ways to track people or cell phones | My Blog


Luigi Cappel:

I have often blogged about devices and apps to help locate people who have conditions that could see them become disoriented, for example people who suffer from diabetes.

I have blogged a lot about tracking devices like bracelets, watches and other devices containing GPS.

This one on my SoLoMo Consulting page talks about using the free apps that often come with your Smartphone or are in many cases a free download. These apps like Find My iPhone are typically designed for if you misplace your mobile, or if you misplace it, however they can easily be used (with agreement) to locate your missing teenager, family member or other person you have a close relationship with.

When we had the earthquake in Christchurch in 2011, one of the very common stories I heard was about families that were separated and the angst when people couldn’t locate their partners or family members. This type of app is a ready made solution without having to purchase any other technology. Often in a situation like this, people can become disoriented and may not be able to easily advise others where they are. These apps will show their exact location on a map. What a great tool for Search & Rescue in emergencies, even looking for people underneath rubble, if their mobile still works.

Generally most people are never more than 20 feet away from their mobiles according to recent research. Have you set up an app like this on your mobile? Why not give the URL and password to your close ones. It could be the best 5 minutes investment of your time ever.

For more info on devices and apps for tracking people, check out some of my other blogs here and  here.

Originally posted on SoLoMo Consulting:

See on Scoop.itLocation Is Everywhere

Cell phone GPS tracking isn’t illegal. You can see where everyone is by knowing their number here http://t.co/LUj8hYU7c9

Luigi Cappel‘s insight:

This is a quick and important read for anyone that doesn’t have smartphone tracking set up on the mobile.

Huge numbers of mobiles are lost or stolen every day, but the siple addition of an app can mean that you can locate it. Interestingly it doesn’t include the app I use, which is Find my iPhone. It not only allows me to locate it, but can wipe all data from it and make it unusable as well as set off a loud noise.

The other valuable thing is, as it says in this quick and easy to read story, is being able to find someone you are close to, who is missing, hasn’t turned up where you expected them. If you…

View original 255 more words

Who Is Buying Your Personal Information and the Internet of Things?


Who owns your personal information? Who gives companies the right to collect data about you, your family, your friends, your activities, where you live, what you eat, drink, your health, how you travel? Somewhere along the line you probably did, because you didn’t read, or understand the fine print when you signed up for an application, an email newsletter, a loyalty card, or you aren’t worried about your privacy.

There has been much talk about the NSA, and big data monitoring systems in most countries around the world designed to protect us all from terrorism. There has been a lot of talk about how privacy is being eroded with social media. Many of us have the philosophy that if we don’t do anything wrong, we have nothing to hide. But who else is collecting, buying and selling personal information about you?

FuturistA recent story in The Futurist called ‘Connecting with our Connected World captured my attention, particularly when it outlined, from a Wall Street Journal article,  apparently fairly common knowledge, that many retail stores track personal shopping habits using loyalty cards and then resell the data to marketers. The Wall Street Journal article ‘confirmed’ that this same data is now being purchased by insurance companies for the purpose of setting premiums and investigating claims.

With the Internet of Things (IoT), we are now being encouraged to buy fridges with built in bar code readers and wireless connectivity, so that we can scan items we use and feed them to our shopping list. Many of us now have grocery applications, such as the Countdown app, which I have blogged about before in my SoLoMo Consulting blog.These apps monitor what you buy, suggest specials, recipes and even navigate you up and down the aisles of your nearest supermarket so you don’t have to backtrack for things you forgot.

As Richard Yonck of Intelligent Future LLC in Seattle points out in The Futurist, “the rate at which a household consumes sugar, salt, tobacco and alcohol would potentially be an open book.” What could your health insurer infer from that?

It names them

It names them

Combine the information from your mobile apps that know your location, where you have given permission (which is probably half of the apps you use today), your climate control, light controls (that suggest you might be home, or not), fitness apps, social media (freely searchable with tools like Facebook Graph like the example which names people who like Edam cheese,) the direction Google and Apple are heading, to be able to predict what services you may want next based on your context, profile, time and location, your life is an open book today.

