Paul Wallbank | Paul Wallbank - Communications Professional

Designing and the IoT

The Internet of Things promises to change the world of design

A piece I wrote for IoT hub looks at how the design industry is changing as every day devices, even clothes, can start communicating with the world.

In researching the piece, it was interesting just how broad the possibilities are, particularly when we start considering main devices will be able to change their roles depending on the commands they receive or the environment they detect.

What’s clear is the design industry is facing a world of opportunities, and challenges, as not only do objects start talking to each other, but also new materials and manufacturing processes start changing how we think ordinary items should be made and used.

Building the world’s biggest small software company

Blown away by the internet, Meltwater founder Jørn Lyseggen planned to build the world’s smallest software company. Fate had different plans

“The next day I quit my job. I remember walking home that night and thinking I felt incredibly privileged to be living right at this point and I was going to see how the internet would unfold.”

Jørn Lyseggen, the founder and CEO of media monitoring service Meltwater, was describing his first encounter with Netscape 2.0 in 1995 while working on artificial intelligence at the Norwegian Computer Centre.

Today, Meltwater has 1,100 employees in 41 cities across 21 counties and Jørn spoke to Decoding the New Economy in the company’s San Francisco head office last week.

Having quit his job as a researcher, Jørn became what he describes as ‘an Internet evangelist’ in the early days of the Norwegian web and founded a series of online businesses including Norway’s first web mall.

The fourth business Jørn set up was Meltwater which they originally operated out of a shed in a disused shipyard, Shack 15. “We got free office space from one of my former clients,” he recalls. The old customer also gave them 25 old computers which they patched together to become the company’s first server farm.

Building the world’s smallest software company

“Our aspiration originally was to create the world’s smallest software company,” recalls Jørn. “We wanted to be four engineers creating the most sophisticated technology in our industry then we would sign up resellers then sit back and watch our revenue go through the roof.”

At the time media monitoring was largely made up of clipping services that would hire armies of contractor to physically cut and paste newspaper articles.

“What we wanted to do was build software that could keep track of everything that was published online,” Jørn explains. “When news started to come onto the internet then you could start to analysie it automatically. We thought there would be a better way to do this with algorithms and software.”

The best laid plans

It turned out however the plans to have a small software company didn’t work out. “We poured our heart into our technology for the first year and then we got really excited when we signed up two really respected resellers in the Norwegian market.

“They presented to 1500 companies, which is a really big number in Norway, and the results were devastating with 1499 ‘no’s and one maybe.”

For Meltwater’s founders it was a time for re-evaluating the idea. “That was a pivotal point in the company as we had to ask ‘is this a business?’. What we realised was that we were too focused on the technology and what clients are really worried about at the end of the day are the pain points.”

“Once we did that switch we started to get business and then we grew very quickly so instead of being the smallest software company in the world we set out to become the biggest in our industry.”

Going global

From there the spread across Northern Europe and the UK, “every time you start up in a new country it’s like starting a new company.” Jørn ruminates. Strangely it was Germany that proved to be the most difficult to break into. “It’s counterintuitive, you’d think the shared culture would make it easy for a Norwegian company. It wasn’t.”

The big move though was the United States, on the basis that any company with global aspirations has to be in the world’s biggest market. “Norway is a small country, we used to joke there are bus stops in New York with a bigger population than Norway.”

Jørn was surprised to find the US was an easy market to break into than the United Kingdom or Germany, “I love their open mindedness and the welcoming factor of the US culture,” he smiles.

“They are very open minded in the US, it’s a strength in their culture. In the US if you present something interesting to them they’ll accept it. The flip side is if they are open minded to you then they’ll be open minded to your competitors.”

Hiring as a key factor

Choosing the right people is the key to business success Jørn believes, with local hires being essential when expanding into foreign markets, “You need some local credibility.”

More importantly though is the importance of getting the right people early in the life of a startup business, “It’s all about culture.” He states, “make the first five to ten people the base for your platform.”

Having the right people also made it easier for his management team to delegate as executives focused on the international expansion. “We’ve got really smart young people working here, they don’t miss me when I’m not around,” he smiles.

Romanticising startups

“Back in the day it was considered you started a company because you couldn’t get a job,” Jørn laughs. “I’m the first to encourage entrepreneurship but it worries me when it becomes trendy.”

“It’s important that entrepreneurship doesn’t become too romanticised. Because it’s really hard work and most startups fail and most people have to work for years while barely getting by financially and it’s high stress”

“I never saw myself as a business person,” Jørn remembers. “I had a healthy scepticism to the commercial world, that’s why I became a research scientist because I thought it was a better use of my time.”

