Innovating in an Age of Personalization
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Innovating in an Age of Personalization
FountainBlue curates articles and information about the emergence of the Age of Personalization, and how leaders and companies are succeeding with the opportunities ahead.
Curated by Linda Holroyd
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Scooped by Linda Holroyd
September 4, 2014 2:39 PM
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Rocket Internet consolidates 5 of its retailers into a $3.5B global e-commerce giant

Rocket Internet consolidates 5 of its retailers into a $3.5B global e-commerce giant | Innovating in an Age of Personalization | Scoop.it

Rocket Internet, the German company best known for quickly churning out clones of successful online businesses, has announced that it will create an e-commerce giant by merging five of its existing regional e-commerce services.

The new company, named GFG, will be made up of Dafiti (Latin America), Jabong (India), Lamoda (Russia & CIS), Namshi (Middle East), and Zalora (South East Asia & Australia), the company announced. The new business will have a global reach, although the regional sub-divisions will retain individual business models, inventories, branding, and so on, in order to best serve their respective regional markets.

This merger will bring improved efficiency and sharing of resources and expertise, Rocket Internet said. Here’s more from its announcement this morning:

The five GFG companies combine a unique expertise of developing leading online brands (e.g. Dafiti in Brazil), building the necessary infrastructure including where necessary last mile delivery networks (e.g. Lamoda Express in Russia), creating leading private label brands (e.g. “Lara Karen” and “Sangria” by Jabong in India and ”ZALORA” and “Ezra” by Zalora in South East Asia) and delivering best-in-class mobile applications (e.g. Namshi in Middle East).

The combination will improve global best practice sharing across functions, deliver economies of scale in sourcing international brands and marketing with global media channels, strengthen the private label efforts, enhance GFG’s ability to attract and retain top talent, accelerate development of technology platforms, and enable GFG to acquire a leadership position in growth market fashion e-commerce.

Put together, the five business have a combined valuation of €2.7 billion (approximately $3.5 billion), 4.6 million customers, and more than 7,000 employees.

This is a strategic move as Rocket Internet has long been rumored to be to eyeing an IPO. Fellow German e-commerce site Zalando announced yesterday its plans to list on the Frankfurt Stock Exchange later this year. The two companies share Investment AB Kinnevik as an investor.

Linda Holroyd's insight:

German company to merge 5 successful online businesses: Dafiti (Latin America), Jabong (India), Lamoda (Russia & CIS), Namshi (Middle East), and Zalora (South East Asia & Australia)

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September 4, 2014 2:30 PM
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Innovation Excellence | 15 Examples of Open Innovation between Big Companies & Startups

Innovation Excellence | 15 Examples of Open Innovation between Big Companies & Startups | Innovating in an Age of Personalization | Scoop.it

Open innovation is a strategic game for big companies and one of the most important moves to consider for their innovation leaders is the allocation of focus and resources in the context of open innovation.

Here we need to consider that big companies like GE, Cisco or Microsoft tend to have 8-12 different value pools (think suppliers, startups, customers or universities) to consider for their open innovation efforts.

The challenge is that even companies that are good at open innovation only seems to be able to handle 3-4 value pools properly at the same time.

I have no doubt that the value pool of start-ups and entrepreneurs is highly relevant value pool for most big companies and there are lots of initiatives that underscore my reflections.

Just check out this list of corporate (open) innovation initiatives aimed towards startups. Let me know if you can add others!

GE: This is one of my favourite companies. A few years back, GE ran a string of Ecoimagination challenges aimed at start-ups, they have lots of initiatives focused on the startup heavy Maker community and now they have also launched a new, interesting initiative called FirstBuild.

On the latter, you should check this article: GE launches ‘microfactory’ to co-create the future of manufacturing


Cisco: The Entrepreneurs in Residence program allows Cisco to invite early-stage entrepreneurs with big ideas for enterprise solutions to join their startup incubation program. This includes access funding from Cisco, potential opportunities to collaborate with their product & engineering teams, co-working space in Silicon Valley and much more.

You can also check out this blog post: Open innovation: Harnessing the ideas, talent and passion of the startup eco-system


Samsung: Check out the Samsung Accelerator, which provides entrepreneurs with access to Samsung decision-makers, information, and distribution channels.

This interview with the VP of Samsung’s Open Innovation Center, Mark Sherdorff, is worth a read: Dancing Giants: Samsung’s Open Innovation Center


You can also visit the Open Innovation page for the Samsung Semiconductor division to get an idea of the differences in approaches within Samsung business units.

Telefonica: Wayra by Telefonica has been around for three years, and today, it is present in 11 countries across Latin America and Europe. It seems to be very well organised and it is very active with more than 300 startups engaged so far.

Coca-Cola: Coca-Cola wants to tap into entrepreneurs and their initiative is called the Coca-Cola Accelerator program. It is not so easy to find information on their efforts, but I have met some people at Coca-Cola working on this and it could become quite interesting.

Citrix: This accelerator is a seed-stage program with continuous enrolment that includes funding, a deep advisory panel, office space in Silicon Valley, close collaboration, and a focus on enterprise market validation.

Microsoft: Microsoft has brought most of their innovation initiatives towards entrepreneurs together under the Microsoft Ventures organisation. This includes BizSpark, which I mention here although it not as focused on startups as other initiatives as it is based on offering free software and support.

However, Microsoft also did some interesting things with their Accelerator for Kinect program a few years ago and we might see more like this in the near future.

Shell: Budding entrepreneurs within the energy industry (and even beyond) can get in touch with the GameChanger program at Shell. Here a team of 12 dedicated technical and scientific experts has the benefits of support from Shell while also being allowed the freedom to make their own decisions.

Turner/Warner Bros: Media Camp is a comprehensive three months accelerator program that educates entrepreneurs and enables them to build innovative media businesses.

Google: The Google for Entrepreneurs program includes a global community called Startup Grind.

DSM: Corporate venturing and open innovation seems to be linked closer and closer together and this is the case at DSM Venturing, where investing in emerging companies is considered as a key part of their overall outside-in open innovation activities.

Orange: The Orange Fab is a start-up accelerator aimed at helping start-ups by giving access to Orange assets.

You can also find lots of corporate innovation outposts in Silicon Valley, which have a strong element of interaction with startups. Some examples:

• Target Technology Innovation Center – San Francisco

• Walmart Labs

• Ford Silicon Valley Lab

Let me know if you can add other noteworthy initiatives in which large companies engage specifically with startups. Input is much appreciated!

Linda Holroyd's insight:

Clever ways BIG companies are investing in entrepreneurs and innovation

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September 3, 2014 1:53 PM
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What Will Really Happen in the Dirty War between Uber and Lyft

What Will Really Happen in the Dirty War between Uber and Lyft | Innovating in an Age of Personalization | Scoop.it
Before I launch into this topic I want to be transparent that my company is an Uber competitor here in Paris. Even though my goal in writing is to be as frank and open as I can, I'm still surely biased. So please take what I say with a grain of salt.

By several objective measures Uber is the fastest-growing company in the history of business. Humans have been engaging in commerce since before Fred Flintstone drove his car barefoot with Barney in the passenger seat, and in all that time there has never been a single enterprise that has grown faster. Competing with Uber's budget for customer discounts and driver bonuses is not the easiest thing I've ever done, but that is life. They raised $1.2 billion fair and square and will do what they think is best with it.

It looks like they are. I mentioned in an article two weeks ago that Uber and Lyft were trying to kill each other by outspending to get chauffeurs. Two weeks ago THIS came out. Then last week THIS (best of the lot). And then this. And now this one, which in my opinion is pretty accurate about how things may play out in the long term.

Even if none of it is illegal, sordid tales of Uber building a swarm of spies and setting them upon unsuspecting competitors' chauffeurs are starting to pile up and a lot of people are disgusted. The once magnanimous pigs have turned into...well...humans. Funny that we think that's bad.

It wasn't long ago that Uber was the savior, rescuing the world from the evil taxis. There to bring you home when you were drunk, to impress that girl, or to get from one business meeting to another. Dirty cars, rude drivers, shady pricing, and not being able to get a car when you wanted one were a thing of the past.

They and other players in each market have helped expose the arcane laws that governed taxi service territories, fought the illegality of car services picking up people on the street, introduced efficient and transparent pricing, and drove up overall service quality. Monopolies are never good at any of those things and Uber helped slow or at least provide an alternative to all of them (by the way, so has SnapCar, if you read the Economist). In my book that is to be lauded.

But these tactics they're employing now sound pretty bad. Cloak and dagger stunts that leave you saying "They spent money to do that?" Although from the inside I can tell you the tactics really aren't as bad as it's been described, many people are now convinced the public is turning against Uber, and that the backlash will really hurt the company.

Don't believe it.

What will really happen from this is:

  1. You now know more about Lyft than you ever did before, and that's driving up demand for their services. Do you know how happy Lyft is right now?
  2. More people are talking about Uber than ever before. Did you actually think that was even possible?
  3. Now that drivers are more aware of the lengths Uber will go to have them, surely more of them will go there. And Uber will pay them well, at least for as long as the money lasts. That's not a bad thing for drivers, is it?
  4. Those additional drivers will provide Uber with more supply than ever. So the next time someone checks for a ride, there's likely to be an available driver closer to you. Not such a bad thing, right?
  5. You'll be more aware of Uber than ever before, and so on a Wednesday morning at 3am, or after you've watched a live game featuring the world's greatest catcher, when you need to get to your last customer meeting of the week, or just when you want to go wherever, you might think of Sidecar, Hailo, or TaxiMagic. But I seriously doubt it.

Because as Oscar Wilde said: "The only thing worse than being talked about is not being talked about."

You'll think of Uber. And Lyft. Which is exactly how they want it.

About two years ago during a marketing chat with my co-founder I said "Like most Americans I believe in the adage that there's no such thing as bad publicity. We should use whatever tactics we can to garner attention - even if they're illegal - because people love scandal (and while we're at it, they also love Long Duk Dong: like you, grandpa just wants his automobile). those who are thinking about you might become your clients. Those who don't never will be."

