INNOVATION & TECH TODAY-WINTER ISSUE by Innovation & Tech Today

INNOVATION & TECHNOLOGY

TODAY

EXCLUSIVE INNOVATORS ROUNDTABLE Gary Shapiro CES Chris Voss SOCIAL MEDIA GURU

September Dohrmann

Q&A WITH

MIKE

ROWE THE WORLD OF

CEO SPACE

Larry Bock USA SCIENCE & ENGINEERING FESTIVAL

Arrow Electronics

Digital Publishing

3D PRINTING

How the

EXPLODES!

SKILLS

SMART FARMING Meets SMART TECH

MUST HAVE GIFTS FOR 2014!

WINTER 2013

Display until March 10, 2014 $9.99

71486 26532

GAP AFFECTS YOU

from the publisher

Nicole McDaniel Photography

One of the best conversation starters in business is innovation. The idea of innovation means different things to different people … which is the point, right? Innovators break away from the status quo and discover what is possible in products, services, and marketplaces. The fact we live in the innovation capital of the world, the United States, makes the conversation that much more dynamic. Which leads me to this issue. In the spirit of the man whose legacy we first celebrated, Steve Jobs, we have assembled a phenomenal cast of innovators and a dynamic set of stories for our annual Winter Legacy Series issue of Innovation & Technology Today. When you see what Mike Rowe did with his Dirty Jobs TV series and mikeroweWORKS foundation, bio-tech start-up legend Larry Bock’s contributions to science, math and engineering for young people, Gary Shapiro’s skippering of the Computer Electronics Association, Rick Smith’s work in network security, the way Chris Voss drives product success through The Chris Voss Show and social media, how September Dohrmann at CEO Space and Elizabeth Allen at MarketSmartz present what is possible (and happening) in sales and consultation, and how Arrow Electronics’ John Hourigan and Andrew Femrite help to connect 100,000 manufacturers, you get a good look at what is working today — and what is setting the foundation for our economy tomorrow. In addition, our team of feature writers (among them several award-winners) has tapped the pulses of several dynamic industries. We include stories on digital publishing’s next moves, 3D Printing (the next industrial revolution?), the new audio boom, gaming’s rush to streaming, and how our devices are revolutionizing the travel industry. Even farming has gone high tech: we take you to a real life smart farm with Harlan Downing and his family at SPH Farm in Colby, Kansas. Hey, everyone has to eat, right? We present you with a 360-degree view of innovation at work, in work, and resulting in work. I can tell you, after hundreds of conversations with executives, business professionals and innovators, that the spirit and practice of innovation has never been more alive. Do we have a skills gap in this country? Yes. Do we have 3 million jobs with no one equipped to fill them? We do. Does our economy have its holes, and a lot of work left to do to become rock-solid again? For sure. But one thing is certain: for every challenge or obstacle, we’ll find an opportunity. For every business forced to shutter its doors, two start-ups will spring into its place. Our ideas, dreams and passions are more robust than ever. So is our determination to succeed. Enjoy this issue of Innovation & Technology Today. We wish you Happy Holidays, and look forward to seeing you at CES, MacWorld/iWorld, CEDIA, the U.S.A. Science & Engineering Festival, and many other trade conventions in 2014.

Charles Warner Publisher 2

The Legacy Series

Winter 2013

Contents contents

Portable Travel

Green Technology

From the Publisher

118 Product Revolution 121 Gift Guide

Skills Gap

DEPARTMENTS 08

Metric Mania

Communications

Point of Purchase

Smart Homes

Green Technology

Education

Mobile Computing

Gary Shapiro Computer Electronics Association

Women in Technology

Martin O’Loughlin Brilliant Controls

Social Media

Will Stein Philip Stein Watches

Wearing It

Mike Rowe mikeroweWorks, host of Dirty Jobs

I&T TODAY CONVERSATIONS

FEATURES 28

The Innovators’ Roundtable

Digital Technology, Meet the Smart Farm

How Travel Became Portable, Mobile & Instant

The Wonderful World of 3D Printing

Listening Loud and Clear

What’s Behind the Skills Gap?

Driving Demand: The CODE for Social Selling

Stepping Up to the Plate

Residential Electronics Innovation: CEDIA 2013

40 Gary Shapiro

62 Will Stein

52 Martin O’Loughlin

84 Mike Rowe

102 Digital Publishing’s Next Chapter 112 What’s Behind the Growth of Gaming? 4

Innovation & Technology Today

Winter 2013

WINTER 2013

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GAMING/ENTERTAINMENT EDITOR SENIOR WRITERS

CONTRIBUTING WRITERS

SPECIAL GUEST CONTRIBUTORS

Charles Warner cwarner@goipw.com Robert Yehling ryehling@wordjourneys.com Mary Racila raciladesign@aol.com Shane Brisson Loren Wilde Kelsey Elgie Domier Dave Van NIEL Carlos Hernandez Nicholas Guzzo Aaron Halda Kelsey Elgie Domier Lisa Lunney Teri Bayus Hannah Brott Stephanie Clarke Amanda Leach Rosemary O’Brien Jason R. Rich Elizabeth Allen Rick Smith Chance Van NIEL

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Curtis Circulation Company, LLC PRINTING Publication Printers Corp. SPECIAL THANKS TO IDG World Expos and Macworld/iWorld, Jessica Venditto, The V Foundation for Cancer Research, INPEX, Randy Manzo, Zinio, Bjorn Brunvand, Christy Laramy, BTFL, Chris Voss, Lloyd L. Rich, P.C., Joe Huffstutler, Jan Johnson, CEO Space, 4imprint, Choppers, The Cova Hotel, Blue Heron Media, Olivia Sellke/CEDIA, FUJIFILM, Moffitt Cancer Center, Xenith Helmets, Zephyr Technologies, Andrews Orthopaedic & Sports Medicine Center/ Dr. Joshua G. Hackel, Keiser University/Dr. Julie Snyder, Mary Sullivan and mikeroweWORKS, Jeff Folsom, Martha Halda, The USA Science & Engineering Festival, Larry Bock, National Girls Collaborative Project, The City Of Cupertino, Apple, Inc., John Hourigan/Arrow Electronics, Dreamstime.com. This publication is dedicated to the dreamers, the innovators, the collaborators and the doers who can’t be bothered by those saying it can’t be done. Nicholas and Aria, the future is yours!

