Turbotodd

Ruminations on IT, the digital media, and some golf thrown in for good measure.

Happy Float, Facebook

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Happy IPO day, Facebook.

I’m not an “insider” of any sorts, so I won’t be gaining from any of the early Facebook IPO action.  I’m on the fence as to whether or not I might try to buy some “FB” shares on the open market through my Schwab account…not because I’m not interested in owning any Facebook stock, but because like a lot of investors, I want it to be a conscious, responsible investment, and one never knows what’s going to happen on IPO days.

But know this: I’m very bullish on Facebook, both its past and its future.  I’ve never seen an Internet property bring so many people together from so many different places in the world, across economic and social strata, and keep them coming back.

If you’re as bullish, but not ready to gamble on IPO day, you might give some thought to investing in the Facebook “pick and shovel” plays.

Stand back, look at the Facebook ecosystem, and rather than place all your bets on the Facebook IPO “come” line, instead spread some bets across the board and benefit from all the other players who stand to benefit from Facebook’s continued growth and adoption around the world.

The Zyngas, whose gaming ecosystem helped the Facebook tribe spread around the world.  The Dachis Corps and Buddy Medias, which are helping make the Facebook platform work well for marketers (and focusing well beyond the social graph ads that GM announced it would abandon earlier this week).

And, to be sure, hundreds of others.

Regardless of whether or not you’re a Facebook fan, and heaven knows sentiment about them can run to the extremes, if you’re a good Western capitalist, you have to be excited.

This is the classic American success story, where young kid has great idea, develops that idea in his dorm room and later small house in Silicon Valley, and eventually changes the world.

And make no mistake about that: Facebook has forever changed the world.

Just ask the folks in Egypt, or Tunisia, or Russia, or any other locale or organization that has benefited from the lower center of gravity Facebook has created that makes organizing in mass quantities as simple as a few clicks.

There is a good reason that Facebook is NOT available in China — fear of transparency and open communications.

If it were available, China would be a very different place than it is today, and it makes me thankful that the kind of open innovation and entrepreneurialism we have here in the U.S. is still alive and well.

And that, in the end, may well be the most important reason for celebrating Facebook’s entry into the public markets.

Big ideas can still have big impacts, and Silicon Valley (and, more broadly, the United States) is one of those places in the world that you can find the capital, the talent, and the political and regulatory playing field  to make those big ideas a reality.

Happy IPO day, Facebook.

IBM ImpactTV 2012 Instant Replay: Bob Sutor On Tackling The Massive Mobile Enterprise Opportunity

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Recently at IBM Impact in Las Vegas, Scott Laningham and I had the opportunity to sit down with a wide variety of great speakers, including our senior VPs Steve Mills and Mike Rhodin, whose instant replays I’ve already shared.

Most of those folks, we gave about ten minutes.  But there’s been such immense interest in the enterprise mobile topic, that when we sat down with IBM’s VP of WebSphere Foundation and IBM Mobile, Bob Sutor, we spoke for a good 18 minutes.

That’s not only because Bob was a scintillating and thoughtful guest, which he always is, but because there’s a lot to talk about in the mobile space.

So much of the oxygen recently has been around Facebook’s valuation and the rise of BYOD…but there are much more practical and necessary concerns that organizations need to think about as they start to build out their mobile strategies.

Things like application lifecycle development, cross-platform development, and that bugaboo that always rears its head in the mobile conversation, security and privacy.

Bob takes them all on and more in the far-ranging interview below:

Facebook Up Front

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There’s nothing like the looming shadow of the largest Internet-related IPO in history to bring out all the Debbie Downers.

Mind you, I’m in a two-day meeting in Raleigh with my teammates, so I’m supposed to be paying attention to what’s going on inside these four walls.  And I mostly am.

But, I simply could not ignore this headline sent to me via email by a fellow colleague (just to demonstrate the continued critical importance of personal word-of-mouth recommendations…I can’t find out everything from watching “The View”, now, can I?): GM To Stop Advertising On Facebook.

