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.

  • 48 hours with the Apple Watch

    My experiment with the Apple Watch is part of a larger project. I  decided to experiment with wearables a while ago. My first experiment was with the Casio G-Shock+ series of watches that takes the well-loved brand and drops some rudimentary notification function, BlueTooth LE capability and a companion iPhone app together as a workable but unambitious package.

    The Apple Watch is a different experience and has a different ethos to the Casio G-Shock+. The Apple Watch experience starts as soon as you receive the package.

    I was surprised to be presented the box by security in reception, mainly because it had roughly the same size and weight as a toner cartridge for the office colour photocopier / printer.
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    My immediate reaction was that Apple may have made the packaging look like this to mask the first drop of watches from over-ambitious eBay entrepreneurs in the postal service.
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    But it soon became apparent that Apple had built a packing equivalent of a Winnebago RV for the watch.
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    Inside a long heavy duty cardboard box is a giant whale of a coffin for the watch and space underneath for the charging cable and plug in charger. All of this seems at odds with Apple’s move over the years towards less wasteful, more environmentally friendly packaging.

    At the same time the experience didn’t feel special to me, just slightly perplexing, ok very perplexing. I have been involved in the launch of a new Huawei smartphone over the past few weeks and that packaging provided a more luxurious experience.

    An email arrives to my home account letting me know that I can set up a live video call with someone who will help me set up my watch. An alarm bell rings in the back of my head that makes me think that the product might not ‘just work’ which the a core tenet of the Apple experience.

    The watch itself has some nice industrial design touches.
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    The Apple Watch strap was easy even for a mechanical klutz like me to change, by pushing a button and sliding the strap in or out of a groove on the case.

    The case is nicely made (as something the price of a premium Casio or Hugo Boss watch should be). However as a bit of a watch head the case did not blow me away, if I didn’t know about it’s smarts it felt very much like a Fossil watch.

    Switching it on and pairing it with my iPhone was very easy, the problems began when the iPhone app schlepped across all my iPhone applications that had Apple Watch capability, without a thought for how often I use them. This means that the home screen is covered in an acne rash of default and third-party applications, 80 per cent of which I don’t regularly use.

    Whilst I am in awe of the the way the device hides the process of syncing with the iPhone I am less impressed by the slow speed of glance content loaded from the iPhone more slowly than it would be to just take the iPhone from my pocket and look.
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    When glances do appear, they appear in an amazingly high resolution.

    The killer app

    The haptic alerts were handy and Accuweather had made the best Watch app. WeChat shamed Twitter with its comparative usefulness. But ultimately I still don’t know a compelling reason to own an Apple Watch beyond trying to understand where it fits in a customer’s digital life.

    The Apple Watch is a two-handed device, for instance unlocking the Watch by typing in your PIN. Flashback to a childhood encounter with a friend’s Casio Databank flooded my memory whilst unlocking the watch.

    I found that I tended to use the crown when the watch wasn’t on my wrist, probably sounds a bit pointless.

    Like the Casio G-Shock+ before it, Apple hadn’t mastered prioritising alerts or putting intelligence behind them. I think that this a major issue, since app developers will try to go for maximum notification real estate as part of the ‘grab’ of the attention economy. I think that this is an Achilles Heel of wearables in general.

    Conclusions

    The Apple Watch didn’t encourage me to ‘play with it’ to find out its features, the way other Apple products from the original sit-up and beg Mac to the iPod and iPhone did. I can’t say that I have had any real enjoyment out of using one. So much so, that I was quite happy to leave it in its charger most of Sunday, whilst my iPhone is never an arms length away.

    Notifications are going to become very tiresome, very fast.

    It isn’t particularly friendly to use and at 48 hours in, I still haven’t really got to grips with the device.

    This feels like a first step in a long journey needed to fix the human smartwatch interface.

    The Apple Watch feels like a solution looking for a problem, just in the same way that the Mac only found its calling with Aldus desktop publishing software and an Adobe powered laser printer, so the Apple Watch is dependent on some clever app development in the future.

    I suspect the kind of programmable world that we would need for the device to thrive, for instance your iPhone seeing that you have enough time in your diary, ordering your morning coffee at Starbucks and then the Watch telling you to step in the cafe and pick it up just as you are about to walk past doesn’t exist yet.

