Category: innovation | 革新 | 독창성 | 改変

Innovation, alongside disruption are two of the most overused words in business at the moment. Like obscenity, many people have their own idea of what innovation is.

Judy Estrin wrote one of the best books about the subject and describes it in terms of hard and soft innovation.

  • Hard innovation is companies like Intel or Qualcomm at the cutting edge of computer science, materials science and physics
  • Soft innovation would be companies like Facebook or Yahoo!. Companies that might create new software but didn’t really add to the corpus of innovation

Silicon Valley has moved from hard to soft innovation as it moved away from actually making things. Santa Clara country no longer deserves its Silicon Valley appellation any more than it deserved the previous ‘garden of delights’ as the apricot orchards turned into factories, office campus buildings and suburbs. It’s probably no coincidence that that expertise has moved east to Taiwan due to globalisation.

It can also be more process orientated shaking up an industry. Years ago I worked at an agency at the time of writing is now called WE Worldwide. At the time the client base was predominantly in business technology, consumer technology and pharmaceutical clients.

The company was looking to build a dedicated presence in consumer marketing. One of the business executives brings along a new business opportunity. The company made fancy crisps (chips in the American parlance). They did so using a virtual model. Having private label manufacturers make to the snacks to their recipe and specification. This went down badly with one of the agency’s founders saying ‘I don’t see what’s innovative about that’. She’d worked exclusively in the IT space and thought any software widget was an innovation. She couldn’t appreciate how this start-ups approach challenged the likes of P&G or Kraft Foods.

  • Happiness blanket & other news

    Happiness blanket

    British Airways Happiness Blanket Changes Colors To Reflect Your Mood | PSFK – the happiness blanket is a nice bit of technology meets art, less sure how it works from a research point of view as being a valid output. The measurement is actually done using sensors in a headband. The blanket provides a visual cue though fibre optic fibres woven into the front of the blanket. The happiness blanket is a great cyberpunk maguffin.

    Economics

    Startup Incubator Economics, Revisited | Excapite – are incubators part of the problem or the solution

    As China’s wages increase, so does its rich-poor gap, says study | Shanghaist – interesting challenge, explains crack down on corruption etc

    Ethics

    Data Science: What the Facebook Controversy is Really About | The Atlantic – the last Facebook emotional research link that I am going to post

    Ideas

    The Military Is About to Get New Spy Glasses – Defense One – closer to what the vision of Google Glass et al should be

    A Breakthrough in the Checkered History Of Brain Hacking – Defense One – probably a little longer for the Johnny Mnemonic-style brain implants

    Luxury

    Why Chinese luxury consumption continues to surge | Marketing Interactive – driven by e-commerce

    Marketing

    Cannes 2014: PR’s Battle For Marketing Relevance | Holmes Report – interesting debate

    The changing face of Facebook | iCrossing – handy infographic on Facebook

    5 tips for B2B social media marketing | Marketing Interactive – nice piece for agencies

    Online

    Google Discontinues Q&A Services | Google System – no Yahoo! Answers competitors

    Alibaba boss Jack Ma says he has never used Taobao or Alipay, and doesn’t plan to | Quartz – did Jack Ma use TaoBao or not?

    Facebook Still Dominates Teens’ Social Usage | Forrester Blogs – Facebook is still important for teens with 28% saying that they use it all the time

    “Buy Now” Buttons Start Appearing in Tweets. Is Twitter Shopping Here? | Re/code – Twitter follows where Weibo led

    Google shuts down Orkut | Marketing Interactive – not terribly surprising. Though with all eyes on Brazil with the World Cup and Brazil having been Orkut’s lead market there is a certain amount of irony in the timing

    Tencent’s SY Lau : Mobile First | Holmes Report – interesting interview with Tencent executive SY Lau on WeChat

    Technology

    24 million Internet-connected TV Sets Sold in China in 2013: iResearch Report – but nothing about how they are used

    Web of no web

    Smart Picture Technologies Turns Your Smartphone’s Camera into a Measuring Tape | TechnoBob – really nice idea

    Multi-touch Haptic Display Vibrates Desired Points on Screen | Nikkei TechOn – this is exciting stuff, will change interface design

  • IPSec Flaw + more things

    Expert calls for network security protocol vetting – Xinhua | English.news.cn – I don’t blame the sentiment expressed given OpenSSL vulnerability Heartbleed and IPSec flaw; however it would be good if the Chinese government contributed positively to the open source community rather than it being a one-way street. What the great unknown is how often the MSS has exploited zero day flaws in protocols in the way that the NSA used the IPSec flaw. There is also a presumption that bugs are deliberate in nature. Which makes one think about the sloppy code in Huawei products

