Category: ideas | 想法 | 생각 | 考える

Ideas were at the at the heart of why I started this blog. One of the first posts that I wrote there being a sweet spot in the complexity of products based on the ideas of Dan Greer. I wrote about the first online election fought by Howard Dean, which now looks like a precursor to the Obama and Trump presidential bids.

I articulated a belief I still have in the benefits of USB thumb drives as the Thumb Drive Gospel. The odd rant about IT, a reflection on the power of loose social networks, thoughts on internet freedom – an idea that that I have come back to touch on numerous times over the years as the online environment has changed.

Many of the ideas that I discussed came from books like Kim and Mauborgne’s Blue Ocean Strategy.

I was able to provide an insider perspective on Brad Garlinghouse’s infamous Peanut Butter-gate debacle. It says a lot about the lack of leadership that Garlinghouse didn’t get fired for what was a power play. Garlinghouse has gone on to become CEO of Ripple.

I built on initial thoughts by Stephen Davies on the intersection between online and public relations with a particular focus on definition to try and come up with unifying ideas.

Or why thought leadership is a less useful idea than demonstrating authority of a particular subject.

I touched on various retailing ideas including the massive expansion in private label products with grades of ‘premiumness’.

I’ve also spent a good deal of time thinking about the role of technology to separate us from the hoi polloi. But this was about active choice rather than an algorithmic filter bubble.

 

  • Shenzhen ecosystem

    It is hard to believe that the Shenzhen ecosystem was built over just a few decades. Just over 30 years ago China moved from a period of cultural isolation to gradually opening up to the commercial world beyond its borders. The place to naturally start this was in Guangdong province close to the then British colony of Hong Kong. A small fishing village grew to become the workshop of the world. The growth of Shenzhen was driven by investment from multi-nationals and overseas Chinese. One of the earliest industrial areas was called Overseas Chinese Town or OCT. OCT has changed from manufacturing to retail and offices for the creative industries in the former factory buildings.

    Hong Kong had built up capability and expertise in light manufacturing and clothing from the 1950s through the 1970s. It is still important for supply chain intermediaries. This was the ‘golden age’ of Hong Kong. This is how many of the Hong Kong oligarchs made their first fortunes; which they then invested overseas, in China and into the Hong Kong real estate market.

    Globalisation had started after the second world war. But the opening up of China threw it into overdrive. Hong Kong industrials moved manufacturing plants for clothing, shoes, toys, plastic goods and electrical appliances to China.

    They were joined by Taiwanese electronics manufacturers and then multinationals from Europe, America and Japan. Hong Kong clothing manufacturers provided China supply chain expertise to western retailers like Walmart.

    The Shenzhen ecosystem was built on manual production. The deft fingers of Chinese women workers allowed a lot more precision than Japanese pick-and-place machines. Which meant a lot more flexibility in manufacturing using the Shenzhen factories. You wouldn’t have an iPhone if you used pick-and-place robots on the production line.

    Electronics manufacturing

    At first, these companies were used to fatten the wallets of customers who took on the marketing and distribution of electronics in the West. The dirty secret about many PC and laptop designs was they were standard underneath. Then this cost saving was passed on to the customer as people like Dell went for close to lowest price operator based on a direct mail / online direct ordering and cut out the channel.

    Finally that wasn’t enough, and most of the laptop and PC resellers make no money. Instead the main people to profit from these sales were Microsoft which licensed it’s Windows operating system and Intel which provided the majority of compatible micro-processors capable of running Windows-compatiable applications. In the PC industry there is usually just two or three profitable manufacturers and one of them is Apple. Historically it was Dell, then Hewlett-Packard and now it is likely to have be Lenovo.

    Shrinking PC-esque computing power into the palm of one’s hand was inevitable with the rise of flash storage and Moore’s Law facilitating power-efficient processors. The challenge is battery technology, packaging and industrial design.  Apple pushed the envelope with suppliers. Hon Hai and other manufacturers installed hundreds of CNC machines to fabricate thousands of metal phone chassis. These radical changes in manufacturing capability were opened up to lower tier manufacturers raising the standard of fit and finish immeasurably over a few years.

