Tropical Gringo

Innovación Digital en América Latina from Bogotech on Vimeo.

I’ve been so busy contributing to other publications that I’ve been falling behind in posting to my own blog.  Lately, I’ve been writing articles about companies such as Vivareal in Colombia and Compra3 in Brazil each with excellent prospects for the future. I’ve been psyched to see these articles published in the NYTimes and in Venturebeat.  There is such a tremendous opportunity in this region for setting up dev centers, targeting the region for products and services or both.

I just got back from a night of Salsa and Sushi with the Mrs. and, after waking up at 2:30am this morning should be hitting the sack.  Nevertheless, as if the day hasn’t been good enough, I just read Chris Brogan’s post on Colombia.  By now, I’m used to seeing fellow “Gringos” wowed by the life down here, but it’s so great to see someone who appreciates that aspect, but, more importantly, objectively, sees the tremendous potential down here.

That was just the cap to a truly amazing day where, aside from happy family times, I had some great meetings with top executives at two major multinationals down here, a financial services company and a friend who works at Twitter that I finally met in person (she’s down here).  Aside from all of this, Compra3 (amazing founders) had their production launch of their social commerce site, which I was able to write about to get the word out.

I should really back all of this up with more numbers and statistics, but I’m too tired tonight.  I’ll leave that for another post.

Conclusion:  there’s no doubt in my mind that Latin America is going through a transformation and that, within the next 5 years, the number of US VC/angel backed digital innovators with either dev centers or target market (or both) down here will explode.

Man, what an amazing day.  A few hours ago, I got off the phone with a colleague from my first job out of college.  A guy I had last spoken with more than 20 years ago!  We were both Advanced Design engineers for a defense contractor called HRB-Singer straight out of college and were not at all into our jobs.  Incredibly enough, we both ended up focusing on online marketing.

Man, my life is so different right now than what it was then.  I was this young whipper snapper on the prowl and without any ties.  Who woulda thunk it.  Back then, working was a hobby since I wasn’t really putting so much effort into my tasks (I’m ashamed to say) and was just soaking up a ton of life experiences.  Gary (that’s his name) and I ended up getting a gig in California (we were based out of State College, PA) and we were loving life out there.  The company set us up with great cars and amazing apartments and we really enjoyed our time out there.  The only thing we weren’t too crazy about was the work we were doing (or not doing).

It seems that Gary, got into graphic design and become Creative Director for a number of interactive agencies and has been working as a consultant for some time and has made a nice home in Denver.  It really took me back today talking with him and remembering those times.  It really made me think about the journey I’ve had during the past 20 years when I lived for 5 years out there in California and then have spent the last 15 years here in Colombia.  Pretty wild.

Also, today I just got back from Cali where I gave a presentation on Cloud Computing at an event sponsored by Microsoft. It was interesting, but expect the events in Medellin (next week) and Bogota to be a bit more active.  Well, time to do some work and hit the hay.  I also had a great conversation this evening with an amazing online marketer who’s based here in Colombia, but who’s done amazing things in the US market. There’s some real talent down here.

The launch of the Apple iPad was tad underwhelming for a lot of analysts.  Nevertheless, for anyone who’s interested in the continuing saga of the disruption of the media industry, this was an important chapter in the evolution of what the new media industry will look like.  Nobody is better fit to be the principle protagonist of this new chapter than Steve Jobs, successful CEO of a digital electronics (aka, computer) firm and former CEO of a media firm (Pixar).

Apple has all the freedom it wants in creating interesting new devices and software.  Nevertheless, when it comes to dealing with book publishers, studios and the like, things can seem a bit, shall we say, confining.  These companies are scared to death of a further squeeze on margins and having their valuable content swimming around on the Internet for free.

With the iPad, Jobs has launched yet another device for viewing all types of content including, now, books.  As more and more millions of users consume media on one or more of these devices, Jobs is creating a gated distribution system where he can experiment with different pricing schemes.  As more and more publishers, studios and music companies come on board and accept this state of affairs, it becomes harder for the remaining companies to hold out.

I’m sure some of these hold outs correctly understand the incredible power that could potential be in the hands of one company (Apple) and shudder.  However, as Jobs continues to add more consumers and more devices, these companies will find it more and more difficult to stay away from his massive distribution system.  The Apple media consumption ecosystem will only become more compelling as it’s pace of digital innovation accelerates.

It certainly is an amazing thing to watch.  While many executives understand from a theoretical level that things are changing (particularly in the media industry), Jobs understands what he needs to do to take advantage of what’s happening.  While many focus on specific nuances of each beautifully designed gadget that he launches, they risk losing the forest from the trees.

A major transformation is taking place before our eyes.  Content creation in the form of books, newspapers, movies, and music as a business has been bound to specific distribution businesses for many years. Sometimes they reside in the same legal entity (e.g., newspapers) and sometimes have ties to well-established distribution partners and Jobs is accelerating the transformation of these distribution channels (in many cases physical channels) into one digital bit stream.

In the process, the actual content will certainly be transformed.  Just as music companies are able to provide added content through iTunes; book publishers, newspapers and others will be able to provide added value through these new channels.  There will be many players vying for a role in this new ecosystem, but Steve Jobs, with a growing minion of subscribers to his media consumption platform (e.g., iTunes, iBook, Apps, etc.) will be a difficult force for the any media company to ignore.

During the last couple of weeks, quite a public battle was playing out between NBC and, now, former The Tonight Show host, Conan O’Brien.   Moreover, as announced a few days ago, the embattled comedian and his staff will be leaving the network with an exit package worth approximately $45 million.

