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  • Closing the innovation gap – Judy Estrin

    Closing The Innovation Gap is a rare breed of book. It looks with a clear eye at the subject of innovation and Silicon Valley.

    Innovation is an overused word, companies like to have it associated with their brand, products and services as it affects both the share price: covering management sins and providing investors with a veneer of hope for future growth. In a previous life, I worked at a firm where we used to talk about doing ‘innovation communications’. Where the theory went, we helped innovative companies communicate the fact that they were innovative.

    All this pre-supposed that we had a clear definition of what innovation was. From my time there, there seemed to be an assumption that all IT and biomedical related businesses were essentially innovative (unless they competed against our existing client base).

    Whereas a food business that borrowed the ‘virtual fab’ model from chipmakers in the semiconductor industry to take on big guns like Proctor & Gamble or PepsiCo wasn’t. I guess the bottom line I am trying to get across is that innovation is critically important, yet tragically misunderstood by many people.

    Judy Estrin has a genuine pedigree in innovation coming from a family of innovators. Her father worked with John von Neumann (the father of modern digital computing) at the Institute of Advanced Studies in Princeton and her mother was a professor at the computer science department of UCLA.  Judy has a Silicon Valley pedigree having had senior roles or been a board member at: Sun Microsystem (who build servers on which banks, telecoms providers and many dot.coms depended – now part of Oracle), Cisco (who pretty much are the internet infrastructure) and FedEx.

    The book addresses the challenge of innovation that we currently have.

    I have had a gut feeling about the decline in pace of innovation over the past decade or so. In a lot of respects improvements in computing have lost their sparkle, they longer feel like a leap forward, but more of the same.

    When I think about the dot com period there were meaningful improvements in telecoms hardware, web technology, software and business processes – not all of them where financially successful but things felt as if they moved forward.

    If I think about web 2.0 – the biggest single improvement was more of a software engineering improvement with a deliberate focus by the likes of 37signals and the original flickr team on avoiding feature bloat at the expense of usability.

    Facebook is an evolution from the likes of The WELL, Friendster, Friends Reunited and MySpace – rather than a true innovation.

    The iPhone whilst beautifully crafted in terms of software and hardware, increasingly reminds me of my long departed Palm Vx PDA – but with a shitty battery life.

    In Closing the innovation gap, I found the book to fall into three distinct sections:

    • Charting the origins and progress of what I will call ‘innovation entropy’ in the west. This talks about how the cold war was entwined with the rise and stall of innovative research that helped in creation of technology that we take for granted today: keyhole surgery, the internet, modern computers, cellular phones and CCDs (coupled-charged device which go into digital cameras.)
    • The economic and cultural effects of ‘innovation entropy’. In this respect Estrin echoes the work of Will Hutton’s The state we’re in published in 1996 which I read in college. Like Hutton, Estrin is a critic of short-termism in business, the financial markets, academia and government spending. Some of this short-termism was unintentional as the law of unintended consequences kicked in due to changes in regulations that were designed to encourage innovation. A secondary factor that Estrin points out is a corresponding lack of appetite for risk – or the rise of risk management which has helped cripple long-term research which begat big innovation
    • How to address ‘innovation entropy’. In Closing The Innovation Gap Estrin maps out the areas where educators, government, financiers and businesses need to change and collaborate on. This collaboration requires root-and-branch change

    Estrin’s book is powerful as she pulls together a coherent story which makes it easy to read. As a prominent person within Silicon Valley she gains access to many people who are at the head of organisations driving innovation at the present time. More related content here.

  • Influence singularity

    This post on what I am calling influence singularity (and some other trends) came from discussions whilst travelling. I have been on the road a fair bit and have speaking to a number of people coming from all aspects of communications and marketing. Speaking to these different people has covered a lot of areas but three trends stood out:

    • Influence singularity
    • Welcome to your new press spokesperson, your customer care rep
    • Inhouse vs. agency

    I have explored these trends in a bit more depth below.

    Influence singularity

    Increasingly we are seeing agencies of all ilks: PR, advertising, marketing, digital and everything in between are descending on the area of influence – creating an influence singularity. This influence manifests itself primarily through social media and digital; though it can manifest itself in experiential events like un-conferences and meet-ups. One of the best campaigns I have come across was the RNLI’s efforts to engage with young people.

    RNLI

    A social media campaign thought through and brought to life by a direct marketing agency: they saw the interaction in a similar way to the relationship between an organisation and the recipient of a direct mail piece. Instead of a purchase call to action, they provided a task to be completed. It is not only at agencies where this conflict is happening, I hear anecdotally that marketers are having PR discussions both online and offline actvities and carving it up with no PR people involved.