This on the first scroll of The Wall Street Journal this afternoon.

It would be easy enough to dismiss this headline considering the source, News Corporation, which owns the Journal, which is competing for essentially the same advertising dollars never mind that they also own that little used social network, MySpace, which once-upon-a-time was the bell of the social networking ball — but, it’s General Motors, the U.S.’ third largest advertiser in a critical category for advertising (automobiles).

According to the story, GM has spent some $40 million on its Facebook presence and plans to stop advertising there “after the company’s marketing executives determined their paid ads had little impact on consumers.” However, it also points out GM will continue to expand its use of marketing through Facebook’s pages, which is essentially free real estate.

In this case, it seems that the “owned” media is outpacing the “paid.”

On the other side of Madison Avenue, AP-CNBC recently conducted a poll that indicated more than half (57 percent) of Facebook users polled said they never click on ads or other sponsored content when they use the site. Only 4 percent say they often click on ads.

This isn’t exactly a canary in Facebook’s coal mine, however.

As I’ve tried to point out to my own troops, the shift in attention to the Facebook platform cannot be denied — U.S. Internet users now spend 20% of their surfing time there, and as Facebook creates more intersections between entertainment, retail, and commerce, I would expect that number to go up, not down!

So what if people don’t click on an ad for the new Escalade — there’s a pretty good chance a few millions of the right people saw those ads, and quite frankly, if folks’ attention is moving from the big screen to the small (and, via mobile, to the smaller), then the attention deficit economy must eventually witness the transition of ad dollars in some semblance of parity, which heretofore hasn’t happened.

It doesn’t escape my notice that this news emerges the very same week that the big broadcasters are holding their “upfronts,” where they try to sell their $60 billion of inventory as much in advance as possible for the next year to advertisers, their agencies, etc.

The New York Times’ Amy Chozick penned a piece today explaining some of the festivities at this year’s upfronts. An excerpt: “At the Fox Party on Monday, the judges for the show ‘MasterChef,’ Gordon Ramsay, Graham Elliot, and Joe Bastianich, will personally serve a menu that includes organic salmon ceviche and a deconstructed Caesar salad accompanied by brioche Twinkies.”

Fox will be serving “veal meatballs with black truffles” along with “Manhattan mules,” a combination of vodka, ginger beer, and lime.

Traditional advertising’s Rome is burning, so why not throw a cocktail party and drink mint juleps as the last vestiges of appointment programming disappear into the Nielsen viewer diary of history?

The dirty little secret is this: We’re entering into a world where the absence of data is going to be replace by an abundance of data.  Moving forward, Facebook’s problem with advertisers will not be whether or not they can share information about the platform’s advertising performance, but more importantly, which data, about which demographic, on what platform, etc.?

There will be more information than most advertisers can consume effectively, particularly those more schooled in Nielsen “set meters” than A/B splits and multivariate testing.

Yeah, sure, go ahead and pile on the new kid on the block.  Mark Zuckerberg’s about to take away those truffles and Manhattan mules and your annual party is moving from up front to out back.  I’d be mad, too.

But that doesn’t change the fact that the advertising world is changing, and the big screen is about to be replaced by one that will get smaller and smaller, but one that will be more and more valuable to marketers.

What’s Your Mobile Use Case?

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We’re only a week away from the start of the IBM Smarter Commerce Global Summit in Madrid.

So I found it interesting that Nielsen would release these “hard numbers”

A recent Nielsen survey of U.S. smartphone owners who report using their mobile phones while shopping in a store, indicates that consumers use their phones differently depending on the type of store.

about how consumers like to use their smartphones, particularly when it comes to shopping.

Here’s what I see in the data: Couponing is mainly for groceries and clothes, and its geeks who use QR codes (*I* am something of a geek, and even *I* haven’t used QR codes…at least, not yet).

If you’re looking for electronics, you’re likely to read reviews via your smartphone, because you don’t want to be the only idiot who bought the thing who didn’t check out what Joe the Plumber (err, the Coder) had to say about the item before they bought it.

