Open up your mind and say, ahh...

After our initial Kindle Fire review, we wanted to take a closer look at how Amazon’s new tablet compares with the iPad 2 as a media consumption device.

Like Apple, Amazon has paired the Kindle Fire with a complete end-to-end media solution. Users can buy apps, books, music and video files all from one account and one interface.

As someone that has invested heavily in both the Apple and Amazon ecosystems, I wanted to compare the experiences in terms of media consumption. This means the ease of use in listening to music, watching movies and TV shows and purchasing apps.

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Screen Size Realities

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Like its eInk predecessors, the Kindle Fire is a 7″ device. The iPad (and the iPad 2) has a 9.7″ screen. Both run at about the same resolution — 1024×600 for the Kindle Fire and 1024×768 for the iPad — but the difference in aspect ratio and screen size offers up some differences.

The Kindle Fire is an ideal size for reading text (though not necessarily magazines), but it pales when compared to the iPad for viewing video. Playing back a video on the iPad in portrait orientation yields the same video size as the Kindle Fire in landscape.

Moreover, the Kindle Fire’s resolution is still in the realm of standard definition. From my tests, high definition content on the Kindle Fire didn’t look any better than the same content on the iPad.

The Kindle Fire’s screen size and aspect ratio work well for 16×9 formatted content, but for many television shows, the 4:3 aspect ratio of the iPad is actually preferable.

Ultimately, screen size is an important consideration, especially if video consumption is going to be a common activity.

Since screen resolution is nearly identical, I give the edge to the iPad 2.

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Streaming vs. Downloading

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It’s tempting to believe that any website can become a perpetual motion machine of profit. But before you start one, invest in one or go to work for one, a few things to ask:

1. What’s the revenue per visit? (RPM). For every thousand visitors, how much money does the site make (in ads or sales)?
2. What’s the cost of getting a visit? Does the site use PR or online ads or affiliate deals to get traffic? If so, what’s the yield?
3. Is there a viral co-efficient? Existing visitors can lead to new visitors as a result of word of mouth or the network effect. How many new visitors does each existing user bring in? (Hint: it’s less than 1. If it were more than 1, then every person on the planet would be a user soon.) This number rarely stays steady. For example, at the beginning, Twitter’s co-efficient was tiny. Then it scaled to be one of the largest ever (Oprah!) and now has started to come back down to Earth.
4. What’s the cost of a visitor? Does the site need to add customer service or servers or other expenses as it scales?
5. Are there members/users? There’s a big difference between drive-by visits and registered users. Do these members pay a fee, show up more often, have something to lose by switching?
6. What’s the permission base and how is it changing? The only asset that can be reliably built and measured online is still permission. Attention is scarce, and permission is the privilege to deliver anticipated, personal and relevant messages to people who want to get them. Permission is easy to measure and hard to grow.

Do the math on successful companies online and compare it to those that are struggling and these six metrics will help you understand the difference. For example, if the RPM is less than the cost of getting a new visitor, you’ve got trouble. If the site is relying on fads and occasional PR but isn’t building a permission base, that’s trouble too.

The good news is that each of them can be changed if you’re alert and willing to do surgery on the business model and structure of the site.

The ideal structure is a business that’s a platform, not merely a place to stop by. Once people move in and become members, they’re hesitant to leave, they share permission over time, they tell their friends, their RPM goes up and the cost of acquiring and hosting members goes down. The real question is: are you on that path?

Jorge wrote in to ask about the contradiction (it seems) between Poke the Box, which argues that you must consistently ship innovations to the market (and frequently fail), and The Dip, which argues that quitting a project in the middle is dumb, that the real success comes after the quitters have left the building.

I don’t see a conflict.

The failures I’m talking about in Poke the Box are initial interactions with the market, about the ability and willingness to appear stupid in front of others.

In the Dip, I’m arguing that big successes happen when people with good taste see the failures, evolve and keep pushing anyway. The good taste comes when you know the difference between failures that are better off forgotten and failures that are merely successes that haven’t grow up yet.

