Should Your Next Startup be in Sao Paulo

A decade ago, everyone was waxing lyrically in the received wisdom of the BRIC phenomena. The 4 fast growing economies of Brazil, Russia, India and China. After a while I started to notice that Brazil was sending representatives to IT conferences and other fora to promote Brazil's tech industry.

So why is this important? Well Sao Paolo is known as the manufacturing centre of South America and Brazil with a population of over 200 million is considered the 8th largest economy in the world. Against this ranking, Brazil's IT industry representatives present Brazil as having the 7th Largest IT industry in the world. So it should be important.

This leads me to the question of why don't we hear more about Brazilian Startups and why isn't there a stampeded of people from the UK and Europe trying to invest in or partner with Brazilian startups? So I decided to  enquire further.

It appears that investment in Brazilian startups is healthy. A Financial Times article, places Sao Paolo 11th in the world of any city attracting startup funding rounds greater than $100M. This places it behind London, but ahead of Tokyo, Paris, Seoul, Austin, Seatle, Tel Aviv and Mumbai inter alia. So Brazil's reputation for high costs and bureaucracy is not putting anyone off (a lesson for Brexit remoaners perhaps).

So why don't we hear more of this in the UK. One answer could be that Brazilians are notoriously conservative and don't like to do business with people with whom they do not have a long relationship. Additionally, they like quid pro quo partnerships, so want you to bring something more to the table than just cash. The other may be that traditionally they are quite insular in outlook and compare themselves with the United States only. So startups like Pipefy and Psafe have looked to the US rather than Europe. 

I think it's time that UK entrepreneurs started to explore the opportunities available in Brazil, as there is a huge talent pool there and loads of innovation. Personally, I think it's time to do a duolingo course on portuguese.

Are Businesses Still Missing the Point About Digital Transformation?

The other night I was talking to the Head of Product Management for a company who run several Dating Site brands (facing into differnet market sectors: young, old, gay etc. and across over 50 countries). He was really keen on the term "Digital As Usual" (DAU), because it encapsulates the culture and thinking needed to sustain a Digital Business Model.

So I was quite disappointed to see Raconteur's recent article on Digital Transformation, which shows just how badly many companies are still addressing their move to a Digital Business model. The usual collection of issues showed up: It's an IT problem, its a siloed CDO problem etc. Though, to some extent I think that the authors and experts quoted in the article got it wrong too as they keep talking about Digital Transformation, implying that you get there in a relatively short period of time. The whole point is that you never get there. It is a continuous journey and requires the whole business to act as a team who enjoy voyaging. So instead of transformation programmes, they should think Star Ship Enterprise and understand that what they are really pursuing is organisational excellence and customer delight. Getting that right will move the dial on meaningful organisational measures of performance and deliver revenues and profits (or whatever relevant Value that applies to their organisation) as a byproduct of operating a successful Digital Business Model.

What was interesting in the article was the criticism of organisations who think about digital as just being IT. Whilst in Asia Pacific, a recent survey looked at Digital and IT Transformation. Companies in this region belivve that they are leading the world in digital transformation. Its finding was that where businesses had addressed IT Transformation, they were over 39 times more likely to make better faster decisions than competitors and 13 times more likely to complete application deployments ahead of time, whilst running their critical applications at less than half the cost of competitors (who had not transformed). This is despite the fact that IT leaders are less likely to be involved in critical business decisions that in other parts of the world.

So, IT and lean capabilities are essential enablers, but the senior management team needs to work as a team and not a series of siloed prima donnas. However it is difficult to find anyone who works maturely across all aspects of digitalisation. The Head of Product Management that I talked to (above) freely admitted that his organisation, although growing successfully, does not put enough attention into data quality and avoiding technical debt. And the Strategic Busines  KPIs that they work to are not perhaps the best in optimising customer experience. However, they were very storng on identifying tangible market opportunities, product thinking and lean delivery, whilst enjoying a positive collaborative and innovative culture. They recognised that innovation does sometimes mean learning from failure, although they don't have a strict measure on how much failure is acceptable. But they were doing enought to prosper and continue to learn and grow on their journey. And that is the point.