Becoming an entrepreneur

However the revelation of Netscape 2.0 changed all that, “it really blew my mind,” he grins as he recalls how he decided “the best way to be part of this was to be in my own business.”

Building your own business though is not an easy process and there’s tough decisions to be made. Jørn though believes that the hardest times running your own business are not when cash is tight but when the tough decisions have to be made, “sometimes you have to make calles that are challenging.”

For Jørn, he only sees more exciting times ahead as the internet evolves, “social is still in its early stage. A lot of companies struggle and worry that they haven’t figured it out, but the truth is most people haven’t figured it out.”

Paul travelled to San Francisco as a guest of Oracle

Can PCs claw back their sales volumes?

The PC industry launches a marketing campaign. It’s unlikely to win any converts

PCs can do what? Is the question being asked in a new campaign being run by Intel, Microsoft, Lenovo and Dell.

Judging from the reaction to the companies’ effort whatever PCs can do, it’s unlikely to help their at best stagnant market share.

Nine billion opportunities for fraud

The current wave of billion dollar unicorn tech companies makes a startup investment fraud almost inevitable

Everything is not all it seems at Theranos, the medical testing startup estimated to be worth nine billion dollars reports the Wall Street Journal.

If true, the allegations Theranos is using conventional technology to run its diagnostic tests mean most of the investment community and tech media have been sucked into an elaborate con.

While it’s too early to say whether the allegations about Theranos are true, with so many multi billion dollar ‘unicorns’ running around it’s inevitable somebody will try such a scam.

Indeed, it’s in the interests of many to promote such a unicorn and for those early into the company it could be immensely profitable.

Even if Theranos turns out to be for real, there will be those that won’t be.

Using city muscle to drive private investment

Can strategic public projects trigger private sector investment

Chattanooga in the US mid West introduced city broadband in 2008 in the face of legal challenges from the existing cable operators.

The operators lost in the courts and were forced to compete with the local, city owned power company’s network.

Now Wired reports Chattanooga is upping the ante by increasing the available throughput of their network to 10Gb.

While that’s good news for those businesses and households in Chattanooga that need those speeds, there’s a much more important effect that Wired points out.

Municipal broadband providers are raising expectations nationwide for what good Internet service means, forcing commercial providers to improve their infrastructure. And by increasing the amount of bandwidth available, they could be setting the stage for the creation of new, more bandwidth-hungry applications. This is how better service goes from a “nice-to-have” to a “you’d-better-have” for the country’s recalcitrant cable companies.

A few municipal projects could be the trigger to getting better services across the country. This is a model that could work in many other fields as well.

Rethinking business IT

How is business being reinvented in a world of cloud computing.

Last week at the AWS:Reinvent conference in Las Vegas, I had the opportunity to interview the company’s Global Head of Enterprise Strategy, Stephen Orban about where he and Amazon see the direction of the cloud computing market and how business practices are being reinvented.

Among the things we discussed was Orban’s seven best practices for a company’s journey to the cloud, gleaned from his own experiences in his AWS role of advising clients on adopting and his previous experiences as a technology officer at Dow Jones and Bloomberg.

Orban laid out what he thinks are the keys to success in a company heading to the cloud in his own blog post and during our conversation he expanded on his ideas which also very much reflect the changing role of the CIO or IT manager.

Supporting the C-suite

The first point is the IT department has to understand the business and align technology with the organisation’s objectives.

“Somebody who understands technology who can merge technology with the business needs” will be better able to win the confidence of management says Orban.

Doing that is the key to winning support from the executive suite Orban believes. Once CIOs have that trust from senior management it gives their teams the space to experiment with new ways of delivering value to their companies.

Education

“The second thing is to provide training and education,” Orban says. “People tend to get a bit anxious of what they don’t know, particularly when it affects their jobs.”

In Orban’s experience, having informed staff makes them more open to change within the business, “with the transformation I went through at Dow Jones, most of what we accomplished was because of the people who’d been there a long term. They had the institutional memory but they were very open minded.”

Foster a Culture of Experimentation

One of the great benefits of cloud computing is how it lowers the costs of experimentation and development, “gone are the days when it cost hundreds of thousands of dollars, even millions, to try something.” Orban says.

Learning what works and fails is essential, he believes. But as long as there is executive support then a tolerance towards unsuccessful experiments will develop in the organisation.

Working with partners

Outside parties are essential to most organisation’s IT systems and Orban believes partner ecosystems have changed with the advent of cloud computing. “There’s a whole new breed of partners that have been going through this,” he says in citing ‘born in the cloud’ software developers and systems integrators who are changing how projects are being delivered.

Build a Center of Excellence

“Creating a center of excellence is, I think, one of the key practices any organisation should invest in. You want a body of people who can institutionalise best practice within an organisation,” observes Orban.

