Category: innovation | 革新 | 독창성 | 改変

Innovation, alongside disruption are two of the most overused words in business at the moment. Like obscenity, many people have their own idea of what innovation is.

Judy Estrin wrote one of the best books about the subject and describes it in terms of hard and soft innovation.

  • Hard innovation is companies like Intel or Qualcomm at the cutting edge of computer science, materials science and physics
  • Soft innovation would be companies like Facebook or Yahoo!. Companies that might create new software but didn’t really add to the corpus of innovation

Silicon Valley has moved from hard to soft innovation as it moved away from actually making things. Santa Clara country no longer deserves its Silicon Valley appellation any more than it deserved the previous ‘garden of delights’ as the apricot orchards turned into factories, office campus buildings and suburbs. It’s probably no coincidence that that expertise has moved east to Taiwan due to globalisation.

It can also be more process orientated shaking up an industry. Years ago I worked at an agency at the time of writing is now called WE Worldwide. At the time the client base was predominantly in business technology, consumer technology and pharmaceutical clients.

The company was looking to build a dedicated presence in consumer marketing. One of the business executives brings along a new business opportunity. The company made fancy crisps (chips in the American parlance). They did so using a virtual model. Having private label manufacturers make to the snacks to their recipe and specification. This went down badly with one of the agency’s founders saying ‘I don’t see what’s innovative about that’. She’d worked exclusively in the IT space and thought any software widget was an innovation. She couldn’t appreciate how this start-ups approach challenged the likes of P&G or Kraft Foods.

  • Gucci + more news

    Gucci

    Shenzhen sweatshop allegations force Gucci to act – FT.com – PR nightmare and management FAIL for Gucci. The Gucci story is unusual in that it affects service workers. Luxury in Asia requires a certain servility of service that I find uncomfortable and the Gucci story of long oppressive days for retail staff sounds emblematic of it. That its happening in the Gucci Shenzhen store doesn’t surprise me at all

    China

    China Favors Direct Investment to Create ‘New Blood’ in Europe – WSJ

    Maersk builds LatAm “reefer” factory | FT.com – because the cost of production is growing faster in China than Latin America

    Consumer behaviour

    What Wealthy Women Really Want – WSJ

    For Their Children, Many E-Book Fans Insist on Paper – NYTimes.com – the tactile arguments for toddlers are the same reason why I prefer print books

    Culture

    Alan Moore – meet the man behind the protest mask | The Observer – it was a nice literary tail for the Guardian to loop back with Alan Moore

    Paris Review – The Art of Fiction No. 211, William Gibson – interview with the cyber punk don

    Economics

    Housing prices fall in Chinese cities – FT.com – property developers and small businesses have been suffering

    Brussels warns on risk of UK double-dip – FT.com – UK economy stagnating and government’s deficit reduction strategy isn’t working according to a European Commission report – a deep and prolonged recession complemented by continued market turmoil cannot be excluded

    The way (not) to rein in the yen – FT.com A more aggressive quantitative easing programme, targeting 10-year government bonds instead of shorter maturities, would contribute more decisively to ease the pressure on the exchange rate. More importantly, it would also stimulate the largely stagnant domestic economy (paywall)

    The Long Haul to Capitalizing on Web Trends – Digits – WSJAccording to comScore Inc., almost 62% of the ads shown on Facebook in the July through September quarter came from advertisers that are not among the top 1000 digital advertisers in the U.S.; on Yahoo Inc., just 23% come from such small advertisers. These sorts of Facebook advertisers range from nail salons marketing to people who live a particular town, to recruiters targeting employees at a specific company – going down the long tail due to targeting ability, not great on context like Google local search though

    Ideas

    Information: Be careful what you signal | The Economist

    Possibility Is Thrust of 100-Year Starship Study – NYTimes.comin 10,000 years, the speed of humans has jumped by a factor of about 10,000, from a stroll (2.6 m.p.h.) to the Apollo astronauts’ return from the Moon (26,000 m.p.h.). Reaching the nearest stars in reasonable time — decades, not centuries — would require a velocity jump of another factor of 10,000

    Innovation

    Marubeni Launches 3D Printing Service — Tech-On! – interesting that it is aimed at making precision resin dies etc

    Japan

    Japan’s #1 Mascots: Kumamon, Bary-san, and Nishiko-kun | Japan Probe – Japan seems to have mascots for everything, kind of cool actually

