The Near Future in Mobile and Location

When I got my first in a series of Palm’s (I still have most of them including the Handspring Flossmaster) people looked at my as if I was a geek. OK maybe I was, but I was only doing what many or most of you are doing now, mobile computing. OK, the dental floss dispenser was a bit of a gimmick, but a very cool one and it was actually done as a promotion, not as a serious concept.

Handspring Flossmaster

So back in the 90′s I was reading eBooks from Fictionwise and other sites which are amazingly still there even though Palm and Handspring are long gone. Fictionwise was already there before Amazon was launched and several years before the Kindle existed. I used to use my PDA during dead moments in-between appointments, while exercising etc. I had apps for Africa, work outs, diaries, games, even mobile email at 9.6kbps on my Ericsson mobile with its expensive Bluetooth dongle.

I helped introduce the first Symbol Palms in New Zealand with bar code readers and whilst they are now running a different OS they are fundamentally being used for the things I suggested such as warehouse inventory management, field sales automation, ticket management at events and so on.

Then my devices got audio and became phones, so I could listen to music, podcasts and started publishing my own podcasts and getting my songs on other people’s shows through to the last few years when my Smartphones got GPS. During that time we went from PDA’s that could also function as phones through to now where our mobiles are powerful computers that are as ubiquitous as I said they would become.

So here are a few thoughts on what is coming next, things that you dear reader are likely to take for granted within the next few years.

As a consequence of your use of check in functionality on your mobile using Facebook, Foursquare, Google+ or whatever software you chose, details about your interests, your friends and family and your activities will be profiled along with most of the people you know. You will get notifications based on where you are and your interests, on your mobile offering you relevant deals as well as a load of spam that will have you wondering whether you should disconnect alltogether, but you won’t.

Your mobile will be your multi-modal navigation device, not just while driving or keeping the cabbie honest, but walking, running, hiking, boating, shopping, providing navigation on the road and even inside buildings such as shopping malls, hospitals and university campuses. You will be able to see where your friends and family are and you will be offered deals based on mutual interests and be able to buy them and pay for them on your mobile.

You won’t have to carry loyalty cards any more. They will be maintained on your mobile which will give you the option of looking for deals, comparing prices and getting directions to the nearest retailer with whom you are a loyalty member. You will also have the option of having your mobile notify you of deals based on its prediction of your needs. For example on a Saturday morning when it sees you are buying garden tools at the DIY, it may offer you a promotion at the nearby garden centre which is uniquely created for you.

You will have a personalized newspaper on your mobile which carries both stories and advertising offers of specific interest to you. You will be surprised at first at how relevant they are. You won’t have to search for stories any more and you won’t be pushed information you are not interested in. You will only buy newspapers on rare occassions and within a few years printed newspapers won’t be available any more.

Music is an interesting one and the way you enjoy it will change dramatically in the near future. Within 24 months music CD’s will be out of production and you will either subscribe to a music service with a monthly subscription or possibly it will be offered as part of a mobile offer from your telecommunications provider. The question at the moment is whether the major music provider will be Apple, Nokia,  Vodafone or a service such as Spotify.

For those who want to really get into their artists, you will be able to download apps. Several years ago I wrote a piece for NetGuide, which they declined to publish. I said that CD’s would die because the record companies were not providing any added value. I suggested that they add music videos, interviews, digital photos, background stories, lyrics etc to the media. It wouldn’t have cost them anything because it was all material that they already had access to. Anyway, long story short, guess what is already available to an iPhone, Android or other device near you? All of those things. Bands and their management are using off the shelf tools to put all of these things onto mobile devices including gig calendars, social media and the ability to purchase event tickets and merchandise from within the applications. They will also allow you to communicate with other fans from within the applications and future functionality will include the ability to remix tracks and record your own cover versions to share with other fans. Competitions and special offers will also be included.

In future when you go to a concert you will be able to hold your mobile up towards the stage using facial recognition to identify the performers using augmented reality and take tagged photos showing the names of the artists and of course the location the photos or videos were taken. Of course the facial recognition will also identify your friends and associates for posting and sharing on your favorite social media pages.

I could write a book on this stuff, but I thought it was time I shared a few things with you before they start happening and you take them for granted. I like being able to say “I told you so”.

In finishing I note that Apple have just filed a patent on mobile facial recognition. They also mentioned biometrics, funny, I still have a HP iPaq with a finger scanner. Want to know more about facial recognition? Here’s a quick 2 minute primer.

