My interest in business or commercial activity first started when a work friend of my Mum visited our family. She brought a book on commerce which is what business studies would have been called decades earlier. I read the book and that piqued my interest.
At the end of your third year in secondary school you are allowed to pick optional classes that you will take exams in. this is supposed to be something that you’re free to chose.
I was interested in business studies (partly because my friend Joe was doing it). But the school decided that they wanted me to do physics and chemistry instead and they did the same for my advanced level exams because I had done well in the normal level ones. School had a lot to answer for, but fortunately I managed to get back on track with college.
Eventually I finally managed to do pass a foundational course at night school whilst working in industry. I used that to then help me go and study for a degree in marketing.
I work in advertising now. And had previously worked in petrochemicals, plastics and optical fibre manfacture. All of which revolve around business. That’s why you find a business section here on my blog.
Business tends to cover a wide range of sectors that catch my eye over time. Business usually covers sectors that I don’t write about that much, but that have an outside impact on wider economics. So real estate would have been on my radar during the 2008 recession.
Just when you think that Sesame Street can’t get any more awesome, you find out that they’re putting out content like this on how the characters of Sesame Street get through a storm
Jaguar Land Rover’s ‘Googly Eyes’ isn’t just a gimmick but a classic bit of human computer interaction thinking. The cars gaze passes important information to pedestrians in its ‘line-of-sight’
Hypebeast founder Kevin Ma plays blinder; offering to pick up the tab for every ticket to Hypefest.
Culture and learning shouldn’t have a price attached to it.
I will personally cover the cost of tickets to make Hypefest a free experience for all.
Over a decade ago, I began a website documenting the things we love. Next month we will be holding our very first festival @hypefest which will bring our culture to life. To celebrate this moment, I will be personally covering the cost of tickets to provide free tickets for everyone. All are welcome to come share this moment with use. Tickets available tomorrow 12PM tomorrow on hypefest.com
CHiPs ‘roller disco’ – the most Seventies bit of television ever. I’ve heard this being used as the intro track on some of Luxxury‘s mixes. It helps you get through a storm of a day with feelgood disco
Sit back and enjoy the spectacle.
Hollywood studios had to get through a storm. Television had led to declining cinema audiences. Cinemas hadn’t moved to the kind of multiplex higher comfort experience that we know now, so were closing in large amounts. Some fleapits in major cities were kept open screening badly dubbed martial arts films and pornography. It was around this time that Deep Throat, The Opening of Misty Beethoven and Behind The Green Door developed mainstream popularity.
At the time you had film stars making guest appearances on television; this gave them an invaluable boost to incomes that had dried up. The movie studio system hadn’t glommed on to blockbusters yet and was in the thrall of directors of the American New Wave. There wasn’t a lot of roles at the time for stars of the 1960s like Breakfast at Tiffany’s George Peppard. Others like Lee Van Cleef and Richard Harrison went to work in the Italian and Asian film industries.
They probably didn’t know that change was just around the corner the launch of the over budget and under-appreciated Heaven’s Gate put an end to the American New Wave.
Steven Spielberg and others brought in the rise of the blockbuster and the studio system was saved. But George Peppard never made another cinematic film; instead he lives on in the minds of many people as Hannibal Smith from the A-Team.
Finally a 1970 concert film of Miles Davis performing the title track from Bitches Brew
I started thinking about a post on innovation, after an agency meeting about a possible project. My friend Nigel Scott has been researching the venture capital industry. His ideas fired some of the thoughts in this post.
It caused me to reflect again on innovation and the way we think about it.
Innovation rewards hard work?
We are often told that innovators work really hard and strive to achieve their goals. In Where Wizards Stay Up Late – there is a description of Silicon Valley culture. Late nights by engineers and takeout food was considered one of the factors that drove the early Internet. Engineers were building new technologies as they went at break-neck speeds.
The problem is that for many jobs there is no 9-to-5 now. When I worked in agencies 12+ hour days were typical depending on the client load. Yet we weren’t pulling Cannes Lions award-winning work out of our butts.
