Another blanket article about the pros and cons of Direct to Consumer (D2C) isn’t needed, I know. By now, we all know the rules for how this model enters a market: its disruption fights any given sector’s established sales model, a fuzzy compromise is temporarily met, and the lean innovator always wins out in the end.

That’s exactly how it played out in the music industry when Apple and record companies created a digital storefront in iTunes to usher music sales into the online era. What now appears to have been a stopgap compromise, iTunes was the standard model for 5-6 years until consumers realized there was no point in purchasing and owning digital media when internet speeds increased and they could listen to it for free through a music streaming service.  In 2013, streaming models are the new music consumption standard. Netflix is nearly parallel in the film and TV world, though they’ve done a better job keeping it all under one roof. Apple mastered retail sales so well that the majority of Apple products, when bought in-person, are bought at an Apple store. That’s even more impressive when you consider how few Apple stores there are in the U.S. (253) compared to big box electronics stores that sell Apple products like Best Buy (1,100) Yet while some industries have implemented a D2C approach to great success, others haven’t even dipped a toe in the D2C pool, most notably the auto industry.

What got me thinking about this topic is the recent flurry of attention Tesla Motors has received for its D2C model. It all came to a head at the beginning of July when a petition on whitehouse.gov to allow Tesla to sell directly to consumers in all 50 states reached the 100,000 signatures required for administration comment. As you might imagine, many powerful car dealership owners armed with lobbyists have made a big stink about Elon Musk, Tesla’s CEO and Product Architect, choosing to sidestep the traditional supply chain and instead opting to sell directly to their customers through their website. These dealership owners say that they’re against the idea because they want to protect consumers, but the real motive is that they want to defend their right to exist (and who wouldn’t?). They essentially have a monopoly at their position in the sales process, and they want to keep it that way. More frightening for the dealerships is the possibility that once Tesla starts selling directly to consumers, so will the big three automakers, and they fear that would be the end of the road for their business. Interestingly enough, the big three flirted with the idea of D2C in the early 90’s before they were met with fierce backlash from dealerships. I’m sure the dealership community has no interest in mounting a fight like that again. 

To say that the laws preventing Tesla from selling online are peripherally relevant would be a compliment. By and large, the laws the dealerships point to fall under the umbrella of “Franchise Laws” that were put in place at the dawn of car sales to protect franchisees against manufacturers opening their own stores and undercutting the franchise that had invested so much to sell the manufacturer’s cars.  There’s certainly a need for those laws to exist, because no owner of a dealership selling Jeeps wants Chrysler to open their own dealership next door and sell them for substantially less. However, because Tesla is independently owned and isn’t currently selling their cars through any third party dealership, this law doesn’t really apply to them. Until their cars are sold through independent dealerships, they’re incapable of undercutting anyone by implementing D2C structure.

Millions of people experienced the frustration and failures of the Obamacare website when it first launched. Because the code for the back end is not open source, the exact technicalities of the initial failings are tricky to determine. Many curious programmers and web designers have had time to examine the open source coding on the front end, however, leading to reasonable conclusions about the nature of the overall difficulties.

Lack of End to End Collaboration
The website was developed with multiple contractors for the front-end and back-end functions. The site also needed to be integrated with insurance companies, IRS servers, Homeland Security servers, and the Department of Veterans Affairs, all of whom had their own legacy systems. The large number of parties involved and the complex nature of the various components naturally complicated the testing and integration of each portion of the project.

The errors displayed, and occasionally the lack thereof, indicated an absence of coordination between the parties developing the separate components. A failed sign up attempt, for instance, often resulted in a page that displayed the header but had no content or failure message. A look at end user requests revealed that the database was unavailable. Clearly, the coding for the front end did not include errors for failures on the back end.

Bloat and the Abundance of Minor Issues
Obviously, numerous bugs were also an issue. The system required users to create passwords that included numbers, for example, but failed to disclose that on the form and in subsequent failure messages, leaving users baffled. In another issue, one of the pages intended to ask users to please wait or call instead, but the message and the phone information were accidentally commented out in the code.

While the front-end design has been cleared of blame for the most serious failures, bloat in the code did contribute to the early difficulties users experienced. The site design was heavy with Javascript and CSS files, and it was peppered with small coding errors that became particularly troublesome when users faced bottlenecks in traffic. Frequent typos throughout the code proved to be an additional embarrassment and were another indication of a troubled development process.

NoSQL Database
The NoSQL database is intended to allow for scalability and flexibility in the architecture of projects that will use it. This made NoSQL a logical choice for the health insurance exchange website. The newness of the technology, however, means personnel with expertise can be elusive. Database-related missteps were more likely the result of a lack of experienced administrators than with the technology itself. The choice of the NoSQL database was thus another complication in the development, but did not itself cause the failures.

