Revolutionary Measures

Hunting for unicorns

Mankind has always had a fascination for mythical beasts, and none more so than the unicorn. Despite allegedly dying out in the flood after failing to board Noah’s Ark in time, they are still all around us in popular culture, from Harry Potter to children’s toys. I even found an exhibit in a Vienna museum labelled matter of factly as a “unicorn horn” – it was actually from a narwhal.unicorn

The horned horses are back in the news, in the world of tech at least, with any startup valued at over $1 billion by venture capitalists now dubbed a unicorn. However with more than 100 companies now achieving unicorn status there’s a growing worry that startups are trading short term valuations for longer term success. True, unicorn status helps attract skilled staff, but down the line it requires either a trade buyer that is willing to pay big money or an IPO to translate mythical (paper) valuations into hard cash. There have also been a raft of stories on how investors have structured their unicorn funding in ways that protect their cash (rather than the shares of others, such as founding teams) if the company should lose its value.

A focus on unicorns also favours certain sectors and types of company. A browse through Fortune’s latest unicorn list reveals a large number of consumer electronics (Xiaomi, Jawbone), retail (FlipKart, Snapdeal) and sharing economy (Uber, Airbnb) companies. In many ways this is what you expect – company valuations are based on what the addressable market is, so the biggest investment goes into those startups that can make most money.

However, it does potentially limit where investors put their money. There are lots of startups that will never be a Facebook or an Uber, but have the potential to be extremely successful niche players that could well grow into billion dollar valued companies. Look at ARM – when it began as a spin-off from Acorn Computers with a completely new business model, very few would have predicted its current success.

There’s also a definite geographic bias where unicorn investors are putting their money – Silicon Valley, China and India. Out of the latest Fortune list just three are in Europe, one in Australia and one in Israel. This doesn’t reflect the energy, ideas and potential in any of these places, particularly in emerging sectors. The danger is that if investors spend their time chasing unicorns they’ll miss out on the startups that could do with their help to build long term businesses that can make a difference to many markets.

So I think we need to add another category alongside unicorns. Keeping the mythical theme I’d go for centaurs. Sturdier than a unicorn, probably better in a fight and with a bit more intelligence (and opposable thumbs). They may not have the beauty or the (frankly over the top) horn of their flashier cousins but they are built for the long term, rather than mythical valuations that don’t necessarily deliver. Given the potential returns they can produce, it is time for investors to move away from the fascination with unicorns to more realistic startups that may be uglier, but have just as much potential.

May 20, 2015 Posted by | Cambridge, Startup | , , , , , , , , , | Leave a comment

Algorithms versus spontaneity – striking the happy medium

There’s been a number of recent pieces about the rise of self-learning technology that uses artificial intelligence (AI) to carry out tasks that would previously have been too complex for a machine. From stock trading to automated translations and even playing Frogger, computers will increasingly take on roles that used to rely on people’s skills.

English: NEW YORK (May 31, 2010) Visitors inte...

Netflix used an algorithm to analyse the most watched content on its service, and found that it included three key ingredients – Kevin Spacey, director David Fincher and BBC political dramas. So when it commissioned original content, it began with House of Cards, a remake of a BBC drama, starring Spacey and directed by (you’ve guessed it) Fincher.

This rise of artificial intelligence is worrying a lot of people – and not just Luddites. The likes of Stephen Hawking, Bill Gates and Elon Musk have all described it as a threat to the existence of humanity. They worry that we’ll see the development of autonomous machines with brains many thousands of times larger than our own, and whose interests (and logic) may not square with our own. Essentially the concern is that we’re building a future generation of Terminators without realising it.

They are right to be wary, but a couple of recent stories made me think that human beings actually have several big advantages – we’re not logical, we don’t follow the facts and we don’t give up. Psychologist Daniel Kahneman won a Nobel Prize for uncovering the fact that the human mind is made up of two systems, one intuitive and one rational. The emotional, intuitive brain is the default for decision making – without people realising it. So in many ways AI-powered computers do the things we don’t want to do, leaving us free to be more creative (or lazy, dependent on your point of view).

