Why Amazon wins | Innovate the core, innovate to transform

Take a look at your organization’s innovation projects. Are you strategically balancing your efforts between the core business and future growth areas?

In advising companies about innovation, an area I stress is the value of consciously pursuing both little and BIG innovation. Often, companies pursuing innovation can be categorized as either:

  • Seeking small innovations such as operational improvements and existing product enhancements
  • Swinging for the fences to find unique, breakthrough ideas in new markets

In both cases, such myopia limits the value of innovation, focusing too low (incrementalism) or too high (core business withers from neglect). Companies do well to take a holistic look at their innovation efforts, understanding their portfolio of initiatives in the context of both small and big projects.

To understand the value of this approach, let’s examine Amazon’s innovation portfolio. Why? Their efforts are visible, and they’ve got the results to back up their innovation approach:

Amazon stock vs S&P 500

Amazon’s stock performance is no fluke. They’ve done a fabulous job mixing their innovation efforts. They have significantly improved their core, while moving into adjacent and unfamiliar ground.

 

Segmenting Innovation Efforts

To begin with, it’s useful to divide innovation efforts according to their level of familiarity:

Segmenting innovation efforts by familiarity

 

Why use familiarity as the basis of segmenting? Because familiarity manifests itself in two ways when it comes to innovation:

Institutional advantage: Companies are awash in information about current operations. Product or service features, with their strengths and weaknesses, are understood. How they’re delivered is understood. What customers like and what they want to see improved…are understood. This data rich environment makes it easier to focus on what is done today.

Personal advantage: Expertise in a given realm is why you hold your position. Executing on various initiatives related to current operations is how you’re assessed. Keeping your focus on that is a natural outcome, but one that can stymie interest in exploring new areas.

Moving outside the realm of familiarity is tough. Yet that’s where growth for the company will be found. So it takes a conscious effort to step outside the world we know, assess opportunities and try new things. Much of the organization is not geared to do this.

The matrix above characterizes innovation efforts as three types:

  1. Sustain: Innovations that maintain and even grow the core business. While this type of innovation is often dismissed as inconsequential, that;s not true at all. We’ll see that in a moment with amazon.
  2. Expand: Innovations that are adjacent to an organization’s current operations. That can be extending current offerings into new markets, or introducing new products and services to existing customers.
  3. Transform: Innovations here have the effect of changing the identity of the company. To be successful in these new markets, the new offerings are substantially better at satisfying existing jobs-to-be-done for customers.

To show the diversity and power of innovations representing each of these types, let’s look at how Amazon’s innovation have fit this model.

 

Amazon Innovations by Type

One of the more valuable aspects of the Amazon story is that it highlights the value of innovating for core operations as well as entering new arenas. The matrix below maps several Amazon innovations against the different types:

Amazon innovation - segmented by levels of familiarity

 

Sustain

Think sustaining innovation can’t make a difference? Then check out Amazon’s results here.

Collaborative filtering recommendations are those suggested products that display when you’re viewing an item. Collaborative filtering is based on product categories and “people who bought this also bought that”. At one point in Amazon’s history, its recommendation engine was responsible for 35% of company revenues.

1-click checkout is Amazon’s patented innovation that dramatically reduce friction in the buying process. With a single click, your purchase is on its way. This is a significant improvement over the multi-field (even multi-page) process that other sites provided to purchase.

Drone delivery is a futuristic idea: have drones deliver goods within 30 minutes. Bypass the traffic on the roads. Even if it is of dubious potential, it’s a good example where sustaining innovations can be “radical” in the popular sense.

Prime originated as a way for customers to pay a single price for all-you-can-buy shipping. Customers were already paying for shipping on a per order basis; Prime made the shipping a single price, no matter how many transactions. As a sustaining innovation, it has delivered impressive results. Prime members are estimated to spend $1,500 per year vs. $625 for non-Prime customers.

Expand

The two flavors of expansion innovation vary in emphasis: new products and services vs. new customers. But they both are cases of extending what the company already does. The familiarity measure is less, but still meaningful.

Affiliate marketing is a normal web practice now. But Amazon was an early innovator here, although not the first. Through affiliate marketing, Amazon reached new customers with its existing offerings.

Kindle is Amazon’s reading tablet. People who own Kindles download the digital books, and are able to search text and annotate passages. Kindle was estimated to account for 10% of Amazon’s sales in 2012.

Amazon Fresh is a home delivery service for groceries. More than a decade after the failure of Webvan, Amazon is seeking to deliver a new category to customers: perishable groceries. This extends the offerings of Amazon’s existing retail selection, for both existing and new customers.

Transform

Amazon’s growth has included investing in transformative innovation, beyond its initial core business. The risk here is much higher, as the company moves beyond the familiarity of its core business and takes on new competitors.

Amazon Web Services offers cloud computing services to companies. Its origins come out of Amazon’s work to optimize its internal cloud operations. Jeff Bezos decided to turn that work into a new offering. Introduced in 2006, AWS has been a tremendous success. In the 2nd quarter of 2015, AWS generated a profit of $391 million on $1.82 billion in revenue. Even the super secret CIA is using AWS.

Prime is now Amazon’s vehicle for delivering original content programming. While its roots were in making buying products easier, Prime has become a wide range of offers. One of these is Amazon’s entry into the world of original programming, Amazon Studios. Its shows include Alpha House, Betas and Bosch. Oh, and these new content customers are converting to full Prime shoppers.