"You don't get far in the long term by being unethical", he replied. "You get far by providing people with something that they love."

But what if you do both? How do people react then? Do ethics matter? I guess that's up to you, dear rider...I mean reader.

One thing is sure though: sometimes - like when pigs fight humans in a novel - it's hard to know which side is on the good side and which side is on the bad. Or even which is which.

Linda Holroyd's insight:

The war between UBER and Lyft will help launch an industry, and also the concept of deputizing contractors to serve local markets. 

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September 3, 2014 1:02 PM
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Where foreign STEM students study ... and spend their money

Where foreign STEM students study ... and spend their money | Innovating in an Age of Personalization | Scoop.it

Many of Silicon Valley’s most respected companies, from Google to Paypal, were founded by immigrants. In the race to capture the top talent, each state has been slinging various incentives at ambitious and foreign-born students. The Brookings Institute is out with a thorough new study and interactive guide to where foreign students choose to live, study, and spend their money.

Foreign students with science, technology, engineering, and math (STEM) degree aspirations overwhelmingly come from the Asian powerhouses in India and China. Hyderabad, India, sent 20,000 students with a student (F-1) visa, and Beijing placed a close 2nd at 19,000. But with 426,000 STEM-minded foreign students in total, no one country dominates the talent pool.

Where students live

It should be no surprise that foreign students congregate in the largest metro areas: New York ranks #1 with 101,000 F-1 visas. When combined, San Francisco and San Jose combined have about 57,000 students, which outranks Boston’s over 53,000 students.

Interestingly enough, as a percent of total STEM students, Texas and Florida are hot destinations. 80 percent of the Beaumont, Texas, area are tech-minded students. This appears to be connected to generous incentives given by the cities and universities.

Meanwhile, Los Angeles ranks 2nd in students majoring in business and marketing. The report finds that the University of Southern California has both the highest number of total foreign students of any school and has a unique international business MBA. USC students actually do consulting for foreign companies, with large companies paying $22,000 for this consulting service and associated travel expenses.

It appears that many foreign students have a plan to make money before they immigrate.

Spending money

If it wasn’t already clear, foreigners add to the US economy. Over the last decade, the share of upper middle income and upper income students have soared. These relatively well-off students “contributed approximately $21.8 billion in tuition and $12.8 billion in other spending — representing a major services export — to those metropolitan economies over the five-year period,” according to Brookings. “The New York metro area ranked first for total tuition ($2.6 billion) and living expenses ($1.6 billion) received from its 102,000 foreign students.”

Ithaca, New York, gets the biggest chunk of change for each students, at $58,000 for tuition and living expenses.

Unfortunately, Congress won’t be moving on any major immigration reform this year. So any policies to encourage more high-spending STEM students will have to wait until at least next year, if not longer.

The report itself has more for information that we can present in this post. You can play with the interactive graphs at the Brookings website here.

Linda Holroyd's insight:

The number of middle and upper income foreign STEM students have soared. Most come from Asia and India and land in Silicon Valley. 

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September 2, 2014 1:15 PM
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Teaching established industries new cloud tricks | #vmworld | SiliconANGLE

Teaching established industries new cloud tricks | #vmworld | SiliconANGLE | Innovating in an Age of Personalization | Scoop.it

Capgemini S.A. is focused on helping customers transition into a new age of technology tools. In combination with VMware, Inc., Capgemini is seeking to help customers enhance their businesses through social, mobile, analytics, or the cloud. These services, and implementing them with customers, is Capgemini’s “sweet spot.”

Sheryl Chamberlain, Capgemini VP and Global Partner Executive, sat down with Dave Vellante and John Furrier on theCUBE at VMworld 2014 to discuss Capgemini methodology and upcoming trends in the tech world.

 

Open source drives collaboration and new ventures

 

Capgemini takes a customer-centric approach, Chamberlain said. First, they listen to what the business is trying to achieve from data and analytics. Then, then go to their tech partners and figure out what solutions will best serve their customers.

New open source technologies, in addition to an atmosphere of openness, have opened up what Chamberlain called a “new world of collaboration.” Momentum, she mentioned, has been building around open source the Internet of Things. A few questions that Chamberlain has been collaboratively investigating include: “How can we use the information that we’re getting as we’re using our devices?” And “how can we integrate the next generation of success?”

Read more after the video.

 

Big industries using new tech to solve old problems

 

Capgemini is transforming along with their customers. While it’s maintained focus on the stack, Chamberlain said that Capgemini noticed that “customers are consuming smaller amounts of technology.” Many customers have already made transformative changes to their infrastructure, and are now trying to solve specific business problems. Capgemini is concentrating on helping businesses figure out how to best leverage the data they’re collecting from customers.

Some of the concrete ways Capgemini facilitating customer change are through Cloudification and SaaSification. Capgemini becomes part of business teams that make the decision-making process when changes occur.

 

Use case: Agriculture

Chamberlain used an agriculture company as an example. “They need to understand what’s going on in the field.” Capgemini can help that customer understand trends, like “when water will be more important or not important.” By facilitating data analysis, Chamberlain said that Capgemini can help the company figure out how to get more crops out of the land in the most effective way.

 

Use case: Retail

She also cited the retail business as an industry hungry for transformative technology because brick-and-mortar retailers now have to compete with online stores. A shoe company, Chamberlain posited, might be able to use an app to eliminate the waiting process and gain a better, faster understanding of their inventory. That way, in-store customers get faster answers to their questions and access to more knowledgeable customer service.

 

Next stop: Brazil

Shifting gears, Vellante asked Chamberlain to comment on Capgemini’s investment in Brazil. Capgemini considers Brazil to be a center of excellence because it is blossoming with new industries and new markets. Top Brazilian companies are looking for innovative technology, which is exactly what Capgemini finds most exciting.

Linda Holroyd's insight:

Love the concept: Saasification and Cloudification of traditional markets ripe for tech adoption

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September 2, 2014 1:00 PM
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Social Media in China Is Not Just About Facebook

Social Media in China Is Not Just About Facebook | Innovating in an Age of Personalization | Scoop.it

Facebook leads the pack, but other social media platforms, especially coming from China, are the ones to watch going forward.

Has it really only been 10 years since Mark Zuckerberg and his college cohorts founded Facebook? It might not have been the first social network, but it has grown to become by far the biggest and most influential.

German online marketing platform bjoerntantau.com recently compiled a list of the world's top 21 social networks, finding they have 5.7 billion user profiles combined. This, from an estimated global population of 7.25 billion. Although many of these will represent inactive and multiple accounts, it still represents a staggering amount of usage. But what state is Facebook in now and which are the most important social networks trailing in its wake? 

The Undisputed Leader

In October 2012, Facebook had surpassed the magic figure of 1 billion active monthly users. As of June 2014, Facebook had 1.28 billion active monthly users, and more than 1 billion mobile users, reflecting a major sea change in the way we are choosing to engage with social media. 

Some commentators have been predicting that Facebook has been reaching saturation point for the past few years, but its market dominance shows no signs of dwindling just yet. 

The Pack

Not far behind is YouTube. Whether you consider it to be a true social media site or not depends on your definition, but it is a place where users can interact and share content and the figures are truly impressive. 

The site has 1 billion active monthly users. More than 6 billion hours of video are watched each month, with100 new hours of video being added every minute. According to Nielsen, YouTube reaches more U.S. adults aged 18 to 34 than any cable television network. 

Twitter is often thought to be the second most important "pure" social network, but Google+ has overtaken the micro-blogging site, at least in terms of numbers. The search engine giant's social media flagship has shown remarkable growth over the past couple of years, rising from 435 million registered accounts in 2012 to more than 1 billion at the end of 2013. 

Only around 35 percent of those, however (359 million in the last quarter of 2013), are believed to be active, but most social media sites show similar levels of dormancy. 

Twitter itself has 271 million active users as of July 2014. 

WhatsApp has recently overtaken Twitter in terms of active users. In February, Facebook acquired the instant messaging service for a massive $19 billion. WhatsApp currently has more than 500 million users, sharing 700 million pictures and 100 million videos every day. 

Chinese Giants

Two of the most popular social media sites in the world remain unfamiliar names to many Western Internet users. Tencent's Qzone reports 645 million active monthly users as of the second quarter of 2014. Qzone is a multi-functional social network that allows users to write blogs and other content, share and send pictures, listen to music, and watch videos. 

Sina Weibo, a micro-blogging site that sits somewhere between Twitter and Facebook in design, has around 156.5 million users. The rise of these sites is largely due to two factors: China's vast population of more than 1.3 billion and the fact that western sites including Facebook, YouTube, Google+, and Twitter are all officially banned in the country. 

The Best of the Rest

There are a number of smaller but still significant social networks either bubbling under or rising rapidly to the surface. Before Facebook took an interest in WhatsApp, it bought the photo and video sharing social network Instagram for a reported $1 billion. The site has 200 million monthly users, with that number constantly on the rise. 

The business-oriented LinkedIn, claims to be the world’s largest professional network with more than 313 million members in more than 200 countries and territories. 

A study by Paris-based Semiocast in 2013 found Pinterest users reached 70 million by June 2013. 

Local Competitors

Social media is a truly global phenomenon. Qzone and Weibo are so popular that they're difficult to ignore, but there are also a number of alternative sites that are major players within their own markets but little known outside them. 

Some of these include Renren, which is some way behind China's top two but still boasts 51 million monthly users. VK (formerly VKontakte) is hugely popular in Russia and other eastern European territories, andOrkut has been a mainstay in Brazil and India. However, earlier this year its owner Google said it would be shutting Orkut down in September to concentrate on other assets such as YouTube, Blogger, and Google+.

The social network landscape is one that is constantly changing and evolving, as former market leader Myspace could tell you. In 2014 Facebook remains the dominant force, but it will be fascinating to see which players rise and fall in the months and years ahead.

