Category: online | 線上 | 온라인으로 | オンライン

The online field has been one of the mainstays since I started writing online in 2003. My act of writing online was partly to understand online as a medium.

Online has changed in nature. It was first a destination and plane of travel. Early netizens saw it as virgin frontier territory, rather like the early American pioneers viewed the open vistas of the western United States. Or later travellers moving west into the newly developing cities and towns from San Francisco to Los Angeles.

America might now be fenced in and the land claimed, but there was a new boundless electronic frontier out there. As the frontier grew more people dialled up to log into it. Then there was the metaphor of web surfing. Surfing the internet as a phrase was popularised by computer programmer Mark McCahill. He saw it as a clear analogue to ‘channel surfing’ changing from station to station on a television set because nothing grabs your attention.

Web surfing tapped into the line of travel and 1990s cool. Surfing like all extreme sport at the time was cool. And the internet grabbed your attention.

Broadband access, wi-fi and mobile data changed the nature of things. It altered what was consumed and where it was consumed. The sitting room TV was connected to the internet to receive content from download and streaming services. Online radio, podcasts and playlists supplanted the transistor radio in the kitchen.

Multi-screening became a thing, tweeting along real time opinions to reality TV and live current affairs programmes. Online became a wrapper that at its worst envelopes us in a media miasma of shrill voices, vacuous content and disinformation.

  • Digital experiences & functionalism

    This post on digital experiences sprang out of my going through images on Flickr. I was looking at pictures that I had taken of products designed by Dieter Rams like the Vitsœ 606 shelving system and his work at Braun on the service. Rams’ approach to industrial design was part of the functionalism movement where the look of a product is dictated by what the object does. In architecture this was used as an excuse to build rough-looking buildings with little aesthetic appeal.  This partly explains by a number of the leading thinkers in modern architecture have taken a ‘user’ hostile approach to their designs, washing their hands of  having to think about form in their process at all.
    Braun SK1 radio

    The Braun SK1 radio designed by Dieter Rams

    Rams approach to design had quality very much at the centre of it, so his work has as much to do with the ethics and principles of traditional Japanese design as it had with a modern movement. I got into this chain of thought because digital largely fails to mirror the good design that Rams has done in the analogue age. Rams in an interview for the documentary Objectified says that Apple seems to be only modern company that subscribes to his principles of good design, or takes design as seriously as he did.
    Braun desk fan from the early 1960s

    So why are digital experiences failing to match the best analogue examples of product design? I have some ideas, but I wouldn’t pretend to think that they are definitive answer to the question.

    Horizontal industry structure affects design thinking

    When geeks wore ties, polyester shirts and pocket protectors technology companies used to make the hardware and the software and digital experiences that went with them. Economies of scale and standardisation brought about a business computing environment based on Microsoft operating systems and Intel X86 processors. The exceptions to this being a small amount of powerful UNIX workstations and Apple’s range of Macintosh computers. In web services it splits up via hosting and APIs at the very least. This tends to be very different to many manufacturing processes and leaves designers with a sense that they have comparatively little control over their devices. It also means that the point of interface between designs: like how to interact with the software is dictated by the software partner, not the device manufacturer. In digital services, the terms of service of the API limit the power and design choices made.

    Design isn’t taken seriously

    In hardware manufacturing businesses work with manufacturers like Foxconn Technology Group. These manufacturers have moved up the value chain doing more and more of the work around the product including design now. There are few manufacturers that keep much of that work in-house. Reference designs make tooling easier, give component manufacturers more power and allow the client get to market faster. But they are going to market with a commoditised offering. This isn’t a new phenomena: JVC used to make VHS video recorders for Ferguson under the Videostar name with only the branding changing some 3o years ago.

    Outsourcing design implies that the process isn’t core to the value proposition of the business, and that’s a shame.

    Focus on the ingredients rather than the cake

    If you look at the marketing of mobile and computing devices the adverts often read like a parts list rather than a marketing brochure. How many car magazines publish articles showing the components that make up the engine, who they are manufactured by and how much the car would have cost? How would really care about which brand of air filter the engine used? Yet tear-downs are an important part of consumer electronics coverage now. The focus on the ingredients probably started as a way for manufacturers to take some control of their own product as part of the horizontal industry eco-system; but now it has become a fetish. A great micro-processor is often not enough to make a phone great when consumers choose on all-up experience.

    It isn’t only hardware manufacturers who do this. When I worked in-house for Yahoo!; the company launched lots of different search products to try and get feature parity with Google’s offerings. They were good products but the consumers still stayed away in droves; mainly because it wasn’t enough to be just like Google. If the company had carved its own path the future may have been very different.

