At the DataContent 2013 conference, I will be a member of a panel discussing the tools being used in the information business to make our products richer, drive our costs lower, and keep our products updated in real time. When our firms can accomplish these three goals, our businesses are firing on all cylinders and we make our customers’ lives “better, cheaper, and faster” as well.
The types of data processing tools out there now include:
- Enterprise tools: These can process extremely high volumes of data and cloud storage has made them even cheaper to deploy, although up-front license fees and initial deployment costs are not for the shallow of wallet. Long-term cost savings can be astounding, however, after the initial investment.
- Open source tools: There are tons of APIs out there that help developers deploy services quickly and cheaply. Infochimps (now part of CSC) famously gathered all these tools in one place so developers didn’t have to keep reinventing the wheel.
- Inexpensive self-service tools: Harvesting data has never been easier with a bunch of easy-to-use self-service tools for the DIY crowd with plenty of time on their hands.
- APIs with embedded transactional components: BriteVerify, for instance, has an API that allows you to create a data entry form that validates email addresses on the fly at a penny a pop and Twilio allows you to seamlessly embed calling and SMS components into complex processes at a similarly low cost.
- Government and NGO datasets: data.gov, still in its infancy, and open data initiatives worldwide are taking public data and actually making them useful to those who want to build on top of them to create new services. Look at the move to XBRL if you want to see what the future holds in this critical area.
posted by Shyamali Ghosh on September 20, 2013
Russell Perkins‘s recent post a few weeks ago got me to thinking about new product development once again. I knew most of IEI’s clients when their products were in their embryonic stages and we continue to help innovators by keeping their upfront costs low so they can spend those precious startup funds as efficiently as possible. I’ve been there myself many times so I know how easy it is to fail. In fact, as Russell says, the failure, what you do when you fail, and how fast you do it are important parts of the new product development process itself.
Here’s what I have learned about the failure of new information products:
- Your model needs more than one revenue stream. Even a subscription-only product needs multiple sales channels, content licensing-repurposing options, upselling hooks, startegic partnership/e-commerce hooks, etc. Betting everything on a yes/no proposition means your odds are 2-to-1 and that’s not good. Poker players call this having multiple “outs,” and they know a bit about odds.
- Go after high-margin revenues in high-growth markets. Time and time again I’ve seen new products based on chasing dimes instead of pursuing a 2X return, knowing that that margin will bet eroded, and achieving a reasonable ROI. Aim high, take your lumps, and still wind up ahead of the game.
- Never, ever skimp on quality. Over-deliver and blow away the people smart enough to bet on your insight. Content investments are much cheaper than marketing investments and they always yield a high return.
- Solve a problem. Every professional faces serious challenges on a daily basis. Forget your ROI when you set out to solve a problem, pretend you are Tinkerbell and can wave a magic wand to solve a problem — what would that look like? That would require bleeding edge software that you don’t have? Fine. Go buy it. Pricing comes last in new product development and problem-solving comes first, second, and third.
posted by Shyamali Ghosh on September 9, 2013