Ironically, his ratings jumped substantially during the brouhaha as well as his online support.  Though NBC to some extent uses social media tools such as blogs and twitter, one wonders if the company could have employed such tools to engage more with audiences and come up with a different outcome?

One example of the online support that Conan garnered during the impasse is that created by designer Mike Mitchell.  Mr. Mitchell created the “I’m with Coco” image along with a campaign in support of the late night television star on a Facebook fan page that already boasts more than 300,000 members and has engendered a number of rallies in support of the late night star.

In contrast, Jay Leno’s Facebook fan page has less than 50,000 members and, incredibly, was hacked on Sunday evening to display an image of Conan. Finally, checking blog activity on Trendpedia shows a spike in activity for the keyword “Tonight Show,” among others during the last several days.

Would it have been possible for NBC to translate this Internet and social media interest into a more profitable business result for the network?  One thing is for certain, achieving such a result would have required more than simply using social media tools.  It would have required an organization willing to listen, react and respond relatively quickly to new and interesting options that pop up from such “digital” conversations.  It would have required a mindset where mistakes, such as this particular programming mishap, could be admitted and where fan criticism or suggestions would be encouraged and not lamented.

The actual form that such a strategy should take is debatable. Nevertheless, one company that seems to be embracing social media tools and, possibly, the ensuing organizational transformation that could result is MTV.  Recently, Carolyn Everson, EVP of strategy and operations for MTV Networks, stated that “digital learnings” are making their way into the linear business.  It’s interesting to note that within the list of Top Social Brands of 2009 recently released by Vitrue, MTV ranks as number 4 on the list while NBC is number 68 – CBS and ABC are at 32 and 33, respectively. This would seem to indicate that the network might have some work to do in terms of more fully embracing audience engagement through social media.

Ironically, Comcast, the company due to acquire NBC Universal shortly, has been cited as an example of a company that embraced the use of social media (e.g.,Twitter) as a catalyst to improving their customer service.  This fact notwithstanding, Comcast is probably at the beginning of any transformational process and is actually ranked #100 on Vitrue’s list of Top Social Brands of 2009.

Indeed, It’s possible that the current industry dynamics and prior decisions made by NBC Universal management have placed them in too difficult of a position regardless of their use of any social media tools.  As mentioned above, companies such asMTV proactively mines social media activity related to their brand and culls valuable insights that inform their business decisions.

Conan certainly enjoyed much support through the Internet even mentioning as much in his farewell address.  Nevertheless, the question still remains.  Could NBC have produced a more positive business result by making better use of the increased social media “conversations” around this story?

It’s been a busy start of the year.  I’ve been contributing articles to a number of blogs and it’s been an extremely satisfiying experience.  Aside from meeting new people, it helps improve my writing (in English and in Spanish).  Among my posts is one dedicated to my thesis that a Twitter-Amazon alliance makes sense as well as a profile of a new social software startup in Argentina called JoinCube.  In Spanish, I wrote a number of posts for my friend, Jesus Hoyos’ blog and for PulsoSocial, a Latin American technology blog founded by the impressive Andres Barreto.

Unfortunately, this has effected the number of posts that I’ve uploaded to my own blog, but I plan on rectifying this.  Although I have been writing a lot (and working a lot), it hasn’t showed as much because of these endeavors.  Nevertheless, I am committed to posting more on this blog and alerting you on my Facebook fan page.

The coming year will certainly be interesting.  I believe that the economic environment will be even more challenging (and for an extended period of time); social media will continue to penetrate further into the web’s fabric and the mobile web will have a profound effect on the total web experience.  Basically, it’s a perfect storm of factors that will drive a lot of change not only into the web, but into our lives.  It’s a great time to be writing about digital innovation!

My conversation with Jeffrey Eisenberg, co-author of the book, Call to Action

When I spoke with Jeff Eisenberg several days ago, I was prepared to get some valuable insights into how to effectively use the Internet to increase conversions and sales.   I was, nonetheless, incredibly impressed by how succinctly he was able to break down key concepts (nothing impresses me more than the ability to simplify the seemingly complex).  Nevertheless, I was completely flabbergasted by the fact that he had been to Latin America many times (20 times to Colombia), his Latin American heritage (his parents are from Argentina) and his fluency in Spanish.

Jeff and his brother, Brian, are well-known experts, speakers, consultants and authors within the online sales/marketing industry and from my conversation with Jeff, it’s obvious that they intimately understand Latin America (more on this a little later).   Given the fact that Latin America is at an inflection point in terms of growth in online marketing and ecommerce, having access to world-renowned experts in the field who not only know the language, but also, the culture, should be viewed as a gift from the heavens.  Forgive the hyperbole, but Latin America is one of the fastest growing regions in the world (in some cases, the fastest) in terms of Internet adoption with over 100M users and a growth of over 30% and it’s time that companies in the region seek out the top experts in the field to take advantage of the fact that most of their customers are active online.

The reason that Jeff is so knowledgeable about the region is that his previous job within the financial industry brought him many times to Latin America on business.  Also, his parents immigrated to the states from Buenos Aires in 1962 and since Spanish was spoken at home (as in my case), he and his brother are completely fluent.  Given this fact and the business context described above, I’m surprised that Latin American firms haven’t contacted him for consulting and speaking engagements in order to leverage the knowledge and experience that he brings after working with clients such as NBC Universal, Overstock.com, Dell and Volvo.

