Paul Wallbank, talking about media and comms

Building local brands

TripAdvisor is showing how the travel industry is adapting to the new world for brands

Last week this site looked at the idea from Colonial First State Funds Management economists James White and Stephen Halmarick that brands are doomed in a world of perfect information.

Forecasting the end of brands is a big call despite the massive changes the internet is bringing to industries. One of the things I suggested is that the concept of the brand – which was largely born out of Twentieth Century mass communications – is evolving with the social media and online world.

This view is born out by Tom Vanderbilt in an article in Outsideonline where he describes how TripAdvisor is changing the way people travel.

In Ireland Vanderbilt claims the hotel industry found TripAdvisor to be a harsh wakeup call that saw local hospitality businesses lift their game as they realised customers were now far better informed.

Across the Atlantic on Mexico’s Yucatan peninsula Vanderbilt describes how hotel owners in the town of Tulum had to realign their listings and marketing when TripAdvisor changed how they were grouped in the region. It shows how users are searching and finding accommodation.

Importantly for guests, hotel managers are using online reviews to measure how their premises are measuring up to expectations through social tools and using the results to justify capital expenses on upgrades.

This could justify White and Halmarick’s view that the major global brands such as the Marriots, Hiltons and Sheratons are in decline however it more likely shows those chains are having to raise their game to maintain their worldwide position.

What Vanderbilt, White and Halmarick indicate though is social channels are changing the way the hospitality industry works. This is an opportunity for smaller operators to build strong brands in their own niche or region.

Driverless cars outrun the law

Governments are going to face a number of challenges as autonomous vehicles become common on the road.

Tesla founder Elon Musk believes there will be driverless cars on US roads by the summer, the New York Times reports.

One of the key factors in whether Musk’s prediction comes to and driverless cars are on the road by the middle of the year is the law with most people assuming autonomous vehicles are currently illegal.

Some experts however believe current laws don’t prevent driverless cars, with the New York Times quoting one industry leader who suggests there’s no legal barrier to autonomous vehicles taking to the road.

Tesla is not alone in pushing the envelope. Chris Urmson, director of self-driving cars at Google, raised eyebrows at a January event in Detroit when he said Google did not believe there was currently a “regulatory block” that would prohibit self-driving cars, provided the vehicles themselves met crash-test and other safety standards.

This view raises an interesting legal argument, who is the recognised driver of an autonomous vehicle? In the event of an accident or dispute does liability rest with the owner, the manufacturer or the passengers?

What this debate over driverless vehicles illustrates is how laws specific to today’s society aren’t always applicable to tomorrow’s technologies; certainly many of the laws designed for the horse and buggy era became redundant as the motor car took over a hundred years ago.

Another consequence of autonomous vehicles are the changes to occupations supporting the motor industry; it’s obvious that panel beaters and insurance lawyers may have their jobs at risk but Jay Zagorsky in The Conversation suggests nearly half of US police numbers would be redundant if there are no more car drivers.

Given how the funds local and state governments raise from traffic offences, a shift to driverless technologies could even have an effect on city budgets.

The motor car was the most far reaching technology of the Twentieth Century in the way it changed the economy and society over those years, it’s hardly surprising that we are only just beginning to comprehend how a shift to driverless vehicles may change our lives this century.

Big sports data – how tech is changing the playing field

The internet of things is dramatically changing the world of sports

“When you’re playing, it’s all about the winning but when you retire you realise there’s a lot more to the game,” says former cricketer Adam Gilchrist.

Gilchrist was speaking at an event organised by software giant SAP ahead of a Cricket World Cup quarter final at the Melbourne Cricket Ground yesterday.

SAP were using their sponsorship of the event to demonstrate their big data analytics capabilities and how they are applied to sports and the internet of things.

Like most industries, the sports world is being radically affected by digitalisation as new technologies change everything from coaching and player welfare through to stadium management and fans’ experience.

