Revolutionary Measures

The perils of celebrity endorsement

English: Stephen Hawking giving a lecture for ...

English: Stephen Hawking giving a lecture for NASA’s 50th anniversary (Photo credit: Wikipedia)

Intel must have thought it was onto a winner. Invest in building a new system to help Professor Stephen Hawking to speak, and not only does it get lots of media coverage (to help a good cause of course), but it also put one over on arch rival ARM by linking itself with Cambridge’s most famous living scientist.

Unfortunately, it hasn’t quite turned out like that. Headlines are dominated by Professor Hawking airing his worries that mankind will be threatened by the rise of artificial intelligence, with the machines (which Intel obviously makes the chips for) posing a threat to our very existence.

It isn’t the first time a big brand has been caught out by its chosen celebrity undermining its carefully thought out plans. Here’s another five that a quick Google search turned up:

1. Samsung and LeBron James
American basketball player LeBron James was unveiled as the face of the Samsung Galaxy Note III phone amid much fa

nfare. All was going well until he tweeted to his 12 million followers that his phone had just erased all his data and rebooted itself – hardly the message of reliability that Samsung was looking for.

2. Motorola and David Beckham
Another classic issue is a celebrity being caught using a competitor’s product. Sticking with sports stars, footballer Ronaldinho signed a lucrative deal with Coke – and was then caught on camera sipping from a can of Pepsi at a press conference. Not to be outdone, David Beckham lent his celebrity status to Motorola’s £14,000 Aura mobile phone, only to be snapped by paparazzi with an iPhone in his hand. He later claimed he’d been ‘holding it for a friend’.

3. Microsoft and Oprah Winfrey
At least Becks had an attempt at an excuse, unlike Oprah Winfrey. Paid to endorse Microsoft’s Surface tablet, she sent out a tweet extolling its virtues. Trouble was every tweet has the program and platform it was sent from automatically added on the bottom. So “Gotta say love that SURFACE!” was appended by the unfortunate words “sent via Twitter for iPad.”

4. Bacardi and Vinnie Jones
Ex-footballer and professional hardman Vinnie Jones was always a risky choice for an alcohol brand, as Bacardi found out to its cost. After using him as the face of the rum, he had to be hastily removed after he was convicted of a drunken assault on a flight from Heathrow to Tokyo. On a similar, but less dramatic note, car insurer Churchill dropped actor Martin Clunes after he lost his driving licence for speeding. Clunes may have complained, but he should have done his homework – previous star of the ads Vic Reeves was sacked after losing his licence for drink driving.

5. Yardley and Helena Bonham Carter
Perhaps the best example of a brand not doing its homework (and for sheer star insouciance) comes from actress Helena Bonham Carter. Chosen as the face of Yardley cosmetics she admitted in an interview that she rarely wore makeup and couldn’t understand why the brand had chosen her. The deal ended soon after.

All of this puts Professor Hawking (and Intel) in rather exalted company – demonstrating the perils of the celebrity endorsement, no matter how highbrow the name involved actually is.

December 3, 2014 Posted by | Cambridge, Creative, Marketing, PR | , , , , , , , , , , , , | Leave a comment

From startup to scale-up economy?

In previous blogs I’ve talked at length about the UK’s inability to turn a high enough percentage of tech startups into market leaders, compared to countries such as the USA. This may be changing, according to a new report from the Startup Europe Partnership (SEP). This identifies around 400 tech ‘scale-ups’ – essentially startups that have raised more than $1 million over the last three years. 70% of these received funding of between $1-$9 million, with 15 raising over $100m.

English: Map of Europe, indicating continental...

Taken at face value this looks like great news – investment is up and the UK is leading Europe when it comes to building viable, long term businesses. However dig a bit deeper into the data and some issues emerge. SEP is upfront that its research just covers what it calls ‘ICT’, and misses out biotech, cleantech and what it calls hard-tech (and there was me thinking all tech was hard).

