Showing posts with label internet. Show all posts
Showing posts with label internet. Show all posts

Monday, January 6, 2014

Zappos gets rid of managers!



http://www.washingtonpost.com/blogs/on-leadership/wp/2014/01/03/zappos-gets-rid-of-all-managers/#!
http://en.wikipedia.org/wiki/Zappos

I think chances are that this is just a fad/stunt, or if they are serious it will still turn out badly for them. :) I haven't read up on "holocracy" (a company organized around tasks/projects rather than depts/people), but to me it doesn't seem to be a natural fit for a mixed e-commerce firm with strong-willed people like Zappos. They have over 1,500 employees - I think it would be pretty hard to monitor and control such a diverse org without some sort of management chain. How would you resolve disputes, or make a controversial decision with ambiguous data? At some point a single leader has to make a call. I can also see performance evaluation and career development becoming a mess. Though they could theoretically save a lot of time/effort on less bureaucracy - but I thought they were an agile, lean Internet company already?

While I think the US workplace in general would benefit from more employee empowerment and democracy, we all know that such freedoms/privileges can be abused (and do not benefit productivity in all cases). While not really "fair", it probably makes more sense to empower and give more freedom to your top 20% performers (who really keep the company going), rather than everyone. More freedom could be an incentive for the other workers to strive toward too. I do like the Zappos idea of "lead links", or pseudo-managers who just assign tasks and resources, but don't have the authority to tell workers how to get stuff done. That is empowering, as few people like/need a micromanager (probably bad for performance and satisfaction anyway).

We are social animals, and have natural tendencies towards hierarchy. Of course even in a holocracy, there will be unofficial pecking orders, politics, and such. Could it degenerate into Survivor? :) But maybe Zappos could pull it off due to their "family culture." They really want their workforce to be like-minded Zappos fanatics. A lot of firms give lip service about creativity, team-first attitude, and passion, but I think they do a better job than most (especially compared to stuffy old firms like GM or Chase). Maybe it's just superficial propaganda, and deep down the workers are just going through the act and grumbling, but at least it's on their minds - even if they don't walk the talk 24/7 (who does?).  
I only know 1 person who worked at Zappos (a project manager), and she gave the place pretty bad reviews (especially top leadership). Maybe in that case, it's good to minimize their ability to do harm with a flat structure! But for the record, employee reviews on glassdoor seem generally positive. Though in a holocracy, what the heck do the former middle managers do then? Repurpose them to man the phone lines and pack boxes? I imagine they will have more time for business development and strategic analysis, but as we all know, middle managers may not be the most gifted employees in those areas, especially if they are past their prime and no longer strong with innovative thinking.

http://www.glassdoor.com/Reviews/The-Zappos-Family-Reviews-E19906.htm

Well, after AMZ bought Zappos, they do not report on division-specific financials, so we do not know how well their strategy and culture are working. But before they were acquired, I believe they were roughly a break-even business. Free shipping and unlimited returns are costly, though I guess their corporate strategy believed that reputation and customer loyalty are worth it in the long run. In general, it's an audacious assumption that enough online customers care more about service rather than low price to keep Zappos going. If that value proposition is inaccurate, then org structure is moot.

Wednesday, September 28, 2011

Interesting story of the Conficker worm

http://www.npr.org/2011/09/27/140704494/the-worm-that-could-bring-down-the-internet

The author of "Black Hawk Down" recently published a book about internet security and the Conficker worm, the most successful malware program known to date. I am not an IT guy, but from the interview, it seems that Conficker was written by expert hackers in Ukraine (who still remain anonymous) to tunnel into millions of Windows PCs and subtly control some of their processing resources, and then answer to a mother computer. Their aim seems to be the creation of a massive "botnet" of 10-12M slave computers worldwide that basically aggregate their processors to become the most powerful supercomputer in the world (even better than our best, expensive NSA comps). It's like those movies with the little nano-machines piling up to become a huge scary monster.

With this asset, the masters of Conficker may be able to brute-force crack computer encryption, presumably to guess passwords to steal money and/or secrets. 128-bit encryption technology can maybe produce gazillions of possible passwords (>10^38), which would take too long for even modern supercomputers to plow through. But the Conficker botnet can do this much quicker, and it's masters are now "leasing" the botnet resources to other criminals seeking to steal something. In theory, the penetration of Conficker is so great that its masters would be able to shut down the global internet if they wanted, but they seem more inclined to use it to steal, so it's left unharmed.

