Creative Destruction

Creative Destruction - Why are razor blades so expensive?

2009-07-01T08:04:00.005+01:00

Creative destruction suggests that if someone comes up with an idea that is a better solution it will "destroy" the existing solution in the market.

The market leader Gillette is owned by Procter and Gamble, and is currently being investigated by the Office of Fair Trading as their blades can be produced for 5p and are sold for up to £2.43 each. http://www.dailymail.co.uk/news/article-1191456/Sharp-practice-The-razor-heads-cost-just-5p-make-sell-2-43-each.html Gillette have a reputed 72% of the world market (2003) worth

Whilst in Sainsbury's the other day I noticed this and also noticed the cheaper alternative made for Sainsbury's and gave them a try. Whilst cheaper the result was both painful and ineffective.

This is the sort of situation that spawns "men in sheds" inventing a better solution. Gillette allegedly spent £680m developing the Mach3 blade. Surely it is possible to develop for cheaper in your shed.

http://www.prdpartnership.com/giraffeinmyshed/ explores the idea that many inventors or would be entrepreneurs get locked into a particular idea. In this situation we would call this an elephant. Why? Well there were a few books written about large companies and elephants a while ago (e.g. Teaching elephants to dance - Rosabeth Kanter), where the elephant was a large lumbering giant. Simply put - if you invent an "elephant" type product or service you should think very carefully before doing battle with the likes of Gillette and Procter and Gamble.

Our simple advice is to think more about Giraffes! Think a little bit differently, and possibly not to go for the centre stage wide part of the market, but for a little bit, possibly that others are not interested in, or cannot make work. Why? Simple risk reduction. Yes your profits and revenue get reigned in - but unless you are that "special" person that Schumpeter said was necessary to harness all the resources necessary to make Creative Destruction happen - then your chances of success may be small.

Consider the razor blades. Why is it that Sainsbury's have a blade that doesn't work very well?

Their R+D team don't shave
They don't want to have repeat customers
A very lazy buying team
They cannot get round the Gillette patent
Proctor and Gamble are bigger than Sainsbury's

Possibly the last 2 have more to do with reality than the first 3.

The first problem therefore is one of protection. The razor blade market is one of the most heavily patented, with over 1000 patents existing. Gillette filled over 100 patents for the Mach3 system. Procter and Gamble also have lawyers. They will protect their territory be it patent, trademark, or even slogan "shave yourself" or "the best a man can get".

Creative destruction challenge: Can you produce something that not only doesn't infringe on an existing patent, but one that is not going to attract attention from the likes of Proctor and Gamble's lawyers. Can you afford to fight them?

The second problem is one of market power. The market was valued at $7.5b in 2003 and 72% of that is worth having. Even if you get round the lawyers - where are going to sell your product?

Creative Destruction challenge - Can you get it on the shelves at Sainsbury's? It would be nice if it was in an obvious place with attention drawn to your branding.

The third problem lies with the consumer. Gillette advertise heavily. when they introduced the Mach3 they spent between $100m and $300m on the launch. In addition there is the business model that Gillette invented back in the very early 20th century of giving the razors away, but making profit on the blades. The razors are propriety, and so will only work with the right blades, protected by patent. This combination gives rise to strong consumer loyalty, and Gillette have had a 10 year head start on the Mach3 and over 100 years head start since they started.

Creative Destruction challenge - how do you get the consumer to change their habits and buy into your system? What resources will you need?

Whilst in a fit of frustration in Sainsbury's the market is in desperate need of competition, there isn't a good cost effective shaving solution out there at the moment, solving the problem is not simply coming up with a new razor. There are many other challenges, each of which requires resources and possibly experience. Whilst there might be a James Dyson out there somewhere who can take on the likes of Hoover and win, it is a daunting and expensive challenge.

Why are razor blades so expensive?

Gillette would say that they have spent a lot of money on advertising and on R+D. In addition they do have a few lawyers. The key fact is that the market is uncompetitive and sewn up by Gillette. We all want to make a little profit, hats off to them for achieving it over such a long time period.

In terms of Creative Destruction, Schumpeter was doing his research in the 1930's and would have been studying companies like Gillette. Born in 1855, King Camp Gillette was standing before his mirror, ready to shave, when he realized that the Star razor in his hand was useless. "It was not only dull," Gillette would write later, according to his biographer Tim Dowling, "but it was beyond the point of successful stropping and it needed honing. As I stood there with the razor in my hand, my eyes resting on it as lightly as a bird settling down on its nest, the Gillette razor was born."

It took him five years to find someone who could provide a machine that would automatically hone thin sheets of steel to the required sharpness, and at first the blades sold for less than they cost to make. Undaunted, Gillette forged ahead and eventually had a second epiphany: He would give away a razor and sell the blades. By 1910 Gillette dominated the razor business, and its founder was a millionaire.

Honest, ethics and marketing

2009-06-26T10:06:00.004+01:00

Honesty and ethics are important! One of the issues around creative destruction is the ability of a company to be able to educate the customer to a new offering. If you are an inventor starting off - how would you interpret this? On one hand it is a mistake to love your product too much, and better to focus on benefits to the consumer. In doing that how important is it for your business to behave in an honest and ethical way?

I am sure you cannot forget former directors of the Daily Telegraph taking $32m in unauthorised payments. Alternatively Conrad Black, the then CEO spending $20,000 of shareholders money on a surprise party for his wife. Whislt Black is in jail the Daily Telegraph flourishes on a diet of MP's expenses, ethics and transparency.

The tiny island of Sark had 150 years of feudal rule. The now owners of the Daily Telegraph had been investing £5m a year into the island, they live in a neighbouring castle. In Sark's first democratic elections the people of Sark failed to the Barclay Brother's estate manager and immediately all the investment stopped. I am sure this would not have been a return to feudal rule with the Lord's of the castle employing a sheriff to carry out their duties.......

Links between the Barclays Brother's and UKIP - and an underlying agenda to the MP expenses agenda has been made. Interestingly their response was to get lawyers to make the hosts of the blog where the allegation had been made simply to take it down. (and they did) – So much for transparency and open public debate.

Seemingly the debate is more about power – and this is a lesson for marketing and those businesses that think that honesty and ethics are the way forward.

“Avarice and usury and precaution must be our gods for a little longer still. For only they can lead us out of the tunnel of economic necessity into daylight.” Keynes 1930

The above quote is still apt. Translated into more palatable business language – give the customer what they want without ignoring your need for income (avarice or greed) – make sure you get in a good position to do this (yes, well run systems count, but so does influence) – and don't take unnecessary risks.

As with other successful business men the Barclay Brothers have amassed a fortune and may well have worked out that influence matters as well as giving the customer the stories that they want to hear. Taking down an annoying blog is about risk management.

On a much small note it is my birthday today and I received a “handmade wooden clock” in the shape of a guitar – and very nice it is too. It reminded me of pork sausages. Pork sausages must contain 42% pork meat, of which 30% can be fat and 25% connective tissue. The clock was made out of plywood. Would an ethical marketeer say “handmade plywood clock”? If they did would it result in more or less sales? As I stated earlier – the clock is very nice and fit for purpose.

Creative Destruction - getting elected

2009-06-05T16:49:00.002+01:00

"Free bananas for school children" is a very different election strategy - and is it came from H'Angus the Monkey - it was an obvious strategy.

3 elections later Stuart Drummond AKA H'Angus the Monkey has been elected for a third term as mayor of Hartlepool.

In the european elections in the UK Labour lost 5 seats - in itself not loads - but they seem to be in a bit of a mess. Unfortunately their votes seem to have been distributed more to the BNP than to a mainstream party. This suggests that there was no real alternative.

With respect to Europe whether we should be a member or not is a national debate - but I am assuming that as members we should get our value for money. The UK did get £5.9bn in funding from the EU last year - and organisations need some help in knowing how to access and use this effectively.

