Paul Wallbank | Paul Wallbank - Communications Professional

The real digital divide

We’re often told that there’s a divide between the “digital natives”, those who grown up with computers, and the “digital immigrants”, those who’ve had to learn about computers. In reality this isn’t true, the real digital divide is about being prepared to learn and explore the possibilities being opened up every day by the Internet and computers.

The real digital divide isn’t between the young and the old; it’s between those who are prepared to explore new technologies and those who hide from change.

We’re often told that there’s a divide between the “digital natives”, those who grown up with computers, and the “digital immigrants”, those who’ve had to learn about computers.

In reality this isn’t true, the real digital divide is about being prepared to learn and explore the possibilities being opened up every day by the Internet and computers.

I was reminded of this shortly before Christmas when talking to a group of forty year old business owners who dismissed Internet tools like Twitter and LinkedIn out of hand – “a waste of time” “just for kids” and “I tried and received Chinese spam” being a few of the objections.

The contrast is the Australian Seniors Computer Clubs Association who prove you’re only as young as the computers you tinker with. These seniors, some of whom were retired well before computers became commonplace, are prepared to explore and discover possibilities that change their lives and the lives those around them.

The forty somethings all had successful businesses and they were the first to admit mobile phones, email and websites had changed the way they work. Yet nearly half of them didn’t have a website for their own business; a statistic consistent with business surveys that find almost 50% of small enterprises don’t have a website.

In many respects these businesses and their owners are reminiscent of the handloom weavers of the early 19th Century. At first technology worked in their favour and pushed wages up but as industrialisation continued they found their skills redundant and incomes falling. Eventually their trades and businesses disappeared; which is what will happen to complacent companies and industries in today’s industrial revolution.

A similar thing is happening to society and individuals. While you won’t disappear if you aren’t using the net, those who won’t will find it harder to do pay bills, communicate and simply get things done. Eventually they’ll find themselves marginalised as not being connected will make it harder for family and friends to keep in touch.

All of this is unnecessary, it’s just a matter of being prepared to try and to give something a go. The real digital divide is between those who choose to give things a go and those who don’t.

The coffee revolution

One of the great misconceptions about the internet is how it isolates people from society. The truth is the net is a window on the real word that allows you to discover the networks that can help your business.

A good example of this are the “coffee mornings” springing up in our cities and towns where business people are using internet channels like Twitter and web forums to organise meet ups at cafes, which in turn develop into new business and social networks.

Because the coffee mornings are informal and have no organisers, obligations or rules, beyond making sure you pay for your coffee and eggs benedict, people feel free to come and go. They are perfect for time poor or isolated business owners, particularly those working from home or trying to juggle their family and business commitments.

The great thing with these coffee mornings is how they help develop useful business networks. People who otherwise would have never met are now becoming friends, mentors, clients and business partners.

There are always some losers from new opportunities and in this case it’s the structured business networking organisations, as there are no stiff membership fees or obligations to network and get referrals.

Unlike many traditional chambers of commerce the coffee mornings lack committees and officials, so they aren’t dominated by the small cliques you often find in formal business groups.

A whole way of doing business is changing from something as simple as groups of people deciding they have enough in common online to get together for coffee.

While this is bad news for those who’ve paid for networking type franchises, it’s a wonderful opportunity for business owners to connect with fellow entrepreneurs they otherwise wouldn’t have connected with – particularly those in regional areas.

If you want to organise a coffee morning in your suburb or town, get on the internet. You’ll be surprised at the like-minded business owners, customers and supporters who are on services like Twitter and Facebook.

Should you find there is already one happening in your neighbourhood, go along. The lively, intelligent people you meet might help you see some of the opportunities, and threats, on your doorstep.

The new economy

The final slide of Steve Jobs’ iPad launch sums up where the new economy is going. The tech and creative industries have come together and the results will be the great drivers of economic growth for the next 50 years.

The final slide of Steve Jobs’ iPad launch shows how the tech and creative industries are coming together. The results will be the great economic drivers of the 21st Century.

Steve Jobs’ launch of the iPad was the classic succesful Apple product launch before adoring fans however the bigger picture from the show is identifying where the world is heading as technology and arts come together.

With Apple and Jobs this is nothing new. Apple’s great success has been from incorporating well designed and Engineered product in markets where their competitors have been more on price points and often poorly implemented features.

Releasing products that work well with inuitive interfaces has allowed Apple to sell their products at a premium while their competitors in the computer and mobile phone markets have found themselves dealing with declining margins.

Regardless of wether the iPad itself succeeds or fails it shows though is how powerful the combination of good design and clever Engineering are in the new economy.

