Wednesday, July 28. 2010Forrester punctures Location Based Bubble
Large research house punctures Location Based Services hype shocker - AdAge:
Marketers, hold off on Foursquare -- for now. That's the verdict of Forrester Research on location-based start-ups, which, despite their reputation as the hot new media, are still too small for major marketers. The research firm finds that these heavily-hyped apps currently make sense mainly for brands seeking male influencers. Kudos to Forrester for being realistic. As one of the commentators on the piece says: Wow - for once, Forrester isn't riding the social media bandwagon and it gets taken to the woodshed by the commenters. This is quite interesting, because the usual pattern for the big research houses is to hype up the new new thing, so one wonders why Forresters (among all of them) have decided to puncture the Location Based Service bubble rather than run with it (This is not to say that it won't one day be an order of maginitude larger, just not now - its too early) Tuesday, July 27. 2010Digital Anthropology becomes a Science
Interesting article in New Scientist about digital anthropology providing the sort of data that will allow it to become a science:
Social scientists have long had to rely on crude questionnaires or interviews to gather data to test their theories; methods marred by reporting bias and small survey sizes. For decades, the field has been looked down upon by some as a poor cousin to the hard sciences. The digital age is changing all that - practically overnight, the study of human behaviour and social interactions has switched, from having virtually no hard data to drowning in the stuff. As a result, an entirely different approach to social science has emerged, and studies based on it are appearing with increasing frequency. The impact has been remarkable. Barabasi, old hands may recall, was one of the early thinkers on Social Networking as a predictive science. what Malcolm Gladwell called the Tipping Point. Curiously, one of the experimeters looking at how this worked was a Gladwell critic, Duncan Watts: To examine what made some songs more successful than others, Watts and Salganik created a project called Music Lab. It featured a website where more than 14,000 people listened to any of 48 songs by relatively unknown bands, rated them, and downloaded them if they wanted. These options provided a measure of quality (the average rating given) and popularity (the number or downloads). Crucially, the duo were also able to control whether listeners could see how many times other people had downloaded any particular song, or instead had to rely solely on their own judgement. In this way, they could effectively compare outcomes with the power of social influence turned on or off. They also grouped the socially influenced participants into eight independent "worlds" so that they could explore how the outcomes - the popularity rankings of the various tunes, based on downloads - might change if the tape of history could be rewound and run again. As we pointed out at the time, Watt's attack on Gladwell was more about positioning that point of order. The article goes on to talk about an experiment that shows we have two natures - an investgative and a sheep like following nature, and the one tips over into the other in much the same way as other systems change state -
Others are looking at Twitter's ability to predict movie popularity Huberman and his colleague Sitarum Asur wondered if it might be possible to do even better by exploiting the enormous volume of opinion expressed through social media such as Facebook and Twitter. Opinions voiced in these media, they reasoned, should have strong predictive power because they actually play a role in determining which films do well. "What gets discussed through these media often ends up setting trends," says Huberman. (Cass Business School's Dr Caroline Wiertz presented corollary findings at TEDxTUttle II, by the way). Anyway, what is emerging is something akin to Isaac Asimov's science of Psychohistory - we are all different, but en masse we are remarkably predictable: It's the discovery of underlying patterns of this kind that has excited so many scientists. Given the undeniable complexity of individual human beings, it's not as if social science is going to become like physics, grounded in eternal and general laws, but access to data on human events makes it possible to identify the patterns that do exist and these can be useful for demystifying the social world. Interesting times........................... Monday, July 26. 2010New Wikileaks to Old Channels
Fascinating - 3 Old Media Newspapers are the medium of choice for Afghanistan war wikileaks:
The huge cache of classified papers - described as one of the biggest leaks in US military history - was given to the New York Times, the Guardian and the German news magazine, Der Spiegel. What is most interesting is why Wikileaks - a Web 2.0 User Generated Content site if there ever was one - chose Mainstream media as its organ of publication and dissemination rather than just getting it out there on the Web. If there is one thing this proves, it is that the role of the Olde Media is far from redundant. The deep throating may now be very 2.0, but the reporting is an interesting combination of Old Hacks drinking from New bottles. (Update - there is a rather good debate going on in The Atlantic on what this all implies for Journalism) As to the actual incidents themselves, there will no doubt be a lot of hand wringing from the self-declared sensitive types, but the more prosaic truth about these facts is that this sort of thing was ever thus (Allied exploits in WW2 do not make them out as angels at all, and just ask the average British tankie about US "friendly fire" in the Gulf Wars), its just its all come out in the open this time (A process that started in the Crimea, by the way). And, no doubt Western generals everywhere will be worrying that they have to fight with one hand tied behind their backs while the enemy have no such limitations. But the more prosaic truth about the leaks is that this sort of leaking will become more common, and that governments and corporates everyhere will now redouble efforts to stop it. That the best way to prevent corruption is to shine a light into the dark areas is very true, but it is also true that some areas ned to stay dark for the safety of those fighting on "our side". What will be interesting is to see how a "new contract" is formed between States and their people over the next 10 years or so - States will know the stuff wll come out, most of its citizens will realise a State sometimes has to do what it needs to. Ditto with Corporate malfeasance (where the "have to do what we have to do" carries less weight, methinks). If I were to make a guess, its that most citizens already knew that War is a gory business, that Afghanistan was going far less well than the Governments claimed and the media reported it as going (The mediarati are going into overdrive today, but where were the investigative media before this, one wonders....) and that much of this is news, but not New news. It merely adds detail to already provable hypotheses. Anyways, the Grauniad's page explaining the data is over here, and here is the Excel spreadsheet (They couldn't put it on Google Docs as it can't handle files that size) PS - I loved this comment on Slashdot - pretty much sums up my view of the whole sorry episode: According to the CIA World Fact Book: [cia.gov] Nokia - Smart Phones, Dumb Company?
News that Nokia is looking to replace it's CEO - WSJ:
The world's largest handset making is calling for a new CEO, sources told the Wall Street Journal on Monday. WSJ Corporate Bureau Chief Andrew Dowell and Dow Jones Newswires' Rob Armstrong join the Digits show to discuss possible successors to Olli-Pekka Kallasvuo, and how heavily Nokia should focus on a new mobile software strategy. This is a story that starts pre-iPhone - before this blog even started in 2007 we had done analysis showing Nokia was losing ground on usability of its handsets, and the tardiness of their response to the iPhone has been an indication that the corporate culture is unable to come to grips with the new smartphone market. There has been a few chairs shifted at the top, but we suspect more root and branch change to company culture is required* - a totally independent unit in another country perhaps? Still, its not just Nokia that is struggling - news out today that 70% of iPhone users would buy a new iPhone, but only 20% of Android users will buy a new Android - the reason is also one of Nokia's main problems:
For "Handset manufacturers", replace with "Nokia". *Removing a CEO is seldom enough to change the culture of a company, which is usually promulgated by senior middle managers proecting their own positions. Sunday, July 25. 2010Facebook and the latest lawsuit
Yet another early Facebook stakeholder has crawled out the woodpile, this time claiming 50% of The Face Book - SAI:
The first transaction, which appears undisputed at this point, covers web-development work Mark was to perform for a Paul Ceglia company called StreetFax. No issue there. As SAI is quick to point out, there are a few things that need sorting first: Where is the original contract (and has a judge seen it)? The document we have all now seen appears to be an electronic copy of paper-based contract. Electronic documents are vastly easier to forge or doctor than paper-based documents. The first order of business, therefore, is for both parties to examine the original contract to assess whether it is genuine. This analysis will eventually likely include ink testing and other forensic analysis. Why did Paul Ceglia wait 7 years to make this claim? Facebook's vast value has hardly been a secret for the past few years. In 2007, Microsoft invested in the company at a valuation of $15 billion. It seems beyond bizarre that, if Paul Ceglia remembered this contract existed, he would wait until now to file this lawsuit. The most plausible explanation might be that he forgot about the contract and then stumbled upon it. But "why now?" would seem a simple and reasonable question for him to answer, especially in light of the fact that he and his wife were arrested for grand larceny last year for allegedly defrauding customers of his wood-pellet company. (That doesn't mean he's guilty of defrauding customers or that he's now trying to defraud Facebook, but it certainly makes this a reasonable question.) Where is the payment-trail evidence? If Paul Ceglia gave Mark Zuckerberg $1,000 to fund "The Face Book" in exchange for 50% ownership in the entity, there is presumably a simple payment trail we can follow that proves this. This would take the form of a canceled check, perhaps, or a wire transfer. It is presumably possible that Ceglia made the payment in cash, but this would be highly unusual, even for a payment this small (normally, when you make an investment in a company, you WANT a payment trail). In other words it is pretty clear cut that we don't know enough yet to know if the document is genuine, never mind whether there is a case or not. Of course this hasn't stopped every TV and Blog lawyer (and non lawyers) jumping on the bandwagon. However, two things that do make this curiously more credible:
Being non-lawyers and not on TV, as yet we refuse to prognosticate on the validity of the document. But on past form, we're offering 3/2 odds on a payoff The Faebook Story - its somethin you just couldn't make up - no one would believe it! Friday, July 23. 2010Technology Analyst OveroptimismWhy Tech Equity analysts exaggerate more than anyone else It has been clear for many years that the big New Tech analysis houses exaggerate the future impact of (sales, penetration, benefits etc) of new technologies (the Gartner Hype Curve was invented for the sector after all). The reason is also fairly well known - no one buys research from people who tell it like it is most likely to be, because then few business cases would fly, few VCs would invest and then where would we be. We routinely divide Mobile industry projections by 2, as we know most will be reduced to this level 2 years later. What I had never really understood though is why Tech Analysts from the Investment Banks were the most overoptimisitc in the dotcom boom (Henry Blodgett and Mary Meeker are the most infamous). An explanation from McKinsey shows why: McKinsey research shows that equity analysts have been overoptimistic for the past quarter century: on average, their earnings-growth estimates—ranging from 10 to 12 percent annually, compared with actual growth of 6 percent—were almost 100 percent too high. Only in years of strong growth, such as 2003 to 2006, when actual earnings caught up with earlier predictions, do these forecasts hit the mark. So there you have it - Tech Analysts over hype, Equity Analysts are Overoptimistic, so Tech Equity Analysts...well, the 2x2 above explains it all Twitterers in the Mist
Researchers at the Northeastern University College of Computer and Information Sciences, along with researchers from Harvard Medical School, set out to determine how happy or sad Americans are at different times of the day and week by looking at happiness indices implied in Twts - NYT
Some of the results are more obvious than others. For example, during the workweek people are happier in the early morning and late evening, before and after the daily grind. They looked at 300 million twts over a 3 year period. Overall report is over here As the NYT notes, Twitter is becoming the Digital Anthropological equivalent of Rwanda and Uganda'a Gorillas and Chimpanzees. Thursday, July 22. 2010Privacy as a Social Differentiator
Fred Wilson on RWW talking about premium privacy:
Wilson suggests that while large companies like Twitter, Facebook, Google and Yahoo could set a precedence for privacy, from an infrastructural outlook it is harder for them to roll back and scale permissions to their huge social graphs. Three very interesting implications which come out of this: (i) There is an increasing opportunity to use privacy as a differentiator vs the existing SocNets - my own view is stronger than Fred's in that I think there will be a large backlash against the current privacy scrapers. You won't see it in massive user turnoff, more just the slow reduction in activity and people who still "live" on that site until it becomes an online Ghost Town. I await with interest to see which Private SocNet Fred winds up funding Wednesday, July 21. 2010Who are the New Intellectuals?
