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.

  • 6 things learned in a corporate environment

    The idea for 6 things learned  in a corporate environment came from having spent four months working day-in, day-out onsite at a large corporate.

      • The working environment is very different to an agency. My desk had to become much more portable. Since the space was all hot-desking with only team PAs assigned permanent desks.  This meant no reference charts stuck up or post-its around the monitor. Instead I boiled my process down to the laptop, a notebook that acted as my organisation memory and a day book that focused on my tasks. That was it, no further paper work
      • Many of the traditional spaces for memos weren’t available. So the back of a toilet door with its regularly updated notices was a lifeline to what was happening where. The coffee machine, once a traditional networking point was less useful as hot desking meant that your serendipitous meetings are random in nature. They often lack the depth of what you have an agency environment. These aren’t shallow people, its a level of impermanence built into the working space
      • The importance of mobile was brought home to me. Each desk space had a phone. You keyed in your number and a PIN and your direct dial number moved with you. But 20 per cent of these phones were out of action at any given time. This wasn’t a problem as people tended to use their mobile phones a lot. We used to talk a lot, over bridged conference call numbers. You would see people on calls pacing the floor listening and talking on their calls via headsets plugged into their mobile handsets. For the first few minutes it feels slightly weird
      • Sustainability and being environmentally friendly were more than having a prominent recycling bin. There is an application that reminded me any time I printed something just how bad I was for the environment. Being green was thoughtfully built into processes rather than bolted on as an afterthought
      • Admittedly, my time at Yahoo! was in a very different company and culture, but being a client is very much a team sport. You only have a limited amount of control, a lot of work has to be done by consensus and through a process. You feel like a very small cog in that process and every small gain was an appreciable win. Making this happen takes up an inordinate amount of time
      • It seemed to be timely when writing this post that I read this article Silicon Valley Has Not Saved Us From a Productivity Slowdown – The New York Times – new enterprise software like Workday is still as reassuring clunky as their forebears. Many of the same problems of collaboration and information sharing are still being resolved

    What other things learned in a corporate environment have you come across?

  • Advertising isn’t the problem, telecoms are

    Advertising isn’t the problem with ad blockers, at least not the sole problem. A few days ago I explained why I thought that tracking was the problem that ad blockers are designed to deal with. From a consumer point-of-view the time it takes to load a page is unacceptable for a significant minority of internet users.

    This comes at a time when mobile telecommunications services have become commoditised. For £29/month I get unlimited data, unlimited SMS texts, unlimited voice, free roaming across a number of countries around the world and 8GB of data when my phone is used as a modem for a laptop.

    So how could a mobile carrier upsell me? The answer lies in going back to the late 1990s. In the UK, there used to be a mobile carrier called one2one. The service provider had a poor network, but needed to engage with business users and tech forward consumers. They did this with series of tariffs under the Precept brand. These tariffs had a couple of differentiated services in common:

    • A shorter gap between replacement handsets
    • A priority and normal number, so that you could prioritise callers
    • Improved voice quality using a better Codec called Enhanced Full Rate or EFR

    Move forward the best part of two decades – handsets are now affordable to be purchased upfront for tech forward consumers, though Apple and Samsung looking to duplicate the car leasing model in the US. They are likely to roll it out internationally at some point.

    The equivalent of priority numbers is multiple identities or accounts, differentiation that steps out of the mobile provider remit and into services provided via applications, for instance multiple email addresses.

    Voice calls are becoming increasingly disinter-mediated through OTT messaging services.  But ad-blocking on the network level offer a clear analog to the deployment of EFR, providing faster page load times for web content.

    There are also benefits in terms of network utilisation and bandwidth capacity. This is especially important in countries like the UK where it is nigh on impossible to get planning permission for mobile masts due to consumer protests. But the most attractive part of ad blocking at the network is the product differentiation it affords mobile providers.