Moores Law in Location Based Applications

Have you ever noticed that whatever application people come up with, you are always hungry for the next big thing? Well I am, especially when it comes to mobility and location based applications. I and several of my friends and associates tend to look 5 years into the future on a regular basis and are always looking to innovate with features or technology that either doesn’t exist yet, is still too expensive, or the target market still doesn’t get it. That’s probably where we will always live.

The good thing about that is that as a consequence of our focus, the building blocks for the things we dream about become much more apparent to us when they arrive and we want to share those things with you.

There were 2 standouts for me this week. The first is that Foursquare is launching push at their hackathon which starts tomorrow. You can read more about this on my GeoSmart blog. Basically it means that developers from tomorrow will be able to use an API that sends a push notification for users of their apps. For example a bar could send a notification to you telling you that there are friends of yours in the bar and offer you a deal to come and join them.

The other is in combining Location Based Technology with Game Mechanics, or Gamification. There is a very good 101 presentation about this on Slideshare by Aaron Strout of WCG.

I’ve met with a number of people developing location based games and the game element is a factor that I believe will really pull people in. I have just downloaded TapCity onto my iPhone and iPad after watching a podcast video interview on Untether.tv (one of my favourite location based podcasts) with Dave Bisceglia co founder and CEO of The Tap Lab. I strongly recommend that you watch this video or listen to the audio version if you are interested in location based games or proximity based marketing. These guys have big plans and dreams and I believe they are going to be a huge success. I have to also mention how impressed I was with their response to a couple of questions I had from them.

If you join the game, you will find I have 2 personae, Luigi C and Claes C, mainly because I first set it up on my iPad and then found that it was more suited to my iPhone. Anyway try out the app which you can download in the iTunes Appstore for free, friend me and tell me what you think. I was pretty impressed that for a relative start up, they already have players all over the world, in fact someone already owns my office! I won’t settle for that, but was impressed that it was even there.

The concepts are all very well, but if you want to look at proximity based marketing, location based games etc as part of your marketing plan, the best way is to experience what someone else is doing. As you will learn in the interview or on their website, this is just the beginning for them. They have some very exciting plans. What I don’t know as yet is whether they plan to release API’s or whether all their development is going to be inhouse.

Either way we can learn a lot from these people. I hope they are hugely successful in monetizing their games both for their innovatio and foresight and to show everyone else that this can work. If they can sell virtual items in the same way as Zynga has on Farmville, then imagine what Burgerfuel, Borders, your regional tourism operator, world cup events like rugby organisors could do with real items!

Presenting to IT Professionals with Sead IT People

A couple of weeks ago I had the privilege of presenting to a group of ICT professionals at the Mercure Hotel hosted by Sead I.T. People. The presentation in the series of Sead Latest in IT Seminar was on Mobile Marketing.

How did we get here

Sead Presentation

Covering topics including the latest Gartner Hype Cycle predictions, Location and Proximity Based Marketing, Check-In Marketing, Mobile Computing, QR Codes, Business Intelligence using maps and the hot topic of the use of personal devices in a corporate market, there was something in it for everyone. Case studies illustrated not only practical use of technology, but professional processes to ensure that projects were well designed for success.

The presentation outlined the ongoing chasm between people in the ICT profession and their colleagues when it came to understanding and use of new technologies, particularly mobile and location based. I encouraged the audience ranging from consultants to CIO’s to consider how they can educate and encourage their companies to understand the new technologies and how they fit into their business frameworks. There are great opportunities for IT people to be welcomed back into the boardroom by working closely with the management team to show them how to implement and benefit from new technologies, safely and securely.

Luigi and the Sead Team at the Mercure

Telco’s want in on Daily Deals

It was interesting to learn that O2 is now going to get into daily deals. They will be the first British Telco to enter this market and according to the Financial Times, they are going to invest £6 Million into their daily deals service with the expected participation of 3,500 high street brands. Shaun Gregory, O2’s managing director of media, said that their opt in process was going to be less clunky than that on Facebook and Foursquare etc. and would not require check ins. This effectively means it is not a location based service at all, but yet another spin on the Daily Deals I wrote about in my blog yesterday.

Ironically I and many other people in the telecommunications industries over the years have been trying to convince local telco’s to support payment for products via mobile, including vending machines, pointing out the enormous value in clipping the ticket on transactions. Probably about 12-15 years ago I was able to buy Coke from a vending machine at the local Ericsson office, but it was only ever a Beta service.

