Monday, June 14, 2010

US discovers $1 trillion Afghan mineral deposits

i wonder what happens next..

 
 

Sent to you by Joe via Google Reader:

 
 

via The Times of India on 6/13/10

The US has discovered nearly $1 trillion in untapped mineral deposits in Afghanistan, far beyond any previously known reserves and enough to alter the Afghan economy and perhaps the Afghan war itself.

 
 

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Six things about deadlines

 
 

Sent to you by Joe via Google Reader:

 
 

via Seth's Blog by Seth Godin on 6/7/10

  1. People don't like deadlines. They mean a decision, shipping and risk. They force us to decide.
  2. Deadlines work. Products that are about to disappear, auctions that are about to end, tickets that are about to sell out--they create forward motion.
  3. Deadlines make people do dumb things. Every time I offer a free digital document or an educational event that has a deadline, I can guarantee I will hear from several (or dozens of) people with ornate, well-considered and thoughtful arguments as to why they missed the deadline. Never mind that they had two weeks... the last fifteen minutes are all they are concerned with. If it's important enough to spend an hour complaining about, it's certainly important enough to spend four minutes to just do it in the first place.
  4. Deadlines give you the opportunity to beat the rush. Handing in work just a little bit early is a sure-fire way to tell a positive story and get the attention you seek. The chart below tracks the day (out of 10) that I received each of the more than a thousand applications for the free nano MBA program. Want to guess which day's applications got the most attention from me?
  5. When we set ourselves a deadline, we're incredibly lax about sticking to it. So don't (set it for yourself, in your head, informally). Write it down instead. Hand it to someone else. Publicize it. Associate it with an external reward or punishment. If you don't make the deadline, your friend gives the $20 you loaned her to a cause you disagree with...
  6. They have a lousy name. Call them live-lines instead. That's what they are.

Applicationsperday

Key takeaway: Deadlines are a cheap and useful tool to for yourself (and others) to make a decision and to ship.


 
 

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Sunday, June 13, 2010

How To Permanently Delete Your Account on Popular Websites

 
 

Sent to you by Joe via Google Reader:

 
 

via The Best Article Every day by bspcn on 6/12/10

Written by Cameron Chapman

We all have an increasing number of sites and online services we're members of, and sometimes it all gets a little overwhelming. At times, we just need to delete our memberships to some sites, either in an effort to simplify our lives or just because we've grown tired of a particular site or service.

What we often don't realize when signing up for all these accounts, though, is how difficult it can be to permanently delete our accounts when we've had enough. Some require complicated, multi-step processes that can stretch over the course of days (or weeks). Others take less time, but still require multiple steps by the user.

Below we'll take a look at the account deletion processes of popular websites and services, and how easy or difficult they make it. Then we'll discuss why sites make things so complicated, and some things to consider when designing your own deletion policies.

[Offtopic: by the way, did you know that there is a Smashing eBook Series? Book #2 is Successful Freelancing for Web Designers, 260 pages for just $9,90.]

Facebook

Facebook in How To Permanently Delete Your Account on Popular  Websites

Difficulty (on a scale of 1-5, 5 being hardest): 5

Deleting a Facebook account is a bit more complicated than many other services. There are two options for getting rid of your FB account, one that's permanent and complete, and one that lets you change your mind later.

If you just want to shut down your account for a little while, with the option to reactivate it later, you can deactivate your account. This is simple: just go into your account settings and click on the "deactivate account" link. This immediately makes your account invisible to everyone else on Facebook. If you decide at a later date that you want to reactivate your account, it's as simple as reactivating.

If you're looking for something a little more permanent, though, you'll need to submit a request to Facebook. The tricky thing here, though, is that they don't immediately delete your account, and if at any time before it's permanently deleted you log in or otherwise interact with Facebook, your deletion request will be canceled. For that reason, it's a good idea to go around to any computers or devices (like your mobile phone) that you access your account through and log out (deleting saved passwords is also a good idea to prevent an accidental login).

Then you can use the form found here to request deletion. Remember not to log into your account at any point after that. There doesn't seem to be any official notice on how long it takes, but unofficial reports say 14 days. To be on the safe side, you may want to wait a month or more before attempting to login to confirm your account has been deleted.

More information on deleting your Facebook account can be found in their FAQs.

