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Ted Murphy

Ted Murphy
In business,

Facebook Bets Big on Hardware

The following is a post I originally wrote for my friends over at Socialfresh as part of there 2013 Social Media Predictions.

While Facebook may be thought of as a “social network” the reality is that this behemoth is aiming to be much, much more. Zuckerburg has been amassing a small army of engineers over the past few years, and now possesses the billions in cash it needs to compete with the biggest tech titans in the space. Facebook has a $50B+ market cap, while frenemy Google has a $200M+ market cap, Microsoft has a $200B+ market cap, and Apple enjoys a $500B+ market cap.

The common difference between Facebook and these leading companies? Hardware.

Software is great – but controlling the entire ecosystem of a hardware platform is where the really big money is.

Everyone Wants Hardware Revenue Like Apple

Microsoft can’t go back with Windows. They will forever be slaves to their hardware partners, while Apple continues to gain desktop market share. However, Microsoft learned their lesson as we saw with Xbox and more recently Surface.

Controlling the entire platform, owning the supply chain and optimizing the user experience is incredibly important. Microsoft needs to be in the hardware game in order to compete with Apple, which is the same reason that Google purchased Motorola.

Microsoft is now mocking Apple with the full set of stores (new Windows Stores), tablets, and soon will likely add their own phones (Windows Phones) and laptops into the mix.

Social Networks Are Fleeting

Let’s face it, social networks are a dime a dozen. Every day a new social network launches trying to one-up Facebook, much like Facebook one-upped MySpace.

Why?

Because two kids in a garage can easily hack together some code, launch it and see what happens for almost zero money.

Someone will eventually get it right and take on Facebook because the barrier to entry is so low. Or Facebook will drown in fragmentation.

Creating a hardware/software ecosystem is something different altogether. It is incredibly resource intensive, requires huge amounts of capital and it is very difficult to get traction.

It is why we haven’t seen a new video game console come to the mass market in so many years. It is just too hard to compete with the existing ecosystems of Xbox, Wii and Playstation. There are many game studios, but there are only three console manufacturers.

Owning Your Own Destiny

To put it in perspective – right now Facebook is merely a game playing on Apple, Google and Microsoft mobile devices. The big boys own the hardware ecosystem and the ultimate interface with the consumer. Facebook’s mobile fate is largely in their hands… much like Zynga’s fate was in Facebook’s hands.

They have to enter the hardware market and create their own ecosystem if they want to fortify their position as the leader in the social space. It is the only way to keep the scrappy little startups from constantly nipping at their heals, or avoid getting crushed by their larger rivals.

My predictions for 2013

1. Facebook Phone

We will surely see the introduction of the Facebook phone in 2013, but it won’t stop there.

2. Facebook TV

The current tech race is for the small screen in our pockets and the big screen in our homes. Television is a social experience by nature and Facebook has a unique opportunity to enhance it. A Facebook set top box would provide an entirely new way for Facebook to generate advertising revenue from brands and distribute social-enabled interactive video.

3. Facebook Payments

Supporting both of these efforts will be the introduction of a Facebook backed competitor to PayPal, Amazon Payments and Square. This new service will have hardware and software components that make it easier for consumers to pay for the items and services they discover through their social graph (and sponsored stories – of course).

It will also allow Facebook to collect incredibly valuable data about user purchases and behavior.

4. Facebook Storefront

The combination of software and propriety hardware in a controlled ecosystem would create a very defensible position for Facebook long term. The more information that Facebook has about you, the more they will be able to charge advertisers and manufacturers to reach you.

Ultimately Facebook will sell products directly to you, utilizing all of the information they have from your social graph and the purchases they process. They will compete directly with Amazon using a social-enabled recommendation engine.

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There is an all out war in Silicon Valley.

The giants all want your eyeballs, your data and the cash in your wallet.

Software will only take Facebook so far.

The question is will Facebook break into the hardware market with a solution as compelling as their current service?

Ted Murphy
In inspiration

Work with Your Hands

There is something magical about creating a physical object with your hands. I love the Interwebs as much as the next guy, but to be honest I feel more fulfilled when I produce a work of art or craft something from raw materials that I can hold and touch.

I have started working on a table for Tara. She wants to be able to look out over the lake when she is working from home. It will also serve as a dinner table for our little family when Zane is old enough to be in a high chair.

I am overbuilding it a bit. It is made of thick cedar lumber and will have a very heavy top. My goal is to make this a keepsake that will be in our family well into the future. I will post pics of the progress as I reach major milestones.

When was the last time you built something with your hands?

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Ted Murphy
In sales & marketing

The Worst Website Ever

I have been in search of the absolute worst website ever made for some time now…. and I have finally found it thanks to Dang. You have got to check out Lingscars.com. I don’t know how someone can even make something like this – I couldn’t replicate it if I tried. It hurts me to look at it. Please make Ling stop.

You have to visit the site for the full effect.. animations and all.

Ted Murphy
In business

The Robot Economy

The robots are coming. I am not talking about Terminators, Voltron, Johnny 5 or even Bender. I have a different definition of what a robot is and how they relate to our economy. My definition : Automated technology that replaces or significantly impacts jobs previously performed by humans. The robots are all around us… and they are coming for your job.