We have just elected 25 Conservative MEP's who Hague and Cameron may direct towards leaving the EPP and finding a more skeptic set of friends. In so doing they are not part of any majority or even significant faction within the EU. How can they represent our best interests as members? We have also elected 13 UKIP members - who do not want to be members. OK its a protest vote - but they cannot disolve the agreement of the EU membership - so what are they going to do?

We have also elected 2 BNP members. Are they going to seek to represent the interests of the people they have elected - other than to say they want to leave the EU (and stop immigration).

This leaves the UK in a funny situation - being a member of a political Union of 736 MEP's - with 30 out of 69 elected representatives being elected to withdraw or reduce the way in which the UK is a member - and not to make the most of the membership whilst we are members.

If there was something that the EU did that was positive - is it likely that any of these people would publicise it within their constituancies or help gain the best use from the funds.

In the short term there aeems to be a democratic problem. We have elected 30 out 69 MEP's who cannot influence what goes in within the "club" - they are effectively 1 of 736. It is not their decision as to whether we stay or leave. They do not believe in the benefits - so what are they doing?

"A vote for UKIP is a vote to say ‘No’ loudly and clearly." OK - this has been done - twice - in 2004 and 2009. There are now 13 MEP's who are being paid £64,000 per year and then their expenses on top (Nigel Farage has estimated that a cost of each MEP is about £1m over their elected term - so much for moats and duck houses)

What has this got to do with creative destruction?

Everyone in the UK employs an MP, a Councilor (at least 1), and an MEP as consultants to help decide how best to spend a decent chunk of our income. (Official sources suggest 36.9 - 39 percent, whereas government spending may be as much as 47 percent of our incomes). This is not an inconsiderable sum of money. The choice seems to be - vote Tory - and we may cut taxes for some - or vote Labour - and we will increase taxes for everyone.

We seem to need some ideas - and I mean big ideas - and someone to carry them through. Politics like any other market has relied on selling ideas to consumers - and supporting with a credible list of people. In the past this has been around economics, social justice, or even law and order. It is rarely about the political system itself - there have been moves to reform the lords, or how we integrate with Europe - but it is a while since Guy Fawkes had a go.

Wood pellets in Swindon

2009-06-01T08:58:00.004+01:00

The Energy to Work Ecademy has just taken over premesis in Cheney Manor in Swindon. They will provide a number of services where there has been an identified need from the local community. These will include:

Practical work based training for disabled people:

Training for installing wood pellet stoves and boilers

Offering disability aids

Offering temporary care based work in Swindon

Selling wood pellets

All services are offered as there are clear market gaps. Further information can be supplied as needed.

wood pelleting plant tender

2009-04-14T12:20:00.000+01:00

wood pelleting plant tender as advertised on OJEC

UK-Swindon: machine tools for working wood
Publication date: 18/03/2009
OJEU Ref: (09/S 53-76466/EN)
CONTRACT NOTICE
Supplies
SECTION I: CONTRACTING AUTHORITY
I.1) NAME, ADDRESSES AND CONTACT POINT(S): Swindon Borough Council, Enterprise Works, Units 1A & 1B, Gipsy Lane, Attn: Dave Rowland, UK-Swindon SN2 8DT. Tel. +44 1793616288. E-mail: enterpriseworks@swindon.gov.uk. Fax +44 1793542235.
Further information can be obtained at: As in above-mentioned contact point(s).
Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained at: As in above-mentioned contact point(s).
Tenders or requests to participate must be sent to: As in above-mentioned contact point(s).
I.2) TYPE OF THE CONTRACTING AUTHORITY AND MAIN ACTIVITY OR ACTIVITIES: Regional or local authority.
General public services.
The contracting authority is purchasing on behalf of other contracting authorities: no.
SECTION II: OBJECT OF THE CONTRACT
II.1) DESCRIPTION
II.1.1) Title attributed to the contract by the contracting authority: UK-Swindon: Energy2work.
II.1.2) Type of contract and location of works, place of delivery or of performance: Supplies.
Purchase.
Main place of delivery: Swindon.
NUTS code: UKK14.
II.1.5) Short description of the contract or purchase(s): Enterprise Works, which is part of Swindon Borough Council are looking for an organisation to supply a wood pelleting plant utilising new / used equipment. This procurement is limited to a maximum spend of 211 000 GBP for the purchase of the equipment, the delivery, installation, commissioning, operator training, technical advice and 1 years warranty and maintenance of the plant.
II.1.6) Common procurement vocabulary (CPV): 42642100, 50530000, 43810000.
II.1.8) Division into lots: No.
II.1.9) Variants will be accepted: Yes.
II.2) QUANTITY OR SCOPE OF THE CONTRACT
II.2.1) Total quantity or scope: Estimated value excluding VAT: 211 000 GBP.
II.2.2) Options: Yes.
Description of these options: There is a provision in the contract for the option to extend the maintenance agreement for 2 periods of 1 year each (1 + 1 for a maximum of 2 years).
II.3) DURATION OF THE CONTRACT OR TIME-LIMIT FOR COMPLETION: Duration in months: 12 (from the award of the contract).
SECTION III: LEGAL, ECONOMIC, FINANCIAL AND TECHNICAL INFORMATION
III.1) CONDITIONS RELATING TO THE CONTRACT
III.1.4) Other particular conditions to which the performance of the contract is subject: Yes.
Please refer to the Request (tender) for further information.
III.2) CONDITIONS FOR PARTICIPATION
III.2.1) Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers: Information and formalities necessary for evaluating if requirements are met: (a) is bankrupt or is being wound up, where his affairs are being administered by the court, where he has entered into an arrangement with creditors, where he has suspended business activities or is in any analogous situation arising from a similar procedure under national laws and regulations;
(b) is the subject of proceedings for a declaration of bankruptcy, for an order for compulsory winding up or administration by the court or of an arrangement with creditors or of any other similar proceedings under national laws and regulations;
(c) has been convicted by a judgment which has the force of res judicata in accordance with the legal provisions of the country of any offence concerning his professional conduct;
(d) has been guilty of grave professional misconduct proven by any means which the contracting authorities can demonstrate;
(e) has not fulfilled obligations relating to the payment of social security contributions in accordance with the legal provisions of the country in which he is established or with those of the country of the contracting authority;
(f) has not fulfilled obligations relating to the payment of taxes in accordance with the legal provisions of the country in which he is established or with those of the country of the contracting authority;
(g) is guilty of serious misrepresentation in supplying the information required under this Section or has not supplied such information;
(h) has been the subject of a conviction for participation in a criminal organisation, as defined in Article 2(1) of Council Joint Action 98/733/JHA;
(i) has been the subject of a conviction for corruption, as defined in Article 3 of the Council Act of 26.5.1972 and Article 3(1) of Council Joint Action 98/742/JHA3 respectively;
(j) has been the subject of a conviction for fraud within the meaning of Article 1 of the Convention relating to the protection of the financial interests of the European Communities;
(k) has been the subject of a conviction for money laundering, as defined in Article 1 of Council Directive 91/308/EEC of 10.6.1991 on prevention of the use of the financial system for the purpose of money laundering.
Please refer to the tender documents for further information.
III.2.2) Economic and financial capacity: Information and formalities necessary for evaluating if requirements are met: (a) appropriate statements from banks or, where appropriate, evidence of relevant professional risk indemnity insurance;
(b) the presentation of balance-sheets or extracts from the balance-sheets, where publication of the balance-sheet is required under the law of the country in which the economic operator is established;
(c) a statement of the undertaking's overall turnover and, where appropriate, of turnover in the area covered by the contract for a maximum of the last three financial years available, depending on the date on which the undertaking was set up or the economic operator started trading, as far as the information on these turnovers is available.
Please refer to the tender documents for further information.
Minimum level(s) of standards possibly required: Please refer to the tender documents for further information.
III.2.3) Technical capacity: Information and formalities necessary for evaluating if requirements are met: (c) an indication of the technicians or technical bodies involved, whether or not belonging directly to the economic operator's undertaking, especially those responsible for quality control and, in the case of public works contracts, those upon whom the contractor can call in order to carry out the work;
(d) a description of the technical facilities and measures used by the supplier or service provider for ensuring quality and the undertaking's study and research facilities;
(h) a statement of the average annual manpower of the service provider or contractor and the number of managerial staff for the last 3 years;
(i) a statement of the tools, plant or technical equipment available to the service provider or contractor for carrying out the contract;
(j) an indication of the proportion of the contract which the services provider intends possibly to subcontract;
Please refer to the tender documents for further information.
Please refer to the tender documents for further information.
Minimum level(s) of standards possibly required: Please refer to the tender documents for further information.
III.2.4) Reserved contracts: No.
III.3) CONDITIONS SPECIFIC TO SERVICES CONTRACTS
III.3.1) Execution of the service is reserved to a particular profession: No.
SECTION IV: PROCEDURE
IV.1) TYPE OF PROCEDURE
IV.1.1) Type of procedure: Open.
IV.2) AWARD CRITERIA
IV.2.1) Award criteria: The most economically advantageous tender in terms of the criteria stated below:
Price. Weighting: 60 %.
Method Statements for Maintenance cover. Weighting: 25 %.
Method Statements Machinery Training / Support. Weighting: 10 %.
Area utilised (Floor Sq.Mtr). Weighting: 5 %.
IV.2.2) An electronic auction will be used: No.
IV.3) ADMINISTRATIVE INFORMATION
IV.3.1) File reference number attributed by the contracting authority: energy2work 0109.
IV.3.3) Conditions for obtaining specifications and additional documents or descriptive document: Time limit for receipt of requests for documents or for accessing documents: 8.5.2009 - 12:00.
Payable documents: no.
IV.3.4) Time-limit for receipt of tenders or requests to participate: 11.5.2009 - 12:00.
IV.3.6) Language(s) in which tenders or requests to participate may be drawn up: English.
SECTION VI: COMPLEMENTARY INFORMATION
VI.3) ADDITIONAL INFORMATION: GO reference: GO 09031629/01.
VI.4) PROCEDURES FOR APPEAL
VI.4.1) Body responsible for appeal procedures: Body responsible for mediation procedures:
URL: www.swindon.gov.uk

