Ged Carroll

Category: web of no web | 無處不在的技術 | 보급 기술 | 普及したテクノロジー

The web of no web came out of a course that I taught at the La Salle School of Business at the University Ramon Llull in Barcelona on interactive media to a bunch of Spanish executive MBA students. The university wanted an expert from industry and they happened to find me by happenstance. I remember contact was made via LinkedIn.

I spent a couple of weeks putting together a course. But I didn’t find material that covered many of things that I thought were important and happening around us. They had been percolating around the back of my mind at the time as I saw connections between a number of technologies that were fostering a new direction. Terms like web 2.0 and where 2.0 covered contributing factors, but were too silo-ed

So far people’s online experience had been mediated through a web browser or an email client. But that was changing, VR wasn’t successful at the time but it was interesting. More importantly the real world and the online world were coming together. We had:

  • Mobile connectivity and wi-fi
  • QRcodes
  • SMS to Twitter publishing at the time
  • You could phone up Google to do searches (in the US)
  • Digital integration in geocaching as a hobby
  • The Nintendo Wii controller allowed us to interact with media in new ways
  • Shazam would listen to music and tell you what song it was
  • Where 2.0: Flickr maps, Nokia maps, Yahoo!’s Fireeagle and Dopplr – integrated location with online
  • Smartphones seemed to have moved beyond business users

Charlene Li described the future of social networks as ‘being like air’, being all around us. So I wrapped up all in an idea called web of no web. I was heavily influenced by Bruce Lee’s description of jeet kune do – ‘using way as no way’ and ‘having no limitation as limitation’. That’s where the terminology that I used came from. This seemed to chime with the ideas that I was seeing and tried to capture.

  • App constellations 2018 research

    I initially looked at app constellations back in 2014, when Fred Wilson put a name to the the phenomena. And every two years or so I have gone back and looked at a number of major internet companies to see how many different types of apps that they had in play.

    I originally selected the companies back in 2014 because I felt that they represented the largest and best of their ilk. It skews Asian because the west can be viewed as one eco-system represented by Google, Facebook and Microsoft.

    China is an enclosed eco-system; though Microsoft is actively engaged in the app eco-system there. I chose Tencent and NetEase as being my Chinese bellwethers. DaumKakao and Naver were representative of the Korean eco-system which blends highly-used domestic services with western platforms. Finally LINE of Japan (a subsidiary of Korean company Naver) provided a similar bellwether of the hybrid Japanese eco-system which mirrors Korea.

    App constellations survey methodology

    For the sake of convenience I have compared the contents of Apple’s mobile app store for each of the companies. While most of the internet companies have some Android-only or iOS-only apps; the iOS app store is still a good indicator of their app activity.

    I stayed true to the definition of app constellations in terms of deciding what kind of app should go in.

    App constellation definition

    I manually assessed each app, rather than relying on the category that the app had been submitted into. Tencent and Netease, had a number of mobile utilities that aided discussion and kept players updated on their favourite game. These didn’t fit within the definition.

    Changes in the environment

    Since 2016, a couple of things have changed:

    • Apple had a purge of apps that didn’t support 64 bit processing
    • They moved away from supporting the app store within iTunes application and on the web; to within the app store on the device

    2018 marks over a decade of mobile apps in the Apple store. Many of the major players have delisted almost as many Android and iOS apps as they currently have in the store. This happens for a number of reasons:

    • The app was serving a purpose for a fixed time
    • It is an application that has fallen so far out of favour that it is no longer worth maintaining
    • The code base no longer meets Apple’s or Google’s minimum standards
    Data analysis

    I started off by looking at the number of apps. In terms of app constellations:  Tencent, Microsoft and Google were clear winners.

    Number of apps

    Both Microsoft and Google’s growth has been driven by ‘experimental’ apps that they have put out in the public for their own reasons and enterprise focused apps.

    compound annual growth in app number

    But it was quickly apparent to me that the number of apps developed were only part of the story. What about the rate of change in numbers of apps developed? This would be indicative of the rate of change in moving to mobile. Here both Facebook and Microsoft’s pivot became immediately apparent. The Asian companies looked less impressive as they had been able to keep steady in their focus on mobile.