Linda Holroyd's insight:

We've all heard of FaceBook, the undisputed leader. But here comes YouTube and Twitter. And with the banning of western sites like FaceBook, YouTube, Twitter and Google+, niche social media tools include Qzone and Sina Weibo, targeting the Chinese population of 1.3 billion 

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September 2, 2014 12:36 PM
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DevOps is real, but you can't get it just by buying a tool

DevOps is real, but you can't get it just by buying a tool | Innovating in an Age of Personalization | Scoop.it

We spend a lot of time and energy at Puppet Labs working to understand the impact and growth of DevOps among technology organizations across all industries and countries.

We share our learnings with the rest of the tech industry in blog posts, articles, and of course the annual DevOps survey. Our 2014 State of DevOps Report (.pdf) definitively shows that DevOps has a real impact on not just IT performance, but the performance of entire organizations.

In fact, done right, IT can be a strategic asset that can actually deliver higher profits and more business value.

One thing you’ll never see from us, though, is any of this work translating into a Puppet Labs “DevOps tool.” That’s because DevOps is not about specific tools. It’s about IT operations and software development working closely together to deliver software faster, with fewer errors. Tools enable this collaboration between people — they can’t create it.

DevOps is a cultural movement aimed at getting developers and operations teams aligned to reduce friction and deployment times, and to advance the goals of the business. While it’s hard to quantify culture, the benefits of DevOps are completely measurable: shorter software development cycles, fewer failed deployments, and fewer bug fixes all demonstrate that DevOps is simply a better way of working. Plus the people who talk to us about DevOps say it makes their working conditions and relationships much better, too.

When DevOps becomes a conversation about products instead of practices, so you can’t “be DevOps” without a specific product, it puts the entire movement at risk of being reduced to a tool choice, rather than staying on the level of changing behaviors or goals. Just as buying off-road tires for a 1970 Volkswagen Beetle won’t win you the Baja 500, buying DevOps XLS 2.0 won’t change the culture of your business to one that supports agility and continuous delivery.

Narrowing the focus of DevOps to specific technologies degrades the movement, turning it into mere product marketing. That’s unfortunate, because it’s clear that DevOps can be a major force for increasing the rate of technology change in organizations, enabling not just greater technical agility, but greater business agility.

Yet DevOps is a movement of technology people, and technology people use tools, discuss tools, try out new ones and discard old ones that no longer help them do the job. The development world has been doing this well for a long time. Yes, there are still COBOL developers out there, but in general, developers are always looking for better tools, and to drive new technology — some of which actually is better technology — out into the world.

The state of IT operations today is far different. It’s great that we have so many interesting new technologies, and that DevOps is working hard to push the state of the industry. But the reality is, we aren’t just a generation or two away from clearing out old technology in the IT operations world; we’re ages away. Adrian Cockroft and Netflix have set a great example of what companies at the true leading edge are able to do, but for most to advance along that path, we need to see a dramatic amount of change.

This change won’t happen for most companies in one generation, or even in a few. Furthermore, very few technologies will still be relevant a few generations later, which means any “DevOps product” is likely doomed to obsolescence by the time most people hear about it.

Even worse, a DevOps product, if it’s adopted too widely, has the potential to halt the development of DevOps itself by blocking experimentation and the fluid development of new ideas. You can’t evolve if you’re stuck with a specific technology or frameworkthat’s considered the key to doing your job right. Just look at all the heavyweight, high-overhead technologies companies still rely on, that are painful and slow to install or update — and that make it nearly impossible to deliver great things to customers quickly.

When I started Puppet Labs, one of my goals was to help sysadmins create a world where the time it takes to go from “the technology works” to “people are using it in production” continuously shrinks. If we can do that, without compromising production uptime or security, businesses can experiment faster, get quicker and more frequent feedback on new products or services, and keep iterating.

Faster technology cycles aren’t just a sign of technology competence or awesomeness: They’re an engine for faster and stronger business growth.

DevOps is all about promoting collaboration between traditionally siloed teams to enable the business. So I urge you to delve into DevOps culture and practices, and to encourage the changes within your organization that will bring about faster technology change.

But you won’t get there just by buying tools. The tools enable your people: They can’t create the culture

Linda Holroyd's insight:

Interesting thoughts on the importance and role of DevOps to the success of a business

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August 29, 2014 12:11 PM
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Capitalizing on opportunities presented by the Internet of Things

Capitalizing on opportunities presented by the Internet of Things | Innovating in an Age of Personalization | Scoop.it


The Internet of Things (IoT) is literally and figuratively everywhere. It is almost impossible to avoid this topic in technology circles – whether from industry research, blogs or company white papers, and expectations are high. Between now and 2022, Cisco estimates that IoT will drive economic value (increased revenues and reduced costs) of $14.4 trillion.


While the amount of noise created on this topic is loud and increasing, the topic itself is not brand new. Industrial and Consumer applications that broadly fit under the IoT banner have been around for several years, but the use-cases are evolving and growing.

What is it?

The Internet of Things is the next generation of computing, whereby physical objects interact automatically with each other, with their environment, and with broader analytics and control platforms. It is the combination of distributed information processing, pervasive wireless networking and automatic identification, deployed inexpensively and widely that promises to create significant end user value. The core technology elements of an IoT stack are:

  • Sensors and actuators that measure and control systems and equipment
  • Communication networks to transport the data
  • Data analytics to store and analyze the vast amounts of data
  • Decision support systems that are software applications to help take action
Why is this happening now?

There are a number of reasons that together form a perfect storm allowing IoT to really take off:

  • Sensors and actuators are cheaper, smaller, and more powerful making more computing power available on a distributed basis than ever before
  • Wireless connectivity is becoming pervasive. Cellular networks cover ever more of the land mass, wifi is nearly ubiquitous, and lower-power technologies like Bluetooth are becoming the norm in all kinds of products
  • Big Data platforms to take in, understand and federate data, and inform and interact with users are becoming smarter and more powerful
  • Proof points of economic value delivered by IoT applications are emerging from the field, encouraging further adoption and deployment of IoT
  • Increasing interest in and understanding by the technology community (and their investors) of IoT
What should I be thinking about?

It is imperative for technology executives to understand the value of IoT from two perspectives: monetization and revenue growth opportunities offered by IoT (external focus), and efficiency gains of their supply chains and distribution channels (internal focus).

To help frame the value creation opportunities offered by IoT, a use case driven approach is necessary to deeply understand and size the value creation opportunities. Waterstone's analysis of 40 IoT use cases across a handful of industries indicates that current IoT deployments are concentrated in three solution areas: Monitoring & Assessment, Decision Support and Connected Platforms.



Summary

Building an Internet of Things roadmap for a technology business with little prior knowledge will feel like a daunting task given the apparent unknowns. But given the perfect storm of conditions to drive momentum, the real and valuable emerging use cases, and the broad applicability across a huge variety of industry verticals, it makes sense to begin thinking – and acting – upon it sooner rather than later.

Linda Holroyd's insight:

Concise, crisp, meaty thoughts on the inevitable IoT direction

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August 29, 2014 11:24 AM
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UCSF's CareWeb is a social network for patient care, and Salesforce likes it -- a lot

UCSF's CareWeb is a social network for patient care, and Salesforce likes it -- a lot | Innovating in an Age of Personalization | Scoop.it

The University of California San Francisco (UCSF) has been building a secure new clinical communications and collaboration platform, and it’s already being used by hundreds of doctors and other caregivers at UCSF Medical Center.

The product, called CareWeb, gives doctors and other caregivers a social networking-like space where they can keep track of a patient’s care in the hospital. It uses a real-time newsfeed model, which works on both desktop and (iOS) mobile screens.

CareWeb is a tantalizing example of how healthcare providers can apply social media and mobile paradigms in clinical settings to better coordinate care.

“It’s kind of like Salesforce Chatter, but it’s built around the patient,” said Michael Blum, MD, director of the Center for Digital Health Innovation (CDHI), which has been managing the development of the product at UCSF. Chatter is a real-time enterprise communication platform.

CareWeb and platforms like it will also begin to replace outdated communication modes. “Caring for patients is a team sport, but the communication used by caregivers is single-threaded,” Blum said. He explained that the pages, texts, and phone calls commonly used by various care team members in the hospital are one-to-one, so nobody else on the care team knows what’s being communicated.

Blum says current communication modes also often require multiple steps and leave loops unclosed. When a nurse calls a doctor and leaves a message, it’s up to the doctor to listen to the message and then call back, Blum says. Too many steps.

CareWeb lets everybody watch in real-time all the activities (orders, prescriptions, tests, etc.) of various physicians, nurses, and other providers involved in the care of a patient. “It creates a social wall of communication and invites the whole care team to join in,” Blum says.

One of the reasons CareWeb resembles Salesforce’s Chatter is because it is built on the Salesforce platform. A number of Salesforce developers worked on CareWeb alongside developers at UCSF.

And the relationship may be about to get closer still. VentureBeat has learned from a reliable source close to the situation that Salesforce.com is now in negotiations with UCSF to buy CareWeb outright.

When asked about the possible deal, Salesforce spokeswoman Annie Meenan sent this email reply: “I can’t provide you with more info at this time as we do not comment on rumors or speculation.”

Still, an acquisition would make perfect sense. Salesforce has been looking for ways to move deeper into the health care industry. Earlier this year it announced a joint venture with Philips to build a cloud platform that can gather data from a number of clinical devices, like home health monitors for seniors.

Integrated patient data

CareWeb pulls in patient data from the electronic health record (EHR) to establish a “conversation” when the patient is first admitted to the hospital. At UCSF, that involves an integration between CareWeb and Epic, the EHR used by UCSF.

This EHR integration is how CareWeb knows who the patient is, what’s wrong with them, and who will be involved in treating them. Then all the communication, discussion, and collaboration happens around that core information. There is never a question of what patient caregivers are talking about on the social wall, said Raman Khanna, MD, the UCSF doctor who has been spearheading the development of CareWeb since its birth in 2011.

And all that information is searchable, too. Messages are searchable by sender, recipient, patient, or message content. This creates a body of communications and orders that describe the care of the patient from admittance to discharge.

Perhaps the biggest challenge in getting doctors to adopt a new communication platform like CareWeb is getting them to stop using the old ones. Texting has become a common way of communicating among hospital caregivers, but it’s an insecure mode, leaving patient data exposed to eyes that don’t need to see it.