    More information

    Advertising isn’t the problem with ad-blockers | renaissance chambara
    UK Gov’t Launches Anti-Adblocking Initiative, Compares It To Piracy | Slashdot
    Three Group to tackle excessive and irrelevant mobile ads | Three UK media centre
    One 2 One offers free daytime calls and souped-up GSM | V3
    The UK’s £150m Mobile Infrastructure Project “not as successful as envisaged” | TelecomTV

  • MWC 2016 as a case study on talkability, brand mentions and brand performance

    Mobile World Congress (or in industry parlance MWC 2016) is where the telecoms industry goes to set out its stand. It has gradually changed from being a conference where the big issues of the day are hashed out, to more of a trade show a la CES or CeBIT.

    From a brand point of view, it was of interest to me for two reasons:

    • It offers largely culture neutral brand discussions, many of which occur online
    • I have an interest, having worked on a few mobile brands during my agency career (Palm, Ericsson, Verizon Wireless, Samsung, Qualcomm, Telenor Myanmar and Huawei)

    I pulled this slide ware together for a talk I am giving at an internal event at an agency.

    The first data that I have put together is looking at the amount of mentions that occurred regardless of the channel. It is a relatively easy data point to pull out of monitoring systems very quickly.

    Obviously the value of mentions will depend on how many people view them, what is the context that the mention appears in. What was the content around it? Who said it, are they expert or trustworthy? So looking purely at the number of mentions would be crude, offering little value apart from nice PowerPoint slides.

    Breaking the mentions down by platform gives an idea of relative marketing communications competencies of brands. So looking at Huawei and Xiaomi shows contrasting approach to building talkability and conversations. Huawei focuses on traditional media channels where as Xiaomi focuses on social.

    By comparison LG and Samsung seem to have a more holistic approach.

    I then moved on beyond the mention data to try and look at relative authority of whoever mentioned the brand and looking at the relative distribution by brand and channel.

    I had done some initial analysis on the event in general here. These numbers showed how well brands had built high authority communities and the discussions around them.

    What was quite surprising was the polarised authority of mainstream media sources. Newswire syndication had destroyed authority of many online traditional media channels. A second cross brand observation was the relatively low authority of the blogosphere.

    These slides only start to delve into understanding talkability and are time consuming to create in comparison to looking at raw mention numbers, but offer superior strategic insight for both earned and paid media approaches for future launches.

    I did some broad profiling of online conversations around MWC here.

  • Monster Hunt & more news

    Monster Hunt

    China’s highest-grossing film of all time Monster Hunt flops in US, takes in $21,000 during opening weekend: Shanghaiist – interesting that they didn’t bother to put some marketing wallop behind Monster Hunt, they had enough time to do a good English dub (great way to get Asian Americans on board) and push it out to a more general audience in the US. It would have been a great China soft power vehicle. Instead a China soft power opportunity was lost.

    Then there is the other view, that Monster Hunt performed to expectations. There is a possibility that its Chinese ticket sales were inflated. I and others that I know have gone to see a western film on more than one occasion in a Chinese cinema. The ticket is rang out as a local film and then the screen number is crossed out and the western movie screen number written on by the assistant.

    Secondly, Monster Hunt didn’t spawn a Toy Story-esque merchandise avalanche in China and other Asian markets. Which indicates it wasn’t that much of a cultural moment and ergo, not as successful as one would believe. More China related posts here.

    Consumer behaviour

    Blu-ray Isn’t Going Anywhere – Park Associates – interesting demographic pattern of ownership – “Owners have higher incomes than the overall broadband household population as well as a strong preference for the highest-quality video.

    Hillary Clinton is losing young voters to Bernie Sanders. | Slate – not scientific but interesting. It also gives an interesting viewpoint on Corbyn’s political chances.