So the lists of companies named are dominated by companies that essentially use the internet as a platform for their business – such as Wonga, Truphone, Funding Circle and white goods retailer AO World. All, with the exception of Wonga, solid companies that are expanding rapidly, but not really what I’d class as technology companies. The problem is that they tend to attract more capital, and consequently elbow the likes of Ubisense (which raised $14.5 million through its IPO in 2011) from the front page of the pretty graphs. And if you grow organically, without needing additional investment, you don’t show up at all.

Is this an issue? I think it is from both a perception and a valuation point of view. The general public ends up thinking of a startup as being something like Spotify or Just Eat, rather than a company that provides clever technology that may operate invisibly to them, supporting the wider digital economy. This can have a knock-on effect on press coverage, recruitment and ultimately the type of startups that are founded. Additionally investors are motivated by returns, and if they see that the payback is better with less technical, more consumer-focused businesses they are likely to invest accordingly.

It would be rude of me to sound like I’m completely knocking SEP. They are shining a light on the European tech sector and at the same time lobbying to increase the support that startups get, in particular by connecting the fragmented European tech economy. But, if we are to present the tech sector in the best possible light, we need to widen the discussion away from the flashier end of the market and embrace the difficult hardtech area. After all these are the ideas and companies that have the potential power to really change the way we live, work and play, and consequently deliver the biggest benefits to Europe as a whole. We need more ARMs, and fewer Wongas, and to start, more rigorous definitions of what a tech startup – or scale-up – actually is.

November 26, 2014 Posted by | Cambridge, Startup | , , , , , , , , , , , | Leave a comment

Will Apple take a bite out of Cambridge?

Rumours are currently rife that Apple is about to open an office, albeit a small one, in Cambridge. The research and development centre would initially employ 20 people, so while it is a coup for the city, it is obviously a drop in the ocean compared to the estimated 54,000 tech employees in Silicon Fen. I’d imagine more people currently work in the electronics department of the city’s John Lewis selling iPads and iPods.

English: Map of Cambridge dated 1575. The insc...

The move comes on the back of Qualcomm buying CSR, HP acquiring Autonomy and the opening of research and development centres by Microsoft and AstraZeneca in the area. Taken together these investments can be seen as a real demonstration of the importance of the ideas and skills within Cambridge – and, the potential benefits (business and PR) of associating with the Cambridge Phenomenon.

However, I think there are positive and negative sides to the interest from tech giants in Cambridge. On the plus side, it reaffirms the city’s strengths as a hub, attracts more skilled staff to the area and, in turn, spawns new startups as employees with ideas leave corporate life to launch out on their own.

But there are also two downsides that potentially impact the good news stories. Firstly, there is a risk that with big investment the tech culture can become too corporate. After all, a lot of Cambridge innovation has come from finding solutions to problems in quirky, very different ways. For example, Intel wouldn’t sell Acorn chips for its new range of computers. The company couldn’t afford to build a billion dollar factory to make its own chips, so came up with the first fabless design. Acorn spun off this knowledge as ARM, now Intel’s biggest competitor.

Before that Clive Sinclair built a scientific calculator that used clever algorithms to run calculations on a single, relatively standard chip. Rivals such as HP used five chips and consequently built machines that were much more expensive. The SureFlap microchip controlled cat flap was created by a physicist who didn’t want neighbourhood moggies invading his house. All of these are examples of the lateral thinking that Cambridge is famous for – but could potentially be stifled by corporate politics (and, ironically too much money).

However I think that while the Cambridge culture may change, it won’t unduly impact its DNA. After all, in Silicon Valley enormous behemoths and nimble startups co-exist with people moving between the two. What is more serious is the second threat of a lack of infrastructure, particularly affordable housing within the city and its locality. It is currently as expensive to live in Cambridge as in London, but with less in the way of facilities. There are plans to build 33,000 more houses by 2031, but the majority are outside the city. And if people live further out and commute by car, rather than bike, it will add to congestion and put further strain on key roads.

Obviously Apple’s 20 researchers aren’t going to add too greatly to current housing woes, but as Silicon Fen grows, now is the time to address infrastructure concerns – or risk losing the city’s status as a tech hub to better equipped rivals.

