Posts Tagged ‘technology’

Report from Silicon Pasture 2

Monday, March 8th, 2010

It was energizing to read yesterday’s NYT piece on the New York startup scene, & it got me motivated to revisit our startup community here in Silicon Pasture – Harrisburg-Lancaster-York, PA. This is the first in a week of posts about entrepreneurial activity in our area.

First, let’s look at some of the resources available to Silicon Pasture entrepreneurs:

Murata Business Center – a business incubator located in Carlisle, Murata offers startups subsidized office space, mentoring and networking opportunities. It’s an offshoot of the Capital Region Economic Development Council (CREDC). Led by the energetic Karen Gunnison, Murata is a very important energizer for the local tech startup community. Resident companies include WorkXpress, Cruzstar, DMT Studio, TexVisions and WebpageFX.

If you’re interesting in exploring Murata further, read this description of their process.

Ben Franklin Technology Partners - a venture investment and support organization that operates statewide. Ben Franklin offers, in addition to funding, the Transformations Business Services Network. This is a group of seasoned business people who can help Ben Franklin funded companies with everything from office procedures to strategic thinking, at no cost.

Ben Franklin also offers the Venture Investment Forum, which runs relevant seminars, business plan contests and also acts as a conduit to local investment organizations.

Ben Franklin in Harrisburg is associated with the ITN (Innovation Transfer Network) which works with thirteen of the universities in and around the area to identify ongoing research and to connect university research with potential commercialization opportunities.

Harrisburg University of Science & Technology – less than ten years since it was conceived, HU has become an innovation hub in the midstate. The university hosts the local instance of the BarCamp unconference and the Learning and Entertainment Evolution Forum (LEEF), and runs frequent seminars on topics ranging from management practices to how to launch a video game company.

The Hershey Center for Applied Research (HCAR) – supports the life sciences industry and high technology companies through access to business and research resources, including wet and dry lab facilities and office space. HCAR also provides access to business services and research resources available through Penn State Milton S. Hershey Medical Center. HCAR tenants include Apogee Biotechnology Corporation, Apeliotus Vision Science and Better Bowls.

Disclosure: HCAR and Harrisburg University have hosted the New Tech Meetup of Central PA, which I help organize, and I’ve met the management of the Murata Center and Ben Franklin.

Technology is great… and so is avoiding the acorns

Friday, November 20th, 2009

This 10-minute TED presentation from Tom Wujec demonstrates the astrolabe (an instrument used hundreds of years ago to tell time at night) and in doing so discusses what’s lost amidst technological advances. Wujec points out that simply knowing how to tell the time at night required one to deeply understand the geography of the night sky.

I’ve encountered something similar recently. For the last couple of months, I’ve been accompanying my son to school – both on rollerblades and on bike. That brief ride (about a mile) has acquainted me with the various elevation changes on the way (completely unnoticeable to an auto driver), and obstacles of various sorts that come from the mid-Atlantic autumn. Such as fallen acorns and leaf piles spilling onto the road.

So – technology is great. And from time to time, it’s good to re-engage with the world around us, too.

Related post:
Low tech and on the ground

Department of dubious innovations: a brief history of the frialator

Wednesday, November 4th, 2009

pitcofrialatorI listened to a Fresh Air interview with “Omnivore’s Dilemma” author Michael Pollan and couldn’t get this passage out of my head (it comes 14′40″ into the interview):

But it’s very interesting to watch, as the amount of time spent cooking has fallen by about half since the 1960s, you know, obesity has risen dramatically. Now why should that be? Well, there is some very interesting research that correlates the amount of time that a culture spends cooking with its obesity rates, and that when you don’t cook and you rely on corporations to cook for you, you tend to eat more special-occasion food, things like French fries.

I mean, take the French fry. It’s a great example. I mean, the French fry did not become the most popular vegetable in America, which it now is, until corporations relieved us of all the work of preparing them. French fries are a whole lot of trouble to make. You’ve got to wash the potato. You’ve got to peel the potato, slice the potato, fry the potato and then clean up a kitchen that’s going to be a wreck. And, you know, you wouldn’t do that very often, and indeed, people didn’t do it very often.

But now, since corporations are making all the French fries, we can have them two or three times a day, and many of us do. So, you see, when there’s something built into the process of cooking that delays gratification, the work itself makes you think twice before you embark on a cake or French fries or fried chicken. And so as soon as you outsource that work, it becomes possible to indulge in all these special-occasion foods that no longer are special-occasion foods. They’re everyday foods.

And French fries wouldn’t be something we could eat two or three times a day without the Frialator. Rather than pouring oil into a pan, cooking, then discarding the oil, the Frialator allows restaurants to cook many dishes in the same oil, with only occasional filtering of the oil to remove food particles, until the oil is replaced, approximately one to two weeks in some cases.