    The experience did get me to marvel at the engineering that went into the device, but at the moment it feels that all that effort has been largely unrewarding in terms of customer experience. I still wear my collection of G-Shocks or fine Swiss watches on my right wrist. I don’t think that many watchmakers have much to worry about yet, except those targeting the mid-market of big brand, mediocre movements.

    More information

    On smart watches, I’ve decided to take the plunge
    On wearing a smartwatch
    On Wearables

  • The Amazon Dash button post

    At the beginning of this month Amazon launched an addition to their Dash ordering hardware with the Amazon Dash button. There was a lot of incredulity amongst the media heightened by the unfortunate timing which overlapped with April’s Fool Day.

    Why the incredulity?

    I would break the cynicism down into two broad buckets:

    • The Amazon Dash button has a very singular usage / use case, narrower even the Yo! app which was a bit of a tech fad last year. Critics are at best uncertain that consumers would use them? I generally buy toilet rolls every 4-6 months, do I really need a button for that?
    • The Amazon Dash button implies that the hardware required is ridiculously cheap. How many boxes of washing powder, packets of Mac & Cheese or toilet rolls would be required for a button to break even?
    Business perspective

    Rather than ripping into this into too much depth I thought I would share Benedict Evans’ interesting hypothesis about the Amazon Dash button:

    Amazon is trying to eliminate both vendor and brand decisions, and turning itself into a utility company – get your house connected to power, water, gas and Amazon. And choosing which commodity product you need is just another piece of friction to be removed by Amazon’s kaizen

    There are some interesting directions that come out of this view point. Let’s break Benedict’s analysis down chunk-by-chunk:

    • Eliminating vendor decisions: there are two prongs to this. Firstly, it would reduce the basket size for supermarkets and also reduce impulse purchases. Let’s think about the Walmart ‘beer and diapers’ retail urban legend for a moment – if you weren’t shopping for the diapers, you aren’t likely to have picked up the beer next to it as you would have had no reason to go near those shelves. By implication it is also an attack on some of the categories carried in convenience stores. Given that the button is about ‘just-in-time’ shopping it implies that the users are not likely to have rooms in their lives for big box retailers or CostCo. The buttons are likely to aimed at urban dwellers rather than the suburbs were larger homes and larger vehicles to do the big box store shop are the norm – Sam’s Warehouse is safer than Walmart in this scenario
    • Eliminate brand decisions: since sales are diverted from supermarkets this also affects their private label sales, especially where they are acquired by accident as lookalikes stacked next to well-known brands. Challenger brands find that switching becomes much harder as they can’t intercept the customer at the point-of-intent through shopper marketing and the opportunity cost for the consumer gets raised due to the comparative nature of the friction in purchase.  It also begs a question about how much it affects the share price of WPP and other marketing combines who have spent big on shopper marketing acquisitions over the past few years. Do buttons offer a net gain or loss of value to them? I do know that the button puts Amazon in a much more powerful position versus vendors in terms of discount pricing to retailer and warehousing. The key to understand the power  that Amazon would bring is ‘choosing which commodity product you need…’. The very idea of a product being boiled down to a commodity buy would scare the living daylights of the average brand manager in an FMCG mega-corp
    • Turning itself into a utility: for Amazon this is about locking the consumer in via Prime to the consumer life. At the present time, logistics costs have been an increasing proportion of the cost of sales for Amazon, there must be a hope that the scale of grocery shopping will bring down the price of Prime and drive profits higher?

    There is no reason why the likes of Tesco, Ocado or Iceland couldn’t have done this. The wider Dash technology would make it easier for consumers to do grocery shopping and reduce the friction of online purchases. Instead they seem to have wanted to reduce cashier numbers inshore and focused on self-service tills. Time will tell if they made the right technological choice.

    What about the user?

    This is designed to make the consumers life easier and I can see how it makes purchase of otherwise annoying to shop for items frictionless, but it only works within reason. You can’t have a wall of buttons on the front door of your fridge freezer and just when do you press the button in the bathroom to order up more razor blades or toilet roll? What happens during the run up to Christmas when Amazon has had sub-optimal performance with regards deliveries on occasion? What is the buying frequency required to make the button habit forming, used without thinking about it, without consideration. When does the opportunity cost for the consumer tip in their favour regarding button usage?

    What I don’t have yet is a clear understanding on depth and breadth of the customer problem being solved by the Dash button.

