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Business connection is made by mt t to serve all of our diverse communities and is made possible by the generous support of our members. Thank you. Is it possible for a product to have too many cool new features I mean even so I'll have a report on research being done here at the University of Maryland on something called feature fatigue that's coming up. Renovations having it at a coffee bar in their future. I'm headed Harlan and I'll tell you more coming up town trips off and we'll talk with the leaders of Washington Post Newsweek interactive and Phillips foods coming up next. Business connection starts now. Hello I'm Jeff Salk and welcome to a special edition of business connection tonight focusing on how two major forces technology and globalization can be

successfully hardest by traditional businesses. Later in the program the executive return Philip seafood into a worldwide 100 million dollar business. But we begin with The Washington Post no longer just one city's newspaper. Washington Post dot com has become one of the most popular news sites on the Internet. Joining us from Arlington Virginia is Caroline little CEO and publisher of Washington Post Newsweek interactive. Caroline thanks for being with us. Thanks for having me. Tell me where the The Washington Post website at least stands in terms of traffic number of visitors that sort of thing. Well by any measure we're probably one of the top six national news sites. We have the highest local penetration of any news website in its market we have a little bit over 40 percent penetration in the Washington market. What's surprising for us though is about 85 to 90 percent of our readers actually come from outside the market and that's coming from a newspaper that has only been available in

print in this market. Well The Washington Post was maybe uniquely positioned to accomplish that and it was one of for Watergate and other reasons one of the most famous newspapers in the world. Absolutely. We've we've been very lucky to have that great brand behind us. Now when you say when you say local penetration of 40 percent what does that mean. That means that the households in this market more than 40 percent look to Washington Post a comment on any given 30 day period. Now what about in terms of I don't know what you can tell us about about ad revenue or their growth rate how has that been. Their growth rates been terrific you know close to 30 percent and growing strong. We've been profitable for three years and continue to be. Now the recent news was that you're looking at a strategy change where the old focus of not just your side but but many sites is to try to keep people on the site stickiness as it's called I guess but but now you're incorporating or

planning to incorporate more outside content. Why is that. Well I think primarily it comes to servicing our readers. People are interested in reading our content. They're also interested in seeing what people are saying about our content and they're interested in finding additional content on the web that might be relevant to them. And I think we've really seen a gradual process of this and certainly we on the other hand have benefited We got a lot of readers who are referred to us by other news sites and the like. And ultimately we want to make sure that we can give our users the most rich experience with multimedia text photos etc.. Where does your traffic come from if if the Drudge Report links to a Washington Post dot com story certainly a lot of people come in that way and a lot of people just wake up in the morning and check the website right. Yes it varies but we do get a lot of referrals from other websites we get a lot from the search engines and then of course people come to regularly to us or they have

our you are all bookmarked on their browser. Now when you're linking to outside content there's the issue of the quality of that content and then and especially if it's if it's a blog and I'm not sure that the general public is maybe is focused on differentiating between work that your journalists do and and work that that maybe appears to somehow be related to your site. I think. I think we can make We've been making that pretty clear I mean one of the features that we have on our site is something called Technorati and what we do is say there's an article on national defense and then there'll be a box by Technorati that's linked directly to that and it'll have sort of blogger entries and links to those blogs about what the bloggers are saying about that particular article. And so when you click on to a blog you know that you're not on Washington Post dot com anymore. And I think it's that I hate this word often use word but it's essentially the

long tail of what are people saying about the news what's the conversation. And that's a very interesting proposition for for our users. Explain the concept of the long tail a little bit I've also heard that mentioned in the context of content articles video that might not have gotten a whole lot of attention in a in a pre Internet environment where everybody was focused on the main channels but with more niche products that have a long shelf life is that close to. I think that's absolutely right I mean it kind of takes the concept. We published the first story and then there's conversation about it it may take a life of its own. There may be more and more conversations about it and that sort of story becomes extended and relevant in different areas that sort of how I think of the long tail. And I think it gives our users a lot more. Freedom to sort of understand and discuss the news which is really what we want.