The Beginnings
In 1918, New Hampshire restaurant equipment manufacturer J.C. Pitman and Sons created a revolutionary high-volume deep fat fryer. In this 1946 letter, company founder J.C. Pitman described the invention as follows:

In 1918 J.C. Pitman and Sons Hotel & Restaurant Equipment Manurfacturers, while attempting to work out a more satisfactory method of frying, made some important discoveries. One was that if the small particles of food which ordinarily settled to the bottom of the French Fry pot (where they collected and burned) could be kept away from the intense heat of that part of the kettle, the quality of fried food could be greatly improved. The Pitco Frialator was invented on this basic principle – and patented. This brought about a complete change in the method of deep fat frying. The fat medium was heated by tubes running through the center of the fat container. This construction permitted all sediment from the food being fried to drip below the heating tubes into a cool zone where it could not carbonize and break down the frying fat.

The importance of this construction is the reduction in fat costs, which exceeds by a wide margin the initial cost of the equipment, its depreciation and upkeep. Thanks to the thousands of Pitco Frialators now in use from coast to coast, deep fat frying has indeed become an art.

The Value Proposition
According to the Proceedings of the American Gas Association, Volume 20 (1938), a gas frialator costing $160 on average saved a restaurant owner $390 per year in oil costs.

Half a million or more in use in US
The National Restaurant Association reported that as of 2009 there were approximately 945,000 restaurants in the US. Estimating that at least 50% of these restaurants use a deep fryer, there are a lot of Frialators out there.

The Impact of “Special Occasion Foods as Everyday Foods”:
McDonald’s French fries have 380 calories per 4.1 oz serving. Eric Schlosser wrote in “Fast Food Nation” that “in 1960 Americans consumed an average of about eighty-one pounds of fresh potatoes and four pounds of frozen french fries. In 2000 they consumed an average of about fifty pounds of fresh potatoes and thirty pounds of frozen fries.” Thirty pounds of French fries equates to about 45,000 calories per person per year, using McDonald’s calorie counts. Meaning 307 million Americans (according to the US Census Population clock) will consume 13.65 trillion calories of French fries in 2009.

Thanks to the Frialator.

Photo: The Pitco Model 1

Related post:
A brief history of wheeled luggage

Customers are talking: some good terms to describe business narrative work

Monday, May 18th, 2009

A couple of recent blog posts have featured useful discussions of key elements of business narrative work.

“Sensemaking is what we refer to as intuition”
Idris Mootee, in his blog Innovation Playground (via Futurelab), discussed sensemaking–which in many ways is the secret sauce of the narrative approach to gaining business insight. Here’s what Mootee writes:

Sensemaking is a metacognitive strategy, it is clear that people recognize patterns in the data in ways that they can’t talk about. That kind of inarticulate recognition (meaning that you can’t express it easily) is what we perceive as intuition. We’ve all got it, and good sensemakers have good intuitions about how things go together.

Applying Mootee’s ideas to narrative works except for his statement about “good sensemakers.” For narrative work, a single “good sensemaker” doesn’t exist–instead, the collective intelligence of a group of people reading through and finding patterns in stories is the sensemaker.

Low Tech And On The Ground
I love this expression, coined by Terry Miller, describing story gathering and sensemaking work in his recent post at the Cognitive Edge Guest blog. “On the ground,” is a crucial term. Narrative approaches require seeing things at ground level, not at 35,000 feet. It’s immersing oneself in the moment-to-moment and using collective evaluation to make sense of what is going on. Without this, you could be like the generals in “War & Peace”–making detailed war plans that have no effect on winning or losing.

“Low tech” is also a critical observation. Potential clients recoil from this–we have been brainwashed to believe that applying enough megaflops can solve any problem. And, by contrast, anything handmade and low-tech isn’t “industrial strength” and is to be avoided. But stories require context, and creating context requires human experience and sharing that experience through dialogue. Computers can’t do that, no matter how many megaflops they can process.

Another application of low tech is the interventions that help people deal with what they learn from stories. In my experience, the findings of a narrative project imply two kinds of changes to help address them:

(1) very simple changes that are obvious once the problem is properly understood. In a project of mine, we learned through examining customer service rep stories that fewer than 1/3 of the reps used the best practices that had been designed, and also saw that calls where reps forswore best practice didn’t end as well as the others.

(2) small things to try that may or may not help. Other learnings from narrative projects do not have straightforward solutions. The bad news is that the best course of action takes some time to determine. The good news is that a low-tech, cheap experimental approach can be applied. My favorite example of this type of approach is the solution a Singapore hospital devised to reduce emergency-room wait times.

Related posts:
An important definition of sensemaking
On “War & Peace” and complexity in business
Stop studying the problem, and just try something

Kindle helps illuminate the skim-pricing strategy in tech

Thursday, May 7th, 2009

There are two main pricing strategies for consumer products. The first, called skim pricing, consists of pricing a product very high, limiting the market for that product to only those who really, really want it. The other, called penetration pricing, involves setting a low price (frequently below initial variable costs) to quickly grow volume and share and proceed down the experience curve.

