Rochelle Grayson

There has been a great deal of discussion about Amazon’s recent announcement and pricing for the Kindle 3. (And yes, I will probably be purchasing one!) Many are saying that the Kindle 3 may very well put an end to the eReader wars, with Kindle clearly on top. (The iPad appears to be in a category of its own.) I still think it’s too early to say. That said, Amazon has made an interesting business move and here’s why…

Much like Apple, Amazon is building an ecosystem around digital content and the Kindle eReader. But, unlike Apple, Amazon is betting on digital content not the hardware. It is well known that Apple makes more significant margins on hardware sales and not as much on iTunes or its Apps Store. (I haven’t seen any figures yet for the iBookstore.) Amazon seems to be following a different approach and is betting on its Kindle/Amazon Stores to be the revenue drivers. (I guess it is similar to the HP printer model, where profits are generated from the consumables and not the hardware.)

Given Amazon’s leadership position in the ecommerce and online shopping space this makes perfect sense and it will be interesting to see if there comes a time when the Kindle will even be sold at a loss (people are already saying that it’ll be $99 within the next year).

Both Amazon and Apple are playing to their strengths and I look forward to seeing how these business models pan out in the coming months! Will it be an Amazon vs. Apple world? What role might Google play with the launch of Google Editions? Can B&N or Kobo come from behind?

What I do know is that exciting times are ahead and I am thrilled to be a part of this amazing publishing transition!

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It’s official! After my last post about the challenging business environment in Vancouver, I am thrilled to announce that I have taken on the role of CEO for a top-notch startup called BookRiff! So, Vancouver, like it or not, you are stuck with me for a little more time

I am extremely excited by BookRiff because they have developed a solution to a very important (and fundamental) issue facing media today, namely: How can consumers use media as they wish, while also ensuring that content owners get paid?! BookRiff answers this question quite elegantly and simply.

Essentially, BookRiff is a technology platform that allows consumers to mix content from virtually any source–published books, websites, and their own files–to build custom compilations called Riffs. Think of Riffs as “Mixtapes of Text”. Each time a Riff is distributed, all content owners and contributors get paid. BookRiff’s technology manages the authoring, bundling, licensing, attribution, and payment details for each of these custom compilations. That’s pretty powerful!

To provide a little history, BookRiff was initially incubated within Vancouver-based D&M Publishers, one of Canada’s largest independent publishers, and was recently spun-off as an independent venture.  I have been “dating” the company for a couple of months and we mutually decided it was finally time to “go steady”! I am thrilled that President of D&M Publishers and founder of Bookriff, Mark Scott, has entrusted me to drive BookRiff’s future success! We already have some great partners and plans in place and we are building a phenomenal team! Do stay tuned for more exciting announcements in the very near future!

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Yesterday, I read a great post by Alex Samuel, “Even in a virtual world, where you live still matters“. Her thoughts were incredibly apropos because recently, I’ve been stewing about what the city of Vancouver has to offer business people like myself. As I stated almost two years ago, Vancouver has the potential to truly become a global business centre. I’m sitting on several municipal, regional, and industry Boards to play my part and what I hear over and over again  is that Vancouver lacks the senior management talent and financing/investment ecosystems to reach its full potential. And, I couldn’t agree more!

I’m often referred to as one the “Exotic Birds” here in Vancouver. (I’m not sure if that’s a good thing or not. ) I have lots of senior management, operations, finance and investment experience and the city would like to court more people like me. So, why aren’t there more people like me in Vancouver? Well, based on my experience, I think there needs to be a realignment of what it “costs” to be a global business player.

Recently, I’ve been approached by several local companies and organizations to join their teams, and while the opportunities have been very exciting, the conversations have come to a screeching halt (a little exaggerated) once dollars start being discussed. Now, I do understand that Vancouver isn’t NY, San Francisco or Toronto, but why am I consistently presented with compensation packages that equate to what I earned 10 years ago?! (And, this is not to point the finger at any one Vancouver company; this has happened numerous times.) At the same time, I’m being heavily courted by companies in other cities that are offering packages that are 2-3 times higher.

I really want to stay in Vancouver! But, as a business person, I am trained to balance opportunities with maximizing revenues. And, that’s exactly what these companies want me to do, once hired. So, why would I act any differently when it comes to my own earning potential. Now, I am not completely mercenary. (Frankly, if I were, I would be much richer and definitely NOT living in Vancouver.)

So, where does that leave us… well, I would like to see a shift in valuing those very skills that seem to be lacking here.  Right now, we aren’t raising the bar to make Vancouver business opportunities attractive on a global scale! (To this point, I have spoken with at least a dozen phenomenal/qualified/ambitious colleagues in the past two weeks and we all joke that we’ll meet at YVR on our way to companies that do value us.)

Vancouver did a fabulous job raising the bar for the Olympics and for two weeks it truly felt like a global city! Now, we need to take that same energy and investment to make it become a world-class business environment! I’m not leaving, yet…but, I am putting the city on notice!

