The rise and fall of the web

This is my part of a joint newsletter with Rohit Talwar, his was published just now as a guest blog.

The rise and fall of the web

20 years ago, the web was in its infancy and the first conferences appeared where we could all discuss what was coming next. Even then the need was obvious for search engines, portal sites, firewalls, social networking, online shopping, auctions, discount buying schemes and so on and even the seedier side of the web was already obvious back then. Not much around today on the web wasn’t being discussed 20 years ago. It just took that long to emerge and evolve into what was anticipated. What has happened is exposure of the naïve optimism of some of the early debate.

Over the coming years we saw the expected creation of companies like Amazon and ebay, Facebook, Twitter and Google, and the rise of already existing companies such as Microsoft, Apple and Samsung, in some cases from niche player to market dominance. Without exception, the companies I mentioned deserve praise for struggling through the difficult phases of market creation and the sometimes huge and prolonged losses leading up to break-even and eventual profitability. They all started with a dream and made it happen, knowing they would succeed if they worked hard enough at it.

Without wanting to remove any of that praise, it is hard not to wonder if at least part of the dream is starting to turn sour. Is there evidence now that power corrupts? Does possession of a strong market position always lead inevitably to market abuse?

In each case, there are recent examples of less-than-saintly behaviour, but some issues are spreading as a problem, so rather than pick on individual companies, I’ll focus on the issues. In each case, a large company with little effective competition is in strong position to force these policies since they know customers and clients can’t easily just walk away. There is no cartel, but if a problem happens to affect all the main providers for a service, or it is a de-facto monopoly, you really have no choice.

Privacy invasion or at least scant regard for privacy is the biggest issue for some, introducing policies that make it hard for users to remain private. In this case, the reason is obvious. Privacy conflicts with extracting maximum market value from a customer’s personal data. I don’t personally want everyone to know what I just bought online, what I watch on TV, what games I play or what music I am listening to, or to have full access to everything I ever typed on a social networking page. The choice we seem to be presented with is simple. If you don’t want to be fully exposed 24-7, either don’t use the web or a mobile app, or be prepared to spend time frequently to check every site you use carefully for their latest policy changes to make sure an oversight doesn’t allow your privacy doesn’t fall through a new hole they just dug. But even that may not be the real choice now. The emerging pattern seem to be that changes may be introduced retrospectively, eradicating any value in privacy commitments in existing policy. If that behaviour spreads, then any privacy you think you have today is merely an illusion.

Burning the candle at both ends is another recent issue. Although the web has few of the costs associated the with high street, large web companies are charging high fees now to companies to sell via their site, much the same as property developers with the best locations can charge high fees to shops. That end of the candle is well alight, but customers are finding the discounts offered are often far less now too. Now that they have been psychologically hooked by the web empires, prices are rising.

Walled gardens were a consideration for regulators when mobile and broadband networks were emerging – I took part in several workshops discussing their merits and drawbacks. Telecoms regulators understood well that dominant telecoms companies might try to force customers to use only services within their own areas of control, i.e. to stay in their walled garden, and they legislated accordingly to protect customers. It was presumed that competition would suffer greatly if people were not free to wander as they pleased and exploitation would follow soon after.  However, although some of the web giants are heading rapidly and determinedly down exactly that path, the authorities are either looking the other direction or unable to do anything about it. It seems that any regulators that do exist have too vague boundaries on their remits, or the companies fall outside their jurisdiction geographically, or they simply have too many issues to deal with and can’t keep up. It is unacceptable that we now by default have arrived at a business platform that lends itself to abuse but isn’t being properly controlled by the normal regulator processes that apply as standard elsewhere.

Arrogance is a term we hear thrown at web giants frequently now, and it does seem appropriate when a large company ignores protests by its customers and imposes policies that significantly affect the terms and conditions that applied when they first became a customer. Even incrementally small changes can add up to large change in a short time, but if customers have invested time and effort building a profile or establishing a place or network on a site, the personal costs of migration can be too high. There ought to be equivalent rights protecting the interests of customers online just as in the physical world, but online providers appear to be able to make their own conditions of use with much greater scope for abuses, knowing that very few customers will read many pages of small print. Especially where websites feature heavily in everyday use, and where not being a user might even may be a career or social impediment, there should be more protection from arrogance and unilateral determination and management of user rights. Some regulatory body should be making sure terms and conditions are fair and balanced because the market isn’t doing that by itself.

Another aspect of arrogance is the enthusiasm to avoid taxes by exploiting holes in the law, and reading between the lines, it is as if the companies think they know best how money should be spent for humankind’s best interests, not governments. They may be right about government, but that doesn’t excuse arrogance.

Reintermediation is a direct consequence of walled gardens but is an issue in its own right. Early analysis of the web suggested it would lead to perfect markets, where people would be in direct contact with suppliers, thereby cutting out the middle man and his costs while forcing perfect information and hence maximum competitiveness. With good search, it would be easy to find all potential suppliers for something and compare them directly, and there would be no need to go via an agency. What we have now is interesting in that the search sites have themselves become intermediaries, and comparison sites another layer of that, listing results from a subset of suppliers. So instead of removing an intermediary we generated two new ones, three if you use an app store to do it. Everyone wants a slice of the pie of course, but the web was meant to bypass that, and it simply hasn’t. People can go direct, but it doesn’t take long to discover that using a search engine will often put hundreds of pages of the wrong sites before the one you search for. Most of the listings on the first several pages will often be intermediary sites.

In spite of all this, the potential of the web hasn’t gone away. It still allows word of new sites to spread rapidly, for reputations to be made and lost, for empires to spring up overnight, and for old ones to crash and burn. Boredom is under-rated as a motivation to change too. Social network sites in particular are highly vulnerable to their customers simply getting bored and leaving, but new designs and novel ideas can present a real threat to any of them. The sword of Damocles hangs over all.