Fire Phone was Amazon’s entry into the smart phone market, taking on Apple’s iPhone, Samsung’s mobile phones and others. Fire Phone’s notable feature was its 3-D “Dynamic Perspective”. However, it failed to offer anything that delivered better outcomes on people’s jobs-to-be-done. Amazon has stopped its work on the Fire Phone.

 

Amazon: What a Strategic Innovation Portfolio Looks Like

Amazon provides a powerful example of how companies should approach their innovation portfolios. Despite claims that sustaining innovations are a recipe for mediocrity, Amazon has shown there’s plenty of value innovating on your core. What aids Amazon in this case is a clear mission, a sense of what they want to accomplish and a CEO who continually acts on it. Lack of such clarity and leadership is the cause of innovation failure for other companies; it’s not “getting bogged down in incremental innovation”. Note that Google also dedicates significant innovation effort towards its core business.

In the Transform quadrant, Amazon takes on bigger risks. This is the harder area. AWS has turned out to be a hit. Fire Phone was a failure. But the key is (i) understanding the risks of that quadrant; and (ii) making sure efforts there are part of a larger portfolio approach across different levels of familiarity.

What’s the right mix? That will vary by company and the health of its core business. The key is to understand why you’re making the innovation investments you are.

I’m @bhc3 on Twitter.

Gmail offers surprising innovation lessons for the Fortune 500

If you’re familiar with the story of Gmail, you know – for a fact – that it was a 20% time employee project by Paul Buchheit. A little bottom-up experimentation that grew into something big.

Surprise! That story is wrong.

It was a desire by Google, the company, to offer its own email. From Harry McCracken’s great piece How Gmail Happened: The Inside Story of its Launch 10 Years Ago:

Gmail is often given as a shining example of the fruits of Google’s 20 percent time, its legendary policy of allowing engineers to divvy off part of their work hours for personal projects. Paul Buchheit, Gmail’s creator, disabused me of this notion. From the very beginning, “it was an official charge,” he says. “I was supposed to build an email thing.”

Gmail’s creation has more in common with innovation inside large enterprises than it does with the start-up world. Read on if you recognize these:

  1. Job-to-be-done thinking
  2. Reports of the death of company innovation are greatly exaggerated
  3. Corporate antibodies are everywhere
  4. Senior executive support
  5. Big Innovation takes time

Job-to-be-done thinking

Yahoo email screenshot

Image via Variable GHZ, “Why Yahoo Mail is Still an Epic Catastrophe

Anyone remember life before Gmail? We had low storage limits. ‘OK’ search. Poor spam control. Yahoo, one of the dominant players at the time, pursued the freemium strategy that required paying for more storage and better controls. Which isn’t unheard of, mind you.

It’s just…

Think of the core job-to-be-done: When I want to update others, I want to send and receive communications. Some key job tasks that define that job include:

  • Easily send pictures to others
  • Read emails from real people and organizations that I care about
  • Find old emails when I need them
  • Expand my usage of email economically

Yahoo, Hotmail, AOL were fine as far as they went, but they each were challenged on these key job tasks. Back when I had a Yahoo email, I remember the spam being awful and it seemed impossible to control.

Google looked at the offerings in the market, and recognized an opportunity to better satisfy people’s expectations for these important job tasks. Larger size limits, stellar spam control, excellent search and ongoing improvements through Gmail Labs.

Lesson: ABI (Always Be Improving) on the customers’ jobs-to-be-done. Think of the entire job flow and determine which areas are ripe for a better service and experience. Big companies can too easily focus on executing what they have rather than thinking about customers need. 

Reports of the death of company innovation are greatly exaggerated

Image via Family Life Resources

Somewhere along the line, a narrative has emerged that pretty much every big company cannot innovate its way out of a bag. Admittedly, the increasingly rapid turnover of the S&P 500 and the fast rise and decline of companies fuels this narrative. But it’s glib to say companies just don’t do it.

Google’s 20% time is espoused as the antidote to this issue. Middle management stifling innovation? Let everyone experiment on their own. But Gmail wasn’t a 20% time project. It was actually something planned and resourced for development for the organization at large.

This is an important point. If companies set their mind to innovate in an area, people will contribute and provide fantastic ways to get there. Tony Vengrove advised on a key element for success here:  “A compelling vision statement describes what the company wants to become in the future. It not only needs to inspire but ideally it should inform the innovation agenda.”

Lesson: Innovation is not dead inside companies. It does require leadership to set a vision that employees can focus on.  

Corporate antibodies are everywhere

Google is rightly perceived as one of the most innovative companies on the planet. Given that, one might assume that the innovation wheels are well greased there. But I was struck by these quotes from McCracken’s story about the birth of Gmail:

“A lot of people thought it was a very bad idea, from both a product and a strategic standpoint,” says Buchheit of his email project. “The concern was this didn’t have anything to do with web search. Some were also concerned that this would cause other companies such as Microsoft to kill us.”

Within Google, Gmail was also regarded as a huge, improbable deal. It was in the works for nearly three years before it reached consumers; during that time, skeptical Googlers ripped into the concept on multiple grounds, from the technical to the philosophical. It’s not hard to envision an alternate universe in which the effort fell apart along the way, or at least resulted in something a whole lot less interesting.

