A Blog by Jonathan Low

 

Nov 19, 2016

The Only Faces Men Are Better At Recognizing Than Women Are - Transformer Toys

Men are devoted to their toys. But then we knew that, didn't we? JL

Samantha Cole reports in Motherboard:

At first, they thought that men were better at recognizing Transformers because they treated the Transformers as objects, rather than faces. But attributing their edge to this turned out to be too simplistic. Recognizing cars or toys didn’t necessarily mean you would be better at recognizing different faces, but the ability to recognize the faces you grew up with—even if they are robots in disguise—carries throughout adulthood.

Biggest Spike In Traffic Deaths In 50 Years? Blame 'Digital Diversion'

The automobile was an innovative technology. But current enhancements may be reducing productivity due to rising accident rates, suggesting that a newer innovation - the driverless car - may offer the best new advanced solution. JL

Neal Boudette reports in the New York Times:

Current generations of automated driver-assistance systems, like the Autopilot feature offered by Tesla Motors, may be lulling some drivers into a false sense of security that can contribute to distracted driving. (And) most new vehicles sold today have software that connects to a smartphone and allows drivers to place phone calls, dictate texts and use apps hands-free.

The Reason East Sides of US and European Cities Are Usually Poorer Than West Sides

Location, location, location. JL

Steve Goldstein reports in MarketWatch:

The (cause is the) impact of air pollutants at the time of the Industrial Revolution, as prevailing winds in the U.S. and Europe typically blow from west to east. And it’s an impact that has lasted into today. Pollution explains up to 20% of the observed neighborhood segregation whether captured by the shares of blue collar workers and employees, house prices or official deprivation indices.

3 Out of 4 Netflix Subscribers Would Rather Cancel Service Than See Ads

The good news for Netflix is that 90% of those surveyed would pay more to avoid seeing ads.

The challenge is that given the increasing cost of content, Netflix is likely to have to raise additional revenue somehow, which will create an opening for competitors in a market increasingly awash in content. JL

Shawn Knight reports in TechSpot:

90 percent of respondents said they would rather pay more per month than have to sit though ads. 74 percent said they would cancel their subscription if the company introduced advertisements. The results likely gel with Netflix’s own findings which is why we haven’t yet seen ads make their debut. It’s unlikely that three out of four users would actually leave if ads were introduced but if even just a fraction of them did, the impact would be tremendous.

With Apple Now Selling Used iPhones, Has the New Phone Market Peaked?

With telecoms no longer feeling the need to subsidize smartphone sales (it worked: game over), the majority of consumers are balking at new phone prices.

And, as the following article explains, while the US and Europe represent an opportunity for increased share, the real growth will come from developing countries whose consumers are more likely to accept the new vs used trade-off. The question is to what degree this will cannibalize sales of new phones in the future. JL

Tom Mainelli reports in Re/code:

That Apple is now offering the devices direct reflects both the maturing nature of the market and Apple’s desire to put the iPhone into the hands of more budget-constrained smartphone buyers while still making enviable margins. There’s a market for refurbished iPhones in the U.S (but) the larger play for Apple is to move refurbished iPhones into markets outside the country. The used smartphone market could have an impact on new phones in the future.

Black Friday's Inside Secret: Retailers Repeat the Same Deals Every Year

It's that time of year... And it may just be that consumers dont care if the deals and prices are always the same: meaning the occasion is more of a social and cultural event than an economic one.

On the other hand, the fact that so many retailers have cancelled Thanksgiving Day shopping and rolled back Black Friday openings also suggests that the front loading of holiday sales has reached a cost-benefit inflection point driven by the growing pressure of ecommerce, especially the convenience of free delivery. JL

Suzanne Kapner reports in the Wall Street Journal:

Eighty percent of the products and 43% of the prices promoted on the front pages of the 2015 and 2014 Black Friday circulars of Best Buy, Macy’s, Target, Wal-Mart, Kohl’s and J.C. Penney were identical. Marketing experts say the trend is likely to continue, particularly since retailers are under pressure to contain costs.

