David Cameron and the Internet of Things

Britain’s Prime Minister backs the nation’s move into the Internet of Things

Last year I interviewed the CEO of London and Partners, Gordon Innes, on how Britain’s capital is making a bid to become Europe’s Silicon Valley.

At the opening of CeBIT last night, UK Prime Minister David Cameron increased the country’s bid with a plan on building Britain’s capability in the digital industries.

Cameron portrayed the moves as being a partnership with Germany. This may be partly because he was being gracious towards his host and also because the Brits might not see Germany as being a competitor in these fields.

The fields that Cameron highlighted are deploying 5G networks, more efficient use of spectrum and increasing research into the Internet of Things.

A research boost is a notable as it may give the Brits a foothold in an area that’s evolving rapidly as the Internet of Things raises a whole range of security, privacy and governance issues.

While there’s still a sniff of Harold Wilson’s 1963 White Heat of Technology speech in the Cameron government’s policies, at least the British government is articulating policies for the 21st Century.

It may well be that Cameron’s digital revolution will be no more successful than Wilson’s technological revolution fifty years ago, but at least it will be a brave attempt.

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Customer service is no longer a department

Customer service needs to pervasive through modern organisations says Salesforce’s Alex Bard

When it comes to customer service businesses, Alex Bard calls himself a ‘career entrepreneur’, having founded four startups in the field since the mid 1990s.

In 2011 he sold his most recent business, Assist.ly, to Salesforce and became the company’s Vice President for Service Cloud and the Desk.com customer service offerings.

Bard tolds Decoding the New Economy last week how social media and Big Data are radically changing how organisations respond to the needs of their clients.

“I’ve been in the industry for twenty years and I’ve never been excited as I am now,” Bard says. “The real transformational things that’s happening now are these revolutions – the social revolution, the mobile revolution, the connected revolution.”

The philosophy of customer service

“What they’re really driving is this idea that customer service is no longer a department, it’s a philosophy.”

“It’s a philosophy that has to permeate throughout the organisation. Everybody in the company has a role in support. It’s not just about a call centre or a contact centre or even an engagement center which is what these things are called today.”

“I really don’t like the word ‘centre’ because I really fundamentally believe that everbody in that company has to interact with customers, has to engage and has to the information – no matter they are – about that customer to provide context.”

Abolishing the service visit

With the Internet of Things, Bard sees GE’s social media connected jet engine as illustrating the future of customer service where smart machines improve customer service.

“They’re going to capture more data in one year than in their entire 96 year history prior,” says Bard. “With that data they’ll be able to analyse and do things on behalf of that product or service that’ll reduce the number of issues.”

“Because the best service of all is one that doesn’t have to happen.”

In this respect, Bard is endorsing the views of his college Peter Coffee who told Decoding the New Economy last year that the internet of machines may well abolish the service visit.

“Connecting devices is an extraordinary thing,” says Coffee. “It takes things that we used to think we understood and turns them inside out.”

“If you are working with connected products you can identify behaviours across the entire population of those products long before they become gross enough to bother the customer.”

For Alex Bard, the customer service evolution has followed his own entrepreneurial career having evolved from being personal computer based in the 1990s to today’s industry that relies on cloud computing, big data and social media technologies.

As these technologies roll out across industry, businesses who adopt the customer service philosophy Bard describes are much more likely to adapt to the disruptions we’re seeing across the economy. Changing corporate cultures is one of the great tasks ahead for modern executives.

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Kickstarting the smarthome revolution

The latest Decoding the New Economy video interviews Daniel Friedman of Sydney startup Ninja Blocks.

The latest Decoding the New Economy clip is up with an interview with Daniel Friedman of Sydney startup Ninja Blocks.

Ninja Blocks focuses on controlling smarthomes with basic “if, then” rules where house holders can set basic instructions like “if the garage door opens after 5pm then turn on the kettle.”

It’s an interesting interview that covers Ninja Blocks’ vision along with the challenges of selling electronic devices globally and how to run a successful Kickstarter campaign for a hardware startup.

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Disrupting the smartphone market

The Tizen and Firefox smartphone systems threaten to disrupt the entire industry and ruin the plans of both Apple and Google.

It’s been a long time since we’ve had a three or four way war in the technology industry, with most sectors settling down into a two way fight between alternatives.

Mozilla’s promised $25 smartphone project threatens to open the mobile industry into a three way battle just as it appeared the market had comfortably settled down into an Android and iOS duopoly.

Now we see a three way race and possibly four if Samsung can get traction with its Tizen operating system that it’s bundling into the latest version of the Gear smartwatch.

One positive aspect of the four way battle is that three of the participants – Firefox, Tizen and Android are relatively open so compatibility between them isn’t impossible.

For Google and Apple though, this four way tussle presents a problem to their business plans.

Apple’s iOS ambitions of putting the software in smarthomes, connected cars and, possibly most lucratively of all, into retailing with iBeacon are threatened by a fragmented market and a rapidly eroding market share.

For Google, both Firefox and Tizen threaten the dominant position of their Android operating system that forms a plank in the company’s ambition to control the planet’s data and become an ‘identity service’.