I have a plane to catch, but I’ll be pondering this Nielsen data as I check in to find the status of my flight…on my LG dumb phone.

Written by turbotodd

May 14, 2012 at 4:06 pm

Kooch!

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Okay, golf fans, if you watched the Tournament Players Championship this weekend, you know you hardly have reason to complain.

All around nice guy and professional golfer, Matt Kuchar, follows a shot during his victory at this weekend’s Tournament Players Championship at TPC Sawgrass in Ponta Vedra Beach, Florida.

Other than Kevin Na’s “yips,” which seemed to bother co-playing partner Zach Johnson during Saturday’s third round more than it did anyone else, weren’t quite enough to keep Na from leading as they walked into the final round yesterday.

But it was Matt Kuchar (everyone on the course just yells at him, “Kooch!”) who walked away with his biggest ever title on Mother’s Day, a sweet birdie putt on the 16th at Sawgrass all but cementing his victory.

Scotland’s Martin Laird and the ever fashionable Ricky Fowler, who finally won his own first PGA Tour victory just last week at the Wells Fargo Championship, were hot on Kuchar’s heels, but they’d fallen too far away by the time they reached 16, 17, and 18, the winding hat trick of a finish at Sawgrass that includes the infamous 17 “island” green.

Zach Johnson had been on a bit of a tear of his own, starting the round at 7 under and only four behind Kuchar, eagling the par-5 second and getting to 11 under with a birdie on the par-5 16th — no Master’s par 5 layups for Johnson at Sawgrass!

But Kuchar refused to fall back to the pack.

In terms of drama, there was plenty of it, but most of that drama came from other players.

As Kuchar approached 17, the victory clearly in view, I could only pray, “Kooch, don’t slop another one in the water!” which so many others had done during the week. But no, he put it safely in the middle of the island green and two-putted for his par.

On 18, he hit a nice solid drive in the middle of the fairway (remembering there’s water all along the left side of the hole) and talked sports with his caddie as they walked up towards the green.

No biggie, Kooch seemed to be saying, but it was a biggie indeed, and elevates the well-liked Kuchar into a whole new class of the game.

Which is perfect, because it’s just in time for the coming U.S. Open at the Olympic Club in San Francisco.  If there’s not been enough drama for you this year on the PGA Tour, I hope and expect June 14-17 at the Olympic Club to be about as much drama as a golf fan can stand.

More on that in future posts…but for now, let’s celebrate Matt Kuchar’s well-deserved and long overdue “big win” — the 33 year-old “kid’s” been at since he won the U.S. Amateur in 1998, and finally he can say he belongs in the big leagues.

And it couldn’t have happened to a nicer guy!

Written by turbotodd

May 14, 2012 at 3:24 pm

Happy Anniversary, Deep Blue

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It was fifteen years ago today that the IBM chess-playing supercomputer, Deep Blue, beat he-who-shall-remain-nameless, a world grandmaster, after a six-game match, which brought two wins for IBM, one for the world champion, and three draws.

On May 11, 1997, an IBM computer called IBM Deep Blue beat the world chess champion after a six-game match: two wins for IBM, one for the champion and three draws. The match lasted several days and received massive media coverage around the world. It was the classic plot line of man vs. machine. Behind the contest, however, was important computer science, pushing forward the ability of computers to handle the kinds of complex calculations needed to take computing to the its next stage of evolution.

It was classic man-versus-machine, but underlying the mythology that enveloped the John Henry storyline was something far more important: The opportunity to push the frontiers of computer science, to push computers to handle the kind of complex calculations necessary for helping discover new pharmaceuticals; to conduct the kind of financial modeling needed to identify trends and do risk analysis; to perform the kinds of massive calculations needed in many fields of science.

