Category: Technology

Word of Mouse – Bonus Post

This blogger skimmed the ebook, “Word of Mouse” by John Riedl and Joseph Konstan, published in 2002.

It is about the concept called “Collaborative Filtering.” That means the ability to make product-recommendations to consumers based on a significant number of their self-reported likes of products via an algorithm in a computer program.

The authors claim that the program makes recommendations with a high degree of accuracy, once a subject provides sufficient data on likes and dislikes. Such data are superior to demographic data such as age, occupation and sex, when it comes to predicting future preferences.

Collaborative filtering can be applied to sales of clothing, books, movies and goods sold on the internet– simple products that are purchased according to taste. “Cultural tastes seem to run in patterns.”

This blogger theorizes that the algorithm would do poorly on complex offerings that involve customer service– restaurant meals, hotel rooms, flights or personal services, because they are an experience that varies every time and are more likely to be enjoyed multiple times. A singular product like a book or movie, is a one-time experience.

When polled by the computer program on a book or movie, consumers express their like or dislike only for the book or movie, not bookstore atmosphere or moviegoer rudeness. Consumers might rate a hotel room on hotel-staff friendliness, room decor, cleanliness, and a host of other variables; if they have stayed at the hotel more than once, the rating might also reflect consumers’ general vibe about the hotel for all their stays. On any given day, the consumer might have a good or bad experience at a hotel. Anyway, the algorithm might achieve the same degree of accuracy by recommending a hotel simply based on other hotels with similar amenities and features, as by recommending based on the consumer’s likes of other hotels.

The authors discuss an online business that was started in 1998, Priceline, which allows customers to name the highest price they are willing to pay for a product or service, and if their purchase is approved, (presumably) receive it at a deep discount. For the most part, this appears to be irrelevant to collaborative filtering. Nevertheless, interestingly, the “reverse-auction model” has turned out to be profitable for travel-related services but not for gasoline, groceries and financial services. The reason is that airlines and hotels suffer a total loss on each plane seat and hotel room unfilled on any particular flight or night, respectively. Recouping some revenue from passengers and guests, even at a deep discount, is preferable. The authors make a point about how Priceline displays local geographic expertise in selling its services. Displaying expertise is important for online selling.

The authors boldly proclaim, “We envision recommenders moving out more into the public and the bricks-and-mortar sphere… Recommenders can limit the number of items a customer needs to see on each [Web]page… Recommenders can also be used in voice interfaces where the limiting factor is low bandwidth…”  Clearly, Riedl and Konstan underestimated the algorithmic proficiency of Google.

Read the book anyway to see the authors’ enthusiasm for collaborative filtering and get numerous tips on online selling, marketing, and what we now know about the internet. 🙂

The Google Guys

The Book of the Week is “The Google Guys, Inside the Brilliant Minds of Google Founders Larry Page and Sergey Brin” by Richard L. Brandt, published in 2009, with an Afterword published in 2011. This ebook recounts the history of the company that created the world’s largest internet search engine, which can analyze millions of pages a second.

The company has more than one hundred attorneys on staff. It must defend itself against lawsuits in connection with intellectual property, privacy, monopolistic practices, censorship, etc. It has about “twenty thousand employees and $20 billion in revenues.”

Larry and Sergey, the company’s founders, avoid doing conventional things that even many tech companies do. When they set up shop in 1998, the two never wrote a business plan. They “almost never give interviews or attend conferences.” Since they possess incredible power, they are not just tough business negotiators, but unreasonably arrogant ones.

Currently, the company provides a large array of services, in addition to a search engine. These include “PC applications, e-mail, cell phone operating systems, Web browsers, Wiki information sites, social networks, and photo editing sites…”

Read the book to learn more about Google, Inc., its history, and the personalities of its founders.

Bad Boy Ballmer

The Book of the Week is “Bad Boy Ballmer, the Man Who Rules Microsoft” by Frederic Alan Maxwell, published in 2002. This ebook recounts the history of Microsoft and the career of its co-founder, Steve Ballmer.

Ballmer grew up in Birmingham, Michigan, which was a community comprised of “intense and well-funded academic, athletic, and social competition, and a high level of parental expectation, involvement, and support.” Ballmer’s father decided he was going to attend Harvard College. Fortunately, his superb academic record proved sufficient for acceptance. There, he met Bill Gates. They struck up a friendship and started Microsoft in the spring of 1975.

In the early 1980’s, under Ballmer’s and Gates’ auspices, the company created applications software that worked best on its own operating systems. This was one of many of Microsoft’s monopolistic practices that prompted government investigations and many lawsuits against it. Legally, financially and politically astute, Microsoft successfully defended itself for well over a decade, and employed unlawful dirty tricks in taking swipes at IBM, Sun Microsystems, Netscape and many other companies that made competing products. The whole time, Microsoft arrogantly denied it was a monopoly.