The problem with all this big data that we are ‘willingly’ sharing, is that we really don’t know what we are agreeing to or what the data is being used for. I don’t believe we have adequate laws nationally or internationally to protect us from abuse of this data by any agency, business, government department, insurance company, utility company, finance company, the list is infinite.

According to a story in The Public Herald it’s pretty much a free for all. For example they say:

  • Experion sells data updated weekly on new parents, new homeowners and other new event life triggers.
  • Have a read of what information Epsilon sells in this PDF. Who reads Science Fiction novels? Ever wondered why your phone keeps ringing with charities asking for donations? They buy lists.
  • Back to the Public Herald which says that Disney sells data including who bought what, the age and gender of the children, age and occupation of the people who purchased from them and more.

These are just scratching the surface. It isn’t necessarily all bad, the problem is that there doesn’t appear to be any authority tracking who shares what information with whom. The issues come down to informed consent. When you sign a form, enter a competition online with an attractive prize and you click, ‘yes, you can share my information with partners who may have items of interest to me’ perhaps because you think you might have a higher chance of winning the prize, you are losing control of your data.

There are laws designed to protect us from spam, but we often sign away rights without understanding the implications. Companies selling our data will argue that they have our approval to use and share our information. The flow of data will become so convoluted that it will become impossible to know who has what. Big Data companies will consolidate this data also with our ‘implied’ approval.

Governments need to be thinking about this now, if it is not already too late. Of course they arguably need the data as well in order to provide quality health, education and other services, including planning future smart cities. They need as much data as possible, although they don’t in many cases need the granular level down to individual people.

So as a footnote, think about all the cool Internet of Things you are buying over the next couple of years, like exercise devices, remote controlled security cameras and home access, climate control, sleep and snoring monitors, lighting, car telematics, electronic ticketing for public transport and much more, weigh up the cool with potential risk and consider that if legitimate organizations can access your data, so potentially can people wanting to commit crimes. It is already known that burglars steal product to order based on what they find on social media apps like Facebook (had a great weekend on the jet ski and now I’m off to Fiji for a couple of weeks and I’m putting the dogs in a kennel).

7 Stories about Using GPS to Recover Stolen Mobiles


GPS is playing a major part in our lives these days and it is a brilliant tool to protect us from crime, or at the very least recover things that have been stolen and catch the people who stole them. In the USA 113 mobiles are stolen EVERY MINUTE and most of them are sold overseas. In many areas including New Zealand, iPhones are as good as cash for someone wanting to make a quick drug buy. 

BakkumOften we don’t realise how easy it is, despite the fact that we pretty much all have one or more GPS and location enabled devices on us. My iPhone and iPad both have SIM cards which are on all the time. If either of them went missing, I can trace them, create an audible tone to help me or police locate them and I can wipe them forever so they can’t be reused if someone stole them. We all use GPS apps of some sort, even if it is just the mapping application on our phone. We just don’t think about other ways that we can use this technology, or how the tech can be used to catch people who want to deprive us of our property and our safety.

The good news is that when people are smart and use an application like Find My iPhone, if not the thieves, then the receivers can be caught and often Police find a lot more than just your mobile. Let’s not make it easy for them.

If I went missing and I had my mobile on me, I could be found. Of course the Police would need a warrant to achieve that, but bottom line is they could. I also check in with Foursquare and other applications, so often my last known location can also be pinpointed.

If you follow my blog, you’ll know I love stories where GPS catches people in the act of, or following a crime. Here are a few recents.

  1. A drive by shooter gets caught within half an hour, by the GPS in his rental car in Providence R.I.
  2. Aspen Police leave bikes as bait with GPS trackers on the ready.
  3. Find my iPhone helps recover stolen iPad and bottle of whisky, 3 people arrested in Scottburgh.
  4. Utah Police recover $200,000 worth of tequila using the GPS in the stolen truck. 
  5. Here are 3 more stories from Techtrace, a company that sells an app that helps you protect your data and recover your mobile.

