*I was going to post about revenue models today but I met with one of the co-founders of Zonbu today and could not resist posting this instead.*
Business is often an elusive practice. For some odd reason, some businesses succeed and others fail simply by trial and error. So is the term entrepreneurship, and so I should point out here that for all the academic theory and research surrounding this idea, it is those who have been able to embody the spirit of entrepreneurship who have been truly successful.
As for Grégoire Gentil, when I met him in his office on El Camino Real, it became evident that whatever the traits are for an entrepreneur, he is inexplicably an individual that embodies those traits not only in spirit but in action.
Gentil launched three businesses since 1996. In 2006, Gentil and his colleague Alain Rossman created Zonbu.
So what is Zonbu? The technology has the look and feel of the traditional desktop (for $99) or laptop (for $279) but isn't quite the desktop or laptop that we know. Aimed at casual laptop users, Zonbu provides an open source software where the computer is more of a portal to the data stored on a server somewhere rather than a computer.
In addition to that, most of the company's revenue comes from a subscription based service rather than the device itself--a type of HP printer model where the printer itself is a cheap base price, but you pay more for the print cartridges later.
Gentil, as a technology geek and avid trendwatcher, has been able to create what he calls a "disruptive technology"--the very thing that will keep away corporate giants like Dell and Microsoft from his market niche.
As a disruptive technology, it tends to just elusive enough for the corporate giants not to move into this space, and Gentil attributes this to defining a very clear and specific niche where larger players may not be able to support.
So how has Gentil been so successful at creating 4 start-ups to date? Gentil had no direct answer, except to say, "You have to be stubborn enough to believe in yourself and what you are doing, because others may not believe in what you are doing."
He has also been very good at simply identifying solid trends and opportunities. Zonbu is the intersection between cloud computing, sound hardware design and open source. It's an ambitious idea for sure, as he has also been able to integrate poignant environmental issues into the benefits of the technology.
For those of us who want to start a business, Gentil advises, "You have to start early." The older you are the less opportunity there is to succeed. My perception of this is that perhaps the more responsibilities and pressures there are to succeed. This is centrally against the principle that entrepreneurs must be able to pursue risk without boundaries because entrepreneurs risk failure just as much as success.
However it seems that Gentil's skill at identifying opportunities, "stubborn" nature and technology knowledge have contributed most to Gentil's success thus far.
In addition to that, it also helps if you "hire people who are smarter than you."
Thursday, February 21, 2008
The Start Up 101 Series - Zonbu
Monday, December 10, 2007
Why Newton isn't always right
Newton's law states that anything that is put into motion stays in motion (unless something else prevents it from being so).
I know, marketing is not physics but there is a word we use a lot in viral marketing called "momentum" which is supposed to keep the ball moving, as they say, on a product's development and enhance the buyer's desire to purchase your product over others.
For B2B marketers, this tends to be quite the challenge because business organizations, more than individuals, tend to prefer the products they already have over new products. It's more complicated for IT managers to implement a new system and train people on how to use it than it is to stick with the status quo.
We often hear about products catching fire and gaining popularity. Some recent products of note is the iPhone and well, the ever pervasive Facebook where the inherent notion is getting your friends to join. Someone I spoke to today pointed out to me that it is indeed true with B2C products, but B2B has its own challenges.
I think that this is where PR can play a larger role to create so much credibility and reputation around a product that if your competitors are using the applications, then you better get on the bandwagon.
More on Enterprise applications and why this is a different market than B2C internet culture: Of COURSE enterprise software should be sexy
Tuesday, December 4, 2007
Communication, a Media Invasion
I was talking with some of my colleagues from the Silicon Valley American Marketing Association (SVAMA) yesterday and we were speculating on social media and how this arena is changing traditional media. Michael was saying that it's actually not true that current media replaces old media--it just gets re-innovated. Radios didn't get replaced by Walkmans, and even though we don't use the old tapes format anymore, we don't listen to music any differently than we did after Walkman. And books haven't gotten replaced by things like the Kindle or Sony e-Reader and so far, it doesn't seem like they will. It's almost impossible to have a true "paperless office" even with cool tools made by Google Apps and Zoho but one thing that remains true is that innovation is constant and changing.
I'm no expert, but some good conclusions came out of our group conversation, but I keep noticing some of the same themes. The group I was speaking with were fairly knowledagable about social media. But in general, a lot of marketers aren't sure how social media works and there a lot of fear surrounding blogs, social networks and such to use them as a marketing tool. I think we just need to get back to basics and remember some marketing 101: who is your target market and will the tools you want to use serve your business/marketing objectives?
Of course, it's easier said than done, so feel free to post your thoughts on social media approaches and/or the latest trends in technology innovation that you see.