Another factor of consequence is that the website was built with both agile and waterfall methodology elements. With agile methods for the front end and the waterfall methodology for the back end, streamlining was naturally going to suffer further difficulties. The disparate contractors, varied methods of software development, and an unrealistically short project time line all contributed to the coding failures of the website.

There has been and continues to be a plethora of observational studies by different researchers in the publishing industry focused on how e-books have affected hard-copy book sales. Evidence from these studies has indicated that there is a significant and monumental shift away from hard-copy books to e-books.[1]These findings precipitate fears that hard-copy books might become more expensive in the near future as they begin to be less available.  This scenario could escalate to the point where only collectors of hard-copy books are willing to pay the high price for ownership.

The founder of Amazon, Jeff Bezos, made a statement in July 2010 that sales of digital books had significantly outstripped U.S. sales of hard-copy. He claimed that Amazon had sold 143 digital books for its e-reader, the Kindle, for every 100 hard-back books over the past three months. The pace of this change was unprecedented;  Amazon said that in the four weeks of June 2010, the rate of sales had reached 180 e-books for every 100 hard-backs sold. Bezos said sales of the Kindle and e-books had reached a "tipping point", with five authors including Steig Larsson, the writer of Girl with a Dragon Tattoo, and Stephenie Meyer, who penned the Twilight series, each selling more than 500,000 digital books.[2] Earlier in July 2010, Hachette said that James Patterson had sold 1.1m e-books to date.

According to a report made by Publishers Weekly, for the first quarter of 2011, e-book sales were up 159.8%; netting sales of $233.1 million. Although adult hard-cover and mass market paperback hard-copies had continued to sell, posting gains in March, all the print segments had declined for the first quarter with the nine mass market houses that report sales. Their findings revealed a 23.4% sales decline, and that children’s paper-back publishers had also declined by 24.1%.[3] E-book sales easily out-distanced mass market paperback sales in the first quarter of 2011 with mass market sales of hard-copy books falling to $123.3 million compared to e-books’ $233.1 million in sales.

According to .net sales report by the March Association of American Publishers (AAP) which collected data and statistics from 1,189 publishers, the adult e-Book sales were $282.3 million in comparison to adult hard-cover book sales which counted $229.6 million during the first quarter of 2012. During the same period in 2011, eBooks revenues were $220.4 million.[4] These reports indicate a disconcerting diminishing demand for hard-copy books.

There are many excellent opportunities for IT professionals to present themselves to corporate entities for future consulting positions. You can find yourself in your next consulting engagement if you are willing to combine your IT skill-set, a good amount of corporate research and a bit of old fashioned moxie. Contrary to popular practice for applying for jobs through placement agencies and recruiters, it’s possible to meet with hiring managers, representing your firm, you, directly.

Although recruiters may not take a fee directly from you, the fact that they charge a fee for their services to a company after your placement may keep them from being able to place you. On the other hand, corporations searching for individuals with advanced knowledge of IT functions cannot rely on the friends and family of current employees to find superior consults in all fields.

What are some other options? First take the time to research corporations you would like to consult with. Look for the ones that most likely are complementary to your area of expertise because of the goods they produce or the services they provide to the public. Or you may opt to choose a company that is geographically close to where you live for the convenience of a short daily commute.  

Another way to find your next consulting job is to actively scan the news and see what corporations are making waves within their individual marketplaces. This is a good indicator of possible expansion and the need to hire on a contractual basis. Another good indicator of a need for IT professionals is a mention of a company relocation or expansion. Growth or renovation of office environments is often accompanied by a modernization of IT systems. Current IT team members may not be relocating or might not be familiar with systems other than the ones they already service.

Do as much research as possible about each corporation from their own websites and other sources dedicated to their particular field of endeavor. This gives you the edge in being able to speak about the IT systems they already have in place or your ideas for adapting their line of work or new product with the use of an IT system advancement. Their websites will often have a list of their corporate management. Make sure you address your cover-letter and resume to not only the Director of Human Resources, but to all executives in charge of their IT departments. Be specific in your abilities and the fact that you can be flexible with hiring arrangements.

Attend job fairs that have an emphasis on the more technical fields. When possible, also circulate your resume both digitally and in paper format to smaller and mid-sized companies. These corporations may not be able to maintain their own full-time IT group for fiscal reasons and your consulting prowess may be able to “save the day” for them in an emergency. You can become part of a corporate team on your own; all it takes is additional work on your part. However after your consultant job placement, you will be pleased that your efforts have succeeded so well.