Innovation & Technology Today

Winter 2013

Metric MANIA

38 YEARS

number of mobile devices shipped globally, 2013 (Supermonitors)

1BILLION .82

web-enabled phones in use worldwide, 2013

1.78 BILLION

desktop computers in use worldwide, 2013

500 MILLION

number of tablets shipped globally, 2013 (Gartner)

growth of mobile adoption, 2009-2013 vs. web adoption, 1993-2003 (Supermonitors)

Retail

increase in click-through rates when location mentioned in mobile ads (Media Post)

$200

amount Apple spends per square foot to outfit Apple Stores (Fast Company)

of total mobile devices compared to people on earth (Supermonitors)

$718 MILLION

of time spent inside mobile apps while on phone (Supermonitors)

revenue from mobile health apps in 2012 (National Venture Capital Assn.)

of web traffic originating from desktop (Tech Crunch)

40 MILLION number of users logging workouts on MyFitnessPal

of people who use cell phones to go online (Forbes)

(MyFitnessPal)

$15

of people who need 10+ sessions before app purchase (Media Post)

BILLION transactions via Square plastic reader credit card swipers, 2013

of emails opened on phones (Supermonitors)

of web traffic originating from smart phones (Tech Crunch)

400 million tweets sent daily

BILLION transactions via Square, 2012

(HBR)

of web traffic originating from tablets (Tech Crunch)

4 YEARS

3.5 YEARS

1 YEAR

App

Draw Something

Tablets

Internet

13 YEARS

Facebook

(Square)

Television

Radio

800% 200% 91% 80% 79.8% 63% 44% 30% 14.6% 5.6%

2 BILLION

50 DAYS

Time it took to reach first 50 million users 8

Innovation & Technology Today

Winter 2013

Communications By Stephanie Clarke

The Cord-Cutting Revolution

Cord cutting is evolving — again. People are stepping away from the traditional cable and satellite television viewing and moving into free or minimally priced services, which offer the same programming without the hassle and increasing prices of cable and satellite. We’re all used to those hyped-up cost-saving bundling packages that companies such as Time Warner and Comcast offer on internet, cable, phone, home security, etc. At “great rates” we are able to bundle various items into one package. The bad part is, usually one or more of those items are things we would never use, which causes us to pay a little more than if we didn’t bundle. What if you could get those same benefits for free? With my current subscription plan, that would easily save me around $2,000 per year. That’s a huge cost savings in an uncertain economic time. As Brian Cavanaugh of freeTVEE says, “Cord cutting used to be a myth, but now I think most folks would agree it’s for real, and gaining momentum daily. Do I think cable and satellite will disappear next year? No. However, I think the traditional TV landscape will be drastically different in the next 2-5 years.”

and watch an entire season of The Walking Dead. I have friends who will watch twenty minutes of a show at a time, never finishing in one sitting. Netflix and Hulu are the forerunners of A top cord cutting the “free and discount resource, freeTVEE offers TV” market. Netflix’s an innovative approach continued focus on to television viewing. “season-after series” They provide TV and of television home entertainment programming is content on any TV or changing their moviedevice by combining rental platform. It’s all local network HDTV with Brian Cavanaugh about growth and internet TV. In addition, tuning into the consumer’s needs. they provide a DVR, TV guide, HD, With low cost and even a change in On Demand, full web access, commercial advertising — no longer unlimited apps, plus all of your disturbing you while you watch music, home videos, and pictures, your favorite show — discount and all for no monthly fee — ever. It’s a free television are equipped to take new way to allow people to match over a floundering cable and up services precisely to what they satellite TV market. are watching and listening to. Where bundling once consisted of We no longer sit in front of the cable, internet, and home phone, television at a specific time to watch companies like freeTVEE bundle a show as a family. Instead we pick multiple free and network TV when, where, and how we will options, along with internet, apps, watch television. I would be happy and on-demand services. The result? if every television show came out a A much less expensive and more season at a time, like House of Cards convenient option for consumer does on Netflix. So, if I have a boring entertainment. ■ weekend planned, I can plop down

Innovation & Technology Today

Winter 2013

P oint of Purchase Credit Card Rewards Change — Forever Are you happy with your branded credit cards? Do your Discover, American Express, or branded Visa and MasterCards give you bang for your buck? When you finish reading this column, your opinion of your current cards will likely change forever. Dynamics, Inc. has developed the most beneficial credit card rewards system to hit the market. Not only that, but you get instant rewards — and we do mean instant — from some of the hottest brands around. This might be the biggest consumer technology hit of the year. The Consumer Electronics Association show thought so, giving Dynamics Inc.’s ePlate system its Best in Show for Personal Electronics and Technology. “A typical rewards system takes 30 days to get your points,” Dynamics Inc. CEO and ePlate mastermind Jeff Mullen said. “With Dynamics, we provide the reward within a half-second of making your purchase. So before you even put your card back into your pocket, you get your reward.” What kinds of rewards are we talking about? That depends on you, which is the first killer feature. The second is that rewards among the more than 50 participating companies (including Innovation & Technology Today) average 5%, a five-fold increase over typical card rewards. Some go much higher. The 12

Jeff Mullen companies cover a variety of product and service categories; even authors and artists are involved. Here’s how it works: You sign up for an ePlate rewards card, then you select one of the companies for your rewards. When you exceed certain spending points, you receive specific rewards (both set by the branding partner). You can switch out your designated brand every 3 years, 3 months … or every day. “At any time, anyone can go online, on their phone or computer, and change the underlying rewards system on their card,” Mullen said. “On Monday, they could get cash back. On Tuesday, they could be earning miles. On Wednesday, they could be earning exclusive items from their favorite brands. On Thursday, they could be donating to charity.