Nov 18, 2016

Why Store Lights Are Watching You Buy Groceries

They're less concerned with your inclination to shoplift than with your potential to buy more than you intended to - given the right incentives - which the LED light based electronic network communicates from the store's database to your phone. JL

Kaveh Waddell reports in The Atlantic:

If shoppers grant the store’s app access to their smartphone, the phone can watch for the lights and use the pulses to pinpoint its location. Doing so allows the app to plot the best routes for shopping lists, tracking people through the store. If a retailer knows where you spent your time inside a store, it can follow up with discounts for a product you looked at but didn’t buy, to encourage a return trip, or even as you’re in the aisle, to nudge you to buy it now.

The Self-Delusions of Digital Transformation

Magical thinking and rhetorical stardust are no substitute for the hard, gritty - and expensive - work of  transforming processes, organizational designs, business models and strategic plans. JL

Milo Jones and Philippe Silberzahn comment in Forbes:

Adding a foosball in your lobby won’t make you a startup company. When a business requires a new business model, i.e. new processes, new resources and new values, it must be lodged in an ad-hoc, autonomous entity. In defining their response to the digital disruption of their industry, incumbents in threatened industries might do well to (remember that it is) a cultural, issue.

Internet Censorship Increased Across the Globe For the 6th Consecutive Year

Internet freedom of access declined in 34 of 65 countries evaluated. Which has implications for marketing and global competition, to say nothing of  the spread of knowledge. JL

Amar Toor reports in The Verge:

24 governments blocked or restricted access to social media sites and communication services in 2016, compared with 15 last year. Internet freedom declined in 34 of the 65 countries, covering 88 percent of the world's online population. This year saw a notable crackdown on secure messaging apps. WhatsApp was blocked or restricted more than any other. China (was ranked) the worst abuser of internet freedom for the second consecutive year.

Artificially Intelligent Chips Are the Cloud's Next Frontier. And Microsoft (!) Is the Leader

In a co-evolving technological universe, the software and algorithms required to sort and interpret the vast amounts of data now being generated need equally 'intelligent' hardware to perform their tasks. 

This poses both a challenge and an opportunity to the enterprises which produce both of them. And the fact that Microsoft has taken the lead in this space, at least for now, suggests that tech companies' 'muscle memory' from the early days when devices were destiny retains considerable value. JL

Cade Metz reports in Wired:

Deep neural networks learn discrete tasks by analyzing vast amounts of data, and lean heavily on GPUs and other specialized chips. As deep learning continues to spread across the tech industry—driving everything from image and speech recognition to machine translation to security—companies and developers will require cloud computing services that provide this new breed of hardware.

In the Global Economy, Diversity Is Not A Quota, It's A Strategy

Diversity is derided in some circles as a politically correct response to demographic pressure.

But others recognize, as the following article explains, that in a complex global market with complicated, overlapping customer bases and supply chains, it's just another way of getting closer to an increasingly distracted consumer who is looking for reasons to prioritize in order to make better choices. JL

Luis Messianu reports in Advertising Age:

If you really want to disrupt and get noticed, you need to connect with an audience in a culturally relevant manner, and in order to do so you need to tap into powerful know-how and expertise.

We Are Where Our Attention Is

Distraction is not a condition; it's a strategy.

The psychological and philosophical concerns about humanity's growing inability to concentrate are based on what may well prove to be a misinterpretation.

The reality, as the following article explains, is that in what has been deemed an 'attention economy,' distraction plays a vital role.

The challenge for consumers and generators of data, information and knowledge is the degree to which humanity can absorb this flow and effectively optimize it. JL

Sean Illing comments in Vox:

The attention industry needs people in a distracted state. Media becomes increasingly attention-seeking and clickbaity, (so) starts to influence your brain and personality. After government was able to persuade millions of people to volunteer for the army (in the First World War) on the basis of advertising, business took notice: If they can get people to join the Army, we can get them to buy a car. This was the model that now powers Facebook and Google

Nov 17, 2016

United Will Not Allow Lowest Fare Passengers To Use Overhead Bins. Or Choose Seats.

Flying those friendly skies...JL

Jeffrey Dastin reports in Reuters:

The company expects the moves to add $4.8 billion to its annual operating income. United’s announcement follows Delta Air Lines’ decision to sell cheap tickets that prohibit itinerary changes and seat selection. “This action shows how airline consolidation is eliminating choice. Consolidation (has) gone too far."