Twitter

Twitter in How To Permanently Delete Your Account on Popular  Websites

Difficulty: 2

In contrast to deleting a Facebook account, deleting a Twitter account is relatively easy. All you need to do is go into your account settings and click on the "Deactivate my account" link at the bottom of the page. This is a permanent deactivation, though it can take up to a month for your account and information to disappear entirely from their system.

One word of warning, though: if you think you might want to use your email address, username or phone number on Twitter in the future, make sure that you change them prior to deactivating your account. Whether these things are permanently blocked from Twitter in the future or only temporarily isn't specified, but it's a good idea to change them anyway.

You can find more information on deleting your Twitter account here.

MySpace

Myspace in How To Permanently Delete Your Account on Popular  Websites

Difficulty: 4

Deleting a MySpace account is a bit convoluted, but doable. You'll need to login to your account and then go to the "My Account" link, and then select "Account". Scroll until you see the "Account Cancellation" section and click on "Cancel Account". This is where it gets a little bit complicated. MySpace will then send you an email with instructions for completing your account cancellation. Except the email doesn't come right away, and can take a couple of days to show up. Once you get the email, it asks you for confirmation again that you want to delete your account, but then deletes it immediately.

All of the above works just fine, as long as you still have access to the email address you signed up with. But as so often happens when we finally decide to clean up our online accounts, some of them may be associated with outdated email or other accounts. In that case, there are a few alternatives listed by MySpace. The first one is to edit your profile and replace everything in your "About Me" box with "REMOVE PROFILE" and then contact MySpace and tell them to delete your profile (including your friend ID or URL). If that doesn't work (say, if you can't login to your account at all), you can just contact MySpace and ask them to delete the profile. How quickly they actually do so isn't specified.

Official instructions for deleting your account can be found here.

LinkedIn

Linkedin in How To Permanently Delete Your Account on Popular  Websites

Difficulty: 3

LinkedIn makes it quite easy to delete your account, once you know where to look. Click on "Settings" in the upper-right of the screen once you're logged into your account, and then select "Close Your Account" under "Personal Information". You'll then be prompted for the reason you're closing your account, and once confirmed, your account will be deleted.

As far as social networking sites go, LinkedIn probably has the most straight-forward account closure process. More details can be found here.

Google

Google in How To Permanently Delete Your Account on Popular  Websites

Difficulty: 3

Considering how pervasive Google is in our digital existence, you'd think deleting your Google account might be incredibly complicated. After all, many of us use dozens of Google services, and you'd think each one would require separate deletion.

For the most part, deleting your entire Google account is easy. There are only a few services that require special consideration. Of course, with the exception of a couple of services, there's no way to delete individual services completely from your Google account. For example, with Analytics, you can delete each individual site you're tracking, but not the Analytics account itself.

To delete your main Google account, login through the Google Accounts homepage. Then click on "Edit" next to "My Products". From that page, you can delete certain services (Orkut and Web History), as well as delete your entire account by clicking on "Clear account and delete all services and info associated with it". This will take you to a form where you'll need to confirm each of the services you'll be deleting. If you linked your Google account to an existing YouTube account, you'll need to delete that account separately.

Then you'll need to confirm your password, and check that you do, indeed, want to close your account, and that you know you're still responsible for any pending financial transactions associated with your account. Then confirm, and your account will be deleted.

Certain services, including Google Alerts, Groups, and Docs, aren't automatically deleted in this way. To unsubscribe from alerts, you'll need to refer back to your original Alerts email (or from any Alerts email you've since received) and click the 'unsubscribe'-link there. For Groups, you'll also need to unsubscribe from each group.

Google Docs leaves shared documents and presentations available to collaborators and viewers. Spreadsheets, on the other hand, aren't available to collaborators or viewers once you've deleted your account (so have a collaborator create a copy of the spreadsheet prior to deleting your account). With shared documents and presentations, you'll want to reassign ownership to another user before deleting your account.

Full details on deleting your Google account can be found on the Google's Help page "Deleting: Your Google Account".

Ebay

Ebay in How To Permanently Delete Your Account on Popular  Websites

Difficulty: 3

Ebay makes it fairly easy to close your account, though they do impose a waiting period. All you need to do is make sure your account has a zero balance, and then click the link to request your account be closed on this page.

