Daily links – Chinese property developers go onto internet

Chinese internet use and smart phone manufacturers dominate today’s links along with Microsoft and Uber’s latest business changes

Today’s links have a distinctly Chinese flavour around them with a look at how the country’s smartphone manufacturers are coming to dominate their market, Tencent’s plans for global domination and how property developers are looking to the internet to save their falling sales.

Uber and Microsoft make their regular appearances to round out the links in their changes to billing and security.

Chinese property developers turn to the web

Faced with declining sales, Chinese property developers embrace – the Internet!

How Chinese smartphone makers are beginning to dominate the market

The rise of China’s smartphone makers: 10 of the top 17 smartphone manufacturers now come from China.

An interview with Tencent

Business Insider has an intriguing interview with one of the VPs of Chinese internet giant Tencent.

In his Q&A, S. Y. Lau discusses how Chinese communities are seeing their incomes rise due to the internet. One of the famous case studies of connectivity are India’s Kerala fishermen who used SMS to arbitrage their market. We may be seeing a similar story with Chinese tea farmers.

Microsoft restrict warning of patches to paying customers

In a short term money grabbing exercise, Microsoft have unveiled a plan to only inform enterprise customers of upcoming security patches. My prediction is this won’t last.

Uber cuts prices

Car hiring service Uber has cut its fares in thirty US cities while guaranteeing drivers their incomes. This is probably a move to keep competitors like Lyft at bay.

Daily links

Apple extends its lead over Android in smartphone activations, a teenager’s view on social media and Google’s declining market share.

Today’s links are somewhat more upbeat; starting with Apple extending its lead over Android in smartphone activations, a teenager’s view on social media and Google’s declining market share.

Apple takes the lead in smartphone activations

In their regular survey of mobile phone activations, research company Kantor found that Apple have taken the lead back from Android phones.  The Kantar Worldpanel ComTech global consumer panel monitors the brands of phones being connected through selected apps to give them an idea of what’s going on in the smartphone marketplace.

While not an absolute numbers, and one that was inflated by the new range of Apple iPhones released late in the year, it’s clear Apple are by no means out for the count when it comes to the smartphone market.

What teenagers think of social media

I’m not sure how accurate or scientific this story is, but it illustrates how complex the social media industry is and how dangerous assumptions are with what age groups use new media channels for.

How boring can driverless cars be?

Another story points out driverless cars are actually quite boring to ride in. Maybe we’ll all catch the train insead.

Google loses market share

Since signing an agreement with Firefox to be the default search engine provider, Yahoo! sees its share of the marketplace spike upwards. Should Google be worried?

So you thought a tech job was safe?

Document service Evernote cuts jobs proving that even a job in the hottest parts of the tech sector isn’t safe. Notable in this story is the concentration of employment in two locations which shows Silicon Valley isn’t keen on remote working at all.

Links of the day – Terrorism, deflation and London’s rebirth

The terrorist murders in Paris lead today’s links of the day.

Today’s links kick off with the worldwide reaction to the terrorist atrocity in Paris. The other links, which pale in contrast, include why we should really fear deflation, the decline and rise of China and how to understand a food critic.

Cartoonists unite over French terrorist murders

After the terrorist atrocity that saw twelve people murdered in an attack on a magazine office in Paris, cartoonists around the world have shown their reaction.

Why Europeans should fear deflation

Yesterday the main economic news was the Eurozone had re-entered a deflationary period. Irish economist David McWilliams explains why deflation scares governments and banks with some lessons from the Great Depression.

The decline and rise of London

In 1939 London reached its peak population of 8.3 million then saw declines for the next fifty years as war, government policies and economic restructuring saw the city’s attractions wane.

Sometime this week London will pass its 1939 peak and Citymetric magazine looks at the reasons for the decline and why the recovery began.

China’s incredible disappearing former leader

In November 2012 Chinese leader Hu Jintao stepped down from his post. Since then he’s effectively disappeared from public view Foreign Policy magazine reports.

At the same time many of his allies and supporters have been purged from their party positions as part of a major change in direction for the Chinese government. What this means for the parties’ cronies who’ve been propping up property prices across the Pacific and Macau’s lucrative casino business remains to be seen.

What restaurants should know about food critics

First impressions matter warns former restaurant critic for the New York Times and Los Angeles Times, Ruth Reichl, in a terrific interview with Open For Business.

