New ICT Body Kicks Off

phoenix We seem to be awash in a sea of forums, networks, industry bodies and think tanks these days, all of whom have opinions on broadband and the state of the ICT industry. Will we ever get a consensus?

After a lengthy debacle, in which ICT industry players failed embarrassingly to score any goals, the government has stepped in with a solution that bundles the picked over carcass of ICT-NZ with that of the decapitated body of the Digital Strategy. Hopefully increased gate takings in the form of new digital sector funding and some firm direction from the game’s governing body can breath life into Digital Development New Zealand (DDNZ).

Minister Cunliffe announced that the new team will comprise a partnership between industry, community and voluntary groups and will focus on issues of national importance. In the meantime another more commercially oriented organisation has reportedly sprung Phoenix-like out of ITANZ. This group will also have representation at the table of the digital sector body as will TUANZ, NZCS, INZ, LGNZ and WIT – to mention but a few of the team members. A group of prominent business people and heavyweight telco players has also established the independent Broadband Industry Forum to channel ideas on scoring better broadband for New Zealand.

DDNZ is tasked with “providing policy advice and delivering on strategic goals”, although the groundsman has not yet set up the goalposts. I must admit that I’m also left back wondering how well DDNZ can actually function as a team, given the wide spectrum of views represented on its founding board and the lack of industry alignment in the past. Perhaps that’s why Fran Wilde has controversially been engaged to referee the council.  Wilde is a consumate political animal with a history of driving difficult projects forward. It may not matter that there is no consensus.

Notably absent from the DDNZ council are representatives of the academic community. Given the nature of comments on innovation by sports columnist Stuart Corson in a recent Unlimited article, I trust that these new bodies will move quickly to establish links into academia. Considering the absence of academics on New Zealand tech company boards, the shortage of technology graduates and the general paucity of informed debate on the broadband issue, it behoves the industry to finally substitute some representation from the university community onto the playing field. In my experience, contemplative intellectual types are generally the last people chosen to join sports teams. In this case it may prove to be a mistake.

X|Media|Lab Delivers Quality ConneXions

xmlHeld last month at Te Papa, X|Media|Lab proved that we can all be global influencers for digital innovation. Not only that, but by utilising knowledge networks, we can leverage the creativity that already exists in our own back yard to help build successful global businesses. Some quick notes from the conference day:

The speaker session opened by addressing the concept of “ideation” – finding good ideas. Former Sony Entertainment president Chris Deering focussed the audience’s attention with the observation that online entertainment services would likely overtake revenues from TV and cable in the very near future. With MySpace (reportedly) approaching already 100 million sign-ups and phone handset sales ballooning he also predicted a future market for mobile communities in the vicinity of 400 to 800 million users by 2012. With numbers like that it was easy to see where the smart money was headed he said.

sachinIn a room full of game developers and creators of virtual worlds, those remarks really set the tone for the day. Continuing the theme, Virgin Comics and Animation CEO, Bangalore based Suresh Seetharaman, noted that in India alone there were 550 million under 20 year olds and that the mobile phone has become far more ubiquitous than the computer. He explained that his business was developing new creative streams, starting with fantasy comics because many of the largest grossing feature films have sprung out of comic book stories. Virgin Comics are creating a new pop culture by drawing on both mythology and modern media. A curious example of this is their Sachin Tindulkar super cricket hero storyline.

Local lad made good Richard MacManus prophesised on technology trends, later posting the presentation on his  highly rated Read Write Web blog. Moves towards the “intelligent web” were to the fore in his discussion as was the ongoing battle of Google versus Facebook. Keynote speaker Noah Falstein then spoke about the essentials of brainstorming and how to promote ideas instead of egos. Afterwards he went on National Radio and took part in a panel discussion about the future of online gaming.

Tom Duterme enthused about new venture development and the importance of establishing a good team behind the product. As Google’s talent scout for purchasing new businesses, I noticed he was much sought after during the intervals. Gao Li lead a team from the controversial but now profitable Suzhou Science Park (near Shanghai) and shared with us the staggering scale of China’s investment in research, science and technology. In her home province alone there is a $US 2 billion VC fund and some 3.8% of regional GDP is reinvested back into RS&T, putting New Zealand thoroughly to shame.

