End of Year Reflection

As we reach the end of 2016, I can’t help thinking: “What just happened?“. It’s been a year of unexpected (and far from conclusive) electoral outcomes. Renewed Cold War hostilities threaten to break out on a weekly basis. Sectarian conflicts have created levels of mass-migration not seen since the end of WWII. Meanwhile, there have been more celebrity deaths than I can recall in a single year. (And a Scotsman is the #1 tennis player in the world.)

Old Father Time, Museum of London (Image: Chris Wild)

Old Father Time, Museum of London (Image: Chris Wild)

The Brexit and Trump poll results are being cited as either examples of the new populist/nationalist politics, or proof that our current democratic systems are highly flawed. Either way, they are indicative of a certain public mood: anger fueled by a sense of despair at not being able to deal with the rapid changes brought about by globalisation, multiculturalism, modernisation and the “open source” economy. Ironically, both the Brexit and Trump campaigns relied heavily on the global technologies of social media, 24-news cycles and internet-driven soundbites (plus they surely benefited at various times from fake news, false claims and belligerent rhetoric).

As I write, I am in the UK, which is heading for a mini winter of discontent (with high-profile strikes in the rail, mail and airline sectors). The last time I was here about two years ago, there was a general sense of public optimism; now, post-Brexit, it feels very subdued, even depressed. Whether this is a delayed response to the Brexit result, or uncertainty about the exit process itself, it’s hard to tell. While the governing Conservative party leadership is struggling to implement the outcome of a referendum that many of them did not want (or expect), the opposition Labour party (whose own leadership was highly ambivalent about the Brexit vote) is busily re-enacting the 1970’s and 1980’s….

Speaking of the 70’s and 80’s, the return to Cold War hostilities has felt like an inevitability for the past few years, and if it weren’t so serious it might be the suitable subject of a satire by Nikolai Gogol. While the primary fault lines are again between the USA and Russia, there are some complications and distractions, that don’t paint as clear a picture compared to the past: first, the relationships between the US President-elect and Russia confuse matters; second, the ideological war has shifted from capitalism vs communism, to liberalism vs autocracy; third, the role of “satellite” states is no longer to act as proxies in localised disputes – these supporting characters might now provide the trigger for all out hostilities between the super powers.

The ascendancy of this new nationalism (within the USA as much as in Russia) and the increased autocratic leadership on display in democratic, theocratic, oligarchic and totalitarian regimes alike is a renewed threat to enlightened liberalism and classical pluralism. Hence the significance of failing democratic institutions and political leadership in the west – the vacuum they leave behind is readily filled by the “certainty” of dictatorship and extremism. With China added to the mix via recent maritime events, plus ongoing strife in the Middle East, the potential flash point for a new Cold War conflict might be in the Spratly Islands as much as Syria, Ulaanbaatar as Ukraine, or Ankara as Aden.

On a (slightly) lighter note, the number of celebrity deaths reported in 2016 could be explained by demographics: artists who became famous during the explosion of popular culture in the 50’s, 60’s, 70’s and 80’s are simply getting old. In terms of dead pop stars, 2016 was book-ended by the deaths of David Bowie and Leonard Cohen. Both were experiencing something of a renaissance in their professional fortunes, and each left us with some of the most challenging but enduring work of their careers. Of their surviving contemporaries, some might argue that Neil Young and Bob Dylan continue to keep the musical flame alive, but for my money, Brian Eno and John Cale are the torch bearers for their generation.

In a satirical end of year review in The Times last weekend, the following words were “attributed” to Bowie (someone known to understand, if not define, the zeitgeist):

“Sorry to bail, guys. But I could see the way things were going.”

Next week: Content in Context is taking a break for the holidays. Peace and best wishes to all my readers. Normal service will resume on January 10.