For internet products and services, penetration pricing has been the norm. In fact, the most frequently-used pricing for internet products and services has been a particular variant of the penetration-pricing approach: free.

Skim pricing has traditionally been used for luxury goods, like clothes, cars, boats, etc. The high price of these items confers exclusivity and cachet to those who buy them. There was a tradition of skim pricing in earlier-generation tech products (remember $10,000 plasma televisions? Did you buy one? I didn’t think so.) Once the manufacturing costs for those products dropped, so did the pricing.

A related strategy is to foster adoption of new products by subsidizing them through a related service. Mobile phones in the US have been sold this way for a generation.

Amazon has chosen a skim pricing strategy for the Kindle, and it doesn’t appear that they are planning to lower it anytime in the forseeable future. The Kindle 2 costs $349 (no discounts) and the Kindle DX (announced yesterday) is a whopping $499.

Some of the press coverage yesterday focused on the possible payback for the DX through buying lower-priced books. But this isn’t Amazon’s strategy at all. Instead, they are targeting a small segment–heavy readers–who are price insensitive, and who are likely to buy lots of e-books to fill their Kindles. For them, price is no object if they can carry 50 books in their purse. (This excellent post from the New York Times’ Saul Hansell discusses Amazon’s focus on hard-core readers.)

So, Amazon has returned to a tried and true marketing strategy: create a product that serves a need of a small, price-insensitive segment, and price it to capture much of the value created. They are saying this–the Kindle is not for everyone–and profiting by it.

Related:

(Photo: the Kindle DX, available at your local Amazon retailer)

Report from Silicon Pasture

Friday, March 27th, 2009

I’ve taken to calling my local area Silicon Pasture, because there are a lot of dairy farms around, and, surprisingly, there’s a vibrant tech community as well. I didn’t know that when I moved here. I came here for a job and to be closer to family. But in the last couple of years I’ve gotten to know folks in the tech community in South-Central Pennsylvania (Harrisburg-Lancaster-York) and am impressed with what’s going on here. It’s a testament, I think, to the anytime-anywhere-anyscale opportunities the web affords to people who have good ideas and the skills and determination to carry them out.

I’ve known Treff LaPlante at WorkXpress (Twitter: @workxpress) for a few years now. I’ve always been impressed with his no-coding enterprise-app building platform, and now, with release 2.0 coming out in April, his company is starting to attract some serious attention. WorkXpress is one of the many interesting companies launching out of the Murata Business Center incubator in Carlisle.

The guys at CoTweet (Twitter: @cotweet), out of Lancaster, “have a tiger by the tail,” to use a term I tweeted at them earlier in the week. Their browser-based tool to help companies manage multiple Twitter accounts and multiple users of those accounts (dubbed by Jeremiah Owyang of Forrester Research “CRM for Twitter”) is still in private beta, but has gotten early adoption by companies like Ford, Best Buy, Intuit and JetBlue, and has gotten raves from social media icon Guy Kawasaki.

Listrak (Twitter: @listrak), from Lititz, near Lancaster, is a fascinating company that has built a high-performance email marketing platform attracting top-tier customers such as the Boston Symphony Orchestra, Waterford Wedgwood and the Bahamas Tourist Office. The company also shares its email marketing expertise with its customers via user groups, webinars, blogs and (of course) email newsletters. So, in addition to providing a great technology platform, they also make their customers smarter.

And now, with the opening of the new downtown high-rise home of the Harrisburg University of Science and Technology, the area finally has a university anchor to support its tech entrepreneurs. All in all, it’s an exciting time here in Silicon Pasture. I’ll keep you posted on developments.

[Disclosure: I've worked with folks at each of these companies, sometimes paid but mostly not, on strategy, customer research and rollout questions]

[Photo by marrit via stock.xchng]

Shop Talk Podcast: Update from Honda’s Todd Mittleman on Green Cars

Tuesday, March 10th, 2009

UPDATE 20 October 2009: There is now a video tour of the FCX Clarity:

We talked to Todd Mittleman of Honda last spring about Honda’s environmentally-focused cars, the Civic GX natural gas vehicle and the FCX Clarity fuel cell vehicle (which, at the time, had not yet been released).

Well, a lot has changed in a year. The FCX is now out, and that’s the least of the news since then. People have reined in spending in many ways, not least of which is their utter reluctance to purchase a car from any manufacturer.

So how do green vehicles fit into Honda’s strategy now? We brought Todd back for another discussion. Podcast file: todd-mittleman-mar-2009 (21:37).

Highlights:
0:25 Description of Civic GX and FCX Clarity
4:15 Positioning of “green” vehicles in current economic climate
8:20 Does the US government’s support of alternate energy help the GX and Clarity?
10:45 Positioning of the new hybrid Insight versus the GX
14:17 More on the FCX Clarity
15:50 First customer feedback on the Clarity

(Photo: the Honda FCX Clarity fuel cell vehicle)