Author: Paul Wallbank

  • Are brands doomed?

    Are brands doomed?

    A few days ago we covered the Great Transition research paper by Colonial First State Funds Management’s James White and Stephen Halmarick and followed up with a piece in Business Spectator looking at the ramifications for the Australian economy.

    One of Halmarick and White’s assertions is that brands are dead as consumers in emerging economies don’t care about corporate names and in developed nations people have better information about local businesses.

    The former argument seems flawed from the beginning; Apple for example is making huge inroads in China while local manufacturers like Lenovo, Huawei, Great Wall and Haier are all working hard to establish their names in international markets.

    In developed markets, White and Halmarick’s views have more basis with brand names not having the cachet they once did now consumers have a global platform to voice complaints and find alternatives.

    A good example of brands that are struggling are companies like Microsoft and McDonalds, although in the case of both companies this could be more because of a shift in the marketplace rather than better informed consumers.

    However brands are surviving as they lift their game and adapt to changed marketplaces, in fact its possible to argue that today’s consumers are more responsive to brand names than ever in the past.

    A good example of this is again Apple which has more fans than ever before. Apple are also a good example of how big corporations can invest huge amounts into new technologies and products to give them an advantage over upstarts.

    We should also remember that brands as we currently know them are largely a Twentieth Century phenomenon born out of the development of mass media communications and many of today’s household names came into the culture thanks to television in the 1950s and 60s.

    So as creatures of last century’s media it’s not surprising that brands are having to evolve to a changed world, some of them will thrive and grow while others will shrivel away.

    It’s safe to say though that the concept of brands isn’t dead, although many of the names we know today may not exist by the end of the decade.

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  • Apple Watch shows us the limits of 3D printing and crowdfunding

    Apple Watch shows us the limits of 3D printing and crowdfunding

    Ahead of its launch the Apple watch has been criticised for its price and upmarket focus but the product shows what it costs to manufacture high quality goods along with the limitations of both 3D printing and crowdfunding.

    In its Watch Craftsmanship videos Apple shows off some of the workmanship that goes into manufacturing the device and the Atomic Delights blog has a deep look at the processes and the design decisions behind the company’s choice of techniques.

    What Apple’s series shows is that making top end devices is capital intensive and very, very hard. It also puts lie to the idea that raising a few thousand, or even million, dollars on Kickstarter will get a luxury item to market.

    Greg Koenigin, the author of the Atomic Delights blog, gushes about Apple’s attention to detail and high quality manufacturing.

    I see these videos and I see a process that could only have been created by a team looking to execute on a level far beyond what was necessary or what will be noticed. This isn’t a supply chain, it is a ritual Apple is performing to bring themselves up to the standards necessary to compete against companies with centuries of experience.

    It’s clear Apple isn’t stepping back or making any compromises in making its mark on the watch industry, even though the entire global market for timepieces is less than one quarter’s income from the iPhone.

    At the other end of the market the 3D printing revolution continues with Feetz raising $3 million for its customised shoemaking operation.

    While Feetz is an impressive and quirky business with great promise it shows the rough-and-ready face of the makers’ movement and the businesses relying on 3D printing services, it’s a world away from the Apple Watch.

    While both crowdfunding and 3D printing are going to have a massive effect on business and manufacturing, the truth is that other manufacturing methods are still going to be used by deep pocketed companies. Nothing is ever as simple as we think.

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  • User generated content starts getting expensive

    User generated content starts getting expensive

    Ten years after being founded YouTube is facing competition as new sites are being setup or existing video services start aggressively courting creators reports Variety magazine.

    YouTube is the poster child of the user generated content movement where it’s largely unpaid contributors who generate the material that people  watch on the service.

    This model works fine as long as it’s amateur cat videos people are watching but when as it becomes a big business the justification for not paying content creators becomes flimsy.

    Google’s management recognised this some time back and started rolling out its own partnerships with creators to add more income than the often tiny advertising revenues most earn.

    Now it turns out those popular video bloggers are being tempted over to other sites and for YouTube the cost of premium content is about to get expensive.

    For the Silicon Valley businesses is requires a change of culture as they simply don’t like paying creators; in the tech startup view of the world it’s only coders, founders and few lucky support staff who get the rewards while the bulk of people who add value to the product are treated as commodity ingredients.