    All of this growth in the number of apps developed by major internet companies is all the more remarkable when you consider the following:

    • In mature markets consumers are not really downloading new apps
    • They are sticking with a few in terms of regular usage. Many of the apps on their phones don’t get used
    Notes on a few of the companies in terms of their app constellations
    • Daum Kakao – notable for being the only company who I looked at who had a decline in the number of applications versus 2016. A lot of this seems to be in service consolidation of both Daum and Kakao to remove duplications or non-core services. It is the Daum brand that has taken the biggest impact. This is understandable, since Daum struggled on the move to smartphones and Kakao is a mobile-first brand.
    • Dropbox – the growth in apps has been down to the larger business acquisition strategy at Dropbox. I don’t expect further growth like what we have seen with  Facebook’s pivot to mobile
    • Facebook – Facebook’s pivot to mobile was one of the reason why I decided to look at compound annual growth rate as well as the size of app constellation in terms of app numbers. In terms of raw app ‘SKUs’ Facebook is dwarfed by most of the other companies that I have looked at. It is only by looking at the growth in apps developed where one can really see their move to mobile
    • Netease – was interesting for its focus in a couple of areas. Like other Asian internet companies, education was a big target area, but Netease went into it with major commitment. Both NetEase and Tencent were big in magazine and book apps as well. I think this is down to the fact that ‘traditional’ web surfing is harder to do with (at the moment) when URLs are written in western script and numbers.
    • Tencent – the raw app numbers beggars belief. There are a number of reasons for this. Like NetEase, Tencent has a lot of apps solely optimised for the iPad and a separate iPhone app. There are free and paid-for product variants. Lastly Tencent will have four or five apps competing in a given category like streaming music which seems insane. Only time will tell if Tencent is spreading itself too thin; like when Yahoo! was described Brad Garlinghouse’s Peanut Butter Manifesto
    More information

    Jargon watch: app constellation – back in 2014 when I wrote this post, it still took me the best part of a week to research and describe each of the apps in the main eco-systems. It would take me much longer today due to the growth in apps

    Peanut Buttergate – analysis of Garlinghouse’s original memo about Yahoo! from back in 2006

  • Voice activated coupon + more news

    Voice activated coupon

    Google’s First Voice Activated Coupon – WPP – Google distributed its first voice-activated coupon offering customers $15 off Target purchases placed on Google Express through Google Assistant –through desktop, mobile or Google Assistant enabled devices – I am surprised that Amazon didn’t introduce the voice activated coupon before Google.

    Beauty

    SK-II finds success in selling to younger Chinese: P&G | Advertising | Campaign Asia – luxury brand with an on ramp for college students

    China

    China Bans Online Bible Sales as It Tightens Religious Controls – The New York Times – I am concerned about Vatican appeasement of China. It looks like Neville Chamberlain

    Consumer behaviour

    Headline from China: Purchase Restriction and Red Streetwear | Jing Daily – interesting how streetwear brands are being cleared out of the way by the Chinese government to support Chinese originated brands

    How Americans Self-Sort Themselves by Age and Class – CityLab

    Culture

    The Overwhelming Emotion of Hearing Toto’s “Africa” Remixed to Sound Like It’s Playing in an Empty Mall | The New Yorker

    Molly Ringwald Revisits “The Breakfast Club” in the Age of #MeToo | The New Yorker – good read, what I remember is how those films nailed emotion

    Japan

    Japan to place accident liability on self-driving car owners – Nikkei Asian Review – makers liable only in case of a system flaw

    Online

    China’s Didi Chuxing prepares to launch Mexico operations | HKEJ Insights – China going global

    RSS is undead | Techcrunch – no RSS is alive, but Techcrunch haven’t worked out issues the RSS users have already. Much of the issues are solved by using NewsBlur and finding sources is organic rather than an instant end state. More online related topics here.

    Security

    Could Cambridge Analytica boss be probed for Philippine meddling? | SCMP  – This could get interesting. Putting aside arguments about whether Cambridge Analytica’s technology actually works as promised, Philippines law would still have been broken. It forbids all outside parties from participating in its election process.It is alleged that they were supporting Duterte, which would make the foreign reaction to it interesting as well.

    Technology

    ARM Mac: Piece of Cake Or Gas Refinery? – Monday Note – assumes that there will be a transition, which I am not convinced about

    API and Other Platform Product Changes – Facebook for Developers – reduces information that can be taken out to beef up privacy

    Wireless

    Smartphone shipments fall again in Q1 | Shanghai Daily – China looks saturated in terms of smartphones

    Cell Spotting: Studying the Role of Cellular Networks in the Internet by Rula, Bustamante and Steiner – (PDF)

  • Discussion on voice interfaces and services

    Interesting discussion on the use of voice interfaces and services. There is a certain amount of cheerleading involved in the talk; but that is to be expected with vendors in the room. If found it interesting that one of the panelists; Sam Liang of AISense moved out of where2.0 services and into voice. because location is a great gateway to lots of rich contextual information and voice is desperately in need of context and by extension user intent.