In China, many companies now work to ‘996‘. That is 9am to 9pm, 6 days a week as core hours. This is basic a minimum requirement for engineers. Somewhere like Huawei, try to build a ‘wolf’ mentality. They work their staff much harder and they’re expected to retire at 45 – presumably physically and mentally burned out.
Working hard is a hygiene factor, technology has made it that way. Your typical Uber driver is gamed by the driver app to put in excess of 12-hours/day. Both knowledge and unskilled workers would have a similar level of time poverty.
Innovation is like buses
For long-suffering public transport users in the UK many services are compared to buses. Due to road traffic and scheduling, there would often be an overly long time for a bus to arrive. When it eventually did, there would be another two following very closely behind.
You can see a similar thing with innovation.
Whilst we’re used to thinking of John Logie Baird as the inventor of television – and Baird worked very hard on television. The reality is that television was based on a series of inventions from the middle of the 19th century onwards.
There are at least 20 different inventors who had some claim to coming up with the light bulb. But Edison did manage to create the first commercially successful bulb. British school children are taught about Joseph Swan’s carbon filament bulb. This was let down by the vacuum process in manufacturing and poor quality electricity supplies so the bulbs didn’t last very long. Swan had solved his bulb’s problem and changed the filament.
It was only at this point that Edison started his research into electric light bulbs.
More recently, I was talking to an agency about a piece of work that didn’t come off in the end. The discussion turned to a drug that was very recently launched. The problem was that although they were first to market, they weren’t the only inventors. A large rival had launched drug approvals for their product in markets were original firm hadn’t focused on for its initial approvals. Another two companies were immediately behind them and likely to drop their prices (and profit margins) to make up for later market entry.
If one thinks about the modern computer with its graphical user interface. This was created by layers and layers of innovation. Doug Engelbart, whilst working at SRI International demonstrated the following to an audience of government officials in 1968
GUI interface
Mouse pointing device
Text manipulation
Collaborative editing
Video conferencing (a la Skype)
The Xerox PARC (Palo Alto Research Center) refined Engelbart’s concepts further with a complete modern office by 1973. Steve Jobs and his team got into see it, which drove work on the Lisa and then the Macintosh. Microsoft got in and eventually came up with Windows. Microsoft also learned from building software applications for the Macintosh.
Digital Research invented their own GUI layer called GEM. GEM was demoed at Comdex in 1984; right about the time Apple launched the Macintosh. Commodore launched the Amiga in 1985 and also added multi-tasking – the ability to run two or more apps at the same time.
These are just a few examples for the sake of brevity. But the inventor slaving away in isolation to come up with something, uniquely innovative is not rooted in evidence. Yet intellectual property law gives lie to this myth. I don’t want to belittle the work done, but it is as if there is a certain amount of predestination to invention based on prior innovations.
Innovation happens
This predestination of technological progress is something that Kevin Kelly labeled the Technium. In his book What Technology Wants he posited that technological progress can be slowed, but nothing short of an apocalypse can stop it completely. Here’s what Kevin Kelly said in an interview with Edge.org when supporting the launch of What Technology Wants:
The technium is a superorganism of technology. It has its own force that it exerts. That force is part cultural (influenced by and influencing of humans), but it’s also partly non-human, partly indigenous to the physics of technology itself.
We understand the innovation process?
Nigel Scott has done some research on the historic records of venture capital companies. And a key finding was the Silicon Valley venture capital firms do a ‘random walk’ on Sandhill Road. It implies that much of the advice dispensed is survivor bias or post-rationalisation.
You hear the phrase ‘pivot’ which means changing the model to profitablity. Old time VCs used to talk about investing people or teams, which explains why research by Boston Consulting Group found that women get less funding than male entrepreneurs.
Venture capitalists have the monetary incentive and the budgets to develop a thorough understanding of innovation, yet they don’t seem to apply it successfully. Which begs the question – how much do we really understand about innovation?
Six decades into the computer revolution, four decades since the invention of the microprocessor, and two decades into the rise of the modern Internet, all of the technology required to transform industries through software finally works and can be widely delivered at global scale.
Over two billion people now use the broadband Internet, up from perhaps 50 million a decade ago, when I was at Netscape, the company I co-founded. In the next 10 years, I expect at least five billion people worldwide to own smartphones, giving every individual with such a phone instant access to the full power of the Internet, every moment of every day.