For all their size and momentum, none of the web giants is guaranteed longevity. As some of yesterday’s giants discovered, a startup can replace them in just a few years. Maybe the first generation of web giants has climbed high, but decadence and abuse of power have made them ripe for conquest. All we need now is to wait for the imminent emergence of the second generation.

Technology Convergence – What’s your Plan? Guest post by Rohit Talwar

Rohit is CEO of Fastfuture and a long-standing friend as well as an excellent futurist. He and I used to do a joint newsletter, and we have started again. Rohit sends it out to his mailing list as a proper newletter and because I don’t use mailing lists, I guest post it here. I’ll post my bit immediately after this one. I’m especially impressed since his bit ticks almost as many filing category boxes as it uses words.

Here is Rohit’s piece:

Technology Convergence – What’s your Plan?

I have just returned from South Korea where I was delivering a keynote speech to a cross-industry forum on how to prepare for and benefit from the opportunities arising from industry convergence. South Korea has made a major strategic commitment starting with government and running through the economy to be a leader in exploiting the potential opportunities arising from the convergence of industries made possible by advances in a range of disciplines. These include information and communications technology, biological and genetic sciences, energy and environmental sciences, cognitive science, materials science and nanotechnology.  From environmental monitoring, smart cars, and intelligent grids through to adaptive bioengineered materials and clothing-embedded wearable sensor device that monitor our health on a continuous basis – the potential is vast.

What struck me about the situation in Korea was how the opportunity is being viewed as a central component of the long-term future of Korea’s economy and how this is manifested in practice. Alongside a national plan, a government sponsored association has been established to drive and facilitate cross-industry collaboration to achieve convergence. In addition to various government-led support initiatives, a range of conferences are being created to help every major sector of the economy understand, explore, act on and realise the potential arising out of convergence.

I am fortunate to get the opportunity to visit 20-25 countries a year across all six continents and get to study and see a lot of what is happening to create tomorrow’s economy. Whilst my perspective is by no means complete, I am not aware of any country where such a systematic and rigorous approach is being taken to driving industry convergence. Those who study Korea know that this approach is nothing new for them – long term research and strategic planning are acknowledged to have played a major role in the evolution of its knowledge economy and rise of Korea and its technology brands on the global stage. Coming from the UK, where it seems that long term thinking and national policy are now long lost relatives, I wonder why it is that so few countries are willing to or capable of taking such a strategic approach.

Rohit on the Road

In the next few months Rohit will delivering speeches in Oslo, Paris, Vilnius, Warsaw, Frankfurt, Helsinki, Denver, Las Vegas, Oman, Leeds and London. Topics to be covered include human enhancement, the future of professional services, the future of HR, transformational forces in business, global drivers of change, how smart businesses create the future, the future technology timeline, the future of travel and tourism, the future of airlines and airports and the future of education. If you would like to arrange a meeting with Rohit in one of these cities or are interested in arranging a presentation or workshop for your organisation, please contact rohit@fastfuture.com

Culture tax and sustainable capitalism

I have written several times now about changing capitalism and democracy to make them suited to the 21st century. Regardless of party politics, most people want a future where nobody is too poor to live a dignified and comfortable life. To ensuring that that is possible, we need to tweak a few things.

I suggested a long time ago that there could be a basic income for all, without any means testing on it, so that everyone has an income at a level they can live on. No means testing means little admin. Then wages go on top, so that everyone is encouraged to work, and then all income from all sources is totalled and taxed appropriately. It is a nice idea. I wasn’t the first to recommend it and many others are saying much the same. The idea is old, but the figures are rarely discussed. It is harder than it sounds and being a nice idea doesn’t ensure  economic feasibility.

The difference between figures between parties would be relatively minor so let’s ignore party politics. In today’s money, it would be great if everyone could have, say, £30k a year as a state benefit, then earn whatever they can on top. 30k doesn’t make you rich, but you can live OK on it so nobody would be poor in any proper sense of the word. With everyone economically provided for and able to lead comfortable and dignified lives, it would be a utopia compared to today. Sadly, it doesn’t add up yet. 65,000,000 x 30,000 = 1,950Bn . The UK economy isn’t that big. The state only gets to control part of GDP and out of that reduced budget it also has its other costs of providing health, education, defence etc, so the amount that could be dished out to everyone on this basis is therefore a lot smaller than 30k. Even if the state takes 75% of GDP and spends most of it on the base allowance, 10k per person would be pushing it. So a family could afford a modest lifestyle, but single people would really struggle. Some people would need additional help, and that reduces the pool left to pay the basic allowance still further. Also, if the state takes 75% of GDP, only 25% is left for everything else, so salaries would be flat, reducing the incentive to work, while investment and entrepreneurial activity are starved of both resources and incentive.

Simple maths thus forces us to make compromises. Sharing resources reduces costs considerably. In a first revision, families might be given less for kids than for the adults, but what about groups of young adults sharing a big house? They may be adults but they also benefit from the same economy of shared resources. So maybe there should be a household limit, or a bedroom tax, or forms and means testing, and it mustn’t incentivise people living separately or house supply suffers. Anyway, it is already getting complicated and our original nice idea is in the bin. That’s why it is such a mess at the moment. There just isn’t enough money to make everyone comfortable without doing lots of allowances and testing and admin. We all want utopia, but we can’t afford it. Even the modest 30k-per-person utopia costs at least 3 times more than we can afford.

However, if we can get back to an average 2.5% growth per year in real terms, and surely we can, it would only take 45 years to get there. That isn’t such a long time. We have hope that if we can get some better government than we have had of late, and are prepared to live with a little economic tweaking, we could achieve good quality of life for all in the second half of the century.