    China denounces US tech ‘pawns’ | FT – expect huge government backlash against non Chinese brand devices, this gives them a free hand while still being within WTO guidelines

    WhatsApp usage among Baby Boomers up 60% in last 6 months | GlobalWebIndex – what little cool WhatsApp may have had is gone

    Interview with China Luxury Research Lead Emma Li | L2 ThinkTank – some interesting reading here

    STOP THE MADNESS! Samsung just unveiled a smartphone that’s bigger than some tablets | BGR – the Samsung photo says it all. BGR on phablet backlash

    How fashion geeks turned a blog into a business | Marketing Interactive – good to see my friend Virginia getting some kudos

    McDonald’s Has Unwillingly Been Pulled Into the Thai Protests | VICE News – interesting how McDonalds was appropriated against its will, something other brands should consider and plan for

    Cavium Thunder Rattles Xeon | EE Times – the challenge would be coding to use that many cores efficiently

    Why Chinese Booze Costs More Than Fine Wine at Auction – WSJ540 milliliter bottles of Moutai produced in the 1980s sold for between 60,000 yuan ($9,700) and 70,000 yuan ($11,300). That was up from between 50,000 and 60,000 yuan last year, and around 30,000 yuan at the end of 2012. – Aged Moutai does well as new bottles get cheaper

    US Firms Walk PR Tightrope As China Clamps Down | Holmes Report – the bell tolls for some of the larger US agencies in China?

    A Media Mogul, Alone on the Island | Foreign Policy – Jimmy Lai and Apple Daily. No real surprise; HSBC has an almost monopolistic position in Hong Kong anyway

  • Retro phones: the new trend?

    Retro phones take off apparently

    The South China Morning Post wrote an article about what it perceived as a rise in usage of feature or retro phones. The article cited Lëkki as an example of such handsets becoming trendy, rather like retro re-issues of Nike Air Jordans or the adidas Originals range.
    Untitled
    In reality:

    • This isn’t a new trend, UK site, Retro Fones have been going since the mid-noughties, vintagemobile.fr and Lëkki has been around since 2009 and 2010 respectively. There are have been eBay stores going even longer specialising in supporting Nokia’s 6310i for well over a decade – since retro phones nature of these models of handset worked so well for business travellers. The 6310i and related models of retro phones (6110, 6150, 6210i and 6310) had a reputation for reliability, being hard to damage and connectivity. Add to that early support for Bluetooth, iRDA and a 400+ hour battery life. Which is why Mercedes Benz included these retro phones in its S-class range until 2006. 
    • It isn’t as big as the article would make one believe, this is a small craft business at best, it would make vinyl records and print photography look like major corporate concerns in comparison
    • It does highlight a number of weak points in smartphones. The designs don’t cater for self-expression, they don’t provide a ‘switch-off’ button from their electronic lives, they aren’t perceived as being robust, their battery lives are poor, they aren’t a convenient size for everyone and their call quality leaves much to be desired
    • Network technology is changing which will ‘brick’ these old cellphones once and for all. A move away from 2G networks to give spectrum to 3 and 4G technologies in developed markets effectively kills off these phones

    Probably one of the best options to get the benefits of a feature phone is Nokia’s 515, which looks like a traditional candy bar phone and supports 3.5G networks. Supplies are apparently thinning out, but you can still get one new for around 100-115GBP on eBay. More related content here

    More information

    Dig out that Nokia 3310: What’s old is new again as vintage mobile phones take off | South China Morning Post (paywall)
    vintagemobile.fr
    Lëkki
    Retro Fones

    Need a status update? Get an antiquated Nokia handset | FT

  • New York Times culture

    The internal Innovation report by The New York Times leaked widely and has been reported on, mainly in how it reflected the internal politics that led so the departure of Jill Abramson from the paper. It has also been heralded as document of importance in the industry. Given the nature of the document I decided to do page-by-page commentary on the report (so that you don’t have to read all 96 pages). I read it once first of all to get an overall picture of it and then made notes on a page-by-page basis as I read it a second time in more depth. Below are the notes that I made on the second pass through the document:

    Page 3 – The memo starts by outlining its faith in the quality of the journalism at The New York Times. I think that this may be their first flaw as later they compare themselves unfavourably to outlets such as Yahoo! News which implies general news coverage is a commoditised product and The New York Times isn’t providing enough analysis of sufficient value to share.

    Page 4 – This is an executive summary of recommendations, most of which are quite prosaic. Develop the audience, strengthen the news room through working with other parts of the business and develop a newsroom strategy team. First up, developing the audience focuses on growth; there isn’t a mention about the quality of the audience – which would matter to advertisers. Strengthening the newsroom as described shows a willingness to bend the journalism / sales Chinese wall to breaking point.