Inquisitor vs. Corporate AntibodyIn those two quotes, you see critiques that aren’t really about specific elements of Gmail, the concept.

In Four Personality Types that Determine Innovation Success or Failure, a distinction is drawn between Inquisitors, who reflect thoughtfully on issues facing an idea, and Corporate Antibodies, who just want the idea dead. Here are hypothetical responses to Gmail by the two different personality types:

Inquisitor: “Won’t we spook people when they see ads related to the email they’re reading?”

Corporate Antibody: “Email has become a commodity. There are other products we should be building.”

Lesson: Corporate antibodies will always be with us. Recognize legitimate probing for faults versus efforts to undermine the idea in total. Spend time figuring out how to get around Corporate Antibodies, not appeasing them.

Senior Executive Support

Senior executives matter in innovation

In a land of radical transparency and holacracy, the traditional top-level support needed for initiatives is a thing of the past. Alas, we are not in that land. For the 99.9% of people who live with today’s reality, top-down support continues to be the effective way things get done.

It does put pressure on top executives then. They are held accountable by the C-suite, the Board and shareholders. Already in this post, senior executives are called on to ensure innovation moves forward in two different ways.

Set the innovation course: Leadership – be it in business, community, military – has a role in establishing the objectives for people. Indeed, set objectives and get out of the way. In Gmail’s case, Larry Page and Sergey Brin saw a future that extended beyond just search. Paul Buchheit was charged to figure out what a Google email app would look like.

Remove obstacles to innovation: We saw previously that Corporate Antibodies are alive and well. But they didn’t stop Gmail’s progress. From McCracken’s article: “Fortunately, the doubters didn’t include Google’s founders. ‘Larry [Page] and Sergey [Brin] were always supportive,’ Buchheit says. ‘A lot of other people were much less supportive.’ “

Lesson: If senior management isn’t paying attention to innovation, it’s a safe bet no one in the company is either. Employees respond to the agenda set by executives. Organic growth comes from a clear focus that involves executives and employees.

Big Innovation takes time

One of my favorite perspectives on innovation comes from Jeff Bezos. In an interview on Harvard Business Review:

ADI IGNATIUS: Jeff, you’ve said that you like to plant seeds that may take seven years to bear fruit. Doesn’t that mean you’ll lose some battles along the way to companies that have a more conventional two or three-year outlook?

JEFF BEZOS: Well, maybe so, but I think some of the things that we have undertaken I think could not be done in two to three years. And so, basically if we needed to see meaningful financial results in two to three years, some of the most meaningful things we’ve done we would never have even started. Things like Kindle, things like Amazon Web Services, Amazon Prime. The list of such things is long at Amazon.

2014 2019Note that he’s referencing Big Innovation. Concepts that are market changers. There are plenty of opportunities for small-ball innovation (or improvements). But for the really big stuff, executives need to back away from the notion that it can be done in one year.

This was seen with Gmail as well. It was in the works for three years before it was launched to consumers. Continual effort was applied to the product features, the user experience, the business model and the infrastructure to support it. During this time, the project was assailed internally, but as noted previously, senior management supported its ongoing development. Similar to the way Bezos sticks with groundbreaking projects for the long term.

Lesson: Senior management must recognize the magnitude of the innovation it seeks and commit the right time horizon, resources and support to it. This applies for small ball innovation and Big Innovation.

Google, of course is now a HUGE company, on par with the biggest in the world. Its Gmail experience provides valuable lessons for Fortune 500 firms seeking to innovate.

I’m @bhc3 on Twitter, and I’m a Senior Consultant with HYPE Innovation.

Is Google+ More Facebook or More Twitter? Yes

Quick, what existing social network is Google+ most likely to displace in terms of people’s time?

Another Try by Google to Take On Facebook

Claire Cain Miller, New York Times

This isn’t a Facebook-killer, it’s a Twitter-killer.

Yishan Wong, Google+ post

A hearty congrats to Google for creating an offering that manages to be compared to both Facebook and Twitter. The initial press focused on Google+ as a Facebook competitor. But as people have gotten to play with it, more and more they are realizing that it’s just as much a Twitter competitor.

I wanted to understand how that’s possible. How is it Google+ competes with both of those services? To do so, I plotted Google+’s features against comparable features in both Facebook and Twitter. The objective was to understand:

  • Why are people thinking of Google+ as competitor to both existing social networks?
  • How did the Google team make use of the best of both services?

The chart below is shows where Google+ is more like Facebook or Twitter. The red check marks () and gray shading highlight which service a Google+ feature is more like.

A few notes about the chart.

Circles for tracking: Twitter has a very comparable feature with its Lists. Facebook also lets you put connections into lists; I know because I’ve put connections into lists (e.g. Family, High School, etc.). But I had a hard time figuring out where those lists are. in the Facebook UI. Seriously, where are they for accessing? They may be available somewhere, but it’s not readily accessible. So I didn’t consider Facebook as offering this as a core experience.

+1 voting on posts: Both Google+ and Facebook allow up votes on people’s posts.Twitter has the ‘favorite’ feature. Which is sort of like up voting. But not really. It’s not visible to others, and it’s more a bookmarking feature.

Posts in web search results: Google+ posts, the public ones, show up in Google search results. Not surprising there. Tweets do as well. Facebook posts for the most part do not. I understand some posts on public pages can. But the vast majority of Wall posts never show up in web search results.