A single blog post is an example of poking the box.

Sticking with a blog for seven years is pushing through the Dip.

Related: a reader asks if “Go, make something happen,” is sufficient. After all, there’s a lot of junk in the world, a lot of misguided, wasteful, mediocre junk. My argument is that the hard part is deciding to do something, anything. Once you’ve decided to move, at least you’re going. Might as well make it worth the trip. People who care (and who are wiling to fail) will likely turn that effort into something worthwhile.

This is the first part in a short series to introduce The End of Business as Usual…

Change is inevitable, but it is rarely easy. Among the greatest difficulties associated with change is the ability to even recognize its need at a time when we can actually do something about it. Sometimes, when we finally realize that change is inevitable, the vision  or energy needed to push forward in a new direction is elusive. Or worse, when competitors recognize the need for change before us, we are by default pushed into a precarious position where our next steps become impulsive rather than strategic.

If you follow technology as avidly as I do, we can agree that the volume of emerging technology is both awe-inspiring and overwhelming. As new technology makes its way into into everyday life and workflow, certain devices, applications, and networks disrupt the norm and begin to impact behavior. It is this disruptive technology that over time, influences how people work, communicate, share, or make decisions. The question is at what point does emerging technology or new behavior become disruptive? And more importantly, what systems, processes, and protocol are in place that recognize disruption, assess opportunity, and facilitate the testing of new ideas? The time to answer these questions is now.

The reality is that we live and compete in a perpetual era of Digital Darwinism, the evolution of consumer behavior when society and technology evolve faster than our ability to adapt.

Nothing today is too big to fail nor too small to succeed. Disruption not only faces every business, its effects are already spreading through customer markets and the channels that influence decisions and behavior. What works against you also works for you. And, it is what you do now that defines your ability to compete for today and the future. You already recognize the importance technology plays in your business. That’s why you’re here. But recognizing the difference between emerging and disruptive technology and measuring its impact on your business, customer relationships, and products is a necessary discipline to successfully evolve.

The means to see the need for change is only surpassed by our ability to distinguish opportunities for transformation and innovation. This isn’t just a matter of survival of the fittest, this is a long-term commitment to earning relevance by consistently seeing what others don’t, listening to the needs of customers, and delivering experiences that are worth repeating and sharing.

So, who’s next…to either succeed or fail as a result of disruption? Share your observations, predictions, and reasons in the comments below as they will drive the creation of the next video.

#AdaptorDie

Jim Wulforst is president of E*TRADE Financial Corporate Services, which provides employee stock plan administration solutions to both private and public companies, including 22% of the S&P 500.

Perhaps you’ve heard about the Google millionaires: 1,000 of the company’s early employees (including the company masseuse) who earned their wealth through company stock options. A terrific story, but unfortunately, not all stock options have as happy an ending. Pets.com and Webvan, for example, went bankrupt after high-profile Initial Public Offerings left their stock grants worthless.

Stock options can be a nice benefit, but the value behind the offer can vary significantly. There are simply no guarantees. So, whether you’re considering a job offer that includes a stock grant, or you hold stock as part of your current compensation, it’s crucial to understand the basics.

• What types of stock plans are out there, and how do they work?
• How do I know when to exercise, hold or sell?
• What are the tax implications?
• How should I think about stock or equity compensation relative to my total compensation and any other savings and investments I might have?

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1. What are the most common types of employee stock offerings?

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Two of the most common employee stock offerings are stock options and restricted stock.

Employee stock options are the most common among startup companies. The options give you the opportunity to purchase shares of your company’s stock at a specified price, typically referred to as the “strike” price. Your right to purchase – or “exercise” – stock options is subject to a vesting schedule, which defines when you can exercise the options.

Let’s take an example. Say you’re granted 300 options with a strike price of $10 each that vest equally over a three-year period. At the end of the first year, you would have the right to exercise 100 shares of stock for $10 per share. If, at that time, the company’s share price had risen to $15 per share, you have the opportunity to purchase the stock for $5 below the market price, which, if you exercise and sell concurrently, represents a $500 pre-tax profit.