How Factories Are Becoming Smarter and More Productive

By identifying, recombining, effectively interpreting and productively applying as much data as is available as quickly as possible. JL

Christopher Mims reports in the Wall Street Journal:

It is about harvesting as much data as possible from all the machines in factories, shipping it to the cloud, parsing it with artificial intelligence, and using the results to make those factories more productive, less costly to operate, and more reliable. The goal is to break data out of its silos—the machine, the factory floor, the shipping and logistics system—and pool it in a way allows for real-time decision-making.

Gaming the Hiring Process Literally: Job Prospects Code Against Each Other To Demonstrate Superiority

Digital Darwinism. JL

Chris O'Brien reports in Venture Beat:

Tech companies hiring remains heavily biased. CodeFights is focusing the hiring process on skills rather than a resume or university degree. Programmers create free accounts and then play in challenges against each other, or against bots built by the company. There are features that track the players’ skill levels over time. Companies use CodeFights for free until they hire a programmer, at which point they pay a referral fee of 15 percent of the first-year salary.

Startups And Investors Are Moving From Easily Definable Products And Services

As convergence increasingly influences the direction of innovative products and services, entrepreneurs and the venture investors who back them must prepare to embrace less familiar concepts and strategies. JL  

Michael de la Merced reports in the New York Times:

As the start-up world continues to move away from easily definable consumer or corporate products and services, investors have had to take less-charted paths.“No one knows what the next big platform is. Now is a new market time.”

Why 92 Percent of Everything We Do Will Soon Be In the Cloud

Put another way, given the projected growth levels for data generation, internet of things applications and consumer storage demand, 'the cloud' is the only thing saving this digitally driven economy from gridlock and collapse. 

Joe McKendrick reports in Forbes:

In the next four years, 59% (2.3 billion users) of the consumer Internet population will use personal cloud storage. The total volume of data generated by IoT will reach 600 ZB per year by 2020, 275 times higher than projected traffic going from data centers to end users/devices;
Public cloud is growing faster than private cloud growth

Amazon's Next Big Move:Taking Over the Mall

What if Amazon's move into a chain of bookstores, convenience stores for groceries and kiosks for electronic devices are all evidence of the company's growing realization that pure ecommerce is not economically sustainable?

Which may mean only a convergence strategy based on a mix of digital and physical will work. JL

Nicholas Carr reports in MIT Technology Review:

Bezos underestimated the allure of bricks and paper. After 20 years of growth, ecommerce still accounts for less than 10 percent of total retail sales. He seems to be admitting that if Amazon is to expand, it will need to invest in bricks as well as bits. Amazon is planning to open convenience stores, along with drive-in depots to pick up merchandise ordered online(and is) rolling out “pop-up” stores to hawk its electronic devices. “Pure-play Web retailing is not sustainable.”

Nov 16, 2016

Electric Cars Are Now Required To Make Noise At Low Speeds. So They Don't Kill the Unaware

Silent but deadly...JL

Andrew Hawkins reports in Re/Code:

The new rule requires all newly manufactured electric vehicles 10,000 pounds or less to make an audible noise when traveling forward or in reverse at speeds 19 mph or less. NHTSA says the sound alert is not required at higher speeds because  tire and wind noise, “provide adequate audible warning to pedestrians.” Whether it’s a fake engine noise or a “beeping” noise will be up the manufacturers of electric vehicles.

Is Facebook's Ad Machine Slowing Down?

The issue is that users will tolerate only so many ads and Facebook may be maxing out given the amount of space it has per individual news feed. JL

Seth Fiegerman reports in CNN/Money:

The most pressing concern for Facebook may simply be that there is only so much room left to squeeze ads onto the social network to keep up its incredible sales growth.

Cell Phone Finger Smudges Leave Lots of Forensic Data

You are what you thumb. JL

Robert Hotz reports in the Wall Street Journal:

Traces of molecules and microbes left when you handle your phone can add up to a composite portrait, including gender, diet, medications, clothing, beauty products, and places visited. “We got 90% of the people correctly identified based on the chemistry of the phone.”

Selective Silos: Marketers Rethink Consumers In New Era of Increased Data, But Fewer 'Facts'

In an era of growing social influence and selectively siloed reasoning, more data does not necessarily mean better information or more predictable decision making. JL

Sapna Maheshwari reports in the New York Times:

Facts are certainly discretionary now, so there is that notion as a marketer and advertiser of understanding we live in a postfactual democracy. In a world of social and filtered media, we are not getting enough signals that we might be wrong. All marketers must actually look for evidence and actually search out why they may not be right.

