Thought Starters: Chinese digital media, iPhone’s dominance, Holacracy and Europe’s lagging digital innovation

The following is a look through articles, research and opinion pieces highlighting interesting trends, developments and changes in the world you and I live in, with an emphasis on technology.

We are seeing Chinese businesses increasingly innovate and excel, providing business models that set themselves apart from businesses in the West. Digital media and communications have been a particularly fertile ground illustrated by the following table which illustrates how diversified the revenue streams of Tencent and YY are compared to their American counterparts:

Tencent Facebook YY and Youtube Monetisation

Apple is carving an increasingly dominant place in the world’s smartphone marketplace in terms of market share and profit. Some critics have questioned whether Apple can continue this growth trajectory, but Ben Thompson provides a strong defence for why we’re not likely to see this train derailing in the near future:

Smartphone Marketshare

Closely tied to the issue of smartphone ownership is the penetration of different mobile browsers. Here again Akamai’s figures point to Apple’s Mobile Safari browser dominating globally:

Global Mobile Browser Share

Roger D. Hodge looks at the ups and downs of Zappos’ introduction of the Holacracy system for self-organisation. It’s a long article but provides a valuable window into the challenges (and some of the opportunities) of introducing radical organisational change:

Zappos' Models of Organisation

As we embed the internet in an more aspects of  our lives, countries’ digital readiness provides an increasingly important measure of future economic health. Tufts University created the Digital Evolution Index to measure the building of digital capacity and many European countries don’t come out particularly well according to Bhaskar Chakravorti and Ravi Shankar Chaturvedi:

Digital Evolution Index

One digital innovation with its roots in Europe is the blockchain platform Ethereum (although there’s definitely an argument for it being a global project). Vinay Gupta provides a valuable look at the development of blockchain and smart contracts within the wider context of the evolution of databases and the internet.

Christina Farr looks at the rise and fall of the home cleaning service Homejoy, providing important lessons for startups aiming for growth at all costs.

A lot of media attention has focused on the rapid rise in San Francisco property prices, so it’s interesting to see UBS’ comparison of how overvalued the city’s real estate is compared to other leading cities:

Global Real Estate Bubble Index

Eric Jaffe’s analysis of trends in working hours over the last 130 years points to a downward trend – lets hope that we see this trend continue without leaving us all unemployed:

Annual Hours of Work

The featured image is a mural in Covilhã, Portugal by Pantonio and published in StreetArtNews.

Thought Starters: looking critically at mobile apps, venture capital, how Volkswagen ***ked up and the decline of pornography

The following is a look through articles, research and opinion pieces highlighting interesting trends, developments and changes in the world you and I live in, with an emphasis on technology.

Consumers are spending more of their time on their smartphones in mobile apps which inevitably leads many media owners to see the development of their own as a means of increasing consumer engagement. Priya Ganapati warns that this approach is flawed in many cases with the development of mobile web offering providing a much better use of resources:

“Apps aren’t magical universes. They are part of a platform that is not viral, resource-hungry and hard to grow. So why not bet on the mobile web instead?”

Sam Altman and Paul Graham look critically at the financial fundamentals of startups in a market where valuations don’t necessarily match up with future prospects:

“Here’s a common way startups die. They make something moderately appealing and have decent initial growth. They raise their first round fairly easily because the founders seem smart and the idea sounds plausible. But because the product is only moderately appealing, growth is ok but not great. The founders convince themselves that hiring a bunch of people is the way to boost growth. Their investors agree. But (because the product is only moderately appealing) the growth never comes. Now they’re rapidly running out of runway. They hope further investment will save them. But because they have high expenses and slow growth, they’re now unappealing to investors. They’re unable to raise more, and the company dies.”

