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.

  • WSJ Online tenth anniversary

    10th anniversary of WSJ Online

    The Wall Street Journal Online or as it calls itself the WSJ Online has been celebrating its tenth birthday with some retrospectives and future gazing.

    WSJ Online dot com disasters

    A couple of the articles caught my eye.The Best of the Worst by Kathryn Meyer (May 3, 2006) celebrates the suckiest ideas of the first dot com boom.

    CyberRebate

    CyberRebate did what it said on the tin; they charged you an outrageous price for an item and then promised you a rebate, they hoped to make money on the redemption drop-out – they were overwhelmed and drowned in a sea of debt.

    Digital currency

    Digital currency ideas (Beenz and Flooz) withered on the vine as they weren’t as universal as Mastercard or cash. PayPal survived because it kicked Western Union’s ass and we could all be credit-card merchants.

    iSmell

    iSmell was a device designed to release smells appropriate to the pages you surf (don’t even think about it, get your mind out of the gutter this instant) like some kind of b-movie experience enhancement craze of the 1950s.

    CueCat

    CueCat plugged into your PC (Windows only if you please) and allowed you to scan bar codes of magazines into your computer to get further information or content. This idea seems to have caught on in Japan with mobile phones and specialised software, so maybe they were too visionary?

    3Com Audrey

    The 3Com Audrey internet appliance was a great well engineered device killed by the ever decreasing price of PCs. I still rate its QNX-based OS and I like the product design on it.

    PointCast

    PointCast the push technology service that was a richer more engaging experience than RSS is today, but then I was sat at the end of a fat pipe whereas most users were on dial-up. Also marketers knowing the price of everything and the value of nothing used the service to carpet-bomb users with unwanted ads.

    Tech trends

    Tim Hanrahan’s piece on Tech’s 10-year Creep (May 8, 2006) brings out some interesting trends that have occurred. I have paraphrased and commented on his trends below

    Anytime, Anywhere: Push email and wireless internet access mean that getting online whilst traveling or wire-free on your couch or at Starbucks — is possible for $60 a month or so. However it eats into the work life balance.

    Think Better! Google basically.

    Putting Yourself Out There: Originally people liked their privacy, caller ID on phones was pushing the envelope in terms of social disclosure. Over the past five years people have gotten used to sharing personal information online. Chat rooms, forums, online dating followed by social-networking sites; to blogs and MySpace came to dominate. Easy-to-use tools, cheap to free storage and online social interaction brought out the pioneer spirit ‘Go web young man‘.

    The Post-Stuff World: Music downloads, ebooks, ripped movies. (But if its that post-stuff why is Amazon so successful selling books, everyone’s iPod is full of music ripped from CDs and people love their laptops, mobile phones, PDAs, crackberries, Nintendo and Sony handhelds). This techno-minimalism bollox didn’t wash with me.

    Free Information, Free People: People are exercising their free speech and there is a maelstrom of content out there that Technorati struggles to handle. The social web has replaced the techno web – (though when Soledad O’Brien hosted a show on MSNBC that featured a young Max Headroom-type avatar sidekick named Dev ten years ago (good gosh, was it that long ago?) was it precient of Second Life?) CNN now covers blog content as if it was matter-of-fact, though blogs often don’t have the same rigorous process behind them as well-written journalism.

    Picture of Soledad O’Brien courtesy of CNN.com. More related posts here.

  • Video conferencing + more

    Video conferencing

    A couple of interesting artifacts that I found online and wanted to share with y’all.First up, video conferencing, why is it so crap and what are you going to do about it?

    Ok, we’ve had video online, we’re now living in an age of pretty much ubiquitous broadband, why do we stop with using our VoIP client of choice and use video instead.Well there is the network side of things: IP networks provide a ‘best effort’ service so the signal may be come degraded. All the pixels will get to the other end eventually but they won’t get there in the right order and the latency of the signal will depend on the slowest part of network travel that they have to make through the internet ‘cloud’ no matter what kind of pipe you have between you and your local telephone exchange, wireless hub or cable television outfit. Look at video streaming, it has errors and flaws in its signal even on my 2MB pipe AND the signal is buffered to smooth out these glitches like a CD player. With real-time interactive video conversations that is not a technical option.

