size does matter

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THE INTERNET OPERATES A LOT LIKE THE MUSIC VIDEO FOR KARMA POLICE

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Our draft for our Thursday Web 2.0 Expo talk.Would love your thoughts.

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Page 1: Size Does Matter

THE INTERNET OPERATES A LOT LIKE

THE MUSIC VIDEO FOR KARMA POLICE

Page 2: Size Does Matter

IT STALKS US AT A PREDATORY PACE

SHINING ITS BLINDING BEAM OF COMPETITION

Page 3: Size Does Matter

TO SURVIVE YOU NEED THE GUTS TO

STARE IT DOWN

Page 4: Size Does Matter

YOU MUST THINK QUICK

AND FIGHT BACK WITH SOMETHING AWESOME

Page 5: Size Does Matter

SIZE DOES MATTER

The customer used to get their content in physical stores, and then it changed to by-mail and kiosks. We’re building out all those platforms, and it doesn’t happen overnight. Like I said, it’s remodeling a house: it’s not easy, it’s not cheap, and it’s not fast.”“

Page 6: Size Does Matter

SIZE DOES MATTER????

WHO SAID IT?

Page 7: Size Does Matter

SIZE DOES MATTER

JIM KEYESCEO, Blockbuster

Page 8: Size Does Matter

SIZE DOES MATTER

0

100

200

50

100

NETFLIX

BLOCKBUSTER

OCT 09 OCT 10

Page 9: Size Does Matter

SIZE DOES MATTER

THE ARGUMENT, THEN?

Page 10: Size Does Matter

SIZE DOES MATTER

STOP THINKING BIG.

Page 11: Size Does Matter

SIZE DOES MATTER

THINK SMALL.We implore you:

Page 12: Size Does Matter

SIZE DOES MATTER

Clay Parker Jones Alexander Chung&

Page 13: Size Does Matter

SMALL DIFFERENCES

Page 14: Size Does Matter

SIZE DOES MATTER

IT IS PRECISELY THE MINOR

DIFFERENCES IN PEOPLE WHO

ARE OTHERWISE ALIKE THAT

FORM THE BASIS OF FEELINGS

OF HOSTILITY BETWEEN THEM.Sigmund Freud

““““

Page 15: Size Does Matter

SIZE DOES MATTER

Page 16: Size Does Matter

SIZE DOES MATTER

Page 17: Size Does Matter

SIZE DOES MATTER

Page 18: Size Does Matter

SIZE DOES MATTER

It’s our tendency to view communities we inhabit as exceptional, even when they’re not.

Page 19: Size Does Matter

SIZE DOES MATTER

If we’re willing to go to war over the interpretation of words in a book, we’re likely to dismiss a marketing idea that doesn’t recognize what makes us special.

Page 20: Size Does Matter

SIZE DOES MATTER

Build experiences that recognize the things that distinguish one community from an outwardly similar Other.

Page 21: Size Does Matter

FRIDGES

Page 22: Size Does Matter

SIZE DOES MATTER

ANY CUSTOMER CAN HAVE

A CAR PAINTED ANY COLOR

THAT HE WANTS...

SO LONG AS IT IS BLACK.Henry Ford

““““

Page 23: Size Does Matter

SIZE DOES MATTER

84

52 LOS

S

GA

IN¥

¥Q2 Profit, BNPanasonic

Page 24: Size Does Matter

SIZE DOES MATTER

In Indonesia, Panasonic found that fridges need big compartments to store lots of two-litre water bottles: Indonesians boil water to purify it in the morning and then place it in the fridge to cool.”

The Economist

Page 25: Size Does Matter

SIZE DOES MATTER

INDIACHINA&

Energy Efficient A/C A/C With Cool Housing

Page 26: Size Does Matter

SIZE DOES MATTER

2009 2010

Products developed in JapanPanasonic

Page 27: Size Does Matter

SIZE DOES MATTER

It’s less expensive today to create products that are customized per a region, country, or individual.

Page 28: Size Does Matter

SIZE DOES MATTER

Create experiences that are particular, taking into account what customers need and want. And don’t be afraid to have them do the designing for you.

Page 29: Size Does Matter

SIZE DOES MATTER

Henry, we’ve got it from here.