Blame the Technology and Australia


Continuing my search into what happened at Whitcoulls and Borders and  generally what’s going on with New Zealand retailers I am finding no surprises, which is a real worry. Two words come up a lot. Technology and Australia. I know a little of both. I live for technology and have trained many retailers over the years (including some who were already millionaires) and while the technology has changed, the principles haven’t. More on this to come.

Australia and New Zealand

As to Australia. In the 90’s many Australasian retailers who had New Zealand operated subsidiary chains based in New Zealand, decided to do away with local country management, local buyers etc.  and to save lots of money by treating their NZ shops as Australian branches. I guess they considered New Zealand as a slightly bigger Tasmania. Not huge, but worth having, especially if they didn’t put much effort into senior staffing  resources.

When performance decreased they blamed the economy, they said that NZ was just an over inflated state and it was always going to be that way, which was how they justified reducing local resources in the first place. The fact is while we may have a lot in common, we are not the same. We are made up of different cultures and history and have subtle differences in our lifestyles. Subtle enough that you can’t treat NZ stores the same as Australian stores and expect the same result.

Similar scenarios happened in many cases with the decades of American Globalisation. It’s funny really that America wanted to change Japan and the rest of Asia Pacific while Japan wanted to change the west. I well remember having discussions with senior management of Casio in Tokyo and Hamura about improving the software on their cash registers. One of the issues was that they hadn’t allowed for people pressing buttons in the wrong sequence. Have you ever been in a retail store when the ECR (Cash Register) is bleeping loud noises no matter what buttons are pushed and the stress it caused the cashier? Their initial response was “They must use the ECR in the right way or you should find better customers”. We ended up beta testing their software in NZ and Australia first and then getting Japan to tweak their software. That was one of the initiatives that helped us get 70% market share in the ECR market in NZ and helped Casio increase theirs around the world. But then of course the company I worked for was sold and I along with my boss and several other great people were made redundant despite the fact that we were doing really well, but because they thought we were earning too much. I’d love to know what their market share is in NZ now. I know it isn’t 70%. Anyway I’m going off on a tangent.

The big thing I noticed in the NZ stores was inventory management. They were carrying a lot of books that I wouldn’t think anyone would buy other than as a joke. I went back to Borders a week ago to jot some of the names down, but it looks like they went in the $1, $2, $5 sale and were gone. They had many dated books especially computing which must have been in store for several years, technical books on how to use software that almost no one has used in the last 5 years.

From what I’ve been told, someone automated the purchasing software to replace books that had sold, so for example if a particular book sold really well, say 5,000 copies, the system would replace with another 5,000 copies. Well there goes the profit from the first lot.

One of the things that makes New Zealand different is our ethnic communities. All over New Zealand, but particularly in Auckland we have clusters of ethnic communities; Chinese, Korean, South African, Indian, Pacific Islanders and more. Brands who fail to take that into consideration waste massive levels of stock by having the wrong product in the wrong locations, which then becomes shop soiled and potentially unsaleable.

Inventory needs to be managed locally by category managers who understand and are at the leading edge of their category and who understand their local market. They need to know weekly what is going on and understand who their customers are and what they are buying. Some books date more quickly than others and need to be moved on quickly, others will hold their value longer, but will still have a rapid half life.

In my previous blog about Whitcoulls and Borders I wrote about how they could follow the example of Amazon and know what their individual repeat customers were buying and therefore their interests and could recommend books to them. Amazon continue to prove that people in NZ will buy based on recommendations along the lines of “You bought these 3 books, other people who bought the same books also enjoyed the following titles”. Not only do we often buy them, but we also pay massive freight costs to get them here, at the same time as local book retailers are discounting stock that people aren’t buying. How smart is that?

One good way of dealing with this is using Business Analytics or Business Intelligence tools such as BIonaMAP, soon to be launched by New Zealand geospatial solution provider, GeoSmart. Fortunately for retail chains, this product will support both Australia and New Zealand, so users can have visibility over both countries.