Also looking at the startup universe is Ben Thompson who points to less successful venture capitalists as being increasingly squeezed between angel investors below and more traditional investors above:

“So it is with venture capital: once startup funding requirements were reduced, the superior information and the willingness to hustle of angels and incubators earned the trust of the big companies of tomorrow, reducing more and more venture capitalists to dumb money hardly worth the 20% premium. The inputs to the Silicon Valley system have been changed, and we’re only now seeing the effects, and that should be a cautionary tale for just about everyone who thinks they and their industry are safe from the Internet’s impact.”

Matt Roskoff contrasts the falling prices of consumer electronic hardware with the rising price of television and radio services:

Prices for Electronic Goods and Services

Paul Kedrosky suggests that the Volkswagen emissions scandal may have been the result of cultural norms within the engineering department rather than a deliberate move on the automotive manufacturers management:

“It is still possible, of course, that we will learn that the engineers were under orders from management to beat the tests by any means necessary, but based on what we now know, that seems implausible. It’s more likely that the scandal is the product of an engineering organization that evolved its technologies in a way that subtly and stealthily, even organically, subverted the rules.”

Credit Suisse in their annual Global Wealth Report looks at the current spread of financial wealth across countries and regions including the disparities between the wealthy and the poor:

Global Wealth Pyramid

We are seeing a broader array of jobs affected by technology, as smarter systems enable more technically complex tasks to be automated. MIT Professor David Autor looks at the costs and benefits of these changes, suggesting that the opportunities will outweigh the threats if societies ameliorate the negative effects with education, taxation and transfer programmes.

The migrants pouring into Europe has focused largely on the plight of refugees fleeing civil war in Syria. What Alex Tabarrok points to is that by focusing on the plight of refugees, we fail to acknowledge the benefits that more open borders would provide both to people trapped in less developed societies and to global society as a whole:

“Closed borders are one of the world’s greatest moral failings but the opening of borders is the world’s greatest economic opportunity. The grandest moral revolutions in history—the abolition of slavery, the securing of religious freedom, the recognition of the rights of women—yielded a world in which virtually everyone was better off. They also demonstrated that the fears that had perpetuated these injustices were unfounded. Similarly, a planet unscarred by iron curtains is not only a world of greater equality and justice. It is a world unafraid of itself.”

Pornography has been getting plenty of column inches lately thanks to Playboy’s announcement that it will no longer be publishing full nudity, reflecting falling profitability of ‘legitimate’ operators (no tears shed here). Whilst the industry has long been pointed to as technological leader, recent changes mean that the sector is becoming something of a technological laggard according to Cade Metz:

“With the rise of mobile devices and platforms from the likes of Apple and Google, not to mention the proliferation of free videos on YouTube-like porn sites, the adult industry is in a bind. Money is hard to come by, and as the industry struggles to find new revenue streams, it’s facing extra competition from mainstream social media. Its very identity is being stolen as the world evolves both technologically and culturally.”

Another area where technology has changed the balance of power is music where we’ve seen a democratisation of the tools of production. Art Tavana looks at GarageBand’s role as a stepping stone for many budding musicians looking to get their music out and about.

If you find yourself in London between now and the start of January, I’d definitely recommend visiting Ann Veronica Janssens’ yellowbluepink installation at the Wellcome Collection. A great exercise in disorientation:

The featured image is the SatOne mural Insomnia in Mannheim, Germany and published in Graffuturism.

Thought Starters

The following is a collection of articles and thought pieces highlighting interesting trends and changes in the world we live in.

Mobile messaging continues to grow as a communication format and as a platform which The Economist profiles in its latest issue. Mobile messaging sector has been given a boost  in the tech press by recent announcements at Facebook’s F8 Developer Conference which  has seen Facebook Messenger repositioned as the hub  for consumer’s smartphones. It’s an interesting strategic play by Facebook as it could potentially see the messaging platform become a gatekeeper across mobile regardless of which mobile operating system consumers are using.  I recommend checking out Benedict Evans and  Charlie Warzei’s take on things if you want to find out more.