Going back to the advantages that humans have over systems, the first example I’d pick is the UK general election. All the polls predicted a close contest, and an inevitable hung parliament – but voters didn’t behave logically or according to the research and the Tories trounced the opposition. While you might disagree with the result, it shows that you can’t predict the future with the clarity that some expect.

Humans also have an in-built ability to try and game a system and find ways round it, often with unintended consequences. This has been dubbed the Cobra effect after events in colonial India. Alarmed by the number of cobras on the loose, the authorities in Delhi offered a bounty for every dead cobra handed in. People began to play the system, breeding snakes specifically to kill and claim their reward. When the authorities cottoned on and abandoned the programme, the breeders released the now worthless snakes, dramatically increasing the wild cobra population. You can see the same attempt to rig the system in the case of Navinder Singh Sarao, the day trader who is accused of causing the 2010 ‘flash crash’ by spoofing – sending sell orders that he intended to cancel but that tricked trading computers into thinking the market was moving downwards. Despite their intelligence, trading systems cannot spot this sort of behaviour – until it is obviously too late.

The final example is when humans simply ignore the odds and upset the form book. Take Leicester City. Rock bottom of the English Premiership, the Foxes looked odds-on to be relegated. Yet the players believed otherwise, kept confident and continued to plug away. The tide now looks as if it has turned, and the team is just a couple of points away from safety. A robot would have long since given up……..

So artificial intelligence isn’t everything. Giving computers the ability to learn and process huge amounts of data in fractions of a second does threaten the jobs of workers in the knowledge economy. However it also frees up humans to do what they do best – be bloody minded and subversive, think their way around problems, and use their intuition rather than the rational side of their brain. And of course, computers still do have an off switch………….

May 13, 2015 Posted by | Creative, Marketing, Startup | , , , , , , , , , , , , | Leave a comment

5 lessons marketers can learn from the UK general election

Essentially a general election campaign is an exercise in marketing. Parties are trying to reach distinct audiences with their key messages and convince them to put a cross in the box next to their candidate’s name. To confuse matters slightly you have both national and local campaigns, potentially with different issues that have to be addressed. For example in some constituencies it is simply a matter of defending a majority by making sure people go out to vote, while in the marginals where the election will be won or lost it is about securing every vote possible.

Rt Hon David Cameron, MP, Conservative Party l...

It is also a pressure cooker environment. General election marketing is carried out in an intense campaigning period, with the eyes of the media permanently trained on everything that the parties do. So, for normal marketers what lessons can we learn – both positive and negative? I’d pick out five key ones:

1. Show passion
One of the criticisms levelled against David Cameron is that he doesn’t seem to care about the election and potentially winning a second term in office. Whether this is true or not, his perceived insouciance stands in stark contrast to the firebrand rhetoric of the challenger parties such as UKIP and the SNP. If you want to connect with your audience, show that you really are engaged with them and demonstrate you understand their concerns.

2. Don’t take your audience for granted
The days of a two party system appear to be consigned to history, with some of the safest Tory and Labour seats under attack from challenger parties. This is part of a wider dissatisfaction with professional politicians, which the electorate feel is out of touch with their lives and concerns. The lesson for marketers is that challengers can pop up in any industry, no matter how high the barriers to entry, if you fail to deliver what your audience wants.

3. Check, check and check again
I’ve had an election leaflet that says “insert local message here” at the bottom, while Tory MP Matthew Hancock has been embarrassed by an unfortunate fold of a campaign flyer that removes the first three letters from his name. The message is clear – no matter how pressured you are, it is vital to check everything that goes out if you are to avoid slip-ups.

