Who Is Buying Your Personal Information and the Internet of Things?


Who owns your personal information? Who gives companies the right to collect data about you, your family, your friends, your activities, where you live, what you eat, drink, your health, how you travel? Somewhere along the line you probably did, because you didn’t read, or understand the fine print when you signed up for an application, an email newsletter, a loyalty card, or you aren’t worried about your privacy.

There has been much talk about the NSA, and big data monitoring systems in most countries around the world designed to protect us all from terrorism. There has been a lot of talk about how privacy is being eroded with social media. Many of us have the philosophy that if we don’t do anything wrong, we have nothing to hide. But who else is collecting, buying and selling personal information about you?

FuturistA recent story in The Futurist called ‘Connecting with our Connected World captured my attention, particularly when it outlined, from a Wall Street Journal article,  apparently fairly common knowledge, that many retail stores track personal shopping habits using loyalty cards and then resell the data to marketers. The Wall Street Journal article ‘confirmed’ that this same data is now being purchased by insurance companies for the purpose of setting premiums and investigating claims.

With the Internet of Things (IoT), we are now being encouraged to buy fridges with built in bar code readers and wireless connectivity, so that we can scan items we use and feed them to our shopping list. Many of us now have grocery applications, such as the Countdown app, which I have blogged about before in my SoLoMo Consulting blog.These apps monitor what you buy, suggest specials, recipes and even navigate you up and down the aisles of your nearest supermarket so you don’t have to backtrack for things you forgot.

As Richard Yonck of Intelligent Future LLC in Seattle points out in The Futurist, “the rate at which a household consumes sugar, salt, tobacco and alcohol would potentially be an open book.” What could your health insurer infer from that?

It names them

It names them

Combine the information from your mobile apps that know your location, where you have given permission (which is probably half of the apps you use today), your climate control, light controls (that suggest you might be home, or not), fitness apps, social media (freely searchable with tools like Facebook Graph like the example which names people who like Edam cheese,) the direction Google and Apple are heading, to be able to predict what services you may want next based on your context, profile, time and location, your life is an open book today.

The problem with all this big data that we are ‘willingly’ sharing, is that we really don’t know what we are agreeing to or what the data is being used for. I don’t believe we have adequate laws nationally or internationally to protect us from abuse of this data by any agency, business, government department, insurance company, utility company, finance company, the list is infinite.

According to a story in The Public Herald it’s pretty much a free for all. For example they say:

  • Experion sells data updated weekly on new parents, new homeowners and other new event life triggers.
  • Have a read of what information Epsilon sells in this PDF. Who reads Science Fiction novels? Ever wondered why your phone keeps ringing with charities asking for donations? They buy lists.
  • Back to the Public Herald which says that Disney sells data including who bought what, the age and gender of the children, age and occupation of the people who purchased from them and more.

These are just scratching the surface. It isn’t necessarily all bad, the problem is that there doesn’t appear to be any authority tracking who shares what information with whom. The issues come down to informed consent. When you sign a form, enter a competition online with an attractive prize and you click, ‘yes, you can share my information with partners who may have items of interest to me’ perhaps because you think you might have a higher chance of winning the prize, you are losing control of your data.

There are laws designed to protect us from spam, but we often sign away rights without understanding the implications. Companies selling our data will argue that they have our approval to use and share our information. The flow of data will become so convoluted that it will become impossible to know who has what. Big Data companies will consolidate this data also with our ‘implied’ approval.

Governments need to be thinking about this now, if it is not already too late. Of course they arguably need the data as well in order to provide quality health, education and other services, including planning future smart cities. They need as much data as possible, although they don’t in many cases need the granular level down to individual people.

So as a footnote, think about all the cool Internet of Things you are buying over the next couple of years, like exercise devices, remote controlled security cameras and home access, climate control, sleep and snoring monitors, lighting, car telematics, electronic ticketing for public transport and much more, weigh up the cool with potential risk and consider that if legitimate organizations can access your data, so potentially can people wanting to commit crimes. It is already known that burglars steal product to order based on what they find on social media apps like Facebook (had a great weekend on the jet ski and now I’m off to Fiji for a couple of weeks and I’m putting the dogs in a kennel).

