Ged Carroll

Category: ideas | 想法 | 생각 | 考える

Ideas were at the at the heart of why I started this blog. One of the first posts that I wrote there being a sweet spot in the complexity of products based on the ideas of Dan Greer. I wrote about the first online election fought by Howard Dean, which now looks like a precursor to the Obama and Trump presidential bids.

I articulated a belief I still have in the benefits of USB thumb drives as the Thumb Drive Gospel. The odd rant about IT, a reflection on the power of loose social networks, thoughts on internet freedom – an idea that that I have come back to touch on numerous times over the years as the online environment has changed.

Many of the ideas that I discussed came from books like Kim and Mauborgne’s Blue Ocean Strategy.

I was able to provide an insider perspective on Brad Garlinghouse’s infamous Peanut Butter-gate debacle. It says a lot about the lack of leadership that Garlinghouse didn’t get fired for what was a power play. Garlinghouse has gone on to become CEO of Ripple.

I built on initial thoughts by Stephen Davies on the intersection between online and public relations with a particular focus on definition to try and come up with unifying ideas.

Or why thought leadership is a less useful idea than demonstrating authority of a particular subject.

I touched on various retailing ideas including the massive expansion in private label products with grades of ‘premiumness’.

I’ve also spent a good deal of time thinking about the role of technology to separate us from the hoi polloi. But this was about active choice rather than an algorithmic filter bubble.

 

  • Virtual cockpit & things from this week

    Razorfish Berlin’s interactive brochure for Audi to promote the TT coupe’s virtual cockpit. I was reminded of an ad that Mercedes did where the phone became the rear view mirror of a car, emphasising performance. Also McDonald’s had used the mix of print and circuits with phones to create beat making place mats.

    But I find the intersection of print and digital an exciting space, even if the virtual cockpit concept doesn’t appeal to me that much.

    More related content here.

    Leo Burnett Italy created an app for P&G’s Always brand that directly addresses the insecurity women may feel in an unfamiliar area at night time; it connects them with a friend, to protect them on your way home.

    It is a smart play for the brand to maximise how it can be useful to consumers.

    Celebrity music streaming service Tidal faced critics at launch, this was probably the best of them

    I love this old video about Bell Laboratories’ complex in Holmdel, New Jersey that AT&T have put on YouTube as part of their efforts to digitise their archives. This is Silicon Valley before Silicon Valley

    At the other end of the spectrum, Ogilvy Hong Kong for Hong Kong Clean-Up produced a campaign that puts DNA analysis into an Orwellian future.

  • The Amazon Dash button post

    At the beginning of this month Amazon launched an addition to their Dash ordering hardware with the Amazon Dash button. There was a lot of incredulity amongst the media heightened by the unfortunate timing which overlapped with April’s Fool Day.

    Why the incredulity?

    I would break the cynicism down into two broad buckets:

    • The Amazon Dash button has a very singular usage / use case, narrower even the Yo! app which was a bit of a tech fad last year. Critics are at best uncertain that consumers would use them? I generally buy toilet rolls every 4-6 months, do I really need a button for that?
    • The Amazon Dash button implies that the hardware required is ridiculously cheap. How many boxes of washing powder, packets of Mac & Cheese or toilet rolls would be required for a button to break even?
    Business perspective

    Rather than ripping into this into too much depth I thought I would share Benedict Evans’ interesting hypothesis about the Amazon Dash button:

    Amazon is trying to eliminate both vendor and brand decisions, and turning itself into a utility company – get your house connected to power, water, gas and Amazon. And choosing which commodity product you need is just another piece of friction to be removed by Amazon’s kaizen

    There are some interesting directions that come out of this view point. Let’s break Benedict’s analysis down chunk-by-chunk:

    • Eliminating vendor decisions: there are two prongs to this. Firstly, it would reduce the basket size for supermarkets and also reduce impulse purchases. Let’s think about the Walmart ‘beer and diapers’ retail urban legend for a moment – if you weren’t shopping for the diapers, you aren’t likely to have picked up the beer next to it as you would have had no reason to go near those shelves. By implication it is also an attack on some of the categories carried in convenience stores. Given that the button is about ‘just-in-time’ shopping it implies that the users are not likely to have rooms in their lives for big box retailers or CostCo. The buttons are likely to aimed at urban dwellers rather than the suburbs were larger homes and larger vehicles to do the big box store shop are the norm – Sam’s Warehouse is safer than Walmart in this scenario
    • Eliminate brand decisions: since sales are diverted from supermarkets this also affects their private label sales, especially where they are acquired by accident as lookalikes stacked next to well-known brands. Challenger brands find that switching becomes much harder as they can’t intercept the customer at the point-of-intent through shopper marketing and the opportunity cost for the consumer gets raised due to the comparative nature of the friction in purchase.  It also begs a question about how much it affects the share price of WPP and other marketing combines who have spent big on shopper marketing acquisitions over the past few years. Do buttons offer a net gain or loss of value to them? I do know that the button puts Amazon in a much more powerful position versus vendors in terms of discount pricing to retailer and warehousing. The key to understand the power  that Amazon would bring is ‘choosing which commodity product you need…’. The very idea of a product being boiled down to a commodity buy would scare the living daylights of the average brand manager in an FMCG mega-corp
    • Turning itself into a utility: for Amazon this is about locking the consumer in via Prime to the consumer life. At the present time, logistics costs have been an increasing proportion of the cost of sales for Amazon, there must be a hope that the scale of grocery shopping will bring down the price of Prime and drive profits higher?

    There is no reason why the likes of Tesco, Ocado or Iceland couldn’t have done this. The wider Dash technology would make it easier for consumers to do grocery shopping and reduce the friction of online purchases. Instead they seem to have wanted to reduce cashier numbers inshore and focused on self-service tills. Time will tell if they made the right technological choice.

    What about the user?

    This is designed to make the consumers life easier and I can see how it makes purchase of otherwise annoying to shop for items frictionless, but it only works within reason. You can’t have a wall of buttons on the front door of your fridge freezer and just when do you press the button in the bathroom to order up more razor blades or toilet roll? What happens during the run up to Christmas when Amazon has had sub-optimal performance with regards deliveries on occasion? What is the buying frequency required to make the button habit forming, used without thinking about it, without consideration. When does the opportunity cost for the consumer tip in their favour regarding button usage?

    What I don’t have yet is a clear understanding on depth and breadth of the customer problem being solved by the Dash button.

    Product design

    The original Dash device was interesting because it represented a rejection of the broader theme of convergence where functionality is subsumed from dedicated hardware into a software layer running on a computer, via a web browser, tablet or smartphone. Instead Dash is a shopping appliance and wouldn’t look out of place in a cupboard full of Braun kit.

    The Dash button represents a further evolution of specialist hardware, a brand-specific, tactile hardware interface. It mirrors software like IFTTT’s ‘Do’ application, the Yo! messenger app and the Dimple smartphone button project.

    For non-food products like toilet rolls that come in a plastic bale that is quickly discarded, there may not be a barcode to scan in on your Dash device. Instead you would have to ask for a new pack of Charmin’ or more Mach3 razors. Processing each voice message is expensive, which makes the opportunity cost around creating dedicated buttons for certain classes of product much more attractive. Amazon first and foremost is a data-driven company, they will know which product categories that they want to have buttons for. However, what makes on an Excel spreadsheet doesn’t always make sense to the consumer…

    More information

    Amazon Dash button
    Benedict Evans newsletter edition 106
    Investing in smart logistics | Fidelity Worldwide Investments
    Amazon, in Threat to UPS, Tries Its Own Deliveries | WSJ (paywall)
    Supply Chain News: A 360-Degree View of E-Fulfillment Part 1 | Supply Chain Digest
    Amazon joins numerous startups in building delivery networks to disrupt Fedex and UPS. | DataFox
    The Amazon Dash post
    Dimple smartphone button project | Indiegogo
    SpinVox: the shocking allegations in full | The Kernel

