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December 10, 2009 11:46 AM PST

The logic behind the consumer device economy

by Adam Richardson
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The Onion nicely parodies the often irrational (but highly predictable) drivers behind the constant treadmill of electronic gizmo introductions and the unrelenting consumer interest in each new launch:

With the holiday shopping season officially under way, millions of consumers proceeded to their nearest commercial centers this week in hopes of acquiring the latest, and therefore most desirable, personal device.

The device, which is never named, retails for $395.

"Its higher price indicates to me that it is superior, and that not everyone will be able to afford it, which only makes me want to possess it more," said Tim Sturges, owner of the old device, which he obtained 18 months ago when it was still the new device. "I feel a strong urge to purchase the new device. Owning the new device will please me and improve my daily life."

"It's difficult to remember how I ever found enjoyment in my old device," Sturges continued. "It is no longer appealing to the eye."

Read more >

December 3, 2009 11:16 AM PST

Fiesta Movement--will it catch on?

by Adam Richardson
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Ford Fiesta

Ford Fiesta

(Credit: Ford Motor Co.)

I was driving along the other day and saw a lime green Ford Fiesta--a car that is not currently available in the US, but which launched recently in Europe. It's combination of good looks, driving fun, and low prices has quickly made it the second-best-selling car there after the Golf.

Ford is planning to bring the Fiesta to the US in 2011, an excellent move, as we need more good "economy" cars here that are not boring and/or ugly. Ford is doing an interesting viral/social campaign ahead of the launch. It has engaged 100 "agents" to drive the cars around and blog and tweet about their experiences (the car I saw was evidently driven by one of them--it had a fiestamovement.com logo on the back bumper).

80,000 people volunteered to be agents, according to MarketingVox:

The online program has also generated 6 million YouTube videos, 740,000 Flickr views, and more than 3.7 million Twitter impressions to date, according to the company. Additionally, name awareness for the model has risen to almost 60 percent, according to Jim Farley, Ford's vice president of marketing (via the Detroit News).Ford will officially debut the 2011 Fiesta model at the Los Angeles Auto Show today.

Each round of agents produces videos that combine into "chapters" that will play out over the following months. It's the most extensive social/viral based marketing campaign that automakers have yet undertaken (good enough to get me to write about it anyway), and shows the importance that Ford is placing on the Fiesta. According to the Detroit Free Press:

The Fiesta represents a seismic shift for Ford. The automaker, best known for its F-Series pickups and SUVs, hasn't sold a subcompact car in the United States since it discontinued the lackluster Aspire in 1997. What's more, Ford hasn't sold a car with the Fiesta name since 1980.

Ford said it will offer 15 technologies in the Fiesta that are not typically found in subcompact cars. That includes keyless entry, push-button start and its Sync wireless communications and entertainment technology.

November 16, 2009 10:58 AM PST

Apple, Bloomberg: Two media brands in the social era

by Tim Leberecht
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(Credit: Billpapa.org)

Reading the business section of yesterday's New York Times, you couldn't help but notice the juxtaposition of two seemingly different companies, which, at second glance, have more in common that you might think. One is Bloomberg, the financial data juggernaut that has enough cash to aspire to become “the world’s most influential news organization.” The company has placed its bets on the acquisition of the venerable BusinessWeek, trusting that it will broaden its reach into a mainstream business audience. A few pages later, Digital Domain columnist Randall Stross reveals Apple’s pending patent application for a new advertising pop-up technology that forces users of devices and web sites to acknowledge the reception of the commercial message.

What Apple calls “enforcement routine” is basically a radical ad-based model that offers consumers to use Apple’s products and services for free or at a discount if they “watch ads they may not want to watch.” Stross writes: “Its distinctive feature is a design that doesn’t simply invite a user to pay attention to an ad--it also compels attention. The technology can freeze the device until the user clicks a button or answers a test question to demonstrate that he or she has dutifully noticed the commercial message. Because this technology would be embedded in the innermost core of the device, the ads could appear on the screen at any time, no matter what one is doing.” As Stross points out, other brands went down this path before and utterly failed, and he is stunned that Apple, if it is serious about this technology, seems to be willing to risk its  reputation of consumer-friendly “cool.”

