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.

 

  • Canada on Twitter

    Canada on twitter will be an event that will have delighted my friend and former colleague Matthias Lüfkens. Matthias founded the    Burson-Marsteller Twiplomacy project. Time spent at the World Economic Forum on social media meant that Twiplomacy has been a long time personal passion of his. The Twiplomacy looked at which countries have accounts and whom they follow and are followed by. The study isn’t exhaustive, for instance it doesn’t cover China’s wolf warrior accounts.

    Canada rolled out an official global account
    Canada on Twitter

    The first post that announced Canada on Twitter showed Canadian self depreciating humour with its ‘eh!’ ending imitating Canadian speech patterns. This account was as much aimed at Canadians as it was at generating digital soft power.

    In reality Canada has had a number of digital diplomacy accounts before aimed at specific interest groups like the European Union or Iran. But don’t let those wrinkles get in the way of a good story.

    And the internet (actually just over half of them Canadian netizens) responded back. As with most political discussions online this was a male-dominated discussion.
    1

    The conversation areas touched upon seemed to mirror the kind of issues that are currently rippling through Canadian politics: the environment, Quebec independence and care for veterans. There was a wonkish strand that talked about this accounts role in digital diplomacy for the Canadian government. Conversationalists also name-dropped well-loved Canadian brands like the Tim Hortons coffee and doughnut chain and the country’s love of ice hockey as the national sport.

    Canadian based brands took time out to welcome their country’s government on to Twitter.
    Canada

    The biggest shock for me was that the account showed blatant favouritism towards Hootsuite compared to other Canadian social monitoring companies like Sysomos. Hootsuite was the only commercial entity that the account followed in what looks like a case of casual nepotism or a default setting in Hootsuite’s management tools. If its Hootsuite’s default setting that’s a scummy way of building followers and engagement. More online related posts here.

  • 1 percent dominance + more things

    This is the proof that the 1 percent have been running the show for 800 years | Quartz – know your place serfs. Interesting long term research on the 1 percent. There is also research that shows that the descendants of Chinese landlords doing better. These would have been the pre-revolutionary 1 percent. This rise of Chinese landlords descendants occurred despite landlords being executed and their families persecuted in China during the Mao era. More economics related content here.

    Rescuing gadgets from the golden age of ‘Made in Japan’ | The Japan Times – inspiring and deeply saddening at the same time

    デザインアンダーグラウンド – ラジカセ・ヴィンテージ家電、オーディオの販売・修理 – Design Underground Factory restoring beautiful Made In Japan consumer electronics

    South Korea puts cost of reunification with North Korea at US$500 billion | South China Morning Post – and I bet it would go up from there due to corruption and security issues

    Recode Drops Comments | Recode – a blog without comments, also has implications for time on site, if I was an advertiser with them I would find this choice very curious

    Beefed up iPhone crypto will lead to a child dying, DOJ warned Apple execs | Ars Technica – the problem is that this has been discredited by experts a number of times and they keep trotting it out

    Technics To Launch FLAC Music Download Store Powered By 7Digital – hypebot – nice to see the name resurrected now about some decent pro-audio and DJ gear?

    Huawei: KRYDER STORAGE CRISIS is REAL and ‘we’re working on it’ | The Register – is the cause of Kryder’s Law shrinkage a move to SSD and lack of investment in disk science?

    Apple Releases Its Most Important Typeface In 20 Years | FastCompany – download the font, really nice

    ‘Qualcomm’s opportunities greater than challenges’ | RTHK – waiting for the second shoe to drop

    Samsung will make far fewer phones next year | GigaOM – reducing SKUs, tidying up the brand and extensions. I guess this also means less risk, innovation and the decline of their successful ‘fast failure’ model

    FB Techwire | Facebook – yet another way of wringing money out of businesses that do ‘over promotional’ posts

    Opera’s app store will replace Nokia Store on feature phones | GigaOM  – and on Symbian handsets

    Why Apple’s absurd valuation makes perfect sense | Quartz – it does seem insane to me….

  • Is PR dead?

    Before I get into the question of is PR dead, I need to make a disclosure: I am a ‘non-PR’ person working in what was until recently a PR agency, but now describes itself as an ‘integrated marketing communications agency that offers influencer identification, mapping and engagement, social and traditional media strategy and execution programmes, digital marketing and creative capabilities.
    Press Conference with Rt Rev Kieran Conry

    Executive summary of is PR dead?