Creative Destruction - Mobile Marketing part 2

2008-12-07T19:52:00.002Z

Mobile marketing to some may be just text or short codes.

Most phones today work with Java, and therefore it is possible and becoming more possible to read and send more complex information easily to a broad set of people.

For instance completing surveys on phones and sending results to a csv or data file has been possible for a while, but now has more uses as more people can use java on their phones.

Mobile tagging has been introduced to a wide scale audience and is being used on billboards and could be accepted on a wider scale as a way of grabbing information quickly. (Perhaps if you have a shopping account you could scan and shop with your phone) As with any technology there seem to be more than one standard.

The above image is in qr code and the one below is microsoft's effort!

So in theory you could go to an exhibition and take home all your information on the phone. The only problem as ever seems to be standards. How many people will try and read a code with the wrong reader?

You will be able to go straight from a tag to a survey - this could mean no filling out forms at the end of training sessions - just do it quickly on the phone via a tag. All results can be automatically calculated and deposited for the F-Controller to read at their leisure.

If this could be an end to filling in feedback forms - or not leaving them on the floor to be recycled - then that has to be a good thing! (Example of creative destruction? - would it be a meaningful impact on our lives?)

Grants and Subsidy for Small Businesses in Wiltshire

2008-12-07T19:37:00.003Z

You might find this information useful.

www.survivaltoolkit.co.uk

Gives even the smallest business (employing 1-50) in Wiltshire access to group workshops and support. For £135 you can attend 4 workshops (worth £1000) and claim an NVQ 3 or 4 Unit or an ILM unit at level 3. More importantly you can focus on an improvement that you think will help survival or growth in 2009. The project is funded by the European Social fund and being run by GWE Business West, Train to Gain and delivered by the University fo Bath in Chippenham, Salisbury and Swindon.

LMAS

This is for Leadership and Management development. This could include developing strategies in marketing or operations, a business plan, mainly something useful that offers some new tools to use, and a plan that may help in 2009. The grant is £500 for free, then a further £500 that has matched funding. It is available for businesses with 5 to 250 Full time employees or equivalent. PRD Partnership are on the register to deliver this. We would be happy to help you claim this award and develop what would suit you best.

Creative Destruction - Mobile Marketing

2008-12-05T15:17:00.004Z

The mobile phone provides a communication channel for business to business and business to consumer marketing.

There are many different phones available, and so overcoming the different standards provided, so that you can reach any phone often limits the activity to either:

A phone call
A text
A simple wap site
A call to action from a short code

More complex activities such as customer relationship management (CRM), surveys, competitions, authentication of delivery, or payment can be done with Java, but the systems that do this have been “new” or emerging.

We worked with Bluetrail to identify opportunities in the field marketing market for standard mobile phones to undertake surveys and CRM activities a couple of years ago. Results show that using a mobile phone is cheaper than a bespoke solution, and more effective than using paper or IVR solutions. Data is captured easily and accurately and doesn't have to be typed in twice. Error rates are therefore very low. Because the Java application is “on the phone”, only small amounts of data need to be transferred, and therefore the user experience is a good one as they can freely enter in information without worrying about their signal on the move.

CRM solutions are still with your employees, even if many may be temporary. There is therefore the opportunity for training to overcome any difficulties. Solutions for consumers to receive a survey on their phone has been possible, but only recently seen as reliable, and therefore effective.

PRD Partnership is working with Alien Minds to identify groups of people that would most benefit from mobile content, whether it is a survey, competition, or even selecting what you want to purchase.

Most people have a mobile phone, and they very rarely let it get more than a few feet from them. Unlike e-mail, it is a less abused medium at the moment, and therefore a higher response rate is possible if the recipient is given a good experience.

During a recession some companies may be considering cutting their marketing budgets. Others may be considering how to be more targeted, to give a better customer experience, and therefore to be more effective with their budgets. We think that mobile marketing may replace a lot of paper and electronic marketing as it gets right to the customer.

For more information or a demonstration get in touch through the PRD enquiry page, or mail me.

Recession – What next?

2008-11-30T19:11:00.003Z

Many companies will be experiencing negative growth over the next 2 quarters. If not us, then we will know someone else. The recession seems to be global, with many countries experiencing reporting a downturn and AC-DC returned to the top of our charts in October. ("People crave something uncomplicated and dependable in a time of uncertainty, and rock music has never produced a band so uncomplicated and dependable as AC/DC." The Guardian)

Creative Destruction is the idea that innovation of processes or products or services will destroy the traditional way of doing things. This process can be wealth generating, but depending on where the innovation is, can also have a negative impact.

For many people the advent of the PC was wealth generating. Both in terms of something new to make, it also allowed us to do things differently. Work smarter, do things differently, and therefore earn more income. GSM and the mobile phone was also “life changing”, with the industries springing up around improved communication. The result was more jobs directly and indirectly.

Whilst the advent of the Internet has changed our lives, it is also a destroying influence. You can buy anything you want online. Traditional retail is losing jobs and this will change the makeup of our cities, towns, and retail parks in the future. Has the advent of the Internet meant more jobs or more wealth in the UK?

Its all Free!!!! One game that is being played out is the software that runs our PC's and phones, and can be so easily distributed over the Internet. For instance http://portableapps.com/ provides much of the software that you need to run a professional small business. It will all work from your memory stick. http://www.makeuseof.com/tag/portable-software-usb/ gives a list of 15 different types of software that will work from your memory stick, and by default will also work on many phones, and of course your PC. Whilst you can work smarter, its all free, and not wealth generating in a production or service sense. The apps are so well productized you don't even need a tame geek to make them work. So you can get a PC and memory stick on ebay for less than £100. You can put up a website with ecommerce using OS Commerce without paying huge amounts for webdevelopment – after all the logical end for software is that it will be free, and also useful, and therefore easily customizable.

