Tag: startups

We’re all trapped – The dark side of the APPOCALYPSE

Posted on by Steve Sammartino

Today Apple started it’s WWDC17 with a parody of what our modern world might be like if the app store went down. They called it the APPOCALYPSE – It’s worth watching if you haven’t seen it yet. It had a lot of detractors, many for good reason. I’m not even sure if Apple are laughing at us, or haven’t realised the gravity of their proposition? But I think most people missed the dark side of our reality.

We are living deep inside a technology trap. 

In 1978 technology historian James Bourke explained this vital concept with this video. For much of the industrial age we’ve all been living in a world we know little about. We’re all eking out a living via micro specialised gigs which have little to do with sustaining life. If the lights went out, few of us would be able to survive very long on our own. Once the stores are empty, where would we get our food, water, medicine, heating, cooling and other essentials from? Even if we had the skills of a renaissance person, there wouldn’t be enough time to gather the resources needed for mere survival.

But today, we are much deeper in the hole than that. We could, as a pre internet society probably muster up enough people with enough physical skills and knowledge to rebuild a bootstrapped society. But today, much of our critical infrastructure is buried deep inside a technological grid few people understand, and no one understands entirely. We are trapped. In the pre-internet based technology trap, the system wasn’t singular, the traps were at least geographically isolated. Today, they are all inextricably linked.

The most warped thing about this, is that it resides in the hands of a few private global internet giants. Their primary interest is to serve their shareholders, not society or end users. Users being the operative word here, we rely on them like a dealer, we show up for our digital high, just to be able to function on any given day. I’m not sure if calling us users is by design or coincidence, but I’m sure they’ve got the gear and we’ve got little choice but to take it.

This is another reminder that we need greater distribution of wealth and critical digital infrastructure. But the truth is we can’t control this. There is little we can do about it the foibles of the system. But what we can do is invest in ourselves so that we de-risk our own economic future. We can acquire the skills and resources of self reliance. Now more than ever, we can spread our personal financial risk beyond the hands of a single financial overlord – otherwise known as a boss.

If you’re interested in making yourself future proof, come join me in Melbourne on June 20th and get your mind around ‘The Lessons School Forgot’. 

I’ll be doing a talk on how to hack your way to a radical future, and answer all the questions you might have about finding a path to independence. It’s going to be a great night.

Click here to reserve your Free seat. 

See you then, Steve. 

Why you shouldn’t fear a robot version of you

Posted on by Steve Sammartino

Some robots are getting so ridiculously good – you can literally code, or should I say ‘train‘ them, by moving their arms and legs. You show them what to do like you would a child. The Baxter robot by Rethink Robotics is an example of this pictured above. In addition to this Natural Language Processing is getting so good, the Google AI, can understand 95 percent of verbal requests and process accurate search results as if it was typed. Within 10 years, we’ll be able to talk and communicated with A.I.’s, the same way we could with humans on many tasks.

The obvious next step is to add the 2 together more deliberately – the physical Robot, and the Artificial Intelligence. We’ll have human like devices with both the physical dexterity and mental capacity of their flesh and blood creators. This is causing a lot of concern around the world for employment. Personally I think there is a lot of upside would should be exploring as well.

Imagine, there was a robot that could copy our skills exactly, down to the minute detail. Match our physical behaviours and our human interactions. Learn from us, and literally match the way we would talk, interact, move and decide what to do next. Even match our physical style and processes on the job (without the mishaps!) An artificial version of us. Well, to me this could be a great economic opportunity for many people. Say you work in aged care, or phone sales, and you are of course, a gun at what you do. All of a sudden you could go out and train robots to operate in your personal style – teach the robot your human touch and skills which you have become renowned for within your organisation. All of a sudden you could entrepreneurially replicate yourself for revenue. A human style robot who behaves just like the awesome Lisa has done to be employee of the month a zillion times. All that hard work you’ve done over the years to hone your skills and build your reputation in your job, becomes your opportunity. You can replicate yourself and what makes you special and good at your gig, and become the beneficiary of all your years of hard work.

