“From my cold, dead hands…” It’s something that came to mind as I was thinking about writing this post. The part that doesn’t make sense about the Internet, today and perhaps since ever, is that American concept of “Freedom,” of independence and lack of governance.

In my post on piracy, my point was not complete. YES, historically, there has been a trend in every industry towards eliminating inefficiencies and yes, in some ways making things digital is just another step down that line, but NO, as @ksilvennoinen pointed out in the comments, digital goods do have a value greater than zero, the question is how to find a way to recuperate that value from customers.

To me value equals investment, but that is not the way pricing works. Unfortunately, I managed to misplace my pricing bible some months ago and can’t seem to recall most of the rules of pricing, but there is a strong psychological component to it. And the psychological part is what I am confused about. To get another book in here, it’s just like “Positioning: the battle for the mind,” if online goods are ‘positioned’ against a never-ending slew of free content, how do you position yourself to be priced at a value greater than zero?

On the one hand, it’s not so hard. You position yourself in such a way that a comparison does not make sense. Let’s take digital books, an area I actually don’t consider as threatened as publishers and media-outlets would like you to believe. The reason is that as soon as you download a digital book and view it on a PC, it immediately becomes an inferior product. Unlike a TV-show or movie, which I can frankly watch on a post-stamp (no matter what David Lynch says), reading and eyes work best together on either paper or e-paper (haven’t tried reading on the iPad, though I really like doing it on the iPhone). Of course the real threat to e-books in a PC environment is websites, but that’s a story for another day.

To get back to it, e-books work best in a dedicated reading environment, which immediately creates opportunities for platforms and putting walls around those. Platforms ensure that there is a network effect of content, walls ensure that there is no inter-leakage between the quality-controlled inside and the dark-waters-of-piracy outside. And that mechanism allows digital goods to be priced to recuperate investment and more. But…

Where it gets confusing again is how very open the Internet is. This openness allows you to create an app in a day, it also allows you to jailbreak an iPhone (now with US-gov. support), and it allows for me to get a movie that Chinese kid 107-xg46-*** released 5 minutes ago on the torrentZ. Amazon was built on this openness, as was OS X, as was pretty much anything that was stolen out of the Xerox labs 35 years ago. While there is a trend of eliminating barriers in general, it is even more prevalent on the Internet.

So, what I am asking myself here is the following questions:

• Is this 1969 again, where hippies roamed free, sex was consequence-less, and there is an Aids-epidemic on the horizon, which will make us go back to the 50s in terms of promiscuity?
• Are platforms doomed? I’m just talking platforms, not walls around them. Twitter is an example of an open platform.
• Are the walls around platforms doomed? So: iTunes & iOS-devices, Amazon & Kindles, Facebook & human relationships, every online retailer in the world…
• Is pricing digital goods a logical thing when taking into consideration how it is positioned against other digital goods?
• Should digital goods be free and prices be set for things that cannot be spread digitally: iOS devices, Kindles, Disk-media, other consumption-devices…
• And many more questions…

Getting back to value equals investment in my third paragraph. In any chain that leads from idea to the user, there are value points, which come from some kind of investment. In the embroidery example, a strong value point appears to be the creator. Without that person, there would be no creation. And, of course, there are plenty of examples on that. In the case of iPhone, strong value points are both the conceptualisation (R&D expenditure) and the production costs. In the case of Amazon, the website (presentation, distribution, etc.) is a strong value point. The end-product can still be digital, as it is in the case of the embroiderer’s designs, the iPhone apps, and the Kinde-ebooks, but the investment in certain parts of the chain is very much real.

And the value to consumers, which the crux of the matter, is equally real. If I compare 2010 to 1995, we live in the era of digital convenience. From e-banking, to restaurant-reviews, to TV-shows, to software, we undeniably live in a better world, but one where, ironically, we are less willing to spend as much on it. But there is another side to this as well. Let’s say, everything that exists is walled off. You’d have to pay to get access to every blog-post, to every youtube-video, to everything else that is already being charged for. I would sincerely start to question whether it was all worth it.

The Internet continues to be confusing to me, part shopping bonanza, part free-for-all utopia. Writing this has brought a little clarity, but if you have stuff to add that clears it up even more, please feel free to share it in a comment.

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I have a general philosophy on the evolution of the B2C and B2B relationship, one that is inspired by history. Let’s look at some examples. Money first took the form of barter, then gold, then coins, then paper, and now bits and bytes. Transport: on foot (great shoe-sales), animals (great stable-sales), cars (great garage sales), planes (great duty free sales), and finally tele-conferencing (great device sales). Books: handwritten, handprinted, printing-press, mass-media, internet, iPad / Kindle. At every turn, something was replaced, an industry was destroyed, yet it was for the purpose of evolution. Don’t get me started on evolution itself, as that is all about destructive replacement.

The point about all of these is not about destructive replacement. It’s about improving a product in the eyes of the consumer. And what enabled this improvement? Common standards, collaboration, user-feedback, guts, ruthlessness, innovation, progress, etc. Why producers don’t like to cooperate with that? Because every technology requires an investment to make it work.

Think of the poor embroiderer, which is what inspired this post (bound to get a lot of flack). It’s a funny industry. I wasn’t aware that needlework designs are being sold over the internet and thus at the risk of piracy. I suppose I always thought an embroiderer embroids, then sells their product and ships it to consumers. Instead, they seem to go to the simplest side-product of their work, the one that becomes a foundation for potential mass-production, the “design-chart,” which is then being “shipped,” via download, to customers. Interesting! It kinds of makes sense from a distribution standpoint. Customers are not willing to pay for the shipment of needlework, instead they prefer producing locally, which really is a great idea. The only problem here is the way it is distributed.

