Privacy. Nothing to Fear but Fear Itself. And Third Party Use of Data.

‘What do we fear could happen if we put our personal information online?’ A question I came across while researching internet privacy. Simple but brilliant, because the answer didn’t come easily to me. Like washing my hands before meals, I do it, but why?

Should I be concerned that I’ve made numerous posts on Facebook about my love of beer, my Twitter account reflects an interest in rock music, and how these leisure activities align with the professional profile I try to maintain on LinkedIn?

If I ran for Prime Minister, which I wouldn’t, what might someone turn up to incriminate me? Not that I’ve done anything terrible. That’s the thing. Fear may be rooted in how some mundane piece of information could be spun. With a little information, say that I’m an avid poker player, what horrible portrait could be drawn of me – the gambling addiction? Or my fascination with guns. (I played paint-ball war games once in 1986.)

We all have our hobbies. Many people fear that their, ahem, socially-shared, social interactions (i.e.. partying) will be frowned upon by future employers. Stories of job interviews ending in a request for Facebook passwords still float around, despite the clear invasion of privacy. Snapchat, with posts that disappear without a trace unless someone downloads them, may resolve the drunken photo-share problem. Social media is worrisome because of the foreverness of it. Can something we did years ago, that everyone’s forgotten about because it isn’t a habitual activity, come back to haunt us?

Not only can we fear the past being exhumed, there’s little to protect us from the practice of tracing our day to day web browsing activity. On average, I go to 20 different sites in a day. What does my cumulative surfing activity tell a keen marketing algorithm? The practice of tracking user activities (searches and website visits) may provide smarter observations about our tendencies than we can come up with ourselves. Is this a valuable service or an annoyance of spam and suggestive selling?

Some fears are rooted in reality. Identity theft. Credit card fraud. Or being sold something you don’t need because you’re vulnerable, like forest fire damage insurance. Don’t you feel bad for people who make a silly mistake and get caught on social media, like calling in sick to work when they aren’t, or ruining a surprise proposal or party. We all have lapses in judgement occasionally.

Privacy is a fundamental right. If I don’t want you to know ‘that’, then it’s my right to keep ‘that’ private. But often, it isn’t on web forms. How many have you filled out where a phone number is a required field even though you can’t see the need for one, but can’t place your order without it? More annoying is the site that insists you create an account, or ‘sign up’, with the requisite disclosure of personal information. I say NO to those sites because I’m convinced they get more out of me becoming a member than I do.

Most of us know it’s possible to track websites visited and location through the GPS on mobile phone. However, in one study, while 90% of a group of experienced internet users say they know what a cookie is, only 15% can actually answer questions correctly that demonstrate they really know what cookies are1. We may be vaguely aware that online actions are traceable, don’t know what does it really means, or what could someone do with the information. Facebook reportedly2 looks into browser history to target ads to users. If an organization is profiting by selling information about me, without my knowledge, that does not sound right.

Back to the original question – how much harm can be done if a company knows I’ve researched hemorrhoids, looked up recipes for grasshoppers, visited six shoe shopping sites, and watched way too many cat videos? It might be embarrassing, but it won’t ruin my love life, empty my bank accounts, or set fire to my car. Still, I’m uneasy about what’s being done with my personal information, because I don’t know what’s being done with it. I’m not alone. This study3 suggests only 28% of people in a group of about 1500 agreed with the following statement: ‘what companies know about me from my behavior online cannot hurt’.

I don’t have the answer to ‘what do I fear will happen if my personal information is online’. I don’t need to. I wash my hands, without knowing if a bacteria, virus or fungus is lurking, waiting to infect me, or how serious an infection it might cause. Similarly, I’m concerned that something sick and disabling might be done with my online personal information, so I’m cautious of what I share.

1 from Luzak, J. (2014) Privacy Notice for Dummies? Towards European Guidelines on How to Give “Clear and Comprehensive Information” on the Cookies Use in Order to Protect the Internet Users’ Right to Online Privacy J Consum Policy 37:547-559

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On Drugs: Emerging Business Models (an update)

Remember the pharmaceutical company(s) that started an avalanche of public outcry for snowballing costs (hundreds of fold increase in months) of certain generic drugs? Well, Imprisis Pharmaceuticals has come up with a solution to get reasonably priced versions of said drugs to patients.

Brilliant,” I thought, on reading how they are going to do it.

Then I chewed my lower lip for a while trying to poke a hole in the concept.

But couldn’t.

Finally, in awe of the simplistic genius, I did a classic face-palm and wondered, Why Didn’t anyone Think of this Before?

