Graeme Thickins on Tech

Reflections & analysis about innovation, technology, startups, investing, healthcare, and more .... with a focus on Minnesota, Land of 10,000 Lakes. Blogging continuously since 2005.

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Getting Face-to-Face at Conferences

With all the reliance we place on online communications today, it’s so easy to forget how important it is to break away and get facetime with people — and I’m talking specifically with lots of ’em, at events and conferences. Sometimes we have to force ourselves to do this, to leave the routine behind, but the payoff is great. I learned this years ago, when I found that jumping on a plane every now and then to attend (and report on) technology events energized me like nothing else. You just can’t beat getting into the middle of such gatherings of smart people and movers and shakers in this business. It isn’t just the intelligence you pick up at these things, but you meet the greatest people. I’ve compared it before to this, but it’s like to going to camp. Some of my closest professional colleagues and friends today I met at conferences, going back 6, 7, 8 years.

I’m happy to say now that the nice folks at Demo ’06 have seen fit to admit me as a press registrant. So, I *will* be blogging from there (and even posting in advance) — and I’m greatly looking forward to it! I know there wll be big energy at this happening. And I intend to capture as much of it as I can for you, along with lots of juicy details.

Coming Out of Stealth

Don’t ya just love intrigue? I do. Stealth companies are so fascinating to me — trying to figure out what they’re up to, how they’re plotting their intro strategy, targeting their market, weaving their messaging, etc. (And I’ve been involved in my share of ’em.) The anticipation, the wonder, the pre-launch tension(!) — it’s a great part of this crazy technology business.

Heard of Krugle yet? You will. Just got an email from my good friend Steve Larsen (formerly of Minneapolis and now Menlo Park), and I noticed a little link at the bottom to Krugle’s new blog. They’re launching at Demo ’06 in Phoenix, it turns out, which is just a few weeks away. And, wouldn’t ya know it, I learned my buddy Doc Searls has already been involved in checking out this new technology. (Smart move, Steve — but then you’re the best I know at this game.)

I have my ideas of what Krugle’s about. But maybe, just maybe I’ll do my conference-reporting thing again and get out to Demo and blog from there…on Krugle and more (hey, 70 companies are participating!). If you’ve been with me for a while, you know I’ve filed conference reports on many, many tech events in the past, especially as a contributor for Conferenza, where I got to meet and work with such cool guys as Gary Bolles and Shel Israel. I hope I can get to this Demo, because I sense it will be really, really good…

I’m Official Now… :-)

Got blogged by Doc Searls. Thanks, Doc! You *are* da blogman… I met Doc in about ’98 (we’d been emailing for while before that, in his Cluetrain Manifesto days) — really before the whole blog thing fired up. I recall it was at an Internet World event in LA. I liked him instantly. I think we had a lot in common because we’d both been technology ad guys once upon a time.

Then, he actually came to Minneapolis to cover an event for Linux Journal, and we met up again. Since then, we’ve seen each other at various conferences, including O’Reilly’s, and stayed in touch by email. I’ve gained even more respect for Doc over time — it’s amazing what he does, the great perspectives he provides, the way he so clearly presents and positions things going on out there. The man also has a great quality missing too much these days: humility. I think he personifies the best of the whole blogging phenomenon. And to think it all started with that simple, yet oh-so-prescient quote of his: “Markets are conversations.”

Why the “Best Buy” Is an Online One

Gotta tell you my latest retail experience. There are so many reasons I don’t like the bricks-and-mortar shopping experience. Most relate to my impatience, and the way retailers waste people’s time.

A couple days ago, I walked into a Best Buy store to return a defective music DVD — simply to get another of the same title, since mine had nothing on it. (Thank you, Music Industry, by the way, for your swell quality control.) This item was a gift (had no receipt), so returning it by mail wasn’t an option. How long could this take, I thought: 4-5 minutes? In your dreams….

Close to 30 minutes later, I finally walked out with a new DVD (which I can only hope will play), my mind numb from standing, staring, and waiting (no music was even playing!) while the multi-employee/manager process dragged on. And I had to settle for another title by the same artist, since they were out of the one I was trying to replace! About eight people returning God-knows-what more pricer stuff than I came and left while I waited. Wow, what a wonderful, rewarding shopping experience.

Bbylogo I’m a big fan of Best Buy — the company’s based about two miles from where I sit, I know many people there, and myself and my colleague Randy Geise were interim Content Director and Design Director, respectively, on the team that built their great ecommerce site, launched in early 2000 (now clocking $1 billion in sales annually, and growing). But their service sure sucked in this case. And it’s hardly the first time I’ve had a frustrating experience in one of their stores, and many others like them. So I rarely ever go into one, and this experience just serves to remind me why I don’t.

My choice is increasingly buying online, and returning by mail when necessary — the latter having been made pretty painless, thanks to the lead Amazon and others set for the online retailing industry some time ago.

Is it any wonder the growth of online retail sales is skyrocketing? Let’s look at some numbers just reported in the business pages yesterday. For the month of December, Best Buy (NYSE: BBY) had a same-store sales increase of 5.8% over the previous year — well ahead of what analysts thought would be only 4-5%. (That is, from 16% to 45% better!) Also, it was more than double the same-store sales gain in the previous year, which had been only 2.5%. The market reacted very positively, driving the stock price up 8.2% in just one day.

But let’s drill in a little further. According to the Wall Street Journal, Best Buy now defines same-store sales as “those at stores open for at least 14 months, as well as remodeled and expanded locations and from the company’s Web site.” Did you catch those last little three words? I don’t know how long that’s been included in their comparisons, but it’s no small point.

Why? Because, friends, it was also reported by BBY (though not mentioned in most media accounts) that its online sales increased *40%* over the previous December! Sure, there was a nice increase in gift-card purchases, too: 20%. But no increase was higher than online sales (and many of those gift cards were in fact purchased online). You can be sure it had a big effect in driving up the same-store sales figure, and the stock price. Online is where the real growth is in this business.

Yes, BBY is a “buy” in my book — but know why you’re buying it. What myself and my colleagues believed in so passionately back in 1999-2000 is all coming true. Thankfully, then-president and now CEO Brad Anderson believed with us.

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