Category: business | 商業 | 상업 | ビジネス

My interest in business or commercial activity first started when a work friend of my Mum visited our family. She brought a book on commerce which is what business studies would have been called decades earlier. I read the book and that piqued my interest.

At the end of your third year in secondary school you are allowed to pick optional classes that you will take exams in. this is supposed to be something that you’re free to chose.

I was interested in business studies (partly because my friend Joe was doing it). But the school decided that they wanted me to do physics and chemistry instead and they did the same for my advanced level exams because I had done well in the normal level ones. School had a lot to answer for, but fortunately I managed to get back on track with college.

Eventually I finally managed to do pass a foundational course at night school whilst working in industry. I used that to then help me go and study for a degree in marketing.

I work in advertising now. And had previously worked in petrochemicals, plastics and optical fibre manfacture. All of which revolve around business. That’s why you find a business section here on my blog.

Business tends to cover a wide range of sectors that catch my eye over time. Business usually covers sectors that I don’t write about that much, but that have an outside impact on wider economics. So real estate would have been on my radar during the 2008 recession.

  • Immediacy as a problem

    Immediacy is a relatively recent phenomena for consumers. It has changed the work and personal lives of consumers. It has eroded the barrier between work life and home life. It has redefined our support networks and friendships.

    Before I wrote this post, I had conversation with a friend working on a project in Singapore who’d had an eventful few days. With zero thought I was able to see if he was online and reach out and see how things were going.

    I’ve worked with clients who seem to email or message around the clock. For a while Snapchat streaks of several days were a thing – highlighting extreme immediacy in consumer behaviour.

    What did life before immediacy look like?

    I can remember the start of a working life without the mobile phone, or email. Fax machines were not items generally found in homes. You could buy them in Argos or the Viking catalogue with cheap thermal printing technology.

    Sky had launched their analogue satellite business, but there also fanatics who had directed dishes. They were a very expensive version of radio hams and CB radios.

    Satellite and cable TV meant choice. Some channels specialised and CNN specialised in constant news from around the world. Its ability to report events in near real-time came into sharp focus during the first Gulf War. Like most Europeans to me CNN was an idea, I didn’t actually have it in my own home. But it gave a deceptive taster of what always-on connectedness actually meant.

    Home computers were distinct and separate platforms from business computing. Dragon, Sinclair Research, the Commodore 64 and Amiga. Atari moved into computing and saw success with the ST. Windows and Mac had only started to weave its way into European households.

    The cassette was starting to be challenged by the CD in terms of personal media. The CD burner would arrive in mainstream homes a little bit after the Mac and the PC; right around the time of consumer dial-up internet access.

    Personal communications meant:

    • A phone card that worked in telephone boxes
    • A telephone extension fitted with a nod and a wink by friend who’d worked at the phone company

    There was no free local calling so the American gen-X behaviour of spending the evening on the phone to your friends didn’t happen so much in the UK and Europe.

    Do-it-yourself culture meant:

    • Fanzines created on a photocopier
    • Setting up an independent record label
    • Running a club night

    For medium and large companies there was an internal mail system. Mail would be exchanged between sites via a courier service overnight. The package would be opened and then distributed by an internal mail room.

    I worked in the oil industry at the time, so we could do international communications through telex. Telex was a legal document. The best analogy I had for it would be if your office had a collective email address. When a message came in, these would be printed and then distributed by the internal post system.

    Communications was a batch process for workers. In terms of importance as a task; communications was something that happened alongside the rest of your job. You might open your post mid-morning. You’d drop off any internal mail to a wire basket by reception by mid afternoon.

    Immediacy in communications started first with PBXs (private branch exchanges). The office phone on every desk and at each point on a production line changed things. Direct dial out changed things up, you could phone suppliers directly. You could arrange for information to be sent to the office or work site fax machine. Receiving a fax would be a big event in your day. You’d wait by the fax machine to receive it. Later on as fax traffic increased; you’d get a call from reception to pick up your fax.

    Now, many modern workspaces don’t have office phones, or if they do – they aren’t well maintained and on the way out.

    Bigger companies had office phones paired with a voice mail system and ‘while you were out’ Post-It notes were a thing.

    While you were out

    Mobile phones changed everything. My first mobile phone was a luggable phone that looked more like a piece of military equipment. It was used when I would be driving away from the office in a company car. The phone was strapped into the passenger seat.

    Smaller models changed the game for sales people, plumbers and mobile locksmiths. I bought my first pager whilst at college. It was a text messenger where people would leave a message with an operator and this would be then sent on to me. Occasionally I didn’t get a message, it wasn’t as reliable as SMS is now.