BIonaMAP

Creating jobs with FIT for renewable energy


So how about this picture. If the Government gives us interest free loans to install solar panels on roofs, we could reduce the need for expanding coal and oil based electricity, whilst maintaining our geothermal and hydro production.

The Government would set up Feed In Tariffs enabling power companies to purchase spare power units to feed in to the grid to supplement its own resources and those of the community as and when required.

The technology would include smart meters where appliances and power consumption may be monitored by the consumer This is already available in NZ from companies such as SmartNow. This is very important because it educates consumers of all ages  as to the impact of each household appliance.

Smart Meter

You would be able to monitor this on your SmartPhone as well as the touch screen in your home, perhaps even control appliances remotely. Now you will know if you turn your 3 TV’s off instead of having them on stand by, exactly how much energy and cost you are saving.

Many of our household devices are developing sufficient intelligence to be turned on and off remotely. This can apply to anything from your stove or microwave, to your TV Set Top Box, washing machine, heating etc.

Kiwis are very clever. With a little encouragement and support, we could have people coming up with new technologies for smoothing power, sharing and reticulating, designing solar panels that look good and work more efficiently in our environment.

Whole new industries and thousands of jobs would come out of this. Educators, estimators, designers, manufacturers, installers, inspectors, service people, finance companies, new boutique electrical companies, to name a few.

New Zealand is an island and we can be potentially isolated from gas and fossil fuels, especially if the worst happened and a serious war broke out somewhere on the planet.

Do you think that in the Middle East, Europe or USA, they would be saying, oh don’t forget New Zealand, we must set aside x number of tonnes of crude for our antipodean mates down under? But I digress. We are smart people and I think we could create not only some serious domestic growth, but our inventions spawned from this adventure could also contribute to some huge potential export revenue through the innovations that we would produce.

We also made a commitment to being clean and green. Digging up coal and gas doesn’t exactly honor that commitment, although I agree we need the money. Maybe we can’t do it with solar and wind alone, but if we could produce even half of our requirements from our roofs whilst at the same time reducing power consumption through smarter use and education, wouldn’t that be cool?

We could also lead in international design and R & D, with companies like Fisher & Paykel in the development of new technologies that burn much less power, including heating, consumer electronics and more. We need revival of new companies like Gallagher, Rakon and Taits, which have shown that we can be world leaders in technology. Those number 8 fencing wire companies we are so proud of.

The problem is that all of this needs to start with the politicians and all I seem to hear from them is that the coal, oil and gas is worth a lot of money and we should sell them. OK, if we need to do that because New Zealand is insolvent, then do it, but put the money earned into renewables, try to make ourselves self sufficient and then develop export revenues by exporting the technologies we built and developed locally, exploiting our IP. Kiwis are smart people.

Come on National, Labour and Green Parties, lets take a long term view beyond the next election. Change only happens when you do something different. Make it happen and you can have the credit if that is what drives your ambitions, but lets show our leadership.

I didn’t mention tourism, but I don’t think people really buy into clean green anymore. Lets show them we can be clean and green and beautiful and then generate export revenue out of our new skills and industries.

As a footnote, a quote by Farrell J. January 2011 on the Ontario FIT which started in 2009 from New Rules Project:

Ontario’s clean energy program encourages local ownership and distributed generation, in part to broaden support for renewable energy and in part to capture the increased economic impact generated from local ownership.

The domestic content requirement has already resulted in the promise of 43,000 jobs and dozens of new manufacturing plants to support the 5,000 MW of new clean energy.

As a footnote, imagine if the panel didn’t have to be on your roof, but could be on every one of your windows and you could see through it? That’s what MIT is hoping for. 

What FIT’s could do for NZ


Having teased the concept of Feed in Tariffs over the last few blogs  I’d like to get a bit more detailed. So in NZ the government has provided subsidies for roofing insulation, especially for older houses that were not built as efficiently from an energy perspective.