On the back end, software programming tools and Internet-based services make it easy to launch new global software-powered start-ups in many industries — without the need to invest in new infrastructure and train new employees. In 2000, when my partner Ben Horowitz was CEO of the first cloud computing company, Loudcloud, the cost of a customer running a basic Internet application was approximately $150,000 a month. Running that same application today in Amazon’s cloud costs about $1,500 a month.
As one can see Andreesen’s title is a bit of a misnomer. Software is only the front end of a technology stack that is transforming the world. That transformation started before the web, before broadband infrastructure; with the rise of integrated circuits. Machine learning is doing some impressive things, but they are part of a continuum. Machine learning in data mining is building on work done in academia in the 1980s. It is replicating work done in the 1990s on decision support systems and business intelligence software.
Even, back in the early 1990s, commercial chemical labs were using software to guide product development. Rather than having to test every combination religiously; you started inputting formulations and results. The software would then extrapulate possible combinations and narrow down on an ideal formulation much quicker.
As for machine learning in consumer products; it mirrors the late 1980s. Fuzzy logic came out of a 1965 research paper by Lofti A Zadeh at the University of California, Berkeley.
Japanese manufacturers built lifts that optimised for traffic flows of people. Microwaves that set its own timer for defrosting an item. Washing machines customised spin cycles based on the drum load. Televisions adjusted their brightness based on the ambient conditions of the room. (When similar technology was rolled out on early Intel MacBook Pro screens and keyboard lights it was billed as game changing). It removed a lot of blur from camcorder videos. All applications that are not a million miles away from smart homes and consumer technology today. They improved energy efficiency, with precise lighting, heating or cooling.
A western analysis of Japanese technology companies; usually cites their ‘defeat’ by Silicon Valley as an apparent lack of software skills. I’d argue that this lacks an understanding of Japanese software capabilities. From gaming to rock solid RTOS (real time operating systems); Japanese products met Andreesen’s software definition. The Japanese didn’t manage to sell enterprise software in the same way as Silicon Valley. It is something to bear in mind given the current glut of machine learning-orientated businesses in Silicon Valley. Does it mean that we won’t have the type of general AI applications that we’ve been promised in the future? No far from it, though a technological idea often takes several tries before it breaks through.
What becomes apparent is that software making an impact is merely the last stage of previous innovations. The problem with Andreesen’s model is that it portends what Judy Estrin described as innovation entropy.
Andreesen’s model couldn’t exist without:
Packet-switched networks – 1960 (RAND)
Unix-type operating systems – mid 1960s (MIT, AT&T Bell Labs, General Electric)
C programming language – 1972 (Unix development team)
Optical fibre networks – 1965 (Telefunken)
Internet router – 1966 (UK National Physical Laboratory)
ADSL 1988 (Bellcore)
DOCSIS 1997 (CableLabs)
So the core technologies that Andreesen’s software relied upon to eat the world was between 15 and 50 years old. It also relied on a massive overinvestment in optical fiber. The dark fiber was done as part of a telecoms boom that occurred around the same time as the dot com boom. Software isn’t eating the world, its just the cherry on top of innovation that’s gone before. More importantly, software seems to be an end point and doesn’t seem to extend the base of innovation further.
A second problem is that semiconductors phenomenal progress in integrated circuits is slowing down. Part of the problem is that more money is being dumped into disrupting the supply and demand for service industries, rather than funding start-ups who will power the next wave of underlying innovation that future software will rely on.
A couple of tweets on good strategy by Matt Holt inspired this post. Strategy and planning are considered to be disrupted by changes in the advertising industry. It often boils down to ‘ who needs strategy when you have big data / machine learning’.
Big data; isn’t good strategy. Instead it tells you retrospectively where you should have zigged rather than zagged. It doesn’t plot an overall direction. It is usually pretty reductive only focusing on sales now. It doesn’t think about future sales through building a brand and its good standing.
In marketing automation, it is focused on ‘harvesting’ from the end of the marketing funnel.