As cloud services take away the complexity of computer systems it becomes an opportunity for organizations to rethink boundaries between the IT department and business operations.

Move to the cloud

Given Orban’s employer it’s not surprising he sees cloud computing as key to a company’s transformation however he admits that few organisations will make the jump straight into cloud services.

“Hybrid will be a part of every enterprise’s journey. Any company who’s been doing IT for any period of time will have existing investments,” he says. “Our view is that we will make it as easy as possible to create that bridge.”

“We do believe in the long run that enterprises will find they become so much more effective over here (in the cloud) they will move in that direction.

A Cloud-First Policy

Once an organisation has its cloud strategy and experimentation culture in place then having a ‘cloud first’ policy, “it reverses the burden of proof away from ‘why would you use the cloud?’ to ‘why wouldn’t you?'”

While Orban is emphasising the Amazon Web Services view of the world where ultimately all business computing will be done on the cloud – preferably their cloud – his views illustrates the change facing businesses as they implement online technologies.

For most, the availability of easily accessible cloud computing services is an opportunity to rethink their business processes and how organisations can deliver the best products quickly to their customers.

Social Media’s celebrity obsession

A constant with social media companies is their fascination with celebrities. This hurts their credibility.

A constant with social media companies is their fascination with celebrities. At the first opportunity they’ll trash their credibility and burn their credibility with users to curry favour with a b-list celebrity.

The most damaging example of this was Google making an exception of its ‘real names’ policy for celebrity Google+ accounts. In making an exception for pop stars, the company destroyed any argument it had for insisting users had to use their birth names in order to use their service.

In their quest to be relevant Twitter’s management has consistently made itself look like a simpering bunch of star struck groupies in pandering to celebrities. Which they’ve done one again with their Moments service as Josh Dickson point out.

Probably one of the worst examples though is the story of Andrés Iniesta and his Instagram account.

One morning last week Iniesta found his Instagram account had been suspended for breaching the ‘terms of use.’

Iniesta was baffled and couldn’t find how he’s breached the terms, three times he tried to reach out to Instagram and was ignored. In the meantime his Instagram account started posting pictures of his namesake, a Spanish soccer star.

Only after posting his story on Medium did Iniesta get a response – and an apology – from Instagram’s PR people.

It turned out the only breach Iniesta had committed was to be born with the same name as a FC Barcelona star.

Despite having not actually breached Instagram’s terms and conditions, Iniesta had his account taken with no notice and certainly no process.

For the thousands of ‘social media influencers’ and the brands trying to use these service as channels to connect to a fragmented audience Instagram’s actions are a reminder that all their efforts are built on sand – years of work can be wiped out at the whim of a faceless and unaccountable bureaucrat.

Ultimately it’s the social media services who lose the most from their high handed treatment of their users, as it becomes apparent to both advertisers and ordinary account holders that everything they post is impermanent then the trust in the service is gone.

The greatest hypocrites in today’s business world are the social media services – Twitter, Facebook and a host of others which want you to share your intimate details with them for their own commercial use.

As Andrés Iniesta found, the social media service’s commitment to openness and transparency vanishes the moment a user has a problem.

For celebrities, or those well-connected, no such problems exist. One instant message or phone call to their contact within Facebook, Twitter or Google and the problem is fixed.

Ultimately though that insider game and obsession with celebrity will undo the social media services. For the moment though, all their pretences of being identity services or journals of records should be taken with a lot of scepticism.

A day trip to the Grand Canyon

The Grand Canyon is a long, but doable, day bus tour from Las Vegas

Las Vegas exists as a fleecing machine for tourists and for the impoverished freelancer stuck in the town over a weekend, the best idea is to get out of it.

So the Grand Canyon sounded like a good idea, despite being a long day – departing at 6.30am and returning after 9pm – the price of $79, plus gratuities to the driver, sounded like a good way to spend the Sunday.

The day didn’t start out well with the connection bus not showing up, the Mandalay Bay separate Tour Lobby on a different floor to the main lobby where I was standing. It was apparently beyond the ken of the connecting driver to call my number to check if I were around.

Adding to the irritation was calling the Grand Canyon Tour company directly, as instructed, five minutes after the scheduled time only to be told ‘he’s running late, just wait”. Twenty minutes later on calling the company again I was told I wasn’t there for the pickup, something they could have told me earlier.

Panicking, angry and anxious about missing the bus I jumped in a cab to get to their depot. Fortunately my hotel wasn’t too far from the company’s depot and the fare was only $15, for other passengers it could have been substantially more.

Long check in queues

It turns out there was little need to be stressed about missing the, the tour company’s shuttle buses drop passengers off at a central check in place where the queue was literally out of the door. After check in you can pick up a complimentary breakfast Danish and a coffee of tea and buy bottles of water before boarding the bus.

