Author: Paul Wallbank

  • Engineering for change – the ethics of the new economy

    Engineering for change – the ethics of the new economy

    Technologies like the internet of things, cloud computing, 3D printing and big data are changing our industries and society. At the ACI Connect event today, I gave a presentation on some of the opportunities, risks and ethical issues facing technologists and engineers in the connected economy.

    While many of the engineering principles underlying these technologies aren’t new, their scale and the power they give businesses and governments means there are serious ethical, security and societal issues we have to consider.

    This presentation explores some of those issues and the technologies and trends driving them.

    Entering the Data era

    A conceit among technologists is that we’re in an unprecedented era of change. This is not true.

    The Twentieth Century saw massive restructuring of our society as the telephone, mains electricity, the motor car and television changed our society. Many of today’s settled industries came out of the huge technological steps forward over the last hundred years.

    Just as cheap energy – delivered to us through the motor car and mains electricity – defined the Twentieth Century, this century will be defined by easily accessible and abundant information.

    Those changes over the last hundred years give us some hint as to where we are going; the shifts that saw coal carters, newspaper sellers and night soil men eventually become extinct, along with a shift from a largely agricultural workforce to industrialised employment, is going to be repeated this century as information becomes abundant.

    Harnessing the Internet of bees

    Cheap and small sensors mean it’s easier to put a chip on something. In this case we have a CSIRO project tracking bee activity where Tasmanian scientists have put tracking devices on bees.

    Those tracking devices would have weighed several hundred grams and cost hundreds of dollars ten years ago but today they are small and cheap enough to fit onto the backs of bees.

    Being able to deploy these sensors means we can fit them to things we couldn’t have imagined a few years ago and the data they generate is going to give us insights into patterns and behaviours we couldn’t have contemplated.

    However not all of this data is useful or necessary and some may even be damaging to individuals and groups. One ethical question we have to ask ourselves is whether it is in the community’s interests to collect this information.

    Another aspect of connecting devices, or even animals and people, to the Internet or a network is it opens the possibility of hacking, as we’ve seen in the recent Jeep case where engineers showed they could control a vehicle remotely. The security and privacy aspects of the IoT are critical and something designers and product engineers can’t overlook.

    Decoding the data

    It’s often said that Data is the New Oil. In truth it isn’t, data is increasingly cheap and easy to access. Being able to analyse that information is where the power lies.

    Data analytics is probably going to be one of the most important fields in an information rich economy and already we’re seeing companies springing up to help farmers estimate crop yields, truck drivers plan their routes and even organisations like the Royal Flying Doctor Service using cloud services to better plan their operations.

    Again these services plan a lot but there’s also downsides as inappropriate data matching risks breaching consumers’ privacy and even drawing false conclusions from confusing correlation with causation. A good example of this is Facebook being used to judge credit worthiness.

    Removing the human element

    Automation – whether it’s through robotics, machine learning or algorithms – will change many industries and the workforces employed by them.

    One understated field is management where many white collar supervisor jobs are at risk from business automation. It may be that the executive suites are the next sector to be decimated by computers and robots.

    Similarly, many services industry jobs such as taxi drivers and baristas are at risk from robotics while large scale 3D printing of buildings threatens to put many building trades under pressure.

    No more truck drivers

    Driverless vehicles have a whole range of applications, in logistics were seeing them put forklift drivers out of work while mining companies are rolling out massive dump trucks in their new mines that don’t require $200,000 a year drivers.

    One study estimates that half the police workforce in the United States would become redundant as law abiding driverless cars become common.

    Similarly electric cars will have a massive impact on government revenues. Currently Australian governments raise $17bn a year from fuel excise and has ramifications for businesses involved in the supply chain for service stations.

    Once driverless vehicles become commonplace we may well see them changing industries like daycare, public transport and couriers as it becomes possible to summon an autonomous vehicle, put the kids or the luggage into it and then send it off to its destination. If you’re worried, you can track the progress on an app.