One caveat: if you think you might want to use your email address for another Ebay account in the future, make sure that you change it prior to deleting your account. Email addresses and user IDs cannot be reused in the future. Once the waiting period has ended, your account will be deleted and your feedback ratings and other information will no longer be visible. Whether that information is permanently deleted or stored on a server somewhere ad infinitum isn't specified.

Wikipedia

Wikipedia in How To Permanently Delete Your Account on Popular  Websites

Difficulty: Impossible

Wikipedia is one of the few websites out there that doesn't allow you to delete your account. That's right, once you have a Wikipedia account, you have it forever. There is some hope, though, if you really don't want to be associated with it any longer.

In most cases, accounts can be renamed and your user page can be deleted, along with (in some cases) your user talk pages. While this doesn't erase your tracks entirely, it does effectively let you vanish from the site.

Wikipedia's reasoning behind this is that all contributions have to be assigned to someone. They can't have anonymous or orphaned contributions, or it would potentially ruin the crowdsourced and open nature of the site.

Flickr/Yahoo!

Flickr in How To Permanently Delete Your Account on Popular  Websites

Difficulty: 2

Deleting your account on Flickr is relatively easy. Once you've logged into your account, go to your account settings and click on the "Personal Information" tab. From there, click the link "Delete your Flickr account". A warning screen will come up that informs you that the deletion is permanent, and that all of your photos and videos will be deleted.

Deleting your entire Yahoo! account is a separate step. Log into your account and then go to the account deletion page. This page explains what happens when you delete your account. User information is kept on Yahoo!'s active servers for 90 days after the deletion has been requested, and may persist in backups beyond that. Once you've read the information on the page, you have to enter your password, a captcha code and then confirm that you want to delete your account. One thing to remember: if you've signed up for any Yahoo! premium services, you may still be billed for those after your account has been terminated, so make sure you cancel those premium services before you delete your account.

Windows Live

Windowslive in How To Permanently Delete Your Account on Popular  Websites

Difficulty: 2

Closing your Windows Live account is actually surprisingly easy. There's only a problem if you're using that account to access other websites. If so, you'll need to go to each website where you're using your Windows Live login credentials and delete your accounts there prior to deleting the Live account itself. If you don't, you won't be able to delete those accounts (or do anything with them) once your Live ID is deactivated.

Now, once you've verified that all your accounts linked to your Live ID have been closed, all you need to do is go to your Windows Live account and click on the "Close your account" link at the bottom under "Other Options". This will bring up a page that tells you what happens when your account is closed. This includes that your registered information will be permanently deleted, that some information might not be deleted (refer to their privacy statement for details on that), and that if you have associated children's accounts with that Live ID, they will also be deactivated. To finish the deletion process, you have to type in your password and click "Yes".

There are reports that at this point you may be told there is a Microsoft email account associated with your account, and that your account cannot be closed. From there, you just need to click on "Close your Microsoft account" and then "Close my account".

Stumbleupon

Stumbleupon in How To Permanently Delete Your Account on Popular  Websites

Difficulty: 1

Stumbleupon is one of the easiest web services to delete your account from. Just go to their delete account page, enter your user ID/nickname and password, and click on "Delete Account". That's it! Account deletions are permanent, so make sure you really want to delete your account before clicking that "Delete Account" button.

Wordpress.com

Wordpress in How To Permanently Delete Your Account on Popular  Websites

Difficulty: Impossible

WordPress.com doesn't allow you to delete your account. Instead, they recommend you simply leave the account inactive. If you're worried about the information you've uploaded to your WordPress.com account, remember you can always delete the information contained in the account (or replace it with false information).

Start by deleting your blogs. To do that, go to Tools and then "Delete Site". There's an email confirmation step required. You may want to run an export of your site's content first, just so you have a backup in case you ever want to repost or reuse any of it (or just for posterity). After that, you can replace your email address and other identifying information with alternative information. More information can be found on this page and this one.

Amazon

Amazon in How To Permanently Delete Your Account on Popular  Websites

Difficulty: 3

Closing your Amazon account requires you to contact their customer service department to request the account to be closed. This can only be done if you have no pending transactions, so make sure you've either received or cancelled all recent orders.

The email to customer service has to be sent from the email-address associated with your account. Other than that, they don't give any indication of either how long it might take to delete the account or if there are additional confirmation steps involved.