    Product design

    The original Dash device was interesting because it represented a rejection of the broader theme of convergence where functionality is subsumed from dedicated hardware into a software layer running on a computer, via a web browser, tablet or smartphone. Instead Dash is a shopping appliance and wouldn’t look out of place in a cupboard full of Braun kit.

    The Dash button represents a further evolution of specialist hardware, a brand-specific, tactile hardware interface. It mirrors software like IFTTT’s ‘Do’ application, the Yo! messenger app and the Dimple smartphone button project.

    For non-food products like toilet rolls that come in a plastic bale that is quickly discarded, there may not be a barcode to scan in on your Dash device. Instead you would have to ask for a new pack of Charmin’ or more Mach3 razors. Processing each voice message is expensive, which makes the opportunity cost around creating dedicated buttons for certain classes of product much more attractive. Amazon first and foremost is a data-driven company, they will know which product categories that they want to have buttons for. However, what makes on an Excel spreadsheet doesn’t always make sense to the consumer…

    More information

    Amazon Dash button
    Benedict Evans newsletter edition 106
    Investing in smart logistics | Fidelity Worldwide Investments
    Amazon, in Threat to UPS, Tries Its Own Deliveries | WSJ (paywall)
    Supply Chain News: A 360-Degree View of E-Fulfillment Part 1 | Supply Chain Digest
    Amazon joins numerous startups in building delivery networks to disrupt Fedex and UPS. | DataFox
    The Amazon Dash post
    Dimple smartphone button project | Indiegogo
    SpinVox: the shocking allegations in full | The Kernel

  • Smart home: is all we want is a better burglar alarm?

    The Bluetooth SIG (Special Interest Group) put together some PR-able research on what consumers think about the smart home.

    Methodology
    First of all the methodology:  online survey of over 4,000 US, UK and German consumers. The sample size is better than many, however I don’t know if the sample was self-selecting or what kind of biases might be in there. Since it was gathered solely online one has to have a certain amount of skepticism on sample make-up. But to do this as a telephone survey, they would have had to make in excess of 170,000 phone calls to get the 4,000 respondents to the smart home research.

    The nature of the questions means that answers are prompted which would again affect consumer attitudes rather than open answers which are then categorised.

    Finally, some cultures (like the Japanese) are much more accepting of technologies than others. Home ownership differences will also add into the mix depending on the depth of capital expenditure required to deploy a given technology. Renting is much more common in Germany, the UK has an aspiration to purchase.

    How valid are consumer opinions?
    In evolutionary products such as a new chocolate bar or toilet roll, consumer opinions on developments make more sense than a largely unwritten future a la the smart home, as Steve Jobs is reputed to have said:

    “It’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them.”

    On to the results
    They put together some nuggets of data from the questions as diagrams, the most interesting was
    Print
    Ease-of-use is an interesting, but largely predictable response. I guess useful was assumed rather than asked in this question.

    There was a comparative lack of interest in smart appliances in comparison to smart environment controls (lighting, HVAC and home security). I suspect that this is partly because ‘smart’ technology has rolled out first in offices with touch control A/C and motion-controlled lighting – where respondents have been exposed to it.

    The thing that puzzles me is why one would want to control some of this smart home technology via the internet. Something like smart lighting doesn’t need to connect to a cloud but instead use local sensors whether it is a Bluetooth MAC address or infra-red heat signature that moves. More gadget related content here.

    More information
    From Sci-Fi to Reality: Almost Half of Consumers Think The Smart Home Will be Mainstream in Five Years
    Bluetooth SIG (Special Interest Group)

  • RSS dead nonsense + more

    RSS dead nonsense

    Is RSS Dead? A Look At The Numbers | MakeUseOf – interesting stats on RSS – a very-much alive format. RSS dead is nonsense, I use it everyday. It is invisible plumbing. Reports of RSS dead is due to the demise of Google Reader. I can’t recommend RSS reader Newsblur enough. More related content here

    Business

    Adidas Group Forecasts 15 Percent Annual EPS Growth Through 2020 | Team Business – interesting definition of open source

    China

    China Focus: Top political advisor highlights CPC leadership, “Four Comprehensives” | Xinhua – comprehensively building a moderately prosperous society, deepening reform, advancing the rule of law and strictly governing the Party