    In enterprises, internal email came along with the use of mini-computers. The first email account that I used, communicated internally. It ran on a DEC VAX mini-computer and I accessed it via VT100 terminal emulator running on a Mac Classic.

    Very few people used email in the company. It was easier to get things in and out of the fax machine. Memos went on bulletin boards, people called each other or walked around the site.

    In the US, free local calls, saw the rise of dial up services like AOL, Prodigy and CompuServe as a mass consumer service. Chat rooms might have been the reason why people signed up. Computer-based email and messaging quickly became the killer application.

    In Europe the rise of 2G or GSM phones and SMS played a similar roles. My first personal mobile phone, came with SMS. At first it wasn’t much use, but when I moved down to London and started working in agencies I could message colleagues.

    Businesses got on the internet. Companies used pre-internet protocols to exchange stock and financial information between sites. Often it was creative businesses first. ISDN lines offered a way of sending artwork directly to printers in a secure manner. It was a small perceptual jump to move from ISDN exchange to internet usage.

    These businesses usually had a single email account for the business that was checked twice a day if that.

    At college I got a glimpse of the future. We had internet over the JANET system. Liverpool had its first cyber cafe with a decent expresso machine and homemade carrot cake. I signed up for a Yahoo! account prior to leaving college. I wrote my emails as text documents on a Mac and took them to Liverpool on a Saturday. I would spend an hour sending my emails, keeping in touch with friends and applying to jobs I’d read about. I’d find out about jobs in The Guardian newspaper or marketing magazines. It was around about this time that I started buying the US edition of Wired magazine. It’s neon typography promised a cyber-utopian future.

    Immediacy – the problem

    At the time we didn’t see immediacy as the issue.

    The problem was time keeping. Before the mobile phone, you would show up on time to a pub or a bar. But with SMS you could let people know if you were running late.

    The second bug bear was information overload. It took as little effort to copy in 20 people on an email as it did to send it to one person. The web was still frustratingly slow. The speed that pages would load would grind to a halt when America woke up.

    Yahoo Office Attachments Screengrab

    There were no social norms and ettiquette. Memes came around as attachments to emails, clogging up your account. Yahoo! used to have a section of meme-worthy videos and images on its site called ‘Office Attachments’ in a nod to this habit. Everything would be shared; a watershed moment was the Claire Swire email.

    It was around about this time that people started to question the impact of communications had on productivity. It was certainly more convenient, but you lost a corresponding amount of time wading through your email inbox.

    There was also a corresponding expectation in a faster response because of the convenience. So what did we lose? We lost time. If we think about CNN and other 24 hour news channels, it is easy to see what was lost through immediacy:

    • Editorial space to make sense of things
    • Analysis rather than talking heads
    • A bigger perspective rather than just ‘the now’, all the time

    In agencies, the situation was rather similar. I was chatting to a senior person in client services at a major advertising agency. To paraphrase that they said: client service was better without email. Why? Because:

    • It gave them time to get things done
    • To make things happen
    • To investigate the best options
    • To craft an appropriate considered response that would be to the benefit of all parties
    • It allowed emotional reactions on all side to subside
    • To get the bigger picture in a way that isn’t possible to the same extent now

    Instead things get escalated to senior executives so they can be talked about in-person or over the phone.

    Technological snake oil

    Having started my agency career working in the technology sector, I have a good idea of how the sales cycle works. Each new generation vendor finds ways to deal with unintended consequences of the past. The rationales have generally stayed the same.

    • Productivity – but they often mistake productivity for the illusion of immediacy. Something happening now! It doesn’t matter what it is, but the feeling that something’s moving
    • Speed (or agility) – the idea that immediacy engenders some sort of superior performance in a reinvention of Taylorism for bureaucracy
    • Scalability – that it will cater with no growing pains for any size of organisation
    • Reliability – it will work regardless of whatever happens… until it doesn’t. It creates the illusion that it isn’t the system thats wrong, but the individuals. The reality is that the process design in the application usually doesn’t capture all scenarios

    In communications there has been a plethora of systems.

    • Digital All-In-One
    • WordPerfect Office
    • Microsoft Office
    • Novell NetWare and GroupWise
    • Microsoft Exchange and Office
    • Lotus Notes
    • Oracle BeeHive

    Slack is the latest in a long line of collaborative tools. But it spreads the communications like peanut butter rather than reducing to an optimal level of information. This is not Slack’s problem. For what it is, its a well designed application. The problem is that we still think immediacy is cardinal.

