Author: Paul Wallbank

  • You’re going to need a bigger app

    You’re going to need a bigger app

    “It has to be disruptive technology,” bleated the consulting firm facilitator at the Future Transport Summit in Sydney earlier this week.

    The hapless, but well paid, consultant — a depressingly frequent feature of Australia’s current ‘ideas boom’ — was protesting when one of the participants at his ‘ideation session’ had raised topics such as integrated timetables and changing commuting habits.

    Mr Consultant’s running orders for his ‘ideation session’ were to focus on ‘digital disruption’ and his employer;s cluelessness illustrates a danger for business leaders and policy makers.

    Selling the snake oil

    Digital disruption is real however it’s not just the only factor facing governments and industries. Demographics, economics, politics and climate change will have greater influences on business and society.

    Uber, the favourite lovechild of those spruiking digital disruption snake oil, is a very good case in point. While the service certainly has disrupted the taxi and motor vehicle industries, these sectors were facing major challenges as governments enacted policies to reduce carbon emissions, voters became tired of cartel like taxi companies and the Western world’s young and wealthy moved back to the cities and away from owning motor vehicles.

    If anything, Uber was the result of GenY entrepreneurs like Travis Kalanick finding existing services didn’t meet their needs rather than the result of technology desperately looking for a problem to solve finding a niche.

    Complex changes

    While the smartphone was critical in Uber’s success in disrupting the global taxi industry, technology was only one facet of a much more complex set of changes.

    The motor industry is a good example of the complexity of change. A hundred years ago it was clear the transport industry was about to be disrupted by the automobile, it was by no means obvious access to affordable personal transport would allow urban sprawl and the suburbanisation of western society.

    Coupled with the motor car and truck, the availabilty of mains electricity meant refrigeration also became accessible which lead to the rise of supermarkets after World War II. This disrupted the local corner store in ways shopkeepers could never have foreseen in the interwar years.

    Shifting demographics

    Now, the opposite is happening as the young and affluent reject long commuting times from distant suburbs and city densities start increasing.

    The social and economic factors that drove Uber are affecting public transport usage patterns and it’s no coincidence that the cities where ride sharing services have most successful, such as Sydney, also have underfunded public transport systems that are struggling to meet their population’s demands.

    Which brings us back to the foolishness of discussing the future of transport only in relation to technology. Smartphones, apps, big data and the internet of things will all be critical parts of future transportation but the social and economic factors will shape how people use the networks.

    Focusing on technology while ignoring the other big influences is a folly that will cost businesses and government dearly. Although one suspects the management consultancies will do well regardless of how well change is managed.

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  • The Internet of Things runs ahead of standards

    The Internet of Things runs ahead of standards

    A week or so ago we reported why LogMeIn’s CEO, Bill Wagner, wasn’t interested in participating in the Internet of Things industry groups as they are too bureaucratic and slow in a fast moving sector.

    Last week I asked John Stewart, Cisco’s Chief Information Security Officer, about how the networking giant thinks about this attitude given Cisco is a key member of a number of IoT standards groups.

    Stewart’s view is nuanced, “the notion of open operability versus standards is where the world needs to be. We’ve been pushing this notion of open interoperablity knowing that standards might take longer but yet you don’t want to create these islands of operational capabilities that need to be stitched together in weird ways. That would add friction to the world.”

    “There’s not much room for non-interoperable systems as they would have to connect with something else,” Stewart added.

    In this, Cisco’s Stewart agrees with Ericsson’s Esmeralda Swartz who believes device diversity will beat vendor’s attempts to lock customers into their IoT platforms.

    While it may be true that industrial and smartcity technologies will be interoperable in order to work within complex systems, it’s highly likely many consumers devices will be locked into proprietary systems so vendors can monetize them.

    For consumers, users and citizens the questions of interoperability and standards are going to be a pressing question as connected devices become common and in some cases unavoidable.

     

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  • Innovation as a safe word

    Innovation as a safe word

    After two complacent decades Australia’s pivot away from a mining and housing  based economy is promising to painful. In anticipation of the punishment to come, the nation’s political and business leaders have devised a safe word they hope will ease the pain — innovation.

    That safe word was desperately repeated as a group of “innovation rock stars” gathered last week at Sydney’s Knowledge Nation summit, billed as bringing together the nation’s leaders to drive the implementation of the Australian Government’s National Innovation and Science Agenda.

    Knowledge Nation showed that despite having a safe word Australia’s Anglo-Saxon, male dominated elites aren’t prepared for an economic pivot and true change in the nation will have to be a grass roots movement led by small business and community groups.

    A lack of diversity

    Notable in the selection of “key leaders from the innovation, science and technology ecosystem, including entrepreneurs, business leaders, investors, researchers and scientists, and policymakers” was the lack of diversity.

    A look of the speaker list showed only four of the fifteen speakers being women and only one of the 15 not being from an Anglo-Saxon background.

    One of the baffling things about modern Australian is the how few from non-Anglo groups feature among the ranks of the business, politics or media leaders. Yet Australia’s greatest success has been in integrating the successive immigration waves over the late Twentieth Century.