Before I get into the logistics of it all, let me say that I’m glad the people who need the drugs, such as the generic pyrimethamine of the branded Daraprim, have better access to them. This report indicates the price will be about $1 per pill, compared to $750 that Turing was reported to be considering at one time (but pulled back from).

The trick, not to imply that Imprisis is doing anything that involves slight of hand or fooling anyone, the clever bit, is that Imprisis will provide generic versions of pyrimethamine by using a method that is, and has been for centuries, a generally accepted practice in pharmacies – called compounding.

Compounding is ancient. Used to be, medicines were all individually made by someone with a mortar and pestle and an apothecary of ingredients. As the pharmaceutical industry became more sophisticated, the creation of medicines was standardized (generally a good thing for safety and cost-effectiveness) and pills were produced under strict manufacturing conditions for the masses. Mass-produced pills contain not only the active ingredient but other things to increase its shelf-life, make it easier to swallow, delay release so once a day dosing is possible, decrease stomach upset and some other side effects, and have become the norm.

Occasionally, a physician will prescribe a specialized formulation, which eliminates an allergen, or allows the drug to be administered in different form, such as flavoured liquid or rub-on gel. Compounding is a wonderful throw-back to physician discretion, allowing the doctor to make a professional decision about what’s best for his or her patient, rather than selecting from a menu of pharmaceutical company offerings. Compounding is also popular with veterinarians, who will suggest using a drug that’s been proven effective in humans but needs to be modified for use in animals.

I’ve used compounded drugs. For my cat – a specially formulated gel that I rubbed on his ear to ease long-term administration. For me – combination drugs for topical administration, antibiotics and anti-inflammatories all in one. What the Doctor ordered for the specific situation.

The differences between branded, mass-produced drugs and compounded ones often includes more extensive testing for the preformed pills because the pharmaceutical giant behind them has funded the studies. Also, the pharmaceutical company has the liability if their medicines do damage. With compounding, the prescribing physician takes on this risk, generally with significant knowledge of the properties of the ingredients in the compounded formulation. Somewhat like buying off the shelf versus DIY. Compounding isn’t practical for all the pills prescribed today – we’d need half the population working as pharmacists to provide the millions of drug doses Canadians take every year.

However, clever Imprisis Pharmaceuticals has come up with a practical approach to providing off-patent, rarely used but badly needed drugs, such as the active ingredient in Daraprim. This is the drug Turing jacked the price on and elicited an impassioned response from the public, often focused on the evils of capitalism, pharmaceutical companies and perhaps hedge funds for good measure.

I’d never heard of Imprisis before this and promptly looked them up. They are a very young company,

whose core business is in compounding of existing drugs for better patient outcomes. Although this year looks like their break-even year for sales, prior to 2015, they’ve lost substantial sums. A not unusual scenario for a biomedical startup.

Am I implying the Imprisis has deduced a brilliant solution, hidden in plain sight before everyones eyes and the company deserves the support to do more good, or am I suggesting that being a pharmaceutical Robin Hood is a brilliant marketing tactic by a small company wavering between financial hard times and glory?

I’m not. I’m just sayin’ there’s many perspectives to every good story.

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Brief Encounters with Artificial Intelligence

I’m preoccupied with how artificial intelligence will impact society even though artificial intelligence isn’t very smart or common yet. A couple of recent observations (the type that come with the metaphorical light bulb over the head1, not made with binoculars from a shelter hidden in the shrubbery) brought me to a greater understanding of how artificial intelligence may fit into everyday life.

First encounter: I picked up my phone and thumbed to my favourite cab company. I hadn’t called them in a year and a half, and was surprised to hear an automated attendant answer instead of the woman with the gravelly voice who called me ‘dear’. It said if I wanted to be picked up immediately at the address I was calling from, I could push ‘1’ and it would happen. I did and did and was (want to be picked up at the address, pushed 1, and the cab arrived shortly thereafter). As we cruised towards my destination, I chatted to the driver, telling him that while the call seemed very efficient, I felt odd about it.

What was lacking? Why was having a machine arrange to pick me up, when that was the very reason I’d called the cab company, disconcerting? If the dispatcher had asked if I wanted to be picked up at home, or the usual place, I’d be glad of the personal service.

For me, the missing link was someone who actually cared if the cab came to get me. Someone who wanted to do their job well and understood that if I was going to the train station it was to catch a train, and being late could have a ripple effect: missing the train, then maybe being late for a job interview and therefore mortgage payments. The gravelly-voiced lady may never have given a rat’s ass if I got where I needed to go on time, but generally, people can empathize with the consequences of being late. Yes, a machine can list the potential consequences, but it can’t remember the time it got a flat tire on the way to a wedding rehearsal where it was the best man for a nervous groom who needed his best buddy’s support.

