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.
Synclavier Regen Synthesizer Introduction – Synthtopia – the old New England Digital Synclavier was a floor to ceiling rack full of equipment paired with a monitor mouse, computer keyboard and musical keyboard. Synclavier was an early digital synthesiser and then evolved to create the first digital audio workstation, featuring digital tapeless recording, digital effects, sequencing of instruments, sampling and synthesis. By 1980, the Synclavier 2 was launched. Then you started to increased adoption including Michael Jackson for this Thriller album and across the US film industry for sound effects work.
Producer Michael Hoenig circa 1987
The sampling and synthesis of Synclavier helped define the sound of 1980s record production for a wide range of groups from the era including
At the time there was concern that the digital synthesis and sampling of the Synclavier would put live music out of the business, so many concert halls in the US banned the use of the Synclavier.
Mirage FM: how patten created the first LP made entirely from AI sounds | Dazed – Pattern’s album brings synthesis forward to the present day. A mix of crude pads and textures hint at how machine learning can change synthesis over time. At the moment, record labels are looking to restrict the use of machine learning, which they view as a similar threat to the MP3 format of the early 2000s and digital sampling from the early 1990s. Like earlier technologies, they will eventually make their peace with machine learning based synthesis and use the opportunity to further gouge artists and creators
Three years of National Security Law in Hong Kong: Farewell “special status”? | Merics – the NSL has severely reduced the rule of law in Hong Kong by granting the government powers to circumvent the courts and thereby deny defendants a fair trial. The case of media entrepreneur Jimmy Lai illustrates how this presents a risk to businesses and their property rights. The Hong Kong government froze Lai’s majority of shares in his company Next Media, which led to its liquidation and the end of the pro-democracy newspaper Apple Daily. The case is highly political and does not reflect the situation of most businesses, but it does show the power the Hong Kong government can wield over business. – German think tank on the NSL
Edelman Cutting Roughly 240 Employees Amid Reorganization | Provoke Media – Edelman is just the canary in the coal mine. Beyond (part of Next Fifteen) is closing down its London office, smaller agencies have been going to the wall and another of my former agency alma mater WE are laying off just under 5 per cent of their headcount. I don’t remember this happening during the 2008 financial crisis. There are likely to be several factors blamed:
Rising interest rates combined with already lean cashflow has driven some agencies to the wall
Declining economic conditions has resulted in declining marketing budgets
Some agencies (Edelman being a case in point) bulked up on talent, expecting a fast exit from COVID driven decline
Brands are getting shaky on the commitment to brand purpose which will hit a lot of below the line agencies particularly hard
More marketing spend is being spent on innovation with an expectation of cost savings down the line (particularly in production and across B2B marketing)
MikroE welcomes back IrDA with Click board | EETimes – IrDA was first introduced in 1994 for consumer equipment but has since been used in areas such as power systems where a light-based system is safer or RF is problematic. It’s slow with data rates up to 115kbit/s at 1 metre. The reality is usually much slower. I used to use IrDA for transferring business cards of a few KB each which would take 30 seconds or more
The North America semiconductor corridor looks at Mexico, the US and Canada as a potential production capacity eco-system for the semiconductor industry. The North America semiconductor corridor is framed in terms of increasing resilience in security. At the moment the semiconductor industry for reasons of cost and supply chain ecosystem is focused on the US Pacific coast and Asian countries from Singapore to Korea that face on to the Pacific.
In the North America semiconductor corridor also has a political advantage bringing back more high value jobs across Canada, the US and Mexico. There are considerable challenges to the North American semiconductor corridor from talent to energy and water requirements. The US CHIPS and Science Act has looked to catalyse some of the change required.
Ancient monuments to the dead
The summer solstice on Wednesday reminded me of Ireland’s stone monuments. Some like Newgrange have a calendar type element, but most of them are solely monuments to the dead. The megaliths continue to guard their secrets well despite the educated deductive reasoning of archaeologists.