Despite that, and despite the fact that texting is usually against hospital policy, physicians will default to texting and SMS messages, saying it’s “in the patient’s interest,” Khanna explained.

The communication in CareWeb, on the other hand, was designed from the ground up with HIPAA privacy compliance in mind. The “social wall” seen by caregivers is accessible only to people directly involved in the patient’s care.

CareWeb is integrated with the hospital paging system, so if a physician receives an alert on CareWeb, they will also get a page, Khanna said.

Patients get access to the messages in CareWeb, too. Not only do they have a right to monitor the services being renderred, but they can receive instructions on how to take care of themselves after they leave the hospital.

The problem is, some patients might misinterpret the communication stream in CareWeb about their care, because it’s filled with lots of clinical lingo.

“We don’t want to freak people out,” Blum said. “We are currently working through this part trying to discover how to do that effectively without really messing things up.”

Blum said CareWeb is also being outfitted to work in clinic environments.

Right now, most of the UCSF physicians using CareWeb are internal medicine residents and hospitalists (doctors who work only in the hospital), Khanna said. He said that by July of 2015 all UCSF Medical Center doctors, and lots of multi-disciplinary caregivers, will be using the platform for communication.

The CDHI at UCSF fosters new digital health technology by providing developmental resources and by leveraging external partnerships (like Salesforce.com).

Linda Holroyd's insight:

A mashup of Twitter, Facebook, and the electronic health record.

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August 28, 2014 12:05 PM
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Wikia's $15M shows the power of fandom -- and it's finding even more in Asia

Wikia's $15M shows the power of fandom -- and it's finding even more in Asia | Innovating in an Age of Personalization | Scoop.it

Wikia, a web hosting company of community-based websites for fans of movies, bands, games, and other subjects, has brought on $15 million in fresh funding.

Wikia plans to use the influx of cash to make itself more popular around the world, specifically in Japan and more generally in Asia, according to a statement today on the news. Joi Ito, director of the MIT Media Lab, will advise Wikia on its expansion efforts.

Not that Wikia is small. Wikia claims more than 400,000 fan communities with content in more than 200 languages. Wikia also receives more than 2 billion monthly page views (much of this traffic comes from mobile devices). And Wikia has secured partnerships with IDG, IGN, Warner Bros., and other companies.

The growth of the site over the years hints at the power of creating easy places for communities of subcultures to form. But some community sites win, while others fail. LiveJournal, for instance, no longer carries the gravity it once did. While somemusic fans still gravitate to MySpace, it’s not the behemoth it once was. Wikia has gradually built itself up on the technology front and made acquisitions of companies like Huddler that have helped it maintain freshness.

Digital Garage is leading the new round. Existing investors like Amazon, Bessemer Venture Partners, and Institutional Venture Partners, are also participating, according to the statement, alongside Asuka Investments, Tose, Suneight, and Nobuyuki Idei. Amazon also recently backed another web hosting company, Acquia.

Wikia announced an $11 million round in 2012.

Wikia started in 2006 and is based in San Francisco, with more than 200 employees.

Linda Holroyd's insight:

Funding for fans in niche spaces . . . popular in Asia

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August 27, 2014 11:30 AM
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Lumiata raises $5M to further its optimized medical-care analytics

Lumiata raises $5M to further its optimized medical-care analytics | Innovating in an Age of Personalization | Scoop.it

In case it wasn’t clear already, big data is attracting a lot of attention from investors. You can see this recent injection of capital into Lumiata, bringing its total investments to $9 million.

According to an SEC filing dated for Aug. 11, the predictive analytics company that uses a medical graph for making smarter care decisions raised $5 million in equity funding.

The Lumiata “Graph” provides care providers with predictive analytics based on a variety of factors including location, time, behavior, and pathophysiology. Staff at all levels of the medical industry — we’re talking doctors, nurses, health insurance companies, and more — can use the data to make decisions about patient wellness, diagnoses, triage, and more. It also makes identifying gaps in data easier to spot.

The analytics are available thanks to APIs that works in a number of situations and on numerous devices.

Back in January, the company raised $4 million in its first round of series A funding. The primary investor was Khosla Ventures. That round of funding went toward improving the company flagship analytics engine and expand to more hospital networks and health insurance carriers.

Lumiata, formerly known as MEDgle, was founded in 2013 by Ash Damle, the startup’s current chief executive. It’s based in San Mateo, Calif.

Linda Holroyd's insight:

Funding for Lumiata, which allows doctors, nurses, health insurance companies to make decisions about patient wellness, diagnoses, triage etc

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August 26, 2014 11:59 AM
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Strut lands $1.5M to build the perfect window-shopping app

Strut lands $1.5M to build the perfect window-shopping app | Innovating in an Age of Personalization | Scoop.it


Social shopping app Strut just closed on $1.5 million in funding to bulk up its team over the next six to nine months. Khosla Ventures led the round.

Strut may seem like a shopping app, but really it’s a social platform that supports shopping. It’s hard to know exactly what Strut is, because it hasn’t launched yet. But, its goal is to be more like Vogue than to innovate on the shopping experience.

“Most of the social commerce companies are trying to innovate around the buy button. We’re thinking about the next great network or platform,” Strut co-founder Mark Daniel told VentureBeat. Instead of focusing on how consumers can buy products in app, Daniel is integrating shopping cart service Two Tap (also funded by Kholsa Ventures) to take care of the buying component of his site. Meanwhile he’s developing Strut into a shoppable pinboard like Pinterest.

“How often to you look at or research or fantasize about luxury clothing? That’s like every day for a whole lot of people, especially girls like my sister who’s 16,” said Daniel.

Rather than capitalize on the commerce aspect of shopping, Daniel is zeroing in on how people make purchases: through research, and sharing links, and pining over them. You may not be able to afford that Chloe handbag now, but you may want to save for it and see if your friends think it’s worth a purchase. Strut essentially aims to recreate the sensation of flipping through fashion magazines and creating an imaginary wardrobe with product feeds, collections, and direct messaging to friends.

Strut was founded at the tail end of Daniel’s time at the Thiel Fellowship in 2013. He teamed up with co-founder Nate Chiger, whose previous startup PanoPerfect (like Instagram for panoramas, I’ve been told) won an Apple Design Award in 2014.

Chiger and Daniel plan on quietly launching the app in October with a big advertising push closer to the holidays.

Linda Holroyd's insight:

The innovation is not so much on the buy button, which is done by Two Tap, but about the social shopping experience, the shared wishlist.

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August 22, 2014 6:57 PM
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11 Startup Skills You Won't Learn in School

While some people knock advanced degrees, many entrepreneurs benefit from formal business training. But there are certain things even the best programs don't usually teach (or teach well) that are critical for you to master.

Eleven founders from YEC name the startup skills that only on-the-job experience can equip you with:

1. Startup-Style Leadership

Small teams are a totally different beast than a corporate environment. You have one person filling multiple roles, no clear ladder for advancement, and people who often have to train themselves. Employees in startups need to be much more empowered and forward-thinking than in traditional companies. It's not something that is taught in school.--Laura Roeder, LKR Social Media

2. The Power of Networking

A large part of success in business comes from the people you know and the power of your network. Schools don't talk about growing and cultivating networks or the many facets of networking (actively or passively), but everyone has a network and it would behoove students to learn how to maximize them.
--Darrah Brustein, Network Under 40/Finance Whiz Kids

3. Grit in the Face of Failure

You cannot learn grit in a classroom. Being an entrepreneur is about making the effort to create something from nothing. You can learn theories and best practices in a classroom, but you cannot learn the grit and dedication it takes to see your vision to the end. So much of success is in the willingness to invest 100 percent of your energy in the face of great uncertainty, and to wake up the next day ready to do it again. The path is not smooth and you will take your lumps. Grit is about falling down and getting back up, again and again. You can't learn that in a classroom.--Andrew Thomas, SkyBell Technologies, Inc.

4. The Loneliness of Being a Founder

Not to sound all melancholy here, but being a founder is lonely because all of the bucks stop with you. There is no one to complain to (negative feedback should only go up) and your job is to create solutions and constantly pitch in a positive light. "Never a bad day at a startup," a VC recently told me. That creates a barrier between a founder and the rest of the world around them. It's an interesting challenge, and finding a support system of mentors and advisors is crucial.--Trevor Sumner, LocalVox

5. It's a Marathon, Not a Sprint

Schools breed ambitious workers who run toward the finish line and try to answer every question right first above all, but this is simply not the best approach in the real world. There will be lessons you only learn by looking back, and there will be long droughts filled with disappointment. Instead of wallowing in that, reassure yourself that you're working toward a larger goal. You're in it for the long haul, and that is more valuable than any short-term victory.--Rob Fulton, Matikis

6. How (and When) to Scale

No school can teach you when it's the right time to expand your business, make new hires, and take on more responsibilities. A lot of the time this will come from a gut feeling and the strategic relationships you have built. No textbook can teach you this skill.--Jason Grill, Grill Media | Sock 101

7. An Effective Sales Process

For all that you learn about marketing, they don't teach you about effective sales. Nobody teaches the process from prospecting to suspecting, to lead development and nurturing, to closing the sale. 
--Jon Cline, Rokit SEO

8. Hustle

You can learn it. But you won't learn it in school. --Patrick Vlaskovits, Superpowered

9. Product Design and Creation

You can learn marketing theories and business operation strategies in school, but school can't teach you what to sell. You need to understand how to identify the market and how to create a product that your market will consume. This is very hard to teach, and usually comes into effect by someone stumbling upon it or being in the right place at the right time. I do think it's a great exercise to design MVP products or even just landing pages that are designed to promote an imaginary product. These really bring the product to life and can teach you a lot about what product creation is really all about.--Dave Nevogt, Hubstaff.com

10. Adaptability

School by nature is very static, with a built-in roadmap for how to graduate. It does not teach you how to scrap a roadmap and change your destination, as entrepreneurship often dictates. Learning how to adapt is essential to having even a chance at success in being an entrepreneur.--Phil Chen, Systems Watch

11. How to Live With Pressure

In school, the feeling and emotions that accompany stress come and go depending on tests, quizzes, and assignments. You stress, you take the test, then you are free to breathe a sigh of relief. Entrepreneurship is living with the fact that there is no sigh of relief, ever. Instead you learn to live with stress, you acknowledge it, and you learn to cope with it daily. Learning to live with stress and pressure is something no one can teach you but a challenge you have to face and overcome within yourself. 
--Kim Kaupe, ZinePak

Linda Holroyd's insight:

Gems from the trenches - what you won't learn in school about entrepreneurship

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September 4, 2014 2:35 PM
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Funding Daily: Another big bag of cash for the 'connected home'

Funding Daily: Another big bag of cash for the 'connected home' | Innovating in an Age of Personalization | Scoop.it

Today’s funding deals:

Savant picks up $90M

Savant, a company that sells connected-home devices and provides apps for consumers to control climate, audio, lighting, and other characteristics at home, announced today that private-equity firm KKR has invested $90 million in it. The idea is to make Savant popular around the globe.