“I’ve trained and sold 36 Lisa robots this year” 

A revenue source someone waiting tables never thought they’d have. If you think about it, there was a time when musicians and actors never thought they’d be able to replicate their work for revenue either. They too once had to be in the room to earn money doing what they did. Technology it turns out, can be a great equalizer of opportunity.

Blog readers in Melbourne – I’m inviting you as a reader to The Lessons School Forgot – Live – to celebrate the launch of my new book. 

Hope to see you there, Steve. 

The Language of Innovation

Posted on by Steve Sammartino

In my adult life, I’ve learned to speak two foreign languages. During my studies I came to the conclusion that it is very difficult to truly understand a culture, until you can speak its language(s). There are nuances and belief systems locked inside the words of a culture. The way a culture’s words are put together, how these words translate into actions, what its people believe and even the way they move are locked inside language. This is one of the reasons you can’t just translate phrases, or even some words directly. They need a cultural context to allow true meaning and required action to be drawn from them. It’s a process which has lots of layers, which when understood properly uncovers why different cultures believe different things, have different values, behave in unique ways and mostly go about things in a way which is, well foreign. Language and culture mirror each other.

Learning how to change, innovate and survive under a new technological regime is a lot like learning a new language.

For more than 10 years I’ve been out in the market learning and speaking our new business language, that of the accelerating technology economy.  Espousing that the era of stability is over and that there is a bunch of new tools and methods which not only circumvent industrial strategies, but are part of a permanent cultural shift in business. Here’s what I’ve noticed:

There are 3 clear stages that are recognisable parts to a successful transition.

Noticing the new language – We hear a bunch of words which are different. What seem like mere sounds and accents just washing over us gradually become more familiar. We see a smaller cohort speaking this new language in more and more places until we notice that it isn’t just different, but something different is happening around and to the people who speak this language. It is generating attention from outsiders and the language seems to have some advantages. Advantages that only those who speak it seem to understand and have access to. The initial recognition of this difference is first part of any change process. We must not only admit that we don’t understand it and that it’s not going to go away. But we must also be curious enough not to ignore it, but to dig deeper into it.

Understand the meaning – Next we must try and learn the new language. We have to study it, observe and listen, then try to speak it. We must learn the meaning inside the words – the foreign ‘culture’ it represents. This part isn’t just a translation process, it’s more about experimenting with the words until it becomes a physical response. A key part of this process is watching the body language and verbal language interact. Once we really understand the language, we understand its context and what makes it work. Understanding a language just little can bring about many positive changes and new actions. But it is a game of frequency and practice. To know it, we can’t just study it. We have to use it in non-classroom environments, in real life where mistakes can happen. We must converse with others who only speak that language. If we only practice with others who speak our mother tongue as well, we won’t really learn – we’ll always revert to what is more comfortable. Actions don’t just speak louder than words – they are the purpose of them.

Living the language – This is where most struggle.  At this point, we understand it well enough. We know enough to communicate and get inside the culture. But here we face a choice on whether we want to adopt it. To use it. To become at one with the language. Unless we decide to live the language, it will never be an automatic reaction and allow us to interact in its world without thinking. This is the chasm most never cross, because here’s where it goes beyond learning and becomes more about changing.

If you go back and read through the 3 steps again and think about disruptive technology or business innovation, you’ll see they are the same thing. The reasons most large companies, and people with established stable career skills struggle to adapt to innovations is because they are not prepared to live it. Mostly they want to learn a few words, be able to order a sandwich and introduce themselves, but mostly they’d prefer to just speak and act the way they always have. It’s usually window dressing. They don’t truly believe in it and they want to maintain their current culture. We’ll never truly innovate speaking an outdated language, or more precisely, living in an outmoded culture. We must immerse fully and leave the past behind.

For a company, and even a country, we’ll only ever be future-proof once we are so immersed in the language of innovation that we develop our own slang, dialect and accent with it. This is not easy. It’s a radical and permanent shift. Ask anyone who moved to a new land and had to learn to speak all over again.