Amazon is also getting in on the act in the USA with Amazon Local which is yet another spin and hardly local given that it works in exactly the same way as the regional deals every other Daily Deal site offers, noting to do with check ins. It will at least support local businesses in the same way as other sites does with vouchers etc to be redeemed in local eateries and stores with the same debatable results. Amazon certainly knows the value of clipping the ticket as I mentioned in an older blog with a link to a Harvard Business Review Clip of John Donahoe explaining what his business model is, and I can tell you it is now selling books.

Eventually if you keep following this blog, I will get to the point of the value of using Location Based Marketing instead of Daily Deals. This is starting to seem a whole lot like the boring unimaginative reality TV shows that all the networks are rolling out. It’s much cheaper to imitate than to innovate and of course you are encouraging them by watching, because if you didn’t watch, then they wouldn’t be able to get advertisers to promote their daily deals businesses!

Group Deals and Offer Bombardment

The number of one day deal sites in New Zealand grows every day. There are dozens of them and many of them now have a separate site for each region with deals for experiences, dining, accommodation, attractions and activities. This is great for bargain seekers, but doesn’t necessarily do a lot for bricks and mortar businesses.

There are scenarios where they have value, for example if a business has very large volumes of aged stock that they need to quit. It can also be useful for new businesses to make customers aware they exist. They also come at a price. The more powerful the site, the more they charge with fees being anything up to 40% of the sale of each item.

If you want to attract new customers to your bricks and mortar store, then obviously you want a coupon or something that needs to be taken to the store for redemption. Even if you are quitting aged stock, there may be advantages in getting people into your store in the hope that they will purchase other products while they are there. There are also benefits to both the customer and the retailer in not having the time, packaging  and distribution costs in delivering product to the buyer. More on this in future blogs, looking at check in applications as opposed to group deals.

A study by Rice University found that  32% of businesses surveyed who used Groupon for promotions said they were unprofitable and 40% said they would not do it again. A major issue cited in the research was cannibalising existing business. Mashable quoted a statistic that less than 20% of people who purchased deals where they had to go to a store to redeem them, returned subsequently to buy full priced product.

So the question which I will come to in upcoming blogs is how to get people into your store at quiet times and more often. I believe the answer is in locations based services such as check ins and proximity based marketing. I welcome your experience or opinion on this.

Blame the Technology and Australia

Continuing my search into what happened at Whitcoulls and Borders and  generally what’s going on with New Zealand retailers I am finding no surprises, which is a real worry. Two words come up a lot. Technology and Australia. I know a little of both. I live for technology and have trained many retailers over the years (including some who were already millionaires) and while the technology has changed, the principles haven’t. More on this to come.

Australia and New Zealand

As to Australia. In the 90′s many Australasian retailers who had New Zealand operated subsidiary chains based in New Zealand, decided to do away with local country management, local buyers etc.  and to save lots of money by treating their NZ shops as Australian branches. I guess they considered New Zealand as a slightly bigger Tasmania. Not huge, but worth having, especially if they didn’t put much effort into senior staffing  resources.

When performance decreased they blamed the economy, they said that NZ was just an over inflated state and it was always going to be that way, which was how they justified reducing local resources in the first place. The fact is while we may have a lot in common, we are not the same. We are made up of different cultures and history and have subtle differences in our lifestyles. Subtle enough that you can’t treat NZ stores the same as Australian stores and expect the same result.

Similar scenarios happened in many cases with the decades of American Globalisation. It’s funny really that America wanted to change Japan and the rest of Asia Pacific while Japan wanted to change the west. I well remember having discussions with senior management of Casio in Tokyo and Hamura about improving the software on their cash registers. One of the issues was that they hadn’t allowed for people pressing buttons in the wrong sequence. Have you ever been in a retail store when the ECR (Cash Register) is bleeping loud noises no matter what buttons are pushed and the stress it caused the cashier? Their initial response was “They must use the ECR in the right way or you should find better customers”. We ended up beta testing their software in NZ and Australia first and then getting Japan to tweak their software. That was one of the initiatives that helped us get 70% market share in the ECR market in NZ and helped Casio increase theirs around the world. But then of course the company I worked for was sold and I along with my boss and several other great people were made redundant despite the fact that we were doing really well, but because they thought we were earning too much. I’d love to know what their market share is in NZ now. I know it isn’t 70%. Anyway I’m going off on a tangent.