So I really like the idea of a simple welfare system, providing a generous base level allowance to everyone, topped up by rewards of effort, but we will have to wait before we can afford to put that base level at anything like comfortable standards.

Meanwhile, we need to tweak some other things to have any chance of getting there. I’ve commented often that pure capitalism would eventually lead to a machine-based economy, with the machine owners having more and more of the cash, and everyone else getting poorer, so the system will fail. Communism fails too.

On the other hand, capitalism works fine when rewards are shared more equally, it fails when wealth concentration is too high or when incentive is too low. Preserving the incentive to work and create is a mainly matter of setting tax levels well. Making sure that wealth doesn’t get concentrated too much needs a new kind of tax.

The solution I suggest is a culture tax. Culture in the widest meaning.

When someone creates and builds a company, they don’t do so from a state of nothing. They currently take for granted all the accumulated knowledge and culture, trained workforce, access to infrastructure, machines, governance, administrative systems, markets, distribution systems and so on. They add just another tiny brick to what is already a huge and highly elaborate structure. They may invest heavily in their time and money but actually when  considered overall as part of the system their company inhabits, they only pay for a fraction of the things their company will use.

That accumulated knowledge, culture and infrastructure belongs to everyone, not just those who choose to use it. Businesses might consider that this is what they pay taxes for already, but that isn’t explicit in the current system.

The big businesses that are currently avoiding paying UK taxes by paying overseas companies for intellectual property rights could be seen as trailblazing this approach. If they can understand and even justify the idea of paying another part of their company for IP or a franchise, why not pay the host country for IP for access to their entire culture?

This kind of tax would provide the means needed to avoid too much concentration of wealth. A future  businessman might choose to use only software and machines instead of a human workforce to save costs, but levying taxes on use of  the cultural base that makes that possible allows a direct link between use of advanced technology and taxation. Sure, he might add a little extra insight or new knowledge, but would still have to pay the rest of society for access to its share of the cultural base, inherited from the previous generations, on which his company is based. The more he automates, the more sophisticated his use of the system, the more he cuts a human workforce out of his empire, the higher his taxation.

Linking to technology use makes sense. Future AI and robots could do a lot of work currently done by humans. A very small number of people could own almost all of the productive economy. But they would be getting far more than their share of the cultural base, which must belong equally to everyone. In a village where one farmer owns all the sheep, other villagers would be right to ask for rent for their share of the commons if he wants to graze them there.

I feel confident that this extra tax would solve many of the problems associated with automation. We all equally own the country, its culture, laws, language, human knowledge (apart from current patents, trademarks etc. of course), its public infrastructure, not just businessmen. Everyone surely should have the right to be paid if someone else uses part of their share.

The extra culture tax would not magically make the economy bigger. It would just ensure that it is more equally shared out. It is a useful tool to be used by future governments to make it possible to keep capitalism sustainable, preventing its collapse, preserving incentive while fairly distributing reward. Without such a tax, capitalism simply may not survive.

Water companies to deliver Gbit broadband over wet string

Warning: to avoid wasting your time, and since it is no longer April 1st, be aware that this was published as an April Fool joke. Please enjoy it but don’t take it seriously:

Optical fibre is sometimes laid in conventional cable form just like copper wires, but because the actual fibres are so light, they can be coated with a rough surfacing that lets them be blown through plastic ducts using compressed air (the plastic ducts are under 1cm diameter). The fibre wiggles its way to the far end, carried by the air flow. It is simply called ‘blown fibre’ and is used extensively where ducts can easily be laid.

The water industry obviously has huge experience in making smooth channels for water to flow through to every building in the land. Blown fibre technology can adapt to this. Several years ago, advised by future technology consultants Futurizon, research produced a soft furry coating that makes it easy to flush coated fibres down water pipes. The coating is based on sugar and has the consistency of candyfloss. The clever breakthrough was making it so that it lasts until installation is complete and then dissolves harmlessly away in less than an hour.  It is of course safe to drink the tap water even soon after installation.  The remaining problem was how to route the fibres when they come to a junction. The inspiration came from optically guided missiles, which have steerable nose cones, that allow the missile to be routed in the required direction just by rotating the cone. Adding a tiny reusable nose cone capsule to the head to the fibre, and knowing the architecture of the pipework, the fibre can be routed correctly at each junction.

A global consortium of water companies now plans to install nationwide fibre networks via the water supply via a company called Fallopior. The main offices and roll-outs will be in the UK, New Zealand, Australia, and the USA, all of which face issues of getting access to ultrafast broadband for rural areas and all of which have the carbon subsidy economics to make it work. The name of Fallopior presumably emerged because the system uses tubes for delivery and perhaps to try to tap into the female broadband market. At the home, a broadband ‘tap’ is installed that allows the fibre to emerge. Once the fibre is delivered and connected, it is pushed through a silicone plug that is pushed into the tap to completely seal it.

The fibre is routed all the way to the home by this means, and then the broadband tap is opened. A few litres of water later, and the fibre is delivered. It is far more environmentally friendly way of installing the fibre than digging up pavements and roads. The carbon savings and the selling of the associated credits are calculated to reduce the cost of installation to almost zero. This even works in remote areas since the carbon savings are of course far higher here too. The costs of the fibre are low enough to be absorbed into even a low rental agreement. Fallopior say that they can will offer 1Gb/s to any home even in the remotest parts of the country for as little as £5 per month, and this is easily enough to deliver all the high definition TV and internet a home.

Broadband providers have struggled with the economics of fibre to the home and many homes still have to suffer slow broadband, even though they pay far more than this, especially in the country. But all homes have a water supply, so this technology is perfectly adapted. Since the roll-out plans of the other UK providers are so sluggish, the water companies expect to seize massive market share almost overnight.