My second encounter is more subtle. I’m knee-deep in business theory, pondering what gives companies like Harley Davidson and Tim Horton’s their competitive advantage. Causal ambiguity is a thing, which I’ve always liked the sound, and the meaning, of. It’s rather similar to the idea that the sum of the parts is less than the whole. Sure you can make motorcycles growl and sputter in an outlaw kind of way but what makes a Harley the motorcycle of choice for everyone from rock stars to the pastor of an upwardly mobile flock? Why is Tim’s a thing half the Canadian population will wait in line for when the competition across the street has the same product (coffee)? Casual ambiguity. Don’t know how – but it works.

The best explanation we have right now is that casual ambiguity is the sum of a vast number of elements, each subtly different than the norm. Will artificial intelligences be able to dissect casual ambiguity into its multitude of components? It’ll be interesting to see what the AIs come up with to explain the appeal of Hello Kitty or the allure of certain notorious socialites.

On the same topic (competitive advantage), but a more mundane level, human nature dictates we develop processes, or rituals. These get passed down through generations, whether it’s a ham recipe or a manufacturing process for golf balls. Scholars of Operations Management know that the best processes morph overtime because every little detail can’t be recorded, so instructions are interpreted and revised. Will AIs eliminate this natural drift, detailing processes with an infinite number of stepwise instructions? Me, I take detailed instructions, read them until I understand the concept and then construct the functional details.

Humans make mistakes. Sometimes the mistakes are good and we discover something new. Sometimes they’re neutral for many cycles and get propagated through the system then someday turn out to be of benefit.

AIs won’t make mistakes, so there will be no drift in the processes they oversee or serendipitous finding of new things. AIs follow instructions with a precision that leaves nothing to the imagination.

So, we humans, with all our squishy emotions and random actions, are useful after all. We care – who can deliver good customer service without caring? And we err. To err is human, not to err – divinely artificial.

1Does that metaphor still work with a compact fluorescent bulb?

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Big Data – So Glad I’m not Alone

How many businesses are based on the collection of user data? Could be all of them, soon.

Having done just enough reading about the Internet of Things to be dangerous, I’ve surmised the time is coming when we’ll have the capacity to collect and store a ridiculous amount of information, perhaps down to a level of minutiae (does that word rhyme with nausea?) whereby we could track each step the family pet takes, every day, as it wanders around the house. I have to admit, I’m curious what my cats do while I’m not home, but suspect that information would interest me for 0.8 minutes. And I’d pay less than what a cup of coffee costs to know.

If I won’t pay, maybe a maker of veterinary products will. And discover a cause to displaced aggression, an increasingly common syndrome whereby cats get all snarly because they can see another cat outside their home, making them uber-aggressive to anything inside their home. Perhaps a new line of pet-food would counteract the cause. Depending on what the cause is, maybe the manufacture of air-fresheners, refiners of natural gas or growers of gourds should get involved.

It may seem I’m being silly but that is the potential of big data. Everything may be connected to everything else in previously unsuspected ways. A world where every object (including people) sends frequent signals about its position, temperature, or movement isn’t so far away. And while that may seems like an innocuous set of variables, much can be determined. Knowing where a person is at all times says a lot about their habits and interests. Go to the corner store each night? – there’s some kind of habit brewing – smokes, junk food, lottery or maybe just an attraction to the clerk. Already sounds like too much person information.

Add a little more, like your purchasing habits, co-location with other objects (people) provides much information about your relationships. A speedometer, GPS and accelerometer is enough to reveal your driving habits – do you break quickly or a lot? Knowing your speed and where you are tells if you are a habitual speeder. Aggressive driving can be spotted by proximity to other vehicles.

So there’s another rub. Things we are buying now come with embedded information gathers. Never mind the electronic device (mobile phone/tablet) we use to communicate that snarfs down a mountain of information about us – there are others, such as cars. Appliances will soon want to be in constant contact with retailers (or maybe the other way around) so the fridge will refill itself with all your favourite foods (at your expense). The washer and dryer will order refills of detergent and fabric softener if you don’t stop them.

The electric utility monitors my consumption of power by the minute but also may soon link that information to all the appliances in my house to suggest which are being left on too long or could otherwise be used more wisely. That’s information I can use to decrease my power bill, or may be the information will be used in another way.

Oops.The pessimist woke up.

What about personal privacy and associated rights that various businesses may want to stick their nose into? Like say, Insurance. There’s a data loving industry. Wouldn’t my home insurance provider like to know if I was in the habit of leaving electrical appliances unattended, risking a fire. Or maybe they’d be more interested to know there was no power drawn from a home security system even though I ensured them I installed one.