In the summer of 1998, Ballmer was named president of the company, which was still dogged by accusations of illegal business practices. The corporate culture had changed for the worse, and employee turnover rose. In order to boost morale, Ballmer “scheduled one-on-one interviews with the top hundred of Microsoft’s now thirty-five thousand employees, asking them what they thought was wrong with the company and how it could change.”

Ballmer told the press that his $180 billion company was overvalued. Shortly thereafter, on September 23, 1999, Microsoft’s NASDAQ stock price plummeted. Shareholders in the Seattle area alone suffered collective losses of $11 billion, or over “$3,000 for every man, woman, child and dog.” Other tech stocks fell precipitously as well. It was thought that Ballmer’s remark was a deliberate strategy to financially debilitate Microsoft’s rivals, which lacked the resources his company did.

Performance of Microsoft employees was reviewed every six months, on a 5-point scale. Managers competed for the privilege of supervising employees awarded high scores. However, the system had an inherent unfairness in that some managers gave 3’s for 4.5-level work, because they were supposed to rank their subordinates pursuant to the normal curve.

Read the book to learn more about how Ballmer’s personality and actions shaped Microsoft for over a quarter of a century.

The Fall of the House of Forbes

The Book of the Week is “The Fall of the House of Forbes” by Stewart Pinkerton, published in 2011.  This volume describes the changes that occurred at Forbes (a magazine publisher named after its founding family) in the post-Malcolm Forbes era.

Malcolm, a major shareholder of the company, spent extravagantly on a collection of mansions, art, and vehicles that traversed land, sea and air; not to mention business parties. He had managed the company until his mysterious death in 1991. Thereafter, his successors imposed frugality. Nevertheless, Forbes was unprepared for the new realities of the internet.

When the magazine was finally forced to restructure its operations by instituting massive layoffs and integrating print and Web, it had already been plagued for years by arrogant and petty editors, office politics, high turnover and numerous inefficiencies. While the magazine previously had a sterling reputation for meticulous fact-checking, it has jettisoned quality for dumbed-down content and Web traffic at any cost.

It is thought that the way to achieve profitability on the Web is to foster interactivity with readers.  The Huffington Post does so, but has yet to make any money. Furthermore, research has shown that people have much poorer focus and information retention when they are reading news on a backlit screen, than when reading news in print form.

Read the book to learn the history of the Forbes family, and the people and bad choices behind the collapse of this media empire.

Just For Fun

The Book of the Week is “Just For Fun” by Linus Torvalds, published in 2002.  This is the autobiography of a computer geek who fell into fame and fortune.  He hails from Finland, where internet access is extremely widespread.  While in graduate school, he created the kernel for a new computer operating system he named after himself, “Linux.”  It is based on the existing system, “Unix.”  Linux is “open source,” meaning, a community of computer users can change the system’s source code to improve it.  Theoretically, any user who wishes to, can volunteer to work on the code. If it is imperfect, others will correct it.  Also, the system can be downloaded free of charge.

Torvalds’ family lived in a region of Finland where the people were Swedish-speaking, and reticent.  Besides, Torvalds fit the stereotype of the computer geek; admittedly he “lacked any social graces whatsoever.”  One day in the early 1990’s, he started a project on which he was to work around the clock, for nine months straight.  It was “just for fun.” He explained that computer programming requires the simultaneous tracking of many ideas and lots of information when one is in the thick of it.  Of course, many people helped him with Linux, which was introduced just at the time the open source movement was becoming widespread among computer hobbyists.  He accepted donations through his website, to keep the project alive.

Surprisingly, Torvalds got married.  Unsurprisingly, he went to work for a tech firm in California, where he made some money from stock options (before it was too late).

Silicon Snake Oil

The Book of the Week is “Silicon Snake Oil” by Clifford Stoll.  This prescient book (published in 1996) presents evidence that the use of technology in certain areas of our lives, such as in education, is not necessarily a cure-all.

Here is an excerpt describing what happened when the author’s machine was malfunctioning:  “…so I grovel before a technician or pay a long-distance fee to get lost in a thicket of automated help messages…”

Just a few problems in American schools include overcrowding, poor teaching, poor security and budget shortfalls.  “Computers address none of these problems.”  Just because technology might “make learning fun” does not mean students learn any better. It just makes curriculum suppliers richer.

This is a thought-provoking book.

Bad Attitude

The Book of the Week is “Bad Attitude; The Processed World Anthology.”  Edited by Chris Carlsson with Mark Leger, 1990.  This is a compilation of the late 1970’s magazine, “Processed World,” about early office computers.  It has many funny anecdotes, illustrations, comic strips and photos.  The caption of one photo (which really doesn’t require a photo) reads, “Sabotage… It’s as simple as pulling a plug…”