  • Apple Spring Forward event

    Apple Spring Forward event

    I started this post a few hours after watching Tim Cook and company launch a number of product revisions  under the title of Apple Spring Forward. The most anticipated of which was the Apple Watch. I was in full Post Traumatic Apple Event Disorder mode. I have collated some of my thoughts about the event below and tried to order them into some sort of cogent narrative.
    Apple TV connections

    AppleTV

    The reduction of cost in Apple TV hardware at the Apple Spring Forward event was an interesting move. Apple has decided to go for market share rather than margin with the device and the incumbent HBO Now service might be just the catalyst to drive adoption. That Apple is leading with a HBO streaming service tends to imply that Apple has likely given up on trying to build its own ‘cable channel over IP’ offering. It does raise another interesting question about how other studios will want to handle their content in iTunes or via a an app similar to BBC iPlayer. Apple is passing on to consumers the cost benefits of using the older silicon design that powers the Apple TV. It also means that the Apple TV is the least powerful computer in Apple’s product range – including phones and tablets. The AppleTV is an egalitarian device rather a luxury brand product and a vote against widespread 4K adoption; unless the price discount is making room for a premium 4K capable device at a later date?

    Social Enterprise

    Apple’s moves at becoming a ‘social enterprise’ were interesting. For an organisation so polished at presenting itself to the outside world, the ResearchKit announcement and the case study with Christy Turlington felt awkward.  ResearchKit was delivered in a flat manner and didn’t explain how the product fitted in with Apple’s position on user privacy. Turlington’s appearance was like a particularly sycophantic Charlie Rose interview. There was a lot to talk about without having to ‘over-reach’ for celebrity endorsement.

    Apple needs to work harder picking the spokespeople to burnish its reputation, the nature of the projects and the deliver to be less cringeworthy. The very nature of the product and design story means that Apple already has a certain amount of implicit moral imperative and the company should be more in-tune with that.


    Apple Watch app
    Apple Watch

    I am deeply conflicted by a lot of the discussions around the Apple Watch, for a number reasons:

    I haven’t used an Apple Watch, but watching others use it in the demos made me think that it is fiddly and dare-I-say-it: hard to use. It could be un-Apple in nature

    Scott Galloway points to the Apple Watch and describes Apple as having transitioned to a luxury brand. The Edition watch maybe a luxury product, but not all of the Apple product range are luxurious – the AppleTV at a new price point of $69 implies ubiquity. This maybe a specific choice to get scale for the media content that other luxury Apple devices need to function. Just in the same way that quality newspapers couldn’t survive solely on sales to luxury consumers. What does this mean for those Apple customers who use the the devices as professional or creative tools?

    Much of the debate revolves around what luxury consumers want by people who can’t afford to buy the Edition version of the watch. Do the kind of luxury shoppers who wouldn’t care about a $13,000+ watch have a smartphone, or a smart person to organise their lives? An astute reader of Popbitch will soon realise that the celebrity accessory to have is a personal assistant, not a bejeweled Vertu. Secondly, not being available is a luxury as privacy and time are the preserve of the reach in an always-on world

    Many of the more positive predictions depend on the Chinese luxury market. The luxury market is changing in China. Luxury goods are used as tools in China; if you look successful, you are more likely to be successful in a culture that relies on high-touch personal relationships to facilitate business. However, consumers are becoming more sophisticated and moving away from at least some of the gaudier products. The Middle East may be a more opportune market for Apple.

    A second use case in the Chinese luxury market is that of a compact storage of value for capital flight or making a payment. The culture of payments for favours is being clamped down on my the Xi administration which has been made visible by a 20%+ drop in luxury watch sales. I don’t know the way plutocrats would likely jump on the gold Apple Watch.

