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Content in Context helps companies to define the market for their products and services, to identify customers and build the business pipeline, and to develop their content marketing strategies. By working with our clients to design, build and grow their business, our primary focus is to extract commercial value from unique assets, including knowledge, data, know-how, processes and transactional information.

#AngelCube favours B2B #startups…

Posted on September 1, 2015 by Content in Context

The latest intake to AngelCube‘s accelerator program presented at the recent Startup Victoria meetup event. It was interesting to see that all 6 pitches were aimed at B2B audiences, since I have heard several angel investors and startup advisers express a strong preference for end-consumer products (or those with 2-sided markets). Perhaps there is more appetite for enterprise solutions, despite the longer lead times for sales, and the challenge of strategies required to displace incumbant products.

Whether there is a new interest in B2B startups, or whether more founders are identifying B2B opportunities, there’s probably some further analysis to be done. Meanwhile, here are the 6 fledgling startups in the order they pitched on the night:

1. Peer Academy

Peer Academy aims to “change the way professionals learn”. It does this by offering students access to open enrollment classes via an online market place. The classes are conducted by facilitators and experts (“hosts”) who have been “screened” for quality by Peer Academy, with a focus on “soft” management and leadership skills.

Peer Academy hopes that students will act as “warm leads” for corporate sales, by taking their classroom experience back into their organisations, and acting as champions or brand advocates. With follow-up introductions to training and HR managers, Peer Academy then curates programs for corporate clients, by matching training needs to individual users.

I like the notion of “peer-to-peer” learning (although I presume that the hosts are expected to have more advanced and developed skills than their students), and there is certainly a trend for alternative learning platforms. At least one major bank has expressed interest in sourcing corporate training via Peer Academy, who take a 30% commission on course sales.

A huge challenge will be to engage corporate clients who already have established relationships with trusted training providers, or who have existing panels of approved organisations, or who outsource training procurement to third parties.

2. Jack

Workplace wellbeing is becoming big business ($5bn and counting?), and in the process, sedentary workers are in the firing line. According to Apple CEO TIM Cook, “Sitting is the new cancer”, and hence the recent fad/trend/fashion for sit-stand desks which is driving market interest in ergonomic solutions. The team at Jack have built a device that can monitor how much time people are sitting or standing, and even provide some feedback on user posture.

As you would expect, Jack uses cloud connectivity to monitor user activity, and to relay data via cross-platform apps and dashboards. It also uses elements of social media engagement and gamification, and has already launched a pilot scheme with several desk suppliers, as well as a paid beta at a well-known payments provider.

Customers will buy the device plus pay for a monthly subscription service. There is a direct competitor, but Jack claim their device can be retrofitted to any sit-stand desk. The unit price is much higher than, say a Fitbit, but since this is not a consumer product, Jack is confident it can sustain current pricing.

Finally, with the data it aims to collect, Jack reckons it may even be able to help reduce insurance premiums, although this will no doubt be subject to actuarial scrutiny, Work Cover and OH&S requirements, as well as data privacy issues.

3. Coin-Craft

In the professional services and consulting sectors, tracking project costs and resourcing have become highly demanding activities – witness the plethora of project management, costing, billing, ERP and time-tracking solutions on the market. Based on personal experience, the founders of Coin-Craft have identified a specific need among architects, and have built an all-in-one tool for Project Management, Cashflow Analysis and Resource Planning. Built “for architects by architects”, Coin-Craft is designed to help clients stay optimal, by managing staff over/under utilisation, and tracking cashflow projections.

The system also claims to integrate with third-party accounting software, and has around a dozen firms using the service, with another 30 in the pipeline. Although Coin-Craft have chosen a niche client base to protect their market entry, they claim the solution can also be adopted by engineering practices, graphic art studios and project management firms.

However, feedback from the audience suggested there are already similar, mature products that are tracking individual billable hours against specific projects, so Coin-Craft may need to work on their value proposition and differentiation.