Phones are also starting to become “open” so not only will you be able to put on lots of applications, but with wireless the potential for communication to be “free” also exists on a wide scale. http://wiki.openmoko.org/wiki/Main_Page explains how you can get an “unlocked” phone with free software, that can tap into wireless for free. Whilst this may improve our lives as consumers, it doesn't create production jobs. From a helicopter view, jobs will be lost. Google maps will work on my phone “its not GPS, but its pretty close”, places me 15 miles from my front door, not so good if I am lost on foot! So perhaps we have a way to go.

Protection debates will rage on. There are those that do not want to earn money from copyright, patent or trademark, but most talented businesses and people do. AC/DC refused to release their recent album on digital down load, and very quickly 400,000 downloads through torrents followed. This represented about a third of their sales. Mama Mia has grossed between $5-600k in the cinema. Distribution of DVD's for purchase and rental have been worth between 3-5 times as a multiple. My family were excited and I pre-purchased on Amazon for £11.99 back in the summer. It is £8 in Tesco, and freely available to download for free on hundreds of torrent sites. There are albums that I had on vinyl, tape, cd, and now digitally due to wear, misplacing, and digital remastering. How many times should we pay for copyright in the future? How do you achieve a balance?

Whilst the Internet is a wonderful tool, it may not directly lead to jobs. We will see further reduction in barriers to entry, increases in efficiency, but less jobs.

So whats ahead?

Genuinely talented individuals will always earn a good living. From entertainers to “clever” people in most walks of life, we will want to see the best or use the best available. The problem with the “best” is that it implies a few or not many people. “Public” goods and services are safe, but not life changing. At least “public” makes up over 40% (42.9% and rising) of this countries wealth at the moment. The bets on new beneficial areas of technology that “need” help are:

Intelligent Transport Systems Services
Low Impact Buildings
Assisted Living
Network Security
Low Carbon Vehicles

You can see why each has been chosen. There is a social benefit, economic benefits, and may well help the government in their programmes (and not freely available on the internet). If genuine progress is made in these areas then there is a chance of wealth generation. Ie more jobs.
What is certain is that for all the government intervention, growth will built on progress that generates wealth ie employs people. Governments are notorious in not predicting markets very well, and so it is equally likely that progress will come from somewhere else.

During a recession there is a temptation to cut costs, and if you are wasteful, then it may be a good idea to take stock. Cutting the marketing that gets you sales is possibly a bad thing to do, but M&S have done it. Training budgets are being cut all over the country at a time when individuals need to be more competitive. Holding your nerve is difficult for even the largest and most successful.

A phone call from a broker last week saying it was the best time to invest if I was liquid. The stock market has never been lower. My “no” came back quite quickly – an indication that I don't see the opportunities out there at the moment (although a railway company developing Intelligent transport systems might be undervalued at the moment.........). It is difficult to pick winners - who would have bet on AC-DC over the Kaiser chiefs or Mama Mia (Costing $52m) over the Dark Knight.

Somewhere there are companies considering new products and services and whether this is the best time to invest. Creative destruction suggests that innovation is not easy, and it takes a special sort of person or team to be able to innovate and then educate the market when everyone is blasting AC-DC out loud.

Notes:

Britain's Highway to Hell1973 - AC/DC form

Economy: Start of the oil crisis, which saw the price quadruple

1980 - AC/DC release breakthrough album Back In Black

Economy: Inflation in UK reaches 20% and unemployment nears 2 million

1990 - AC/DC score comeback with The Razor's Edge

Economy: Recession in UK imminent

2008: AC/DC top UK album chartsEconomy: Biggest world recession in decades looms

Special offer for Christmas

2008-11-05T13:51:00.003Z

The T12 was introduced into the market in Autumn of this year. It has had a number of rave reviews from gadget, electrical and Hifi mags and reviewers.

We introduced the Sonic Soundscape last year as the first production model containing Airsound. This gives:

Really clear sound

Surround sound from a single source

Making your listening even more enjoyable.

The T12 is larger, in black, louder, but the sound quality is still fantastic. It has been introduced onto the market for £249.99. On the Diasmusic website you will get BOTH the T12 and the Soundscape for £249.99, a fantastic bargain that cannot be beaten.

How do you give the customer what they want?

2008-09-11T22:15:00.004+01:00

When you build a new house (I am and the roof is on!) how do you maximise value?

School of thought 1 - make it look like a mansion on an estate agents and newspapers adverts

School of thought 2 - build a good house that people would want to live in

and the winner is...... number 1.

The assumption is that there is perfect information for number 2, and of course there isn't and the majority of people wont search for it.

When you build speakers or amplifiers how important is the sound?

In the majority of shops you cannot hear the sound, and what percentage of the public will actually be able to compare? You buy from reviews - and yes as above - the picture.

If you want to buy windows, how many people really know what to buy? Where to buy it from? Or if they go on Google they will find a lot of "3 best quote" sites from businesses run at home by someone that may or may not know anything about windows.

If you are doing research in a traditional way you might get 3 quotes. In today's world you may only get 1.

Quite simply creative destruction is an economic concept that suggests that the entrepreneur will innovate to make new things that will replace the old. Yes this happens, but how many missed opportunities are there?

The team that you work with has a tendency to want to make the best product to give extra value. Alternatively they could think about cost, sourcing from abroad. You can get locked into team discussions, and in doing so forget to look at how the market is behaving, how the customer is buying. In other words a survey says "we want the best product" or "we want the cheapest product", but reality is "we buy what we think we need".

What does this mean? Working with technologists, scientists, engineers, or inventors will get a different product that could be really useful. Many innovations will fail as they don't provide enough value. Others will fail as they cannot define why people will really appreciate their product or service (even if it could). This makes the ones that succeed quite special not because of the product or service, but because of the person or team. The fruits of their labour may have taken some time (not invented overnight), its not just about determination, or a willingness to inform others that the product is really good, but a pragmatism to give what people think they want. (yes this may conflict with what they actually want, and yes you may have to compromise what you offer)

Would you like to buy a battery that has a high failure rate? Possibly not... but if it looks like a good solution will you take a chance and miss a better option?

So how do you give the customers what they want?

Consider the problems that they need to solve, and solve the blindingly obvious ones first.

Where will they look for the product or service?
What will the product look like on the shelf?
Will they understand what your product or service does in the time you have their attention?
How much of a risk will they feel they are taking in giving you (or your brand) a chance?
Will they understand how to purchase?

.... and yes do they know why want it?

and as above - if they want to buy a house - they will want to sell. Do you buy better sound, or do you want to enjoy a new sound system? I have to buy windows, its not out of choice.

Two-factor authentication

2008-06-25T19:04:00.003+01:00

"An authentication factor is a piece of information and process used to authenticate or verify a person's identity for security purposes. Two-factor authentication (T-FA) is a system wherein two different factors are used to authenticate. Using two factors as opposed to one delivers a higher level of authentication assurance. Using more than one factor is sometimes called strong authentication." Wikipedia

The most common form of authentication is your bank card ie Chip and Pin. Your bank card contains a chip that identifies you when you put it into a card reader, and your pin authenticates you.
A Mobiu contains the same sort of chip as a bank card or a mobile phone. No surprise as the Mobiu technology was developed by Vodafone. Using your mouse you authenticate using a pin number to say "its me!". This gives you secure access to hosted space.

The Mobiu comes with office software. As you can use the Mobiu to use the software, your hosted space for files, and as above the authentication leaves no evidence for capturing keystokes (often refered to as keylogging or keystroke logging).