Google+ One-Way Following Defines Its Experience

When you look at the chart above, on a strict feature count, Google+ is more like Facebook. It’s got comment threading, video chat,  inline media, and limited sharing.

But for me, the core defining design of Google+ is the one-way following. I can follow anyone on Google+. They may not follow back (er…put me in a circle), but I can see their public posts. This one-way following is what makes the experience more like Twitter for me. Knowing your public posts are out there for anyone to find and read is both boon and caution. For instance, I’ll post pics of my kids on Facebook, because I know who can see those pics – the people I’ve connected with. I don’t tend to post their pics on Twitter. Call me an old fashioned protective parent.

That’s my initial impression. Now as Google+ circles gain ground in terms of usage, they will become the Facebook equivalent of two-way following. Things like sharing and +mentions are issues that are hazy to me right now. Can someone reshare my “circle-only” post to others outside my circle? Do I have to turn off reshare every time? Does +mentioning someone outside my circle make them aware of the post?

Google has created quite a powerful platform here. While most features are not new innovations per se, Google+ benefits from the experience of both Twitter and Facebook. They’re off to a good start.

I’m @bhc3 on Twitter.

Three Reasons Google Should Acquire Delicious from Yahoo

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So the news is out. Yahoo plans to shutter Delicious, the largest social bookmarking site. Which is shocking, particularly among the tech savvy and socially oriented. Delicious is iconic for its application of social sharing and collective intelligence. Hard to believe Yahoo wants to shut it down.

But wait…this doesn’t have to be the end. Why not seek alternatives to shutting down the service? Might there be a logical company to take on Delicious, and all the value it holds? Why yes, one company comes to mind.

Google.

Delicious fits Google’s mission

Hmmm…what is it Google wants to do? What defines their corporate philosophy? Ah yes, here’s Google’s mission:


“Organize the world’s information.” Now, doesn’t that sound like the kind of thing that applies to Delicious? Millions of people organizing the world’s information, according to their own tags. Which makes it easier to find for others. Crowdsourced curation.

For that reason alone, Google would be wise to take on Delicious.

Glean new insights about what people value

Google’s pagerank is amazing. It’s incredibly good at finding nuggets. But it’s not perfect, as anyone who regularly use it knows. The use of links is powerful, but is a limited basis for identifying valuable web pages.

What people elect to bookmark is a different sort of valuation. Which is important, because not everyone blogs, or creates web pages with links to their favorite sites. But there is a distributed effort of indicating value via bookmarking.

This activity would be a valuable addition to Google’s search results. Take a look at this thread on Hacker News (a bunch of tech savvy types) about Delicious:

I added that highlighting. And here’s what Michael Arrington said when Yahoo experimented with adding Delicious bookmarks to its search results:

I have previously written that Delicious search is one of the best ways of searching for things when a standard search doesn’t pull up what you are looking for. After Google, it is my favorite “search engine.” Adding this information into Yahoo search is a great idea.

Google could leverage the activity of Delicious users to improve its search results, or at least give users an additional place to find content. Mine the tags to provide more context and connections among pages.

Note that Google, and Bing, are exploring different ways to apply social signals from Twitter and Facebook. Inclusion of Delicious in the search process would be consistent with that.

And Google would still benefit from its Adwords program here. Which would be a monetization strategy for Delicious, which has no ads.

Great PR move with the tech community

Google finds itself in a fight with Facebook for employees. Google is public, Facebook is pre-IPO. Social is hot, and Facebook is dominant in that. Google isn’t.

But as Allen Stern notes, Google does have a special appeal to the tech crowd for its developer-friendly moves. Stepping in and taking over a legendary Web 2.0 site like Delicious would be a good fit with that reputation. Enhance the usage of the data and make it easy for developers to access.

More importantly, Delicious holds a special appeal among the geekier set. Many of us are still active bookmarkers, and use the service. Google is known for being a geek-centric paradise, with a bunch of high-GPA, advanced degree types on its campuses.

What do you think it costs to run Delicious “as is”? I’d hazard a guess that it’s not too much. And Google is throwing off some serious cash ($10 billion in last 12 months):

So they do have some capacity, but obviously need to invest it wisely.

For a relatively low cost, they gain a treasure trove of data on relevance and value, and a solid boost to their PR. Seems like a big win to me. How about it Google? Why not step in and take over Delicious?

[tweetmeme source=”bhc3″]

Apple iPad and Google Buzz: Harsh Reality of Innovation

Nothing like putting your heart and soul in an innovation, and then getting this:

[tweetmeme source=”bhc3″]

Man, tough audience. But very much in keeping with some the best advice on innovation. Which is, you can’t have innovation without some failure along the way. It’s inevitable.

That advice is both true, and glib. Innovation consultant Jeffrey Phillips catches the right spirit when he says:

Another thing about “failure” is that we try to kid ourselves that failure is a “good thing” a learning opportunity.  Well, not in most cultures.

This is the reality of innovation. It’s tough. The more disruptive an innovation, the tougher it gets. And we’re in the middle of seeing how it plays right now with Apple iPad and Google Buzz.

Let me ask you this: Do you personally think either the iPad or Buzz will be guaranteed successes for their respective companies? Be honest now.

My guess is you’re like most of us: I don’t know.