Who Can You Trust? Who Do You Trust (Read Time 1:41)


Who do you trust? Who can you trust? With happenings in Auckland, New Zealand mayoral politics recently, the NSA spying, and other revelations, we find ourselves in interesting times. With the invasive growth of social media we live in a world of increasing transparency. Corporates and Governments which have thrived on sharing only what they think people need to know are losing that battle.

I’ve been reading article in The Futurist by Rolf Jensen, Chief Imagination Officer (I like that title!) of Dream Company in Denmark who compares today’s society to the first Renaissance. Gutenberg’s Press accelerated the spread of new ideas, and the golden age sprung out of the middle ages where much of the world was controlled by a religious hierarchy.

FragWe have a similar break-up to political hierarchy’s now, particularly in but not limited to the Middle East and Europe, and like the Gutenberg Press, Social Media is now making important information available to the masses, most significantly in real time. This means that it isn’t possible for governments and corporations to use smoke and mirrors quite so much. With trending information, we can see right past the kaleidoscopic obfuscation to what is really going on.

Here are some interesting statistics that Rolf shared in his article in The Futurist:

  • From Pew Research: In the 1960’s 75% of the US public trusted their Government. In 2010 the result was 25%!
  • The European barometer polled UK voters in 2005 and found a trust level of only 34%. In 2012 that was down to 21%.
  • CEO’s of large corporations are trusted by 45% of the US population (almost double the number that trust their politicians, that’s positive isn’t it?)
  • Gallop says that teachers are trusted by 84%. That’s great news isn’t it. What a shame they get one of the smallest parts of the budget!

Back to social media though, what we are doing is finding groups of people that we do trust and building a new society. We’re sharing knowledge and information in countless ways that have immediacy.

As an example, in my new eBook, Buying a House – Using Real Estate Apps, Maps and Location Based Services, I speak a lot about using social media to research where to live. I cover questions like where to find people who are like you, or people who can tell you about a suburb or area, who have nothing to gain by sharing that information. Who can you trust to give you honest information?

I feel very grateful to live in such exciting times where the power is gong back to the people. Of course ‘the people’ do have to take the power and whilst everyone subsequently had an opinion on Mayor Len Brown’s indiscretions, only 33% turned up to vote in the Auckland local Government elections. I do like the saying ‘You get the Government you deserve’.

So who do you trust? Who do you go to for advice? How are you going to use the information now available to you, to help build the world you want for yourself and your children? How will you contribute?

Comments welcomed.

Can the NSA track you on your prepay mobile?


The recent news about PRISM and NSA surveillance on people based on their Internet usage and mobile usage is fascinating. The concept of being able to monitor people’s activity based on their mobile is nothing new, although of course we all thought that it would only happen under a warrant, or in emergency circumstances such as when someone makes a 911 call or perhaps in a SAR emergency.

USA 162Commercial vehicles are being tracked as a normal process, in some cases to ensure staff are working, but more commonly for more practical purposes, such as driver behaviour and safety, making sure that refrigerated trailers maintain correct temperatures and in countries like New Zealand to allow diesel truck operators to claim Road User Charge rebates when they are not driving on public roads, which can save businesses a truck load of money if you will pardon the pun.

As a fan of TV programs like Person of Interest and 24, which I hear is making a comeback, I often wonder why it seems so hard to track criminals, but if you follow my blogs and tweets you will see that more and more criminals are being caught, especially after stealing iPhones or other devices containing GPS and communications. I love those stories.

So, to the question of this blog. What we know is that government agencies (and businesses with their clients’ approval, such as finance and insurance companies) are tracking people and monitoring their behaviour. By monitoring Big Data about the location of people’s mobiles, algorithms can identify information such as where people live, work and play. They can identify associations with other people through this same data. For example if you monitor a person and establish their home (where their mobile is most nights of the year) and identify other mobile devices that are also at that location during most nights of the year, then you can identify that they also probably reside at that location.

