Exciting but vague

A blank page for everyone is how Tim Berners-Lee sees the World Wide Web, this opens opportunities for inventors from all walks of life.

On Tuesday Tim Berners-Lee rounded off his Australian speaking tour with a City Talks presentation before 2,000 people at a packed Sydney Town Hall.

After an interminable procession of sponsor speeches, Berners-Lee covered many of the same topics in his presentations at the Sydney CSIRO workshop the previous week and the Melbourne talk the night before.

These included a call for everyone to learn some computer coding skills – or at least get to know someone who has some, wider technology education opportunities, more women in computing fields and a warning about the perils of government over-surveillance.

On government monitoring Internet traffic, Berners-Lee has been strident at all his talks and correctly points out most of our web browsing histories allow any outrageous conclusion to be drawn, particularly by suspicious law enforcement agencies and the prurient tabloid media.

Who owns the ‘off switch’ is also a concern after the Mubarak regime cut Egypt off the Internet during the Arab Spring uprising. The willingness of governments to cut connectivity in times of crisis is something we need to be vigilant against.

The web’s effect on the media was discussed in depth as well with Sean Aylmer, editor-in-chief of the Sydney Morning Herald, saying in his introduction that Berners-Lee’s invention had been the defining feature of Aylmer’s career.

While the web has been traumatic for a generation of newspapermen, Berners-Lee sees good news for journalists in the data explosion, “how do we separate the junk from the good stuff?” Asks Tim, “this is the role for journalists and editors”.

One person’s junk is another’s treasure though and the web presents one of the greatest opportunities for people to “write on their blank sheet of paper.”

When asked about what he regretted most about the web, Berners-Lee said “I’d drop the two slashes,” repeating the line from Melbourne the night before.

At each of his Australian speeches Berners-Lee has paid homage to his mentor at CERN, Mike Sendall. After Sendall passed away, his family found the original proposal for the Hyper Text Markup Language (HTML) which formed the basis for the world wide web.

“Exciting but vague” was the note Sendall made in the margins of Berners-Lee’s proposal.

Vague and exciting experiments was what drove people like James Watt and Thomas Edison during earlier periods of the industrial revolution. Tomorrow’s industries are today’s vague and strange ideas.

Necessity, innovation and the birth of the web

The world wide web was born out of necessity. It’s inventor, Tim Berners-Lee, says the innovation has barely begun.

The man who invented the world wide web, Tim Berners-Lee spoke at the launch of the CSIRO’s Digital Productivity and Services Flagship in Sydney yesterday.

In telling about how the idea the idea of web, or Hyper Text Markup Language (HTML), came about Berners-Lee touched on some fundamental truths about innovation in big organisations.

In the 1990s the European Laboratory for Particle Physics (CERN) in Geneva had thousands of researchers bringing their own computers, it was an early version of what we now call the Bring Your Own Device (BYOD) policy.

“When they used their computers, they used their favourite computer running their favourite operating system. If they didn’t like what was available they wrote the software themselves,” said Tim. “Of course, none of these talked to each other.”

As a result sharing data was a nightmare as each scientist created documents using their own programs which often didn’t work on their colleagues’ computers.

Tim had the idea of standard language that would allow researchers to share information easily, although getting projects like this running in large bureaucratic organisations like CERN isn’t easy.

For getting HTML and the web running in CERN Tim gives credit to his boss, Mike Sendall, who supported him and his idea.

“If you’re wondering why innovation happens, one of the things is great bosses who let you do things on the side, Mike found an excuse to get a NeXT computer,” remembers Tim. “‘Why don’t you test it with your hypertext program?’ Mike said with a wink.”

There’s much talk about innovation in organisations, but without management support those ideas go nowhere, the story of the web is possibly the best example of what can happen when executives don’t just expect their workers to clock in, shut up and watch the clock.

One key point Tim made in his presentation was that it was twenty years after the Internet was invented before the web came along and another five years until the online world really took off.

We’re at that stage of development with the web now and with the development of the new HTML5 standard we’re going to see far more communication between machines.

Berners-Lee says “instead of having 1011 web pages communicating, we start to have 1011 computers talking to each other.”

These connections mean online innovation is only just beginning, we haven’t seen anything yet.

If you want your staff to stay quiet and watch the clock, that’s fine. But your clock might be figuring out how to do your job better than you can.

Tim Berners-Lee image courtesy of Tanaka on Flickr

2UE Weekend Computers, 29 December 2012

Paul Wallbank and Seamus Byrne stand in for Trevor Long to talk technology, computers and the internet on Radio 2UE Weekends.