Talking  about Colombia, I mentioned that, though this country is a leading technology adopter with more users on Facebook than any other Latin American country, I’ve only seen organizations with some exceptions take initial steps at developing and executing online strategies.  I also mentioned that eCommerce still has quite a ways to go.  Jeff’s answered this observation with a question: “Are we [Colombian companies] waiting for countries such as Argentina, Mexico or the US to take our market?”  In my view, that is most definitely the question to ask and this scenario will, indeed, occur if local companies don’t awaken to the opportunity.

With respect to eCommerce, Jeff mentioned that the key catalyst for increasing activity in this area will most probably come from new mobile initiatives down the road.  Nevertheless, regardless of what happens on the eCommerce front, there is a plethora of options that Latin American organizations have available to them to interact with their customers.  Basic websites were fine to start off with, but, as Jeff mentioned, when a customer clicks on a hyperlink, that customer is asking a question such as “How much does this cost?”  If a company’s website answers that question with something like “We’re great,” the conversation has little chance of going further and a key conversion opportunity has been lost.  In the current economic environment, wasting these types of opportunities is becoming an unaffordable luxury.

More than anything, according to Jeff, digital technologies are forcing more and more transparency on all types of organizations and this new environment can be scary.  In order to succeed, organizations need to be authentic and offer real and tangible differentiators.  Initiatives such as reputation management, online reviews and participating in online conversations with prospects and customers can yield substantial results.

Either way you look at it, Latin America is at a crossroads.  Everyday companies are feeling more competitive pressures from outside their country’s borders, their prospective customers are flocking to digital media and differentiating themselves is getting harder.  Sticking to traditional techniques of marketing their wares at the expense of newer, more cost effective channels (where their customers are congregating), is a paradigm that will be less and less effective.  Experts such as Jeff have been working with growing stable of companies in other regions with compelling results.  The time has arrived for Latin America to begin amassing its long list of regional success stories before others do it for them.

Checkout the VentureBeat.com version of this article.

Most of us have special requests when we travel, but don’t really expect our lodging providers to be interested in these much less take them into account.  Nevertheless, celebrities, heads of state and royalty can depend on their lodging providers to cater to their every whim.  If Alexander Torrenegra, serial web entrepreneur, has his way, you’ll soon be traveling like a true Diva.

Alexander’s new venture, called LetMeGo.com, offers travelers the chance to upload their travel arrangements along with dates, places and special instructions to the site.  Afterwards, users allow all types of lodging providers (e.g., vacation homes, Bed and Breakfasts, hotels, etc.) to bid on their itinerary.   Each user can see the pricing and other data that is sent by each provider and each bidder can see other bids, but none of this information is made public; it’s between the user and the lodging providers.

There’s a lot that goes into a site like LetMeGo.com and Alex is no stranger to building such sites.  A number of years ago, after observing how difficult it was for his wife to promote her voiceover services, he created Voice123.com and has since positioned it as the leading site for promoting voiceover talent.  Almost as interesting as the niche he chose for this Internet venture is how he decided to build it.

Alex moved to the states several years ago after growing up in Colombia, South America.  Fortunately, he stayed in contact with his college friends and set up a development center in Bogota where principal development for Voice123.com took place and where LetMeGo.com was gestated during the past two years.  Alex is a perfectionist and relishes his role as a Product Manager and Customer Experience Manager just as much as CEO and he puts the talent at his company on a par with any engineers, designers and managers in the states.

Although he’s worked with computers since an early age, he honed his web skills as a consultant (webmaster, SEO, etc.) in 2000 for companies such as Terra and at lodging web site Rentalo.com.  He soon realized that there were inefficiencies in the lodging industry due to the fact that much of the digital infrastructure was riding atop early work in travel reservation systems such as Sabre and the industry was ripe for new model that incorporated social networking and a reverse action model into the mix.

When I was a Venture Capitalist in Latin America, I was struck by the lack of ambition of a lot of startups as well as questions about their ability to execute.  With LetMeGo.com, I see a highly ambitious objective (the vacation rental market alone is estimated to be a $24B opportunity in the US) as well as a team with the chops to execute.  My biggest concern for the company is that fact they may be biting off more than they can chew, but that qualm quickly goes away as I chat more with Alex.

It is truly amazing what the LetMeGo.com team has been able to build up to this point and they already have a good number of hotel and lodgings signed up.  In my mind, the biggest hurdle is getting enough users to actually insert their itineraries and, in general, changing customer and supplier behavior (talk about ambitious).  Nevertheless, they understand the size of the challenges ahead and will continue to market their site: they have an aggressive affiliate program ready to launch as well as plans to translate the site to Spanish, Portuguese and Mandarin or Cantonese.

All and all, it’s quite a grand undertaking, but I wouldn’t bet against Alex and his team (I’ve met them in Colombia).  They are passionate, competent and driven to make their vision a reality.  As I write about digital innovation in Latin America, I’m continually on the lookout for interesting companies for Venture Capital firms and I would put LetMeGo.com at the top of the list.  They have the team, a big pond (market) to swim in and business as well as technical acumen.  A VC with strong network connections and added capital would make the mix all the more powerful and, possibly, create a lot more Divas in the process.

My interview with Joe Payne, CEO of Eloqua, offering SaaS based Marketing Automation.

The days of multimillion-dollar CRM projects being closed left and right by the likes of Siebel have given way to thousands of dollars for CRM and Sales force Automation systems offered by Software-as-a-Service (SaaS) vendors.  Nevertheless, Marketing and Sales have many more processes that can benefit from automation and Eloqua and its CEO, Joe Payne, offer a compelling solution to improve Marketing processes and align them (at least technologically) more with Sales.

