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.
I came across a couple of interesting terms recently: dark stores and coercive diplomacy.
Dark stores
Gartner for Marketing (formerly L2 Inc.) were talking about a new development at Amazon’s Whole Foods subsidiary. It was what Gartner called digital dark stores. The first one has been established in Industry City to serve much of Brooklyn, New York.
So whats the difference between dark stores and the ‘last mile’ warehouses that Amazon uses for fulfilment in places like London?
Looking at the limited amount of photos available, this doesn’t feel warehouse-like. There wasn’t obvious automation in the pictures. Instead it feels like a supermarket that’s well stocked, but lacking price tags and shopper marketing accoutrements. Gartner describe it as ‘technically a grocery store’, which implies that there might be zoning or planning regulations that they might be working around
It is only for the Whole Foods brand; rather than fulfilling Amazon Fresh and Amazon Prime Now items
This isn’t just an Amazon thing. Gartner points out that American supermarket brands Kroger and Giant Eagle have also embraced the order-only store model. More at Gartner for Marketing here.
Coercive diplomacy
The Australian Strategic Policy Institute published a report on September 1, 2020 called The Chinese Communist Party’s coercive diplomacy. It was written by Fergus Hanson, Emilia Currey and Tracy Beattie. Hanson, Currey and Beattie analysed ten years of Chinese government diplomacy. In there words:
The Chinese Communist Party (CCP) is increasingly deploying coercive diplomacy against foreign governments and companies. Coercive diplomacy isn’t well understood, and countries and companies have struggled to develop an effective toolkit to push back against and resist it.
The Chinese Communist Party (CCP) is increasingly deploying coercive diplomacy against foreign governments and companies. Coercive diplomacy isn’t well understood, and countries and companies have struggled to develop an effective toolkit to push back against and resist it.
This report tracks the CCP’s use of coercive diplomacy over the past 10 years, recording 152 cases of coercive diplomacy affecting 27 countries as well as the European Union. The data shows that there’s been a sharp escalation in these tactics since 2018. The regions and countries that recorded the most instances of coercive diplomacy over the last decade include Europe, North America, Australia, New Zealand and East Asia.
There seems to be an escalation of economic and non-economic measures deployed. Economic measures would include:
Trade sanctions – such as the recent ban on German pork products. This was rolled out just a few days in advance of a trade negotiation meeting between China and the European Union
Investment restrictions in strategic industries such as the ‘agreement‘ that Yahoo!, Softbank and Alibaba had over Alipay (which included what would now be Ant Group). Strategic industries like state security is notoriously (and deliberately) ill-defined in China
Tourism bans
Popular boycotts such as Korean corporate Lotte being driven out of China and the 2012 anti-Japan protests where the public smashed Japanese stores, attacked factories and burned Japanese cars
Coercive pressure is also applied at below state level on businesses. It may also be applied on individuals, based on the data leak provided from Zhenhua Data seems to imply.
Non economic measures include:
Arbitrary detention. The best example of this would be Michael Kovrig and Michael Spavor detained as part of China’s dispute with Canada. Another example might be Australian citizen Karm Gilespie. China didn’t admit it had detained him for over six years, until they announced his death sentence in the summer
Restrictions on official travel
State-issued threats which are usually issued on a regular basis as part of wolf warrior diplomacy. (Wolf Warrior is a set of two films with a Chinese action hero, a la Rambo – but with less humour).
Some of the imputus for coercive diplomacy might come from the Chinese Communist Party’s continued rancour over Qing dynasty-era unequal treaties. More China related content here and more on retailing here.