Solving The Problem That Is Chess

Since artificial intelligence emerged as a concept along with the first real computers in the 1940s, computer scientists compared the performance of these “giant brains” with human minds, and many gravitated to chess as a way of testing the calculating abilities of computers. Chess is a game that represents a collection of challenging problems for minds and machines, but had simple rules, and was thus an excellent testbed for laying the groundwork for the “big data” era that was soon to come.

There’s but no question that Deep Blue was such a powerful computer programmed to solve the complex, strategic game of chess.  But IBM’s goal was far deeper: To enable researchers to discover and understand the limits and opportunities presented by massively parallel processing and high performance computing.

IBM Deep Blue: Analyzing 200 Million Chess Positions Per Second

If, in fact, Deep Blue could explore up to 200 million possible chess positions per second, then could this deep computing capability be used to help society handle the kinds of complex calculations required in some of these other aforementioned areas.

Deep Blue did, in fact, prove that industry could tackle these issues with smart algorithms and sufficient computational power.

I recalled earlier this year in a blog post my own experience witnessing the Deep Blue chess match.  It evoked a lot of nostalgia for me and so many others.

IBM’s Deep Blue supercomputer could explore up to 200 million possible chess positions per second on 510 processors. Juxtapose that with IBM Blue Gene’s ability a few short years later to to routinely handle 478 trillion operations every second!

But it also laid a foundation, paving the way for new kinds of advanced computers and breakthroughs, including IBM’s Blue Gene and, later, IBM Watson.

Forever In Blue Genes

Blue Gene, introduced in 2004, demonstrated the next grand challenge in computing and was both the most powerful supercomputer and the most efficient, but was built to help biologists observe the invisible processes of protein folding and gene development. Deep Blue was also one of the earliest experiments in supercomputing that propelled IBM to become a market leader in this space to this day.

Fifteen years on, we’ve seen epic growth in the volume and variety of data being generated around the planet, via business, the social media, new sensor data helping with instrumentation of the physical world vis-a-vis IBM’s smarter planet initiative.  We’ve created so much new data that, in fact, 90% of the data in the world today was created in the last two years alone!

Calling Doctor Watson

Most recently, IBM embarked upon the next wave of this computing progress through the development of IBM’s Watson, which can hold the equivalent of about one million books worth of information. But make no mistake, Watson’s significance wasn’t just the amount of information it could process, but rather, a new generation of technology that uses algorithms to find answers in unstructured data more effectively than standard search technology, while also “understanding” natural language.

The promise of IBM Watson is now being put to productive use in industry — as an online tool to assist medical professionals in formulating diagnoses; by simplifying the banking experience by analyzing customer needs in the context of vast amounts of ever-changing financial , economic, product, and client data; and, I’m sure, other industries near you soon.

Those early chess matches were exciting, nail-biting even (and who’d have thought we’d ever say that about chess?)! But they pale by comparison to the productive work and problem-solving IBM’s Watson, and other IBM technologies, are now and will continue to be involved with as the world of big data matures and becomes adopted by an ever-increasing audience.

You can now visit Deep Blue, which ultimately was retired to the Smithsonian Museum in Washington, D.C.

But its groundbreaking contributions to artificial intelligence and computing in general continues, and now extends well beyond the confines of the chess board.

Dead Solid Perfect

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Don’t think for a moment I didn’t notice that the PGA’s Tournament Players Championship tournament started yesterday down in Ponta Vedra Beach, Florida.

I’ve been busy this week, but not sooo busy that I would ignore this classic golfing event.

It is a tournament that began the week with Phil Mickelson’s induction into the World Golf Hall of Fame, along with Scottish golfer Sandy Lyle, Peter Alliss, and Hollis Stacy, and the incomparable Texas sportswriter, Dan Jenkins (author of Dead Solid Perfect and Semi-Tough).

You can watch some highlights of Dan’s acceptance speech, along with Phils’ and others, here.

It’s worth the price of admission just to hear Dan Jenkins riff the names of all the famous golfers he has either 1) played rounds of golf with 2) had cocktails with 3) written stories about.