Aligning Digital Exploitation with Operational Capability

All Enterprises Are Not the Same

One of the tenets of Digital As Usual (DAU) is that most businesses are not pure play digital organisations. In almost all cases there are operations and activities which are essential to either fulfilling service or delivering a product which need to be managed as well. The Digital Adoption Framework assumes an Industry Categorisation Model as illustrated below.

The Industry Categorisation Model identifies 5 Categories along a continuum of Industry Product Nature. At one end of the continuum are “pure play” digital organisations, whose products are Information and Content based. These consist of Market Platforms like eBay and Compare the Markets.com who provide a platform, through which other organisations and people sell their goods and services, as well as Publishers and Providers of Content who provide videos, e-books, podcasts, news, music etc. At the other end are Extractor and Grower type businesses, such as coal mines and cocoa growers who provide natural unprocessed products. Off course not all businesses fall neatly into just one category. A major energy company such as Shell or Exon may straddle several categories along an Upstream (exploration, drilling and extraction) to Downstream (transport, refining and distribution) activities.

So why is this important when thinking about digital businesses? Well each different type of business operates in different ways, has a different level of dependency on capital assets and has different opportunities for exploiting digital technology to augment its business model. Additionally, the whole concept of Lean Delivery via Design Thinking, Agile Delivery and DevOps may have different opportunities and constraints as well as nature of delivery in each category.

Some Examples of Exploitation

The diagram below looks at the potential for exploiting Artificial Intelligence (AI) technologies according to Industry Category.

The “X”s in the table represent significant opportunity for exploitation against a generic type of Use Case. So for example AI technologies (machine learning, visual recognition, natural language etc.) can be used to provide insight and learning in every type of organisation, but there is very little opportunity for them to add to “customer experience” in say mining or farming. Again there is huge potential to build AI capabilities into consumer products, e.g. Alexa in Amazon’s Echo, but there is little opportunity to enhance a product such as iron ore or tree trunks produced from a Natural Product Extractor or a Grower. 

Alternatively for IoT, see diagram below, the opportunities are pretty limited for an Information publisher, but there are many areas where a farmer could use it to track livestock and monitor soil conditions and crop conditions, as well as control assets such as vehicles and trailer equipment.

This moves us onto exploiting iterative approaches within an organisation. The other night I was talking to someone from a major pharmaceutical company. Drugs take years of research to identify promising candidates for a problem and to test for efficacy and safety, as well as meet regulatory demands. There is little opportunity to exploit Iteration in this type of product development. But for the company overall, there are opportunities around internal processes and with Agile Marketing.

Agile Marketing is a growing area of adoption within industry and works well for consumer driven businesses. At its core is the use of small integrated product teams which focus on market research, product promotion, delivery of marketing and promotional materials, advertising and the information analysis systems used to support marketing data analysis. These teams tend to work in multiple sprints testing out marketing promotion hypotheses and rapidly identifying which approaches produce optimal results, to improve overall revenues. 

Iterative development also its quite different for delivering an oil tanker or a film, to the development used to support a consumer service. In the case of the former, iterative design, development and continuous testing techniques are used to deliver a single integrated complex product over a period spanning many months if not years. In the latter they are used not just to deliver the product, but to continuously keep it fresh, up to date and moving ahead of competition that is playing catch up.

So it's important not to adopt a one sized fits all approach, but to really get down to what can work for your organisation. This is part of what I talk about in my book.

The Trivia of IoT

You know that something has become too trendy when you key in the subject and some other random item and find that you get lots of returns. So yesterday, I tried it out with IoT.

So what do you get with IoT and Bathroom? Well a polemic on the bathroom of the future. Yes, we will have smart toilets which are not only eco friendly but diagnose medical conditions: Pregnancy, bacterial conditions, PSA levels, sugar levels etc. Smart showers are already here for the eco-friendly trendy set. They minimise wasted water, go straight to the temperature that you like and give feed back via LED lights on how much water you have consumed. Then there are smart toothbrushes which give you feedback on toothbrushing technique. Finally,  there is the smart mirror. This allows you to catch up on the news and weather forecast, whilst brushing your teeth. You could also monitor any of your smart household devices, such as your smart toaster, at the same time whilst also checking incoming messages. Sounds like hell doesn't it?