    Page 5 – A graph of what I presume is monthly unique visitors under the headline of “…But Many Competitors Are Growing Faster” calls out Huffington Post and Buzzfeed as competitors who are outstripping The New York Times in reader traffic. There are no qualifying demographics for this; in the print space would The New York Times compare itself with The New York Post? Both are newspapers but both have different demographics.

    Page 6 and 7 – “Our Proposals, In Brief” basically reiterates pages 4 and 5.

    Page 8 – “Our Mission (And How It Evolved)” explains the methodology behind the report. Having read it, there were a couple of knowledge sources that didn’t seem to have been tapped, but that would have been useful.  Interviewing some of the media agencies to get their takes on media consumption trends, looking at external data sources such as comScore, Nielsen Net Ratings and academia such as the MIT Media Lab, Annenberg Journalism School and the Berkman Center for Internet & Society to peer further into the future.

    Page 12 – the start of the “Growing Our Audience’ section starts with a users guide to the report which basically explains the filters they used in writing and presenting the report in order to dumb it down for the readership.

    Page 14-15 – contrast moves in the news media industry with moves at The New York Times.  The three big NYT moves were:

    • Redesigning nytimes.com
    • Ravaging and rebranding The International Herald Tribune as The International New York Times (this alone would have precipitated a need for a redesign or reengineering of the nytimes.com).  The report itself calls The International New York Times a launch
    • The rollout of native advertising described as a ‘new world’ giving it a romantic heroic quality rather than it having been demanded by media buyers and becoming the norm

    The New York Times is facing the classic disruptee problem, trying to re-orientate itself for the digital age whilst change churns around it. The report treads lightly rather than scaring the bejesus out of its readership  (who are likely part of the problem and need to get on board with a radical attitude adjustment and become part of the solution).

    Page 17-18 is interesting as the document sets out “A Competitor Cheat Sheet”:

    • Buzzfeed
    • Circa
    • ESPN
    • First Look Media
    • Flipboard
    • Vox
    • Yahoo! News

    Here was a few of my takeaways from that list:

    Circa and Flipboard are aggregators with a bit of smarts behind them. These are disrupting the editorial process. I would argue that this goes back further than Circa to email newsletters like Dave Farber’s Interesting People or conferences on The WeLL. Neither of these are new and a news room should have recognised and evolved with this years ago.

    ESPN is particularly interesting as this is a traditional media company that has embraced digital particularly well, highlighting a failure of imagination and gumption in management.

    I think that First Look Media is less about the disruption of news media by digital technology and more about younger consumers being hungry for a reboot of news journalism. This is the reason why Shane Smith and company have moved style and culture magazine VICE successfully into news journalism; showing up major news organisations on their coverage of North Korea and the situation in Ukraine.

    Again there is no questions about whether these companies have the right type of audiences, merely the size of the audiences attracted.

    Finally a good piece of news for Marissa Mayer at Yahoo!. At least The New York Times thinks that her efforts are delivering business difference, I was surprised to see Yahoo! cited as a competitor news source due to the brand positioning. Yahoo! has been experimenting with original news on-and-off for the best part of a decade such as The Hot Zone which featured reportage from journalist Kevin Sites back in 2005/6.

    Page 23 – highlights three graphs under the heading “Tough Trends”. In contrast to the soft soap language that accompanies the charts the data is displayed in a manner to ‘cut to the chase’ and it is important to bear this mind when reading a chart.

    Home page visitors had almost halved over three years. This could be due to changing usage patterns has The New York Times introduced its paywalls. Overall page views showed a less aggressive rate of decline. Time spent on the site dropped by a third which I suspect again is a function of the digital paywall The New York Times introduced. I try and only pick my 10 articles a month carefully to maximise the utility of it.

    It was also interesting to see a drop in mobile readership using the iPhone app.

    Page 24 – there was one quote that stood out for me:

    “The hardest part for me has been the realisation that you don’t automatically get an audience,” said Janine Gibson, editor-in-chief of The Guardian’s website. “For someone with a print background, you’re accustomed to the fact that if it makes the editor’s cut – gets into the paper – you’re going to find an audience”

    I think that this rationale is based on a logical fallacy, that if a paper is put into the hands of a reader it will be devoured cover-to-cover. I would flicking though a paper analogous to skimming past links without clicking.

    Digital now makes this more apparent which is where Gibson had her satori that content needs to be promoted to an audience on digital platforms.