And this is just one example that sprung to mind. There’s cars and driving habits. Food and eating habits. How hot I heat my home compared to everyone else in the neighbourhood. How many fruits and vegetables my family buys each week and how many end up in the compose bin. The household consumption of entertainment – bringing a blush to everyone’s cheeks. You get the idea. Personal privacy is at stake.

Many businesses assure us that our information will not be used except to ‘provide us with service’ – that sounds like a can of worms.

When I saw the title ‘The Need to Embed Big Privacy in a World of Big Data – by Design’ a talk by Ann Cavoukian, I was thrilled because it seemed to echo my sentiments exactly. Dr. Cavoukian is the former privacy commissioner for Ontario who has created a system called Privacy by Design to protect privacy (all kinds, individual, corporate, organizational).

I went to the talk. I liked what I heard. The key principles. Privacy should be:

  • Proactive
  • By default
  • Embedded into design
  • Positive sum – not a trade off with security, we get privacy and security
  • Full life cycle protection
  • Visible and transparent
  • Respect for user choice – no service denial because you decline to provide information

The last one won me over completely. Too many online sites are binary (yes, the irony is intentional). If you don’t agree to provide information required, you can’t get in. After all, it’s a web interface and not capable of understanding explanations.

Hence my love of the privacy by default idea. If I don’t want to provide my birthdate, I can still get an account. This is where privacy by design is important. Yes, it you need to ensure users are above a certain age. Currently, you build the user account system to verify this by asking for their date of birth, then of course they are rejected if you refuse to provide that information. But if you did it differently from the beginning, asking people to warrant they were of age and sending an email to confirm, you might design a system that protected the provider and the consumer equally. Squeee.

One of the suggestions was that we should be routinely reminded that data was being collected. I’d love it if Facebook popped a window to tell me I’d watched 65 cat videos in a month and they were escalating my profile to ‘cat lady’. Or Twitter said I was following enough grunge-rock bands to qualify as a metal-head groupie. It might be fun.

I applaud the Privacy by Design initiative, to boldly embrace privacy and see how easy it is to incorporate it if it’s done from the beginning. I can see it as a competitive advantage, providing customers the option of how much of their data is used and what kind of information they get back from sharing. Sigh. Oh for the day when we’re secure in what we communicate freely, without fear of our messages being used against us.

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Innovation without Technology

Can a new product, a new service or application, be commercialized without new technology, without inventing a widget or writing new code? It can, when it’s based on knowledge, know-how, or understanding an old thing in a new way.

Remember the phrase – all the buzz ten years ago: ‘the knowledge economy’? While it certainly seems like machines are getting smarter ( but that’s another story), new knowledge has been translated into ICT, social media and the emerging IoT (internet of things). Billions of burgeoning new businesses (ok I’m exaggerating) became because people invented new hardware or software. Which is good. And of course, based on knowledge.

And while some of us were busy creating the new knowledge all those electronic, interconnected, disruptive technologies are based on, many others were discovering other new knowledge. In the past week, I’ve come across five new useful products, businesses or services or practices, that are based on knowledge. Not new technology. Just people being able to help more people because we’ve learned some stuff. And this too is what comes of research and translating research into a form that can be used to benefit society.

In no particular order, this is what I’ve learned about:

1. Understanding Childhood Behaviour. A medical condition can effect children – ODD1 – oppositional defiant disorder. Sometimes, putting a name on worrying behaviour makes it easier to deal with. This disorder is associated with excessive anger and vindictiveness in children towards authority figures, including their parents. Recognition helps people get coaching to facilitate positive ways for children and parents to interact. New ideas. New perspectives.

2. How the Body Changes in Pregnancy. The hormone relaxin2 is secreted, making all joints more flexible. There is a growing hypothesis that some women will secrete more than others and that the excess flexibility throughout the body can cause long term complications like arthritis. Awareness of the possibility can help woman take care, through exercise programs, to strengthen their msucles in such a way to protect their joints.

The other things I’ve learned about recently were at a wonderful event put on by Durham Sustain Ability on indoor air quality.

3. Knowing What’s Harmful in Indoor Air. Caroline Barakat-Haddad, a professor from UOIT, reviewed the scientific literature on indoor air quality, pointing out what had been found to be the most harmful types of indoor air pollution. Our bodies have adapted to deal with some particles in our environment but not others. It’s important to know what to guard against and to pinpoint causes and effects. And use this knowledge to create better indoor spaces.