4. Innovate
There hasn’t been a lot of innovation in how the main parties have campaigned during this election. Speeches, battle buses, visits, kissing babies and celebrity endorsements have been the norm. Ed Miliband visited Russell Brand, but given that Brand had earlier told his followers not to bother voting it remains to be seen what the impact of his chat actually will be. The TV debates that helped Nick Clegg to power last time did happen, but in a variety of formats that meant they lost their overall potency – exactly as David Cameron had hoped. Perhaps what is really needed is innovation within the whole process. You can register online to vote, but you can’t yet vote online or via text. Surely it is time to change this to encourage greater participation?

5. Embrace all channels
One of the key differences between most marketing and a general election is that each party is aiming to appeal to a wide age range. So you have to have specific messages for older audiences and the millennials who could be voting for the first time. That’s one of the reasons that this was predicted to be an election that embraced social media, particularly to reach younger voters, who traditionally have been less likely to vote. I’m not convinced that any party really nailed social media – or even if that is possible – but think that most of them could have done more to build engagement on the channel. Still, Twitter saw some interesting memes, with #milifandom making Ed Miliband an unlikely sex symbol.

As I write this on the morning of polling day the expected result is a hung parliament, with no party having a sufficient majority to govern alone. So on that score the major parties’ marketing will have failed. However if you look at the campaign as a whole, there are plenty of lessons to learn about what to do – and probably most importantly, what not to.

May 7, 2015 Posted by | Creative, Marketing | , , , , , , , , , , , , , | Leave a comment

How technology can transform moving house

Transport of a house (photo taken in New Zealand)

I’ve just moved house and am still recovering from the experience. Having last moved 11 years ago I expected that technology would have changed things in the interim, but it seems that the process is still paper-based, slow and (as far as I can see) incredibly inefficient. If you ever wondered who still uses a fax machine, look no further than solicitors………

It starts so well. The front-end of house buying is now pretty much web-based. So there’s no more peering through the windows of estate agents as you can set your criteria and instantly bring up potential properties that you are interested in. In fact there could be too much information available – we took the virtual tour of our house off our details as we worried that people could be making up their minds based on that, rather than coming for a viewing. The technology used to gather these details is also pretty high tech – with drone cameras taking aerial photos for example.

However once you’ve had your offer accepted, the back office processes revert to paper – based on my experiences, here are five areas that seem ripe for digitisation:

1          Paper-based forms
Some documents, such as Land Registry files and searches, are now all online, making it much quicker to access them. But a lot more aren’t – the fixtures and fittings form is still paper-based for example, meaning it has to be posted and scanned at the other end. By mandating that all communication is electronic, the whole process could be much quicker, more environmentally friendly and less stressful.

2          Real-time communications
We wondered why we always got emails sent on behalf of our solicitor just after 4pm. Then we realised – he’d dictated them to his PA in time to get them in the post, but rather than appearing as a letter it had just been turned into an email. While this saves some time it doesn’t deliver real-time answers that people demand (and which could dramatically speed up the process).

3          Getting a mortgage
Criteria for mortgage applications have been tightened following the easy lending that preceded the banking crash. That’s understandable, but there’s no common sense in the process now. It took weeks to get a telephone appointment with our bank to go through our personal details and outgoings – and then when the mortgage rate changed we had to do the whole thing again in order to get a better deal. And we had to talk to the same advisor (who was on holiday), adding more time to the process. Being able to re-use answers you’ve already provided, within a reasonable timeframe, would be more efficient for the bank as well as avoiding customer frustration.

4          Money transfer
On completion day, it takes forever for the purchases to take place. The money from the purchaser at the bottom of the chain goes to the solicitor for the house they are buying, who then pays the next person and so on. This is all logical but is incredibly slow – in an era of online banking where you can transfer money instantly, this is another area that needs addressing as it is inefficient and time-consuming. Our buyer’s removal van was waiting outside our (old) house for the money to go through – it then took another hour to complete on our purchase.

