So it turns out that one of the most popular questions asked of public librarians in the Netherlands is….”where are the toilets?” Joking aside, the cleanliness and quality of bathrooms isn’t a bad USP. With McDonald’s it’s one of the major reasons women with small children visit. Showers? Why not. If public libraries are becoming freelance spaces this would not be a bad thing to add. Off to the airport – where there is apparently a library. More on what you might be able to do in a library in the future tomorrow.
Weedy idea
Off to Amsterdam today to talk with some Dutch library folks, but continuing with the first chapter of my new book so highly engaged with what’s going on around me as I may be able to use it in some way. For example, today I was told to be careful because the escalator was coming to an end. Really. Do people not notice? Maybe if they fell off they’d be more observant next time?
Yesterday I was in London and came across a cafe with a sign in the window offering “weeds of nutritional significance.” I’m OK with this (it’s a little too fashionable for its own good, but I get the connections). However, the sign went on…”Weeds of nutritional significance, from Australia.” You mean they’ve flown some weeds from Australia to London so that people eating a sandwich can feel more connected to the land in an organic, bio-dynamic, slow food kind of way? And the fuel needed to fly those weeds 10,000 miles is what? If you’re going to eat weeds at least make them local.
Some thoughts on retail
I was asked recently to briefly say something about IT, retail, humans and the future.
The first two are easy. The last two less so. What do we mean by future? I met a science fiction writer called Lavie Tidhar once and he defined the future as being “when things get weird.” In that case I’d suggest that the future is now. $19 billion for Whats app is weird. $19 billion is 10% of Facebook’s valuation. Last year Whats app turned over just $20 million. $19 billion is a lot of money for a messaging app and a long list of names.
Anyway, putting that bubble to one side, here are a few thoughts about retail.
My first thought is a general one. Online is going to grow significantly. Having said this I think there are limits, caused more by psychology than technology.
What I expect to happen is that retail will polarise between high tech and high touch. Habitual, commodity retail will become increasing automated and virtual. There’ll be more mobile shopping, more personalisation and more predictive sales and marketing, based not only on past buying behaviour, but on customer location and mental state. In short, where are people right now, what are they doing, and what might they be persuaded to do next?
They’ll also be more personalisation in the sense that homepages and virtual stores could be different for each individual customer, either due to historical buying patterns or due to facial and verbal recognition. What I mean by this is that if privacy isn’t an issue – and it may well be – it’s easy to instantly alter a home page or virtual store layout based upon general observations retailers can make about a person on a particular device. Cameras and microphones linked to software can, for instance, judge not only age and gender, but emotional state too. I believe Microsoft and Toyota have been looking at emotionally aware machines for a while.
And we’ll shop verbally, like we do in the real world, not by typing in words or ticking boxes on a website. Online retail will have more of a verbal interface. Ultimately, we might even order things by thinking about them, but that’s a long way off and definitely weird.
I’d expect speed and convenience would continue to play a vital role in retail so investment will shift away from stores to supply chains and warehousing. Supply chains will shorten, partly to increase speed, but also to improve agility and resilience in the face of volatility and to respond to customer demands for localisation.
Warehousing will become a key battleground, because the focus will be on how fast something can be dispatched. This links to delivery and I’d expect that Big Data and social media will play a role here, working out when the optimal time to deliver goods to customers is and making adjustments in real time.
As for physical stores, and I don’t see these going away any time soon.
Physical stores, be they out of town Big Box stores, seriously smart vending machines or tiny convenience stores, will still have a role to play because in many instances they will remain the most convenient option. For example, this afternoon a significant number of people (especially those aged 18-24) will have no idea what they will eat for dinner tonight and haven’t bought anything yet either. How do you solve that online? You can’t – unless you start to use drop boxes or local convenience stores as collection points. Or perhaps you could have self-driving food trucks containing the most popular dinner options constantly circling cities awaiting orders.
We also shouldn’t forget that a substantial percentage of shopping, especially in supermarkets, is impulse and impulse is related to physical store design, physical packaging design and serendipity.
You can have virtual stores with graphics reminiscent of the very best computer games, you can have other customers wandering through a virtual store in real time, haptic gloves to touch virtual products and aroma pods to virtually smell things too, but it’s not quite the same. The machines can’t smile or ask how your day has been on any meaningful level.
I’d expect sales assistants to disappear in shops like supermarkets soon, and cash registers and checkouts might start to vanish too. We can ask questions via our mobile devices and we can pay for them when we exist a store if the products carry an electronic tag that talks to our mobile or wearable device at the exit. No more shop lifting.
