Comments on: Entrepreneurial Strategy: Measure Something

By: Sean

Sean — Wed, 31 Jan 2007 22:28:19 +0000

Rob,

I agree with your comments about the value of information but think we should expand the topic to individuals as well as businesses. Whether for businesses or individuals, those with the best data and tools to turn it into information have the best chance to meet many of their goals (making more money, getting an education, getting healthier, etc.). Forty years ago, we didn’t see quarterbacks on the sidelines looking at pictures taken from cameras above the stadiums. Why do most people use the Web (don’t mention the porn element)? Access to good information is a key element to improvement for all people as well as businesses. I am a bit biased as I am one of the founders of Genscape you referred to in your article. For what it’s worth, Sterling and I met while trading power in Atlanta, not at UofL. I moved back to Louisville (my wife is from Kentucky originally) and found a prof at the engineering school and struck a development deal with the local utility. I would be happy to share the experience with anyone out there if there’s interest.

By: Alexander Kjerulf

Alexander Kjerulf — Sun, 19 Mar 2006 22:03:49 +0000

You know what, Rob: You’re right. And measuring profitability is an excellent example and proof that measurements are not bad per se.

I’m just after the “cult of metrics” – the whole “if you can’t measure it, you can’t manage it” school of thought.

By: Rob

Rob — Fri, 17 Mar 2006 15:40:24 +0000

Alexander,
You make some good points, but I think we are talking apples and oranges. I would agree that you don’t need too much data (like # of screws in the car). But my argument would be that sometimes you have to measure new things simply to find out whether or not they should be measured.

Many companies implement new metrics only to decide they say nothing useful. On the other hand, they sometimes provide counterintuitive information. As an example, it is natural for a company to believe that its biggest clients (in terms of revenue) are its most profitable. If they measure client profitability, they will often discover that isn’t the case.

By: laurence haughton

laurence haughton — Mon, 13 Mar 2006 20:04:58 +0000

I look forward to your posts on business models. You always have something good to say.

But when you write that grabbing “eyeballs by allowing users to do X on the web and then monetize the model by selling advertising” is a valid business model I think you need to reconsider.

This is a model like “The Underpants Gnomes” had on that Southpark episode.
http://en.wikipedia.org/wiki/Underpants_Gnomes
There’s a huge question mark in a space that calls for lots of details. Specifically the answers to a pair of unanswered questions “What do clients expect when they buy advertising? How are we going to deliver that?”

Web 2.0, newspaper 2.0, TV 2.0 (you get the idea) need to answer those questions to have a business model.