Some of my favorite robots:

  • The printing press – displaced scribes.
  • The inkjet printer – displaced printing press workers.
  • The 3D printer – soon to displace manufacturing jobs.
  • The ATM – displaced bank tellers.
  • Sunpass – displaced toll booth workers.
  • Flobee – displaced barbers (or at least tried to).
  • Netflix – displaced rental store employees.
  • Yelp – displaced the concierge and food critics.
  • eSurance iPhone App – displaced insurance adjustors.
  • Alice.com – displaced big box workers.
  • Animoto.com – displaced video editors

These are all incredible innovations, but one of the most intriguing robots out there is Amazon Mechanical Turk. It is a giant robot that displaces traditional human workers with crowdsourced human robots. It provides automation of workflow and distribution of specialized tasks, allowing companies to easily outsource jobs that would have previously been done by in-house labor. The companies who use Mechanical Turk don’t know who completes the task and they don’t care. It is just inputs and outputs.

This is not the Terminator scenario (yet). For the most part these robots are hardware and software designed to improve the world we live in and make businesses more efficient. But make no mistake – these robots are still deadly. One by one they are displacing jobs and automating tasks. You could be next.

Kill or Be Killed

The robots are constantly evolving. Every business model is a target and every jobs is on the line. You may think you are not at risk because you are an educated professional – you are dead wrong.

  • Ask my lawyer what he thinks about legalzoom.com
  • Ask my doctor what he thinks about webmd.com
  • Ask my designer he thinks about 99designs.
  • Ask my engineers what they think of eLance.
  • Ask a sales person what they think about e-commerce.

Robots and human robots are making things faster, cheeper and in many cases better. They are a huge factor in the global economy and effect hundreds of millions of jobs. They automate processes and replace millions of daily tasks previously performed by humans. They operate 24/7/365. They don’t eat. They don’t sleep. They are a tremendous threat to workers worldwide.

Even Bigger Opportunity

At the same time the robot economy is a huge opportunity. Robots are a product of innovation, which is both a job killer and a job creator. Those that innovate rule the world, those that do not innovate are doomed to be replaced by the robots.The jobs of the future are in robot creation and maintenance. Some might say there is a future in robot sales, but truth be told the best robots sell themselves.

Thriving in the Robot Economy

In order to succeed in the robot economy you require five things:

1. Creativity
This is your number one weapon in the robot economy. While robots can execute the tasks they are given, they don’t posses the creative skills and imagination of humans. People get tired of robots doing the same thing over and over again – they want to see something new. Your big crazy ideas are key… don’t stop dreaming!

2. Elegant Engineering
Most companies engineer for utility – but that is only 1/2 of the equation. Successful robots don’t just complete a task – they complete it with style and elegance. That is why Apple is currently the biggest company in the world. The robots they create are as sexy as they are useful.

 3. Speed
Robots move fast. If you want to surpass the current generation you need to move faster. You need to ideate, iterate and evolve. Remember, whatever robot you are building, someone else is trying to make a better one.
4. Teamwork
Robots are fast because they are able to perform several discreet tasks at the same time with precision. Those that are successful in the robot economy are able to do the same with their human resources.
5. Perseverance
Robots never tire. They complete the same tasks over and over again without compliant. If something fails they will retry to no end. You need the same dedication and perseverance in your own job.

Is this new world scary?

Hell yeah it is! But if you are reading this blog chances are you already know the robots are coming.

We are the visionaries. We destroy the old and create the new.We push the boundaries. We redefine what is possible. We don’t hate robots…. we love them. They touch our lives every day and we welcome the efficiencies they provide.

You have the skillsets you need to thrive in the robot economy… and help others by creating new jobs.

Go forth and create killer robots.

Like this post? Leave a comment : )-

 

Ted Murphy
In politics

Enter the Axe Man

Tonight I signed my absentee ballot. I was for Obama in 2008, but feel that the promise of hope and change simply wasn’t realized and the President isn’t on a path I can continue to support.

I am socially liberal and fiscally conservative. Frankly neither candidate is really inline with my ideals – and both candidates spew an incredible amount of double talk.

At the end of the day it all comes down to the national debt for me. It is the ultimate quantifiable index of our fiscal health as a nation. We are now $16.2 trillion in debt – up from $11.9 trillion just four years ago. The spending is out of control. There is no talk of serious cuts and even if there was the President’s actions over the past four years wouldn’t back up such rhetoric.

The reality is that our government is just too big, too slow and too bloated for the good of the citizens. Someone needs to come in and clean things up. We need a presidential “axe man” to kill the programs that Obama can’t or won’t. The government needs to cut back on all non-essential spending, just like our families and businesses have over the past few years. We are cutting back… but look at government spending. In 2008 we were spending $2,982B a year with a $458 annual deficit – we are now spending $3,795B a year with a $1,326B annual deficit.

Let’s be honest… nobody “likes” Romney.