If those people were criminal suspects of any kind, you could thereby potential make some assumptions that those people might also be criminals. This would be very useful, not only with terrorists, which we thought were the prime reason for being able to spy on people, but also gangs, drug dealers and manufacturers and more. I guess part of the issue there is whether this evidence is admissible in a court of law. But again I digress.

If you are able to monitor mobile phone radio connections using GPS or less accurate technologies and identify unknown devices such as prepaid mobiles that frequently appear at the same locations as known devices, that would suggest that you could infer the identity or characteristics of a user. If, for example, a person had a mobile for normal use and an anonymous prepaid mobile for more nefarious purposes and they were carried around together, you could infer that the user was the same person.

This could mean that effectively the use of a prepaid mobile, being used for the purposes of criminal activity, on the basis of its implied anonymity, could be fatally flawed. Not a bad thing in my opinion. The problem is more in the assumption that a governmental agency has the right to spy on its citizens without recourse and without obtaining a warrant from a court first, a bit like apologising after the event.

I am all for keeping law abiding citizens safe, but there should be transparency on how that is done, especially in countries that we consider to be enlightened democracies. Anyway, the answer to the question in my opinion is that using a prepaid mobile will not by default prevent you from being tracked or identified if an agency has the power to track radio devices. the technology is certainly easy to access.

Petrol Tax Increase and Solar Power Feed-in Tariffs


It’s election year next year and the National Government has announced petrol tax increases to start in July this year. Now I don’t have a problem in principle with user pays, although after the report by the Ministry of Transport earlier this year, it doesn’t look like things are going to improve, in fact we are likely to see mid day traffic congestion (don’t we already have that?) in Auckland, as well as the morning and evening commutes.

Long BayThere doesn’t seem to be a lot of encouragement for people to work from home although that would ease the pressure on congestion. Auckland Council seems dead set on high rise housing in the Auckland Unitary Plan, but at the same time they are building new homes in areas like Long Bay as quickly as they can, with no sign of increased road capacity for the 2500+ homes to be built. Don’t get me wrong, I’m not against high rise as long as it is done smartly, without taking sun away from existing properties and it is part of an environment which includes amenities that encourage people to work, live and play in a safe healthy environment.

Wouldn’t it be great if those homes all had solar panels on their roofs and were able to sell excess power back to the power companies. Even better if they could get interest free loans to cover the cost. This last long hot summer would have been able to generate massive amounts of power for water heating etc. It’s funny that when I built a minor dwelling next to my last home, I had to install an ugly water tank to capture rainwater and allow it to trickle into the stormwater system from the roof, which I could of course also use for the garden, but there were no options with regard to using renewable energy.

I was listening to the Peggy Smedley Show podcasts as I do each week and she recently interviewed Nick Bitterswyk CEO of Urban Green Energy, who mentioned that great things were happening in areas like solar power in Australia and New Zealand. He was right about Australia, which is going gangbusters with finance and feed-in tariffs, but clean and green New Zealand is not. We do not walk the talk when it comes to renewable energy as you can see on the web site at EECA.

At a recent home show I visited every exhibit where they were selling domestic solar power solutions and asked about the ability to sell surplus power back to power companies. They said that it was not happening, that the utility companies were not supportive or interested. They said that they and the Government have their own agendas when it comes to power generation.

Now we have a large reliance on hydro and geothermal power. Much of our power in the North Island comes from geothermal power sources in the Taupo region, such as Wairakei. I wonder what would happen if we had a major eruption and this source of power dried up. What would our back up plan be? What if we had another drought similar to the one we had this summer and the lakes were too low to provide sufficient energy. You can’t suddenly roll out a solar energy plan at the last minute.

I urge Kiwis to consider solar power and feed-in tariffs when thinking of who to vote for next year in our national elections. This is not a new topic, I have blogged about it several times. If a disaster happens, will the Government say they could not have foreseen this situation? I don’t think so, it is a choice. I’m hoping that at least the Green Party will think about this as part of their election manifesto. Actually where are the Greens? They do appear to have a policy on feed-in tariffs, but its pretty hard to find.