Innovation & Technology Today

“When you allow customers to select different rewards systems, our partners get a customer acquisition value out of that, and they offer additional rewards. For example, Skip Barber Racing School is one of our higher rewards. For every $2,500 that you spend, you earn one FormulaOne racing lesson. That’s a 28% reward. If you were going to match that with your AmEx or Discover card, you’d have to spend $70,000.” Innovation & Technology Today’s rewards exemplify the versatility of the ePlate card. The #6 Most Used reward on the ePlate system (as of November, 2013), I&T Today offers an iPad for $20,000 spent on the ePlate card, along with magazine subscriptions with your first card purchase, and tickets to the MacWorld/iWorld convention in San Francisco for subsequent uses — plus sweepstakes entries. ePlate offers participating brands and customers a very tangible alternative to traditional bank-issued cards — a move the banks cannot counter. “Because there’s just one reward system on their cards, banks can only choose brands they know will exist for the next 30 years,” Mullen said. “They can’t make an investment and put marketing dollars behind a credit card if people lose interest in that brand. “We don’t have that issue. We can go after more in-the-moment, emotionally charged brands. We can also partner with individuals.” ■ Winter 2013

Smart Homes Building Smart = Living Smart

Photos courtesy of Enertia Homes.

Enertia’s natural resource-centered homes include the kitchen of an Aquarius home in Connecticut, an Arcadia home in Big Bear, CA, and an Arcadia home in North Carolina. There is another element to smart homes that often gets lost in our current rush to smart entertainment systems, sensors, home security, climate-triggered sprinkler systems and other technological marvels: the construction of the homes themselves. One of the real bright lights in environmentally sound, energyefficient home construction is Enertia Homes. Enertia continues to design housing that dazzles in its architecture, efficiency and use of natural energy sources. As more people look to alternative materials or less ecologically intrusive homes, they are beginning to find that builders like Enertia are 180 degrees removed from, say, the back-to-theland structures of back in the day. Not to mention far more innovative. “We’ve done this by scrapping tradition,” Enertia CEO Michael Sykes said. “We tossed out the traditional American path of insulating and tightening houses, because thatʼs dangerous to our health. We went straight to the end goal — safe and comfortable shelter without purchased fuel or electricity. 14

We took a new path — storing energy in the structure, not the interior air you have to breathe. In America, you can innovate this way, because we are a new country, without the thousand-year-old guilds that control the methods.” Interestingly, one of the biggest concerns in building smart, green homes comes from climate change — and meeting safety concerns that have been steadily increasing since global warming started messing with weather patterns in the late 1980s. Sykes pointed out how much this has impacted Enertia and other builders. “Since we are already at 100% renewable, and zero-emissions, we are starting to shift focus to the inherent strength of our solid wall building systems,” he said. “Just recently, America lost 340,000 homes in the Sandy superstorm, and 63,000 in the Colorado flooding. This is crazy! What is the point of building green when this many entire houses go into landfills? “But the real killer is the 50% Rule. If your house is more than 50% damaged, you canʼt just repair, you

Innovation & Technology Today

have to build back to the new current codes. With our Gluelam construction, we can easily survive the 50% Rule, even in a tornado. We are partnering with EdenSAFE Homes, right in Tornado Alley, to offer a product we know will survive the 50% Rule. You may lose your windows and roof surface, but your structure, and your right to live there, will be intact.” This leads to an Enertia practice that truly does accentuate the SMART in smart home building — picking locations that might seem unusual, but add to the efficiency and structural safety of the house. “When we go to a property to site and design a house, we are looking for all sources of Enertia (energy from a shift-in-time). The sun, obviously, but also the earth temperature, changes in elevation, energy sources, and sinks like a cave or rock outcropping,” Sykes explained. ■ Sykes talks more about the direction of innovation in homebuilding in our Innovators Roundtable (see page 28). Winter 2013

Green

TECHNOLOGY

By Kelsey Elgie Domier

The Story Behind Apple’s New “Spaceship” By now, you’ve probably heard about the plans for the colossal Apple Campus 2 in Cupertino, California. As one of the richest companies in the world, and constantly building on its product offerings and war chest, it's no surprise that Apple needs to expand to a larger campus. up a phone Apple’s current book and campus — located at flipped through 1 Infinite Loop Drive the pages until in Cupertino, Calif. he found the — accommodates Photos courtesy of The City of Cupertino phone number 2,600 to 2,800 for one of his childhood idols: employees, but Apple has over William Hewlett of Hewlett12,000 employees in the area. This Packard. Steve phoned Hewlett leaves the company no choice but to hoping to acquire some parts he rent office buildings further and needed to build a frequency further from its epicenter. Late CEO counter. When he presented the Steve Jobs understood it was time to proposal for Apple Campus 2 to the move forward with plans for a Cupertino City Council in June second campus that could house the 2011, he quipped, “There were no growing staff, while keeping the unlisted numbers in the phone current campus to augment Apple for book — which gives you a clue further growth within Silicon Valley. to my age.” Now, the company has acted on Hewlett answered the phone all Jobs’ vision. Apple has already begun right, and he gave Jobs the parts he work on a large section of land needed for his project. He also gave purchased from Hewlett-Packard him a dream summer job. During (HP) in 2010 — adjacent to land Jobs' time working for HP, the Apple had been buying up, one piece company was looking at property in at a time. Cupertino, off Pruneridge Avenue, Why was this specific lot so special where it later built its computer to Jobs? At the age of 13, Jobs picked 16