Google Boosts Artificial Intel Effort By Hiring Two Leading Experts: And Both Are Asian Women

Talent is where you find it, not where your predispositions lie. JL

Richard Waters reports in the Financial Times:

The  hires include Jia Li, who has been head of research at Snapchat and Fei-Fei Li, director of the AI lab at Stanford University’s computer science department. The two will lead machine learning for Google’s, boosting the company’s attempt to make up lost ground on Amazon and Microsoft. The appointments were announced by Diane Greene, the board member of Google parent Alphabet who was appointed last year to relaunch Google’s cloud business.

In An Era of Digital Convergence, Why Are We Still Classifying Companies By Industry?

If you are going to disrupt the economy, you had better be prepared to disrupt the way you analyze it.

Technology is no longer merely an industry. It's the means by which every business derives and delivers value. And it has blurred - or perhaps more realistically - emulsified the lines between what was once a clearly defined set of opportunities and threats.

Almost any business can enter any others' through deft application of data and digital power. Given that reality, an enterprise that limits its vision by staying within traditional bounds will be hard-pressed to optimize its variables. Economists, analysts and others who remain similarly constrained risk missing major future trends unless they, too, become more open minded about identifying contributions to growth. JL

Barry Libert and colleagues report in Harvard Business Review:

Industry walls are disintegrating. Apple and Google have made moves in the automotive, healthcare, media, and smart home markets,. They have expanded far beyond the “Information Technology” tag. LinkedIn, Uber, and Airbnb leverage our cars, homes, skills, and networks. Companies that invite a broad network to share in value creation achieve faster growth, lower marginal cost, higher profits, and higher market valuations. Business model is a better way of identifying competitors and comparing performance.

Nov 15, 2016

Tesla's Model S Declared the Most Loved Car. Again.

The joys of car ownership may have been written off too soon. JL

Liane Yvkoff reports in The Drive:

The enthusiasm of Tesla owners isn't much of a surpr1ise—but the love millennials have for their vehicles is. Data shows that Gen Y love the vehicles they purchase—regardless of whether it is a premium or economy model—and give them higher ratings than other groups. The reason is simple: Nothing beats the emotional benefits of owning your car.

What's Wrong With Apple?

Times - and technology - are changing. Companies either adapt - or deal with the consequences. JL

Greg Satell comments in Digital Tonto:

Product innovation is different than technological innovation. Apple excels at the former, which requires a deep understanding of the consumer, tightly integrated operations and strong engineering and design. It is worse at the latter, which favors exploration and a more open approach. In a market made up of platforms, ecosystems and networks, the key to strategy is to widen and deepen connections. Those aren’t Apple’s strengths and never have been.

Facebook Reportedly Had A Fix For Fake News Posts But Was Afraid To Use It

The media - mainstream, social, digital and alt - are increasingly subject to pressure. Which is why consumers are increasingly disinclined to believe anything they see.

The question for marketers of pure or commercial opinion is what, if anything, can be done to regain even a modicum of trust in this environment. JL

Natt Garun reports in The Verge:

High-ranking Facebook executives were briefed on an update that identified fake news and hoaxes, but the tool was never released in fears of “upsetting conservatives.” The tool, which heavily affected right-wing media, was reportedly killed following revelations that the company’s human-curated Trending Topics team often favored liberal topics.Facebook responded, "The articles allegation is not true."

Samsung Boosts Connected Car Cred With $8 Billion Harman Acquisition

Samsung could actually be on to something here.

With Google, Apple, Uber and others enamored of disrupting auto manufacturing, Samsung may be following the Levi Strauss strategy from the California Gold Rush days: digging for gold was for suckers. The real money was in selling shovels and pants to the gold miners. Or, 165+ years later,  components to the car makers. JL

Paul Sawers reports in Venture Beat:

Harman makes a range of products for consumers and enterprises, with a particular focus on automotive electronics. The company offers connected car systems — such as embedded infotainment, telematics, audio, and security. More than 30 million vehicles are equipped with Harman’s smarts, and around two-thirds of Harman’s $7 billion sales over the past year were related to cars.