Forget TikTok. China’s Powerhouse App Is WeChat. – The New York Times – It has even extended Beijing’s reach beyond its borders. When secret police issue threats abroad, they often do so on WeChat. When military researchers working undercover in the United States needed to talk to China’s embassies, they used WeChat, according to court documents. The party coordinates via WeChat with members studying overseas – I loved the descriptor of WeChat as a super filter bubble. I am continually surprised by how nationalistic Chinese friends have become over my nine years using WeChat
How Did the Internet Get So Bad? | The Nation – “Search strings used to be phrased like ingredients: ‘revolution AND french OR russian NOT american,’” McNeil writes. But in the past two decades, the language and tone of our search queries have become more baroque and confessional. “When I search for information now, I feel like I should add ‘please’ and ‘thank you’ to every request. There is no way around it, talking to the Google search bar like a human generates more relevant results.” This feels anecdotally true; I’ve certainly gotten into the habit of phrasing my searches, as McNeil notes, along the lines of “‘how do i download a printer driver for mac’ rather than ‘download printer driver mac.’” – one of my biggest frustrations is the lack of depth that ‘human language’ search allows versus the previous use of boolean terms
‘Is PR structurally ageist? Sadly, I think it is’ – PR leaders respond to Mark Read’s comments on age | PR Week – when the realisation you’re old hits you in PR, you have six options. You can set up your own shop (if you haven’t already). You can go in-house for breadth. You can run an agency (or help someone run theirs). You can become a functional ‘guru’ (a strategist, for example). You can fully embrace freelance consulting. Or you can go full side hustle and open a gin still
‘The Man in the White Suit’: What Will We Do When We’ve Nothing to Make? — Jim Carroll’s Blog – Should science pursue innovation that improves people’s lives regardless of the impact it may have on industry and employment? How do we deal with the concentration of capital that results from such disruptive change? How do we accommodate the workers who have lost their jobs? What will we do when we’ve nothing to make?
Hong Kong cardinal warns priests to ‘watch your language’ in homilies – Catholic Herald – The priest, who asked not to be named because of concerns he could be prosecuted under the National Security Law, told CNA on Tuesday that many local Catholics were dismayed by Cardinal Tong’s actions. “The youth of the Church is for democracy, they simply are,” he told CNA. “They are looking for leadership, and I doubt you would find any Catholic under 35 here who is not angry and does not see the chancery as siding with the people tear-gassing them in the streets.”
A TALE OF TWO NIKE ADS: MARKETING’S UNHEALTHY OBSESSION WITH “INSPIRATION” – BBH Labs – Generally speaking, ordinary folks are just much more chilled out than marketers. They are far less preoccupied with their careers, their personal fitness, keeping up with technology and looking at social media. They look for good deals and use coupons and loyalty programs but they are less likely to consult “expert opinion” before a purchase. They are much more interested in books and literature than they are in business. They are unashamed about their love of television. In fact they just love to be entertained.
Nike Japan: Create with Air Max by AKQA. Japan seems to be particularly open to an augmented reality AR campaign in general. This AR campaign taps into the challenges that COVID-19 lockdown represented to creators and the wearing sneakers. The purpose of the AR campaign was three fold:
Reinforce the cultural aspect of the Air Max
Emphasise innovation in the Nike brand through the AR campaign functionality
Beatboxing and digital sampling technology meets meditation in this video by Yogetsu Akasaka, a Japanese Zen Buddhist monk ‘Heart Sutra’ vocal live looping remix.
The Korean Tourism Organisation collaborates with Netflix to promote Korea as a travel destination. The ad spot highlights locations drawn from food travelogues to Korean dramas on the platform. Korean drama already has an international following, previously it has been on specialist sites and DVD boxsets. Netflix has made the potential reach for Korean dramas even larger. At least some of the Netflix audience won’t have heard of ‘hallyu’, or K-pop. Netflix had helped improve access to international dramas in general. That’s the audience that the KTO is trying to tap into with this ad creative.
New York Times Will Move Part of Hong Kong Office to Seoul – The New York Times – a sweeping national security law passed by China in June — aimed at stymieing opposition and pro-democracy forces in Hong Kong — has unsettled news organizations and created uncertainty about the city’s prospects as a hub for journalism in Asia. Some Times employees in Hong Kong have faced challenges securing work permits, hurdles that are commonplace in China but were rarely an issue in the former colony. – The visa comments are interesting as we’ve previously only seen this with the FTjournalist Victor Mallet. In August 2018, Andy Chan (then of the Hong Kong National Party) gave a talk at the Hong Kong Foreign Correspondents Club (FCC) and Victor Mallet was the chairperson for the event. Chan went on to be arrested numerous times. Victor Mallet had his work visa renewal rejected on October 2, 2018 – one day before his old visa ran out. Victor Mallet is a watershed moment for China and Hong Kong. Victor Mallet is the mainlandisation of Hong Kong.