Read the press release.

Black Duck pulls in $20M

Black Duck, a provider of open source software logistics, pulled in $20 million of venture funding Wednesday. General Catalyst Partners led the round, which included previous investors.

Read more on VentureBeat: OSS provider Black Duck pulls in $20 million

Avenida grabs $17.5M

Argentinean e-commerce site Avenida has pulled in some fresh funding, to the tune of $17.5 million. Founded in 2013 by Quasar Ventures (a sort of startup incubator or studio), Fede Malek, and Alan Kraus, Avenida is a large online retailer similar to Amazon. The company will use the new funds to continue growing the site’s inventory and available categories and products, add new features to the site, and develop a solid logistic platform. Tiger Global led the round, with additional participation from Naspers.

Find out more about Avenida on its website.

Webinar.ru raises $7.3M

Webinar.ru, a Russian web-conferencing company that provides native and cloud-based conferencing software, announced that it has raised $7.3 million in new funding. Webinar.ru works on any device, without the need to download software, and packs in a variety of features, including presentation and content delivery, desktop sharing, chat, polls, quizzes, and whiteboards. It can also support thousands of participants in a single meeting. Intel Capital and EBRD led the round, with additional participation from Flint Capital and previous investor VTB Capital.

Find out more about Webinar.ru on its website.

Feed.fm picks up $1.2M

Marketers spend gobs of money and even more time trying to devise ways to engage people with a particular brand. Not enough of them realize music might be the best way to do that — and that Feed Media could be music to their ears. Feed Media (aka Feed.fm) launched a “music-as-a-service” platform that allows companies to employ music on their websites, games, and mobile apps, as well as provide statistics on how people are engaging with a brand. Some of the startup’s clients include Budweiser, GameSalad, Starr Hill Brewery, and others. And today, the company has secured a new $1.2 million round, according to an SEC form D document.

Read more on VentureBeat: Feed.fm picks up $1.2M to inject music into your marketing campaign

Linda Holroyd's insight:

What's hot and fundable? connected home, retail, webinars, music

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September 3, 2014 2:20 PM
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Meet BuzzFeed's Secret Weapon

Dao Nguyen, the head of  data and growth at BuzzFeed, eyes half a pie and narrates a brief history of the first part of her career. "I wanted to be part of the Internet revolution," she says, explaining her stint in the late-'90s New York startup scene. She fled after the dot-com boom's implosion--a particularly messy moment for her, since she had to lay off many friends as her company, Concrete Media, went down in flames in 2001.

She's no longer bothered by this fact, she says, as she unwraps her pie, forks a bite and explains that, with the dreams of the first Internet revolution in tatters, she declared to her then-boyfriend, now-husband: "This is terrible. I want to quit and move to France and eat cheese and drink wine. I want to learn French and sit out this Internet recession."

So she did, moving to Paris, consuming her fill of fromage and vin, and also working her way up the French paper of record, Le Monde. From 2006 through 2008 she ran its digital arm--and did so quite profitably, a rare feat for a media site in the aughts. For this she gained wide esteem in the French media circuit, and within Le Monde she launched a new digital publication--sort of a proto-BuzzFeed or -Huffington Post, replete with celebrity coverage some critics there deemed gauche--called Le Post.

And with that, she got herself fired.

"That was fine with me. I never set out to run a big media organization. I never meant to live in France for the rest of my life," Nguyen says. "I'm not even a Francophile." (A request for comment from Le Monde went unanswered.)

This c'est la vie, let's move on attitude works well at Nguyen's current employer, BuzzFeed, where she first arrived in the summer of 2012. So does her zest for experimentation. In fact, it works really, really well. BuzzFeed is famous not just for its quizzes and listicles, but also for pioneering a data-driven approach to Web content, and the more well-known BuzzFeeders are quick to point out exactly how crucial a role Nguyen plays there as its vice-president of growth and data. "She brings this incredibly high-powered, abstract way of thinking to editorial. We have a lot of data; she is really good at seeing what it means," says BuzzFeed's editor-in-chief Ben Smith. "She just has a lot of intellectual wattage," 

Although Nguyen, 40, technically manages a team of just 10 people, she's become an in-office celebrity and is hailed as one of the key people--if not the key person--responsible for the company's outstandingly rapid growth in traffic over the past year.

"Since she's joined, we've had this tremendous and unprecedented run of growth," boasts BuzzFeed co-founder and CEO Jonah Peretti, noting that the site has nearly tripled its traffic in the past year since Nguyen began managing the data-science team last summer. Unique monthly visitors more than quintupled, from 28 million to 150 million, in the two years she's been with the company. "It's just like incredible to hire someone and say 'your job is growth,' and then you look, and she just like knocked it out of the park."

Nguyen's data group has affected within BuzzFeed a lot more than just, say, inspiring the creation of a few more Guardians of the Galaxy-themed listicles. Her work has helped BuzzFeed's editorial team carve out new coverage areas, and nurture them to significant traction through social-media and in-site technology. In the wake of the announcement that BuzzFeed is taking $50 million in new venture capital investment, her work is also influencing the vast restructuring of the company's 200-person editorial team.

You'd think she'd have made big waves by driving so much change in her short tenure. In a newsroom, bringing in someone whose job isn't strictly editorial--but whose success depends on instituting changes through editorial--can be a risky proposition. Journalists (trust me on this) can be very possessive of their craft, especially when business-side executives start moseying around their part of the office.

But editors at BuzzFeed say they liked working with Nguyen from day one, thanks to her editorial experience and her clear desire to help them do their jobs more efficiently. She also possesses a unique set of personality traits that seem to have helped her along the way, not least of which is her appealing sense of curiosity.

"I love talking to people, like, 'what's going on in this part of the business, and why are you seeing that? What information do you think would be interesting to have to think about your problem?' And I'll find that for them," Nguyen says.

For instance, Nguyen says she decided to try to boost BuzzFeed's lackluster weekend traffic by first approaching an editorial director and asking about her current strategy for socially promoting existing content, because she recognized the site being shorter-staffed on the weekends necessitated such an approach.

"We said. 'OK. We can write a piece of code that sends you, on Fridays, according to our analysis, the top 20 posts we should be promoting,'" Nguyen recalls telling the editor. And here she is quick to add she firmly believes that data should not determine one's editorial strategy, but rather inform one's decision. "You can promote them or not," she continues. "But this is what the data suggests."

After a few months of refining the weekend traffic-growth strategy, Nguyen says she's seen significant success: "The weekend growth has been faster than the weekday growth." (A company spokeswoman confirms this, saying that year-over-year weekend traffic in June and July rose 224 percent, while overall traffic rose 188 percent.)

Nguyen is also charged with overseeing growth in BuzzFeed's international sites, boosting its mobile traffic, and overseeing the algorithm the main BuzzFeed site uses to trigger certain content-placement. And she's created a new group--called Pin Ops--within BuzzFeed's editorial staff, almost solely to work in sync with remarkable traffic the site has seen from the image-centric social network Pinterest.

BuzzFeed Life now covers many areas editorially new to BuzzFeed, including parenting, DIY projects, food, and health. Pinterest has surged from barely being a traffic referrer when Nguyen was brought on, to now being the site's second-largest social-traffic driver. And the Life group is growing--according to a company spokeswoman, it is seeking to hire roughly 25 new editorial staffers.

BuzzFeed's growth hasn't come without strain. Recently, the removal of thousands of articles from the site drew much skeptical coverage (both Peretti and Smith maintain that staffers until recently were "not thinking of themselves as doing journalism"). Buzzfeedraised $50 million in a Series E round of funding in early August from Silicon Valley investment firm Andreessen Horowitz, which valued the company at $850 million, a move that puzzled some onlookers. 

Earlier this summer, I asked Peretti whether the company planned on taking another round of venture-capital funding, and gave a negative, with only a little wiggle room. "We're fortunate in that we're in the position where we don't have to take any more VC funding," he said. "So we would only take additional funding if we found a partner we thought could add a lot of value."

In addition to helping fund the editorial reorganization, the new investment will be used create an in-house incubator for new technology and expand BuzzFeed Motion Pictures, its Los Angeles-based video arm run by the online performance artist Ze Frank. It may also help fund future acquisitions, according to The New York Times.

Another newly announced change to the company is that it's investing in content that's "distributed," meaning that it's created by the BuzzFeed team, but isn't originating on the BuzzFeed Site. (This can entail use of communications and social apps--including SnapChat, Instagram, and Vine--to transmit content to fans.) That investment--which will require hiring 20 people--too, is based on research by Nguyen and her team.

In a digital media world stuffed with large personalities and self-promoters, Nguyen's disarmingly ego-free approach is readily apparent in conversation. She's quick to point out that some of her editorial ideas are "probably really bad," admits that she can't say that all of her "experiments have worked" and referred to a very cool diagram she dubbed "the growth funnel" she made when starting to analyze BuzzFeed's traffic growth as "not, like, totally innovative."

