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.

  • Trends and fads

    Why trends and fads?

    Why trends and fads came about as a post, was that I was scrolling on my LinkedIn notifications on a Saturday (I know, I know I should keep my life free of this crap on the weekends.) Creative Review were talking about how trend forecasting had become rusty, but that got me thinking about did they understand the difference between trends and fads?

    A good deal of what I see described as trends are fads, which then got me wondering about how do I help people differentiate between trends and fads.

    Why has it become harder to differentiate likely trends and fads?

    I would argue that the difficulty in differentiating likely trends and fads is down to a few reasons.

    • The nature of culture has changed. It has become massively parallel in nature. This has in turn impacted trends
    • Culture has become elongated in nature.
    • The changing nature of culture means trends surface and submarine again over time.

    Mass to massively parallel.

    Culture has become massively parallel. Culture and its nature has been transformed over the last century. There were a few sub-cultures at best that mattered at a given given moment in time.

    The idea of the ‘teenager’ which was the first attempt to carve out a new generation was done in the post-war affluence of America and latterly European countries, Japan and Korea as economic development took hold. We might use different language now, but teenagers were the engines for the sale of goods and services:

    • New music
    • New spaces (gaming arcades, fast food restaurants, coffee shops, instant messaging platforms, social platforms)
    • New fashion looks (mods, rockers, greasers, ravers, emo, gorpcore etc.)

    At the time, the mass media helped facilitated the propagation of a mass culture. A few music publications, radio stations, newspapers and TV stations could make a break an artist. We can see this over time with the power of Johnny Carson, Merv Griffin or Ed Sullivan in the US, Gay Byrne and Gerry Ryan in Ireland or Top of the Pops and Pete Tong in the UK.

    Ed Sullivan introduces The Beatles.
    Paul McCartney remembering the 1964 show.

    However a combination of economic improvement and technology saw the mass media broaden with countless publications, TV channels, radio stations, websites and social channels until it is no longer ‘mass’ in nature.

    Add to this, the world got smaller. Travel while still expensive became cheaper from the 1970s and 1980s onwards allowing more people to discover culture from elsewhere. And this was despite a massive surge in the price of oil due to troubles in the Middle East. So trends and fads moved around the world. Liverpool lads brought the ideas of sports casual dress from Spanish and French department stores, Japan borrowed various parts of Americana and streetwear, hip hop went around the world.

    The connectivity from the worldwide web put this in overdrive. A world of culture opened up making things massively parallel, which allowed people to pick and choose their own cues. These choices gave us massively parallel culture and resulting trends.

    Culture has become elongated in nature.

    I have friends (and associates) in their late 50 and early 60s who DJ, surf, skateboard and do martial arts. These were people who remember club nights before house music let alone EDM, who can remember the first skate parks being built in the UK and knew of Stüssy because they were part of the original Stüssy tribe of interesting folks formed by Shawn himself.

    People who might listen to Radio 4 on occasion, but are still cooler and more culturally relevant than many teenagers. Probably more culturally relevant than their college age kids.

    This cultural elongation is something that we’re starting to see gen-z obsessed agencies. A good example of this is ZAK Agency’s Learn To Time Travel white paper. Part of it has been down to life stages happening later for each generation; or not at all.

    • Moving out on your own.
    • Settling down.
    • Having children.
    • Buying their own home.
    • Being able to afford to retire.

    Part of it is down to the world norms changing. I seldom have had to wear a shirt and tie, or suit to work. My Dad wore a tie right up until the mid-1980s to work, because that was expected of him. He wasn’t a banker, but a shipyard worker. Athletes can potentially stay in peak condition for longer, all made possible by the modern world.

    Despite what we believe about technology usage, for those who are 70 or younger, income influences tech adoption as much as age related knowledge. Giving all of us access to as much culture as we can mainline.

    Fads

    If you hear the phrase ‘TikTok trends’ that are fast-changing, it’s a clue that it’s likely to be a fad unless by some blessed miracle it sticks. In the 20th century, fads were often easier to spot and the 1970s in particular were a gold mine for the fad spotter.

    Fads appear, go large and then disappear. They are ethereal in nature, rather like most TikTok trends. The Pet Rock is a prime example with its swift rise and demise.

    Pet Rock

    Northern California-based copywriter Gary Dahl came up with the idea of a pet rock. Essentially adhesive googly eyes attached to a rounded pebble that might feel pleasing in your hand for skimming across a body of still water like a lake. Dahl’s insight came from sitting with friends in a bar and listening to complain about the challenges of pet care.