Let me ask about the flip side of your success which is within not just your case but the newspaper or the dead tree version as some people call it the papers around the country are seeing declining circulation as people can get the same content online and I read I think it was on your site Michael Kinsley piece where he talked about not bothering to go out in the rain anymore to get the newspaper and that if that trend keeps up we won't bother going out the sunshine either because the online version is just too good. Right right. Well I mean our very best content is the content that's created in the news room that also prints the newspaper so I guess the way that I view it as quality content and Hants by various things that we can do because of the medium but the core of what we do is the Washington Post brand whether it's online in print on radio or whatever else. And you know that's our you know collectively our mission to to keep that there for our readers to be to be available in whatever medium they want to what

they want to get it in. But I think the move towards reading more news online is something inevitable and we want to be a part of that wave and I think we are part of that wave. The New York Times is charging for some of its content now for certain well-known op ed columnists and other things. How how are they doing it is that something you would consider. We're obviously you know we watch it very closely we actually took a very different approach than the New York Times just as they started walling some content off. We actually broadened significantly all of our opinion content and started doing a lot more blogs to create more of a conversation with our users because we thought that that is one of the most important things that the news content can provide and we wanted to make that accessible to everyone. There are plenty of reports in terms of how how the New York Times is doing and I think you know they

report that they're pleased with the way it's it's going for them I can't speak for them. One more question for you. And I've been told that the traffic on sites like yours. Really varies by by day part that there are certain times of the day that are very active in certain times that are not. Does that trend continue. It continues but it's not as intense as it was for example three years ago I think is U.S. broadband penetration increasing in the home. You're seeing more and more usage of our site for example on the weekends it used to be much more heavily during the week. Weekends are increasing dramatically. You still see sort of higher usage around noon time and at the end of the day. But that's again evening out somewhat. Our Caroline little CEO and publisher of Washington Post Newsweek interactive Caroline thanks so much for your time we appreciate it. Thanks for having me take care. Researchers at the University of Maryland have discovered that technology consumers may be

biting off more than they can chew. Mindy Mintz reports in tonight's edition of small. Business. It wasn't so long ago that a cell phone was purely a tool for voice communication. No more today they can do everything except cook dinner. It's really microprocessors and computerization that have made it possible to pack a whole lot of features into a product really with very little cost in most cases. Recently the head of the marketing department at the University of Maryland Smith School of Business received a mousepad that came with a user's manual. It had a calculator it had a radio had a user's manual and you just wonder you know what it what are these people thinking about. And research into something dubbed a feature fatigue was born. Future fatigue is what happens when people use a product that's too complicated. What happens is they become frustrated and they become dissatisfied. At a behavioral research lab at College Park more than a hundred subjects were asked to select

and use various virtual audio and video products that were identical except for the number and types of features. One of the things that our research shows is that people's eyes are bigger than their stomach. They always buy products that are too complicated that have too many features even when consumers were customizing on products adding just the features they desired. They ended up loading on feature as LS as many features as we had. We put our high feature model. And. They. Say I am. Where we're experiencing this phenomenon even when they design the products and so it's. The consumer's pre-purchased desire for bells and whistles has led even car makers like BMW to contract with the researchers call featuritis. They have a system in the dashboard called the I drive it's an information system and it has proximately 700 features in it. Who can use 700 features and most people can't remember three or four. So the the the problem there is

that they're antagonizing a whole generation of buyers that might be repeat buyers of BMW except for this. Back at the lab researchers found that both technology experts and novices wanted to buy products with lots of features. But after using them both groups didn't take long to regret their choice. After having even a short 15 minute experience say for their product the majority of the participants prefer simpler models. The success of the iPod bears that out. That's a fairly simple device that is fairly simple to use it tries to do one thing really well and that's to download and play music and it does that really well. And. That's been a phenomenal success. Research continues here on exactly how this feature fatigue affects future purchases. But Professor Ross believes that vast volumes of studies in the past make it clear that it is not good news for manufacturers in the long run. It comes back to bite the manufacturer because what happens is

the consumers buy these products and they bring him home. They're hard to use and they get frustrated they get dissatisfied and ultimately they probably don't buy again from that manufacturer. I mean demons for business connection. Name a Maryland based business that operates in Indonesia the Philippines Malaysia Thailand Vietnam China Ecuador and Mexico. The answer is Philip seafood. And joining us now in the studio is Steve Philips CEO of Phillips foods and Phillips restaurants Thanks for being with us. It's really nice to be on your show. People might be surprised at the scope of your operations and the amount of traveling that you personally do where where have you been this year. Well I guess travel to Asia mainly. You know three to four times a year you know only for two weeks up to maybe four weeks and during those trips we have our Asian corporate office in Bangkok in Thailand so. Certainly there are quite a bit. I'm also in the factories in Indonesia Philippines Thailand India. So you don't have

to. You can't manage because we're halfway around the world. Kim hits up by really a fax or cell phone so you have to actually be there. Let's talk about how you got to be halfway around the world because people remember the Phillips story and the restaurant that's been in Ocean City forever and in a nutshell if I remember right you were your parents were operating in an environment where there was a surplus of Chesapeake Bay crab meat and they open the restaurant to sell it and then supply got tight. And you develop this business of sourcing crab meat around the world. Well it kind of goes back really I think I always say my grandfather was a one the founder the business back in 1914 with a little small seafood processing factory in hope Rizal in Maryland. Of course that's owner used to assure readers you're sure America and you still you still have that plant. Yes we still have the plant we will always have it with. It. But anyway it was wonderful to grow up there. My grandfather as I just mentioned had the processing factory and my grandfather on my mother's side was a Chesapeake Bay Waterman.

