The Only Startup Decision-Making Question You’ll Need

Phin Barnes at SneakerheadVC asks whether you can boil decision-making down to a single question. It’s an interesting theory as the question he comes up with is, “Does this help us own more complexity for our customer?”

Every process or task (in enterprise or consumer) has a certain level of complexity — and the most valuable companies are able to attack very complex problems, hide the complexity from the customer and let them accomplish the task in a simple, straight forward way.

This single question lens is the same way I look at which products I use, for example. I want to know that all my photos are in iPhoto, all my events and tasks in Calendar, all my music in iTunes. I don’t want to think long and hard about where to put things. I was saving these Phin Barnes-types of articles, once upon a time, to Evernote but realized that some were in Evernote and some were in Instapaper and some were referenced here on the blog. Instead I started writing every day, referencing all of these articles here at eliainsider.com.

Back to Phin, this is a very interesting lens in which to look at decision-making. We are confronted with so much information that having a single question to analyze something is so much easier to remember and apply. I love it when complex issues can be boiled down like this.

The Case For Direct Cable Channel Subscriptions

Bloomberg is reporting that HBO Go may be coming to Apple TV this year. Sounds interesting, right? Well, guess again. Unless something changes with the release, you can only watch HBO Go if you have a cable subscription. I have to admit even though I’ve read a ton about the cable business and how the market dynamics work there, I still don’t get the benefit to HBO to not charge a subscription. Maybe it’s a contract obligation?

Since I personally don’t have a huge interest in HBO, let’s use ESPN as an example instead. According to this article, ESPN makes $4.69 per household per month from cable companies and the total average bill for sports is $8. This includes not just the other ESPN channels (ESPN2, ESPN News) but also the regional sports channels.

As I’ve mentioned here before, we cancelled all cable a while ago. In exchange we have Netflix and Amazon Prime subscriptions, streamed through an Apple TV and Roku box to deliver these channels to our television sets. In addition, I subscribe to MLB.tv each year. Netflix runs $20/month, Amazon Prime $7/month and MLB.tv $10/month [1]. That’s trading a $70 per month cable bill for $37/month. The point of this is to note that ESPN gets nothing from me.

So, ESPN, here’s what I propose: offer me streaming versions of ESPN, ESPN 2 and ESPN News for $10/month. We both win. You get about twice the rate you get from cable companies and I get sports. $47/month is still a bargain for me versus the $70 cable bill (and rising every year). I get what I want — more sports — and you get exactly what you want — money from me.

[1] Amazon Prime and MLB.tv are billed annually but that’s what it works out to monthly.

Serendipity

Yesterday, if you were living in a cave, was the Superbowl. What interests me so much is how the National Football League became the NFL. The reality is that television and the rise of the NFL came at the same time, and football, as Seth Godin talked about in his post yesterday, was made for tv. In fact it is pretty clear that if it wasn’t for television the NFL specifically and football in general probably would not be as great as it is today.

Serendipity, luck, perfect timing. These are such important factors to get any business off the ground. Twitter was launched, in essence, at South by Southwest conference six years ago. It just so happened that SXSW was the perfect storm for Twitter: lots of people together who didn’t really know each other all looking for the hottest place to be. Twitter, with its indirect connection model, was perfect for that time and place.

Sometimes this timing doesn’t work out. It was the year before Twitter launched when we were on the verge of changing math education forever, except a fateful decision by Palm to stop making handhelds and abandon the education market killed the entire deal.

Yes, a company needs a good product. Yes, it needs to have all the pieces in place to take advantage of this timing. But the perfect storm of success needs to happen too. Rovio took years to have success and finally found it with Angry Birds on iPhone. Before the iPhone there was barely a casual gaming market. It’s rise made Rovio, as we know it today, possible.

Dropbox, too, owes its meteoric success to the small screen, or more exactly to multiple screens. Ten years ago most of us didn’t need Dropbox. We had a single computer and all of our files were there. In a world where we carry three or even four machines, though, keeping files on all of them, up-to-date, is critical. Dropbox launched at the perfect time.

This is why fortitude is so important. The ability to endure hardship, the pain that is believing in something even when the world is laughing, is critical. Serendipity happens. Being there at the right time with the right product is a huge part of success.

Middle Earth, The Map

Really cool interactive map of Middle Earth.

My wife and I saw The Hobbit this past weekend. It wasn’t horrible; it wasn’t great. Many people had a problem with the video frame rates but that didn’t bother me at all. I thought it looked okay, although a little blurry at times and my wife could see pancake make-up on one of the actors.

By my count, we got through three scenes in the book in 2.5 hours. It was stretched too far for my tastes. A three-part movie for a 200 page children’s book? I thought two-parts would have been fine.

But again, I was mostly entertained until they get trapped with the goblins. The Goblin King reminded me too much of Jar Jar Binks in the Star Wars episodes that must not be named. A bizarre, silly caricature. Goblins in the Lord of The Rings trilogy were fierce creators, albeit ones who died quickly and easily. In Moria, they didn’t have conversations with the Fellowship. They just tried to kill them. In The Hobbit, it was a slow, involved discussion scene, which kind of ruined the movie for me.

I’ll see the next two installments, probably even at the theater. But it won’t have the same meaning to me as Lord of the Rings and may, very well, go to the mental trash heap with those Star Wars episodes I mentioned before.

For Amusement Only: The Life and Death of the American Arcade

Great article on the history of the arcade and its demise. I didn’t realize how far it had fallen. There is an arcade here in Portland — actually a chain of them — called Wunderland Games that has been around forever. And there is a thriving arcade on the coast in Seaside, which is a little tourist town. I did drive by the house I grew up in and noticed the one we used to go to when I was a kid was gone.

Honestly, I wasn’t much of a gamer. I never liked losing money — didn’t have much to begin with. Dumping coins into the slot never really appealed to me. Given that, history does appeal to me and I learned a lot from this The Verge feature article. Enjoy!