    Dahl started off his project by writing a satirical pet care manual for a rock, based on the kind of care guide a veterinarian might have for a new dog owner. This included on tips for when your rock was feeling anxious.

    The rock came with the instruction book for care, it sat in a nest of long wood shavings inside a card carrying crate with a handle on top and seven vent holes on each side.

    gary-dahl-2

    Dahl put his product into the market in August 1975. Dahl was apparently selling 10,000 rocks a day and it became a gag gift over the Christmas period with estimates on sales as between 1 million to 1.5 million genuine rocks. By February 1976, they started to need discounting. Dahl ploughed his profits into opening the Carry Nation’s bar in Los Gatos, which is still there.

    The Pet Rock was clearly a fad, yet it did inspire my junior school art teacher to get us to collect stones from a visit to the beach, stick googly eyes on them and varnish the whole lot. Some were brought home and the rest sold at the school fair. Dahl wasn’t able to patent his idea. As far as I know around 2010, someone started an abortive business replicating Dahl’s packaging design and rocks.

    Dahl built his freelance copywriting business up into an agency that produced radio and television ads for local businesses including wireless providers, technology firms and dot coms. The reason for this was that Campbell had been living in the Silicon Valley area as it grew up into what we know today. Dahl even wrote the For Dummies guide on advertising in 2001, which is still available today and is a good primer on the process. Dahl passed away in 2015.

    Trends are resurgent, surfacing and submarining over time.

    Take the idea of cocooning in our own soundscape as an example of a resurgent trend. If you go on the public transport headphones or AirPod type earphones are ubiquitous. If you go and work in an office, you will see a similar set up. Prior to the rise of the AirPods it would have more likely been Sony or Bose over-ear headphones rather than wireless AirPods.

    Back in the early 1970s, my Dad took the train down to London while listening to a collection of cassettes he’d made of his record collection. The trip was one he occasionally made for the shipyard where he worked at the time. It was a long slow train journey. We had a bulky luggable cassette player similar to the one below and he wore a pair of headphones bought in Liverpool that looked like sturdy ear protectors. The tape machine was more designed for basic portable recording such as a manager recording a memo to be typed up. They were occasionally pressed into service in a similar way to my Dad’s usage.

    Old personal stereo
    Around about the same time, luggable stereos were being made by European manufacturers including Philips and Grundig. Soon after that Japanese manufacturers like Sharp, Sony and Panasonic released their own versions which were very successful. These were cemented into culture by young Americans who valued their portability and bass response.
    Beck at Yahoo! Hack Day
    Beck at Yahoo! Hack Day with a boom box

    Boomboxes weighed a lot, Sony provided an alternative with the Walkman and eventually the Discman. These were portable cassette and CD players respectively which offered personal listening with headphones. These were briefly joined by MiniDisc players.

    Around about the time when the web started to take off, you had early MP3 players such as the Rio series of machines and the CreativeLabs Nomad. But things took off with the Apple iPod, offering a new level of personal audio freedom.

    San Fran - ipod advert & Jim

    Eventually a confluence of the smartphone as digital Swiss Army knife and BlueTooth wireless standards provided us with our current personal audio freedom.

    Cocooning is just one example. As far back as the post-war era we have seen military surplus clothing go in and out of style. Thrifting has taken a similar route with it driving the iconic grunge look of the early 1990s and the Dpop shopping of today’s young people.

    We could quite easily come up with a list of trends that never die. The annual trend reports tweaking the relative volumes on these trends over time to match economic and socio-cultural changes.

    More related content here.

  • Six hundred pairs + more stuff

    Six hundred pairs of Nikes in a custom-built house

    The six hundred pairs of Nikes are owned by a Japanese lady who now is head of marketing for Ugg in Japan. Previously she’d spent over 20 years in sales and marketing for Nike. Her house was designed around her shoe collection and the double height ceiling in the room to host the six hundred pairs is worth watching for alone. There are more than six hundred pairs. Some of the stories about the six hundred pairs of shoes are fascinating such as how Nike Air Max 95s were responsible for thefts and muggings in Japan.

    Tom Ford

    Everyone needs a Tom Ford in their life. From personal life hacks to interior design and grooming all in the space of a few minutes. This sounds as if the interview as done around about the time that Ford was bowing out of his fashion and beauty businesses.

    Gibbs SR toothpaste

    Along with Close Up and Aquafresh; Gibbs SR toothpaste was one of the toothpastes I remember most from childhood. Unilever bundled it eventually into Mentadent and it was quietly taken off the UK market in 2018.

    I didn’t realise that Gibbs SR toothpaste was the first advertisement shown on British television. UK law had changed the previous year allowing for commercial television. The creative behind the ad was Brian Palmer of Young & Rubican (now VML).

