There’s something about the weather

Have you noticed anything about the weather lately? Do the topics of global warming or climate change ever pop up in conversation near you? Do you believe things are changing? Do you believe you can do anything about it? Do you care?

Inclement weather

So here we are in 2014. If you watch the news there have been extremes happening every year and 2013 was no exception. Want some details? Check out this collection of stories from The Guardian.

There have been lots of international meetings such as the recent one in Warsaw, but what is happening?

Does it matter? Maybe you figure it won’t be a problem in your lifetime, but do you have children? Grandchildren? What will become of them if the sea level rises?

My home is in a once in a 100 years flood zone, low risk hopefully, but still a risk. Many of our roads have sea water spraying over them during king tides now, what will happen if sea levels rise?

A lot of people scoff at global warming, especially when we are experiencing extremes at both ends of the scale, hot and cold. There is no denying that storms are becoming more aggressive and it seems like every day there is a flood or storm somewhere. Let’s just look at right now, today:

• UK Committee Cobra set up to discuss floods
• A foot of snow expected in the US North East
• Toronto issues extreme cold alert
• Cyclone Bejisa
• Cyclone Christine

Recent research suggests global temperatures could increase by 4 degrees by 2100. I won’t be around, but my grand children will be. If that happens and the sea levels rise, New Zealand will be interesting. We have already agreed that the people of Tuvalu can live here, but they are just one of the islands at risk.

But lets think about coastal mega-cities. We watch TV films depicting what life will be like, but we see them as Hollywood thrillers, not reality, yet we see news stories every day about erosion claiming coastal properties. What happens to cities that are on reclaimed land, or low lying cities. I’m not talking about my fatherland of the Netherlands, but how about Auckland, Sydney, Los Angeles, Manila or Mumbai?

Changes are happening, but some countries are still burning coal like there is no tomorrow (pun intended). We didn’t introduce emission testing in New Zealand, I was told because it was too expensive. We have a small population so can’t afford to do much, we are raising the height of some motorways which is good.

When I was in New Orleans last year, they were flat out raising the levees on the Mississippi, ironically at a time when the levels were so low that some of the river boats couldn’t make their usual trips. It’s mostly cleaned up now, but there is still plenty of evidence of the devastation caused by Sandy.

Of course it’s not just about super storms, or flood plans it’s about climate change. Weather patterns means changes to agriculture, movement of work forces, major disruptions to supply chains, problems with fresh water availability, I’m enjoying the longer summers, but I have cracks in fences and in the ground from last year that didn’t move back over winter.

This was just a bit of a ramble really, but climate change is something we need to think about now and we need to think about it starting in our own back yards. How are you going to be prepared, what will it mean for you? Are you ready for the next big storm? Are you ready for a tsunami? Do you know your evacuation route? Do you have an emergency plan? Do you think it will always happen to someone else or that it isn’t your responsibility?

Here’s a last thought from close to my home. In Australia this week, they are predicting potential temperatures of up to 50 degrees C. Last year Australia had the hottest weath, jobs, er in over 100 years. The thing is we are hearing these sorts of stories every year now. That means fires, that means lost lives, it means lost homes, jobs, businesses.

This is what happened in Australia at 30 degrees, imagine what 50 degrees could mean?

 

 

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On SNAKK Media, Derek Handley and Kiwi Entrepreneur Success

The Snakk Media AGM, appropriately held in the Sir Paul Reeves Building of AUT in Auckland last night, appeared to be a classic event, with typical investors, asking typical questions. However, in my opinion, it wasn’t, it was a meeting in a room made up of some of the finest minds in marketing and leading edge mobile technology.

SNAKK AGM

I was very proud to see entrepreneur, Derek Handley, on the stage surrounded by other Kiwi business leaders and visionaries including Tim Alpe, Max Flanigan and GM, Andrew Jacobs who I met for the first time last night.

