From The Blog

Third CODiE!

I’m in the air on Virgin America flying back to SFO from NYC.   I was in NYC  for the CODiE awards.  It was thrilling to win Jigsaw’s third CODiE on Tuesday night.   We won Best Online Business Directory and Sales Leads Service.   I think winning a CODiE is the best way to fire up a start-up’s technical team (other than an IPO).  Our tech team is really psyched – and I’m really proud of them.

I was asked to speak on a panel hosted by Henry Blodgett, CEO and Editor-in-Chief of BusinessInsider.com (Note: Henry is a great speaker and his Business  Insider kicks the dog doo out of TechCrunch.   I’m not just  saying this because Arrington and I are such “good” buddies.  Check it out and decide for yourself).  The panel was titled Information Wants to be Expensive.  Three companies that were identified as disrupting their industries were interviewed by Henry.  Here are the main points that I made to a room full of Information Industry executives  regarding how to disrupt (and avoid disruption):

–          Almost all information is becoming commoditized.  It will continue to get more transparent over time.  In other words – there will be relentless downward pressure on the price of information/data as it keeps moving closer and closer to free.

–          At Jigsaw we have always maintained that the eventual value isn’t in the data.  The eventual value is in understanding the change in the data.  Companies that do this best will win .  This is where the hockey puck is going and represents the vision behind our signature product Jigsaw Data Fusion.

–          Big information companies are often slow moving dinosaurs who lack innovation – and therefore get disrupted.  They need to read Clayton Christianson’s The Innovators Solution (sequel to his seminal work The Innovator’s Dilemma).  Note: the two books are MUST READS for every entrepreneur.

–          Those getting disrupted have three options:

  1. Buy the company that is disrupting
  2. Kill the company that is disrupting
  3. Form an alliance with the company that is disrupting

–          I pointed out our alliance with Dun & Bradstreet as a great example.  This has been a great partnership for both our companies and driven a lot of revenue.  They did it right by jumping in with both feet rather than dilly-dallying around.

–          I voiced my opinion that some companies can’t avoid getting disrupted.  Encyclopedia Britannica is a great example.  Wikipedia sucked when it first came out.  But… it got relentlessly better – and fast.  By the time Britannica could respond it was too late.  My nine year old son will never even know about Britannica (unless he reads about it in Wikipedia….)

Thinking about the subject after the fact I just have one simple thought: If you think you are getting disrupted rather than doing the disrupting you batter damn well exercise one of the above three options – and with alacrity!

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What The Heck is DaaS?

[Note: this was a post I wrote while CEO of Jigsaw]

DaaS – Data as a Service.  This post is all about DaaS, and how DaaS is going to transform the data model in exactly the same way that SaaS has transformed the software model.

First, let’s get really clear on how SaaS changed our mindsets.  Ten years ago companies that utilized software were in the business of procuring and managing software.   Companies had to first buy the software, then install it on one’s own servers, and finally manage that software over time.  Many companies realized that procuring and managing software wasn’t a core competency – but ten years ago there was no other choice.  Salesforce led the SaaS revolution by convincing companies that choosing to use software as a service was a better way to go.   Interestingly, Larry Ellison is well known for both dissing SaaS as a model that will never make money , and at the same time proclaiming that Oracle will eventually dominate many SaaS offerings.   My belief is that SaaS has fundamentally transformed the software model, and will continue to do so into the future.  All the big enterprise software companies are making huge bets on SaaS.

Take a look at how most companies deal with data today.  They spend a bunch of time and money buying lists, attending tradeshows, and having sales teams prospect for leads.  After companies procure their records the data goes into its container (example: Salesforce) – and it usually just sits there and rots.  Most SMB companies perform zero maintenance on their databases.  Large companies spend a ton of money on the maintenance of their data sets, as well as on procurement.  For companies of all sizes their customer and prospecting database is the lifeblood of their business.  (SaaS got initial traction with CRM for a reason!).   In short, companies spend a lot of time procuring and managing the records that drive the growth of their businesses.  Why would they want to – given a choice to consume data as a service?

My first prediction for this blog is that the data industry is about to undergo a DaaS disruption.  My intention is to make sure Jigsaw is leading the charge.

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