So if you were able to get an interest free loan to put solar panels on your home and the ability to use that power when you needed to and were able to sell power back to the grid for a rebate at fair market pricing, would you take advantage of it? I welcome your comments.

Why is Telecom Making 1500 staff Redundant?


telephoneTelecom is once again making a large number of staff redundant. According to Labour ICT spokesperson Clare Curran up to 1,500 people will lose their jobs. This is the result of a planned restructure, although Telecom is not prepared to confirm the numbers. My question is how did Telecom get to a position where they were so overstaffed? You don’t suddenly find you have 1,500 people more than you need on the payroll, do you? 

I started my career with Telecom as a Technical Service Officer back in the day when they had 26,000 staff and was part of NZ Post, which all changed back in the late 1980’s. I joined them because at school they taught us that the communications age was on us and I had a fascination for the future from the age of 7 or 8, reading the Science Fiction greats.

I went to Post Office Technical Training School on College Hill in Auckland and enjoyed a phenomenal education, covering all elements of technology from engineering and how transistors work, through to how exchanges work, management and people skills and everything in between. My training included working in the different types of telephone exchanges, working with fault-men, linesmen, cable jointers, engineers, radio and much more. I loved my job. I loved learning and was one of only two people over the years to score 100% in most of my exams.

I recognized early on though, that the ‘system’ that provided people with 40 year gold watch careers was fatally flawed and whilst the education was world class, HR was pretty much non existent. Promotion was based on a system called ‘Reporting’ where each year we were asked to rate, rank and comment our colleagues, who spent the month before, almost like politicians going to all the colleagues, saying “I’ll give you a good report if you do the same for me.”

PeterI saw totally incompetent people rise to the top of the flock, whilst others continued to work their 24 hour shifts who really should have been making the move into management, because they had the people skills, experience and the ability to take on senior decision making roles. That was my second experience of the Peter Principle, the problem was that it wasn’t one off, it was institutionalized. Telecom was an old school Government Department and whilst many of us worked very hard, those who didn’t want to, could graze on the effort of those who did. If the organisation was better managed and only staffed by people who wanted to work, we could have easily cut 5,000 from the staff without significant reduction in productivity.

I left Telecom at the time, because I wanted to grow into a management career, but I also wanted to be working in the industry with a company that was forward thinking and fortunately I found  7 year career opportunity at Tait Electronics, who I subsequently left to move to a more senior level in another ICT company.

After I left, Telecom made many of my colleagues redundant. 6 months later they found out they couldn’t function without their skills and brought many of them back as contractors (some of whom stayed for more than 10 years) on a significantly increased pay scale. They did the same jobs, but as self employed people, and it cost Telecom much more.

There seems to be, in my opinion, a major problem that creeps into corporates. The bigger they get, the more politics comes into play, just as it did back in the day. They become inefficient, decisions are often made in the interests of senior people, rather than in the interest of the company. They add on staff to grow empires and create division after division of people to fill roles that aren’t necessarily needed, often at the cost of other areas that are not well served.

Telecom spokesperson Andrew Pirie told Stuff that “while job reductions would occur across the board at Telecom, many of the cuts would be to middle management functions in administrative areas such as finance and human resources.” That begs the question of why there are so many people in those roles in the first place. I can understand that there could be a couple of dozen people in a company of that size that from time to time need to change roles, departments or as focus changes, may find their positions redundant. I have to ask though, how does a corporate get to a position where they have 1500 people more than they need?

Who is responsible to the shareholders and the staff for allowing this to happen? Are the shareholders asking questions as to why their share value is going down, if those staff were redundant, why were they employed? What has changed? The classic result then would be that someone will have to fall on the sword, but I think perhaps the discussion should start with Minister Steven Joyce asking some serious questions. Problem is, he’s still asking questions about Novopay. Don’t get me started on our education system. I’ll leave that for another day’s soap box about how we are paying lip service to the importance of the future of our children, tomorrow’s leaders and the teachers who we have been let down so badly, but continue to serve for the sake of the children.