    Now Xiaomi and Lenovo product handsets that have better build quality than many Samsung and HTC handsets. The performance is good enough (again thanks to Moore’s Law) and the handsets run the same applications. Sony, HTC and Samsung handsets look as marooned as Sony’s Vaio PC range in the Windows eco-system.

    Shenzhen’s ecosystem has been a great leveller of manufacturing and industrial design capabilities with Apple at the leading edge of what’s possible from an industrial design and materials technology.

    More information
    Shenzhen Government Online – this loads slow like they are phoning the pages in from 2002, but is informative
    The smartphone value system – An earlier piece I wrote about the challenges of the Android eco-system

  • Canada on Twitter

    Canada on twitter will be an event that will have delighted my friend and former colleague Matthias Lüfkens. Matthias founded the    Burson-Marsteller Twiplomacy project. Time spent at the World Economic Forum on social media meant that Twiplomacy has been a long time personal passion of his. The Twiplomacy looked at which countries have accounts and whom they follow and are followed by. The study isn’t exhaustive, for instance it doesn’t cover China’s wolf warrior accounts.

    Canada rolled out an official global account
    Canada on Twitter

    The first post that announced Canada on Twitter showed Canadian self depreciating humour with its ‘eh!’ ending imitating Canadian speech patterns. This account was as much aimed at Canadians as it was at generating digital soft power.

    In reality Canada has had a number of digital diplomacy accounts before aimed at specific interest groups like the European Union or Iran. But don’t let those wrinkles get in the way of a good story.

    And the internet (actually just over half of them Canadian netizens) responded back. As with most political discussions online this was a male-dominated discussion.
    1

    The conversation areas touched upon seemed to mirror the kind of issues that are currently rippling through Canadian politics: the environment, Quebec independence and care for veterans. There was a wonkish strand that talked about this accounts role in digital diplomacy for the Canadian government. Conversationalists also name-dropped well-loved Canadian brands like the Tim Hortons coffee and doughnut chain and the country’s love of ice hockey as the national sport.

    Canadian based brands took time out to welcome their country’s government on to Twitter.
    Canada

    The biggest shock for me was that the account showed blatant favouritism towards Hootsuite compared to other Canadian social monitoring companies like Sysomos. Hootsuite was the only commercial entity that the account followed in what looks like a case of casual nepotism or a default setting in Hootsuite’s management tools. If its Hootsuite’s default setting that’s a scummy way of building followers and engagement. More online related posts here.

  • 1 percent dominance + more things

    This is the proof that the 1 percent have been running the show for 800 years | Quartz – know your place serfs. Interesting long term research on the 1 percent. There is also research that shows that the descendants of Chinese landlords doing better. These would have been the pre-revolutionary 1 percent. This rise of Chinese landlords descendants occurred despite landlords being executed and their families persecuted in China during the Mao era. More economics related content here.

    Rescuing gadgets from the golden age of ‘Made in Japan’ | The Japan Times – inspiring and deeply saddening at the same time

    デザインアンダーグラウンド – ラジカセ・ヴィンテージ家電、オーディオの販売・修理 – Design Underground Factory restoring beautiful Made In Japan consumer electronics

    South Korea puts cost of reunification with North Korea at US$500 billion | South China Morning Post – and I bet it would go up from there due to corruption and security issues

    Recode Drops Comments | Recode – a blog without comments, also has implications for time on site, if I was an advertiser with them I would find this choice very curious

    Beefed up iPhone crypto will lead to a child dying, DOJ warned Apple execs | Ars Technica – the problem is that this has been discredited by experts a number of times and they keep trotting it out

    Technics To Launch FLAC Music Download Store Powered By 7Digital – hypebot – nice to see the name resurrected now about some decent pro-audio and DJ gear?

    Huawei: KRYDER STORAGE CRISIS is REAL and ‘we’re working on it’ | The Register – is the cause of Kryder’s Law shrinkage a move to SSD and lack of investment in disk science?