12 things I learned by switching from the 13-inch MacBook Pro to the 12.9-inch iPad Pro | Macworld – I really wanted it to work. A couple of weeks ago I closed my MacBook on a Friday afternoon with no plans to open it for a week. I wasn’t going on vacation—rather, I was testing the theory that the iPad could actually be “a computer….”Sadly, it didn’t work out. I spent more time fighting my iPad than loving it, and when push came to shove, it was just too difficult to get things done as quickly and efficiently as I do on my Mac. Some of it is muscle memory, of course, but there are still fundamental issues with the iPad that prevent it from being the work-first device Apple wants it to be. So I’m giving it up – not terribly surprised as they’re very different use cases
Why older people really avoid technology.| Slate – According to the Pew Research Center, 73 percent of people over 65 in the U.S. use the internet, up from 14 percent in 2000. The older the person, the less likely she is to embrace the internet, social media, or smartphones, but those who have adopted these technologies use them a lot and learn new skills to do so. Seniors are the fastest growing online demographic, though some remain holdouts. In many of those cases, the real barrier to entry isn’t technological—it’s personal – more on old people’s of technology
China will punish Britain for defying its will. We need allies to hold the line | The Guardian – whilst the historical facts in the op-ed are all true, what’s more interesting is the media tone against all aspects of UK society against China now. This indicates a failure in Chinese elite-focused influence campaigns in the UK to deliver soft power. What is more concerning is the lessons that China might take away from these defeats, will they double down on ‘victimhood’ and aggression, or will they try and broaden their ‘base’ of appeal
Understanding CCP Resilience: Surveying Chinese Public Opinion Through Time | Ash Center – since the start of the survey in 2003, Chinese citizen satisfaction with government has increased virtually across the board. From the impact of broad national policies to the conduct of local town officials, Chinese citizens rate the government as more capable and effective than ever before. Interestingly, more marginalized groups in poorer, inland regions are actually comparatively more likely to report increases in satisfaction. Second, the attitudes of Chinese citizens appear to respond (both positively and negatively) to real changes in their material well-being, which suggests that support could be undermined by the twin challenges of declining economic growth and a deteriorating natural environment. – Fascinating and mostly reassuring reading for the Chinese Communist Party
Why Consulum Isn’t Flinching About Promoting Hong Kong – good piece of analysis by Arun on Hong Kong’s selection of Consulum. Most of the budget is going into baseline mapping and research. That might come in haney for communications, or targeting extra-territorial prosecutions under the nascent National Security Law…
Vast majority of US research institute disclosure violations related to China | South China Morning Post – High profile cases include the June indictment of Charles Lieber, a former chair at Harvard University’s chemistry and chemical biology department who gave false statements regarding his involvement with the Thousand Talents programme to bring leading researchers to China. In May, Li Xiao-jiang, a former Emory University professor and participant in Thousand Talents, pled guilty to filing a false tax return that did not report foreign income from working overseas at Chinese universities. The Van Andel Research Institute in Michigan agreed last December to pay US$5.5 million to the US Department of Justice over allegations of not disclosing Chinese grants for two of its researchers. – The problem seems to be vain greedy senior academics who think they’re above it all
EXP TV – not quite sure how to describe it; EXP TV is just tremendous. In their words “EXP TV daytime programming is called “Video Breaks”—a video collage series featuring wild, rare, unpredictable, and ever-changing archival clips touching on every subject imaginable. Similar to how golden era MTV played music videos all day, daytime EXP TV streams non-stop, deep cut video clips filtered through our own distinct POV. Our Nite Owl programming block features specialty themed video mixes and deep dives on everything under the sun: Bigfoot, underground 80s culture, Italo disco, cults, Halloween hijinks, pre-revolutionary Iranian pop culture, midnight movies, ‘ye ye’ promo films, Soviet sci-fi, reggae rarities, psychedelic animation and local news calamities. On any given night you could watch something like our Incredibly Strange Metal show followed by a conceptual video essay like Pixel Power—our exploration of early CGI art. Aside from our unique tone and deep crate of video materials, one thing that really sets us apart in 2020 is our format. We are *not* on demand, we are *not* interactive—just like old TV! You can tune in anytime and something cool will be on. That’s EXP TV in a nutshell. It’s funny, it’s art, it’s music, it’s infotainment, it’s free and it’s 24/7.” EXP TV reminded me a lot of the pioneering night time TV programming that used to run on British TV.