Page 30: Size Does Matter

FIELDMICE

Page 31: Size Does Matter

SIZE DOES MATTER

BODY SIZE IS THE MOST

IMPORTANT TRAIT OF AN

ORGANISM, FUNDAMENTALLY

INFLUENCING ITS ABILITY TO

SURVIVE AND REPRODUCE.”Lomolino & Perault, Conservation Biology

““““

Page 32: Size Does Matter

SIZE DOES MATTER

-15%

Page 33: Size Does Matter

SIZE DOES MATTER

Habitats for everything – ideas included – are shrinking by the day. In some industries, they’re shrinking by the hour. And the mouse that eats lives to see the next one.

Page 34: Size Does Matter

SIZE DOES MATTER

When competition for resources becomes fierce, smaller budgets and tighter focus rule the day.

Page 35: Size Does Matter

SIZE DOES MATTER

Pay for focus and targeting. Otherwise, don’t pay.

Page 36: Size Does Matter

FIJI

Page 37: Size Does Matter

SIZE DOES MATTER

EVERY ACTION THAT IS NOT

CUSTOMARY IS EITHER WRONG

OR, IF IT IS RIGHT, IS A

DANGEROUS PRECEDENT. F.M. Cornford

““““

Page 38: Size Does Matter

IT FOLLOWS THAT NOTHING

SHOULD EVER BE DONE FOR

THE FIRST TIME.

SIZE DOES MATTER

F.M. Cornford

““““

Page 39: Size Does Matter

SIZE DOES MATTER

How easy is it to build a methodology in your environment?

Page 40: Size Does Matter

SIZE DOES MATTER

AUSTRALIA2,000 MILES

CHILE7,000 MILES

FIJI

Page 41: Size Does Matter

SIZE DOES MATTER

FIJI

GODFREY BALDACCHINO

CONSTRAINTS

Page 42: Size Does Matter

SIZE DOES MATTER

CURSED BY DEPENDANCE, LIMITED ACCESS AND ISOLATION

TRADE AGREEMENTS RESOURCES

WIDER AUDIENCES

FIJI

SOLUTIONS

Page 43: Size Does Matter

SIZE DOES MATTER

THEY STEAL, EXTEND AND REFRAME

TALENT RELATIONSHIPS

VALUE PROPOSITIONS

FIJI

Page 44: Size Does Matter

SIZE DOES MATTER

If we limit the number of variables within a project, team members have more time to incubate on resourceful solutions. Take away scope and increase autonomy.

Page 45: Size Does Matter

SIZE DOES MATTER

Daydream about Fiji.

Page 46: Size Does Matter

POVERTY

Page 47: Size Does Matter

THERE IS TREMENDOUS

VARIATION IN THE WORLD THAT

WE OFTEN OVERLOOK.

SIZE DOES MATTER

Hans Rosling

““““

Page 48: Size Does Matter

$1 $10

AFRICA

$100

Page 49: Size Does Matter

$100$1 $10

OECDAFRICA

Page 50: Size Does Matter

$100$1 $10

OECDAFRICA

LATIN AMERICA

Page 51: Size Does Matter

$100$1 $10

OECDAFRICA

LATIN AMERICA

EASTERN EUROPE

Page 52: Size Does Matter

$100$1 $10

OECDAFRICA

LATIN AMERICA

EASTERN EUROPE

EAST ASIA

Page 53: Size Does Matter

$1 $10 $100

OECDAFRICA

LATIN AMERICA

EASTERN EUROPE

EAST ASIA

SOUTH ASIA

Page 54: Size Does Matter

SIZE DOES MATTER

That doesn’t paint a very clear picture, does it?

Page 55: Size Does Matter

SIZE DOES MATTER

4 million people use Foursquare. Who cares?

Page 56: Size Does Matter

SIZE DOES MATTER

4:00 AM 8:00 AM 12:00 PM 4:00 PM 8:00 PM 12:00 AM 4:00 AM

3593 CHECKINS

12:30 PM

JUNE 20TH 2010

Page 57: Size Does Matter

SIZE DOES MATTER

Once we start thinking smaller, sponsors will be happier giving us money and results will be easier to measure.

