Author: Paul Wallbank

  • Privacy and mutual respect

    Privacy and mutual respect

    Tonight was the Australian launch of the Respect Network in Sydney which followed similar events in London and San Francisco. I’ll be writing more on this over the next few days.

    One of the key questions when considering the Respect Network is how much the average internet user values privacy; the business model of the service relies upon people being prepared to pay to preserve their privacy.

    Another question is how many lies people will tell to get free or cheap stuff – respect is a two way thing.

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  • Startups as a dream job

    Startups as a dream job

    “It’s my absolute dream job” says Melanie Perkins of her role as CEO and co-founder of online design app Canva in the latest Decoding the New Economy video.

    Since being set up ten months ago, Canva has grown to over a half a million people using the tool to create graphics for applications such as books, marketing banners and website logos.

    The idea for Canva came out of the difficulties Melanie found in using design software while lecturing at university and it’s growth has been as a result of the idea catching the imagination of investors like Lars Rasmussen, one of the driving forces behind Google Maps, and Guy Kawasaki, Apple’s original Mac evangelist.

    “We’ve got some great things coming in the next few months,” says Perkins. “So stay tuned.

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  • Staying healthy with Big Data

    Staying healthy with Big Data

    US medical centre chain Carolinas HealthCare has started mining patients’ credit card data to predict health outcomes reports Bloomberg Businessweek.

    The idea is that by looking at credit information and purchasing records, doctors can anticipate what ailments their patients will present with.

    Carolinas Healthcare’s matching of spending patterns to healthy is an obvious application of Big Data which illustrates some of the benefits that mining information can deliver for individuals and the community.

    Should the project overcome patients’ valid privacy concerns, this is the sort of application that is going to be increasingly common as organisations figure out how to apply software to their mountains of information.

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  • Jumping the queue

    Jumping the queue

    Reservation Hop is a good example of many of the current breed of parasitic startups that want to create a new class of middleman.

    The hospitality industry is tough work and something guaranteed to irritate restauranteurs are reservations that don’t show up.

    One startup that seems almost certain to attract the ire of the restaurant industry is Reservation Hop – “We make reservations at the hottest restaurants in advance so you don’t have to.”

    Reservation Hop makes table reservations at popular restaurants and then sells them through their website.

    We book up restaurant reservations in advance. We only book prime-time restaurant reservations at the hottest local establishments, and we mostly list high-demand restaurants that are booked up on other platforms.

    This is probably one of the worst examples of the middleman culture that dominates much of the current startup thinking.

    Almost certainly there’s a market need for proxy queue jumpers – although one wonders how profitable it is when the transaction fees are under $10 – but this service will deeply irritate restaurant owners and diners who are crowded out by these ‘parasite’ services.

    In many ways, Reservation Hop illustrates the problems with this phase of our current startup mania; the rise opportunistic businesses that are more akin to parasites than services that add value.

    The Reservation Hop website assures patrons that there’s a 99% chance their booking will be honored by the restaurant on the night, we can expect establishments to start messing with that statistic as they wise up to the business.

    Many in the startup sector speak about how new technology improves the world, services like Reservation hop illustrate that not every idea is a step forward.

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  • Fighting a loss making business

    Fighting a loss making business

    Having deep pockets is a great help in business as the online cab war in San Francisco shows.

    As competition heats up on the streets of San Francisco, Uber is trying to put Lyft out of business by offering fares below what they pay drivers.

    This has been the long term tactic of Amazon; raise a lot of money and then run your main line of business at a loss.

    Amazon have shown you can do this for a long time if investors stay patient. Fighting it is difficult if you don’t have deep pockets yourself.

    In the long term though you can’t see this being good for customers, although in the meantime San Franciscans can enjoy cheap taxis.

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