AlvinAlvin Wang Graylin expanded on the China story by mentioning that there are already nearly 600 million mobile phone users but with SMS being the predominant use, he cautioned that revenue per user remains low. In an effort to grow this market his company sets up mobile phone marketing services. He suggested that whilst carriers were keen on securing new revenue streams, this was limited by network capability for the time being.

Perhaps the speaker I enjoyed most was Hugh Mason from the U.K., a politely spoken and knowledgeable investor and entrepreneur in the creative sector. He had a very simple mantra for creating value with a winning start-up business team. “You need a finder, a minder and a grinder” on your team he said and try to have your product solve a problem that makes the world a better place. I took some comfort in the fact that we have formed our latest venture around just such a model.

I also enjoyed the networking session kindly hosted by Park Road Post the evening before but I found myself asking, as a “veteran” of the Wellington technology business networking scene, why was it the first time I had set foot in those hallowed halls. X|Media|Lab stands for cross-media connection. Why then do we hear so infrequently from our friends in Miramar? How about we run a local XMedia event each year and challenge film, software and graphics entrepreneurs to bounce new ideas around together.

According to Tim Berners-Lee, the new imperative for the Web is now creative connectivity. But as one of the XMediaLab speakers mentioned, “I do business with people that I like – but I first need to get to know them in person to like them”. Creativity and good ideas arise from the interstices between communities and hence it is very important to overlap from time to time. I feel that lately we have not been achieving this often enough. New Zealand Trade & Enterprise are to be congratulated for supporting this event and let’s hope there will be others in the future. In the meantime local networks like Unlimited Potential and ION will continue to add value by building social capital and sharing knowledge amongst the technology sector community.

Thank-You So Much for Waiting

Why does it take a major telecommunications provider eight days to rectify a simple fault on a phone line in New Zealand? No. it’s not a bad joke, it really happened to me last week.

A couple of weeks ago I noticed there was a lot of background noise on my phone line. About the same time, my home office ADSL broadband began to get mighty slow. Eventually I lost all access to the Internet, although my phone remained working, but with even more noise. So I set about eliminating all the possible causes of the fault including swapping the router/modem, replacing the cabling and testing wall socket filters. No joy, so now it’s time to call the helpdesk.

Now when you call the helpdesk you first have to navigate the voice activated interface which (if it works) places you in a queue to speak to a real person. That’s fine, they play some cool Kiwi music that I like whilst I wait (Liam Finn, Anika Moa etc). Any moment I will get to speak to a technician who can resolve my fault – wrong. After a few minutes a lovely Filipina lady called Maria answers and we go through all the standard questions like, “have you turned your modem on and off?” She’s very polite, so I play along. When this fails to solve the problem she decides to put me on hold in order to speak to her supervisor. More music. After ten minutes in the holding pattern I realise she has lost the call.

Second attempt to call helpdesk, virtual receptionist then more music. Then I get a charming fellow from Manila called Arvin. He’s a bit more technically savvy and we talk about testing and swapping filters on all the wall jacks (I bought new filters and a very long cable in anticipation of this conversation). Still no luck. But Arvin agrees there is a line issue and kindly books me a service call with “Advanced Broadband” the division who actually fix the phone lines back in New Zealand. Next day I wait at home for the scheduled call. Nobody calls.

Then I have some meetings and don’t get to follow up. I use CafeNet in the city to check my email and do a bit of business online. Couple of days later I try again. Another call patched through to Manila and the same music whilst I hold. Another lovely lady re-books my technician call, “thank-you so much for waiting”, she chimes. But the technician again fails to call the following evening. Why is this is taking so long? I head off to bed tired and annoyed. The next day, an early helpdesk call, more holding music and then a very sleepy sounding night shift worker in the Manila call centre. We both manage to remain polite. He books me another service call. This time the technician calls as per the agreed schedule. The technician agrees there is a line fault (told you so) and promises to contact me when he is at the local exchange. He makes good on his promise and cheerily calls back to report that a small wire-end was loose at the exchange. Back in business.