I don’t – but I voted for him. He is a hard-ass, brass-tacks ball-buster with Frankenstein lightning bolts in his hair. I want him to come it, assess the situation, nuke the garbage and leave us with a lean, mean government so we can finally move forward. I don’t expect him to get re-elected, but I do expect him to balance the budget and invest our dollars wisely.

The axe man cometh. It is time for the U.S. Government to lose some weight.

Ted Murphy
In

Sad Viking

Yesterday I keynoted lunch at BarkWorld in Atlanta. During the presentation someone asked me for the URL of my blog. Frankly I was embarrassed to provide it. This thing is a bit out of date and needs some love. I am going to switch things up a bit and try to update the site more regularly moving forward. Expect to see a combination of long form content, photos and other things that make me happy.

Ted Murphy
In life

Blessed

Life is Good

Tara and I often reflect how blessed we are to be surrounded by such incredible family and friends. Through the years the special people in our lives have been with us as we have celebrated our successes, overcome our challenges, grown as individuals and bonded as a couple. We are all moving so fast that we often fail to slow down, breathe and take in just how blessed all of our lives really are.

Last night we invited a group of people to take one night to do just that. Thirty four of our close family and friends joined us in our backyard as the sun set over the lake at our very first dinner party.

We drew some inspiration from Outstanding in the Field, an incredible event that Tara and I attended in January. We created a single long table, hired chef Tony Adams of Big Wheel Provisions to create a selection of amazing natural foods, and had everyone bring a bottle of wine or craft beer. I lit the backyard with blue accents, and candles on each table provided a warm glow. Our guests were treated to smooth sounds of vocalist Asia Thompson (who I found using YouTube), great conversation and plenty of laughs.

This was a big production. It took us days to prepare and setup, but it had to be big. You see… this was no ordinary gathering of loved ones. It was the backdrop for a special announcement that Tara and I couldn’t be more excited about.

Tara is pregnant!

Before we sat down for our meal I led a champagne toast and shared the big news. Tara is due September 19th and we are overcome with joy (that…. and a little scared at the same time). This will be our first child of the human variety and the beginning of our own little family. We are truly blessed and are looking forward to becoming parents – we only hope we do as good of a job as our parents did.

Ted Murphy
In business, travel

The ROI of Being Awesome

On Thursday morning I woke up, cracked open my laptop and checked in for my 85th flight on Delta this year. This was no ordinary flight. This flight would put me over 125,000 miles on Delta in 2011 (the earth’s circumference is 24,901 miles) and into the elite Diamond Medallion frequent flyer program.

Hitting Diamond is bitter sweet in many ways. Sure, I should get upgraded on just about every flight I take next year, but it also means that I have spent a lot of time away from my family this year and wayyyyy too much time in a confined space. Perhaps I was slap happy from all the travel… but I decided to poke Delta on Twitter about my “Up in the Air” moment.

To be honest I didn’t expect anything from them. Delta is a great airline, but I wouldn’t exactly call them playful or over the top. My impression has always been that they are very corporate, buttoned up and professional. Their customer service is strong, but their brand personality has always felt bland compared to that of Jetblue or Southwest.

Showing the Love

When I walked up to the gate there seemed to be an awful lot of Delta employees crowded around the desk. The gate attendant came on the loud speaker and announced, “Ladies and gentleman I have a very special announcement. I would like to congratulate Mr. Edward Murphy for making Diamond Medallion status. Mr. Murphy we would like to present you with a token of our appreciation.” Whaaaaaa?!?!

I walked up to the desk and was greeted by a team of Delta employees. They presented me with a framed certificate and a special Delta bag. We took pictures and all of the employees shook my hand. The entire gate area was clapping and shouting. They then provided me with a private escort onto the plane.

Once on the plane (in first class) the passengers were high-fiving me as they passed by. Each flight attendant came by to personally thank me for my business. The pilot came on the PA and congratulated me as well. I was floored. I felt like a rockstar… I was tweeting and texting my friends like crazy.

When I landed I noticed that I had a voicemail from a number I didn’t recognize. I played the message and my jaw dropped. A Delta VP called me while I was in the air apologizing that he couldn’t be at the gate, thanking me for my business and giving me his personal phone number if I should ever need him. Freakin’ awesome.

The ROI of Being Awesome

The total hard cost of everything that Delta did to celebrate my special flight was probably about $50 (for the certificate, frame and bag). All the employees were already at work; so was the person manning their Twitter account. I figure I spend about $30,000 a year on flights and I am now a customer for life. Not a bad return on investment for a little extra effort. Not only did they win me over for life, but my tweets reached my 27k followers and I have a feeling at least some of them will be making a switch soon.

Employees Love to Delight

You could tell from the Delta employees that this is not something that Delta does every day… but they should. The employees were genuinely happy for me and excited to be celebrating the occasion with me. Not only was I thrilled with the experience, they were to. They were proud to be associated with a company that would do something so cool for a customer. Empowering employees to take care of customers truly delights both parties.

What Can Your Company Do?

What Delta did for me didn’t cost a lot of money. It didn’t require months of planning (this all went down in a matter of hours). What it did require was listening to their customers and moving quickly to show they care.