Just remember this, if you don’t like change – you’re really going to hate irrelevance.

Blog readers in Melbourne – I’m inviting you as a reader to The Lessons School Forgot – Live – to celebrate the launch of my new book. 

Hope to see you there, Steve. 

Why it's never been a better time to start a business

Posted on by Steve Sammartino

Lift off!

It’s ironic that governments around the world are clamouring to support large companies via the promise of jobs given that this is the greatest time in human history to start a business.

Anyone who has a had a crack at starting a venture knows the idea is the easy bit. Ideas are bit like water, absolutely vital, but there is no shortage. The hard part has always been gathering access to resources, and then compiling the resources into a system of revenue. Just think through what we needed in the past to make a business a reality:

Finance – without rich parents, friends or some security for the bank it was over before we started.

Manufacturing – how the heck would you build a facility to make stuff? There was no ‘open factories’ just a little while ago.

Retail – other than opening a store, it was difficult to get on the shelves. Especially in small volumes. Stores wanted mass market products, support by advertising.

Promotion – advertising was barely affordable other than bills posted on local walls. Newspapers, radio and TV – all too expensive for a startup.

It’s no wonder we got told to get a good education, go to university and get a stable job with a multinational corporation. Which, is still an option…. but personally, I think we are all capable of more than that. I think the gift of access we’ve all been given via technology is too precious to waste. Just look at all the barriers to entry which have now crumbled in less than a generation:

Alibaba has more than 4 million factories we can access to get a our dreams made into a physical reality.

E-commerce stores have never been easier to set up, no tech skills required.

We can connect with customers on a zillion platforms – Ebay / Etsy / App store / Facebook / Instagram / Youtube and endless others

We can get funded based on the strength of our work, passion and ideas, not how rich our contacts are.

We can access freelance workers easy on line, work from home or anywhere, and we can start part time, an hour a day instead of wasting the night watching TV shows which teach us how to make a better soufflé .

Why this matters: A.I. is coming and it WILL remove many jobs including white collar work – so we need a rebooted entrepreneurial ethic to invent our own financial futures and create new industries.

If you want more inspiration on your possible future – then check out the first chapter of my upcoming book – The Lessons School Forgot –  you’ll totally dig it.

Why we need to stop using the word Job

Posted on by Steve Sammartino

With every single policy statement of our, and any democratic Government, I can tell you what the proposed objective of every single one of them will be:

Jobs & Growth.

Screen Shot 2017-05-09 at 12.27.31 PM

For me, it is heartbreaking to hear this mantra still being chanted as some kind of plan for the future, especially given the industrial age is officially over. We don’t need to provide people with jobs – we need to provide them with the tools and skills of adaptation, because increasingly, jobs will have shorter and shorter life cycles.

The era of lifelong jobs, lifelong careers or life long anything is over. Quite frankly, jobs are not the solution. We are very quickly evolving into an economy driven by independent actors, attracting revenue from multiple sources. In the future, everyone will become ‘Projecteers’. We are already starting to shift inside and outside of companies, providing skills for projects. The best way to de-risk anything financial is to have many sources of revenue – not just one, which is what a job is. Having a job is the riskiest financial strategy anyone can have. Anyone who wants to thrive in the new economy needs to be totally self-reliant.

The good news? It has never been a better time in history to get on the path to independence. To learn and to reinvent ourselves. The first thing we need to do in every industrialised economy is remove the word ‘job’ from our collective parlance. This word is responsible for limiting the possibilities of millions of people – it steals from the breadth of possibility. It says: be subservient to someone else. It says:

  • Let someone else provide opportunities for you.
  • Let someone else decide what you’re worth.
  • Let someone else decide if you’re qualified.
  • Let someone else decide if they need you.
  • Let someone else decide when to replace you with Artificial Intelligence.

The list is endless, but the point is that it outsources responsibility to an economic machine we have no control over. Wouldn’t it be refreshing if the government came out and said, “We are going to make it easier than ever to start a business”?

