The revenge of the open web

The UK government saved £4bn by banning smartphone apps. That’s a small win for the open internet.

Ben Terrett, the former head of design at the UK Government’s Digital Service, tells GovInsider why the agency banned mobile phone apps with the British taxpayers saving £4.1bn over the following four years.

Instead the GDS insisted agencies built responsive web sites so pages would adapt to the devices they were being read upon, saving time and money being devoted to developing and maintaining individual apps for different platforms.

Apps are “very expensive to produce, and they’re very very expensive to maintain because you have to keep updating them when there are software changes,” GovInsider quotes Terrett.

For those of us who worry about the increasingly siloed and proprietary nature of the internet, Terret’s story is very good news. Apps are particularly problematic as they stunt innovation, lock users into platforms and give those who control the App stores – mainly Apple and Google – massive market power.

It’s no co-incidence Facebook are currently in the process of restricting web access to their messenger service. Locking users into their app gives them far more power over users and much more control over their data.

On the other hand, the open web means sites are more accessible and not subject to the corporate whims of whoever controls a given silo. It also means that any data collected is far more likely to be commoditised, something Facebook hates.

That government agencies and large corporations are realising the costs, risks and value they are handing over the gatekeepers by developing apps is encouraging. It would be good if they considered the other downsides of giving the web over to a small clique of companies.

 

Employment and business in an era of ubiquitous robotics

McDonald’s former CEO inadvertently highlights the future of work in his comments about robot fast food kitchens

While robots threaten to take our jobs, they also promise to change the agricultural industry. That paradox describes how both the risks and opportunities in our increasingly automated word.

Brian Halweil, an ag-tech writer, describes how small farmers are using specialist robots to automate their operations. He lays out how the miniaturization of farm machinery will help encourage small, diverse farms.

The available of cheap, adaptable robots driven by almost ubiquitous and build in artificial intelligence is going to drive automation across most industries.

Ubiquitous robotics though means we have to rethink employment and social security as the workforce adjusts to new methods of working. Inadvertently former McDonalds chief executive Ed Rensi touched upon this in his somewhat hysterical response to the campaign to increase the minimum wage across the United States.

Rensi is right to point out that fast food restaurants will replace workers with robots where they can, indeed McDonalds led the way through the 1970s and 80s in introducing production line techniques to the food industry and the company will automate their kitchens and ordering systems regardless of minimum wage levels.

That relentless automation of existing jobs is why there is now a world wide push to explore the concept of a guaranteed minimum wage. We seem to be at the same point we were almost a century ago where the ravages of the Great Depression meant societies had to create a social security safety net.

As we saw with the Great Depression, the jobs eventually came back but in a very different form in a much changed economy. We’re almost certainly going to see the same process this century, hopefully without the massive dislocation and misery.

For businesses and industry, Halwell’s point about much smaller and adaptable robots giving rise to more nimble businesses is almost certainly true. For investors, managers and business owners adapting to that world will be key to avoiding being on the minimum wage themselves.

The advertising revolution still awaits

Mary Meeker flags big changes for the mobile phone industry but advertising still remains stuck in the broadcasting past

As usual Mary Meeker’s internet trends report lays out the current state of the online world.

Two things that stand out in the mass of statistics are how the smartphone market is now commoditised and that the advertising funded media model is redundant on mobile with adblockers proliferating in China, India and Indonesia – the world’s three biggest emerging markets.

While Mary Meeker flags those changes, she also continues to point out how broadcasting still gets a disproportionate spend of advertising revenue, something she’s been flagging for five years.

For advertisers sticking with the media they know is understandable but it does open some opportunities for a great disruptions.

The design of Meeker’s slides leave some people unimpressed though.

California dreaming – why the world’s startups are going to San Francisco

Why are the world’s startups flocking to San Francisco

Why are the world’s startups flocking to San Francisco? In a five part series for The Australian I look at the motivations for Australian entrepreneurs heading to the Bay Area.

The reasons for the moves are varied, as are the experiences, and it’s an interesting snapshot of a historical industrial shift as Silicon Valley evolves.

China ramps up support for the tech sector

Faced with a transitioning economy, China looks to boost the tech sector

China’s President Xi pledges increased support for technology firms reports Reuters.

While that will be welcome for Chinese tech and manufacturing companies, the question is just how effective top down initiatives like this are in building a vibrant industry.

As the country’s debt balloons and state owned corporations find themselves trapped with legacy businesses and massive inventories, the pressure is on the PRC’s government to find new ways to stimulate the economy, this is a start but it’s hard not think the Politburo will have to find ways to boost small business investment and startups.

Switzerland debates giving away money

Switzerland debates the merits of a unified guaranteed income

Staid, conservative Switzerland is one of the first developed countries to seriously discuss a universal guaranteed income.

While it appears the proposition will fail, the fact it is being debated indicates an acknowledgement of changing attitudes towards income and social security.

In many respects governments – particularly in the English speaking world – have ignored the personal social consequences of their economic policies over the last thirty years that have seen working people’s and increasingly the middle classes’ incomes fall and become more precarious.