The big thing I noticed in the NZ stores was inventory management. They were carrying a lot of books that I wouldn’t think anyone would buy other than as a joke. I went back to Borders a week ago to jot some of the names down, but it looks like they went in the $1, $2, $5 sale and were gone. They had many dated books especially computing which must have been in store for several years, technical books on how to use software that almost no one has used in the last 5 years.

From what I’ve been told, someone automated the purchasing software to replace books that had sold, so for example if a particular book sold really well, say 5,000 copies, the system would replace with another 5,000 copies. Well there goes the profit from the first lot.

One of the things that makes New Zealand different is our ethnic communities. All over New Zealand, but particularly in Auckland we have clusters of ethnic communities; Chinese, Korean, South African, Indian, Pacific Islanders and more. Brands who fail to take that into consideration waste massive levels of stock by having the wrong product in the wrong locations, which then becomes shop soiled and potentially unsaleable.

Inventory needs to be managed locally by category managers who understand and are at the leading edge of their category and who understand their local market. They need to know weekly what is going on and understand who their customers are and what they are buying. Some books date more quickly than others and need to be moved on quickly, others will hold their value longer, but will still have a rapid half life.

In my previous blog about Whitcoulls and Borders I wrote about how they could follow the example of Amazon and know what their individual repeat customers were buying and therefore their interests and could recommend books to them. Amazon continue to prove that people in NZ will buy based on recommendations along the lines of “You bought these 3 books, other people who bought the same books also enjoyed the following titles”. Not only do we often buy them, but we also pay massive freight costs to get them here, at the same time as local book retailers are discounting stock that people aren’t buying. How smart is that?

One good way of dealing with this is using Business Analytics or Business Intelligence tools such as BIonaMAP, soon to be launched by New Zealand geospatial solution provider, GeoSmart. Fortunately for retail chains, this product will support both Australia and New Zealand, so users can have visibility over both countries.

BIonaMAP

Whitcoulls and Borders

I was thrilled to learn that the remaining Whitcoulls and Borders have been sold to Anne and David Norman. Now they have some hope. They will now live in the Pascoes Group and of course this group are known as having revived the ailing Farmers chain and given them new life.

Once the essential housekeeping details are sorted, such as property leases and staff contracts, there is every reason to hope that they will breathe new life into Borders and Whitcoulls.

That can not mean BAU or Business As Usual, because even though they did OK and the biggest problems were in Australia with REDGroup. Nevertheless these stores were not run optimally and they were not run with the times.

I heard people, partly lead by local publishers, saying that if the NZ stores were run from Australia, they would probably signal the demise of the NZ author. Certainly I agree that we would have seen less Kiwi authors in store, but I think ultimately either the publishers would have to become less greedy and insular or the local authors would start to embrace the new eBook media and of course in doing so they can either self publish or join Amazon or other local eBook publishers. Neither are ideal for people who love books.

As I’ve said in many previous blogs about Whitcoulls and Borders, a few of them can be found here, the first thing is to go back to basics. For these stores to be successful they need to operate smarter and provide what the modern shopper wants. There are many good examples overseas.

With the chain expanding, here a some ideas that I would look at.

• 

  Macy's

  Gift Registry. Chains like Macy’s in the USA have had phenomenal success with their national gift registry programs for decades. They have kiosks in store which are linked nationally. I was so excited the first time I went through one I almost bought a gift for a young man’s Bar Mitsva in Chicago. I was in New York at the time looking for a hat in one of the coldest winters I have ever experienced. It was so well laid out, there were thousands of special events from weddings to anniversaries and being national, you could see from New York, what a person in Madison Wisconsin had their hopes on. Given that the chain owns Farmers and a number of jewellery stores, this would be a great opportunity to combine the lot.

• I keep harping on about Jeff Jarvis’ book What Would Google Do? It’s funny in a way that in one of his first blogs about the book, he suggests that you could buy it from Borders. The thing was though that I couldn’t buy it from Borders at the time because they didn’t have it, so I bought it from Amazon.
• So I think that Borders and Whitcoulls need to start saying, what would Amazon do. So many companies are naive and believe their own hype that web retailers (only part of what they are) are no threat, or they consider them such a threat that when things go bad, they become a self fulfilling prophecy.