Wilkie Collins radio dramas
Wilkie Collins along with Arthur Conan Doyle invented what we now know as the detective genre. This stream of Wilkie Collins dramas is better than modern productions on BBC Radio 4.
Technics SL-DZ1200
Techmoan did a review of the Technics SL-DZ1200. I am a big fan of the DZ1200 over Pioneer’s CDJ devices and they did a good rundown of the device. Hopefully, the DZ1200 will come back in a new and improved form if Technics relaunch of the SL-1200 is sufficiently successful?
Microsoft Auto PC
Auto PC
Back when I worked agency side on Microsoft I never heard about the Microsoft Auto PC experiment which seems to be Microsoft’s abortive move into in-car entertainment and information systems. This seems to be alongside the more successful personal digital assistant and nascent smartphones. It’s fascinating to see technologies like voice recognition, iRDA, compact flash (but not as a music media) and USB being incorporated because these capabilities were being put into future PDA and smartphone products.
CES launch
It was launched at CES in 1998 according to the Microsoft corporate website. It’s interesting, I still have similar problems with voice recognition.
Directions
The rudimentary directions software was similar to the turn-by-turn direction print outs that I ordered from The AA Route Planner service. during the mid-to-late 1990s for long journeys – but on your stereo screen. A similar approach was also taken by Palm app Vindigo for pedestrians about the same time. Disclosure: I worked agency side on the launch of the Vindigo London guide alongside the work I was doing on Palm PDAs at the time.
(The AA Route Planner service still exists, but it is now online rather than something you ordered over the phone and received via the mail. However you can still print out turn-by-turn directions. It’s also likely to not send you on some of the interesting routes that modern navigation apps seem to manage.)
Clarion
I feel sorry for Clarion who were Microsoft’s only hardware partner. Clarion is now owned by Faurecia SE, a French headquartered auto parts manufacturer with Chinese car manufacturer DongFeng Motor Corporation who were the local partner to Peugeot, Nissan and Honda’s efforts in the Chinese market as a key minority shareholder.
I was sparked to lead this post based on footage that I watched about a priest in South India with regards a robotic elephant. Robots in religion have taken off in both Shinto and Hindu ceremonies.
Japan
Academics have widely talked about how the Shinto-based belief system have aided Japanese societal acceptance of robots, in comparison to western society. Secondly, Japanese authors have been exploring what it means to be human and what kind of dilemmas and opportunities do robots and AI bring in a future society. Robots in religion are a natural extension of robots in society.
Buddhism leads the way
What’s less commented on is that Japan’s buddhist temples have been leading robots in religion. The reality is that many Japanese see Shinto and Buddhism as complementary in nature and get involved in both beliefs.
Japan has some unique religious challenges that are interlinked. Temples are struggling as less people are active in their religious practice, the factors for this decline is multi-factorial in nature.
A second challenge that as the population shrinks roles need to be automated. What started in factories is now impacting the food and beverage sector (vending machines and restaurant robo-serving staff), so it was only a matter of time that robots in religion would supplement the clergy.
India
In India robots in religion is about kindness and de-risking religious ceremonies. In South India elephants take part in religious ceremonies. However the conditions that elephants are kept in can be cruel in nature and even result in death. Secondly, elephants can unintentionally kill or injure people involved in a religious celebration. This report on NHK World shows how robots in religion have been adapted to Hindu needs.
Finally, the elephant robot is used in celebrations over a large geographic area and is easily transported around. Robots in religion are likely to make even more sense as India urbanises even further, as the benefits are amplified in the denser environment.
How confucianism, communism (in particular Stalin’s take on Leninism) and an accident of history has led to the nationalistic, fragile, insecure Chinese state with imperial ambitions we know today.