    It is interesting to get a perspective on the organisations involved in the discussion on voice interfaces:

    • SRI International
    • Amazon
    • Microsoft
    • AISense

    All of them seem to be well behind where the telecoms voice services managed to get to like Orange’s Wildfire.

    Key takeouts from this:

    • 50,000,000 voice devices to ship this year (2018). A total installed user base of 100,000,000 (presumably excluding voice interfaces on smartphones)
    • AISense is looking to build in voice biometrics that would prompt you about who a person is. Privacy implications are profound
    • The panel struggled to articulate an answer to privacy concerns beyond ‘services need to build trust’ and transparency
    • Information security and hacking wasn’t a point of discussion; which surprised me a lot
    • Context still seems to be a huge issue, I think that this is a bigger issue than the panelists acknowledge. Google still struggles on user intent, without adding the additional layer of understanding voice. The biggest moves seem to be ‘social engineering’ hacks, rather than improvements in technology
    • Amazon and Microsoft don’t have plans for advertising services on voice (at the moment)
    • We’re very far away from general purpose voice services
    • Work has only started on trying to understand emotion
    More information
    • Orange’s Wildfire and The Register on its shutdown. Wildfire’s problem seemed to be a failure of marketing more than anything else. We haven’t seen anything else like it. Even Siri is only scraping over the ashes of the work done on Wildfire 15 years ago
    • Google’s published research on speech processing. What becomes apparent from looking at the list of research is how basic the current state-of-the-art currently is
    • Stuff that I have written that touch on context dependent services

  • Swiss watch industry & other things

    Swiss watch industry

    Is Time Running Out for the Swiss Watch Industry? – WSJ – low-end part of the Swiss Watch Industry threatened by digital disruption but not the higher end. The status of higher end brands of the Swiss Watch Industry will fit in with aspirations and drop culture that has merged streetwear and luxury

    Business

    Positive acceptance: a reinterpretation of Japanese ‘millennials’ | Analysis | Campaign Asia – 78% are disinclined to save money, meaning big-ticket items like houses, cars or even holidays are low on the agenda. While young people have rarely ever been enthusiastic savers, Harris suggested this could be an unconscious effort to resist “inevitable life changes that they don’t necessarily want”—i.e. responsibilities that make them less flexible.

    Qualcomm Replaces Chairman Jacobs with Independent Director – Barron’s – interesting move

    Inspiration

    Tablet Magazine’s 100 Most Jewish Foods List – via our Matt – just beautiful

    C L A S S I C Typeface By Particle (Gao Yang) | THEINSPIRATION.COM – really nice idea. More related content here.

    Marketing

    Royal Bank of Scotland CMO David Wheldon: More marketing will go in-house – Digiday – I’m not sure there was ever a bygone era when agencies enjoyed a great relationship with the top of the house, but what the consultants have now is the C-suite relationships, a deep understanding of technology and a deep understanding of the digitization of our services. It’s not too much of a leap for them to think they can help with the advertising part of that mix

    All LinkedIn Members | LinkedIn Help – LinkedIn assets relating to GDPR

    Get On This Soapbox | The Daily | L2 – the case for tactical (but not necessarily realtime) social

    Luxury

    The Number of Counterfeits Seized in the U.S. Grew by Almost 10% Last Year — The Fashion Law  – “The merchandise category with the highest number of seizures continued to be apparel and accessories, resulting in approximately 15 percent of all seizures in FY2017.” These products included both trademark infringing and counterfeit luxury products, including those posing as Louis Vuitton, Gucci, Chanel, and Hermes, are routinely some of the most heavily copied

    Online

    “I’m Quitting Social Media”: Will We See a Shift in Platform Use in 2018? | Brandwatch – Twitter and Snapchat are disproportionally large in comparison to their adoption

    Web of no web

    US Army’s SNES M.A.C.S Rifle Training Program – The Firearm Blog – surreal. Call of Duty takes on a whole darker turn

  • Chinese smartphone eco-system for beginners

    Ok this isn’t the most technical video in terms of its review of the Chinese  smartphone eco-system and it doesn’t touch on the WeChat eco-system, but its a good introductory video for westerners by Winston Sterzel, a YouTuber living in Shenzhen. It focuses on only the top domestic Chinese smartphone brands.

    If I was looking to explain Chinese smartphone dynamics to a western client, this video is as good an introduction as any to the hardware side of the business.

    Here are the key points I’d highlight and additional comments that I would add to the film.