    ‘Apple Watch is just an iPhone remote control‘ Craig Johnson senior analyst at Piper Jaffray – heard on Bloomberg TV. ‘Luxury watches are a store of wealth, an Apple Watch isn’t‘. Which is probably true for many people on Wall Street, but may not true for the truly rich.

    Apple MacBook

    The MacBook carried the biggest dissonance for me and was arguably the biggest disappointment of the Apple Spring Forward event. For long time Apple customers, MacBook means entry level laptop. They used to come white polycarbonate shells that matched the iMac G4 and Apple eMac. Instead the MacBook seems to reflect status:

    • A price point above the MacBook Air, but less powerful and less adaptable
    • Good battery life, but underpowered for many tasks
    • Three finishes including a gold colour that screams status in the iPhone line
    • A single port which made many of geek friends freak out with anger. The morning after one of my friends posted on Facebook about the single port: I am still angry. I use a Retina MacBook Pro at work and suffer from a lack of ports for external drives (including an optical drive), Ethernet, a secondary display and a card reader for multimedia work. The MacBook has a single port which replaces the MagSafe with a USB connection. For business users or creatives the machine is gloriously impractical and destroys their investment in things like the Apple Cinema display. I currently an Apple TV and have tried to screen-cast over Wi-Fi to it for presentations, it doesn’t like video at all. When I travel I usually present, for business users who travel regularly like me the MacBook feels like a pig-in-a-poke. Is the MacBook then decided to be a luxury consumer device?

    The trackpad which is being rolled out across other Apple laptop models looked attractive to me. The next generation of keyboard seems to be less convincing. I suspect its attractiveness will be inversely proportional to your touch typing speed due to the lack of haptic feedback from shorter key travel.  Despite the price point difference, I suspect that the MacBook is actually designed to cannibalise some Apple iPad sales as an executive toy – I don’t know whether it will.

    That’s my take on the Apple Spring Forward event, but I would be interested on your take on it.

    More information

    Post Traumatic Apple Event Disorder
    On Smart Watches, I’ve Decided To Take The Plunge
    The Watch Post
    Size Zero Design | 厌食症设计
    Questions I Have About Apple’s Business | Apple 业务挑战
    CES Trends
    Waking from an Apple Watch hangover « Observatory
    New Apple Stuff and You | The Wirecutter

  • Gree + more news

    Gree

    Asiajin » Gree CEO Talks To National Paper Readers By A Full-Page Ad – interesting how social businesses had to respond to accusations of preying on consumers by ‘traditional’ business. Gree is a Japanese Internet media company with headquarters in Tokyo. The name was borrowed from the idea of six degrees of separation. It runs the GREE mobile focused social network, not to be mistaken for the products of Chinese domestic appliance maker GREE. Gree focuses on mobile gaming and the sale of virtual goods to games players.

    Consumer behaviour

    China Less and Less Enamored of Social Media, Study Finds – China Real Time Report – WSJ – “Social media has penetrated into the lives of Chinese people and they now realize they are spending too much time on it,” said Sophie Shen, who led the Kantar poll, in a statement. “At the same time, they are receiving more low-quality and duplicate content.”

    Economics

    Raise Taxes on Rich to Reward True Job Creators: Nick Hanauer – Businessweek – rich people don’t create jobs, customers do

    Finance

    Former Chairman of Anglo Irish Bank Arrested – NYTimes.com

    How to

    The Behavioural Economics Guide 2014 – (pdf) – this is an area of increasing interest in social policy, marketing and advertising circles. It promises the ability to better shape consumer behaviour, which is an attractive proposition to government and marketers. Especially when combined with pursuasive computing techniques in digital media.

    Guide to keeping your social media accounts secure – (PDF) keeping social media accounts secure is now a key issue for brand protection. Yet brands still treat their website much more safely than their social channels. Keeping social media accounts secure needs to be a higher priority.