Page 58: Size Does Matter

MICROFINANCE

Page 59: Size Does Matter

SIZE DOES MATTER

Segment project into discrete objectivesDefinition

PROJECT

OBJECTIVE

OBJECTIVE

OBJECTIVE

Page 60: Size Does Matter

SIZE DOES MATTER

Agree on success metrics for each objectiveNegotiation

OBJECTIVE PAYMENT TERMS

AGENT SPONSOR

OBJECTIVE PAYMENT TERMS

OBJECTIVE PAYMENT TERMS

Page 61: Size Does Matter

SIZE DOES MATTER

Loan money and complete objectivesSpend

AGENT SPONSORPAYMENT TERM OBJECTIVE

OBJECTIVE LOAN

Page 62: Size Does Matter

SIZE DOES MATTER

AN IDEA!!!! IMAGINE BUDGETS

OPERATED UNDER A

MICRO-FINANCING MODEL.

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SIZE DOES MATTER

Sponsors can determine the aggregate rate of return on their investment by viewing performance of their numerous loans.

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SIZE DOES MATTER

It would also help an organization see where it’s most effective at spending money.

Page 65: Size Does Matter

BANNERADS

Page 66: Size Does Matter

SIZE DOES MATTER

INCENTIVES

INTERACTIVITY

EMOTIONAL APPEAL

ANIMATION

Page 67: Size Does Matter

0

2

4

6

8

10

12

INCENTIVES

0

2

4

6

8

10

12

INTERACTIVITY

0

2

4

6

8

10

12

EMOTIONAL APPEAL

0

2

4

6

8

10

12

ANIMATION

Impact of content and design elements on banner ad CTR, 2003The Journal of Advertising Research

Page 68: Size Does Matter

VIOLIN

Page 69: Size Does Matter

BE PRECISE. A LACK OF

PRECISION IS DANGEROUS

WHEN THE MARGIN OF

ERROR IS SMALL.

““““

Donald Rumsfeld

SIZE DOES MATTER

Page 70: Size Does Matter

Just for fun, Rummy also said...

SIZE DOES MATTER

Page 71: Size Does Matter

DEATH HAS A TENDENCY TO

ENCOURAGE A DEPRESSING

VIEW OF WAR.

SIZE DOES MATTER

Donald Rumsfeld

““““

Page 72: Size Does Matter

OSAMA IS EITHER ALIVE AND

WELL OR ALIVE AND NOT TOO

WELL OR NOT ALIVE.

SIZE DOES MATTER

““““Donald Rumsfeld

Page 73: Size Does Matter

NEEDLESS TO SAY, THE

PRESIDENT IS CORRECT.

WHATEVER IT WAS HE SAID.

SIZE DOES MATTER

““““Donald Rumsfeld

Page 74: Size Does Matter

I’M NOT INTO THIS DETAIL

STUFF. I’M MORE CONCEPTY.

SIZE DOES MATTER

““““Donald Rumsfeld

Page 75: Size Does Matter

Okay. Back to the concepty stuff.

SIZE DOES MATTER

Page 76: Size Does Matter

BUSKER

METRO STATION

Page 77: Size Does Matter

$32

Page 78: Size Does Matter

JOSHUA BELL

Page 79: Size Does Matter

JOSHUA BELLMade a guitar out of rubber bands.

4 YEARS OLD

Page 80: Size Does Matter

JOSHUA BELLAppeared as a soloist with the Philadelphia Orchestra.

14 YEARS OLD

Page 81: Size Does Matter

JOSHUA BELLDebuted at Carnegie Hall.

18 YEARS OLD

Page 82: Size Does Matter

JOSHUA BELLSold out Boston Symphony Hall at a seat.

40 YEARS OLD

$100

Page 83: Size Does Matter

SIZE DOES MATTER

Without the right framing, most digital initiatives will suffer the same fate as a virtuoso busking at a train station.

Page 84: Size Does Matter

Don’t be happy with waste.

IF YOU THROW MONEY IN

Page 85: Size Does Matter

OUTCOME LEVEL ONE

OUTCOME LEVEL TWO

OUTCOME LEVEL THREE

OUTCOME LEVEL FOUR

JOSHUA BELL; LOC: METRO STATION

JOSHUA BELL; LOC: CARNEGIE HALL

Page 86: Size Does Matter

OUTCOME LEVEL ONE

OUTCOME LEVEL TWO

OUTCOME LEVEL THREE

OUTCOME LEVEL FOUR

MAKE SURE IT DOESN’T END UP HERE

Page 87: Size Does Matter

MEDIA

Page 88: Size Does Matter

POPULAR CULTURE HAS, ON

AVERAGE, GROWN MORE

COMPLEX AND CHALLENGING

OVER THE PAST THIRTY YEARS.