So I decided IoT and Underwear would then be a suitably trivial query. Well you get responses on the usual fitness app equipped wearables for monitoring pulse and other vitals whilst exercising. There's also smart yoga pants, which provide feedback to help you form the right posture when exercising. But there is also a quite exciting smart bra device, the iTbra, which can help monitor the wearer for signs of cancer. This has the potential to replace the expensive, stressful and quite uncomfortable process of having mamograms with something which monitors circadian temperature changes to detect abnormal patterns. Apparently this is based on a proven technique which has existed for decades, but was previously too cumbersome to use, due to the need for lots of cables going to instrumentation. IoT does away with the cables and allows for a potentially more accurate test which can be completed within a few hours of monitoring.

So, I then started thinking like a teenager and yes there is a smart tampon. The my.Flow  is there to help avoid the embarassement of blood staining the wearer's clothing, which would be a mortifying experience for anyone. As a man, I don't think that I should comment any further. But moving on to men, yes you can indulge in the smart condom, or i.Con. Actually its not a condom, but a ring you can slip over the top to monitor your performance statisitics during the act of copulation. Do we need it? is it useful? I'll leave it to you to decide.

So what do we learn from this trivia and is there a serious point. Well, its obvious that soon we will not be able to escape the World of Interconnected Smart Things (WIST). It has become pervasive across almost any field that you can think of (including farm fields of course). With it comes the danger of people who want to exploit it perniciously. So we need to start thinking about protecting ourselves and privacy and security in our homes and daily lives. However, this goes beyond the simple steps of securing your WiFi, protecting your passwords and identity, to seriously ensuring that your networked home and persona are well and truly protected in a systematic way and that you have separation of "concerns" and firewalls between your virtual world and the rest of the world.

My Dreem Experience - Week 11

So I have now been using the Dreem Headset for 11 weeks and this is the final report on my trial with the Dreem Headset.

For those who are unaware and have not read previous posts, the Dreem headset is a sleep aid. It plays soothing sounds to get you off to sleep (or alterntively meditation or sounds for synchronising your breething to encourage sleep). It also monitors your brainwaves, pulse, position changes and duration of sleep and whilst you are in "Deep Sleep" will play sounds to improve the quality of our deep sleep. This is all supported by machine learning and the software is regularly updated to optimise performance. Finally, it uses gentle sounds to wake you up around an alrm time setting that you have decided upon.

So what have I learnt and found out, and what is my experience.

Well I suppose the big positive is that I feel less tired. I hardly ever feel like I need a mid day nap to recharge and the bags and dark shadows under my eyes are significantly reduced. I don't feel that I struggle so much to go to sleep and generally feel a lot more positive about it.

The feedback about my sleep stats also makes me more aware and probably a little more positive about going to bed at sensible times.

That is the subjective and qualitative experience.

In terms of Statistics and hard numbers, It appears that I sleep about the same amount as the average Dreem user at an average of 6 hours 21 minutes cf. 6 hrs. 33 min. for the average user. I change position a few less times than the average user, which surprises me as I always thought that I was a restless sleeper. I do however take roughly twice as much time to go to sleep than the average user, averaging 40 minutes per night. This difference appears to account for the fact that I go to sleep roughly 20 minutes later than the average user.

The single thing which has struck me the most is how little time I actually spend in deep sleep. It tends to average between 20 and 40 minutes a night. I had always thought that a person spends most of the night in deep sleep and that light sleep and REM occured only whilst going to sleep and beginning to wake. However the metrics show that, for me at least, deep sleep appears to happen quite randomly through the night without any discernable pattern.

I also plotted the statistics for the last 11 weeks and interestingly, whilst the trend shows an almost doubling in the improvement of my deep sleep quality over this period of time, the amount of time that I spend in deep sleep has dropped slightly. The overall period of time that I sleep each night has not changed significantly.

So my conclusion? It does work, not dramatically, but enough to improve my life and to notice the difference. For me at least, it has been a worthwhile investment.