Gen Z wants brands to be ‘fun,’ ‘authentic’ and ‘good,’ study says | Marketing Dive – Gen Zers prefer brands that are authentic, with 82% saying they trust a company more if it uses images of real customers in its advertising, while 72% said they’re more likely to buy from a company that contributes to social causes. Product quality, positive ratings and reviews and customer service are the top three characteristics that establish trust in a brand among Gen Zers – really? I am sure if you asked any cohort through time of the same age that would have come out as the result. More on ‘generations‘ here
TikTok to pull out of Hong Kong – Axios – interesting how they got out ahead of Facebook, WhatsApp etc. TikTok might feel its mainland app Douyin can be swapped in. It is an interesting canary in the coal mine for Twitter, Facebook, WhatsApp etc
Interesting French short film about the future from 1947. In some ways it is a better predictor of technology usage than Star Trek some two decades later.
La Télévision, œil de demain (1947) – J.K Raymond Millet
Luckin Coffee investors oust founder | Financial Times – this looks very similar to WireGuard. The problem is that audited books can’t be trusted due to local law. And locally written analyst reports have to self-censor allowing this kind of thing to happen. China doesn’t seem to be moving to change its law in the same way that Germany is to try and protect shareholders
Facebook Suspending Review of Hong Kong Requests for User Data – WSJ – based on the Xi administration’s concerns about national security and cyber sovereignty; one can expect China to extend Great Firewall into Hong Kong with this. Which will then impact multinational companies who have traditionally used Hong Kong as an exit point for China operation VPNs. It will also affect Hong Kong’s position as a regional base. Firms would no longer want to use the data centres and backbone networks that Hong Kong has. More from the FT: Facebook and Twitter block Hong Kong authorities from accessing user data | Financial Times – WhatsApp, Facebook, Twitter and Telegram have all given the Chinese Communist Party the finger. They have a strong incentive to. Chinese drop shipping businesses like Shein or Wish will suffer more than Facebook. And it plays well in parliaments and distracts from the other troubles that they may have. China gets burnt because of its information warfare games on these platforms. Facebook et al provide Chinese marketing teams a gateway into markets around the world that WeChat and TikTok don’t – which dings the Chinese government’s economic goals
Above Avalon: Apple Is Pulling Away From the Competition – the obvious candidates missing here are Huawei, Xiaomi and the BBK firms (Oppo, Vivo etc) which have driven the smartphone market into the middle in China and opened a can of whoop ass on the premium sector overall
Philip K Dick’s Metz speech is mind blowing. It was done at an international science fiction festival in 1977, held in Metz, France.
Did China Steal Canada’s Edge in 5G From Nortel? – Bloomberg – short answer yes. Though it probably didn’t help that they had a management team that had failed to act when they were warned about infiltration, a infrastructure business reliance on the frame relay network market and partnered with Microsoft on a lot of enterprise technology. Some fantastic stuff in this article – Did a Chinese hack kill Canada’s greatest tech company? – BNN Bloomberg – in the late 1990s, the Canadian Security Intelligence Service, the country’s version of the CIA, became aware of “unusual traffic,” suggesting that hackers in China were stealing data and documents from Ottawa. “We went to Nortel in Ottawa, and we told the executives, ‘They’re sucking your intellectual property out,’ ” says Michel Juneau-Katsuya, who headed the agency’s Asia-Pacific unit at the time. “They didn’t do anything.” By 2004 the hackers had breached Nortel’s uppermost ranks. The person who sent the roughly 800 documents to China appeared to be none other than Frank Dunn, Nortel’s embattled chief executive officer. Four days before Dunn was fired — fallout from an accounting scandal on his watch that forced the company to restate its financial results — someone using his login had relayed the PowerPoints and other sensitive files to an IP address registered to Shanghai Faxian Corp. It appeared to be a front company with no known business dealings with Nortel. The thief wasn’t Dunn, of course. Hackers had stolen his password and those of six others from Nortel’s prized optical unit, in which the company had invested billions of dollars. Using a script called Il.browse, the intruders swept up entire categories from Nortel’s systems: Product Development, Research and Development, Design Documents & Minutes, and more. “They were taking the whole contents of a folder — it was like a vacuum cleaner approach,” says Brian Shields, who was then a senior adviser on systems security