Final StartupVic Pitch Night of 2016

There was something of a festive mood in the room for StartupVic‘s final pitch night of 2016, hosted at inspire9. It certainly had an end of term feel, as a number of the long-term Startup Vic team members said their farewells before moving on to new ventures. So it will be interesting to see how these monthly events continue to evolve in 2017.

screen-shot-2016-12-10-at-4-01-47-pmContinuing the theme of recent pitch nights, diversity was the key – this month’s startup hopefuls came from the energy, AI, environmental and consumer sectors. As usual, I will comment on each pitch in the order that they presented:

BioFuel Innovations

With the simple aim of turning waste into fuel, BioFuel Innovations uses an enzyme, as opposed to a more caustic chemical catalyst, to convert used cooking oil from restaurant kitchens into biodiesel. Given this greener and more sustainable process, the company can use lower quality feedstock, consume less energy and reduce the amount of waste water.

Having built a pilot plant in Dandenong, the founders are currently developing a containerised “turnkey solution” comprising a pilot micro-refinery, which can be financed by 3rd party lenders (a bit like some solar energy schemes). However, they are seeking funding to gain access to a startup accelerator program.

With a number of existing service providers that collect used cooking oil from restaurants and food processing plants, BioFuel Innovations only plan to produce their own fuel on a small scale. Rather, their business model is to sell micro-refineries for biodiesel production.

Asked by the judges why they are focusing on biodiesel rather than other higher-yield fuels, the team pointed out that some of those products require high temperature processing, and therefore consume more energy. Also, in concentrating on this type of biodiesel production, the founders believe they are helping to solve the problem of disposing of waste oils. However, longer term, they may explore even more sustainable energy derivatives and regeneratives. And in Asia Pacific, for example, there is a need to re-process palm oil residues.

Finally, a key to their success will be streamlined manufacturing processes and logistics, such as building supply chain partnerships for the shipping containers that hold the micro-refineries.

Breathable

This is an environmental design concept that aims to use plants to replace air ventilation systems in offices and homes. Based on research from Maastricht University in the Netherlands, Breathable uses an algorithm based design solution. Taking into account the building dimensions, natural light, air flow, number of people, amount of mechanical and electrical equipment, etc., the team can design the right combination and layout of plants for each given location.

Established as a bootstrapped social enterprise, whose profits go to helping asthma sufferers and patients with respiratory complaints, Breathable is hoping to make a large and sustainable impact.

The first question from the judges was, why set up in Australia? The team explained that given certain plants are not allowed here, the underlying algorithm has to be reconfigured for native plants, by a local team.

This was a very timely comment, given the recent episode of “thunderstorm asthma” in Melbourne. However, the judges were a little concerned that while there was a clear connection between purpose and passion, they wondered whether it is more of a lifestyle business for the founders, especially as thus far, no IP has been registered or protected. (On this specific point, the team simply said, “we challenge people to do it better”.)

There is an expansion plan, to develop fully self-sustaining eco-systems – such as using plants to power lights that help generate photosynthesis. But big goals need big marketing budgets, and with an active waiting list of 20 corporate clients, the challenge for the business is in how to scale.

MagicPi

I should say upfront that based on what I had read in advance on their website, this pitch was not what I had expected. Instead of a presentation on artificial intelligence, we got a pitch about Australia’s Chinese tourism “problem”. Namely that, based on a 2016 report from Bloomberg, by 2020 Australia will host 5 million Chinese visitors a year, representing a $13bn market. (And as I know from having worked with the founders at China Digital, many tourist destinations in Australia are far from China ready.)

Using natural language AI (cognitive, cloud, machine learning – “Siri with a human touch”) MagicPi is targeting Destination Marketing Organisations (conventions, conferences, local tourism boards). They plan to create content and solutions for client websites, and then take a commission on bookings. With a presence on both WeChat (including a voice recognition bot) and AliPay, MagicPi has a long-term vision of being the “intelligent interface for everything”.