    So, I was listening to the Uncensored CEO podcast Jon Evans when he had Les Binet and Sarah Carter on. One of them mentioned that the above ad was tested recently and scored top scores. It might be novelty, but is unlikely to be nostalgia that drove this test score. What’s more interesting it that Y&R managed to get the creative so high performing decades before the kind of tools that we have now.

    Hyper-reality

    Keiichi Matsuda took what Apple would call spatial computing to its logical conclusion in this 7 year old film HYPER-REALITY. There are a number of clever aspects to it. Watch when the device reboots in the supermarket and the glyph wearing criminal who escapes identification by the system.

    In reality, hardware will restrict how useable that these products will be. Which is the reason why the Apple Vision Pro looks so cumbersome. More related content here.

    John Glenn

    Great interview with Mercury and Apollo programme astronaut John Glenn covering different aspects of his experience as an astronaut. We hear how astronauts became so involved in the engineering and safety aspects of the Mercury and Apollo programmes.

  • Complaint resolution + more things

    Complaint resolution

    My mind cast back to one of the first modules I studied at college. There was a lecture on the role of complaint resolution as part of customer services. The idea was that effective complaint resolution engendered trust in a customer service function and was more likely to increase brand loyalty and recommendation to other people. In reality Ehrensberg-Bass Institute have explored this area in more depth and found that customer penetration is more important than customer loyalty.

    Approaching Logan Airport
    US National Archives: Approaching Logan Airport. 05/1973 by Michael Manheim

    I suspect that the benefit in complaint resolution is more around a premium brand positioning rather than the business benefits of loyalty. This is an interesting frame to consider AirHelp’s global airline ranking. Unlike SkyTrax that focuses on experience, AirHelp weighs its ranking heavily on complaint resolution.

    British Airways came 82nd out of 83 airlines assessed, which won’t be a surprise to anyone who has flown with them over the past four years.

    Many airlines that would have a high SkyTrax service ranking, didn’t perform as well on complaint resolution.

    So there wasn’t a clear correlation between experience resolving lots of customer complaints or a highly evolved service offering.

    Beauty

    Asia’s beauty triangle and why L’Oréal wants to harness it to ‘uncover the future’ | Cosmectics Design Asia – focus on the ‘beauty triangle of China, Japan and Korea for innovation

    Consumer behaviour

    The Strength of Weak Ties by Mark S. Granovetter – written back in 1973 and still just as valid.

    Energy

    Emerging car brands scrutinised by Bloomberg and Grant Thornton | Manufacturer“Chinese brands are dominating the scene with good products, big screens, and impressive interfaces.” However, the challenge arises when considering pricing, as Chinese EVs like the XPeng’s G9 SUV was 72,000 euros competing against the likes of BMW and Mercedes. So they’re going to find it very, difficult and it’s going to come down to price.” Dean pointed out MG’s success in the UK market was achieved by hitting exactly the right sweet spot in terms of pricing. The MG ZS, the second-best-selling battery electric vehicle in the UK, is priced at an average of £31,000, making it compelling in terms of competitive pricing especially in a country where consumers are not fiercely loyal to specific brands. – interesting reading. The way for Chinese vendors to win would be to have Chinese incentivised lease financing, particularly in a time of higher interest rates a la Huawei in the telecoms markets.

    Honda will cease production of its first EV e car after dismal sales | The Asahi Shimbun: Breaking News, Japan News and Analysis

    Ethics

    Bee Respect: Guerlain – interesting full-featured sustainability policy

    Staff rebel at consultancy behind VW review of Xinjiang rights abuse | FT – Volkswagen using sketchy data practices, haven’t we heard this somewhere before?

    Finance

    China Turns the Tables on Wall Street – WSJ – I am not surprised, just wait until they see how Chinese overseas debt is handled let alone 3rd world sovereign debt

    FMCG

    China overtakes US as branded coffee shop capital of the world | Starbucks | The Guardian

    Health

    American men are dying younger. – by Richard V Reeves – I just don’t think this can be addressed in the current climate of othering and privilege. It would be like trying to hold a meaningful discussion on immigration a few decades ago.

    How Taiwan’s disease detectives are keeping tabs on China | Telegraph Online

    Hong Kong

    Xi in Nanning; Shanghai and Beijing real estate tweaks; More Hong Kong bounties; Sim Love | Sinocism – the Hong Kong puts bounty on the head of US citizen who has criticised the Hong Kong government in the US. They are all ethic Chinese. So China and the Hong Kong government think that ethnic Chinese wherever they are should be loyal to their respective administrations – in essence their face is their passport. Not even Israel does something similar with the the world’s Jewish community, or Ireland with our diaspora.