At the end of the second year, 100 more shares will vest. Now, in our example, let’s say the company’s stock price has declined to $8 per share. In this scenario, you would not exercise your options, as you’d be paying $10 for something you could purchase for $8 in the open market. You may hear this referred to as options being “out of the money” or “under water.” The good news is that the loss is on paper, as you have not invested actual cash. You retain the right to exercise the shares and can keep an eye on the company’s stock price. Later, you may choose to take action if the market price goes higher than the strike price – or when it is back “in the money.”

At the end of the third year, the final 100 shares would vest, and you’d have the right to exercise those shares. Your decision to do so would depend on a number of factors, including, but not limited to, the stock’s market price. Once you’ve exercised vested options, you can either sell the shares right away or hold onto them as part of your stock portfolio.

Restricted stock grants (which may include either Awards or Units) provide employees with a right to receive shares at little or no cost. As with stock options, restricted stock grants are subject to a vesting schedule, typically tied to either passage of time or achievement of a specific goal. This means that you’ll either have to wait a certain period of time and/or meet certain goals before you earn the right to receive the shares. Keep in mind that the vesting of restricted stock grants is a taxable event. This means that taxes will have to be paid based on the value of the shares at the time they vest. Your employer decides which tax payment options are available to you – these may include paying cash, selling some of the vested shares, or having your employer withhold some of the shares.

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2. What’s the difference between “incentive” and “non-qualified” stock options?

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This is a fairly complex area related to the current tax code. Therefore, you should consult your tax advisor to better understand your personal situation. The difference primarily lies in how the two are taxed. Incentive stock options qualify for special tax treatment by the IRS, meaning taxes generally don’t have to be paid when these options are exercised. And resulting gain or loss may qualify as long-term capital gains or loss if held more than a year.

Non-qualified options, on the other hand, can result in ordinary taxable income when exercised. Tax is based on the difference between the exercise price and fair market value at the time of exercise. Subsequent sales may result in capital gain or loss – short or long term, depending on duration held.

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3. What about taxes?

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Tax treatment for each transaction will depend on the type of stock option you own and other variables related to your individual situation. Before you exercise your options and/or sell shares, you’ll want to carefully consider the consequences of the transaction. For specific advice, you should consult a tax advisor or accountant.

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4. How do I know whether to hold or sell after I exercise?

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When it comes to employee stock options and shares, the decision to hold or sell boils down to the basics of long term investing. Ask yourself: how much risk am I willing to take? Is my portfolio well-diversified based on my current needs and goals? How does this investment fit in with my overall financial strategy? Your decision to exercise, hold or sell some or all of your shares should consider these questions.

Many people choose what is referred to as a same-day sale or cashless exercise in which you exercise your vested options and simultaneously sell the shares. This provides immediate access to your actual proceeds (profit, less associated commissions, fees and taxes). Many firms make tools available that help plan a participant’s model in advance and estimate proceeds from a particular transaction. In all cases, you should consult a tax advisor or financial planner for advice on your personal financial situation.

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5. I believe in my company’s future. How much of its stock should I own?

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It is great to have confidence in your employer, but you should consider your total portfolio and overall diversification strategy when thinking about any investment – including one in company stock. In general, it’s best not to have a portfolio that is overly dependent on any one investment.

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6. I work for a privately-held startup. If this company never goes public or is purchased by another company before going public, what happens to the stock?

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There is no single answer to this. The answer is often defined in the terms of the company’s stock plan and/or the transaction terms. If a company remains private, there may be limited opportunities to sell vested or unrestricted shares, but it will vary by the plan and the company.

For instance, a private company may allow employees to sell their vested option rights on secondary or other marketplaces. In the case of an acquisition, some buyers will accelerate the vesting schedule and pay all options holders the difference between the strike price and the acquisition share price, while other buyers might convert unvested stock to a stock plan in the acquiring company. Again, this will vary by plan and transaction.

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7. I still have a lot of questions. How can I learn more?

