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.

  • ICE-ing

    ICE-ing – a method of protest using vehicles with internal combustible engines

    Sometimes writing posts are a matter of serendipity. I was out walking in Stepney Green and came across a series of electric vehicle charging points. I hadn’t paid any attention to them before.

    Right about the time that I noticed them; I saw that the parking bays in front of the charging points were all taken up by petrol or diesel engined vehicles. This being London were parking spaces tend to be a premium, I took a picture of the dissonant scene and quickly moved on.

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    I came in and then read a piece of how truck owners in the US were trolling Tesla supercharging points. Car culture is still huge and overwhelmingly celebrating petrol engined vehicles. But in the US there is a definite sub-text to the protests; one of class war. Metropolitan elite Democrats versus middle America truck-owning Republicans hence ice-ing.

    I revisited the photo that I took earlier in Stepney Green. All the vehicles in the photo were mid-range Mercedes cars with the exception of the Nissan pick-up truck. What would the odds have been of a super-mini in the row of parked vehicles if this was just about parking spaces? Was it British ice-ing

    It didn’t seem organised; but more of an organic system. Some first ‘person like me’ committed the transgressive act of parking in a charging bay. This then gave ‘permission’ for others to do it as well and the spaces filled up.

    There are a number of reasons for a consumer to not want to purchase an electric car when looking for a vehicle:

    • Cost
    • Energy density / range
    • Speed of recharging
    • Charging point network
    • Vehicle choice

    A bigger and harder to crack issue for vehicle manufacturers is one of values. Electric cars don’t have a culture behind them. They may have good road performance but they are the wholemeal bread of the automotive world. Something you should so, rather than something you are passionate about driving. Internal combustion engines won’t go quietly into the night.

    BMW going into formula E and launching the i8 using the design language from the M1 was a nod towards making electric sexy. But on its own its like spitting in a hurricane. One Japanese vehicle manufacturer knew how to make electric (and petrol) vehicles exciting through

    • Customisation
    • Tinkering
    • Community
    • Noise
    • Spectacle

    Unfortunately for the automotive industry that vehicle manufacturer is Tamiya. Tamiya is a Shizuoka based manufacturer of remote control cars for hobbyists.

    Maybe the answer isn’t about marketing but about engineering?

    You can change the fuel without changing the excitement, noise or spectacle.

    Hydrogen powered combustion engines offer similar energy density and performance to petrol cars, but with water as the waste product rather than carbon monoxide. Battery technology currently relies on a lithium and most of the world’s supply comes out of a high desert in Chile – we’ve replaced one finite resource (oil) with another (lithium and rare earth metals).

    Toyota is already experimenting with hydrogen in Japan. BMW have done pilot programmes in the past and hydrogen as been trialled in heavy goods vehicles.

    More consumer behaviour related posts here.

  • Tencent annual staff meeting + more

    Notes From Tencent Annual Staff Meeting – China Channel – some interesting insights on how they are looking at the online world

    Key takeouts from the Tencent Annual Staff Meeting:

    • They made a big issue of treating customers honestly, which made me think that might not be in the culture up to now. There was also a call to focus on users rather than competitors
    • More on user focus – WeChat is a tool, not a platform. Only tools are the most friendly and meaningful to users. WeChat has been trying to do one thing, to treat every user as a friend
    • They wanted mini games become a platform for ordinary people to show their creativity. If this goal is not achieved, then they were happy if the mini games on the platform died
    • A recognition of the cognitive dissonance on social platforms where people show their best lives on Douyin and the unhealthy nature of it
    • Tencent launched the most stringent youth anti-addiction system in history. This is a long-term initiative that is very beneficial to the entire industry and a responsibility we must assume as an industry leader

    2018 Year in Review – Pornhub Insights – I wish that I’d this quality of data when I was cranking out press releases for Yahoo! Search. The review is as much about cultural change as it is about trends in smut. More on adult entertainment industry related content here.

    The Last Independent Mobile OS – Motherboard – interesting write-up on Sailfish and yet more reasons why you shouldn’t trust Google at all

    Pioneer’s woes echo those of earlier Japanese audio legends – Nikkei Asian Review – for someone like myself this is heartbreaking

    1967 Mustang meets Tesla: Aviar Motors all-electric muscle car – Electrek – this fits in with Aston Martin’s announcement last week about retro fitting vintage cars with electric automation

    Interesting video that’s as much an illustration of collective delusion that drives VC thinking in a very wasteful manner and where they are likely to be putting their focus moving forwards

    Nobel economist Paul Romer

  • New Yorks information for Amazon + more

    New Yorks information for Amazon – crazy number of data points and a must see for any planner looking at campaigns targeting New Yorkers (PDF). From a more sinister point of view about New Yorks information for Amazon – it shows a corporate culture that’s out of control.