This Saturday from 3.10 pm Seamus Byrne and myself will be standing in for regular guest Trevor Long to discuss tech with John Cadogan on Radio 2UE.

We’ll be taking calls on the Open Line, 13 13 32 or tweet to @paulwallbank while we’re on air.

Some of the things we’ll be covering include the following.

What type of smart phone?

We have the iPhone, Android and Windows phones. Which ones are better?

  • The iPhone’s been dominating for the last few years, but now  Android is overtaking it. Why’s that?
  • Microsoft are pretty late with a mobile phone, can they catch up?
  • What’s happened to the other makes like Nokia, Blackberry and Motorola?
  • So what if you don’t want a smartphone, what if you just want something to make phone calls?

Checking your phone and Internet plans

There’s was story this week about how people are spending too much on their mobile phone and Internet plans. What should people be looking at and how often should they check their plans?

Paying for stuff with your mobile

You can use your phone as a boarding pass on some airlines, now Telstra and Vodafone are looking at ways to use your mobile to pay for groceries with your mobile phone.

  • How does the system work?
  • Who takes the money?
  • Is this safe?
  • How far is this away?

Your views, comments or questions are welcome so don’t be shy about calling in.

Fiddling the prices

Has the Internet’s promise of transparency failed as online retailers vary prices.

Discriminatory pricing is nothing new, a good salesperson or market stallholder can quickly sum up a punter’s ability or willingness to pay and offer the price which will get a sale.

Anybody who’s travelled in countries like Thailand or China is used to Gwailos and Farang prices being substantially higher even for official charges like entrance fees to national parks and museums.

The Internet takes the opportunity for discriminatory pricing even further arming online stores armed with a huge amount of customer information which allows them to set prices according to what the algorithm thinks will be the best deal for the seller.

Recently researchers found that the Orbitz website would offer cheaper deals for people searching for fares on mobile phones and prices would vary depending of which brand of smartphone people would use.

Writers for the Wall Street Journal did an experiment with buying staplers and found the same thing.

Interestingly, one of the factors Staples’ seems to take into account is the distance customers live from a competitors’s store – the closer you live to the competition, the lower the price offered.

There’s also other factors at play; sometimes you don’t want a customer, or you don’t want to sell a particular product and it’s easy to guess the formulas used by Staples and other big retailers do the same thing.

One of the great promises of the internet was that customers’ access to information would usher in a new era of transparency. In this case it seems the opposite is happening.

Did online democracy ever exist?

The idea of democracy in an online world dominated by private interests is a misnomer.

“Democracy is dead” proclaim online pundits as Facebook closes down their corporate governance feedback pages.

The question though is whether democracy really exists online; the internet is largely a privately run operation which makes the hysteria about the International Telecommunication Union’s attempts to impose standards on the web all the so more fascinating.

As a consequence of almost every internet service being run by private organisations, rights and concepts like “democracy” are pretty well irrelevant and have been since the first connection to ARPANET.

When we use services like Facebook, or even our internet provider’s email account, we are only being allowed to do so within the companies’ interpretation of their terms and conditions.

Often those interpretations are wrong or bizarre as we see with Facebook’s War on Nipples and often the results of misinterpretation are costly for businesses.

But we have little recourse as these sites are private property and the owners can do pretty well what they like within the law.

Just a like a shopping mall, if the managements of Amazon, Google or Facebook want you to leave their service then you have no choice but to do so.

We can squeal about rights online, but in reality we have few.

That’s something we should keep in mind when investing our time or business capital into any particular platform.

Repelling the online break and enter merchants

Romanian crime gangs have broken into business systems in Australia and the US, how can you stop them from stealing your customers’ credit card data?

Last week’s bust of a gang of credit card thieves by the Australian Federal Police is a warning to businesses on the need to take computer security seriously.

In Australia a Romanian crime gang targeted small retail businesses’ computer system and stole customers’ credit card details. They would then use the data to create fake credit cards.

A year ago US Authorities broke up a similar gang who had targeted Subway computer franchises which netted the gang over $10 million before they were caught.

In both cases the gangs used remote access software that was included with their victim’s Point Of Sale (POS) equipment. Once logged into the target’s computers, the bad guys were able to install key logging and monitoring software so they could steal credit card details as they were entered into the system.

There’s a number of lessons in both the Australian and US experiences for big and small business on securing systems safely.

Use secure passwords

It’s almost boring to say this, but you need strong passwords for your systems and networks. Make sure you change all default passwords on the systems so they aren’t easily guessed or broken into.