 

November 12, 2014 Posted by | Cambridge, Marketing, Startup | , , , , , , , , , , , , , | Leave a comment

Selling out too early

Cambridge is rightly highlighted as one of Europe’s biggest innovation hubs, particularly when it comes to commercialising ideas that began in the research lab. This has spawned a huge biotech sector, and helped create a series of billion dollar tech companies that lead their industries, such as ARM and Cambridge Silicon Radio (CSR).

The University of Cambridge has the largest un...

The Internet of Things (IoT) has been identified by many commentators as a key emerging market – and one where Cambridge has the ecosystem, experience and ideas to play a major role. So the news that IoT pioneer Neul has been sold to Chinese telecoms equipment behemoth Huawei depressed me. Not for nationalistic reasons, but simply due to the low reported purchase price ($25m) and the fact that the company has cashed out so early in the growth process. While there was a fair amount of PR spin around Neul’s progress to date, I genuinely believed it could join the billion dollar Cambridge club by developing its technology and building alliances and routes to market.

At the same time, Cambridge Silicon Radio is mulling a multi-billion pound sale to US firm Microchip Technology, reducing the number of major, independent, quoted Cambridge companies. Obviously investors and founders do look to realise their profits at some point, but it is important to balance this by looking longer term. While those that put money into Neul no doubt got a decent return, think how much more they’d have received if the company had been allowed to grow and exploit its market position.

I’m not alone in taking this stance. Cambridge Innovation Capital (CIC), the University of Cambridge-backed VC fund, recently warned its portfolio companies against selling out too early and promised to provide long term, founder friendly, capital to help grow the next ARMs and CSRs.

So what we need is the support, both financial and in terms of time, that gives companies the ability to achieve their potential. Not all of them will make it, and many will be niche players that logically fit better within bigger companies – but at least they’ll have had the ability to aim for the stars before finding their real place in the world. Otherwise Cambridge (and other parts of the UK tech scene), will simply act as incubators that turn bright ideas into viable businesses that can be snapped up and digested by tech giants looking for the newest innovation. It is much better for both the local and national economy that some of these startups make it the stock market as fully fledged businesses, creating ecosystems that generate new sectors and jobs. This requires longer term thinking from everyone involved – otherwise the number of billion dollar Cambridge companies will shrink even further.

October 1, 2014 Posted by | Cambridge, Marketing, Startup | , , , , , , , , , , , , , | 3 Comments

The Cambridge Cluster – what’s missing?

Cluster (IA)

As I’ve said before, startup clusters are springing up all over the place and that’s great. There’s even one in my village (population 3,000) – well, two startups and a group of support services, including myself.

Clusters encourage innovation, particularly through external economies of scale – i.e. by providing access to the people, resources and infrastructure that startups need but don’t have themselves. And the more startups there are in an area, the lower the price of these services as they are shared across a greater number of companies.

A lot of these clusters seem to be driven from outside, particularly as both central and local governments realise that startup clusters are (a) sexy and (b) cheap. Why not give them a small pot of money/some space/a patronising visit to show you’re supporting innovation?

So, putting cynicism aside, what does a startup cluster require – and how does Cambridge measure up? I’ve been looking at Brad Feld’s work on building a startup ecosystem, based on 20 years experience in Boulder, Colorado. The aptly named Boulder Thesis highlights four things that these communities must have:

  1. They should involve entrepreneurs and feeders (people/institutions like universities, government, venture capitalists, lawyers, PR people). BUT they have to be led by entrepreneurs if they are to truly take off.
  2. Long term. It can take 20 years to build a community, so entrepreneurs need to stick around, even if they’ve built and sold their company long ago. And the same goes for those that fail – encourage them to stick around.
  3. They need to be inclusive, welcoming anyone, no matter what their skills or ideas.
  4. They need to be active, with a range of events and accelerator programmes to help encourage and nurture startups.

That’s Boulder. Let’s compare it to Cambridge.

Firstly there’s a large community of entrepreneurs and feeders in the city (so a tick there) and entrepreneurs are taking a leading role. And given the longevity of the Silicon Fen success story there are plenty of long term entrepreneurs who have stuck around, from Hermann Hauser to Mike Lynch.