5          Changing address
After you’ve moved you then need to update your details with everyone from your bank to HMRC. What amazes me is how difficult some people make this. In an online world you’d imagine it would be straightforward to change the address a magazine subscription is delivered to – but in many cases I’ve had to email to get details changed rather than just amending my address online. A central portal to change all your official details might sound a bit Big Brother to some people but I would prefer it to having to wade through hundreds of sites, remembering seldom-used passwords in order to tell companies I’ve moved.

As you can probably tell, the whole moving process has left me frustrated at the missed opportunities to speed things up and make it more efficient for everyone. I don’t think it is on any party manifesto, but reforming house buying would surely be a vote winner given the stresses and traumas it creates. And having moved into our lovely new house, I won’t be leaving in a hurry…………..

April 29, 2015 Posted by | Startup, Uncategorized | , , , , , , , , , | Leave a comment

Moore’s Law – will it make 60?

50 years ago, engineer Gordon Moore wrote an article that has become the bedrock of computing. Moore’s Law, as first described in the article, states that the number of elements that could be fitted onto the same size piece of silicon doubles every year. It was then revised to every two years, and elements changed to transistors, but has basically held true for five decades. Essentially it means that computing power doubles every two years – and consequently gets considerably cheaper over time.

"The new Hewlett-Packard 9100A personal c...

What is interesting is to look back over the last 50 years and see how completely different the IT landscape is today. Pretty much all companies that were active in the market when Moore’s Law was penned have disappeared (with IBM being a notable exception and HP staggering on). Even Intel, the company Moore co-founded, didn’t get started until after he’d written the original article. At the same time IT has moved from a centralised mainframe world, with users interacting through dumb terminals to a more distributed model of a powerful PC on every desk. Arguably, it is now is heading back to an environment where the Cloud provides the processing power and we use PCs, tablets or phones that, while powerful, cannot come close to the speed of Cloud-based servers. This centralised model works well when you have fast connectivity but doesn’t function at all when your internet connection is down, leaving you twiddling your thumbs.

Looking around and comparing a 1960’s mainframe and today’s smartphone you can see Moore’s Law in action, but how long will it continue to work for? The law’s demise has been predicted for some time, and as chips become ever smaller the processes and fabs needed to make them become more complex and therefore more expensive. This means that the costs have to be passed on somehow – at the moment high end smartphone users are happy to pay a premium for the latest, fastest model, but it is difficult to see this lasting for ever, particularly as the whizzier the processor the quicker batteries drain. The Internet of Things (IoT) will require chips with everything, but size and power constraints, and the fact that the majority of IoT sensors will not need huge processing power means that Moore’s Law isn’t necessary to build the smart environments of the future.

Desktop and laptop PCs used to be the biggest users of chips, and the largest beneficiaries of Moore’s Law, becoming increasingly powerful without the form factor having to be changed. But sales are slowing, as people turn to a combination of tablets/phones and the processing power of the Cloud. Devices such as Google Chromebooks can use lower spec chips as it uses the Cloud for the heavy lifting, thus making it cheaper. At the same time, the servers within the datacentres that are running these Cloud services aren’t as space constrained, so miniaturisation is less of a priority.

Taken together these factors probably mean that while Moore’s Law could theoretically carry on for a long time, the economics of a changing IT landscape could finish it off within the next 10 years. However, its death has been predicted many times before, so it would take a brave person to write its epitaph just yet.

April 22, 2015 Posted by | Creative, Uncategorized | , , , , , , , , , , , , | Leave a comment

The future of advertising – no ads at all

Aggressive marketing campaigns are common, thi...

Think about it – what was the last advert you saw that you really remember or which made you take action? The likelihood is that nothing comes immediately to mind. This is ironic as we are now surrounded by more and more ads, whether on the internet, TV or billboards. And they should be increasingly better targeted given that advertisers can see our browsing history, previous searches and even what we Like on Facebook.

Why don’t we remember ads? I think there are three reasons. Firstly, we’re getting better at blanking them out ourselves. Our brains are struggling to cope with the huge amount of information around us, and are therefore becoming more ruthless and ignoring things that aren’t relevant.