Bottled water isn’t available in the Grand Canyon park area so bring your own container, or buy some for a dollar each at the Las Vegas check in terminal, you can refill them in the park or at Williams railroad station at the lunch break.

The right hand side of the bus is best for views, particularly in the desert during the first two hours before a refreshment break just outside of Kingman, Arizona. Castle Peak Bar and Grill is the quirky desert truck stop that acts as a refreshment stop and the food isn’t recommended.

Running commentaries

As the tour continues, the driver gives a running commentary of the sights on the way accompanied with videos on the Grand Canyon and Hoover Dam. If you’re doing the Hoover Dam journey another time, it’s worthwhile to do it after this tour as one of the videos is a documentary on the building that will help you appreciate the project even more.

The videos help while away the ten hours of travel and the bus also has Wi-Fi although you’ll probably find a better signal with your own mobile device. The seats also have power sockets available although I didn’t get to test them.

One thing to remember when booking the tour is gratuities are not included and the driver expects a tip. Budget for five or ten dollars each.

After Kingman, the next step is Williams, Nevada, a tourist town that features the oldest diner on Route 66 and the terminus for the privately operated Grand Canyon Railroad where the company puts on a complimentary lunch.

Enjoying a lunch

Lunch is a surprisingly good buffet featuring soups, salads and hot dishes with a soft drink thrown in, the swirl icecream cones are nice touch. If you have a water bottle to fill, there’s a filling station outside the restrooms at the other end of the station from the restaurant.

Williams is an hour from the Grand Canyon and the tour stops twice. It’s worth getting off the bus at Mather Point, the first stop, and then taking the Rim Walk around to the main Village which is the collection point. If you do this, let the driver know and find out the time he expects to leave.

In our case the bus was late due to several people being lost. This is a problem when the return to Las Vegas is well into the evening. There is a dinner break at the Kingman Carls Jr on the return leg.

Good for a quick tour

Overall, the Grand Canyon tour is a good trip if you’re in Las Vegas and on a short schedule. However it’s certainly better to give the canyon more time and stay overnight.

If you can find accommodation in the main village – when I attempted it was fully booked – then taking the tour company’s one way option each day or hiring a car would be far better given the National Parks runs evening tours and both sunset and sunrise are spectacular times with the opportunities to see more wildlife.

Should you have several days, having a car to explore Boulder, the Hoover Dam and Williams along with spending one or two nights in the park would be highly recommended.

For those time poor and based in Vegas, the Grand Canyon tour is a good option, however the big gripe with Grand Canyon Tour Company is its organisation. To avoid future customers having the incredibly irritating experience of missing the shuttle due to being in the wrong place, the company could do with more streamlined procedures and even a better use of technology – such as SMS notifications.

Fading giants move to support each other

Merging two fading giants is unlikely to save their fortunes in the face of a declining industry.

Two struggling tech giants are reportedly set to merge with persistent rumours that Dell is about make an offer for storage provider EMC.

Both companies have been hit by shifts in the computing industry with cloud computing undermining both businesses, Dell was also hit by the collapse of the Windows upgrade cycle which changed the buying patterns of computer purchasers.

A combined company offers some theoretical advantages in bringing together one of world’s biggest server companies with a storage business, however it’s difficult to see how the two businesses combined would slow the decline of the segments both are strong in.

Mergers can slow the decline of companies like EMC and Dell, but without innovating and finding new opportunities to exploit it’s unlikely they can recover lost ground.

Riding the rails of the global economy

A US train ride illustrates the need to stimulate private and public investment

Irish economist David McWilliams reflects on how a train ride between Boston and New York illustrates how a lack of investment in the US and over capitalisation in China has affected the global economy.

A lack of public investment is hurting the US in McWilliams view and that’s exacerbated by a reluctance of the private sector to commit to new productive assets and projects. Weak investment affects household wealth and savings, it also means the low interest rates are encouraging speculation rather than economic growth.

Meanwhile in China, the nation’s massive expansion has created a global glut in manufacturing capacity. That makes business even more reluctant to invest in plant and equipment while creating risks for the commodities based economies like Russia, Brazil and Australia that feed that machine.

One aspect that McWilliams overlooks is another shift in the global economy – the shift to smaller scale manufacturing and automation, “real investment tends to be in big machines that make big stuff,” he says.

That investment in big machines may not be the economic driver they were half a century ago as building and maintaining the machines themselves are no longer labour intensive. Furthermore, the manufacturing of tomorrow may well be much more distributed and on a local, smaller scale.

McWilliams’ points though are well made. We need to be looking at how to stimulate private investment in productive assets while looking at the public investments that will enhance our economies and improve our living standards.