    Is PR dead? It depends on how you define PR as to whether you think it is dead or not. There is a role for PR thinking and PR skill sets.

    Main post on is PR dead?

    It depends by what you define as PR. I consider PR to be the managed interface between an organisation and its publics. It can manifest itself in many ways:

      • The way it does customer service. Wong Kei restaurant in Soho was known and loved for its rude customer service. For the likes of BT or Vodafone, customer service is front line reputation management
      • It is the user experience: paper bills that are clear, correspondence that doesn’t try to bully the recipient, a website that doesn’t try to gouge charges (like Ryanair used to), architecture that adds to an area (like the glass cube of Apple’s famous New York store)
      • It is wrangling regulatory, government and investor relationships
      • There will always be a place for that interface. The people involved lubricate business and help drive growth. PR practitioners have a lot to bring to these areas. They are guardians of brand value.

    Many people consider PR to be a generator of earned media be it a parliamentary question, a broadcast interview, product placement or article.  To this has also been added earned media: corporate reports, press releases, blog posts, social content etc. This area in aggregate looks much less healthy to me.  The work that is safest in this area is where the interface is the critical part of the product: the relationships with the MPs or the key financial journalists and equity analysts and positive coverage is a secondary attribute.

    The problem with is with media being the product that the relationship with a organisation is mediated through. I usually give a Johnny Rottenesque sneer when someone name drops the attention economy. In this particular explanation, having attention and economy together in a term is useful. It is probably the most proper use of ‘attention economy’. There are so many publishers delivering messages (paid and unpaid). It is becoming much harder for the audience to to come across, find, discover and retain messages from media. There is an over-supply of content in comparison to an inelastic number of viewers. Much of the content published is of poor quality.

    The internet is only a part of the phenomena, digital has only accelerated the process.  Media fragmentation and the corresponding over-supply of content in comparison to the amount of available attention has been on us for a while:

        • Multi-channel TV – back in 1992 Bruce Springsteen wrote 57 Channels (and Nothin’ On) – hardly an academic study but it only feels more relevant now.
        • Racks of magazines – going into a WHSmith or through the Gorkana database confronts you with a sea of publications you have no idea would have existed. And I suspect the amount of magazines and other media that have gone out of publication would dwarf the number of those currently in publication
        • Record label back catalogues – before the iTunes catalogue and Amazon the total sum of records available to order from a record shop was contained in about 3  desk busting directories from the main record distributors. These books were like a few phone books put together in terms of thickness. Items regularly got deleted from circulation. With each change of format: vinyl, cassette and CD different back catalogue content didn’t make the transfer. Bit torrent was popular among people I knew because they could get ripped recordings that weren’t available in digital formats elsewhere. And yet new content keeps coming out
        • Free newspapers – my Dad loves the two free newspapers that come through the door of my parents house each week. They protect the carpet when he is painting, wrap apples from the garden that he puts into storage around about this time of year and act as packing material for the parcels that are sent back to the family in Ireland. But he doesn’t read them. The Tower Hamlets council-published paper I receive goes straight into recycling unless I have something to sell on eBay
        • Film archives: a quick glance at iMDB shows the amount of content that was created and wasn’t transferred on to laser disc, DVD, Blu-Ray or digital video files. It is a similar pattern to music libraries, yet YouTube has some 100 hours per minute being uploaded

    Psychologists have found that even small decisions around consumer choices require energy and add to fatigue. The content surplus only exasperates that psychological process.

    When we look at social platforms we see the decline in reach for a mixture of reasons:

        • Maximising revenue by encouraging brands to use advertising to put content in front of their communities
        • The sheer volume of content driving brand content out of feeds as a ‘firehouse’

    When I started in PR I often heard Elvis Costello paraphrased that ‘yesterday’s news is tomorrow’s chip paper’. But now that flow is generally much shorter. This means that there is less of a chance to get a return on investment on a given piece of PR activity. It will reach less people and relevant for a shorter time.