    Quality is relative

    If you think about buying a new car or a fridge-freezer being told that you could use it, but it wasn’t fully finished and would be subject to considerable change – you would be very worried  and I wouldn’t blame you. However software and services change, sometimes quite dramatically. It means that quality means something very different in the digital world, compared to the world that you and I live in. There is no ‘getting things right first time’ and there is a mentality of impermanence, the idea that anything can be fixed.

    The user case is malleable

    The malleable nature of digital services and applications mean that the user case may not have even been dreamt up at the design stage. Thinking for a moment about Twitter, it has morphed into an extremely dynamic system of interactions:

    • The hashtag accompanies events acting as a public ‘back channel’ where previously the technologically savvy would have used IRC (internet relay chat)  and the rest of us probably were oblivious to it all
    • It has raised money for charities, and has been directly responsible for helping Dell to sell refurbished computers
    • It has been the rallying point for political action
    • It is history in the making as the Library of Congress has been archiving tweets

    Given those vast differences it is understandable why it’s hard to design for use cases and hard to get great digital experiences.

  • In The Plex by Steven Levy

    I bought In The Plex automatically because I had previously read and enjoyed Levy’s previous works: Insanely Great, Hackers and Crypto. Given his heritage covering technology companies and personalities as both an author and a journalist, I was curious what he would make of Google.

    The book is expansive and provides a lot of additional colour around Google, some of which I found of interest as I had worked at Yahoo! competing against Google and working with some of the early darlings of the web 2.0 movement – Flickr and Delicious. There were a couple of things that surprised me such as Google’s use of machine learning on areas like translation explained why grammar is still so bad in this area as it needs heuristics that lexicographers could provide similar to that offered by Crystal Semantics.

    Overall it was interesting to see that as with most large organisations Google is not only fallible but run through with realpolitik and a fair bit of serendipity. This contrasts with the external perception of Google as the technological Übermensch. A classic example of this is the series of missteps Google made whilst competing in China, which are documented in the book. From staffing practices, promotional tactics and legal to technology; Google blew it’s chances and Baidu did a better job.

    As an aside it was interesting to note that Google used queries on rival search engines to try and work out how to comply with Chinese government regulations, which is eerily like bad practices that Google accused Bing of last February in ‘hiybbprqag’-gate.

    There is a curious myopia that runs through a lot of later Google product thinking that reminded me of the reality and perceptions that I was aware of existing inside Microsoft from the contact I have had with the organisation through the various different agencies I have worked at. A classic example of this is the Google view of a file-less future, which by implication assumes that people won’t have legacy documents or use services other than the Google cloud. It is a myopia that comes part of arrogance and a patronising attitude towards the consumer that Google always knows best about every aspect of their needs.

    Contrast this with Apple and iTunes. Whilst Apple would like to sell you only content from the iTunes store, it recognises that you will have content from different sources: Amazon MP3s, ripped CDs, podcasts and self-created files that iTunes needs to play nicely with.

    The ‘no files’ approach assumes ubiquitous bandwidth which is likely to be a fiction for a while. (Part of the reason why I am able to write this post is that I was stuck for half-a-day on a train journey to Wales enjoying patchy mobile phone coverage and a wi-fi free environment, which allowed me to focus on reading this book in hardback).  This approach smacks of the old data lock-in that Microsoft used to have with proprietary file formats for its Office documents.

    Levy does a good job pulling all of this together and chronicling Google, but In The Plex fails to cast a critical eye over it all. I suspect that this is because he is too close to the company: the access that he gained enveloped him. Which is a shame as all the experience and insight Levy could bring to the book that would add value to the reader is omitted. Whilst In The Plex is an interesting historical document, it could be so much more. More book reviews can be found here.

  • Carol Bartz + Microsoft Excel

    Carol Bartz

    I started thinking about this post when I was reading Bob Cringely’s excellent analysis of Carol Bartz tenure at Yahoo!. I am not going to add my full analysis here but instead pull on a strand that highlights problems that exist at a number of internet companies and certainly existed at Yahoo! when I was there.
    Yahoo! star
    Part of the thought process that got me on the trail of this post was that it reminded me of the introduction to Cringely’s Accidental Empires book written in the 1991:

    … PCs killed the office typewriter, made most secretaries obsolete, and made it possible for a 27-year-old M.B.A. with a PC, a spreadsheet program, and three pieces of questionable data to talk his bosses into looting the company pension plan and doing a leveraged buy-out.

    Spreadsheets and the business models inside them can be extremely powerful business tools and also weapons of mass destruction.

