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.
Google Answers decides to close up shop – Google Answers is an attempt to create high quality material for knowledge search and a monetisation model at the same time. At the top end, Google Answers looked like consultancy on the cheap. Given the size of the core Google business versus other media opportunities Google Answers was never going to be big. However closing Google Answers seems to be less a criticism of knowledge search and more a broader retrenchment to only focus on ‘Google-sized’ opportunities – effectively ossification of the business.
Design
x0xb0x– amazing improvement by German designers on Roland’s iconic TB-303
Thinking about The Change Function as a book reminded me as an agency person, it is not enough only be a good, but to understand something about your clients. Are they a winner or a flamer?If they are a flamer, you want your cash up front and start contingency planning for how you replace them with another piece of business.
If they are a winner, then you can be more flexible and possibly take a bath if they are going to be a flagship brand on your client list.
What is the compelling reason to purchase their product or service.
Rule one: Clients are generally too close to their products, consumers will work out how they become relevant to their own lives or not
Rule two: The greatest lie after ‘I love you’ and ‘I can guarantee you coverage in the Financial Times’ is ‘Our product is unique’. If the problem can be solved another way, it means that the product is not unique because the customer has a substitute choice. Believe: flickr was not unique, it was an innovative way at looking at the same problem. The iPod was not unique, Compaq made the first hard drive-based MP3 player back in the late 90s and the Mac wasn’t unique because it got the queues from Doug Engelbart and Xerox PARC.
The Change Function by Pip Coburn makes an interesting read as it shows by example why some technologies take off, while others flame out.
What’s the crisis the product or services solves? People will generally only adopt the new, new thing if there is a compelling reason for them.
Is the crisis one for real-world people, or just for rich people (who fly business class three days in every week and think that having a social life is messaging fellow college alumni on their Blackberry once every six weeks)?
How high is the total perceived pain of adoption?
Is your client user-centred: do they use language that shows they look at things from the users point of view?
Do they have an iterative development cycle? (Do they roll out improvements on a regular basis, based on user feedback and their technological roadmap rather than blockbuster updates.)
Pip Coburn elegantly codifies common sense; its the stuff you know instinctively, like the smartphone that you only use voice and texting on and yet still listen to music on your iPod, or the latest cool web 2.0 service that you registered for but then never seem to go back to. More book reviews can be found here.
Health Disparities Persist for Men, and Doctors Ask Why – New York Times – health disparities for men exist in all socioeconomic groups, all are doing poorly in terms of health. Health disparities for men is a multi-factorial problem including economic marginality, adverse working conditions, and gendered coping responses to stress. Which can lead to high of health-damaging behaviours and an aversion to health-protective behaviours. Will equality for women drive similar effects on their health to what is occurring in health disparities for men? More health related content here.
The Wall Street Journal Online or as it calls itself the WSJ Online has been celebrating its tenth birthday with some retrospectives and future gazing.
WSJ Online dot com disasters
A couple of the articles caught my eye.The Best of the Worst by Kathryn Meyer (May 3, 2006) celebrates the suckiest ideas of the first dot com boom.
CyberRebate
CyberRebate did what it said on the tin; they charged you an outrageous price for an item and then promised you a rebate, they hoped to make money on the redemption drop-out – they were overwhelmed and drowned in a sea of debt.
Digital currency
Digital currency ideas (Beenz and Flooz) withered on the vine as they weren’t as universal as Mastercard or cash. PayPal survived because it kicked Western Union’s ass and we could all be credit-card merchants.
iSmell
iSmell was a device designed to release smells appropriate to the pages you surf (don’t even think about it, get your mind out of the gutter this instant) like some kind of b-movie experience enhancement craze of the 1950s.
CueCat
CueCat plugged into your PC (Windows only if you please) and allowed you to scan bar codes of magazines into your computer to get further information or content. This idea seems to have caught on in Japan with mobile phones and specialised software, so maybe they were too visionary?
3Com Audrey
The 3Com Audrey internet appliance was a great well engineered device killed by the ever decreasing price of PCs. I still rate its QNX-based OS and I like the product design on it.
PointCast
PointCast the push technology service that was a richer more engaging experience than RSS is today, but then I was sat at the end of a fat pipe whereas most users were on dial-up. Also marketers knowing the price of everything and the value of nothing used the service to carpet-bomb users with unwanted ads.
Tech trends
Tim Hanrahan’s piece on Tech’s 10-year Creep (May 8, 2006) brings out some interesting trends that have occurred. I have paraphrased and commented on his trends below
Anytime, Anywhere: Push email and wireless internet access mean that getting online whilst traveling or wire-free on your couch or at Starbucks — is possible for $60 a month or so. However it eats into the work life balance.
Think Better! Google basically.