In a B2C relationship over the internet, I think, it always comes down to eliminating as many barriers as possible. When you buy from an online shop, you really want the product in your house as quickly as possible. If I could reach my arm into the screen in front of me and pull out the product that I just ordered, that would be just perfect. It’s worse when the product is digital, because the customer knows that it’s just bits & bytes really not worth anything tangible (I’m just talking about the 1s & 0s here) and it could be in the customer’s home in a millisecond. Instead, business erect as many barriers as they possibly can, whether it’s a big ‘copyrighted’ sign across a picture, an overly complex signup/payme page, or the somewhat convoluted iTunes-model, where it really is easier to pay than to pirate.

But in the light of evolution, these barriers are bound to be broken! The same reason why gold is no longer a form of payment, because it’s really heavy and annoying to handle, the world of commerce has a way of evolving towards something easier and easier and easier, until finally I pay by waving a magic wand (eh RFID chip) across a panel.

Let’s get back to embroidery. The problem is two-fold. 1. fragmentation, because any solution that I am about to propose will not get blanket acceptance. 2. the silly notion that selling designs, which seems like the most valuable thing an embroiderer has to offer (actual IP), is something that should be done in a direct B2C relationship. In the light of consumers constantly wanting to break barriers, this offering of valuable IP seems like an industry-defeating purpose.

So what are possible solutions?

• consolidation & protection. Basically the iTunes model, where everything is placed behind a secure window that can preferably only be accessed via a specific device (my personal belief is that anything bits & bytes will eventually be free as that is not where the real value lies).
• selling designs via local shops. If the problem is distribution, why not partner with local shops that keep your designs behind bars and just print out the end-product for consumers.
• selling designs via the machines that produce needlework. No idea what they are called, but they have a strong incentive to keep their machines being used and have a direct line to consumers.

I’m sure any of the above is a solution with problems, but my point is the following:

• Piracy will continue to exist and will become worse if you make it easy for people to pirate.
• Consumer products evolve in a fashion that keeps pushing out inefficiencies and piracy is one of the quickest ways online to remove these inefficiencies.
• The only way to prevent privacy is to not distribute anything that can be distributed via bits & bytes.

Case in point: the idiot that just walked into an Apple store and jailbroke every damn iPhone 4 on display.

Last point: I am not advocating piracy. I run a company myself, I have a business degree, and I believe in getting paid for your work. But I do believe silly strategies deserve to get punished. And there are plenty, plenty, plenty of them that I have mentioned on this blog over the years.

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ABBA, The Cardigans, Ace of Base and Roxette to name just a few – there’s no doubt Swedes have always known how to pump out pop music. So, it should not be a wonder that, once again, it took the Swedes to show how to bring music to the masses in the form of Spotify.

However, in a modern home, the other problem with music is that today most people have their music inside their computer – which, more often than, is a laptop instead of a bulky desktop and anyway probably not stationed anywhere near one’s stereo setup. There are many solutions to this problem, Apple has its Airport Express but it only supports playback from iTunes out of the box. So, if you want to stream Spotify from a bigger set of speakers and without cables this is not a good solution.

For a long time, I was looking for such a solution – no additional cables or stuff to just play audio from my Mac to my living room. I did find a bunch, but most of them were complex and riddled with lots of strange limitations (like cost). I was sure that there had to be an easier way to enjoy Spotify further than 2 meters from my laptop. Many A/V manufacturers sidestep the issue by adding a WLAN, Ethernet and/or USB capability to their hardware, so one can play music out of a shared hard drive but this rules all streaming services, like Spotify, out.

Maybe in the future Spotify might be inside our radio tuners and televisions. The latter is possible already in Sweden and Finland, where you can get Spotify on your digital television thanks to the Swedish-Finnish ISP and mobile operator TeliaSonera. Changing my internet and cable operator just for Spotify sounded a bit too complex solution so that wasn’t for me. But it might be a nice setup for one’s parents – if they weren’t just fine with their CDs, probably. Is it really this difficult to just stream arbitrary audio from one’s laptop to speakers wirelessly?

So, more Swedes to the rescue. The good folks at the hi-fi spekaer company Audio Pro have come up with probably one of the simplest and cross-platform solutions with their wireless offering. But, it’s an USB dongle. Aren’t there enough wireless transmitters inside my MacBook Pro to do the job? Well, thanks to yet another Swedish company, Ericsson, and their Bluetooth technology (with AD2P-profile), streaming audio wirelessly should be simple. So, why not just add Bluetooth inside a radio and then things should work with no wires or restrictions, right?

However, this, like many other Bluetooth applications, hasn’t really caught on. Sony has some setups with Bluetooth, but I went with Audio Pro Radio One. Sure, it looks like any Tivoli Audio’s radio and Tivoli Audios are really nice, but the only “modern” one with any connectivity (and radio presets!) is NetWorks and that one costs an arm and a leg – and even that one can’t stream music from a computer in a simple way. Radio One, on the other hand can, because the smart folks at Audio Pro put a Bluetooth receiver in it.

And so, with Radio One, Spotify and a Mac things are quite straightforward. Because the Radio One acts like an ordinary output device which means you can stream any audio to it. No need for Airport Express or Airfoil, things work even simpler than that. Setting up a Windows-machine should be equally easy as long as you have correct Bluetooth-drivers that have the A2DP profile. Connecting your iPhone – or any other mobile phone with BT – to Radio One? Thanks to Bluetooth, really easy. However, because there’s no iPod or USB dock in Radio One, you’d better watch battery usage or use a stereo cable instead.

So, thanks to a bunch of ingenious Swedes, I can finally stream music from my laptop to my living room. The only limits are that Bluetooth’s range is relatively short and it does consume battery. But no artificial limits like with oh so many other solutions. Aren’t standards and simple solutions a fun thing?