But retail is social, not only the sense of social media, but in a more profound way. Women, in particular, like to forage and chatter in shops in groups and while both can be done online, it’s not an especially rich experience. Add in the sensory and tactile nature of many products, especially luxury goods and specialist retail, and many aspects of the future of retail start to look much like its past.
Quick quote
“I cannot forecast to you the action of Russia. It is a riddle, wrapped in a mystery, inside an enigma: but perhaps there is a key. That key is Russian national interest.” – Winston Churchill
Guest post
I’ve often thought of inviting guest posts, but never really got around to it. I’m currently up to me eyes writing the introduction to Future Files 2 (my new book) so any help is most welcome. Here’s something from a Frenchman living in China.
“Based on data from National Bureau of Statistics, China’s Traditional Chinese Medicine (TMC) market reached 515.6 billion Yuan in 2012, accounting for 31.24% of the total medicine industry.”
Source: Thibaud Andre at Daxue Consulting
BTW, if you’d like to submit something please note that it needs to be short (150-350 words is ideal), interesting and not directly selling anything.
Armchair geopolitical analysis
What’s going to happen in Ukraine? I think the most probable short-term outcome is that Putin will wait and see how things unfold, both politically and economically. However, if Ukraine shifts politically towards Europe I believe that it’s almost inconceivable that Russia will just sit back and let this happen.From my perspective Russia is driven by two key factors.First, psychologically, Russia is still traumatized by the loss of or, at least the dilution of, its empire and sphere of influence. Russia would like both back and I expect geographical expansion to be a real possibility. The fact that Russia’s Black Sea fleet is still based in Ukraine only adds to these tensions.
Second, Russia has demographic problems that could derail any economic promise. Since 1992 the number of Russians dying has outnumbered those being born by a massive 50%. Indeed official figures suggest the country has shrunk by 5% since 1993 and life expectancy is marginally lower than in 1961. By 2050, Yemen’s population will theoretically be larger than Russia’s. If Russia can add to its population by geographical expansion I’d expect it to do so. One might also add that Russia’s current economic and political power largely stems from its energy reserves. At the moment high oil and gas prices put Putin in a strong position – possibly to do nothing – but if energy prices collapse Putin’s legitimacy could be challenged and his response might be to indulge in diversionary tactics, such as invading Ukraine. Time will tell.
Thought of the day
You did not exist for 99.999999997 per cent of the Earth’s history. Now, what are you doing that’s so important again?
Innovation Best Practice
Just been reading The Department of Mad Scientists by Michael Belfiore, which is about the work of the Defense Advanced Research Projects Agency (DARPA) in the US. If you haven’t heard of DARPA, and most people outside the US haven’t, these are the folks that more or less invented things like the internet (originally called ARPANET) and GPS.
Not as interesting as I thought it would be, although there was a little gem hidden inside. One of the secrets to DARPAs success as an innovator is that as well as minimal bureaucracy and low overheads the organization has strict term limits for its managers. This means that people have a maximum of 4-5 years to make an impact. This reminds me slightly of an ex-CEO of Unilever in the UK who would halve the budget and bring forward the deadline on innovation projects that had stalled. Necessity may be the mother of invention, but adversity often appears to be the father.
Thinking
Just back from Mexico (La Paz) where I’ve been blissfully disconnected from the modern world for a week. I was messing around on a boat, largely looking for whales, and one thing that stood out for me was the fact that we have perhaps lost the art of looking. If you live in a city, which globally 50% of us do, the furthest you generally look is the opposite side of the road. If you work in an office it’s probably down to 18 inches – the distance from the end of your nose to the screen you are reading this on. And we rarely focus on what’s to our sides.
Does this matter? I don’t know. It’s possibly not so much a loss of distance per se, but the fact we are less aware of and connected to our physical environment. I guess this links to two things. First emerging risks and second emerging opportunities.
BTW, if you want to see someone amazing whale images go here.
Spread the love (and the link)
Got back from San Francisco (San Jose actually) end of last week and now off to Brussels. Then it’s Mexico. No time to think, so here’s a secret password to get you into the premium parts of What’s Next.
Just go to What’s Next and type in vip and ticket (both lower case) as the username and password under Premium Features (left hand side of homepage). This will get you into an issue archive going back to 2004, two trend libraries (by sector) and the search function. The free love will be good for a while.