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Yeah, today is Ada Lovelace Day! And, that means that for almost 50 hours (think of the entire world), we are paying tribute to phenomenal women in science and technology! Quite frankly, it’s a real shame that we only focus on this topic for 50 hours because I’m sure the kudos could go on and on!

That said, I’d like to honor two women in science and technology! As a half African-American, half Puerto Rican woman in technology, I tried to find someone similar to me, but that seemed to be asking for just a bit too much So, I decided that I’d still honor my heritage and break it up into two extremely honorable mentions!

The first woman I would like to highlight is African-American Valerie Thomas! Valerie Thomas received a patent in 1980 for inventing an illusion transmitter. And why should you care?! Well, this “futuristic” invention extended the idea of TV to having 3D projections appear as though they were right in your living room! For any of you who were at CES or watched the movie Avatar, I’m sure you can understand the impact Valerie’s patent may have on our future media consumption and experiences. All I can say is that I am in complete awe of Valerie’s foresight, intelligence, curiosity and achievements!
Congratulations, Valerie, for being such a great visionary!

The second woman I’d like to celebrate is Puerto Rican Olga D. González-Sanabria! Olga played an instrumental role in the development of the “Long Cycle-Life Nickel-Hydrogen Batteries”, which helps enable the International Space Station power system. As someone who watches the ISS, whenever it flies over Vancouver, I am once again humbled by such an achievement! Muchas, muchas gracias, Olga, for your vision, intelligence and commitment to exploration, on so many fronts!!!

What I do find interesting is that both women spent most of their careers at NASA and excelled there. Hmmm…something to ponder!!

Clearly, we’ve come a long way, but we still have much further to go! I just read a New York Times article today stating that women continue to face cultural biases in science and math fields.

Nevertheless, please join me in truly honoring and celebrating Olga and Valerie (neither of whom, for the record, do I personally know ) There are literally millions of women who have paved the paths and who inspire me to continue my journey! I am extremely grateful to all of you! Many Thanks and Muchas Gracias!!

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I just read this interesting MediaPost article about consumer trends for consumer packaged goods and wondered how these food trends translate to the games space?

Trust
Players are looking for game publishers they can trust! Of course, they can always go with the tried-and-true, but they may also be open to trying out new publishers and indie games, especially if the price is right! For existing big players, now is the time to solidify your relationship with your dedicated and hard core fans. Find ways to make them feel like a VIP. And, for indie developers, now is the time to launch those innovative games at the right price…which brings me to the next point…

Control
As the MediaPost article states,”People are continuing — and in some cases, intensifying — their efforts to save money and cut costs.” Players are looking much more closely at getting the biggest bang for their buck. So, it’s up to game developers and publishers to deliver this promise! Find ways for your players to feel like they’re getting a true bargain!

Simplicity
As part of the trend to control costs, people are looking to simplify their lives. This recession may, in fact, provide a great opportunity for online and mobile games. These games can be much simpler (and cheaper to develop) than their console counterparts. They are also much easier to distribute and deliver. There you have it, simplicity in game development, game-play, as well as delivery. Who’da thunk?! Start thinking about what you can do in these markets. If you don’t, you risk the chance of losing traction in players’ minds, especially in some of these emerging (North American ) markets.

Playfulness
Do not focus on simplicity at the cost of game-play! Players still want compelling and fun games! As the MediaPost article states, “People are looking to up the fun factor in their lives”. So, give them more fun! And, be creative in how you increase the fun factor! It can’t simply be more of the same. Playfulness should include finding fun and entertaining things in unexpected ways. Right now, creativity is more than King, it’s God!

Trading down, up and over
To make every dollar go further, players are accepting trade-offs. Whether it’s “tricking” themselves into thinking that spending smaller amounts makes a purchase more attractive or just realizing that they really don’t need to buy only AAA titles, players are now exploring and willing to try out new (and cheaper) titles. Make it worth their while to try your game and surprise them! If you do want them to pay more for your game, make sure there is a premium experience to go along with the premium price tag!

If you can successfully translate the above trends into your game, you just might have a recession winner! No guarantees, but you’ll definitely be closer to aligning yourself with those consumer purchase behaviors we’re seeing at ALL levels.

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Happy Labor Day! Today is the last day of summer and now, it’s time to get back to business as the “New Year” begins. I’m re-reading a few books/posts as I prepare for my next venture (yes, there is something incubating and I’ll report back in a few weeks or so )

I am finding some interesting (and unsettling) discussions about “old” leaders/entrepreneurs. On the interesting side, there was a post in Techncrunch this morning about the benefits of older entrepreneur leaders, and I was also impressed with Jay-Z’s recent interview on Bill Maher, especially in answering why an “old” man (40) like him is still successful in a industry that’s all about youth. On the unsettling side, I do get a sense that a quote in Seth Godin’s, Tribes, best describes what I sometimes hear/sense from younger entrepreneurs:

…some people admire the new and stylish far more than they respect the proven state of affairs…As a result, new ways of doing things, new jobs, new opportunities, and new faces become ever more important.