4. CurveUp!

As social media and content marketing become more ubiquitous (if not more sophisticated), companies need to understand the value of their direct marketing spend. Mostly, they can do this via web analytics, e-commerce tracking, campaign conversions, and cost of customer acquisition. According to CurveUp! however, measuring the ROI of your PR activity is not so easy using “conventional” social media monitoring tools. For example, CurveUp! claim they can deliver tailored reports to show which blog post or article converted to a ticket sale for a concert or event.

Currently using web and online sources only, CurveUp! track mentions and link this to customer data. Some platforms, such as Instagram, are harder to track, and even via a possible API solution, it will only be possible to monitor the number of views and shares, but otherwise little or no data will be available.

However, at least one online market place has expressed interest, and CurveUp! has the potential to integrate with Facebook and Google, so that clients could possibly use campaign codes to track referral activity from mention to firm sale. Overall, the service will need to align itself with the ROI outcomes linked to PR campaign goals – which will vary between clients and markets, depending on organisational KPIs around brand advocacy, share of wallet, products per customer and customer satisfaction.

5. TribeGrowth

In a similar vein, the team at TribeGrowth claim to have built “artificial intelligence for social media marketing“. Their goal is to help clients build an audience and get customers, via the use of “intelligent engagement” to generate conversions.

Initially targeting startups, professional service providers and the hospitality sector, TribeGrowth offers a tiered monthly subscription service, and claims to be a (cheaper) alternative to agencies or even Twitter ads.

Currently in private beta (and so far, only designed for Twitter and Instagram), TribeGrowth focuses on audience growth by careful selection of connections and influencers. According to the founders, this is not “pay & spray”, but uses machine learning to refine audience outreach and engagement.

6. SweetHawk

Finally, and in what was probably the most technical presentation of the evening, came SweetHawk, which is building “voice for e-commerce”. I have to confess that, although I had previously heard about this product, I’m still not totally clear how it works.

In essence, it’s an outbound platform that enables companies to have more focused/targeted real-time conversations with warm sales prospects, namely people who are visiting their websites. Personally, I would find that a bit spooky, if I was browsing a site and suddenly a widget popped up asking me if I wanted to receive a call right there and then. Isn’t it a bit like stalking?

The business model is designed to offer tiered services in return for monthly subscription fees – depending on call volumes and functionality, such as workflow tools. I would see it as sitting somewhere between an outbound sales call centre and a SaaS-style inbound helpdesk solution.

On the plus side, I do see the opportunity to deliver superior and more responsive customer service, except that SweetHawk appears to be a sales and prospecting platform, not an after-sales or support solution. I’m also used to live chat tools that pop up on various software and other service sites I use, so I would probably engage with a similar offering if I was browsing to purchase.

Final Thoughts

While none of these pitches has so far demonstrated anything truly disruptive (but let’s not criticise them for that), they all seem reasonably sensible and logical solutions using a mix of digitally-driven technologies (cloud, mobile, social, peer-to-peer, data analytics) that we are all increasingly familiar with. So, rather than major game changers, I see each of them building on established platforms. By refining the potential that new technologies and business models are creating, they are tapping into better-defined client needs rather than taking a “build it and they will come” approach.

In conclusion, I was generally impressed by the 6 pitches on offer, although some of the presentations will no doubt be reworked in light of the audience feedback and Q&A, and before the plucky founders hit the investor road show organised by AngelCube.

The event was hosted by inspire9, and sponsored by BlueChilli and PwC.

Next week: More on FinTech – another look at data and disintermediation

Tourism: Time to Get #Digital

Posted on August 25, 2015 by Content in Context

In the latest State of the Nation report, Roy Morgan Research shone a spotlight on Australian tourism, an industry which has the potential to make a larger contribution to national GDP following the commodities boom. But the industry needs to get smarter at leveraging digital technology and embracing disruptive business models to ensure sustainable growth.

Melbourne’s White Night Festival (Photo: Paul Jeffers for The Guardian)

As the report highlights, digital is disrupting traditional operators through “automation and variable pricing of everything from hotel rooms to airline seats”, which combined with huge changes in media consumption “is impacting the very essence of the industry”.

