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.

  • Citizen M Hotel & other things this week

    Citizen M Hotel

    I had some meetings and discovered what a good meeting space the lobby of the Citizen M Hotel in Bankside is. The downside I managed to lose my favourite pen, that was my fault; not the hotel. Of course, that didn’t take the sting out of it.

    The Citizen M Hotel lobby area is part lobby, part co-working space that feels airy, but with some privacy, which makes it ideal for the kind of discussions that I was having at the time. It’s comfortable, but not opulent or luxurious by any stretch of the imagination.

    Eames lounger

    My dream chair is an Eames lounger and I am fascinated by production processes. This video from fulfils both admirably; showing how the Eames chair is made. A few things struck me abut the manufacturing process:

    • The dynamic nature of curved plywood, that is used in ways that plastics might be used now for structural strength, for instance in the Aeron chair that I am currently sat in.
    • The user serviceability of the product item, making it relatively easy to repair for a user or a professional with the right tools and parts.
    • In the same way that we’ve been divorced from how our food is grown, globalisation has divorced us from how things are made. This is particularly true in a de-industrialised country like the UK

    Jeremy Healy

    This week, I went back, way back, back into time and ended up listening to this mix of Jeremy Healy at Hot To Trot. What gets me about this is diversity of the set. The slight crunchiness in the beat mixing early on adds to its charm. Now of course, these sets would be laid out in Digidesign allowing for a seamless flow. More culture related content here.

    Chinese privacy

    This Chinese made video on privacy has more than an element of truth beneath the humour. It would give Black Mirror a good run for its money.

    Global digital snapshot

    Last thought… 2018 Q2 Global Digital Statshot by wearesocial

  • RSS renaissance + more news

    Now Is The Perfect Time For An RSS Renaissance | Neflabs – great read and a much needed request for a lean web. There has been a post-Google Reader RSS renaissance in terms of readers out there. My favourite reader of the RSS renaissance is Newsblur

    Here’s What Facebook Won’t Let You Post | WIRED – pretty grim read

    CIA agents in ‘about 30 countries’ tracked by technology, top official says – CNNPolitics – “Singapore’s been doing it for years,” she told CNN following her keynote speech on Sunday morning at the 2018 GEOINT Symposium, hosted by the United States Geospatial Intelligence Foundation. Meyerriecks did not elaborate with further examples. – It makes total sense that the CIA is building a ‘Google Maps’-style dead ground map of areas that they operate in using machine learning. More related content here.

    Chinese cult writer Chen Qiufan on pushing the boundaries of sci-fi | FT – good read with the obligatory name check of Liu Cixin (paywall)

    g2g, brb, and what the loss of early MSN language means | Dazed – interesting change in consumer behaviour as time spent online creeps upwards with the move towards ubiquitous connectivity

    P&G returns to YouTube but with a more selective mindset | Marketing Interactive – ultimately brands are powerless in the face of Google, Facebook and Amazon advertising if they insist on not running with a media neutral approach

    China opposes all forms of protectionism, commerce minister says – says market with high levels of implicit and explicit protection

    No, a keyboard app can’t ‘prevent tragedy from depression’ | Advertising | Campaign Asia – quite shocking claims

    Google’s new video ad format doesn’t need YouTube | Digital | Campaign Asia – interesting move

    AI in the UK white paper | House of Lords – (PDF)

    Microsoft gives up artificial intelligence sales over ethical concerns – interesting positioning, it would be good to get an understanding on on what the board would define as a bad actor

    After Sir Martin Sorrell: The Reckoning | LinkedIn – interesting analysis of the marketing sector, I disagree with the way that some of it hangs together

    Gchat could have saved Google the trouble of launching yet another messaging service. | Slate – what this forgets is that GChat ended up having a lot of bots and spam accounts. For me it was worse than Skype or Yahoo! Messenger at the time. I could see business historians highlighting this as a lost opportunity in the story of Alphabet

  • Erooms Law – jargon watch

    Erooms Law is a metaphor that compares other business processes to the virtuous circle of Moore’s Law. It is literally Moore’s Law in reverse. Industries have developed processes that are getting ever more expensive.  Once could consider that is inversely proportional to the way semiconductor manufacture  reduced the relative cost of computing power over time.

    Some see this as a potential opportunity for the use of computing in a sector to reduce costs. As with most circumstances, what seems like a great idea inside an Excel spreadsheet doesn’t work out in the real world. But that doesn’t stop the management consultants, investment bankers or venture capitalists from trying.

    Eroom’s Law and the pharmaceutical industry

    The poster child for Erooms Law cited would be the biotechnology and pharmaceutical industry developing new drugs.

