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.
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
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.
Whilst Cambridge Analytica surprised most people in digital marketing who get the technology. The claims surprised for three main reasons:
Facebook’s scope of data access wasn’t surprising to marketers, but the level of shock the media felt was seismic
Cambridge Analytica was considered to have some mythical secret sauce by the media. Those marketers close to the political scene were surprised. How was Cambridge Analytica thought effective?
The media have avoided discussing the advertising technology that underpins modern online media. This creates richer data profiles and improves media targeting. Unfortunately this technology runs on their website, analysing their traffic, vending their advertising
‘Supernatural’ technology
I caught up with a friend who had recently upgraded the operating system on their Mac laptop and iPhone. They made a restaurant booking and were surprised when the web site ‘knew who they were’. and automatically completed their information. Then, on the day of the booking a notification popped up. It said that they should leave now as there was moderate traffic.
They ascribed all this magic to the the website ‘knowing’ everything about them. I explained to them that this was their Apple products trying to be helpful rather than dialing their anxiety levels to 11.
People are powerless
There is an assumption amongst the general public that technology has supernatural powers.
It makes them uncomfortable, but they feel powerless in the face of it. This discomfort reminded me of the ‘uncanny valley’ experienced with humanoid robots. For the rest of consumer there is latent inertia. They will generally put up with a lot of discomfort.
They realise at a base level that The Technium is – . They don’t realise how they should adapt to it.
The technium is a superorganism of technology. It has its own force that it exerts. That force is part cultural (influenced by and influencing of humans), but it’s also partly non-human, partly indigenous to the physics of technology itself.
It’s just the way things are. Consumer actions won’t make a difference. #deletefacebook will barely make a dent and that’s what’s scariest of all. More related issues here.
Sex Workers Say Porn on Google Drive Is Suddenly Disappearing – Motherboard – don’t assume that the contents of your Google Drive hasn’t been thoroughly examined by Google. Adult entertainment is merely the canary in the coal mine for Google Drive privacy. I would be very careful about using a cloud storage platform if you haven’t encrypted the entire folder as a bundle before uploading it. And don’t use Google Drive. More related content here.
Consumer behaviour
The unparalleled joy of writing with a fountain pen – and five beautiful pens to inspire you – Country Life – Among the obituaries of a former Conservative Minister a few years ago, there was one delightful snippet. A line in The Daily Telegraph described how, when she received the letter from Mrs Thatcher appointing her to the Lords, Lady Blatch initially believed it to be a hoax, because the letter was signed in Biro and she had been ‘brought up to believe that nobody who matters uses a Biro’.
Millennials: you will not be quite so special in the ‘futr’ | FT – could it be that millennials, the most scrutinised, criticised and debated generation of our time, were not that special any more? “Millennials are still important as a customer,” Ms Ganatra told me later. But there is now a “millennial mindset” that has nothing to do with age, she said. In other words, millennials may have been the first generation to have grown up in a digital world but the rest of us are catching on fast. People of all ages are now so used to shopping with a click or talking to a chatbot that retailers need to think about the needs and desires of all their customers, not just those born between 1981 and 1996 – or an artificial construct in terms of their digital uniqueness
Ideas
Cigarettes are the vice America needs | FT Alphaville – Cigarette smoking is essentially the anti-Facebook. While Facebook is a fundamentally misanthropic venture that pretends to be a community, smoking is a community activity for people who pretend to be misanthropes. The activity itself is fundamentally pro-social! It gives people reasons to interact with strangers (“got a light?”). And since it was banned indoors — undeniably a good choice — it gives people a reason to go outside and make idle small talk, all while pursuing a common activity. And unlike alcohol, cigarettes alone don’t often lead to property damage or missed days of work (paywall)
Study: Smart Speakers are Changing the Way We Select Products – interesting how this is impacting retail. FMCG brands in particular should be really concerned as this is far beyond what supermarkets could do with dodgy shelving layouts and look-a-like private label brands
Building for the modern web is really, really hard | O’Reilly – average website clocks in at 4MB with 100s of elements including 3rd, 4th and 5th party based interactions – which also explains page load times – and slow AF ad related technology such as trackers
Is Facebook Really Scarier Than Google? | Nautilus – worthwhile reading about the effect of Google – of course they both have an impact otherwise you wouldn’t advertise on it. The question needs to be does the utility justify the impact? I think search has a better case than a social network, but both have merits
Alex Stamos, Facebook Data Security Chief, To Leave Amid Outcry – The New York Times – Some of the company’s executives are weighing their own legacies and reputations as Facebook’s image has taken a beating. Several believe the company would have been better off saying little about Russian interference and note that other companies, such as Twitter, which have stayed relatively quiet on the issue, have not had to deal with as much criticism
Technology
China’s Huawei Technologies reshuffles board for first time since 2012 – I presume the reason why Mr Ren is getting back behind the wheel is that overall and smartphone revenue figures for 2017 was Huawei’s slowest growth in four years. I am not convinced that premium products will be the way forward when they are locked out of the North American retail system. I am also not sure why the management team at Huawei Mobile Devices hasn’t been refreshed
The Valley of Death: the students vying to be millionaires | Telegraph – In 2015 Oxford, the UK’s number one university for research, produced four spin-outs. Not per professor. That was for the whole university. The situation was not better elsewhere. Data on British university spin-outs is not in any publicly available league table. But it exists, via what’s called the HE-BCI survey (it stands for Higher Education – Business and Community Interaction). For 2015-16, Cambridge University recorded a total of two spinouts in the HE-BCI survey. Imperial College London, another of this country’s most vaunted research universities, listed three. Of 160 institutions, 59 officially produced no spinouts at all.
Alternatives to Big Tech, and a t-shirt | Creative Good – as someone who has used RSS for a long time I am intimately aware of the needs for alternatives to big tech. Google Reader obliterated RSS readers and then obliterated RSS readership by abruptly withdrawing the product. I’d argue that you could use Apple’s default iCloud account and MacOS apps. Mark Hurst recommends Safari or FireFox but ignores Mail.app, Calendar.app and Contacts.app. I have been using these three apps since I started using OS X in 2001.
Nice little Nesta egg: Former lottery quango took £7m from Google • The Register – details of Google’s influence in European academic life are detailed in a report by the Campaign for Accountability (CfA), an initiative part-funded by Google’s competitors. Google turned out to be the only corporate sponsor of think tank Readie, the Research Alliance for a Digital Europe, hosted at Nesta.
VW Just Gave Tesla a $25 Billion Battery Shock – probably the best argument that I’ve read for super capacitor and hydrogen fuel cell technology due to the shortage of cobalt. Lithium prices have also inflated massively over the past few years
Amazon: The Making of a Giant | WSJ – Today, the AI assistant has more than 30,000 skills available on its store and can be used to control more than 4,000 smart-home devices from 1,200 different brands. (paywall)