Why online listings are an essential business tool

Online listings with the major search sites are free and effective. Even more importantly, those listings form the basis for many of the location based services that are springing up on Smart Phones. You need to list your business on these sites to make sure they are appearing in the searches customers increasingly rely upon.

Online listings with the major search sites are free and effective. Even more importantly, those listings form the basis for many of the location based services that are springing up on Smart Phones. This article originally appeared on the 19 January Smart Company Business Tech Talk column.

Since Global Positioning System (GPS) equipped smartphones arrived on the market, we’re seeing all kinds of location based phone applications springing up.

Recently I’ve been playing with two of these services – Foursquare and Urban Spoon to find there are some lessons for businesses in how these products work.

These services are terrific at telling you where the nearest cafes, service stations or places of interest are, although at the same time I’ve noticed how inaccurate some of the business locations can be.

Often, particularly in the case of Foursquare, the wrong spot has found its way into the system because customers have taken a guess at the address, added the details while on the way to or from the business or just simply got the location wrong. Which can be awkward, particularly if your competitors are closer to the incorrect location.

So it’s worthwhile getting your businesses address correct on these services. Fortunately, it isn’t as hard as having to track down every single one of these new services and spend hours plugging your details into them.

The most important single service is the Google Local Business Centre, as many of these location based services use Google Maps. Every business should be on this already as the listing is free and the information also feeds into Google search results. If your organisation is correctly listed here, it will appear in all Google searches for your product in your neighbourhood.

Microsoft are in this market too with their Local Listing service which feeds into Bing results in a similar way to Google’s service. Like Google Maps, it’s free and listing only takes a few minutes.

The traditional advertising medium for most Australian small businesses has been in the Yellow Pages. Sensis also offer a free listing which will get you in their maps and directories (although to get a priority listing you’ll need to pay more).

So check your details are correct on all these services, it only takes a few minutes and given most customers, particularly in the business-to-business markets, use the web to research potential suppliers you’ll probably pick up a few customers just by having the right details online.

With mobile internet usage expected to overtake desktop surfing in the next few years, it’s critical your details are correct on these phone applications which customers are going to increasingly rely upon.

Twitter is like CB radio and this isn’t a bad thing

Of all the predictions we can make for 2010 one good bet is social networking is approaching, if not past, the fashionable peak of the hype cycle. Particularly Twitter which we’ve seen pronounced dead by various writers over the break.

Last week’s Las Vegas Consumer Electronics Show illustrates the Hype Cycle we discussed just before the Christmas break. If there’s one thing for sure, we can say tablet computers, 3D televisions and Google phone are racing to see which will be the first to the “peak of inflated expectations”.

Funnily, we’ve been here before with mobile phones, tablet PCs and 3D entertainment so it will be interesting to see where these are in 18 months or so.

While it’s entertaining looking at the new gadgets, the interesting action is happening on the other side of the peak where real uses for technology and gizmos are found after the hype moves on to something newer and prettier. When the bored fashionistas move on from a product that’s no longer the newest and shiniest we see if something is genuinely useful or just a pointless fad.

My favourite comment was from an weekend newspaper entertainment columnist stating the Twitter hype was driven by “Boring Old Farts Suddenly Discovering Technology” and the whole thing is now dead because an MTV host declared she was over Twitter. The Luddites are crowing that Twitter, Facebook, LinkedIn and the entire Internet thingummybob can join CB radios in history’s discount bin of overhyped technology.

Citizens Band radio is a good lesson of what happens as a product moves through the hype cycle. In the mid 1970s peak, songs were being written about it and the media was awash with spookily similar stories of how CB radio was ushering in a new era of participatory democracy. Within a couple of years, the hype had passed and those who had a use for it, such as truckies, farmers and service people, got on with their work without the kids and newbies hogging their radio channels.

Exactly that process is happening now with the various online networking tools. The naysayers will crow they were right all along about a fad for boring old farts while unknown to them entrepreneurs will be figuring out ways to make money from these tools and smart businesses will be using them to stay ahead of their slower competitors.

As well as the trendies moving on, the social media snake oil sellers who’ve traded on the social media hype over the last two years will also move on to the Next Big Thing or go back to selling multi level marketing schemes. The honest consultants and genuine experts who survive the shakeout will be able to genuinely add value and help their clients achieve more with the tools.

So a product or technology passing the peak of the hype cycle is an excellent opportunity to use it do great things for your business without the fashionistas and snake oil merchants distracting you. Don’t be afraid to experiment just because the PR machines and fashion victims have moved on.