Now those costs are being acknowledged in the face of increasing concentration of wealth with politicians and business leaders being forced to confront far less stable and cohesive societies.

It may be that the discussion of a universal guaranteed income forms the foundations of a new social compact that defined the mid Twentieth Century, increasingly it looks like something is needed in increasingly divided economies.

While a unified guaranteed income may not be the solution to addressing the economic and social needs of a substantial proportion of a workforce that is under employed and poorly paid, a discussion on what we can do needs to be had. At least the Swiss have started this.

Goodbye Moto

The Motorola brand disappoints Lenovo as it looks to diversify beyond the computer and tablet

It appears faded mobile phone brand Motorola has proved disappointing for Chinese computer giant Lenovo reports TechCrunch.

For Lenovo, this is concern as the company explores ways to diversify away from the shrinking PC and tablet marketplaces although the smartphone market which itself suffers from poor  margins doesn’t seem to be the opportunity the company is looking for.

It does however show that Google is often right in casting off companies it doesn’t see a future in.

Robots replace Chinese factory workers

Taiwan’s Foxcomm, the world’s biggest electronics manufacturer, has announced it will replace 60,000 Chinese workers with robots.

Taiwan’s Foxcomm, the world’s biggest electronics manufacturer, has announced it will replace 60,000 Chinese workers with robots.

As the cost of robotics falls and the price of Chinese labour increases, the economics of automating low skilled work increasingly looks attractive.

While automating manual work is process that’s been familiar for three centuries, this automation is now heading into the management suite as artificial intelligence increasingly becomes a viable alternative for lower level supervisory roles.

The workplace of the future is going to look very different to today’s, all of us need to be asking if we have the skills that will be needed by it.

ABC Nightlife: Beyond the ideas boom

Is Australia facing a brain drain as the Ideas Boom dries up? That’s one of the topics we’ll be covering in this month’s Nightlife.

While Australia talks about innovation, some of our most exciting tech companies are moving to Silicon Valley. For the May 2016 ABC Nightlife we asked why are they moving and what can we do to encourage them to stay down under?

Along with discussing why Australian startups are moving to the United States we also looked at some of the announcements out of the recent Google I/O conference. If you missed the show it’s available for download from the ABC website.

If you’re in Sydney, we’re also debating whether innovation really exists in Australia in a Cloud Crowd debate on June 9. Tickets are free.

Some of the questions Tony and I looked at included;

  • Who is making the move over the US?
  • What reasons do they have for going over?
  • Why aren’t they going to Europe, the UK or SE Asia?
  • Is Australia having a brain drain?
  • It seems the much vaunted Ideas Boom has been lost in the election, is it over?
  • One of the things Google announced at Google I/O was their new Google Home device which listens to your spoken commands to control the house. Doesn’t Amazon already have one of these?
  • Another thing Google announced was they are looking at putting intelligence into every device. How far away is that?

Cloudcrowd innovation debate

On June 9 in Sydney we’ll be debating whether innovation is a myth in Australia, tickets are free and you can sign up through Eventbrite.

Join us

Tune in on your local ABC radio station from 10pm Australian Eastern Summer time or listen online at www.abc.net.au/nightlife.

We’d love to hear your views so join the conversation with your on-air questions, ideas or comments; phone in on 1300 800 222 within Australia or +61 2 8333 1000 from outside Australia.

You can SMS Nightlife’s talkback on 19922702, or through twitter to @paulwallbank using the #abcnightlife hashtag or visit the Nightlife Facebook page.

Rolling out innovation on 5G mobile networks

5G networks could be the catalyst for a new breed of online innovation says John Smee, the Senior Director of Engineering at Qualcomm Research

“We’re in the flip phone era of 5G networks, people don’t realise today’s 4G mobile standards were written for the era of the flip phone,” says John Smee, the Senior Director of Engineering at Qualcomm Research

John was speaking to me at chipset manufacturer Qualcomm’s San Diego head office to discuss the next generation of mobile phone services.

Putting together communications standards isn’t a simple thing, as John says “what we’re discussing now is what today’s five year olds will be using when they turn fifteen.”

John sees the new standard as giving the next generation of internet giants their market opening, pointing out companies such as Facebook and Uber benefitted from the rollout of 4G networks and some of today’s startups will get a similar boost from 5G services. “A few clicks and you’ve ordered a ride. That wouldn’t have been possible without 3G connectivity, high powered smartphones and networks that are scalable.”

“What are going to be some interesting new startups that become huge multibillion dollar industries from 2030,” he asks. “By definition we don’t understand the future.”

For telco executives being a ‘dumb pipe’ is one of their nightmares and John believes they can avoid that fate in a 5G world by concentrating on their advantages with licensed spectrum. “If they are looking a high reliability and low latency services then the quality of the connectivity they can offer becomes essential,” he says.

While the standards groups continue to work on the 5G standards, the technologies continue to evolve. John Smee’s message is that these new products are going to offer opportunities for new companies.

The trick is to figure out which of today’s startup companies will be the Uber or Facebook of 2025.