I’m sure the media will cover the story, but here’s my take; on a tangent. I have always believed in Derek, his family and team from the day I met them, many years ago as they were preparing to found The Hyperfactory. They were the classic start up and I admired their passion and enjoyed their company, because they were driven and they were passionate about the same things I was, and still am. I love the company of positive, can do, will do people.

Snakk has allowed Kiwi investors to invest in a company that may never do a huge amount of business in New Zealand, which is really exciting, because it is not an opportunity that comes up often. As was pointed out, 2 years ago mobile digital advertising spend in New Zealand and the UK was 1% of the total spend. Today in New Zealand (where I have been trying to educate agencies on location based marketing and Augmented Reality, the percentage remains at 1% and in the UK is now 23%. In Australia they have the third fastest growth in the world (sic) of smartphone and tablet users, so it is appropriate for their head office to be in Sydney.

There was a lot of discussion about the threat to live TV with so many people now streaming to their mobiles and time shifting. Snakk didn’t mention all the technologies, but I am confident that they have a lot of tricks up their sleeves so that people like me who watch a reasonable amount of TV, while using my iPad or mobile, and MySky, will also be able to receive the messages I want. 

Here’s where I get excited. I want, and assume you will too, my TV. When it comes to advertising, I’m a marketer, but I don’t generally like watching ads. I guess the main reason is because most of them are not relevant to me, or at least not relevant to me at that time. I want them when I am open to buy.

So here are some of the things that I wanted to hear (and did either directly or between the lines):

• Profile. I want ads that match my profile. Having them appear on my third screen (my mobile or tablet) in conjunction with what I am watching, based on my interests is something I might welcome. If there is an interaction between my device and the TV program, then it may not matter if I am watching live or time-shifted, depending on my:
• Context. A lot of the future of mobile advertising comes down to an app on my device knowing things about me. What I am interested in, where I eat, drink, play, get entertained. What I am interested in at certain times of the day or day of the week. Market food to me at a time I am likely to be considering a meal. Then of course there is:
• Location. If my mobile knows where I am, there is so much more you can do. If I like coffee, I’m walking downtown and there is a cafe that wants my business, let them send me an offer together with a reward of free WiFi.

On another tangent, the awesome podcast from Asif Khan and Rob Woodbridge of the Location Based Marketing Association: This Week In Location Based Marketing mentioned that where a geofence is used for guerilla based mobile marketing, they get a 12% click through rate. Just to explain, imagine you walk into Burger King and your mobile bleeps you a notification offering you a free upsize if you go to McDonalds up the road and buy a Big Mac combo.

This is where people started to get excited and concerned about privacy and I need to mention the MAC, pun intended. Effectively it is possible for apps to learn about you and your behavior without having your personal details. Effectively they track your mobile, not YOU. It’s not quite that simple and that is why in the early days of The Hyperfactory (I didn’t actually work there, I suppose you could have called me a Hyperfactory groupie) we started to set up a Mobile Marketing Association, with the view of self regulating to ensure the Government didn’t over regulate. The key was around allowing people to know what information was held about them and giving them the right to revoke access to it.

This blog is getting way too long, so I’ll finish with a few quick thoughts on Foursquare. I wish I had paid more attention to Derek having shared an office with Foursquare, I think I made a mental note to talk to him about that, but I didn’t. Maybe I still will.

The question was asked as to whether Foursquare was viable and the general answer from the panel was, not really. Derek was more retrospect and pointed out that the issue in New Zealand has always been one of scale. In New York City scale isn’t a problem, the population is over 8 million people. They can afford to have sales people in NYC and its easy to segment them.

In New Zealand there are actually a reasonable number of users, but Foursquare hasn’t really been interested in them because we are too small. I briefly became a Foursquare Ambassador and saw big opportunities for proximity based marketing. I saw a business model for myself with Foursquare, but they would not allow me (or anyone) to manage multiple businesses on behalf of customers. Each account had to be managed individually and for New Zealand that was a fatal flaw.