    Mobility in the working population drove Chinese smartphone adoption

    The transitory nature of the Chinese workforce following China’s opening up has mean’t that many people are migrants and many only return home once a year (for lunar new year) if they are lucky. Staying in touch is critical to keep families together. Secondly being migrants, having a ‘computer’ that you can carry makes more sense than a traditional PC. Finally, the price point of smartphones puts the internet in the hands of pretty much anyone who wants one. These three factors explain why smartphones took off so dramatically in China. This started in the urban areas, but then migrants brought them home to relatives and gave them away as Chinese new year gifts.

    China Mobile had a government mandate to build out connectivity into even the most rural areas in China. Data packages and the applications that run on it like WeChat made telecommunications even cheaper and easier.

    The smartphone is where the majority of Chinese online shopping takes place, how families keep in touch and are starting to be a tool for the delivery of government services.

    The price-value balance of smartphones

    The development of the iPhone had an unintended on the Chinese smartphone contract manufacturers. If we go back to the early Samsung Galaxy models from the S to the S4; the industrial design of these phones owed a lot to Nokia. They had replaceable storage with micro SD cards and a replaceable battery with a battery hatch in plastic. If you dropped the phone the hatch may pop off. This was by design as it got rid of the some of the energy from the fall and the frame had a degree of flex to protect the innards. This is one of the reasons why Nokia 3310 feature phones ran and ran. The face and back might pop off your phone if you dropped it; but they could easily be snapped back on.

    Manufacturing phones of that nature also helps with scaling up manufacturing based on mouldings.

    Apple didn’t bother with external batteries, which at the time sparked a huge controversy. Their battery life was awful and most working stiffs kept their phone charging from their office PC during the day. By comparison I had a desktop charger with previous Ericsson and Nokia phones, along with a few spare batteries and felt comfortable going on holiday for a few days with a spare charged battery in a zip loc bag and no phone charger. Up until the 6 plus, Apple’s battery has been a real pain. 

    So Apple differentiated by done what seemed like an insane idea of using a CNC (computer numeric controlled) machine to make the phone chassis. This is like a robot version of the machine tools that you would have used in shop class individually making each phone chassis.

    Apple tried this out with the stainless steel ‘belly band’ of the 4 series phone and then perfected it with the 5 series. I suspect the reason why they moved from stainless steel to aluminium alloy for manufacturing was to balance durability with optimising manufacturing time.

    Over time these machines move from the Apple production lines onto another product. Soon you can’t be the smartphone chassis manufacturing business unless you have this capability. Apple’s machines may have been sold on, but there was probably an increase in the CNC machine makers manufacturing capacity as well.

    So all of the smartphones shown, whether it cost £80 or £800; none of them felt cheap or had a ‘China penalty’ in terms of case design.  This has affected the market in the Chinese smartphone eco-system. They are more durable, but there is less incentive to go premium when a cheap or medium priced phone looks and feels this good.

    The durability of modern Chinese smartphones might be one fo the reasons why sales in smartphones have declined year-on-year. I’d argue a second reason is WeChat; so long as you can use WeChat your smartphone is fine. WeChat has had a similar effect on Chinese smartphones to what the web had on western PC sales over the past two decades – computers had become about as useful as they were going to be and performance became less of an issue.

    Chinese smartphone market consolidation

    Winston kind of alluded to it in his video but Oppo, Vivo and OnePlus are all related to BBK Electronics; a longtime Chinese phone and consumer electronics manufacturer. When I first went to visit China I bought a BBK ‘keitai’ style clamshell feature phone. At that time BBK competed with international players like Nokia or Samsung and domestic brands like Ningbo Bird. (Ningbo Bird was the largest manufacturer in China from 2003 – 2005).

    Now they make everything from cheap TVs and speakers under the Memorex brand, to smartphones and high end Blu-Ray players as Oppo.

    In the smartphone sector, they operate under three main brands. OnePlus is aimed at international users and kind of similar to Xiaomi in terms of the balance that it strikes between technology, features and price. Oppo is more of a Samsung or Huawei analogue. Vivo was launched to have a lower price youthful brand.

    Between BBK, Xiaomi and Huawei you now have most of the Chinese smartphone eco-system, by value and sales volume. Just a few years ago there would have been far more players that would have merited a review including the following the companies and their sub-brands:

    • ZTE
    • Lenovo
    • Meizu
    • Coolpad
    • TCL

    These are still big businesses, and I am not denigrating these brands. The analyst reports show that the Chinese smartphone eco-system is undergoing rapid consolidation; in the same way as Sony and HTC have been dwarfed by Samsung and Huawei.