However, the judges questioned whether the solution works or even exists. They felt that there was currently no visibility for investors or consumers. Claiming to have built a demo app, the team stated that there is a lack of quality information for Chinese tourists, and people are willing to pay for premium content – and to distinguish mere “recommendations” from the visitor “reality”.

Despite adopting a deliberate enterprise solution, the judges felt that the pitch needed to stress the “why”, rather than focusing on the problem.

The Cider Link

I should mention that I first met the team from The Cider Link about a year ago, and was intrigued by their mission to build an online craft cider market that connects makers with customers. (So much so, that I connected them to local wine producer, Richard Stockman, who invited them to appear as guests on his weekly food and drink radio program.)

The Cider Link is challenging both the market duopoly for cider retailing, and the ubiquity of “commercial” cider, much of which is produced from bulk juice mixed with alcohol – rather than being fomented from freshly pressed fruit, as is the case with craft ciders.

Cider is currently enjoying 10% annual growth by volume (based on bottle shop sales alone). So, online, cider and craft are all “on trend”. The founders have built a commission-based market place, and with connections to producers who are members of industry body Cider Australia, The Cider Link is also appearing at festivals and related events.

In the Q&A with judges, the team explained that success for them would be sales of 1000 cases a month, making it a $1m business. They also plan to take the model to the UK, which has the largest cider market in the world.

In addition to attracting more customers, the founders are seeking investment to improve sales conversions and support some advertising.

Given the mix of pitches, and the range of business models and sectors, based on judging criteria and audience votes, the winner was Breathable.

Next week: End of Year Reflection

 

Banksy – an artist for our times?

Is Banksy the most contemporary of artists? The main medium he works in (spray paint) and the primary format he uses (street art) are synonymous with urban graffiti art. His re-appropriation and re-contextualisation of images and icons tend to both support and subvert traditional notions of art production, the commercial gallery system and copyright law. These same concepts are likewise being challenged via the use of digital technology, social media platforms and creative commons licensing.

Banksy: Laugh Now (2005) [Photo by Rory Manchee]

Banksy: Laugh Now (2005) [Photo by Rory Manchee]

The current retrospective of Banksy’s art in Melbourne is an intriguing exhibition – part homage, part entertainment, part circus sideshow, part social event. It’s nevertheless a calculated commercial venture, given the local veneration of street artists and their work in the city’s laneways (including some of Banksy’s which have been destroyed in recent times…). Plus, on the way out, there is the gallery shop with mass-produced copies of Banksy’s art, souvenirs and street wear.*

Everything Banksy does is designed to provoke a reaction – even if it’s just a snigger at some of the rather obvious visual gags. Even his (or her?) anonymity is used to reinforce the enigma of the artist as outsider (and sometime outlaw), while potentially allowing multiple artists to operate behind the assumed identity of “Banksy”.

Banksy’s use of a corporate-style logo creates the impression of a brand, and as one of my colleagues noted, it also acts as a meme which spurs both imitators and detractors. Using a distinctive and standardised logo as a signature also suggests there may be a production line process behind the scenes, some factory or warehouse where either minions or wannabe Banksys manufacture art to a predetermined design or theme.

For all his rebellious intentions, Banksy echoes the work of established artists – Andy Warhol, Keith Haring, Marcel Duchamp, Damien Hirst, Barbara Kruger, Jenny Holzer etc. He parodies, repurposes or references iconic images such as Warhol’s “Marilyn” screen print portraits, Joe Rosenthal’s photo of the US flag being raised on Imo Jiwa in WWII, and the infamous addition of a green mohican hairstyle to Winston Churchill’s statue. And he obviously has an affection for the sayings of Oscar Wilde, going by the aphorisms and witticisms that decorate the walls:

“Art should comfort the disturbed, and disturb the comfortable”

There is every reason to suspect that even this exhibition will somehow be considered just another Banksy art prank, rather than a critical assessment of his work. I suspect that there were hidden cameras and other means to capture the audience engagement and reaction. The website is careful to state that the exhibition is “100% Unauthorised – Guaranteed”, thereby allowing Banksy to disassociate himself with the event.