    The authors of the report split their view of competitors into content and delivery mechanisms:

    But BuzzFeed, Huffington Post and USA Today are not succeeding simply because of lists, quizzes, celebrity photos and sports coverage. They are succeeding because of their sophisticated social, search and community-building tools and strategies, and often in spite of their content.

    I think that this division is particularly interesting. Firstly, content is complementary to and indivisible from search and social strategies that these people may have. Secondly, the last bit of the quote dismisses the ‘snackable’ nature of these content formats, when in reality this might be part of their success.

    Page 25 – features a bit of future gazing on how with the right contextual information available, content could be serviced just-in-time to a mobile device from the paper’s news section, alongside archive content like restaurant reviews etc. There is also an ongoing challenge in managing that data to keep the context fresh and relevant – for instance knowing restaurants close or move location.

    Page 26 – “Our Proposals, In Brief”. I am shocked that the current technology used by the paper to support it’s newspaper seems to not used to tag or structure the vast amount of data published to date.

    Page 27 – is an explanation of ‘deep linking’ without mentioning that terminology once. The concern about readers not going to a home page or a section page is interesting, these are print paradigms put into pixels; yet on page 26 the authors had pointed out that one of the paper’s CMS limitations was that it was structured to reflected just this kind of print view.

    Page 28 -30 – talks about using curation to highlight older relevant content that can be used to provide context for a newer piece or timely collection. This raises the lifetime value of archive content because of the increased option for ad inventory to be viewed. I know this might sound obvious, bit it was obviously a revelation for the authors.

    Page 31-32 is a basic schooling in the scientific method  of experimentation – presumably to inspire innovation in the report readership.

    Page 33-35 look at how clustering coverage around common interest collections can increase readership

    Page 36 “Balancing Act: One-offs vs. Replicability” compares and contrasts The New York Times blockbuster approach to big digital projects versus competitors who build tools that they can use again and again; in order to maximise technical investment. An example of this would be Quartz’ Chartbuilder.

    Page 39-40 – The New York Times reimplemented a function to allow readers to follow columnists. Some of the data on the page would make me question the value of a prominent journalist in terms of the amount of loyalty and fan base that they can build. This is basically advocating that the journalists cultivate fame and a fan base. It would have been interesting to explore a bit more the dynamic between the newspaper brand and the journalist brand.

    Page 41 – talks about structured data and tagging. What I am surprised didn’t come up was the topic of folksonomies which could have been an answer to the ‘tag famine’ that they paper seems to suffer from. For instance, no tag for Benghazi despite the fact this was a story that would run-and-run.

    Page 43-44 – “Promotion” talks about social. Here’s what it says about email newsletters:

    Other competitors, like The Atlantic and Politico are also using emails as direct channels to readers. This basic tool has become one of the most popular and efficient ways to cut through all the noise of the social web and reach readers directly.

    The New York Times already does use email marketing. This ‘us and them’ view of journalists and the audience lacks subtlety. It neglects to take into account that some of their readers are tastemakers or curators that their friends tap into. Influencing people who can propagate content links even further is a relatively easy win. RSS seems to be the Rodney Dangerfield in this picture getting no respect. Whilst there aren’t prolific RSS usage amongst the masses, it is often used by curators and as pipework for aggregators like Feedly or Flipboard.

    Page 45 – what becomes apparent is that linkages such as social sharing analytics isn’t being used to drive editorial decisions. The twitter metric of engaged fans in a chart that compares The New York Times to other media outlets is interesting. What does ‘engaged fans’ mean in this content?

    Page 49-54 – “Connecting” is about The New York Times getting closer to the reader as a corporate brand:

    • User-generated content
    • Expand Op-Eds
    • Events
    • Using reader data to know them better

    Page 55-59 – “Strenghtening Our Newsroom”. I was gobsmacked reading this section. The New York Times seemed to be way behind peers like The Telegraph in terms of using data for the news room. Secondly, they have a consumer insight group yet didn’t have this expertise to help drive editorial decisions as a proxy reader’s champion.

    Page 60-70 – discuss what the authors call reader experience. This touches on content but also goes into how the content is manifested and the user experience. In a world where data journalism is freely bandied around, I can’t understand the gulf here. Back when I used to work at Yahoo! tweaking user experience was a major part of the creation process across the Yahoo! network properties.

    Page 71-74 – The New York Times editorial team don’t seem to network with peers and keep abreast of industry developments. They hadn’t been thinking about how to change news reporting to remain current and relevant.

    Page 75-77 – is a simple explanation of the ‘fast failure’ model of innovation.

    Page 78-80 – outlines the cultural challenges that the editorial team need to scale in order to be able to change the organisation. A lot of this mirrors what reporters would have written about businesses in mature economies adapting to change. Integrity seems to have been interpreted institutionally has embracing a luddite philosophy.