Jay Z and friends have launched the Tidal streaming music service into what is an increasingly crowded market. Ben Thompson uses this as a starting point to look at how has the bargaining power in the music industry value chain…and he concludes that Tidal doesn’t have a particularly strong position.

Amazon Dash Button provides an interesting example of the changing face of marketing and Amazon’s move to bind consumers more closely to its ecommerce ecosystem. Eugene Wei has an interesting review of the service or for a more critical perspective, try Ian Crouch. I don’t think I’m ready to have little brand advertisements all around my home quite yet.

The popularity of UKIP and other parties hostile to immigration across Europe point to concerns about ‘job stealing foreigners.’ Adam Davidson provides a valuable retort to this view drawing on the Lump of Labour Fallacy.

The drop in global oil prices has helped and hurt different countries. Moisés Naím picks out who the winners and losers are.

Fareed Zakaria advocates the benefits of a liberal arts education pointing to the benefits it provides in enabling countries to be economically successfully and warns of the risks of putting too much emphasis on STEM  focused education.

There’s been a fair amount of talk recently of the impact that technology and automation is having on employment in the developed world. Noah Smith suggests that this argument is overstated pointing to the massive impact that China’s workforce is having on the global economy.

It’s worth checking out  Evan Osnos’ detailed profile of Chinese President Xi Jinping and his view of development which doesn’t include Western ideals of democracy and press freedom. One to watch given his role in shaping international relations in years to come.

Scott Harrison’s profile of  the Moscow apartment bombings of 1999 and Vladimir Putin’s alleged involvement paints the Russian leader in a much less flattering and ultimately rather scarey light.  Well worth a read, particularly in light of Russia’s involvement in Ukraine.

Who are the happiest people in Europe? The social democratic model appears to be working in Scandinavia whilst the economic crisis in Southern Europe appears to be dampening things according to Eurostat figures.

Qualityoflife

For those of you in the UK, you might want to check out Cambridge University research reported on in the Guardian which looks at which parts of the UK are the friendliest and most neurotic.

Featured image is a John-Thomas Nagel photo taken in Sao Paulo in Brazil published in Street Art Utopia.

 

 

Thought Starters

Content that has caught my eye recently, which includes coverage of Amazon, Apple Pay, Facebook’s financial results, the music industry, income inequality among other things.

Vanity Fair has a feature article focusing on the increasingly fraught relationship between Amazon and the publishing industry. The piece charts how Amazon was originally seen as a counterbalance to to the growing power of Borders and Barnes & Noble, but over time it was Amazon that upset the relatively cosy relationships within the publishing industry (albeit at the expense of the consumer).

Whilst Amazon’s hold on the publishing industry appears relatively secure, the company has received a bit of stick recently for its performance in other market segments (most notably the Fire Phone) .

Bezos’ sterling reputation kept few questioning these initiatives, but in recent months that has started to change. A number of recent initiatives seem to be costing more money while not necessarily showing signs of sure success.

Benedict Evans made a strong case a couple of months ago for Amazon’s approach of  putting off profits as it invested in new market segments, but  Amazon needs to have more winners if this strategy is to work over the long term.

Ben Thompson takes a valuable look at how Apple has carved out a strong strategic position in the payments space by creating a situation of mutual advantage for its customers, credit card networks, banks, and to a lesser degree, merchants:

Apple Pay

Technalysis has forecasted healthy growth in the wearable computing category. Whether its enough to provide a lifeline to Samsung and other besieged smartphone manufacturers remains to be seen:

Wearables

Facebook’s revenue results reported by Benedict Evans point to the company doing a good job of adapting to consumers’ increasing time on their smartphone:

Facebook Mobile

What Facebook is doing a less good of is reducing its reliance on the North American market as reported in Inside Facebook, despite the continued growth of internet and mobile internet penetration in the rest of the World:

Facebook Revenue by Region

Whilst Western consumers are relishing increasing mobile internet speeds, it’s a rather different story for many consumers in the developing world where the cost of data makes internet access a relative luxury. Ben Bajarin talks about the ‘light web’ in which mobile experiences are carefully optimised to reduce the data usage for consumers wary of:

Mobile Internet Developing World

Much has been made  of the move by brands from an era of disruption to engagement, enabled by broadening array of interactive digital channels. Given these changes, its valuable to read Tom Doctoroff’s spirited defence of more traditional marketing agencies.