Enhancing the fan experience

Two days earlier rival Melbourne stadium Etihad in the city’s Docklands district showed off their new connected ground where spectators will get hi-definition video and internet services through a partnership between Telstra and Cisco.

While Etihad’s demonstration was specifically about ‘fan experience’, the use of the internet of things and pervasive wireless access in a stadium can range from paperless ticketing to managing the food and drink franchises.

In the United States, the leader in rolling out connected stadiums, venues are increasingly rolling out beacon technologies allowing spectators to order deliveries to their seats and push special offers during the game.

While neither of the two major Melbourne stadiums offer beacon services at present, the Cisco devices around the Etihad have the facility to add Bluetooth capabilities when the ground managements decide to roll them out.

Looking after players

Probably the greatest impact of technology in sport is with player welfare; while coaches and clubs have been enthusiastic adopters of video and tracking technologies for two decades, the rate of change is accelerating as wearable devices are changing game day tactics and how injuries are managed.

One of the companies leading this has been Melbourne business Catapult Sports which has been placing tracking devices on Australian Rules football players and other codes for a decade.

For coaches this data has been a boon as it’s allowed staff to monitor on field performance and tightly manage players’ health and fitness.

Professional sports in general have been early adopters of new technologies as a small increase in performance can have immediate and lucrative benefits on the field. Over the last thirty years clubs have adopted the latest in video and data technology to help coaches and players.

As the technology develops this adoption is accelerating, administrators are looking at placing tracking devices within the balls, goals and boundary lines to give even more information about what’s happening on the field.

Managing the data flow

The challenge for sports organisations, as with every other industry, is in managing all the data being generated.

In sports managing that data has a number of unique imperatives; gamblers getting access to sensitive data, broadcast rights holders wanting access to game statistics and stadium managers gathering their own data all raise challenges for administrators.

There’s also the question of who owns the data; the players themselves have a claim to their own personal performance data and there could potentially be conflicts when a competitor transfers between clubs.

As the sports industry explores the limits of what they can do with data, the world is changing for players, coaches, administrators and supporters.

Gilchrist’s observation that there’s a lot more to professional sports than just what happens on the field is going to become even more true as data science assumes an even greater role in the management of teams, clubs and stadiums.

Paul travelled to Melbourne as a guest of Cisco and SAP.

The high cost of distrust

A lack of trust in data is going to cost the world’s economy over a trillion dollars forecast a Cisco panel

A lack of trust in technology’s security could be costing the global economy over a trillion dollars a panel at the Australian Cisco Live in Melbourne heard yesterday.

The panel “how do we create trust?” featured some of Cisco’s executives including John Stewart, the company’s Security and Trust lead, along with Mike Burgess, Telstra’s Chief Information Security Officer and Gary Blair, the CEO of the Australian Cyber Security Research Institute.

Blair sees trust in technology being split into two aspects; “do I as an individual trust an organisation to keep my data secure; safe from harm, safe from breaches and so forth?” He asks, “the second is will they be transparent in using my data and will I have control of my data.”

In turn Stewart sees security as being a big data problem rather than rules, patches and security software; “data driven security is the way forward.” He states, “we are constantly studying data to find out what our current risk profile is, what situations are we facing and what hacks we are facing.”

This was the thrust of last year’s Splunk conference where the CISO of NASDAQ, Mark Graff, described how data analytics were now the front line of information security as threats are so diverse and systems so complex that it’s necessary to watch for abnormal activity rather than try to build fortresses.

The stakes are high for both individual businesses and the economy as technology is now embedded in almost every activity.

“If you suddenly lack confidence in going to online sites, what would happen?” Asks Stewart. “You start using the phone, you go into the bank branch to check your account.”

“We have to get many of these things correct, because going backwards takes us to a place where we don’t know how to get back to.”

Gary Blair described how the Boston Consulting Group forecast digital economy would be worth between 1.5 and 2.5 trillion dollars across the G20 economies by 2016.

“The difference between the two numbers was trust. That’s how large a problem is in economic terms.”

