solution for larger companies – combining elements of Elance, Freelancer, oDesk, Yammer and LinkedIn. It aims to match employee skills (not job function or department) with specific tasks, to enable organisations to better utilise available resources to meet fluctuating workflow volumes. Based on audience questions raised on the night, etaskr may need to look at back-end solutions that facilitate intra-company cost allocation and revenue recognition – good luck with that one!

I will be the first to admit that I can’t really get my head around c8apps – a mobile gaming platform for fantasy sports. I’m probably the wrong demographic for this type of offering, so I can’t really express a view – but the fact that c8apps claim to have some significant media deals in the pipeline and are engaging with several major sporting codes probably means they are doing something right; unfortunately, I just don’t get it myself.

Finally, OziRig is bringing custom-designed professional rigging equipment to the global  film and photography industry. Essentially a component sourcing and assembly model, OziRig aims to undercut the competition on price and service – but several members of the Lean Start-Up audience wondered about the risks of copyright and design infringement.

These 6 graduates of the boot camp for start-ups are now embarking on a round of investor pitches in the USA. I wish them well and every success.

Footnote: Thanks to the sponsors for some much appreciated beer and pizza on the night. And for a couple of alternative perspectives on the evening’s events, please check out my fellow bloggers: Chris Chinchilla and Innerloop.

Whose content is it anyway?

Faust 2.0

Every social media and digital publishing platform is engaged in a continuous battle to acquire content, in order to attract audiences and bolster advertising revenues.

Content ownership is becoming increasingly contentious, and I wonder if we truly appreciate the near-Faustian pact we have entered into as we willingly contribute original material and our personal data in return for continued “free” access to Facebook, YouTube, Google, Flickr, LinkedIn, Pinterest, Twitter, MySpace, etc.

Even if we knowingly surrender legal rights over our own content because this is the acceptable price to pay for using social media, are we actually getting a fair deal in return? The fact is that more users and more content means more advertisers – but are we being adequately compensated for the privilege of posting our stuff on-line? Even if we are prepared to go along with the deal, are our rights being adequately protected and respected?

In late 2012, Instagram faced intense public backlash against suggestions it would embark upon the commercial exploitation of users’ photographs. While appearing to backtrack, and conceding that users retain copyright in their photographs, there is nothing to say that Instagram and others won’t seek to amend their end-user license agreements in future to claim certain rights over contributed content. For example, while users might retain copyright in their individual content, social media platforms may assert other intellectual property rights over derived content (e.g., compiling directories of aggregated data, licensing the metadata associated with user content, or controlling the embedded design features associated with the way content is rendered and arranged).

Even if a social media site is “free” to use (and as we all know, we “pay” for it by allowing ourselves to be used as advertising and marketing bait), I would still expect to retain full ownership, control and use of my own content – otherwise, in some ways it’s rather like a typesetter or printer trying to claim ownership of an author’s work….

The Instagram issue has resurfaced in recent months, with the UK’s Enterprise and Regulatory Reform Act. The Act amends UK copyright law in a number of ways, most contentiously around the treatment of “orphan” works (i.e., copyright content – photos, recordings, text – where the original author or owner cannot be identified). The stated intent of the Act is to bring orphan works into a formal copyright administration system, and similar reforms are under consideration in Australia.

Under the new UK legislation, a licensing and collection regime will be established to enable the commercial exploitation of orphan works, provided that the publisher has made a “diligent” effort to locate the copyright holder, and agrees to pay an appropriate license fee once permission to publish has been granted by the scheme’s administrator.

Such has been the outcry (especially among photographers), that the legislation has been referred to as “the Instagram Act”, and the UK government’s own Intellectual Property Office was moved to issue a clarification factsheet to mollify public concerns. However, those concerns continue to surface: in particular, the definition of “diligent” in this context; and the practice of some social media platforms to remove metadata from photos, making it harder to identify the owner or the original source.

Meanwhile, the long-running Google book scanning copyright lawsuit has taken another unexpected twist in the US courts. From the outset, Google tried to suggest it was providing some sort of public service in making long-out-of-print books available in the digital age. Others claim that it was part of a strategy to challenge Amazon.

Despite an earlier unfavourable ruling, a recent appeal has helped Google’s case in two ways: first, the previous decision to establish a class action comprising disgruntled authors and publishers has been set aside (on what looks like a technicality); second, the courts must now consider whether Google can claim its scanning activities (involving an estimated 20 million titles) constitute “fair use”, one of the few defences to allegations of breach of copyright.

Personally, I don’t think the “fair use” provisions were designed to cater for mass commercialization on the scale of Google, despite the latter saying it will restrict the amount of free content from each book that will be displayed in search results – ultimately, Google wants to generate a new revenue stream from 3rd party content that it neither owns nor originated, so let’s call it for what it is and if authors and publishers wish to grant Google permission to digitize their content, let them negotiate equitable licensing terms and royalties.

Finally, the upcoming release of Apple’s iOS7 has created consternation of its own. Certain developers with access to the beta version are concerned that Apple will force mobile device users to install app upgrades automatically. If this is true, then basically Apple is telling its customers they now have even less control over the devices and content that they pay for.