    Japan Today | Toshiba to close three semiconductor plants

    Korea

    South Korea’s economy: What do you do when you reach the top? | The Economist – interesting economic profile on Korea

    Luxury

    Von Furstenberg to Chinese Women: Stop Chasing Men – WSJ

    The rise of quiet luxury: Understated chic that is very, very expensive. – Slate Magazine

    China’s Menswear Market (Quietly) Booming « Jing Daily

    Luxury’s anti-social (media) brigade | FT.com – variable adoption

    Brussels finally recognises luxury | FT.com

    Luxury Second-Hand Shops Spreading Like Wildfire In China | Jing Daily

    The moral of Dior’s numbers | FT.com – Galliano story didn’t affect Dior sales

    Media

    Secret documents reveal the flimsy case for Ofcom to give into BBC’s public TV DRM demands – Boing Boing

    Technology

    HP CEO: Apple will become market leader in personal computers | MacNews

    Wireless

    Nokia’s Microsoft Phones May Not Get Traction, Analyst Says – NYTimes.com – no USP, apart from a bucketload of advertising

  • Systeme D

    According to Foreign Policy, the D in Systeme D comes from the French word débrouillard which is used to describe people who are ingenious or resourceful. In the Francophone companies being resourceful means operating outside of proscribed government regulation and bootstrap entrepreneurship hence, systeme D. Back in France, this might have been applied to people smuggling in a new fangled personal computer into the workplace.

    Foreign Policy writer Robert Neuwirth argues that this grey economy exists across the developing world and has been driving economic activity from Chinese factories to African bazaars. Back when I was first visiting Hong Kong, there was a stream of west African business people travelling to Hong Kong. They would go to Chungkung Mansion. Buy a suitcase full of electronics (predominantly cellphones)  and then get a flight home. 

    There was then larger scale players based in Shenzhen and Guangzhou buying product. They then either supplied the merchants of Chungkung Mansions or shipped product home by the container load. Who knows what would happen with the customs in their destination country. Systeme D often relies on the kind of manufacturers relying on shanzhai style innovation. 

    Whilst this black economy would be seen as detrimental in developed countries due to it undermining a system that broadly works (look at the Greek government’s problems with non-payment of taxes). In developing countries where governments are less likely to be looking out for their citizens interests – so the black economy can be considered to be having partly a positive impact.

    The latest trend is that a lot of mainland Chinese people who have worked on infrastructure projects in Africa staying behind and becoming merchants, cutting African entrepreneurs out of the Systeme D model. There are well over a million of these Chinese entrepreneurs now doing business across sub Saharan Africa.

    More information

    The Shadow Superpower – By Robert Neuwirth | Foreign Policy

  • Video futures

    Peter Jackson has been shooting a really interesting video diary for the forthcoming Hobbit two-part film. Whilst all the Tolkien geeks are pouring over it salivating at what they are going to spend their next ten year’s disposable income on, I was curious to know what it was likely to tell us about the future of video. Jackson heads up Weta Workshop and Weta Digital, constantly innovating in video production. Below is the first entry, it is worthwhile working through all of them

    • Technology still hasn’t addressed the need to shoot 3D in an elegant way. Much of this is down to the fact that the economics and scale that has driven semiconductor innovation hasn’t been replicated in other aspects of technology such as camera optics, so they use Heath Robinson-esque mirrored set ups to get around the interocular (replicate the distance between your eyes) distance issue
    • The amount of dedicated cameras that Jackson is having to use suggests that 3D product isn’t likely to come down in cost anytime soon; so we are still likely to have shoddy post-production versions plied on cinema audiences for a good while yet. I could see the demand for 3D dying out, at least until VR starts to make a serious impact on lean back experiences.
    • Higher frame rates make a difference. I hadn’t realised that the human eye can distinguish at up to the equivalent of 60 frames per second. Shooting at this speed makes imagery more believable. So we are more likely to go to 60fps 4K video than 24fps at 8K resolution.
    • Digital doesn’t mean perfect reproduction. If you’ve listened to an iPod versus a decent CD player; or a decent CD player versus a decent record player – it would be easy to understand this point; despite the historic branding as digital having a higher fidelity to the original. However it was still interesting to hear how the high quality digital cameras de-saturate the video and the make-up artists and set designers have to work hard to compensate for the colour loss on screen

    More related content, alongside other aspects of technology can be found here.