Innovation & Technology Today

systems division. As decades passed, HP shrunk, and it wound up selling the lot to Apple. The four-story, 2.8 million sq. ft. building will house over 12,000 of Apple’s engineers and support personnel comfortably. When finished, 80% of the campus will be green space. This state-of-theart campus is set to produce 100% of its own renewable energy, all with a goal of zero net increase in greenhouse gas emissions. The cherry (er … apple, if you will) on top: as a corporate campus, Apple Campus 2 will house one of the largest solar arrays in the world, using the grid only as a backup. The Apple Campus 2 project was special to Jobs, just like the iconic empire he helped create, so it's no surprise he began working alongside architect Norman Foster of Foster + Partners in 2009 to draw up plans for the campus. Symbols of Jobs’ legacy are included in them. Every aspect of Apple Campus 2 will be sustainable, handcrafted and uniquely innovative, while incorporating a forward-thinking design that fosters creative collaboration between employees. This new spaceship-like structure will create a launch pad for new ideas and innovative Apple products of the future. ■ Winter 2013

Education By Robert Yehling

Focus on Studies? Or Devices? The Big Dilemma in K-12 Education A few years ago, while observing a high school classroom as part of my role to “teach the teachers” the new Kentucky K-12 writing curriculum in which I had a hand, I saw something that took my breath away. On the corner of the teacher’s desk was an essay, graded and ready to deliver back to the student. She’d given it a B+. Nothing surprising about a welldone essay, right? Except this: The essay was written entirely in texting language. “Did you assign it this way?” I asked the silver-haired teacher. “No,” she said. “But it’s a good essay.” “What about the languaging?” I asked. “The texting terminology? What about complete sentences — or using good narrative techniques?” “They’re never going to write normally,” she replied. “So what does it matter?” That question sweeps across education today: What does it matter? Why bother teaching kids to add, subtract, multiply and divide when they can use calculators on their iPads or phones? Why teach them strong writing skills when they text everything they ever wanted to say — or write? Why bother about identifying the countries in Europe — or the states in the U.S, for that matter — when you can Google or Mapquest them? This is scary Brave New World stuff. The relationship between kids’ use of mobile devices, their time online, and traditional school learning strategies was a central topic of an education 18

conference held in Washington D.C. on October 31 and sponsored by the American Enterprise Institute for Public Policy Research. The other hot topic? The leading edge of this “perfect storm” in education, the hyper-emphasis on standardized assessment testing. Running a classroom in a world of mobile devices, social media, smart boards and online learning is tricky. The key, said 2013 North Carolina Superintendent of the Year Mark Edwards, is to sell students on what he calls “the overall culture.” That starts with instilling a lifelong love of learning — pressing the student’s naturally inquisitive button constantly. Then, Edwards points out, it progresses to the three key dynamics of any fertile learning environment: the students understand how school is relevant to their futures, teachers form a caring bond with each student, and technology is used to best prepare students for the fast-

Innovation & Technology Today

paced, mobile and connected 21st century workplace. Then there is standardized testing. I volunteered as a monitoreducator several times, and I’m here to tell you: it drains the minds of students and teachers alike. Teachers become so consumed with “teaching the test” that they won’t tailor curriculum to individual students. Why? Administrators pressure them to produce good scores, so the school receives more funding. The student becomes a commodity. Not good. What does this leave us? Students who graduate able to cram for tests, but lacking in critical thinking, problem solving and real learning. Not to mention a deep distaste for learning on their own. “How do we turn the Titanic of assessmentdriven education to actually talk about critical thinking, problemsolving and real learning when accountability is so high that, to me, it has stifled innovation?” Rick Ogston, founder of the original Carpe Diem charter school in Arizona, asked at the conference. Finding the happy medium of technology and deep learning, and somehow corralling the obsession of standardized testing, are crucial to improving the education of our students. We’ll explore solutions and uses of technology in upcoming issues of Innovation & Technology Today. ■ Winter 2013

Mobile Computing By Jason R. Rich

Apple Debuts Lighter and Faster iPad Air Tablet In a year filled with mobile computing stories, Apple again seized the headlines as the year streamed toward its close. After selling more than 170 million iPads since the original tablet was released in April 2010, Apple continues to dominate the tablet marketplace worldwide. In November 2013, the latest iPad models were released, including the new iPad Air. Without adding cost or shortening the iPad’s battery life (which continues to be about 10 hours per charge), the new iPad Air weighs just one pound, measures 9.4” by 6.6” x 0.29”, and has a 9.7” (diagonal) retina display with a stunning 2048 by 1536 resolution. iPad Air is twice as fast as the iPad model it replaced. It is also eight times faster than the original iPad. Thus, when you combine the faster processing speed with the improved retina display, along with the additional technological advancements built into the iPad Air, you can expect an overall faster and more responsive device. This will happen whether you’re surfing the web, managing a spreadsheet, word processing, viewing high-resolution digital photos or HD video programming, or playing a highaction and graphic intensive game, for example. 20

Adding to the capabilities of the iPad Air is the newly updated iOS 7 operating system, which has been redesigned to offer better integration between apps and Apple’s iCloud service. You’ll also discover many new features and functions incorporated into iOS 7. For example, by incorporating AirDrop into iOS 7, Apple has also made it easier to send and receive files wirelessly between iOS mobile devices that are in close proximity. However, by tapping on the Share icon that’s found within many apps, it’s possible to quickly share appspecific data with others via email, instant message, Facebook, Twitter and other popular methods. The apps that come preinstalled with iOS 7 allow the tablet to handle a wide range of tasks right out of the box. These include surfing the web, sending/receiving email, scheduling and contact management, using the redesigned and now free iWork for iOS apps (which include Pages for word processing, Numbers for