One story can be read in the context of the other: Bloomberg and Apple not only share a zealously rigid culture and a “walled garden” business model based on selling high-grade packages at a premium price; they are also both media companies. Both have strong communities driven by the Three C’s of Communities--connectivity, content, and context--and both are wondering which of these parameters they can exploit more aggressively without jeopardizing the integrity of the community that is the foundation of their business. Both Apple and Blooomberg create value by heavily relying on network effects within an ecosystem that they tightly control. Both are distributing content to raise demand for their products. And both have a strong brand to extend – and to lose.

With the acquisition of BusinessWeek, Bloomberg’s strategic trajectory is clear: Owning a proprietary technology platform (it sold 300,000 terminals to date), the company is looking for ways to reach more potential buyers (and sell premium services). Apple’s “terminals,” on the other hand, are its iTunes store and its user interfaces, and the recent patent application indicates that the company might explore the exploitation of attention generated through these properties. Bloomberg is buying attention to open up new sources of revenue, Apple might be selling it.

The two brands have one last trait in common: They are not really embracing social media, to put it mildly. Apple, as a company, does not engage, and Bloomberg even discourages its employees to engage. Apple and Bloomberg, in some ways, are the antidotes to a marketplace that – propelled by the forces of the Social Web – is becoming increasingly atomized, hyper-distributed, open, and transparent. Secrecy, compliance, top-down hierarchies, rigid communication policies, and walled gardens are characteristics that may be somewhat outdated in this era, and yet they seem to be the very cornerstones of Apple’s and Bloomberg’s success as the two firms thrive as the surprise champions of their respective categories. Both came to save ailing industries, ripe for innovation: Apple reinvented the music industry and the Smart Phone market. Bloomberg is determined to reinvent the news business. But in the long term, can Apple sustain its community of loyal users without becoming a more transparent organization? And can Bloomberg really emerge as “the world’s most influential news organization” without going social?

November 2, 2009 9:52 PM PST

The world's first crowdsourced creative agency

by Tim Leberecht
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It's always good to be the first, and while crowdsourcing, the trend, may have jumped the shark, a fully crowdsourced creative agency is a bold creative experiment and still news. Two Crispin Porter + Bogusky alums, John Winsor and Evan Fry, together with Claudia Batten, the founder of Microsoft-acquired video game advertising shop Massive, have launched Victors & Spoils (V&S), "the world's first creative agency built on crowdsourcing principle."

V&S says it will "provide businesses with a better way to solve their marketing, advertising and product-design problems by engaging the world's most talented creatives." The press release promises that "perceived crowdsourcing flaws will be addressed through world-class creative direction delivered through the use of the reputation-ranked Victors & Spoils crowd" but stays mum on how exactly the crowdsourced creative department will operate.

In any event, V & S is eating its own dog food. The first line you notice on its web site (after the humble "Welcome To Victors & Spoils. Let's Change An Industry") is "Why does this site look so plain, Jane?" and the answer is: because the site design, the look and feel, and even the logo are being crowdsourced.

Whether crowdsoucing yields better creative results, who knows? It certainly is a differentiator. V&S COO Claudia Batten twittered that she got calls from five Fortune 200 CMOs in the first five days since launch. We will follow this one closely.

October 27, 2009 9:25 PM PDT

Lessons for Nook from Zune

by Adam Richardson
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Barnes & Noble nook e-reader (Credit: Barnes & Noble)

It's busy times in the e-book reader world, with Barnes & Noble launching Nook, Plastic Logic making noise about a new Que reader (no doubt to counteract B&N's announcement), and Amazon lowering prices on the Kindle.

The Nook is the device getting the most buzz, having been launched a few days ago. It's white, has an e-ink screen, and is priced at $259, all like the Kindle. But it also adds a nice color touch screen "strip" below that is used for browsing and buying new books. It's an interesting of-the-moment alternative to the Kindle's keyboard.

The Nook's biggest distinguishing feature is its ability to wirelessly "lend" e-books to another Nook user for 14 days. During that time the lender cannot read the book, just as if they'd handed over a physical copy.