    There are extreme effects at the end of the bell curve. Google ‘BP rig disaster’; there are about 2,400,ooo results related to the Deepwater Horizon oil spill in the Gulf of Mexico. Look up ‘Kryptonite lock’, and on the first page you find a video about opening the lock with a Bic pen. This is some ten years after Benjamin Running’s famous video demonstration. Both brands still have their reputational crises.

    A secondary aspect of the content over-supply is the effect is had had on the media industry. Many ‘traditional’ media brands have struggled to make a profit. The Guardian is one of the most progressive publications, in terms of the future of media. The Guardian has been at the forefront of technological development and still doesn’t make a profit. It has tried to improve by getting bigger with its US online edition.

    Other publishers like News International experimented with varying degrees of success around paywall models. At the time of writing, The New Yorker has introduced a metered paywall, which is watched eagerly as the media industry still can’t agree on a successful business model. Economics have disrupted the influencers that PRs most cared about.

    The reach issue now means that we consider using advertising to gain more traffic to the best pieces of coverage that we get for some of our clients. From a marketers perspective, PR starts to look less attractive. It also means that including PR in their bag of tricks makes more sense for other marketing disciplines.

    I went to the IAB’s session during Social Media Week London. Advertising and media agencies presented back PR campaigns. These were done using social channels, promoted with varying degrees of advertising on social platforms. This PR activity was described as social media marketing or content marketing. PR becomes a small increment on the existing advertising spend. When PR agencies branch into other areas they look like a riskier risk as this often represents multiples on their previous budget.

    Chipotle and post modernism

    Finally there is the business of PR and that’s where I think it gets a bit post modern. How many PR agencies are really PR agencies any more? Richard Edelman talks about his company still being a PR agency. Yet how many clients who would think that, given the company’s flagship work for clients like the Chipotle?

    The scarecrow film was done in conjunction with Creative Artists Agency. Work like this positions Edelman much more like an advertising agency.


    In my own agency, I have colleagues that do a lot of media and blogger relations. I support their work through insights but the the bulk of my work is around media buying. From straight-up search pay-per-click ad campaigns to promoted social accounts.

    I have just finished a new business pitch, a key tenet of our big idea was for the brand to publish their own sector media outlet with a light touch of branding. This was because there was a void in their sector.

    Harmful labeling

    As you can see on the introduction to this post, we don’t even bother calling ourselves a PR agency. We have done this because that is the business reality that we have to live with. So in some respects even the PR business has given credence to supporting a viewpoint towards PR less future as an answer to the question of is PR dead?

    And I am ok with this. In some cultures, you have a ‘true’ name that you never use or give out widely. There also have a given name that used during their everyday interactions. The true name has power, a magic of its own, that can be used to harm the person. For the PR business; the true name has a negative power and many of use will shrug it off despite what professional bodies may want.

    Is it PR any more?

    Others may stumble into doing PR work and not even realise that they is the case, are they then part of the PR business? I am happy for my industry to become post-modern, for PR to become it’s secret ‘true’ name as a marketing singularity pushes agencies towards a mix of paid, earned and owned media. I am even happy with the ‘white’ lie that PR is dead because then I can just get on with what I do for a living. I can move between agencies without silos and advance my career further. Give me a shovel and I will help bury the PR business.

    More information

    The media is dying, does PR have cancer? | renaissance chambara – an old post of mine from 2009, much of what I said in it I still consider to be valid, but it now has an added sense of urgency
    YouTube Statistics
    PR isn’t dying, but PR agencies might… | Jed Hallam
    The future of PR starts with you | Stephen Waddington on LinkedIn
    The public relations industry’s confidence problem | Stephen Waddington

  • Beheadings + more things

    The Laborers Who Keep Dick Pics and Beheadings Out of Your Facebook Feed | WIRED – moderation might make up half the staffing numbers of social media sites. The materials is not only traumatic for the moderation staff, but often criminal evidence. Deleting beheadings might be disposing of war crimes evidence. As repulsive as beheadings are, they could be responsible for ensuring criminals get the justice that they deserve.

