Evolving cities and Silicon Valley’s private buses

What do Silicon Valley’s corporate buses tell us about the way our cities are evolving?

One of the phenomenon of Silicon Valley’s development has been the rise of the ‘Google Buses’ – the private services run by the big tech companies to shuttle their workers between home and their workplaces.

The Bay Area’s private bus shuttles are a real time illustration of how regions evolve around industries and economies and how cities and communities are in many ways dynamic, living creatures themselves.

An effect of the Google Buses is that San Fransisco is experiencing a ‘reverse sprawl’ notes Eric Rodenbeck in his Wired Magazine story Mapping Silicon Valley’s Gentrification Problem Through Corporate Shuttle Routes

It’s about more than gentrification as we’ve experienced it thus far: It’s about an entirely reconfigured relationship between density and sprawl, and it’s going to need new maps to help us navigate this landscape.

Driving those buses is instructive as well and Buzzfeed has an interview with an anonymous driver employed by one of the bus companies.  The driver’s tale shows the scale of the phenomenon.

This bus holds 52 people and that is 52 cars that are not on the road in one trip, and we have 70 routes in our system. That’s thousands of cars everyday.

Driving cars is fundamental to the American – and Australian – lifestyle. The modern American city developed around the motor car and that mobility is the defining feature of the Twentieth Century.

So maybe the Google Buses are an early part of the redefinition of our cities to meet the the needs of the 21st Century and cars are not the driving factor.

In this vein, Jarrett’s Walker’s Human Transit blog teases out some of the issues behind these developments.

Finally, this joke is on the lords of Silicon Valley itself.  The industry that liberated millions from the tyranny of distance remains mired in its own desperately car-dependent world of corporate campuses, where being too-far-to-walk from a Caltrain station — and from anything else of interest — is almost a point of pride.  But meanwhile, top employees are rejecting the lifestyle that that location implies.

While I don’t agree with Jarrett’s proposition that the geeks riding these buses want to mingle with strangers given the locations they live – I’d argue they’re attracted to those locations because their peers live there and downtown amenity to good restaurants and bars – he raises a very good point about the mismatch between where the workers and the jobs are.

Jarrett’s point touches on land use zoning and its effects on the evolution of cities. An excellent piece by Alexis Madrigal in The Atlantic tracked Silicon Valley’s iconic techonolgy sites, most of which have been demolished due to the pollution partly caused by zoning requirements for underground tanks.

The issue of zoning is also raised by Rodenbeck who points out that zoning issues with carparks are what has made employee buses more attractive to the giant tech employees.

Zoning different land uses makes sense on one level as no-one wants to live next door to a tannery, heavy metal waste dump or quarry, but there’s a risk with fixed ideas that our cities will become less responsive to economic developments, particularly in an era when people don’t want to, or can’t, dive across town to get to their jobs.

What Silicon Valley’s corporate buses really show is that our cities are evolving around the needs of today, not yesterday. It’s something governments, businesses, investors and communities should keep in mind.

Image of Google shuttle bus stop from David Orban through Flickr

Can Russia build a Silicon Valley?

Can Russia build its own Silicon Valley in Skolkovo?

Like many other countries, Russia is trying to build its own equivalent of Silicon Valley at Skolkovo on Moscow’s outskirts as Tech Crunch reports.

Across the world governments are trying to find a way to replicate Silicon Valley – from London’s Tech City to Australia’s Digital Sydney, the hope is they can create the same environment that built California’s success.

In some respects, Russia should be well placed to create their own Silicon Valley having had the same massive Cold War technology investments as the United Stated. The old Soviet system also left a deep scientific and mathematics education legacy.

As the Tech Crunch article points out though, the Russian financial and legal systems are working against the nation with most local startups looking at incorporating in offshore havens like Luxembourg and Cyprus rather than taking their chances with the local tax laws and courts.

If finance was the sole criteria for succeeding then Skolkovo would be almost guaranteed success with twenty billion US Dollars of private and government fundiing behind the project.