    Powerful Business Tools

    Firstly about the power of spreadsheets and their models in an internet business. Whilst at Yahoo!, my former colleague Salim used to be able to take the first few months traffic figures for the search business and provide a pretty accurate forecast of what the rest of the year looked like. That could be further extrapolated into reasonable revenue projections based on average conversion rates and cost-per-click values. Pretty handy for a business that relied on the fickle general public.

    Weapons of Mass Destruction

    Efficiency and innovation

    Accounting models are often used to make cuts in terms of manpower. What they fail to do however is ensure that the cuts are sufficiently surgical. This is less of an issue in a conventional manufacturing setting where there is likely to be a degree of redundancy in skills due to process design. Business management theory and analytical tools came out of this industrial age. Software and web services follow much more of an artisan model – great coders like mathematicians can find elegant solutions to problems through intuitive leaps forward.

    Although there is a large amount of outsourcing to cheaper countries, many successful breakout products or features are developed by small teams or even individuals for example:

    • Andy Hertzfield – the MacOS QuickDraw 2D graphics library that has been used for over 25 years and is only now being phased out in the latest versions of OSX
    • Cal Henderson and Stewart Butterfield – Flickr and Glitch
    • Joshua Schachter – Delicious
    • Linus Torvalds – Linux kernel

    However spreadsheet models often don’t recognise who these rock-stars are.

    What this means is that in a time of cuts the very people who could drive the innovation that would fuel future growth are let go or choose to leave because their area has been hacked to pieces. A classic example of this under Carol Bartz was the Flickr team: George Oates was let go and others like Paul Hammond, Seth Fitzsimmons, and Matthew Rothenberg departed.

    Carol Bartz quite rightly once said that ‘you can’t cut yourself to growth‘, but you can’t outsource it in the longer term, you also need the tinkerers and the thinkers in the organisation creating the innovation seed corn to drive that future growth. There doesn’t seem to be a spreadsheet model that takes adequate account of this.

    Niches versus the mainstream

    Back when I worked at Yahoo! there was an inordinate amount of attention paid to the number of unique users that properties got. This is important for a service like search that is universal in its appeal, but a general purpose metric like unique users falls down flat for many other properties that have a specific context around it.

    Let’s look at three examples:

    • In the West, Yahoo! Answers has a substantial user base of unique users, but a quick look at Google Adplanner shows that this user base is skewed to lower socioeconomic groups who are time-rich, but cash poor. This means that it could be hard to sell advertising inventory to many brands and the corresponding cost of inventory is likely to be cheaper
    • Yahoo! image service Flickr, has far less pictures than Facebook; but it is a highly engaged community of people passionate about photography and the creative classes. Facebook is like the digital equivalent of Prontaprint – who used to publish their film envelopes in local newspapers and develop the general public’s holiday snaps. This means you could charge more for the service, which is why Flickr has a freemium offering and come up with creative marketing packages for advertisers
    • Social bookmarking pioneer Delicious was a slow growing property beloved of geeks and the creative classes. Attractive both because  of its audience’s demographics but also the level of insight available from the data that these people provide voluntarily. A creative marketing vehicle similar in nature to Twitter’s promoted tweets has the potential to be a premium-priced product for advertisers

    However using spreadsheet models with metrics that lack distinction Yahoo! Answers looks like a great product whilst Delicious and Flickr look marginal at best. It is no coincidence that Flickr had an outflow of talent under Carol Bartz and Delicious was sold after a protracted period of uncertainty about the service’s future.

    Ultimately tools that can create a flawed understanding can be more damaging than no tools at all. Carol Bartz was brought into cut a business that she didn’t understand that well (it wasn’t anything like her previous roles) and had analytical tools at her disposal that weren’t sufficiently finessed for a modern information economy-based company. You add this to Bartz dogged personality and you can see at least part of the reason by she was not able to turn the company around. More related content can be found here.

    More links

    How not to run Yahoo! – I, Cringely
    Yahoo! Announces Leadership Reorganization – Yahoo!’s official statement

  • Funds of funds + more news

    Funds of Funds

    Funds of Funds May Actually Increase Risk, Study Finds – NYTimes.com – this feels counter-intuitive at first, until you realise that funds of funds are a synthetic financial instrument from the prospective of the end investor. Synthetic financial instruments led to problems like the 2008 financial crisis and the Savings and Loans crisis of the 1990s. The reason for the problem of funds of funds for the end investor is that there lots of known unknowns under the hood. It is conceivable that several funds make a similar wrong headed bet and get stung by it. Without directing the funds, how do you maintain continued diversity of investment and strategies to ensure the bet hedging. Lastly funds are less liquid assets in the grand scheme of things with limitations on when and how much you can withdraw. I wonder if a similar study has been done around thematic ETFs as well?