How the heck does Conficker infect PCs? Good ol' Microsoft did not make Windows XP very secure, and their engineers eventually discovered a vulnerability for remote access. So they issued a typical software update/patch to close the hole, and anyone who regularly updates their Windows OS should be safe. But the problem is that most PCs running Windows worldwide are using pirated versions that are not eligible for updating (another consequence of OS piracy: exposing the whole internet and trillions of wealth to crime; thanks a lot, China). So those users are totally exposed unless they download antivirus software or a free anti-Conficker program written pro bono by the "Conficker working group" near Stanford (calling themselves "the cabal," a team of volunteer cyber-security experts who recognized the danger of Conficker and are trying to stop it on their own time and own dime, because gov'ts are way behind the curve and doing nothing).

The irony is that Conficker started infecting PCs after this Windows patch. It's possible that the hackers analyzed the patch to reverse-engineer and discover what the Windows vulnerability was, so MS gave the bad guys a free how-to guide to hack Windows! By trying to fix their product, MS brought about the Conficker infection (in addition to many other similar malwares that have been since identified, and lord knows what we haven't found yet). Another consequence of monopoly: concentrated risk. And even though Conficker doesn't affect Mac or Linux, that's not to say that those OS's are any more secure. The Conficker masters just see less value in infecting the much smaller global population of Macs and Linuxes, which would create a much wimpier botnet. So take that, Apple snobs (and FYI, iOS has been hacked repeatedly so far).

Why can't we identify and shut down Conficker? Infected PCs show virtually no symptoms of infection, and are blocked from receiving any new updates, so it is a very clever parasite (and as I said, most of the infected PCs are not in the West). It just uses the processor selectively without slowing down your normal apps. But all the slave comps must answer to the mother comp for instructions, right? Why not just use that communication to locate the criminals and shut it down? Well, Conficker is elusive and doesn't just route all slave communications to one IP address. Then it would be easy to track, like a phone trace. But each day Conficker commandeers 250 IP domains, so it requires more effort to track down, and recent Conficker strains now use 2,500 domains and even 5 "high level" domains that are very secure. The hackers know that the poorly-funded cabal is the only group trying to stop them, so they just needed to make Conficker communications too costly to trace and block.

So where the hell is the gov't in all this? Isn't our security and economy at risk? Conficker seems a lot more of a concern than a couple of Taliban fighters with AKs. Obama just started a US Cyber Command within the NSA, a whole year after Conficker was discovered, but I surmise that they are grossly unprepared for the challenges ahead. Russia crashed Georgia's e-infrastructure with a worm/virus prior to its military invasion. McAfee pretty much implicated China in hacking some major US websites too, so the writing is on the wall. Hasn't anyone seen "Live Free or Die Hard?" We need McClane to rescue us.

The cabal approached the Pentagon and NSA to ask for help to fight Conficker, and maybe even sequester their computing resources. But they were summarily turned down, possibly over territorial or state secrets issues. I am sure that the NSA has a couple interns working on this (what else could be a higher priority for them, Mugabe's cell calls?), but clearly they are not winning (like Charlie Sheen). Here's another hilarious side-story. Remember how the US and Israel crashed Iran's computers controlling their uranium enrichment program? It set them back like a year. It's quite possible that our spooks hired the Conficker botnet to do that, or at least created our own similar worm inspired by Conficker.

Corporate and gov't cyber security is not up to task, but in this climate of austerity, it may be a hard sell to demand more investment in this area. No one cares to protect themselves until after the first disaster strikes (even though a few have already struck, but we just didn't care). I am sure the Ukrainian gang is a super-talented bunch of hackers, but they should be nothing compared to the resources that China or Facebook (no connection suggested) can devote to cyber-security, or cyber-warfare. Modern states already know that the best way to bring each other down (besides nukes) is to crash our e-infrastructure that we so depend on and take for granted. And even so, a cyber attack could disable our nukes and military. The internet was developed by idealistic engineers who wanted a free flow of information, so unfortunately it's structure is inherently vulnerable. We take the good with the bad, but ignoring the problem to this degree is just unacceptable. Fortunately, the likelihood of worms directly stealing our passwords and meager e-weath is still quite low. But what's the value of our little savings account if our national financial system gets wiped out?

Monday, June 9, 2008

Cheaper iPhone


http://tech.yahoo.com/blogs/patterson/22479

Gotta hand it to His Steveness. Stick it to the most die-hard crack-addict Apple fans last year, who just had to have it on release day, with a bloated $600 8 GB iPhone v1.0 (with slow-ass EDGE Internet connectivity and triangulation instead of GPS). And then when sales didn't meet projections, the stock suffered somewhat, over 50% of people in one survey said that the iPhone's price was prohibitive, and rival companies developing more affordable smart-touch phone alternatives, they unveiled a better 3G/GPS 8 GB iPhone that is over 50% cheaper ($199)! Now Apple gets the best of both worlds - over-charging the Mac-addicts, and under-cutting the competition. Well, at least A's prophecy rang true that iPhone v2.0 would be less elitist and more accessible/affordable for the masses, even if most cell phone users wouldn't really use all those bells and whistles, and couldn't afford a $100+/month cell plan.