4. Practical Approaches to Improving Indoor Air. Gail Lawlor presented us ideas for addressing common indoor air problems based on standards for air circulation in buildings. Such a nebulous concept – when is the air in a building good? Such a practical definition. If 80% of the people are comfortable, it a good start. Mould Get rid of the moisture. Old homes have a variety of benefits because they are built of materials that don’t interest mould But they aren’t air tight, which is both good and bad. While it avoids ‘sick building syndrome’ because there is natural air circulation, they lack optimum circulation to clear away the inevitable byproducts of our material things.

5. Living Walls – more than just a beautiful facade. Anyone who has seen one of these knows they are awesome. Alan Darlington, from Nedlaw Living Walls gave us an overview of how these storeys high, vertical displays of lush greenery are constructed and function. Something about an expanse of plants rising into the sky, dominating a foyer or other indoor open space evokes the feeling of calm, like you’re in the sunshine, in a forest or jungle, yet going about your daily business. Really, these wall are feats of engineering, horticulture, microbiology, and artistry. A serious combination to make a light-hearted atmosphere. And while there may be proprietary technology in the construction, what I heard was primarily a new way of putting together existing technology. The genius is in the creation of the whole.

There’s nothing I like better than learning new things. My recent experiences are a reminder that new knowledge, useful knowledge that can be delivered by business to make all of our lives better, comes in many forms, not just new gizmos or apps (although those are good too).

1http://www.mayoclinic.org/diseases-conditions/oppositional-defiant-disorder/basics/definition/con-20024559

2http://www.yourhormones.info/hormones/relaxin.aspx

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Where Are We Going in Self-Driving Cars?

If ever there was a disruptive technology, it’s self-driving cars. Imagine a world full of autonomous vehicles, and the ripples through all aspects of our lives.

Visionaries see a time when our roads will be filled with computer-driven cars, cars that completely control navigation – selecting the route, setting the speed, obeying traffic signals. Artificial intelligence systems in the vehicle will sense road conditions and surrounding objects, people and animals and integrate this information with data from other systems such as weather reports and traffic conditions, to get from point A to point B safely and efficiently.

To make this a reality, two major areas of technology have been advancing for the past two decades and will continue for decades to come:

1. Car technology. In broad categories, this consists of automated sensing, integrating and controlling. Automotive components and systems have been developed to sense the environment (a current example is the camera that shows what’s behind the car when backing up, and the detector that beeps more frantically as the car approaches an object). The next step is a system to integrate various information and control a subsystem of the car, such as breaks that automatically engage when the car is about to run into something. Subsystem control is available now and truly self-driving cars are being tested on the streets of California. Various sources¹ suggest we are ten to twenty years from truly self-driving cars dominating the roads.

2. The Internet of Things. The capacity to coordinate cars and traffic relies on a level of connectivity of many things, including each car, the traffic lights, community events (for examples a few thousand vehicle trying to exit the stadium parking lot after the game or a road closure for a charity event). This capacity is growing, perhaps exponentially, but I believe is still in its infancy.

Self-driving cars are anticipated to bring all manner of benefits, such as:

  • safer roads. No more human driver error.
  • more accessibility. Anyone can sit in the ‘drivers seat’ of an autonomous vehicle, regardless of their age, mobility, visual acuity or what they’ve been doing previously, like sitting in a beer tent.
  • more leisure time. The time we all spend driving becomes time to read, chat, or catch up on our communications (safely).
  • less traffic congestion. If the cars control the traffic, they can optimize the volume, distributing the traffic so there are no jams, rerouting around accidents long before everything comes to a halt, except…
  • fewer accidents, because the cars should be better at avoiding them. So, that’s even less congestion and more efficiency.

Depending on how the system evolves, we may stop owning cars and call them on demand. This could eliminate the need for parking, further easing congestion and freeing up a lot of real estate. When ready to go for groceries, send a text and the car appears. The cost will depend on the distance travelled, number of passengers, other items carried, whether we are willing to make a slight detour to share the fee. The fee would encompass maintenance, fuel, license fees and insurance.

What will become of taxi drivers? Other industries are likely to be effected. If there are fewer traffic violations and accidents, we’ll need fewer police, ambulance workers and tow-truck drivers. Auto insurance could be a thing of the past. If the cars are centrally dispatched and maintained, then there’ll be less need for fuelling stations and auto-mechanics. There may be less wear and tear on the roads and less construction.

All this efficiency and safety sounds very appealing, even if it has the potential to impact many industries and professions. Cars are a big part of our lives. People like to to drive. Think of the family tradition of loading everyone into the car, with no specific destination, and going for a drive. There are parents, at wits end to comfort a crying child, who bundle the infant in their car seat knowing that just ‘driving around’ is a sure fire way to send the little one into silent slumber. I get in my car to see new places, turn down roads I’ve never been down to find out what’s there, and take the long way because there’s a breath-taking view or tricky curves where I can put my steering skills to the test.