So the good news is that Rod Drury of Xero and Ian McCrae of Orion Health are looking for quality staff and are struggling to find them here. The bad news is that Telecom is saying that most of the people being made redundant aren’t the ICT people that Rod and Ian want.

Census 2013 So What Did You Think?


CensusOur household did it online and I have to say it was a smooth and easy process. The questions we didn’t have to answer were grayed out and we were all done and dusted in no time. Hopefully this means that finally we can hold referendums and vote online in future.

However, to me it was a major missed opportunity to learn more about who Kiwis are, what they do and where. This seemed to be to be simply a modern version of the feudal system where nobility tried to establish how much tax they could claim from their citizens. I love the Census system, always used to use copies of the books the Statistics Department used to put out and have been a keen user of the tables and tool builders on the website over more recent years. This Big Data has a huge impact on where to do business, where to build shops and factories, schools etc and the potential to not require costly double ups of data collection as will remain necessary for many Government organisations.

Here are a few thoughts from me of things that I would have liked to know and would have been easy to include and a few comments on what was included:

Ethnicity. For a country that is so multi-ethnic there were only 8 ethnicities offered and one of them was New Zealand European. That effectively makes it a political question and one that does not allow qualitative or quantitative research. As anyone who has studied statistics knows, most European Caucasians will  select the first option, leaving us with skewed data. How about culture. I know people who will register as Chinese because they look like their ancestors, but were born and raised in New Zealand and in most things they do other than appearance are indistinguishable from any other NZ born person. On the other hand there are people who totally live the culture of their family and do not integrate much with our everyday society.

The question on what languages you can have a conversation in, was easy for people who really don’t speak English, to say they do. This to me is important because we know there are now large numbers of people who will struggle to answer a question like “where is the nearest dairy?” in English.

What is your religion? This to me is very old school. You either belong to a sect or you have no religion. What if you are agnostic, spiritual but don’t belong to a particular church? This would effectively assume that if you have no religion, you do not believe in a higher spirit, God if you will.

I would have liked to know what people’s jobs are. As a futurist, I’m aware that many of today’s roles or job titles didn’t exist 20 years ago and it would be very interesting to be able to identify shifts in trends in employment. Yes, this information is available to IRD, but I want to know these answers and you could argue the same about the table which asks about personal annual income.

The employment questions also didn’t support all options. For example, I am a founder in a couple of start-ups. I am not an employee and I do not draw any money from the companies. I work very long hours in them. But I couldn’t answer the how many hours do you work in your job, because I’m not employed by the companies. These are not family businesses or family farms, although we do have a project creating virtual pets. Because I don’t have a ‘job’ all the options below these questions were grayed out. I was left with the questions of did I apply for a job and if so, how. BTW I also do not get any sort of benefit from the Government.

The only questions on health focused on disabilities that stop you from earning money or require a benefit. Wouldn’t it have been interesting to get more information on conditions such as asthma, diabetes, ADHD, Autism, Cancer etc. where people continue to work or study. Not so much from a single point in time but from a trend perspective. Tie this into geospatial mesh blocks and area units and some very interesting information might have emerged. What about depression and mental health? If we were able to see statistics based on location, what discoveries might that lead to? Perhaps ones that Government doesn’t want to reveal?

They asked how many cars were available to the household, not how old they were, how often they were used, how big the engines were, whether they were NZ new? Yes, again I know this information is collected by other Government agencies, but it is not made available to the public and business in the same way.

Question 32 would have appealed to teachers. In the last 7 days did you work for pay, profit or income for an hour or more. Novopay anyone? How many people worked but haven’t been paid? Many have waited much more than a week, I’ve heard of people who still have pay overdue for months! (No I am not a teacher).

What else would I like to know?