A bit of holiday reading - John Brockman on the demise of the old literary intellectual and their replacement with...well, that's an interesting question and I'm not sure he has it right. I first read his book "The Third Culture" (in which he argued that there needs to be an intellectual culture that blends new thinking encompassing both science and liberal arts) some 15 years ago. In his view the traditional 20th Century "Intellectual" is intellectually redundant:
"Traditional American intellectuals are, in a sense, increasingly reactionary, and quite often proudly (and perversely) ignorant of many of the truly significant intellectual accomplishments of our time." He is talking about the (often proud) ignorance of science and technology (and I wouldn't limit it to Americans either - in fact in his Third Culture he had a good go at European intellectual tradition as well). Observing the chattering class British disdain of science (still largely prevalent today), I was somewhat sceptical that a 3rd Cuture would come tofruition anytime soon. And waching the rise of pseudo-scientific hokum movements from creationism to ..... since then has made me even less convinced. So who does he believe the New Intellectuals are? Well, if his own books are anything to go by, he has assempled all the "writers of books" that have a scientific bent (rather than scientists per se). Well, being a publisher, he would, wouldn't he? Now don't get me wrong, I enjoy these sorts of writers hugely (Jared Diamond, Richard Dawkins, Jaron Lanier et al), but I do wonder if this is a bit akin to looking for lost keys under existing lamplights? Does being an Old Skool publisher lead to missing the point as much as an Olde Intellectuals does? The one thing that has interested me is the last 5 years and the rise of the Blogosphere, where there has been a massive rise in people who, because they are not constrained by conventional limits, do cross these intelectual lines quite unconsciously and happily. The difficulty with the Blogosphere of course is that it is huge, chaotic mass and (as it gets easier and easier to use) increasingly polluted with pure cr*p so it is hard to find the good stuff at first. But what has happened - big picture - is a rise of a very large volume of people putting new ideas together in new ways, so you ar awash with new thoughts. Let me give you an example - this week for the first time I heard of (and read a bit of the works of) Vaclav Smil (who also writes on the development of technology and energy over the last 100 years or so). Now here is the interesting thing (to me, anyway) - there was very little he has written that I didn't already know about by reading the blogs I do read in this space, and yet I had never heard of him - yet Bill Gates apparently hangs on his words. The point I am making is that new ideas are now arising and disseminating in multiple channels, and the Blogosphere - distilled - is its own intellectual - as well as its own Hello! and Pseud's Corner and sheer Crap-o-Sphere (500 million people on Facebook and nothing on.....) The problem going forward, in the arising tide of sheer noise that is the New Social Media, is finding them. The Web will need its John Brockman style publishers as much a Olde Media did. Saturday, July 17. 2010Digital Apartheid?
Ooops - she's at it again! Every so often Danah Boyd does an analysis that brings un-PC differences to light in Social networks. This time its race (last time it was class...see here).
And, one suspects, this time (just as the last time) - she has exaggerrated it a tad for publicity (surely not because - you would no doubt be surprised to hear - there is a book to flog?) - GigaOM: The book chapter is entitled “White Flight in Networked Publics? How Race and Class Shaped American Teen Engagement with MySpace and Facebook,” and is part of a book called Digital Race Anthology, which is being published later this year by Routledge Press. In it, Boyd describes how during her research in 2007, one teenaged interview subject named Kat said that she didn’t like MySpace any more because it was what she called “ghetto”: Digital White Flight, Ghettoisation, incipient racism, class and income inequality - marvellous stuff. Its a pity battered women and asylum seekers can't be shoehorned in too (wait for the 2nd Edition - Ed) As GigaOm imples, (and this would be our hypothesis too), MySpace is a last-generation SocNet, and it was overtaken by a nerwer and better executed design, and also had a "last generation" user base - music fans etc - rather than Chatterati.
It was also bought by a large corporate just as the Next Generation hit the scene, so the ability to innovate was removed at a critical time. Overall I like her stuff on privacy, but I think her stuff on web demographics is skewed because it looks too narrowly - I think two of the comments on the GigaOm page explained the bigger picture well - this one: Can PhD’s (or microsoft employees) really be this dumb? Have they ever heard of something called the ‘network effect’? Or how about studying the reasons behind why Microsoft’s OS became even more dominant in PCs than Facebook is now in social media. Ignore the ad hominems, but the points about causes other than race or class are well made - and also this: Facebook started as a university only social network, which yes may mean demographically more white people but I don’t think race is really a factor. Incidentally, I read this week that Twitter has a more valuable/professional/dynamic/upmarket demographic than Facebook now....and (shock) its more MALE! We eagerly await the cries that Twitter is a White Male bastion....
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