    China’s Assault on Corruption Enters the C-Suite | WSJ – could also be encouraging management to move the business out of the state sector

    HP Eyes Chinese Partner For Router Division | Young’s China Business – not convinced about the upside for Huawei given that it has already built an enterprise business

    Programmatic buying no solution without data breakthrough | Campaign Asia – data sharing a key issue

    China Mobile’s ARPU Drops While Net Profit Sinks 9.7% – voice calls and SMS down presumably due to OTT messaging services

    Daring Fireball: Retailers Are Disabling NFC to Block Apple Pay – not convinced but it is an interesting move, they think that mobile wallets give them a chance to disintermediate merchant services (bank debit card services, credit card services, charge cards)

    LG unveils Nuclun, its very own smartphone chip | The Inquirer – interesting move by LG; a stratagem to cut costs and differentiate in a commoditised Android handset marketplace. Expect the chipset to move into other consumer electronics

    Want to dance? Cabinet approves revised law easing regulations on dance clubs | Asahi Shimbun – Japan eases laws that was killing its dance music scene, probably about the Olympics in 2020. The LDP will be kill joys on nightlife in the future again

    Facebook and Yahoo Find a New Way to Save the Web’s Lost Email Addresses | WIRED – Aol should be crying out be part of this as well surely?

    The Asian Luxury Market Is Stumbling – Business Insider – Thailand and Hong Kong apparently

    footnoted* — What’s $8m to Google? – interesting article about Nikesh Arora. Is this similar to his departure from T-Mobile?

    Procter & Gamble Sets Duracell on New, Independent Course – NYTimes.com – interesting move, how will it affect Duracell distribution?

    High-tech jewellery to help you unplug | Tech blog – interesting and smart (from a design perspective) lack of ambition for the devices, context is king

    William Gibson: The Future Will View Us “As a Joke” | Mother Jones – any interview with William Gibson is a good thing

    Peak Google | stratechery by Ben Thompson – interesting article

    Apple Strengthens Pull of Its Orbit With Each Device – NYTimes.com – interesting analysis – Google is going on a similar trajectory and Microsoft has already been there for a while (paywall)

    Luxury goods: The end of ostentation | Campaign Asia – APAC markets less interested in flash luxury (paywall)

    Tod’s ignites ecommerce sales with online only handbag promotion | Luxury Daily – limited edition bag rather than discounts

    Material Design Icons | Prosthetic Knowledge – Google have open sourced a pile of icons

    False and misleading? Advertising on social media in China and Hong Kong | Freshfields – great summary of the legal position (PDF)

    Quick Reply – PressRush – interesting idea for the media

    94% of Chinese shoppers research on mobile while in-store. | Resonance China – comparison numbers with other countries in Europe

    China collecting Apple iCloud data; attack coincides with launch of new iPhone | GreatFire.org – probably implemented to deal with the increased device security that the FBI is wringing their hands about

  • Silicon Valley corporate raiders

    The origins of Silicon Valley are new, even by American standards. Over the space of one life time the area below San Francisco around the Santa Clara valley went from apricot farms and orchards to urban development based around hardware (the silicon in silicon valley) and then on to campus design sites preferred by software companies.

    At the time of the PC revolution was kicking in, Silicon Valley rose to prominence in the public consciousness. This gave use the consumer side of consumer technology we live with today like iPhones and the MacBook Pro this post is written on.

    Over the space of this time, it wasn’t only the landscape that changed but the way we work and how entrepreneurship was rewarded. There were decades of unparalleled economic growth driven by companies firstly in hardware, then software and finally in networking and communications – the internet.
    Reagan_et_Thatcher
    During the early 1980s, America had Ronald Reagan as president. The manufacturing industry that had driven post-war prosperity in the country was suffering from global competition and businesses were under attack. This was the golden age of the corporate raider who destroyed businesses in the name of shareholder value. For example corporate raider Carl Icahn was considered responsible for the bankruptcy of Trans-World Airlines (TWA).

    By comparison Silicon Valley was in a spate of explosive growth. Computers and software were changing the way business operated. Spreadsheet software enabled the kind of models required for corporate raids on main street. Apple, Adobe and Aldus came up with the different components required for desktop publishing revolutionising design in the process.
    The fall of the Berlin Wall - November 1989
    The cold war ended and the Berlin Wall came down, corporate raiding ran out of steam as corporate lawyers began to construct effective barriers on behalf of besieged companies. Silicon Valley started a move away from ‘hard’ innovation to the soft innovation of gadgets, software and services. But that was fine, there where other places in the world who wanted to make the hardware components because of the jobs and wealth it created. The modern internet started to be built on Sun and Silicon Graphics servers connected with Cisco routers. The web was designed on the same Apple Macs that designed brochures.  Technology companies became media companies, retailers and super-fast courier companies. Wired magazine talked about the ‘new economy’.

