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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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.

You won’t believe these photos!

Maybe you saw my post about the monster waves that hit SoCal the week before Christmas. Well, here are the best photos I’ve seen of that *humongous* swell! Yes, this is Southern California — not the North Shore of Oahu!

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Photographer: Sam Iacobellis (images used with permission). Shot from the cliffs at Black’s Beach in San Diego County — that’s in the Torrey Pines area, just north of LaJolla. Thanks to my good friends at The Surfrider Foundation in San Clemente for alerting me to these excellent photos: Steve Blank and Jim Moriarty, who has his own great blog called Shaping Room. Note there the caption he gives to these photos: “Why We Do What We Do”(!) Kudos to the photographer and, especially, the rider! (I’ll update this post with his name, if and when I get it.)

To those who surf, you’re no doubt familiar with this saying associated with legendary Hawaiian big-wave rider Eddie Aiku: “Eddie Would Go.” Well, this guy is an Eddie! Anyone out there care to guess the height of this wave?

Intelligence Mining

With the new year officially kicking off today, at least for the business world, what better reason to do yet *another* post early on — this one about what I think is a big coming trend.

I’ve been thinking a lot lately, in my professional life, about how companies will increasingly find it necessary to mine various types of knowledge bases, both within and without its corporate walls. Call it what you will: knowledge mining, intelligence mining, whatever. It’s a very good bet for attention and focus this year, for a number of reasons.

Let’s start with the exploding storehouse of valuable data in the blogosphere. Yes, there is value out there, somewhere, if you can only filter out all the chaff. And what a job that is! But marketers, of which I am one, know this is an area they cannot afford to ignore (esp those in consumer-products companies) — to find what people are saying about their firm or their products. PR people, too, have high interest here. There’s no doubt it’s another form of consumer market research for the marketers, and an added way for the PR profession to gauge public perceptions and attitudes — if only they had the tools to make this daunting task easier. Well, those are coming, folks — in droves. Here’s just one that was announced recently, as summarized in an article in KM World (that’s about Knowledge Management, for the uninitiated). It’s about a new offering from Biz360 and Feedster called “BlogView,” to help marketers glean intelligence from the “increasing volume of blog and Wiki content discussing their company, products, competitors and trends that affect their business.”

But that’s not the only type of intelligence mining that companies will be increasingly doing. “Email mining” is another, in my humble opinion — this time, inside the firewall. Though many in the blogosphere would have you believe that blogs are the killer app in business communications, that remains to be seen. Email still holds that throne and won’t be leaving soon. A recent report published by IDC on the future of email talks about the “crucial role for email throughout the collaboration process.” And it raises the possibility that email content may “parallel that of other enterprise application data and business processes.” Thus, you’d better believe that smart companies are now — or will soon be — mining this internal treasure trove of knowledge, for a whole lot of reasons. In fact, they already are for legal or compliance purposes — that is, using the advanced search techniques provided by new email archiving software solutions to very quickly retrieve specific emails required for compliance audits or legal discovery. (These solutions — which range from complex enterprise apps requiring bigtime integration, to outsourced/hosted services, to simple internal “appliances” that do the job, plug-and-play — came about simply because companies had to produce emails fast when ordered to, or risk huge fines and penalties by regulatory agencies and courts.)

Email volume is growing rapidly — more than doubling over the past two years according to IDC. And, typically, a company’s total data is now more than 80% of the “unstructured” variety, according to Enterprise Strategy Group, which of course includes that rapidly growing category of email.

I postulate that, as companies are now actively learning how to mine their email knowledge base for the above “reactive” reasons, they will naturally expand the practice to more “proactive” uses — that is, to mine intelligence that can improve or speed product development, marketing, human resources administration, customer support, and all kinds of other positive, business uses. The key, as I see it, is that, while email (including attachments) is fast increasing as a percentage of the “corporate memory,” the critical *value* of it to the corporation goes up even faster.

Who wouldn’t want to be able to mine that knowledge base for all its worth? So, it may not be long before you see that “email mining appliance” plugged in and humming away in your company’s server room, too.

What a Guy!

One of my favorite people in the world of technology is Guy Kawasaki — Mac evangelist, Apple Fellow, book author, columnist, and lately a VC. A couple of days ago, he became an ex-holdout in the realm of blogging (I can relate), launching a very nice blog, which he named, quite appropriately, “Let the Good Times Roll.” Why is it a good name in Guy’s case? Because he’s a really funny, entertaining guy, whether through the written word or onstage. But, more importantly, he has such a positive outlook on life, and that includes being a strong supporter of all the great things technology and innovation can do in our lives.

The name doesn’t stop with the above, however: I got a huge kick out of his subtitle, too! It’s his definition of a blogger. Right in line with my mind set — see my post of November 6, 2005, “Of Blogs and Boredom.” Not much has been written about this dirty little secret of the blogosphere, so it’s nice to see someone else calling it out — or at least having fun with it.

I think Guy’s blog is going to carry a whole lot more worth reading, too. Welcome, Guy! And forget about having to blog daily (remember, the non-bored among us don’t care). Hey, even if it’s only a couple posts a month from you, your blog will be great!

Name Change

If you’re new to my blog, you won’t notice, of course — but a few days ago, I changed the name from “Graeme Blogs Here,” which was at best a placeholder. Naming a blog is hard, because blogging forces things into micro-niches. And I have waay too many interests to pick only one thing to blog about. So, initially, I could come up with only a generic name. Now, I’ve decided to focus on my two greatest interests, technology (work) and surfing (personal), including surf photography, and to try to come up with some sort of blog-blend that will work and keep things interesting. What do I mean by “tech”? Well, innovation, computing trends, entrepreneurship, productivity, venture capital, and the world of startups — where I’ve been focused now for decades.

Blogs are all about passion. And that’s one of the reasons I wrote in my now famous (infamous?) piece on DarwinMag.com several months ago that business and blogging don’t mix: businesses don’t do passion; people do. When I really thought about my own personal blog, I couldn’t come up with two better things to try blogging about than these lifelong passions. So, off we go with the new moniker…granted, an experiment, but one I expect to have fun with.

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