Secure your systems

The Subway hack happened because of sloppy security, you can harden your systems by following good practices such as updating your systems, having malware protection and proper access policies.

Both the Australian and US incidents happened on Windows computers. The crooks were able to get into the computers and then install software because the victims were running in Administrator mode which allows anybody on the computer to control the system.

Daily use should be in limited user mode which stops people from installing software or changing system settings andAdministrator accounts should only be used for system maintenance and have very strong passwords which are different to the normal limited user profile.

Turn off remote access

Another common factor in the US and Australian incidents is the use of remote access software so technicians can check things and managers can login in from home and other sites.

Unless these are properly set up they are a serious security risk. Unless you or your supplier knows exactly what they are doing, these can open a door from the public Internet straight into your system.

Do not use them unless you are 100% confident in yours, or your suppliers’, ability to run these properly.

Comply with standards

Another factor in these incidents is that systems haven’t complied with the PCI-DSS security standards for card payments. Again if you don’t understand these – and they are complex – find a POS vendor or payments processor who does.

Basically, the standard requires that customers’ card details are not stored on your systems and that devices for processing payments are kept separate from other equipment in your shop or office. Following these basic rules would avoid many of the problems.

Consider cloud services

Many of the problems businesses confront with security is because they don’t have the skills or resources to deal with the ever evolving security threats.

Moving POS systems and other business critical functions onto cloud services addresses many of these issues so it is worthwhile considering ditching expensive, unreliable and sometimes insecure server or desktop based systems and move to cloud services that use tablet computers or smartphones.

Whichever choice you make, it’s important to be engaging suppliers and consultants you can trust because if your customers can’t trust you with their details, then you are out of business.

Protecting yourself on Facebook

A follow up to listeners’ questions from December’s 702 Sydney morning program

One of the topics we looked at in yesterday’s ABC 702 Morning show was how to protect yourself on Facebook.

We had a number of callers struggling with controlling spam and scams that seem to be coming from their Facebook details. To fix this, you need to lock your personal details so they can’t be seen by the public.

The detailed instructions on how to lockdown your Facebook page are available on the Netsmarts website.

Our next ABC Mornings spot will probably be in late January. We’ll let you know when it’s approaching.

What would you do if the computer screen went dark?

Warrnambool’s phone problems remind businesses of the importance of continuity planning

What would you do if the computer went dark? originally appeared in Smart Company on November 29, 2012.

One of the truisms of business is the more ways customers can pay; the more likely you are to make the sale.

This is particularly true when something goes wrong – the customer hasn’t any cash, the till is jammed or the EFTPOS system is down.

Exactly this happened to thousands of businesses across south-west Victoria last week when a fire burned down the Warrnambool telephone exchange.

Unfortunately for the people and businesses of the surrounding region, much of the telephone, internet and Telstra’s mobile network runs through the burned out telephone exchange, sending the district back into the pre-telephone days.

This presented real problems as customers couldn’t use EFTPOS or get cash out of ATMs, while businesses struggled to get payrolls done or place orders with suppliers who couldn’t comprehend that it wasn’t possible to place orders over the net or by fax.

A hundred kilometres north of Warrnambool in the Grampians town of Dunkeld, a cafe worker told the ABC, “suppliers say ‘send a fax’ and you’re like ‘we can’t’ and they’re like ‘oh, we don’t want to handwrite it’.”

Those suppliers are a good example of not having the systems or staff in place to deal with ‘out of the box’ situations.

Unexpected events like the phone network being down for a week, major floods, devastating bushfires or zombie invasions will test businesses and it’s why having a real Business Continuity Plan (BCP) is important for business.

A workable BCP is one that identifies all the critical failure points for the business such as not having the internet for a week, a flooded office or, as happened to one of my clients, their entire building collapsing into the construction site next door.

The various state business agencies have guides on what to consider in a Business Continuity Plan including a good one from the South Australian government.

Regardless of how comprehensive a plan your business has, the most important part is going to be your people. If your organisation is staffed or managed by people who like to say “computer says no,” then they are going to be particularly useless when the computer is stone dead.

As the Warrnambool outage shows, unexpected business disruptions can come from anywhere, so flexible thinking and initiative is what matters in a crisis. It’s something worth thinking about with your staff and systems.

Trapped in a walled garden

Can social media services like facebook stay relevant as they manage content?

Following up on last week’s criticism of Facebook, US entrepreneur Mark Cuban clarified his position about the social network.