This means you have a secure "PC on a Stick", where ever you go.

As an aside I asked someone yesterday if they were interested in the technology - they responded that they had lost 2 laptops and now never travelled with one.

The Mobiu will be available from mid July. PRD Partnership are busy helping The Key Revolution develop the education sector. If you would like to be involved in a trial, get more information, or be one of the first to get one, do get in touch. We have developed some interesting ideas as to how to make the best use of the Mobiu in education. We can also explain the benefits to lecturers, teachers, administrators, or students (another blog on its way.....)

Interest is becoming widespread:

Gadget Lets You Take The Office Anywhere
Updated:00:46, Wednesday June 25, 2008
The ability to access your work from anywhere has taken another step with the launch of a new device.

Mobiu's USB device
The Mobiu is a USB storage device which uses technology patented by telecoms giant Vodafone.
Plugging the device into a computer brings up a simple interface which allows people to access files on a remote server using pre-installed software.
This means that when the device is removed from a computer, no trace of that activity is left.
The Mobiu has a SIM card inside it, and if it is lost or stolen, it can be deactived straight away.
Adrian Burholt, CEO of the Key Revolution, which is behind Mobiu, said that the device responded to customer need.
He told Sky News Online: "What worries people is concerns over their data.

"We found that people like the idea of something in their pocket that reassures them that their data is safe and no-one else can get their hands on it."
He said that ease of use was also very important for people, adding: "We've designed it so anyone can pick it up and use it."
Mobiu enters an increasingly crowded marketplace for remote working, and with services such as Microsoft's Live Mesh on the horizon, which allows computers to synchronise and share information across the internet.
Stuart Miles of Pocket Lint said that the Mobiu launch was similar to U3 sticks, which came on the market last year.
These USB devices also carry data and software, though do not have the same SIM-card style security.
He told Sky News Online: "A U3 drive is like your desktop being carried around."

Do you need the extra security of a Mobiu?

2008-06-19T11:37:00.003+01:00

Maybe your computer, your extranet, and your laptop is already protected by the need to type in a username and password. What are the added benefits of a Mobiu?

The chances are your present username and password do not offer very robust protection. When you turn your computer on, the log-in screen already shows your username - all a hacker needs to do is guess your password and they can access your computer. How guess-proof is your password?

Indeed, maybe they don't even need that. Do you have a 'Guest' account on your computer? Maybe there is a default guest account that allows anyone to access your computer without a password. Or maybe the Administrator account also has a vulnerable password. Or perhaps there is another user account on the system which has no password. Or perhaps you have shared drives that could be accessed by connecting your computer to a second computer.

Even if none of these very basic vulnerabilities are present, a motivated hacker can probably break through the default Windows security and access the data on your hard drive. There are even various 'hacker' utilities that can reset the Administrator password on a computer, giving the person who used the utility complete access to the computer's contents. A skilled hacker can get into your password protected computer in less than 15 seconds.

If your computer is fixed in place, in your office or at home, your vulnerability to data or identity theft from a stranger is low, because a thief first must break in to your home or office. If you connect to the internet via a broadband connection you will probably be protected by a firewall. Whilst you are connected you are vunerable. If you use hosted space such as BT Workspace, your access is only protected by a username and password. If you travel with a laptop, your vulnerability goes sky-high, because your laptop is much more vulnerable to being stolen.
In the USA Laptop thefts are sharply increasing. 53% more laptops were stolen in 2001 than in 2000. In 2002, this number is believed to have increased by at least a further 15%, up to a staggering 620,000 (more than one every minute). In the Uk some 68 MoD laptops had been stolen in 2007, 66 in 2006, 40 in 2005 and 173 in 2004.

http://software.silicon.com/security/0,39024655,39166970,00.htm
“Total number of UK laptop thefts reported in 2006**

The top five regions by police force:

1. Metropolitan Police (6,576)
2. West Yorkshire (2,402)
3. Thames Valley (2,149)
4. Leicestershire (1,219)
5. Bedfordshire (938)
** In our enquiry we deliberately discounted laptops stolen from homes or offices to get a clearer picture of threat posed specifically by the greater mobility of laptops compared to desktop computers.”

In the UK the Nationwide were fined £1m in 2007 for the data that was exposed on a laptop that was stolen.

In one test case, 70 of 100 lost laptops proved to have vulnerable data. In another, one in three password protected computers were quickly defeated.

Plainly, it is prudent to secure your laptop as robustly as possible.

SIM assured protection - what you get

When you buy a Mobiu, you get a USB Mobiu device. The device is protected by SIM assured technology, you might recognise this as “chip and pin”. If you take out the “chip”, you cannot use the key and your data is safe. You can disable the key remotely by ringing the helpline. Your data is safe.

You can order a replacement key and you can access your data.

Originally the concept was developed within Vodafone, and now by the Key Revolution Ltd. In addition to the security benefits each Mobiu comes with:

Softmaker office suite, a word processor, spreadsheet and presentation package that will work with your Microsoft or Open Office files. This loads from the stick, and will not leave any imprint of the file on the PC. It is as though you were never there. This means that you can load sensitive documents onto other companies, or other people's PC's and they wont get a copy. For further details see http://www.softmaker.com/english/ofp_en.htm

A browser, the Firefox browser works from the stick, so again, your browsing is secure and hidden from others. Ideal for visiting consultants.

Shared space, you can share files with trusted users who also have a Mobiu. This is ideal for organisations that collaborate over a wide geographic area, or make good use of home working. This gives you added document control. You will only need one version of the same file, essential when working on projects .There is no need for sending documents via e-mail. Indeed some larger documents such as graphics, photographs, databases etc can be difficult and time consuming to send. E-mail is not the most secure way to send sensitive data, using the Mobiu is an attractive alternative.

Mobiu will be launched in mid July 2008 and has a programme of developments planned out.
The Mobiu is compatible with all PC systems that have a USB and either Windows 2000/2003, Windows XP. News on Vista, Mac and Linux is expected in the next few weeks.

Installation – The good news is that there is no installation. Everything will work straight from the stick. On your first use you will probably want to back up your desktop and key files. This may take a few minutes. Once completed each update is done on a file by file basis.
Use on Multiple Computers – your files will be accessible to you on any computer, and safely. The Mobiu is portable, felxible and easy to use.

For multi-user, multi-computer, network environments, Mobiu can be configured to be a safe alternative to memory keys, home access portals, or extranets. The Network Administrator can be given a 'master key' and the ability to create keys set up for specific user groups or a user who has lost/broken his key. Because these duplicate keys can be instantly created on site, the downtime from a lost/damaged key is reduced to almost zero.

Where to Buy

Mobiu will be widely available from mid July 2008 onwards. You might even like to buy from us!

Opportunity to undertake a trial

We are keen to undertake user trials, particularly in the Education sector. So if you are part of a University, College or School, do get in touch. We can pass on some price benefits for being a test site. Your feedback will help develop the software, and therefore you will have the chance to shape the Mobiu to your needs.

Creative Destruction - Why do new products wear you out?

2008-06-11T11:47:00.008+01:00

Columbus didn't find America, but he was the first “notable” person to do so and seek notoriety for it. Today we would say he had a “route to market”.

Leibson's Law: It takes 10 years for any disruptive technology to become pervasive in the design community. (http://www.edn.com/blog/980000298/post/710019871.html)

With Airsound and the Sonic Soundscape we have found that many people like listening, we get some rave reviews, but there is a lot of resistance. From the "Hi Fi buff" that doesn't believe its possible (and has their own listening chair so they can be the only one in the room that can hear the stereo properly), to the manufacturer that hopes that there wont be a disruptive change in the market.

As humans we don't like being wrong. If you consider yourself an expert and have invested with thought and your pocket you buy in emotionally to a solution. It is then difficult to change your mind. A reviewer turned up to a Soundscape presentations with the intention to write “it doesn't work”. At the end of the presentation he suggested that he wouldn't write the review – all well and good, but he was not prepared to be positive.