A sidenote: Americans and other developing mobile countries take note, Bluetooth does not mean a wireless headset. Bluetooth can do a lot of pretty cool stuff, but unfortunately introduction of cheap mobile broadband and before that Nokia’s and then Apple’s reluctance to actually support any interesting profile (without crippling them beyond any recognition) on their handsets have meant that Bluetooth is not in the spotlight anymore and is mostly in hands-free headsets and wireless keyboards and mice.

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The door slid open slowly, all that was visible from inside the store was a wide beam of light that slowly expanded into the shape of a door. The automatic triggers kicked in and the other security-panels in front of the windows slide open also, illuminating the last retail store left in the world 2020.

He entered. The last ever retail-clerk left on earth. A wide smile on his face, from years of practice, a swing in his step from his regular work-outs. All part of the routine.

The camera-system, also the lighting system of the place, followed his every step—one tiny camera in every tiny light-bulb, giving combined resolutions beyond that of any screens in use today and filming whatever was in the store with more dimensions than the holographic output to date would require. As he reached the music-rack, the one closest to the door, the one most geared towards impulse buying, he passed the security threshold and the system was forced to react—was he an intruder or an insider? Always a fun game to play with this flaky system… He passed the test and personalised systems started turning on all around him.

It started with the music-rack, a 50 metre (150 feet) long pathway surrounded by holograms of artists’ heads performing—sometimes in group-form, if it was a band—and tiny beams triggering the sub-dermal speakers behind his ears to play a song, just right for his mood and of course just out in the charts that week. He sometimes felt he was his best customer, because he rarely left that isle without purchasing at least one song. Another credit down from his, well , limitless credits that he could spend on these things. One thing caught his eye, the Beatles hologram was slightly off-colour, the yellows not quite as yellow as they should be. He knew banging the holographic projector would only make it worse, so he made a mental note to call the mechanic, who could probably calibrate it from his home office.

Next up, the movie isle. He loved how movies had evolved over the years to become a hybrid of a blockbuster movie with great effects, a great story-line that was essentially limitless and could be changed by the viewer as he or she consumed the movie. The movie isle was a mini-experience of such a thing, also targeting his past taste, his current mood, as well as plenty of other variables of course. The result was that as he moved onto the platform, he saw Disney-bunnies playing in the grass around him, and walked along a couple of prehistoric hunters in their furry outfits with, in the distance, their attractive female mates waving at them and cheering as they got closer. He could smell the food as he drew closer, another marketing gimmick, and he was happy that after this came the food isle.

At this point, it should be said the last retail store in the world (also the name of the store) was in fact a great big mall. The difference to other stores that came before? It was run by a single man and everything else was automated or remote-controlled. A consumer would enter and would first be entertained through music and movies, and could then choose to fulfil his primal needs: food, hygiene, etc. The second-smallest section in this store that had everything was the electronics section. People basically had electronics implanted into their bodies or they ran everything off a terminal. There was no hardware differentiation, everything had already been invented, and every software could run on the hardware that people owned from the day they became an adult or when their parents gave them permission. The smallest section of this store was the payment area, in that there was none. Why pay when every credit you need is stored on your person and you can just swipe the product you want and get it?

The clerk had said his goodbyes to the women in his personal film and started down the food isle. Again, a moving platform, on which he could sit this time, with choices flicking across the tables next to him, sushi-style, until he identified his favourite, grabbed it, and munched it down. The platform, measuring his progress and seeing that there were no impatient customers trying to get by, basically came to a standstill, allowing him to eat and enjoy.

This was a typical start of the day and arguably he had the best job in the world. The rest of the time would be spent on support, on dealing with customers that “didn’t get it,” take care of the technical issues that arose even in his technology heaven, and, even, doing some sales, though that was highly unlikely with the kind of data computers already had on consumers, making every product suggestion the perfect one.

The clerk didn’t care where his customers came from or where they went, but he suspected that they lived very much like he did, in an overcrowded apartment block with a big postal area designed specifically to receive all the UPS shipments people ordered online or in his store (mail and those inferior small postal boxes were out-innovated years ago).

The first customer came in and he smiled in anticipation of having to do absolutely nothing, while the customer spent at least 20% of his disposable income that month. Typically, people only came in once a month, if ever, just to get that personal, immersive touch that systems at home and elsewhere would never be able to replicate.

Welcome to the last retail store on earth.

This story was inspired by a recent Macworld article on comic stores vs. iTunes, my blogging on food and retail, and thinking about the future of the physical retail store. Pictures courtesy of the movies “Clerks” and “Thomas in Love.”

Prefer to have me blog in fantasy format? Let me know and I’ll continue to do so!

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I think in very a short time humanity will have to make a choice regarding the path that computer interfaces take: allow them to enslave us a la Terminator (or financial algorithms) or to enhance our innate capabilities. This video [embedded below] makes my new Macbook Pro feel like outdated technology.

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I’m currently on a tirade against two things. Global package delivery, which, every single time, seem to have me waste my time waiting for a doorbell to ring. And software-updates, which for some reason are a pretty fragmented affair.

OK, there’s nothing to do about software updates and I already give up.

Global package delivery, on the other hand… UPS was founded in 1907. That’s right, gentlemen & ladies, it is over ONE ZERO ZERO (purposefully emphasised) years old! That means that people have been carrying UPS parcels around on horses, then on Fords, on ships, on aeroplanes, and will most likely carry them to space also. Unlike regular mail, the Package Industry is here to stay as well, ladies and gentlemen, all thanks to you for ordering from places like Amazon every single day.

Now, I don’t mean to pick on UPS. I actually have a problem with FEDEX (founded 1973) this week and with DHL (a German company, founded 1969), both of which like telling me things on their website that aren’t true, or are true, but so incredibly late to publish that truth that it’s just a false truth.