This is very reminiscent of the sharing feature Microsoft built into Zunes from the start, in fact this was one of the Zune's biggest distinguishing characteristics from the iPod. However, it did not help the Zune get above single digit market share. So is lending (or borrowing) really a feature that people care about?

I think the Nook has a couple of things going for it that didn't work for the Zune.

1. The Kindle isn't a monopoly
The Kindle, on which I was unduly harsh when it first appeared, has been the most popular e-reader. But it does not yet have the massive market presence that the iPod did by the time the first Zunes came out. (Amazon has not released sales numbers, but TechCrunch estimates it somewhere north of a million.) This matters because lending and borrowing are only attractive if you believe there will be other people near by you whose taste you trust to borrow from.

The tide was clearly against the Zune by the time it came out, which did not give consumers confidence that there would be other Zune users to get music from. In that case, it was just safer to stick with the leader, the iPod.

2. Books are better for short-term sharing
Music is something that, if you like it, you will want to listen to for a long time. The Zune has quite strong restrictions on how long somebody can listen to the song after they first borrow it, and for the lender not all songs can be shared. This makes for a suboptimal experience for the borrower, and frustrating inconsistency and confusion for the lender.

However, with many books a single read will do, so a limited borrowing time is less problematic. It's why libraries worked for so long. (I'm not sure if the self-destruct on borrowed books starts from the time of lending, or the time of first reading. From a reader's perspective, obviously, the second is preferable since with our busy lives it might be a while before you get to starting a book.)

But Barnes & Noble should also take a lesson from Zune and apply the lending rules universally across all titles. Don't let happen what happened to Microsoft where the studios placed restrictions on certain songs and artists who were hot at the time. Barnes & Noble is in the fortunate (for them) position, however, that book publishers are in a much weaker state than music labels.

nook lending graphic

I can't help wondering if Barnes & Noble is pitching the wrong angle of lending, though. Lending is altruistic, whereas borrowing is selfish. If I'm a prospective Nook buyer, I'm more thinking about what's in it for me than how I can be beneficent to my fellow Nookies (Nook owners).

October 7, 2009 9:40 PM PDT

NPR hosts unique Digital Think-In with Silicon Valley thought leaders

by Tim Leberecht
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Forgive me but I have to plug something my company (Frog Design) is involved in. I'm only doing this because it is such a neat event: In collaboration with Frog, NPR will host a unique Digital Think In this Friday in our offices in San Francisco, bringing together 60 thought leaders at the intersection of media and technology to explore new approaches to content creation, distribution, and funding for NPR and NPR member stations.

Hosted by NPR CEO and President Vivian Schiller and Digital Media SVP and General Manager Kinsey Wilson, the Think In will harness the collective expertise and creativity of an exceptional group of entrepreneurs, executives, and innovators. Participants include leaders at the leading edge of technology and media innovation from academia, venture capital, internet design, public media, social media, and research. Notable participants contributing to the day-long brainstorm include: Craig Newmark, Founder of craigslist; Reid Hoffman, Chairman and co-Founder of LinkedIn; Roger McNamee, Managing Director and Co-Founder of Elevation Partners; Chris Beard, Chief Innovation Officer of Mozilla; Krishna Bharat, Principal Scientist and creator of Google News; and Sue Gardner, Executive Director of Wikimedia Foundation, among many others.

The Think In will explore five main topics that are significant to NPR's ecosystem and its future: social media and connection to the audience, the organization's national network of more than 800 stations, the potential of its open API, expansion of platforms, and its diversified revenue model. After an NPR overview and an opening session, participants will break out into small groups to develop concepts that NPR can incorporate into its organizational roadmap.

The event will be live-blogged and the Digital Think In micro-site will feature live video streams of the opening and closing sessions. In addition, attendees will be tweeting the event throughout the day using the hashtag #nprthinkin. NPR's Andy Carvin will be posting to YouTube and Flickr under "nprthink," and updating NPR's Facebook page.