What does this mean for the industry, and how should it respond? Here is a quick overview:

1. Tourism is a major contributor to exports and to GDP

According to data from the Department of Foreign Affairs and Trade, tourism generated over $14bn in exports in 2014, and is #5 after iron ore, coal, natural gas and education.

In particular, revenue from Chinese tourists, especially “Free and Independent Travellers” (FIT), grew 19% in 2014, and now accounts for around one-third of in-bound tourism revenue.

With an increasing proportion of Australia’s population born overseas (in large part driven by people coming here to study or to work from China, India and South East Asia), it’s only natural that their friends and family will come to visit them for holidays. And since they are likely to be more affluent visitors, they can afford to curate their own itineraries, rather than be locked into package tours.

2. Great attractions need even better infrastructure and UX

It’s no longer enough that Australia can boast many of the best natural, cultural and lifestyle tourism attractions in the world. Increasingly, catering for the “visitor experience” means that travel operators, hotels, resorts, attractions and destinations need to consider things like:

Multilingual and multicultural capabilities
Internet & WiFi access
Smartphone compatibility
Signage and navigation aids
Integrated services (e.g., transportation and visitor attractions)
Content and interpretive tools

3. Market and digital disruption means more choice for travellers

Disruptive market forces mean that tourists have more choice, and can access the sharing/informal economy, such as Uber and AirBnB.

Digital disruption also means a myriad of ways to discover, book and pay for transport, accommodation and services, aided by numerous apps that can bypass official travel and tourism services.

Visitors not only have more choice, they are more likely to be well-informed, having done their research before they arrive, aided by social platforms that offer personal reviews and recommendations.

4. What are the reasons tourists come to Australia (and what do we do with them once they are here)?

I don’t have any official data, but anecdotally, tourists come to Australia because in general they believe it’s safe (notwithstanding shark attacks and venomous insects), it’s clean, it’s unique, it has variety, and for some the language is also a convenience.

Whether it’s natural scenery, food and wine, cultural events, sport, historical sites, gambling, surfing, trekking, arts festivals, fashion weeks, galleries, museums, beaches, or just hanging out in coffee shops, Australia has a lot to offer.

I’m obviously biased, but Melbourne alone hosts a full calendar of cultural, sporting, culinary and commercial events – there’s something significant happening every month of the year:

Major Festivals – Jazz, Comedy, Film, Arts, Fringe and Cabaret (plus the Laneways Festival)
Special Events – White Night, SuperSense, Winter Masterpieces, Gertrude Street Projection Festival
Sport – Tennis, Spring Racing Carnival, AFL Grand Final, F1 Grand Prix, Boxing Day Test
Commercial – Food & Wine Festival, Design Week, Fashion Week, Art Fair, Trade Expos, Professional and Industry Conferences

And did I mention the coffee shops???

5. Some further opportunities?

Digital won’t displace these attractions; in fact it should make it much easier for tourists to discover, connect to and interact with them before, during and after their visit.

Digital can also help curate the whole end-to-end experience, from suggesting thematic itineraries, managing personalised bookings and organising customised events, to providing travel information and advice in advance, updating information throughout their stay, and keeping in contact with visitors once they leave.

And a personal plea – can Melbourne’s trendy restaurateurs that don’t accept bookings offer an app to let customers know when their table comes up on the waitlist?

Declaration of interest: The author currently consults to Roy Morgan Research. These comments are made in a personal capacity.

Next week: Update on AngelCube

Cultural Overload: Oblique Strategies vs Major Tom

Posted on August 18, 2015 by Content in Context

This week, Content in Context took a break from start-ups, fintech and the information superhighway to immerse itself in some cultural overload, with hardly a digital device in sight. However, I didn’t need to wander very far to realise that digital technology is both enhancing and restricting our ability to engage with art, music, culture and live performance – while analogue still wins out in terms of creating tangible experiences.

: What technology would Thomas Jerome Newton have used to interpret “David Bowie Is”? (Image found here.)