Well, truth be known, neither do Apple and Google. But they’ve got a history you’d bet on.

Apple and Google: Big Time Failures, Big Time Innovations

Both Apple and Google have had their share of duds in the market:

Obviously, these companies do not have a perfect record of successful innovations.

But they do have a record of pressing through failures and continuing to roll out innovations. In fact, they’re consistently ranked the best in the world:

It pays to stick-to-it in trying out innovations. But can everyone?

Does Your Company Really Want Radical Innovation?

In Psychology Today, a professor at the University of Michigan gets to the issue:

From vaccines to Velcro, many inventions were spawned from accidents, seeming failures. But when Fiona Lee, psychology and business professor at the University of Michigan, explored which conditions help people experiment with novel ideas, she uncovered an interesting phenomenon: “Managers talk a lot about innovation and being on the cutting edge, but on an individual level, many people are not willing to try new things.”

What’s holding us back? A fear of failure.

Think about your own reaction to the question of whether the iPad and Google Buzz will be successful. It’s easy enough to be uncertain as an observer. But imagine if you have to put shareholder capital in to it, affect your brand in the market and risk some career trajectories?

I will often read of the importance of taking risks and accepting some level of failure for companies to be innovative. This is very true. But it can be glib to summarily dismiss companies for not “getting it”. When they’re made up of people like you and me who possess ordinary…well, human characteristics.

Because how do you know when you’re iterating toward a true high-value innovation, or you’re just spinning your wheels? I’ll turn again to Jeffrey Phillips:

As Edison and countless others have demonstrated, you rarely get it right the first time, and if you are stymied by early failure, then you’ll never find and implement the best ideas.  Innovation, as has been pointed out by individuals with far more to say about it than me, will create some failures.  Your job isn’t to avoid the failures, since you can’t predict them in advance, but to reduce the cost and impact of the inevitable failures.  In other words, keep moving.

As I said before, I can’t know for sure whether the Apple iPad or Google Buzz will be successful. But kudos to those companies for rolling out innovations that might fail. And in case you’re wondering whether allowing employees some latitude to fail is worth it, check out the 5-year stock performance of Apple and Google versus the S&P 500:

Let’s take this one out with the great speech from Teddy Roosevelt:

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.

Indeed.

I’m @bhc3 on Twitter.

My Ten Favorite Tweets – Week Ending 011510

From the home office at 11:35 pm weeknights, where I’ll be sitting in the Tonight Show chair after the Winter Olympics…

#1: Defining Social Business http://bit.ly/6pfbpy by @stoweboyd #e20

#2: RT @time Foursquare’s Twist on Facebook: A Reward for Checking In – TIME http://tinyurl.com/yce6jld

#3: One thing we’ll see more in next 20 years: online reputations. Not just businesses, but people. Formalized and applied to web experience.

#4: Technology Review: How Google Ranks Tweets #reputation http://post.ly/IRl1

#5: RT @HelenWalters “Innovation is killed with the two deadliest words in business: Prove it.” @rotmanschool‘s Roger Martin: http://bit.ly/862a3t

#6: RT @VenessaMiemis What is Design Thinking, Really? http://bit.ly/6fpmOZ #metathink #designthinking #innovation > Detailed post

#7: Reading ‘Design Driven Innovation’ by Verganti. Quote: “Design should anticipate a need, proposing a vision.” #innovation

#8: RT @GeorgeDearing Best Headline Ever. [ryankuder’s posterous] http://ff.im/-eaux4 > Funny WaPo headline writers #starwars

#9: This wasn’t too predictable, eh? “What Boyfriends and Girlfriends Search for on Google” http://bit.ly/7orLZv

#10: Ethics of test preparations–for kindergarten http://bit.ly/6TG7Co > Man, I missed out on this for my 5 1/2 son!

My Ten Favorite Tweets – Week Ending 010810

From the home office in Sacramento, where Governor Schwarzenegger laid out an initial budget that will take 11 months to resolve and pass…go ahead and get your California jokes ready now…

#1: If this topic interests you – Designing for Innovation through Competitive Collaboration – I ask for your #e2conf vote http://bit.ly/8xuQuC

#2: The Wisdom of Crowds Like Me http://bit.ly/4WM1Bi #crowdsourcing

#3: How Do Product Managers Reject Bad Ideas? http://bit.ly/7j6Ax0 by @chriscummings01 #innovation

#4: Jessica Hagy: The Visual Grammar of Ideas :: Articles :: The 99 Percent #innovation http://post.ly/HcJL

#5: Should you be thinking about Enterprise 2.0 in 2010? http://cli.gs/th9me by @dahowlett > A rare, rare bit of optimism there #e20

#6: MITRE’s intranet, including its Spigit deployment, is named to Jakob Nielsen’s Top 10 Intranets for 2010: http://bit.ly/5jrgJY #e20

#7: RT @dhinchcliffe The K-factor Lesson: How Social Ecosystems Grow (Or Not) http://bit.ly/8aEQEQ

#8: RT @paujoral Great quote by @wimrampen: “the name of the (social networking) game is how to participate in knowledge flows”

#9: Just had to use the “Let Me Google That for You” site for a colleague: http://lmgtfy.com/

#10: This is both funny and so true: Effect of Bay Area earthquakes on Twitter traffic http://twitpic.com/x3c10 (h/t @louisgray)

Three Designs for Presenting Tweets in Search Results

In a recent post, I described some ways in which tweets should be ranked in search results. A good follow-on question is

How should tweets be presented in search results?