For those who think Foursquare is out, have a read of this story from Fast Company.

Did you go last night? What did you think? I think this is going to be a very successful global company and look forward to being involved somehow, if only only the sideline. I have watched and met many successful people over the years through my business network and Derek Handley is a Kiwi that remains underrated imho despite all he has achieved to date. In my opinion the shares are well undervalued right now. I’d recommend at least buying a few.

Footnote: I do not own any shares in Snakk Media. I do not work for Snakk Media in any capacity. I would seriously consider both though:)

Congratulations to Julie Landry, Vaughn Davis and the team for an excellent event.

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.

There 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.

It’s Hard For Retailers To Embrace New Mobile Marketing Technology

I’ve been engaged in a conversation in a mobile marketing group LinkedIn discussion where people involved in solutions such as mobile coupons are complaining that retailers are intellectually lazy and not looking to embrace new technology.

I argued that most retailers focus on BAU (Business As Usual), working in their business employing strategies and technologies they have used for years, which they understand and can deal with. They do not spend anywhere near enough time working on their business, including strategies to embrace new technologies.

Many retailers have been hurt by one-day deal companies, where they gave up 50% and more in GP in the hope that if they gave great service, they would win new loyal customers. Of course we now know that didn’t work and the only ones that made big money out of it were one-day deal companies. They didn’t have to invest in inventory or carry any risk to speak of.

I’ve presented at a number of conferences on the topic of mobile and location based marketing. What I found really sad was that of all the delegates, the number of retailers at these events could generally be counted on the fingers of one hand.

I’ve been looking at how I could help retailers, particularly in New Zealand and Australia with solutions available today in a cost effective way. I think I have come up with a solution, but its going to take me a fair amount of time and money to deliver.

I will start in the area of Travel and Tourism, largely because they are more focussed on customers who are actively looking for services and new experiences and the industry is used to investing to win new business. Their market is also tough and the traditional business services continue to largely support those who own the systems, ie reservation engines, directories, commissions to tour operators, rather than retailers themselves. These businesses are easier for me to access and easier to quantify direct ROI. Also the individual transactions often have a higher dollar value, so if I can demonstrably increase their cashflow and profit and share in the gain, I can recover my costs more quickly.

I was thinking about how hard it is to get retailers out of the shop to talk to them and from years of calling on owner operator retailers in the past, trying to talk to them in their own environment with customers in store, that’s all but impossible.

So I’m thinking retail readers, if there are any here, and would welcome your feedback on the best way to get in front of you and your peers. The problem is that most of them will never read this. The majority do not attend retail conferences, they don’t even participate in their own main-street organisations. They don’t even do something as simple as co-promote their neighbours. I remember years ago hearing Mark Blumsky (past retailer and Wellington Mayor) talk at the New Zealand Retailers Association conference about how he collaborated with his neighbours by giving away free coffee coupons at the next door cafe to people who bought shoes from him and the cafe gave discount coupons for shoes to their patrons. Leading retailers (because they were at the conference) all talked about it during the lunch and coffee breaks, but I don’t know if a single one of them ever emulated the exercise.

We have amazing free services such as Foursquare and people have probably used one of these apps to check into your store. They may even be your Foursquare Mayor, but you probably don’t even know what Foursquare is.

You need to embrace mobile technology and I want to help. But you’re probably not reading this, so you will have to wait until I have helped some other people first. If you are reading this, leave a comment, connect with me and others who want to see Australasian retailers thrive and grow in this exciting new world. Learn at your own pace, but please step outside of BAU and do something. One little step a day is 365 steps a year and that’s quite a lot.

Locating people via GPS has been a hobby horse for me for many years as you will know if you follow my blog. Perhaps crises like these will help us get funding to develop suitable solutions.