Jenkins related one story in particular, whereby one of the greatest golfers ever, Ben Hogan, offered to give Jenkins golf lessons, three times a week, for four months, to prepare Jenkins to compete in the National Amateur.

Jenkins thanked Hogan profusely for the offer, but explained that all he’d ever wanted to be was a sportswriter.

Hogan looked at him like “he’d looked at other people, with that cold stare,” and, Jenkins explained, “you don’t know if you’re going to get a bullet in the head or a dagger in your heart. And so you just wait for him to speak.”

Finally, Hogan smiled and said, “Well, keep workin’ at it.”

“And that,” Jenkins explained, “is what I’ve been doing for the last sixty years.”

As for Michelson’s speech, get your box of Kleenex ready.

Phil, whom you could argue is still “mid-career,” especially based on his recent golfing performance, explained that “We’re all in it together to enjoy this great game.”

He thanked everyone, “for competing with me…for your friendships. This has been so much fun and I love sharing this with everybody.”

He also went on to thank his fans, but with his typical good humor explained, “The fans have made this such a fun ride. It’s been their energy that has pulled me through. I’ve tried to reciprocate by launching drive after drive in their general direction.”

The audience, and I, found that one liner hilarious!

I actually had the good fortune to be hosted by the PGA at Ponta Vedra back in 1998, when we were featuring them as a customer in our advertising campaign.

I saw the World Golf Hall of Fame right before it was open to the public (I really must get back there!), and I also had the special privilege of giving the TPC Sawgrass Course a go.

I wasn’t playing nearly as much golf during those times, so my game was middling at best.

But, I made it through the round okay, and when I hit 17, the one with the floating green, I think I tried three times before the ball finally stayed on the green (I chuckle to this day when a pro drops a ball in the water on 17.  I did NOT laugh when Angel Cabrera dropped four of them in the water there yesterday.  Remember that nightmare hole inTin Cup???)

On 18, with that perilous water that essentially makes up the entirety of the hole’s left perimeter, I decided I would hit irons all the way. My drive was a three-iron that faded left and settled about three feet from the water.  So much for playing it safe!

My second shot was another long iron, which landed promptly on the green about six feet from the hole.

I sank the putt and ran giggling off the green, and have never been back.

I birdied 18 at TPC Sawgrass playing only irons.

Take that, Phil Mickelson!

Written by turbotodd

May 11, 2012 at 5:23 pm

IBM Business Analytics: Preventing Fraud, Predicting Profits

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Scott Laningham and I are starting to think about repacking our suitcases and preparing to head back out on the road, this time across the pond to Madrid for the IBM Smarter Commerce Global Summit May 22-24.

In Madrid, we expect to hear quite a bit about IBM’s investment in the analytics space, but that doesn’t mean we have to wait to visit the Prado to relate some interesting details about business analytics.

Specifically, predictive analytics that can help companies across the span of industries to prevent fraud.

Here’s a sound byte you may not have yet heard: Did you know that insurance fraud has reached an estimated $80 billion per year in the U.S. alone??

And in South Africa, the rate of short-term insurance fraud is about 15 percent of all premium costs.

And yet, we’ve also found that organizations that effectively apply predictive analytics are 2.2 times more likely to outperform their peers.

One such client of IBM is Santam, South Africa’s leading short term insurance company, which has saved $2.4 million on fraudulent claims in the first four months of using IBM business analytics software.

This new analytics solution has not only enhanced Santam’s fraud detection capabilities, however — it has also enabled faster payouts for legitimate claims.

In partnering with IBM, Santam’s claims division developed a new operating model for processing claims, depending on varying risk levels. IBM’s predictive analytics software has enabled Santam to automatically assess if there is any fraud risk associated with incoming claims and allows the insurer to distribute claims to the appropriate processing channel for immediate settlement or further investigation, which in turn optimizes Santam’s operational efficiency.

In turn, Santam is able to reduce the number of claims that need to be assessed by mobile operatives visiting the customer or claim site, resulting in further considerable cost savings for the company.

