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.

  • 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.

  • Apple Spring Forward event

    Apple Spring Forward event

    I started this post a few hours after watching Tim Cook and company launch a number of product revisions  under the title of Apple Spring Forward. The most anticipated of which was the Apple Watch. I was in full Post Traumatic Apple Event Disorder mode. I have collated some of my thoughts about the event below and tried to order them into some sort of cogent narrative.
    Apple TV connections

    AppleTV

    The reduction of cost in Apple TV hardware at the Apple Spring Forward event was an interesting move. Apple has decided to go for market share rather than margin with the device and the incumbent HBO Now service might be just the catalyst to drive adoption. That Apple is leading with a HBO streaming service tends to imply that Apple has likely given up on trying to build its own ‘cable channel over IP’ offering. It does raise another interesting question about how other studios will want to handle their content in iTunes or via a an app similar to BBC iPlayer. Apple is passing on to consumers the cost benefits of using the older silicon design that powers the Apple TV. It also means that the Apple TV is the least powerful computer in Apple’s product range – including phones and tablets. The AppleTV is an egalitarian device rather a luxury brand product and a vote against widespread 4K adoption; unless the price discount is making room for a premium 4K capable device at a later date?

    Social Enterprise

    Apple’s moves at becoming a ‘social enterprise’ were interesting. For an organisation so polished at presenting itself to the outside world, the ResearchKit announcement and the case study with Christy Turlington felt awkward.  ResearchKit was delivered in a flat manner and didn’t explain how the product fitted in with Apple’s position on user privacy. Turlington’s appearance was like a particularly sycophantic Charlie Rose interview. There was a lot to talk about without having to ‘over-reach’ for celebrity endorsement.

    Apple needs to work harder picking the spokespeople to burnish its reputation, the nature of the projects and the deliver to be less cringeworthy. The very nature of the product and design story means that Apple already has a certain amount of implicit moral imperative and the company should be more in-tune with that.


    Apple Watch app
    Apple Watch

    I am deeply conflicted by a lot of the discussions around the Apple Watch, for a number reasons:

    I haven’t used an Apple Watch, but watching others use it in the demos made me think that it is fiddly and dare-I-say-it: hard to use. It could be un-Apple in nature

    Scott Galloway points to the Apple Watch and describes Apple as having transitioned to a luxury brand. The Edition watch maybe a luxury product, but not all of the Apple product range are luxurious – the AppleTV at a new price point of $69 implies ubiquity. This maybe a specific choice to get scale for the media content that other luxury Apple devices need to function. Just in the same way that quality newspapers couldn’t survive solely on sales to luxury consumers. What does this mean for those Apple customers who use the the devices as professional or creative tools?

    Much of the debate revolves around what luxury consumers want by people who can’t afford to buy the Edition version of the watch. Do the kind of luxury shoppers who wouldn’t care about a $13,000+ watch have a smartphone, or a smart person to organise their lives? An astute reader of Popbitch will soon realise that the celebrity accessory to have is a personal assistant, not a bejeweled Vertu. Secondly, not being available is a luxury as privacy and time are the preserve of the reach in an always-on world

    Many of the more positive predictions depend on the Chinese luxury market. The luxury market is changing in China. Luxury goods are used as tools in China; if you look successful, you are more likely to be successful in a culture that relies on high-touch personal relationships to facilitate business. However, consumers are becoming more sophisticated and moving away from at least some of the gaudier products. The Middle East may be a more opportune market for Apple.

    A second use case in the Chinese luxury market is that of a compact storage of value for capital flight or making a payment. The culture of payments for favours is being clamped down on my the Xi administration which has been made visible by a 20%+ drop in luxury watch sales. I don’t know the way plutocrats would likely jump on the gold Apple Watch.

    ‘Apple Watch is just an iPhone remote control‘ Craig Johnson senior analyst at Piper Jaffray – heard on Bloomberg TV. ‘Luxury watches are a store of wealth, an Apple Watch isn’t‘. Which is probably true for many people on Wall Street, but may not true for the truly rich.

    Apple MacBook

    The MacBook carried the biggest dissonance for me and was arguably the biggest disappointment of the Apple Spring Forward event. For long time Apple customers, MacBook means entry level laptop. They used to come white polycarbonate shells that matched the iMac G4 and Apple eMac. Instead the MacBook seems to reflect status:

    • A price point above the MacBook Air, but less powerful and less adaptable
    • Good battery life, but underpowered for many tasks
    • Three finishes including a gold colour that screams status in the iPhone line
    • A single port which made many of geek friends freak out with anger. The morning after one of my friends posted on Facebook about the single port: I am still angry. I use a Retina MacBook Pro at work and suffer from a lack of ports for external drives (including an optical drive), Ethernet, a secondary display and a card reader for multimedia work. The MacBook has a single port which replaces the MagSafe with a USB connection. For business users or creatives the machine is gloriously impractical and destroys their investment in things like the Apple Cinema display. I currently an Apple TV and have tried to screen-cast over Wi-Fi to it for presentations, it doesn’t like video at all. When I travel I usually present, for business users who travel regularly like me the MacBook feels like a pig-in-a-poke. Is the MacBook then decided to be a luxury consumer device?