Imersia NZ

The bushfires are raging in Australia, temperatures are breaking records daily and the traditional hottest months haven’t even arrived yet. Meanwhile Imersia has been developing a technology that can reduce stress, improve efficiencies, information flows and potentially save lives in future.

It seems ironic watching this BBC News clip after watching a story on BBC News a couple of nights ago claiming that global warming is slowing down when in Australia the record books are being broken almost daily. Temperature maps on TV are being upgraded with new extreme grades and fire warning signs on the road now include Catastrophic as a condition. 

First of all we want to wish all the best to our Australian cousins across the ditch who are personally involved or have friends and family in areas affected by this year’s terrible bushfires. I can’t imagine what it must be like, other than horrific and very frightening. Whilst we…

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What we can Learn from TripAdvisor

I recently wrote a blog about TripAdvisor and how to make the most of it on your FIT (Free Independent Traveler) trip.

What can you learn as a developer or someone who wants to own their own app to win loyalty and business in the hospitality and tourist industry?

The first thing is content. Most applications are city focused. That’s understandable, but based on my experience in the Southern States was that there were loads of tourists looking for cool things to do and see, but they were so hard to find. If I hadn’t found the Blues Trail Guide at the Natchez Trace Information Centre, I would not have visited Crystal Springs because according to TripAdvisor there was nothing there but a single restaurant. In fact I had the most wonderful day there, meeting the Mayor at City Hall and spending a couple of hours with Theresa,  the Granddaughter of legendary blues giant of Crossroads fame Robert Johnson at his museum.

Theresa and I at the Robert Johnson Museum

Now you may not have heard of Robert Johnson, or watched the movie Crossroads, inspired by his legendary story, but if you are a blues fan, then this is a must do pilgrimage and to actually meet and talk with his granddaughter is something you won’t likely do at music museums or historic places of interest anywhere in the world. My point is that outside of the cities is where the real people live and the world is full of exciting and interesting places outside of Disney, Alcatraz or the Empire State Building.

While I make that criticism, I do have to say that TripAdvisor was by far the best for the apps I used on my trip. I was able to find the properties I wanted to stay in, I was able to filter things to do, types of accommodation and more, I guess the key thing was lack of information outside of cities.

As a future step, I’d like it to have the ability to learn about me, profile me based on my interests and make suggestions to me. Given the wealth of information they do have, this would not be too difficult.

When it comes to accomodation, maybe they could also help me with search functionality that would allow me to eliminate properties with keywords, for example ‘show me all properties in Xville excluding keywords ‘bed bugs’ and ‘bad internet’. I understand the problem for properties who may be unfairly targeted by competitors trying to put people off their properties, but that is a security issue and there are always opportunities for redress. The fact is, wherever I saw comments about bedbugs etc, I avoided those properties like the plague. So all it did was make it take longer for me to find those comments, but I still didn’t stay at those properties. What frustrated me the most was that I spent up to 2 hours some nights, instead of relaxing, trying to work out where we would go next and where we would stay, which took a bit of the gloss off an awesome trip.

I’d like an app, and I know people are building them, which allow you to list your interests and then it will generate a tour or recommendations to meet your interests. Issue for me is most of them are based around specific advertisers who are often self rated, or very generic interests. That doesn’t work for me, I want apps that have all places, business and non business.

Probably the biggest one for me is I want live events. This was the hardest thing of all and TripAdvisor didn’t support this. If you ask a tourist what some of the best things they did were, it was about real life events, fairs, the bath-tub river race, Civil War reenactments (there were plenty but other than driving past one by accident we wouldn’t have had a clue where to find them), concerts, shows, the rodeo in Hattiesburg MS which we only found out about because we were in a hotel restaurant having breakfast and met a family who were competing in it.

Tourism is hurting around the world. Lots of people are traveling their own countries rather than going overseas. Lots of treasures are being missed in towns that have a lot to offer and many of those businesses need our tourism dollars more than the big cities.