Some homes questioned about the potential service insisted they don’t want ultra-high speed broadband with the temptations it brings, and amazingly would prefer to have a slower service, even if it means they have to pay more to get less. Engineers have solved this one too. The coating allows very smooth thin nylon string to be coated temporarily and flushed down the pipes in the same way instead of fibre. Since the water keeps it lubricated, wear would be very low and it will only need replaced every 5 years. But that re-installation increases the cost to £7.50 per month.

Now to every nerd’s dream – just like two cans with string between them, this wet string will transmit high audio signals, 100KHz. With the phenomenal ability of today’s coding and compression schemes, this allows 3Mbit/s to be delivered, comparable with what many people receive today on their low speed broadband. Those questioned said they would be happier with this limit which lets them do basic internet access but not much else. It still competes extremely well on price with offerings from other providers so again Fallopior expect massive demand. In an emergency, when there is no electricity supply, a home-owner can still signal the emergency services by making a short series of tugs on the string. Simple Morse code SOS can easily be sent this way. 

A string plant in Cornwall has secretly been built in preparation and has stockpiled  over 100 million km of string. Others have been established on similar basis in the other consortium countries. As another carbon-subsidised activity, the UK site is attached to a 3MW wind turbine. This one looks a little unusual since the spinning motion of the blades is used directly via gears rather like a traditional windmill) to spin the string and power the machinery. String output therefore varies according to wind strength, hence the need to stockpile supplies. Nevertheless, the result is string that is entirely paid for via carbon subsidies. Location in remote Cornwall was chosen because of high winds and proximity to seaside resorts with easy access to local expertise from candyfloss experts. The late arrival of spring and hence the candyfloss market has meant that many were available and willing to assist on the project.

In spite of all the many benefits and promises of very low cost ultra-fast broadband, there is just one problem – as hinted by the unusual just-after-midnight timing of the press release by the Fallopior’s HQ in Auckland, New Zealand, and of course the company’s name.

Out of town centres are the most viable future for physical shops

So the government’s ‘retail guru’ Mary Portas has said that some high streets are doomed and should be turned over to other uses. I don’t share the government’s high regard for her but I do agree that it is time to reconsider the structure and location of retailing.

As usual, I’ll highlight the problem first, then suggest the solution.

I live on the edge of Ipswich. The area is a nice place to live but I rarely go into town. To be absolutely honest, I try hard NOT to go into town. I am sure they don’t want me there anyway, since they try hard to deter me from going in.

In the last year, I’ve been to radio studio three times, the cinema once (that involved over 20 mins looking for a car parking space nearby, eventually parking much further away and walking), and shopping once, dragged kicking and screaming, having to wade through a lake in a waiting-for-brown-field-development car park on our side of town that we used to avoid the trauma of traffic congestion. The planners were presented with a once-in-a-generation opportunity to fix a lot of the congestion when they started redevelopment of the docks, but instead actually worsened the traffic routing and created even more congestion.  I don’t know why they did that, but they did. You could say that Ipswich had been a one-horse town, but the planners shot the horse. Ipswich could have been a great deal better with just a bit of thought. Having said that, there are far worse places, far worse. I’m probably just a troglodyte that owns a shaver.

Like many other towns, a lot of the shops are closing. The issues are familiar all over the country. Congestion, lack of parking and high parking fees compete with easy home delivery from online purchases. Congestion is not the same as throughput, and even though it seems busy, town centre businesses obviously aren’t getting enough business or they wouldn’t be closing. 

I’ve written on the future of high street retailing before:

http://timeguide.wordpress.com/2013/01/16/the-future-of-high-street-survival-the-6s-guide/

http://timeguide.wordpress.com/2011/03/03/future-high-street-retailing/

Online shopping offers formidable competition, and in those previous blogs I looked at what can be done to compete . This time, I want to concentrate on the location of shops.

Sometimes I just want to get out of the house and go shopping. If I don’t have anything particularly in mind, I go to Woodbridge and Felixstowe, mainly because they are just as fast to get to as Ipswich, but prettier, it is far easier to park there, and parking doesn’t cost a fortune. If the trip is purely functional, I will often end up at a retail park. They are easy to get to, I can park close to the shop I want, and it is free.

There has been huge resistance to out of town shopping centres over the last decade or two because they obviously take customers away from town centres, and involve driving so were considered environmentally unfriendly. Let’s look at both of those in the light of the new reality.

Big retail parks are mostly full of enormous warehouse stores that offer a purely functional destination. Some are selling stuff that is best suited to online purchasing and the less competitive ones are likely to die or shrink. As they free up the big warehouses, these could be attractively redesigned to house many shops that once lived in town centres. So when someone goes to their local retail park to look at furniture or DIY kit, they might well spend an extra while wandering through some interesting small shops.  The big stores would act as a functional magnet, and the small shops would add interest and serendipity, making a boring functional trip into an enjoyable experience that could fund a flourishing retail community. Provided the rents and rates are OK, and that parking is free and abundant, this could work well as a model for high street condensation and relocation. It could even rejuvenate physical retailing, especially small businesses.

As for environmental impact, being stuck in a traffic jam is far more polluting than driving along unimpeded. Out of town centres can be placed to work well with the local human geography and roads so that traffic can flow smoothly and make less pollution. Parking must be adequate to cope with latent demand or that will drive potential customers onto the net, or force them to drive round and round car parks looking for places, polluting as they go. People who live in town centres generally have ready access to public transport and it is just as easy to aim routes at out of town centres as it is to town centres. If the old high streets are re-purposed, then retail business would just be moved to more viable locations where they could flourish.

If we move shopping out of town, almost everyone benefits. People living out of town would not have to go into town to shop, and congestion there would probably fall so that it would be less traumatic when they do have to go in for other reasons. People living in towns would still have public transport access to shops, just in different locations. The few who live within easy walking distance of town shopping centres would suffer having to go further to shops, but they will suffer their loss anyway if they don’t move.

