What opportunities does the snow offer?

It has been a cold weekend here in London. My team managed to plan around the snowfall successfully. Adapting to things we have little control over is one of my mantras and you will have gathered from a couple of posts last week, that my challenge is often to continually adapt, improve and grow. I have sympathy for those forced to use roads that have become blocked or treacherous. The public transport system has many challenges when it snows and whilst these are great frustrations to many, one has to consider that here in Britain we really don’t have enough “adverse weather conditions” to make the significant investment to cope a little better with the 2% of working time that is threatened. Frankly the resources could be used more effectively elsewhere. However, the snow does provide an opportunity to reflect on working patterns and the way we live our day-to-day lives.

Technology – touch screen is so last year

Perhaps you have been contemplating the alternatives to commuting to an office each day, by use of some clever technology that doesn’t (mainly) rely on good weather. Certainly when life becomes more difficult, we tend to reach for alternatives. Technology can offer some solutions, however the main disadvantage of technology is that it constantly evolves. If you have a smart-phone, an ipad or tablet…well, you will be familiar with a touch screen and recognise that perhaps you don’t always need a mouse and keyboard. Sadly this is now rather old hat. Touch screen is so last year. Make way for motion detection. Those with a games console from the last few years will understand this a little better. Have a look at the video below. This is the next thing that your home or office technology will demand. The knock on effects are yet to be understood, but I imagine web designers will need to be considering the impact as will anyone involved in using a computer to engage or interact, which will be most of us, but particularly those running a business.

Limited by a lack of imagination?

Now clearly you cannot motion every task – certainly the act of shovelling snow is unlikely to be directed from your computer with the wave of a hand…but then again, perhaps I’m not being imaginative enough – we are about to get an influx of remote control devices, primarily used for CCTV purposes – perhaps we could have a fleet of remote control helicopters to grit our roads and streets too. The NASA Rover explored Mars, yet we have a road network of potholes. I’m sure someone can put these devices together. The successful businesses of the future (and therefore investments) are those that identify problems and provide solutions using technology to its full advantage.

What Can We Learn from HMV?

Adapt or perish

We have seen the demise of HMV and Jessops in the last few days. OK, administrators may prolong the agony, but these are companies that are deeply flawed for 2013 with their current business model. Before we all wag a finger and say “well you could see that one coming”… well ok then.. but the real lesson is that plans need to be reviewed because the world changes. So what can we learn from HMV and others like them?

Certain of what you do?

Change is constant. If you run a business and you do not adapt to the marketplace (or create a new market) your days are certainly numbered. Technology as we all know has changed what is possible. It has happened to retailing, but it will (and does already) happen in most aspects of life. Technology leverages effort and the rewards for getting this right can be enormous. Getting technology wrong or failing to understand its implications can lead to ruin, just ask Kodak, Polaroid, Jessops, HMV… sense a theme? yet it isn’t just the obvious. Many are now viewing and trying goods on the high street, but then buying them online. Admittedly this is easier when products are identical, but of course the web does also help compare. Where I believe businesses like HMV and Kodak went wrong was not only to fail to identify the change quickly enough, but also to fail to understand what they do. Eh? Kodak make film, cameras, inks right… yes, but no. Kodak captured or recorded images, memories, moments – precisely how they did so was always going to alter. HMV sold records… well tapes, CDs…hold on calendars, DVDs, videos etc etc. What HMV actually sell is entertainment – sound and image, precisely how is almost a red herring.

The technology leverage

I cannot think of an example, where technology cannot alter the delivery of what is done. Certainly in my own field of financial services – technology has made a massive difference. When I started, policy documents were like ancient scrolls, eventually making way for typed documents yet today many are electronic documents. Still the same essential thing… but not if you are a copperplate writer. Financial planning is not about providing financial products. Anyone want one? no, of course not. Financial planning is about solving the problem of maintaining or improving your lifestyle. So whilst there are changes in IFA land, many “advisers” still sell products thinking that this is the solution… you know the story… I want to retire at 65… oh, here’s a pension plan for you then. The truth is that pension plans are just savings plans with tax relief. They might be very good at building a pot of money, but then again, this is only one way of many options available. That’s why I believe that what I do is different. I focus on helping clients to think about their lifestyle and offer thoughts and questions about it and how it might alter if certain things happen, some obvious and some highly personal and unique. I’m sure that one day a computer will be able to perform most of my work for the mass market, but I very much doubt that it will pick up the body language, tone and expressions in a way that is meaningful. In other words the essence of being a person not a robot. Mind you, I’m sure some would prefer that robots did. I doubt that you are one of them.