A footnote to state and regional tourism organisations, particularly USA, Australia and New Zealand. It is frustrating and short sighted in my humble opinion to stop your tourism efforts at the border. I loved the Tennessee tourism book, but it was too hard to use and it stopped at the border. I also understand that your tax dollars stop at the border, but tourists don’t. Same to Louisiana who obviously had their book made by the same publisher. If you are using the same company, then that company could perhaps look at making quality location based applications that make it easy and attractive for people to enjoy holidays and spend their money.

Perhaps the key is to ask the tourists what they want rather than just continue to focus on traditional print business as usual.

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

Air NZ Customer Service

I was going to blog about 3D Bio-Plotting today and if this is of interest to you, bookmark or subscribe to the RSS feed. This is going to be a very exciting disruptive technology that has the potential to have a huge impact on our life expectancy and the health industry.

In my last blog I wrote about how John Donahoe, CEO of eBay has a good understanding of what business eBay is in and it isn’t helping people buy and sell things online, or about their recent purchase of Red Laser for comparison shopping.

I wonder if Air New Zealand really understand what their business is at times. If you read their Vision Statement and Guiding Principles, it doesn’t say anything about the travel experience, or about the social relationship with customers or being the facilitator of people’s dreams. In fact a lot that Air New Zealand does is about that, but at times they seem to lose track of that and of course their major focus is on delivering a dividend to their share holders. The bottom line is people do business with people, like me. Individuals who have feelings, not just bums on seats as they say in the hospitality business.

In What Would Google Do, by Jeff Jarvis, still one of my favorite books, this is what he says about airlines:

Air travel’s business model today is based on overselling seats, billing us for checking bags, charging us for pillows and pretzels and just about everything they can think of but air………………. Does that sound familiar. I know it is hard to run an airline profitably, but as someone who has traveled around the world at least a dozen times, there have been many years where I spent 4 months of the year travelling, I understand that traveling is stressful and tiring and little things like being stuck in transit at San Francisco Airport for 8 hours because the Air NZ counter doesn’t open till 90 minutes before the flight and they don’t have an interconnect deal with their partner Lufthansa can be frustrating. They don’t engender loyalty, which I can assure you cost them a lot of money from me from time to time. I have also declined the two invitations to take out an Air NZ Platinum American Express Card. Why would I support an organisation like that, which doesn’t put me first?

Anyway, I started this blog because of frustration over my latest experience with Air New Zealand. Now I have to say that all the people I have spoken to at their service center have been friendly and polite and helpful to a point. But they fall down on some simple things like detail.

So here’s what happened. Last year my wife an I booked flights to Sydney to attend a wedding in Hunter Valley. Prior to the wedding, we were told that my father in law had weeks to live as he had a recurrence of cancer that he was not going to beat. We had to cancel the flight for which we paid $944.20 including taxes and Air NZ said that due to compassionate grounds they would hang on to our money and allow us to rebook at a later date within 12 months, which we thought was reasonable.

I re-booked in January for a trip at the end of this month (I have flown with Air NZ a number of times since then including a trip to Rarotonga in October). I gave my credit card details for the $150 re-booking fee (for 2 of us). Yesterday I went to print off the tickets and organize travel insurance and there was no email. I rang the call centre to find out why and after being transferred and disconnected and waiting a while to speak to someone again, I was told that the flights had been cancelled because they hadn’t been paid for. I was flabbergasted. I gave her my credit card details on the spot, but on checking yesterday, my card account had not been debited. I have already paid in advance for accommodation and we had both applied for leave etc and made arrangements to meet friends over there etc.

Anyway, the nice friendly chap I spoke to went and spoke to his supervisor and apparently, they can still get us on the same flights, but it would now be more expensive for the transfer fee of the tickets. They wanted to talk to the call center person who arranged the booking for us and she is not back until Monday, so they will get back to me on Monday or Tuesday.