Secondly, as well as giving us greater opportunities to see ads, technology is also helping us to skip them. Most of us fast forward through the ads on recorded programmes, and given that more TV is no longer watched live (or on a TV), we can save time by avoiding commercial breaks. Even if you begin watching a recording of a programme on ITV 15 minutes after it starts, you’ll catch up by the end, without missing anything but the ads. Websites are also waking up to the idea that you can offer a premium, ad free product to increase revenues. YouTube is looking at subscription model that means you don’t have to see any ads on the site, for example.

Finally, most ads aren’t actually that interesting anymore. Big budget TV ads still exist, but the vast majority are much more basic and programmatic – you do a search for a toaster, and small, mostly text-based ads then follow your round the internet for a week, appearing on every page you visit for example. The creativity is more in the algorithm that understands your intent, finds a corresponding ad and then keeps tracking you from site to site. It would be physically impossible for the advertiser to create hundreds of creative ads telling you about how their toaster will change your life – there simply isn’t the time or space to do it.

I’m sure there are wonderful long form TV ads out there, but apart from the Christmas campaigns (which have become part of the festive experience) I’m not watching them, and I don’t know who else is either. There don’t appear to be ads that tell your friends about, like the Tango, Guinness or Levis campaigns of the 1980s and 1990s. Too many TV or billboard ads are generic or ‘good enough’ in the eyes of the client, rather than pushing the boundaries. Targeting is replacing creativity as the key factor in success, so what does this mean for the advertising industry?

It could mean the end of ads as we know it. Brands are looking for different ways to engage with customers, so are putting their money into sponsorship of programmes, sports and events, content marketing and campaigns on social media. However swapping the TV ads you’ve always done for a Facebook or YouTube-based programme requires a leap of faith from marketing directors and ad planners alike. At the moment many have added the internet to their campaigns, for example sharing their ads on their own site, Facebook and YouTube and using cut down versions for internet advertising.

However I think that there’s going to be a moment when the advertising industry becomes ‘digital first’ and the swashbuckling creatives and Don Drapers will be replaced by data scientists and content marketers who can use technology to understand and reach audiences, as opposed to untargeted TV ads that may win prizes for creativity but don’t deliver ROI. In many ways this will be a shame, but shows that whatever industry you are in, digital can and will disrupt everything you do.

April 15, 2015 Posted by | Creative, Marketing, Social Media | , , , , , , , , | 1 Comment

Up Periscope?

I’ve mentioned previously that Twitter is at a bit of a crossroads. Compared to its social media brethren Facebook and LinkedIn it has found it hard to make the move from a network with lots of users to a viable business making significant profits. Twitter may have grown revenues to $1.4 billion in its 2014 financial year, but it is dwarfed by Facebook, and made a net loss. It even lost 20 million users in the last quarter of the year.

English: Up periscope!

Therefore it has been looking around for ways of increasing both engagement and revenues. Given that the 140 character limit on tweets is more than a little stifling, it has made a big bet on video – first with Vines and now with Periscope. With Vines being extremely short (essentially 6 second loops) they at least fitted in with the stripped down nature of Twitter.

However Periscope is something much more long form. Essentially it is an app that lets you live stream pictures from your mobile phone, in real-time, to your followers. It isn’t a new idea – apps such as Bambuser and Livestream have allowed this before. Even more recently Meerkat was the hit of the SXSW festival and raised $12m in funding, announced on the day that Periscope launched. As is the way of cool free new stuff, Periscope has quickly become wildly popular (in social media land at least). This is partly due to its ease of use, but probably more to the prevalence of wifi networks and all you can eat 3G/4G data packages that mean live streaming isn’t going to run up huge bills.

Unlike Vines, which have not really moved beyond being a niche application, there is obviously a lot of potential in live streaming, provided that Twitter can capitalise on its early mover advantage over the likes of Facebook. I can see five ways it can be easily used.