    The communications heads that were left out instead retreated to focus purely on corporate communications: outflanked, outgunned and out of their depth in a digital world. PR agencies where they have been involved, are often working with marketing managers as the inhouse PR people are not clued in.

    A secondary aspect of this, is that where the role is reversed and the PR department has led on social media, they are now having their efforts hijacked by marketers playing catch-up – because the marketers feel that they should be the owner, have better budgets and often have the ear of the board.

    This then begs the question: does PR the profession, its practitioners and the business need to have a rapid rebrand as a profession before it becomes roadkill?

    Welcome to the new press spokesperson: your customer care rep

    Back in 2004, I wrote a blog post about some comments that Microsoft CEO Steve Ballmer had made about iPod owners having devices full of stolen music. I dashed off a missive to Microsoft.com’s customer service form and got a response.

    At the time John Lettice, when writing about the affair in The Register said:

    We’re sure iPod owners will regard being called law-abiding by an exec from a company with Microsoft’s legal experience as a high point to end the week on. But, you ask, how the blazes did we get to this one? We have Ged Carrol’s blog to thank. Mightily offended by Ballmer’s original comments, Ged used the feedback system at microsoft.com to demand an apology, and he got one. The possibility of feedback systems of this ilk actually working had never occurred to The Register, so we’ve never bothered trying, but if you want your very own grovel, insert your outraged howls here.

    At that time, journalists didn’t think of customer care representatives as a source of comment. Six years later and with social media on tear, the customer care representative is increasingly on the frontline of reputation management.

    Some of the discussions I have been involved with has been about the interface between PR and customer services. Where is the overlap? How do you ensure efficient and effective task management between the two? The last question is being addressed with solutions from the likes of Brandwatch and Salesforce.com.

    Inhouse vs. agency

    I was discussing in-house versus agency with some people recently and one of the key points they made was that whilst agencies provide flexibility in terms of manpower and access to tools that an in-house team couldn’t justify because of cost, social media’s need for immediate and decisive responsiveness required organisations to re-address their in-house requirements and expand their current capability.  This is a great opportunity for measurement companies, other organisations that provide ‘horizontal’ services and e-lance digital communications people to interject as these considerations are being made. It may also cause some agencies to start thinking about what an agency means and how they can change the structure of their offering to ensure that they remain relevant.

  • Omake + more news

    Omake

    Omake trends: Elle Japon x American Apparel – gives away headband with magazines. Omake pronounced ‘O-ma-ke’ means incentive. They have become a monthly magazine giveaway, particularly for fashion publications like Elle Japon. There is also a second series of magazines called eMook. An e-Mook is a brand lookbook for a season. People often bought them for the product give-away, A Bathing Ape popularised this idea outside Japan and their e-Mooks are sought after. People buy e-Mooks for the giveaway item rather than the content. Increasingly that seems to be the case with Omake as well.

    China

    FT.com / Comment / Analysis – China: Futuristic yet fruitful – interesting overview of the Shanghai expo

    Consumer behaviour

    Retailers Look to Profit From Last Century’s Styles – NYTimes.com – when you can’t trust the banks, the government, businesses and authority figures what can you trust? The past.

    Culture

    YouTube – chelskifl’s Channel – the seminal Pump up the Volume documentary which has interviews with the heroes I looked up to as a house DJ. Check out part three for the HotMix5 stuff. The WBMX sets of HotMix5 blew me away and fired me up to want to DJ house music

    Design

    Innovative Mayor Sam Adams Builds a Cleaner Portland | Fast Company – interesting use of mobile so that the public an report rubbish etc

    Nokia’s designs on Apple | FT.com – interview with Marko Ahtisaari. On privacy: “The industrial logic of every single social network is that those terms of service will be renegotiated very quickly.” On interface design “All the touchscreen interfaces are very immersive. You have to put your head down. What Nokia is very good at is designing for mobile use: one-handed, in the pocket. Giving people the ability to have their head up again is critical to how we evolve user interfaces.” No comments on why the N900 and N97 are the worst of both worlds – bring back the Communicator form factor

    Ethics

    Did Microsoft Hire Consumer Watchdog to Attack Google? | Techrights – really really stupid, surprised Frank X Shaw wouldn’t stomp on this practice if it turns out to be true

    Anti-piracy enforcers claiming to represent Microsoft used to shut down dissident media in former USSR – Boing Boing – quick denials in place otherwise this could have been a Yahoo! moment for Microsoft’s corporate reputation

    FMCG

    FDA Calls Marlboro Out on Creative Marketing of “Light” Cigarettes | Fast Company – I think the FDA is a bit out of whack here, although I can see where they are coming from in terms of trying to flatten the light message, for regular smokers the cigarette will be the same, same length, taste the same.