    The industry was also riding on a one-time offer. Older computers that now ran the modern world had a ‘millennium’ or Y2K bug, which was a bonanza for business IT companies. A dot com bust dampened enthusiasm, cleared out some of the more egregious business models.  Out of the fire sales of Aeron chairs and Cisco Catalyst series routers paired with cheaper broadband came web 2.0 – where the web became a platform rather than just a catalogue.

    For many of the previous businesses in Silicon Valley growth slowed. Most business software looked like a solution looking for a problem. High-performance hardware could be cheaply replaced with more commodity priced boxes. Eventually for many people’s needs, hardware became a service that could be rented according to need. Business models were disrupted, sales dried up, licences weren’t renewed and advertising sales dried up.

    Enterprise software companies were hoovered up by private equity firms eager to leverage their steady cashflows to service debt from further transactions.

    Businesses like IBM and Nokia look like the TWA or Goodyear Tire and Rubber Company in the 1980s. The story of Yahoo! over the past six years looks like one corporate raider greenmail scam after another. Jerry Yang who has recently started to see his reputation rehabilitated was turned out of the company he founded by shareholders influenced by Microsoft and Carl Icahn. The subsequent replacement Carol Bartz supervised over a spectacular destruction in value at the company. Current CEO Marissa Mayer, like her peers at Apple and IBM faces constant corporate raideresque behaviour to leverage up and return money to shareholders as part of a share buyback.

    Microsoft who seemed to have used corporate raiders against its foes like Yahoo! now has activist shareholders on its board and is being forced to rejig its own business.

    Just what is going on?

    I think it it down to a confluence of different factors:

    • Technology has had a spectacular growth spurt in Silicon Valley but the growth has spread beyond the valley. Huawei is arguably one of the most important companies in telecommunications and internet infrastructure now. Just over two decades ago it was a small business selling secondhand company switchboards to the new businesses springing up in Shenzhen. Zhengfei Ren moved from selling equipment he sourced in Hong Kong to manufacturing it himself. Now the company makes everything from core network switches and submarine cables to smartphones, tablets and wearables. Shenzhen is full of companies like Huawei – some more successful than others. The most powerful names in silicon are also Asian companies TSMC and Samsung Electronics play a key role in the manufacture of non-PC style computers: phones, tablets and even televisions. It is often easier to name products that aren’t becoming ‘smart’ in some way
    • There isn’t the same willingness in the US to fund start-ups looking at smart innovation, instead the focus is on areas like social applications. Technology industry veteran Judy Estrin identified this as a key problem in her 2008 book Closing the Innovation Gap: Reigniting the Spark of Creativity in a Global Economy. There are serious technology challenges available that need to be addressed: the break down of Moore’s Law in semiconductor manufacture, commercially viable nuclear power and quantum computing to name but three
    • The technology has been demystified and is yet another industry. There isn’t that much difference between LVMH and Apple or Caterpillar and Oracle. Software as a service moved the buying decision on a number of products from the IT manager to the marketing manager or department head. Cheaper smartphones saw the rise of bring your own device (BYOD) policies. I sat in an old warehouse turned conference centre last week when Will.i.am announced off the stage that ‘Designing hardware isn’t hard, filling Wembley stadium, that’s hard’. Eco-systems from OEMs to Kickstarter have democratised and demystified technology businesses. And with this familiarity has come at least some contempt

    More information
    Closing the Innovation Gap: Reigniting the Spark of Creativity in a Global Economy
    Finding Alibaba: How Jerry Yang Made The Most Lucrative Bet In Silicon Valley History | Forbes
    Yahoo Stock Crashes As Alibaba IPOs – Business Insider
    Marissa Mayer’s day of reckoning at Yahoo is rapidly approaching | Quartz
    BlockBuster: Lyme Regis Sues Icahn, Accuses Sabotage – Barrons.com
    Carl Icahn 2.0: an icon of ’80s greed is back to shake up Silicon Valley | The Verge – 2 words: TWA, Yahoo!