  • Do you have a land-line (that has dial tone)? Because in the event of power outages like earthquakes, they often still work.
  • Do you have a broadband connection? VOIP?
  • How many computers do you have at home that can access the internet?
  • How many mobiles do you have in the household that are connected? How many of those are Smartphones?
  • How many hours a week do you spend: Playing Sport or other outdoor activities? In club or organised activities? Watching TV? Playing computer games? On social media?
  • Do you BYOD to work and use it for work purposes?
  • How often do you buy fast food or eat out?
  • What about savings? What do people do with their money? Are they part of a super scheme like Kiwi Saver? Do they buy stocks (Mighty River Power would like to know)? What was the last big purchase in the last 12 months?
  • How about leisure, do they go away for a holiday? In NZ or overseas? Can they afford one at all? How long for?

There are many more questions that could have been asked like, how easy was it to complete this online? Would you be happy to vote in the next elections online?

So in summing up, its great to finally have a Census again and I’m looking forward to finding out what has changed in New Zealand, particularly as a result of the Canterbury earthquakes, but also information like how many NZ born people have left the country permanently, what is the make up of this country today compared to the last Census.

Congratulations on what appeared to be a smooth online operation, but what a missed opportunity to get some more learning. I think there has been so much focus on finally getting the job done, that there was insufficient focus on getting some highly important and valuable new data. The world has changed so much in 5 years. It appears like Novopay, that not much else has when it comes to taking advantage of 21st Century technology.

What do you think?

Is Water Care Services an Oxymoron?


Our water bill has shot up in recent times, we had a leak repaired in November and it settled down to its new high, but January went nuts to the level of a 6 person household. Ours is 3. We couldn’t understand why, but it hurt, especially on top of the new increases in water fees on the North Shore in Auckland. Last week we finally discovered a new leak right by the water mains and on 8 February we called Water Care Services. 

Ware Leak

Ware Leak

The call center staff were very friendly and said it would probably take 3 working days for someone to come and check it out. While we were waiting for this visit a lot of water went down the drain. A neighbor had a similar problem and Water Care sent them a contractor to check out the problem.

On The 13th I rang again and asked what was happening. They put me on hold, came back and said I was in a priority queue. I was pleased that something was happening. I asked if the contractor could ring when they were coming and I was put on hold again and she said that was fine, they would ring when they were on the way. I told her I was working from home on the 14th, so that would be great. I had a plumber booked for the 14th in case the problem was on our side.

No one came to our house on the 14th, but a Water Care contractor went to a similar problem about 4 doors down the road. My next door neighbor asked them if they could have a look at my problem while they were there. He said he would look into it. He didn’t. I postponed the plumber.

I rang the Water Care call center again on the 14th  and they explained that the contractor couldn’t look at our place because he didn’t have access to the works order for it. She said someone would be there before 11 on the 15th and they would call before coming as requested.

I worked from home again on the 15th, wanting to be there when the contractor came. At around 11:30 I went to the letter box, the area around the meter box was very muddy and water was coming out of the mains box in much greater volume than before. In the letter box was a note from a company called Lend Lease saying “SUSPECT YOU HAVE A PRIVATE LEAK”

I contacted the plumber who is unavailable for another 3 days and now we walk backwards and forwards to the water main, turning it on and off as required. The plumber said to us that there appear to be many instances in the area of higher pressure in the pipes (due to increasing water supply capacity works for the new Long Bay subdivisions and other growth in the area) causing leaks.

So a couple of questions for you and Water Care. How is it that you can send 3 contractors to the same street in the same street in different instances and you don’t have the technology in the 21st century to identify that there are other jobs that could be done at the same time? Sending a van out from wherever and back 3 times must be quite expensive (a bit like my water bill). If that happens 3 times in one week, just in my street, how much extra does it cost. Calls like mine to the call center which had local sounding people (which must be pretty big, because I never spoke to the same person twice), Maybe half an hour of time. Calls from them to contractors, another 15 minutes. Processing multiple works orders, maybe 20 minutes. 3 trips from vans to my street, with driving time, probably an hour each. That’s a lot of ratepayers money. It’s also a lot of wasted water, are the dams overflowing after this dry summer, that we can afford to waste it?