Eloqua has been innovating in the Marketing Automation space for the last 10 years and thanks to their SaaS model can also incorporate best practice business processes into their offerings at a fraction of what it would have cost to deliver this value only a few years ago.  I actually used to work for SAS Institute and saw first hand how costly deploying a top of the line on premises solution can be and how long such an application can take to start producing results.  I’ve always been curious about the “Eloqua” name and Joe cleared that up for me when he mentioned that the URL for the word “eloquent” was already taken, hence, “Eloqua” was born.

Though not as well known as CRM, Marketing Automation is excellent for reading prospects’ digital body language. In other words, as prospects click through the web and on company websites, they leave a trail of valuable information of which companies rarely avail themselves to provide users with personalized experiences.  A system such as that offered by Eloqua can automate the process whereby your company builds a relationship with that prospect in order to convert them to a qualified lead and, then, customer.

This market has a long way to go and Joe mentioned that the space is probably only about 4% penetrated.  As companies continue to migrate more of their Sales and Marketing budgets to the web, the possibility to achieve greater measurability of their efforts and actually have that measurability drive their actions, will be quite compelling.  The current global financial situation will only accelerate this trend. It’s so great to talk with innovative leaders like Joe, because now, more than ever, they’re excited about the global opportunity. One thing that surprised me is that Joe does speak a little Spanish though he mentioned that his children are better at it than he is.

Eloqua helps large companies as well as smaller ones with half its customers generating less than US $50M in yearly sales.  Even smaller companies can work with Eloqua partners called Marketing Services Partners that not only take care of the technical intricacies of Marketing Automation, but can also help companies create, store and distribute one of their most valuable new assets: digital content.

Eloqua customers include companies such as VMWare, Adobe, Omniture (now part of Adobe) and Rosetta Stone.  In the B2C space, the company works with the Miami Heat basketball team as well as ADP among others.  The fact that Omniture was a client impressed me since Omniture is known for their own measurement software.  Nevertheless, this brought home the fact that Marketing Automation integrates a number of different technologies with one end result:  measurable impact. To this point, Joe mentioned a hospitality customer which deployed Eloqua and achieved a US $1M improvement in their Sales and Marketing efforts in a relatively short period of time.

In Latin America, I think there is an excellent opportunity for Marketing Service Partners that already have a stable of clients to start offering this type of (outsourced) service.  Integrating the offering within a complete package makes customer education an easier proposition and will provide benefits in the form of: 1) Better prioritization of leads and 2) The ability to nurture prospects into qualified leads.

Although large companies are the most obvious candidates for such a solution, medium size business in Latin America that decide to adopt these best practices in Sales and Marketing (complemented with some consulting), will have obvious competitive advantages in the marketplace.   Thanks to the maturation of the SaaS model, I’m sure it’s just a matter of time before these types of services start to proliferate in the region.

My conversation with Jeffrey Eisenberg, co-author of the book, Call to Action

When I spoke with Jeff Eisenberg several days ago, I was prepared to get some valuable insights into how to effectively use the Internet to increase conversions and sales.   I was, nonetheless, incredibly impressed by how succinctly he was able to break down key concepts (nothing impresses me more than the ability to simplify the seemingly complicated).  Nevertheless, the I was completely flabbergasted by the fact that he had been to Latin America many times (20 times to Colombia), his Latin American heritage (his parents are from Argentina) and his fluency in Spanish.

Jeff and his brother, Brian, are well-known experts, speakers, consultants and authors within the online sales/marketing industry and from my conversation with Jeff, it’s obvious that they intimately understand Latin America (more on this a little later).   Given the fact that Latin America is at an inflection point in terms of growth in online marketing and ecommerce, having access to world-renowned experts in the field who not only know the language, but also, the culture, should be viewed as a gift from the heavens.  Forgive the hyperbole, but Latin America is one of the fastest growing regions in the world (in some cases, the fastest) in terms of Internet adoption with over 100M users and a growth of over 30% and it’s time that companies in the region seek out the top experts in the field to take advantage of the fact that most of their customers are active online.

The reason that Jeff is so knowledgeable about the region is that his previous job within the financial industry brought him many times to Latin America on business.  Also, his parents immigrated to the states from Buenos Aires in 1962 and since Spanish was spoken at home (as in my case), he and his brother are completely fluent.  Given this fact and the business context described above, I’m surprised that Latin American firms haven’t contacted him for consulting and speaking engagements in order to leverage the knowledge and experience that he brings after working with clients such as NBC Universal, Overstock.com, Dell and Volvo.

Talking  about Colombia, I mentioned that, though this country is a leading technology adopter with more users on Facebook than any other Latin American country, I’ve only seen organizations with some exceptions take initial steps at developing and executing online strategies.  I also mentioned that eCommerce still has quite a ways to go.  Jeff’s answered this observation with a question: “Are we [Colombian companies] waiting for countries such as Argentina, Mexico or the US to take our market?”  In my view, that is most definitely the question to ask and this scenario will, indeed, occur if local companies don’t awaken to the opportunity.

With respect to eCommerce, Jeff mentioned that the key catalyst for increasing activity in this area will most probably come from new mobile initiatives down the road.  Nevertheless, regardless of what happens on the eCommerce front, there is a plethora of options that Latin American organizations have available to them to interact with their customers.  Basic websites were fine to start off with, but, asJeff mentioned, when a customer clicks on a hyperlink, that customer is asking a question such as “How much does this cost?”  If a company’s website answers that question with something like “We’re great,” the conversation has little chance of going further and a key conversion opportunity has been lost.  In the current economic environment, wasting these types of opportunities is becoming an unaffordable luxury.

