Embracing the subscription economy

I'm about halfway through a terrific book called Subscribed, by Tien Tzuo. I highly recommend it for anyone interested in disrupting an existing business or creating a completely new one. The author was an early Salesforce employee and used to be their chief marketing officer as well as chief strategy officer, so he obviously knows a thing or two about subscription models.

The overall premise covered in the book, where more customers are shifting from owning to renting products, isn't exactly new, but the author provides countless thought-provoking examples and visions of a subscription-based future. Here's a wonderful example:

But just imagine what would happen at the next Apple keynote if Tim Cook announced a simple monthly Apple subscription plan that covered everything: network provider charges, automatic hardware upgrades, and add-on options for extra devices, music and video content, specialty software, gaming, etc. Not just an upgrade program, but Apple as a Service.

If you dismiss this logic because you can't imagine your products or services in a SaaS-like subscription model, consider this:

Here's the secret we use -- tease out the service-level agreement that sits behind the product [or service]. It works for everything. So instead of a refrigerator, it's the guarantee of free, cold food. Instead of a roof, maybe it's a guaranteed source of solar energy. Instead of excavators, it's the expeditious removal of a certain amount of dirt.

There's an added dimension to consider here as well: the community engagement you have the opportunity to develop and lead. The author points out that, "loyal newspaper subscribers are willing to pay for enhanced experiences." My local paper, for example, is working hard to create an insider program featuring access to community-oriented products and services which serve as add-ons to the core subscription. Over time, it's easy to see where the original product simply becomes one of many elements of a more robust subscription. In short, you're forced to think more about the solution and experience while focusing less on the individual product.

I hope you'll take the time to read Subscribed and consider how it affects your own business segment as well as the broader consumer experience.


Disrupting and improving communication with machine learning

The topic of artificial intelligence (AI) is generating a lot of buzz these days and it's often difficult separating fact from fiction. For example, what are the most interesting AI applications today and where is the technology heading tomorrow?

I recently started reading a good book on the topic called Prediction Machines, by Ajay Agrawal, Joshua Gans, and Avi Goldfarb. Prediction Machines offers a solid overview of AI fundamentals while also providing plenty of real-world examples. One of my favorite examples is Grammarly, a tool to help improve written communication. Here's how the authors describe the service:

Grammarly achieved these corrections both by examining a corpus of documents that skilled editors had corrected and by learning from the feedback of users who accepted or rejected the suggestions. In both cases, Grammarly predicted what a human editor would do. It goes beyond the mechanical application of grammar rules to also assess whether deviations from perfect grammar are preferred by human readers.

Years ago there were a few grammar-checker software products that tried to solve the problem the old-fashioned way, with brute force. They certainly helped fix a lot of grammatical errors but they often didn't produce the results you'd get from a good human editor.

I'm using the free Grammarly service, both as a standalone app and as a Chrome plug-in, so this article was made better thanks to Grammarly. I'm also going to let Grammarly have a look at some of the documents I write at work.

There's a danger in all of this. Google has dumbed us down, making us over-reliant on their search and map services, for example. I spend less time thinking about the best route and instead simply plug the address into Waze and let it tell me. The same thing could happen with Grammarly where my writing skills decline as I get lazy and rely on the service to fix my errors. My plan is to stop and think about each correction Grammarly recommends and do my best to avoid making the same mistake again but we'll see...

I hope you'll try out the Grammarly service as well. If you're interested in where AI is heading, be sure to read Prediction Machines and think about how this rapidly changing technology is likely to impact your business and your job.


Where are all the must-have Alexa skills?

Is it me or is Amazon's Alexa loaded with nothing but gimmicky skills? I like audio news streams as much as the next guy but where are all the amazing skills this platform should be offering by now? I wrote earlier about a use-case publishers and content consumers could get excited about but the capabilities I outlined then are still nowhere to be found.

My various Alexa devices are great at streaming music. The Echo Show I got for Christmas sits on my nightstand and randomly shows photos from my collection. It's a rather pricey, over-engineered picture viewer and alarm clock though. A few months ago I bought an in-car Alexa device but soon realized it doesn't add much value beyond what I already get from my phone's podcast app paired via Bluetooth.

Speaking of phones, the Alexa platform seems to be where the app stores were in the early days of both the iPhone and Android devices. Come to think of it, it's still pretty hard to find new, useful apps amidst all the clutter. If you're like most people, you have dozens of apps on your phone but you probably only use a few of them on any given day. At this point in the life of Alexa I thought we'd see at least one or two can't-live-without-it skills but I can't think of a single one.

I'm still extremely bullish on voice UIs and I believe the future is bright for publishers who are willing to transform their content for delivery on them. That process becomes a lot easier as the text-to-speech services continue improving, btw, and I recommend we continue experimenting with skills and capabilities.

I'm guilty of adding to the clutter as I'm working on a skill for an audio version of my website. Amazon makes it sounds simple enough but I ran into a snag about 10 minutes into the process. I've run out of time today but I'm going to see if I can troubleshoot and take my skill live soon. I encourage you to do the same; even if your new Alexa skill isn't a game-changer, it's important to immerse yourself in the process and stay on top of this important platform.


Revisiting "The Innovator's Dilemma"

What's the most impactful business book you've ever read? Mine is Clayton Christensen's The Innovator's Dilemma. I first read it many years ago and I figure now would be a good time to read it again. I must have given my original copy away, so I stopped by the used book store and picked up another for $8.99.

What was so memorable about my first read of this classic? Christensen opened my eyes to think like a startup, an innovator and a disruptor. One of the key takeaways is that many innovators chip away at the low end of the market, causing entrenched market leaders to ignore them, figuring they can have that less profitable segment but they'll never truly compete with me in the more lucrative segment. By the time the leader realizes their mistake, the innovator has already stolen much of the market and is on their way toward total domination.

OK, it doesn't always end that way but this book describes many examples of significant disruption by new market entrants. I've referred to this book countless times in my career and I'm confident the lessons it offers are as relevant today as they were when it was originally published.

I'm looking forward to starting the reading journey again on this one and I hope you'll join me. I'll be sure to share my thoughts, as well as my preferred method of book highlighting in an upcoming article. (Hint: the highlighting approach involves Evernote...)


Welcome to DisruptorFest!

If you're looking at this page and scratching your head it's probably because you're used to seeing my digital content strategies site. Although I'm still intrigued by the future of digital content I'm even more passionate about business management, personal development and leadership.

The DisruptorFest name is inspired by the fact that disruptors are the people who are truly leading organizations into the future. They're not satisfied with the status quo; rather, they're laser focused on creating new markets, solving new problems or simply inventing new ways to solve old problems.

Going forward, DisruptorFest will serve as a resource where I plan to share many of the lessons I've learned and continue to learn. Digital content directions and trends will still be a part of that, of course, but this shift provides more latitude for me to cover other topics as well. Here are just a few of the items I plan to feature in the coming weeks and months:

  • The importance of life-long learning
  • Empowerment
  • Flat organizations
  • Agile
  • Fail forward fast
  • Exercise and fitness
  • Favorite books and excerpts
  • Favorite podcasts

The "Fest" in DisruptorFest means this is intended to serve as a community resource. I'd like to hear from you via article comments and/or email. Please be sure to share the lessons you've learned and the techniques you use as a disruptor in your world.