    The trackpad which is being rolled out across other Apple laptop models looked attractive to me. The next generation of keyboard seems to be less convincing. I suspect its attractiveness will be inversely proportional to your touch typing speed due to the lack of haptic feedback from shorter key travel.  Despite the price point difference, I suspect that the MacBook is actually designed to cannibalise some Apple iPad sales as an executive toy – I don’t know whether it will.

    That’s my take on the Apple Spring Forward event, but I would be interested on your take on it.

    More information

    Post Traumatic Apple Event Disorder
    On Smart Watches, I’ve Decided To Take The Plunge
    The Watch Post
    Size Zero Design | 厌食症设计
    Questions I Have About Apple’s Business | Apple 业务挑战
    CES Trends
    Waking from an Apple Watch hangover « Observatory
    New Apple Stuff and You | The Wirecutter

  • MWC 2015 from the Sidelines: Day One

    In covering MWC 2015 yesterday I talked about the pre-event Sunday consumer product launches. These launches continued into Monday with Microsoft revealing more about Windows 10 alongside some mid-range smartphones. Sony’s press event was notable for both its style and content. Sony took a lower key approach to the show than in previous years. It hinted in interviews that this was part of a wider strategy by the company to shift Sony’s launch calendar, from being around the latest processor updates, to leading with consumer experience improvements.
    mwc day 1
    Looking at the online conversation around MWC on Monday, it unsurprisingly dominated by consumer devices. In particular hardware specifications of the devices, which shows just how much of a mountain Sony will have to climb in trying to change the event narrative away from device ‘speeds and feeds’.

    Mark Zuckerberg’s keynote at the event looked to downplay the role of internet.org rolling web access out in the developing world. In the reality his keynote was on the fault line of a chasm between telecoms providers and internet (or ‘over-the-top web’ to use Deutsche Telekom’s parlance) companies such as Google and Facebook.

    Messaging stripping away traffic from SMS, Project Loon and Internet.org have all been factors of concern. Google’s announcement that it planned to become a wireless carrier through a global set of MVNO (mobile virtual network operator) agreements hasn’t helped either. César Alierto, chief executive officer of Telefonica talked of moving the debate from net neutrality to a wider digital neutrality in order to create a level playing field for both carriers and internet companies.

    This divide between carriers and internet companies has been characterised by Bloomberg as part of a larger US/European digital divide, with large US companies having a greater market capital that they can use to buy up European rivals and push through developments in the face of carrier resistance.

    Another gap between the US and Europe was the continued importance of digital privacy at the show. Silent Circle rolled out a more polished version of the GeeksPhone-based Blackphone and a tablet companion. Finnish security company F-Secure promoted its Freedome VPN as a way of dealing with PRISM-style internet data collection.  Finnish mobile operating system company Jolla announced SailfishSecure in association with SSH Communications Security.

    Digital privacy wasn’t only a business opportunity for gadget makers, but also of concern to telco CEOs, who where concerned that a lack of consumer confidence in privacy would adversely affect business. Vodafone, Telenor, Deutsche Telekom and Telefonica all called for policy makers to provide stronger safeguards for citizens data privacy and digital security. This wasn’t solely altruistic as carriers saw a potential role to play in helping consumers securely manage their digital identity. How realistic that might be after the Gemalto data breach remains to be seen.

    Finally, the news that caused most confusion in Racepoint’s European HQ was that Ford showcase prototype MoDe electric bikes at their MWC press conference – I know we don’t get it either.

    More information
    Rory Cellan-Jones interviews Sony on whether it should walk away from mobile (BBC)
    Why Sony didn’t announce the Xperia Z4 smartphone at MWC | The Inquirer
    MWC 2015: Google Announces Wireless Carrier Plans By Becoming A ‘Mobile Virtual Network Operator’ | TechTimes
    Telcos Demand ‘Digital Neutrality’ | EETimes
    Zuckerberg in Barcelona highlights widening US-Europe gap | Bloomberg
    Security and Microsoft take center stage as Mobile World Congress 2015 opens | CNet
    Telco CEOs see urgent need for privacy, data security | TotalTelecom
    Mikko Hypponen To Talk Privacy At The Mobile World Congress | F-secure
    Ford unveils ‘MoDe’ electric bike prototypes at MWC 2015 | CNet