Funding alone though isn’t enough, and most industrial hubs are the result of happy accidents of transport, natural resources and skills being found in one region.

It might take more than a load of cash for Russia to build their own Silicon Valley, but with a shrinking and aging population the nation needs to find a way to diversify away from simply being an energy exporter.

Image courtesy of Skolkovo Foundation through Flickr

Can governments save declining cities?

Detroit’s decline illustrates the limits of government powers in the face of economic and historic forces.

Following yesterday’s post on comparing the relative problems of Detroit and the Chinese ghost city of Ordos, The Fiscal Times has a somewhat wistful description of Motor City’s decline by one of the city’s sons, Eric Pianin.

Pianin’s story charts the various attempts to revitalise the city following the disastrous 1967 riots that triggered the middle class and white flight from downtown.

As last week’s events show none of these efforts worked, which begs the question of what governments can do to save cities and regions facing structural decline.

Every city has an economic reason for existing — it could be transport links, natural resources or an industrial cluster. When that reason fades the population moves on.

For Detroit, the high point was the late 1960s as the US motor industry reached its zenith. Through the 1970s the sector languished and was then displaced by smarter, better Japanese competitors.

In the face of this there was little local, state or Federal governments could do. Detroit’s importance, wealth and population were destined to decline as industry left regardless of how much money was spent on grand schemes to revitalise the town.

Perhaps sometimes we just have to accept there are limits to government power and the predicaments of cities like Detroit are the natural course of history.

Over time, it may be Detroit manages to reinvent itself however the city will almost be very different, and smaller, city that it was in its heyday.

View of Detroit Central Terminal Station by Jason Mrachina through Flickr.

Why Australia is losing the digital race

Despite the best intentions of government, Australia is falling behind in the digital economy. What can the nation’s political leaders do?

This story originally appeared in Business Spectator on 17 June 2013
At the beginning of this century, Melbourne hosted a meeting of the World Economic Forum. Among the visiting luminaries was Microsoft founder Bill Gates who laid out his vision for governments in the digital economy.

“The Government itself needs to become a model user of information technology,” Gates said at the time.

“Literally seeing government work with its citizens, with its businesses will change how we do our taxes, licences, registrations, all these things, on a basis where you don’t have to know the organisation of government and its various departments, you don’t have to stand in line, you don’t have to work with paperwork.”

Last month in Brisbane, the Federal government re-released their Digital Economy Strategy with the ambitious goal to make Australia a “leading digital economy by 2020”. A key part of the strategy is for the government to allow citizens to “fully complete priority services online”.

Thirteen years after Bill Gates articulated the need for governments to move services online – and he was by no means the first person to do so – the Federal government has posted a target to partly achieve this by the end of the decade.

It’s hard to see how achieving such a belated objective will put Australia in a position of leadership in a rapidly changing world, although this is a direct consequence of deliberate decisions made by the nation’s leaders, and society, over the last thirty years.

Thirty years ago the debate on Australia’s position in the global economy resulted in the Hawke government’s Clever Country policies. In many ways, today’s Digital Economy Strategy is an echo of the Labor’s halcyon days under Paul Keating.

Keeping things in perspective

In Sydney on the day before re-releasing the strategy, Minister Conroy channelled Paul Keating in talking about the J-Curve of technology adoption at a lunchtime panel with the Australia Israeli Chamber of Commerce.

Preceding Senator Conroy’s panel was Anna-Maria Arabia, general manager of the Questacon National Science and Technology Centre in Canberra, who described her trip to Israel to look at how the nation that derives 40 per cent of its export incomes from high tech industries is nurturing its technology sector.

Arabia was accompanying Federal minister Bill Shorten and she described a meeting with the chief scientist of the Israeli Ministry of the Economy, Avi Hasson, where Shorten asked him about the success rate of Israeli government research and development projects.