So as a young boy growing up I had the wonderful opportunity to to you know got on the bay with my grandfather crab and during the summer and worst rain during the winter time and had the wonderful experience of working with my grandfather you know processing crab meat during the summer and shucking oysters during the wintertime. Right. When did you did you turn over seas and discover that there was comparable crab meat to be had. Well when I was a young boy growing up in hopers island you know out on the water my grandfather you know the seafood was very plentiful back in the Chesapeake Chesapeake Bay then. And I thought it will last forever. And as my parents went to Ocean City in 1954 and open the restaurants and when I got out of school I helped them you know build restaurants in Ocean City additional restaurants in Ocean City in Baltimore and Washington Norfolk. And you know 75 percent of our customer base that came to our restaurants you know will come for crab crab cakes crab soups crab imperial crab salty. And you know we really

struggle because you know Ocean City is seasonal but of course Baltimore when we open the restaurant to Baltimore it's year round. It was very difficult because our factories are close in the Chesapeake Bay crab process in fact it was closed during the winter time. And you know there was a declining resource you know for a number of years and you know I had to find a source of crab meat. And I heard they had crab in Asia so I jumped on a plane and you know had to do my own feasibility study because no one was doing crab in Asia and Europe to approximately 10000 employees now. Well there is you know. You know seafood is very seasonal It's not like making widgets in a factory every day where you can say OK we're going to do 3000 which is today. So you know in all these countries it's very seasonal We have a high season and low season I would say we average about that low season it might be several thousand less but during high season also Seventh out at several thousand more people we're looking at pictures of crab cakes being made in your facility on Ford Avenue in South

Baltimore. We have a few hundred people working as well and that's no longer seasonal because you can store the crab meat. Does That's very true we were the first ones in Asia to produce pressurized crab meat and you know we had enough of a supply of factories in Asia where we could offer you know this wonderful product in a Maryland style crab cake. There are crab products you know throughout the United States where we have people now in Kansas that are eating crab cakes whereas five or six years ago they had never had that wonderful experience. We got to interview your parents Shirley and Bryce years ago and asked your father about the imported crab meat and his answer was his there's nothing as sweet as the Chesapeake Bay crab meat. But basically in a crab cake it's pretty close. Well I have to agree with my father on that. And so about people like you know upset when I say this but there's really nothing better than fresh Maryland crab meat. I grew up on that it has does have a different flavor profile it's a premium quality product is there and certainly the crab harvest is his if fluctuated to say the least

in the in the Chesapeake and seems to be doing better of late but is there a danger in what you're doing over seas of potentially overfishing. Well I think that you know we really have to be careful you know managing our resources. I think you know there are government agencies I think they do a pretty good job of regulation in regards to making sure that our fisheries not over fish. Where were working with some programs with the University of Maryland biotech center to actually develop hatcheries hopefully develop hatchery as that can be located along the Chesapeake Bay to reduce or to release young juvenile crabs back in the bay you know it's called a restocking program and I'm real happy to say for the last several years they have been able to release many many thousands of young juvenile crab back in the bay and that's not the only answer but you know it's something that could could be helpful in the future. Well that's news to a lot of people because we've we've been able to stock rivers with trout we've been able to to do some things with oysters but but really haven't tried it with

blue crabs. Well they say that their research was in there before you know a lot of people years ago thought they was really impossible to do that in. And we worked on this project quite a bit in Asia and we had a lot of success with it and some of the things we learned we brought brought back to the University of Maryland and they agreed to work with us and try to develop this program into something that would be very helpful for the future Waterman. We talked at the beginning of the show about globalization being one of the big trends and you've traveled a long way from Coopers Island curious what you've learned along the way in Asia and other places about doing business. Well to be honest with you I've learned a lot about myself and I think during my travels I try to have a very open mind. And one of the most exciting things to me and it's really personally I really. Feel that Alba volved as a person because of my travels there and you know I am very interested and very impressed with the cultures that they have in a lot of these countries you know.