    Japan

    Big in Japan: Millions ‘Mumble’ on Twitter – DealBook Blog – NYTimes.com – more unique users than Mixi

    Tokyo fishermen update seafood e-commerce site from their boats – Boing Boing – not surprising given that the Japanese invented JIT and lean manufacturing processes that they would extend it when the technology came available to their fishing industry

    Wired 9.09: My Own Private Tokyo – William Gibson on Tokyo

    Is it a good idea to kick those Downfall spoofs off YouTube? Perhaps not | Technology | guardian.co.uk – ironically exposes rights owners to legal issues

    Media

    France, the U.K. Take Steps Against Digital Piracy – WSJ.com

    Luxury

    Luxury market starts to evolve in China – hyperinflation for luxury lifestyles

    Online

    Yahoo wants to do what Facebook did, only slower – as the FT said: sounds familiar and unambitious

    Retailing

    FT.com / Companies / Retail – Gome reappoints ousted Bain directors – its like a tele-novella

    Security

    UK MPs call for ID cards and surveillance, but demand privacy for themselves – Boing Boing – looks like the Digital Economy Act has brought a whole pile of tech politics out of the bag

  • Made in China brand thoughts

    Made in China tends to mean cheap, and possibly nasty. But that doesn’t mean that it will always be the case. Companies like Apple go Made in China because there are manufacturing capabilities in Taiwanese owned factories that aren’t anywhere else.

    Thinking about the future of Made In China; it makes sense to go back into industrial history.

    Its hard to think now that ‘Made in Germany‘ did not stand for excellence, especially when we think about brands like Zeiss, Leica, Miele, Siemens and Daimler-Benz. But at the beginning of the 20th century ‘Made in Germany‘ stood for cheap and tasteless products.

    China is in a similar situation, despite being the workshop of the world for all intends and purposes and coming out with some of the world’s most iconic and innovative devices ‘Made in China‘ is still perceived as poor-quality and cheap. All of Apple’s products are made in China but proclaim ‘Designed by Apple in California‘. So maybe China could learn something from early-20th century Germany?

    Germany got out of its low quality reputation over a few decades (about the length of the Chinese economic miracle) by forming an organisation with a mix of members drawn from artists, designers and big industry called Deutscher Werkbund.  The Deutscher Werkbund was originally a combination of a lobby group, standards body and catalyst for good design across all disciplines. It encompassed product design, factories, typography and industrial standards. Their members did landmark work for industrial titans like AEG, Bosch and Volkswagen.

    Quality was at the centre of everything that they did. Products became sophisticated in their design. They put a lot of thought into how an identity was instilled through design into the most boring of objects.

    An unintended side-effect of the  effort of the Deutsche Werkbund was that Germany had a sound industrial infrastructure that the national socialist government took advantage of. The German government closed down the Werkbund in 1938. But it also laid the foundation of the German post-war miracle, the government reinstated the Werkbund in 1949.

    China has a government that can make things happen, the companies, the engineering talent, legions of artists and many great designers – it is just a matter of putting these groups together and giving them the permission to do something really great. More on design here.

  • Wonder Girls

    The Wonder Girls caused me to reflect on pop music as a business. We are so used to manufactured pop music artists by the likes of Tom Watkins, Stock | Aitken | Waterman and more recently Simon Fuller’s 19 Entertainment. Some of these groups like Wham, Kylie Minogue and Take That had international success. We have gotten used to the dominance of western international recording artists.

    Wonder Girls Daum

     Wonder Girls Korean fan site.

    It is this heritage that makes the Wonder Girls phenomena: a Korean girl-band managed by a Korean team getting a Billboard top 100 hit all the more remarkable.

    Wonder Girls MySpace

    Wonder Girls MySpace page

    That kind of success takes more than talent and good looks – the world music industry is littered with talented beautiful failures. The Wonder Girls are creatures of the internet age, they started off conventionally enough in South Korea and then used their South Korean fan base to spring board into the US marketplace.

    There were two parts in this story which made a great use of social media:

    You could argue that they are a part of the ongoing Korean Wave: a rise in popularity of Korean music, television and film culture which has swept Asia and started to gain popularity in the west like the Japanese film, manga and anime industries before it.

    Wonder Girls Facebook

    Wonder Girls Facebook page

    However where the group breaks rank with the Korean Wave is in the proactive targeted nature of their marketing; which is more reminiscent of aggression and entrepreneurship of the Japanese car, camera and consumer electronics industries which shook things up in the 1960s and 1970s. More related content here.