I’m sure we all hope autonomous vehicles will make road rage go away, but I’m skeptical. Impatience and feeling a lack of control seem to fuel road rage. The driver of the car that fills my rearview mirror who can’t get home fast enough to the icy cold beer he/she needs after a day of being scrutinized by the boss may not appreciate a self-driving car. An autonomous vehicle is unlikely to break speed limits, totally unsympathetic to the rider’s need to get where they want to go faster (although I can imagine that if we develop a safer automobile transit system, speed limits could increase).

When I was a kid, getting your driver’s license at 16 was a significant rite of passage. With self-driving cars, there may be no more licenses. With luck on my side, fully functional driverless cars should fill our streets about the time I’m too old to get my license renewed.

As a new technology, self-driving cars have the potential to deliver enhanced safety and efficiency in our transportation systems in an environmentally positive way, but they also have the capacity for profound social and lifestyle effects.

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¹ As examples:

https://www.navigantresearch.com/newsroom/three-quarters-of-vehicles-sold-in-2035-are-expected-to-have-autonomous-capability

http://www.driverless-future.com/?page_id=384

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Beyond the Internet of Things (Already!)

Can Moore’s law – that computing capacity expands exponentially – be extrapolated to the Internet of Things (IoT)¹? This is one of the questions that went through my mind at the MedEdge Summit (#MedEdge)  – a half day with the tag line ‘disruptive innovations in healthcare’.

It was a really good meeting. For me, a memorable meeting makes you think. I met interesting people, from diverse backgrounds in healthcare-related industries. I learned new things. Healthcare is a good example of an area at both the forefront and tail end of technology innovation. Perhaps that’s why the themes of change and connectivity resonated for me.

Here are some of the observations and predictions I had after attending the Summit. I’ll end with some thoughts about Moore’s Law.

For medical care, this initiative is going beyond the Internet of Things, to the Internet of Healthcare. The Internet of Healthcare includes people – updates from and to all the medical professionals – combined with data from other sources. The pilot project was presented at the Summit by collaborators from Mackenzie Richmond Hill Hospital, Thoughtwire and Blackberry. Blackberry has some interesting inputs, especially in security, a significant challenge in the IoT, and even more so in healthcare.

This is the forefront of technology, beyond the internet of things to the internet of all objects, devices, information, and people involved in caring for patients. And yet, at the MedTech Summit, there were reminders of the challenges in the business of healthcare and particularly to commercialization or adoption of novel products. I learned about OHIC (Ontario Health Innovation Council), an initiative of the Ontario Government with a mission to accelerate the adoption of new technologies into our healthcare system. I particularly liked the diagram, a motif in this OHIC report , with a hustling Innovation Broker in the centre of a mesh of the myriad stakeholders in healthcare.² This is a connectivity of a different type. Different forms of communication are required for the connection between patients, their families, medical practitioners, healthcare organizations, businesses, regulatory bodies, academic institutions and investors. This abundance of stakeholders makes commercialization particularly challenging in the healthcare sector, compared to others, like manufacturing, consumer goods or consumer software (apps).

I suspect we’ll see a rise in innovations in home and consumer-based healthcare but the business environment for this sort of product can be challenging. Physicians can prescribe outside medical care, such as oxygen therapy, physiotherapy or massage. Suppliers of these sorts of services or goods can’t actively recruit customers, since the physician decides who needs the product. They can’t set the price, since reimbursement, from either the government or insurer, controls pricing. Product innovations and features are limited by regulatory bodies. New offerings in this area will need creative business plans to flourish.

How fast will we see change in healthcare? The revolution in the IoT is the exchange and compilation of information from, and about, many things. Not all the things communicate like computers. People, animals and other complex phenomena like the weather use hard to model processes to make complex and random moves or subjective decisions. Objects like furniture and cars, especially those manufactured in the past, have no ability to communicate electronically and while newer versions can do so, the world is still full of old ones.

Connecting people and inanimate things into the Internet of Things is no easy task and will take more than just advanced computing power. It will require completely new ways to make connections and this will take time. My prediction for the Internet of Things is that it will bring policy and policy reform in many iterations and this will slow its growth. Thus, the creation or formation of the IoT is going to depend on a whole lot of other factors than the processing speed of a semi-conductor. Moore’s law is going to need a few amendments that take people into consideration before it can be applied to the IoT, because people, after all, is what healthcare is about.