    Apple Releases Its Most Important Typeface In 20 Years | FastCompany – download the font, really nice

    ‘Qualcomm’s opportunities greater than challenges’ | RTHK – waiting for the second shoe to drop

    Samsung will make far fewer phones next year | GigaOM – reducing SKUs, tidying up the brand and extensions. I guess this also means less risk, innovation and the decline of their successful ‘fast failure’ model

    FB Techwire | Facebook – yet another way of wringing money out of businesses that do ‘over promotional’ posts

    Opera’s app store will replace Nokia Store on feature phones | GigaOM  – and on Symbian handsets

    Why Apple’s absurd valuation makes perfect sense | Quartz – it does seem insane to me….

  • Is PR dead?

    Before I get into the question of is PR dead, I need to make a disclosure: I am a ‘non-PR’ person working in what was until recently a PR agency, but now describes itself as an ‘integrated marketing communications agency that offers influencer identification, mapping and engagement, social and traditional media strategy and execution programmes, digital marketing and creative capabilities.
    Press Conference with Rt Rev Kieran Conry

    Executive summary of is PR dead?

    Is PR dead? It depends on how you define PR as to whether you think it is dead or not. There is a role for PR thinking and PR skill sets.

    Main post on is PR dead?

    It depends by what you define as PR. I consider PR to be the managed interface between an organisation and its publics. It can manifest itself in many ways:

      • The way it does customer service. Wong Kei restaurant in Soho was known and loved for its rude customer service. For the likes of BT or Vodafone, customer service is front line reputation management
      • It is the user experience: paper bills that are clear, correspondence that doesn’t try to bully the recipient, a website that doesn’t try to gouge charges (like Ryanair used to), architecture that adds to an area (like the glass cube of Apple’s famous New York store)
      • It is wrangling regulatory, government and investor relationships
      • There will always be a place for that interface. The people involved lubricate business and help drive growth. PR practitioners have a lot to bring to these areas. They are guardians of brand value.

    Many people consider PR to be a generator of earned media be it a parliamentary question, a broadcast interview, product placement or article.  To this has also been added earned media: corporate reports, press releases, blog posts, social content etc. This area in aggregate looks much less healthy to me.  The work that is safest in this area is where the interface is the critical part of the product: the relationships with the MPs or the key financial journalists and equity analysts and positive coverage is a secondary attribute.

    The problem with is with media being the product that the relationship with a organisation is mediated through. I usually give a Johnny Rottenesque sneer when someone name drops the attention economy. In this particular explanation, having attention and economy together in a term is useful. It is probably the most proper use of ‘attention economy’. There are so many publishers delivering messages (paid and unpaid). It is becoming much harder for the audience to to come across, find, discover and retain messages from media. There is an over-supply of content in comparison to an inelastic number of viewers. Much of the content published is of poor quality.

    The internet is only a part of the phenomena, digital has only accelerated the process.  Media fragmentation and the corresponding over-supply of content in comparison to the amount of available attention has been on us for a while:

        • Multi-channel TV – back in 1992 Bruce Springsteen wrote 57 Channels (and Nothin’ On) – hardly an academic study but it only feels more relevant now.
        • Racks of magazines – going into a WHSmith or through the Gorkana database confronts you with a sea of publications you have no idea would have existed. And I suspect the amount of magazines and other media that have gone out of publication would dwarf the number of those currently in publication
        • Record label back catalogues – before the iTunes catalogue and Amazon the total sum of records available to order from a record shop was contained in about 3  desk busting directories from the main record distributors. These books were like a few phone books put together in terms of thickness. Items regularly got deleted from circulation. With each change of format: vinyl, cassette and CD different back catalogue content didn’t make the transfer. Bit torrent was popular among people I knew because they could get ripped recordings that weren’t available in digital formats elsewhere. And yet new content keeps coming out
        • Free newspapers – my Dad loves the two free newspapers that come through the door of my parents house each week. They protect the carpet when he is painting, wrap apples from the garden that he puts into storage around about this time of year and act as packing material for the parcels that are sent back to the family in Ireland. But he doesn’t read them. The Tower Hamlets council-published paper I receive goes straight into recycling unless I have something to sell on eBay
        • Film archives: a quick glance at iMDB shows the amount of content that was created and wasn’t transferred on to laser disc, DVD, Blu-Ray or digital video files. It is a similar pattern to music libraries, yet YouTube has some 100 hours per minute being uploaded

    Psychologists have found that even small decisions around consumer choices require energy and add to fatigue. The content surplus only exasperates that psychological process.