Join the NPR Digital Think In (remotely)

September 27, 2009 7:30 PM PDT

Are writers selling out to marketers? Alain de Botton's "Heathrow Diary"

by Tim Leberecht
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(Credit: LA Times)

For one week, Swiss author Alain de Botton was living the life I've always wanted to live. As the first-ever writer-in-residence of London's Heathrow Airport, he was working on his new book on site, observing, documenting, and philosophically charging the emotions and motions of the two arguably most interesting things in life--people and planes--in transit, in situ.

My own fascination with airports started at an early age thanks to the location of my parents' house. I grew up with planes taking off and landing at the nearby airport, and as a student I spent one summer vacation working as a baggage handler on the tarmac. Ever since, aircraft noise makes me feel at ease, and if I could, I would become a permanent tenant of Narita's Star Alliance lounge, where I would watch planes all day.

Airports have also long piqued the interest of artists of course--from Brian Eno's "Music for Airports," to Steven Spielberg's "The Terminal," to 747-turned-designer hotels. Exhibiting equally the technical routines and the emotional excesses of 21st century civilization, airports serve as mundane settings for the dramatic and dramatic settings for the mundane--de Botton, as Heathrow's writer-in-residence, set out to capture both.

The assignment was simple: De Botton was commissioned by the British Airports Authority (BAA) to spend a week in the middle of Heathrow's bustling Terminal 5 and write about life at the airport. He got his own desk, was awakened by Air Canada every morning, and immersed himself into the airport logistics while living his usual ascetic life (judging from all photos, he wore his signature blue shirt all week). Most of the time he observed and conducted what design researchers would call ethnographic research--knowing that you can best study human behavior, on any given scale, when you're close enough to the action but not part of the commotion. The personal union of researcher and writer raises some interesting questions: Where exactly do you draw the line between observation and interpretation? Where does research end and authorship start? Is research even possible without storytelling?

But these are technicalities. Of bigger concern for reviewers appears to be the "precarious line between creative independence and commerce," as the Guardian calls it. Blog site Gawker, among others, was fast in chastising the unconventional book deal as a shameless and rather desperate PR stunt, but the alleged cynicism reflects more poorly on the critics themselves: Isn't the greatest cynicism of all to look for the cynical in all things? For the record, de Botton insists that BAA gave him complete editorial freedom and that his writing was thoroughly subjective and as unbiased as it can possibly be. He is not the first writer to experiment with commercial book mandates (bestselling author Fay Weldon shocked the arts world in 2001 when it emerged that her latest novel had been sponsored by Bulgari) and smart enough to know that his "Heathrow Diary" project might stir up a controversy. It would have been much safer, from his PR point-of-view, to not pursue it.

Yet de Botton's interest in airports seems genuine: "There are many places in the modern world that we do not understand because we cannot get inside them," he told the Guardian. Moreover, he believes the project is philosophically sound and in fact truly innovative as it revives an old tradition of underwriting: "That one of the largest organizations in the UK should take an interest in a book is almost quaint, like sponsoring a poet," he said. "On behalf of my fellow beleaguered writers, it's nice that writers seem to matter."De Botton already has plans for the next underwritten project: "I'd like to be a writer in residence at a nuclear power station."

And sure--why not? I think we have to overcome the notion that a distinction between marketing and publishing is still possible. Herman Miller's See magazine was one of the most artful and best-curated print magazines out there, Strategy + Business by Booz is one of the sharpest business publications, and there are countless other examples of high-quality corporate publishing. What is wrong with the idea that not only marketers need to be good writers, but writers can be good marketers, too--for the common good of public life? Brands, advertisers, and PR agencies shape the cultural fabric of our societies as much as museums, galleries, artists, and writers do--if the mechanics of their complex interactions are more exposed these days, this can only be a good thing. As long as the involved parties' agendas are transparent--as they were in De Botton's airport project--readers can judge for themselves how valuable they find the products of such collaborations: there is no free lunch, there is no free content, after all.