    For a period it was difficult for media startups to get funding unless they had a free source of user generated content, as Buzzfeed founder Jonah Peretti revealed in 2012.

    Tech investors prefer pure platform companies because you can just focus on the tech, have the users produce the content for free, and scale the business globally without having to hire many people.

    The movie studios and record companies on the other hand have a culture of paying their artists and production staff, despite their reputation of exploitation and stinginess.

    It may well be that we’re past the golden era of user generated content and the free lunch for the sites that depend upon free materials.

    If it is, then standards on sites like YouTube can only improve even at the costs of Google’s profit.

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  • Seizing the agricultural technology opportunity

    Seizing the agricultural technology opportunity

    Does the real opportunity for tech entrepreneurs lie in the agriculture sector? An article by James Fallows looking at Fresno’s startup community for the Atlantic Magazine suggests that might be the case.

    Fresno, in California’s agricultural Central Valley, doesn’t have the glamor of the global startup centres but offers a focus on neglected sectors as Fallows quotes Jake Soberal of Bitwise Industries.

    “My guess is that 5 to 10 percent of the tech need of the farming industry is now being met,” Fallows quotes Soberal as saying. “You could build a technology industry in Fresno based on that alone, not to mention the worldwide need in agriculture.”

    While there isn’t a great need for another coffee app, pizza delivery service or online store, there are far more opportunities in other sectors to address unmet needs.

    This is probably where the opportunity lies for cities like Fresno that are trying to create their own mini Silicon Valley – build a technology sector to address the needs of your existing industrial base.

    In agriculture there’s a plethora of Internet of Things, Big Data, analytics and other technological applications that addresses issues in the industry. Farming is not the only sector which presents these opportunities.

    Fresno’s ambitions aren’t unique but as Fallows points out this is not a zero sum game and there’s no reason why dozens of cities shouldn’t be able to build their own niches with new technologies.

    Picture of Fresno from David Jordan via WikiPedia

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  • Why Singapore is building a connected city

    Why Singapore is building a connected city

    “What if we were to wire up every corner of Singapore?” Asked Steve Leonard, the Executive Deputy Chairman of Singapore’s Infocomm Development Authority, at the CommunicAsia 2013 Summit.

    Two years later that question has been answered as the island state has covered the entire island with a fibre network, putting the country on course to create what Leonard describes as a ‘sensor fabric network.’

    Speaking to Leonard ahead of his visit to Australia for the AIIA Internet of Things conference in Canberra later this month, it’s impressive what the IDA looks to do in building Singapore as a connected nation.

    “We think we have an opportunity to use some of the natural advantages Singapore has,” Leonard says. “In this case being relatively small and an island. The idea that constraints mean creativity.”

    One of the areas Leonard sees as an opportunity with the IoT is in the health care industry where chronic care care can be moved back into the community while hospitals and clinics can be used for acute patients.

    One of the challenges for every city rolling out an IoT infrastructure is the plethora of standards, “we’re trying to think about IEEE standards and we’re trying to think about interoperable as possible with technology as it evolves.”

    “Whether it’s East or West, Singapore wants to be a place where business can be done and people can be healthy,” says Leonard. “What we don’t want to do is develop a standard that might work for us but exclude us from something that originates in another part of the world. We want to be open to things that evolve.”

    Becoming a connected city is key to being a leader in a connected world, “we’re always making sure we seek to have more wireless access points.” Leonard says, “we also have one gig ninety-five percent fibre coverage across the island. We also want to enhance our capabilities through 4G and Wi-Fi.”

    “All of those things together in some sort of concert create that fabric that we’re working on.”

    Historically Singapore’s place in the world has revolved around being a trading hub which has led it to being one of the world’s biggest cargo shipping ports.

    With broadband internet access available pretty well throughout the island, it should open opportunities for entrepreneurs, businesses and government agencies to explore how ubiquitous internet creates opportunities.

     

    As the world becomes moves from physical goods to bytes, Singapore is looking to becoming as much a technological centre as a goods hub. For Steve Leonard and the IDA the task is to make sure the city takes its place in the connected economy.

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