Monday, April 5th, 2004
I’m going to spend the next week in our Budapest office brainstorming and having fun. At night, we’ll be eating lots of pig crackling, radishes, goose liver, and stuffed cabbage. Maybe some pictures here if we’re lucky.
If all goes well, we’ll soon have a US number phone for Blogads East, which I’ll post here. I’ll be in the air for the next 24 hours, so in the event of an emergency, please be sure to write info at blogads.com. For the flight, I’m taking along six Simenon detective stories checked out from the library. Here’s the Budapest weather.
Update: The number here, thanks to Vonage, 646 827 9320… which is a local call for New Yorkers, I believe.
At the airport, I bought Clayton Christensen’s latest tome: The innovator’s solution. Lots of case studies, lots of pithy insights.
— “three quarters of the money spent in product deefvelopment invemtnts results in products that do not succeed commercially.”
— “the general rule is that companies will prosper when they are integrated across interfaces in the value chain where performance, however it is defined at that point, is not good enough relative to what customers require at the next stage of value addition.”
— “a los cost strategy works only as long as there are higher-cost competitors left in the market.”
— “a company that finds itself in a more-than-good-enough circumstance simply can’t win: either disruption will steal its markets, or commoditization will steal its profits.”
— “when modularity and commoditization cause attractive profits to disappear at once stage in the value chain, the opportunity to earn attractive profits with proprietary products will usually emerge at an adjacent stage.”
— ” as companies upgrade their products and services to capture more attractive customers in premium tiers of their markets, they often dadd overhead cost. As a result, gross margins that at one point were quite attractive will seem unattractive at a later point.”
— “disruptive innovation creates a whole new value network. The new cunsumers typically purchase the product through new channels and use the product in new venues.”
We tried to get into the Indian restaurant on Dob utca last night, but it was packed. Good for them, on a Tuesday night, but bad for us. So we walked up the street to the Feszek Klub — an old club for artists. The two hundred dishes menu, filled with prices like Ft 942 and Ft 1177, is gone. Now just 20 dishes, all rounded to the nearest Ft 100. I had the excellent pig’s knuckle.