    Page 81-87 – “Digital First” isn’t exactly a new concept it has been the clarion cry of news media groups for years.  It is concerning that they even have to have a boxout defining what is means to be digital first on page 82.

    Page 88 -90 “In Their Own Words: Digital Departures” looks as the reason why digital journalists have been leaving the paper. These outtakes from what amounted to be exit interviews reflected the need for a flatter structure and more agile business.

    Page 91 – One quote said it all for me when they talked about talent “Winning The Talent Wars”:

    We need makers, entrepreneurs, reader advocates and zeitgeist watchers.

    How can you have a news organisation that is that isn’t lacking in curiosity amongst it’s journalists that the above statement needs to be said?

    More information
    The leaked New York Times innovation report is one of the key documents of this media age | Nieman Journalism Lab
    Mondo Vice: going backwards to bring news media forwards
    Quartz Chartbuilder on Github

  • Big data issues

    Big data origins

    In the past, what is now included in the envelope of big data resided with just a few organisations. The story of big data started with the US government. The government used a young company called IBM and their punch card technology to help tabulate their census data. Punch card technology started in the textile industry, where industrial revolution-era jacquard looms manufactured complex fabric patterns. Punch cards also controlled fairground organs and related instruments. It was with early tabulating machines made by IBM and others that started to change the world as we know it.
    Computer History Museum
    When the mainframe came along governments used them to manage tax collection and to run the the draft for Vietnam. It came a key part of the US anti-war protesters to destroy machine readable draft cards. (The draft card destruction didn’t affect the draft process. But burning the draft card was still an offence and some people underwent punishment.)

    Credit agencies

    Also around this time, the credit agency was coming into its own in the US. Over a period of 60 years, it had gradually accumulated records on millions of Americans and Canadians. The New York Times in 1970 described the kind of records that were held by Retail Credit (now known as Equifax):

    …may include ‘facts, statistics, inaccuracies and rumors’ … about virtually every phase of a person’s life; his marital troubles, jobs, school history, childhood, sex life, and political activities.

    These records helped to vet people for job applications, bank loans and department store consumer credit. It was like a private sector version of the J. Edgar Hoover files. Equifax moved to computerise its records. One reason was to improve the professionalisation of its business. This also had an implication on the wider availablity of credit information. Computerisation led to the Fair Credit Report Act in the US. This legislation was designed to give consumers a measure of transparency and control over their data.

    Forty years later, mainframe computers are still used to process tens of thousands of credit card transactions every second. New businesses including social networks, search engines and online advertising companies have vast amounts of data; unlike anything a credit agency ever had.

    The social, cultural & ethical dimensions of big data

    The recent The Social, Cultural & Ethical Dimensions of “Big Data” event held at New York University by the Data & Society Research Institute was important. Events like these help society understand what changes to make in the face of rapid technological change.

    Algorithmic accountability

    The Algorithmic Accountability primer from the event highlights the seemingly innocuous examples of how technology like Google’s search engine can have far reaching consequences. What the Data & Society Research Institute called ‘filter bubbles’. Personalisation of search will change that consumers see from individual to individual. This discrimination could also be applied to items like pricing. Staples has produced an algorithm that based pricing on location of the web user; better off customers were provided with better prices. One of the problems of regulating this area is first of all defining what an algorithm actually is from a policy perspective.

    Algorithmic systems are generally not static systems but are continually tweaked and refined, so represent a moving target. During my time at Yahoo! we rolled out a major change to the search algorithm every two weeks on a Wednesday evening US west coast time. I imagine that pace of change at the likes of Google and Facebook has only accelerated.

    The problem with many rules based systems now is that we no longer write the rules or teach the systems; instead we give the system access to large data sets and it starts to teach itself – the results generally work but we don’t know why. This is has been a leap forward for what would be broadly based artificial intelligence, but makes these systems intrinsically hard to regulate.
    concern with data practices
    Given all this it is hardly surprising that research carried out  on behalf of President Obama by The Whitehouse showed a high level of concern amongst US citizens. More related content here.

    More information

    Jacquard Loom – National Museums Scotland
    Separating Equifax from Fiction | Wired (Issue 3.05)
    Data & Society | Algorithmic Accountability primer
    This Landmark Study Could Reveal How The Web Discriminates Against You | Forbes
    Websites Vary Prices, Deals Based on Users’ Information | WSJ
    The 90-day review for Big Data | Whitehouse
    Data & Society | Alogrithmic Accountability Workshop Notes
    Digital Me: Will the next Cringely be from Gmail? | I, Cringely