Central to Mark’s criticism are three points about Facebook’s business model; that it is a time waster, it takes control away from users and it doesn’t succeed in connecting people to information and friends.

All of this is true, and these features are key to the walled garden model that all of the internet empires want to build.

Central to this strategy is the “time on site” metric and so far Facebook beats all comers, with a huge 400 minutes per month per user.

Users who spend a long time on a website are more valuable than those who don’t hang around and Facebook’s success has been in capturing the attention of their members and locking them into their platform.

The willingness of other websites, particularly media companies, to lock themselves into Facebook’s platform has puzzled many observers as they are giving their customers away to the social media service.

How willing internet users are in hanging around Facebook’s, or Amazon’s, Google’s and Apple’s, walled gardens remains to be seen; it depends upon how compelling the content and value is.

If Mark Cuban’s right, viewers’ eyeballs and advertising dollars may start moving away from Facebook when people realise they are missing out on relevant information.

The real value in media organisations, whether we talk about old media such as newspapers or new media like social platforms, is in presenting relevant information to visitors and readers. As the many news organisations are learning, when you stop being relevant then people stop paying attention.

Being relevant is the great challenge for Facebook, newspapers and all media organisations.

What is an Internet company?

Does having a website make a company an internet business?

Deloitte’s 2012 fast 50 list of Australia’s fastest growing technology companies announced last week is an impressive list of diverse businesses ranging from online retailers to technology support firms, but it raises the question of what exactly is a ‘technology’ or ‘internet’ company.

A quick look at the top twenty illustrates how broad the “internet” category is, with eleven coming under the classification;

. 1 brandsExclusive (Australia) Pty Ltd 1335.1% Internet
. 2 Australian Renewable Fuels Ltd 1235.7% Life Sciences
. 3 SolveIT Software Pty Ltd 678.9% Software
. 4 Kogan Technologies Pty Ltd 515.6% Internet
. 5 Neon Stingray Pty Ltd 467.7% Internet
. 6 Infoready Pty Ltd 418.1% Software
. 7 SMS Central Australia Pty Ltd 371.6% Communications
. 8 Cohort Digital Pty Ltd 295.6% Internet
. 9 Redbubble Pty Ltd 275% Internet
. 10 astutepayroll.com 256.7% Software
. 11 SurfStitch Pty Ltd 252.7% Internet
. 12 BizCover Pty Ltd 249.9% Internet
. 13 Appen Holdings Pty Ltd 225.5% Communications
. 14 MyNetFone Pty Ltd 216.7% Communications
. 15 Appliances Online 206.2% Internet
. 16 Time Telecom Pty Ltd (Smart Business Telecom) 205.6% Communications
. 17 BigAir Group Ltd 202.2% Communications
. 18 Observatory Crest Australia Pty Ltd 198.1% Software
. 19 Tom Waterhouse Pty Ltd 196% Internet
. 20 Bulletproof Networks Pty Ltd 178.4% Internet

Included among those eleven ‘internet’ companies is the winner, Brands Direct, along with Redbubble, Appliances Online and Tom Waterhouse.

Tom Waterhouse is an online bookmaker, Appliances Online is a whitegoods retailer, Red Bubble is a design marketplace and Brands Direct is a fashion retailer.

While the internet is the core distribution channel for all of these companies, they are not ‘internet’ companies – they are retailers, marketplaces and bookmakers. The web is important, but it isn’t their business.

Calling them “internet companies” in many ways misses the point of just how ubiquitous the net has become to business operations. It also risks double counting as Appliances Online’s staff are counted both as retail and internet employees – something government agencies are notorious for.

We’d understand a lot more about the web’s reach if we didn’t label these fast growth businesses with the somewhat meaningless term of “internet companies”.

None of this detracts from the achievements of these businesses, their managers and proprietors. These companies are on track to being the leaders of the future.

Disrupting the education ripoff

Old established ripoffs are being disrupted as technology and the economy changes.

British Columbia’s government has announced they are going to make most undergraduate textbooks free online or printed at low cost as part of their BC Campus program.

One of the first lessons for university students is that they are going to be robbed at the campus bookshop – text books are one of the greatest rorts on the planet.

This scam takes several forms with faculties stipulating the latest editions as course material through to individual professors having a nice little earner in demanding their, often poorly written and out-of-date, textbooks being essential reading for any unfortunate student taking their classes.

Naturally all of these books are sold at eye wateringly high prices far in excess of what equivalent texts are selling for outside the university bookshop.