It’s an interesting question – how exactly would you want to see tweets in your Google and Bing search results? And it’s an important question, as searches are critical bases for discovering information and huge drivers of traffic.

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Tweets are different from web pages. They are more ephemeral, but also much more current. They’re short nature means we can consume them much more quickly than fuller web pages. In many ways, their brevity reduces their “burden of interestingness”. Read, move on. Read, move on. Read, move on.

Tweets are small nuggets of insight, and pointers to good content. Web pages are the foundational information components. The value of the two digital forms is different. Thus, it makes sense to consider options for presenting these different types of information to people.

Three different designs for presenting tweets in Google and Bing search results come to mind:

  • Separate tweets-only search page
  • Tweets displayed in a box on the same page with web pages
  • Tweets integrated into the overall search results

Let’s take a look at the options. For added context, I’ve included appropriate musical selections.

At the bottom of this post, I’ve set up a poll asking which approach you’d prefer.

Tweets-only search results

Musical theme: Gotta keep ’em separated.

This is the Bing way. A separate URL for tweets. It’s an acknowledgment that tweets really are different from web pages. The graphic below conceptualizes this approach, with a search on ‘Madrid’:

The graphic above puts tweets searches more in line with overall searches. Right now Bing has no link to tweet searches on its home page. You just have to know the URL exists. Of course, the Microsoft Bing team is working on incorporating the firehose into its search experience, so that may change.

Positives

  • Dedicated page allows for much more creativity with presenting tweets, as Bing has shown
  • Visible link/tab keeps tweet searches more in-the-flow of searchers’ actions
  • Users could easily toggle between the tabs for different types of information
  • Minimizes risk of disruption to current “golden egg” of web searches

Negatives

  • Forces an extra step to see potentially relevant information – click the tweets tab
  • Somewhat diminishes the awareness of tweets’ real-time, up-to-date nature by using same tab structure applied to more static web pages

Tweets in same-page box

Musical theme: Man in the box.

The presentation of real-time tweets on the same page is something Google is experimenting with currently. The philosophy here is that you’re looking for multiple types of information in a search. Google already displays web page links, images, YouTube videos, maps, PDFs and other types of content. Tweets are just another type of content.

Something I’d like to see is a separate box of the tweets on the search results page, as shown below:

This design effectively distinguishes tweets from other types of content, while preserving the “all information on one page” philosophy. This is important for Google and Bing advertising, making the search results page even more engaging.

Open question: what’s better for ad click volumes? Multiple pages of different content (e.g. separate tabs described previously)? Or a single page with more engaging content?

Aside from the information aspect of tweets, there is also a people aspect. Tweets are as much about the person as they are the content. The separate presentation of tweets distinguishes them from web pages, PDFs, videos and the like.

Positives

  • Relevant, up-to-date content improves value of searches
  • In-the-flow of existing search behavior
  • Real-time nature is engaging
  • Find people as well as content

Negatives

  • Smaller space constrains presentation options
  • Potential for a too-crowded visual presentation

Because of the volume of searches run through Google and Bing, there will be a premium on ensuring the quality of the tweets presented. This is important regardless, but even more so here with the number of times people will see the tweets. See How Should Tweets Be Ranked in Search Engine Results? for thoughts on how to do this.

Tweets integrated with overall search results

Musical theme: Happy Together

There is a third design option. Why not put the tweets right in the mix of overall search results? Treat them less as exotic new forms of content, and more as just another type for searchers to click on. The graphic below conceptualizes this:

A tweet is just another URL that can point searchers to relevant content. The challenge is that Google and Bing need to alter their ranking algorithms to allow tweets to be served up high in search results. Something like a pagerank for the twitter account itself. If it has relevant content and a high “Twitter pagerank”, it gets served up higher in the search results.

Positives

  • Searchers get tweets in a highly familiar way
  • Minimizes risk of disruption to current “golden egg” of web searches

Negatives

  • Undermines the fresh, up-to-date nature of tweets
  • Will limit presentation of relevant tweets due to inadequate “Twitter pagerank”
  • Reduces the people aspect of the tweets
  • Lack of real-time flow diminishes engagement of the results page

Of course, tweets are served up in search results today. But that generally happens with very specific multi-word searches that match the tweet, or including the word “twitter” in the search. The design above brings tweets more fully into the pantheon of content, displaying them highly in search results for basic keywords.

I imagine smart folks can come up with other designs for displaying tweets. Leave a comment on these three or any other designs you think might be interesting.

Also, take a second and vote in the poll below. I’m curious what people think about the different possibilities for displaying tweets.

Thanks.

Google Real-Time Tweet Search Identifies the Tech Elite

Credit: Heart of Oak

Want to know if you’re truly in the technology elite? Let Google tell you!

Try this:

  • Go to Google
  • Type in your name and the word ‘twitter’ (e.g. hutch carpenter twitter)
  • Look at the results

If you see real-time search results at the top of the page, congratulations! You’re a VIP! If not, well, sorry about that.

As was well covered a few months back, Google has made a deal with Twitter to get the real-time firehose of tweets. The actual rollout of tweets in search by Google is still a work in progress.