Worse still for Google’s information ambitions, Firefox is working with Deutsche Telekom on a security initiative that will lock away users’ data.

So the stakes are high in the smartphone operating systems wars.

It’s early days to forecast the demise of either Android or Apple iOS, which is unlikely in the short term, but if Firefox’s operating system does take hold it will mean the smartphone industry is about to become a lot more complex.

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Microsoft struggles with in car technologies

Microsoft Windows faces further challenges as it loses market share and revenue in the automotive market

As Microsoft prepare for a major launch at this week’s Mobile World Congress, the news isn’t good for the company’s flagship Windows operating system.

Two Bloomberg reports illustrate the problems; the major story is the company is planning to drop licensing fees for Windows 8.1 while the other, still serious, news is that Ford will be dropping Windows as its in-car operating systems.

Automotive systems are one of the key markets for Microsoft as the company tries to move into markets beyond the stagnating personal computer sector and should the reports be true that Ford is looking at moving to the rival Blackberry owned QNX system then Windows Embedded has taken an embarrassing blow in a key market.

More serious though is Bloomberg’s report that Microsoft plans to cut its licensing fees for Windows installed on cheaper devices.

While not unexpected, this will damage the company’s earnings given the Windows division made up 22% of Microsoft’s earnings last year.

It’s clear that the free Android system is beginning to hurt Microsoft both in the smartphone and personal computer markets.

For Microsoft’s new CEO Satya Nadella, dealing with Windows’ place in the new Microsoft is going to be one of his most pressing challenges and will almost certainly define his first year in the role.

As the Internet of Things and Machine to Machine markets grow, Microsoft is going to have quickly decide if the company wants to compete in the market.

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Learning to ask the right questions

What a three time Oscar winner can tell us about managing the data generated from the Internet of Machines

How do we make sense of the masses of data entering our businesses? Tableau Software founder – and multiple Academy Award winner – Pat Hanrahan thinks he has the answer.

A major challenge presented by the Internet of Things is in understanding the data that’s generated by devices, data visualisation companies like Tableau Software are making easier to interpret what machines are telling us.

“The streaming data coming from sensors is a very interesting opportunity,” Tableau co-founder Pat Hanrahan told Network Globe when discussing machine to machine technologies, “there’s so much potential.”

A Stanford Professor and winner of three academy awards for Computer Generated Imagery, Hanrahan founded Tableau with Christian Chabot and Chris Stolte in 2003 with a mission to help people to understand data. Today the company employs a hundred people after going public last year.

The origins of Tableau came from Hanrahan tiring of the movie industry which he’d been part of since joining Pixar on graduating in 1987, “I was thinking could we use computer graphics for other things, I want to find something more work related so I got interested in data visualisation.”

Hanrahan teamed with Stolte, who was one of his students, to set up a company called Polaris that became the basis of Tableau; “it was a classic Stanford start-up, Google was literally right next to us. I remember when the company started, Larry Page came to our office party.”

Making data accessible

“I’ve always been fascinated with taking the high end stuff and making it more accessible” says Hanrahan. “We’re in a transition phase, where we’re tying to figure out how to make it more accessible.”

Helping those who are passionate about facts and reasons is one of Tableau’s missions,”we have fanatical customers,” says Hanrahan.

“If you’re one of the rare people who use facts and reasons to solve the world’s problems then you are persecuted, you are on a mission, you’re going to convince those crazies that you’re right and you’re wrong and that’s why they’re so fanatical about our product.”

“There’s a little bit of hype around big data right now, but it’s a very real trend;” states Hanrahan. “Just look at the increase in the amount of data that’s been going up exponentially and that’s just the natural result of technology; we have more sensors, we collect more data, we have faster computer and bigger disks.”

A good example of the exponential growth in computing power is in how the smartphone has developed, citing how far computers have come since 1997 when IBM’s Deep Blue computer beat Kasparov, “at the time both Kasparov and the computer were rated 2700, the best chess programs now are rated 3800.”

“The chess program running on my iPhone is rated above 3000,” observes Hanrahan.

Despite the leaps in power, Hanrahan doesn’t see algorithms completely replacing the human touch, “you have the technology and resources to do this but you still need someone to figure out how to make it accessible.”

One of the keys to understanding information is to be literate in using it, “every student should be efficient in using data,” Hanrahan says and he sees data analysis skills as being essential in the future workforce; “we have to know how to ask the right questions.”

Making the data generated by connected machines accessible to the public, workers and managers is going to be one of the big challenges for organisations over the next decades; it’s an area where companies like Tableau are going to do well.

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Neglecting the small business sector

The IT industry continues to neglect the small business sector

I’ve previously flagged how the IT industry fixates on the consumer sector, the Kickstart forum on Australia’s Gold Coast emphasised this with vendors, particularly those in the Internet of Things market, focusing on home users.

This is mindset is understandable given the huge numbers being cited for consumer applications, but the sneaking suspicion is that home users simply aren’t going to pay for these technologies and that the real money will be made in helping the retail sector deliver services to customers.

On Networked Globe today we discuss that quandary, it’s something that both vendors, consumers and small businesses should be thinking about given the way it’s going to change supply chains and entire industries.

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