  • Innovation in hardware + more

    Innovation in hardware

    How Streetwear Is Driving Innovation in Hardware | HYPEBEAST – the innovation in hardware that Hypebeast is concerned about is fasteners clips and connectors in clothing and accessories. Some streetwear brands are using zips in a similar way to Vivienne Westwood during punk. They are borrowing from technical clothing, military gear and alpine sports for inspiration. More design related content here.

    Branding

    Cause Marketing Isn’t Working for Young People – Adweekaccording to DoSomething’s survey, “Nike still only secured a 60% aided awareness of an association with any cause at all and only 27% with racial justice.” – doesn’t work unless it goes beyond a single campaign. This also has implication for this work and ZBB

    FMCG

    P&G’s Pritchard wants to ‘reinvent’ advertising with films as streaming disrupts landscape – literally going back to soap operas

    Legal

    Brussels poised to probe Apple over Spotify’s fees complaint | Financial Times – Spotify trying to weaponise anti trust law against Apple in a similar way to Amazon did in the US over Apple Books a number of years earlier. Spotify | Time to Play Fair – of course, fails to discuss issue of when is Spotify going to play fair with artists?

    Luxury

    Ralph Lauren’s CMO on retelling its brand story to ‘reach the kid looking for Supreme’ | The Drum“We’ve marketed those in a very bespoke, very direct way to newer audiences. We can market on one hand to someone who’s been into the brand for 20, 30 years, who wore Polo Sport back in the 90s, but we can also market that product mix and that story to a younger kid who’s looking for Supreme. – hype isn’t only about media targeting yet according to this puff piece its all about digital media technology which is BS. It indicates a wider lack of focus there on craft, planning style insights, design, curation, the move to online ‘drops’ on certain collections

    Media

    Where North and South Korea Meet: On TV – The New York Times – I do feel a bit concerned that these people aren’t treated with more respect (paywall)

    Vince McMahon’s XFL Sets TV Deals With Disney, Fox | Hollywood Reporter – second time around. The league originally ran in 2001 and then folded with a 50+ million dollar loss

    Technology

    Anki shutting down despite $200 million in funding – Axios – bigger question consumers must start to have about having cloud in the product, is it really that smart as a model. I personally don’t think so. Also should cloud and product be sold by different companies a la Alexia and Harmon Kardon etc

    Why doesn’t Britain have a Huawei of its own? The answer speaks volumes | The Guardian – goes back further than Thatcher with the wider UK banking culture, Walker, Goldsmith, Rowland. The lack of a long term management culture and lack of equivalent to the landesbank’s of Germany. But a good deal of the blame has to be laid at the feet of BT

    How the Apple Store Lost Its Luster | Bloomberg – Angela Ahrendts was a paper tiger in Apple’s retail stores. But I’ve not had as bad as an experience as the ones outlined in the article

    DeepGlint: the Chinese AI firm that helped police catch a criminal who had been on the run for 20 years | South China Morning Post – is it China’s technology or its implementation that is more of a paradigm shift. I am inclined to think implementation

  • Peepy and Mother Lee + more things

    Peepy and Mother Lee take influence to the next level. These Thai influencers are on point with style that crosses gender boundaries and is atemporal in nature. I am surprised the Peepy and Mother Lee don’t get more publicity outside Thailand. I am also surprised that they haven’t become the muse of a prominent fashion house or two.

    They look like precisely the kind of people someone like Vivienne Westwood would embrace as a muse. More on luxury here.

    Yet another way of landing the same Burger King message: Burger King’s flame-grilled glasses are too hot to handle | Creativepool. Having worked on FMCG brand, I know how hard it is to continually land the same messages in different ways that won’t generate groans from the client base. These are brands that people have known for decades, it’s hard to say the same thing in different ways that don’t jade audiences.

    This Adobe marketing gimmick was going around a lot of the people that I know – Creative Types – the characters are nicely drawn, but I don’t know how accurate they are. I suspect something even less accurate than the MBTI. This was clever because people want to find out more about themselves, its an itch that they can’t help but scratch. In return Adobe builds their marketing email list.

    Great economic analysis on China from the DLD Conference earlier this year

    Tristan Harris is getting a lot of traction for his message in wonkish circles and I don’t see big technology firms having their ducks in a row to deal with the outcome. I suspect that some of the problem might be what I describe as a wilful autism. 20 years ago, Silicon Valley was a place with utopian outlook, the unforeseen outcomes happened when the internet reached a societal critical mass.

