Monday, February 23, 2009

The CEO Project: How the Social Web is Changing Entrepreneurship

Startup Riot 2009

I was at Atlanta’s Startup Riot last week to test out an assumption I have about the social web’s impact on young entrepreneurs.  I am calling my quest the CEO project.

More than 60 startup companies were given 3 minutes to make their pitch to investors, entrepreneurs, job seekers and companies seeking M&A opportunties. The room was packed.

Jason Ardell of FeedScrub

Jason Ardell was with one of the companies that presented.  He graduated from Georgia Tech in 2005. His company Feedscrub (blog) filters your news feeds to deliver the most relevant posts.

So were CEOs Mathew Sweezey and Duncan Freemen. Matthew’s company MechanixLoop uses the web to address consumer frustration with auto repair, and Duncan’s company Band Metrics (blog) is working to create web analytics for the music industry.

The social web is integral to their businesses.  It’s lowering barriers to entry.  It’s making it possible to cost effectively offer whole new services and draft off popular products like the iPhone, social networks like Facebook and search engines like Google.  But the social web also is fostering a state of mind and a whole new way of approaching business relationships.

In my mind, successful young CEOs embody that mindset.  Living on and off the social web, they:

  • lack a fear of intimacy - They find sharing personal information on blogs and social networks like Facebook an asset in building business relationships.
  • embrace Informality - It’s not about wardrobe. They don’t stand on formal, closed relationships. They will reach out to anyone who will listen or can help.
  • understand asynchronous dialog – They gather information and make connections one to one or one to many.  They are comfortable with platforms like Twitter where strands of ideas are linked, mashed, shared and sampled in real and non real time.
  • collaborate – Yes they protect proprietary information and remain stealth until ready, but they are not afraid to collaborate and share the wealth.
Enter ShotPut Ventures


David Cummings hopes to fill this room

with young Startups

Take David Cummings. David knows a thing or two about young CEOs.  He is one and very successful as his panoramic view of Atlanta confirms. His company Hannon Hill Corporation provides strategic web content management solutions. 

He is part of a group of very successful CEOs (Jeff Hilimire, Allen Graber, Suleman Ali, Wayt King, Mitch Free, Sanjay Parekh, Dave Williams and Dave Wright) who recently formed Shotput Ventures (blog), a technology startup accelerator fund that focuses on CEOs of capital-light web services companies and assists in the conception phase.

They plan to invest $5,000 per team and $5,000 per founder as part of a coordinated program that will have eight companies in the summer of 2009 in Atlanta.

The founders of Shotput Ventures are not about retreating to personal islands after achieving success.  They are about inclusion, not exclusion, heterogeneity not homogeneity, merit not privilege.  They are about giving back to the community not perpetuating old boy networks.

Even their website reflects that crowdsourcing spirit.  The logo came from LogoBee and the site was from CrowdSPRING where they received bids and posting their project online.  Price tag: a little over $1,000.

Armed with the social web, a new generation of CEOs here in Atlanta is rejecting cubicle farms and corporate ladders.  Instead, they are bringing the Web’s open platform to the real world.   They are creating informal support systems, taking advantage of community building efforts like Startup Riot and Scott Burkett’s Capital Lounge and mentoring programs like Shotput Ventures.

Especially in an era of corporate downsizing, I anticipate a growing number of young people will attempt the entrepreneurship route.  While history indicates that most will fail, the social web is giving a new generation of CEOs a fighting chance to succeed.

Let me get back to you.

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Thursday, February 19, 2009

Gaming and Hi-Tech: So Much in Common, So Little Overlap

Last night, I attended the Atlanta Game Development Meetup Group up Highway 400 in suburban North Atlanta at the Computer ArenA - an arcade for gamers. A handul of game developers and aspiring game developers were on hand — networking, sharing ideas, and helping build Atlanta’s gaming community.

I met Matt Schwartz, a content designer for FusionFall – Cartoon Network’s recently launched browser-based kids’ MMOG.  I also met Bobby Blackwolf, host of The Bobby Blackwolf Show- a weekly Internet radio and podcast discussing the latest news in video games. I also caught up with Clinton Lowe, president of the Georgia Game Developers Association and talked about the SIEGE conference.

Today I attend a different type of community - Startup Riot a forum for investors (institutional and corporate VCs and angels), entrepreneurs, individuals looking for startup jobs, and large companies looking for partnerships and/or M&A opportunities.  Hoping as I may, I would be very surprised if any gamers present — which is surprising given the growth in gaming opportunities and gaming’s increasing reliance on the social web.  UPDATE - I AM GLAD TO REPORT THAT TWO COMPANIES PRESENTED TODAY FROM THE GAMING WORLD — REINVENTED TECHNOLOGIES AND GOOD EGG STUDIOS/ELF ISLAND. IT’S A START.