Hanging a few Kobo’s on the wall is not the answer, that has been a major botch up in my humble opinion. Even on the web, sell the sizzle on the home page! But some things they could do with their ‘loyalty’ programs is monitor what each customer buys and make recommendations based on the buyer habits. I have bought at least a dozen books on Amazon’s recommendations. Amazon is also much cheaper than buying locally, but that’s a different story because it costs a lot to get books to New Zealand, so unless you buy a stack of books, you pay back what you save on freight.

Amazon has many great features that can be just asdestination events

Mobile Marketing easily applied to a bricks and mortar chain, which has the benefit of being able to hold a book, tell you what store it is in and provide you with much quicker gratification.

I don’t want to write a book, but here a some things you may find in this blog in the coming days for Whitcoulls and Borders:

• Becoming a destination for events such as readings and signings
• Back to basics and way beyond in inventory management
• A major web presence with lots of ideas perhaps sparked by What Would Google Do (which should be a mandatory read for all Whitcoulls and Borders management at all levels)
• A new way for both stores to have lots of stock available, but not necessarily on the spot. A central warehouse with the option of home delivery could cut down inventory sizes without sacrificing range and depth.
• Embrace proximity based marketing on mobile devices. I would strongly recommend that management from Borders, Whitcoulls, Farmers and in fact all retail chains attend the Mobile Marketing Forum in Auckland this June. This Forum could be called The Retailer Strikes Back. They will learn many new ideas at this event.
• Understand their regional customer base. There is no point in carrying the same stock range in each store. It simply won’t work and you will have aged stock going on sale. Some of the category managers need to take a long hard look at the books they have been stocking and ask themselves what on earth possessed them to make some of the decisions they made? Or was it the publishers reps that conned them?
• They should look at products like GeoSmart’s impending Business Intelligence on a MAP. This could produce many aha moments when used to geographically view their business results in combination with consumer demographics.

I could go on but that’s plenty for now. I think with the right motivation and attitude, these two stores can be not only revived, but will rise to new heights. But only if they stop living in the past of this is the way we always did it. They need to embrace and perhaps even lead the future. It’s not hard, its just thinking outside the square and remembering that it is the customers and the books that make your business. Its about the words and the stories and people.

More on Location Based Applications and Privacy

In an article at LBS Zone, LeClairRyan attorney Kevin D. Pomfret says businesses should step forward to educate Congress and executive agencies such as the Federal Trade Commission (FTC) about the breadth and scope of location-based technologies, as well as the industry’s enormous potential.

This is something I have been saying for some time in past blogs. If we get Location Based Services applications right, they can enrich our lives in so many aspects. For example:

• B2C Marketing. I would welcome personal location based marketing, based on my location, time and interests. Tell me if there is a hot deal on a new guitar pedal or music software as I drive past a music store on a Saturday. My girls would love to be told there is a 2 for 1 coupon on the latest summer fashion as they walk past a shop and their colors and sizes are in stock.
• Health and safety. If one of my relatives is ill and needs medical help while on vacation, a blind or disabled person becomes disoriented, a diabetic travels and forgets their insulin, a car’s airbags deploy on a remote country road. These are all instances where consumers can be aided by LBS apps and help directed to them with ease.
• Entertainment. Rugby World Cup year starts in less than 24 hours in New Zealand. Wouldn’t it be great if people can sign up to services that know where in the country they are, what they are interested in and can guide them to other activities based on time of day, interest and location? It could be golf, a cultural performance, Happy Hour, a concert or music festival, you could opt in before hand with your interests so if you are a ballet fan, you don’t get guided to a Christian Death Metal Grunge Fest.
• The Road Trip. An application that provides car navigation, access to traffic information, entertainment, allows you to connect to your social networks, upload photos and blog, find ‘friends’ close to you and more.

We’ll see more of these in 2011, along with apps from Facebook, Google, Apple, Foursquare, Groupon, Twitter and hundreds of others. But what about the risks?

When you sign up for these applications, do you know who you are giving access to? Do you know whether you can opt out? Do you know of the service has the ability to delete your information if you decide to opt out. Often the services themselves don’t have that ability because Google and other services have cached it and even if they delete it, it still exists in other places.

It is a well know fact that criminal elements already use sites such as Facebook to identify people they want to commit crimes against. It might be that they want your car, your jewellery, your 65″ 3D TV, all the Christmas presents you displayed on your profile, or just to ransack your house. It may be nothing to do with you, as they say in the movies “Nothing Personal, this is business”.