Reichl’s advice is good for pretty well any business; make sure your first impressions are good, don’t rip off your customers or be too pushy with upselling and train your staff. It’s an entertaining insight into a field dominated by egos that’s largely becoming extinct.

Links of the day – redesigning the car and South China Mall.

Interesting links include Mercedes’ vision of a driverless car, an analysis of the ill fated South China Mall’s flaws and how Amazon is reorganising its R&D efforts after the failure of the Amazon Fire.

The CES extravaganza continues in Las Vegas with a wave of announcement, most of which I’m ignoring, however the motor industry continues to show off new developments with Mercedes displaying their vision of how a driverless car will look.

Other interesting links today include an analysis of the ill fated South China Mall’s flaws and how Amazon is reorganising its R&D efforts after the failure of the Amazon Fire.

Mercedes redesigns the car

A little while back I suggested that we could do better in redesigning the driverless carMercedes have gone ahead and done it.

Mercedes’ redesign of the driverless car indicates just what can be done when we rethink what passengers will need in the vehicles of the future.

Ford recalls a vehicle for a UI upgrade

Ford has recalled its Lincoln MKC SUV models for a software upgrade after discovering drivers were shutting down the cars by accident.

What’s notable with this story is how software changes are now one of the main reasons for recalling vehicles and how design flaws in an automobile’s computer programs are relatively quickly discovered and resolved.

We will probably find in the near future car manufacturers will carry out the upgrades remotely rather than ask owners to bring their vehicles into dealerships.

A long running security flaw is exposed

In August 2013 a security researcher warned UK online greeting card vendor Moonpig that its system exposed up to six million users’ account and financial details. Until Monday the company had ignored him. This is a tale of classic management disregard for customer security and one area where business culture needs to dramatically change.

Rumours of an AOL – Verizon merger

It’s a speculative story but if a merger between US telco Verizon and former internet giant AOL goes ahead it may mark another wave of telcos moving into content services, although it’s hard not to think that Verizon could spend its money more wisely.

After a flop, Amazon restructures its R&D

The Amazon Fire was by all measures a miserable flop as a smartphone however it seems the company learned some important lessons from the device’s market failures. Instead of abandoning its research efforts, the online behemoth is increasing it’s R&D budget and reorganising its development division.

Design fails of the South China Mall

South China Mall just south of Guangzhou has been the poster child of Chinese malinvestment during the nation’s current boom. In a blog post from 2011, a shopping mall expert visits the development and points out the major design faults in the complex which may well have doomed the project from the beginning.

Links of the day: Connected cars and fast trains

CES, Connected cars, fast trains and copyright laws are today’s links

The Consumer Electronics Show in Las Vegas kicks off today with thousands of product announcements at what is by far the biggest technology convention in the world. No doubt news from the show is going to dominate the tech media for the rest of the week.

One of the biggest fields for tech vendors at CES will be Internet of Things with connected cars being in the spotlight with both BMW and General Motors leading the way.

GM unveil their connected car of the future

For some years GM have offered a connected car service with their OneStar system. At this year’s CES they’re showing how they intend to extend the service with more integrated social and navigation services.

Driving the crashless car

While we fixate on the driverless car of the future, the next few years are going to see the technologies be incrementally introduced into our motor vehicles. A good example of this is BMW’s Active Assist that CNET writer Wayne Cunningham claims he could not crash.

The story points out Active Assist isn’t affordable in today’s cars but undoubtedly much of this technology will be standard in many automobiles by the end of the decade.

California starts work on its high speed railway

Cars aren’t the only thing in the news with California turning the first soil in its Los Angeles to San Francisco high speed railway.

This troubled project has been years in the making and it’s not expected to be completed until the end of the next decade at a cost of over 60 billion dollars. An interesting aspect in the story is how communities in California’s Central Valley region are pinning their hopes of an economic resurgence from the project.

 

Google takedown notices explode

While cars and trains are being reinvented, the entertainment industry is still struggling with its disruption. Torrent freak reports Google is being overwhelmed with movie industry take downs notices.

As the story suggests, this campaign is hurting Google’s relationship with the movie industry.

Links of the day – dead malls, economics and politics of the future

What will the economy and politics of the future look like?

Today’s interesting links revolve around economics – those of shopping malls, the future and how politics might react to a world where the majority’s incomes are lower and far more precarious than we’re used to.

The economics of dead malls

Shopping malls were the town square of the late Twentieth Century consumerist society. Now in many parts of the US the shopping mall is dying as economics and culture turns against them.