YouTube

Youtube in How To Permanently Delete Your Account on Popular  Websites

Difficulty: 3

If your YouTube account was set up with your Google account login credentials (as in, you used your Google account to sign up for your YouTube account), it's automatically deleted when you delete your Google account. But if you set it up separately from your Google account (or linked the accounts together after they were both set up, or if you want to keep your Google account), you'll need to delete it separately. One thing to note is that deleting your account does not delete your videos or channel, just your profile information. You'll need to delete those prior to deleting your account.

The deletion process is pretty straightforward, though it does have a few more steps than are really necessary. Log in to your account and then go to "Manage" from the drop-down menu under your user name. Then click on "Manage Account" and then "Delete Account". It will then ask you why you want to delete your account. Fill that in and then click the "Delete Account" button. YouTube then brings up a window that reminds you that your videos will not be deleted, only your profile. If you've deleted your videos and channel (or opted not to), then click on "Delete Account" one more time. You then have to confirm one more time. After that, try logging into your account again to make sure it's been deleted.

PayPal

Paypal in How To Permanently Delete Your Account on Popular  Websites

Difficulty: 1

Closing a PayPal account is pretty simple. Just log in to your account, and then click on your "Profile" link. From there, click on the "Close Account" link in the "Account Information" column. You'll be prompted to continue from there and then you'll need to click the "Close Account" button.

You'll want to make sure your account is current and that there are no pending transactions, and of course you'll want to transfer the positive balance to your bank account. There are reports that if you delete your PayPal account, it's more difficult to get another one in the future (as in, they require more information of you). Whether this is true or not is unconfirmed.

Why's It So Complicated?

In the case of every service mentioned above, properly deleting your account is a multi-step process. Some sites are even more difficult. It's not a technical issue, obviously, as programming a functionality to let users delete their own accounts is something most competent developers could do before breakfast.

So why do some sites make it so complicated? The answer is user retention. They don't want you to delete your account. The hope is that if you have the account, you'll use it at least occasionally, if for no other reason than curiosity about things you might have missed when you weren't logged in. As soon as you delete that account, though, it's an out-of-site-out-of-mind kind of thing. You're less likely to sign up for another account if you decided you could live without it once.

Account Deletion Remorse

This is one very valid reason to make it more complicated to delete an account: deletion remorse. It's not uncommon for a user to have a bad day, get angry about something going on within a social network, and decide they've had enough and are getting rid of their account.

Of course, what often happens is that a day or two later they realize how much they loved using that social network, and they wish they could get their account back. With account deletion policies like those of Facebook (on which I've witnessed such account deletion remorse first-hand), users can just reactivate their account, and have all of their old friends and information right there. On sites with more immediate deletion policies, that user would likely have to start over entirely.

Should You Use Complicated Account Deletion Processes?

Considering how many major sites out there have complex methods for deleting accounts, should this be industry standard? Should all sites employ these methods to help retain users who can't be bothered to follow a multi-step process? Probably not.

There are a few things to consider when deciding whether you want to make it complicated for a user to delete their account. First of all, if your deletion process is going to be handled by customer service representatives, do you have the manpower to do so? If you suddenly have a thousand members who want to delete their accounts, do you have the resources to handle that?

Do you expect users to regularly delete their accounts just to sign up for a new one a week later? If it's complicated to delete their account, they may never sign up for another one, not wanting to go through the process again.

Inactive accounts can also eat up your system resources. Server space can become an issue, especially on very popular sites (or sites with very low budgets). Plus, it makes maintenance and backups more intensive, since there's more data to deal with. Making it easier for people to delete their accounts if they're not using your service can help relieve that load.

The level of complexity for the account deletion process is something that needs to be considered on a site-by-site basis. In general, the easier the process is, the better; however, it is important to make sure that users may be having a bad day and make a mistake by closing an account and so they will be happy about getting the account back a couple of days after it was closed.

Making the process way too difficult and time-consuming will turn annoyed customers in angry ones, the ones who will be very likely to spread negative word out there, while annoyed users would probably just close the account and move on, and even maybe come back to the service later. In either case, one way to minimize your worries about it, though, is to keep your users happy and conduct your site's business in a transparent and open way.