To start with, I went to the “David Bowie Is” exhibition currently showing at Melbourne’s ACMI. As a retrospective on Bowie’s music career, including his dalliances with mime, theatre, fashion, videos, cut-ups, painting and film, it’s pretty comprehensive. What makes it particularly engaging is the lack of digital trickery among the exhibits: no touch screens, no VR or AR spectacular, not even a smart phone app to accompany your visit. It’s all very museum-like sedateness, well-presented artefacts, and extensively annotated displays – not surprising given the V&A provenance.

The absence of complex digital displays or an interactive/interpretive visitor experience is somewhat surprising, given that Bowie has always been an early adopter of new technologies (after all, this is the man who launched his own ISP, BowieNet, and was one of the first musicians to securitise his songwriting royalties via the so-called Bowie Bonds). Not forgetting that Bowie was using multiple characters, personas and alter-egos long before we got around to internet avatars.

Bowie’s remarkable run of studio albums in the 1970s (unparalleled in popular music) stretched the limits of contemporary recording standards, because each LP has a distinct sonic palette, based on the careful selection of locations, musicians and studio technology. There’s even a section dedicated to some lyric-writing software that Bowie used to automate his cut-up process (which emulated the Dadaists and writers like Burroughs and Gysin). And videos for some of his early 80s songs (“Ashes to Ashes”, “Fashion”, “Let’s Dance” and “China Girl”) were MTV staples when the medium was still in its infancy. (But as the exhibition reminds us, Bowie was using the short film format as early as the late 60s.)

The only real concession to digital technology is the audio guide, which uses a personal playback device. These devices are linked to either NFC tags or wireless beacons to trigger specific music, commentary or soundtracks when the visitor is in a relevant location. Mostly it works well, and provides a collage of sounds to accompany the more significant exhibits. However, the cut-over between some “trigger zones” is a bit abrupt, even clunky, and there is nothing interactive for the visitor to explore or experience.

At the end, each visitor was given a postcard with a promotional code to download a free Bowie album. All very nice, and a great idea, but poorly executed:

The choice of albums is limited to his more recent studio albums, and a fairly average live album (by Bowie’s standards) – so none of those classic 70s recordings
The promotion is linked to Google Play and the process of setting up and downloading my account was not very intuitive, and compared to iTunes was very clunky (at least on my iMac)
It was not possible to curate my own personal Bowie album, which could have been fun – now, I understand the reluctance to deconstruct complete albums into individual songs, but perhaps some specially selected and Bowie-approved thematic compilations (e.g., based on his many stage and studio personas) could have provided a neat compromise?

While I liked the fact that the exhibition mainly used analogue technology, I think there was a missed opportunity to create an additional layer of interactivity, either via the audio guide, or via a separate smart phone app or website (I’m thinking of MONA’s “O Device”, the NGV’s “Melbourne Now” app, or some of the marvelous exhibition apps developed by London’s Tate Modern, the Réunion des Musées Nationaux in France, and both the MCA and Gallery of NSW in Sydney). Something for the V&A and ACMI to think about?

Then, it was a short walk across Federation Square to the Arts Centre, for a 3-day extravaganza of live events (music, dance, theatre, mixed media) collectively known as “Supersense”. OK, so I appreciate that this curated festival was all about experiencing live performance up close and in the moment – without being (dis)intermediated by any layer of technology between performer and audience (apart from some 3D glasses I wore for one mixed media show). But a festival app would have been very useful to help navigate the warren of corridors and backstage areas where the festival was held, to let visitors know when events were due to start, and to notify them when there no more seats in the smaller performance spaces. Also, the festival website’s complicated schedule of events was impossible to read on a smart phone, so an app would have been great!

Anyway, the festival format, range of styles and mixed quality inevitably meant it was a veritable curate’s egg – the broad theme made it difficult to establish a cohesive context, and yet there were some connections and overlaps (both direct links between performers, and indirect conceptual links among the cross-cultural references and influences). Again, an app would have helped to make those connections. But the organisers (and performers) are to be congratulated for pulling off this inaugural event, and I look forward to next year’s programme.