She's found that when it comes to the mobile Web--where more than 50 percent of BuzzFeed's traffic originates today--the second-most-common sharing method after Facebook was email, despite that sharing over email required several taps and much navigation. Nguyen tweaked the email-share button, making it more prominent, accessible, and ubiquitous on mobile devices. Within a week, she said, email shares rose by 100 percent. A pretty smashing success, by any standard, but Nguyen's reaction? "That's just an example, of, like, extremely low-hanging fruit."

And, as adept as she is at analyzing numbers (which she in part attributes to doing math problems at the dinner table with coaching from her Vietnamese-American parents), she is also adept at understanding the limitations of data.

"I think people would be surprised to know my relationship with data, which is actually one of great skepticism as well as great admiration," Nguyen says, adding that data only tells its observer what is happening, not why it's happening. "You have to know where its limits are. Using data properly is a constant stream of experiments and feedback. The human-learning of that is part of the culture that I think is probably the most difficult to replicate. 

But when I ask Nguyen to tell me about her specific accomplishments as head of data at BuzzFeed, as someone who literally has "growth" in her title, whose team is behind numbers the company clearly wants to tout, she deflects the opportunity to take a victory lap.

"BuzzFeed is a place where people are set up for success because it's a culture where you're allowed to do your job," she says,  citing a lack of bureaucracy, clear objectives, and plentiful resources as the keys to the ecosystem in which she's thrived. 

"My career trajectory has been kind of accidental in many ways," she continued, still almost comically humble, but adding a dash of sly wit. "I set out literally to drink wine and eat cheese. Which I accomplished." Along with a few other things, too.

Linda Holroyd's insight:

Hats off to Dao Nguyen, for helping us all figure out how to leveraging data to monetize content. More wine and cheese to you!

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September 3, 2014 1:06 PM
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Uber uses data science to predict where its riders want to go

Uber uses data science to predict where its riders want to go | Innovating in an Age of Personalization | Scoop.it

Uber is at it again, improving its alternative-cab service app after analyzing data on usage from its customers. This time, data scientists have come up with ways to figure out where exactly riders are headed, even in a densely packed city.

The researchers determined the accuracy of their model by comparing its predictions with anonymized information on more than 3,000 Uber passengers’ rides in San Francisco this year, according to a blog post today from Uber’s Ren Lu.

The system makes certain assumptions, taking into consideration a rider’s previous destinations, places Uber riders have gone to, and other factors, Lu wrote.

Uber has previously used data science and even artificial intelligence, to optimize its operations. Recently, for instance, the company concluded that drivers wishing to optimize their earnings would do better than to stay put in one place than to drive around. That observation came from a simulation from the company’s science team. As the company expands into more cities around the world, efficiency is key, and Uber is one of many companies both large and small that draw on their data to achieve that objective.

For this project, Uber drew on more conventional Bayesian statistics to take a good guess about the destination based on geolocation coordinates, Lu wrote. However, the system can predict a rider’s destination correctly 74 percent of the time.

The model should come in handy as Uber keeps growing and adding services like the UberPool car-sharing feature, she noted:

As we introduce UberPool, the carpool option of our app, where drivers make multiple pickups and dropoffs, these occurrences will only happen with increasing frequency … which means that any Uber rider destination popularity analysis is susceptible to be inaccurate due to noise.

Read Lu’s full blog post for much more detail on the approaches for solving its “uniquely Uber problem.”

Linda Holroyd's insight:

Look for an UberPool in your neighborhood . . . 

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September 3, 2014 12:56 PM
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Nexage says app developers have grown revenue 165% on its mobile ad marketplace

Nexage says app developers have grown revenue 165% on its mobile ad marketplace | Innovating in an Age of Personalization | Scoop.it

Nexage said app developers that use its mobile ad marketplace have seen 165 percent revenue growth in 2014. That growth rate is more than double the rate of growth of the market for mobile ads.

The revenue growth was driven by a combination of pricing and volume gains. Effective cost per mil (eCPMs), or the ad revenue generated for 1,000 ad impressions, has grown 55 percent so far in 2014 as brand ad buyers become more interested in advertising in apps. App marketers are willing to pay more for high-value users, and the result is increased competition for the available inventory of ad space in apps. Meanwhile, the volume of ads has increased 66 percent so far this year.

Boston-based Nexage released the details in its new Mobile Insights Report today. The report shows that ad inventory based on a Device ID, or the distinctive number associated with a smartphone, has become a popular way to target users with relevant ads. The eCPMs for ID-enabled ad impressions get a 67-percent premium over impressions without device IDs.

Developers can also target users based on location, resulting in more effective ads. Location-enabled impressions have a 49 percent eCPM premium over impressions without location.

Developers are also expanding their ability to display rich media and video ads, which Nexage calls high-impact ad formats. Since those kinds of ads get more viewership, the revenue associated with them is higher. Rich media-enabled ad impressions grew 346 percent so far this year, while video-enabled ad impressions grew 516 percent.

Linda Holroyd's insight:

In-app advertising on the rise - look also for rich media and video ads

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September 2, 2014 1:13 PM
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Floodgate closes its fifth fund with more of the same

Floodgate closes its fifth fund with more of the same | Innovating in an Age of Personalization | Scoop.it

If it ain’t broke, don’t fix it, right?

That’s exactly what seed-stage venture firm Floodgate is thinking as it closes its fifth and new fund. According to a filing to the U.S. Securities and Exchange Commission, this fund of just under $76 million, more or less the same size as its previous two, is again headed by managing partners Mike Maples Jr. and Ann Miura-Ko. Moreover, the fund will also have the same investing strategy, according to Fortune.

Floodgate has previously invested in buzzy startups such as Lyft, AngelList, IFTTT, Xamarin, Bigcommerce, TaskRabbit, and TapTalk, which SV Angel discovered on Product Hunt, resulting in the company raising a round of funding.

Among its investments, several have already exited, included Dasient (Twitter), DemandForce (Intuit), Gowalla (Facebook), ng:moco (DeNA), Playdom (Disney), and most recently Twitch.tv, which Amazon acquired. Maples invested in Justin.tv, Twitch.tv’s earlier incarnation, just before it graduated from Y Combinator and raised its first institutional round from Alsop Louie Partners and Felicis Ventures.

Floodgate was previously Maples Investments and morphed into Floodgate in 2010 with the addition of Miura-Ko and other tweaks to the firm’s setup.

Linda Holroyd's insight:

Congrats to Floodgate - looking forward to seeing them lead more entrepreneurial investments  

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September 2, 2014 12:52 PM
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No One Tweets Like the Japanese, and That Was a Huge Problem for Twitter | Enterprise | WIRED

No One Tweets Like the Japanese, and That Was a Huge Problem for Twitter | Enterprise | WIRED | Innovating in an Age of Personalization | Scoop.it

Twitter engineer Mazdak Hashemi says the Japanese tweet like no one else on earth.

When the New Year arrives or even as they watch certain moments in shows and movies broadcast on national television, tens of thousands of Japanese will tweet at practically the same instant. “Everyone tweets at the New Year, but the Japanese are more in-sync,” says Hashemi, who, as Twitter’s director of site reliability engineering, works to make sure its mini-messaging service stays in good working order. “They do it at exactly midnight.”

This provides a small window into the unique culture of the Japanese, known for exhibiting a certain type of conformity, but there was a time when it was also an enormous problem for Twitter. As the year 2012 arrived in Japan, the country’s synchronized tweets crashed Twitter’s entire service, worldwide. It was 3pm in Britain when the site went belly-up.

‘EVERYONE TWEETS AT THE NEW YEAR, BUT THE JAPANESE ARE MORE IN-SYNC. THEY DO IT AT EXACTLY MIDNIGHT.’

So, as the next New Year approached, Raffi Krikorian, one of Twitter’s lead engineers, urged Hashemi to find a better way of ensuring the site could handle the next wave of synchronized Japanese tweets. “I think he had some post-traumatic stress,” Hashemi says of Krikorian in the wake of the 2012 New Year. As a result, Hashemi and his team built a new system—known as a software “framework,” in engineering speak—that would let them mimic events like a Japanese New Year tweet storm and actually run these synthetic creations on the thousands of computers that drive the live site.

Internet engineers call it “stress testing,” and though this sort of thing is very common, Twitter’s situation was a bit different, and its methods could serve as a model for other online operations as they reach Twitter-like sizes. Because of the real-time nature of the site—where people expect to send and receive instantly, at all times—Hashemi and his team needed tools that could very carefully shape and reshape these massive tests, and because the service is used in this real-time way across the globe—it spans 240 million users who generate about about 5,700 tweets a second—there weren’t “off hours” when they could run live tests without having to worry about massive amounts of real traffic.

“We can’t test outside of business hours,” says Ali Alzabarah, who works alongside Hashemi. “We don’t have business hours.”

The tests Hashemi wanted to run were so large—larger than the real traffic storm that brought down the site during the last New Year—some engineers at Twitter didn’t even want him to try them. “They thought I was smoking something,” says Hashemi, who describes the company’s wider testing efforts in a blog post published today. “You’re pretty much putting your job on the line. It’s like: ‘Am I going to be here or not?’”

But the stress testing framework he and his team built also included new monitoring tools that would let them closely track the results of the tests—on a second-by-second basis—and scale them back as need be. In the end, these tests proved very successful—and the site stayed up for the next New Year, and the one after that. Last August, it also held firm when the Japanese helped set a new tweets-per-second record as they all tweeted at the arrival of a particular moment in the television airing of an animated movie called Castle in the Sky.

Much of this is thanks to a sweeping effort to rebuild the site using a software programming technology called Scala. And the company may be expanding into data centers in other parts of the world, so that it can serve foreign countries like Japan with dedicated local machines—though Hashemi declines to comment on this. But the company’s new stress testing framework plays its own important role. According to Adrian Cockcroft, a technology fellow with venture capital firm Battery Ventures who previously served as a chief architect at Netflix, another company that deals with rather usual types and amounts of online traffic, this sort of thing isn’t easy.

‘WE CAN’T TEST OUTSIDE OF BUSINESS HOURS. WE DON’T HAVE BUSINESS HOURS.’