We work to identify the “innovators”, the people who will buy. They are not often located where you think they will be. In the last couple of weeks we have been preparing to take on a new product called Mobiu, a PC on a stick. One of its key benefits is that it has a SIM card (Chip and pin). This is the only way of accessing online hosted space. The first thing we do is to get feedback from different people. Its always a bit of fun finding out “who wants one.” Innovators change with each project as buying habits and emotions are different for each product you purchase. Doing this helps identify potential barriers.

In today's IT security market there are many types of encryption that are used to make online security safe but accessible. I don't for instance have online bank access as I can't remember the long passwords and don't want to put them on a pin board. The ultimate safety is not to have access. With the Mobiu there is no access, unless you have the SIM card. In asking the first few IT specialists the first feedback was “.... and what encryption is being used?.... if it hasn't got XYZ encryption it wont work”. This may help us identify the “special Hi Fi buff” who is locked into the solution of their choice.

New products can wear you out if you approach everyone in the market all at once. You will meet a lot of Hi Fi buffs or complete disinterest when searching for your innovators.

Peter Gabriel and B&W have recently launched a high quality download club. One of the major papers reviewed saying that they have never paid more than £250 for speakers and couldn't tell if it was high quality or not – complete disinterest!

Online bloggers are saying that they want this service – but from a larger company. Clearly Peter Gabriel and B&W, despite being well respected are not large companies. Do they have enough notoriety to be Christopher Columbus?

Creative Destruction - Its bin fun

2008-04-28T08:28:00.003+01:00

Creative Destruction is about big, life changing ideas that need a special sort of entrepreneur to drive something new through. The classic entrepreneur is an opportunity spotter - very different.

For instance was Ruben Rausing of Tetra Pak spotting an opportunity or did the company really make a difference to our lives? He and the company have certainly been very successful.

If you went back 50 or so years and met Ruben for the first time would you have thought that the packaging concept was "another idea" or someting that was going to change the industry? Spotting the new ideas is sometimes very difficult.

One of the ideas we have been researching is called "Carbin", and it does what it says - a handy bin for the car. There has been a fantastic response from the few that have seen it, and there seem to be 2 key markets. The promotional market - it is easy to print on, very visible in the car, and the Car accessory market. (We think its much better than fluffy dice!)

If you are interested in more details, do let us know.

Creative Destruction: Endorsements

2007-12-18T11:42:00.000Z

It is always nice when you get an endorsement from someone who is well known and just happens to understand music.

Hello Hubert,

Thanks again for taking the time to demo your Airsound system the other day.

I'm e-mailing you to tell you that I couldn't be more pleased with it. I think you've pulled off something quite remarkable with it -- you might even be a genius! I've been playing a lot of my old favourite CDs and music DVDs and have been pleasantly surprised every time. The sound is warm, well balanced and beautifully detailed. If you stuck it a cherry or walnut cabinet and sold it for £1000 pounds no one would argue.

I look forward to hearing the next generation which is currently at the prototype stage and will certainly be looking to buy one of those too.

The next time I'm in the area I'll drop off a Suzanne Vega CD for you.

In the meantime, congratulations and keep up the good work. And feel free to use any of this e-mail that you wish as an endorsement for your product on you website or wherever.

Very best wishes

Bruce

Bruce Thomas - fabulous bass player - with the Attractions, and has also played with many other s - including Al Stewart, Paul Rodgers, Steve Howe, Wings, Paul McCartney, Nic Lowe, Pretenders, Madness, Billy Bragg, and Suzanne Vega
http://www.geocities.com/SunsetStrip/Diner/2674/thomas_bruce_a.htm

For further information about the Airsound system - the Sonic Soundscape - please see Dias Music

If you are interested - contact me for a special offer!

Creative Destruction: Due Diligence – how much do you do?

2007-12-06T16:04:00.000Z

The creative production process relies on an entrepreneur taking something new or innovative to the market place and making a real difference to our lives.

Previous articles have been written about different markets where there will be a number of alternative “new” options, where there will eventually emerge one or two serious contenders. For instance in the heating market and wood pellets, the question has not been answered yet.

Part of the process of market making involves making relationships, and in commerce this involves the transfer of goods and services and fees via an agreement.

The question of due diligence often arises, or the slightly murkier cousin “trust me!”. Undertaking research on someone or a company can be uncomfortable, could be costly, time consuming and ultimately unnecessary. Not undertaking any research can be very costly in some situations.

Step 1 The basic research

Make sure the company or the individual is traceable, and do look for some history. For instance even solicitors or former solicitors can have a past.

Tip: http://www.lawgazette.co.uk/archive/view=query.law

gives you an online archive in the UK for news on Solicitors. This one is free, and there are others for other proffessions and trades.

Why?

Individuals often repeat their behaviour, although we have serial entrepreneurs, you can have serial offenders.

Step 2 The basic trust

You can also network, and network in someone else's network. Find out who they mix with, what other people say about them. Even better, you may find someone in your network that can speak for them. If you cannot, then think about whether you want to proceed to step 3.

Step 3 The more advanced trust

Should you experience each others product or service at a level where you can afford to loose, before you decide to scale.

All the above sounds good – but time consuming. The venture capitalists seem to do it quicker through making sure that the team stands up to scrutiny and that you deal at the right level. Unfortunately how you get from being on your own to being amongst a team of recognisable and highly talented people is not so obvious. Take some comfort from the fact that many VC investments don't work out. Many Hi-Tech teams split up. It does seem to be an iterative process, and you have to keep learning along the way.

Creative Destruction: Wood Pellet burners – the micro view

2007-10-30T18:37:00.001Z

I like metaphors! Particularly relevant for me is Sun Tzu, The Art of war, which is filled with metaphors for the small business. When studying I came across the idea that a green and verdant valley would be hotly contested. Rocky slopes would not, and local knowledge could be used for survival. If successful you can move down the hill side as you grow in strength. Wonderful!

Last week I was thinking about this, pellet burners, and keeping one eye on the traffic. I was stuck at 6:30 am along with numerous cars, behind a very slow moving vehicle. (Nothing unusual in Wiltshire). Perhaps this in itself is an extension of the above metaphor.

In the last article about wood pellet stoves the complaint was that there was no real impetus in the market. Whilst the conditions could be met for successful market development. There was not an obvious company pursuing a successful route to the consumer. Perhaps they have the wrong vehicle.

In a new market firms choose which path (or road) to follow. As a market maker you make the path. If you are a follower you have to follow – perhaps behind a very slow moving vehicle. Any customer that comes along may see the market maker first. If they do, and they don't like it they will move on. (I am a potential customer)

Any company stuck behind may lack the resources to overtake, or if they do they have to take a risk. I did notice one or two cars put everyone in danger as they tried to overtake when it was not possible. Shortly before Newbury I changed route.

What factors are there about the “vehicles” in the pellet stove or boiler market that means that the market is struggling at the moment?

Factor 1 Price

From a self interested perspective I would like an alternative to oil. This means that the installation and cost of the boiler should be similar to oil. I would like the fuel to be available and at a similar level or cheaper than oil.

Some of the small firms in the market are selling boilers that perhaps start at £5000, but rising to £12,000 once installation has been taken into consideration. This clearly targets a very small niche of wealthy and green consumers. It also seems to look to substitute green fuel units for its prices e.g. Geodesic, solar, wind, and has a long payback for the consumer. The fuel recommended is also expensive, with prices nearer to £300 per tonne than the £150 per tonne needed. Whilst this fuel is top quality it is also very expensive.

If you meet a market maker with the above prices, you may feel that this market is not for you, yet there are cheaper stoves available, and there is cheaper fuel.

Factor 2 Credibility

When you buy a pellet stove you want to feel confident about the company. You are investing a large amount of cash, this is a risk.

