It’s rarely a good deal to invest much cash into technology when you can easily hire more actual people to do the job in a cost-effective way. Sometimes the low-tech solution is the easiest and best solution.
I got a kick out of today’s XKCD comic strip. (Chart: “How long can you work on making a routine task more efficient before you’re spending more time than you save?”) It reminds me a lot of a conversation I had last Friday with an entrepreneur who’s trying to automate some, but not all! of his information business.
See, “Allan” gets a lot of documents that are not so well standardized, puts their contents into a database, and essentially gets paid by his client companies to let them know when and where they–or their subsidiaries–are mentioned. (There’s more to it than that, but this is the relevant part right now.)
Continue reading “Is it worth it?”
Yeah, you got that whole 80/20 rule thing. 80% of what?
I’m a big believer in the 80-20 Rule. If you haven’t heard of this, it’s the idea that almost everything you do yields 80% of the benefit with the first 20% of effort. Similarly, you’ll find that 80% of your sales come from a 20% subset of your offerings. Stuff like that.
Sure, it’s a back-of-envelope rule of thumb sort of deal, but still a useful planning concept. (I love heuristics.)
On Monday, I blogged to the effect that non-software startup companies be satisfied with commercial off-the-shelf software that satisfies 80% of the functionality they require… because that’s so much cheaper than embarking on a new project when you are already hard up for cash.
Continue reading “80% of what?”