Given all of this it’s no coincidence that the publishers who specialise in academic texts have been the least affected by the online models that have undermined the business models of the mainstream book sellers.

Over the years there’s been a range of business ideas to setup exchanges to circumvent this legally sanctioned extortion racket and most have failed as the universities and faculty members have protected their cash cows with various tricks to prevent students from buying reasonably priced textbooks.

That British Columbia’s government now sees that this is a barrier for cash strapped and debt ridden students is an encouraging sign and one that recognises the 1990s model of treating students – particularly international students – as easy money is over.

For the Canadian and Australian education sectors which had come to depend upon an expensive “bums on seat” model of financing their faculties, the waves of change and competition is now threatening them.

Probably the biggest threat to this model is from the top tier universities offering courses online. This is radically changing higher education as it’s making it easier for poorer people to access the best institutions.

For the second rate institutions, this means they have to be providing real value for the fees they charge. A certificate purporting to be a degree is not going to be good enough.

While it’s too early to call the end of the textbook ripoff – people don’t let juicy little rorts go easily – its days are numbered. Although we may find the old scams replaced by something DRM related.

Image from Visual Notes of Honourable John Yap’s announcement at #opened12 / Giulia Forsythe / CC BY-NC-SA

Amazon and the Soviet customer service model

We all value our collections of CDs, books and photos, but what happens when we completely lose the digital equivalents?

We all value our collections of CDs, books and photos, but what happens when we completely lose the digital equivalents?

The story of Linn, a Norwegian lady who had her account terminated by Amazon, demonstrates the dangers of being locked into one Internet company’s empire. Get cut off and you lose everything related to them.

A little understood part of the cloud computing and app world is that you, the customer or user – which isn’t necessarily the same thing – don’t really own anything. The money you spend on ebooks, mobile apps or web storage are for licenses to use the services, not the products themselves.

Should the supplier decide they no longer want to provide you with their service, then you lose your account and everything with it.

This is what happened to Linn when Amazon’s algorithm decided her account was in some way breaching their terms and conditions.

We have found your account is directly related to another which has been previously closed for abuse of our policies. As such, your Amazon.co.uk account has been closed and any open orders have been cancelled.

Per our Conditions of Use which state in part: Amazon.co.uk and its affiliates reserve the right to refuse service, terminate accounts, remove or edit content, or cancel orders at their sole discretion.

“At their sole discretion” is the key point here. This is a standard term in most online contracts and reflects the legal realities of the physical world where a shopping mall manager or bar owner can ask you to leave their property without having to tell you why.

When you use a virtual service, which includes e-books and cloud computing software, you are on someone’s virtual property and they can ask you to leave any time they feel.

Of course those rights are subject to any contract you might have with that e-book seller, cloud computing service or shopping centre but you have to be in a position to enforce them – not an easy task when you’re in Norway and their lawyers are in Connecticut.

Even if you want to enforce the agreement you believe these services have entered into, the grossly biased contracts attempt to put all obligations on users or customers while freeing the vendor of the distraction of being responsible for anything.

The real problem though is the lack of notice and fairness – this blog’s previously looked at how PayPal, Facebook and Google will shut down business sites without any warning or due process.

It’s one thing to get thrown out of a shopping mall but it’s another matter when your car and week’s groceries are still in there.

Even more worrying in Linn’s case is how ebooks and music purchased with Digital Rights Management (DRM) controls can be erased by companies like Amazon. Which is like walking home from the shopping mall you’ve been banned from to find the manager has called by to confiscate the toaster and TV you bought last week.

What’s particularly notable in all of these stories though is the Soviet customer service model, the Amazon”Executive Customer Relations” representative Linn dealt with refused to tell her what she’d done wrong or what rules she broke.

The only thing “Michael Murphy” would tell her was she was effectively banned for being linked to a blocked account and stated;

“Please know that any attempt to open a new account will meet with the same action.”

No notice, no appeal, no rights. The computer says no and the bureaucrat cannot help you further.

Trust lies at the core of all business and this is even more true when buying services like e-books and cloud computing products. If you can’t trust a vendor to provide a service, or to act openly and honest with you when a problem occurs, then it’s unlikely you’ll use that service.

A lack of trust is what web 2.0 companies like Amazon and eBay risk with hostile, Soviet style customer service. This is the weak point of the entire online business model.

For individuals and businesses it’s important to understand that those e-book, cloud storage or social media services may appear to be a bargain, but there are risks lurking in the fine print.

The new Soviets might be doing well at the moment, but their days are numbered just as the USSR’s were.