Putting Yourself Out There: Originally people liked their privacy, caller ID on phones was pushing the envelope in terms of social disclosure. Over the past five years people have gotten used to sharing personal information online. Chat rooms, forums, online dating followed by social-networking sites; to blogs and MySpace came to dominate. Easy-to-use tools, cheap to free storage and online social interaction brought out the pioneer spirit ‘Go web young man‘.
The Post-Stuff World: Music downloads, ebooks, ripped movies. (But if its that post-stuff why is Amazon so successful selling books, everyone’s iPod is full of music ripped from CDs and people love their laptops, mobile phones, PDAs, crackberries, Nintendo and Sony handhelds). This techno-minimalism bollox didn’t wash with me.
Free Information, Free People: People are exercising their free speech and there is a maelstrom of content out there that Technorati struggles to handle. The social web has replaced the techno web – (though when Soledad O’Brien hosted a show on MSNBC that featured a young Max Headroom-type avatar sidekick named Dev ten years ago (good gosh, was it that long ago?) was it precient of Second Life?) CNN now covers blog content as if it was matter-of-fact, though blogs often don’t have the same rigorous process behind them as well-written journalism.
Picture of Soledad O’Brien courtesy of CNN.com. More related posts here.
A couple of interesting artifacts that I found online and wanted to share with y’all.First up, video conferencing, why is it so crap and what are you going to do about it?
Ok, we’ve had video online, we’re now living in an age of pretty much ubiquitous broadband, why do we stop with using our VoIP client of choice and use video instead.Well there is the network side of things: IP networks provide a ‘best effort’ service so the signal may be come degraded. All the pixels will get to the other end eventually but they won’t get there in the right order and the latency of the signal will depend on the slowest part of network travel that they have to make through the internet ‘cloud’ no matter what kind of pipe you have between you and your local telephone exchange, wireless hub or cable television outfit. Look at video streaming, it has errors and flaws in its signal even on my 2MB pipe AND the signal is buffered to smooth out these glitches like a CD player. With real-time interactive video conversations that is not a technical option.
Also you may not want to have the person see you as well as speak to you, imagine if you have a bad hair day or want to lie?
The third factor is a much more basic human system and the best way of illustrating it is by looking at the picture above. Notice how you don’t have eye contact with the people that you have a conference with because the camera’s perspective is slightly different to the view you would have if it were a real-world conversation. Notice how the men on the left and right are looking above their screens and the ladies are looking below, this is just enough for you to notice and process at a low level. It doesn’t feel natural, the conversation won’t flow as well as a real-world sit down would because the eye contact feels wrong.
This is why video conferencing can feel so wrong, even Apple’s attempt at correcting it with a small mirror picture (the one at the bottom) to see how you look to the callers feels wrong.
Historically the way to do that is to have the difference between camera angle and the viewing angle of the screen as small as possible. This was achieved by using big TV screens with a camera on top and the participant perched at the end of a big conference table at the other end of the room. That’s why big oil companies and George Bush love video conferencing but you’re not likely to see it adopted en masse in UK homes soon.
Its also not exactly the most elegant solution, which the reason why I was really intrigued by this Apple patent which I saw courtesy of those nice people at AppleInsider.
Imagine where the screen viewing area was the camera with camera elements squeezed in between the pixels on your LCD. The back-light would provide the ambient light required for the picture, you an have eye contact with whoever you are speaking with without living in a mansion and having a conference table the size of a small yacht.
In theory this principle would also work with on mobile screens (at a lower quality-level), televisions etc. On the scary side it would also allow the omni-present two-way tele screens for surveillance like Orwell’s Nineteen Eighty-Four. More content here.
Web 2.0 and the Enterprise
News.com have an interesting article Web 2.0 meets the enterprise how companies like IBM and Visible Path are using technologies like social networking, RSS feeds and wikis to help large companies build IT systems. News.com make a big show of how these ‘consumer’ (their word, not mine) technologies are changing the enterprise software landscape.In addition, Forrester sent out an email newletter talking about how service-orientated architecture (SOA) (simply put: enterprise-grade web 2.0-type technologies) are having an accelerated take-up with happy IT directors to be found everywhere.
The truth is more complex than the News.com story about how the kids are showing big business the way, the process is much more complex.
AJAX is generally a hard thing to do well so it is interesting that Michael Robertson is selling AJAX-based web services through ajaxLaunch and looking to use AJAX as a way of providing applications and widgets on top of an OS. Its an interesting take from a business head on all the utopian dreams such as the network computing meme or Netscape’s ‘the browser is the OS’-hype back in the day and an ideal way for novices to get web 2.0 see his ‘everything is moving to the cloud’ keynote here which also has a good product demo (RealPlaya required).
Nice definition of what AJAX means to marketing people – ‘rich web applications right to your computer’.