Innovation & Technology Today

spreadsheet management, and Keynote for digital slide presentations). That means businesspeople can perform a wide range of work-related tasks on the iPad Air. This allows them to leave their heavier and more cumbersome notebook computers behind, yet still be highly productive from virtually anywhere. The iPad Air comes in a handful of hardware configurations. The majority of apps require Internet connectivity. So, the first decision you’ll need to make when purchasing an iPad Air is whether you want a Wi-Fi Only or a Wi-Fi + Cellular model (which can connect to the wireless web via a 3G or 4G LTE cellular data connection, as well as a Wi-Fi wireless network/hotspot). If you opt for a more expensive WiFi + Cellular model, it’ll be required to choose a wireless data service provider at the time of purchase and then pay an ongoing monthly fee for data service. Next, choose the internal storage capacity for the device. Your options include 16GB, 32GB, 64GB or 128GB. You can also select the casing color (which is a matter of personal preference that does not impact the iPad Air’s capabilities). Pricing for the iPad Air ranges between $499.00 and $929.00, depending on the configuration. ■ JASON R. RICH (www.JasonRich.com) is the bestselling author of more than 55 books, including Your iPad At Work, 4th Edition (Que).

Winter 2013

Women in Technology By Lisa Lunney

The Rise of Elena Donio Elena Donio has been steadily building her career and establishing a name for herself in the business world since 1998. Fifteen years later, she is shaking up the software industry with an approach that seems so simple — emphasizing comfort. “Technology today is embracing the end user — even enterprise software is becoming enjoyable for the user,” she said. “User satisfaction and efficiency drive better performance and engagement. Access to data and information is easier than ever. We are driving more educated, insightful decisions faster because of our current progression in technology.” When you look at Donio’s background, you see the combination of hard work and nurturing attitude that explains her approach. She started right at the beginning — by helping to create Concur in Bellevue, WA. She spent almost a decade in leadership positions ranging from the Head of Product Management, to the Head of Marketing, focusing on projects from lead generation to corporate branding. Her versatility was obvious, as she spearheaded the MDR function, brand refresh and website launches while leading the transition from on-premise to ondemand software. Donio’s determination not only helped Concur acquire thousands of new business accounts, but also to expand into the global market. Then she left for the same reasons many women leaders temporarily depart the workforce — 22

Elena Donio to focus on her family, as well as non-profit work. After a year away, she returned to Concur with a fresh outlook and attitude about her role as a female executive. Now the Executive Vice President and General Manager, Small & Mid-Size Businesses, Donio has a passion for impacting and improving the businesses of her clients, those in her organization, and beyond. “My vision was to create an environment in which what happens inside the company is valued alongside what is accomplished in the community, and what is accomplished personally,” she said. Beginning her role as a senior leader, Donio approached it with the understanding that the job came with extremely long hours and endless travel. Initially, she dove into the misconception and slipped into the stressful life of a

Innovation & Technology Today

workaholic. In 2006, Donio found herself driving so hard physically and emotionally at work that she didn’t have much left for family, philanthropy and wellness. Her solution? Not to work less, but to work smarter in order to achieve a new level of productivity in her work life, as well as create opportunities for her to grow in her personal life. “As a leader, you owe it to yourself to make time for a life outside the four walls of your office,” she said. “That’s how you’ll achieve the best results and feel more fulfilled personally and professionally. By instilling this belief across your organization, you can get the most out of your people and create a corporate culture that inspires people to work hard and live a full and rewarding life.” In addition to her busy schedule, Donio volunteers with the King County Boys & Girls Club. She has also taken on a prominent representative role for Concur within the workplace equality organization Out & Equal. Donio continues to work hard and teach other women how they can achieve the same level of peace and fulfillment while delivering contributions within the technological and social communities that better the world. “Be the ‘go to’ person for something,” she said. “Establish an expertise that you enjoy sharing and you will begin leading well before you gain the official title and role.” ■ Winter 2013

Social Media By Teri Bayus

Like Raising Chickens: Cresting Trends Giving Back Like many families coast-to-coast, at all income levels, we have decided to raise backyard chickens. It is the newest trend in the back-to-basics movement. It works, because these pets actually give back substance. For most, this is a new venture; thus, chicken Apps and YouTube channels have sprung up to facilitate everyone from the socialite with a one-hen coop to a suburban flock of forty in the front yard. It is the same concept with social media and new advertising trends: When they are new, we pay more attention. One new cresting trend is image centric networks. The ability to share an image can speak the marketing message to potential clients more clearly than a 140-character post. A complex idea is conveyed with just a single image. Visualization makes it possible for one to absorb large amounts of data quickly. This has caused jubilation from those who dreaded the “copy” part of the social media exertion. Instagram, Pinterest, You Tube, and Vine offer the business visual content instead of and in addition to the written word. Business cultures are learning that showing instead of telling is a powerful tool. The shareability factor of photos and videos gives the social media message the much coveted viral element.

New sites like Mobli, Slideshare, Tumblr, and Path should be watched and monitored. A forward-thinking hawker should learn how to shoot, edit and post videos for the assurance of social marketing growth. Popular photo editing sites include Adobe Photoshop Elements (priced at $89.99), which learns your preferences, along with a step-bystep guide, and Corel Paint Shop Pro (priced at $44.99). Free apps like GIMP 2.8 and Paint.net might be all a business needs to put its best face forward. Video editors like Power Director (priced at $49.99) allow you to add

Innovation & Technology Today

audio and still pictures, while AVS ($59.00) lets you also add effects and use templates. Free video edit programs found at Lightworks and Windows Movie Maker can be all you need to edit like a pro. Another new trend is that business owners, marketing experts and managers have finally admitted that social media promotion is not free. You may pay little or nothing to post on the sites, but the time invested by those managing social media costs the company hard money. Savvy administrators have learned to use social bundling sites that post messages to multiple sites on a timed schedule. This can be done days, weeks, even months in advance using an editorial calendar. Sites like Hootsuite or Sprout Social save time, resources and transfers the company’s message consistently, which contributes to the overall success in social media marketing. Like the return to growing and raising our own food, social media has quietly circled back to the Kodak days when our pictures were worth a thousand words. ■ TERI BAYUS is a serial entrepreneur who has owned over 20 businesses. She is a teacher and writer who directs numerous social media sites for businesses. Workshops she offers include social media business marketing, writing and non-profit fundraising. More at www.teribayus.com.

