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.

  • Immediacy as a problem

    Immediacy is a relatively recent phenomena for consumers. It has changed the work and personal lives of consumers. It has eroded the barrier between work life and home life. It has redefined our support networks and friendships.

    Before I wrote this post, I had conversation with a friend working on a project in Singapore who’d had an eventful few days. With zero thought I was able to see if he was online and reach out and see how things were going.

    I’ve worked with clients who seem to email or message around the clock. For a while Snapchat streaks of several days were a thing – highlighting extreme immediacy in consumer behaviour.

    What did life before immediacy look like?

    I can remember the start of a working life without the mobile phone, or email. Fax machines were not items generally found in homes. You could buy them in Argos or the Viking catalogue with cheap thermal printing technology.

    Sky had launched their analogue satellite business, but there also fanatics who had directed dishes. They were a very expensive version of radio hams and CB radios.

    Satellite and cable TV meant choice. Some channels specialised and CNN specialised in constant news from around the world. Its ability to report events in near real-time came into sharp focus during the first Gulf War. Like most Europeans to me CNN was an idea, I didn’t actually have it in my own home. But it gave a deceptive taster of what always-on connectedness actually meant.

    Home computers were distinct and separate platforms from business computing. Dragon, Sinclair Research, the Commodore 64 and Amiga. Atari moved into computing and saw success with the ST. Windows and Mac had only started to weave its way into European households.

    The cassette was starting to be challenged by the CD in terms of personal media. The CD burner would arrive in mainstream homes a little bit after the Mac and the PC; right around the time of consumer dial-up internet access.

    Personal communications meant:

    • A phone card that worked in telephone boxes
    • A telephone extension fitted with a nod and a wink by friend who’d worked at the phone company

    There was no free local calling so the American gen-X behaviour of spending the evening on the phone to your friends didn’t happen so much in the UK and Europe.

    Do-it-yourself culture meant:

    • Fanzines created on a photocopier
    • Setting up an independent record label
    • Running a club night

    For medium and large companies there was an internal mail system. Mail would be exchanged between sites via a courier service overnight. The package would be opened and then distributed by an internal mail room.

    I worked in the oil industry at the time, so we could do international communications through telex. Telex was a legal document. The best analogy I had for it would be if your office had a collective email address. When a message came in, these would be printed and then distributed by the internal post system.

    Communications was a batch process for workers. In terms of importance as a task; communications was something that happened alongside the rest of your job. You might open your post mid-morning. You’d drop off any internal mail to a wire basket by reception by mid afternoon.

    Immediacy in communications started first with PBXs (private branch exchanges). The office phone on every desk and at each point on a production line changed things. Direct dial out changed things up, you could phone suppliers directly. You could arrange for information to be sent to the office or work site fax machine. Receiving a fax would be a big event in your day. You’d wait by the fax machine to receive it. Later on as fax traffic increased; you’d get a call from reception to pick up your fax.

    Now, many modern workspaces don’t have office phones, or if they do – they aren’t well maintained and on the way out.

    Bigger companies had office phones paired with a voice mail system and ‘while you were out’ Post-It notes were a thing.

    While you were out

    Mobile phones changed everything. My first mobile phone was a luggable phone that looked more like a piece of military equipment. It was used when I would be driving away from the office in a company car. The phone was strapped into the passenger seat.

    Smaller models changed the game for sales people, plumbers and mobile locksmiths. I bought my first pager whilst at college. It was a text messenger where people would leave a message with an operator and this would be then sent on to me. Occasionally I didn’t get a message, it wasn’t as reliable as SMS is now.

    In enterprises, internal email came along with the use of mini-computers. The first email account that I used, communicated internally. It ran on a DEC VAX mini-computer and I accessed it via VT100 terminal emulator running on a Mac Classic.

    Very few people used email in the company. It was easier to get things in and out of the fax machine. Memos went on bulletin boards, people called each other or walked around the site.