You could follow this thread and think, this guy is anti LBS. Wrong, its how I make my living. I love it for what it can do for me and you. I just worry about how it can be used and believe it is incumbent on the developers to make the applications as safe as possible, to provide privacy controls and make sure people know how to use them. They might also want to consider liability insurance. I’ve heard of insurance claims by people who drove their cars into rivers because their nav told them to turn right. It won’t be long before there are claims from people saying that it is the fault of the social media location application, which indirectly told a car ring that their expensive sports car would be parked at the airport for 2 weeks.

The article that set me off on today’s blog was about educating politicians, something that needs to happen all over the world, because these applications go international very quickly. It is also necessary to educate the developers because they are focussed on what they want people to be able to do with their apps, not the inherent risks of uses they hadn’t considered. I often want my ‘friends’ to know where I am, but I don’t want people who are not my ‘friends’ to know where I am or where I am not.

This is not my first blog motivated by Pomfret. In September I wrote about Location Based Apps and Trust, prior to that Proximity Based Marketing and Trust, and a whole series of blogs around Who’s Looking at You on Facebook. In one of them I thought up a name at random, searched for someone with that name and found out a huge amount of information about the person. I found it to be very scary, what I could find out about that person. Add location to that mix now and it could become downright dangerous.

Of course the tables can be turned on crims as well as law enforcement agencies can use the same apps to find out what they are up to and where.

Barter, the New Old Economy

I’ve just got back from a break in Rarotonga, which was a wonderful place to visit for peace and rest. It was thought provoking even though thought was not high on my agenda.

I finished a piece of music I had been working on and called it Rarotonga, which you can find on Youtube and my About Songwriting blog. While there I attended a wonderful gospel church service where I had some great singing. This was followed by a bountiful morning tea put on by the open generosity of the locals.

Most of the church service was in Rarotongan Maori, however 2 words that I did understand were Climate Change. In a country where most of the land is very close to sea level this is a real challenge. You need to spend a little time on a South Pacific Island to understand what is at risk.

The one thing you must do when visiting a new country is visit with the people. 3 things stood out:

1. Everyone expressed their gratitude that we visited and explained that their country was entirely dependent on tourism.

2. Every person had at least 2 or 3 jobs and good pay was considered to be about US5 an hour. Other than Sunday’s, most people would be working 12+ hour days.

3. There was a sub economy operating below the cash economy. People trade goods or services. It might be people swapping fish for Taro or playing music in return for food and the ability to promote and sell merchandise such as CD’s.

As you do, when you deliberately disconnect from the grid, you catch up with reading and I got to reading up on Life Inc by Douglas Rushkoff. One of his arguments is that the world’s economies are driven by corporations, banks and other large entities who perhaps care more about themselves and keeping communities reliant on them than helping the people they serve gain any level of independence.

I was blown away by some of the examples of alternative trading systems he came up with, although I don’t know why. Barter as a concept is probably as old as mankind, but a new economy seems to   be reemerging in innovative ways. I’ve known doctors who accepted fish or other produce from patients who couldn’t afford to pay fees in New Zealand. I’ve known plenty of people who share their specialties, a plumber who does work on an electricians home and the electrician is owed a favor by a motor mechanic who then does a job for the plumber for free. The traditional economy still gets revenue from the parts that are used, which includes all the traders and of course tax in all its forms.

From a business point of view, I use Bartercard and they are a great organisation who I recommend. They have Bartercard Maps which uses GeoSmart Maps technology to help you find what you need based on location. However, fundamentally it is still a form of currency and our accounts department and Inland Revenue treat it no different than cash. In some cases, such as accommodation I also sometimes feel that the product you get is a little less quality than you would get if you were paying cash.

One good thing about Bartercard I like is that it is local, at least it encourages companies to use local suppliers. Despite our position, I feel many organisations in NZ from Government Departments through to consumers do not consider supporting their local economy as a major factor in making purchasing decisions.

I don’t want to go into any real detail about the examples in Rushkoff’s book, because that’s what the book is for and you might want to read it. There are some great deals on Amazon. I don’t think you’ll find it in your local bookstore.

Here’s a couple of cool examples.