 
 

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Friday, June 11, 2010

12 Important Financial Concepts You Didn’t Learn in School

 
 

Sent to you by Joe via Google Reader:

 
 

via The Best Article Every day by bspcn on 6/4/10

Written by Stan Reybern

Critics of the public school system have long lamented the lack of personal finance education in our classrooms. As many have pointed out, today's high schools rarely teach even the basics. Consequently, students often graduate high school unable to so much as balance a checkbook or compare two different loans. Yet as embarrassing as this is, our schools also neglect a whole slew of more advanced financial concepts. While some are covered in various college courses, the only group of students likely to have encountered all of them are MBAs. In reality, they apply to everyone, not just business owners. If you are not an MBA or are simply curious to learn about some of the important financial concepts overlooked in school, consider the following.

Probability

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Probability seeks to measure how likely it is that various things will happen and express those odds as a percentage. A coin toss, for instance, has a probability of 50% because it is equally likely that it will flip heads or tails. Banks use probability (albeit in more complicated ways) to determine the odds that borrowers of various creditworthiness will repay their loans and, thus, what interest rate to charge. While many believe that banks charge high or low interest out of "greed" or "favoritism", it is ultimately a total numbers game. If probability shows that borrowers with your characteristics pay on time, you pay less. If it shows the opposite, you pay more. Understanding probability can put such decisions into perspective and empower you to make better ones yourself.

Statistics

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While probability is about predictions, statistics is about measurement. Generally speaking, there are two kinds of statistics: descriptive and inferential. Descriptive statistics simply reflect the inarguable facts of the data. The heights, weights, genders and eye color of a thousand randomly assembled people would be examples of descriptive statistics. Inferential statistics go a step further by attempting to draw conclusions from the descriptive ones. An example of an inferential statistic might be a theory about how "80% of all people living in this area have brown eyes." Statistics, like probability, is used across the economy and shapes billions of financial decisions large and small every single day.

Sunk Costs

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A sunk cost is an amount of money that has already been spent and cannot be recovered. Cars purchased, years spent in careers and portions of meals already consumed are all sunk costs. Unfortunately, because human beings are naturally risk-averse, we are often slow to acknowledge sunk costs and change course. We frequently hear friends or relatives justify staying at jobs they despise because of all the time they've worked there. Others will actually force themselves to choke down disgusting restaurant food to "get their money's worth." But all they are doing is throwing good money after bad by prolonging the original mistake. Instead, true financial rationality demands that you emotionlessly cut your losses as soon as a sunk cost is recognized. Time and money already spent (and which you cannot get back) should not affect what you decide to do next.

Expected Value

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Expected Value is a specific and immensely useful application of probability. In simplest terms, it is an expression of the long-term average odds that something will happen. You get it by taking an outcome and multiplying it by the probability that it will happen. The number you wind up with is the Expected Value of that action. While this might sound like abstruse financial jargon, it is anything but. Everyone who buys lottery tickets, for instance, is either unaware of or ignoring the concept of Expected Value. Based on the calculations just described, forking over $10 for buys you a piece of paper with an Expected Value of $5. Seen from this perspective, buying lottery tickets actually reduces your net worth. An index fund, on the other hand, is an example of something with a positive Expected Value that could rationally be expected to grow your net worth.

Mental Accounting

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Another financial mistake we often make is classifying money into arbitrary but seemingly meaningful categories. We hear investors tell us, for example, what they do with "money they can afford to lose." As kids, many of us probably spoke eagerly about our plans for birthday money that we "weren't expecting anyway." A Washington Post article described a study where 86% of people bought a $10 movie ticket after losing $10 on a train, but only 46% bought a second $10 ticket after losing the original. This is a fallacy known as mental accounting. In all the above examples, people are making apples-to-oranges comparisons out of identical things. There is no dividing line between money that matters and money you can afford to lose, or between money you worked hard for and money you weren't expecting. It is all the same resource: money. Economically speaking, you should make these decisions based solely on Expected Value rather than imaginary categories.

Time Value of Money

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The time value of money states that money today is worth more than money tomorrow. Money already in your possession can be put into investments or savings and earn interest. Investopedia offers an apt example:

Assuming a 5% interest rate, $100 invested today will be worth $105 in one year ($100 multiplied by 1.05). Conversely, $100 received one year from now is only worth $95.24 today ($100 divided by 1.05), assuming a 5% interest rate.