Hasson’s reply was very different to the risk averse response often heard from Australian bureaucrats, ministers and business leaders.

“Had I been told that we enjoyed an 80 per cent success rate I would have concluded the government was investing in the wrong projects,” Hasson is quoted as saying. “Such a success rate would have meant we were investing in low risk projects and, quite frankly, the private sector could have taken care of that.”

The risk-reward equation

In Australia, there is no such vision or appetite for risk. At best the Federal government has announced another review of tax rules and industry support programs while the opposition is vague on its plans to support innovation and R&D should it occupy the Treasury benches later in the year.

While it’s easy – and fair – to criticise both sides of politics, the business sector is equally negligent with its reluctance to invest in research and development while claiming R&D tax credits for projects that are closer to capital improvements rather than real innovation.

Two weeks ago the ABC Business Insiders program had featured an interview between Business Spectator’s Alan Kohler, Dow Chemical CEO Andrew Liveris and Australian Business Council chief Tony Shepherd where they discussed Australia’s role in the modern global economy.

Australian born Liveris, who is also chairman of the US Business Council and sits on the Obama’s board of innovation, said Australia needs a vision building on the country’s strengths.

At present he warns the country is in a state of rigor mortis having “lost the will to innovate.”

Thinking beyond mining

When Gates visited Australia in 2000, he warned that the nation needed to think beyond mining and agriculture and secure a place in the high tech economy.

That warning was disregarded and Australia as a nation made the decision to focus on domestic consumption driven by rising property prices and mining exports.

Reserve Bank of Australia governor Glenn Stevens summed up that national decision in a speech made to the Australian Industry Group in 2010 where he dismissed Bill Gates’ warning about ignoring high tech industries at the beginning at the decade.

“Ten years on, though, it does not seem to have been to Australia’s disadvantage not to have built a massive IT production sector,” Stevens sneered. “On the contrary, the terms of trade are at a 60-year high, the currency just about equals its American counterpart in value and we face an investment build-up in the resources sector that is already larger than that seen in the late 1960s and that will very likely get larger yet.”

Stevens’ speech illustrates the Australia we have today – high-tech industries along with the research, development and innovation are something other countries do.

The vision for Australia being a global leader in the digital economy by 2020 is a laudable and equal to any of the noble objectives proposed in the Gonski education review or the Asian Century report.

Unfortunately to achieve those aims, and to overcome the deliberate national decisions we’ve made over the last thirty years, it’s going to take more than the modest and belated objectives of last week’s re-released Digital Economy Strategy.

Politics, business and leadership

Google’s hiring processes raise some important points about leadership.

I’ve covered the New York Times’ interview with Google’s senior vice president of people operations, Laszlo Bock previously in describing what the business has learned from its scientific method of hiring people.

One striking aspect of that story that deserves further discussion is Bock’s thoughts on leadership;

We found that, for leaders, it’s important that people know you are consistent and fair in how you think about making decisions and that there’s an element of predictability. If a leader is consistent, people on their teams experience tremendous freedom, because then they know that within certain parameters, they can do whatever they want. If your manager is all over the place, you’re never going to know what you can do, and you’re going to experience it as very restrictive.

This is something that applies in all walks of life — whether you’re coaching a kids’ football team, running a corporation or leading a nation.

Sadly in many of these fields we’re lacking the consistent leadership Laszlo Bock describes. That could turn out to be one of the greatest challenges for the 21st Century.

Coming to your city – the internet of machines

A chart by sensor manufacturer Libelium illustrates how the internet of machines is growing

An intriguing infographic from Spanish sensor manufacturer Libelium – which to Australian ears sounds like a new age defamation law firm – illustrates how the internet of things is being used in all walks of life from shipping containers to park benches.

The notable thing about the diagram is pretty well all of the sensor applications have been available for years – in some cases decades – and its only with the arrival of cheap sensors and pervasive internet access that widespread monitoring has becoming possible.