Aside from that, it is naïve to assume that PR agencies and brand marketers are all evil and unconditionally push for a lopsided, overwhelmingly positive expression of their brands. By now, most of them are happy to tune into the choir of conversational marketing evangelists who understand that authenticity trumps news which may be good but lacks credibility. In this vein, Dan Glover, creative director at Mischief, BAA's PR agency, told the NY Times that "If we funded a brochure that said how wonderful the airport was, people would switch off because they'd think they're being marketed to." Instead, he added, the Heathrow Diary campaign sought to stimulate "branded conversations" among travelers "through the experience of seeing a top literary figure at the airport--and potentially being a character in the book--and by receiving an exclusive copy to read on your travels. The overarching objective is to make a passenger's time at Heathrow the best memory of the trip."

It all goes back to the pillars of "meaningful marketing": Add value, create a (social) event, be a change agent, engage the audience, don't market products, produce! Clients turning to artists and storytellers to create "meaning" for their brands intend that the return-on-meaning transcends the original assignment--the wealth spreads and generates a "meaning surplus."

In this case, De Botton wasn't hired to write an image brochure for an airport whose bad reputation is well known. The "Art of Travel" author took advantage of the opportunity to study one of his favorite subjects first-hand, and rather than just bitching and moaning about the notoriously inhumane experience of having to spend time at Heathrow, he and his client actually did something to make the experience better for travelers. The result of his work, "A Week at the Airport: A Heathrow Diary," was published on September 24, and BAA is distributing 10,000 free copies of the book to Heathrow passengers (it is not devoid of irony to create artificial scarcity by limiting the book's free distribution to one of the world's most frequented travel hubs). Afterward the book will be available for sale through Amazon's British Web site and traditional bookstores. De Botton's "Heathrow Diary" benefits the publisher, the writer, BAA, and travelers--a win-win-win-win and a story with a happy landing.

Read excerpts from "Heathrow Diary"

[Image credit: LA Times]

September 26, 2009 4:09 PM PDT

Report from the IDSA Conference: The End of an Era

by Tim Leberecht
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by Jon Kolko, Associate Creative Director, Frog Design

I've just returned from the IDSA conference in Miami, and I'm both convinced that, in ten years, there won't be an IDSA conference to go to - and that isn't a bad thing. I don't mean this in a disparaging sense; I enjoyed the conference, caught up with old friends, made new friends, and learned a bit. But a trend that I've observed at past conferences is only more evident this year, and it's patronizing to continue to skirt what is becoming increasingly obvious: the IDSA has served a valuable role in the evolution of design as a professional discipline, and has helped advance the field to a point where the IDSA is now essentially irrelevant. Design has outgrown “Industrial Design”, and a professional organization cannot exist only in the form of self-maintenance.

I'll explain, as I realize this may come across as both pretentious and self-righteous (and I intend it to be neither).

The discipline of industrial design has had a long history of form giving, and the creation of objects and artifacts that relate to the incidental parts of life. Industrial designers make stuff, and the making of stuff is a commodity - a profession differentiated only by cost. That is, there are a huge amount of capable industrial design firms in the world (and increasingly in Asia), and these firms are only differentiated by the cost of their services. A commodity market affords only limited growth and only limited market share, and can never truly sustain itself in any meaningful manner.

The other major capability industrial designers are able to bring to a project is their understanding of, and abilities with, materials and manufacturing/development processes. This is advancing in the opposite direction of a commodity - it's becoming increasingly specialized, increasingly intellectual, and incredibly complicated. The complexity associated with new material introductions and advances has such deep tacit knowledge, and such strong connections to fundamental issues of chemistry, that it can't continue to be "owned" by designers - it needs to be managed and coordinated by scientists (which was the implicit point of Dr. Andrew Dent from Material Connexion, in his excellent keynote presentation at this very conference; I feel the irony was lost on much of the audience, unfortunately). In this way, while material sciences will absolutely not become commodities, they also will soon be out of the grasps of designers.

In addition to these changes in skillset, there is a trend towards the inclusion of digital components, controls and networked services in products that have traditionally been isolated, single artifacts. These less tangible aspects of the products need to be designed, too, and so the designer who was typically responsible for developing a form and function for an item must now concern themselves with systems, services and more complicated - and arguably, more intellectual - facets of design. The major corporations that are embracing design as a true innovation catalyst realize that differentiation requires specific attention to the design of these systems and the utilization of networked services.

