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.

  • Kindle – tenth anniversary

    I was blown away when I realised that it was the tenth anniversary of the the Amazon Kindle. Ten years, think about that for a moment.

    Amazon Kindle & Sony eBook

    If you look at the original Kindle versus the latest model you can see how the design language moved from a ‘BlackBerry’ type product design to a smartphone type design. Along the way it benefited from improvements in e-ink display technology to provide a crisper viewing experience. Sony’s competitor might have looked more modern bit it didn’t manage to get the marketing mix and the hardware / services mix right.

    Sony’s failure indicated while you could be successful in a number of media markets, it didn’t guarantee success in other media.

    Rather like Apple products Kindle is a combination of hardware, software (including content), payment infrastructure and the Whispernet global mobile virtual network.

    Like Apple, Amazon came in and refined an existing business model. Companies like Sony made very nice e-readers, but they didn’t have the publisher relationships and market access that Amazon had.

    Context rather than convergence

    In a time where consumer electronics thinking was all about convergence, from the newly launched iPhone to the Symbian eco-system, Amazon were determined to come up with a single purpose device.

    Amazon resisted the trend and created a dedicated device for reading. That is why you have a black-and-white e-ink screen and an experience exclusively focused on seamless content downloads.

    Yes, they’ve rolled out tablets since, but even the latest range stick to the original Kindle playbook. Some of their decisions were quite prescient. The Kindle was deliberately designed so that it didn’t require content to be side loaded from personal computer like an iPod.

    The Kindle has survived the smartphone and the tablet device as a reading experience. Even if ebooks didn’t conquer the book publishing market in quite the way Amazon had planned.

    Using the U.S. legal system to clear the field

    Amazon was helped out by the US government prosecuting Apple under the Sherman Act. Wikipedia has a good summary of this case. On the face of it Apple was doing a similar structured deal with publishers on book pricing to what it had done previously with record companies for iTunes music.

    This case effectively stalled Apple book store momentum and lumbered Apple with overzealous US government overwatch. The consumer benefit has been minimal – more on that later. The irony of all this is the way Amazon has leveraged its monopolistic position to decimate entire sectors of the retail economy.

    The interesting thing about this case, say compared to the Apple | Qualcomm dispute is that Apple still kept Audible audio book sales in iTunes throughout this dispute and didn’t look at ways to bounce the iPad Kindle app from the app store. Audible is an Amazon-owned company.

    By comparison, Amazon bounced Apple’s TV from its own e-commerce platform and has taken a long time to support the AppleTV app eco-system – long after the likes of Netflix.

    Piracy in China

    Amazon hasn’t had it all its own way. China had a burgeoning e-book market prior to the Kindle and Chinese consumers used to read these books on their laptops.  Depending which store you used; it might have more books at a cheaper price because intellectual property wasn’t ironed out. This has undermined Amazon’s slow entry into the Chinese e-book marketplace.

    A cottage industry sprang up that saw Kindles acquired in the US and Japan shipped back to China and reflashed with software that made them compatible with the local app stores. These Kindles were bought at a subsidised price as Amazon looked to sell devices to sell books.

    The Kindle brain phenomenon

    I moved from the UK to Hong Kong to take up a role and tried to lighten my burden by moving my reading from books to the Kindle. I found that I didn’t retain the content I read. I enjoyed the process of reading less and did it less often. I wasn’t an e-book neophyte I had enjoyed reading vintage pulp fiction novels as ebooks on Palm devices and Nokia phones in the early 2000s as a way of passing them time on my commute.

    Talking to friends their experience was similar. I now read on the Kindle or listen to audio books only for pleasure. I tend to buy my reference books in the dead tree format. There is something more immediate about the process of reading from a ‘real book’ rather than an e-book.

    It seems that digital natives aren’t ready to give up books just yet. Studies about the use of digital technology and e-books in education are mixed and anecdotal evidence suggests that technology industry leaders liked to keep the level of digital content in their children’s lives at a low threshold.

    The Kindle hasn’t replaced the bookshelf and the printing press yet.

    Pricing

    Disposing of the medium didn’t mean that we got cheaper e-books. On Amazon it is worth looking carefully to see what is the cheapest format on a case by case basis. Kindle competes against print books and secondhand books.

    Secondhand books win hands down when you are looking at materials beyond bestsellers. A real-world book is easier to gift and Amazon Prime allows for almost instant gratification. The Kindle starts to look like Amazon covering all the bases rather than the future of publishing. This may change over time, a decade into online news was a more mixed media environment than it is now – but Kindle feels as if it has reached a balance at the moment. More related content here.