    Culture

    ‘We Came to Sweat’ Tells the Story of New York City’s Oldest Black-Owned Gay Club | VICE – interesting artefact of club culture

    Economics

    Chinas slowdown has suddenly become a “fiscal shock” | Quartz – interesting economic data, the property price change doesn’t surprise me, Chinas slowdown is likely to be temporary

    FMCG

    Kraft and Heinz Merger a Cost Cutting Story | Euromonitor International – cost cutting could also be from a marketing perspective

    Innovation

    Venture investor Bill Gurley predicts startup failure – Fortune – we may not be in a tech bubble, the venture capitalist said, but we’re in a risk bubble

    Luxury

    “Dressing down” is only a status symbol for the elite – Quartz – flagged up by our Becky

    Online

    Facebook Unveils Immersive 360-Degree Video for News Feeds | WIRED – interesting moves to come up with immersive (non game) content

    Philippines

    Homegrown smartphone brand beats Samsung in the Philippines | Techinasia – part of a wider story about how Samsung is getting rolled back out of high growth markets in smartphones

    Security

    Ex-NSA director: China has hacked ‘every major corporation’ in U.S. – CNN Money – strident allegations, I wouldn’t be surprised if the 5Is have also done the same thing

    Software

    Messaging Apps Offer Do-It-All Services in Bid for Higher Profits – NYTimes.com – interesting article on how WeChat and LINE are blazing the trail for western OTT messaging platforms in terms of innovation and business models (paywall)

    WeChat is how content goes viral in China | Resonance China – from a marketing perspective this confirms the decline in Weibo as a platform. It also provides challenges due to the lack of visibility for brands in comparison to Weibo

    What’s missing from this 13-year-old girl’s iPhone home screen? – Quartz – interesting but not necessarily scientific. It does make me wonder why color coding doesn’t happen in app groupings UI specs

    Technology

    No, Really, the PC Is Dying and It’s Not Coming Back | WIRED – dramatic title, 5 per cent drop in PC sales numbers. It ignores the role of the personal computer as a business workhorse and as a creative tool

  • Ghostly sounds + more things

    Ghostly sounds

    All the ghostly sounds that are lost when you compress to mp3 – this has been quite well publicised but there is something about it that sends shivers down my spine each time I listen to the ghostly sounds.

    Culture

    Benjamin Von Wong’s superhero series of pictures are amazing

    TJ Fuller’s animated GIFs of psychedelic animals are tremendous

    Gadget

    The Apple Watch Is Time, Saved | TechCrunch – watch as context dependent screen for iPhone

    Apple Watch vs. Samsung Smartwatch: No new Gear announcement at MWC | BGR – a lot of supposition here but it was interesting that Samsung kept all the limelight for the Galaxy S6 models

    Innovation

    BBC News – Technology helps visually impaired navigate the Tube – interesting where 2.0 project on the London Underground

    Japan

    A History Of Gundam, The Anime That Defined The Giant Robot Revolution – as if this needs any explanation. More Japan related content here.

    Marketing

    Wednesday. Hump Day. Peak of the week. – hump day promotion great way to bury the competition by O2

    StateOfPR – Research report – the key take out in the stateofpr research report for me was the stagnation in budgets, however this maybe due to the CIPR membership skewed towards NFP and public sector

    Media

    David Shing’s vision of a world united by tech: Media360Summit – Campaign Asia – the sixth biggest contributor to stress is media overload

    Online

    Adult content policy on Blogger – Blogger Help – Google looks to clean up Blogger which has become a bit of a spam nest. More related content here.

    Retailing

    Why has ASOS removed its guest checkout option? | Econsultancy – they must have data to back this up surely? Or they don’t value drive by custom? More related content here.

    Security

    When Strong Encryption Isn’t Enough to Protect Our Privacy | Alternet  – much of this is because the information about the communication is useful in itself. It provides the typography of networks, the nature of the communication. Frequency of communications indicates the relative strength of communication. Strong encryption is like an envelope, but the stamp, the address, the colour of the envelope, the way the address is written, the franking over the stamp and the return address all provide useful information. 

    Edward Snowden Citizenfour: The former contractor sparked a movement that’s winning the surveillance argument. | Slate – interesting analysis of the dynamics of the US privacy movement. Thi is going to have legs. The only thing that surprises me however, is that other people are surprised. It is a natural extension of the ECHELON network of the late 1990s.