““““

Steven Berlin Johnson

SIZE DOES MATTER

Page 89: Size Does Matter

SIZE DOES MATTER

Dragnet Sopranos

I Love Lucy Seinfeld

Page 90: Size Does Matter

SIZE DOES MATTER

0%

10%

20%

30%

40%

50%

60%

NEWSPAPERS

-9.2%

NATIONAL PUBLIC RADIO

+100.5%NETWORK TV NEWS

-26.3%

Market ShareSelected News Properties

Page 91: Size Does Matter

SIZE DOES MATTER

But scale isn’t everything.

Page 92: Size Does Matter

““““

Alan Press, The Economist

SIZE DOES MATTER

BECAUSE WE ARE A PREMIUM

PRODUCT [+$100 ANNUAL

SUBSCRIPTION] WE HAVE A

VERY DIFFERENT MODEL THAN

MOST PUBLISHERS.

Page 93: Size Does Matter

SIZE DOES MATTER

The reality is that there is a growing demand among the educated for intelligent news, analysis and entertainment that challenges, amuses and informs.“ALAN PRESS, THE ECONOMIST

Page 94: Size Does Matter

SIZE DOES MATTER

CIRCULATION

1.4MM

PROFITS

$92MM

Health Indicators, 2009The Economist

6% Growth

26% Growth

Page 95: Size Does Matter

SIZE DOES MATTER

How much money does your app make with 1.4MM users?

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SIZE DOES MATTER

Seriously, scale isn’t everything.

Page 97: Size Does Matter
Page 98: Size Does Matter

SIZE DOES MATTER

DESIGN FOR THE THINGSTHAT MAKE COMMUNITIES

UNIQUE AND SPECIAL.

Page 99: Size Does Matter

SIZE DOES MATTER

DESIGN AND PRODUCEMULTIPLE VERSIONS THAT

APPRECIATE LOCALITY.

Page 100: Size Does Matter

SIZE DOES MATTER

BE LIKE THE FIELD MOUSE.GET SMALLER AS WHEN

COMPETITION INCREASES.

Page 101: Size Does Matter

SIZE DOES MATTER

USE SMALLNESS AND RARITYTO CREATE DIVERGENCE.

Page 102: Size Does Matter

SIZE DOES MATTER

BREAK UP BUDGETS INTOSMALLER CHUNKS AND

JUDGE INDIVIDUALLY.

Page 103: Size Does Matter

SIZE DOES MATTER

CREATE INNOVATION FUNDSWITH ACCOUNTABLE SPONSORS

AND DISCRETE GOALS.

Page 104: Size Does Matter

SIZE DOES MATTER

DON’T TRY SO HARD.

Page 105: Size Does Matter

SIZE DOES MATTER

REJECT WASTE.

Page 106: Size Does Matter

SIZE DOES MATTER

STICK WITH WHAT MAKESYOU DIFFERENT. AND DON’T

BE AFRAID OF A SMALL AUDIENCE.

Page 107: Size Does Matter

THINK SMALL

Page 108: Size Does Matter

SIZE DOES MATTER

STOP THINKING BIG.

Page 109: Size Does Matter

We repeatedly solve for problems that are too big for us.

SIZE DOES MATTER

Page 110: Size Does Matter

Every idea can be divided into smaller and easier-to-solve particles.

SIZE DOES MATTER

Page 111: Size Does Matter

When it comes time to take action, your job is to assemble these particles or, simply, allow a forum for them to co-exist.

SIZE DOES MATTER

Page 112: Size Does Matter

Small ideas that, when brought together, solve problems greater than the sum of their parts.

SIZE DOES MATTER

Page 113: Size Does Matter

SIZE DOES MATTER

WHEN HE PULLS A KNIFE

YOU PULL A GUN

Page 114: Size Does Matter

SIZE DOES MATTER

THINK SMALL.We implore you: