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  • iPhone pragmatism

    Despite working as a digital strategist and creative thinker (whatever the hell that means) agencyside, I have a very pragmatic relationship with technology both past and present from the iPhone to my original Mac. I have had Macs since 1989, primarily because they were the closest thing I found to a computer that just worked.

    I had analogue mobile phones from my time DJing and having friends who worked in cell phone service centres. My first phone that I had to buy was digital, the mobile phone was a Motorola; mainly because One2One (now Everything Everywhere) sold a package where you paid just over 100 pounds and had a phone for 12 months, with a small amount of inbuilt local call time. At the time I used it as a more reliable version of my pager. Even back then SMS proved to be more reliable than the pager that I had used previously

    I went from Motorola to Ericsson, mostly because Ericsson handsets were really well made and then moved to Nokia when Ericsson merged its handset business with Sony. I moved from Nokia to the Apple iPhone and a Samsung feature phone for two reasons:

    • Apple had an address book that worked. My address book didn’t brick the phone. I haven’t had that bad problems with data corruption and it syncs with my computer. It has all the productivity applications I enjoyed on my Nokia phones like MetrO and QuickOffice. The iPhone also has major flaws. For instance, the browser isn’t great, but I put up with it because I can sync my bookmarks for it across from the Safari browser on my Mac. The biggest think that I miss was the Nokia keyboard and laptop layout on the Nokia E90 Communicator
    • My Samsung phone could take two SIMs which is a boon for traveling. This is something that most phone manufacturers don’t provide for markets outside the developing world

    My iPhone was also expensive, like the price of a cheap laptop kind of expensive, which means that I look at it in a different way to previous smartphones. Instead of getting rid of my phone every 18 months, I am thinking closer to three years, just like my laptop.  An additional factor  is that whilst the first iPhones were a radical leap forward,  the iPhone 4 and 4S don’t have sufficient must-have value for me to move on until my current phone dies or the next iteration of the iPhone comes out.

    Now I wouldn’t say that I am an everyman for the iPhone using population; but this has to have some effect on sales. For every iPad that Apple sells there maybe at least a few iPhone upgrades put on hold as an opportunity cost.

  • Barusch gets story wrong

    Last week I commented on a blog post by Ronald Barusch called Dealpolitik: Yahoo!’s survival plan. In his post Barusch critiques Yahoo! Inc.’s pursuit of different options for the company. Part of his critique reflected on Microsoft’s hostile takeover bid for the company three years ago:

    True, with hindsight the Yahoo board made a world-class blunder in turning down the Microsoft $33 per share bid over three years ago. But the board has to make the best of today’s situation.

    Whilst I agree with the Barusch central thesis that the company needs a new direction or possibly a new owner, and don’t have any particular sympathy for the board, I don’t think that the argument for new management at Yahoo! should centre around the Microsoft takeover bid.

    I explained in my comment to the Barusch article that whilst I didn’t have sympathy for the Yahoo! board, I also didn’t think that the whole picture of the Microsoft deal was reflected in the article. I think that there is a serious argument to be made for the Microsoft deal being a flawed structure, with a distinct possibility of it not a viable deal in the first place. There are two main strands to my thinking:

    • First of all the destruction of value meant that many Microsoft shareholders were opposed to the deal, but that doesn’t necessarily mean that it was a bad deal for all Yahoo! shareholders. (Only the ones that initially opposed the deal. Since the Microsoft deal at the time offered cash for the first 50 per cent of shares and Microsoft shares for the last 50 per cent shares. Given the state of Microsoft’s share price over the past decade or so and the state of the Microsoft online services line, cash would be preferable.)
    • The second and more important strand is that the deal had a number of antitrust roadblocks to cross. Whilst Microsoft is a bit player in the search engine advertising market, it is already a convicted monopolist in its server and tools business. This important because Yahoo! is not only a media company; but also a key contributor to a number of critical open source projects; having contributed to PHP, the Debian Linux distribution and Hadoop. Given this, the deal would have been exposed to antitrust risk in the EU. A second risk of antitrust would have come from the Japanese and Chinese markets were you have national internet champions in Softbank (majority owner of Yahoo! Japan) and Alibaba trying to escape the clutches of Yahoo! instead being acquired by Microsoft

    It was interesting that neither Microsoft, the media or Yahoo! broached the likely antitrust implications publicly at that time. Which I suspect is partly a credit to good execution by Microsoft’s corporate communications team.

    The Microsoft bid was a powerful lever that helped Microsoft secure the search deal it wanted with Yahoo!. Though Microsoft has failed to reap the full commercial gains partly because it’s AdCenter technology wasn’t as good as the Yahoo! Panama project it replaced – and neither were as good as Google’s own advertising technology.

    What should the Yahoo! board have done, and what should it do next probably has more options in it than football fans arguing over the performance of their team manager and I don’t have the definitive answer.

    But I suspect my comment may have been bounced from the Wall Street Journal Online site because it throws a spanner in the works of the Mr Barusch. His nice, neat storyline with the Microsoft deal opportunity as an inciting incident into a downward spiral of a digital greek tragedy. Mr Barusch and his colleagues don’t want the evidence to get in the way of a good story

    As an aside, it also shows how powerful storytelling is as a way to game media | public relations in favour of the PR over the journalist. People like stories, they think in stories and it makes it easier to efficiently and effectively file easy copy or blog posts.

    So if the Microsoft hostile takeover bid wasn’t the inciting incident what was?

    My own personal opinion is that spiral probably goes at least as far back as Yahoo! overpaying for its purchase of Broadcast.com – a business that had some 13.5 million USD in revenue per quarter, acquired for 5.9 billion USD in Yahoo! stock back in 1999. It was a bad deal, and it adversely affected Yahoo!’s approach to strategy, risk-taking, decision-making and speed of execution. This is likely to affected Yahoo!’s thinking on its attempted acquisition of a young Google.

    I believe that the damaged approach to strategy was a major factor in Brad Garlinghouse’s famous peanut butter memo from 2006 (though as Techcrunch summised it was also a political power-play and as I mentioned at the time, Garlinghouse was as much to blame in many respects as other senior executives.)

    Investor Paul Graham thought that Yahoo! was screwed by cultural traits baked into the organisation’s cultural DNA as far back as 1998:

    • Less interested in innovating in advertising, because this would expose customers to the reality that they were overpaying for their inventory.Yahoo! was build on brand advertising driven by reach not by targeted ads so they missed why search advertising (and a good search engine was so important)
    • Yahoo! thought of itself as a media company rather than a technology innovator; back then technology companies sold software rather than advertising, so by default they must be a media business
    • Fear of Microsoft – whilst Microsoft is a big ugly mean company now, it is nothing compared to the beast it was before the internet became mainstream and the Judge Jackson trial. Graham thought that Yahoo! tried to define itself out of the footprint of Microsoft. All of this meant that Yahoo! wasn’t a Google, Facebook or Twitter-style technical talent magnet
  • Ten books that influenced my view of the world

    I started thinking about what shaped me and came away with this list of ten books that influenced my view of the world. Even the nature of being able to read was a major mind opening experience. The world opened up from me from our neighbourhood and occasional visits to the family farm in Ireland. Starting off the ten books is a series, which is probably cheating but its my list.

    Happy Venture reading system books with Dick and Dora. My first memory of reading was about a boy named Dick and a girl named Dora. They had a pet dog called Nip and a cat called Fluff. Part of the reason why these books appeared is that I related to Dick. Although I didn’t have a sister or a cat, I did share the house with a willful yellow Labrador that would get up to similar devilment to Nip. There was something of the haiku about the sentences in the book:

    This is Dick.

    Run, Dick, run.

    Nip is a dog.

    Nip, run to Dick.

    What I didn’t know to much later is that the books were carefully crafted by a husband and wife team of Australian educationalists who had done a lot of research during the second world war on primary school learning. Fred and Eleanor Schonell’s books were the standard reading system for English pretty much everywhere outside the US. There are some who think that the US Dick and Jane books by Gray and Sharp plagarised the Happy Venture books. The Schonells also created the next stage you went on to reading the Wide Range Readers. If you want to blame anybody for this blog, Fred and Eleanor Schonell would be as good a people as any.

    Ireland: a history by Robert Kee. Growing up at the end of the 1970s was a complicated time. The world was a more chaotic place than it is now (though I realise that maybe hard to believe). My Dad believed that I needed to have a good grasp of my own history and that would allow me to drive my own path. So he got me to read this dense academic history book that was originally written to accompany Ireland: a TV history – a co-production between RTÉ & the BBC. Kee was a British journalist who’d worked on Panorama with the series producer Jeremy Isaacs. Isaacs had produced The World At War in the early 1970s and my Dad had been a fan of the series because of its thoroughness and multifaceted viewpoint. To be honest with you I dreaded reading this book at the time because it was so big and there was so many words, but my Dad’s rationale stuck with me.

    How It Works – Marshall Cavendish part works. My Dad used to read a lot whilst working shifts in the shipyard. He used to buy pulp paperbacks by the likes of Hammond Innes and Alistair McLean from a second-hand bookseller in Birkenhead market. One day he came home after being to the bookseller that lunch time. Instead of the usual couple of paperbacks was an open cardboard box under his arm and inside was a 50-volume part-work magazine published by Marshall Cavendish called How It Works. I used to dip in and out of it coming out of it with the answers to questions that I never knew I wanted to ask. The articles were generally better written and illustrated than the comparable Wikipedia article and there was a serendipity in randomly picking an issue and reading. Marshall Cavendish have re-released this at different times in different editions and with different numbers of volumes. I got rid of our box of How It Works magazines and instead managed to buy them as an encyclopedia set with much more robust bindings a few years later.

    The Hobbit by J. R. R. Tolkien. I remember being at primary school and hating having to pretend being Bilbo creeping around the dragon’s lair as some sort of half-assed drama class. I can still remember vividly the polished wooden floor feeling slippery beneath my socked feet. It was accompanied by the BBC dramatisation of the book which the school had a recording of. The recording inspired me to read Tolkien’s book despite the acting lesson trauma. The Hobbit acted as an on-ramp to the Lord Of The Rings series, I was fascinated by the intricate structure of it all: the multi-layered story that Tolkien created.

    Modern Petroleum Technology – Institute of Petroleum. I had wanted to work in the oil industry for two main reasons: at the time I was living at the top of the Mersey basin which was dominated by oil refineries and chemical plants. Whilst environmentalists may see them as monstrosities in my child eyes they were a silver and fiery cathedral. The second influence was John Wayne’s portrayal of Red Adair in Hellfighters.

    My Dad managed to borrow an old edition of Modern Petroleum Technology and I read through both volumes to help me prepare for a career in the oil industry. I eventually left the oil industry to study in marketing at university, but the experience that I gained put me in good stead for my subsequent roles.

    The Art Of War – Sun Tzu. Despite having 13 chapters, The Art of War is a slim volume and an easy read. I dip into this book every so often and have done for the past 20 years. Everything else written on strategy is layered in unnecessary window dressing. I first picked up a copy of The Art of War while I was at university. There was a bookshop in the town which sold discounted textbooks way below price. I went in there looking for marketing books to broaden my source of references and came away with my first copy of this book and Accidental Empires.

    Principles of Marketing – Philip Kotler. Doing my degree meant spending a lot of time with this book in a blue and grey Prentice Hall cover. Kotler’s work is thought to be the bible for marketers. To be honest with you, by the time I had finished my course I hated Kotler, his book sat on my shelf taunting me. It is the only book that I have burned. Reading Byron Sharp’s How Brands Grow made me realise how much of marketing at the time was based on the opinions of old white academics rather than rigorous research.

    Accidental Empires by Robert X. Cringely – I came across Accidental Empires in the library at university and it was a revelation. Mark Stephens aka Robert X. Cringely had lived and breathed Silicon Valley, working at employee number 12 at a very young Apple Computer; so he made the ideal guide to the technology industry. Unlike most books that provide a background in technology, Cringely wrote in an informal style and gave the warts and oil side to the story. The book gave me a really good primer on the technology sector which came in handy when I went to work in my first agency role for The Weber Group in their London office. Despite the fact that the book was last updated in 1997, it is still worthwhile getting a copy from your local book shop.

    Zen And The Art Of Motorcycle Maintenance – Robert M. Pirsig. I’d done and seen a lot by the time I got to college. One of the things I used to do was read a lot, especially whilst working a boring shift. I had an older friend called Mark who I had met through a summer job. He was well educated, but bummed out and used to smoke a lot of cannibis. The 9- 5 of repairing electric tools and concrete mixers gave him what we’d now call work life balance. He switched me on to ZATAOMM. On getting to college, during my final year there I spent a good deal of time sharing a house with a fellow ZATAOMM devotee. I still go back to this work and the follow-up Lila to reset my inner compass when life throws me a curve ball.

    Ogilvy on Advertising – David Ogilvy. Everything that we do whether we realise it at the time or not builds on or is a derivative of the work of people who have gone before us. Reading Ogilvy on Advertising early in my agency career brought that home as I continually saw ideas redressed and polished for new audiences. For instance, some of the posts that I have written here to do with the ethics of social media mirror the same level of respect that Ogilvy had for the audience of his advertisement campaigns.

    Those were my ten books, I hope to add to this list rather than remaining static. What ten books have influenced you? More book related content here.

    Also check out my bookshelf of non-fiction recommendations here.

  • Gucci + more news

    Gucci

    Shenzhen sweatshop allegations force Gucci to act – FT.com – PR nightmare and management FAIL for Gucci. The Gucci story is unusual in that it affects service workers. Luxury in Asia requires a certain servility of service that I find uncomfortable and the Gucci story of long oppressive days for retail staff sounds emblematic of it. That its happening in the Gucci Shenzhen store doesn’t surprise me at all

    China

    China Favors Direct Investment to Create ‘New Blood’ in Europe – WSJ

    Maersk builds LatAm “reefer” factory | FT.com – because the cost of production is growing faster in China than Latin America

    Consumer behaviour

    What Wealthy Women Really Want – WSJ

    For Their Children, Many E-Book Fans Insist on Paper – NYTimes.com – the tactile arguments for toddlers are the same reason why I prefer print books

