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.
Explore something new in every brief: there is a huge tension that I see in the challenge facing FMCG (fast-moving consumer goods) marketers. On the one hand they have to continue innovating as their brand media spend slowly fragments across new channels in pursuit of consumers.
Limits on the drive to explore something new
Although I think that there are limits on how much this fragmentation can happen in reality:
To explore something new in business models is expensive at a brand level, but it might make sense at a group level
Specifically direct to consumer a la Birchbox is attractive on paper and a great candidate to explore something new. It is what Scott Galloway would call a ‘rundle’: a recurring revenue bundle offering. But it only works on high value, high margin products. It won’t work for margarine
Personalised marketing is in a similar place, you need to have a certain size of the customer’s spend in order to make even database maintenance worthwhile. This also has implications for overall brand architecture. Yet digital transformation would be a key driver to explore something new
On the other hand, Zero Based Budgeting (ZBB) is now being used to bring increased accountability to marketing activity. Which fine in theory, but the advice to “explore something new in every brief” – whilst laudable, becomes harder to achieve. Unless the organisation has a ’20 percent fund’ for learning that allows that something new in each brief and the budget to capture learnings.
ZBB
The move towards ZBB implies that FMCG sectors are value industries, and recent stagnant growth largely validates that impression – businesses like Dollar Shave Club and the like are edge factors rather than core drivers. Secondly ZBB doesn’t lend itself particularly well to long term brand building because ROI is measured over a much smaller time period – leaning towards activation. More related content here.
Pipes – Yahoo! Pipes analogue, lets just hope that they haven’t captured the ‘flakey’ experience. I often remember hearing Yahoo! Pipes being compared to owning a British sports car. Instead I would prefer that Pipes provide the Mazda MX5 (Miata) experience where you get the experience but none of the broken ass crap of owning an MGB
Business
Is 2017 the beginning of the end for the app economy? TheNextWeb – not exactly the beginning of the end. More like a new normal – one thing that’s missing is the importance of building inside existing app eco-systems such as WeChat, Facebook Messenger etc. Whilst WeChat have made headway with mini-apps it will be interesting to see if Facebook can duplicate their success.
Korea
Why young South Koreans are turning away from religion | Arts & Culture | Al Jazeera – a certain amount of this turning away is geography. Korea had a mix of buddhism and Shamanism historically. Buddhist monasteries and temples were often in the mountains close to nature. Shamanism depended on closeness with nature – so again being out in the middle of nowhere. You throw in the move to cities, the break down of familial connections through distance and time poverty. More on Korean related topics here.
Does Slack allow your boss to spy on you? — Quartz – yes, but only with output rather than outcome-focused measures on productivity. It will reinforce the practices of poor managers rather than help make good managers
I got invited to The Holmes Report‘s In2 Innovation summit. This happened earlier in the day than The Sabre EMEA awards.
Here were my takeouts from the In2 Innovation summit in no particular order:
Brad Staples presentation on reputation in a fake news environment gave me deja vu. It reminded me of corporate communications thinking when social media came to prominence. In many respects the symptoms are the same. The agenda running out-of-control like a force of nature. Yet, it is only the momentum has changed, core principles to address reputation are the same. There was an increased emphasis on monitoring. Monitoring and response became even more important than with social media’s rise
The age-old tension between specialist and generalist continues to roll onwards. Alan Vandermolen saw medium-sized agencies as sitting in a ‘Goldilocks’ position. Small enough for your business to matter and being able to move fast. Large enough to have the right expertise and scale in place. The challenge to his argument is global agencies consolidating a one-stop shop offering. Vandermolen didn’t address the move away from being a ‘PR agency’. The Holmes Report had highlighted their concern in a recent opinion piece. Vandermolen was also concerned with the disappearance of PR professionals on the client side. He cited United Airways customer problems from broken guitars to dragging passengers off planes. The discussion didn’t cover how the airline’s focus on shareholder value had corrupted customer-centricity
Matt Battersby and Dan Berry looked at public relations and behavioural economics. What I found interesting is how this provided a direct linkage to return on investment. Yet the audience didn’t pick up on this in questions. It also represented a content challenge to agencies. It flips the typical messages that they would look deliver (driven by what’s news)
There was a tension between what agencies could do and what clients wanted. Abby Guthkelch wanted a more agile approach to content that was also more cost effective. This meant that she often worked with inhouse staff and content development agencies. There was a strong sense that creative ideas and concepts were not worth paying for. This puts little value in communications agencies. Content marketing poses an existential threat to PR agencies margins. It was interesting that marketing automation didn’t come up in discussions. Inhouse panelists preferred to move capability inhouse rather than relying on offshoring work
Finally, there was the evergreen theme of marketers and PRs speaking different languages. PRs need to get comfortable with data and charts. They need to think about testing. This needs to happen whilst budgets are static or in decline. A way forward is to move down the marketing funnel to be closer to the sale in e-commerce and via social channels. I found the continued faith in influencers of interest. I was surprised at the lack of concern shown on the agency side for zero-based budgeting at clients
Apple has finally found someone to support HomeKit • The Register – there have been smart home standards before HomeKit. I can also understand why there is a wider leeriness around Internet of Things due to the privacy implications, built in obsolescence and dependence on the cloud. But HomeKit does provide a more secure solution that seems to be less dependent on the cloud than Google and Amazon options out there. More related content here.
Magellan’s Hamish Douglass says Uber is a ‘Ponzi scheme’ | Sydney Morning Herald – I can see the point that Mr Douglass is making. More rose tinted observations might point to the similarity with Amazon; however even Amazon is relying on constant investment of profits from mature units in international and service expansion – Uber seems to be nowhere near breakeven
Chinese companies are working hard to overcome the copycat stigma | Quartz – actually this isn’t an overnight thing but has been going on for the best part of ten years. It is also worthwhile giving a shoutout to Naomi Wu who has been educating Chinese businesses on GPL licences and helping get compliance from companies in Shenzhen.
How He Used Facebook to Win | by Sue Halpern | The New York Review of Books – Facebook did turn out to be essential to Trump’s victory, but not in the way Grassegger, Krogerus, and Schwartz suggest. Though there is little doubt that Cambridge Analytica exploited members of the social network, Facebook’s real influence came from the campaign’s strategic and perfectly legal use of Facebook’s suite of marketing tools
Apple Begs Android Users to Switch to iPhone | Makeuseof – beg is the wrong word, but this looks like the start of an effort to promote platform switching which is another indicator of smartphone market maturity and saturation
Bring Home a Classic Synth with the DIY Fairlight CMI – using the iPad emulation app. Its amazing to think how much computing power difference between a Fairlight and the iPad. The original Fairlight used a pen-screen interface. Its technology limitations gave it a distinctive sound. It is one of the things that gave Trevor Horne productions such a big sound. It is in stark contrast to current hyper-compressed productions.
VPMZ MOLOT factory
Fascinating video from a Russian gun manufacturing line shot at at the VPMZ MOLOT factory. The foundry looks more spectacular than someone going full belt with Adobe After-Effects. The design that goes into the products to enable mass production is fascinating
Amazon
Scott Galloway on Amazon. While Galloway does hold Amazon stock, he is not backward about criticising the company. His video on how Amazon is dismantling retail, could equally apply to logistics firms like Fedex and cloud services and web hosting (notably Google Cloud). Scott has written about Amazon in more depth alongside a critique of Google, Facebook and Apple in his book The Four. More Amazon related content here.