That is good in that it may reduce the need for heating, which is the biggest consumer of energy. A large percentage of energy sources pollute the atmosphere, damage the ozone layer and produce carbon waste. I’ve explored the fact that solar power is a renewable source that produces very little waste, mainly in manufacturing, packaging and installation, marginal issues.

The ideal scenario for me is interest free loans from the Government to cover the cost of purchase and installation of solar panel systems for both domestic and business. There are some lessons overseas where businesses have exploited the opportunities for subsidies and rebates and in some cases they have benefited from the interest free finance and feed in tariffs more than the public. This needs to be considered, but even where that happens, they are still producing energy in forms preferable to oil and coal and other non renewable or potentially dangerous sources.

So the basic idea is that consumers can get an interest free loan to have solar panels and related equipment installed in their homes. The systems include meters and technology that allows people to understand how electricity is being used in their homes, where is it being wasted. They can use the power they generate for free (keeping in mind they do have a long term loan to repay) and when they have excess power, they can sell it to the power companies for a tariff that is mutually agreeable.

A key point that I have raised through out this discussion is redundancy in the case of emergencies. Every time we have had a major emergency people have been without power. As recently as the aftershocks in Christchurch yesterday 17 April 2011, parts of Christchurch were without power for a couple of hours, but previously it has been days and weeks.

UK has had local FIT’s for a couple of years and other countries have had them for several years. There have been many benefits from this. One of the big ones that people don’t automatically think about is job creation. This happens at all levels. Industries to benefit include finance, manufacturing, installation, inspection, education and more. One of the great things about not being first in the industry, we can get our clever Kiwi inventors coming up with new technologies and inventions which will find a ready export market. Many new industries will spawn from this as new developments are made. Mobile technologies will allow control of what appliances are active from your smart phone. You’ll be able to turn off non essential appliances when you are at work, on holiday etc, whilst still monitoring what is going on and being able to turn the hot water back on while you are on your way home.

For business there is the rent a roof program where people can generate income from their roof, while someone else looks after generating the power and selling it into the grid and to the building occupier. This is extremely scalable. In fact in the UK, many roofs rented by power companies are domestic!

Rented roof

Electricity, Earthquakes and other Disasters


So in this series motivated by the Canterbury Earthquakes and particularly Christchurch, I have looked at how prepared we were and what personal lessons we could take away. I asked is it now business as usual, have we gone from maybe it could happen to me, to phew, glad that’s over and we’re good for my lifetime?

 

I don’t think the people of Dannevirke thought so this week when the 5.1 hit there. But then, were they planning on getting prepared before that? Possibly not. Are Wellington people still watching?

I talked about putting together an emergency kit and all the things that Civil Defence recommend you should have both for in the home as well as a kit that you can have ready to throw in the car last minute. This could be useful for so many things, not just earthquakes. In NZ and Australia fires, floods, volcanoes are just a few reasons for people to have to bail in a hurry. If you prepare a getaway kit and never ever need it, that’s great:)

I had a look at community issues and remembering or meeting your neighbors. This is really only a starting point and I want to come back to this in future because once we get over the physical wounds, the things we can see, we are going to have to deal with the psychological outcome. I believe we are going to be dealing with a whole city suffering from PTSS. We are starting to see small examples such as when people are visiting areas of Christchurch that have been closed to them. The tears are good and the visits will help with acknowledgement of the situation and belief in the recovery, but there are still people n0t able to get their cars back let alone go back to their places of work. There are still buildings being torn down.

There are kids who won’t sleep in their own rooms at night. There is an underlying emotional distress of an order that NZ has never had to deal with before. People will be saying I’m OK Jack, but many of them are not. I have some ideas on this, but it will be a separate blog.

I started on the insurance saga, this was before the EQC story and the AMI bailout.  I don’t know about you but I’m getting concerned about banks and insurance companies getting massive bailouts.

They are always talking about the risks they take in consumers, but it seems like perhaps it is the people taking the risks. Should we pay premiums to insurance companies, trusting that they will re-insure and spread their risk and spend a minimum of our premiums on sharing profit amongst employees and shareholder dividends, at least until after they know they have the necessary reserves for major disasters.