    Also you may not want to have the person see you as well as speak to you, imagine if you have a bad hair day or want to lie?

    The third factor is a much more basic human system and the best way of illustrating it is by looking at the picture above. Notice how you don’t have eye contact with the people that you have a conference with because the camera’s perspective is slightly different to the view you would have if it were a real-world conversation. Notice how the men on the left and right are looking above their screens and the ladies are looking below, this is just enough for you to notice and process at a low level. It doesn’t feel natural, the conversation won’t flow as well as a real-world sit down would because the eye contact feels wrong.

    This is why video conferencing can feel so wrong, even Apple’s attempt at correcting it with a small mirror picture (the one at the bottom) to see how you look to the callers feels wrong.

    Historically the way to do that is to have the difference between camera angle and the viewing angle of the screen as small as possible. This was achieved by using big TV screens with a camera on top and the participant perched at the end of a big conference table at the other end of the room. That’s why big oil companies and George Bush love video conferencing but you’re not likely to see it adopted en masse in UK homes soon.

    Its also not exactly the most elegant solution, which the reason why I was really intrigued by this Apple patent which I saw courtesy of those nice people at AppleInsider.

    Imagine where the screen viewing area was the camera with camera elements squeezed in between the pixels on your LCD. The back-light would provide the ambient light required for the picture, you an have eye contact with whoever you are speaking with without living in a mansion and having a conference table the size of a small yacht.

    In theory this principle would also work with on mobile screens (at a lower quality-level), televisions etc. On the scary side it would also allow the omni-present two-way tele screens for surveillance like Orwell’s Nineteen Eighty-Four. More content here.

    Web 2.0 and the Enterprise

    News.com have an interesting article Web 2.0 meets the enterprise how companies like IBM and Visible Path are using technologies like social networking, RSS feeds and wikis to help large companies build IT systems. News.com make a big show of how these ‘consumer’ (their word, not mine) technologies are changing the enterprise software landscape.In addition, Forrester sent out an email newletter talking about how service-orientated architecture (SOA) (simply put: enterprise-grade web 2.0-type technologies) are having an accelerated take-up with happy IT directors to be found everywhere.

    The truth is more complex than the News.com story about how the kids are showing big business the way, the process is much more complex.

    AJAX is generally a hard thing to do well so it is interesting that Michael Robertson is selling AJAX-based web services through ajaxLaunch and looking to use AJAX as a way of providing applications and widgets on top of an OS. Its an interesting take from a business head on all the utopian dreams such as the network computing meme or Netscape’s ‘the browser is the OS’-hype back in the day and an ideal way for novices to get web 2.0 see his ‘everything is moving to the cloud’ keynote here which also has a good product demo (RealPlaya required).

    Nice definition of what AJAX means to marketing people – ‘rich web applications right to your computer’.

  • 3iYing & teen marketing

    3iYing

    A design and marketing company called 3iYing has enlisted the help of 15 – 25 year old girls to help develop more effective marketing strategies.Earlier this year a group of 8 young women enlisted by 3iYing walked into the Virgin Mobile office and told them their teen marketing strategy was all wrong. The girls pointed out that pay-as-you-go tariffs cost too much for teen girls who usually resort to using ‘guilt-tactics’ on their parents to get them to pay.

    3iYing spurs guilt marketing

    Virgin listened and subsequently ran a campaign in CosmoGIRL that included tear out phones that allowed teens to make fake calls in front of their parents, thereby pushing their ‘guilt button’. 3iYing’s Chief Executive Heidi Dangelmaier came up with this approach having been a leading voice in girl market trends. The teen demographic has increased by 17 per cent over the last 10 years, Moreover the financial muscle of these teens in terms of home spending is growing even faster.

    Companies like Virgin, realising they cannot properly relate to this market are turning to alternative approaches like that offered by 3iYing. User-centred design and marketing has always proved a successful approach, by designing relevant services and consumer experiences. By listening to what teens really want will make for more compelling, teen-centric brands and products.