It’s the third and fourth points where I believe Cambridge has issues. Don’t get me wrong, there are some incredibly welcoming people in the Cambridge community and some great events/accelerators that nurture startups. But, perhaps because of the size and depth of the community, spanning everything from medtech to green IT, groups can appear disconnected, with everyone focused on their niche. Some of this may come from the research-led nature of many Cambridge innovations, but, even in academia, cross-discipline working is becoming more normal after centuries of specialism. Compare this to places such as Norwich, which has a smaller (but still substantial) startup community that seems more cohesive, with greater communication between disparate companies with radically different ideas.

What Cambridge does have, and that I think is missing from Feld’s thesis, is the combination of new and old blood. The universities, and increasingly tech businesses, attract talent, much of which stays on and contributes to the ecosystem. But enough leaves to make space for new ideas so that things don’t go stale.

So, in true end of term report style, Cambridge needs to try harder when it comes to building a cohesive, overarching supercluster. It has the constituent parts, but what is needed is stronger glue to stick it together and help connect the bigger picture. Let’s see if 2014 brings a solution to this long term problem.

December 11, 2013 Posted by | Cambridge, Startup | , , , , , , , , , , , , , , , | 1 Comment

The return of the BBC Micro?

BBC Micro left

This week BBC director general Tony Hall launched a slew of initiatives designed to reposition the beleaguered broadcaster. The aim is to show that the BBC is central to meeting the needs of consumers now and in the future, and to draw a line under an annus horribilis for the corporation, which has been plagued by scandals from Jimmy Savile to excessive payoffs for senior managers.

Amongst the news of a BBC One + 1 channel (by my maths that’s BBC Two), and expansion of iPlayer, one thing that caught my eye was a pledge to “bring coding into every home, business and school in the UK”. As someone who grew up in the 1980s it made me misty-eyed with nostalgia for the last time the BBC got involved in technology, with the original BBC Micro. Essentially the BBC put up the money for the machine to be given to every school in the UK, as well as producing TV programmes and courses on coding.

While I never had a BBC (I was a Sinclair Spectrum diehard), we used them in at school and it did help me learn to code. It really was a golden age for UK computing, as it introduced a generation to computers they could play games on, but equally program and learn with. Programming your own creations was a viable alternative to just treating these machines as games consoles – particularly as a Spectrum game took about 10 minutes to load (and often mysteriously crashed just before it should have started). I was incredibly proud of my amazing horse racing game (complete with betting and flickering graphics), even if my programming days are now long behind me.

Not only did the BBC/Spectrum age produce a generation that wasn’t afraid of coding, but it also helped shape the UK IT industry. Acorn, the makers of the BBC Micro, spawned ARM, now a world leader in chip design, while countless games companies developed from bedrooms into multi-million pound concerns. You could easily argue that Cambridge wouldn’t be the technology powerhouse it is today if it wasn’t for the BBC.

But then IT became marginalised as a school subject – essentially replaced with learning to use desktop applications rather than program. In a global economy where companies compete on knowledge, the need to rekindle that interest in coding has never been greater. The BBC is not the first to understand this – the Cambridge-designed Raspberry Pi has become a global phenomenon as it brings back the spirit of adventure and exploration to children weaned on iPads and Wiis. There’s also a new computer science curriculum for schools and coding courses are becoming increasingly popular across the UK.

So where does the BBC fit into this? There’s a lot of hyperbole in the announcement about “using world class TV, radio and online services to stimulate a national conversation about digital creativity”, but very little detail. The challenge for the BBC is to pitch whatever it offers in a way that doesn’t replicate what is being done in the private sector and doesn’t dumb down coding to a simple point and click level. As seen in the 1980s, the backing of the BBC can be a major force for good, but it could equally stifle the innovation and creativity that it is trying to encourage. The jury’s out, but I hope it can turn the undoubted niche success of the coding revival into a mainstream movement – working with the industry to create the Acorns and ARMs of tomorrow.

 

October 9, 2013 Posted by | Cambridge, Creative, Startup | , , , , , , , , , , , , , | 1 Comment

When to give up

failure

It used to be that failing in business was a potentially catastrophic black mark in the UK – essentially the end of your career. But over the last decade attitudes have changed, driven by a more American view that it is better to have tried and not succeeded than to not to have bothered at all. There are a thousand and one reasons that a venture might fail, many outside your control, and as long as you learn lessons you can bounce back stronger.