    In the US, free local calls, saw the rise of dial up services like AOL, Prodigy and CompuServe as a mass consumer service. Chat rooms might have been the reason why people signed up. Computer-based email and messaging quickly became the killer application.

    In Europe the rise of 2G or GSM phones and SMS played a similar roles. My first personal mobile phone, came with SMS. At first it wasn’t much use, but when I moved down to London and started working in agencies I could message colleagues.

    Businesses got on the internet. Companies used pre-internet protocols to exchange stock and financial information between sites. Often it was creative businesses first. ISDN lines offered a way of sending artwork directly to printers in a secure manner. It was a small perceptual jump to move from ISDN exchange to internet usage.

    These businesses usually had a single email account for the business that was checked twice a day if that.

    At college I got a glimpse of the future. We had internet over the JANET system. Liverpool had its first cyber cafe with a decent expresso machine and homemade carrot cake. I signed up for a Yahoo! account prior to leaving college. I wrote my emails as text documents on a Mac and took them to Liverpool on a Saturday. I would spend an hour sending my emails, keeping in touch with friends and applying to jobs I’d read about. I’d find out about jobs in The Guardian newspaper or marketing magazines. It was around about this time that I started buying the US edition of Wired magazine. It’s neon typography promised a cyber-utopian future.

    Immediacy – the problem

    At the time we didn’t see immediacy as the issue.

    The problem was time keeping. Before the mobile phone, you would show up on time to a pub or a bar. But with SMS you could let people know if you were running late.

    The second bug bear was information overload. It took as little effort to copy in 20 people on an email as it did to send it to one person. The web was still frustratingly slow. The speed that pages would load would grind to a halt when America woke up.

    Yahoo Office Attachments Screengrab

    There were no social norms and ettiquette. Memes came around as attachments to emails, clogging up your account. Yahoo! used to have a section of meme-worthy videos and images on its site called ‘Office Attachments’ in a nod to this habit. Everything would be shared; a watershed moment was the Claire Swire email.

    It was around about this time that people started to question the impact of communications had on productivity. It was certainly more convenient, but you lost a corresponding amount of time wading through your email inbox.

    There was also a corresponding expectation in a faster response because of the convenience. So what did we lose? We lost time. If we think about CNN and other 24 hour news channels, it is easy to see what was lost through immediacy:

    • Editorial space to make sense of things
    • Analysis rather than talking heads
    • A bigger perspective rather than just ‘the now’, all the time

    In agencies, the situation was rather similar. I was chatting to a senior person in client services at a major advertising agency. To paraphrase that they said: client service was better without email. Why? Because:

    • It gave them time to get things done
    • To make things happen
    • To investigate the best options
    • To craft an appropriate considered response that would be to the benefit of all parties
    • It allowed emotional reactions on all side to subside
    • To get the bigger picture in a way that isn’t possible to the same extent now

    Instead things get escalated to senior executives so they can be talked about in-person or over the phone.

    Technological snake oil

    Having started my agency career working in the technology sector, I have a good idea of how the sales cycle works. Each new generation vendor finds ways to deal with unintended consequences of the past. The rationales have generally stayed the same.

    • Productivity – but they often mistake productivity for the illusion of immediacy. Something happening now! It doesn’t matter what it is, but the feeling that something’s moving
    • Speed (or agility) – the idea that immediacy engenders some sort of superior performance in a reinvention of Taylorism for bureaucracy
    • Scalability – that it will cater with no growing pains for any size of organisation
    • Reliability – it will work regardless of whatever happens… until it doesn’t. It creates the illusion that it isn’t the system thats wrong, but the individuals. The reality is that the process design in the application usually doesn’t capture all scenarios

    In communications there has been a plethora of systems.

    • Digital All-In-One
    • WordPerfect Office
    • Microsoft Office
    • Novell NetWare and GroupWise
    • Microsoft Exchange and Office
    • Lotus Notes
    • Oracle BeeHive

    Slack is the latest in a long line of collaborative tools. But it spreads the communications like peanut butter rather than reducing to an optimal level of information. This is not Slack’s problem. For what it is, its a well designed application. The problem is that we still think immediacy is cardinal.