Lighter Inventory Highlights Retailers' Latest 'Anti-Amazon' Strategy. For Now

So let us get this straight: the best way to take on a competitor with virtually unlimited inventory is to offer customers less? 

Um, yeah, that'll work until, well, customers decide they'd rather have what they want when they want it - and with free shipping, to boot.

Retail remains a category in search of a survival strategy. JL

Miriam Gottfried reports in the Wall Street Journal:

Having lower inventory makes it more difficult for retailers to maximize sales. That makes it tougher for them to cover the fixed costs of running stores and administrative expenses. Tight inventory can also mean selling out of a popular item. It also puts more pressure on retailers to hit the right fashion notes. Failing to do so could mean having to discount anyway, causing a double hit to sales.

This Has Been the Worst Year For IPOs Of US Companies Since the Great Recession

Pendulums swing and cycles cycle. But the emphasis on safety in the realm of risk capital may have outlived its usefulness - and its rate of return. JL

Alison Griswold reports in Quartz:

Only 49 companies headquartered in the US had completed public offerings through the third quarter, raising a combined $7.2 billion.Within PE, there have been 18 IPOs so far this year, which raised about $5 billion, the most sluggish performance on both counts since 2008. Many managers continue to take advantage of strategic acquirers hungry to purchase growth rather than build organically.

Nov 14, 2016

Is the Internet Actually Changing The Way We Pronounce, Hear and Interpret Words?

Humans are reading, watching, listening, debating and commenting more than ever. The growth in all aspects of communications has continued to grow. Which means that the meaning of language: how we speak, hear and interpret is undergoing as much of a revolution as the platforms and channels through which we receive it.

There is evidence, as the following article suggests, that the scale and real time nature of these communications is changing what we say, write and receive because people are able both to reframe, correct or re-imagine in real time. Which is important to anyone attempting to communicate anything from their feelings to their sales pitch. JL

Adrienne LaFrance reports in The Atlantic:

The internet confirms that even when you can’t settle the question of what usage is “proper,” you can be sure it will continue to change. Real-time communication offers the potential for linguistic debate on a scale and timeframe that wasn’t previously possible—which may effect how pronunciations fall in and out of favor. People aren’t just communicating by text, but they’re doing so in real-time, meaning they  address ambiguities instantly.

The Ways Artificial Intelligence Is Creating A Better Customer Service Experience

Anticipation has been the Holy Grail of marketers and customer service pros. The notion is that better information reduces economic friction, making customer confusion and dispute resolution more successful, thus improving the experience, the brand aura and the likelihood of repeat purchases more likely.

And, as the following article explains, employing artificial intelligence to enhance rather than replace the capabilities of human customer service agents is likely to optimize outcomes. JL

Shep Hyken reports in Forbes:

(AI) will not only answer my question, it will make additional suggestions. It knows when customers call with a particular problem, they will run into related issues. Some think (it) would replace a call center rep. No doubt (AI) can deliver a better solution. But, what if rather than replacing the employee, it supported the employee. This would allow for the company to keep the human touch with its customers, but also provide quick and accurate support.

How NASA Is Harnessing Graph Databases To Learn From Past Projects

For any enterprise, even those with far more mundane missions - and far less entailed risk - the goal should not just be the storage of data, but the ability to retrieve it in ways that enhance the goals of identifying and eliminating similar problems in the future while optimizing potential outcomes. JL

Steven Melendez reports in Fast Company:

(NASA is) storing information in a graph database—optimized to store information in terms of data records and the connections between them. Such network graphs have become a familiar feature of online social networks. Individual lesson write-ups (are) nodes in the network, associated by a machine learning algorithm. It’s used by e-commerce companies to generate automated product recommendations based on relationships between users and products.

Your Cell Phone Number Has Become A 10 Digit Key To Your Private Life

It has replaced the Social Security number or personal identity number in most countries as the best source of information about anyone, anywhere, anytime. JL

Steve Lohr reports in the New York Times:

The cellphone number can be a gateway to all sorts of other information. Investigators find that a cellphone number is often even more useful than a Social Security number because it is tied to so many databases and is connected to a device you almost always have with you.