In time, perhaps WE WILL SEE MORE PRESENTERS AND these two technology communities will commingle creating a much more vibrant Web community here in Atlanta.

Let me get back to you.

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Monday, February 16, 2009

State of the A.R.T - The Three Pillars of Blended Communication

I recently launched my website and to my relief, I have gotten some positive reactions on my approach to PR.  It’s based on a blend of Authenticity, Relationships and Technology.  Together they form the three pillars of successful state of the A.R.T. communication.

I confess a little self promotion here, but I welcome your feedback — good and bad.

State of the A.R.T. Communication

Authenticity. Whether it’s a formal press release or an informal blog posting, customers want “authenticity” when engaging with you. Finding your authentic voice requires an assessment of your company’s underlying culture, values and comfort level with genuine, decentralized conversations across multiple communications channels.

Relationships. PR is no longer just media relations. It’s building relationships with bloggers, existing and potential customers, vendors, partners, investors and employees who, in turn, can carry your message for you. It’s critical to do an inventory of their online “conversations” to measure their attitudes, level of influence and capacity for engagement.

Technology. The universe of tools and technologies keeps expanding. The difference between success and failure in reaching your targeted audience often depends on whether and when to use the tools of new or traditional media or both. Sometimes your outreach may require a simple press release and other times a blog or social network. Either way, it is essential to understand the strengths and weaknesses of the tools at your disposal.

With the aid of technology, we are better able to discover our authentic voice to build relationships and engage various stakeholders.  Pull that off and you have state of the A.R.T. communication.  I believe it is the job of PR professionals to help paint that picture. 

Let me get back to you.

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Wednesday, February 11, 2009

Video Game Global Agenda Underscores Value of New Media


I have been kicking around the idea of going to the Game Developers Conference in San Francisco especially as I try to help raise the visibility for Georgia Game Developers Association and the SIEGE conference.  Gaming has gotten so big that it is difficult to ignore its impact on marketing.

To me gaming is social media on steroids.  It underscores the importance of community, word of mouth and fan culture in driving awareness and attracting subscribers.


Hi-Rez Studios Designers


That’s why Hi-Rez Studios caught my attention.  They are an independent gaming company here in North Atlanta trying to make it big with their massively multiplayer online (MMO) game Global Agenda.  Expected to go beta in the second quarter of this year, Global Agenda features a spy-fi world of advanced technology and player-driven conflict.   

The responsibility of marketing Global Agenda falls primarily in the hands of Public Relations Specialist Michal Adam and Vice President, Game Operations Stew Chisam.  Their task is not easy.  Success rates are low.  Development costs are high and so is the failure rate for most MMOs.

Once more, games like any form of entertainment are a tough sell. They must compete for people’s free time.  The challenge is to be a person’s first or perhaps second choice for fun.  But as Stew points out, “There is a heavy reward for being the best.”

So it’s interesting to see how they are using traditional and new media in their marketing strategy.

Traditional Media

Timing and Opportunities
Launching a new game is never easy.  It’s important to manage expectations. Hi-Rez Studios made the decision to stay under the radar for the first three years.

Getting reporters to write, post and link is hard enough — in Atlanta it’s even harder; we are not yet a gaming hub and have to work harder - kind of like Avis Car Rental.  Where I have generally found tech reporters wanting plenty of lead-time, Michal notes that game journalists tend to stay away from pitches that are too far out in front or release dates that are not yet determined.  That makes building buzz more difficult.  

Sometimes you need to be opportunistic like when Hi-Rez Studios offered to insert a local DJ’s voice and body into the game after learning the DJ from Q100 had made a New Year’s resolution to be in a video game.  The result – lots of air time and visibility outside the gaming community.

New Media

Traditional media has its limits.  That’s where new media and community building come in.

Fans Base
A Blessing and a Curse:  Effective gaming strategy needs fans to help establish a brand. They drive buzz. They are web savvy, loyal, and willingly spread the word for you.  They are also highly opinionated and won’t hesitate to criticize – openly and loudly. The same fans that make a game a mega hit, can also sink it.

Using fans to help disseminate is challenging; you want to keep up momentum and feed fan hunger for information. But you need to move slowly to avoid disappointment.

Recruitment
Start Small:  Hi-Rez Studios is currently running an Alpha test for about 1000 gamers.  Before going public they wanted to give a handful of gamers a chance to look under the hood.  They reached out to gamers that are part of Clans, engage in Lans parties and play similar games like Tabula Rasa.