    How to Find Websites and Domains owned by a Person?

    Ideas

    Jeff Mills: The Failings Of The Future | Hypnotik – interesting to read this, especially after reading William Gibson’s latest book The Peripheral. In the book, much of the story plays out after the Jackpot – a gradual long duration series of events that herald massive human population decline

    Innovation

    Hoping Google’s Lab Is a Rainmaker – NYTimes.com – interesting the impatience. However if you go back to Google’s red herring you can’t say that they weren’t warned. More innovation related content here.

    Swatch upcoming smartwatch won’t require charging — GigaOM – It seems to charge itself via movement. Does the Swatch smartwatch  use Seiko Kenetic style power? If so the smartphone device would represent spectacular innovation in low power computing. More related posts here.

    Japan

    Asiajin » Jerry Yang’s 1999 Order Thanked By Japanese Auction Dominator Yahuoku | Asiajin – interesting how Yahoo! engineered the product to meet Japanese characteristics back in 1999 by Jerry Yang. More on Yahoo! here.

    Luxury

    Nokia to sell luxury Vertu subsidiary

    INSEAD Knowledge: Chinese Vogue

    Luxury Goods Market Surges In China [Headlines] @PSFK

    Marketing

    ‘Mustang’ More Popular Than ‘Superman,’ ‘Batman’ According to Research by SplashData | Ford Media Centre – just bad PR and a piss poor use of search data by the Ford Media Centre. Its a desperate gasp at cultural relevance

    Media

    Universal Censors Megaupload Song, Gets Branded a “Rogue Label” | TorrentFreak – IF true, this is crazy as Universal is blowing a hole in its own head from a reputational point-of-view

    Patry’s How to Fix Copyright: deftly argued, incandescent book on the evidence-free state of copyright law – Boing Boing

    Groklaw – ITC Recommends Finland and Canada Help Barnes & Noble Get Evidence from Nokia and MOSAID ~pj

    Here’s What a Twitter Follower Costs | ClickZ

    Yahoo’s Alibaba Quandary – NYTimes.com

    Online

    Facebook’s Video Views Rising, But Mostly For Discovery | paidContent – does mobile mean less engagement with Facebook?

    SOPA: Chinese Internet Users See a Familiar Face | WebProNews

    Cameron etc shamed as social media-ignorant reactionaries | TechEye

    Social networking’s salad days are ending, Forrester says – CNET News

    People Now Watch Videos Nearly 30 Percent Longer On Tablets Than Desktops | TechCrunch

    Retailing

    Data: “Coupon” Most Engaging Keyword on Facebook for Cyber Monday / Black Friday Posts | Buddy Media – says a lot about the economy

    Security

    Three of Tech’s Top CEOs to Skip Obama Cybersecurity Summit – Bloomberg Business – snub due to Snowden revelations

    Spies are putting off writers | Channel EYE – more than 75 percent of respondents in countries classified as “free,” 84 percent in “partly free” countries, and 80 percent in countries that were “not free” said that they were “very” or “somewhat” worried about government surveillance in their countries

    2012: Siri Is a Stunner, Amazon Is Amazin’ and Security Gets Spendy – AllThingsD

    I, Cringely » Blog Archive » Cloudy judgement at BAE Systems

    Federal domain seizure raises new concerns over online censorship — Engadget – smacks of incompetence or government corruption to gain favour with the media industry

    Software

    We Need to Break the Mobile Duopoly. We Need a 3rd Mobile OS | Andreessen Horowitz – there are more than three, but there seems to be barriers to adoption

    Rumor: Skype Set To Launch A Social Network To Compete With Facebook | Social Networking Watch – this seems a bit pointless to me

    Beijing cracks down on Uber and its rival taxi-hailing apps | Quartz – interesting that Didi has been declared illegal

    WebOS Lives! (Update: And HP’s Still Making Tablets)