The New York Times looks at the economics of shopping malls and how they are affected by changes to society, particularly the decline of working class incomes and the middle class squeeze. In the meantime high end malls seem to be doing extremely well.

Having opened in 1986 with a renovation in 1998, Owings Mills is young for a dying mall. And while its locale may have contributed to its demise, other forces played a crucial role, too, like changing shopping habits and demographics, experts say.

A number of factors are working against old fashioned shopping malls including growing wealth disparity, falling middle and working class incomes along with fundamental changes to the economy which mean retail businesses, along with other industries, are going to have to adapt to a very different future.

Journey through the landscape of the future

Some of those changes to the global economy are described in Deloitte’s Centre For The Edge’s The hero’s journey through the landscape of the future, first published in July last year.

The Deloitte think tank describes a world where the workforce is more casualised – dare one say more precarious – and the barriers to business far lower than today.

Democracy in the 21st Century

Changes like those described by Deloitte don’t happen without consequences and economist Joseph Stiglitz suggests this will change our democratic institutions.

Sadly Stiglitz doesn’t suggest the changes that might happen apart from observing the current system that seems to be baking in inequality probably isn’t sustainable.

In a world where incomes are less stable and economic standards of livings are falling for the majority of people, the current beliefs that underpin the philosophies of political parties and government agencies become redundant. How today’s governments react to these changes will be an important question for how our societies look in the 21st Century.

Links of the day – touring an old nuclear plant and terrorists misusing Twitter accounts

Links for Sunday, January 4 – Terrorists and social media, cooks and smartphones and what an old nuclear power station looks like inside

From a quiet Sunday here’s some of the stories that have kept me occupied; terrorists misusing their Twitter accounts, what chefs really think of smartphone toting customers and more musings on the future of work in an age where robots and algorithms dominate.

To kick off the post, what does a nuclear power plant looks like after it’s been shut down?

Touring a decommissioned nuclear plant

Yesterday former New York Governor Mario Cuomo passed away, one of the most contraversial moves of his administration was closing down the state’s only nuclear power plant at Shoreham, Long Island.

In March last year Nick Carr had an opportunity to tour the abandoned site and posted the story of this visit onto hist Scouting New York website.

Where will all the workers go?

Economist Nouriel Roubini adds to the discussion about jobs in an age of robotics and algorithms in Where Will All The Workers Go? In his Project Syndicate piece, Roubini focuses on how the current wave of automation will affect jobs in emerging markets.

Today, for example, a patient in New York may have his MRI sent digitally to, say, Bangalore, where a highly skilled radiologist reads it for one-quarter of what a New York-based radiologist would cost. But how long will it be before a computer software can read those images faster, better, and cheaper than the radiologist in Bangalore can?

Like the rest of us he doesn’t have any firm answers except to suggest we may have to accept a new age of under-employment. This has serious consequences for today’s consumerist societies and the economic assumptions that underpins them.

The risks of Instagramming your Jihad

A clumsy Kiwi jihadist gave away the location of secret training camps in Syria through his Twitter account reports the iBrabo website. Mark Taylor joined an insurgent group in June this year and publicly burned his New Zealand passport on declaring he had no intention of returning to his homeland.

A few months after destroying his travel documents, The New Zealand Herald reported Taylor wanted to return home. All of which proves the point of The War Nerd that the best way the west can deal with its suburban jihadists is to give all of them a one way business class ticket to Syria.

How do chefs really feel about cell phone use in restaurants?

Many articles have been written about how restaurateurs are driven to distraction by mobile phone users in their establishments, but how true are those tales.

The Daily Meal interviewed a dozen US chefs about their attitude towards diners taking selfies and instagramming their meals. It turns out they are more concerned about their customers enjoying their meal rather than being upset at them shooting photos.

Hyundai connects their cars to Google Android watches

Korean conglomerate Hyundai has joined the connected car race with an Android Wear app that works with the company’s Blue Link system. The app, designed to work on Google’s wearable devices as well as smartphones, will work allow users to lock, open and locate their cars.

It’s another example of how car manufacturers are integrating wearable and mobile apps into vehicles and it’s a small taste of what’s possible when the smart home and the connected car start talking to each other.

Stack ranking claims another victim in Marissa Mayer’s Yahoo

Stack ranking claims another corporate victim with Merissa Mayer at Yahoo!

One of the clumsiest management tools deployed by modern executives is stack ranking, the practice of putting staff members on a scale where the bottom 20% miss out on bonuses and, in bad times, are the first to be fired.