    Beauty

    At Makeup Alley, Advice From Online Peers – NYTimes.com – how user reviews are demolishing beauty treatment company claims and promoting other products that previously didn’t claim benefits

    Economics

    Wealthy Investors Grow Pessimistic About Economy – WSJ – US economy, due to government debt and economic growth

    Japan records surprise trade surplus – FT.com – rescheduling manufacturing work around power fluctuations

    Ethics

    danah boyd | apophenia » “Real Names” Policies Are an Abuse of Power

    A Billion Dollars Isn’t Cool. You Know What’s Cool? Basic Human Decency | TechCrunch – social norming around the social web

    Ideas

    Could Quantum Computing Kill Copyright? | TorrentFreak

    Korea

    Five Lessons From Samsung’s Second Quarter Results – WSJ – interesting that Samsung is husbanding its cash by reducing shareholder returns

    Luxury

    Second-Tier Spotlight: “Rich Second Generation” Fueling Ningbo Luxury Market « Jing Daily : The Business of Luxury and Culture in China – interesting divergence in consumer preferences

    Media

    To Spread Your Brand On Facebook, Don’t Target Your Fans–Target Their Friends | Fast Company – propagation planning

    More British papers dragged into hacking row ‹ Japan Today – not surprising, the practice may have started at the News of The World but could have been taken around the papers as journalists and editors move on to new roles

    Murdoch Selects Advisers Carefully – WSJ.com – it makes sense he needs a ‘clean’ team that can stay together through this

    Online

    danah boyd | apophenia » Designing for Social Norms (or How Not to Create Angry Mobs)

    With the Bing Search Engine, Microsoft Plays the Underdog – NYTimes.com – I am not seeing a cohesive vision to change search from Microsoft; this looks like the ‘we are innovative’ foot-stamping PR wrapped in a storytelling methodology that comes out of Microsoft corporate PR. I think that the social search stuff at Google and Facebook is of more interest. Bing needs to come out of the box with something 10 times better to get people to move in significant numbers. Qi Lu didn’t manage it at Yahoo!, what makes them think he can manage it at Microsoft?

    A Bomb in Oslo? What Google Lost by Ending Real-Time Search – The Atlantic – Google News just wasn’t as fast, it needs Realtime

    Official Google Blog: More wood behind fewer arrows – interesting change, more focus on fully formed products?

    Security

    Majority of South Koreans’ data exposed | FT.com – the interesting bit is the data wipe of PCs used in the attack to hide fingerprints

    Technology

    Data Centers Using Less Power Than Forecast, Report Says – NYTimes.com – green technology and virtualisation kicks in

    The Key Subtle Notes From Apple’s Earnings Call | TechCrunch – exclusives are doled out on the conference call without hype

    Wireless

    Apple Passes Nokia and Holds Off Samsung to Become World’s Top Smartphone Vendor [Updated] – Mac Rumors – Android is Toyota and Apple is Mercedes & Porsche

  • Facial recognition – ethics

    Former CEO Eric Schmidt made a big deal of facial recognition databases being the one technology that Google wouldn’t deploying as it is an ethical and privacy set too far. Face recognition is currently used in law enforcement situations from policing football matches to anti-terrorism detection and surveillance amongst crowds. Google does use a certain amount of face recognition technology in its Picasa photo-sharing application and has some patents on using facial recognition in a social network.

    Developments in face recognition technology are apparently taking place at a rapidly increasing pace according Schmidt, which means that even if Google doesn’t roll something out, others will, Facebook being the likely favourite.

    With geotagged images and video taken by smartphones, turning the world into a constantly surveiled system. There would be no privacy and few hiding places left. The idea of moving to a new town or city and reinventing yourself which young people do when they go to college or go and get their first job would fall at the first hurdle as your old life would be seamlessly sewn together to your new one online.

    The risk goes up considerably when you have battered spouses who have ran away or are looking escape a stalker.

    Google’s disinterest in face recognition could be seen as being more about dodging anti-trust regulations, particularly if this technology was merged with search. However once someone does it, Google will to be a reluctant but fast follower if it is to continue to compete in the online space, which probably explains why they bought PittPatt the other day and recently patented the use of facial recognition technology to pick famous people out of pictures (presumably to improve image search relevance). More related content can be found here.

    More information online

    One Counter To Schmidt’s Facial Recognition Claim | Stowe Boyd

    Google Acquires Facial Recognition Software Company PittPatt | Techcrunch

    Google warns against facial recognition database | The Telegraph

    Google Thinks Facial Recognition Is Very, Very Bad. Except Maybe For Famous People | Gizmodo

    Google debates face recognition technology | FT.com