Indonesia is a wonderful country. It's mostly Muslim. They're wonderful people. They have families and they have everyday problems and trials and tribulations and dreams just like we do. And you know the people in Thailand you know a lot of them are or buddhist the people in India different religions but you know just wonderful people just like we are here in America and it's a shame so shame sometimes that maybe we don't have enough dialogue enough conversation. You know because basically when you look at that situation as a lot of people that are the same and I've learned a tremendous amount from those Colchis I'm from those people we have a lot to learn. Yeah. Maybe you've spread some good will towards America and these these trips as well. Tell me about the food because we're running short on time but you got interested in Thai food. Well just as I'm very impressed of the culture I fell in love with but allow the Asian foods my favorite food is really I have to be honest with you as it is Thai food. And you know the some of the food is from Vietnam some of the Curry is from India. So we decided to come

out with an authentic line of Asian foods and is called Asian rhythms and these are authentic Thai foods made in Thailand are made in India because the flavors and gradients marry well there you can buy the same ingredients here in the United States and try to put them together but they just don't marry as well as real short on time but they want it with this will be down at the grocery store or down at the Harbor Place now it's going to be down at the grocery stores now we're doing some of the test markets so so far it's going well. Steve Phillips Good to see you thanks so much for your time. What Thank you very much for having me on the show. Now big changes for one of the most prestigious libraries in the state next on business connection we'll find out what's in store for the Enoch Pratt Free Library. And math grew up during the Depression and collect the things that I was fortunate enough to have givens in my community to support the thing which I believe is one such thing. Dad included his public television station in his will consider joining the

community of people who were on public television band generation Lincoln City to the impeachment foundation. It's a gift to you community for years to come. This is what. It. Is. Is. Paul still living. In the brain. Shall never die. This. Is. Experience. B.S. you get the stories that no one else is telling stories that matter that challenge for a vote. You get coverage you can trust in-depth reporting on the most honored network in television journalism.

Im sure right now. After years of downsizing the Enoch Pratt Free Library system is gearing up for growth again. Heather Harlan from the Baltimore and Washington business struggles had a chance to catch up with Dr. Carla Hayden director of the library system and find out about the anticipated changes. I'm joined here by Dr. Carlat executive director of the Enoch Pratt Free Library

System. Thanks for being here Dr. Hayden tell us a little bit about the library system. Well the current library system is the oldest library system in this country people not realize that. And it was started by a new thread and Mr. Andrew Carnegie came to Baltimore. To get. Tips from Mr. Press on how to give his program. And so he said Carnegie said that Mr. Pratt was his mentor and his pioneer. And so we're very proud of that heritage. Now how many actual library buildings are part of the system. The Pret library has 21 branches in the neighborhoods and it has a central library downtown Baltimore that serves as a State Library Resource Center as well. It's a state library in effect so we actually have a great fleet of facilities. That are a new first jointed library system in 1903. Tell us about some of the biggest changes that have occurred and that you have overseen since that time. I think one of the biggest changes in the library system has been the impact of technology. We've grown from about a hundred micro computers as they were called then

to fully networked 800 computers for the public. Wireless Network is coming in and people are using computers at the rate of 300 million hits a year. And tell us about some of the biggest rewards of the job since coming here. The greatest reward I think is to know that you're helping people help themselves and the library is free and free is our middle name meaning frett Free Library and it allows anyone from any walk of life to use our resources and that we use from all ages and in all stages of their lives. And now also on the same note. What are some of the biggest challenges that you have faced a challenge that we are continually facing is getting enough resources to provide the resources. We are a public institution but we are really dependent on private funds as well and people may not realize that. How much of your funding comes from the private sector versus the public sector.

Well that's a big change from the amount of money that we receive from private funds has increased from 3 percent of our operating budget to now 20 percent of our operating budget in just 10 years. He mentioned fund raising as a challenge. You also in a previous conversation mentioned several anonymous gifts including a new one can you tell us about that. I think I can break this news that we just received another million dollar anonymous gift to improve our branches and that will make such a difference we're doing it Stream make overs in our branches new carpeting and painting and really making them inviting So this new gift is going to just be a boon for us. Now looking down the line what are some of the plans and goals that you have for the library system. One of the goals that we're really concentrating on is making sure that the library is available to all people at all times and that might mean 24 hour computer access having more hours where people can walk in and also arranging our library differently to look more for something like

a bookstore and maybe even a little coffees in the works so we're really going to make the libraries inviting and also open as much as possible. Give us an idea of your expansion plans. For the future. We're hoping we can get additional branches. And we had an unfortunate period where we had to actually let some branches go and so we're in a starting in a real growth mode now we have three new branches that are going to open in the next year and we hope that. That continue. To Carl Hayden. Thank you very much. And that's our program you can reach us anytime with comments and questions on line at NPT dot org. Now for all of us here thanks for watching business connection. Have a good night. Business is a production of Maryland Public go in association with the University of Maryland School of Business and the

business to. Business connection is me and to serve all of our diverse community and is made possible by the generous support of our members. Thank you.