So I guess my first question is: why does it take eight days, five phone calls and two hours of my valuable time to resolve a simple fault? Now to be clear, I received very polite and helpful service at all times from the call centre workers and the technician. The problem is the system and how it is managed. Outsourcing call centre work is a great way to lower costs, especially so given that recruiting locally is also getting harder. But if the helpdesk staff do not have authority to make any decisions it reduces their role to that of triage and placating the customer. Furthermore, when they do take action, better make damn sure that request is followed up locally or risk alienating the customer.

I have long maintained that broadband speed is not the issue in New Zealand. I can run my consulting business from home on 500kbs or 100Mbs line speed or anything in between. There are other more pressing problems like international connectivity. And as long as we have a monopolistic situation we risk the continued imposition of high prices and poor service levels for broadband. Bring on the competition.

My second question then is this: if it takes eight days to reconnect a loose wire, how long do you reckon it will take to build and support a nationwide fibre network?

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Epilogue of Enragement

gunmen

I don’t normally speak out on such issues, but I am growing tired of political correctness and can hold my tongue no longer. A father of three young children has died as a result of another armed robbery by three bandits in South Auckland. [Subsequent to first posting this article, an 80 year old Asian woman has been beaten to death in the same area and another Asian businesswoman intentionally run over and killed in a carpark.]

I hope Tapu Misa, who attempted to rubbish a recent controversial research paper by Greg Clydesdale on Polynesian social , educational and economic underperformance, will visit the family of the shot man and apologise for the way both Maori and Polynesians continue to be overrepresented in the violent crime, child abuse statistics and in the prison population. I hope she will explain the reasons why the adoption (by some) of L.A. style gangster culture has led to an increase in drug taking, teen promiscuity and gun ownership. 

I hope she will also write another editorial detailing why some members of her community feel they are somehow exempt from aspiring to contribute economically apart from in the colourful street markets of Otara or mopping toilet floors at nearby Auckland airport.

Clydesdale’s research was not anti-migrant and neither is my argument. The victim in this attack was a migrant, a family man who came to New Zealand and was prepared to work hard for a better life. His attackers were young Polynesian or Maori males probably born and raised locally. The issue here is that we are growing a brown underclass and nobody seems to want to talk about it nor acknowledge the likely downstream consequences for our society. If embarrassed government agencies try to shut down this discussion, how can we possibly find a solution?

Forget broadband or taxation. This is the real election issue debate we should be having because it impacts on our collective economic futures and our prospects for ongoing social cohesion – irrespective of our skin colour.

Smallworlds Launches Virtual Playground

swNew Zealand developer OutSmart go public with their virtual world offering this week. The Smallworlds team can be rightly proud of what they have achieved in terms of leveraging Kiwi creativity and generating a bankable global business opportunity. I was invited to be a beta tester on the site earlier this year and consequently got my son (7) and stepson (10) to try it out. The fact that they were so enthusiastic about it augurs well for the future.

Not only is Smallworlds safe and child-friendly, but it requires only an Adobe Flash plug-in to run within a browser. No expensive software downloads or monthly subscriptions. The site is hosted around the globe on Amazon’s EC2 cloud server array.

But Smallworlds will have wide appeal to young adults as well. You can personalise your avatar, set up and furnish your 3D virtual home and create a virtual pet that trots around after you adoringly. Then you can invite friends over to play pool or listen to music. And it’s all free to access. Have fun with it.

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Entrepreneur’s Epilogue

It was with much relief that we overcame the roadblocks that beset our baby start-up last week. Our internal wiki and email is in good health again and our funky web design expert is back home from the wilds of Bosnia (where Internet access is still a challenge to say the least!). So we now have a cool new logo and the makings of a website at last.

My CTO proudly showed me the server rack he acquired on TradeMe. It looks very impressive, all black and shiny with impressive LED displays. You know that you really do have an Internet business on your hands when your company owns a server rack. But can we spin some gold from all that silicon?

By the way, speaking of cost effective infrastructure for start-ups, Helen Baxter* links here to an interesting article on how the real cost of starting a business continues to fall as technology and connectivity improve. Food for thought.