On closer inspection of the market, there are companies which when you do a bit of research, you find a dubious history. From legal disputes to financial irregularities.

Whilst not all companies fall into this category, it is very much a “buyer beware”.

Factor 3 Service

How quickly can I get a stove or boiler? Many companies don't hold stock. It therefore will take time to get your stove. Many of the companies represent small boiler producers. The stock may have to be made to order.

In relation to factor 2, who will service the boiler? If it is going to last 10 years or more, I want the stove or boiler supported.

Factor 4 Agents

There is much mystique on being an agent. Is it because it is a protected trade area? You will see the words “exclusive” banded around quite a lot. The inference is that the company has been chosen, or that they have purchased the license, or indeed that they are the best company with the best stove.

If you are researching do tap in the name of the stove you want, and then find out how many companies in the UK have an “exclusive agreement” for the same stove.

Alternatively you can check with the manufacturer to find out if there is an agreement (I have and was offered a direct offer bypassing the “agent”).

I have been “driving” as a consumer in looking for a wood pellet stove. I am yet to find a company driving the right path using the right vehicle. Ie that can offer the right price, is credible, has the right service, and has a proper agreement that is prepared to sell, install, and maintain a boiler in Wiltshire. In addition is the creative destruction bit. Can they get to me (and other consumers)?

Creative Destruction: No Special Listening chair needed

2007-10-30T17:15:00.000Z

The Sonic Soundscape is the first commercially available system using Airsound technology. Creative Destruction principles suggest that the difficulty of getting a new way of reproducing stereo accepted will be information.

If Airsound is indeed an “improvement” on the reproduction of stereo then this is indeed true. I have done numerous presentations over the last 10 months for the Sonic Soundscape, and indeed the inventor Ted Fletcher, has also shown off Airsound systems, including the Sonic Soundscape.

The main difficulty is getting people to listen. It is sound, and difficult to articulate the exact listening effect.

“No special listening chair needed”

The Sonic Soundscape provides better quality sound than similar priced speakers as it has:

1 Really clear sound
2 A “surround sound” or spatial element giving depth and space

additional advantages also mean that you need little regard to:

3 the positioning of the speakers
4 where you or your friends and family sit or stand in relation to the speakers
5 how to conceal lots of wires
6 lower volumes needed to get desired sound

It could be ideal for music, home cinema, pc games or television

The Sonic Soundscape contains Airsound which resolves the performance constraints of conventional stereo.

Conventional stereo probably means you have 2 speakers. Unless you locate your speakers properly in your house and sit in the right position you will not hear true stereo sound. You may recognise this as distortion. This may get worse as you increase amplification. (Think about listening to music at a party with lots of people).

The Sonic Soundscape is the first commercially available Airsound system. It maintains an accurately balanced stereo sound-field in all listening positions in front of the speaker. This gives the REALLY CLEAR SOUND.

Conventional stereo is mixed, often 80/20 to give a balanced sound at the single listening point. This does not give a sense of depth. Surround Sound 5.1 or even 7.1 systems use 5 or 7 speakers to split the sound signals, and again, if you are in the middle of the speakers it is possible to get a sense of depth. Virtual Surround Sound (VSS) simulates true, multispeaker surround sound by processing 5.1 audio into two channels (left and right). The spatial algorithms in VSS systems are sometimes used to bounce signals off walls to approximate the effects of speakers to the sides and rear. They are more compact, easier to install and usually less expensive than 5.1 systems, with far less speaker-wire clutter. The absence of rear speakers and a subwoofer means less rumble in movie explosions (and less bottom on your CDs) and a smaller sweet spot where audio effects are most dramatic.

Airsound systems provide a large sweet spot in all places in front of the speaker. There is also far less speaker-wire clutter. You are in charge of your room, not your stereo. The “SURROUND SOUND” element is not simulated, it is real. It uses a principle called 'sum and difference' or ‘middle and side’ (M/S). By adding and subtracting the 'omni' or 'sum' signal with the 'difference' signal, it is possible to arrive at a conventional 'left' and 'right' audio signal. The M signal represents the majority of the signal content and is heard from the front speaker. While the S contains all the spatial information and comes out of the spatial speakers at the side. This produces a “Sonic hologram”. A picture of sound that does move as the sound changes.

The resultant really clear sound with a surround sound element has the bonus being able to locate the speakers almost anywhere. You can put them where you want. Your room is yours. You can sit where you want. No special listening chair needed.

A bit about Ted: Ted Fletcher is the inventor, one time assistant to Joe Meek whilst he was producing songs such as "Just Like Eddie" by Heinz. He then went on to design ranges of professional audio recording equipment firstly under the Joe Meek brand, and then under tfpro.

Creative Destruction – Carbon Neutral fuel – Wood Pellets

2007-10-22T11:39:00.000+01:00

Creative Destruction – Carbon Neutral fuel – Wood Pellets

Everyone uses fuel. Gas, oil, electricity or even wood.

In the UK institutions and organisations such as The Centre for Alternative Technology have been researching alternative fuels that take less resource and cause less harm to the environment for many years.

The uptake of alternatives has been slow despite government incentives such as grants, support in the form of government bodies, legislation, pressure on government organisations to lead the way, and interest from the media.

During 2007 there has been some increased uptake, particularly of solar power. Thoughts have also been that the wood pellet market would take off, but what statistics show is that this has been slow, particularly amongst consumers.

Factors that suggest that wood pellets will increase eventually are based on the fuel supply, prices of alternatives, and quality of solutions available.

There are a number of organisations who now produce consistently good quality wood pellets. There are a number more that are getting ready to enter the market. These tend to be established businesses, or organisations with support.

Gas and oil prices have increased, meaning that it is possible to also consider the wood pellet market to be cost efficient now and in the future as well as providing a sustainable and carbon neutral source of fuel.

As with any new or emerging market the question of creative destruction arises, and with it the “entrepreneur” and their role.

Having spent some time doing research this year I can make some observations.

There are one or two firms that are emerging with good solutions, good service, and now a growing income. This can give the consumer some confidence.

However there are many more that continue to provide either an “expensive” solution, or simply cannot supply the required service. This makes it difficult for the consumer to choose. (Hence if you are interested in a stove or a boiler it really is best to seek advice).

Therefore these early market entrants spoil (as in rugby) the market and its chances for growth.

At some stage there will be a shake out, larger players in the heating market may enter, but at the moment there is not enough “information” from the market – or the entrepreneurs. This could be:

It has to be simple for the consumer to purchase and install.
They must feel confident that the company can service the stoves in the future.
The fuel must be readily available.
The cost of installation and running should be comparable to at least oil and preferably gas.
The environmental benefits (and therefore the government induced benefits for installing in an organisation or home) need to be clear.

For some reason government bodies do provide accurate and sometimes good information. They don't however make the option attractive for the consumer. This is the job of the companies concerned.

For wood pellets to emerge as a real alternative one of the key things that is needed is a company (or companies) that are able to present this to the market place effectively. This may then see the creative destruction process in action, and the result would have an impact on society.

As mentioned above there are a couple of projects that I have been involved with in this space over the last year. I will write later this week and give some more “micro” examples.

Action Learning – Creative Destruction

2007-10-17T19:35:00.000+01:00

The question I am debating is that does the action learning process (or similar) have a real impact on innovation or those that are taking part in the innovation process?

Action Learning is a process where an individual presents an issue to a small group of people. The issue is explained, clarified, and then questioned. The questions provide challenge, with the aim of helping that individual to decide on some actions they want to take. Other members of the group can then present their issues, be challenged, and then decide on actions.

This process then repeats at regular intervals, with each person reporting back on the actions that they have taken. They are accountable to their peers.

I undertook facilitator training ie training facilitators to deliver action learning, last year. So I do have a commercial incentive as well as interest in the following ideas.

