Thursday, September 22, 2005

ON MURPHY'S LAW IN REVERSE

Andy Kessler (Wall Street Journal) discusses the upside-down world of High-Tech where very often what makes sense is the exact opposite of what works.

1. Smaller is better - cars and diamonds exemplify bigger-is-better thinking, but that Motorola cell phone is getting smaller, cheaper and faster.

2. Things get done when no one is in charge - The Internet was a complicated project that was built with essentially no one in charge. Known as the "open effect."

3. Giving up profits to your partners increases your profits - Dell makes great profits by letting Microsoft and Intel make great profits on software and microprocessors.

4. You sell products at or below cost, and still make money - Amazon.com sells books and other stuff on line for lower margins than traditional retailers that have to pay rent. Can they make money? Sure.

5. Working at a small company is safer than working at a big company - Big companies constantly announce layoffs, hiring freezes, while small companies are having a hard time finding enough qualified people to hire.

The Coach thinks…that technology is not sensible.

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