* It was great to finally meet the effervescent Ms Baxter who was in town mentoring at X|Media|Lab last week. XML was the best event I’ve been to in years and I will devote some space to sharing about it very soon.

Start-Up B. Goode

Paul Graham, from high profile Silicon Valley investor Y-Combinator, extols the virtue of “doing good” in this clip as he speaks to an audience of young entrepreneurs at the Start-Up School ’08 conference held recently at Stanford.

Graham is the kind of guy you sit up and pay attention to. His company currently funds and mentors over 50 start-ups, many of which are Web 2.0 ventures. He believes projects that do good gain a lot more traction when it comes to attracting customers and winning funding.

He cites Google which launched in 1999 as a hacker response to the lack of search functionality on the Internet. When Google began it had neither revenue nor customers, but it was those early years that saw the fastest appreciation in its share value.

By the way there is a whole bunch of stimulating material from the conference featured on Omnisio a very cool video presentation sharing site that is being backed by Y-Combinator and was co-founded by Ryan Junee. Seriously, I could happily spend hours surfing Omnisio which, unlike YouTube, actually hosts informative material worth watching.

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X|Media|Lab Event – Commercialising Ideas – Fri 30th May – Wellington

Don’t forget that the XMediaLab event hits town on Friday. If you are involved in anything remotely connected to mobile content, virtual worlds, Web 2.0 or digital media innovation in general, then you really need to be at this event. At $99 a head it has to be the best value outing of the year. Attracting global leaders in innovation to engage with NZ firms is one way we can overcome our remoteness. GeniusNet supports this event because we strongly believe that a lot of creativity and opportunity arises when you cross fertilise between different disciplines such as film, animation and software. See you there!

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Entrepreneur’s Epilogue

We hit our first speed bump this week. It was bound to happen. Our office server fell over for several days meaning we had no internal email and we lost our virtual whiteboard facility. With our people currently spread around Munich, Melbourne and Wellington, these tools are essential. So everything simply stopped happening. Very frustrating.

Then on Thursday night I made the mistake of venturing into the central city at 5pm. It was gridlock. As an organisational researcher I’m always interested in analogies between business theory and real life and it didn’t take me long to make the connection. In project management terms it’s called event chain methodology.

So I quickly realised I needed to find a sub-critical pathway to get my damn car out of the middle of the Willis Street / Manners Street intersection! The point is that we had encountered the exact same problem within the business. A critical feature had failed, leaving us with flow-on effects and time delays. Back to the drawing board to find a way around the problem. All good learning.

ICT Investment for Health

It’s no coincidence that David Cunliffe was allocated both the role of ICT Minister and that of Health; he’s both comfortable with technology and adept at relationship building. But in his speech to a recent health leadership forum, he made only passing reference to the role of ICT in the health sector.

Given that New Zealand companies have developed and exported some of the smartest health sector business applications around, it seems curious that we still have not yet invested in an integrated health I.T. infrastructure of our own. Apart from the obvious cost saving benefit, there is the alluring prospect of showcasing our homegrown technology to the world. Most importantly, such a system might save lives and alleviate suffering. Furthermore, the health sector has long been touted as a beneficiary of better broadband, yet we don’t seem to have made the connection yet.

The recent case of a patient whose lung cancer remained undetected is surely a prime example of a medical misadventure that might have been avoided through the use of technology. The gentleman concerned presented with a bowel problem. He then received an x-ray which incidentally alerted the attending physician to the presence of a suspicious mass in the patient’s lung. However no follow-up was done after the man returned home and four years later the tumour is now inoperable. With a high speed nationally integrated system, the query by the house surgeon would have been flagged on a universal patient file and the digital x-ray image could have been accessed by a specialist and the patient’s GP at any time. Why haven’t we implemented such a service yet?

The most obvious reason involves having the political will to allocate funding when there are competing needs within the health sector. The other reason is that it would be a lot easier to do if all health providers were linked by a proper broadband network. In fact if there ever was a compelling case for extending the reach of high speed networks then this it. There is one other hurdle. District Health Boards make independent funding decisions. Getting unanimity across the country on any such project would be almost impossible. But if anyone can help form a consensus in the health community, it is Minister Cunliffe. The only question then is whether or not he will get the opportunity to do so after the election result.

