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Linkedin and Facebook – Rivals? Partners?

Ed Sim on the inevitable clash between LinkedIn, the premier professional networking tool and Facebook, the hottest social networking site around:

I must admit that while Facebook has mostly been about friends and personal relationships, I have been surprised at the number of professional and business contacts wanting to add me as a friend on Facebook ever since it opened up its platform. It will be interesting to see how these two services grow, how the boundary between friend and professional contact continues to blur for the professional, and whether Facebook makes a concerted effort to enter into LinkedIn’s turf. For example, why couldn’t I maintain one profile on Facebook and only share the professional information with those in that network and the personal with those in another.

The comments on the post have been interesting too:

(One) An easy way to transfer information from Facebook to Linkedin, or vice versa, would be great. I’ve noticed that Facebook users have been more hesitant to start using Linkedin because they want to know what they would do on LInkedin. Reducing the time it takes to create and maintain a professional profile, on either Linked or Facebook, would be great for early/mid twenty somethings.

(Two) Just as most people have a work email and a personal email (at a minimum). There is the same church & state separation for people b/w hyper-social (facebook/myspace) and business-based networking… I would not want to aggregate my facebook and linked in accounts, because I don’t think pictures of me in a funny hat or pictures of my pet is appropriate for linked-in type networking.

And the most insightful (and succinct)

Ed, great series of comments. See my post about some thoughts that I have about the two services — especially on the differences between what people think of as “friends” or “links”

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What B-schools don’t seem to be teaching

Ajit Balakrishnan, CEO of Rediff.com but more importantly for this post, the Chairman of IIM Calcutta’s Board of Governors, tries to figure out what ails business schools of today:

(Quoting Jeffrey Pfeffer) …much of what business schools teach—analytical tools like statistics and basic disciplines like economics and sociology—are readily learned and imitated by any intelligent person. On the other hand, things like communication ability, inter-personal skills, leadership and, most importantly, “wisdom”, the ability to weave together and make use of different kinds of knowledge, are less easily taught. Paradoxically, these are the very skills that lie at the heart of a leadership role in management.

(Quoting Warren Bennis and James O’Toole) …business schools (are) attempting to adopt a “scientific model”. This model at attempts to treat management education as if it was something like physics or chemistry or biology whereas it is, in their view, more a “profession” like medicine or law. They see this distinction between an academic discipline and a profession as the central issue.

I’ve been thinking lately about why I seem to be dissatisfied with some excellent courses I’ve taken this term. They’re (on the surface) well-designed courses, and are taught by very committed, talented faculty. This article’s been more food for thought. Perhaps in the next couple of weeks I’ll analyse why I feel this way.

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Why would-be-entrepreneurs don’t join startups

Ritesh Banglani zeroes in with incredible accuracy on why entrepreneurs-in-waiting don’t join startups. After all, working at a startup is only a step away from having your own firm… not.
The answer, I think, lies in understanding the differing motivations of young risk seekers in India and in the west. In my experience, young entrepreneurs in India don’t start companies to get rich – the financial motivation is very much secondary to the desire to work for oneself. This means stock options – the primary means of motivating people at startups – are almost worthless to the would-be Indian startup employee. If I have to work for someone else, the reasoning goes, I might as well continue working at Infosys.
That is as accurate a description of an entrepreneur’s mind as I have heard. First-hand and second-hand experience.
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Why would-be-entrepreneurs don’t join startups

Ritesh Banglani zeroes in with incredible accuracy on why entrepreneurs-in-waiting don’t join startups. After all, working at a startup is only a step away from having your own firm… not.
The answer, I think, lies in understanding the differing motivations of young risk seekers in India and in the west. In my experience, young entrepreneurs in India don’t start companies to get rich – the financial motivation is very much secondary to the desire to work for oneself. This means stock options – the primary means of motivating people at startups – are almost worthless to the would-be Indian startup employee. If I have to work for someone else, the reasoning goes, I might as well continue working at Infosys.
That is as accurate a description of an entrepreneur’s mind as I have heard. First-hand and second-hand experience.
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The Push to Run Transformation

Seth Godin talks about the need for a market leader to change its “push” mentality into a “run” one:

The culture at insurgent companies is all about pushing. You get turned down on sales calls, you have tiny market share, people walk away from your trade show booths. You have trouble finding suppliers and a bank loan and even employees. So you learn to push… it becomes part of who you and your team are.

But when you become the market leader, you need to change into a runner, to keep growing the gap between you and the competition.

But most organizations keep pushing. Because that’s what they know how to do. Instead of running up the scoreboard, they look for something else to push against.