This more relaxed attitude to failure is reflected in the growth of startups in the UK. Rather than leave university and go and work in corporate Britain, setting up on your own is a viable choice – if it doesn’t work you can always try the 9 to 5 in a few years time. And as the Seth Godin quote goes, “If failure isn’t an option, neither is success.”

But if the stigma of failure has been removed it brings another big question – when do you give up on your idea/business? Do you shut up shop at the first signs of trouble or soldier on when all chances of success are gone? That was the topic of an entertaining discussion at last week’s Pitch and Mix in Cambridge, which got me thinking about the whole topic.

It is easy to look at businesses or individuals where it would have been easy to give up when they hit the first roadblock. Harvard made Mark Zuckerberg take down the first version of Facebook and nearly expelled him – but he learnt from the experience and moved on. In Cambridge, ARM was essentially created within Acorn as Intel wouldn’t sell the computer manufacturer the chips they needed. The business pivoted and is now a multi-billion dollar world leader.

What came out from the discussion were two main ways of helping you to know when you’ve really failed and it is time to give up.

Firstly, set realistic objectives and goals for your company/project, with a timeframe attached. It shouldn’t be a hundred page business plan that controls your life but an idea of what success looks like and the time it should take to get there. Whether as simple as “we need to have made our first sale in 18 months” or more complex, use it as a guide to when to stop. If you get to 18 months and there’s no sign of a customer then you should probably give up, but if you’re negotiating with a couple, then extend your timeframe. Build a plan to get to your objectives – what needs to happen for you to make that sale/launch the project within your timeframe.

Secondly, get independent advice. Everyone involved in startups must have passion – if you aren’t enthusiastic about the idea you won’t put in the hours to make it work. However perspective is more difficult – you are simply too close to the coalface to provide an objective view of reality. So find yourself an independent mentor, who understands your business and what you are trying to do and give you advice and perspective on the way forward.

More businesses fail than succeed, but don’t take it personally, learn and move on. And marry passion with perspective to work out when to throw in the towel and start again.

 

April 24, 2013 Posted by | Cambridge, Startup | , , , , , , , , , , , | 1 Comment

Farcebook and internet bubbles

Mark Zuckerberg, founder and CEO of Facebook

Mark Zuckerberg, founder and CEO of Facebook (Photo credit: Wikipedia)

I’ve found it difficult to watch the recent Facebook flotation, subsequent drop in share price and clamour of litigation without shouting “I TOLD YOU SO” at the top of my voice. Way before the flotation many analysts queried Facebook’s $100bn+ valuation given its relative lack of revenues but their voices were drowned in the hype. Just look at the number – with 1 billion users that’s a hefty premium per subscriber.

Obviously the growth statistics behind Facebook are impressive and there is still potential for it to grow in different areas around the world and by offering new services. But this is all potential rather than actual. A good comparison is Google – when it IPO’d in 2004 it had a valuation of $23 billion. Most of the services we now know Google for simply hadn’t been introduced, and the stock was priced according. Google has since increased its share value six-fold, giving it a market value of  $196 billion, helped by annual revenue of $39 billion.

There’s a decent chance that Facebook can ‘do a Google’ and monetise its users, probably through services that Mark Zuckerberg hasn’t even thought of yet. But equally it could languish in limbo in the same way as LinkedIn post-IPO without really demonstrating a vision for charging customers without losing them.

The bigger worry for me is that Facebook is continually held up by the likes of David Cameron as a posterboy for what British tech businesses should aspire to. And consequently we have a move to create frothy, social media driven businesses without clear business models, inevitably HQ’d in Tech City. It reminds me a lot of first generation dotcoms and the bandwagon that became. While some of these businesses may succeed, we need to look at what will create real value in the UK tech scene (the likes of ARM, CSR and Sage all spring to mind) and focus the best minds on solving real business problems rather than simply another cute network without any revenues.