    The effects of the driverless car show how we have to think laterally about the effects of new technologies on our businesses, sometimes the effects of a new way of doing things could indirectly hurt our business or create new opportunities.

    Squeezing out inefficiencies

    One of the great promises for the IoT, Big Data and business automation is to remove inefficiencies from industry. Cisco believe that up to 14% of the Oil and Gas industry’s costs could be stripped away with today’s technologies. That in itself is worth over a 100 billion dollars a year in cost savings.

    GE are deploying their technologies into a diverse range of industrial equipment ranging from jet engines to railway locomotives and wind turbines with spectacular results in reducing costs and improving productivity.

    The effect of these improvements means less downtime and maintenance costs which are good news for customers and shareholder of these companies, but bad news if you’re a maintenance business. It also means the speed of change in business is accelerating.

    Skilling the future workforce

    In summary the skills needed today are very different to those of 1915 and 1965 and those of the next fifty years will be even different.

    As a society we have to decide what skills we are going to give not our children but those currently still in the workforce who are going to be working longer and later into their lives as the workforce ages.

    We also have to consider what sort of ethical compass we have. While the technology we have today is powerful and capable of great things, it’s also capable of great harm. We need to have an understanding of what the effects and limits are of our actions with the Internet of Things, Big Data and analytics.

    Ultimately we need to ask what value we as individuals can add to our communities and society.

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  • Putting machine learning into wine

    Putting machine learning into wine

    As we gather more data, the opportunities to apply it become wider. A good example of this is Seer Insights, a South Australian company started by pair of university students that calculates the likely grape yields for vineyards.

    Seer Insights’ product Grapebrain is made up of two components, a mobile app that the farmer uses to count the grape clusters on the vines and then a cloud service that analyses the data and produces web based reports for the farmers.

    The current methods are notoriously unreliable with Seer Insights estimating mistakes cost the Australian viticulture industry $200 million a year as harvests are miscalculated resulting in either rotting fruit or wasted contractor fees.

    Born in an elevator

    Seer’s founders, Harry Lucas and Liam Ellul, started the business after a chance meeting on their university campus. “We started off doing this after being stuck in a lift together,” remembers Liam. “Originally we were looking at the hyper-spectrum imaging for broadacre farming but when we started looking at the problems we ended up talking to wine organisations about this.”

    “The technology predicts how many grapes will be coming off the vineyards at the end of the season to enable people to sort out their finances,” Harry says. “The growth process grapes go through is difficult to model so we use machine learning to do that.”

    For both the founders having an off the shelf product, in this case Microsoft’s machine learning tools, to run the data analysis made it relatively easy to launch the product.

    As a winner of Microsoft’s Tech eChallenge, the startup has won a trip to the United States as well as being profiled by the company as a machine learning case study.

    Over time as these tools become more accessible to small companies we’ll see more businesses accessing machine learning services to enhance their operations.

    As companies face the waves of data flowing into their businesses over the next decade, it will be those who manage it well and gather valuable insights from their information that will be the winners.

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  • Google’s alphabet soup

    Google’s alphabet soup

    “Google is not a conventional company. We do not intend to become one.” Writes Larry Page in his announcement the company he and Sergei Brin founded is to be renamed Alphabet with Google as one of its divisions.

    The new company, which will continue to be listed as GOOG on the NASDAQ stock market, will have Page as CEO and Brin as Chairman with the various product lines and products split into discrete divisions under the umbrella holding company.

    Page believes this will increase accountability and initiative within the divisions.

    In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well. We’ll also make sure we have a great CEO for each business, and we’ll determine their compensation.

    How well this Japanese style Keiretsu model will work for Google will be interesting. The initial problem for the company is going to be the jockeying for positions within the restructured divisions.

    Google’s management is well known for losing interest in projects and products that aren’t working out and those stranded in ‘orphan divisions’ without strong interest from Brin and Page’s team or big revenues are going to find life frugal and discouraging.