2018 - The Year of The Cyborg

Whilst most pundits are focusing on AI, VR, AR and Machine Learning, it is clear that the Digital Frontier has moved on to Human Integrated Computing (HIC). Though not everyone uses the same terminology, so you may see Human Computer Interface, Brain Computer Integration and a number of similar terms to describe basically the same thing.

So this year has seen the IEEE's 6th International Conference on Brain Computer Interfaces (BCIs) and the Hackaday Competition for the Greatest Human Computer Integration (with a prize of US$50,000). Clear themes from both events were the avoidance of direct implants and using any number of techniques to communicate between people and computer devices. 

A lot of these are based upon reading brain waves or nerve impulses and there is a strong theme of applications around things which help people recover from debilitating accidents or deal with disability.  However it is clear that recent advances in the ease of applying machine learning to solutions has been a clear game changer in interpreting brain waves and nerve impulse signals. The ability of machine learning to recognise how to filter out extraneous signals and focus on what matters to the application is key to this.

Additionally, in a wider social context there is a fringe trend towards people choosing to "self adapt" with home grown technology implants into their bodies. This trend, sometimes called Trans-humanism, involves implanting anything from magnets, through chips to specific devices into their bodies to provide a variety of single function applications. Although Lukas Zpira refers to it as "Body Hacktivism" and espouses a creed of "taking control of our destinies by continuously reinventing the self".

So what does this mean in terms of realisation in practical day-to-day life? Well there are a surprising number of products which are either ready for market or close to release, as well as any number of technical concept demonstrators. These include:

Prosthetic Limbs,

Exoskeleton Devices,

Turning Thought into Speech, see Nuros's Nuos software

Eyeball Tracking,

Remote Controlled Limbs, e.g. CTRL Labs Wrist Band,

Additional Limbs, e.g. a second pair of arms on a backpack - Keio University's Fusion 

Accessing Human Memory,

Improved Physiological Measurement of things such as Blood Pressure,

Detection of Emotions.

Though, to my mind one of the more interesting things is the research being conducted by 

researchers at Drexel and ISAE-SUPAERO into aircraft pilot'scognition during extreme incidents and how they deal with the sensory overload of multiple sound alarms, flashing indicators and situational awareness when an accident occurs during flight. Their research involves attempting to monitor how they deal with such incidents, using functional Near Infra Red Spectroscopy (fNIRS) to quantify brain activity response in the Anterior Prefrontal Cortex. So far they have demonstrated its feasibility and the fact that in real life, the overload is higher than in a simulator and pilots make more mistakes. In the future it should be possible to use this to assist in optimising instrumentation design, reduce cognitive overload and the likelihood of errors.

All this represents practicable and achievable goals in the evolution of the path towards the dreams of Elon Musk and Mark Zuckerberg who are pursuing full embedding of computers into the brain with their Neuralink and Building 8 programmes. But as I mentioned in a previous posting there are immense issues around not just technical practicalities, but ethics, security, phsychology, dealing with potential information overload and long term upgrade capability to be addressed before these goals become safe, let alone desirable.

DevOps 2018 Report

Puppet has published its 2018 State of DevOps Report. This year they have examined the premises on adoption and confirmed that most successful adoptions follow a project by project approach, with a single project pioneering the way and gradual cross poliantion of practice whilst it is matured.

The project focuses on 2 aspects of adoption:

• CAMS - Culture - Automation - Mearsurement & Sharing

• a 6 layer maturity model from 0 to 5, which broadly follows a simplify and Standardise Approach, Followed by Process Practices, then Automation and finally Self Service capabilities.

One of the themes of the report is the gap between teams practicing DevOps and Senior Management. It still appears that DevOps adopters continue to struggle with cultural aspects associated with empowerment and reporting.

Anyway, for anyone interested in the Lean Aspects of Digital Business Models, this is essential reading.

Cyber Trends 2018

James McDowell and Camble Murray gave an interesting talk, at the Blackberry Security Conference, on recent trends in cyber security and what we can learn from the last 12 months.