• CSA or Community Shared Agriculture. The concept is that people not only commit to buying their produce from a particular local farm, but they even commit to doing a small amount of work on it to help support it. This gives some security to the local farmer, but also helps build local community spirit and has people involved and doing something they would not normally do in their daily lives.
• In Japan, the Sawayaka Welfare Foundation came up with a ‘complementary currency’ where young people could earn credits for taking care of elderly people. Those credits, called Fureai Kippu can then be applied to the care of their own elderly relatives who may live in a different part of the country. Because it is by the people and for the people, many say that the standard of support they get is far better than if it was provided by commercial caregivers.

The book also has lots of ideas about local loyalty programs that serve to build greater loyalty to local traders and creates stronger community feeling, which can and should apply to any town or village. The people who work, have restaurants or businesses near your home, are your neighbors. We are  often too quick to go and give profit to multinationals, when we could be supporting our local businesses and then complain when our potential customers don’t use our services.

To a degree this blog was motivated by my trip to Rarotonga and the music I wrote which you can listen to below. But it is also out of concern for our future. New Zealand, like Rarotonga runs the risk of becoming isolated. If a war were to strike overseas and our imports (including oil products, food, clothing and technology) how well prepared are we to continue living to the standard we are accustomed to? People in Rarotonga told us about the island running out of fuel for a few days and the chaos that ensued. How long would we continue our lifestyle without petrol and diesel?

Location Based Applications and Trust

I just read a blog by Kevin Pomfret, Executive Director of the Centre for Spatial Law and Policy, about the decision of Craigslist to pull it’s Adult Services section after finding out that people had been using it for prostitution and trafficking of women and girls. He suggested that people developing geolocation applications needed to also consider privacy of users in the same way.

I totally agree. Already there are many anecdotal stories of people using Facebook and other stories to target empty homes. One story in Mail Online called Facebook a shopping list for burglars. It went on to suggest that insurance companies might increase the risk profile of clients who have social networking accounts.

Now of course we have Facebook Places, which starts by checking the city your IP Address is based in and then invites you to let it know exactly where you are. There are bound to be loads of Facebook applications for mobile that will use the GPS in your phone to check exactly where you are. Great for stalkers who want to find you and for others who want to know where you aren’t and such as when you are not at home.

For more on this, check out my blog on Who’s Looking at you on Facebook?

Now don’t get me wrong, I am totally into location based services. I just want to make sure that people understand what they are getting into when they start using them. An application I really like is foursquare. It has rewards for people who use it such as points and badges. You can see where your ‘friends’ are, which is great if you want to catch up with them. I recommend if you do that, you make sure you actually know and trust your ‘friends’.

As foursquare starts to work towards monetizing, a good thing to do for application developers:) they are now selling advertising and encouraging locations to offer deals based on proximity. For example, if you become Mayor of a location you can get special deals. If you are Mayor of Auckland Airport for example, you can get free entry into the Koru Lounge. The cool thing about that is that the advertiser doesn’t have to know who you are and has no way of knowing who you are unless you tell them.

That’s one of the places I want to go with proximity based marketing. I would like to see Happy Hour applications and be offered deals based on product segments I’m interested in, at times when I am not only in proximity, but also when I am open to an offer. Offer me a 2 for 1 deal at a bar on a Friday evening, but not on a Monday morning. Give me the ability and an incentive to invite my friends, but I don’t want the advertiser to to have access to my friends details unless they want to provide them.

Opting in and informed consent is crucial for location based marketing. There is a Code of Practice for Direct Marketing in most countries. Proximity Based Marketing is even more important and for applications to become accepted, we need to be able to trust that our privacy and security is protected. This is particularly important for children and young adults who could easily be targeted by dangerous criminals.

Informed consent is a key issue here. Most people don’t read End User License Agreements. Do you know the rights you have bestowed on Microsoft when you open Microsoft Office? Did you read them, or did you just tick the box and start using it. In the Windows 7 EULA it says “b. Use of Information. Microsoft may use the computer information, accelerator information,
search suggestions information, error reports, and Malware reports to improve our software and services. We may also share it with others, such as hardware and software vendors.”

If you use any application, especially a location based application, you need to clearly understand what privacy it allows you and what your potential risks are. More on this in the future. In the meantime, the onus is on the application developers to protect the interests of the users if they want to encourage them to use their applications.

When The Hyperfactory started in mobile marketing, they got together with advertising agencies and other interested parties and formed a wireless marketing association. One of the first things the association did was to form a voluntary code of practice. I believe the same thing needs to happen for location based applications and quickly.