The process has terrible effects upon the morale of workplaces as it rewards political manoeuvring over effective performance; the worker who focuses on their task and the business tends to be overlooked compared to those who curry favour with the boss.

Another debilitating effect is it destroys teams as it has the perverse effect of discouraging people joining teams with high flying colleagues as it increases one’s chances of receiving a poor rating.

Stack ranking has previously damaged Microsoft and HP and now it appears Marissa Mayer has made the same mistake at Yahoo!.

That Mayer has made the same mistakes at Yahoo! is a disappointment; there were so many high hopes for her in reinvigorating the troubled company. Indeed carrying out the stack ranking process every quarter seems particularly debilitating and management intensive, it’s hard to think of a more effective way of destroying morale and distracting management.

In some situations Stack Ranking can be effective but the way companies like Yahoo!, HP and Microsoft have implemented the method, it’s proven to be the wrong tool for the job of managing high skilled workforces.

When implementing clumsy management tools like stack ranking, it’s worthwhile considering whether it’s the right tool for the job.

Where will the next Silicon Valley come from?

As US research and development spending declines, where will the next Silicon Valley be?

In the development of any global industrial hub, there’s always a series of factors that attracted talent, capital and resources to that location. It’s true whether we’re talking about fifteen century Venice or the English Midlands of the eighteen century.

Silicon Valley is today’s equivalent of those historical powerhouses and what drove California’s Bay Area to be the technological centre of the world was the massive government research spending of World War II, the Cold War and the Space Race.

Which means declining research and development spending by the United States is going to hurt the region’s position in the medium to long term, a warning made by Fareed Zakaria in The Washington Post.

So the question is ‘if Silicon Valley and the US are in decline, which will be hub of the next business and technology revolutions?’

 

 

Email remains the most important business tech tool

Email remains the unchallenged king of the workplace

Email remains the most important communications tool for workers observes the Pew Research Project’s survey of technology’s impact on the workplace.

Based on a survey of 1066 US adult internet users last september the survey found nearly two thirds of the working respondents described email as their most important communications tool.

Despite the attempts of some companies to kill email, it seems like the service is as much an important part of business life as ever. Whether it remains so in the future as new generations enter the workforce and social messaging tools become more available is a question we’ll be exploring over the next year.

2015 and the internet of desperate valuations

2015 will see many companies trying to justify their massive investor valuations

2015 will feature more boneheaded moves as over valued companies try to meet investors’ expectations, a good example is Twitter adding sponsored accounts to its lists service.

The move by Twitter, reported by Search Engine Land’s Danny Sullivan, is another attempt by the service to get revenues that justify the company’s ten billion dollar valuation. While adding little income, the move further erodes trust in the service.

Illustrating the investment mania home delivery service Instacart announced it had raised $220 million, an amount that values the company at two billion dollars.

That home delivery services are again the investment flavour of the time is a worry given similar stakes marked the peak of the first Dot Com Boom in 2000. Whether today’s equivalents are any more sustainable will be one of the questions for 2015.

Another question for 2015 will be whether Twitter can crack the magic code and justify its valuation.

Happy New Year.

Uber and the management dilemma

Is Uber profoundly changing the economy or are even bigger forces at work that will challenge managers?

“Uber-mania reflects a profound turn in the way the global economy is organized,” writes Fortune Magazine’s editor Alan Murray.

That’s a bit of stretch as Uber’s simply an application of the technologies that are changing business and the economy;  those technologies are having a more profound effect on the role of managers in the modern workplace.

Along with services like AirBnB and Task Rabbit, are the result of the new breed of cloud, mobile and big data tools that make it easier to deploy new business models which in  themselves threaten traditional industries and their executives.

Uber’s success is in finding an industry that in much of the world has been ripe for disruption for decades; in most Western cities cab services have been regulated to protect plate holders’ incomes and often to protect corrupt local cartels.

What Uber’s disruption shows is how those tools can be deployed against cosy incumbents.

Probably the cosiest group of incumbents of all have been corporate managers; over the last thirty years businesses have been downsized, workers have become more productive and many functions have been outsourced or offshored.

Management however has largely remained untouched as the need to supervise business functions has remained.

Now those tools – particularly the smart algorithms that run companies like Google, Facebook and Uber – are coming for managers in many industries. Added to the manager’s dilemma are improved collaboration tools that allow workers and machines to communicate and make decision autonomously without the need for supervision.

Possibly the greatest change in business over the next decade will be the disappearance of the manager as software takes over.