For people out of town, well designed out-of-town shopping centres offer the potential of reinvention and to rekindle the joy of shopping. For townies, the alternative to shops that are a bit further away might be to have no shops at all. That’s probably the new reality and we either embrace it or suffer it. Government and planners should recognise that and make policy accordingly.

 

UK Brain Drain

For some years I have covered in my talks the possibility of the UK ending up as a retirement home, as high taxes and intergenerational conflicts of interest couple with the forces of remigration and professional mobility. The newspapers this morning say that of the 3.6 million to leave the UK in the last 10 years, two million were between 25 and 44 and one million were professional/managerial. Only 125,000 pensioners left. While this is hardly a major catastrophe, it is still worrying, but then again, it confirms my theory so at least I get to say I told you so.

On one hand, emigration is consistent with a healthy system. We want our kids to be sought after and to be free to move and prosper in a globalised world. On the other hand, those who are leaving are the ones we need to keep to pay for those that won’t leave. If this pattern continues, the ratio of old people to those paying taxes to look after them will increase still further, making care costs even less manageable than they already are. And it is a vicious circle – more will want to leave as it gets worse.

If emigrants were balanced skill for skill against immigrants, there would not be a problem. We certainly will need immigration to balance the outflow, but to solve the problem it needs to be the right immigrants with the right skills. Some immigrants won’t contribute sufficiently to pay for their extra load, others will contribute well in excess of their loading, so we need to get as many of those as we can. To attract them and deter others is not easy. Every country wants the best people to come to help pay their bills.

Low taxes, light regulation and freedom would be much more likely to attract and keep good people than high taxes, high levels of poor regulation and an obsessive surveillance and control culture. It would be better to change in that direction before it’s too late.

The future of music and video media

With the death of HMV and Blockbuster this week, I’ve done some radio interviews on the future of the high street and one on the future of media. I wrote about retailing yesterday so today I’ll pick up on media. I wrote a while back that Spotify isn’t the future of music, not in its current form anyway, though I will admit that streaming is part of the future. Spotify will probably up its game and survive. If it doesn’t, it won’t. (I didn’t properly answer the question then of what the future would actually be. I will now.)

CDs aren’t the future of music either. DVDs or Blu-rays aren’t the future of video. Think about it. If you were starting from scratch today, would you base media distribution on plastic discs that have to be spun quickly in a mechanical device, and need to be read by lasers, are easily damaged, and take up lots of storage space? Of course you wouldn’t. You’d almost certainly go for either solid state or web storage. I’d go for solid state. Here’s why.

Web storage is fine as long as you have a good connection all the time and don’t have to pay for data downloads. I think we will still have streaming services in the far future and they might even remain a large market, but streaming isn’t a perfect solution. Transmitting data requires energy, and transmitting lots of data streams to lots of customers requires big server farms. It also clogs up bandwidth and that is limited too.

Downloading to local storage is also fine to a point. It is a large market now, and will remain so for some time. But there are also big problems with it. Licenses are not the same for downloaded music. You have a much more restricted ownership of music you buy online. The companies’ desire to protect their revenue is a higher priority for them that giving their customers full rights, just as it is with streaming (another reason streaming is not what it could be). With physical media, even though you may have ripped (and hence stolen) the content of the disc before you transferred it, the disc itself stops being yours if you pass it on to someone else. The concept of ownership and theft is very clear with physical media. With an MP3, less so. It is clear that the extra actual cost to the music provider is zero if you give a copy of an MP3 away, and you won’t buy a replacement anyway, and they probably wouldn’t either, so there is no clear revenue loss, so you can easily reason away any guilt in keeping a copy. So the music companies put in stuff like copy protection and non-transferable licenses that make it harder to keep your music organised, use it on multiple devices, recover it after disk crashes or sell it on when you’re bored with it. And with an MP3, you don’t have a nice box to look at and know that you own it. The music companies are more conspicuously stingy with MP3s too. If you are downloading the music, why don’t you get the music videos thrown in too? It’s obvious with the CD, there isn’t space on the disc, so you don’t mind, and the tradition has never been there anyway. A DVD could contain the video, but would cost more. With online music, you can usually watch it on YouTube so why don’t you get a proper decent resolution copy when you actually pay for it?

Anyway, solid state storage. I don’t want to be stuck with CDs or DVDs, and would much prefer to get a USB memory stick with the media on. I could plug it straight into my home cinema systems and watch a full Dolby Digital 7.1 Hi-def music video, preferably in 3D. I could easily play or transfer the files to any device I want. But that’s just today. Already, flexible displays and flexible batteries are appearing in electronics shows. It won’t be long at all before they are extremely common.

This is a demo flexible battery/display from Samsung. This is far more suited to carrying around and everyday abuse than glass. This could be a general purpose display but is also perfectly suited to be an all-round CD/DVD replacement, eventually. It will cost too much initially to directly replace CDs or DVDs or downloads, but the price of such devices is governed by Moore’s Law and will tumble. It could show you the music video or movie, it could hold the music or video, it could communicate with any of your display and audio devices as well as being one itself. It is collectable, and could hold a permanent album cover image or slideshow of video clips or stills. It could be of any shape and size and still do the job. It ticks all the boxes for ownership, portability, robustness, media future-proofing. The battery could be built in or it could be powered inductively, or using solar.