As we move into the internet of things, that trust is going to extend to the integrity of the sensors telling us the state of our crops, transport and energy systems.

The stakes are only going to get higher and the issues more complex which in turn is going to demand well designed robust systems to retain the trust of businesses and users.

Are brands doomed?

Are brands dying in the face of informed consumers and emerging market indifference?

A few days ago we covered the Great Transition research paper by Colonial First State Funds Management’s James White and Stephen Halmarick and followed up with a piece in Business Spectator looking at the ramifications for the Australian economy.

One of Halmarick and White’s assertions is that brands are dead as consumers in emerging economies don’t care about corporate names and in developed nations people have better information about local businesses.

The former argument seems flawed from the beginning; Apple for example is making huge inroads in China while local manufacturers like Lenovo, Huawei, Great Wall and Haier are all working hard to establish their names in international markets.

In developed markets, White and Halmarick’s views have more basis with brand names not having the cachet they once did now consumers have a global platform to voice complaints and find alternatives.

A good example of brands that are struggling are companies like Microsoft and McDonalds, although in the case of both companies this could be more because of a shift in the marketplace rather than better informed consumers.

However brands are surviving as they lift their game and adapt to changed marketplaces, in fact its possible to argue that today’s consumers are more responsive to brand names than ever in the past.

A good example of this is again Apple which has more fans than ever before. Apple are also a good example of how big corporations can invest huge amounts into new technologies and products to give them an advantage over upstarts.

We should also remember that brands as we currently know them are largely a Twentieth Century phenomenon born out of the development of mass media communications and many of today’s household names came into the culture thanks to television in the 1950s and 60s.

So as creatures of last century’s media it’s not surprising that brands are having to evolve to a changed world, some of them will thrive and grow while others will shrivel away.

It’s safe to say though that the concept of brands isn’t dead, although many of the names we know today may not exist by the end of the decade.

Apple Watch shows us the limits of 3D printing and crowdfunding

Ahead of its launch the Apple watch has been criticised for its price and upmarket focus but the product shows what it costs to manufacture high quality goods along with the limitations of both 3D printing and crowdfunding.

In its Watch Craftsmanship videos Apple shows off some of the workmanship that goes into manufacturing the device and the Atomic Delights blog has a deep look at the processes and the design decisions behind the company’s choice of techniques.

What Apple’s series shows is that making top end devices is capital intensive and very, very hard. It also puts lie to the idea that raising a few thousand, or even million, dollars on Kickstarter will get a luxury item to market.

Greg Koenigin, the author of the Atomic Delights blog, gushes about Apple’s attention to detail and high quality manufacturing.

I see these videos and I see a process that could only have been created by a team looking to execute on a level far beyond what was necessary or what will be noticed. This isn’t a supply chain, it is a ritual Apple is performing to bring themselves up to the standards necessary to compete against companies with centuries of experience.

It’s clear Apple isn’t stepping back or making any compromises in making its mark on the watch industry, even though the entire global market for timepieces is less than one quarter’s income from the iPhone.

At the other end of the market the 3D printing revolution continues with Feetz raising $3 million for its customised shoemaking operation.

While Feetz is an impressive and quirky business with great promise it shows the rough-and-ready face of the makers’ movement and the businesses relying on 3D printing services, it’s a world away from the Apple Watch.

While both crowdfunding and 3D printing are going to have a massive effect on business and manufacturing, the truth is that other manufacturing methods are still going to be used by deep pocketed companies. Nothing is ever as simple as we think.

User generated content starts getting expensive

As YouTube faces competition we may be past the glory days of free user generated content

Ten years after being founded YouTube is facing competition as new sites are being setup or existing video services start aggressively courting creators reports Variety magazine.

YouTube is the poster child of the user generated content movement where it’s largely unpaid contributors who generate the material that people watch on the service.

This model works fine as long as it’s amateur cat videos people are watching but when as it becomes a big business the justification for not paying content creators becomes flimsy.