Libelium smart world infographic

With affordable, even disposible, sensors coupled with internet projects like Google Loon and Australia’s National Broadband Network, these networks are now possible at a price that won’t sink a government’s budget.

In fact these sensor networks will probably improve councils’ and governments’ budgets as they promise to improve the efficiency of services like rubbish collection and street repairs.

The real challenge is managing all the data this equipment gathers, that’s going to be one of the big jobs of the next decade.

Telling the broadband story – the government makes its case

The minister’s office replies to my NBN criticisms and illustrates how the broadband story isn’t being told

Further to yesterday’s post about NBNCo’s inability to tell a story, I received a polite message from the long suffering staff at the Minister’s office that pointed me to some of the resources that NBNCo and the Department of  Broadband, Communications and Digital economy have posted.

Here’s the list of case studies and videos;

http://www.nbn.gov.au/nbn-advertising/nbn-case-studies/

http://www.nbnco.com.au/nbn-for-business/case-studies.html

http://www.nbn.gov.au/case-study/noella-babui-business/

http://www.nbn.gov.au/case-study/seren-trump-small-home-based-business-owner/

All of these case studies are nice, but they illustrate the problem – they’re nice, standard government issue media releases. The original CNet story that triggered yesterday’s story tells real stories that are more than just sanitised government PR.

It also begs the question of where the hell are all these people successfully using the NBN when I ask around about them?

What’s even more frustrating is the Sydney Morning Herald seems to get spoon fed these type of stories.

The really irritating thing with stories like yesterday’s SMH piece is that it’s intended to promote the Digital Rural Futures Conference on the future of farming being held by the University of New England.

Now this is something I’d would have gone to had I known about it and I’d have paid my own fares and accommodation. Yet the first I know about this conference is an article on a Saturday four days out from the event. That’s not what you’d call good PR.

The poor public relations strategies of the Digital Rural Futures Conference is a symptom of the National Broadband’s Network’s proponents’ inability to get their message out the wider public.

When we look back at the debacle that was the debate about Australia’s role in the 21st Century, it’s hard not to think the failure to articulate the importance of modernising the nation’s communications systems will be one of the key studies in how we blew it.

Despite the best efforts of a few switched on people in Senator Conroy’s office, a lot more effort is needed to make the case for a national broadband and national investment in today’s technologies which are going to define the future.

NBNCo’s storytelling failure

Why Australia’s National Broadband Network gets bad press

One of the baffling things in reporting the Australian tech and business scene is how the National Broadband Network project manages to get such bad press.

Part of the answer is in this story about Google Fiber sparking a startup scene in Kansas City.

Marguerite Reardon’s story for CNet is terrific – it covers the tech and looks at the human angles with some great anecdotes about some of the individuals using Google Fiber to build Kansas City’s startup community.

This is the story that should have been written in Australia about the National Broadband Network.

I’ve tried.

Failing to tell the story

Earlier this year I travelled to Tasmania to speak to the businesses using the NBN and came back empty handed.

In Melbourne, I finally made it to the Hungry Birds Cafe – vaunted by the government as the first cafe connected to the NBN – to find they do a delicious bacon roll and offer fast WiFi to customers but the owners don’t have a website and do nothing on the net that they couldn’t do with a 56k modem.

I’ve found the same thing when I’ve tried to find businesses connected to the NBN – nil, nothing, nada, nyet. The closest story you’ll find to Cnet’s article are a handful of lame-arsed stories like this Seven Sunrise segment which talks about families sending videos to each other, something which strengthens the critic’s arguments that high speed broadband is just a toy.

Businesses need not apply

This failure to articulate the real business benefits of high speed broadband after four years of rolling out the project is a symptom of a project that has gone off the rails.

It’s not surprising that businesses aren’t connecting to the new network as NBNCo and its resellers have continued the grand Australian tradition of ripping off small businesses. Fellow tech blogger Renai LeMay has quite rightly lambasted the overpriced business fibre broadband plans.