Finally, for the culturally aware (or just plain old trainspotters) there were a number of connections to be made between “Bowie Is” and “Supersense”:

The performance of Brian Eno‘s ground-breaking ambient composition “Discreet Music” by The Necks and friends reminded us of Eno’s crucial role in recording Bowie’s trio of Berlin albums, “Low”, “Heroes” and “Lodger”
More specifically, the incorporation of Eno’s “Oblique Strategies” into the “Discreet Music” concert was very pertinent; not only did Eno use this system of random instructions when working on “Lodger”, he gave Bowie his own deck of “Oblique Strategies” cards, which are on display at ACMI
The festival finale by John Cale (also a sometime collaborator with Eno) included versions of “I’m Waiting for My Man” and “Venus in Furs” which he first recorded with The Velvet Underground in the 60s – and Bowie was one of the earliest artists to cover songs by The Velvet Underground in the early 70s.
Bowie’s early career incorporated mime, poetry and performance art, reflecting his influences and interests. In turn, thanks to the influence of cultural polymaths like him, a festival as diverse as Supersense seems perfectly natural to contemporary audiences.

Next week: Tourism – time to get digital

It’s not enough to be #disruptive – you also have to #collaborate

Posted on August 9, 2015 by Content in Context

For most tech #startups, especially in #fintech, it’s no longer just about being #disruptive – there’s a growing realization that entrepreneurs also have to be #collaborative.

One year on from his last visit to Melbourne, Stripe co-founder John Collison was back in conversation with Paul Bassat from Square Peg Capital, courtesy of Startup Victoria and sponsors Envato, LIFX, BlueChilli, Bank of Melbourne and PwC. Previously, John spoke about the need to be “disruptive rather than incumbent”, yet it seems that Stripe’s growing success can be attributed to relationships with other providers in the payments industry, such as AliPay and VISA, plus deals with retail sites such as Catch Of The Day and RedBalloon. Oh, and it probably helps that most U.S. presidential candidates are using Stripe for campaign donations….

Stripe has already launched an SDK platform for developers, and is planning to launch StripeConnect, a market place platform. The point being, the more users (upstream and downstream) you can plug into your platform, the greater the traction, but also the deeper the collaboration. Why would you want to annoy your potential partners, vendors and suppliers?

Meanwhile, Australia is now Stripe’s 4th largest market, and close to being its 3rd largest.

Going forward, despite some criticism (e.g., it’s still not rolled out in Australia), ApplePay has huge potential. It has an estimated 800m credit cards registered with iTunes (making it 5x bigger than PayPal), and with people currently paying as little as $1.69 per song download, ApplePay could crack the market for broader micropayments (e.g., the $2 on-line daily newspaper?).

However, Stripe stills sees that there are disconnects between traditional credit card application processes, account registration forms, payment solutions, merchant set-up and downstream payments for low-value (but high volume) transactions.

Looking ahead, Collison is talking up opportunities in same-day delivery for e-commerce (hard to see this happening outside of Australia’s main metro areas – unless the infrastructure is there…), and better video-conferencing services (again, in Australia this is hampered by poor broadband services).

A few days later, and Adrian Stone from AngelCube was in conversation with StartUpGrind‘s Melbourne convener, Chris Joannou. Adrian restated the sentiment that angel investors tend to back founders rather than ideas, which can seen by some of the ventures AngelCube has backed so far, including Tablo, LIFX and CoinJar. Each venture has been successful in raising early-stage funding (despite some teething problems and much pivoting), although AngelCube itself has not yet completed an exit.

Rather like his associate Dave McClure from 500 Startups, Adrian recognizes that for various reasons, VCs are having to make smaller, multiple bets, rather than betting the farm on single or a few ideas.

Perhaps this gives further credibility to the proposition that every portfolio (including individual members in retail and industry superannuation funds?) should have a discretionary 1-2% allocation to startups, but you still need an investment vehicle or platform to screen and manage opportunities. Sadly, we see that there is still a disconnect between institutional investors and startup founders. The former are having to get bigger to reduce operating costs, yet this means they have what one friend of mine has defined as the “Allocation Gap”. And of course, founders far outnumber the available sources of VC funding. Time for a rethink on how investors can collaborate to access startup opportunities?

Next week: Cultural Overload

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