Creative destruction describes a process of economic cycles, where a “special” innovation that makes a difference to everyone's lives is brought to market by an entrepreneur. The Entrepreneur as defined by Schumpeter is different to the “opportunity spotter”:

The Opportunity Spotter

e.g. I noticed whilst in East Anglia that potatoes were being produced very cheaply compared to London. As a merchant I have spotted an opportunity, and if I can bring potatoes from East Anglia to London profitably or better than anyone else I can be an entrepreneur.

Schumpeter describes the entrepreneur as “special” in so far as they have to inform and persuade the market place that their solution is better than the market standard. In so doing they render the previous solution obsolete. This can lead to market regeneration, and with it a boom.

How does the process of creative destruction actually work?

From my perspective I see lots of people with good ideas. Sometimes they are quite “wacky” and sometimes fantastic, but equally sometimes the market may not be responsive to what they have to say. They may not have the right drive, skills or ambition to take the idea forward.

From a macro perspective there is survival of the fittest. Ideas, opportunities and entrepreneurs fail for different reasons, and at the end there may only be one or two winners. Schumpeter does not explain this process – he was an economist after all.

The question I am debating is that does the action learning process (or similar) have a real impact on innovation or those that take part in the innovation process?

Underpinning action learning is the ability of the individual to stay grounded in their decision making.

For those familiar with Transactional Analysis this would be staying in the adult space as a pose to the parent or child space. Once you go into the parental space you cease to listen to reason and tell others what you believe to be right. Decision making may be poor. In the child space you may “fantasise” about unrealistic opportunities or become very defensive when challenged. You may also find listening to feedback really difficult. It may cause you to become angry, to hide in a corner, or just not hear what another person says to you. This would suggest that being in the adult space is the only place to be.

For those familiar with a Johari window may understand that good relationships and taking action are underpinned by personal exposure to others of how you feel and want to take action on issues. Also self awareness is important. Have I got many blind spots, I have refereed to these as “holy Cows” or “Black Holes”.

Holy Cows are methods that we rely on, even in new environments. They may have served us well in the past. We therefore continue to use them in the future without reassessing.

Black Holes are places we are scared to go to, we may have been there before and failed. We may have seen others fail.

So in theory identifying and dealing with these holy cows and black holes can help us be more successful. It could help us become more able to deal with innovation. This requires a flexible person that can deal with change.

So Action Learning provides a supportive framework, challenges thinking, requires you to listen. It should help you identify one of your black holes, or a holy cow, and help you change your behaviour so that you can move on.

Surely this should be essential for any new business owner!!!! You often hear of successful entrepreneurs having failed first and learnt. Perhaps Action Learning can be a cheaper and less painful experience!

There must be some counter arguments.

Most of the arguments against will be around reality. Creative Destruction is a very difficult act. It requires big action, big conviction. Unrealistic? Or would others view it as unrealistic? If so would a group challenge fairly or unfairly the ambitions of a big thinker?

Does a big thinker with a serious project have to have some fantasy (or vision) to keep them going? At times it may be or seem unrealistic, especially to others. Would Action Learning help here?

Does a big thinker at times grit their teeth and tell others how its going to be? Time pressures, lack of understanding, or communication difficulties?

In other words should the person who is creating, informing, persuading always be well grounded? Should they always take feedback from others. Do they need to adapt their behaviour? Does the support of others add or take away?

My personal experience is that when I enter into a couple of hours (I may not admit to days) where I am very resistant to change I get stressed, perhaps angry, perhaps hide in the corner. It can be a negative experience, and when it happens I know I don't take positive action. It will be a holy cow, an ideal, that I don't want to change. It may be a place where I am scared of failure.

I probably waste valuable time dwelling on the issue rather than learning to move on.

For instance if you had £1m and a business opportunity for £1m how quickly would you spend the money? What is a sensible way to proceed (grounded). What is foolhardy? What is “cowardly”?

If you had been through an Action Learning programme would you spend the money more wisely? Or would you still loose it – just in a grounded way!

Sonic Soundscape testimonial

2007-10-03T09:40:00.000+01:00

Brilliant Stereo Sound That Follows You Across the Room

I’ve got a new best friend. It’s cool white, very discrete and called Dias. Thanks to Dias for the past week I’ve been listening to some great sounds while I work or unwind.

Brilliant sound is what Dias is about. I like a good stereo sound, over the years I’ve invested a lot in audio equipment and music CD ripping is my business now. But getting a good sound here, while I work, is difficult so I love the sound I get now. Yes, the quality is high – very high – but that’s not the main thing. Thanks to Dias I get a great stereo sound wherever I am in the office.

Incredibly Dias stereo sound follows you round the room.

There is much more! To read on please see Jeff's Blog

http://podserve.blogspot.com/

Jeff has enjoyed the sound so much he has offered to demonstrate the Sonic Soundscape in the SE of London and surrounding area. For more information please see http://www.diasmusic.com

Creative Destruction - Graffiti Removal

2007-10-01T18:38:00.000+01:00

Graffiti images might be amusing but graffiti certainly isn’t if it is daubed all over your property or you are tasked with removing it. Despite recent innovations in anti graffiti materials there is still a high demand for a safe, effective, non-toxic graffiti remover that can remove graffiti quickly and completely.The PRD Partnership started looking at the graffiti removal market this summer, and have found that it is a growing industry, with councils, businesses, housing associations and members of the public are keener than ever before not to have graffiti images daubed over their properties. It is estimated that over £500m is spent on street cleaning and associated tasks (including graffiti) every year.

We have teamed up with Ithiel Mogridge (Inventor and owner of Action Products Ltd), to target this market.

http://www.removinggraffitti.co.uk

Our challenge will again be that of information marketing. Whilst the benefits of “Safe Graffiti Gel and Wash” are obvious to us, it wont be obvious to everyone. As with any market, there will be resistance, not least from competitors who may not like a better product being more visible. The sale is always more complex.

The product uses surfactants to turn the paint into a jelly like substance that can then be easily washed away.

Non of the ingredients are classified as hazardous. A non hazardous graffiti remover

All of the ingredients are biodegradable. A biodegradable graffiti remover

Our website for a simple download of information and a chance to buy is:

http://www.removinggraffiti.co.uk

Metaphors part 2 - A SonicHologram

2007-06-11T17:11:00.000+01:00

Metaphors often help us to describe what we find difficulty in describing.

Ask someone "what is it like" and they will enjoy telling you in their own words.

At the moment I would like better words to describe our "Sonic Soundscape". I am asked whether the sound produced is "like surround sound", or "like a Bose", or "like stereo", and if I am being technically accurate it is not like any of them. Unfortunately that does not give a very good reference for people coming into contact for the first time.

We are toying with a "musical hologram" or "sound hologram" or a "sonic hologram". again I have problems with accuracy as a hologram is not really there, but gives a representation. Our Sonic Soundscape is there in 3 dimensions, it has depth (but not surround sound!) and breadth.

The speakers give a more convincing representation of a band or an orchestra, rather than lots of people crammed into a tiny space - does "musical hologram" work? Do e-mail me if it does.

Creative Destruction: Boldly sold: one-bed starship

2007-05-21T11:34:00.000+01:00

Sometimes it is important not to judge.

I never thought that this flat would sell - and made reference to it last year, and in many of the presentations that I have done. The debate in question was whether this was an example of innovation or not.

HINCKLEY A sci-fi fan who turned his flat into a replica of a Star Trek ship sold it for £425,000 – five times its market value – when he put it up for auction on the internet site eBay. Tony Alleyne, 54, left, spent two years and £30,000 recreating the flight deck of the Starship Voyager in his one-bed flat in Hinckley, Leicestershire, after his marriage broke down. It has moulded wall panels, blue lighting and a “transporter room”. The flat was bought by a Birmingham businessman.

http://www.timesonline.co.uk/tol/news/uk/article1796078.ece

Thanks Dave! https://www.nrg-networks.com/