    More information

    New study suggests ebooks could negatively affect how we comprehend what we read | USA Today
    Shelve paperbacks in favour of E-books in schools? | BBC
    Study challenges popular beliefs on e-reading | The Educator
    Are Digital Textbooks Finally Taking Hold? | Good eReader – makes the case for a heterogenous book environment of standard textbooks, e-books and used books
    Do ‘Digital Natives’ Prefer Paper Books to E-Books? | Education Week
    Our love affair with digital is over | New York Times (paywall)

  • Tencent Ad Hub + more news

    Tencent Ad ‘Hub’ Connects Brands And Chinese Consumers | The Holmes Report – interesting that they have created a hub for this, the data implications and opportunities are huge. Tencent Ad Hub builds on the huge data set that Tencent already has with WeChat

    Energy

    Amid global electric-car buzz, Toyota bullish on hydrogen – not surprising to proof against lithium bubble

    FMCG

    McDonald’s flips fortunes with back to basics approach – they seem to yo-yo between price/convenience and product innovation. I wish they would bring back drip coffee

    Luxury

    Why Luxury Brands’ Approach to “Chinese Aesthetics” Fail | Jing Daily – interesting read with great examples. I’ve even noticed Shanghai Tang making a few mistakes

    Media

    Facebook blocks viral website Unilad’s page  | Telegraph – it is foolish to build something purely on a platform you don’t own

    Trust Indicators let you know more about a publisher on Facebook | TheNextWeb – guess this is part of the attempt against fake media, but its only a small part of the solution

    Here’s What You Should Be Talking About Instead of Video | Digital – AdAge – (paywall)

    The Economist unwinds: the luxury of print | The Drum – print as ‘lean back’ content

    Online

    Flickr: The Help Forum: Sorry, the photo couldn’t be added to the group because it is already in the maximum number of group pools. – Oath hasn’t been in the driving seat all that long and there are already issues in platform management. This follows on from shutting down the Yahoo! Finance data APIs

    Security

    How the Chinese Government Fabricates Social Media Posts for Strategic Distraction, not Engaged Argument by King, Pan & RobertsChinese regime’s strategy is to avoid arguing with skeptics of the party and the government, and to not even discuss controversial issues. We show that the goal of this massive secretive operation is instead to distract the public and change the subject, as most of the these posts involve cheerleading for China, the revolutionary history of the Communist Party, or other symbols of the regime (PDF) – fascinating study, more online related content here.

    Technology

    Sony: Colour Matching Between OLED and CRT | EETE LED Lighting – interesting that CRTs we’re still the reference standard (reg wall) (PDF) – Trinitron still counts for something

    The best laptop ever made – Marco.org – Marco nails it, the newer machines fall short and require a bag of dongles

  • Sony Walkman WM-R202 – throwback gadget

    sony wmr202
    I got a Sony Walkman WM-R202 and loved it, though it was only for a short while. It was delicate and fragile, or I had a lemon; but it was the kind of device that stuck with me and made sense for me to profile as an iconic throwback gadget. Back when I started work I was obliged to do night classes in advanced chemistry. It was tough going (partly because I wasn’t that focused). I had a long commute home in a company minibus and my existing Walkman WM-24 whilst good had given up the ghost.  I decided to put what money I had towards a Sony Walkman WM-R202 that would help with my commute boredom and my night classes.

    Why that model:

    • It could record reasonably well which I convinced myself would be handy for lectures. It was not up to a Pro Walkman standard as the Dolby circuit fitted was for playback only. (I couldn’t afford the professional grade WM-D6C at the time and they weren’t the kind of device that you could easily fit in a pocket either. They were big and substantial.)
    • It had a good reputation for playback. Not only did it have Dolby B noise reduction and auto reverse on cassette playback, but it held the cassette really well due to its metal construction. I learned the benefits of good tape cassette fit in a rigid mechanism the hard way. I had got hold of a WM-36 which on paper looked better than my previous Walkman with Dolby B noise reduction and a graphic equaliser, but had to keep the door closed with a number of elastic bands. It was a sheep dressed up as a wolf and I struggled on with my original dying Walkman
    • Probably the biggest reason was that it intrigued me. It wasn’t much larger than an early iPod and was crafted with a jeweller’s precision. It was powered by a single AA battery or a NiCd battery about the size of a couple of sticks of chewing gum. It looked sexy as hell in in a brushed silver metal finish.

    Whilst the buttons on the device might seem busy in comparison to software driven smartphones it was a surprisingly well designed user experience. None of them caught on clothing, the main controls fell easily to hand and I can’t remember ever having to use the manual.