It could support a range of business models too. You could buy albums, one per device, just like CDs, proudly keeping them on a nice rack or display shelf. Resell them at car boot sales or give them to friends. Or you could subscribe to a band or a music producer, and it could hold all of their stuff, and be immediately updated with any of their new releases. It could be locked to just their stuff and just you if that’s what you bought.  The device could support lots of different kinds of license. Or you could buy stuff online and it would download to one you have as a replacement for today’s MP3 player. So it could hold one track, an album, a group, an entire collection, or be the front end device of a streaming service. Devices like this could support many business models. It meets the requirements of the music industry and the customer, doesn’t need lots of energy for cloud based storage, improves the potential quality of offering for everyone. This is the future of music media and probably video.

Of course you can do some of this with an app on a pad too. But having a dedicated device solves a lot of the problems we are used to that are associated with doing that.

Starbucks isn’t wrong to avoid tax, the law is wrong. A universal payment tax would fix it.

Tax avoidance is in the news a lot at the moment. Maybe that is partly because tax as it is now is seen to be unfair and unjust so people feel less bad about trying to avoid it.  In response, the idiots in charge of our taxing seem to think they should ask people and companies to pay taxes voluntarily.

Companies usually exist to make money, and it would be bad management to voluntarily pay more tax anywhere than is required by law. The world offers a wide range of tax regimes and of course a multinational corporation will do its best to exploit the different rates. But governments are meant to be in charge of law, that’s what they are for. It is their job to ensure that the law is fair and that everyone has to pay their share of taxes. But they aren’t doing that at all well. Governments are at fault, not companies or individuals that choose to pay the (creatively) legal minimum. The tax net may be full of holes, and companies are walking through them, but it is government that designed, made and maintains the net. 

Companies such as Starbucks can legally avoid paying UK tax by paying fees for licenses, use of the brand name and other intellectual property to overseas companies in low tax areas. The value and price of intellectual property can be set at pretty much any arbitrary level, and it can be moved around the world instantly so it is an especially useful tool for tax avoidance schemes. We have been in the information economy for decades now, and it is a reflection of competence and extreme sluggishness of the tax authorities that tax law hasn’t kept up. Starbucks have paid their due taxes, there is just a huge mismatch between what is due and what should be due in a competent tax regime.

It isn’t an impossible task to tax properly. There are lots of ways of taxing things so that all companies pay a fair contribution. The situation now is simply ridiculous and government should pick a mechanism and implement it quickly.

The most obvious perhaps is that the government could regulate that all companies must pay tax on the same proportion of their global profits as the proportion of their revenue that is earned in the UK. And that must include web sales and downloads, and most importantly, any intellectual property such as licenses. If Starbucks buys licenses to operate in their particular way, the license sellers would pay the appropriate taxes on the corresponding proportion of their global profits too.

Of course, that would get complicated if overseas suppliers could simply refuse to pay or even to surrender data on their accounts. But that can be solved by allowing accountants to offset purchases only from licensed companies. The responsibility to either pay the tax themselves, or buy from someone also paying tax here would then stay with Starbucks.

Another way of ensuring companies pay proper tax would be to demand payments based on an industry average cost pattern. This would be subject to arguments and would be more complex so would be more expensive to administer.

A third way is using a purchase tax in place of corporation tax. Every company would pay the purchase tax on everything they buy. If it appears as a cost on the UK balance sheet, purchase tax must be paid on it. What a company does overseas should be of no concern of the UK authorities, but if they want to put a UK operating license from a subsidiary or partner on their UK accounts, tax must be paid on it. If this tax is set at the right level so that the total government tax take stays the same overall, the economy should benefit through simplicity and administrative cost reduction.

It is possible to have different tax levels for different kinds of purchase, exceptions, special cases and so on, but each paragraph of extra regulation is another than can be interpreted and used by creative accountants and lawyers.

One of the implications of having a simple purchase tax is that there is a huge incentive to simplify the value chain into as few links as possible. If money is taxed each time it leaves a company, then having fewer company boundaries in the value chain would be cheaper. Keeping as much of the value chain in house as possible would reduce this, but there would be strong pressure to allow reclaiming of purchase taxes across boundaries in the value chain. Of course, that is getting quite close to what VAT is, and we are all familiar with that already. Companies collect VAT on their sales and claim back VAT on purchases. It therefore doesn’t discriminate against companies on the basis of value chain design. It just collects tax on the difference in value between the raw materials and finished products.

So, why not abolish corporation tax entirely and switch to a refined version of VAT, at a higher rate if need be? Why indeed. This refined VAT would be payable on all purchases, from anywhere, but we could modify it so it could still be reclaimed by businesses for purchase from other UK VAT paying suppliers. The important thing is notionally to seal the borders so that all purchases in the UK are taxed. I am not personally in favour of making this refined VAT reclaimable, I think that draws an unjustifiable distinction between companies and individuals that can then be exploited by company owners and is the source of much tax evasion even today. I think facilitating virtual companies and optimising end to end value chain design is the best approach.

Extending this approach, why not also replace income tax and national insurance by a sort of VAT on salary? That would amount to a flat tax, but people who get paid more would pay more tax too, and that in itself is already an improvement to today. If this VAT also was applied to payment of dividends, capital gains, bank interest, inheritance and all other forms of payments, then the person on the ordinary payroll would pay the same rate as the owner of the company, someone selling their shares, the shareholders, inheritors, everyone. What’s not to like? Rich people pay more, poor people pay less. Everything is simple, all loopholes removed. All outgoings from companies taxed at the same level, and all forms of income ditto. A single page of tax law to replace 18000 pages. People living off shore wouldn’t escape any more because their UK-sourced income is taxed at its UK point of payment. Their income from other countries is the affair of those other countries. Just like usually happens today, the money is taxed when coming into the company as a sale, and once when paid out to someone as wages or dividends. But twice would be a huge improvement on the hundreds of times money is taxed today via all the hidden taxes. This revised system would be far simpler and more transparent and if it is kept simple and transparent, with no added loopholes, people would see its fairness. The more secure net means that everyone would pay less tax except those who had previously been avoiding it.