China’s ‘trinket town’ at heart of push for renminbi trade | Financial Times – Yiwu was one of the first cities in China to allow individual merchants to settle larger cross-border deals in renminbi. Most cities have an annual cap of $50,000. Given Yiwu’s reputation for cheap goods and flexible terms, helped by the fact that wholesalers do not pay either corporate tax or market rent, exporters have sufficient bargaining power to request settlement in renminbi. “When you have only one place to go to purchase something, the seller sets the terms on how transactions are settled,” said James Wu, a Yiwu-based furniture exporter who began demanding renminbi payments from Middle Eastern clients last year – the last quote is a great example of
Interesting video from NHK World on how temples are adapting to a lack of new attendees and priests. I am not sure whether this is down to demographic change or the secularisation of society
A Pokémon-Card Crime Spree Jolts Japan – WSJ – Japan has been staggered by a Pokémon crime spree. Stores are now paying for banklike security to ward off villains who go to extraordinary lengths, even rappelling down the side of buildings, to plunder Pokémon. Hosaka was working in senior care when he had the idea of opening a cozy card shop in the suburb of Machida where customers could mingle at tables. Instead, he says, the little cards, “have become like Rolex watches, gold, silver, platinum or used cars.” – It makes sense when you think of the cards being ‘real life NFTs’
Criminal Rolex Gangs and Traveling with Watches, Part I – WOE – crime affecting luxury consumption. Interesting that London is a crime centre is prominently name checked alongside Johannesburg, South Africa. This will impact luxury retailers, luxury travel and hospitality and auction houses
Luxury
Bay Area Lawsuit Alleges Man Spent $220,000 To Get A Watch He Never Got – there’s also the added complexity of Shreve recently losing its status as a Patek AD. The lawsuit brings some ten causes of action against Shreve, including breach of contract, intentional and negligent misrepresentation, fraudulent concealment, false promise, and unfair business practices, pursuant to California’s Unfair Competition Law – this was only a matter of time. Its the same in the UK
Ad agencies and clients clash: tension over transparency in fees, services | Ad Age – a talent shortage has left agencies without enough senior executives to service accounts. Combined, such factors contribute to what marketers see as an increasing lack of transparency. One executive who leads procurement across marketing and content for a major consumer goods company said the discounts and rebates that media agencies, in particular, get from a media buy have always been “murky,” but one area agencies have always been transparent in is breaking down their fees. The brand executive said auditors, working on behalf of the marketers, have previously been able to get agencies to disclose their margins, overheads and salaries without protest—it’s standard practice and allows clients to know they are being charged a fair price. But that’s starting to change, they said, having run into issues with getting shops to break down their fees in the recent agency review their company underwent
Media
This Year Next Year: 2023 Global Mid-Year Forecast – GroupM – calls the end of radio’s global growth story. Even taking into account streaming, WPP says that, globally, ad-supported audio has peaked. It will grow just 0.3% this year, says GroupM then “remain roughly flat over the next five years”. It’s about to join newspapers, magazines and broadcast television in a downward trajectory. GroupM also tackles the impact of AI on the industry. It reckons that within five years, the portion of “AI-enabled” advertising revenue globally will be worth $800bn. What is impossible to quantify is whether any of that is new money. Most likely, none of it. What is also impossible to quantify is just how dramatic the AI-driven reductions in cost of production will be. That sounds a relatively benign question until one realises that all those reduced costs are human jobs. GroupM identifies five key themes: Regulation (particularly around data privacy); connected TV (and an annualised 10%+ growth in the segment)’; AI “is likely to inform, or touch in some way, at least half of all advertising revenue by the end of 2023”; retail media to overtake TV by 2028; and “new business growth” (which sounds like the sort of thing an agency person would put in their predictions). Most importantly though, the GroupM outlook points to a more more significant factor. We’re at the end of a cycle that was defined by shifts between advertising channels, and then the disruption of Covid. “We are at an inflection point where the secular drivers of advertising growth above and beyond GDP growth are maturing, the pandemic upheaval is receding and the dynamic rise of digital advertising has slowed. This is the basis of our underlying forecast of mid-single-digit advertising growth over the next five years. However, the pervasive impact of AI on the world of advertising could change that.”