1. Journalism
We live in a real-time news cycle, driven by the likes of Twitter. Therefore it makes a lot of sense to add video to tweets from a press conference or the scene of a breaking story. It won’t replace having a full camera crew on hand, but will fill the gap between recording and going live. And it will be a boon to citizen journalists and members of the public, giving them another way of recording and sharing stories.

2. Adding to the buzz around events
Twitter works really well at collating and sharing what is happening at events such as conferences. By creating a hashtag and encouraging its use, information and opinions can be quickly published and, most importantly, found easily. It is even possible to skip the conference altogether and just follow the key points on Twitter. Expect conference organisers to embrace Periscope and encourage its use to give a fuller insight into events.

3. Sharing sports events
Much of the internet is driven by either porn or sports, and the X-rated opportunities for Periscope are pretty obvious. I presume Twitter will be quick to crack down on them, but the fact that you can live stream from a sporting event has more lasting possibilities. On one hand it will enable people to share football matches as they happen (expect screams of indignation from rights holders), but more importantly it will let niche sports get their coverage to more people, while using a minimum of infrastructure and at low cost.

4. Catching out celebrities/politicians
I’ll wager that it’ll be about a week before the first politician is caught saying something stupid/offensive while being live streamed. And, unlike Meerkat, Periscope video streams are kept for 24 hours, meaning that the evidence will be there to be shared, retweeted and generally distributed to the world. Celebrities are likely to fall into the same trap – expect people to use live streaming to replace selfies and photo bombing as a way of interacting with/embarrassing their heroes.

5. Live streaming cats
If cat videos are the most popular things on YouTube, it won’t be long before someone puts their cat on Periscope, either live streaming everything they do or finding a way of rigging up a camera to them to show everything they are doing.

Time will tell if Periscope actually does provide an extra dimension (and revenue earner) to Twitter. However, given I’ve seen people taking photos of all their meals and putting them on Facebook, be prepared for a combination of a lot of mundane content (and complaints from phone users who rack up huge bills) in the early days before it potentially finds its place.

 

April 1, 2015 Posted by | Creative, Social Media, Startup | , , , , , , , , , , | 2 Comments

Why we don’t want discussion with our morning coffee

When you think of Starbucks, the first thing that comes to mind is not discussions about race. So the company’s latest US campaign, called Race Together, which seeks to start discussions between baristas and customers feels misplaced.

The second location of Starbucks in Seattle wa...

Firstly, let me say I don’t doubt that it is motivated by the right reasons, rather than a desire to differentiate or for marketing purposes. It follows extensive staff open meetings where partners (staff) have discussed the whole situation of race in the USA after high-profile cases involving the police and black citizens in New York and Ferguson, Missouri, amongst other places. And in many ways it goes back to the original purpose of coffee houses as venues for, often raucous, debate and discussion.

However as the overwhelmingly negative feedback on social media confirms, a 21st century chain coffee shop is not the place to have a measured discussion on a topic as sensitive and nuanced as race. As one tweet put it, “I don’t have time to explain 400 years of oppression to you & still make my train.” I’d agree – as someone that absolutely refuses to give my name when ordering a coffee, being forced into talking about a difficult subject, no matter how important, with someone I don’t know is not my cup of tea. I’d say there are four reasons it feels like the wrong place for this type of communication:

1          Fit with purpose
People go into a coffee shop to get a drink, and while they may have an unprompted chat with a barista, it is more likely to be about sports or the weather than race. They aren’t necessarily in a mood to talk to anyone until they’ve had their first coffee of the day, and if they are would prefer to choose the subject themselves. And how can you have a long discussion about a complex subject in the couple of minutes it takes for your coffee to be ready?

2          Unbalanced relationship
There is also a monetary transaction involved – it doesn’t feel like an equal conversation when one person is a customer and is paying. A discussion that could be had on an equal footing outside Starbucks most definitely can’t be seen the same way within the coffee shop.