Dear companies that I just mentioned: we are in the age of real-time. When my best friends go to the bathroom, I know about it 5 min. before they even think about it, that’s how quick Twitter is. Sadly, that doesn’t bring a hot new gadget into my life, like your great service does. I appreciate your service, it allows me to be lazy and order to Visa’s delight. But it’s meant to be a service of convenience, and I don’t consider having to drool over my doorbell-phone by any kind of definition, “a convenience.”

Here’s what happened with DHL: Package shipped on the 6th out of Germany. On the 7th, at 4:30 a.m., package left Germany heading for the Netherlands. I sent them a mail asking whether if it doesn’t arrive today, they ship on the weekends. No reply! At 20:00, I found out, that package has arrived for sorting at a sorting centre at 17:42. I decide to call the next day to ask whether they ship on the weekends. The kind person at DHL the Netherlands informs me that a. he has no idea where my package is and b. they do not ship on the weekends. 2 hours later, the doorbell rings. It’s the mailman, who works for TNT (the Dutch equivalent to DHL) with the package from DHL. Status on the website on the 8th: “7th of May, package has arrived for sorting at a sorting centre at 17:42.”

Here’s what happened with FEDEX: Package shipped on the 5th from the US. Paris then somewhere in the Netherlands on the 6th. Estimated delivery: on the 7th at 6 p,m. I’m home at 3:30 p.m. At 20:00 I get a message that FEDEX passed by my house at 14:55 p.m. and no one was home. Status: sadly FEDEX does not receive phone-calls on the weekend.

We need a change, we need that thing you do with the tracing, not to be restricted to when it arrives in parcel sorting centre 42. We need it to have an RFID chip in the parcel, which is connected to a GPS device in the truck, which at all times tells a satellite to send me a tweet of where exactly you are at what given time. And when I’m not home, I can tweet back to said truck to give notice, to save fuel, to save the planet, and/or to change the address to my work-address. Saves your time and mine and the planet’s.

This is not rocket-science. GPS exists (globally since 2000), RFID exists (required by Wal-Mart since 2005), real-time web exists (Twitter since 2006). Yet for some reason, in 2010, I still have to wait 10 hours for an update about something REAL & RELEVANT that happened 10 hours ago. Sigh.

OK, all ranted out now. Now go fix.

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My first post about the iPhone was on why I thought app developers should forget about “apps” for the iPhone and develop Games exclusively. It’s a touch interface and as such inferior to tactile feedback interfaces. I’m hearing rumours that the touch keyboard on the iPad actually works quite well for full-speed typing, but that’s another story.

Putting Digg in the topic title is a trick to get you to read the post. My point is that there is a logic to designing software for a certain interface and, as far as news-interfaces go, Digg is pretty good. Now that I think about it, there is a different interface that perhaps works better, and that is browsing news via pictures (more on that later).

On my PC/Mac, I use Netvibes pretty exclusively for browsing the news. I tried Google Reader and other RSS readers for a while, but linear readers don’t make sense for a waterfall of news. Twitter is perhaps a counter-example to it, but I generally don’t read more than the top-5 posts / or the last 5 posts for close friends on Twitter.

Where Netvibes has the advantage is in presenting you multiple widgets at the same time and your eyes can easily glance from one feed to the next, cherry picking the best of the crop. Do the same in Google Reader and I get the same feeling as in Twitter, only the top 5 items or so matter.

The iPhone with its 5 x 8cm screen is very different and it’s best noticed when doing something that requires a lot of screen-real estate, like working in Excel or looking at a window with a lot of info. Netvibes wouldn’t work at all in it, which is why they also developed their reader interface, which in turn is inferior to Google Reader.

But my point about iPhones and Gaming remains unchanged. The reason that gaming reigns on this platform (more so than is healthy for anyone) is because it is not a text-input device. It is a media-consumption device that has less screen-real estate than a PC (or an iPad for that matter).

Therefore, reading things in a list format makes much more sense. And, because inputting text kind of sucks (well, apart from short brain dumps), Digg is actually the best news-interface that I’ve come across. You couldn’t put a gun to my head to get me to use it on the PC, but it feels natural to “shovel” through it (via the app called “Shovel“) on this small screen. Not only because it’s a list-based interface, but because the user’s interaction with the information is limited to “digging,” while the content is pushed up by everyone.

Minimal interaction required is why Digg works on the iPhone.

Now, a second interface to consider for news is certainly to browse via pictures, which works on the AP Mobile app and the World News app (an interface for BBC news). But for text-junkies, it certainly is slower as you have to slide from item to item.

With the iPad, we are entering new territory, and I unfortunately haven’t tested it to find out how it works exactly. But what is certain is that due to the larger screen-real estate available to display information and to the relative improvement of the touch keyboard, the dynamic very much changes. This is the kind of interface where widget-news makes sense again.

And that also leads me to reiterate a point I made last time writing about the iPad. The best way to display certain apps again is the often-forgotten Dashboard interface on the Mac. Widget apps like calculator or weather already exist in Dashboard as do many other clones of iPhone apps.

I’m very curious what will be announced tomorrow at Apple’s iPhone OS 4.0 event as there are many questionmarks regarding multitasking and building interfaces that use the hardware keyboard (without a mouse?). But that’s the fun of Apple and the right way to run a company: keep your audience engaged and/or enraged, day in and day out!

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A quick note letting you know that the book I was involved with is now available online for free as a downloadable PDF.

If you’re interested in what’s in the pipeline technology-wise in the coming decades be sure to read this report. As previously mentioned, this report is a compilation of articles written by the PhD students of Aalto University (previously Helsinki School of Economics, Helsinki University of Technology and University of Art and Design Helsinki).