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Your manager or someone in your company’s HR department can likely provide more details about your company’s plan – and the benefits you qualify for under the plan. You should also consult your financial planner or tax advisor to ensure you understand how stock grants, vesting events, exercising and selling affect your personal tax situation.

Images courtesy of iStockphoto, DNY59, Flickr, Vicki’s Pics

My language isn’t safe for work on this post. Save criticism for another post. In this case, I need to use this word.

Seth Godin is right to tell you to ship. Get your stuff out. Make something. DO something. It’s important. And waiting until something is perfect isn’t an option.

Putting out crap isn’t all that useful, either. There’s a big difference between “ship” and “shit,” and in the latter case, I’d say the difference is one you already know about in your gut.

The Balance

Let me be clear: it’s quite often okay to put out something that’s “good enough.” What isn’t okay is trying to get something out to your audience or community that just doesn’t get anything done. And by the way, the “it” in this case is whatever your “product” is. If it’s a blog post and you’ve just thrown it together, you know that. If it’s a speech, then writing it an hour before you give it is shit. If it’s a book and you’re just writing to fill pages, that’s shit.

You feeling this?

Restaurants make this mistake all the time. Servers do it all the time. People phone it in all the time. They have the chance to deliver something even vaguely good, and they push out what? You got it. Shit.

How Do You Manage It?

Here’s the thing, and I’m sorry to keep repeating, but people don’t read any longer. They skim.

You know when you’re pushing out shit versus shipping. You’ve got pressure to ship. Great. Then make the time to make it worth it. Don’t hold things until they’re perfect. That’s constipation, and serves no one.

If it’s something you know will help others, put it out. If it’s not ready to help others, don’t. If you haven’t completed it, wait. Do the work. Finish it. If you haven’t given it a quick polish, wait. If you haven’t garnished the plate, so to speak, wait.

Then ship it.

Seth didn’t ask for your poop. We can all do better. I’m on this same watch. You with me?

John and Helen Taylor are on one hell of a road trip.

The couple from Melbourne, Australia hope to set a record for the lowest overall fuel consumption during a drive through all 48 contiguous U.S. states. They’re in the midst of the Shell Smarter Driving Tour, a 23-day, 9,600-mile jaunt that must include at least 15 miles in each state. Their vehicle of choice? A Chevy Cruze Eco. They’ve got to squeeze 2,000 miles from each fillup of the car’s 12.6-gallon tank.

See, the Taylors are professional hypermilers. Not only are they a pair of fuel misers who routinely set fuel efficiency records, but they coach would-be hypermilers and lobby governments to include fuel efficiency in driver training programs. These two are serious — they’ve set 88 world records for low fuel consumption, including the one they’re trying to break. They did it back in 2008, filling up a 2008 VW Jetta TDI only 11 times on a 9,419 mile trip.

The Taylors wring every possible mile from a tank using a miser’s touch on the throttle and brake and going through the gears as quickly as possible. That works nicely in the Chevrolet Cruze Eco, a car we found remarkably thifty with gas.

“The Chevy Cruze Eco is a mid-range car that most people recognize and most people can afford, hence making a good choice for the average person on the street,” the couple wrote in an e-mail sent from a roadside wifi connection somewhere in Texas.

Their total mileage will be a closely held secret until the end of the trip, but the Taylors said they’re getting better than 46 mpg after 1,600 miles in their bone-stock, manual transmission Cruze. And that’s from a car with an EPA estimate of 28 city, 42 highway.

So far, their experiences in the states mirror what they see in Australia: Too many drivers wasting fuel speeding from stoplight to stoplight. None of that for the Taylors, who tool along just below the speed limit to maximize efficiency.

“To this end we have been driving at 60 mph in a 65 mph zone, whilst all other traffic fly by us at 70 to 75 mph,” the couple wrote, estimating that this difference in speed cuts fuel consumption by 23 percent.

And just like in Australia, the Taylors say they’ll usually catch up to the leadfoots who roared past them.

Photo: Shell