    A visitor to Australia could be forgiven for not noticing the country’s diverse population as the media, politics and business is dominated by those of British heritage. For the country, this is a tragic wasted opportunity and was reflected in the line up of ‘innovation rockstars.’

    Disjointed government

    The political ‘leadership’ also reflected that lack of diversity with three Federal government ministers — all men and no opposition, state or local figures — lined up to recite the grab bag of thought bubbles that are what now passes as policy in Australian government.

    Ministers offered succession of turgid recitals of disjointed programs which do little to address Australia’s structural barriers towards innovative businesses or the wholesale defunding of education institutions although the Innovation Minister’s snarling response to an academic’s question about R&D spending told much about their defensive posture.

    The political ‘leaders’ illustrated a key problem in the nation’s pivot. The long term failure of consistent planning across portfolios means no Australian investor, entreprenuer or student can have any confidence in government policies over a five or ten year horizon when policies barely survive one ministerial thought bubble.

    Overall though the biggest gap in the Knowledge Nation summit was its focus on government — the real weakness however lies in the corporate sector where inward facing service industries are distributing more on dividends than in research and development.

    Inward focus

    That inward focus, articulated well by Freelancer.com CEO Matt Barrie who described how almost all of the nation’s twenty biggest corporations are domestically focused service businesses, is the real problem facing Australia as it tries to pivot its economy away from being dependent on the fading Chinese commodities boom and domestic property speculation.

    A lack of globally competitive businesses leaves the nation exposed as most employment is in organisations that are unable to survive outside a relatively protected domestic market. It also means these companies don’t see the need to invest in research and development as their fat profits are dependent upon market dominance rather than innovative products and services.

    Barrie also had the only challenging idea in a day that promised many of them, the somewhat tired trope of abolishing Australian state governments.

    Government focus

    It’s quite touching that Barrie sees Australian Federal governments as being havens of intelligent, long term policy making when all the data indicates otherwise. The very idea of Canberra running education given its flip flopping on the Gonski reforms, confused policies on university funding and ideological obsession with funding elite private schools is, quite frankly, derisory.

    That the most challenging idea out of the day was the old chestnut of flattening Australian government speaks volumes of the dearth of original thinking coming out of the nation’s business and political leadership.

    In truth, Australian business needs to be snapped out of its inward rent seeking focus while the household sector needs to be weaned off speculating on residential property. These require real policy reform and cultural change.

    Little leadership

    Knowledge Nation showed there no understanding, let alone no appetite for that reform or change from Australia’s elites and as the Australian economy starts to feel the pain from twenty years of complacency we can expect the safe word of ‘innovation’ to be increasingly used by the nation’s elites.

    The lesson from Knowledge Nation is Australia’s economic pivot will come from the grassroots. It will be startups, small businesses, community groups and local governments that will lead the change. Australians waiting for government support and corporate leadership will be waiting a long time.

    In meantime, squealing ‘innovation’ at every sign of economic pain will be occupying much of the time of Australia’s comfortable Anglo elites.

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  • The responsibility of choices

    The responsibility of choices

    “Making rich people richer is not disruption, it’s the same old bullshit” says design guru Mike Monteiro in a speech given last June at the USI Conference in Paris.

    Monteiro’s point is telling at a time when much of the tech industry’s business model is based upon solving the problems of rich white men, attracting investments from funds run by rich white men and then selling the venture to a corporation run by rich white men — what this blog calls the Silicon Valley Greater Fool model.

    “How Designers Destroyed the World”, is Monteiro’s call to arms for the design industry. In it, he lays out four fundamental responsibilties that should guide how designers work; a responsibility for the world we live in, a responsiblity to the craft of design, a responsiblity to clients and, the most important of all, a responsibility to yourself.

    “The work you do defines you,” says Monteiro about that responsibility to yourself. “I found when I started saying ‘no’, the clients listened. When I lost a bad job, a good job appeared.”

    Monteiro’s view is designers are in a position of power. In truth though, we may all have a small degree of power in what we choose to do and choose not what to do.

    “Responsibility is not a burden for you to carry, it’s a privilege.” Monteiro states. The presentation is well worth watching not just for designers, but for everyone.

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  • Google’s plans for the smartcity

    Google’s plans for the smartcity

    Last June Google launched its Sidewalk Labs project to explore smart city technologies. At a conference this week the scheme’s director, Dan Doctoroff, hinted they may be looking at building an entire digitially connected town from scratch.

    Planned cities don’t have a good track record, as Disney discovered in Florida with their community named Celebration, so the odds are against Google from the start in this.

    Google adds to the challenge with some distrust towards the company following the shutting down of the Revolv device — even the slightest risk of a service or device being shutdown or discontinued is enough to dissuade even the most eager smartcity enthusiasts.

    Making Google’s task of successfully rolling out smartcity products, let alone build a smartcity from scratch, is the company’s notorious attention deficit disorder where management struggle to maintain focus on products or projects.

    For anyone thinking of living in a smartcity, the commitment of developers, vendors and authorities towards the technologies is an essential consideration. It’s also why open source software and standards are essential when building a community around technology.

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