And so we’ve reached a point in the history of technological culture where the IDSA has served its purpose, and is now obviously struggling to define what to do next. This is evident in a program filled with discussions of rendering techniques and in an exhibitor hall full of plastics and injection molding vendors; it’s obvious in powerpoint presentations that struggle with basic concepts of human behavior and interaction, and in hallway conversation of designers who aren’t sure how they can ensure they have a job in the “new economy” of the future.

Steve Portigal summed up my feelings nicely, in a blunt - but absolutely dead on - way. "The IDSA is the recording industry or car industry of professional societies". He's referencing a long history of positive contribution, but an increasing lack of relevance, and a desire to hold on to how things used to be - a feeling of tradition, and a celebration of an industry. IDSA, like GM, is struggling to evolve, but with many of the same leaders at the helm and with many of the same traditional viewpoints of how design should be.

Yet there's no shame in celebrating the past and simultaneously building a new, and very different future. The organizational body of IDSA is not the appropriate organization for shepherding the massive change required in industry and education, and that's OK, as they've already done the hard work of laying the groundwork upon which this massive change will come. I look to other professional organizations to lead the way, and I hope those who built the IDSA – and the field of mass-produced artifacts – can look happily at the fruits of their labor, and allow the organization to proudly retire.

September 19, 2009 11:04 AM PDT

London Design fest celebrates design art, business

by Tim Leberecht
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Several colleagues of mine are in London this week to unveil the special TEDGlobal issue of our design mind magazine in a very special TED Salon on Monday, with the title "More Substance of Things Not Seen." The event will be co-hosted by frog design and TED, and moderated by Sam Martin, editor-in-chief of design mind, and Bruno Giussani, European director of TED.

It comes in handy for the frog delegation that this is also the first week of the magnanimous London Design Festival, an eclectic assembly of design-related programs, exhibitions, and parties all over town. ... Read more

September 17, 2009 10:17 PM PDT

Follow up to 'Good-bye iPhone...'

by Adam Richardson
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My last post about "reverse switching" from an iPhone back to a BlackBerry generated a lot of great comments that I believe warrant a short follow-up (much shorter than the original post, I promise). I can't address all the comments, but here are a few thoughts.

For the record, in my post, I'm describing 3.1 software on an iPhone 3G.

Yes, the 3GS actually speed some things up, such as the camera; however, in my view, the iPhone's speed issue is not one of CPU horsepower, but because of its fundamental interface architecture. As I say in the article, the paned, step-by-step interface is "easy," but it puts a limit on how fast it can be used, simply because of the number of steps it requires to perform a task. Apple can speed the CPU all it wants, and it will only make a marginal difference to the key usability index of time on task (the amount of time it takes to start and complete an activity).

(As an aside, on the topic of doing great user interface with a low performance device, here's an old post I wrote about the UI design of the Palm. Palm beat the experience provided by Windows Mobile phones of the day, even though its CPU, memory, and screen were far inferior.)

As some point out, there are things that can be done with a jailbroken phone that address specific issues. However, I'm using a work-issued phone, so I'm not going to jailbreak a phone that doesn't belong to me. Besides, jailbreaking is something that only a tiny percentage of users will risk doing, or even know about. You may say I'm a BlackBerry power user (I don't really think I am; there are people who know way more about it than I do), but things like knowing one's way around the menu are way less geeky than jailbreaking. ... Read more

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About Matter/Anti-Matter

Tim Leberecht and Adam Richardson both work for Frog Design, a consulting firm specialized in designing innovative products and services for Fortune 500 clients. On the Matter / Anti-Matter blog, they engage in a debate around questions they face day-to-day in their work, using convergence/divergence as a lens through which to look at the pressing issues in business, culture, and technology. What makes a successful convergent product or a successful divergent innovation? Is convergence a myth that users don't really care about, or is the current state of convergence just not satisfying enough for them to embrace? How much divergence of innovation is good, and when does it just become confusing? How do you stay on top of people's ever changing needs and wants?

They are members of the CNET Blog Network and are not employees of CNET.

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