2010: The year ahead

With the new year underway, it’s time to stick one’s neck out and make a few predictions for 2010. Smartphones and cloud computing will continue their rise, publishing empires will fall and the smart nimble businesses will thrive.

With the new year underway, it’s time to stick one’s neck out and make a few predictions for 2010.

Some predictions are easy, describing a trend that’s already underway. Others though are fraught with danger as it isn’t clear just how far media proprietors, telcos and other industries are prepared to go in protecting their old, threatened business models.

The big factor for 2010 is the world economy. If the green shoots of recovery continue through 2010 then the year will be very different from the one where the recovery is overwhelmed by another wave of bad news. Although for the technology sectors, either alternative may just accelerate trends that would happen regardless.

Each of these predictions are just a few short thoughts on each sector, over the next few weeks I’ll expand on most of these ideas, starting with the fast changing sectors such as cloud computing, social media and mobile telephony.

Smartphones continue their march
The proportion of smartphones sold will steadily increase as prices fall and consumers recognise the advantages. This will also drive development of mobile phone applications.

Telcos will struggle
As smartphone use increases, Telcos will struggle with the demand on their networks as we’ve seen with AT&T in the US. It may even be possible to see data prices increase as Telcos attempt to reduce traffic on overloaded systems.

Hardware prices will continue to fall
It’s a rare year we see technology hardware prices rise, but 2010 will be a particularly tough year for manufacturers as the world wide demand for computers stays subdued. We may even see some East Asian governments bail out struggling manufacturers because of these industries’ perceived strategic importance.

Social Media Hype Peaks
This is an easy prediction as for some months we’ve been seeing breathless reports on how Twitter is dead, Facebook’s growth is slowing and the whole social media thing was a passing fad for teenagers and technology dazzled forty somethings. We’ll see more of those stories through the year and probably see “what happened to Twitter mania” stories at the end of the year.

For smart workers and business this is a wonderful opportunity to experiment and grow using these tools while the luddites think they have won the war against pointless tech toys.

The death of the social media expert
As the hype exits the market, so too will the SEO and social media snake oil sellers. That’s not to say the entire SEO, social media training and consulting industries will fold; honest providers who add genuine value will survive, although some will find 2010 to be a tough year.

Things get worse for traditional media
As audiences continue to fragment and the advertisers cast their nets wider, things are going to go from bad to worse for the traditional media outlets. Reality is going to bite as once reliable cash cows go completely on line leaving publishers to deal with dwindling revenues and massive losses.

Paywalls work (kind of)
Newspaper proprietors will find Pay for View and paywalls can work, but the product has to be worth paying for. The realisation that readers aren’t prepared to pay for recycled agency stories, rewritten press releases and celebrity gossip will probably be the final straw for many magazines and newspapers.

Content wars are won and lost
As the most of the paywalls will fail, so too will the content farms. Early signs are these aggregators who either steal or publish cheap content are hurting bloggers and traditional media outlets, but over time this business model will collapse as thousands of identically worded rip off sites compete for search engine rankings. Expect Google’s, Bing’s and other search engines’ algorithms to get better at spotting these sites, further hastening their demise.

The cloud grows
As equipment and other Internet costs fall, the attraction of cloud computing and web2.0 will grow. Increasingly businesses, both big and small, will be finding the cost and utility benefits will make cloud computing an opportunity they can’t afford to miss.

The big question is where the world economy is going in 2010. The challenge for political and business leaders is to use the opportunity presented by the massive stimulus packages to put in place the reforms taming the excesses of the last decade which caused the Global Financial Crisis. Whether they are up to that challenge, or whether they get swamped by other wave of economic trouble, will be what 2010 is remembered for.

Regardless of where the economy goes in the short term, the continuing rise of cloud computing and smart phones means there are massive opportunities to be had. Fortune is going to favour the brave and those who can adapt quickly to a rapidly changing business world.

How marketing and business are interwined

Entrepreneur magazine discusses changing your definition of marketing. While Dan Kennedy has some good examples of businesses that have used tools such as membership and market positioning to grow, I’m not sure they can be treated as marketing.

Entrepreneur magazine discusses changing your definition of marketing. Dan Kennedy has some good examples of businesses that have used tools such as membership and market positioning to grow, but I’m not sure they can be treated as marketing.

All of the examples; Starbucks, Disney, Florida timeshares, barbers and gourmet pizza shops illustrate some great business models which is exactly what they are; ways of doing business that engage the customer and sell a better product.

The marketing aspect is simply telling the story of why the business is better, unique or why it does something so well.

One of the problems with marketing is it’s often about telling porkies, not about describing the product or why the business is unique. This type of marketing fails when the customer finds they’ve been sucked in.