More than anything, according to Jeff, digital technologies are forcing more and more transparency on all types of organizations and this new environment can be scary.  In order to succeed, organizations need to be authentic and offer real and tangible differentiators. Initiatives such as reputation management, online reviews and participating in online conversations with prospects and customers can yield substantial results.

Either way you look at it, Latin America is at a cross roads.  Everyday companies are feeling more competitive pressures from outside their country’s borders, their prospective customers are flocking to digital media and differentiating themselves is getting harder. Sticking to traditional techniques of marketing their wares at the expense of newer, more cost effective channels (where their customers are congregating), is a paradigm that will be less and less effective.  Experts such as Jeff have been working with growing stable of companies in other regions with compelling results.  The time has arrived for Latin America to begin amassing its long list of regional success stories before others do it for them.

My conversation with Denise Shiffman, the author of The Age of Engage

After reading The Age of Engage by Denise Shiffman, I felt that it was one of those rare books that clearly explains the implications (for organizations) of adopting online marketing strategies.  Having the opportunity to talk with Denise about her book and her perspectives was not only stimulating, but also, incredibly enlightening.  The conversation started off with an excellent mental exercise when Denise posited, “What would you do if TV and print went away?”

This simple conjecture certainly focuses your mind in order to more clearly comprehend the paradigm shift that is happening in marketing, today.  Basically, instead of marketing being a monologue, digital technologies have made it possible to have conversations with your customers: a proposition which can be frightening if the company in question isn’t a good “conversationalist.”  According to Denise, if that happens to be the case and said company embarks on a social media strategy without anything interesting to talk about, it’s likely that few customers will engage (as has happened to some brands).

Denise explained that a social media strategy is much more than making use of some tools.  It involves thinking about what your brand stands for and what you want to communicate.   More importantly, it’s about being authentic and building trust and conversing with your prospects and customers where they happen to be.   This is quite a change from traditional media where companies have been accustomed to controlling a specific message, which is relayed through a few well-established channels (e.g., print, television, etc.) to a mass audience.  There’s only one problem as Denise pointed out, customers are listening less and less to these mass messages.

Thanks to her unique background which includes a degree in Sociology, a Masters in Business and stints as a Vice President of Marketing for companies such as Sun Microsystems, Denise brings her own distinct perspective to the intersection of marketing and digital technologies. Specifically, she finds the current convergence of people’s behavior and the state of technological development truly exciting.  Even more, according to her, technology is actually allowing companies to behave more like real people.

When I brought up the Latin American market, she was quick to mention the fact that a country such as Brazil is known to have speedily adopted social networking technologies.  Indeed, studies have shown that Latin Americans and Hispanics have great adopters of social networking and are among the most active networkers once they adopt these platforms.

User adoption is great, but why are so many companies in Latin America basically ignoring their users by not engaging them more on these platforms?  When I asked Denise this, she relayed her observations from about seven years ago in the US, when social media was just ramping up. At that time, there was a notable generational gap between company directors (including CEO’s) and their younger workforce.  While younger workers were blogging and adopting these technologies, many C-level executives were almost oblivious to the changes taking place.  From what I’ve observed, a similar situation (there are some differences) is playing out in Latin America.

As Denise explained, the Internet offers an incredibly cost-effective, measurable platform for engaging customers. Ignoring this runs the risk of tarnishing your reputation, which is exactly what happened to Dell several years ago when customers filled the social networking “air waves” with tales of the company’s customer service failures.  Back then, Dell was ill-prepared to respond to such communications and its image suffered as a result.  Such situations have a way of hitting the bottom line relatively quickly and the company has since improved markedly in this area.

As Denise points out, there is a convergence of how people behavior and the maturation of digital technologies, which can only serve to accelerate the changes already underway.  Even companies that one would not normally associate with the digital technology adoption such as Indium Corporation, a metal alloy and solder manufacturer, are engaging more deeply with customers through a well thought out blogging and online strategy. It’s up to Latin American companies whether they, too, wish to take advantage of these tools.  The alternative is to bet exclusively on traditional media while their customers flock to digital media looking for interesting conversations.

I’ve been a fan of Frances Cairncross since reading her insightful book, The Company of the Future, about the changes taking place within organizations and within society as a result of the accelerating adoption of digital technologies.  Although books on new technologies seem to be published by the bushel, I’ve found that good ones dedicated to the impact that these technologies are having on organizations and people are few and far between.   That’s why I was so happy that Frances graciously accepted my request to speak with her.

A lot has happened since 2002 when The Company of the Future was first published and I was extremely curious about Frances’ perspective on things now that many of the technologies (collaborative and otherwise) had progressively improved.  After writing for the The Economist for two decades (most recently as its Management Editor), Frances Cairncross, today, is the Rector of Exeter College at Oxford University where she gets charged by the interaction and education of young people many of whom are sure to be leaders of the future.

I have always been extremely interested in explaining the impact of new technologies to the people who can make the most use of them (usually, not technologists themselves).  I think that’s a key reason for my interest in Frances’ work.  When I mentioned this to her, she reminded me that this is precisely the perspective that economists such as Alfred Marshall have brought to the table in explaining the impact of the telegraph and trains on organizational structures more than a hundred years ago.