A wannabe tax-avoiding ‘consultant’ might arrange to work for free in the UK, with no UK payments to be taxed, paid instead by an offshore company into an off-shore account, but to avoid tax, that money would need to have come from an overseas operation. If it came from UK profits, it would have been taxed when the money came into the company, and again when it was paid out to the overseas one. People paid by overseas companies out of overseas money are not the UK’s affair. As far as the UK is concerned, they are working for free.

Smarter people than I have calculated that we’d need to set the rate to take about 20% of each transaction. Just a bit more than VAT already is then (VAT adds 20% on so takes 20/120ths=16.67%). So, if that is right, and we seal all the holes and charge it on everything, we can all look forward to a country with no other taxes except a slightly refined form of VAT, that is paid on everything.

So it wouldn’t matter how you got your money. 20% would be paid when you are given it and on any interest the banks pay you on the remaining 80% from saving it. When you spend it, another 20% is gone, leaving 64% of actual value. This compares favourably with today where hundreds of taxes hide away unobserved. They should all go.

I am greatly in favour of the simplicity this offers, but it isn’t without problems. What about selling shares, or houses? If you have to pay 20% on the full cost every time you buy a new house that would greatly penalise people who move often. It also cripples the stock market if people pay 20% each time they swap shares. People would demand exceptions, but each time exceptions are created, new opportunities to avoid tax arise, that can be exploited by clever accountants. So any exceptions would have to be few and well designed with tax avoidance avoidance in mind.

The future of women in work

Women v men: the glass ceiling is full of holes

Most people I think would agree that at least in the West. the glass ceiling stopping women getting to the top maybe hasn’t vanished but has at least huge gaping holes in it. Most big companies and organisations have anti-discrimination policies, and many go as far as having have quotas and other forms of positive discrimination. There are still some where women get a second class deal, but not many now. So assuming that the war is almost won on that front, what does the future hold for women in work? Well, mixed news I think, some good and some bad.

Winner and loser industries

Technology tends not to have all its impact in one lump, rather working over decades to accomplish its full impacts. Such it is with Artificial intelligence and robotics. Lots of manufacturing shop floor jobs have already been gradually replaced by robotics, with more impact to come, and many analytical and professional tasks will gradually be displaced by AI, with many others outsourced. Traditionally male-dominated jobs are being hardest hit and will continue to be, while gender neutral or female-dominated jobs such as policing, social work, sales and marketing, teaching, nursing etc will hardly be affected. Many of the men made redundant will be able to readjust and re-skill, but many will find it hard to do so, with consequent social strains.

Just as power tools have reduced the economic advantage of being physically strong, so future AI will reduce the economic advantage of being smart. What is left is dominated by essentially emotional skills, and although the polarisation certainly isn’t complete here by any means, this is traditionally an area where women dominate.

Looking at this over the whole spectrum, this pic shows some example areas likely to suffer v those that will flourish. Obviously I can’t list every bit of the entire economy.The consequences of AI are mainly influenced by the fact that few jobs are 100% information processing or intellect. Some is usually interpersonal interaction. Administrators will find that the pen-pushing and decision parts of their jobs will decline, and they will spend more of their time on the human side, the emotional side. Professionals will find that they spend more time with clients dealing with the relationship. Managers will spend more time on motivation, leadership and nurturing. Interpersonal skills, emotional skills, empathy, sympathy, caring, leadership, motivation – these are the primary skills human will provide in the AI world. The information economy will decline and gradually be replaced by the ‘care economy’. Although men can and do offer some of the skills in this list, it is clear that many are more associated with women, so the clear conclusion is that women will acquire an increasing dominance in the workplace.

Global v local

However, another consequence of the same forces is that globalisation of work will start to reverse in some fields, because if high quality human contact is essential part of the job, it is harder to do it from a distance. Some jobs require actual physical contact and can’t be done except by someone next to the customer. Looking at a diverse basket of forces, this is how it works out:Another trend in favour of women is that with increasing restructuring or businesses around small cooperatives of complementarily skilled people, networking is an increasingly important skill.

Low pay will still be an issue

Although women will generally have an easier time than men if emotional skills dominate, the evidence today is that most such work is not highly paid, so even though women will have less difficulty in finding work, it will not be high paid work. High end interpersonal skills such as senior management will fare better, but with extensive industry restructuring, there may be less need for senior managers.

Polarisation of pay

In spite of these trend that affect the vast majority of people, star performers aren’t affected in the same way. Although the markets are already depressing wage levels for groups where there is a lot of supply available, the elite are being rewarded more and more highly, and this trend will continue. The hard facts of life are that a very few individuals make a real difference to the success or failure of a company. The superstar designer, scientist, market analyst, manager or negotiator can make a company win. Letting them go to the competition is business suicide, so they justify and demand high remuneration. Sadly, 99%of us are outside the top 1%. Think about it. There are 70 million people in the global top 1%. Even spread across every sector, and ignoring those too young or old to work, that is stiff competition.

Market gender neutrality

Especially on a large scale, the marketplace is essentially gender neutral in the sense that customers generally don’t care whether a business is run by men or women (it certainly isn’t neutral in the mix of male and female customers for particular products and services of course). The market cares about marketing, price, quality, availability and location and a few other things. Gender has little impact. Companies can’t survive on the gender make-up of their staff, only results really count in the market.

Turbulence in the market caused by rapidly changing technology, especially IT, accelerates levelling of the playing field by favouring new business models and adaptable companies and wiping out those that can’t or won’t adapt. By contributing to accelerating change, IT thus acts in accelerating the downfall of a patriarchal business environment in favour of one based purely on merit. It expedites the end of the war of women v men but when it runs to completion, women will play against men and against each other on a truly level playing field.