But there is a fine line in engaging like-minded gamers.  It helps that gamers have affinity toward the game, but at the same time you open yourself to comparisons as this discussion on the MMORPG gaming news site shows.

Management and Rewards
Management over Support: A well-run community can support itself. It’s more about management not support.  As the community grows, it gets formalized.  There are do and don’ts, but the guiding principle for Hi-Rez Studios is “we are here to have fun; don’t spoil it.”  Since trash talking is part of the fun, they won’t police everything.  They want players to stay long enough to become part of the community.

Sustaining Interest: Recognition is huge.  Consequently, regular contests are held.  One winner got his face on a character.  Players can also win pieces of flair and rare accessories.   

Measurement
ROI: In a subscriber based game, the goal is determining lifetime value based on such metrics as cost per user, number of users sustained, and revenue per user.

Short and long term success: Short term success is understanding online behaviors such as how long and often members are online:  Long term success is growing a healthy community of the right size and level of satisfaction. 

Over the long haul, Hi-Rez Studios hopes to be more than a one hit wonder.  It will take 4-7 years to justify the cost. This is an important year, but it seems to me that beyond the game itself, the key to their success will be based on how well they sustain their community.  And the lessons from the gaming industry can clearly help non gamers with the care and feeding of their social networks.

Let me get back to you.

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Monday, February 9, 2009

New Media Accountability – Lessons from SoCon09

I was at SoCon09 this past Saturday at Kennesaw State University.  Over 300 people were there to attend a gathering of the social media community in Atlanta.  And congratulations to one of the organizers Leonard Witt for being awarded a grant.

It’s worth noting some differences from last year’s post.  Atlanta is no longer the most wired city in the country according to Forbes Magazine.  SoCon09 presenter and sponsor Jeff Haynie  can no longer be a poster child for Altanta’s technology elite. Good for him, his ship came in. Appcelerator received an infusion of capital and relocated to Mountain View, California.  Even still, the social media community continues to build momentum.  There are more sources for start up funding, and there is a sense of optimism even in a deep recession.

It was great to reconnect with social media guru Chris Carfi who made a presentation about markets and technology.  I also met folks like Lyle Harris, a former AJC editorial writer who has started the Georgia Online News Service (GONSO)  to aggregate hyper local content (think AP meets crowdsourcing), Selah Abrams, a production engineer from Turner Studios, Lisa Campbell, an entrepreneur and WSB-Radio anchor, Jamie Gumbrecht, an Atlanta Journal Constitution lifestyle reporter, founder of Elemental Interactive James Harris and Stephanie Roberts who heads up LittlePurpleCow Productions.


James Andrews

I also caught up with James Andrews, a Ketchum PR executive after his presentation on social media and PR.

He recently endured a rocky time over a Twitter post he did about Memphis.  As he realized, Twitter is the new sound bite (I was not the first to say this), and Twitter bit him.  He was not the first PR person to be bitten, and will not be the last. 

I don’t need to rehash the details.  His lessons from the Twitter firestorm – the sheer velocity at which news spreads, the power of hidden agendas to drive controversy and the importance of context and accountability.

On the Importance of Accountability


Accountability was in fact my rallying cry for the day.  Check out the Atlanta Journal Constitution
article.

It began during a presentation by Andrew Wilson of Atlanta.net.  He directs all online initiatives of the Atlanta Convention & Visitors Bureau.  His topic was Atlanta’s Niche in the Social Media Universe. 

Now I am a big advocate for building Atlanta’s social media presence. I sympathize with him and the challenges of building online community and social media adoption here, but I took exception with the definition of social media he used.  In citing Wikipedia, he said that a key difference between social media and industrial media is the lack of accountability. 

I have heard that distinction before, but I wasn’t prepared to take it at face value. My arm darted up in true unconference fashion. 

For those who know me, I am passionate, but respectful and opt for a low-key approach most times.  I was in the room filled with passionate online advocates who very much value accountability.  You may not get fired for deception or inflammatory remarks, but incurring the wrath of the blogosphere will lead to loss of credibility and irrelevance.

In my book, accountability is:

  • Having no hidden agendas
  • Understanding your audience
  • Using an honest voice
  • Putting your posts in context
  • Being prepared to back up your claims
  • Being prepared to live with consequences

In the world of social media, all you really have is your reputation.  Without accountability, you don’t have community, and without community, social media is pointless.  If James’s experience tells us anything, the blogosphere can be very humbling but also forgiving for those who abide by its rules.

Let me get back to you.

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