Winter 2013

Wearing It Drop Your Device In Water? Rest Easy What would happen if you dropped your tablet into a swimming pool after working on the deck? Or your smartphone fell into slushy snow on the slopes? How many times have you tapped your wearable device or watch to make sure it still works after getting caught in a downpour? You know the saying: “S___ happens.” Unfortunately, when wearables or the Big 4 electronics — phone, tablet, digital cameras, and portable music devices — are involved, it costs hundreds or thousands of dollars. Not to mention lost files, photographs or videos, and downloads. Wouldn’t it be nice to have protection so strong that your device could conceivably remain submerged for hours — and work like nothing ever happened? HzO’s WaterBlock nanotechnology is taking the electronics world by storm. It was voted Best New Technology at the 2013 Wearable Tech World, and Best New Consumer Product or Service — Electronics at the 2013 International Business Awards. Among the Utah company’s technology partners are two symbols of quality, Tag Heuer watches, and wearable GPS leader LaiPac Tech. “The awards committees commented on how perfectly timed the technology is, and how relevant it is for the way people use devices today,” marketing and advertising 26

director Ryan Moore said. “Usually, when we show the technology, people either have personally lost a device to water damage, or know someone who has. It’s not only exciting to see an iPhone work underwater, but just the implication of it — that you don’t lose hundreds or thousands of dollars worth of devices because of silly accidents.” Because it’s a coating, WaterBlock form-fits to any device on which it is utilized. Not only that, but the WaterBlock’s application covers the market like the cloud field of a hurricane. Health and fitness, GPS tracking devices, year-round sports, business and personal electronics, recreation, military/defense, aerospace, and automotive interior electronics all fall under the technology’s reach. “We work really well with wearable technology, because you can swim or shower with our coating on your wearable,” Moore said. “But,

Innovation & Technology Today

when you think about it, an electronic is an electronic. Whatever the markets are doesn’t really matter. A device needs protection from the elements. Computers and electronics used to be in rooms; now, people take their cell phones everywhere, for better or worse.” While Moore would not call WaterBlock waterproof — “that’s too much of an absolute” — his description didn’t fall very far short. “We get about as close as you can,” he said. “There are other coatings that are water repellent, that draw the water away. The difference with our technology begins at the molecular level. Ours creates a physical barrier between the water and electronics device, so water can’t penetrate. You can leave the device in the water for hours. You should see the reaction of people at trade shows when we drop iPads or iPhones into the water, and let them sit there. Nothing can really get through.” As HzO continues penetrating the market and reducing the risk exposure to which we subject our wearables and devices, the question becomes: how pervasive can the use of WaterBlock be? “It’s like the Wild West in the wearable market right now,” Moore replied. “We’re very poised for an exciting future, just because of where people are taking their electronics.” ■ Winter 2013

The Innovators’

ROUNDTABLE Interviews By Charles Warner and Robert Yehling

What happens when ten top innovators cut loose with their ideas and visions? Here are their answers in this Innovation & Technology Today exclusive They create many of the ideas, products, services, systems and processes that drive our economy and industry. Some work from within large organizations; others are entrepreneurs. All care deeply about our future, and they sit in prime position to effect change. We polled ten innovators on a variety of subjects — including their own creations. In some cases, we asked the same questions of them. Our group includes: ■ DARREN JONES — Alpine Innovations; manufacturer of optics and electronics accessory products ■ SEPTEMBER DOHRMANN — CEO Space International; serving more than 70,000 CEOs and entrepreneurs ■ MICHAEL SYKES — Enertia Homes; leading manufacturer of efficiency homes ■ JOHN HOURIGAN & ANDREW FEMRITE — Arrow Electronics; Fortune 150 global provider of products, services and solutions 28

Some of their answers might surprise you. Others may leave you thinking, “I thought that was happening, but …” We trust you will find their responses as engaging and informative as we did. INNOVATION & TECHNOLOGY TODAY: What came first with your company’s core business — innovation or technology? What is the core situation, issue, or opportunity toward which you are positioning your company? with more than 100,000 supply channel partners ■ GUS JOCKERS — speeCup; voiceactivated Bluetooth speaker ■ CHRIS VOSS — The Chris Voss Show; one of Forbes 50 top U.S. social media influencers ■ WENDONG ZHANG — Edifier; Chinese audio product manufacturer with a green technology emphasis ■ ELIZABETH ALLEN — MarketSmartz; national innovator in social selling ■ LARRY BOCK — U.S.A. Science & Engineering Festival; helped to start 40 bio-tech companies

Innovation & Technology Today

SYKES: Innovation. We found a material that was cheap, abundant and renewable, and stored energy, so we proceeded to design houses to use it. Our efficiency comes, not from insulating like 99% of other houses, but from an entirely new source — thermal inertia. So we had to write our own equations, develop the laminated Green Building Block and devise techniques that work. JONES: Alpine tries to position our products in a delicate balance between creative ingenuity and (Continued on Page 30)

Winter 2013

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economical practicality. We are making an effort to offer more of our products in kits and bundles in order to add even more value for the consumer. WENDONG: Edifier has been designing and manufacturing audio products, respectively speakers and headphones, for the past 17 years, bringing a new listening experience to our customers. With a strong focus on extraordinary audio and design, our goal is to lead the evolution within the industry. For instance, our Spinnaker speakers stand 15” tall and are abstract shaped to enhance the sound projected to the listener. We value design as a form of aesthetics and function. We will always find ways to incorporate it into our products. ALLEN: As I say in my upcoming book, Driving Demand, today’s new marketing and sales paradigm is based more on one-to-one relationships and the use of social networks to identify and generate new business. This is why it is so critical to get everyone — not only sales people, but those from every part of an organization — actively supporting the company sales efforts. We’re all in sales now, whether or not we like it! FEMRITE: Innovation. We’re in the middle of what’s being called The Internet of Things. It’s a huge tidal