Women v women: attractive v plain, young v old

Now that the glass ceiling is less of an issue, the battleground is moving on to appearance discrimination, which obviously links to age too. We now often hear older or plainer women complaining that the best jobs are going to pretty young things instead of the more experienced women who sadly have left their prettier days behind, especially in high profile media and customer facing jobs.

A real world example illustrates the problem well. A while back, the BBC’s treatment of older women was ruled discriminatory by the courts because they had favoured attractive younger women to put in front of cameras over older, less attractive ones. However fair it might be, such a ruling puts the customer in conflict with the regulator. Although such a ruling may appear fair, actually all the female presenters lose, as viewers will simply swap channels to programmes hosted by presenters they want to watch. The trouble is that regulators can rule how companies must behave internally, but they can’t prevent customers from using their free choice what to buy. If some viewers prefer to watch attractive young news readers, they can and will. Those programmes hosted by less attractive ones will see a reduction in viewer numbers, and consequential drop in revenue from advertising on those programmes, or in the BBC’s case, just a drop in viewers. Unless the customer has no choice in what they watch, the courts can’t level the playing field.

It isn’t just on TV that such discrimination occurs, but throughout industry. In male dominated areas, with mostly men at the top, attractive women will be favoured at interview time, and will then tend to dominate senior posts, so that quotas can be filled but men get to choose which women fill them. In airlines, it is hard not to notice if you fly frequently, that the most attractive stewardesses end up in first and business class, with the less attractive and older ones serving the economy cabin. And on a front reception desk, bar, sales jobs, and PR, attractive women have an obvious advantage too.

It looks as if this issue is likely to dominate as we move into an economy where women as a whole have the advantage over men. And it will be much harder to legislate equality in this case.

Experience v looks & IQ

With the pension crisis growing daily, it is inevitable that people will have to work longer than today. Social skills tend to grow with age and experience in contrast with intellectual speed and agility and physical beauty, which tend to decline with age. This is a fortunate trend as it enables work to be done by older people at just the time that retirement age will have to increase.

Flat lenses – oozing potential

Lenses used to be curved. Not in the future thanks to Harvard scientists: https://www.seas.harvard.edu/news-events/press-releases/flat-lens-offers-perfect-image and http://pubs.acs.org/doi/abs/10.1021/nl302516v.

Ht http://nextbigfuture.com/ for making me aware.

Flat antennas aren’t new per se, phased array radio antennas have been around decades, but this is the first optical flat lens I am aware of. Theirs is pretty damned clever!

They are already looking at applications such as flat microscope objectives, and have probably covered most of the biggest opportunities. But just in case, and researchers do occasionally miss some opportunities, here are a few for free:

Kite telescopes

NASA are currently flying a 747-based telescope, chucking out huge quantities of water vapour into the high atmosphere, contributing to global warming to take over from their space shuttles. Ironic that such a warmist organisation should do that, but there we go. A large flat surface telescope could presumably be made into a high altitude kite, albeit one that needs a little engineering. And it wouldn’t add to stratospheric water vapour, or even add CO2.

High altitude telescopes could be used for ground imaging as well as space of course, and there would be many commercially viable businesses from this root, as well as military surveillance of course.

Smart glasses and contact lenses

I would like a pair of glasses that record everything I look at. Flat surface cameras would allow this. Glasses are much bigger than my pupil, so they could allow much higher resolution, so I’d be able to see at very high magnification without having to use binoculars. I’d also be able to see infrared, microwaves, see where the strongest cellphone signal is, enable a whole new kind of fashion using different spectra, add to augmented reality hugely by using the infrared channel to show real as well as digital auras. Wow, can’t wait for these! I am playing Assassin’s Creed again, and this is Eagle Sense and then some.

Of course, active contact lenses could also use this tech and offer intuitive optional zoom. I would see the world as normal, but by trying to focus on something in the distance, it would zoom in automatically. There have only been a few updates to my original active contact lens idea from 1991, http://www.futurizon.com/inventions/activecontactlensmay91.pdf but this will be another generation for its 21st anniversary.

Credit card cameras

The smartphone is causing the decline of standalone digital cameras. Digital jewellery will cause the decline of smartphones, but one of the things we still needed them for is the camera. Not any more. A simple credit card camera would work fine. Or maybe even a wristband could be used. Flat cameras will hasten the decline of smartphones.

Smart posters

If they can be printed cheaply, cameras could be built into much of the urban environment. Any poster could have video capture and storage built in, powered by solar, with some comms added too. What and who it sees could direct what it displays. Sure, you can do all that and then some with augmented reality, but augmented reality is a whole load of additional functionality that lives happily alongside other stuff, and doesn’t necessarily replace everything. Posters could be the next wave of Big Brother or the next wave of advertising. Or both.

Teletubby T-shirts revisited

When the Teletubbies were still new, I suggested that we’d be able to make clothes with video panels in using polymer screens. Teletubby t-shirts. Flat panel cameras would allow these to be two way. They could display images but also act as a cameras. They could link to cameras in other people’s t-shirts. You could have a camera on your back that links to the video image on your front, making you appear to have a big hole through you.

Thought recognition and smart microwaves

Wired carries another interesting article on brain wave recognition of PINs via the headsets used to play computer games. Old stuff in idea terms perhaps but it’s always nice to see practice catching up. http://www.wired.com/threatlevel/2012/08/brainwave-hacking/

It seems obvious that this could work nicely with the flat lens idea. A flat surface could image the electrical activity in the brain from a greater distance instead of having to use a helmet.

It would also be possible to put flat cameras on the inside surfaces of microwave ovens, looking at the food to see where the hot spots and cold spots are, so that the microwave beams could be directed better to the areas needing heated.

I think that’s enough for now.