    Technology

    The Problem with Big Data | EE Times – nice analysis of big data. More technology related content here

    Chinese chip makers want in on bank card business | WantChinaTimes – threat for Infineon and Gemalto

    Tablets Attracting Repeat Buyers, Unemployed, Says Study – Forbes – if you have an Amazon Kindle Fire tablet you’re likely to be unemployed

    Roger McNamee’s 10 Hypotheses For Technology Investing – UPDATED EDITION

    You Think Your Credit Card Bills Are High? You Should See HP’s Debt – this is insane

    Asiajin » Cookpad’s Listing To Be Transfered To The First Section – interesting story about quality content

    The Windows 8 tablet train wreck | ExtremeTech

    Web of no web

    Why I’m not impressed with your smart device | VentureBeat – interesting take on CES

    Dimensions – Adventures in the Multiverse – interesting web of no web game that melds computer imagery with the real world for game play

    Wireless

    Liveblog: Xiaomi Explains Itself To Silicon Valley | TechCrunch – contextual aspects of the OS is really interesting

    Qualcomm Cuts Outlook, Warning Its Snapdragon 810 Dropped From a Flagship Device | Re/code – likely Samsung Galaxy S6

    Huawei Bets Americans Will Want Contract-Free Phones – WSJ – I guess they are struggling to get carrier deals, is the new burner phone a smartphone and is the FCC holding up approval on HiSilicon-powered smartphones?

    How AT&T fumbled $39 billion bid to acquire T-Mobile – The Washington Post – they were scared about losing jobs in a presidential election year. More wireless related stories here.

    How many iPhones are being discarded in the US? | asymco

  • Changing definition of what social means

    What social means

    This inspiration for this post about what social means came from working with business-to-business marketing clients and prospects. Its based on thinking I’ve done over the past six months or so. Based on the experience I had talking to clients and the work that I have been doing I came up with a what I’ll describe as a working hypothesis.
    Sale

    The past Cluetrain Manifesto

    For a number of years, business and consumer social marketers have taken The Cluetrain Manifesto as their talisman. What social means was defined by a series of statements or beliefs outlined in the book. The outcome was that social media marketing was seen in terms of  re-defining the relationship between stakeholders and a business. This was around a number of values including:

    • Transparency
    • Speedy response
    • Humane
    • Resp0nsiveness

    What social means now

    What social means has changed, at least in Europe. I would put part of the change down to technological capabilities influencing the philosophy around social and the fact that business-to-business are measured exclusively on sales when they are not corporate HQ. And if they are corporate HQ for a non-US domiciled company the focus is much more quarterly results-orientated, so even the corporate social accounts are expected to carry their weight in terms of delivering regular prospective customers.

    The focus has changed:

    • Brand communities and corporate reputation have given way to performance marketing
    • Influencer programmes have given way to prospect-baiting content marketing
    • Engagement has given way to CTA (call to action) and customer path to purchase
    • Building customer loyalty has given way to purchase satisfaction

    The emphasis has moved from the brand to performance marketing, even for what would be seen to be corporate communications. The fig leaf of reputation used to protect corporate PR has been torn away in social media. A secondary aspect of this is a less tangible decline in the stock of social media or community professionals at least within the business-to-business context.

    Whilst the organisations I have been dealing with are in the early stages of thinking about marketing automation, with only a few going through the costly integration process for the likes of Eloquia or Pardot – the philosophy behind them has become the defacto view.

    I spent far too long writing this post, in between starting drafting this post and pressing publish, two of the authors (David Weinberger and Doc Searls) responsible for the Cluetrain Manifesto have updated it to reflect marketing realities online which broadly touch on areas of my hypothesis and I have included a link at the bottom.

    In the words of Bill Hicks business-to-business marketers run the risk of knowing the price of everything and the value of nothing.

    More information
    The Cluetrain Manifesto
    New Clues
    #NewClues and #VRM – Watching The Watchers