Insurance is like playing poker machines or lotto, it is about risk. If a gambler blows their rent money at the casino, does the Government bail them out? Rhetorical question. But when the banks get carried away and over commit themselves to loans that don’t stack up, when insurance companies commit themselves to risk they can’t cover and the government bails them out, it isn’t some nice friendly uncle we’re talking about. You and I are the Government. That money comes from our taxes. It means more pressure on minor things in our community such as education, health, taxes.

So I was wondering, if an insurance company has failed in managing its risk, is it in fact guilty of trading while insolvent? Should the $500 million bailout go to them, or should it go to a liquidator to share amongst the people who bought policies from them in good faith? How much of the bailout goes to the people waiting on insurance payouts? Would you like an answer?

I wrote about the lessons we learned about the telecommunications companies and I have to say I think the telcos did a great job. There are things you can do as well to be able to continue to communicate without power to run or charge your phones. Have you changed anything since then?

Today I wanted to write about electricity, but I’m at 681 words already and there is a fair bit I’d like to stay, so if you’re interested in my thoughts on electricity and emergencies, you could subscribe to my RSS feed or bookmark this page. I think you might find what I have learned interesting.

I also want to write about green power and particularly about solar power schemes, following on from my blog a couple of years ago on Feed-in Tariffs. I’ve learned a little since then and I’m not sure the Government has. It was great to see Bunny McDiarmid from Greenpeace on TV1’s Close Up last night talking about the Petrobas oil exploration and the tension between that and our ‘renewable energy policies’. But I have to wonder where the Green Party is right now. This is a huge opportunity for them in election year to discuss solar power opportunities which are really starting to prove effective in many countries around the world through FIT programs. More on this in one of my next blogs…………….

In the meantime, here’s a video that explains the installation of a PV system on a house in Puget Sound.

How Did the Telco’s Do in the Christchurch Earthquake


So when the quake hit Christchurch, what happened to telecommunications? Naturally in an emergency people need to communicate and there were some interesting situations. In an earlier blog I wrote about your emergency kit. So here are some interesting lessons from Christchurch and any other emergency situation:

Without electricity portable phones don’t work. If your phone requires a transmitter from the junction box to your portable, it’s not going to be transmitting anything. Many people still had copper phone lines even though they didn’t have electricity. Analogue phones still worked and Telecom in my opinion did an awesome job getting people to donate their old phones and shipping them down to Christchurch. I wonder if anyone has taken up the opportunity to start importing old style analogue phones into New Zealand, it must be a great medium term revenue opportunity!

Analogue Phone

With today’s Smartphones, not only did everyone rush to use their mobile to call their loved ones to check if they were ok, they were using mobile data, social networks, tweeting, sending photos and even video, which the media wanted to gobble up, but which clogged the networks for people wanting emergency services. I think the Telco’s did a pretty good job of getting generators to Christchurch and keeping comms up as much as possible, but they have created a bit of a monster that is only going to get worse. In chasing ARPU (Average Revenue Per User) they encourage us to find every possible way to connect on our mobiles, but then what happens if the mobile network gets congested? Obviously they need to work on increasing their emergency capacity as well as normal usage. They are our lifeline. How were they for you?

As I also mentioned in the emergency kit blog, if you’re trying to do all the things I mentioned above, your mobile battery is going to go flat and if you have no electricity that becomes a major problem. New Zealand has been way behind the rest of the world, or perhaps Kiwis haven’t figured it out yet, but we need alternative ways of recharging our mobiles in the absence of an electricity supply. There are lots of products that will allow us to do that. Car kits if we have access to a car. There are kits that allow you to use those conventional batteries you keep in your home and getaway kits (do you?) and also devices that hold enough charge for 2 or 3 charges and then get thrown away. I have one of those for my iPod which I purchased at San Francisco Airport, its brilliant!