An interesting counterpoint to Doctoroff’s  view is Faris who points to the lack of interactivity in the majority of digital advertising, pointing to Honda’s The Other Side campaign as where things should be heading:

You get the idea. I guess I just miss ideas that work on the web, where the user is in control of the interaction. Where everyone gets an interactive experience.

Bradley Leimar takes a look at how banks will look to improve their offering using enhanced digital channels that go beyond simply putting a customer interface online:

We are moving away from a banking relationship defined by the goal of being a customer’s primary financial institution to one where we focus on becoming their primary financial application. It’s no longer about wallet share. It’s about app-driven mindshare – as our customers reach into their pockets for their mobile device or use their glasses or other form of wearable technology and think about their financial relationship choices – before, during, and after a financial moment of truth.

The music industry is adjusting from an ownership to a streaming model. Mark Mulligan argues that the music industry needs to drop the pricing of streaming music if it wants to maximise overall revenues:

Music Revenue

Felix Salmon on the other hand focuses his attention on the value of having three dominant record labels in facilitating streaming music services, arguing that an oligopoly in this case serves the interests of consumers.

We take globalisation for granted in the increasingly interconnected world we live in. Given this, it’s interesting to see analysis from Pankaj Ghemawat and Steven Altman which compares how globalised information, trade, people and capital is over the last 10 years:

Globalisation

Thomas Piketty’s Capital in the Twenty-First Century has sparked renewed interest in the issue of income inequality. Oxfam has looked into correlations between income and inequality and health outcomes pointing to some of the more tangible negative outcomes associated with income disparities within countries:

Inequality

 

Sorapop Kiatpongsan and Michael Norton’s research points to the vast gap between the income of CEOs and their unskilled workers across different countries, with the wage gap being much larger than most people saw as being appropriate:

Wage Gap

The featured image is 25% Black by Elian in Cordoba, Argentina and found on eksoystem.

Thought Starters

I have recently taken on full time work on top of other commitments, so I’m finding my time to blog is less than I have had in the past. Find below content recently that has caught my attention.

I’ve seen my own consumption of podcasts increase sharply over the last year, so it’s great to see NY Magazine profile this burgeoning media format:

“Radio has been saved the disruption that has happened to other media. It’s been frozen in time for 50 years,” Blumberg said. “Now that everyone is walking around with a radio in their pocket at all times, and now that all cars are going to be connected, the form can flourish again.”

Recent figures point to Facebook as doing a great job in muscling in on Youtube’s role as host of online video according to Comscore figures:

Online Video Comscore Benedict Evan’s Mobile is Eating the World presentation provides a valuable look at how mobile is coming to dominate the consumer technology landscape:

Evans’ view is further backed up by John Lewis whose recently released retail report points to mobile overtaking desktop for online traffic:

Mobile vs PC

There’s a looming battle in the US in the mobile payments space between Apple Pay and the retailer backed CurrentC. Reports that CurrentC has been hacked before it has fully launched and reports of the system’s poor user experience suggest it might be a one horse race:

When it comes to actually paying, the system gets even more cumbersome. CurrentC describes the process on its support site: You need to select a “Pay with CurrentC” option on the register, activate your phone, open the CurrentC app, enter a four-digit passcode, press the “Pay” button, “either scan the Secure Paycode that the cashier presents (default) or press the Show button at the bottom of your screen to allow the cashier to scan your Secure Paycode,” select the account you want to pay with, and then press a “Pay Now” button.