So here’s the thing. I have no certainty for one or two more days that I will in fact get those flights and I may have to pay more for my tickets than the extra $150 which in itself would mean that we are paying $1,094.20 for 2 return flights to Sydney from Auckland, at the same time that Flight Center is offering one way tickets for $79 plus taxes (including one bag) at their travel expo.

I can’t believe that the supervisor couldn’t have just authorized the deal on the spot and taken my credit card details once again. What does it cost them for their time to document the discussions, chase the previous consultant who I believed had booked my flights, confirm back to the consultant who I spoke to yesterday and then have him ring me on my mobile to hopefully tell me they will honor the arrangement we had made in the first place. My cost is of course stress for myself and my wife as to whether we will be on the flights booked, that we won’t lose the money we prepaid for accommodation and so on, and it certainly sours our anticipation of a nice little holiday.

On top of that Air New Zealand have had the use of just under a thousand dollars of our money for free for a year. Wouldn’t it have been cheaper and more expedient to just say, sorry, something has gone wrong here, we can’t explain it, but if you will give us your credit card details again, we will send you a confirmation email in around 15 minutes. We hope you enjoy your trip with Air New Zealand. Then I would be writing a blog saying how wonderful and caring Air NZ was, even after they had clearly slipped up. It’s been my experience that often its not the problem but the way it is dealt with that makes all the difference. Frequently when a company has a problem and deal with it well, they will end up with more loyal clients than they would have had if the problem had not occurred in the first place.

OK, I’ve had my vent and will let you know if Air NZ fix things for me or not.

In the meantime, what about your experiences with airlines. What do you think of their visions and their customer service? Do you feel they have a good balance between customer service and shareholder satisfaction? Are you loyal to a particular airline? Why?

The Internet as a battlefield

I’ve been trying to work on this post for ages, but never seem to get it finished. The more I think about it, the more tangents I head in, so here’s a start anyway. Maybe you can add a comment to the thread.

When we, Joe Citizen think of warfare, the common picture is either soldiers, tanks and planes, or more recently terrorist attacks. Information warfare is not a topic that we think of very often.

Of course using media such as radio, print and TV have been used for decades to provide disinformation, but now that we have the Internet, there is potential for a new front that could cripple economies and cause massive disruption to life as we know it.

Last month 14 Virgin Blue flights were cancelled in Melbourne when a broken cable disrupted their computer systems, stranding thousands of passengers. A total of 48 domestic flights were cancelled as a follow on of this problem.

Periodically there are major EFTPOS failures, which can happen at the worst possible times. For example in 2005 the EFTPOS network in New Zealand broke down for 2 hours on 23rd December. The estimate was that around half a million transactions were lost on one of the busiest days for retailers in the year. Millions of dollars in transactions were lost because people don’t really carry cash any more.

In November last year Brazil and some of Venezuela lost their power. Nine of Brazil’s states were out of power, representing millions of people. Whilst many complained they couldn’t watch their favorite soap opera, traffic lights were not working, trains weren’t running and parts of the country pretty much ground to a halt.

If a country or a terrorist organisation wanted to cause chaos or in some way to a country or city in the modern world, it would be incredibly easy. In Holland a guy called Max Cornelisse has created chaos and recorded it on YouTube to show how easy it is to disrupt services we take for granted. Amongst other things he has meddled with electronic signs on freeways, opened and closed bridges over canals from his PDA, sent people running from one platform to another by controlling automated PA messages at railway stations and in this YouTube Video he controlled the autoprompter at a Dutch TV station causing confusion to the newsreaders on live TV. Unfortunately it is in Dutch, but you’ll get the idea.

This is just a guy having a little fun, but what could you do if you seriously wanted to disrupt a country or city. What chaos would you create simply by shutting down the Internet. How would your business function without the Internet? How would your community function without the Internet? Imagine no email, no Voice over IP, no web browsing, no IM, no Facebook or Twitter? No online share trading. No banking, no EFTPOS, no ATM’s and who carries cash?