Keep this in mind when someone makes an offer for your house or other property. A seller who offers you "more money later than he can give you today" and tries to make it sound attractive could, in truth, be offering less than today's "smaller" amount. The old saying "get the fast buck, not the last buck" nicely captures the time value of money.

Risk Management

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Astonishing numbers of people have little or no appreciation of true risk management. Mention the risks of any activity and you are likely to hear dismissive responses like "there's risk in everything" or "you could get killed crossing the street." Frankly, this is a lazy and ignorant view of what risk truly is. It is not enough to simply assume that risk is present equally in everything so why bother thinking about it. Each activity entails different types of risks and different probabilities that they will materialize. You need to quantify any serious risks that are encountered. The decision of where to buy a home, for instance, should be made partially based on historical property values and the likelihood and they will rise or fall. For extremely important choices, it might help to construct a formal decision tree that visually displays possible outcomes and their Expected Values.

Leverage

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Borrowing money (also known as leverage) is another common source of confusion among the public. Besides attributing high or low interest rates to greed and favoritism, many people fail to comprehend the basic, underlying mechanics of borrowing. The idea of interest can prove especially confusing. Yet, it is crucial to understand what is actually happening when you borrow money. Take the easy example of a car loan. While your new car might cost, say, $28,000, borrowing the full purchase price costs far more than that. Using a cost of loan calculator, we find that borrowing $28,000 at 6% interest and repaying it over 5 years costs $32,479 when all is said and done.

Compound Interest

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If you've ever wondered why financial experts are always telling people to take advantage of tax-deferred 401(k) and IRA accounts, the mystery is solved. Compound interest is the reason. If you put $10,000 into an index fund earning 6% interest and do nothing, it will be worth $57,434.91 in thirty years. That's because the interest on your original $10,000 is itself earning interest with each passing year. Of course, the returns are even sweeter if you continue putting money in, but the power of compound interest should now be clear. Furthermore, with a Roth IRA, all of this accumulated growth is untouched by income taxes.

Inflation

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You might have heard various analysts and experts claim that some low rate of return (say, 1% or 2%) "doesn't even beat inflation." Inflation refers to a gradual, yearly rise in the prices of everything in the economy. Because the government prints more money each year, it loses its buying power at a rate of between 2%-4% annually. In other words, $500 today can buy more goods and services than it will buy a year or two from now. According to the Heritage Foundation, Social Security provides low or even negative returns to various segments of society because of inflation. When making financial decisions (such as evaluating investment performance or yearly income) you must always determine the inflation-adjusted, or "real" rate of return. Neglecting inflation creates a rosier picture, but is nothing more than an exercise in self-delusion.

Opportunity Cost

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Opportunity cost refers to the value of your foregone options. The opportunity cost of attending college, for instance, might be the income you could earn at a job if you weren't in school. The opportunity cost of going to a party might be a lower grade on the test because you didn't study. Every choice in life, big and small, entails opportunity costs. Nor are they always this obvious. Many "do it yourself" projects are actually a waste of time and/or money when opportunity cost is considered. Let's say it takes you six hours to do your own taxes, during which you cannot work on your business. If six hours working on the business would have produced more than the cost of an accountant, doing it yourself was a waste. To view it any other way is sheer mental accounting. While you did not physically hand money over, the greater sum of business income you sacrificed means you should have.

Risk vs. Reward

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One of the most basic ideas underlying many of these concepts is that risk and reward are positively correlated. There is relatively little payoff involved when an activity is extremely safe. As the old saying goes, "if it were easy, everyone would do it." This is why savings accounts (backed by federal deposit insurance) pay only 1%-2% interest while stocks (which can crash in a heartbeat) routinely pay 5%-10% or more. It is also why working a low-intensity desk job for fifty years is a lot less lucrative than owning an actively managed business. One is relatively sure thing, while the other contains much uncertainty and risk.


 
 

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Monday, May 31, 2010

How Coke and Pepsi Are Using Social Media to Build Their 'Trust Banks'

 
 

Sent to you by Joe via Google Reader:

 
 

via HBR.org by John Sviokla on 5/28/10

Coke and Pepsi are very active in social media, and I think their hard work is helping to build up a bank of trust with their audiences.