Whilst mobile payments is in its relative infancy at the moment, the indifferent attitude that many millennials have to cash points to this space as being increasingly important in years to come:

Currency_Figure

Ben Thompson looks at the media sector, analysing which elements are extracting the most value, drawing an analogy with the iPhone and its components manufacturers:

The Smiling Curve for publishing

John Kirk takes a critical look at market research and points to it as providing a much better source of insights in enhancing existing products rather than providing guidance on new product categories:

We’re very, very good at explaining why things won’t work. We’re not nearly as good at imagining creative new ways things might work.

A look at the quality of life index by The Economist point to a rapidly narrowing gap between rich, emerging and poor countries:

Quality of Life The Economist takes a valuable look at Iran pointing to a country that is becoming less radical and more secular:

The regime may remain suspicious of the West, and drone on about seeding revolutions in oppressor countries, but the revolutionary fervour and drab conformism have gone. Iran is desperate to trade with whomever will buy its oil. Globalisation trumps puritanism even here.

I am a strong believer in the view that climate change is one of the major issues that needs to be addressed now if we’re to have a real chance of living comfortably on this planet going forward. The following graph from Bloomberg gives me some hope although the inconsistency of supply and issues of storage means that we’re not likely to see a wholesale switch to solar in the immediate future:

Solar Energy If you’ve ever wondered how hard it would be to pick up another European language, the following visualisation should provide a useful guide, found on Etymologikon:

LanguageI recently discovered the Earth View from Google Maps Chrome extension which provides a view of Earth each time you open a new tab – certainly beats the traditional blank screen:

Google Earth

The featured image is GoddoG’s piece from the Festival K-live in Sète, France.

Thought Starters: Content that has got me thinking 2

There has been some interesting analysis surfacing looking at the different mobile and tablet platforms and their respective audiences. Benedict Evans raises the important point that Android tablets encompass a broad array of devices making comparisons between Android and iOS tablets very difficult. Daniel Eran Dilger expands on this, pointing to IDC, Gartner and Strategy Analytics’ failure to properly unpick the tablet and smartphone market leading to a situation where apples (iPads and iPhones) are compared with oranges (low spec Android phones and tablets). The ecosystem of mobile apps and their respective community of developers has a vital role to play in the success of any mobile operating systems (no apps > no sales). In North America and Western Europe, iOS dominates the developer community, but Mark Wilcox points out that this isn’t the case for Asia and Latin America. Something to bear in mind as Asia becomes a growing source of innovation in the mobile sector.

Global Platform Preferences

Ben Thompson has taken a valuable look at the different channels consumers are using to interact with online. It’s well worth reading his commentary on the roles of the different channels.

Social Communication Map

Whilst Silicon Valley may no longer have a near monopoly on startups, it still provides one of the driving forces for the tech sector. In this presentation, Loic Le Meur looks at some of the organisations and innovations that have gained a profile in the region. Wearable computing has been getting some renewed attention with a preview of the Glass Development Kit for developers. Thomas Claburn explores some of the myths currently associated with the wearable computing sector. The Guardian continue their great work on data visualisations with a look at which corporations have made a major contribution towards global warming.

The Guardian Contributors to Global Warming

I moved from an iPhone to an Android device a couple of years ago. Whilst the Android app ecosystem is moving towards parity, every so often you come across an app that you wish there was an Android equivalent. The latest one is I PIXEL U which enables users to pixelate particular aspects of their photographs.IPIXELU_COVER2

Google has created a charming pair of binoculars to celebrate the Sydney Opera House’s fortieth anniversary, giving consumers a window to other inspirational places.

24 hour music video has been created to support Pharrell Williams’ song Happy. Beautifully executed promotion of music outside your standard Youtube container. Google profile Doctor Who with their latest doodle and when activated, leads users through to an online game. Find out more about the Whodle over at the Guardian.

Doctor Who Google