London’s Tech City or the Art of Navel Gazing (?!)

This is not specifically about mobile. It is more about the blinkered view of people living, working, reflecting on certain constrained areas in this world (and, no, for once I am not looking at you, Silicon Valley). And it is a cry for my adopted country (and county) to start getting things right…

London, oh London…

A writer way superior to me, i.e. the inimitable Monty Munford (that is a compliment, by the way), wrote a note about a report by the good folks from GfK about the challenges of the centre of horn-rimmed glasses and checkered shirts that is otherwise known as Shoreditch, the London former no-go zone come tech-hipster-central and biggest adversary to Berlin (in Europe, that is), in other words, the British equiavalent to the Valley.

According to the GfK survey, who queried a full 141 people, the biggest challenge is finding talent. Well, doh, given that London has one of the highest costs of living in the universe and beyond. The second biggest challenge was access to capital (generally true but, well, tough luck if you’re trying to flog hotel-room-finder #47).

Things May not Be What They Seem…

Now, you see, I am living and working in the North-West of England (which feels, when you live in Shoreditch, something like North Dakota when you live in the Valley). The difference is this: the rather affluent area South of Manchester is a mere 1:40 hours by train away from London, which is roughly the equivalent of going from Sunnyvale into SF – if you’re lucky). Now, them Londoners still things it’s North friggin’ Dakota… So whenever I tweet a picture of the view from my home office (our “proper” office is even cooler) people regularly go ooh and aah about how great I have it. And you get proper big city grid, too. So the question is: what’s stopping you?

The thing is this: the NW of England boasts a few goodies (and the McLaren F1 dealership down the road in a town of 15,000 is not even one of those – maybe it becomes one after your big exit): the University of Manchester has the Kingdom’s largest Physics faculty, there’s also a UI lab and the neighbouring universities in Salford, Lancaster, etc. all have run digitally-focussed courses for quite some time with great success. Manchester now also has MediaCityUK (yeah, someone with an English degree should have had a look at that name) with the BBC and tons of media production being there. The region also is home to some of the revolutions in video games (Psygnosis, Rockstar Leeds, Infogrames, EA’s studio in Warrington [now closed] and Travellers Tales [of LEGO Star Wars fame]) all being here. Chillingo is here. I-Play and Mforma were (but then, they “were” anyway). With Astra Zeneca et al, there is also “real” business up here. Tons of agencies etc. All this produced a surprisingly large sector or digital citizens “oop North”. When you sit in the train to London, there are plenty of fancy Macs being hammered on to get the latest RFP, pitch, proposal sent out via the train’s dodgy WiFi en route down South.

Then, of course, there’s the history. It was Manchester where capitalism proper was born, forgot? And there’s plenty of that to be had. Old Abe thanked the workers of Manchester for it – as there might not have been an independent US otherwise… (I stop here as this would be a huge post on its own). But you have more than cotton and silk (yes, I live in Macclesfield, the official Western end of the Silk Road) and, more recently, footballers (soccer players for you Americans). Because, you see, there’s them coders here. And designers, programmers, and some such thing. They’re rare anywhere, mind you. But they cannot only be found in and around Shoreditch. And it is because of that I would plead to stop this navel-gazing. It doesn’t suit you, London (or anyone else – it’s slightly embarrassing, you see).

Spread Out!

So, my dear fixie-riding, horn-rimmed-glasses-wearing, checkered-shirt-flogging Hoxton friends: give it some thought… There’s even fancy coffee now, by the way. Try ManCoCo or Has Bean (a little further South, admittedly) for your artisan fix. Oh, and did I mention you can do kerbside to gate in 15 minutes at MAN (try that at LHR)?

And to Mr Cameron and friends (and to Mike Butcher, Russell Buckley et al): your country goes beyond Marlow or (for Mike) Berlin (that’s San Jose and NYC, respectively, for you Valley folks).

Quick Note on Blog Design

You may have seen that I changed the blog template (still all cheapo i.e. free WP stuff) as I thought the old one was somewhat dated (yes, Microsoft, you are leading the new design revolution, it seems!).

I am toying with a couple of ideas but want it to be super-simple and clean. Also, I do not use this (nor plan to use this) as a place to generate, induce, solicitate or drum up any business (which is perhaps silly, but hey). So, no, I do not need templates that come with shiny “here’s why we serve you best” stuff and such things. The only thing I feel partial to is my own little domain. So anything works really. If you have better ideas or just ideas, let me know…

PS: oh, and, no, I don’t like that mugshot that this particular template adds, either…

giffgaff: Doing Good! More to Do?