  • Spy craft disruption + more

    The Spy craft Revolution – Foreign Policy – really interesting to read from a privacy perspective, spy craft affected as much as general public. Intelligence agencies are apparently just like the rest of us and spy craft reflects this. More security related posts here.

    Algocurios – this is what happens when you plug Matt Muir into a machine learning algorithm. I’m just thankful SkyNet didn’t evolve. It doesn’t capture the desperation, profane language and ennui prevalent in Matt’s real posts

    Vodafone Found Hidden Backdoors in Huawei Equipment – Bloomberg – lots of reasons why this might be mostly dilute to poor software engineering practices but it doesn’t help Huawei reputation

    Opinion | Is China the World’s Loan Shark? – The New York Times – academics who have studied China’s practices in detail have found scant evidence of a pattern indicating that Chinese banks, acting at the government’s behest, are deliberately over-lending or funding loss-making projects to secure strategic advantages for China.

    A Conversation With Christopher Wray | Council on Foreign Relations – China poses multi-level threat to US (and the rest of the world if we’re honest about it)

    KaiOS takes on the Apple-Android mobile duopoly – Wizard of OS – given Google’s investment in KaiOS it could still be considered a duopoly of wireless OS’ – also shows what Nokia left on the table

    Brit spy chief: We need trust or we won’t have a ‘licence to operate in cyberspace’ • The Register – “must have the legal, ethical and regulatory regimes to foster public trust, without which we just don’t have a licence to operate in cyberspace”.

    Ralph Lauren Unveils The Super Woke Polo Shirt | Luxury Insidera debut line of polo shirts made from recycled plastic bottles and dyed using a waterless production process. Besides being environmentally woke, the initiative has the noble aim of eradicating 170 million plastic bottles from landfills and oceans by 2025

    How the Kleiner Perkins Empire Fell | Fortune – just wow

    INTERVIEW: China seeking win with information warfare: professor – Taipei Times – interesting if depressing interview

    UK High Court confirms the way GSM gateways were banned was illegal • The Register – interesting reading

    Spotify Premium Adds 3 Million US Members | Consumer Intelligence Research Partners – keeping churn stable and improving conversion from free to paid (PDF)

    Malaysia’s sovereign wealth fund Khazanah closes London office: Report – probably a mix of 1MDB and Brexit

    A Specter Is Haunting Xi’s China: ‘Mr. Democracy’ | The New York Review of Books – interesting if very optimistic reading for the papers quoted

    Baidu is reportedly incubating a music app to defend itself against ByteDance – KrASIA – Tencent already has a number of music apps in China

  • The Apple – Qualcomm deal post

    The Apple and Qualcomm deal ceased legal hostilities and lots of people have kicked around theories. But no one seems to definitively know what happened. And what the implications are for Apple.

    • If Apple was on such a sticky wicket, why didn’t it make a deal with Qualcomm earlier? A judge had asked them to sit down right at the beginning and they got nowhere
    • Did Intel explain to Apple that it wasn’t going to hit its engineering targets on the 5G modem (a la IBM and the PowerPCs that used to power Macs)? Or did Apple cut Intel off at the knees?
    • What does this all mean for Intel processors and components in Macs? From CPUs to USB C connectivity Apple is dependent on Intel. Even if Apple decided to move to an ARM architecture they would still likely need Intel foundries and connectivity processors. Before you talk about the Mac now being a small part of the business. Consider what mobile apps and even the iOS is developed upon. Secondly a Mac user is far more likely to be an iPhone, iPad, Apple Watch and Apple TV customer
    • From a functional handset perspective I am not convinced about the benefit of 5G. But from a marketing perspective it could be very damaging to Apple eventually. How far behind would Apple developing a new 5G solution from scratch be? It would be reasonable to expect for Qualcomm to service other clients first and then only put under performing engineers on Apple as a punishment duty. Given that Qualcomm laid off engineering teams, engineers may only work on Apple grudgingly. Is it even viable for Apple to bother with 5G iPhone? If we look at history, the Qualcomm – Nokia IP deal was the beginning of the end for the Nokia handset business in 2007. Apple might lose money up front, but it would save on the kind of value destruction Nokia went through
    • What is the state of Apple’s relationships with the rest of its supply chain and can it expect a kicking?
    • Whilst mobile carriers wouldn’t be happy to have a single OS eco-system in smartphones, they’ve had zero success in championing other platforms (BlackBerry, Windows Mobile, WebOS and SailfishOS). All of this would make them even more beholden to Google. So would an alternative OS’ spring up to fill the iPhone gap?
    • Can Qualcomm use this to try and smother antitrust investigations outside the US?