“As soon as you get to enormous scale, the off-the-shelf testing products fail,” he says. “You have to synthesize so much traffic with a pattern that actually matters. You have to put a lot of thought into what the traffic pattern is, and it’s quite hard, then, to actually build it. There are certain subtleties to this.”

As other services across the net continue to grow, they too will face similar testing problems, and the good news is that companies like Netflix and Twitter are showing the way. Netflix has opened sourced many of the tools it has built to test its site, and Twitter is a company that works in similar ways, sharing many of its software creations with the world at large in an effort boost the larger community of sites and services.

Twitter has already open sourced a tool called Iago that generates the “fake traffic” for its stress tests, and though it has not released its stressing testing framework for carefully building and monitoring these tests—the thing doesn’t even have a name—the company could do so in the future. That could come in handy. After all, the Japanese aren’t going anywhere. Nor is the rest of the net.

Linda Holroyd's insight:

Thanks to Twitter and Netflix who are leading the way - helping others better manage usage spikes at a level we have never seen before

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September 2, 2014 12:34 PM
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Why the U.S. depends on Europe for building massive, 'multi-local' marketplaces

Why the U.S. depends on Europe for building massive, 'multi-local' marketplaces | Innovating in an Age of Personalization | Scoop.it

Whenever startup ecosystem commentators discuss how to create European technology businesses of global scale they tend to name one company as a shining example: Skype. Headquartered in Luxembourg and developed in Estonia, Skype is a revolutionary product and, rightly, a European success story. It sold three times in the last seven years; most recently, to Microsoft for $8.5 billion.

But there is a Dutch company whose revenue is greater than Skype’s, a company that is seldom talked about, but which offers another template for European entrepreneurs to emulate. Its name is Booking.com and, listing 456,000 hotels and other accommodation in over 190 countries, it is massive.

The Booking.com you see today is the product of two predecesssors: Active Hotels, founded in Cambridge, UK, in 1998; and its peer, the original Booking.com, founded in The Netherlands in 1996. These two companies got acquired by the U.S. giant Priceline, in 2004 and 2005, respectively.

Priceline’s Netherlands office, which houses the combined Booking.com unit, did $4.1 billion in revenue last year. That’s 60 per cent of the group’s total and likely four times greater than Skype is reckoned to be pulling under Microsoft.

“It would be tough to argue that there’s been a better acquisition in Internet history,”according to some. Put that way, it is easy to wonder if Booking.com shouldn’t have remained independent and become Europe’s leading standalone Internet company.

In Europe, we can do international marketplaces better than anyone

When a U.S. company builds a marketplace site, one which connects buyers and sellers, it typically focuses on North America alone (AirBnB being one of the very few exceptions).

But when startups in our fragmented and diverse continent build an online marketplace, they have to acquire merchants, customers, users and market share in multiple European countries to get really big. As a result, it has historically been hard to impossible for large U.S. marketplace companies to expand internationally in any way other than through acquisitions. The best example to illustrate this is eBay, the non-U.S. success of which seems to be entirely based on acquired companies. Marketplaces of European origins are much more comfortable in going international, country by country.

That isn’t easy, cheap, or quick. It was a decade after its start that Booking.com had its exit. Building a European marketplace takes shoe leather — real, on-the-ground presence in multiple countries, gaining trust and growing relationships. Take Just-Eator, in our investment portfolio, its counterpart Delivery Hero: You can’t build such a takeaway ordering service without employing dozens or hundreds of sales reps to go into restaurants in each country.

But the rewards can be great. Once a business has acquired a sufficient listings and customer base, once it has become the go-to brand, it is supremely defensible, and it is hard for any rivals to unseat it. This is enviable: An inter-European marketplace with top brand positions across the continent will always be an acquisition target or a strong IPO candidate in its own right.

Open marketplace opportunities

There are a number of still-underdeveloped areas open for upcoming European online marketplaces to dominate. My favorite examples are healthcare and beauty, which are highly recurring and very mainstream services representing huge markets of tens of billions of Euros of spend yearly.

At Point Nine Capital, we have invested in companies such as Docplanner, an international platform for booking medical appointments, or StyleSeat, a (U.S.-based) platform for booking beauty appointments. But there is much more to come: household cleaning services, handymen, car repair … lots of the services we use every day can make for a great marketplace opportunity.

As I pointed out in a recent blog post, I think that there are two types of startups: global and local/multi-local. It is very important for founders to understand which category their company is in, as it will have significant consequences for how they internationalize.

Skype will always be a great template for founders, but it’s just one template: one of a global brand and end-user product.

I would encourage European entrepreneurs to pursue the Booking.com playbook and creating scalable, multi-local marketplaces in large markets. And if you’re one of those startups, I’d love to hear about you.

Linda Holroyd's insight:

Go Multi-Local to go global

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August 29, 2014 11:27 AM
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Vital Connect gets green light from FDA for biosensor patch

Vital Connect gets green light from FDA for biosensor patch | Innovating in an Age of Personalization | Scoop.it

Connected health devices that help at-risk populations, like senior citizens and the chronically ill, make good sense. They help keep people healthy, and they ultimately save the system money.

A San Jose, Calif.-based company called Vital Connect announced today that it received FDA clearance for use of its HealthPatch MD biosensor for monitoring patients at home.

HealthPatch MD can be used for short-term monitoring of a patient who has just been released from the hospital, or as part of the follow-up care provided after a non-critical emergency room visit. The point is to allow the patient’s caregivers to keep tabs on them from afar 24 hours a day.

The biosensor is a small white plastic device that attaches to the patient’s skin. It has two components — a reusable sensor module and a disposable patch. It monitors heart rate, heart rate variability, skin temperature, body posture, fall detection, steps, and many other things.

The sensor uses Bluetooth 4.0 to connect to a relay or smartphone, and the relay transfers information by Wi-Fi to the cloud and then to caregivers. The data is encrypted to meet HIPPA privacy and security guidelines.

Caregivers can get notifications if there are sudden changes in key metrics or if any vitals metric goes out of the healthy range.

The CDC says more than 1.5 million people in the U.S. get home health services each year, with an average duration of 315 days. The Centers for Medicare & Medicaid Services project that home health care costs for 2014 will reach $86.8 billion.

Linda Holroyd's insight:

Vital Connect announced today that it received FDA clearance for use of its HealthPatch MD biosensor for monitoring patients at home.

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August 28, 2014 12:12 PM
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Funding Daily: VCs gave a lot of money to a 'server-storage mashup'

Funding Daily: VCs gave a lot of money to a 'server-storage mashup' | Innovating in an Age of Personalization | Scoop.it

Today’s funding deals:

Nutanix reels in $140M 

Nutanix, a startup with data-center hardware that marries servers and storage, has picked up a hefty supply of new capital to work with. The new $140 million round Nutanix announced comes just seven months after landing $101 million. This money will go toward research and development, sales, marketing, and support.

Read more on VentureBeat: Storage-server mash-up company Nutanix reels in $140M ahead of its IPO

Pluralsight grabs $135M

In the past, if you were a professional wanting to learn some new skills to get that promotion, switch jobs, or even switch careers, you’d enroll in some community classes. Today, you can use the Internet, and more specifically, services such as Pluralsight, which offers a variety of online courses for professionals and has just raised $135 million in a second round of funding.

Read more on VentureBeat: Pluralsight grabs $135M to expand online learning for professionals

GoEuro raises $27M

If you’ve traveled in Europe, especially as a tourist, you know that planning and booking travel is a tedious experience. Berlin-based travel platform GoEuro has a site that aims to make the process simpler. The company has raised a $27 million round led by New Enterprise Associates (NEA). Existing investors Battery Ventures, Hasso Plattner Ventures, and Lakestar have increased their investments in the company.

Read more on VentureBeat: GoEuro raises $27M for one-stop Europe travel site

Wikia scoops up $15M 

Wikia, a web hosting company of community-based websites for fans of movies, bands, games, and other subjects, has brought on $15 million in fresh funding. Wikia plans to use it to make itself more popular around the world, specifically in Japan and more generally in Asia, according to a statement today on the news. Joi Ito, the director of the MIT Media Lab, will advise Wikia on its expansion efforts.

Read more on VentureBeat: Wikia’s $15M shows the power of fandom — and it’s finding even more in Asia

Ybrain raises $3.5M

Korean companies are reaching out beyond the mobile realm. That fact is evidenced by the $3.5 million in Series A funding raised by Ybrain today, which will be used to build new products and expand the company’s internal team. The health care wearables startup has clinical trials in the works for various neurological disorders. The Ybrain is actually a wearable that’s brain signal-based. It’s working on a big data platform that compiles brain signal data collected from its devices. Ybrain plans to use this data to provide more intuitive and personalized treatments — as well as to specialize in creating products for patients with Alzheimer’s disease.

Read more on VentureBeat: Korean health tech startup Ybrain raises $3.5M to focus on medical wearables

Glassbeam adds on $2M 

The Internet of things has arrived. Glassbeam, Inc just announced new funding of $2 million and an expansion of its board of directors, pointing to the company’s continued growth and expansion in the IoT market. This brings its total funding up to $5.3 million. Glassbeam is known for SCALAR, a platform designed to process large amounts of data at once. This data is dubbed “machine data” in that it is generated by the growing number of connected devices now available. The IoT requires inherent flexibility, and SCALAR offers that by working with any data stream and any device you can throw at it.

Read more on VentureBeat: Glassbeam adds on $2M to refine its IoT platform, SCALAR

NeoReach lands $1.5M

A startup that automates the selling of “influencer” links for use by bloggers — headed by a 19-year-old Stanford student — has scored a $1.5 million seed round. The 14-person company, NeoReach, has developed a platform that rewards people on a pay-per-click (PPC) basis for sharing links through blogs, social media or other means. It is emerging from a trial period and formally launching this week.

Linda Holroyd's insight:

Server/Storage integration: Nutanix

Next gen online education: PluralSight

Next gen travel support: GoEuro

Fan community: Wikia

Healthcare wearables: YBrain

Machine data processing: Glassbeam

Pay per click - NeoReach


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August 27, 2014 11:32 AM
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BYOA: a new generation of tools

BYOA: a new generation of tools | Innovating in an Age of Personalization | Scoop.it

In a hyper-connected world where increased connectivity is the norm, the way we think about productivity has changed. These days, we not only expect people to be constantly accessible, but we have become accustomed to the ability to solve a given problem at a moment’s notice. Technology is fueling these expectations, especially in the workplace. With the cloud, information is always accessible and with increased mobility, it’s available when and where we need.

