From the monthly archives:

February 2010

Business should buy nation’s broadband

by nick on February 28, 2010

Akamai’s ‘State of the Internet report’ shows the average UK broadband speed is 3.5 Mbps and just one in 12 surfers are achieving 5 Mbps and above. At present, South Koreans can get speeds of up to 100 Mbps and Soth Korea plans on raising the bar further with a tenfold increase in their ultra broadband to 1 Gbps by 2012 (200 times faster than our ‘fast’ 5 Mbps).

Whitehall’s shoot-for-the-stars plan? Well, their Universal Service Commitment wants every postcode in the UK to get a bare minimum of 2Mbps by 2012 (yep, just 2Mbps). In order to install this they’re talking about a 50p per month tax on landlines (cumulatively that’s around £1billion).

£6 a year to get a fibre optic line everywhere probably sounds like a reasonable deal. But the naysayers point out that the poorest – and least likely to take advantage of it – will be funding the speed and convenience for the wealthier.

It could be argued that if broadband is so important for the future of the UK’s infrastructure then our Government should step up and make funding available. But let’s be honest, as our economy’s gone to hell in a hand-basket, the IT slush fund disappeared into RBS long ago. No, those who want to use the infrastructure to become more successful need to take care of things themselves – nobody is coming to help (at least not any help worth having).

That’s where I think they’re looking to the wrong group to fund this. There’d be more traction and less voter pushback for a Business Broadband project (that’s my new label for uber-broadband).

UK business should be canvassed to put its hand in its pocket. Granted, now isn’t the best time to ask businesses for a handout, but when is?

Many large businesses operate on leased lines (such as banks) and don’t suffer the same bottleneck problem of demand we do but they too would benefit from faster coverage and the chance of increasing customer interaction.

This is an investment in their future, not a cost. As such, perhaps we could be allowed some accountancy leeway where we could do some fixed asset right down.

Contributing to it could be thought of like a church collection: the plate goes past everyone but only those who wish to partake do so. That said, we’d need the stern, furrowed brow of a priest-like character to make sure we all give fairly and not shirk out of our cumulative responsibility.

That’s where I see some A-list business folk coming in (think Alan Leighton, Alan Sugar, Deborah Meaden etc). These ‘celebs’ could form a steering committee. Their real value would be in persuading CEOs and proprietors to part with cash; they’d push the hard sell by demonstrating an understanding of their difficulties and a vision of the future.

Branches of request:
Peer levy – perhaps by business category e.g. shop keepers donate £500p.a. Perhaps by staff number (e.g. £75 per employee) or by turnover (e.g. £200 per £100k t/over).

Profits – pressure should be levied at those who stand to gain the most. That’s Internet service providers, search engines, telecoms companies and larger multichannel retailers for a start. Get the telecoms guys to dig as deep for this as they did for their 3G licences. Google donated $2 million towards the upkeep of Wikipedia this month because the strength of one affects the other.

Individual – the pot would also take private contributions. If Robbie Williams wants to throw in £100k to get a better Spotify connection it’s ready and willing to accept.

Google launched the Fibre for Communities program this year in the states. Essentially they want to pair up with providers and show the world that super fast broadband can get to the masses. The difference with a partner like Google is they’ll do so much of the heavy lifting. Personally, I’d take my Universal Service Commitment to the shredder and have Mr Mandelson on a plane to California (with his new pot of business money), persuading the Google team that the UK should be the first outside the USA to benefit from their new insight.

Have I got it all wrong here? If not, what would you and your organisation be willing to give over the next three years (if anything)?

{ 2 comments }

New news

by nick on February 22, 2010

You know all too well that traditional journalism has changed. We’ve read the Huffington Post and heard about the Google-Murdoch punch up. The journo genie has left the bottle.

So when change has taken place in your industry and the future indicates far more, what are you expected to do? Unsurprisingly Gary Vaynerchuk advocates jumping the sinking ship. What’s new is his push to start a collective of freelancers building a new centre of journalism.