The exhibition’s public face is Steve Lazarides’s (Banksy’s former dealer and curator), who possibly still owns much of the work (or likely knows the people who do). There are other statements that Banksy does not directly benefit from sales of his work in the secondary market, and in any event, copyright in many of the works is in the public domain – meaning Banksy has either formally assigned his copyright to the public, or does not wish to claim or exercise any copyright over it. In theory, anyone can make copies of the original pieces (there being no copyright protection) but no-body can claim copyright in the resulting image or work. So, for some of Banksy’s prints, t-shirts and other multiples, it begs the question, what is an “original” Banksy – the ones in the gallery, or the ones in the gift shop?

*Not surprising, given the title of a notorious Banksy documentary, “Exit Through The Gift Shop”

Next week: Final Startup Vic Pitch Night of 2016

The Startup of You v2.0

Through my blogs on startups, meetups and portfolio careers, I was recently interviewed by Peter Judd from News Corp., who is trying to bring the discussion on entrepreneurship, startups and innovation to a wider audience, particularly people who may be looking at a career change. (We both agree that the National Innovation and Science Agenda is not cutting through to the general public.)  Apart from being an advocate for portfolio careers, I also pointed out that entrepreneurship or working with startups is not for everyone. Instead, it may be possible to change your current role to the one you want. Alternatively, taking a new look at your current circumstances can provide some fresh perspective on finding your dream career.

Francis Kenna: The Unbearable Lightness of Seeing (2016) [Photo by Rory Manchee]

Francis Kenna: The Unbearable Lightness of Seeing (2016) [Photo by Rory Manchee]

The impetus following the 2012 publication of “The Startup of You” has done much to fuel the current entrepreneurial phenomenon, combined with lean startup business models and agile product development processes. The drive for innovation in response to digital disruption and lowering technology costs also means that launching your own venture can be increasingly de-risked.

For example, I recently saw some data by Ian Gardner from Amazon Web Services, that showed the “cost of failure” has come down from $5m to $5k, in just 15 years. This is based on a comparison between what it typically cost to launch a new business at the height of the dot.com boom/bust in 2000, and what it costs today. With a mix of open source tools, cloud computing, APIs, SDKs and social media platforms, launching a new business has never been cheaper or easier.

Of course, there is a paradox here: if an increasing number of people, especially younger graduates and new entrants to the workforce, are more interested in doing their own thing and less interested in joining large or established organisations, it’s going to get harder for employers to attract and retain the best talent; on the other hand, without appropriate experience, on-the-job training and personal development, how do these aspiring entrepreneurs acquire the necessary business, technical and leadership skills to succeed in their own ventures?

For some people, it may be appropriate to take their entrepreneurial spirit of adventure into a “traditional” role to test some of their ideas, as well as build networks and get some practical experience. Equally, I can see a huge opportunity for companies to create the right opportunities to engage employees for flexible roles aligned with specific projects or objectives (rather than plugging them into org charts). Companies are also finding new ways of tapping into their existing workforce to identify hitherto hidden and unknown skills and knowledge. Many employers also recognise that leadership roles will increasingly be filled by people who are comfortable with rapid change, increasing complexity and heightened uncertainty, as well as having enhanced soft skills. (There’s even some current thinking that utilising “rebel talent” is a good thing.)

Whether you are starting out on your entrepreneurial journey, looking to reboot your career, or searching for meaningful work that aligns with your values and purpose, there are numerous opportunities (via meetups, hackathons, pitch nights and networking forums) to explore your options before you make a decision. And for companies looking to re-invigorate your workforce and unleash hidden talent, there are many ways to experiment through taking informed risks, by building in-house innovation hubs, running consultative and collaborative workshops, and inviting ideas and inspiration from your existing people, who are familiar with the challenges you face.

Next week: Banksy – an artist for our times?