All the way back near when it was founded, I wrote a post about giffgaff, an MVNO with a twist running on (and actually owned by) the UK operator O2 (which is of course now owned by Telefonica). The twist with giffgaff is that it termed itself as being “people-powered”. Nice buzzword, huh? When I wrote that post, it was pretty much on the basis of early news, PR and not much more. Now, though, I know better what it is because, you see, I just swapped the phone deals for my two children over to giffgaff (away from Vodafone where they were on a 30-day-rolling contract).

No Frills

So, here’s what it does (and, more significantly, doesn’t): giffgaff doesn’t have shops, it doesn’t have sales reps, call centres, etc. In other words: it doesn’t have much overhead. It does have a network (not its own, it piggy-backs on the mothership, i.e. O2), simple tarifs, very low prices and the quickest way I have ever ordered any phone product online.

Beating the Power Law of Distribution (?)

But how, do you ask, can they run a network with all its customer queries, moans and whining, small and big problems? And that is exactly where I originally voiced concerns: You see, they use fora instead. If you have a question, just post it to their forum and the users will answer. According to the power law of distribution, this is a tricky one as only very few users contribute a lot and most contribute nothing. However, by the looks of it, they answer a) more quickly and b) more competently than a poorly paid, poorly trained, probably somewhat frustrated (whatever happened to the glistening career) call centre worker. The MVNO has a programme for users encouraging to participate in the community. They will earn points (convertible in additional phone credits) for spreading the word (marketing) and helping out other users on the fora (customer service).

So (and here’s a theme for me): giffgaff effectively used some basic tools from the social and commercial toolbox to drive customer acquisition and customer service: incentivise people and, in doing so, make sure you align their commercial interests with your own.

And whilst there seem to have been growing pains, it seems to work more or less really rather well. And all this for £12 per month for a “bucket” of 250 minutes, unlimited texts and unlimited (!) data. Can’t beat that!

Is There More?

This then got me thinking: what if they would expand on this bucket (and, perhaps, forum) ideas and start customizing them for the more “discerning” user. Something for SME for instance, travelers, professionals, etc. Higher bucket prices but better tailored for business needs. Premium buckets for, say, dedicated concierge services (the crux is that the customer service required for that is quantifiable and directly accountable). With the basics still covered (cf. supra under “No Frills”), it should still be possible to run the basic service at similar margins (and note that I assume that they have positive margins) but start building in the fatter bits of the market in return for the higher reliability, security and no hassle that business users require. The thing is, you see, they do not require tedious and generally hopeless customer service over phone lines you have trouble even finding or reaching (20 minute waiting time is not rare as we probably all know).

Such a service would probably not for everyone but. You would have to be comfortable to transact your business online (but more and more people – and, yes, probably 100% of readers of this blog – do so anyway), you would arguably have to have at least a basic understanding of some tech issues (again, cf. supra) but, hey, you would be targeting the growing part of the economy, i.e. the one that either is purely digital or successfully leverages (terrible word, I know) digital outlets for its business. Bingo!

There Are Blueprints Galore!

Come to think of it: it is exactly how so many of the online stalwarts disrupted traditional businesses. And it seems almost ironic that this has not yet happened in an industry such as mobile telecoms! Amazon (first books, now almost everything), Zappos (first only shoes, now part of Amazon and, well almost everything), eBay, PayPal, First Direct and any other number of online banking services), Charles Schwab, eTrade and those folks (stock trading), Okado (groceries), Money Supermarket, confused.com, etc. (insurance brokerage), etc., etc., etc., etc. Virtually all e-commerce business models rely on realizing higher efficiencies through digital scale combined with lower overheads.

And virtually all of them originally were told that this was a niche for a few, that only geeky people with no money would use it. And in virtually all those cases, the doubters were wrong. So, then, O2, let your “gaffer” (that’s the title the giffgaff CEO goes by) lose and go for it. There’s money to be made (and I might just be persuaded to leave Vodafone, too).

To the others (Vodafone, are you listening?): it’s not too late. Get in whilst you can!

Game Monetisation Europe

Will you be in London next week? If so, make sure to head over to Tower Hill to join me and tons others for the Game Monetisation Europe conference. I will be participating in a panel on how to approach multiple platforms. There are a lot of very worthwhile speakers for you to listen to (in case you’re bored by my rants, that is… ;-) . Here’s a few of them:

  • Ian Livingstone (Eidos/Square Enix, Games Workshop, etc).
  • Teemo Huuthanen (Rovio)
  • Tommy Palm (King)
  • Ed Rumley (Chillingo/EA)
  • Peter Edward (PlayStation)
  • Alex Bubb (Nokia)
  • Oscar Clark
  • Patrick O’Luanaigh (nDreams)
  • David Engelberg (Halfbrick)
  • and lots more…

It should be interesting and fun and, besides, London in spring is rather cool anyway! :)

 

Can PacMan teach Maths?