3          Training and knowledge
Baristas at Starbucks haven’t received any special training in debating, and are of course still expected to carry on doing their jobs while engaging customers in discussion. Notwithstanding the potential impact on the coffee they are making, the risk is that they are out-argued by customers on specific points, adding to the issue, rather than helping solve it.

4          Risk to reputation
As a communications professional I’d also look at the risk to Starbucks’ reputation. It is easy to be very British about Race Together and just write it off as patronising, ignoring the genuine American issue behind it, and the more open US culture of discussing your life with complete strangers. But you have to look at the slew of negative tweets and articles to see that many Americans were not impressed. Additionally, given the global nature of the brand, a campaign in the US has an impact across the world, affecting the attitudes of coffee drinkers in other countries.

Most of all it reminds me of a Monty Python sketch, where Michael Palin pays John Cleese to have an argument. It deteriorates rapidly into just contradiction and is ended by a combination of the police and some wooden mallets. I’m not suggesting that the same approach is necessary in Starbucks’ case, but it needs to focus its efforts differently if it wants to get its message across and a proper discussion started.

March 25, 2015 Posted by | Marketing, PR, Social Media | , , , , , , , , , , | Leave a comment

Printing the future

It is easy to write off 3D printing as a niche technology, best left to hobbyists or for businesses producing extremely specialised, one-off components. But having seen some of the latest products made with the technology, I think it is moving very quickly towards the mainstream. You can now produce incredibly intricate pieces on a home 3D printer, albeit a high spec one, and industrial 3D printers provide even more power, speed and performance. There are now more and more community spaces with 3D printers (like Makespace in Cambridge), and even some local copy shops have one, delivering another way of bringing the technology to the mass market.

English: Miniature turbine 3D print from Rapid...

So, why do I think 3D printing is going mainstream? Because it taps into three key trends:

1          Personalisation
In our mass produced, brand-led world, we have an increasing a desire for personalisation. Many people want to show their individuality, and are willing to pay for it. So whether it is jewellery customised to fit your own body shape or a sculpture you’ve designed yourself, there is a market for 3D printed objects.

2          Need for precision
The boundaries of the possible are being pushed back. Medical science can do things that were previously thought impossible, while miniaturisation is shrinking the size of everyday objects around us, while making them much more complex. 3D printing enables the creation of precisely made replacement bones for medical use, as well as significant parts of intricate jet engines. All of these are high value objects, but the same methods can be used on more mundane applications. Take spare parts for consumer goods – normally if something small breaks (such as the shelf bracket of your fridge), you need to buy a replacement from the manufacturer at an exorbitant price. And that’s if you can even track down the part. Now, it is technically possible to 3D print the replacement, and while this obviously infringes copyright, it will be difficult for the original manufacturer to find out, let alone prosecute, you.

3          Infrastructure in the Cloud
The combination of the internet, the Cloud and smartphones provides a complete, cost-effective infrastructure to support 3D printing. You can take high resolution photos with your phone, upload them and have them turned into product plans by using the immense processing power available on the Cloud. Short of inspiration? You can find and download plans for just about anything to make yourself (unfortunately including guns) through a quick search.

So what markets will it disrupt? Recent announcements point to two that have real potential. As mentioned before, parts for jet engines are being made experimentally using 3D printing by both Rolls-Royce and academic researchers in Australia. As well as the ability to work to extremely fine tolerances, 3D printing also has the benefit of producing much less waste, as objects are built up, layer by layer, rather than carved out from a larger block of expensive material.

Secondly, and more in the consumer space, Argos has announced that it will run a trial that allows people to customise jewellery, both by adding messages and also changing the item’s dimensions. Previously the likes of the Royal Mail, Amazon and Asda have run 3D printing trials. Moving to more of a “make to order” model will help Argos in keeping stock costs down – and also help differentiate it against other retailers on the high street through exclusive products. Given that the likes of Argos have been hard hit by the rise of online shopping, it is a smart move that could well be expanded to other products.