That’s just for starters. I wonder how long it would take for a major city, like New York, London or Amsterdam to fall into chaos? What would happen after a day, a week, even longer?

Last week there was a story on NPR about cyber terrorism. It quoted USA Director of National Intelligence, Dennis Blaire saying that “Every single day, Blair said, sensitive information is “stolen from both government and private sector networks” as criminals become increasingly more sophisticated.”

Interestingly on 16 February 2010 an event will take place in a simulated Whitehouse Situation Room which is scripted to emulate a cyber terrorist attack. Those taking part will include former Director of National Intelligence John Negroponter and former Homeland Security Advisor Fran Townsend, who will have to work out how to deal with it as it plays out.

This has happened shortly “after the House overwhelmingly passed The Cybersecurity Enhancement Act. Something that gives the Obama administration the power to switch off the Internet,” according to Techeye. For more on the Act, check here.

Just as a final thought for now. If you know how to defend against an attack, you also know how to initiate one. I’m not for a moment suggesting any Western power would do that, but given the right circumstances…….

I am very happy to be living in New Zealand in that respect. Although we have allowed ourselves to become very dependant on our friends and allies, not even able to fully feed ourselves if we bacame isolated.

New Powers for Medical Health Officers over Swine Flu

I should have seen this one coming from a mile away. While a lot of people still have their heads in the sand, the New Zealand Government have made Swine Flu a notifiable disease. In itself, that just makes sense, but in fact according to a NZ Herald story this morning, this means that they have authority to demand that people isolate themselves at home, or face fines or mandatory isolation in hospital or worse. 

There are many things to start thinking now, even if you still think it won’t happen to you. If you are isolated at home, do you have everything you need for at least a week? Will this mean that your family that lives with you or your flatmates will also have to stay home too? After all they will be at a higher risk of also getting infected. So if your whole house is quarantined, how do you get your basic supplies like bread and milk?

If pundits are right and it effects up to 60% of the population, or even only 10% are isolated, what happens to business? Grocery stores and other retailers who are in spittle distance of their customers will be at high risk because they are dealing with large volumes of people all day.

The schools represent a high risk, they have always helped spread illnesses, if one child has the measles, flu or any other contagious disease, it is a given that several others will also get it.

If people disobey the isolation requirements, then there are even greater risks, because this group will very likely carry the virus, so I have no problem with the mandate. However, the risk of people not obeying the rules is also high. In today’s economy, people don’t want to risk losing their jobs and many will continue to work because they need the money. In my office for example, staff get 5 days of sick leave a year, which is pretty easy to bite into if you have a flu or cold. There are people who will therefore have no sick leave, or not enough available and don’t want to use their holidays, but can’t afford to be sick without leave, so for as long as they can, they will continue to work.

Schools have been given detailed instructions on what to do in the case of an outbreak, including hygiene instructions, but in my opinion, most businesses are thinking that Bird Flu went nowhere and Swine Flu will do the same, so they aren’t taking precautions and they don’t have contingency plans should a large group of staff fall ill. The air conditioning systems will do a good job of spreading the virus, and some businesses may have to cease trading for several weeks, because while the illness might be gone in 7 days or so, people won’t be considerate enough to all catch the Swine Flu at the same time. 

Of course they could go to a Swine Flu Party. What sort of idiots would do something like that? Well it appears they are, using the same rationale that moms use when their friends children have chicken pox, “Let’s get it over with now”. The problem with Swine Flu is that unlike traditional flu, the virus has no respect for age or health and is capable of killing people of all ages and of course the domino effect would hasten the spread of this nasty illness. 

The new powers aren’t just a NZ initiative however, the same is occuring around the world, in Australia, Mexico of course and most other countries are now drafting legislation that will help them try to fight this problem.

So, are you ready? Do you still think it won’t happen to you, your friends or family, or perhaps your work mates? How prepared are you?