    When we look at social platforms we see the decline in reach for a mixture of reasons:

        • Maximising revenue by encouraging brands to use advertising to put content in front of their communities
        • The sheer volume of content driving brand content out of feeds as a ‘firehouse’

    When I started in PR I often heard Elvis Costello paraphrased that ‘yesterday’s news is tomorrow’s chip paper’. But now that flow is generally much shorter. This means that there is less of a chance to get a return on investment on a given piece of PR activity. It will reach less people and relevant for a shorter time.

    There are extreme effects at the end of the bell curve. Google ‘BP rig disaster’; there are about 2,400,ooo results related to the Deepwater Horizon oil spill in the Gulf of Mexico. Look up ‘Kryptonite lock’, and on the first page you find a video about opening the lock with a Bic pen. This is some ten years after Benjamin Running’s famous video demonstration. Both brands still have their reputational crises.

    A secondary aspect of the content over-supply is the effect is had had on the media industry. Many ‘traditional’ media brands have struggled to make a profit. The Guardian is one of the most progressive publications, in terms of the future of media. The Guardian has been at the forefront of technological development and still doesn’t make a profit. It has tried to improve by getting bigger with its US online edition.

    Other publishers like News International experimented with varying degrees of success around paywall models. At the time of writing, The New Yorker has introduced a metered paywall, which is watched eagerly as the media industry still can’t agree on a successful business model. Economics have disrupted the influencers that PRs most cared about.

    The reach issue now means that we consider using advertising to gain more traffic to the best pieces of coverage that we get for some of our clients. From a marketers perspective, PR starts to look less attractive. It also means that including PR in their bag of tricks makes more sense for other marketing disciplines.

    I went to the IAB’s session during Social Media Week London. Advertising and media agencies presented back PR campaigns. These were done using social channels, promoted with varying degrees of advertising on social platforms. This PR activity was described as social media marketing or content marketing. PR becomes a small increment on the existing advertising spend. When PR agencies branch into other areas they look like a riskier risk as this often represents multiples on their previous budget.

    Chipotle and post modernism

    Finally there is the business of PR and that’s where I think it gets a bit post modern. How many PR agencies are really PR agencies any more? Richard Edelman talks about his company still being a PR agency. Yet how many clients who would think that, given the company’s flagship work for clients like the Chipotle?

    The scarecrow film was done in conjunction with Creative Artists Agency. Work like this positions Edelman much more like an advertising agency.


    In my own agency, I have colleagues that do a lot of media and blogger relations. I support their work through insights but the the bulk of my work is around media buying. From straight-up search pay-per-click ad campaigns to promoted social accounts.

    I have just finished a new business pitch, a key tenet of our big idea was for the brand to publish their own sector media outlet with a light touch of branding. This was because there was a void in their sector.

    Harmful labeling

    As you can see on the introduction to this post, we don’t even bother calling ourselves a PR agency. We have done this because that is the business reality that we have to live with. So in some respects even the PR business has given credence to supporting a viewpoint towards PR less future as an answer to the question of is PR dead?

    And I am ok with this. In some cultures, you have a ‘true’ name that you never use or give out widely. There also have a given name that used during their everyday interactions. The true name has power, a magic of its own, that can be used to harm the person. For the PR business; the true name has a negative power and many of use will shrug it off despite what professional bodies may want.

    Is it PR any more?