Well, technically, I now fall into the “old” category! (Although, thanks to my parents, I’m told I look younger ) Am I one of those “old, stodgy, outdated” leaders/entrepreneurs?! I’ve always said:

I’m a Gen Y in a Gen X body! I’ve always been a change agent and have even been too early to a market.

So, what makes me and my “older” colleagues successful in industries that seem to value youth?! I would argue that it is a combination of curiosity, flexibility, AND experience allowing us to have a unique perspective, as well as, partnering with 20-somethings who have the energy, time, and market insight to launch new and sustainable ideas!

Perhaps, I’m only saying this because I’m 40. If I were 28, I might be disagreeing with this argument. There are still a lot of amazing opportunities out there and I plan to bring ALL of my experience (and flashiness ) to every endeavor I’m part of. I’ll be sure to keep you posted…

Happy New Year!

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With the global financial markets in turmoil, valuations are on everyone’s mind these days: financial valuations, market caps, brand valuations, etc. Today, I read a great article about the burst of the “Brand Bubble” and the impact this will have on brand companies’ intangible assets. Brand valuation is a concept with broad corporate acceptance and many of us are quite familiar with it. However, I’d like to throw out a new valuation model called Social Capital Value Add (SCVA).

For the past month, I’ve been conversing with Michael Cayley about his new valuation model that goes beyond Brand Valuation and explores the value of Social Capital. There is a sociology truism that the strength of the network lies in its weakest ties. Corporations with consumer-facing brands need to start looking at, evaluating (hopefully, even financially valuing) and engaging with their Social Capital, especially as consumers become more powerful in the two-way Brand conversation.

We have not figured out all the exact details of the financial model for this new metric. But, I do know that a Social Capital Valuation Model will be important to the future growth of most companies and there are many companies already recognizing this, e.g. MTV, Dell, Procter & Gamble, Monster, Comcast, CNN and several others. I’m excited to be working with companies that recognize this fundamental shift in brand strategy and I’m also thrilled to be part of an emerging team of thought leaders figuring these issues out!

If you have any related thoughts, research or are simply interested in being part of this distributed, virtual think tank, do send me a note!

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Today, I read a great analysis of the Media industry by Paul Sweeting that rang so true! Here’s what Paul said:

On the Web, value is not created primarily by either content or distribution. Users create value out of content through the use of tools that enable them to do something with the content, whether it’s to move it, share it, reformat it, store it, discover it, mash it up or embed it. What the media companies most sorely lack is not sufficient content or adequate distribution but a workable mechanism for capturing a fair share of the value users are creating for themselves. Ultimately, media companies need to become not distributors or content owners but enablers.

At Donat Group, we often have this conversation with media clients — both large and small. It is always interesting to propose a scenario to them in which neither the content nor the distribution have significant value and to see where the conversation meanders. When we present our model of Audience Engagement Value, most clients are initially quite surprised. (I know this sounds like B-School/Corporate-speak, but bear with me ) What this all boils down to is the fact that today’s audiences (however you define “audiences”) want to do something with content — theirs, yours, it doesn’t really matter.

So, the real questions on the table are: What is that “something” you’re going to let them do?! And, is there perceived value to them in doing that?!

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I just read a very interesting analysis by Shelly Palmer about Margins vs. Ratings and the Future of TV. Shelly makes some great points and looks to the past to better understand the future. As a business person, I find such articles really thought-provoking because they provide an important reminder of the fine balance between business goals and creativity, especially as these pertain to entertainment.

Starting tomorrow, I will be holding several off-site strategic planning sessions for my company and I’m really looking forward to hearing the creative ideas from my staff! Clearly, I want to my company to succeed financially, and at the same time, I want to foster an environment of extreme creativity and exploration! It’s been proven time and time again that without a strong creative vision, a sustainable business model is hard to achieve.

So, it’s time for me to put the “how” aside for a few days and start thinking about the “implausible”! I once worked for a president, who asked us all to be BODACIOUS in our goals! I really like that word and I think I just might borrow it

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Last week, I was interviewed by the Vancouver Province for my thoughts on the Vancouver Tech scene. They wrote up a great article (and there’s even a nice picture of me ).

However, beyond what’s mentioned in the article, I firmly believe Vancouver has the huge potential of becoming a major vortex for Digital Media and naturally, technology is an essential component of that! With its unique combination of technology, culture and entertainment (games, film & TV), Vancouver has the talent and expertise to bring all these industries under one magnificent umbrella and really position itself as the Digital Media center of the future!

There are lots of people contributing to this vision and all I can say is that it’s an exciting time to be part of this phenomenal Vancouver team! I’m doing my part to make this happen and I truly look forward to seeing this vision realized!! Stay tuned…

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