    The plight of Google+

    If you’re a Google employee you’d certainly be lobbying hard today to avoid being stuck in the division lumbered with the dying Google+ social media platform for instance.

    The plight of Google+ may give us some clues to Page’s thinking. At the time of the 2008 financial crisis the company heeded the warnings of The Powerpoint of Doom and clamped down hard on costs. Since the crisis passed, Google has steadily become increasingly cumbersome and increased its headcount from 20,000 in 2009 to 54,000 four years later.

    A restructure is an excellent opportunity to strip out a good deal of that fat.

    For divisions like productivity apps, this sharpened focus may help the product and stir the teams into innovating. A Gartner report last week put Google Apps at a pathetic 2.1% of the global productivity while Microsoft maintains a 94% chokehold on the market. As an autonomous division, the Apps team is going to have to work a lot harder.

    Protecting the core

    Another question is how this will pan out for the core Google business. The combination of search and advertising remains a monstrous cash generator however its growth is slowing as the company struggles with the shift to mobile.

    For the core Google employees, having profits sifted off their division for loss making moonshots may not be the most motivating thing and we may well see Sundar Pichai, the already announced CEO of the Google division, pushing back hard on the claims of other Divisional bosses for capital.

    The restructure of Google is going to be an interesting experiment in how well the Japanese conglomerate model may work in the modern tech industry, if it does then we may see the modern equivalents of US Steel and AT&T develop.

    For Google’s managers and employees however, having the harsh glare of shareholder accountability may not be the most comfortable experience.

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  • Google’s Android problems point the way for the Internet of Things

    Google’s Android problems point the way for the Internet of Things

    As regular security problems are being exposed in the Android operating system, Google and Samsung have announced regular updates to their devices and software.

    For long timers in the IT industry this is a return to the Microsoft days of Patch Tuesdays, the monthly bundle of updates for Windows and Office the company used to issue on the first Tuesday of each month.

    While Android has nothing the like the problems Microsoft did in the early 2000s with the explosion of malware that crippled millions of users, the risks to the Google system are real with some predicting a security armageddon.

    For users, there’s a serious question in the problems facing Android system in that unlike the Windows systems the rollout of updates is controlled by the telcos or handset vendors rather than the software developers.

    As a consequence many older devices simply aren’t being updated leaving millions of smartphone users exposed to malware and having no way of fixing known security problems.

    The problems facing Android are common across the entire Internet of Things, how Google respond the current smartphone security problems is going to be a pointer for the rest of the IoT sector.

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  • They won’t respect you in the morning

    They won’t respect you in the morning

    So after five years about posting about food, travel, tech, fashion or reverse cycle widgets you’ve being listed by Forbes Magazine as one of the most influential voices in the field.

    Now every morning in your inbox is another pitch from an agency offering you freebies and access in return for posting about their clients products, some are great while others are strange.

    Welcome to the world of Influencer Programs, a strange hybrid bought about by rise of social media and the collapse of printed news. As overwhelmed salaried journalists at established media outlets have less time to deal with hundreds of PR people desperately trying to get their attention, those with decent social media followings start to look attractive.

    The influencer theory

    A key part of the PRs strategy in engaging with social media outlets are the influencer programs, where the agencies trawl Instagram, Facebook, Twitter and the other services to find those with large followings and then try to induce them into promoting their clients’ products.

    These influencer programs are not anything new, while today we associate them with Kim Kardashian and Will.I.Am, in the 18th  Century Josiah Wedgwood publicised his sales to the royal courts of Europe to generate sales for his earthenware and a hundred years later Mark Twain endorsed cigars in journals across America.

    So congratulations on being the modern Mark Twain, now you have to decide if you want to play with Fat Fee Media and be part of their influencer programs.

    The land of the free

    Most of the time the initial approach from the nice folks at Fat Fee will try to get you to work for free in exchange for a shiny laptop, a free feed or even an overseas trip to The World Reverse Cycle Widgets conference.