    Innovation

    Quantum Breakthrough: Caltech Scientists Unveil New Way To Erase Quantum Computer ErrorsResearchers from Caltech have developed a quantum eraser to correct “erasure” errors in quantum computing systems. This technique, which involves manipulating alkaline-earth neutral atoms in laser light “tweezers,” allows for the detection and correction of errors through fluorescence. The innovation leads to a tenfold improvement in entanglement rates in Rydberg neutral atom systems, representing a crucial step forward in making quantum computers more reliable and scalable.

    Luxury

    LVMH takes VivaTech 2023 visitors on a journey in its Dream Box and LVMH Court – LVMH

    Suntory to double prices for premium whiskies in April | The Asahi Shimbun: Breaking News, Japan News and Analysis

    South Korea’s Coupang to acquire online luxury retailer Farfetch | FT

    Marketing

    The best of the Jay Chiat Awards: Campaigns that broke habits and reframed perceptions | WARC

    Panadol chief marketer: How healthcare is ‘hotting up’, consolidating agency partners and why purpose can go ‘too far | Campaign Asia – rational for not spreading agency spend ‘too thin’ which explains holding company partnerships

    Media

    What the Epic vs Google case means for content | Ian Betteridge – well worth reading

    Online

    Meta forced to apologise to Qatari billionaire over crypto scams | FT

    TikTok car confessionals are the new YouTube bedroom vlogs | TechCrunch – a combination of factors going on here. Here’s my top hypotheses:

    • It is supposed to look ‘off-the-cuff’. I guess the keyword in that sentence is supposed.
    • It feels less structured and less staged than the YouTube bedroom trope.
    • Its a half-way house between being confident enough to film in public and filming in your bedroom.
    • Many cars have smartphone stands, or have owners who have installed them.
    • Cars offer some benefits in terms of acoustics. This would be particularly important if the content creator lives in a multiple occupancy household.

    WordPress founder Matt Mullenweg asked people to blog as a way of celebrating his 40th birthday.

    Retailing

    Brands are blaming Temu & Shein for poor business performance | Modern Retail – you probably have a problem with marketing and communicating value if this is the case.

    Technology

    What leading Apple-in-the-enterprise execs expect in ’24 | Computerworld

    GV Co-Leads Funding Round for Photonic Computing Startup Lightmatter – Bloomberg

    Web of no web

    How Meta’s New Face Camera Heralds a New Age of Surveillance – The New York Times

    Wireless

    6G: network operators want profitable returns on 5G first | FT

  • Innovation signalling

    What is innovation signalling?

    Innovation signalling has some similarities with its counterpart virtue signalling in terms of authenticity in terms of behaviour and the projected image. An organisation looks to demonstrate its ‘high degree’ of innovation with actions and projects with the external image firmly in mind. There may be an internal learning, or business benefit to this as well, but the image projected is the main objective.

    How to Complete Label’s Fashion Challenge in Animal Crossing: New Horizons

    As I wrote this post a collaboration between Moncler and Adidas dropped putting innovation signalling at its core involving both involving NFTs and AI generated designs and models.

    Open Sea has an NFT where the owner gets a Rolex watch on submission of the NFT. This has since been extended into the US market by CRM Jewellers in Miami.

    AI has its place for instance, simulating and optimising product design based on physical properties. NASA has used AI for just this purpose in conjunction with additive manufacturing techniques for small production runs of parts needed for the space programme.

    It’s not just the luxury sector

    This might read like I have been picking excessively on the luxury sector. I use them as exemplars mainly because their examples are so high profile. But there are examples in other sectors. For instance, Walmart partnering with IBM to use block chain to track individual lettuce heads from farm to customer trolley.

    There were similar partnerships that IBM hatched with Unilever, Nestlé and Dole Foods as well, but the fruits of these projects were not publicised to the same degree.

    You can find similar posts here and this metaverse discussion paper that helps to cut through the blockchain and metaverse hype.