Even when small business want to connect, they find it’s difficult to do. The Public House blog describes how a country pub was told the cost of a business NBN account be so high, the sales consultant would be embarrassed to reveal the price.

“The cost for exactly the same connection (and exactly the same useage) is so much higher for a business that you wouldn’t be interested.”

The whole point of the National Broadband Network is to modernise Australia’s telecommunications infrastructure and give regional areas the same opportunities as well connected inner city suburbs.

Failing objectives

If businesses can’t connect, or find it too expensive, then the project is failing those objectives. So it’s no surprise that NBNCo’s communications team can’t tell a story like Kansas City’s because there are no stories to tell.

Apologists for the poor performance of NBNCo say it’s a huge project and we’re only in the early stages. In fact we’re now four years into a ten year project and we still aren’t hearing stories like those from Kansas City.

Telling the story should be the easy part for those charged with building the National Broadband Network, that they fail in this should mean it’s no surprise they are struggling with the really hard work of building the thing.

We’re all Luddites now – Wage deflation and falling living standards

As the consumerist society runs out of credit, we have to find new ways to drive our economy

A post on today’s Macrobusiness describes how Australia’s General Motors workers being asked to take a pay cut is the harbinger for a general fall in the nation’s wages.

This is coupled with a post by Paul Krugman in the New York Times sympathising with the Luddites as technology takes away many middle class jobs that were not so long ago thought to be the safe knowledge jobs of the future.

Krugman points out that in the United States income inequality started accelerating in the year 2000, the stagnation of most Americans’ incomes started a decade or two before that.

For the last few decades, expanding credit allowed the consumerist society to continue growing, but the crisis of 2008 marked the end of that that economic model. Although governments around the world have tried to keep it alive by pumping money into their economy.

Now we have to face the reality that the Western world’s standard of living is falling for the first time in a century.

For some this is going to be really tough – although one suspects those who will really complain are those least affected.

What is clear is that many of our business and political leaders aren’t prepared to face this change. Dealing with that is going to be the biggest challenge of this decade.

702 Sydney – Green computing and how we’re being watched online

On 702 SydneyLinda Mottram and I talk about Internet spying and green computing.

This morning on 702 Sydney I’m talking to Linda Mottram about Internet spying and green computing.

How Green is the internet looks at the claims from Google and other companies about cloud computing’s energy use.

The Internet snooping story broke two weeks ago with The Guardian NSA files.

An early part of the story was abot the use of the telephone company metadata – information about phone calls, not the actual content which intelligence agencies and law enforcement can use to draw a picture from.

For Australians, there’s additional cause for concern as the Telecommunications Act gives government agencies the powers to access anyone’s information.

If you’re worried about the way data is being collected about you online. Duck Duck Go is a secure, private browser and Box Free IT has some great suggestions on securing cloud computing services.

For those who want to seriously cover their online tracks, the Tor project and PGP encryption are more advanced privacy tools.

We’d love to hear your views so join the conversation with your on-air questions, ideas or comments; phone in on 1300 222 702 or post a question on ABC702 Sydney’s Facebook page.

If you’re a social media users, you can also follow the show through twitter to @paulwallbank and @702Sydney.

The Present is Unevenly Distributed

The global economy is changing faster than many business and political leaders realise. The future is here now.

“The future is already here – it’s just not evenly distributed” said author William Gibson in a quote often used by futurists and speakers.

A great example of this is the Australian Government’s National Digital Economy Strategy which was re-released last week.

The report itself was met with howls of indifference as the objectives were modest with little new really added since its first release in 2011. What’s notable though almost all the stated objectives for 2020 are achievable today. Here’s the list.