But I stumbled across this interesting test of Tech Worthiness in doing research for a different blog post. Some searches result in a display of real-time tweets at the top of the page. What’s interesting is who gets this treatment.

The graphic below shows the Google search results for six different people, along with the word “twitter”:

At the top, you can see four people who are elite. They have real-time tweet searches right at the top of the search results:

  • Louis Gray – uber chronicler of Silicon Valley and Web 2.0
  • Charlene Li – ex-Forrester analyst, co-author of Groundswell, founder of Altimeter Group
  • Chris Messina – leader of the OpenID effort
  • Jeff Bezos – founder, CEO of Amazon.com

Jeff Bezos is interesting. He does have a twitter account, but they’re all protected tweets.

At the bottom, you see a couple of the non-elite in the tech world. Ashton Kutcher, the first man to the moon…er…to reach 1 million followers on Twitter does not get the real-time tweet treatment from Google.

And alas, I am not part of the tech elite either.

So there you have it. Google has provided a handy test to see if you’re part of the Tech Elite. Go see how you’re doing.

UPDATES

Several people reported to me on Twitter that they could indeed see my real-time tweets on Google using ‘bhc3 twitter’. Now I had tried that last night and this morning, got nothing. Now they’re showing up, as you can see in the picture below, taken from my iPhone:

When I ran the “hutch carpenter” tweet search on Google last night, there were no results. But on Twitter search, there were a few results.

Ashton Kutcher is frequently mentioned on Twitter, but he doesn’t show up on Google real-time tweet searches. His handle, @aplusk, is also mentioned frequently. Google tweet searches on aplusk were not bringing up his real-time tweets last night. But they are this morning.

A search on ‘Chris Messina’ yields @chrismessina in the real-time tweet search results. So Google does some association there between the two terms.

And there remain people who get no results, no matter what. So the exact nature of this real-time search is a bit murky.

Yet it still appears that the known “tech elite” show up readily.

Blogging Those Tweets? Get Rid of the Nofollows

A regular habit I have is to blog My Ten Favorite Tweets for each week. These are my own tweets, and they mostly contain links to interesting things during the past seven days. One thing I’ve always liked is that I can give “link credit” to the sites that I include in these weekly posts. This blog has a pretty respectable Google pagerank, so it can help other sites posting good content.

But alas, I have come to learn something. Twitter inserts the “nofollow” attribute in any links included in tweets. What is a “nofollow”? From Wikipedia:

An HTML attribute value used to instruct some search engines that a hyperlink should not influence the link target’s ranking in the search engine’s index.

When you paste a tweet from Twitter to your blog, the links include the “nofollow” attribute inserted by Twitter.  See below:

On FriendFeed, I asked some SEO-knowledgeable folks about this “nofollow” attribute I’ve been pasting in to my blog posts. AJ Kohn and Jimminy confirmed that because that “nofollow” is in there, the search engines aren’t giving link credit.

So the great content doesn’t get the credit in search engines it deserves. Now I need to go back and remove those pesky “nofollow” attributes.

Keep this mind if you paste tweets into your blog posts.

My Ten Favorite Tweets – Week Ending 111909

From the home office in the restarted Cern Large Hadron Collider along the French-Swiss border…

#1: What Shaun White & Snowboarding Can Teach You About #Innovation http://ow.ly/E8h7 Get exposure for ideas early, so others can digest impact

#2: Managing Employee Innovation Communities (via Spigit blog) http://bit.ly/3SREBr #innovation #e20

#3: City of Manor’s “citizens’ innovation” project (using Spigit) is featured on WhiteHouse.gov blog: http://ow.ly/DURl #gov20

#4: RT @CarolineDangson #IDC Social Survey: workers say they use IM for ‘collaboration’ & social networks for ‘sharing’ – thinking about diff

#5: RT @rotkapchen: RT @wimrampen Social Media Disrupts Decision-Making Process http://bit.ly/2KTUIz (via @GrahamHill)

#6 RT @tjkeitt Starting the process of researching #e2.0 technology pushed into business processes (CRM, ERP, project management, etc.). This is the future.

#7: RT @kevinmarks says @Caterina “Google never got social software – Knol means you have to write a whole article; wikipedia combines tiny contributions” #w2e

#8: Pitching Sequoia? They want to know which deadly sin your company lets customers indulge in http://ow.ly/DGn1 by @glennkelman

#9: Checking out: The Awesomeness Manifesto http://ow.ly/DmID by @umairh Much to love in that one #innovation

#10: Time Magazine is apparently torn between naming Twitter or the Economy as its “Person” of the Year http://ow.ly/CRbB

How Should Tweets Be Ranked in Search Engine Results?

Tweet searchAnyone remember when Loic LeMeur had the temerity to suggest Twitter rank its search results by the number of followers people have? His post, with 109 comments and reaction from Michael Arrington, Robert Scoble and many others, clearly struck a nerve.

Fast forward to the past couple weeks. Both Microsoft Bing and Google announced deals to provide tweets in search results. Let me say that again: Google and Bing will be providing tweet search results!

Bing’s version is the first out the gate. In light of the earlier brouhaha, this may come across as insensitive…but I have to ask:

How should tweets be ranked in Bing and Google search results?

I hope your answer isn’t, “I wouldn’t.” Because that’s contrary to what made Google such a global powerhouse used by billions every year. And why Microsoft is working hard to increase Bing’s market share. Google and Bing built their business by presenting search results based on the authority of websites. This system of authority (e.g. PageRank) makes the results relevant to users.