I was curious about her ruminations on recent developments and the first area that we spoke about was the current economic environment (e.g., financial crisis, etc.).  She mentioned that the financial crisis seems to be pulling organizations in different directions at once as they try to react and adapt to the new reality (inducing investment in technology), but also increasingly question any additional spending (putting pressure on investments in technology and other areas).  It’s a dichotomy that will only grow more intense not only because of the current economic climate, but also because organizations continue to grapple with the changes brought about the accelerating pace of adoption and development of digital tools.

One of the areas that Frances mentioned as ripe for tremendous change is the public sector now that governments will come under increasing pressure to make the most of any funds available to them.  She mentioned that each day there are new examples of innovative ways of delivering government services by better adoption of digital platforms from places such as Singapore and Hong Kong.  Nevertheless, she expects to see much more change in the near future.

We spoke quite a bit about change in general and, as an economist, she understands how slow cultural change can be, but has been a keen observer of its progress.  In her current position at Oxford, she’s been able to witness the behavior of young people and how different things have become.  For instance, whereas in the past, congregating at a specific time and place either required precision planning and promotion (or luck), today, a quick message on a cell phone can move groups of young people with the synchronicity of a school of fish.   Although organizations are still trying to understand how to make use of all of these new digital tools (not only Internet, but also, mobile-based), newer generations have it in their DNA.

Finally, I asked Frances about her thoughts on the opportunities available to people and countries in Latin America.  She quickly suggested that these should look at examples of companies such as one that she was able to visit in Costa Rica, which provided technical services to orthodontists stateside by crafting models of patient’s teeth and shipping these through one of the priority mail carriers.  In other words, look for high quality production that is now a possibility for Latin American companies, as the “death of distance” becomes more of a reality.

All in all, having the chance to talk with Frances was enjoyable and helped me tremendously in terms of gaining additional insight into the changes that are happening before our eyes.  Either way, I hope she continues to put her ideas in writing because it would continue to enrich the public discourse.

I recently had the pleasure of interviewing Chris Cabrera, CEO of the wildly successful SaaS start-up, Xactly Corporation

It must have been quite an epiphany for Chris Cabrera, CEO of Xactly, when he realized, while employed at another company, that the sales compensation software that he was selling for hundreds of thousands (sometimes millions) of dollars a pop was ripe for innovation.  When he founded Xactly, Software as a Service (SaaS) was just starting to gain respect as a viable business model thanks to the growth of companies such as Salesforce.com.

As I asked Chris about the early years at Xactly, I couldn’t help but draw parallels between that business context and the one that we’re living right now in Latin America. As Chris mentioned, at the outset, data security was a real concern, but as the SaaS model became better understood, conversations with prospects have turned towards the business benefits of adopting the solution.   I’d say that Latin America is still at that initial phase that Chris described in the US when executives still had qualms about hosting their data outside their company walls and we’re probably at an inflection point in Latin America where these fears will begin to dissipate (as they have in other regions).

Xactly has amassed an impressive (and enviable) record with about $60 million in funding dollars.  Their offering is available in 18 languages and they have over 250 customers in almost every continent with 90% using more than one currency.  The company’s offering, Xactly Incent, allows companies to change sales force behavior through adjustments in compensation.  Companies are just now understanding the power of employing specialized software such as this to better manage a key component of their revenue equation: their sales force’s compensation.

As Chris explained many large and mid-size companies, amazingly, still use spreadsheets to manage sales force compensation even though millions of dollars depend on these employees’ performance.  Using Xactly Incent, both employees and managers can view progress on a series of metrics in real-time.  Depending on the company’s objectives, sales force behavior can be managed to increase cross-selling opportunities,  improve collections (important in this economy) or even promote strategic offerings, all managed from the net or from a smart phone.

Even more, activities such as discounting can benefit immensely by giving sales people clear visibility into their compensation structure relative to different discounting scenarios.  This is important, because, for some companies, even one percentage point of a discount can mean the difference between millions of dollars to the bottom line.  With so much hanging in the balance, managing this through spreadsheets makes little sense.

Before the SaaS era came into its own, purchasing, installing and using such specialized software cost an order of magnitude more than it does today and took much longer to achieve its ROI goals.  Today, Xactly can get a customer up and running in a matter of days (or weeks) with substantial increases in profitability in a relatively short period of time at cost an order of magnitude less than what was possible through the traditional software model.

Now, how does all of this impact the Latin American market?  I was pleasantly surprised to hear from Chris that his father, Eduardo Cabrera Micolta, comes from Colombia, South America (as does mine).   Moreover, Latin America is certainly one of the markets where he sees growth potential.   Even though the CRM wave is just hitting in full force here in Latin America, the opportunity to leapfrog competitors and adopt more sophisticated sales force compensation software (such as Xactly’s) is available and ready to be exploited.

In terms of advice for Digital Innovators in Latin America, Chris offered an excellent suggestion.  With players such as Salesforce.com offering incredible cloud computing platforms on which to develop solutions, it behooves companies in the region to offer solutions on such platforms and gain access to an audience of over sixty five thousand potential customers (in Salesforce.com’s case).  Coming from someone who’s at the forefront of software innovation (and Latin American descent to boot), it’s worth heading his advice.

This week (and last), I’ve been running around like a chicken with its head cut off.  You wouldn’t know it, but I’ve been soooo ecstatic about having this blog because of the amazing people it’s allowed me to meet.  Nevertheless, it seems like everything has happened at once.  At the same time that I’ve had the most amazing interviews with excellent authors and CEO’s, I’ve been swamped with work from my day job.

On that last front, things are progressing nicely.  There are two key deals that are on a pretty good path and at least one of them should close in the next few weeks.  Building a company is no easy matter and doing it in Latin America has additional challenges.  Nevertheless, once positioned down here, there’s a lot of potential for building a great franchise.