Wendong Zhang, Edifier 30

Michael Sykes, Enertia Homes wave, and we’re starting to hear from every supplier now. They’re looking at ways to connect all of the standalone electronic devices today to each other, in a bigger connectivity scheme. What it means to you and me is that we’ll have more gadgets, smarter cars, smarter homes, all connected through the Internet. I&T TODAY: How have social networking, social selling, the Internet and the like changed the playing field — and how have you evolved your customer and client services to account for those shifts? DOHRMANN: Social networking has taught us so many things on how to “play” with our customers and clients. We had to learn the hard way as to what we were doing wrong. We learned to connect with the customer in a more humanistic way. We just show up as we are and we communicate with our customers and clients as if we’re good friends looking to help one another out. Instead of “selling,” we share information. If it’s interesting and shareworthy, it gets shared and draws a crowd. HOURIGAN: Arrow looks at all of this, the Internet of Things, as an allencompassing analogy to what’s going on in marketing commun-ications, where the company website has changed from primarily an information source to primarily a

Innovation & Technology Today

transportation hub. At Arrow, we believe by 2020, 50 billion things will be connected to the Internet. This is where it’s going. We’re right in the throes of it, because our suppliers are in the throes of it. If you’re a company with a good financial foundation, you can go for the possible. Let’s face it: the shorter list today is what technology cannot do. JOCKERS: We have chosen our relationships very carefully and didn’t expand too quickly. Our experience taught us “slow and steady wins the race.” We selected to work with a public relations firm, Orca Communications, and not a marketing company. Orca led us through the PR maze to a broad range of low- or no-cost avenues to enhance the recognition of our speeCup product and the iCreation brand name. VOSS: It’s changed and disrupted everything. Twitter is faster and better than news. Recently, it was announced that Google is bigger than the magazine and newspaper industries. Companies have had to sit up and take notice that consumers now have a say and input that gets noticed. It’s changed how companies monitor and gain an understanding of how consumers use and view their products. The power is now with the people instead of big media. Companies large and small are learning to adapt to social media, to understand it, manage it and find ways to utilize it. I think small mobile app makers have driven a lot of innovation and disruption. JONES: We focus on giving customers what they want, and we try to give it to them where they expect to find it. When it comes to social media, customers expect twoway interactions with a brand instead of pushy, me-first messages. We’ve changed our social media approach from trying to be (Continued on Page 32)

Winter 2013

R&D Spending on

(Continued from Page 30)

DIGITAL SOLUTIONS BY INDUSTRY You know innovation is alive and well when industries invest in new technology and solutions with an eye toward tomorrow. During our discussions with our roundtable innovators and other CEOs and industry leaders, one of their principal areas of focus was digital solutions. As the graph below shows, the shift in R&D spending in 10 top industries has certainly headed in that direction:

Total R&D for Digital Solutions: $52 BILLION (Dollar amounts in billions)

HEALTHCARE $ 13.8 COMPUTING & ELECTRONICS $ 9.7 SOFTWARE & INTERNET AUTOMOTIVE INDUSTRIALS CHEMICALS & ENERGY AEROPACE & DEFENSE CONSUMER TELECOM

$ 7.7 $ 6.5 $ 4.7 $ 2.9 $ 2.6 $ 1.7 $1

OTHER $.9

Digital Solution Spending as Percentage of Budget 0.4% Others Computing & Electronics

5.7%

Automotive

6.3% Telecom Industrials Chemicals & Energy

15%

Software & Internet

6.9%

12%

7.1% 7.2% 7.9%

10%

Aerospace & Defense

Healthcare

Consumer

interesting to trying to be interested in our customers. ALLEN: I focus on working with companies with my proprietary CODE program, which I developed a decade ago, long before social selling was a term. It is so bloody important for management to really engage, and that’s because they have the greatest wealth of knowledge and experience to share. CODE is about learning new attitudes, skill sets and behaviors, which have almost always been mastered by those in control or with the greatest influence inside of companies. When leaders tell the war stories, when they talk about what they learned in specific scenarios … no one carries greater credibility. Today, I ask my clients and seminar attendees a question: How does your relational inventory — the relationships you have — translate to social networking? That’s a question for every employee of every company. Why? Let me put it this way: if you’re an attorney, accountant or salesman, your mobility for moving somewhere else, or to another practice, is directly proportional to your ability to bring your clients along. I&T TODAY: What specific dynamics make the U.S. such a global leader in innovation? JONES: We have an innovative culture. We’re encouraged to sacrifice and take risks in order to follow our dreams, and society applauds outside-the-box thinking. FEMRITE: I don’t see an end to new markets. That’s my viewpoint, the approach Arrow takes, but also the American spirit. The possibilities are very broad and open to your imagination. Look at lighting. We talk about lighting as an end market — it’s been around since Edison — but it’s really technology that is an end market, driven by LED the past (Continued on Page 34)

Innovation & Technology Today

Winter 2013

(Continued from Page 32)

few years. There are LEDs everywhere — flashlights, medical equipment, our homes. When my kids grow up and buy a home, they’ll never have to change a light bulb. BOCK: I think it’s a conglomeration of academic institutions, a cluster of support facilities, an infrastructure that supports entrepreneurs, and a few very successful success stories — especially when located in specific areas. I can think of five right now — the (San Francisco) Bay Area, Boston, San Antonio, San Diego, and Washington D.C. It’s amazing how many entities a few success stories can spawn. You can trace back the San Diego biotech community to one company, which spawned about 50 companies — which spawned 50 more. I even use the example sometimes of Warsaw, Indiana. Who’s ever heard of Warsaw, Indiana? Well, you have if you’re in the orthopedics implant world. One company in Warsaw started that industry, which spawned another, which spawned a few more … JOCKERS: We in the United States are in the unique position of having nearly two generations grow up with a computer or even higher-level device at their disposal. Home computers became commonplace in the mid-1980s, and we’ve used them as a tool, not a luxury item. Mobile

John Hourigan, Arrow Electronics 34

with others — which is the foundation for every idea and dream to be built on. I&T TODAY: What changes have you seen in the innovation climate, and what specific innovations have been true game-changers?