Apple, Seth says, is one organization that has successfully undergone this transformation. From being the perennial underdog to a market leader, a trend-setter, Apple has used its iPod moment to start running – hard.

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Air travellers – thought you’d seen it all?

Paul Kedrosky, a VC, has this funny incident to share:

Yesterday the space shuttle Atlantis crossed over San Diego on its way to landing at Edwards Air Force Base. I was on the ground in San Diego ready to board a plane to San Francisco, which was delayed. The reason? The space shuttle passing through our air space. I was, in other words, caught in space traffic.

:) Sign of things to come?

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Financial valuation – the next generation

Clayton Christensen (author of the legendary “The Innovator’s Dilemma”) on a method of financial projection he’s associated with :

… discounted cash flow or net present value is the most commonly used method to determine what an innovation is worth today. But the mathematics have an implicit assumption within them that if we don’t do this innovation, the way things are today will maintain themselves in the future. That’s not true. The company’s current financial condition will not persist. By comparing the innovation against the do-nothing scenario, you’re biased.

… there’s a method that’s the brainchild of Rita McGrath at Columbia and Ian Macmillan at Wharton called “discovery-driven planning.” It’s a much better way to assess the value of projects. Most companies, when they look at the financial projections [of a potential innovation project], if they look good, they do it. If they don’t, they don’t.

But the desirability of attractive numbers has never been an issue. Why shine the spotlight on the numbers? Rather, a better way to do it is: We all know how good the numbers need to look for this to be attractive. But what assumptions have to prove true in order for those numbers to materialize out of this innovation? So you focus the spotlight on what assumptions have to prove true, and you launch a project to test those assumptions. It’s a much better way.

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Where Google plays second fiddle

Time Magazine ponders “Can Google Get Any Bigger“? Looks like it can:

However, for all of its success, Google’s online dominance has been limited to search. In web-based e-mail, for example, Google’s service, Gmail, is in a distant fifth place to leader Yahoo! Mail, which is over 12 times the size of Gmail in terms of visits. Google has barely made a peep in social networking; MySpace, the #1 social networking site, is over 300 times the size of Google’s Orkut service. Even mainstream information such as Google Finance is an order of magnitude smaller in visits than the industry leader in financial information Yahoo! Finance.

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Avnish Bajaj on why the Web 2.0 paradigm won’t work in India

Avnish Bajaj of Matrix Partners on why he thinks the “Web 2.0” paradigm won’t work in India:

“People talk about the Internet being convenient, but it is not so in India. You need to go to a cyber café or you have to dial up a telephone line or use a slow broadband connection. Whereas in the US, 150 million households have broadband access all around the clock, sitting at home. When you have such a situation you can do social networking, but where is that happening in India? Do you think a person will go to a cyber café or any public environment to discuss everything about their life?”

“…there is a cultural barrier, as not many individuals will express themselves as in Myspace.com. Also, there are infrastructural barriers. Fundamentally it is not about social networking but about community building. In India one needs to first create a product according to people’s needs and subsequently a community will form around it.”

While I’m glad Bajaj has debunked the Web 2.0 craze, I’m not so sure about the cultural part. While MySpace is a little extreme, Orkut is very popular among young adults (between 15 and 22) in urban India (and no, “urban” now includes Tier-2 and 3 cities from the Hindi heartland too). 75% of India’s Internet users surf from a public location (cyber cafes). I don’t see a reason why either culture or lack of a personal, home computer ought to dissuade users from socializing on the Internet.

After all, it’s happening. Right before us. See what your kid brother/sister/nephew/niece means when he/she wants to “check mail”. They mean they want to check their scrapbook!

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Meg Whitman’s got her eBay strategy right

In an interview to BusinessWeek, Meg Whitman talks about “taking eBay off eBay”:

Whitman and her managers also described efforts to make the site’s auction feature available on social network pages, blogs, as well as Web sites and stores outside of eBay via widgets—those increasingly popular small programs that enable users to easily share content and incorporate it into their own Web sites.

“But we are also not averse to taking eBay off eBay, whether that is to some of the social networking sites or exporting it to your Web site with eBay To Go [a widget that enables users to embed eBay auctions into their own Web sites and blogs].”

eBay’s revenue model is not tied to its website at all, but to the very core of its business – transactions. This is a far more durable model than most online services today, where the core business generates little or no money, and the only revenue comes from advertising on the website. In other words, the revenue side of the firm has no relation to the business side.

In eBay’s case, though, it makes perfect sense to create as many opportunities to transact as is possible, and that calls for maximum exposure via as many channels as are available today. In that sense, Meg’s got her strategy bang on target.