So if the Farcebook float can change people’s perceptions that user numbers are good, revenues are not essential, then I think that’s a price that the gullible should have to pay. As the old saying goes, if it looks too good to be true, then it probably is.

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May 24, 2012 Posted by | Marketing, Social Media, Startup | , , , , , , , , , , | 3 Comments

Where’s the money going?

In a week that saw the publication of the long-awaited Cambridge Phenomenon book, celebrating 50 years of innovation in the area, some more sobering figures concerning continued investment have been published.

Punting in Cambridge, UK

Punting in Cambridge, UK (Photo credit: Wikipedia)

Research from tech-focused investment group Ascendant found that while generally VC investment is up in Q1 2012, money doesn’t seem to be coming to Cambridge. £307m was invested in tech companies in the UK and Ireland – with £188m going to London-based outfits, and £27m to Irish ones. Cambridge (and Oxford) saw very little new money.

While it can be misleading to generalise based on three months of data this could be a worrying trend as centralised government action to boost London’s Tech City draws potential funding (and talent) away from the Cambridge ecosystem. After all, as Rory Cellan-Jones points out in his BBC Blog, Cambridge has potentially a better chance of creating world-class tech companies than London as it has already developed an ecosystem with research at its heart to feed innovative ideas to the market. But investment funding for Cambridge is key – not just in ‘scientific’ spinouts such as Owlstone and ARM but the more internet-style businesses and the thriving cleantech sector that Cambridge also supports.

So how does Cambridge compete against the media-savvy Tech City community when it comes to gaining funding? I may be biased as a marketer, but really feel that public relations has a strong role to play. There is still a tendency amongst Cambridge startups to treat PR as an afterthought rather than an intrinsic part of how you create a company and drive its success. You need to know your audience and deliver the right message to it at the right time using language they understand to succeed. Otherwise the risk is that Cambridge will become seen solely as the domain of technical wizardry rather than as a driver of customer-focused innovation that leads the UK tech scene.

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May 16, 2012 Posted by | Cambridge, Marketing, PR, Startup | , , , , , , , , , , , , | 2 Comments

Transforming ideas over the weekend

Last weekend saw the first Idea Transform event, which aimed to uncover new ideas and projects that have the potential to change society for the better. As one of the founders of Idea Transform I’m obviously biased, but all the feedback I had was that everyone that came along learnt lots, worked hard in their teams and had fun at the same time.

Over 100 people attended the weekend in Cambridge, which saw ideas pitched on Friday evening and then teams formed to develop them before judging on Sunday evening. While four teams were selected as winners in the different categories of education, health, community and environment everyone deserves congratulations for the hard work and their achievements.

Rather than bang on about the success of the event, I’d like to share three things that stood out for me:

1              Amazing range of ideas
Over 25 ideas were pitched on Friday night, from mobile learning through technology to calibrate medical devices and an avatar for online clothes shopping. The nine teams that made it to the end of the weekend included charging electric vehicles through the road, experimental maths teaching and mobile phone based biometics. Not just apps and websites!

2              Commitment and support
For all these projects, the idea itself was just a start point. Thanks to their own hard work and the support of the team of experienced mentors, who gave up their weekends to help, projects had really progressed by Sunday evening and the final presentations were incredibly professional and well constructed.

3              Ideas with legs
The aim of Idea Transform is to support projects to help them grow after the weekend, with mentoring, support and advice for all the winners. Sim-Prints, the overall winners, were awarded three months membership of the ideaSpace Enterprise Accelerator and two teams now have the chance to pitch for funding from the Cambridge Angels. Outside of this I saw lots of connections being made that will help projects meet the right people to progress and real enthusiasm amongst everyone to move things forward. I’m confident that at least one of the teams will grow into a fully fledged business in the future.

So it was an exhilarating, exhausting and packed weekend – finally I’d like to thank all the other organisers, our sponsors, particularly ARM, Red Gate Software and BlackBerry, supporters including the Centre for Entrepreneurial Learning (CfEL), mentors, judges, volunteers and speakers for making the first weekend to change the world a weekend to remember.

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April 25, 2012 Posted by | Cambridge, Startup | , , , , , , , , | 5 Comments

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