Ipod Charger

The end of Whitcoulls and Borders in New Zealand


If you have a Borders or Whitcoulls voucher, even if you hate the idea of spending double to be allowed to spend your voucher, I recommend you do it quickly, because within a couple of weeks it will be worthless. It was interesting to see that there is no mention of the current situation on the Borders website which talks about eBooks coming soon, although Whitcoulls have been a bit more responsible with a home page announcement.

The demise of these companies isn’t about eBooks, it is largely around debt as pointed out by Liam Dann in this morning’s Business Section of the NZ Herald.  and the business models. I’m not going to discuss the debt because that doesn’t reflect on the industry itself, it reflects on higher level financial decisions and the economy, not on the book trade.

Book stores and music stores are in industries that are steeped in history of “this is how we’ve done it for the last 50 years and why change it if it aint broke”.

As was mentioned in today’s NZ Herald story by Isaac Davison, “In 2010, 9.67 million books were sold, an increase of 1.2 per cent in volume but 0.1 per cent down in value against 2009. This was despite the mark-up on books in New Zealand, which saw paperbacks sold for as much as $20 more than online, even after shipping costs.”

So much for Amazon (of course there were a huge number of Kiwis including myself who purchased from Amazon as well) being the cause of the demise of our local stores.

I also appreciated the comment in the same story from Jo McColl of Unity Books that many people bought hard copy books as a consequence of having purchased eBooks. I’ve done that too. I read eBooks, listen to Audio Books and still have a personal library of around 2,000 print books. The same with music, I listen to lots of music online but have still purchased at least 10 CD’s so far this year.

I might have to go to a separate blog about how Whitcoulls and Borders business model needed to change in order to stay viable and vibrant (ignoring REDGroup‘s debt which doesn’t reflect on the book trade business model itself) because for these guys its too late unless they get a savvy new owner (who will not purchase the chains’ debt) who is ready to adopt a new business model.

REDGroup have called in Administrators. I don’t care who the administrators are. Their role is a short term one and it isn’t about changing the business model or trading back into profit. It is about the creditors.

They will try to negotiate with the book publishers and wholesalers and other suppliers who are desperate to get paid for their product and worried about their future viability in NZ. Inland Revenue want their taxes and will be first in the queue.

They will need to negotiate with the 1,000 staff who will have to have new short term contracts and will be justifiably worried about whether they will get paid at all, let alone have a future with the chain, but at the same time, will be essential should they find a new buyer for the chains.

Based on the outcome of their negotiations a decision will need to be made on whether to go into receivership which is next most likely step. If that happens, enjoy the book sale, because there will be many bargains up for grabs.

The shame of it is that (outside of the decisions that got REDGroup into this financial position) the problem in the trade is that the business model needed to change and like the music industry and other industries, the people running them don’t get it. They should have learned from the music industry, which still doesn’t get it. Other industries who don’t get it include banking, telecommunications and consumer electronics to name a few.

What should they have done and what can other retail businesses do in order to not follow Borders and Whitcoulls into the mire? Subscribe to my blog and I’ll give you a few pointers for free. It isn’t rocket science, but it is a fundamental shift in thinking, whilst also remembering the fundamental simple principles of retail and distributon.

We live in a new world, its exciting and there is a lot of money to be made, but the fatal flaw is thinking that if you do the same thing you have always done, that you will get a different result.

There is an RSS feed to this blog. Come back and read some of my ideas on how companies like Whitcoulls and Borders can thrive and prosper.

Here are a few things I would look at:

  • Understanding your business
  • Communication with customers
  • Communication with staff
  • Distribution methods
  • Stock turn and inventory management
  • Engagement
  • In Store Events
  • Proximity based marketing
  • Shelf Management
  • Relationships with community
  • Relationships with education
  • Location Based Business Analytics
  • The Internet
  • Gift Registry

I could and probably will go on. The answers are a mixture of the old and the new, neither of which these chains have effectively managed. Borders started in the right direction in the US, but didn’t continue the evolution. International chains like Borders and WH Smith focussed more on the  era of globalization than evolution of the business model. Something that would have made short term heroes who have probably made their money and moved on, but was only ever going to be short term.