Google’s management recognised this some time back and started rolling out its own partnerships with creators to add more income than the often tiny advertising revenues most earn.

Now it turns out those popular video bloggers are being tempted over to other sites and for YouTube the cost of premium content is about to get expensive.

For the Silicon Valley businesses is requires a change of culture as they simply don’t like paying creators; in the tech startup view of the world it’s only coders, founders and few lucky support staff who get the rewards while the bulk of people who add value to the product are treated as commodity ingredients.

For a period it was difficult for media startups to get funding unless they had a free source of user generated content, as Buzzfeed founder Jonah Peretti revealed in 2012.

Tech investors prefer pure platform companies because you can just focus on the tech, have the users produce the content for free, and scale the business globally without having to hire many people.

The movie studios and record companies on the other hand have a culture of paying their artists and production staff, despite their reputation of exploitation and stinginess.

It may well be that we’re past the golden era of user generated content and the free lunch for the sites that depend upon free materials.

If it is, then standards on sites like YouTube can only improve even at the costs of Google’s profit.

Seizing the agricultural technology opportunity

Can a regional city like Fresno become a centre of agricultural technology?

Does the real opportunity for tech entrepreneurs lie in the agriculture sector? An article by James Fallows looking at Fresno’s startup community for the Atlantic Magazine suggests that might be the case.

Fresno, in California’s agricultural Central Valley, doesn’t have the glamor of the global startup centres but offers a focus on neglected sectors as Fallows quotes Jake Soberal of Bitwise Industries.

“My guess is that 5 to 10 percent of the tech need of the farming industry is now being met,” Fallows quotes Soberal as saying. “You could build a technology industry in Fresno based on that alone, not to mention the worldwide need in agriculture.”

While there isn’t a great need for another coffee app, pizza delivery service or online store, there are far more opportunities in other sectors to address unmet needs.

This is probably where the opportunity lies for cities like Fresno that are trying to create their own mini Silicon Valley – build a technology sector to address the needs of your existing industrial base.

In agriculture there’s a plethora of Internet of Things, Big Data, analytics and other technological applications that addresses issues in the industry. Farming is not the only sector which presents these opportunities.

Fresno’s ambitions aren’t unique but as Fallows points out this is not a zero sum game and there’s no reason why dozens of cities shouldn’t be able to build their own niches with new technologies.

Picture of Fresno from David Jordan via WikiPedia

Why Singapore is building a connected city

Singapore is creating the first connected city to meet the challenges of the 21st Century economy

“What if we were to wire up every corner of Singapore?” Asked Steve Leonard, the Executive Deputy Chairman of Singapore’s Infocomm Development Authority, at the CommunicAsia 2013 Summit.

Two years later that question has been answered as the island state has covered the entire island with a fibre network, putting the country on course to create what Leonard describes as a ‘sensor fabric network.’

Speaking to Leonard ahead of his visit to Australia for the AIIA Internet of Things conference in Canberra later this month, it’s impressive what the IDA looks to do in building Singapore as a connected nation.

“We think we have an opportunity to use some of the natural advantages Singapore has,” Leonard says. “In this case being relatively small and an island. The idea that constraints mean creativity.”

One of the areas Leonard sees as an opportunity with the IoT is in the health care industry where chronic care care can be moved back into the community while hospitals and clinics can be used for acute patients.

One of the challenges for every city rolling out an IoT infrastructure is the plethora of standards, “we’re trying to think about IEEE standards and we’re trying to think about interoperable as possible with technology as it evolves.”

“Whether it’s East or West, Singapore wants to be a place where business can be done and people can be healthy,” says Leonard. “What we don’t want to do is develop a standard that might work for us but exclude us from something that originates in another part of the world. We want to be open to things that evolve.”

Becoming a connected city is key to being a leader in a connected world, “we’re always making sure we seek to have more wireless access points.” Leonard says, “we also have one gig ninety-five percent fibre coverage across the island. We also want to enhance our capabilities through 4G and Wi-Fi.”