Like many technologies, 3D printing will not only change existing markets, but also spawn completely new ones that have not yet been thought up. What is definite is that it provides brands and companies with a challenge – will the ability for complex customisation be a threat or an opportunity to their business?

March 18, 2015 Posted by | Creative, Startup | , , , , , , , , | Leave a comment

Should Apple Watch out?

After announcements last year, this week saw the launch of the first Apple Watches, although they won’t go on sale until 24 April. The cutely named Spring Forward event saw the tech giant reveal all 38 models, which will range in price from £299 (for the sport model) to £8,000+, depending on screen size, design and whether you want it in 18 carat gold.English: The logo for Apple Computer, now Appl...

More importantly Apple showed a selection of the apps that it expects to drive demand for the device. You can make touchless payments, receive phone calls, open a compatible hotel room door (rather than using a keycard), and remotely open an internet-connected garage door (no, I don’t have one of those either). However for a large number of functions, such as messaging, GPS tracking and making phone calls you’ll need an iPhone 5 to run alongside your new watch.

Apple is not a stupid company and has grown to be the biggest quoted business in the world by revenues through reinventing the music and smartphone markets. It hired former Burberry chief executive Angela Ahrendts to head up its online and physical stores, partly to help its move from technology into fashion with watches. I remember loudly proclaiming that the iPad would never catch on due its innate pointlessness, and now I rely on it every day. But I still see some serious challenges to the Apple Watch attaining critical mass. Here are four of them:

1. Price
The cost of the Sport model begins at £299, with prices for the mid-tier Watch version starting at £479. To me, this is a lot of money to spend on a watch, even one that looks as sleek as the

Apple device. And for £900+ you can buy a low-end TAG Heuer, that you know will last for a long time without needing to be upgraded as software advances. Yes, millions of people have iPhones, but the vast majority got them on subsidised deals that meant they didn’t have to fork out close to the real sales price. A better comparison is the similarly priced iPad, which has seen sales slow as the market becomes saturated over time. Therefore predictions of sales of 60 million seem excessive, with the market much more limited than that.

2. Does it do anything different?
Anyone of a certain age who saw or read Dick Tracy loves the idea of using their watch to make a call, even if it is to the office rather than for police back up. But Dick Tracy didn’t have a smartphone, which can do pretty much everything a watch can do – and more besides. And as Apple has said, you’ll need to retain your iPhone to provide many of the functions that can’t be squeezed into the watch. Admittedly the iPhone is getting bigger, making it more difficult to use for things such as contactless payments, but equally the watch could be seen as too small for many other activities.

3. A whole new market
Apple has always been known for its design excellence, and the Watch appears to be equally stunning, admittedly with a bulkier face than a traditional wristwatch. Hiring Ahrendts also points to a desire to bring in luxury marketing nous to help it move into a different sector, where factors outside technology excellence and cool apps could be more important. Can it become the fashion accessory that everyone wants? In the ultra-competitive watch market it will be difficult, though expect Apple to try to jump the chasm from geek to cool.

4. Battery life
Watch batteries traditionally last for years. In contrast iPhones provide just hours of charge, depending on how much Candy Crush you are actually playing. So the news that the Apple Watch will keep going for 18 hours is disappointing to say the least (although the company says that it will continue to show the time for up to 72 hours after that). Essentially consumers will need to charge the watch every night, plugging it in alongside their iPhone ready for the morning. It just reinforces that this is a technology product, rather than something you wear, and is bound to put some people off.

I could be as wrong about the Apple Watch as I was about the iPad, but to me, despite the hype, it won’t move beyond being a niche product for fanboys and girls who want to pair it with their latest iPhones. For me, if I had the spare cash I’d buy a TAG instead and leave technology to my phone……….

March 11, 2015 Posted by | Marketing, Startup, Uncategorized | , , , , , , , , , , | Leave a comment

Follow

Get every new post delivered to your Inbox.

Join 62 other followers