    Others may stumble into doing PR work and not even realise that they is the case, are they then part of the PR business? I am happy for my industry to become post-modern, for PR to become it’s secret ‘true’ name as a marketing singularity pushes agencies towards a mix of paid, earned and owned media. I am even happy with the ‘white’ lie that PR is dead because then I can just get on with what I do for a living. I can move between agencies without silos and advance my career further. Give me a shovel and I will help bury the PR business.

    More information

    The media is dying, does PR have cancer? | renaissance chambara – an old post of mine from 2009, much of what I said in it I still consider to be valid, but it now has an added sense of urgency
    YouTube Statistics
    PR isn’t dying, but PR agencies might… | Jed Hallam
    The future of PR starts with you | Stephen Waddington on LinkedIn
    The public relations industry’s confidence problem | Stephen Waddington

  • Beheadings + more things

    The Laborers Who Keep Dick Pics and Beheadings Out of Your Facebook Feed | WIRED – moderation might make up half the staffing numbers of social media sites. The materials is not only traumatic for the moderation staff, but often criminal evidence. Deleting beheadings might be disposing of war crimes evidence. As repulsive as beheadings are, they could be responsible for ensuring criminals get the justice that they deserve.

    China’s Assault on Corruption Enters the C-Suite | WSJ – could also be encouraging management to move the business out of the state sector

    HP Eyes Chinese Partner For Router Division | Young’s China Business – not convinced about the upside for Huawei given that it has already built an enterprise business

    Programmatic buying no solution without data breakthrough | Campaign Asia – data sharing a key issue

    China Mobile’s ARPU Drops While Net Profit Sinks 9.7% – voice calls and SMS down presumably due to OTT messaging services

    Daring Fireball: Retailers Are Disabling NFC to Block Apple Pay – not convinced but it is an interesting move, they think that mobile wallets give them a chance to disintermediate merchant services (bank debit card services, credit card services, charge cards)

    LG unveils Nuclun, its very own smartphone chip | The Inquirer – interesting move by LG; a stratagem to cut costs and differentiate in a commoditised Android handset marketplace. Expect the chipset to move into other consumer electronics

    Want to dance? Cabinet approves revised law easing regulations on dance clubs | Asahi Shimbun – Japan eases laws that was killing its dance music scene, probably about the Olympics in 2020. The LDP will be kill joys on nightlife in the future again

    Facebook and Yahoo Find a New Way to Save the Web’s Lost Email Addresses | WIRED – Aol should be crying out be part of this as well surely?

    The Asian Luxury Market Is Stumbling – Business Insider – Thailand and Hong Kong apparently

    footnoted* — What’s $8m to Google? – interesting article about Nikesh Arora. Is this similar to his departure from T-Mobile?

    Procter & Gamble Sets Duracell on New, Independent Course – NYTimes.com – interesting move, how will it affect Duracell distribution?

    High-tech jewellery to help you unplug | Tech blog – interesting and smart (from a design perspective) lack of ambition for the devices, context is king

    William Gibson: The Future Will View Us “As a Joke” | Mother Jones – any interview with William Gibson is a good thing

    Peak Google | stratechery by Ben Thompson – interesting article

    Apple Strengthens Pull of Its Orbit With Each Device – NYTimes.com – interesting analysis – Google is going on a similar trajectory and Microsoft has already been there for a while (paywall)

    Luxury goods: The end of ostentation | Campaign Asia – APAC markets less interested in flash luxury (paywall)

    Tod’s ignites ecommerce sales with online only handbag promotion | Luxury Daily – limited edition bag rather than discounts

    Material Design Icons | Prosthetic Knowledge – Google have open sourced a pile of icons

    False and misleading? Advertising on social media in China and Hong Kong | Freshfields – great summary of the legal position (PDF)

    Quick Reply – PressRush – interesting idea for the media

    94% of Chinese shoppers research on mobile while in-store. | Resonance China – comparison numbers with other countries in Europe

    China collecting Apple iCloud data; attack coincides with launch of new iPhone | GreatFire.org – probably implemented to deal with the increased device security that the FBI is wringing their hands about