The technology enabling this enhanced productivity – coupled with a workforce that is increasingly self-sufficient and entrepreneurial – is what’s fueling something called bring your own application (BYOA) phenomenon. We’re encountering a new generation of workers who see a problem, want to fix it, and will go build or create the necessary tool themselves and move on instead of waiting for an IT supported and “approved” application to be built for them.

Nurturing a BYOA culture in your organization leads to greater productivity and benefits including innovation, happy customers and engaged employees. But, as most CIOs fear, this new phenomenon can become a double-edged sword without proper governance. The key is to give your people the freedom to solve problems, while still implementing a set of guidelines that work to create accountability, especially in organizations and industries that may require more security.

With that in mind, there are four questions to consider when creating a productive and worthwhile BYOA culture.

1. What will BYOA mean in your organization?

Will BYOA come to mean bring or build your own application, or both? There is a real difference in how you can approach BYOA and the pace at which you adopt these practices. Dropbox is a great example of bringing your own application. You may purchase, download, and begin using the application right away. Like other applications, it solves a specific problem and provides an immediate solution, without involving the IT department. However, customization is limited.

This is where building your own application comes into play, allowing you to customize the technology that best suits your company’s needs. Building an application empowers the company with ready-to-use templates that enable them to quickly solve problems specific to their organization. They’re quick to build, simple in structure and repurpose-ready.

2. How will you protect your information?

Protection management is one of the most critical decisions. The challenge with some cloud storage services lies in the fact that information lives outside the boundaries of the organization and, in regulated industries, this poses many hurdles and risks. When building business applications, you may create new information that needs to be protected and managed for synchronization while avoiding duplication. CIO’s must decide on a roadmap and the right tools that will allow them to turn data into logical business information and hide the complexity of where it originates, or how to save and update it from the end users.

For information that needs to be protected by source systems (e.g., SharePoint, SAP, Oracle, MS CRM, etc.), the build method may work best, as it allows users to abstract their information and surface it as a logical business entity to leverage when building their own apps. It also has the added benefit of never duplicating or copying the data, so no additional risk is introduced to the organization.

3. What role does mobile play?

The original BYOD phenomenon – bring your own device (BYOD) – means there are plenty of devices and platforms that are in use across your organization. In order to have successful adoption of applications and drive a viable impact on the business, it’s critical that new applications and solutions can be built once and then quickly modified to play across other devices.

The same concept applies to data security. It is possible for mobile applications to be built so organizations can understand where they are being accessed from and what data should be made available offline. These applications also enable overarching data protection and know how and when to sync end-user interactions. In addition, templates can be used so you can easily build these types of applications without needing to consider technical design decisions.

4. How can you use this next generation of tools to empower your organization?

Employees want to focus on solving business problems and driving results. They don’t want to wait for IT departments to “fix” their problems and they don’t want to focus on the technicalities of how to build applications to solve their problems. Instead, they’ll embrace new tools, adopt new concepts and embark on a new (and faster) approach to drive the business forward. This is a paradigm shift enabled by technology and CIOs need to invest the time to embrace next-generation solutions into their organization. A change in mindset is being asked of leaders, and while it may sound small, it isn’t easy – and can be the difference in an organization’s ability to truly realize the benefits of a BYOA environment.

Linda Holroyd's insight:

What app or tool would *you* bring to the table? What would IT think of it?

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August 26, 2014 12:03 PM
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Theatro, the Pioneer in Voice-Enabled Enterprise Wearable Devices, Raises $8.8M in Series A Financing

Theatro, the Pioneer in Voice-Enabled Enterprise Wearable Devices, Raises $8.8M in Series A Financing | Innovating in an Age of Personalization | Scoop.it


Theatro, the pioneer of voice controlled wearable communications devices for hourly workers in the retail, hospitality and manufacturing market segments, announced today that it has closed a $5 million investment from Khosla Ventures in a Series A round. After securing early backing from an “A-list” of angel investors, this round brings the total investment in Theatro to $8.8 million. Ben Ling, investment partner at Khosla Ventures, who served in senior operating roles at Google, YouTube and Facebook, led the investment and has joined Theatro’s board of directors. The capital will be used to help Theatro aggressively expand its sales and marketing efforts as well as broaden and accelerate product innovation.

“Improving workforce productivity and customer satisfaction is at the heart of Theatro’s suite of products and is a major challenge for most retailers,” said Ling. “We are excited to work with Theatro during their next phase of growth as they roll out the service to retailers across the nation.”

“Hourly employees are one of today’s most valuable workforces, and they could be more effective and productive with innovative technology tools available to them,” said Chris Todd, Theatro CEO. “Ben Ling and Khosla Ventures share our vision of the prominent impact that enhanced enterprise communications can have on mobile workforces by connecting employees to one another while they’re on the job and also to their company’s business information. We are very excited to be teaming with KV as we redefine the future of this important and growing workforce.”

The Series A financing builds on the continued momentum of the company since announcing the commercial availability of their SaaS offering in December 2013. The company is rapidly growing with a notable list of national retail clients and opened a research and development (R&D) center in Bangalore, India in February of 2014.

About Theatro

Theatro has pioneered the market’s first voice-enabled enterprise wearable coupled with a software suite of productivity applications for brick and mortar retail, hospitality and manufacturing enterprises. Our “Heads-Up and Hands Free” mobile communications and management solution, delivered over the in-store WiFi to every hourly employee, is the perfect solution for on the move workforces. To discover how Theatro can help with hourly worker productivity, please visit www.theatro.com

About Khosla Ventures

Khosla Ventures provides venture assistance and strategic advice to entrepreneurs working on breakthrough technologies. The firm was founded in 2004 by Vinod Khosla, co-founder of Sun Microsystems. With over three billion dollars under management, the firm focuses on a broad range of areas including consumer, enterprise, education, advertising, financial services, semiconductors, health, big data, agriculture/food, sustainable energy and robotics. Khosla Ventures is headquartered in Menlo Park, Calif. For more information, visitwww.khoslaventures.com.

Linda Holroyd's insight:

Funding for a voice-enabled enterprise wearable which offers a software suite of productivity applications for brick and mortar retail, hospitality and manufacturing enterprises

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August 25, 2014 12:03 PM
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Amazon In Shanghai, Wal-Mart In Drugstores

Amazon In Shanghai, Wal-Mart In Drugstores | Innovating in an Age of Personalization | Scoop.it


Two of the world’s biggest retailers are in the e-commerce headlines, led by a move into Shanghai’s new pilot free trade zone by global giant Amazon. At the same time, Wal-Mart-controlled Yhd has become China’s first e-commerce firm licensed to operate online drugstores, giving it a potential edge over other rivals also eying the space. Both of these stories highlight how the big international names are trying to use their clout and global connections to carve out a space in China’s fast growing but highly competitive e-commerce space, which is now dominated by the domestic pair of Alibaba andJD.com.

Let’s begin with the more intriguing of the 2 news bits, Amazon’s announcement that its global division is setting up shop in the Shanghai free trade zone (FTZ) that was launched with much fanfare nearly a year ago. (Chinese article) Amazon already has a China division that has expanded rapidly over the last 2 years, but is still a relatively small player with less than 2 percent of the nation’s e-commerce market.

This new initiative will see Amazon’s global unit open a shop in the FTZ selling goods available from its main site at Amazon.com, to take advantage of the zone’s preferential trade policies. Users will be able to pay for goods using local currency, and Amazon is promising competitive prices, including relatively fast shipping times for the imported goods. I suspect that Amazon will import and store many of the most popular goods in the zone, enabling it to make quick shipments after actual orders are placed.

The move makes Amazon one of the first major non-financial companies to set up shop in the FTZ, which has made nonstop headlines over the last year as more details emerge on what exactly it will offer. Preferential import duties appear to be one of the biggest benefits, which is why Amazon is making this move.

This kind of step plays to Amazon’s strength as an international company, since it will now be able to offer Chinese consumers a wider range of imported products at attractive prices that they can’t find on the big domestic sites. Amazon still has a long way to go before posing a serious challenge to Alibaba or even JD, but at least this kind of move will help it to differentiate itself as a different kind of e-commerce company for Chinese consumers.

Wal-Mart has made similar moves with Yhd, formerly known as Yihaodian, which also set up its own shop in the Shanghai FTZ late last year. (previous post) Wal-Mart has also used its international connections to help Yhd build up its imported food business.

Yhd’s latest move into the online drug business looks groundbreaking, even though it has less international in flavor. According to reports, Yhd has become the first e-commerce company officially licensed to operate in the lucrative drug space. (English article) The license is relatively limited, and will only allow the company to offer over-the-counter (OTC) drugs rather than more lucrative prescription drugs to line shoppers. Most or all of those sales will come from third-party merchants that already operate stores on Yhd’s open platform.

This move looks like a mostly symbolic win for Yhd, since the other big e-commerce players are expected to get similar licenses as China allows more drug sales online. What’s probably most significant is the fact that a very small player like Yhd beat out all the big companies to receive the first license, which probably owed at least partly to its Wal-Mart connections. Look for both Amazon and Wal-Mart to continue playing on their global ties to gain advantages over their domestic peers, though it could still be years before either poses a major challenge to the two current leaders.

Bottom line: Amazon’s move into the Shanghai FTZ and Yhd’s winning of an online drug license play on their global clout, as they try to differentiate themselves from bigger domestic rivals.

Doug Young is a former China company news chief for Reuters who teaches financial journalism at Fudan University in Shanghai. To read more of his commentaries on China tech news, click on www.youngchinabiz.com.

Linda Holroyd's insight:

Big players moving into drugstores: Amazon’s move into the Shanghai FTZ and Yhd’s winning of an online drug license play on their global clout - pitting themselves against local retailers

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