    Marriott Data Breach Is Traced to Chinese Hackers as U.S. Readies Crackdown on Beijing – The New York TimesThe Trump administration also plans to declassify intelligence reports to reveal Chinese efforts dating to at least 2014 to build a database containing names of executives and American government officials with security clearances – (paywall)

    ‘Agencies are shitting themselves’: SCA dean Marc Lewis on tutoring for today’s ad world | The Drum One of the biggest pitfalls in the industry is “worshipping at the altar of wanky new tech”

    Just who is Huawei listening to? | Business | The Sunday Times – “In the event of an international crisis — say, if the Chinese were to invade Taiwan — if you own a fleet of thousands and thousands of routers, you can launch service-denial attacks on a massive scale,” said Ross Anderson, professor of security engineering at Cambridge University. “You can potentially make the internet unavailable for days or weeks.”

    A bunch of millennials explained in a survey why they despise phone calls – BGR – basically poor social skills

    Researchers Found a Way to Shrink a Supercomputer to the Size of a Laptop | Futurism – interesting, though parallelism presents problems for software

    Honda, CalTech and NASA’s JPL might have a real alternative to Li-ion batteries – Roadshow – great opportunity in terms of energy density but copper and more particularly lanthanum are a materials supply chain bottle neck. One can see how China disrupted Japan’s access to rare metals years ago which affected the use of magnets in high-technology products

    The Chinese Social Network – Hacker Noon – the story of Pony Ma

    Jack Poulson, ex Google, says management obsessed with stopping leaks – Business Insider – indicating a crisis in culture and leadership. The way Google is dealing with it is by stopping people knowing about the issues

    More technology related content here.

  • Most popular blog posts of 2018

    It’s that time of year again when I reflect on the things that I’ve done and what I can learn from the year. I wanted to get this out there whilst I still have a bit of respite from the holiday cheer. 

    In reverse order

    Reuse, re-edit and remix – the quality and impact of creative is a key question that is being asked at the moment. Marketers have finally woken up to the power of brand building as well as performance media. Which then begs the question what’s the minimum viable creative tweaks to effective creative that can be used?

    Apple – special event (September 2018) – trying to cut through the formulaic delivery of the company’s new products to understand what where the key salient points. I was surprised that this generated far more interest than a similar keynote at Apple WWDC which was much more interesting. 

    Enron and the net in 2000 – pre-Facebook the net was a much more decentralised place. Enron failed in their vision of a real time market for broadband, so I decided to work out what happened to some of their ‘partners’ at the time.

    Ramblings on consumption – this started off as a collection of disjointed notes I made whilst travelling to see the family in Ireland 

    Recommendations for a marketers bookshelf – you can’t dismiss the power of a good listicle. 

    This wasn’t the internet we envisaged – looking at the media of the 1990s we were promised an immersive visually stimulating interactive experience. Unfortunately we ended up with Instagramers and Facebook

    Throwback gadget: Bose Wave system – I still use a Bose Wave stereo due to the big sound that you get from a compact size. Its modular nature meant that it has weathered the iPod, DAB broadcast radio and internet streaming extremely well

    Jargon watch: zhuang bi (装b) – an exploration into Chinese l33tspeak. 

    Oprah time: Operation Elop – Nokia accounted for 25% of the Finnish economy at one stage and then spectacularly fell from grace, with the iconic phone business being sold to Microsoft. Yet the definitive history of what happened has never been licensed and translated by business publishers. I got to read a crowdsourced translation instead. 

    Things I’d like to see in 2018 – included in this list was innovation in smartphone experience (which we don’t have at the moment), a leaner web and critical thinking around the hype of crypto currencies. 

    My web toolbox – some of the tools that I was using in early July this year. 

    How to use RSS – with so many people now getting algorithmically selected, part of the solution is by going back to RSS and Atom feeds from trusted sites. So I threw together a guide to getting started with Newsblur

    The advertising industry post prompted by WPP’s 2017 financial results – how much of WPP’s difficulties are due to changes in the client and media environment versus WPP’s business?

    Social networks 10 years ago – 2018 will be looked back on in internet history as when the elites finally woke up to the dominance (ex-China) of Facebook, Google, Amazon and Apple. Looking back at 2008, it is hard to believe how much the social network eco-system changed

    Mercedes Benz China Syndrome – Chinese netizens are still jumping the Great Firewall to vilify western brands who reflect views that ‘offend the Chinese people’ – even when this content is aimed at non-Chinese audiences. Mercedes’ offence was an Instagram image with one of their cars and a quote from the exiled Dalai Lama. Dolce & Gabbana didn’t learn from the Mercedes experience. Mercedes and other brands saw the Chinese government get involved in what would be considered to be extra-territorial exceptionism. This mirrors and contrasts with the Chinese reaction to the Canadian arrest of Meng Wanzhou. The Chinese foreign ministry accused the US and Canadian governments of overreach. 