    Teens also provide insights into their parents, who were the best people to advise on how to manipulate the parents. Parents still hold the purse strings, but teens are the key to accessing their spend. Kudos to Steve. More related content here.

    Update: USA Today has an article about Gen Y in the workplace, basically they want a dot.com style work environment with a decent pension plan. Sounds similar to Gen X really, apart from the fact they are more mouthy and high maintenance. Kudos to Blake Barbera.

  • IT First Look + more things

    IT First Look by Forrester Research

    Forrester Research has some interesting video and audio sessions attached to its IT First Look (November 9, 2005) – subscription required. Forrester’s work on IT First Look is interesting because it touches on how technology and web companies are failing in their marketing communications with consumers.

    IT First Look touches on how these companies understand how build the stuff, but do not understand how the consumers really use and adopt it.

    AT Kearney on mobile media

    Thanks to Ian Wood who pointed out an interesting thought piece and associated research by management consultants AT Kearney. Some interesting data in there which I haven’t had a full chance to check out but two points immediately leapt out:

    • Western European survey respondents were less interested in downloading music on to their mobile phones than their counterparts in Asia, The US and Russia. This and a flatlining of online music sales in the US since May this year indicates that the post-iPod age may be upon us
    • Interactive entertainment like games was less popular and did not have as much repeat demand as other mobile services. Interactivity is something that tech advocates bleat on about since before the arrival of the CD-ROM, but it fails to take account of the different types of people and the various ways that they like get and work with information.

    Mobile society

    The FT devoted much of its magazine over the weekend to mobility and its impact on society. The main article by Richard Waters, their US technology correspondent can be read here. What is really interesting is the way people have absorbed mobility into their cultures, rather a brave new world occurring like all the tech-mavens like to crow about.

    37 Signals

    Salon.com has an interesting article about 37 Signals a Chicago based software company that is making waves. The company has developed lean, responsive web-service based software applications for project management and personal productivity.

    Odeo

    Odeo is a way of making podcast publication and consumption much easier, it has the ease-of-use that one would expect from one of the founders of Blogger.

    Firedrop and Basecamp

    When I worked during the dot.com boom I briefly used a great free document management service called FireDrop to manage approvals from press releases to appraisal forms for my team. There has seldom been a web service that has impressed me since, however BaseCamp looks like it might do that.

    Unlike many web services offerings it is truly platform-agnostic.

  • Inflection Point

    Over at his weekly column for PBS, Bob Cringely has written about four developments that he feels will have a major impact on the way that technology will develop over time, creating an inflection point in their respective spaces.

    The inflection point

    Yahoo!’s new music service is seen by Cringely as a statement of intent to push forward music by subscription and defeat all current players. Indeed, its 6.99 USD subcription rate hand an immediate effect on Wall Street, adversely affecting the share prices of Apple, Napster and Real Networks.

    Microsoft’s forthcoming XBox 360 was seen as a statement of intent against some of its closest PC partners (Dell, HP etc) by providing a home computing device that can surf the web, pick up mail, do VoIP, potentially provide a platform for video on demand and play games. Given that the margins are so tight in the PC industry anyway and Dell is the only one that consistently makes money selling Windows PCs this could proved to be very interesting.

    Cringely, returned to an area of previous speculation on Apple providing a film by download model similar to the iTMS model.

    Finally he speculated that Google’s Web Accelerator was an audious land grab that would shake the industry to its foundations creating an inflection point. Speeding up web pages would mean that every ISP and web page creator would be a content provider or customer for Google. That the service would turn PCs into thin-clients lengthening the useful life of the home PC and reducing sales. Further that it would be a staggering tour-de-force of technology. What surprised me about the Google part of his article is that Cringely thought an improvement of only double what consumers have now would be enough to shift the balance of power. In his book Accidential Empires and similar works by other authors, a 10x factor is usually required to differentate the killer products from the ‘better mouse traps’. I guess time will tell.