A better approach to life is to think in terms of Revenue – how much do I need, where can I get it and what value can I create for others so I can get my fair share. Everyone’s economic future is not based on the job they have, but the revenue they create for themselves. And the government…well, they just want tax payers and centralised simplicity where they give large corporations what they want so long as they provide jobs for tax payers. We all deserve more than that. We deserve an independent future where the government provides resources for people to invent new industries and revenue streams for a modern economy. We deserve new systems that enable nimble skill providers to adapt to what the economy and businesses need. Jobs are something people had when Henry Ford ran the show, and the last time I looked… Ford wasn’t a company anyone revered.

If you like this kind of thinking about the future, then I’d highly recommend reading my new book – The Lessons School Forgot. You can download the first chapter here free. It’s out in June and is a manifesto on how to financially future-proof your life in a rapidly changing world.

You'll never believe what these guys are really selling!

Posted on by Steve Sammartino

The other day I was in the airport where a new startup was sampling itself. It’s an app to jump the coffee queue. I’m always stoked to see people having a go at a new business and got them to give me their pitch. It’s always good for entrepreneurs to practice unprepared. Then I realised I got a coffee but didn’t use their service. And here’s why:

Part of what I’m buying is the wait.

Yep, some of the people getting their morning java actually enjoy the wait. The wait is what is being sold. Sometimes it’s the conversation with the Barrista, and sometimes it’s the walk to the cafe. I guess we can throw the coffee on that list too.

Morning coffee

This is why you’ve seen a hundred other apps for people to jump coffee queue and they never quite work. I’m also wondering what happens if the app is successful?  Wont all those who used it end up ‘in a queue again’ via a digital deli ticketing system? The problem probably isn’t the arrival time, but the output bottleneck in peak demand times.

It;s another reminder that an effective business model isn’t just about demand – it’s very often about why we buy, and the model and the friction… and how money can be made through the transaction process, not just with the transaction itself.  As for the entrepreneurs, they did the right thing by having a crack. They could prove me wrong and I hope they do. Their worse case scenario is that they learn plenty and pivot closer to the success they deserve.

Follow me on SnapChat – search ‘Sammartron’ for more business insight. Click here if on mobile to add now.

The tradeoff Startup founders must never forget

Posted on by Steve Sammartino

Them:

So, we’ve just nailed our MVP and we are getting some real traction.  Next we’re going to raise capital, get some funding. We’ll probably go to the Valley as it’s easier to raise there. The valuations are more generous. We’re super pumped, finally getting our startup off the ground.

Me:

I thought you were an entrepreneur? 

Them:

What are you talking about? Of course I am – didn’t you hear what I just said?

Me:

Yes, but here is what I heard….  That you’ve finally got something people want, you’re probably solving a real problem and you’re on your path creating value for others, and eventually yourself. But in this process, you’ve got caught up in pop culture. You’ve forgotten that a big part entrepreneurship is independence – creating your own path. So, you’re off to raise money and get caught up in someone else’s objective – that of the venture capitalist. The same group of people who’d rather see you fail trying to build a billion dollar company,  than help you build a $10 million company. Their business model you see, is based on the former, not the latter. 

Venture Capital - the downside

If there is anything startup founders should remember it is why it’s worth doing at all. Startups are hard, and rarely a path to riches. Entrepreneurship is more about exploration and freedom than money. If you want to be rich, there’s more chance of that happening being an employee of a company that already has a billion dollar valuation.

In both cases: a funded startup or being employee – you’ll compromise control. In that case you may as well have the certainty of money that goes with stock options and employment. If you want to be answerable to anyone other than your customers that is.

It’s a rare event indeed when the deal terms favour the founder. Real entrepreneurs find ways to make money independently with that anti-modern thing called a profit. For every example of an entrepreneur succeeding with funding, there are 99+ that do not. It’s a bet I’d never take unless the VC came knocking on my door and / or I could maintain total control and independence.

Follow me on SnapChat – search ‘Sammartron’ for more business insight. Click here if on mobile to add now.