In the past, big brands have been able to get around this by using mass media to shout it louder and stronger on the idea that if you repeat the lie often enough, people will believe it.

Marketing is part of your business DNA, you have to tell your story to get business. The key is to be telling a true story based on your product’s strengths.

The Sleazy Carnival

Seth Godin set up a friends computer and found “the digital world, even the high end brands, has become a sleazy carnival”

Seth Godin set up a friends computer and found “the digital world, even the high end brands, has become a sleazy carnival” as he clicked his way through dozens of pop ups, offers and confirmation windows.

The only real surprise is Seth can’t have set up a Windows computer for some time as crapware has been the bane of IT techs for years. At the 2007 Consumer Electronic Show Micheal Dell notoriously pointed out this crapware was worth $60 per computer.

Dell’s point was valid in one respect; if you are selling at unsustainable price points then you have to do everything you can to improve your profit margins.

At the beginning of 2010, Dell find itself locked in the low value, low margin end of the industry with a declining market share at a time when US consumers are banging shut their wallets. It’s fair to say Micheal has reaped what he sowed.

It’s unfair to just single Dell out – cost cutting, upselling and downright double dealing is endemic in the IT and electronics industry and the vendors only have themselves to blame as they trained customers to fixate on price and then struggled to claw back a decent profit.

The tech sector has betrayed its customers and only has itself to blame for the lack of trust and declining profits.

The new business tools

Probably the biggest highlight of a fast, hectic 2009 was November’s X Media Labs in Sydney which illustrated just how the world is changing as a result of new media channels, faster Internet and more powerful computers.

The organisers of X Media Labs, Brendan Harkin and Megan Elliot, describe it as “a meeting place uniquely designed to assist companies and people get their own creative ideas successfully to market, through concept development, business matching, and direct access to world-class networks of creative professionals.”

Brendan and Megan held the first event at the Sydney Opera House in 2003 but have since relocated to Shanghai. The Chinese connection was strong with the guest speakers including property developers and social media entrepreneurs.

Wang Xing, founder of Chinese social networking sites, Fanfou and Xaionai impressed everyone with the size and growth of the Chinese Internet market. It left no doubt where the eyeballs and where the wallets will be as we continue into the 21^st Century.

More challenges were presented by Zheng Xaioping, founder of property developer BAZO, who went through the growth of Chinese cities and the directions government and investors are taking within those cities.

A local success was Zareh Nalbandian of Sydney’s Animal Logic who showed some behind of the behind the scenes footage of Happy Feet and a US advertising campaign for fast broadband featuring a jet engine assisted shaved rabbit. It illustrated how exciting, quirky and innovative work is being done in Australia.

To show the US isn’t out for the count, Susan Bonds, president of 42 Entertainment, showed how bringing together many strands of the online digital media tools created a massive alternative reality game for the movie Dark Knight.

Probably the most exciting presenter was Professor JoAnn Kuchera-Morin from the University of California’s Santa Monica Nanotechnology Allosphere. Her talk, a version of which is on the TED website, showed the possibilities in the new economy as arts, science and technology come together.

Not everybody has the resources of the US National Science Endowment, a big movie studio, or the Chinese government to support their projects, but as Brasserie Bread showed a few months back you can create a buzz using some of these tools quickly.

That’s the challenge for all of us over the Christmas break – to figure out how we can harness the power and opportunities the second decade of the 21^st Century is going to present us.

Spam of the year

While cleaning out the IT Queries mailbox I came across a funny spam

While cleaning out the mailbox of IT Queries I found this among the spam messages;

HELP! I’m currently being held prisoner by the Russian mafia and being forced to post spam comments on blogs! If you don’t approve this they will kill me. They’re coming back now. Please send help!

Sometimes you can’t help but laugh.

The Technology gripe line: ABC Nightlife computers

Paul Wallbank joins Rod Quinn for ABC Nightlife computers from 10pm on Friday, December 18 to rant about what bugs us about technology.

Tune in across Australia on your ABC Local Radio station or listen online through the Nightlife website.

You’re welcome to join the rant. Feel free to call in on 1300 800 222 and tell us what irritates you about the Internet, computers, mobile phones or anything else that goes beep.

Paul Wallbank joins Rod Quinn for ABC Nightlife computers from 10pm on Friday, December 18 to rant about technology; its bugs, errors and things that simply don’t work as they should.

Tune in across Australia on your ABC Local Radio station or listen online through the Nightlife website.

You’re welcome to join the rant. Feel free to call in on 1300 800 222 and tell us what irritates you about the Internet, computers, mobile phones or anything else that goes beep.