  • Is Brexit bad for Europe + more

    Judy Asks: Is Brexit Bad for Europe? – Carnegie Europe – Carnegie Endowment for International Peace – interesting take on Brexit from a US perspective. Is Brexit bad for Europe focuses on the EUs role on the world stage including regional and global security. According to my reading of Is Brexit bad for Europe there looks to be opportunities to grow in defence research and development and upgrade the economic performance of the EUs smaller nations.

    5G Deployment State of Play in Europe, USA and Asia | European Parliament ITRE Committee – interesting snapshot on 5G adoption across the EU (PDF)

    Microsoft worked with Chinese military university on artificial intelligence | Financial Times – US worried about dual use of the technology (paywall)

    Toyota will put Tundra, Tacoma trucks on a single platform, report says – Roadshow – interesting that Toyota is embracing the Volkswagen Group approach to vehicle engineering. I didn’t realise that Toyota no longer sells the Hilux in the US, apparently its because it isn’t big enough

    Panda TV’s demise makes way for gaming giant Tencent to dominate live streaming too | SCMP – China’s Twitch goes under, leaving Tencent to dominate live streaming too. This reinforces the oligarchy running China’s online sector from financial services and e-tailing to gaming and media

    DJ Craze: “Sync is your friend… embrace technology” – News – Mixmag – wow, controversial. This is the reformation of the DJ world. The problem with these things is that once people know the button is there new DJs will skip the valuable learning process of beat mixing

    Facebook ‘morally bankrupt pathological liars’, says NZ privacy commissioner – AdNews – 5 I’s pattern starting to emerge on Facebook. You take this stance with the UK’s proposal to treat social networks as publishers and Australia’s daft views on crypto. There are lots of reasons to criticise Facebook, but this isn’t one of them. Instead its cynical pandering to the populist political peanut gallery. More related content here.

  • Automata EVA launch

    Automata EVA launched the other week and I got to go along to their headquarters just off the Pentonville Road to find out more.

    Untitled

    Automata EVA first impressions

    At £5,000, the Automata EVA sits at a weird place in robot manufacture. It’s an expensive hobby device or a lightweight industrial product. Automata freely admitted that they sit somewhere between the £1,500 hobbyist kits and starter industrial models that are £20,000+ excluding arm tools, programmable control units and everything else required.

    Automata EVA human friendly product design reminded me a bit of early Apple Macs. Their very product design sophistication made them look like ‘toys’ in the eyes of IT departments. Automata’s EVA is an equally polished appliance as robot and it might take a bit more effort to have it taken seriously in light industrial roles.

    EVA even has a lopsided Picasso-esque face with two buttons on the top of the arm in a vertical manner.

    Untitled

    Maybe it needs a different colour palette of heavy plant yellow or yellow and black diagonal stripes better telegraph its industrial credentials.

    The shadow of Brexit

    Brexit afflicted sectors such as food preparation seem to be some of the people who have started to explore using Automata and rivals already. The companies realise that it will hard to get further workers from the likes of Stoke on Trent or Sunderland working on sandwich production lines. Robots are part of their plans to replace labour who decide to leave the UK. Automata assemble their robots in the UK, but their supply chain partners are half way around the world in Asia.

    Pain is the mother of invention

    The founders story reminded me a lot of the way that machine learning projects have historically been sold into clients by creative, digital and advertising agencies.

    They used to work for Zaha Hadid Architects and had used algorithmic design. This gave Hadid’s work abstract yet organic lines. So when they were looking to use a series of interlocking panels, they expected that these could be mass-made and bent by robotics.

    A bit like strategy and client services teams in agencies they over-estimated the capability of technology; in their case industrial robotics.

    That plan didn’t go too well. Which got them interested in why there weren’t light industrial robotics. A good number of years later and the Automata EVA was born.

    Industry robotics industry structure

    What really surprised me was how industrial robots essentially use the same components and innovation tends to happen in the software instead. For instance industrial robots use a compact way of strain wave gearing.