It is sacrifice. It’s about making choices and saying no
It is specific. There is a specific well-defined problem to be solved.
It is simple to explain (even if the subject matter is complex). If you’re setting a direction, the roadmap has to be clear for all stakeholders.
it has elegance. Which is a good measure of its simplicity.
It steers tactics. It provides a directional lens to the data and helps in deciding KPIs (key performance indicators) and HVAs (high value actions).
Good strategy is stubborn in the face of the shiny and new. Strategy is not a fad is a long term roadmap. The shiny and new can be a facilitator at best. At worst its a distraction.
It is saying no to excess. Keep the strategy focused on the objectives that it addresses
It has its own intrinsic quality. For more on this I recommend reading Zen and The Art of Motorcycle Maintenance to understand more about the nature (or metaphysics) of quality
Good strategy seems self evident in retrospect. It’s not just a way to solve the problem, but has been sweated out to optimise it to the point that it seems self evident in retrospect.
It is emergent, but not realtime. A strategy needs to be able to flex as conditions change. Its the direction, not an exhaustive road map.
It is not ‘big data’. Big data can be a source of insights that will help develop a strategy, but it’s not a strategy in of itself. For example the inspiration for Compare the Market’s meerkat campaign was misspellings in search data for the word market
I Invented Autocorrect. Sorry About That; You’re Welcome | WIRED – More than 10 years after the initial release of the iPhone, the state of the art now is much as it was then. Even with recent advances in AI and machine learning, the core problem remains the same: Software doesn’t understand the nuance of human communication. – autocorrect seems to have been poisoned by the data set used in its machine learning. T9 of yesteryear provides a better autocorrect experience. There is no easy fix for smartphone autocorrect woes any time soon
Johann Rupert: the man on a mission to save Europe’s artisanal skills | How To Spend It – Concurrent with his observations about the speed at which new fortunes are made are his fears about the extinction of the middle class. “I don’t know where AI and machines are going to end up. But if we as humanity are going to preserve jobs and culture, we need to be smart.” He recognises that his success is “based upon people with culture and skills. And when their livelihoods are affected by machines, we’ve got to fight back.”
The US-China Cold War is now playing out in Pakistan — Quartz India – Pakistan hopes that China and Saudi Arabia might offer the financial relief that would provide an alternative to the IMF and American pressure. Although this is not the kind of role that China wants, an IMF bailout would lead to a disclosure of the highly secretive terms of CPEC deals, leading to renegotiation or even cancellation and undermining Beijing’s geo-economic goals.
Experts Call for Transparency Around Google’s Chinese-Made Security Keys – Motherboard – I was waiting for this shoe to drop. I would make more sense to do the assembly outside China with a Taiwanese supplier. This the approach that BlackBerry used to do with its devices prior to licensing its name to TCL. Apple has to do a lot of proprietary work and inspections to keep its devices secure and there is no sign that Google has done this
Chinese bike-share group Ofo sued for alleged $10m in unpaid bills | Financial Times – Shanghai Phoenix Bicycles, an old and venerable bicycle brand in China, has petitioned a Beijing court over an unpaid supplier contract worth Rmb68m ($9.9m) with a unit of Beijing-based Ofo, according to an exchange filing by Phoenix’s parent company late on Friday.
Ofo previously faced the threat of having 3m of its bicycles immobilised due to a dispute over alleged unpaid debts to a smart-lock producer, which had threatened to “freeze” the locks if it did not receive payment. Ofo said later the dispute had been resolved.
Peak Valley? – AVC – Fred Wilson makes the defence case for Silicon Valley….
With New London Store, Stüssy Flexes Its ‘Tribe’ | News & Analysis, News Bites | BoF – Stüssy’s brand identity is built on a “tribal ethos” that extends from its inner circle to its customers. Their stores function as community hubs where young (and not so young) shoppers gather. This fosters a strong, consistent, and authentic connection with clients. Essentially, wearing a Stüssy item allows customers to feel like they’re participating in something bigger and understand the brand’s unique appeal.. – more related content here.