IBM: Investing In Analytics, Predicting Results

In the last five years, IBM has invested more than $14 billion in acquisitions. With investments in SPSS, Clarity, OpenPages, i2 and Algorithmics, and others, IBM is building business analytics solutions providing clients with capabilities for managing fraud, risk and threat. In addition, IBM has assembled almost 9,000 dedicated analytics consultants with industry expertise, and created a network of eight global analytics solution centers.

The Santam project also illustrates IBM’s leadership in analytics in Africa. IBM is also actively laying the foundations for a major presence throughout the African continent, with offices in more than 20 African countries, where the company is assisting businesses and governments in building strategies, expertise, solutions, frameworks and operating procedures to help improve performance.

You can learn more about Santam here, and their new predictive analytics solution in the video below.  You can learn more about IBM business analytics solutions here.

A Billion Angry Birds Served…And Counting

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Remember that scene from the movie “The Social Network,” the one where Sean Parker is advising Facebook co-founder Eduardo Saverin over cocktails?

It goes something like this:

Sean Parker: You don’t even know what the thing is yet. How big it can get, how far it can go. This is no time to take your chips down. A million dollars isn’t cool, you know what’s cool?

Eduardo Saverin: You??

Eduardo Saverin: (As the scene shifts back to the deposition room): A billion dollars!

With the looming Facebook IPO, it seems that Parker was off only by a factor of 100, but a minor detail.

Well, it appears Facebook is not the only one reaching the upper echelons of the Internet stratosphere.

Overnight, TechCrunch reported that in Rovio’s newsletter this week, the company announced its own revenues had increased by more than tenfold in 2011, and that its “Angry Birds” gaming phenom had passed the one billion download mark.

I can see the big Angry Birds McDonald sign in the sky now, over 1 billion Angry Birds served!

What’s probably less well known is that Rovio has turned into a merchandising juggernaut, selling Angry Birds-stamped merchandise ranging from T-shirts to pencil eraser sets (of which I am now the proud owner of 2 — assembly required!).

Some 30 percent of all Rovio revenues came in last year via its massive merchandising efforts.

Could an Angry Birds movie be next? Well, perhaps not an entire movie, but certainly a spoof that pretends to be directed by Hollywood action auteur Michael Bay:

Such drama!

Of course, with all those “Angry Birds” game editions replicating like rabbits, you’re soon going to require a super-duper-bird-throwing-handheld-supercomputer to be able to keep up with all those pigs running around.

Good thing Apple’s allegedly now set to deliver a new version of the iPhone in September (this according to Apple Insider, although no details of the new iPhone have yet been released.)

One can only hope for some hopped up “Angry Birds”-optimized iPhone DRAM!

IBM ImpactTV 2012 Instant Replay: IBM’s Mike Rhodin On Big Data, Smarter Commerce, And The Emerging LOB Tech Buyer

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Our first interview at IBM Impact 2012 this year was with IBM senior vice president, IBM Software Solutions Group, Mike Rhodin.  This was also our first ever opportunity to interview Mike, so we were especially excited about this particular interview.

Mike leads an organization which focuses on delivering integrated offerings that target high-growth opportunities, including business analytics, collaboration, and industry solutions.  As a senior vice president, Mike is responsible for a $5 billion business portfolio which represents one of the fastest growing and most acquisitive.

In our interview, Mike explained that his business is reaching more of a non-traditional technology buyer, the senior “line of business” executives who have played a much more dominant role in tech acquisition through the economic downturn, and who are looking for solutions that can help their organizations differentiate themselves in the marketplace, and and even more readily empower front-line executives and decision makers.

He also brought us up to date on what IBM’s Watson has been up to over the past year, explaining that Watson finally got a “real” job — actually, a couple of them!

In his former IBM lives, Mike has served as the general manager of IBM’s Northeast Europe organization, as well as the GM of IBM’s Lotus Software division, a stint in which he led a team to create the “human side” of IBM’s software strategy by developing IBM’s collaborative technology and solutions which integrate people, data, and business processes.

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