From his inspiring Crush it! “…those who possess that rare combination of fiery entrepreneurial spirit and reporting chops could team up and form a killer online news service without any biz dev partnership at all. They’re going to really win big.”

I completely agree. No, you don’t need to send four people to New York to cover a plane landing on the Hudson. Or send a John Simpson wannabe to a war torn corner of Asia. Instead, save the airfares, expenses, insurance and security costs by running original, insightful and discerning thought pieces, commentary and analysis. Suddenly, a handful of talented ladies and gents are delivering true fidelity.

Thanks to some sharp printers you can even go old school and get a paper run along side your site. The Newspaper Club will print 12 page tabloids in quantities as low as five!

The web has disrupted nearly every vertical on the planet and sent the established incumbents into a spin (obvious example: the Royal Mail). With so many undiscovered opportunities, which will you choose?

{ 0 comments }

Packaging sell out

by nick on February 15, 2010

The cigarette brand Windsor Blue is modernising their packaging. They’re “now the number one choice for above king size length adult smokers downtrading into the economy priced cigarette sector. The new pack design will build on this success,says Rachel Smith, brand manager.

Compare this to the comments Seth had for Madecasse chocolate and their packaging of ethical African chocolate.

Both products demand a growth in sales to justify the cost of the design and reprinting. Given that cigarette and chocolate sales have proven buoyant in times of recession, which design gig would you rather boot up Photoshop for?

At first look ethical farming versus death is a no-brainer. Yet perversely, imagine how seriously you’d take the flair of the girl who lifted Windsor’s sales by another 15 points thanks to a redesign.

{ 0 comments }

Brands help sell brands

by nick on February 10, 2010

If a salesman turns up for a meeting in new Porsche 911, he’d better be flogging footy players, not underwear or umbrellas to BHS.

Most salespeople understand the principles of the game: set a tone that’s both professional and in line with your brand and product offering.

That’s why I’m amazed at business people who rock up to meetings in £40k cars and then produce cheap, battered, old laptops from leather briefcases.

If you’re selling top-end tyres, tiaras, towels, till systems or toothpicks, surely it’s unwise to do so with dated equipment?

Salesmen want you to procure something with an intangible benefit associated with brand equity (think perfume for the classic example where a tiny fraction of the cost goes to production). My problem is they often do so while displaying a lack of desire themselves. Yes it’s shallow. And yes, playing the game is a branding exercise.

It’s the equivalent of a builder turning up at your house in a beat up old transit, while he tells you how much quality and added value he brings with his £30k conservatories.

Cheap is perfectly understandable – frugal is fine – but when you’re selling luxury, quality or style, know that you should display some yourself as well (let’s call it ‘acting out’).

Easy win: an £800 MacBook comes over way better than a four year-old Dell some folks would schlep around. (And, no, don’t kid yourself, it’s not JUST about the label.)

{ 0 comments }

Steptoe returns in social media

by nick on February 3, 2010

You’re having a conversation with a company Big Wig, perhaps an interview, and she asks, “What do you think of this social media phenomenon?”

Well, imagine it’s the 1960s. Horses pull milk floats, colour TV is just around the corner for most households, shillings are in your pocket and the Bay of Pigs has petrified the world. In between watching Steptoe and Son and listening to Elvis or the Beatles, someone asks you, “What do you think about this telephone phenomenon?”

With 20/20 hindsight you could’ve said, “It’s going to be amazing in ways we can’t yet imagine. The infrastructure we and other countries are laying now will be used for revolutions in communications and commerce that sound like science fiction if we talk about them now (think fax and Internet). User take-up will be so overwhelming that the lines will be stretched to breaking point and the ‘phones themselves will become like your watch or wedding ring – always with you. In short, phones will become an integral part of our personal and business lives.

The ‘60s Big Wig would nod sagely, probably with a slight smirk, and take the conversation elsewhere. But the answer to the question if you’re asked tonight at dinner is that, “History will repeat itself here…”

{ 0 comments }