    Culture

    Alan Moore – meet the man behind the protest mask | The Observer – it was a nice literary tail for the Guardian to loop back with Alan Moore

    Paris Review – The Art of Fiction No. 211, William Gibson – interview with the cyber punk don

    Economics

    Housing prices fall in Chinese cities – FT.com – property developers and small businesses have been suffering

    Brussels warns on risk of UK double-dip – FT.com – UK economy stagnating and government’s deficit reduction strategy isn’t working according to a European Commission report – a deep and prolonged recession complemented by continued market turmoil cannot be excluded

    The way (not) to rein in the yen – FT.com A more aggressive quantitative easing programme, targeting 10-year government bonds instead of shorter maturities, would contribute more decisively to ease the pressure on the exchange rate. More importantly, it would also stimulate the largely stagnant domestic economy (paywall)

    The Long Haul to Capitalizing on Web Trends – Digits – WSJAccording to comScore Inc., almost 62% of the ads shown on Facebook in the July through September quarter came from advertisers that are not among the top 1000 digital advertisers in the U.S.; on Yahoo Inc., just 23% come from such small advertisers. These sorts of Facebook advertisers range from nail salons marketing to people who live a particular town, to recruiters targeting employees at a specific company – going down the long tail due to targeting ability, not great on context like Google local search though

    Ideas

    Information: Be careful what you signal | The Economist

    Possibility Is Thrust of 100-Year Starship Study – NYTimes.comin 10,000 years, the speed of humans has jumped by a factor of about 10,000, from a stroll (2.6 m.p.h.) to the Apollo astronauts’ return from the Moon (26,000 m.p.h.). Reaching the nearest stars in reasonable time — decades, not centuries — would require a velocity jump of another factor of 10,000

    Innovation

    Marubeni Launches 3D Printing Service — Tech-On! – interesting that it is aimed at making precision resin dies etc

    Japan

    Japan’s #1 Mascots: Kumamon, Bary-san, and Nishiko-kun | Japan Probe – Japan seems to have mascots for everything, kind of cool actually

    Japan Today | Toshiba to close three semiconductor plants

    Korea

    South Korea’s economy: What do you do when you reach the top? | The Economist – interesting economic profile on Korea

    Luxury

    Von Furstenberg to Chinese Women: Stop Chasing Men – WSJ

    The rise of quiet luxury: Understated chic that is very, very expensive. – Slate Magazine

    China’s Menswear Market (Quietly) Booming « Jing Daily

    Luxury’s anti-social (media) brigade | FT.com – variable adoption

    Brussels finally recognises luxury | FT.com

    Luxury Second-Hand Shops Spreading Like Wildfire In China | Jing Daily

    The moral of Dior’s numbers | FT.com – Galliano story didn’t affect Dior sales

    Media

    Secret documents reveal the flimsy case for Ofcom to give into BBC’s public TV DRM demands – Boing Boing

    Technology

    HP CEO: Apple will become market leader in personal computers | MacNews

    Wireless

    Nokia’s Microsoft Phones May Not Get Traction, Analyst Says – NYTimes.com – no USP, apart from a bucketload of advertising

  • Mr Pizza in Korea

    Pizza in Korea is a unique experience compared to other countries. Pizzas in Hong Kong were generally more premium and had more of a focus on sea food. Pizza in Korea was remarkably different:

    • Packaging – unlike the UK or most other countries I have been to for that matter, pizza can come in a four-colour patterned box. Part of the reason for this is cultural, Korea like Japan puts a lot of emphasis on presentation of products from product packaging design to the fit and finish of clothing. A second reason for the quality of the packaging is intense domestic competition: in addition to food mega-corporations Dominos Korea and similar brands also has its own giant brand: Mr Pizza with 350 branches in South Korea
    Mr. Pizza
    • Product – whilst UK pizzas follow US influences at the low end of the market and faux foodie Italian accents for ‘posh’ pizzas, Korean pizza options incorporate local foods including kimchi and bulgogi on the menu. This is especially true for this brand, though foreign brands like Pizza Hut try to adapt to local tastes too.

    About the company

    Mr. Pizza was founded in 1990. They have one branch in the US, one in Vietnam, 15 in China and some 350 branches in South Korea.

    They created a mockumentary  video The true origins of pizza as a satirical viral campaign to promote their brand, (presumably internationally). It considers the dish to be a Korean national treasure. However it did touch a nerve amongst other Asian countries as it’s similarity to Korean nationalist fringes meant that some of the film’s satire was lost to the audience.

    The company looked to further differentiate itself to eat-in diners by developing a new store format and sub-brand called MIPIHAUS. The concept of MIPIHAUS is to mix an art gallery environment with their restaurant. MIPI is a contraction of Mr. Pizza and the HAUS is a reference to the Bauhaus art movement.