    Only a few companies make the components. This means that the industry is very horizontally structured like the PC or smartphone industries relationship between processor and software manufacturers.

    Robots are already accurate enough to get rid of workers who don’t care

    One of the case studies used in the presentation was about an industrial electronics company who replaced a human work station that did some pretty basic soldering.

    For reasons that one could assume to be a lack of work ethic. By contrast Foxconn, seems to have failed in its efforts of using robots for smartphone assembly. The reason is that they require a high degree of dexterity, rather like a watch maker. Robots still struggle with very accurate placement, but a lot of low volume manufacturing tasks don’t necessarily need the same level of accuracy.

  • UN Huawei + more things

    UN Huawei must be given equal opportunity to bid for 5G business | total telecomHoulin Zhao, secretary general of the International Telecommunications Union, told reporters from Reuters that 5G security remained of paramount importance but that there was no evidence to suggest that the use of Huawei’s network equipment should be restricted – the hasn’t read the UK government report on Huawei security flaws – the coincidence that Mr Zhao is Chinese is overlooked in the article. This also ignores issues around Huawei software engineering across its product range of network equipment with extensive backdoors built in that Huawei refuses to remove. The UN Huawei statement highlights the declining trust in UN bodies that have undergone state capture by China. More related content here.

    Apple’s Computer Vision Team is working on using Depth-based Touch Detection for Games & Virtual Keyboards – Patently Apple – depth based touch detection is important beyond the Minority Report style virtual keyboard interface. It could allow Apple engineers to design completely new ways of processing locative and contextual information mapped on the real world. It also means that we’re likely to be doing embarrassing gestures in the future. We will be closer to the idea of a web-of-no-web where the boundaries between the real world and the digital world are blurred and in some cases merged.

    Burger King under fire for ‘racist’ Vietnamese chopsticks ad | The Drum – really surprised Burger King made this mistake so close after the Dolce & Gabbana China debacle. One key consideration is that Yum Brands China that owns Burger King and KFC in China is a completely separate business. So Burger King might not be a truly global learning organisation. This happened in one of Burger King’s smallest markets – New Zealand is which is probably why it managed to sail under the radar of global brand vetting until it was too late.

  • China is the big winner + more things

    China is the big winner from Europe’s Brexit chaos – which is probably why the UK will get a shitty deal in phase II. China is the big winner because:

    • It ensures its inbound investment into the UK becomes more important. China can have more influence and spend less money proportionally than they had to do before
    • It weakens the EU a bit, in particular amplifying the power of just two partners in the bloc: France and Germany. It means that the northern bloc including the Netherlands has less of a voice in the union creating opportunity for division
    • European power projection is reduced. As is European soft power
    • China is the big winner, but Russia also has similar benefits on a smaller scale

    More on Brexit here.

    McDonalds acquires Israeli company Dynamic Yield | Silicon Angle – really interesting purchase by McDonalds

    Naspers to Separate Tencent Stake, Web Assets in Dutch Listing – Bloomberg – this is just the kind of listing one would have expected in London

    Michael Avenatti charged for attempted extortion of Nike – Business Insider – interesting how a celebrity level lawyer is on the end of this case

    The World’s 50 Most Innovative Companies of 2019 | Fast Company – interesting how APAC companies are at the very top

    LOEWE on Instagram: “When @danielnorris18 is not playing baseball, he loves to climb into his van and hit the open road. Wearing the new #EYELOEWENATURE…” – interesting where Loewe is going with this campaign, crossing the lines between sports marketing, streetwear and luxury

    Materials science is helping to transform China into a high-tech economy – technique-wise very similar to the west. Back over 20 years ago we weren’t using brute force in the labs I worked in but computer-assisted formulations. You did some trials, put the results in. Put in the desired results and then the computer worked to bring you towards an optional formulation using fourier analysis

    Pinterest’s IPO filing, annotated – Digiday – nicely put together if no suprises, worthwhile as a reference / 101