Does Water Care Services have sustainability KPI’s?

I’m starting to understand why Water Care charges so much. I know they have a geospatial database, one would assume they have a good CRM. Hopefully they will give me a rebate on the excess water for January and February, which I can apply to the plumber’s bill. I’m looking forward to having him fix the problem in a couple of days time.

I am wondering if other people have had similar experiences? Please feel free to leave a comment. By the way I am not a whingeing stirrer, I give credit where it is due to, for example my recent blog about AA Insurance, who provided me with fantastic service after someone dinged my car in a car park and took off. The thing is, I am a ratepayer, I am paying massive amounts of money for water and waste-water and I suspect that with better management or systems, I could be paying a whole lot less.

 

Consumption 2.0 and Mobile Society


I’ve just read an article by Hugo Garcia of Futures Lab in Portugal in the latest issue of The Futurist. He was outlining how younger people today are more mobile, more focussed on consuming goods, services and experiences, rather than being attached to things and places. One area that he was strong on was the fact that people are now so mobile and keen to explore the world and their environments.

Location becomes far more important because you are continuing moving around as opposed to tied to a fixed location in the world. He said that one example is the trend towards not owning a home, perhaps ever. I always hear talk about how hard it is to get into property, I don’t think it has ever been easy. When we bought our first home (to give ourselves and our children some long term security) we bought in a cheap neighbourhood and at one stage were paying in excess on 20% interest. For a couple of years in the beginning, we went without pretty much anything, just to pay the interest. Today many don’t want to restrict their lifestyle, making it a choice, their choice is to live for today.

The ‘office’ is for many people today, especially knowledge workers, not somewhere we need to be a lot of the time and the cost of maintaining an office, commuting, car parking (you could almost rent a room for the cost of my Auckland City car park). We go to the office when we need to, for meetings, teamwork etc, but otherwise I can be much more productive from my home office.

White BikesHugo talks about shared mobility. This is not a new concept, but certainly one that is coming back with a vengeance. Back in the 1960’s the Provos introduced white bikes that anyone could use. The idea was that you grabbed a bike, rode it to where you wanted to go and left it there for the next person to use. Their concept, same as today was to reduce pollution and traffic congestion and promote community engagement. They were certainly engaged as very quickly the bikes were stolen and repainted, but the idea was very good.

Today carpooling continues to grow, Zipcars, recently purchased by Avis, which is currently being debated as to whether it was an anticompetitive manoeuvre, is an example of car sharing, which in principle makes a lot of sense. People share ownership in boats, holiday homes and other items and many people are travelling around the world using the services of portals like Airbnb. There are loads of companies sprouting up like Whipcar, which lets you rent out your own vehicle when you don’t need it.

Globalisation is also an area that is changing rapidly. I remember reading history books about the great depression and how people moved from town to town looking for work. Mobility today is something far more international and international borders are being crossed continually by people in search of work, whether it is because they can’t find it at home, want a better life, or simply enjoy the itinerant lifestyle. Over a million Kiwis are working and living overseas, while British and other nationalities are moving to New Zealand to work on projects such as the reconstruction of  Christchurch.

Hugo points out there are pro’s and cons. “Unfortunately, some areas may become abandoned because they lack competitive advantages. The war for talent between countries will increase, but regions that offer good living conditions may gain an advantage.

I note again that knowledge workers, one of the biggest industry segments today can often work from anywhere and travel when required. I know many journalists and developers that live in small towns for the lifestyle, but can still perform on a global stage.

This mobile society opens up huge scope for innovation and disruption, particularly with location based services, applications for mobile use, which can support the new mobile lifestyle. Kiwi developers can and are developing applications used globally, despite those that say you can’t be successful unless you are in Silicon Valley, things are changing. The money may be there, but they don’t have a monopoly of good ideas.

If anyone knows about a mobile lifestyle its Kiwis, anywhere is a long way from New Zealand. We know how to travel, we absorb and learn and we love new technology. Where we need help is harnessing our smarts, to help our innovators and entrepreneurs to learn how to scale and think big. That’s a tough ask and I don’t think our Government is doing anywhere near enough to ensure that smart people are able to grow from small concepts to large global enterprises.