    That might work for you, if you have a full time job and the food blog or fashion Instagram feed is a hobby then this exactly what the influencer programs were originally designed around although there might be some quirks there

    Should the blog be a business, or you take the distinctly unfashionable attitude that your time as a creative content creator is actually worth something that Fat Fee Media should pay for, then things get messy.

    People die of exposure

    The first response for payment from the nice folk at Fat Fee Media is that working with their client will be wonderful exposure for you.

    In some respects this is probably true, however the reason Fat Fee Media has come to you is because their clients need exposure more than you do. Just the fact you’ve been listed as an ‘influencer’ shows you have credibility on the interwebs.

    One of the traps many of us with consulting businesses on the side is the belief that doing a favour for BigCorp will open future paid opportunities. Sadly, the truth is somewhat different.

    Pay the writer

    “It’s the amateurs who make it tough for the professionals” says Harlen Ellison in his wonderful Pay The Writer rant. “By what logic do you call me and ask me to work for nothing.”

    Ellison’s point is well made and those working for free are marked down as amateurs by the large agencies. Be under no illusion, when the paid consulting, speaking or writing gigs become available, the folks giving away stuff for free on the influencer programs won’t be getting them.

    The world of control freaks

    Another aspect of the influencer program world is the sheer control freakery. The gold standard for this was Samsung’s infamous Mob!lers Program where the South Korean company threatened to strand a group of Indian bloggers in Berlin if they didn’t act as unpaid company spruikers.

    While Samsung’s behaviour was extreme, it’s by no means unusual. It’s common in these programs’ agreements to have ‘exclusivity’ or ‘no disparagement’ clauses.

    The exclusivity clauses are particularly pernicious because they limit the scope of your writing and could even lock you out of future paid work in the industry you cover.

    Controlling the copy

    Another weird, but common, part of the PR control freakery in influencer programs is the determination to vet everything so only Nice Things are said about their clients.

    This never ends well as the agency and its client spend the next six weeks rewriting your work. Inevitably the results look like something published in the Ministry of Public Works house newsletter.

    Even if your blog or Instagram feed is just a hobby resist any request from agencies to pre-vet your copy. If they insist, send them your advertising rate card and tell them to hire a copywriter.

    You can’t say bad things

    The ‘non-disparagement’ clauses are equally pernicious. One of the curiosities of the social media world is that corporates are horribly risk averse.

    As a consequence they don’t want the possibility of bloggers or the Twitterati saying nasty things about them and the non-disparagement clause becomes part of almost any agreement.

    These clauses are usually far ranging, not only do they stipulate a blogger can’t say something less than glowing in a post but they also restrict any social media commentary on that business.

    A recent agreement I was presented on behalf of one of the world’s biggest banks required me to say I wouldn’t say anything nasty about them. This is a curious way of shutting people up but one can’t blame them if it can be done cheaply for the cost of a meal or conference invite.

    Happy shiny people

    Ultimately the social media and digital media worlds are about happy and shiny. Given they are largely controlled by large corporations, this isn’t surprising and much of the attitude that you shouldn’t say bad things online comes down to how food, fashion and travel bloggers have regurgitated nice things rather than been genuine critics.

    To be fair to the new breed of online writers, the dumbing down of travel and food writing was well underway in the mainstream media before the arrival of the internet. One could argue that mastheads devaluing their brand with puff pieces was one of the reasons alternative online media, particularly in food blogging, became so successful so fast.

    A broken model

    In truth, the whole social media engagement industry is broken, it depends on poor measurements and old school marketers applying 1960s Mad Men broadcasting methods to an industry that’s diffuse and diverse.

    Over time, new more effective models will develop but the for the moment this is the way business is done as we wait for the new David Sarnoff.

    Ultimately for influencers the question is whether you’ll keep your own respect and that of your audience. Just don’t expect the corporates and their agencies to respect you in the morning.

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