“All of those things together in some sort of concert create that fabric that we’re working on.”

Historically Singapore’s place in the world has revolved around being a trading hub which has led it to being one of the world’s biggest cargo shipping ports.

With broadband internet access available pretty well throughout the island, it should open opportunities for entrepreneurs, businesses and government agencies to explore how ubiquitous internet creates opportunities.

As the world becomes moves from physical goods to bytes, Singapore is looking to becoming as much a technological centre as a goods hub. For Steve Leonard and the IDA the task is to make sure the city takes its place in the connected economy.

Video and the internet of things

High resolution video coupled with the IoT are part of the Big Data explosion

A few days ago we discussed how 4k video cameras are going to change the sports broadcasting industry.

Yesterday executives from modular data center supplier VCE held a media lunch where they discussed some of their industrial applications. One of the areas they discussed was the monitoring of power stations with large resolution cameras.

The 4k cameras are trained on machine rooms with software watching for irregular conditions such as excessive vibrations, leaks or smoke. Should something out of the ordinary be detected, warnings can be triggered and potentially affected equipment spun down.

With the 4k resolution the cameras are able to watch large areas and like the sports coverage can zoom in for a detailed view of an affected area.

The use of 4k video cameras shows how the internet of things won’t just be about the data gathered from smart devices but also matching the information coming from IoT equipment with that of other environmental factors.

For companies like VCE these sort of applications are an opportunity as they need large amounts of data storage and processing power in local centres.

In many respects these small scale data centers are a large scale example of the fog computing being touted by companies like Cisco where most of the operational tasks are carried out by local equipment with only reports and exceptions being transmitted to the cloud.

This sort of application also shows the demands different industries are going to have for local data processing and storage with the VCE executives suggesting hospitals, mines and sports stadiums are also going to need these facilities.

For VCE – a troubled joint venture between Cisco, storage company EMC and computer virtualisation firm VM Ware – these are the sort of clients they are hoping to find to keep their business running.

Regardless of VCE’s prospects, the need for equipment to manage the data being collected by devices on the Internet of Things and 4k video is going to grow. That could give us one of the clues of where the jobs of the future are going to come from.

Software eats the sports cameraman

Are sports TV camera operators the next occupation to be eliminated?

Since the beginning of industry technology has changed occupations in unexpected ways the demise of the sports TV cameraman is a good modern example of a highly skilled, specialised trade that may soon be redundant.

Years ago television studios largely replaced cameramen with remote controlled cameras but sports grounds needed skilled operators with excellent attention spans to video action at sports grounds.

At a lunch today in Sydney Michael Tomkins, Chief Technology Office of Fox Sports Australia, explained how a combination of high definition cameras and advanced software is changing the way sports are broadcast and recorded.

“Last year we put two 4k cameras in to cover the length of the ground,” Tomkins said. “Two 4k cameras can see the length of the whole ground so I get rid of four cameramen and replace them with one joystick bunny.”

“He moves a box around the screen and those become a virtual camera. The resolution of a 4k camera is four times that of our HD broadcasts. It’s quite cost effective and I don’t have to roll a crew out.”

A demonstration of how the technology works is in a YouTube clip of an Australian Rules football match from last year. While the ‘joystick bunny’ and the software is somewhat clumsy in the segment, the clip shows the power of the technology.

With abolishing most of the camera, the opportunity to rationalise the production suite also becomes possible; at present most sports events have a producer instructing a group of assistants to cut between cameras, prepare replays and all the other effects expected by viewers. With a software based system most of that labor and its skills become redundant.

Over time as higher resolution cameras become available this application is going to become common, in fact most junior and amateur sports will be able to afford static hi-res cameras for their ground that allows them to record their games.

While the demise of the sports cameraman and producers is a shame in the same way loom weavers and hansom cab drivers disappeared, it is a reflection of changing technologies creating then destroying occupations.

TV camera image through wikipedia