Entrepreneur’s Epilogue

It has been a busy week, with many hours logged slaving over a hot laptop. One of the first tasks was to set up our office server with a suite of nifty collaborative tools – essential because some of the team are offshore based. We also checked in with our very helpful accountant friends at Openside CA, we plugged away at the business plan, protected our trademark and completed the incorporation process. By the way, my co-founders assure me that despite the slightly clunky interface, the Companies Office website is light years ahead of anything in Europe where bits of paper and numerous trips to several different offices are required. They should know what they are talking about because they write application interface logic in their sleep. But more about that later…

500 Pound Gorilla with a Long Tail

Logan McMillan’s cheekily named Gorilla Pictures has scored a publicity coup by posting a YouTube clip taken from their latest project, a splatter movie about zombies taking over the world.

What is remarkable about this episode is that McMillan received an offer to fund the movie whilst he was already part way through shooting it. It also demonstrates the disintermediating power of the Internet and supports Chris Anderson’s long tail hypothesis – if you can focus enough eyeballs on your product niche, eventually somebody will buy it.

McMillan’s extraordinary success does have a negative corollary however. Because the Internet aggregates vast numbers of users, it also enables other less noble business models. Nobody really believes that Google ads will make them rich and spammers continue to plague us because they know that 5 guys out of every million actually will respond to their viagara sales promotion.

Zombie movies are not really my thing, but I applaud Logan McMillan’s initiative and I hope the screening at Cannes and subsequent release goes well.

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Epilogue – The New Start-Up

I’m particularly interested in the success story mentioned above because a bunch of us are currently in the throes of launching ourselves into the unknown with a new and rather exciting venture. Our project is also very much about leveraging creativity and knowledge and having some fun along the way. Web-based marketing will certainly form part of the mix because, apart from a diversity of other skills, we all share an interest in blogging.

I’m very realistic about the hard work that lies ahead, in fact it feels a little bit like we’ve grabbed a 500 pound gorilla of our own! But I’m also enjoying immensely the collegial atmosphere and the opportunity to develop my leadership skills and business knowledge. Keep those eyeballs tuned for progress reports.

Why Email Must Die

Talk about the death of email may still be a little premature. But the fact that some very high profile web entrepreneurs are even having this discussion is portentious.

When we think about the loss of productivity and the damage that has been wrought by bogus email and embedded nasties over the first fifteen or so years of existence of the Internet, it is surprising that nobody has entirely solved the problem of wayward emails. Even more surprising is that desktop software providers have retained email client applications within their offerings, because the writing is on the wall – email must die.

As long as email remains free of any cost, and networks are largely unfettered, there will always be some idiot quite happy to steal your address and use it as a proxy to send out a million ads for pharmaceuticals. The Internet has always been a double-edged sword in this respect. It offers huge potential to scale a business for both good and bad purposes.

So what are the alternatives to email and are they safe? When I set up my consulting business in 2002 I found an ISP that could both host my website and offer me a webmail service – great. I’ve never used Outlook since. What was not so great was that during 2007 my ISP had a major server meltdown and somehow managed to lose 5 years worth of my email. Had they not heard of system back-ups? Fortunately I have heard of backing up and had long sent all my active mail and a list of email addresses to a separate account. So the loss was minimal, but the nuisance factor was considerable.

That episode got me thinking about how trustworthy all sorts of hosted applications and automated services really are. Banking, sharemarket, any e-commerce or eftpos transaction, even this blogsite…we trust that the provider has sufficient resource in place to deal with our precious data. But how can we really be sure? When we consider where email is likely to go in the future, there is still some cause for concern.

Some young people don’t even use regular email any more. Why would you do so when you can create your own social network online and be specific about who you choose to invite aboard? It is surely only a matter of time before someone builds a really useful networking site targetted at enterprise. Gmail is great and I have to admit I have yet to see a single piece of spam through my Gmail account. So why can’t I have a secure, low cost Gmail style hosted email system that only lets in only those who I invite but which can be personalised to fit my business brand?