The topics include

• Future of IT and hardware
• Future of Telecommunication and Networks
• Printed electronics and nanotechnology
• Future of Media
• Future of Living
• Future of Globalization
• Robotics and artificial intelligence

Also, in the appendix is a small diary of our meetings in Silicon Valley.

Normally these kind of reports would cost thousand of euros, but thanks to the Finnish educational system you can get the report right here for free (PDF; 2MB).

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I made a fairly big mistake with my company at the start, I tried to segment functions in the company too fast. Maybe it was my business education, maybe it was books like “The E-myth Revisited,” and certainly it was my lack of management experience, but I tried to keep my area focussed on business development and away from technology for which “I have a CTO.”

But startups don’t work this way and the entire reason for working in a team is that you share the work and hopefully create synergetic effects (1+1=3!) in the process.

And the truth is that even as for non-technologist like myself (I am a geek though) designing products is not so hard.

I had a discussion with an industrial designer (my all time fav. people to hang around with) concerning the term ‘a perfect product.’ Her field understands the term as a product that functions perfectly, I choose to add “for the customer” to that definition.

The start of product design is always to ask: “so is this cool for people?“, meaning will they like it, do they need it, will they pay for it? I don’t think all question can be answered from the start, except the one of “is this cool?”

A very big part of entrepreneurship is sales, and as they say: you have to believe in what you sell. Easier when you already have a product, I’d love to sell Apple computers for a living, but when the product doesn’t exist, you have one of two choices: one, you design the product yourself, starting with “is it cool?”; two, you trust that your CTO can design something cool.

That’s not a problem, except for one thing: is cool something we decide or the market decides? It is of course the latter and one bullet point in an entrepreneur’s job description missing from that of the CTO’s is keeping a close eye on the market.

Therefore, product design is absolutely something entrepreneurs cannot delegate! And on that short note, I’ll leave it.

All my entrepreneurship diary posts can be followed under the tag ‘Vincent’s eDiary.’ I don’t write about what we do as a company on purpose, but you can always ask in the comments or via the email address on the right. Picture courtesy of The Esoteric Church (of all places!).

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This year, I had the chance to visit CeBit 2010 for the very first time. It was an anticlimactic experience. Being raised with reports of CESs and Macworlds, you can’t help but hope to stumble on the next big thing, but what I was confronted with what had the air of a dusty town ripped out of a Western movie after all the gold diggers left for fairer grounds. In this case, the gold drought is the recession, and the aftermath (to me) appeared as a number of very empty spaces and the remainder seemingly under-budgeted, not “2010 innovative” but 2007 innovative, and with a big sticker on their back saying: “I’m under-confident, please buy something!”

To me, the most interesting technologies were 3D and a massage chair that took me under for 20 min. The biggest news story, however, was USB 3.0, a sad state of affairs if 2010 is marked by a tiny, soon to be in every computer, plug (no matter how fast that damn thing is).

Ignoring the massage chair, which I can’t recommend enough, 3D was the hot topic, inspired by, of course, Avatar. Everybody, from Nokia to Nvidia, appeared to have something related to 3D. They mostly had excuses for it—Nokia was pimping its high bandwidth infrastructure for 3D content aimed at TV & telephone providers; Nvida was pimping its 3D shutter technology for consumer PCs; Frauenhofer Institut was pimping its glasses-less 3D technology; and more and more and more—but my end-conclusion, also after trying to explore the potential for a revolution that was Avatar, was that 3D is an excellent gimmick that will draw a crowd to your stand or cinema, but will leave you disappointed 2/3 times.

Ironically, Nokia had the most impressive display of 3D, showing it off on a 15,000 euro JVC flatscreen. When asked for details, however, all they could tell me was the price of the TV and that their bandwidth technology was not for sale to the “likes of me.” Very arrogant, those Nokia folk and it wasn’t just the 3D guy either… Nvidia’s shutter glasses also worked well and I see a real potential for 3D gaming. Frauenhofer’s glasses-less 3D-TV… pah! The problem with 3D is that it’s so easy to do it badly and 3D without glasses is far from ready. 3D with glasses is far from ready!

I don’t get the obsession with not wearing glasses either. First of all, they’re roomy, which means that you can wear them over existing glasses, they won’t make the claustrophobic more claustrophobic, and they’re disposable. Putting on glasses in the living room is kind of like turning off the light when watching TV.

Last, but not least, I liked lcReflex, which developed an interesting, if not very portable contraption, that makes applications on a computer screen three-dimensional. It involves something they call a Stereomonitor, two screens joined together at a 90 degree angle (one front-facing, one on top facing down) and a semi-transparent mirror in the middle. Put on glasses and you can manipulate an image of brain in 3 dimensions, which should be very interesting for, eh, brain-scientists and playing 3D Tetris.

What’s fairly clear is that we are very close to having 3D in our living rooms, whether it’s for playing games or for watching (selected) TV-shows and movies. But 3D has the same problem that HD-DVDs and -TVs have, which is that it’s insanely niche. You can’t play everything on it and you need some pretty expensive equipment to play it. That combination doesn’t justify much of an investment in it.

The best chances for success belong to companies like Nvidia, which produce consumer-priced solutions for consuming content. Add to this that it is (relatively speaking) fairly easy to convert digital content from 2D to 3D. I very much see the next stage of gaming to becoming 3D.

I’m much more bearish on video-media. Great that cinemas have found a new revenue stream to subsidise their troubled existence. Great that 7 out of 10 filmmakers are considering to make their next film in 3D. I don’t think cinemas have to worry about living rooms competing with them on that level anytime soon. While the need for a big screen to enjoy 3D is a myth well-worth breaking (and it soon will be in gaming), it is still a powerful way to experience a movie and something you can sell at €/$ 15 a pop. Home-entertainment still has the expensive technology problem and the fact that BluRay DVDs simply aren’t selling to anyone except Playstation 3 owners.