    Oprah time: Directorate S by Steve Coll – book review of Directorate S which discusses the complex relationship between the US war on terror and Pakistan

    Personal online brand – the perennial debate of should you own your own site or build your reputation on someone else’s platform?

    Out and about: Sicario 2: Soldado – I was so looking to this film and felt so disappointed when I got to watch it and was presented with a grand vision at the start that quickly fizzles out to a mediocre homage of the original, with one eye on building a franchise. 

    Dawns Mine Crystal by Yunchul Kim at Korean Cultural Centre – amazing art installation that I was fortunate to see. It moulded art and science as part of the Art @CERN project. 

    The influencers post – a post on the irrational exuberance associated with influencer marketing. I suspect that we’re close to peak influence.

    Chinese smartphone eco-system for beginners – I presume that its very Googleable – this post was inspired and featured a video on smartphones in China by Winston Sterzel earlier in the year. I then put accompanying background information to give it more context for marketers. China is changing a lot, one consequence of this is that Winston is looking to move to the US and visit China occasionally rather than live there, like he has been for the past decade.

    The long and the BBH of it – Binet’s The Long and the Short of it has been a strategists go to reference for a while. BBH pointed out the benefits of expanding the data set. However its easier to snipe from the sidelines rather than doing something meaningful about it.

    App constellations 2018 research – this built on research that I had done in 2014 and 2016. It was the most trafficked post for the first half of the year. It was also the post that took me the longest to research and I managed to lose my archive data file soon afterwards. I will revisit it, but will have to try and pull the data from these images for the basic numbers!

    Innovation: a few thoughts – this post came from the coalescence of many things that were kicking around in August and early September. My friend Nigel Scott had come up with some interesting research on venture capitalists; disabusing any illusion of science in their investment selection. You had ‘struggle porn’ being championed on LinkedIn; which made the wrong correlation between effort and innovation. Finally you have big technology companies with an inflated sense of their manifest destiny a la ‘software is eating the world’ and the hubris of Google, Facebook, Amazon, Tesla and Apple. I pulled ideas from across the board, borrowing a lot from Kevin Kelly’s concept of The Technium

    What if stories are brain code – storytelling is treated as a science within the creative  sector. The reality is that its based a pretty shaky base. Whilst the formulation of storytelling is suspect; psychological research indicates that stories are even more powerful than we previously realised. 

    Some data points

    30 percent of the top posts from the first half of the year made the cut through the whole of the year, which surprised me as I thought that they would benefit from additional ‘evergreen’ search traffic.  

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    Lessons learned

    • There is still an interest in long form content and research
    • There was less of an interest this year in purely social platform based subject matter materials
    • Evergreen content doesn’t seem to work as well as previously

  • The Dark Net by Jamie Bartlett

    The Dark Net had been sitting on my shelf for a while. Jamie Bartlett works at Demos, has written for The Telegraph and writes books looking at the intersection between radical politics and technology.

    The Dark Net provides an overview of how politics and social forces have adapted to the internet. Bartlett is largely non-judgemental. In some respects it seemed to a series of essays that followed the Mondo ethos of documentary media. Something that’s factual, yet chosen for shock or entertainment. This was especially popular in the 1960s as these films competed for audiences against early television programmes across Europe and the US in the early 1960s. 

    It felt like some of the content was put in to spice book up, which is the reason why I thought it was similar to Cavara, Prosperi and Jacopetti’s film Mondo Cane 50 years earlier.

    Libertarianism was beneficial to the early web:

    • Privacy infrastructure including strong cryptography. This enabled everything from e-commerce and banking to secure communications. This has built new businesses, made banking and share dealing more convenient and helped protect people from authoritarian regimes. The downside is that it also makes criminal activity harder to detect than in the clear communications, but then so does a hand passed note with paper and a pencil
    • Fighting surveillance legislation – unfortunately authoritarian regimes caught on fast the potential of the web, so their efforts have been uneven

    The Dark Net shows how the libertarianism that spawned the early web has:

    • Weaponised social interactions as the network of people online grew massively
    • Driven extreme marketplaces, due to the lack of regulation and lack of similar values with early netizens
    • Drove the development and adoption of cryptocurrency. More accurately facilitated the adoption of cryptocurrency. A lack of trust in offline institutions like banks and governments accelerated the adoption of cryptocurrency as a store of wealth
    • Facilitated reinforcing communities to encourage suicide, racial hatred and eating disorders

    More security related content here.