By tonight, I’m going to be posting a ton of stuff and then I’ll settle into a regular posting calendar of every Monday and Thursday.  I’ve seen the stats of this blog going in the right direction (growing).  Neverhteless, I gotta admit, right now, I’m writing mainly for me in terms of getting ideas out of my system.  It does seem sometimes that you’re talking in the wilderness and aren’t sure that anybody’s listening.  It’s going to definitely be a ton more fun when I get more feedback, push back and other interactions that will help me learn a ton more.

A few days ago, I wrote a post about entrepreneur Ricardo Quesada who is the technical lead of the open source iPhone game development platform called Cocos2d. Now comes the news that Sequoia and some Angels have invested in Unity who “plays” in the same space. Interestingly, Unity reports less customers (325) than Cocos2d.

Sequoia and the Angels have most certainly laid out some funds because they see excellent growth in this space.  Aside from this, I’m sure they were favorably impressed with Unity’s offering and its management team.  Ricardo is hard at work at polishing his product, which is on it’s 0.82 release.  Nevertheless, as soon as he finishes this phase, it would be great if he could build a team (I’m sure he can build a capable one) and get one or more backers to fulfill the potential of Cocos2d. Go Ricardo Go!

My conversation with Ricardo Quesada, creator of Cocos2d iPhone Games Development Platform

It’s not every day that you get to talk to a top iPhone tools developer who also is a unicyclist.  Ricardo Quesada is unique Argentinean who’s made digital innovation part of his professional life for more than 10 years. After leaving his post at a top security software firm called Core Security Technologies (founded in Argentina), Ricardo decided to jump into something he had always found fun, creating games.

After some jam sessions with some buddies who shared his passion for the Python programming language as well as creating games, a game development platform called Cocos2D began to take shape as an open source project.  Though their initial focus was creating games for the PC, when Apple released the production version of the iPhone Software Development Kit (SDK) by 2008, Cocos2D had already been ported for that platform and was rapidly gaining fans all over the globe (e.g., US, Europe, Japan, China, Korea, etc.).

By the end of 2008 at least 40 iPhone games developed using Cocos2D were available with some of these hitting the Top 10 list.  Around May of 2009, Stick Wars, developed with the Cocos2D framework was the number one selling app on the Apple App Store for three weeks making it one of the best selling apps.  Fortunately, such successes have resulted in donations to the open source project from grateful developers.

Thanks to improvements that Ricardo and the active Cocos2D community continue to make, this framework continues to add functionality on top of an already impressive OpenGL graphics engine and developer-friendly design. In January 2009, The Registered voted Cocos2D the number one open source project for the iPhone.

All of this is a testament to Ricardo, a talented developer committed to following his passion, as well as a growing community of professionals (technical and otherwise) in Latin America who understand that the world has changed.  The Internet is an instant onramp to a global marketplace of ideas and opportunities no matter where you happen to reside. Entrepreneurs like Ricardo realize that old paradigms of emerging world professionals being content with less interesting challenges are no longer necessary when you can instantly have access to the global marketplace.

Though is only at version 0.8 with the Cocos2D framework, he is working feverishly to get it to level that he feels will deserve the 1.0 designation.  From a business perspective, it will be interesting to see where he takes the business model, which today consists of selling some sample code that he developed when he was creating his own games with the framework.  For the moment, he is intelligently focusing on making sure he is attending to the needs of his developer users.

Nevertheless, one can’t help speculating the possibilities for creating a commercial version with strong collaborative features that could enable developers and non-developers at disparate locations to quickly brainstorm, prototype and develop new games.   Another target audience, in the future, may even be digital agencies without deep game development expertise looking to quickly and collaboratively prototype game concepts for their clients within new marketing initiatives. Whatever develops, one thing seems to be assured: Ricardo will have a lot of fun.

A Conversation with Emiliano Kargieman, Argentinian, digital innovator and founder of Core Security Technologies

When you start a blog, everyone tells ya, it’s important to choose a topic that you’re passionate about.  I’ve got a number of hobbies (none, very healthy) such as smoking stogies, watching movies and laying on the beach.  However, I’m passionate about digital innovation in Latin America and that’s what I want to write about.  Part of the reason may be because I like thinking out of the box or I just like the underdog storyline and believe that something like creating world-class hi-tech firms in Latin America is possible.

This theory is all well and good, but there’s nothing like feeling of talking with and/or meeting someone who’s actually accomplished it.  That’s the sensation I got while talking with Emiliano Kargieman the other day.  Emiliano, a mathematician by training, wanted to focus on big challenges to flex his math and programming skills so, in 1996, he decided, at the age of 19, to get together with his buddies and build a security software company focused on the international market.  Though that age might seem young to some, Emiliano had already run three companies by this time and had been programming for nine years.

Emiliano’s self-deprecating humor belies a passion for competing in the global marketplace and half-jokingly adds that, thanks to the fact that none of the founders had an MBA, enabled them to break existing paradigms in Latin America and build a global software firm from Argentina.  I didn’t delve too deeply into this experience during my conversation with Emliano, but suffice it to say that Core Security Technologies today is a company with sales headquarters in Boston, millions of dollars in revenue, hundreds of customers around the globe and millions of dollars in Venture Capital investment.