As mentioned, 3D’s gimmick power is strong, but that will wear off after having 3D technology in your living room and hardly any media to consume on it. It’s much better off in cinemas where the growing few pay a few bucks more to see space debris floating above their heads, or on consoles where the price of a 3D add-on is hardly more than buying a Guitar Hero guitar.

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Having reached a personal milestone, part 5 of my entrepreneurship diaries, I should mention that it’s very pleasurable and useful for me to write on these topics, and I hope it’s the same for you. In this post, I want to briefly address the issue of uncertainty in early stage technology companies and how that affects management.

As I mentioned before, I was asked to join this company as CEO after consulting them on the commercial applications of this exciting new technology. Joining a year later, we had a good understanding of the strengths and weaknesses of the current organisation. During the consulting stage, I wrote a business plan with a fairly clear time line (to me and our sponsor), but it wasn’t being executed upon as required. One of my the deliverables I set myself was therefore to get development back on track, which not only respects the resource boundaries (financial, human, technological) we face, as well as sends out the signal that we are a serious business.

One thing I keep hearing over and over from entrepreneurs is that you have to be comfortable with ambiguity. And that is absolutely true. We continue to iterate on ideas based on changes in technology, customer and partner feedback, and our own ideas, something that would drive any sane man crazy, but we have to keep it under control. The best way that I find to do that is continuing to develop the vision of where we are going (the strongest motivator I can imagine) and maintain a loose type of project management that gets us to that goal.

I call this project management, as it deals with schedules, milestones, and resource allocation over a period of time. Uncertainty is an important factor to consider in this. In a large company, chances are you’re dealing with a predictable environment, in an early stage startup this is not the case. Getting a tighter schedule in place continues to be a challenge we are working on, however I find that being alert, flexible, and adaptive all the time contrasts with the more stable art of project management. Please correct me if I’m wrong, in which case present a solution also! Of course, there have to be thresholds in place, which to me is very much defined by risk assessment.

Regarding risks, let me start by saying that not all risks can be addressed, which is why being comfortable with ambiguity is so important. And second, there are many different types of risk, technology, financial, market, etc., but one usually outlines the thresholds that you have to respect. In my case, I see this clearly as market risk, as nothing matters if your customers aren’t buying… however, this really is not something to take for granted.

In medicine for instance, which is traditionally patent-based and largely dependant on a complex regulatory process, you have a 15 year window, of which you can spend up to 12 years developing your super-innovative cure. Clearly the technology risks outweigh the market ones (note: this ignores the rise of generic, cheap, knock-off drugs). In the web-industry, on the other hand, it’s perfect for rapid prototyping, it’s hard to protect innovations and easy for competitors to clone them, and it makes much more sense to push out your products asap. That means that there can be plenty of competition and the risk lies in grabbing sufficient market share to make a (sustainable) profit.

In our case, we are not as “high-tech” as medicine and not as “high-market” as web-development, in the sense that we face both market and technology risks. However, I see market risks as more important and try to align both market & technology approaches together. As an example, one of the things we did several months ago, was demo our technology to the general public and to selected partners. After the experience, we interviewed them thoroughly on their experience, as well as their initial expectations. We want to make sure that people don’t expect something different than what we deliver and that our product meets and exceeds their expectations. That gives us a clear view of where we want the product to go.

On a technology level, that presents us with certain thresholds in terms of “the experience” and price-points. And whenever we face a technology change, whatever solution is being developed, it has to fit within that end-picture the customer expects. That also overcomes the problem of black-box development, which is not uncommon in technology development.

So, that’s more or less how we continue to develop the vision for our company and the project management that supports it. We started with a lucid dream of producing great technology. We demoed initial versions and tried to align our vision to the needs of our users. And we end up (hopefully) building what our customers want and pay for. I would love to do this in a web-environment, as that really makes prototyping so much cheaper and quicker, but we do the best we can with our not so intangible technology.

All my entrepreneurship diary posts can be followed under the tag ‘Vincent’s eDiary.’ I don’t write about what we do as a company on purpose, but you can always ask in the comments or via the email address on the right.

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The following is a draft I wrote prior to the announcement of the iPad, but which I didn’t publish because it was a series of hypotheses based on an as yet non-existing product. It’s a series of thoughts on how an interface of a touchscreen larger than an iPhone might look like. It is inspired by both my experiences with Macs and since recently with an iPod Touch. Here goes.

A couple of thoughts I had last night (written on 13.01.2010) about interfaces, the current state of development for the iPhone OS, how Apple could build a hybrid of Mac and iPhone OS, and how the company could build multi-tasking into its rumoured tablet. My thought were the following:

a. A new category: I don’t think the iTablet, if it exists, will be either a Mac or an iPhone. My super-superficial reason: it doesn’t fit in the Mac line-up depicted on the online Apple Store (see pic), but a more underlying reason is that I don’t see space for it in either a Mac-category or a Mobile phone/media player category. Which is not to say that it won’t do either well, but I think it will more fall into the class of Netbooks, though of course with the purpose of bombing those low-tech, low-innovation devices out of the water… just like Apple did with MP3 players and with Phones. Note from today: as it turns out, the iPad is depicted below the iPod, iPhone, and Mac lines, but time will tell where it will be once it’s on sale.

b. The Keyboard: I think that any 10″ screen will demand more connectivity to secondary (Apple) devices than the iPhone allows for. That means, an external keyboard and mouse, which transforms the tablet into a desktop. I have less complaints about the software-keyboard now, after working with a Touch for a while, but I still don’t see it as an alternative for longer texts, which a larger screen would warrant. Some months ago, I made a stupid mock-up of the iPhone + a keyboard (see pic), which is how I envision it looking (only better).