Probably the most quotable aspect was how easy it is to social engineer an attack if the attacker targets people in Sales roles. Apparently, sales people are so eager to make a sale that "they will open anything" on an email attachment. They also claimed, that if the attacker uses "appropriate HR language", then it is quite easy to persuade an HR user to do so too. So there are some communities to focus on with communications and cyber awareness training. It also appears that some security professionals are starting to adopt psychological techniques such as NLP to re-inforce their approaches to building security cultures.

It seems that Ransom Ware and Email targeting for spear fish attacks remain the 2 most prevalent threats, mainly because of the economics of cost and return from such types of attack; generally perpetrators reckon to pick up quite significant returns for relatively modest outlays, given the general availability of many cheap attack kits and the ability to sustain high volumes of attacks, almost guaranteeing that some will succeed.

It also appears that attackers are increasingly using Facebook and other social media platforms to identify individuals who are susceptible to "clicking on things" and profile them for future attacks. So perhaps this is the time to educate people about separating their social media personnae from their work ones, making it much less easy to cross link them.

Th other notable point was the significant number of crypto currency exchanges and wallets which had been targeted for attack. There is something about saying that something is secure that invites the wrong type of attention.

The other big trend is the emergence of the term Cyber Resilience, which is really about how capable a business is in dealing with major security incidents and continuing to operate when under cyber attack. So whilst there is a strong need to deal with security basics systematically, there is also the need to design in security at both an environmental and a project level, when implementing new stuff, there is also the need to have a well oiled and rehearsed approach to managing the response to an attack. 

The Return of the Crackberry

This week, Blackberry held its annual security conference in London. so it was a good time to catch up with what Blackberry is doing now, after the melt down of its original secure corporate phone and email business model. 

Well, it is still in the phone business. Partnering with TCL, who undertakes hardware manufacture and smart phone distribution, blackberry is still designing new smart phones. The new models look very smart and offer a key pad equipped, touch sensitive android phone at a competitive price point, i.e. several hundred notes cheaper than the equivalent Samsung or Apple model. It would be easy to dismiss them as being a choice for someone who is into retro chic or an old school aficionado of key pads. However, there are some subtleties in the product design which are increasingly relevant in the current environment of aggressive cyber crime. The devices are designed and built bottom up to be resilient to infiltration and takeover, combining both hardware and software features for this. Additionally, the thumbprint security control is implemented in a way which allows the user to differentiate between what is private and what is shared. Which coupled with features in Android enabling separation between personal and corporate personas, makes it very much a smart phone of the age.

However, mobile phones are really only a side show and not the main story. Blackberry has built on its global secure telecommunications capabilities to emerge as a leading "Enterprise of Things" (EoT) enabler. Someone described its primary mission as being to "Secure your Communications and your Data". However the vision is one of comprehensively enabling secure IoT exploitation by enterprises, leveraging industry standard to deliver on government quality security in the deployment of Smart Things, or as one of the speakers stated "Moving from Mobile First to Things First".

There's a comprehensive set of products with SDKs which enable OEMs to develop secure smart products and Enterprises to deploy Thing based business models securely, whilst users enjoy a relatively seamless secure access experience across a comprehensive range of products.

Although what was probably the most impressive aspect of the conference was to see representatives from Google, Microsoft, Samsung and Blackberry discuss how they are collaborating to deliver a new generation of products which integrate securely and build the IoT world of the future.

Agile CIOs

The ever changing role of the CIO is often subject to much debate. Opnionons vary from the challenge of "why do we need a CIO?" to "CIOs should be driving our innovation and vision".

 A recent article by McKinsey - How to Become an Agile CIO - is a typical example. The authors,  Santiago Comella-Dorda, Quentin Jadoul and Swati Lohiya, set out 3 main aspects of An Agile CIO's role:

• Architect / Technology Visionary

• Driver of Knowledge and Talent

• Problem Solver

Whilst they are obviously part of the role, I think that they do miss the point in a number of areas. The first is that the CIO should be taking the llead in helping build a positive business culture which avoids blame, encourages collaboration and focusses risk appetite around continuous innovation. This requires a good focus on the soft aspects of Employee Engagement, as well as some on providing supporting tools.

