| Volume
6, Issue 1 - January, 2007
Tis the season for New Year’s Resolutions, but I have never
had great success with those. Instead, I try to step back and tack
a macro look at things rather than my daily micro perspective. This
year, I have been struck by how our world is changing. While I have
not yet purchased an iPod, it is amazing to me to see how the music
business is changing. Today musicians don’t need record labels
to access that market. With relatively low cost equipment, a musician
or group can create music, record it and market it over the internet
without the need for records or CDs. In this new channel of distribution,
customers gain from lower costs and greater selection. Musicians
gain speed to market and higher revenue per unit sold. The only
losers are the middlemen. Sounds like old time disintermediation
to me.
Video is another interesting phenomenon this past year. First the
web was all text, and then came color and graphics. Not too long
ago sound was added and now video is readily available. You Tube
has broken new ground with their aggregation of videos ranging from
something less than amateur to professional. Some are so good in
fact that a few large advertisers have been soliciting commercials
from individuals. Wow, what a change in finding ideas and talent.
There are also people selling digital video products over the web
eliminating the need for any hard product like a tape or DVD. Again,
we are looking at a change that reduces cost for the end user, increases
revenue for the producer and eliminates the middleman.
Another area that is changing rapidly is that of books. We are
all aware of how Amazon has changed the book buying and selling
business, but that is just the tip of the iceberg. Recently, I have
been working on a book about Decision-Making that I hope to have
available early next month. In the process of deciding whether to
find a publisher or self publish, and all the details that go with
those decisions, I discovered how Amazon is changing the face of
book publishing and marketing. On their website you will find something
called Amazon Advantage. This program allows producers of books,
music and videos to sell their products through Amazon. Even a little
guy like me can sell my upcoming book through Amazon just like the
major publishing houses. Take a look at http://advantage.amazon.com/gp/vendor/public/benefits-books
to get an idea of the advantages of this approach. Amazing, but
that is not all. Amazon has a business called BookSurge. This business
focuses on helping authors or wanna be authors with everything involved
with the book from ghostwriting to editing, to cover design, to
layout, to on-demand printing, marketing and fulfillment. This is
an amazing step forward in production and marketing without changing
the medium (books) but we can take it a step further with e-books
that are downloadable like the music and videos. The website http://www.blish.com
boasts over 60,000 titles and Amazon boasts over one million e-books
and e-docs.
The Internet is changing production and distribution to an even
greater degree than small package overnight shippers like UPS, FedEx,
Airborne and DHL did to the motor freight companies back in the
80’s.
When you see changes like this happening all around you, it is
important to stop for a moment and look at the big picture. It is
time to rethink how your product or service satisfies the end user.
Are there ways that might speed the process, make it easier, allow
for more customization, reduce costs including the cost of inventory
or just reduce the complexity of providing that product or service?
What are you doing to make certain that you and your organization
are not displaced by new technology?
Throughout the year, I tend to look at the remaining months of the
year and the work that is scheduled to be performed. Once the calendar
clicks over to January, I am once again looking at a full 12 months
and at this time of year the blank spots can be scary. Book Bob
in January for work to be performed any time during 2007 and receive
an automatic 10% discount. To hire Bob and save in the process,
call (866) 598-8450 toll free before the end of January.
If you have a subject that you would like to see covered in future
issues of “Taking Aim,” please send me an email at aim@CannonAdvantage.com.
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Robert E. Cannon
Management Consultant
13985 Aquilla Road
Burton, OH 44021 USA
866.598.8450 phone/v-mail
440.834.1052 facsimile
aim@cannonadvantage.com
Cannon Advantage
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Why not make the best of things? Any fool can make the worst of
them.
Charles L. Bromley
The test of thankfulness is not what you have to be thankful for,
but whether anyone else has reason to be thankful that you are here.
Unknown
A man isn’t poor if he can still laugh.
Raymond Hitchcock
Sometimes the best way to convince someone he is wrong is to let
him have his way.
Unknown
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