c. The App Store: 3 Billion Apps downloaded, Apple just reported, which also suggests a kind of lock-in. For better or worse, developers have accepted the App-store and I think it works for several reasons for both, namely more protection from pirates, more predictability for developers when developing for the black hole that is Apple, and more control by Apple, which is what Apple likes, not to mention new income streams for both. I think the App Store will continue to exist and will present new challenges when talking about a larger screen. Note from today: I don’t believe that what we will get to see in less than two months will be that what people were playing around with after the Apple keynote. iPhone apps inflated to a larger screen, come on?

d: The User Interface: I’ve written previously about Quick Look in Snow Leopard and how I also dug its slight innovation in terms of in-icon playing of media. Previously, OS X also introduced Dashboard into Tiger (I believe), whose interface, on the surface at least, resembles the iPhone. My view is that Apple will give developers the option to just keep the same resolution apps as they have offered before, though not exclusively of course. But imagine “Quick Looking” an app and still having it run inside its “Icon,” while the user does something else. For the rest, I of course think that full-screen Apps will exist, which is where Dashboard comes in, or at least a type of Dashboard. (Note: that was wrong. More below.)

e. Integration with the Mac: One of the most underused interfaces, at least on my Mac, is Dashboard, which allows people to have continuously open widgets on anything from news, to games, to radio, to system monitoring. It’s useful for those purposes, but not really something i spend more than a few minutes at a time with. Yet the first thing that came to mind when thinking of a “Tablet,” using both iPhone and Mac interface components, was Dashboard. It creates a new layer on top of a traditional desktop, allowing for user-input and information display. When I envision someone running the apps that would work on the “iTablet” also, I think of it either being that you open up a new layer on your Mac and run the very same apps on it through something like a Dashboard-like interface. Or, and the simplest solution is usually the best, through having the Tablet sync through iTunes with regular applications on the Mac.

Note from today: well, obviously this was wrong, but there have been several theories aired of having a type of Dashboard on the iPad for apps like calculator and weather, which don’t at all make sense to run in single focus on a larger screen than the iPhone.

Further thoughts from today: I do think that we will see a new OS update for both the iPhone and iPad before the release of the iPad. This will address the concerns that people have about it just being a larger iPod Touch. For the rest, to me the only downside to this device is the lack of a front-facing camera for video-calling, and some minor things. And I also think it’s the perfect “parent device!” What the Wii was to gaming, the iPad is to computing, addressing a very very blue ocean.

As previously stated, I’m still in line to get one this year, though only after trying one first.

Vincent

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OK, time to write a few words about the iPad. In true spirit of fanboyishness I started (and finished) writing this post in bed on my iPod Touch. Let me start by saying that with reservations I want the iPad. Reservations include that like you, I haven’t actually used the device, and that it doesn’t include a front facing camera which is a real shame. Flash… Pah! I really don’t care. Anyone who experienced the professional look, feel and support you get even from a €0.79 game on the Touch or iPhone isn’t going back to freeware flash (read my Farmville review as an example).

I’m not trying to provoke you by being so dismissive of flash, even though I feel a lot of people really really hate how the iPad turned out. I am only writing out of my own current and past context and reserving final judgement until it’s in my hands.

My context is several. I was born into an age when there weren’t any personal computers. As a matter of fact, Apple had only just been conceived when I was born. I grew up without computers, until I got a toy Amiga at 13, and a very buggy 1st PC at 15. It ran DOS mostly and crashed a lot in Windows 3.1. I mention this because people in my generation suffer from a curse. We were forced to learn a zillion crappy commands as teens, which made our parents and family members consider us computer geniusses and not a week goes by when I don’t get at least 1 question about a bug in a computer. Last week, I spent maybe 5 hours trying to get a Wifi card to communicate with an Internet radio, I will have to set up skype VOIP at my parents’ house this year and who knows what else.

My no. 2 reason for getting an iPad? To give it to my parents and save me future headaches (knock on wood).

My no. 1 reason is different. Last December, my MacBook was lost on a train. I’m using an older MacBook from work at the moment and digging this iPod Touch a lot. In many ways I do more on the Touch now. It has its flaws of course, and no it has nothing to do with “openness” or flash. The screen is too small and there are times (less than you would think) where I need a physical keyboard.

So picture my context. I travel a fair amount, I think the MacBook is not always neccessary but the Touch/iPhone is not always enough. The Touch meets my casual gaming needs (serious games, that’s what consoles are built for), it kind of meets my wordprocessing needs (still typing on the Touch …). So why on earth, for that price, wouldn’t I want an iPad?

Truth be told, I was considering getting a sleek MacBook Pro to replace my lost MacBook. But for years, I’ve secretely lusted after a shiny iMac as well, never being able to justify having both a laptop and a desktop. The iPad is not a standalone PC. It needs to be synced with one (every week or so). But it also gives me a chance not not restrict computing to a small 13-15″ screen and buy a “real” computer so that makes sense to me.

In my UNIQUE context, the iPad makes sense. In my less unique context regarding my parents, it makes sense. 2010 is hopefully a year of less computing headaches and more of just getting things done.

the end
Vincent

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Materialism doesn’t matter. There, I’ve said it. Nothing material, nothing that you can touch, matters… when talking about computers. See, I’m not that evolved.

Between Christmas and New Year’s Eve, my laptop got stolen on the train. Last summer, due to a friend of mine “borrowing” my laptop at an event without telling me, I realised that I better start backing up if this were to happen again. So, on the 27th of December, a day before my laptop actually disappeared, I had a full backup made via Apple’s Time Machine, as part of my weekly routine.