    What soon became apparent is that you needed to handle it very carefully to get cassettes in and out. I used to carefully tease the cassettes in and out. Despite my care, one day it stopped working.  Given that mine lasted about two weeks, I am guessing that mine was a lemon and that the build quality must have been generally high as you can still see them on eBay and Yahoo! Auctions in Japan.

    Since mine gave out well within a warranty period, I look it back to the shop and put the money towards a Sony D-250 Discman instead.

    Here’s a video in Japanese done by someone selling a vintage WM-R202 on Yahoo! Auctions which shows you all the features in more depth.

    SaveSave

  • The One Device: The Secret History of the iPhone by Brian Merchant

    I bought The One Device when it came out in July and have gone back and forth reading it. I’d read books on Silicon Valley before; the Apple eulogy  Insanely Great by Steven Levy which told of the graft and hard work that went into the original Macintosh or Where Wizards Stay Up Late by Hafner & Lyon which discussed engineers working really long works. My favourite one is still Robert X Cringely’s Accidental Empires that portrays Gates as a coupon-clipping megalomaniac and Steve Jobs as a sociopath cut from the same cloth as Josef Stalin.

    Merchant’s The One Device is different. It doesn’t eulogise in the same way, but it also lacks immediacy as it feels detached from its subject matter. Unlike Levy’s work, Apple didn’t cooperate with Merchant at all. The book is broad in scope and sometimes loses its way, each one of the chapters could have been an interesting short book in their own right and this leaves it being faintly unsatisfactory.  I guess this is one of the reasons why it took me so long to read it.

    In the meantime the book stirred controversy over quotes attributed to Tony Fadell about then colleague Phil Schiller.  This made me cast a critical eye over some of Merchant’s adventures in the book. In particular inside the Foxconn industrial complex.

    On a more positive note, Merchant’s vision is grander than previous authors. One man’s mission to pull all the intellectual threads together on what made up the iPhone. The iPhone moves from becoming the child of an over-worked and under-appreciated Apple engineering team to being the totem of a global village.

    If you’ve read a quality newspaper you know what he’s going to say about the global supply chain. He also touches on the decades of software and technology development that led up to the iPhone.  How its multi-touch interface came out of a 1990s doctoral thesis. Ultimately the value of Merchant’s book many not be his writing, but instead becoming a new template for journalists writing on Silicon Valley to look beyond the David & Goliath mono-myth and instead dig into the tangled history of innovation. More book reviews here.

  • Apple Knowledge Navigator + other things

    Apple Knowledge Navigator

    Apple Knowledge Navigator was a rewarming of Vannevar Bush’s ideas in his essay ‘As We May Think that’ was published in the July 1945 issue of The Atlantic. There is a clear line between Vannevar Bush’s notional Memex machine and the Apple Knowledge Navigator.

    While Bush had the good sense to realise that a device with all of a user’s books, records, and communications had value. It reminded me a lot of the modern smartphone or the Wikireader. But there was less consideration with regards organisation and search in the Memex.

    These were some of the challenges that Apple thought through in this 1987 concept film.

    The Apple Knowledge Navigator concept film had really interesting search concepts in it. It is a shame that we’re nowhere near where Apple thought search and natural language processing would have been in 2007. This is still a concept video for today.

    Business

    Apple should shrink its finance arm before it goes bananas – The Economist – the risks associated with Apple’s cash mountain

    Media

    Update on Our Advertising Transparency and Authenticity Efforts – Facebook Newsroom – desperately trying to get ahead of regulation

    China Box Office: ‘Geostorm’ Blows to $33 Million Win as ‘Blade Runner’ Flops – Variety – interesting that Blade Runner cratered. I talked to a couple of friends and found out that the first film was not known in China, even amongst film buffs. Secondly the Chinese name was very misleading – moviegoers were expecting a film about a killer.

    How many people see your content on each digital channel? | The Drum  – bookmark for heuristics

    Retailing

    Amazon gains wholesale pharmacy licenses in multiple states | stltoday.com – this is going to blow up the share performance of Walgreens, CVS etc etc. More related content here.

    Security

    Facebook denies ‘listening’ to conversations – BBC News  – probably not the microphone, but would be surprised if they aren’t dipping into chat data or beyond

    Software

    Huawei AppStore and Huawei Video Service heading to Europe in 2018 – Gizchina.com – interesting move challenging Google

    LG K7i (LGX230I) – Smartphone With Mosquito Away Technology | LG India – if this wasn’t being sold on a legitimate LG site I would question if this was a shanzhai phone with fake LG branding. Its an interesting idea though