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¹ The Internet of Things is a concept that encompasses connecting all objects, – books, pill bottles, pets, cars and everything else -, on the world wide web or through other electron communication systems. The internet of everything doesn’t exist right now and probably will never, but just might. However, currently there are internets of a subsets of things, for example the connection of everything in your house.

² It reminded me of why I have ‘spider’ in the name of my business. Here’s the blog post.

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Pop Up Shops as Business Development Tools

Can retail entrepreneurs use the Lean Startup approach? Popularized by Eric Reis, many companies in the tech sector embrace this approach which uses customer feedback to guide product development. I think there is a way for retailers to have a lean startup : pop up shops.

Pop up shops are a recent phenomena, perhaps inspired by a desire for spontaneous action or the ‘just do it’ approach to entrepreneurship. “A pop-up is a shop, a restaurant, a collection of shops, or an event that opens quickly in a temporary location and is intended to operate for a short period of time” ¹ I’ve recently become aware of pop up shops because the Downtown Oshawa BIA (business improvement areas), of which I am a member and volunteer for, is considering an initiative to facilitate them.

Established brands may use the pop up concept to test new products, do a promotion or generate interest. E-retailers also may find it useful, for similar brand promotion reasons, to have a physical presence for a limited time. For examples, this article  mentions Target as a traditional retailer that tried a pop up to promote a new line of clothing, and e-retailers, Shop.ca and Frank & Oak, have used pop ups. Pop ups may also be useful for seasonal goods or time-limited markets.

For entrepreneurs looking to start a new venture, launching the business on a temporary basis through a pop up has many advantages, which include:

  • obtain valuable information about target market and direct feedback from customers
  • start earning money while in the planning phase
  • use current business techniques like lean startup
  • gather information to help you decide how to optimize your business model, test your assumptions.

Here’s why property owners might want to provide pop up space:

  • allowing vacant retail spaces to be used for pop up shops provides some income
  • having a temporary tenant gives potential permanent tenants a better feel for the space in a low pressure environment – it’s like a month-long open house for the premises
  • pop up tenants may become permanent tenants, paying full rent
  • the pop up initiative, as it builds vibrancy in the local business area, increases the value of all the properties in the area.

Pop up initiatives can be used for economic development, pairing vacant storefronts with entrepreneurs – to the benefit of all involved. Such programs can be a positive experience for property owners, entrepreneurs, existing retailers and supporters such as local governments. One great example of a local success for pop up shops in a retail area that was in need of revitalization is Danforth East in Toronto. Organizations such as Renew will assist towns or areas within cities to establish a pop up program and report successes. Local BIA’s and other economic development groups may support a pop up initiative because:

  • to support mandates to promote the area as a business and shopping district, for urban renewal, to refresh the image of an area
  • the infusion of new, temporary retailers should draw additional visitors to the business area, benefiting all resident businesses
  • providing a novel, fresh approach to retail in the area will generate additional interest in the area

For the entrepreneur, pop up shops provide opportunities for aligning products with customer needs and building brand awareness. A facilitated pop up initiative, lead by a group such as a BIA or town, can provide benefits to all business owners in the community, through increased awareness and the attraction of a more diverse audience to the area.

If you are an entrepreneur interested in a pop up shop in downtown Oshawa, the Downtown Oshawa BIA would love to hear from you. Let them know if you are interested, what kind of facilities you would need and any questions you have about a pop up initiative. Email here: info@downtownoshawa.ca .

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¹From this Forbes article, quoting Pop Up Republic.

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Convergence 2015

OCE Discovery is one of the largest innovation/commercialization conferences in North America. Inventors, commercialization professionals, investors and emerging companies participate. I attended this year for the fifth time in six years. The main show floor, in the Metro Convention Centre in Toronto, is like a sparklingly bright nightclub full of all of your favourite business colleagues: past, present and future (minus the cocktails, until an appropriate hour).

While my time at the conference was invigorating, chatting to folks about new trends in government support, and seeing emerging business models from new entrepreneurs, back in the calm of my office, I ruminate about what I learned about the evolution of tech-based businesses. It all comes down to this:

Convergence.

Convergence was a buzz word when I was in the investment industry in the late 1990’s. The internet – its anticipated impact – was the shudder running down everyone’s spine. Then, it was a tool for the academics and those in the tech industry. The prophecy – that this communication platform would change the way we obtained all our information: text, movies, music, mail and news. Guess that was a pretty good prediction. Sharing of all content converged to one platform. The internet was disruptive and many business models evolved because of it, but few have become extinct.

Enough nostalgia. Let’s talk 2015. At the conference, the keynote speakers included Eric Ries, of Lean Startup fame, representatives of Uber (the app to let people get rides with other people), and Airbnb (a service that hooks up traveller and those with accommodations to share). There were other companies I met, like the Innovation Concierge, with a skills-to-need matching concept for small, unusual projects, or FreePoint, a company with an innovative perspective on monitoring production on the factory floor.