So what about running searches for tweets? Should their presentation be utterly devoid of any authority ranking? Does it make sense to just show the latest tweet containing a given term? After all, that would simply be imitating what Summize (aka Twitter Search) does.

First, a good question to ask is, why do people want to search tweets? How does this differ from web search?

Why Are You Searching Tweets?

To my mind, there are three use cases where people will search for tweets rather than search for websites:

  1. Find people
  2. Find latest on a subject that won’t show up in search engines yet (lack of indexing, lack of authority)
  3. Jump into conversations on something

Find people: You’re interested in a topic, and want to find others who can either improve your knowledge on it or with whom you want to connect. This is using Twitter as people search. The model for all of here is, you are what you tweet. It’s what makes you findable to others.

In this case, my sense is that people will have an desire to find those who would have the most authority on a given topic.

Find latest on a subject: The appearance of an article or blog post in the search engines can take a while. That contributes to the challenge of finding the latest. But the more pressing issue is the display of new articles in the search results. A good article or post on a subject, such as Enterprise 2.0, is likely not going to be ranked very high in the Google or Bing search results. No one links to the article yet, and it competes against a bunch of other incumbent articles in the search indexes.

If something shows up on the third page of Google’s search results, does it really exist?

This issue is even more pernicious for current events. The San Francisco Bay Bridge has been closed for several days now. It seems every estimate about when it will reopen has been wrong, meaning we all have to scramble to figure out our commute for the next day. To get the latest on the Bay Bridge, I searched Google, including the aggregate news results. Everything was too old when I did that, reflecting previous pronouncements. I needed what people knew right now. I went to Twitter, and found tweets that told me the latest status. Very helpful.

To find the latest on topics, I think there is a role for leveraging some sort of authority. People who have established credibility can be good first filters on what’s relevant and useful. For Enterprise 2.0, what is Dion Hinchliffe tweeting? For the Bay Bridge, I most trusted the KTVU tweet I saw.

Jump into conversations: This is Twitter as water cooler. You know something is going on. But how do you connect with people? Searches are good for this. Hash tags for conferences or big stories. Take the recent fraudulent #balloonboy story. It definitely captivated everyone. But even now, you’ll see tweets like this:

Watch top quality streaming Movie -> Up here http://cli.gs/dpNT5N Make $ From Home #mileycomeback #balloonboy

What is that? That’s someone taking a popular hash tag and polluting the search stream with spam. Again, a case where adding some authority to the tweet search rankings will help.

Tweet Authority Criteria

Keep in mind that “authority” is used in the context of Google and Bing searches. Of course web searches miss many authorities on subjects, but they work pretty well for giving relevant information.

I categorize the bases of authority in three buckets:

  1. Relevancy of tweet stream to a subject
  2. Crowdsourced signals of authority
  3. Effectiveness in providing relevant content

As a point of reference, Bing’s initial measure of relevance was reported to be the number of followers a person has. Let’s look at the three categories of authority.

Relevancy of Tweet Stream to a Subject

The first basis for authority should be…does someone tend to post about a given topic? Frequency of posts are a good marker that a person has something of interest to share. If someone is going to be deemed an authority on a subject, I’d expect a fair number of tweets related to it.

One twist that would make this better. A semantic basis for linking terms. For example, if some one searches on Foo Fighters, consider people whose tweet streams include posts about “music” frequently as having higher authority.

Crowdsourced Signals of Authority

What does the crowd think of a given person or tweet? Let’s start with a single tweet. If someone posts something on a given topic, and it gets retweeted a lot, that should count hugely in terms of its authority for a given topic.

OK, now for the general stats. How many followers does someone have? Yes, it’s getting gamed. So the presence of a high number of followers isn’t an automatic definition for authority. But it does have relevance in constructing authority.

The benefit of computing this for users is that the authority of those who follow a person can be an input into his or her own authority.

Next… Twitter Lists. Number of followers is not the end of the story. Lists have two characteristics that can be used to compute authority. First is the number of Lists one is on. Tim O’Reilly is on over 2,500 Lists. No surprise – he really made ‘web 2.0’ ubiquitous in our culture.

But an even better indicator of authority is embedded in Lists. How does the crowd characterize a person? Those Lists are valuable for granting higher authority for a given topic.

Effectiveness in Providing Relevant Content

When someone tweets, how do people react? Robert Scoble has a good take from his blog post:

  1. Number of retweets of that tweet
  2. Number of favorites of that tweet
  3. Number of inbound links to that tweet
  4. Number of clicks on an item in Twitter search

I particularly like that #4 item – number of clicks. Once these tweets are in the Google and Bing search results, the clicks can be measured. These are powerful bases for measuring someone’s authority.

I’d add a measure for how often a shared link is clicked; say bit.ly’s click information. While the actual number of clicks tracked by bit.ly is wrong, let’s assume it’s wrong in a similar fashion for everyone. So the bit.ly clicks counts can give a measure of relative effectiveness in providing content.

What Do You Think?

That’s my somewhat exhaustive description of inputs for ranking tweets in Google and Bing search results. There’s more that would be needed. I can think of incorporating some element of time decay in how tweets are presented as well. But this post is long enough.

What do you think? How would you rank tweets in the big search engines?