AI at Work: What People Are Saying | BCG – leaders love it, workers don’t. Businesses have only addressed the needs of leaders, which probably dialled up the anxiety with a sense that AI is something that happens to you and your career rather like a bad car accident
Beeper — All your chats in one app. Yes, really. – clients like Adium became less useful as Google and other services went away from common protocols and the IM giants AOL, MSN and Yahoo! disappeared. Beeper are trying to address this
The Threat of Decivilisation | Quillette – President Macron when having a Chatham House type discussion with sociology experts used the phrase processus de décivilisation – as a descriptor for the widespread civil and political unrest that has rocked France.
Rishi Sunak and Emmanuel Macron
On the face of it, decivilisation is an appropriate term if Macron believed that there was something rotten at the centre of French society. But the phrase decivilisation is problematic and Macron has been capitalised by French on the political left.
Renaud Camus
The crux of the left’s criticism is a work by the author Renaud Camus. Camus became famous writing a book called Tricks about a series of up to 45 stories (depending which edition you read) about one-night stands he had travelling around the world as a gay man in the late 1970s. Decades later Camus became more famous for his contributions to ideas of the far right, notably the great replacement concept in reaction to increased immigration in France from former French colonies. While these works were published in French they were summarised for English readers in his book You Will Not Replace Us!
In his works he describes the gradual takeover of France as decivilisation.
The left
The left drew a line between Camus work and Macron’s phrase and assumed that it was a way to build a bridge to the resurgent far right in France.
The reality is more complex. The degree of change in French society has driven backlashes in French society, in a similar way that Brexit and small boat immigration did in the UK. The problem for the left is that these reactionaries would have been natural constituents of the left. The left, like in many countries, instead has pivoted to degree educated urban dwellers, abandoning the workers to the far right.
Is French society really breaking down?
It’s hard to tell whether ‘decivilisation’ is really happening. Civil disturbances tend to happen during times of economic unrest and in the past has been a reset. There is a body of opinion who believe that social media has its thumb on the scales, driving things harder and faster without a countervailing force to help balance things out over time, like happened in previous decades.
Japan Rail Companies Limit Train Passes Due to Chip Shortage – these stored value cards also allow consumers to buy things in combinis as well as travel. They are similar to Hong Kong’s Octopus cards. What’s happening to the chips through? Japanese YouTubers have published advisory videos around the debacle for tourists to Japan. It seems to be a drive towards registration as much as anything else
Cigars are still a thing. This looks like a feature length video produced in conjunction between the YouTuber and a cigar manufacturer.
Marketing
Multi-factored reasons in nature why campaigns seem to be working less well. We know that as campaigns have become more digital, campaigns have been less effective and marketers being less confident in their campaigns. Interesting the way brand building on digital is danced around. The channels often dont work and measures are BS only a technologist would love.
I spent part of the bank holiday weekend reading and finally managed to tuck into designer Bruce Mau’s signature book MC24. For those that haven’t heard of him Bruce Mau is a Canadian designer and academic. He founded a brand design agency: Bruce Mau Design which is now part of marketing combine Stagwell. His Massive Change Network (MCN) is in the transformation business similar to Stewart Brand’s Global Business Network (acquired by the Monitor Group now called Monitor Deloitte) and The Long Now Foundation. The philosophy of Bruce Mau and feels like it had been lifted from an amalgam of TED Talks. Bruce Mau believes in a sustainable future with techno-optimist bent to his views.
Bruce Mau, like Robert Greene has principles that seem to contradict each other. Publisher Phaidon have wrapped the hard back cover of the book in an iridescent satin fabric that a photograph doesn’t do justice to. Regardless of whether you think the book is a self-help bible, your creative muse, an objet d’art or something nice to thumb through on a Sunday afternoon Bruce Mau and his book MC24 are ideal.
China
Where China is beating the world – by Noah Smith – interesting article, although it lacks some nuance about Chinese development, consider it a starting point that you can explore in more depth from, rather than the full story
I have alluded to the impact of China’s new espionage law. VisualPolitik has pulled together a good video on how it’s being interpreted by multinationals, policy wonks and politicians. It will have precisely the opposite impact that China would like it to have on its economy.