  • London conference on cyberspace

    The Foreign and Commonwealth Office of the British Government has always had the best online presence of all the different government departments, but I still find it interesting that it is they rather than the department of media and culture who are looking to lead a discussion on the future of the web and associated technologies. The FCO are hosting a conference on cyberspace in London on November 1-2, 2011 and are extending it online through social media platforms. I can’t help but feel the dialogue is aimed as much within the UK as internationally.

    Of course, the ironic thing is that the UK isn’t at all progressive in terms of all things internet related compared to the likes of South Korea, Singapore, Hong Kong, Australia, Iceland or Finland to name but a few countries. The Digital Economy Bill and actions done by the likes of Ed Vaizey have shown resistance rather than working out how it can benefit from the change. The music industry tried to fight the change and has torn itself apart so it will be interesting to see how that stance will work out. I look forward to following the conference on cyberspace; in cyberspace.

    Find out more here. More online related topics here.

  • Think Outside Stowaway

    I first got hold of a Think Outside Stowaway portable keyboard at the start of my agency career. It was 2000, the over-enthusiasm for internet-based businesses, alternative telecoms providers and Linux eco-system businesses was in full-swing and I was building my agency career helping further fuel the economic bubble.

    Broadband wasn’t a word in common parlance, streaming video windows were about the size of a postage stamp; that didn’t stop sites like UK business technology site Silicon.com from trying to develop and promote video content for the web.

    We weren’t living in the real-time always-on world of now. At this time wi-fi devices were online starting to be launched on to the market and was some way from adoption. Wireless meant using IrDA infra-red connections between devices (like a TV remote control having a long conversation) and wireless data meant the then new digital mobile phone networks with SMS and patchy voice services.

    You could could get some Nokia and Ericsson phones to talk to other devices to connect to the internet but it wasn’t cheap. The only people I knew who used it were news photographers getting pictures over to picture desks at photo agencies and newspapers.

    My biggest client at the time was Palm who were spun out of 3Com with Carl Yankowski at the head of the company and Bill Maggs as CTO.

    I had gone out and bought a Palm Vx PDA three weeks before being put on the account (where I would have got one for free).  The Vx became my primary computing device, as I was away from home much of them working in the office, at client meetings or traveling. I started to write on it, but the stylus would only get you so far.

    I had looked at devices like the AlphaSmart 3000, which was cheap, ran on three AA batteries for weeks at a time, and could transfer text via USB. It had proper keys with decent travel on them and was sturdily made, but it had a similar footprint to a modern-day 13-inch MacBook Pro.

    I eventually ordered a Think Outside Stowaway portable keyboard from Amazon in the US. The keyboard used the Palm Vx as its ‘computer’ and and PDA became a compact word processor that would fit into two jacket pockets and was more productive than even the current iPad.

    I managed to draft emails to colleagues, positioning documents, media tour briefing documents and press releases on it. You could type away quite happily on the train or an airplane, which I frequently did when I went back home to see the parents.

    How on earth did a they get the Think Outside Stowaway keyboard to fit in a jacket pocket?

    This came down to a bit of product design genius by a Silicon Valley-based start-up called Think Outside Inc. who came up with a Jacob’s Ladder-type keyboard design which gave you 19mm keys and then folded into four sections – connected together with a flat ribbon cable. The pieces were locked together by sliding in two handles (the red bits in the picture above) to provide a stable flat keyboard. The design was so successful that Palm sold their own-branded version to be sold to people like me and Targus-branded versions did a similar thing for Handspring, Compaq and HP PDAs. But none of them had the elegant design solution collapsing the keyboard like the Think Outside Stowaway unit.

    A flip-up connector plugged into the serial port of the device and held the screen at an optimum position for viewing. Later versions of the keyboard used Bluetooth wireless connectivity, unfortunately the electronics were less tolerant of being folded up so the keyboards became less elegant and bulkier. Eventually Think Outside was acquired by cellphone charger company Mobility Electronics (iGo) and eventually touch devices pretty much killed the mainstream demand for a portable keyboard all together.

    You can still get keyboards that embody the ideas of the Think Outside Stowaway. Unfortunately, they aren’t any more compact or robust than their predecessor. Which is a shame given the prevalence of iPhone users is many businesses. More throwback gadget related content here.