    More information

    Dior takes its Chinaverse presence to new heights with second virtual showcase | Digital | Campaign Asia

    How the metaverse downturn is benefitting digital designers | Vogue Business

    Kim Jones designs skins and vintage car for Dior’s gaming debut | Vogue Business

    Inside The Metaverse Strategies Of L’Oréal And LVMH | The Drum

    Meta’s new digital fashion marketplace will sell Prada, Balenciaga and Thom Browne | Vogue Business

    When it comes to Roblox, Gucci is not playing around | Vogue Business

    Gucci Town Lands on Roblox With Activities and Shopping Experiences – Robb Report and Gucci Cosmos Land brings physical heritage to the metaverse | Vogue Business – on The Sandbox

    VR Experience for Santos de Cartier Launch – Virtual Reality Marketing

    Cartier Plugs into VR to Sell Historical Watch Story to China | Jing Daily

    LVMH’s Arnault is wary of the metaverse “bubble”. Should luxury be? | Vogue Business

    Marni introduces digital fashion with new virtual world | Vogue Business

    Tiffany’s Alexandre Arnault joins the NFT Cryptopunks community | Vogue Business

    Roblox earnings: Why enticing brands is key to the future of the metaverse platform – Digiday

    What fashion week looks like in the metaverse | Vogue Business

    Luxury brands are ditching KOLs for virtual influencers in China: how Alexander McQueen, Dior and Prada are turning to digital avatars and AI idols to woo millennials | South China Morning Post

    An Outfit to Match Your Chain – Google Drive – Highsnobriety has interviews where these intersect with luxury and fashion. It will be probably handy for a couple of client presentations

    NASA Turns to AI to Design Mission Hardware | NASA.gov

    From Farm to Blockchain: Walmart Tracks Its Lettuce – The New York Times

    Walmart and 9 Food Giants Team Up on IBM Blockchain Plans | Fortune.com

  • Technonationalism

    Technonationalism as a term has started to spring up in Chinese policy discussions regarding technology trade with the US and China.

    Technonationalism origins

    Technonationalism is a term used by economist Robert Reich in 1987 to describe the relationship between technology and national security. Reich used the term in an article that he wrote for The Atlantic. It originally referred to the intervention of the Reagan administration in the United States to prevent the acquisition of Fairchild Semiconductor by Japan’s Fujitsu. Reich felt that the Reagan administration mis-understood the the technology problems faced by the US and blocking the Fujitsu-Fairchild deal was the wrong thing to do.

    Fairchild Semiconductor
    Elkor Labs photo of Fairchild Semiconductor exhibition stand.

    The China effect

    In English language usage, it started to be mentioned in publications as far back as 1969 and seems to have had two distinct peaks. The first was from the Brezhnev-era Soviet Union through to 1990. The second peak coincides with China’s rise.

    techno-nationalism

    From a Chinese perspective, strategic conflicts between major powers have revitalised the concept in the international political arena. Of course, this ignores China’s own actions and their perceptions by other countries:

    Today, the competition between China and western democracies is focused on critical materials like pharmaceuticals and a range of strategically important advanced technologies.

    These sectors include:

    • Electric vehicles (or as they are called in China new energy vehicles)
    • Drones, virtual reality,
    • Various type of machine learning ‘artificial intelligence’
    • Big data and data mining
    • Robotics and automation
    • 5G networks
    • The Internet of Things (IoT),
    • Synthetic biology

    This conflict is considered more severe than the US – Japanese semiconductor trade friction of the 1980s. But Japan and the US were largely aligned from a political, defence and economic perspectives during this time.

    The technology related to disputed sectors are seen as key to the next generation of defense systems, industrial capabilities and information power China and western democracies.

    Neo-liberalism & technonationalism

    This implies that economics is an extension of defence rather than completely separate, as implied by the western neo-liberal laissez-faire approach to globalisation. This places company leadership dead set against the wider interest of their own western countries. During the cold war with the Soviet bloc western companies were much better aligned with their country’s interests.

    Palmer Luckey’s Anduril represents a notable exception in Silicon Valley and its attitude is remarkably different to the likes of Apple or Microsoft.

    Post-war Asian miracle model

    While technonationalism as a term was given voice in the mid-1980s, one could consider the directed economy efforts by the likes of MITI in Japan and its counterparts in Taiwan and South Korea as being technonationalist in nature.

    From this perspective, technonationalism played a crucial role in post-World War II economic and industrial policies, fostering domestic industries, promoting scientific and technological innovation. These polices propelled Japan to become a global technological power. Korea took a similar tack with Park Chung Hee’s compact with the chaebols and the Taiwan government was crucial in the roots of Taiwan’s dominance in semiconductors.

    Back to the present

    The current increase in technonationalism by China and western democracies means that international trade in many fields will continue to change due to national security concerns evolve. This is often masked in language such as de-risking, de-coupling and de-globalisation.

    More related content here.

    More information

    警惕日本的技术民族主义

    The Rise of Techno-Nationalism | The Atlantic

    Is ‘Made in China 2025’ a Threat to Global Trade? | Council for Foreign Relations

    Chip War by Chris Miller

    How Asia Works: Success and Failure in the World’s Most Dynamic Region by Joe Studwell