What’s converging in 2015? Everything we do. The term work-life balance emerges frequently in water-cooler conversations. Is it possible we are moving away from any distinction between work and life? Uber allows people to share rides, turning a personal trip into revenue potential. Similarly, Airbnb provides a way to let people earn a little extra cash by sharing their living quarters with travellers. But each is more than that. Both sides of the transaction can gain something personal, new friends, companionship, new perspectives.

The lean startup model encourages incorporating ample user feedback into product development. The Innovation Concierge solves business needs by looking at the full spectrum of a person’s skills, not just their business experience.

A keynote speaker, Chad Hurley, cofounded YouTube with the goal of allowing individuals to share their videos. We are converging to a global collection of a billions of individuals. Individuals with individual interests, needs and abilities. Uber puts individuals together for car rides, Airbnb for accommodations. FreePoint lets the individual factory worker participate in manufacturing efficiency.

The convergence I see involves loads of interaction facilitated by technology, interaction between buyers and sellers, creators and consumers, those who have and those who need, those who know and those who would like to. At any given time, each of us may fall into several of these categories at once, because of our business, personal or social experience.

When I headed to the conference, I was thinking about making connections for my clients and with new clients. And I did. But I also found connections for my family with businesses, for clients with potential suppliers and partners, and for colleagues and friends.

This is what I discovered at Discovery: Life is converging – business is personal and personal is business. Technology ties it all together.

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Growth Hacker Marketing – a Real time Book Review

I finished reading a book about marketing and 24 hours later implemented one of the new strategies I learned. Is this too slow to call real time? I’m old enough to remember black and white TV commercials, so it seems fast to me.

The book, by Ryan Holiday, is simply titled Growth Hacker Marketing, after a business strategy that is often applied in high-growth, emerging tech companies and is as an iterative approach to incorporating customer feedback to promote the product. The hacking aspect comes alive as an immediate, just do it and amend on the fly mentality, rather than through traditional, highly planned marketing approaches which employ much testing such as with focus groups before launch.

The author describes the concept elegantly in these two excerpts from the book’s Glossary:

‘the growth hackers’ main task is to build great marketing ideas into the product’
and
‘growth hacking… customer acquisition techniques that are testable, trackable, and scalable’

Not too far into Growth Hacker Marketing, Eric Reis’ ‘Lean Startup’ philosophy came to my mind, which was fine because in another few pages, it was mentioned by the author. Similar ideas underpin the two – get lots of customer feedback. Get a product out into the hands of users, see what they think and modify the product accordingly to suit their needs. In Growth Hacker Marketing, this goes a little further, to incorporate features into the product so that the users themselves will build awareness of the product and recruit additional users. From here, it’s easy to see how this kind of strategy can lead to a ‘viral’ market campaign – the penultimate goal of many marketing folks.

Ryan Holiday provides may examples in Growth Hacker Marketing of familiar companies that have used growth hacking and even his own experience with promoting a book launch. As he states, this approach to marketing can be applied to anything. I’ve seen examples too. Wattpad is platform to bring readers and writers together. The writers like it because they have access to a number of readers to raise awareness of their product and the readers benefit by finding new fiction. Readers provide feedback to the writers on their stories. Since the writers find benefit in Wattpad, they talk to their writer colleagues who then join, providing more material for the readers.

A related example is Inkitt, an organization (not sure of its structure) which, like Wattpad, is based on a social platform where writers submit their stories and get feedback from each other. The editors at Inkitt then select the best stories to publish on their website, where readers can consume for free. The philosophy espoused by Inkitt is that better reading material can be created as a communal effort, with many eyes on the early stage product, that is adapted and amended based on user (reader) feedback. I became aware of Inkitt because a fellow writer sent a link to me.

How did I use the principles I learned about in Growth Hacker Marketing? I am working on building the membership in a not-for-profit organization. It’s easy enough to articulate who the target audience is but the most efficient way to reach them is less clear. After reading Growth Hacker Marketing, it came to me: the existing members are likely to know who would be interested in joining. Let the existing users draw in other users. And we’ll make it easy for them to do so by sending messages they can simply push out to their friends.

This is an odd sort of a book review, maybe a good example of Growth Hacker Marketing. I’m not sharing a critique of the book so much as my enthusiasm about how I see the book’s message in practice. Perhaps if you read my review, you will be inspired to read the book because this user had a good experience with it, and you’d like to have that sort of experience too.

Well designed and marketed, Ryan Holiday.

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