I was just asking myself how I suddenly got on my soap box, but then I’m not sure I ever get off it:)

Will Bitcoin Become the new Cash?


I’ve written a number of times about mCommerce and digital wallets. Now we have loads of companies offering services for electronic payment. These include the Apple Passbook, and many apps using NFC or other means to exchange money. The key thing that joins the hundreds of apps available is that they are legitimately tied to credit cards and banks. As such they provide audit trails and of course tie the world economy together as much as that is possible.

In the future I have postulated that actual paper money will decline and potentially phase out. I could see that happening in New Zealand faster than many other countries. We only have a small number of banks and clearing houses and as such were able to be the first country to mass adopt EFTPOS in the retail environment. Many people no longer carry cash.

However there is of course the grey market and one of the challenges there, is that people who do not want their money transactions audited. There is a global economy like this. People who are paid under the table for their work, people who deal in illegal activities such as drug sales, stolen goods and others. There are also people who just want to opt out of the system or at least flip it the bird. Cash of course can work around the system easily, there is money laundering and people will accept cash for most things as I experienced a few years ago when I watched a guy buying a used Ferrari with folding money he pulled out of his denim jacket pocket.

Much of this money circulates around the system but not through it and this is a challenge if hard cash currency ceased to exist. Or is it.

Yesterday I was on my way to a Microsoft Cloud presentation (which I will blog about on one of my blogs) either SoLoMo Consulting, or Imersia). I was a little early, so I sat in my car and read the latest awesome TNW Magazine on my iPad. Its a great magazine which I recommend you read if this blog is of interest to you, because it is the Money issue. There I learned about Bitcoin.

Bitcoin is “Bitcoin is an experimental new digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority: managing transactions and issuing money are carried out collectively by the network. Bitcoin is also the name of the open source software which enables the use of this currency.”

Effectively here is no bank, no fees, no audit trail. There are all sorts of businesses, even retailers, who will accept payment in Bitcoins just as businesses accept payment in other forms of money, such as Bartercard Dollars. The difference again of course is that Bartercard still connects to the banks, has an audit trail and the Governments continue to collect their taxes.

Ultimately my question is, will Governments allow this sort of  “experimental currency” to continue? Can they stop it? It appears to already have a massive following. You can buy a coffee with it, you can play poker with it. There are sites where you can buy and sell Bitcoins such as Mt. Gox and there ar others too, although I noted that one of those has dissapeared and I noted a story there that Barclays had stopped allowing people to trade with them.

So what happens if the authorities stop Bitcoin? (assuming Google or someone else don’t buy them, but Bitcoin does seem to have an anti-establishment feel to it, but it could be all about the money).  Well there is also Dwolla,  LibertyReserve, and a host of other systems. I suspect that as cheap smartphones gain mass adoption in the blue collar world, there will be more interest and demand for ways to continue to do ‘cash deals’ without cash.

Futurists are talking about the Local-Global Duality with shifting borders and changing geopolitical landscapes. The one thing keeping us together as countries, or pulling us apart is money. Financial institutions and Governments  are struggling to maintain a status quo that will keep countries running. As countries grow deeper in debt after the GFC people rush to take their money out of the banks for fear of losing it altogether, which in turn intensifies the crisis.

Farmville Tractor

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I’m not saying I agree with currencies like Bitcoin. I still want my roads and infrastructure, order and safety in my community. I believe that one way or another money from illegal activity still works its way back in, like the guy I watched buying a car for over $30,000 in folding. I do suspect however that we will see a proliferation in ‘currencies’ like this in the future. I also suspect that the criminal elements in our societies could be the ones with the most to gain from them, but also that there will be many scams which will be developed to trick people in giving up real money for virtual currency which they will never be able to repatriate. Silly really, when they can legally create computer games and sell virtual stuff and pay tax on legally earned activity with much less risk.