The focus of my discussion with the Argentinean entrepreneur was more on the future.    As a result of his success with Core Security Technologies, he decided to create an early-stage VC firm, Aconcagua Ventures, with some of his colleagues.  One of the ventures that have come out of this initiative is Popego, Inc. a 12-person company focused on filtering the information on the web through the use of Artificial Intelligence and other technologies.   The company was recently named one of the most innovative start-ups of 2008 by Techcrunch.

Though Popego certainly has some challenges ahead of it particularly in the realm of customer acquisition, it has a lot of sharp minds behind it as well as a backer with demonstrated success in the marketplace.  The pain point that Emiliano is attacking is a real one (accelerating clutter and noise on the web) and quite ambitious.  Basically, its all part of a realization that is more obvious today than it was in 1996 when Emiliano started: emerging markets such as Latin America have a role to play in terms of global digital innovation.  It’s no longer a question of access to the global stage, but more a matter of whether Latin American entrepreneurs decide to participate.

As he mentions, in a world where cloud computing is placing enormous processing resources at the disposal of start-ups and the internet at as medium permits global access in an instant, the old paradigms in Latin America (and other markets) of focusing exclusively on local markets are obsolete.   Indeed, I believe that, although he represents an exception today in Latin America, as he and other entrepreneurs in emerging markets continue to prove themselves, they will provide validity to the thesis that the distinction is not so much one of geographic location, but more, as Emiliano explains, risk adversity.

As a mathematician, Emiliano sees no reason to expend the same effort for little return.  He admires entrepreneurs such as Jeff Bezos who didn’t just focus his efforts in offering a percentage more books than his competitors, but thought in terms of orders of magnitude of improvement.   Along these lines, he believes in organizing Latin American talent around solutions that offer orders of magnitude more value.

True to his philosophy, he is focusing on a big, challenging problems.  As he elucidates, IBM won the hardware wars, Microsoft the software wars and Google the information wars.  The next space up for grabs is what he calls, “Information Contextualization” or making the web more meaningful for each user and this is where Popego is making every effort to clear a space for itself.

Similar to the opinions expressed by the CEO of Zoho, Emiliano sees definite advantages to creating start-ups in Latin America and particularly in countries such as Argentina.  In these countries, risk is part of daily life and the vicissitudes of that countries economy only increased the ranks of entrepreneurs looking to create new value.  Also, he, as well as myself, is a fan of the initiatives that Chile is implementing to drive entrepreneurism.  The specific programs were recently detailed by UC-Berkely professor Vivek Wadhwa.

In the end, with entrepreneurs such as Emiliano in Latin America’s ranks, I’m assured to be writing about Digital Innovation in Latin America for quite a while.

Today, I had an interesting experience at two prospect meetings.  I was meeting with organizations who are just starting to employ digital innovation strategies in Colombia (one of them is farther along than the other one).  In general, I am truly amazed at the disconnect between the user population in these countries and the companies who actually leverage digital tools to join the conversation with their customers.

One of the most exciting recent developments within the Internet space has been the rapid uptake of social media tools and, even more interesting, the adoption of these tools on mobile platforms.  Just was with their record-breaking mobile adoption growth rates several years back, Latin Americans are also breaking records for adopting social networking platforms.  For instance, Colombia is number six in the world in terms of the total number of facebook users.

I just read a post by Shane Gibson, who is currently in Colombia talking precisely about social networks. Incredibly, companies in the region who take advantage of the fact that their customers and prospects are having conversations using these digital tools are few and far between.  What are they waiting for? Instead of spending beaucoup sums of money on traditional media spends, they could be “mixing it up” and including solidly planned online iniciatives to promote their brand, products, services, etc. through direct advertising, community building, word of mouth enabling or other strategies.  An added benefit is the fact that, by doing this in virgin territory, any well thought out strategy strongly executed will be seen as digital innovation by the market place.

Anyhow, this will all play out as it always does in the region.  The market will await some solid successes and then a mass of followers will dive in head first trying to imitate their models. When this will actually happen is the big question.

Everyday, I’m continually fascinated by new things happening in different areas having to do with digital media such as social networking and the real-time web among others.  Nevertheless, I’ve come to realize from bitter experience that actually getting websites or blogs constructed with a proactive, thorough and customer-oriented developer is virgin territory waiting to be exploited.

Now, I’m not talking about technical challenges and customer-developer brainstorming at the beginning of the project.  I’m talking about incredible lulls in the work schedule where things just stop happening unless you, as the customer, ping your developer.  In some instances, if one were to simply wait for the developer to perform the work that’s on the docket, you’d better wait sitting down ‘cause it’s not unusual for things to slide without continual monitoring. (more…)

My Conversation with Zoho CEO, Sridhar Vembu

In my last post, I spoke about my conversation with Sridhar Vembu, CEO of Zoho Corporation, an innovative software company headquartered in the US, but with most of their employees based in India and China.   I wrote mostly about the ingredients of the company’s success.  In this post, I’d like to delve a bit further into Sridhar’s vision and philosophy and its applicability to Latin America.

While I was speaking with Sridhar, I was reminded of John Hagel’s book, The Only Sustainable Edge.  In it, Hagel mentions two important areas touched upon by the Zoho CEO. The first one has to do with Zoho’s ability to offer customers value at an affordable cost which is in synch with Hagel’s assertion that technology innovations are opportunities to “create more value at less cost.”  Zoho’s location, recruiting, training and company culture paired with its bet on cloud computing make are certainly aligned to a goal of creating more value at less cost for their customers.  Additionally, Hagel points out in his book that managing across two cultures “can create new opportunities to enhance performance by drawing on the best of both cultures.”  Certainly, this is not news to Sridhar who lives and breathes it every day. (more…)