 Bookhabit Authors Competition – Last Orders Please

Speaking of leveraging the Internet for good purposes, we are entering the last weeks of the Bookhabit.com authors competition. Know any budding authors out there? Have them upload their unpublished work onto the site in time for a crack at $5,000 in prize money. Popular selections from each week go forward to the final panel. For readers there are now over two hundred e-books to choose from, selling for as little as $2.50. Bookhabit is further evidence of how the Internet is continuing to change the way we live our lives and that a sensible idea well executed is worth a great deal indeed. Enjoy!

Pie in the Sky Venture for High Flyers

Just a short (but mildly humourous) post this week as I have happily found myself with a couple of interesting projects on my plate plus with school holidays underway my son and I are escaping for a few days to the (rainy, damnit!) north. So time is at somewhat of a premium.

 crane.jpg

When I first stumbled across Dinner in the Sky I thought it must surely be an April Fool’s prank. But as far as I can tell it really is a legitimate business. For an obscene amount of money it seems you can treat your friends to a dinner party suspended by a crane 50m above the ground. Not for those of nervous disposition, but what a buzz!

Up to 22 guests can be seated on a giant platform which is then raised by a crane. A small group of waiters and cooks stand in the middle of the platform and serve the aerial diners as the crane slowly rotates. Two Belgian entrepreneurs dreamed up the concept and have run events in Brussels, Paris, London and Dubai. They even have video clips on their website to prove it. What they don’t explain is what happens if somebody needs to heed the call of nature during the dinner party. Presumably, heavy drinking is discouraged.

Rumour has it that a franchisee from New Zealand has approached the company for rights to operate the business. That got me thinking about all the possibilities. Perhaps we could set up the operation in front of the NZX building on the Wellington waterfront and allow listed companies to hold airborne board meetings? Shareholders could be charged a small fee to sit and manipulate the crane controls, reflecting their approval or otherwise of board decisions. Better yet, government Cabinet meetings could be held aloft. That would certainly focus Ministers’ attention.

It all sounds rather like a Bransonian promotional gimmick, but it shows there is no end to entrepreneurial creativity. Dinner in the Sky contains elements of performance and reminds us once again that the arts and business are not as separate as we sometimes might think.

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Exporting to Germany Workshop – Tues May 6th

Speaking of entrepreneurial Europeans – my mate Oliver Heringhaus from Triple-E is running an exporting workshop in Wellington on May 6th, in conjunction with NZ Trade & Enterprise, for those looking at Germany as an export destination. Germany is a market of over 82 million affluent consumers. Oliver’s e-marketing background and native understanding of his homeland market make him an ideal speaker.

Silicon Welly to Host Technology Mentor Glitterati

In an outstanding acknowledgement of Wellington’s status as the centre of New Zealand’s digital innovation universe the city has secured a global X|Media|Lab event to be held at Te Papa May 30th to June 1st. The theme is “Commercialising Ideas” and comprises a one day conference followed by an intensive weekend workshop involving technology venture mentors and successful entrepreneurs. You heard it here first!

The event is geared to helping technology firms develop their ideas to a point where they can increase the chances of receiving funding and getting to market successfully. Online gaming, mobile content, animation and anything Web 2.0 are focus areas for this event. The mentors include Chris Deering (former president Sony Entertainment), Marcelino Ford-Livene (GM Interactive Content – Intel Digital), Tom Duterme (Google) plus local heroes Sam Morgan and Rod Drury. The conference day alone will bring a wealth of knowledge – but imagine having a team like that on your advisory board!

The first X|Media|Lab event was held in Sydney in 2003. Aimed at spanning digital media and bring digital creatives and entrepreneurs together XML has grown to encompass multiple locations around the globe. The event has some serious backing from global partners and is supported by NZ Trade & Enterprise, so the entry cost is minimal (only $99 for individuals). Our research at GeniusNet showed that the most creative ideas spring from where different communities overlap and we have long felt that Wellington needed such an event.

Everything you need to know is on the X|Media|Lab website. But note that although the conference day is open to the public, the weekend workshop is only by invitation from the selection panel. If you require assistance preparing for the selection process and to be introduced to the organiser directly, please contact GeniusNet as early as possible.