Consumer behaviour
How many Britons agree with Andrew Tate’s views on women? | YouGov – so much in this. You also need to think about bias in questions, that its done online and the ‘you can think it, but you shouldn’t say it’ aspect of how Tate supporters might think about the questions
Interesting debate on how the ‘evangelical bloc’ has evolved over time from being primarily theological to being primarily political in nature.
How doctors buy their way out of trouble | Reuters – When federal enforcers alleged in 2015 that New York surgeon Feng Qin had performed scores of medically unnecessary cardiac procedures on elderly patients, they decided not to pursue a time-consuming criminal case. Instead, prosecutors chose an easier, swifter legal strategy: a civil suit. Qin agreed to pay $150,000 in a negotiated settlement and walked free to perform more cardiac surgeries at his new solo practice in lower Manhattan. Qin faced no judge or jury. He did not admit to wrongdoing. He maintained his license to practice. What’s more, neither Qin nor government officials were required to notify patients who purportedly were subjected to vascular surgical procedures they didn’t need. Those included fistulagrams to spot issues like narrowed blood vessels or clots, and angioplasties to open clogged coronary arteries. Within months of the settlement, a registered nurse working for Qin at his Manhattan practice alerted authorities that something seemed amiss. The nurse, who ultimately turned whistleblower, alleged to federal prosecutors that the surgeon was performing unnecessary procedures on patients, mostly elderly Asian and Black immigrants whose care was covered by the public programs Medicare or Medicaid. Prosecutors indicted Qin in 2018 on a felony count of fraud, which carried a maximum sentence of 10 years in prison. But in 2021, in a deal brokered behind closed doors, prosecutors dropped that charge in favor of yet another civil settlement, court records detailing that agreement show. Once again, Qin kept his New York license to practice with no restrictions; a restricted license is one of the few ways the public can learn that a doctor has been disciplined for bad behavior. Qin agreed to pay a total of $800,000 in annual installments ending in December 2025, deposited with the U.S. Department of the Treasury. As an added penalty, he was banned from billing public health programs until February 2025
Their inability to live up to the past German reputation for quality
Chinese manufacturers at the low-end
German automobile makers struggles with software
Japanese and Korean car manufacturers challenging the luxury end of the market. I would rather have a Lexus LX than a G-Wagen. At the moment Lexus have had to shut down the list on the LX they are that oversold
Hong Kong
chanhiu design – really nice graphic design. I love their project reflecting on Hong Kong-made knock-off toys familiar to Hong Kong children as well as European children – where these toys turned up in markets during the 1960s through to the early 1980s. More here: Chan Hiu explores Hong Kong’s playful past – The China Project
Cayman Islands fights attempts by Singapore and Hong Kong to lure Asia’s wealthy | Financial Times – the sharp uptake of Singapore vehicles versus Hong Kong vehicles is very interesting – an order of 10x magnitude greater. Interesting implications for Hong Kong’s wealth management business and China’s efforts to prevent capital flight from Greater China. It also implies that Hong Kong hasn’t been as successful at attracting foreign funds for investment in China. So the Hong Kong pivot towards the Middle East investor makes sense.
Apple expanding supplier base in China, Southeast Asia, and India – the number of manufacturing facilities/locations of Apple’s top 200 suppliers grew in 2022 in China, Japan, Thailand, Malaysia, the Philippines, and India. However, manufacturing facilities/locations in the US and South Korea have dropped from 72 to 62 and 42 to 36, respectively. The latest list shows that Apple’s supplier base in South and Southeast Asia is growing amid Apple’s diversification move. Meanwhile, Apple keeps expanding its reliance on China, a sign that Apple is likely to prepare for a decoupled global manufacturing ecosystem. Due to Apple’s change of methodology, disclosing only “locations” instead of “facilities,” the numbers of certain geographies, including Taiwan, cannot be compared historically. For example, Apple said that TSMC had five “facilities” globally in 2021 but had three manufacturing “locations” globally in 2022. The methodology change led to fewer listed manufacturing locations of Apple suppliers in Taiwan, from 72 to 41