The second is on uniting the Senior Management Team and their teams in building common understanding of each other's problems and shared opportunities, as the basic pre-requisite for developing an Integrated Product Team approach, in which each IPT addresses the requirements, design and enhancement of End-to-End product processes (whether there are internal or customer facing products).

The third issue is being the corporate consience on balanced performance and investment; Businesses which operate as teams tend to be the best at developing and exploiting digital business models and sustaining a Digital As Usual ethos. This does require balanced investment and commitment of resources so that the orgnisation can not only address new business opportunities, but also improve exisiting products, maintain capability and protect itself (and its customers).

London as a Digital City

London's FinTech position is widely known with the overal ecosystem for start up digital innovators leading Europe. Most pundits don't see this changing too much post Brexit, whatever the consequences of negotiation between Britain and the EU. However, that is a European position and many other cities have aspirations in this area,whist at the same time within the UK Birmingham and Manchester are begining to grow critical mass within their digital ecosystems too.

Singapore and Hong Kong are showing stron signs of trying to build strong ecosystems around Block Chain (see previous posts). But this week, Telangana (the southern Indian State with Hyderbad at the centre of its IT prowess) announced a partnership with Tech Mahindra to launch a "Blockchain District" as a technology park for incubating blockchain technology and applications.

Interestingly, The smart City Index ranking of global smart cities, shows London in 12th place, just behind Singapore and just ahead of New York, San Fransisco and Chicago. So there is a lot to do if London is going to achieve its Mayor's and the UK government's aspiration that it will be the leading Smart City in the world.

Given the fact that Smart Cities are an extended affair, reaching far beyond the borders of the city environs into a connected network of outlying areas, it will be interesting to see whether it attempts to partner with other cities in the UK to build a networked system, where the cobination of the cities is stronger than the sum of their parts.

So at this point there's loads of competition and everything to play for if London is going to fulfil its aspirations or fall behind, as so often in the past when the UK has held an initial strong leading position. This needs both political will and finance industry recognition of how wealth is actually created and sustained.

Digital Era Customer Contact and Experience

In the 1980s, The theory of Customer Care was propogated widely at the same time that call centres started to evolve into contact centres. The subtle difference between a call centre and a contact centre being that a contact centre is supposed to deal with customers through all media of communication: letters, telephone calls, and direct contact in person if somone knocked on your door. With the '90s, email was added and then websites and latterly mobile apps have started to grow traction.

In parallel with this we have seen all sorts of mechanised and automated technologies arrise to help improve productivity and efficiency. IVR or Interactive Voice Response (which really is not that interactive), Power diallers to fuel direct telemarketing campaigns, backed up with scripting to ensure consistency of message were also introduced followed by features such as distributd call centres, off shoring, workflow based load balancing etc.

The touble with all these approaches has often been that they focus on work load balancing, limited levels of scalability and cost efficiency rather than personal experience. Offshoring also intorduced problems with culture and language, as well as greater possibilities of fraud and exposure of customer data to theft and exploitation, as "solid legal contracts" have proven to be paper tigers in protecting confidentiality. In fact in some countries, such as Singapore, which have reutations for innovation and fast moving companies, customer experience is terrible.

This just does not cut it in the modern digital age, when customer experience and reputation will make or break a company. We now have people pondering the future of the contact center and whether there will be any people in them to take calls with the advent of AI and chatbots as well as the use of IoT to collect customer behaviour information and change the model by which companies interact with customers.

The real issue is that many of these advances can be uselfull exploited in situations which suit "self serve" activities such as "how can I fix my thermostat or change my account settings". They don't particularly work well when there has been a service failure or a billing mix up. Assumptions that Generation Next Letter in the Alphabet will always want to contact you via a certain technical chanel are also wrong. Peoples contact method decisions are often affected by context. If they are not allowed to use mobiles at work for instance, or they are in an airport and have lost their mobile phone or iPad and urgently need help with a travel problem, then other contact options are needed.

The new technologies offer opportunities, but greater effort needs to be put into creatively exploiting them and designing a great customer experience. So it is interesting to see that a company like Creston is establsihing a global network of Customer Experience Centres to show exactly what it can do for people. It will also be interesting to see how Creston exploits this interaction chanel to improve its customer offerings as well.