Forget the Startup Garage Myth: Innovation Requires Clusters of Smart, Skilled People

Innovations destined to achieve scale are driven by intellectual and human capital as well as the financial kind. And it is assemblages of those clusters of expertise, money and knowledge that drive enterprise success and economic growth. JL

Mark Dodgson and David Gann report in World Economic Forum:

It is clusters, not garages, that accelerate innovation. It is clusters that bring together start-ups, established corporations, specialist aligned businesses, and, research-intensive universities. It is access to the brains, equipment and collaborative environment that spurs on great innovations and high-growth companies. This is seen in most of the high-growth vibrant technology clusters around the world.

Why Tenacity Matters More Than Talent

It is popular in Silicon Valley to talk about 'failing fast' and learning from the experience. But too often the assumption is that this is about improving the product or the marketing or the supply chain.

The reality is that the benefits of understanding a person's psychological strengths and weaknesses may be the most important of all. The ability to overcome obstacles in the face of frustration and doubt; to identify one's limits and overcome them - even if it means hiring someone better to take on specific tasks. Having the tenacity and commitment to improve and persevere is a crucial determinant of success.

And in an economy increasingly dependent on networks, alliances and partnering, recognizing strengths and weaknesses is not just a team-building exercise, it's a strategic imperative. JL

Thomas Oppong reports in Inc.:

Studies suggest that the ability to persevere and maintain goal-focused effort for extended periods is important for your success. Even those with some kind of talent have to work hard to reach the peak of their careers. Einstein and Mozart had to work damn hard to achieve greatness.

Nov 13, 2016

Sorry, But Lucasfilm Owns All Of Your Droids

The word 'Android' first appeared 300 years ago. The word 'droid' in the 1970s during the initial Star Wars craze. And don't even think about trying to use it. JL

Zachary Crockett reports in Price Economics:

“If you’re George Lucas’ lawyer, you’re like, ‘Dude, I don’t care what’s in front of droid in your brand name. You can say whatever the hell you want, but that’s mine. I own those 5 letters.’”

Digital Assistants From Amazon and Google Have Different Perspectives and Personalities

In a world increasingly influenced by emotion - digital or physical - how devices relate to their users counts. JL

Carolina Milanesi reports in Re/code:


Are We Enamored With the Wrong Kinds Of Entrepreneurs?

Are we too focused on startups or small businesses as an end in themselves, rather than in those enterprises that grow?

There is nothing wrong with the former, but it is the latter which create wealth, jobs and future prosperity. JL

Roger Martin reports in Harvard Business Review:

We should absolutely revere those individuals who identify an unpleasant equilibrium and innovate to create a way to transform it for those for whom it is a burden, in the process growing a large company and creating sustainable, high-productivity jobs.

US Federal Judge Orders Amazon Refunds For Children's In-App Purchases

Clueless in Seattle. JL

Jonathan Stempel reports in Reuters:

A federal judge directed Amazon.com Inc to set up a year-long process to reimburse parents whose children made in-app purchases without permission. It accomplishes the goals of placing liability on Amazon and refunding eligible customers."The judge rejected Amazon's request to issue refunds in the form of gift cards, saying the company would "undoubtedly recapture some of the profits that are at issue."

IBM Is Learning How You Interact With Your Bank. To Protect the Bank, You and Maybe Some Other Stuff

The system is designed to detect fraud by learning 'normal user behavior.'

Though what 'normal' is on the internet these days defies description - and probably will continue to do so for another generation or so.

Whatever the outcome as a protective service, it will certainly provide IBM with some very useful and monetizable information. JL

Steven Melendez reports in Fast Company:

IBM is introducing what it calls behavioral biometrics to its Trusteer Pinpoint Detect anti-bank-fraud toolkit. The new feature will automatically use machine learning to build statistical models of how individual users move the cursor while using banking sites and flag unusual behavior. "The system automatically learns normal user behavior,"

What Does Ownership Mean In the Digital Age?

It used to be that once you bought something, you owned it until you decided to sell it, give it away, throw it out - or until the implacable forces of nature rendered it inoperable.

But that was then. Now, as the following article explains, you may own the hardware, but you most emphatically do not own the software that enables it to function.

This raises questions about our notions of value, utility, acceptability as well as the laws that govern their applilcation. All of which are going to have to be redefined. JL

Alex Kidman reports in ABC News:

You don't "own" smartphone apps, just the ability to use them. Ditto for your copy of Windows, or those songs on your iTunes account. So what happens when the servers that facilitate these products are shut off?