As has been widely reported, Pepsi decided not to use its Super Bowl ad budget to try to create a set of iconic commercials. Instead, it used it to launch its "Refresh Everything" campaign in which it asked its "fans" to come up with ideas to "refresh the world" in the categories of health, the planet, art and culture, food and shelter, neighborhoods, and education. Fans submit descriptions of their ideas. Pepsi screens and posts them on the website. Visitors vote on them. Then, after considering the votes, Pepsi selects which ones to fund. Grants ranging from $5,000 to $250,000, and Pepsi plans to spend a total of $15.6 million on the year-long program, which ends next January.

I believe this kind of campaign is a very smart move because in the wild and woolly world of social media, where brands can be skewered overnight, the only true protection is to have a great relationship with the audience at large.

Coca-Cola also has been working in many different ways to use social media to create trusting customer relationships. For example, Coke has the second most popular page on Facebook (after President Obama's) with more than 5 million fans. Coke's Facebook presence was started by Dusty and Michael, an actor and screenwriter from Los Angeles who together had gathered a few hundred thousand fans on their Facebook page dedicated to everything Coke. Instead of trying to wrest control of the effort from them, Coke smartly decided to join them and build on the existing audience.

During this past Super Bowl, Coke partnered with Facebook to inspire fans to send digital gifts to friends and, in return, donated $1 for each gift sent to the Boys & Girls Clubs of America with which Coke has had a 64-year relationship. Coke could have given coupons or other monetary consideration, but it felt that the psychic gratification generated by the donations was a much better way to build relationships in this new medium.

Firms who don't have a strong trust bank risk being skewered by disgruntled customers. I've written about how musician Dave Carroll had his favorite Taylor guitar broken by United Airlines while on a flight from Halifax, Nova Scotia, to Nebraska. His hilarious video about the incident and United's indifference has been viewed more than 8.5 million times and reported widely around the world. I believe part of the reason this video was so popular is that United had very little in its customer-trust bank.

In contrast, when Kevin Smith, the iconic director of the popular movie Clerks, who has more than a million followers on Twitter, was refused a seat on a Southwest Airlines flight, there were many people in the social media sphere who came to Southwest's defense. In my view, that's because Southwest has built a large bank of customer trust.

Given the ubiquitous, uncontrollable, and growing power of social media, all firms should be asking themselves: How deep is our trust bank? How can we improve it?

I'd love to hear what you think companies should do to increase their trust banks.

John Sviokla is vice chairman of Diamond Management & Technology Consultants, Inc. He is a former professor at Harvard Business School in marketing, MIS, and decision sciences.


 
 

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Wednesday, May 26, 2010

After Customer Connection 2010 - why do we need registers?

 
 

Sent to you by Joe via Google Reader:

 
 

via Supply Chain Management by Chandradeep Bandyopadhyay on 4/26/10

In my earlier post, I mentioned I was speaking at Sterling Commerce Customer Connection 2010. Well, the session was well attended and I met quite a few other retailers who were at different stages of their multichannel journey. I heard lots of viewpoints on the future of order management in retail.

One such discussion was with  a person I have known over the past few years and she owned business requirements definition for one of my previous engagements. The key points she raised were "Why is POS required? Why can't we store ALL orders in the same OMS that we store online orders?". What she was saying is that the register is old world. In this world of handhelds and iPads why do we drag the customer all the way to a register?

Sterling introduced a set of new iPhone apps at the event. One of these was for the store sales associate where they can check store inventory on their iPhone. They can check inventory for neighboring stores. Imagine the possibilities! I am based in Seattle, home to some specialty retailers like Nordstrom and REI. In these stores the salespersons often help the customer decide. In Nordstrom the salesperson advises on fit and fashion. In REI, the customer needs advice on the pros and cons of the gear.  Imagine the immersive experience in such a store where the store associate does not need to leave the side of the customer they are assisting. They check their systems, check if they have it online, register the sale while walking around with the customer.
I am sure we can think of a hundred reasons why the registers and a POS are required. But, what if registers never existed? What would we do then? Wouldn't having one OMS for all orders irrespective of channel be the next step?

 
 

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Saturday, May 22, 2010

To user joe.cheeran don't miss 83% discounts. more dramas

(c) Mississippi Tasman. All rights reserved.
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