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Mary Jo Foley: Ten lessons the Xbox Team can teach the rest of Microsoft

Last week, ZDNet‘s Mary Jo Foley posted on her blog the Ten lessons the Xbox Team can teach the rest of Microsoft.


“When it comes to building community — and profiting from it — Microsoft’s Xbox team is helping write the playbook. That fact isn’t lost on the rest of the company. Increasingly, other divisions at Microsoft are studying what the Xbox folks are doing right and trying to apply those lessons to their own products and services.”


She’s right, IMHO.


Mary Jo spoke with JJ Richards, the GM of Xbox Live, to collect his thoughts on what other parts of the company could learn from the Xbox. Here they are…



1. Tiers need to be clear and simple. In Xbox Live, there is gold and there is silver. Fewer, simpler SKUs are better.


2. The dashboard is the UI. Users want access to lots of data, all in one place. They don’t want to have to hunt for it.


3. An online marketplace sells content. The Windows and Office Live teams already grok this one. Making Microsoft and third-party wares available as a one-stop shop helps move more add-on hardware, software and services.


4. Arcade: Not everyone is a shooter-game pro. Users come with different skill sets and interests. Some prefer “Geometry Wars” to “Gears of War.” Microsoft’s Developer Division gets this, and is launching Express versions of its tools for hobbyists/nonprofessional programmers.


5. Achievements are a way to stay in touch. The more ways you can encourage community members to stay in touch, the better.


6. Ubiquitous voice and text are de rigeur. In the Web 2.0 world, everyone’s a multi-tasker. All services and apps should bake-in messaging, mail and other unified-communications technologies.


7. Roaming accounts are key. Users want their audio and video content, contact lists, address books, favorites and other settings available on any device, anywhere at any time.


8. Build communities within your community. Gamerzones in the Xbox world allow similar types of users to more easily connect. What’s the business equivalent of Xbox Live’s “Underground”? Good question.


9. Points are the new online currency. Office Online already is moving in this direction, and other Microsoft Live services will likely do the same.


10. Gamerscore = reputation. Other divisions at Microsoft have been wrestling with how to rank community participants by “reputation” to help users gauge which content/commentary to trust. Gamerscore could become the model here.


“Richards acknowledged that the Xbox Live team can learn a thing or two from other Microsoft divisions, as well, such as how to handle child safety settings in world with more and more user-generated content. But it seems to me that it’s Microsoft’s non-gaming businesses that have more to learn from the Xbox team — at least when it comes to building community — than the other way around.”


I’ll add number 11: Connect with your customers. Customers want to be heard and sometimes appreciate that they have influenced product design and delivery with their feedback. More and more, teams have formalized how they get direct responses from customers, whether it’s internally through a dogfood deployment, more formally through a Connect-managed beta or customer focus groups to see how people react to and how they use a new product or service. Some of the teams that have the best understanding of their customer’s needs are connecting directly in 1:1 and 1:many discussions, whether it’s on Xbox Live in head-to-head matches and play, or on blogs like the Xbox team’s Gamerscore blog, the Xbox team blog on MSDN and of course Major Nelson.

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Your questions: “What is going on? aQuantive… sounds like a Silicon Valley deal.”

I was asked this morning by a friend from down south at a not-so-small Internet services company: “What is going on up there [in Redmond]? Six billion for aQuantive? That is a bunch of money. It sounds like a Silicon Valley deal.”


A new record-setting, massive Microsoft acquisition, the largest the company has done. And yes, it sounds more of the type of acquisition you’d see being made in 94025, 94306 or 94043 rather than 98052.


The Seatte Times has a couple of articles today that take a look at the aQuantive acquisition announced yesterday, including this one on “What Microsoft saw in aQuantive: tools, tech and top-tier ties” from reporter Kim Peterson.



“Still, the acquisition news left some wondering why, exactly, Microsoft would pay so much for an advertising company. What is aQuantive all about, anyway?


“The 10-year-old company has grown mainly by offering top-to-bottom services for advertisers. It helps them create advertising and branding campaigns. It serves, or electronically places, those ads on popular Web sites for maximum exposure. And it offers sophisticated tools for tracking when people clicked on those ads and what they did on the Web site that followed.


“If you went to a banking site, for example, aQuantive’s system would note that and could show you ads for that bank when you visited other Web pages. And it wouldn’t be the same ad each time, either. The system could show you a sequence of ads targeted to your interests.


“AQuantive also creates Web sites for companies. It built the Postopia.com gaming site for Kraft, for example, and a site about youth travel programs for Disney. It created a “Fanta-island” Web site to help the Fanta beverage company reach out to teenagers.”


From my friend: “I’m surprised that you [referring to Microsoft corporate, not me personally] didn’t buy 24/7 [Real Media] for their technology [ad management systems and analytics]…” which was WPP’s announced purchase this week, for roughly a tenth of the aQuantive deal.


Good question.


Given the number of online properties Microsoft has, across Microsoft.com (plus popular subsites like Office Online), Live, MSN, MDSN, TechNet and Xbox, there is an opportunity to leverage AQuantive’s experience in the complete cycle os ad services, from develpment to placement and ultimately the analytics to see how the ads fare in the marketplace.