  • Government service delivery—by 2020, four out of five Australians will choose to engage with the Australian Government online.
  • Households—by 2020, Australia will rank as one of the top five OECD countries in terms of the proportion of households that connect to broadband.
  • Businesses and not-for-profit organisations—by 2020, Australia will rank as one of the top five OECD countries in the proportion of businesses and not-for-profit organisations using online opportunities to drive productivity improvements and expand their customer base.
  • Health and aged care—By 2015, 495,000 patients in rural, remote and outer metropolitan areas will have had virtual access to specialists and by 2020, 25 per cent of all specialists will be participating in delivering telehealth consultations to remote patients. By 2020, 90 per cent of high priority consumers such as older Australians, mothers with babies and those with a chronic disease, or their carers will be able to access individual electronic health records.
  • Education—by 2020, Australian schools, registered training organisations (RTOs), universities and higher education institutions will have the connectivity to develop and collaborate on innovative and flexible educational services and resources to extend online learning to the home and workplace and the facilities to offer students and learners the opportunity for online virtual learning.
  • Teleworking—by 2020, Australia will have doubled its level of telework to at least 12 per cent of Australian employees.
  • Environment and infrastructure—by 2020, the majority of Australian households, businesses and other organisations will have access to smart technology to better manage their energy use.
  • Regional Australia—by 2020, the gap in online participation and access between households and businesses in capital cities and those in regional areas will have narrowed significantly.

With the exception of the telehealth objective, where the barriers don’t lie in the technology, all of these laudable aims could have been achieved in the past 15 years.

Some of them already have but it’s been missed by the cossetted bureaucrats who write these reports.

For the businesses who aren’t already “using online opportunities to drive productivity improvements and expand their customer base”, these folk are digital roadkill anyway and may as well get jobs driving taxis today.

Probably the most depressing of the objectives is the first one focusing on government service delivery. Here’s Bill Gates’ comment about online government services while visiting Australia.

The Government itself needs to become a model user of information technology, literally seeing government will work with its citizens, with its businesses without paper exchange will be able to do in our taxes, licences, registrations, all these things, on a basis where you don’t have to know the organisation of government and its various departments, you don’t have to stand in line, you don’t have to work with paperwork.

Gates’ comments were made in September 2000.

That a vision for the future is so modest, mundane and achievable today is probably the most disappointing thing of all with reports like the Australian National Digital Economy strategy.

Not only is the future unevenly distributed but so too are the jobs and prosperity that will flow from it, if you’re going to have a vision. You better have a good one.

Image courtesy of pdekker3 on sxc.hu

Are local governments the key to hyperlocal media success?

Does New York City’s partnership with Nextdoor.com create an opportunity for hyperlocal media?

Wired Magazine reports New York City residents are to get their own social network as the local government teams up with Nextdoor.com to provide a neighbourhood information service.

The aim of the partnership between Nextdoor.com and New York City is to improve the delivery of local services to residents.

The partnership means Nextdoor, which connects residents into geographic social networks based on their verified addresses, will be fully integrated with New York government departments, to be used by police, fire, utility, and other agencies. Nextdoor CEO Nirav Tolia anticipates the city will use the service to post information about power outages, construction notices, traffic accidents, and weather events like tropical storms, among many other potential use cases, bolstering municipal efficiency and citizen engagement.

On the face of it, this seems a great way for local government to communicate with residents, but it may be this arrangement turns out be a way to make hyperlocal media work.

A continued disappointment are the failures of  creating local neighbourhood news  services — known as hyperlocal media — with NBC recently closing down its Everyblock operation and AOL struggles with its Patch service.

Part of the problem is that hyperlocal news is labour intensive, doesn’t scale very well and without the locals becoming part of the online community, these services struggle to get traction.

Another aspect is the advertising model, local newspapers were insanely profitable when they were the main way for neighbourhood businesses and real estates agencies to advertise.

The web broke that model and Google’s failure to execute with its local business service has meant there isn’t an online replacement for the local advertising model.

So it may be that partnerships between local government and the online platforms are the way to make hyperlocal services work.

It will be interesting to see if the New York City partnership does become a model for hyperlocal news or just becomes a glorified and expensive community noticeboard.