あなた専用のお買い物アシスタントが、ついに登場！UNIQLO IQ – UNIQLO ユニクロ – voice enabled digital shopping assistant Uniqlo IQ, more information here: How Uniqlo developed its ‘digital concierge’ voice service | Analysis | Campaign Asia – the initiative was developed through a collaboration between Party and Inamoto & Co. Campaign asked the people behind the project to explain how they did it. Rei Inamoto, founder of Inamoto & Co, said his company first presented the idea of an “AI-powered customer service engagement platform” two years ago. He said the main aim was to help Uniqlo manage inventory more efficiently, which is deceptively difficult in the retail business. “It’s a question of how you manage expectations and predict what kinds of products will be popular and sell more,” he said. IQ sits within Uniqlo’s mobile application and is also integrated into Google Assistant. It is connected to real-time store inventory data and uses text and voice interaction to help would-be customers find products to buy via the app or in the outlets closest to them. It is also designed to be used during the physical shopping process, and recommends new products based on individual searches, hourly product rankings, occasions and personal specifications such as daily horoscopes – Uniqlo IQ is a fascinating development that is Alexa before Alexa. Uniqlo has been a technology innovator in terms of consumer facing experiences and Uniqlo IQ builds on this work. It is a shame that Uniqlo IQ didn’t make it beyond the Japanese market though. More related content here.
China Properties Group Limited (PDF) via Google Drive – the money quote – 10 years ago, the U.S. printed money like crazy and exported U.S. dollars all over the world. Now, the U.S. has become a global enemy, trying to bring back the exported U.S. dollars (the U.S. dollar debt of the emerging market in the first quarter was close to 3.7 trillion) and supply chains, as well as to undermine the asset markets of other countries and the global supply chain order. No wonder the U.S. has made a lot of enemies. Fortunately, Trump does not have the same wisdom as Mao Zedong in making alliance with one while fighting another. He wants to fight the world. But to defeat the U.S. hegemony is not an easy task. The history told us that those who wanted to kick out the big brother would run the risk of being wiped out. Nevertheless, Chinese are savvy and resourceful. Deng Xiaoping said, “we should grope our way across the river, going one step at a time”. Jiang Zemin said, “keep a low profile to make a big fortune”. Han Xin demonstrated his immense ability to endure humility in order to preserve his existence for future accomplishments. Such wisdoms contributed to the creation of incredible historical achievements one after the other. Today, the U.S. is pushing the trade war to the limit. Yet, it is not easy to cripple the China model, even with Trump’s wisdom. With a looming war, there are risks as well as opportunities. Therefore, the Group’s established policies will remain unchanged. While some projects are delayed pending for the government’s new plan, the Group will always ensure that Shareholders’ benefits are well taken care of.
What I’m realizing as I try and look at this trend from outside of my own nostalgia is that this is a sign of the end of the golden era for my own generation. I can’t count how many times I sat and listened to my father talk about how different the world seemed in the first 40 years of his life. How much seemed to change during the 70s and 80s that obliterated the world that he was accustomed to growing up in the 40s and 50s. Institutions that he imagined would be around forever that had disappeared almost overnight. Soda fountains, local pharmacies, 5 & Dimes, seasonal burger or fry stands, car hops, diners, drive-ins…
Amazon is basically a virtual Toys R Us. And probably one of the biggest realizations that we as adults have to come to grips with? Kids just don’t play with toys the same way that we did 20 and 30 years ago. Video games, television and Youtube have superseded toys in a lot of households. Sure, we still buy a lot of toys for kids, but I’ve watched first-hand has nieces and nephews receive the kind of toys that I had as a kid and they just sit in their rooms collecting dust.
Old ads come back to haunt Didi Hitch following rape-murder cases | PR | Campaign Asia – The past ads are suggestive, always showing a male driver and a female passenger and using romantic analogies between car-pooling, movie-watching or trying out clothes in private fitting rooms. “Such obvious sexual hints,” remarked one online commenter. The copywriting follows suit with the images. One ad reads [translation by Campaign]: Is it really a coincidence? Oh, we met again. It’s [the Didi system] so smart. In fact, I already knew your little secret, your car is actually not on the way. But this is such a sweet show, I want to continue acting with you. – you can see why netizens think that the ads promoted instances of rape and murder