Here’s the podcast of a rather intriguing panel discussion I participated in at the Mobile Fringe Festival earlier this year in Barcelona. Moderated by the indomitable Russell Buckley (the big daddy of mobile marketing), I was joined by Vincent Hoogsteder (Founder & CEO, Distimo) and Alina Vandenberghe (Head of Mobile and Gaming, Pearson) discussing how elements of games and, indeed, mobile technology can aid educational demands – not only for the iPad-clad haute vollee of the first world but also in regions where traditional schooling is a lot more challenging.

I wrote about the topic previously and it is one of the areas I take an increasing amount of interest in. Have a listen, let me know what you think.

I tried to paste a fancy Soundcloud widget but this didn’t work out, so go listen to it here.

Coming up: a week in the hipster capital

Not next week but the week after, the world (well, a certain horn-rimmed-glasses-wearing, Google-Glass-adoring, game-controller-wielding, funky-t-shirts-wearing subset thereof) will come to the self-proclaimed world capital of hipsterdom that is Berlin to talk digital. And I will go, too.

There are tons of events to choose from, mainly everything around the German Gaming Days (“Deutsche Games-Tage”) with a couple of conferences (Quo Vadis, a.maze) some more events (the Gamefest at the German Video Game Museum should be cool) and the German Gaming Award (“Lara-Award“).

Then, of course, there is Next Berlin, one of the bigger events for new, high-tech, start-uppy things. It is packed with big names, cool start-ups, competitions and parties. If you are in this space (and you reading this blog suggests you are) and are around, come by.

Here’s a Challenge: Marry Mobile & Local…

So, what if you could effectively combine mobile and local? As in asking someone if there is a free washing machine in the launderette down the road (before you haul your laundry down there), if Lady Gaga is on stage already (or if it is still that pesky opener), that sort of thing. Sounds cool? Yeah. Have we heard about this before? Hell yeah. Do you know of anyone who has solved this successfully? Erm…

The funny thing is we all know how important it is. We all use mobile local services all the time: the use of maps and navigation (for one thing) have changed tremendously by the introduction of GPS into mobile phones. There is a plethora of services we all use that use it. However, they barely seem to scratch the surface as yet.

MoboQ to the Rescue?

But, alas, help is on hand. There actually IS a service that is doing just that: it WILL tell you about that washing machine, about free parking slots, about almost everything you want to know. And they have, well, 100,000 users so far. So not Twitter but, alas not Color either (they allegedly had 400,000 users before they shut down). But, hey, they didn’t raise 41m bucks for nothing either… And, well, that means that there might just not be someone in just my neighbourhood just now, huh?

It gets better (no, worse) though: Because, if you ask just who that mythical company is, the answer is not the former employee # 21 from Google an unknown Facebook rockstar engineer or, sorry, a Stanford nearly-grad, either? No. The service is called MoboQ and is operated by Sina Weibo, the “small” Chinese provider with some 400m users on this Twitter-esque service.

(And, no I did not pick this up myself. Hal Hodson wrote about it in the New Scientist. Really cool magazine, you should subscribe to it! [and, no, I don't earn a commission if you do])

Unicorns are Hard to Breed

Sooooooo: 100,000 users out of 400m and the service has been operating for a year now. That’s a conversion rate of, what, 0.025%. Not really a landslide victory then, huh? And that is the challenge of this unicorn of all mobile services: they are really hard to breed (scil. scale).

Why is that, you say? Well, because they are, well, local. That is to say, you need to convince a fair few people in your area to use it. And unless you have a really successful SXSW launch (the stuff of legends, I know), this might not be that easy to do. Mobile & local each work on the combination of total usage plus really smart algorithms. This is why I am blogging about mobile stuff: huge scale there. This is why Yelp, FourSquare, you name it thrive: huge scale there. But the moment you need real-time response, you need an insane amount of usage to be able to make sensible use of algorithms. I would posit not even Facebook can do this (oh, wait, they try: there is this thing called Nearby they do. Heard of it? No, me neither…)

Help at Hand?

The New Scientist offers a couple of soundbites from execs involved in the various programmes and all sound a little stale, to be honest: “people will use it once they become aware of it” said someone from USC. Really? Well, I don’t know.

Now, I agree that this is somewhat of the holy grail of combining two hugely powerful concepts but the big spanner in the wheels is as per the above: tough to algorithmitise (is that a word?) and possibly slowed down by privacy concerns and queries as to the value extraction formulae applied: what is in it for me if I am over-sharing local information about my very own locale; I know my own environment, no need for me to reciprocate then… Because, you see, 95%+ people do not actually race around the world that much other than on vacation. And isn’t the first thing they look for when they finally are on vacation either a drink or bliss uninterupted by digital hyper-connectedness? Just sayin’…

So I continue to wait for that killer combo app/service a little longer then, I guess. Sigh…