Given Google’s $3.1 billion purchase of DoubleClick to augment their display advertising business, as well as Yahoo’s controlling purchase of Right Media, I wonder about the future of other online advertising technology company firms, including as ValueClick and Viewpoint.


See also Times’ reporter Benjamin Romano’s article “For $6 billion, Microsoft buys huge slice of online-ad pie” which includes this excerpt:



“Asked whether the acquisition is in part to prevent a competitor from getting aQuantive — one the last large independent digital-advertising houses — Johnson talked only of the opportunity.


“We looked at how rapidly this industry is consolidating and unfolding, and we felt like now was the time to put a stake in the ground that says we are going to take our advertising platform to the next level and we are committed to this industry for the future growth of our company,” Johnson said.”

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News: HP Garage now officially an historic place

AP reported this week that the legendary Hewlett-Packard garage is now officially an historic place. It’s the little garage behind the house at 367 Addison Avenue in Palo Alto where Bill Hewlett and Dave Packard (the co-founders of HP) first started in 1938.



“It was there that Hewlett and Packard developed their first product, an audio oscillator, which Walt Disney Co. used to improve sound quality in its 1940 animated movie “Fantasia.”


You can read more about the HP garage at the official website.


We often discuss how leading companies strive to improve customer satisfaction and measurement, which includes a look at HP. Recently, one of my friends referred to HP’s “Rules of the Garage” which were widely promoted by HP back in the late ’90s. Here they are for your reference:



  1. Believe you can change the world.

  2. Work quickly, keep the tools unlocked, work whenever.

  3. Know when to work alone and when to work together.

  4. Share — tools, ideas. Trust your colleagues.

  5. No politics. No bureaucracy. (These are ridiculous in a garage.)

  6. The customer defines a job well done.

  7. Radical ideas are not bad ideas.

  8. Invent different ways of working.

  9. Make a contribution every day. If it doesn’t contribute, it doesn’t leave the garage.

  10. Believe that together we can do anything. Invent.

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“Thank you for your visit” could mean you’re curious or just gullible

Lisa Vaas of eWeek has an article today on how nearly 500 people took the bait to ‘Click Here to Get Infected.’ It was as simple as setting up an innocent looking domain name (drive-by-download.info), one with an ‘.info’ suffix that is reportedly popular with malware providers, as noted in the article. If you managed to find the ad and click through, you received a “Thank you for your visit” message. Sounds innocent enough. 



“That was evidenced by the 409 people who clicked on an ad that offers infection for those with virus-free PCs. The ad, run by a person who identifies himself as security professional Didier Stevens, reads like this:


Drive-By Download
Is your PC virus-free?
Get it infected here!
drive-by-download.info


“Stevens, who says he works for Contraste Europe, a branch of the IT consultancy The Contraste Group, has been running his Google Adwords campaign for six months now and has received 409 hits. Stevens has done similar research in the past, such as finding out how easy it is to land on a drive-by download site when doing a Google search.”


In other words, be careful what you click on.


Although the site owner and the mock-site owner claims that no PCs were harmed, it goes to show that a significant number of people will click on ads or other interesting tidbits that have the potential harbour potential malware or malicious code. (In a related post, see “ani exploit via e-mail: you’d think hackers would know how to spell ‘Britney Spears’.)


You can read more about this on the site owner’s blog at http://didierstevens.wordpress.com/tag/malware/.


For more, see my past note on how there’s no immunity from security vulnerabilities.



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It’s all about the customer: we have plenty of room to improve

This week I am blogging from the lovely pacific northwest, from our meeting off-campus with our teams from around the world focused on customer and partner satisfaction. I partner with Toby Richards from our Sales & Marketing Services Group on how we listen and respond to out customers and focus on improving our satisfaction across the board. Internally, we call this the Customer and Partner Experience (CPE) effort, and I focus on supporting the efforts in our three product divisions, across all of our product lines.


On the topic, Eric Lai from Computerworld has an article this week that takes a look at our effort to dedicated to improving customer satisfaction.



“According to its surveys, that strategy has borne fruit, says the company.


“We have plenty of room to improve, but overall satisfaction is at their highest levels ever,” said Toby Richards, general manager for worldwide customer experience at Microsoft in an interview Monday.


“For instance, Richards says that Microsoft’s decision to repeatedly delay the release of Windows Vista in order to tighten up its security and features was heavily influenced by survey results that showed customers asking for greater “product stability and reliability,” Richards said.”


As noted, we created the CPE effort to be a nimble, cross-group team, lead by exec partners Kathleen Hogan (worldwide customer support and services), and my boss, Jon DeVaan, who leads the Core Operating System Division in Windows. We work to continuously improve and drive improving the experience for our customers and partners every day, and on the things we do that impact our customes and partners.


But it’s a continuous journey, as I’ve heard our senior execs say.


We are dedicated to improving our “listen and respond” systems, our product quality and overall security & privacy (which are closely intertwined), as well as how we handle and reacts to issues such as the changes to daylight saving time.


Tags: Microsoft, loyalty, Customer Satisfaction, Customer Service.


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