    Here’s how Nature Reviews Drug Discovery put it:

    Eroom’s Law indicates that powerful forces have outweighed scientific, technical and managerial improvements over the past 60 years, and/or that some of the improvements have been less ‘improving’ than commonly thought. The more positive anyone is about the past several decades of progress, the more negative they should be about the strength of countervailing forces. If someone is optimistic about the prospects for R&D today, they presumably believe the countervailing forces — whatever they are — are starting to abate, or that there has been a sudden and unprecedented acceleration in scientific, technological or managerial progress that will soon become visible in new drug approvals.

    You could argue that the defence industry would also fall into this, despite the benefits of technology. (The origins of the semiconductor industry lie in the development of missiles during the cold war. Integrated circuit technology is more robust and lighter than discrete transistors or vacuum tube based systems).

    Other areas were Erooms Law is prevalent include fintech or financial technology and the automotive sector, where massive assumptions are made about the rate of innovation in battery technology based on Moore’s Law rather than the rather prosaic improvements in materials science that underpin existing battery chemistry.

    More information

    Diagnosing the decline in pharmaceutical R&D efficiency | Nature Reviews Drug Discovery (paywall)
    Eroom’s Law | In the Pipeline | Science magazine
    EROOM’s Law of Pharma R & D | buildingpharmabrands
    More posts on the pharmaceutical industry on this blog.

  • Discussion on voice interfaces and services

    Interesting discussion on the use of voice interfaces and services. There is a certain amount of cheerleading involved in the talk; but that is to be expected with vendors in the room. If found it interesting that one of the panelists; Sam Liang of AISense moved out of where2.0 services and into voice. because location is a great gateway to lots of rich contextual information and voice is desperately in need of context and by extension user intent.

    It is interesting to get a perspective on the organisations involved in the discussion on voice interfaces:

    • SRI International
    • Amazon
    • Microsoft
    • AISense

    All of them seem to be well behind where the telecoms voice services managed to get to like Orange’s Wildfire.

    Key takeouts from this:

    • 50,000,000 voice devices to ship this year (2018). A total installed user base of 100,000,000 (presumably excluding voice interfaces on smartphones)
    • AISense is looking to build in voice biometrics that would prompt you about who a person is. Privacy implications are profound
    • The panel struggled to articulate an answer to privacy concerns beyond ‘services need to build trust’ and transparency
    • Information security and hacking wasn’t a point of discussion; which surprised me a lot
    • Context still seems to be a huge issue, I think that this is a bigger issue than the panelists acknowledge. Google still struggles on user intent, without adding the additional layer of understanding voice. The biggest moves seem to be ‘social engineering’ hacks, rather than improvements in technology
    • Amazon and Microsoft don’t have plans for advertising services on voice (at the moment)
    • We’re very far away from general purpose voice services
    • Work has only started on trying to understand emotion
    More information
    • Orange’s Wildfire and The Register on its shutdown. Wildfire’s problem seemed to be a failure of marketing more than anything else. We haven’t seen anything else like it. Even Siri is only scraping over the ashes of the work done on Wildfire 15 years ago
    • Google’s published research on speech processing. What becomes apparent from looking at the list of research is how basic the current state-of-the-art currently is
    • Stuff that I have written that touch on context dependent services
  • Reid Hoffman on tech sector issues

    This Reid Hoffman video stands in sharp comparison to the Ayn Rand-loving frat-bro culture that seems to infect technology  sector companies based in Silicon Valley. However Hoffman in his past has reflected at least some of their libertarian views.

    However Reid Hoffman is cut from different cloth and represents a slightly older generation in the technology sector who pioneered the dot.com era.

    He grew up in Berkeley, back when the technology sector was more hardware focused and Silicon Valley actually made micro-chips. Back then HP (now Agilent) and Techtronix made measurement equipment in the Valley and it was the centre of the cold war missile technology. The east coast from IBM in New York State to the Boston corridor represented a worthy adversary of Silicon Valley. The technology sector only opted to have Silicon Valley as its home during the move to personal computing.

    eWorld

    Hoffman worked at Apple on eWorld – an early way of connecting Macs to the nascent public internet. There was interesting ideas that came out of that at the time including work on object orientated programming. Apple later abandoned eWorld when they saw the ‘net taking off and instead collaborated with selected ISPs like ClaraNet and Demon in the UK.

    Reid Hoffman later founded a prototype-social network and was part of the PayPal mafia before founding LinkedIn. The irony is that the PayPal mafia were ground zero for the current generation of technology company CEOs.

    Reid Hoffman offers a more thoughtful considered viewpoint on the future of the technology sector.

    How Technology is Shaping the Future of Human Society was filmed by the Aspen Institute.