And now, some hardware expenses later, one of which was a gigantic (640 GB) laptop hard drive by Western Digital which I’m loving, I have a different Macbook, but with exactly the same data I had before and am running it like nothing ever happened. And I’m telling you, I didn’t like spending money on this, but having all my data back feels like that money was inconsequential. Backups rock, as does OS X for having backup software built in!

OK, philosophically speaking, I’m still being materialistic about my data. Clearly, I’m not “if you could take one item to a deserted island data, what would it be?” material. But it’s kind of a revelation to me that hardware (and software) and money really is much, much less important than data.

I also hope that this inspires you to make a last minute resolution for 2010. Always back up your data because you never, ever know when it might just be gone.

Vincent

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I quit Farmville yesterday, after 3.5 weeks of pushing it up to level 20. In the first week, I wanted to write a review of how awesome it was and how it changed the social dynamic of Facebook. Now after a few weeks of wintery downtime, my gaming habit is back in the closet where it belongs, and my opinion is somewhat different.

What attracted me to Farmville in the first place? Well, in true Web3.0 spirit, it was someone raving about it on Twitter (Fidji Simo, I believe). It made me check it out and when I found out that some of my friends were on it, it made me give it a chance. I also remember SimFarm being one of the first games I played on my first PC and there was the nostalgia factor.

Farmville = FunVille?
The fun part of Farmville was to me truly the social dynamic. You build experience by doing different activities, such as growing fruit and vegetables, herding animals, and also helping out your friends. You can also give gifts to friends who in turn gift you back. All of that leads to two ways of measuring progress: experience points, which leads to new levels and abilities, and achievements, which you get after doing certain activities enough. While helping friends fuels my socialist—we are all equal, blablabla—self, the latter fuels my competitive—I am better, haha—self. As such, Farmville gives me complex feelings of satisfaction that can’t be found in every activity or game.

Now, while I admit that the latter statement is a little weird, but hopefully sufficient to explain why I liked the game, let me get to the parts that made me quit Farmville. They are, simply put: money, Adobe’s Flash, and boredom.

Farmville = CashVille
Farmville was admittedly the biggest blockbuster on the Facebook platform in 2009 and I have no doubt it will do well in 2010 also. The reason it is what it is, is because of its way of making money. Yes, if you want the easy way to winning, which is measured by how beautiful your farm is, you have to pay! There are three ways to pay for stuff in Farmville: achievements, such as having many neighbours or growing many tomatoes, which gets you free stuff; fake money, which buys you stuff; and Farmville money, which you get by either levelling up or by buying it for real dollars.

You can do pretty much everything you want without spending Farmville cash. Except for two things: expanding your farm, which would lead to having more real-estate and thus more “fun.” And, buying fuel. You can buy vehicles that make farming an easier chore, but using those vehicles requires fuel, which is expensive to buy and slow to recharge. The fact that I couldn’t sustainably earn income and spend it (without spending real cash) was a real downer in terms of gameplay.

Farmville = FlashVille
Flash made headlines these last few years mostly because of three things. It got bought by Adobe, its Air-platform and the sheer ubiquity of Flash as a development platform on sites such as Facebook. And, its lack of support on the iPhone / iPod Touch OS. And the latter is the case because Flash really sucks! It’s bloated, it’s not as good as pretty much any other interfacing technology (for lack of a better term), and it reminds us all of badly designed Myspace sites.

For me, the lack of iPhone OS support was a real factor as I got a Touch this Christmas, which became my nr. 1 Facebook interface, minus the reason* why I mainly visited Facebook these last few weeks (*: yes, yes, I really did mean it when I wished my friends a Merry Xmas and Happy New Year, but that just wasn’t getting me the experience points to get me ahead on Farmville…).

The second factor was that Flash is simply a bad technology. 1. it was incredibly slow and I had to reload the page several times, also losing my progress. 2. the Farmville interface is split up into blocks, on which you can farm, build, plant trees, or herd animals. Doing stuff on these chunks required actual movement of my avatar/farmer, who wasn’t moving to swiftly because of “Flashville’s bloatyness,” and I also couldn’t drag actions across the screen, which I would have been able to do even in the 16 years older SimFarm! Flash sucks and was the no. 2 reason for quitting Farmville.

I think Farmville would make the perfect iPhone App, but I really think Flash needs a major overhaul and/or be killed of.

Farmville = FrustrationVille
I already mentioned how repetitive the actual playing part became, going from one block to the next to plant or harvest. Every level felt slower and more frustrating, which was mostly due to Flash, but also perhaps due to Farmville making it harder to get to the next level. In the end, I kind of started wondering why I was playing this game and if I was even playing and not just doing manual labour. The only real reward seemed to be Farmcash, which you could either earn by levelling up (1 Farmcash per level, while buying more farmland costs like 20-30 farm-dollars, seems frustrating) or by paying real money (and that would just be sad). I could also spam my friends to join Farmville and become my neighbours, but come on!

I did get some satisfaction out of reading the several strategy guides that exist for Farmville and there really is no shortage of community support. But in the end it seems like Farmville emulates actual farming too closely, by making it tedious manual labour to grow stuff on your farm (mostly due to Flash sucking!) and it also makes it feel like serfdom, by having to buy Farmcash from your “masters,” in order to have a great-looking farm.

Well, that’s all I have to say on Farmville. It was a fun experience during the holidays and I don’t regret trying it. But while I think social gaming has a strong future, I really don’t like business models that rely on making its users’ lives more frustrating. I know World of Warcraft has a similar model and is the most successful multiplayer game ever made, but that doesn’t mean that it makes it the best game ever made. I can name a dozen single player and half a dozen multiplayer games that aren’t as successful financially, but just work well in terms of gameplay. And games like Farmville have a long way to go before they get there.

End review.
Vincent

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