Shoes are real. Money is an end result.

I’ve tended to devour everything that Peter Drucker wrote or said. One of my favourite Drucker sayings is this one:

No financial man will ever understand business because financial people think a company makes money. A company makes shoes, and no financial man understands that. They think money is real. Shoes are real. Money is an end result.

The first time I saw this particular quote was in an interview that Erick Schonfeld had done with Drucker in Business 2.0, maybe five years ago. And every now and then I’d see little gems from the interview being quoted, but began to get ever-so-slightly frustrated at being unable to find the original piece.

Now I’m a bit like Sean, we still read books, we still read hardcopy magazines, we tear things out, we scribble stuff on the torn-out pages, we squirrel them away. And sometimes we even find them. :-)
And so it came to pass, while clearing my garage, that I found the original October 2001 issue of Business 2.0, The One With The Interview In It. Entire of itself. Unexpurgated, unbowdlerised. [Erick, since your online archives only go back to 2003, may I scan the article in and post it here? Or do you have a link for me to use? I will e-mail you separately]

It’s a fantastic interview. I wish I could link to the whole thing, but instead, have restricted myself to just ten quotes out of the six-hour interview:

  • During the Internet bubble, it was argued that because the internet is important, it must be profitable. That does not follow.
  • The cultural impact of the Internet is far greater than the economic one. The important effect is on the middle classes in these half-developed countries. They don’t see themselves as part of their economy, but as part of the worldwide developed economy. This may be the next development: the emergence of psychologically global middle classes.
  • The customer uses the Internet not to buy a car but to eliminate or reject. Now, when they come to the dealer, they know what they don’t want.
  • Maybe on the Internet you need to be a buyer for your customer, not a seller.
  • The computer is a moron. It can’t handle more than one logical system…..The human mind, on the other hand, can handle quite a few logical systems at the same time.
  • There is a difference between a supplier that sees a quick buck and a supplier that sees a relationship. These things have not changed. Judgment, the computer cannot overcome.
  • To me, management is a practice, and a practitioner needs a practice.
  • You go ahead and do things. You don’t ask for permission because that implies the other fellow can say no. Yes, you risk ending up in jail. You have to take that risk.
  • In fact, I don’t particularly like to read management. I read Shakespeare.
  • What do you want to be remembered for? That I helped a few people accomplish my goals.

Somewhere within the seven pages of interview, Drucker sowed a number of very powerful seeds in my head. About what the internet really was. About the impact on the global middle class. About changes in marketing and in selling, about intention and recommendation. About relationships and judgment and empowerment and vulnerability and risk. About business. About life.

Thank you Peter Drucker.

A sign of the times

Clarence Fisher alerted me to this:

A version of David Weinberger’s Small Pieces Loosely Joined for children. What a wonderful idea. [Don’t worry, David, I won’t shanghai you into signing this one as well!]

And it got me thinking.

I will know that something significant has happened when the reverse takes place. When I see books published on blogs and wikis and chat and social networks, explicitly targeting the over 65s or something like that.

Or should I make that the over 25s? :-)

Continuing musings on nurture versus nature

Take a look at this video on YouTube, of a four-year-old playing drums. [Thanks to David Peskowitz at Boing Boing for the heads-up].

If you feel like it, search for four-year-old+drumming on YouTube, and see how many different hits you get.

Many people may use things like this to propagate a “nature wins” argument. I’m doing the opposite.

Everyone needs role models. Even four-year-olds. Especially four-year-olds. They need to see the Art of the Possible.

Until things like YouTube came along, the search and transmission costs for these disaggregated role models was too high. But now we have liftoff.

Just a thought.

Dreaming of Second Life and enterprise architecture

I haven’t really thought this through, but then why blog about certainties? That’s how you get dogmatic.
My first thoughts about this date back to Google Maps and Google Earth. All I was doing then was luxuriating in the sheer power of the visualisation tools, and beginning to think that I wanted something similar for enterprise architecture.

This wasn’t some massive theoretical exercise for enterprise architectures in general. I wanted to use tools like those stated above very specifically. Use them to visualise (and make visual for others) the systems and applications architecture for a specific enterprise.

Over the last year or so, these thoughts have grown wild and sprouted all over the place. I liked what I saw in people tagging things on Google Earth. I became fascinated with what was happening in Second Life, and in virtual worlds in general.

Always believing that virtual worlds were about learning, about teaching, about applying what was learnt. About finding better ways of doing things.
I began to see the entire applications and infrastructure landscape for a given enterprise as a location on Second Life.  I began to see similar locations for competitors and for collaborators, for the market participants and the supply chain partners. Then I saw locations for those things that were truly commoditised, so commoditised that they could be represented as (guess what?) common land on Second Life. Common land with no fencing, no barriers, nothing in the way.

  • [An aside. I just love the etymology of “by hook or by crook”. The phrase does not really translate to “by fair means or foul”, it should be rendered as “by legal means only”. The origin of the phrase relates to access to firewood on common land. You could legitimately chop down (for firewood) any branches of a tree (on common land) which you could pull down using a shepherd’s hook or crook.]

Where was I? Oh yes, Second Life and its use in enterprises, to visualise, monitor, manage, repair and sustain the enterprise applications landscape.

I was still missing something, something that needed to look like an Instant Messaging “channel” within the enterprise, where people could discuss applications issues, and from where they could, if needed, “teleport” themselves to the application in question.

So you can imagine how I felt when I saw this. BlogHUD. Take a look, see what you think. And let me know. Ideas are for free where I come from. If you want to do something about it, go ahead. Just let me know someday.
In the meantime I shall continue dreaming.

Definitely not PC….

….Forum, that is. Not any more.
Esther confirms what the market has been whispering.

I hadn’t been able too make that many PC Forums, despite having booked for quite a few. It wasn’t just a conference, it was a rite of passage for the industry. So farewell PC Forum; and a big thank you from me to Esther and the team.

Some of you may have seen Chris Messina’s recent post about conferences and gender diversity; others may have followed the hullabaloo about Office 2.0 in a similar context. Now I don’t believe that it was ever done from a viewpoint of political correctness or anything as orchestrated as that, but it’s worth taking a look at the speaker lists at past PC Forums. I think it’s a worthwhile soft indicator as to how things changed over the years, in terms of real diversity in all kinds of things: age, culture, gender, discipline, perspective, you-name-it.

One thing I will be doing next year is attending Flight School, especially now that I know the dates (June 21 and 22). I’ve been lucky enough to make the first two. Why? I don’t know how to fly. I don’t make enough money to rent a plane, much less buy one. In fact I don’t even know how to drive. So why would I go to Flight School?

Simple. Passenger aviation shares a number of characteristics with other markets, characteristics that make it a very interesting petri dish:

  • A fundamentally bankrupt business model
  • A model architected on hub and spoke rather than distributed
  • An oligopolistic market
  • The potential for significant impact on environmental issues
  • Regulatory overflows and conflicts all over the place
  • State interventions and protections all over the place
  • Pretend-competition as a result
  • Outdated concepts of information technology and its value
  • Tired and frustrated customers held to ransom

The list is the same for many other industry segments or markets. Financial services. Telecommunications. Healthcare. Aspects of welfare and education. Even government.

But there is hope, as we learn more about P2P models, more effective forms of communications, more affordable infrastructures, safer ways of doing things, better ways of doing things.

There is hope, as we find that this time around, everyone is involved. Almost everyone. As with any other market the elephant that isn’t in the room is the incumbent.

There is hope, as we find that this time around, issues are global, as are their solutions.

So I will be at Flight School. To learn about many markets.