    Design

    Arriving at San Francisco – interesting delve into Apple’s new system font. Unfortunately I can’t download it in a format to use it in documents

    Gadgets

    StarTech Unveils Dual-Display Thunderbolt 2 Docking Station with 12 Ports – AnandTech – this looks like all my peripheral prayers were answered. I ended up with two of these. They work well for handling by two Apple Cinema displays

    Ideas

    Who Killed Nokia? Nokia Did | INSEAD Alumni Magazine – Despite being an exemplar of strategic agility, the fearful emotional climate prevailing at Nokia during the rise of the iPhone froze coordination between top and middle managers

    Why Yahoo Couldn’t Adapt to the Smartphone Era – The New Yorker – the irony is that they got on mobile services early. Yahoo! Go had been launched when I was there at the beginning of 2006. It was a one stop shop to search, access email, share photos on Flickr, get news and access Yahoo! Finance. Christian Lindholm was at Yahoo! back then. He was the director in charge of the S60 operating system interface at Nokia prior to

    Innovation

    LLVM Patches Confirm Google Has Its Own In-House Processor – Phoronix – interesting that they have a custom processor, it is related to their internal network infrastructure

    Media

    Why Jeep’s $10M Super Bowl Ad Only Used a Third of the Screen | WIRED – interesting example of online considerations driving TV creative decisions – mobile devices

    Telemundo to Build New $250 Million Miami Headquarters – The Wrap – which indicates how big the Latin media market is

    On the hypothetical eventuality of no more free internet – FT – interesting discussion of Internet economics and how it relates to  the commons (paywall)

    CBS Says Super Bowl 50 Broke Streaming Records With 3.96 Million Unique Viewers | TechCrunch – which is still relatively small compared to broadcast TV audiences for major events such as this

    Online

    Akamai earnings call hints at Apple CDN – Business Insider – not terribly surprising, Akamai has strategic partnerships with Apple rivals as well. Akamai earnings hint at the service’s ubiquity

    Security

    US intelligence chief: we might use the internet of things to spy on you | Technology | The Guardian – not terribly surprising, each technological frontier represents opportunities and IoT won’t be any different in that respect. The very pervasiveness of IoT is what makes it such a security risk

    Singapore

    Come to Singapore! The Sights (And Branding) Are Lovely | WIRED – it feels very Monocle-esque content on Singapore

    Web of no web

    This Google app could forever change the way you travel – Google’s translation app has a new feature that will come in handy for travelers. You point your smartphone’s camera at a sign printed in a foreign language, and Google’s translation technology

  • What does ZBB mean for agencies?

    After talking with a friend I pulled together a brief presentation for them which explained what Zero Based Budgeting (ZBB) practices at a client were likely to mean for an agency.

    The key takeout for me are is one of attitude. ZBB isn’t about cost cutting but about spending the money in the most effective way,  where it matters the most. ZBB has benefits that can applied outside marketing on complex projects. 

    And there in lies the problem with the way ZBB has been adapted by some consumer brands. Looking from the outside in at 3G Capital and its work at Kraft and Heinz brands, it seems that ZBB is being used for short term cost cutting, rather than resource allocation. 

    Whilst this might be justified in terms of Jack Welsh-style shareholder value. The reality is short term pay-offs robbing long term potential. This is what happens when you let finance focused MBA graduates a la Scrooge McDuck attempt to do a brand marketers job. What looks good on their spreadsheet looks retarded when viewed through the lens of marketing science

    For agencies, ZBB means that the client is making an active effort to keep marketing thinking fresh. It means a pragmatic approach to innovation based on benefit rather than running around screaming innovation. 

    It also means knowing when you’re not the right agency for the job and having partners that you can work with. Which is why we’ve seen ad agencies like Mullen Lowe bulk up on digital and earned media chops. Finally if you see that your client is using ZBB just to cut, cut, cut. Plan for another client because at least one of two things are happening:

    • You aren’t coming up with ideas that meet the needs of the business, so ZBB dictates that investment will be moved away from your programmes
    • The client has a short-termist mindset in using ZBB. You might not be in danger of losing your business, but they might be in danger of losing theirs to the competition