Andrew Femrite, Arrow Electronics

devices have increased the speed of communication like no other tool we’ve experienced. Americans seem to have little or no fear of who might be looking over their shoulder and, instead, press forward toward new goals and objectives. Given this set of circumstances, along with the very high speed and easy access to the Internet, we continue to lead the world in new design and innovation. As quickly as the globe is shrinking, and collaboration on projects expands between countries, one has to wonder how long this will continue. DOHRMANN: We’re expanding our circle of influence and narrowing the so-called six degrees of separation. For me and my business, that’s very important, as new relationship building is the key to our members’ success. It’s not what you know anymore, but who you know. Social media is closing that gap. Through that, more ideas are being manifested. Take Pinterest, for example. Who knew all this amazing stuff was out there in the world? Before social media or even computers, it would have taken a person a lifetime to see all that we are subject to just on Pinterest! I think the U.S. is bringing a more innovative way to connect

Innovation & Technology Today

VOSS: Everything is moving faster and faster in technology development, and we are going through a huge phase of disruption in our lives and economy. Many new things have come out of that disruption, and there will be more. Paradigms are being challenged and re-defined. WENDONG: Wireless is the issue and the solution. Many of our customers are looking for wireless products; however, the challenge to wireless is developing products with exceptional sound quality. JOCKERS: Hand-held wireless devices including smartphones and tablets, specifically. They have had a tremendous impact on the way business is conducted for just about every facet of our lives. Doctors and nurses, plant operations, energy providers, not to mention the uses by businesses — all because a company named Apple invented a marketable touch-screen smartphone and tablet that changed the way we do things. Hand-held smart devices make (Continued on Page 36)

September Dohrmann, CEO Space International Winter 2013

(Continued from Page 34)

portable computing indispensable. Nearly every day, we hear about new ways that these devices are being used. HOURIGAN: There’s ever-increasing electronic content in cars. The focus on connected cars is a perfect example of the Internet of Things — one of dozens, or even hundreds, but a big one. The growth areas are growing because there’s electronic content in literally everything we’re dealing with. Another random example that comes to mind is wearables. It’s a brand new segment that sprang out of nowhere the last couple of years. People want them to be connected to the Cloud, their smartphones. Look for a lot more of these trends to spring up and become big business, quickly. That’s a game-changer. I&T TODAY: How do you think our recovery from the economic downturn of 2008-10 has sharpened our abilities to innovate, adapt, and find our customers? DOHRMANN: If anything, it’s taught us to connect and team up with others. During the 2008-2010 period, we saw that only the strong survived … and companies making movement to improve. I see it as a purge in some sense. It’s caused us to remove the garbage and get clearer about our messages, and has pushed us to connect with our customers

Gus Jockers, speeCup 36

Chris Voss, The Chris Voss Show differently, more personally. Experience is another thing that has been reviewed by many companies. What type of experience are we creating for our customers? This covers such a wide range of needs and areas within a business. Just ask yourself the question: What type of experience am I providing? This simple question causes you to look at every touch point with the customer, and allows an opportunity to make improvements where improvements are needed … again, for the customer. JONES: The recession made businesses aware of how minimal the margin for error really is. Companies that managed to push themselves through the recession emerged with more efficient processes and a sharpened vision of who they wanted to become. JOCKERS: I believe we are experiencing this exact challenge today with our speeCup. We learned that we have to do much more with less people, and there is less room for various layers in the distribution chain. Consumers have learned new ways to get more for less, and this has had a negative impact on the retail chains. People are getting sharper and working smarter before making a purchase decision. VOSS: I think technology has

Innovation & Technology Today

gotten better, as has finding and identifying it. It really was something that technology needed to solve. It also helps that most people are online now. HOURIGAN: During 2008-9, our design-win activity was at an alltime high, even with the downturn. What it was saying to us was that manufacturers wanted to be ready to rock and roll when the downturn abated. FEMRITE: There was also a splintering, with a lot of start-ups emerging as larger companies shed some of their human resources. They banded together their ideas and formed small companies. HOURIGAN: That’s when Arrow got into the reverse logistics business or value recovery, refurbishing or harvesting the still useful parts of products. We wanted to emerge stronger from the downturn than when we entered it. No one wants to see a downturn, but you have to operate from within the economic conditions you’re presented. We saw it as an opportunity. Given we’re a $20.4 billion company, we saw a way to expand the services side of our business. I&T TODAY: Within your industry, what one or two developments may (or will) impact both organizations and customers — and how are helping to drive them? WENDONG: People forevermore will want to hear their passion, whether it’s music, home entertainment, computer specific, etc. We see the trend continuing toward unique design, versatility and supreme quality. Edifier’s focus and commitment has been and remains design, audio and evolution. BOCK: I think the area of 3D printing additive manufacturing, which gives anybody the ability to manufacture a product from concept. The idea that anybody can conceive of something, build it, make it, even (Continued on Page 38)

Winter 2013

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have a store with it … it’s an amazing revolution. There are a lot of derivatives in that technology, too. Another, though not exactly new, is advanced robotics. Then there’s the ability to make more personalized drones to do things like survey farm fields and types of photography. I am also looking at meta materials, which can bend electromagnetic radiation — bending light around an object. These have all new applications in advanced communication technology. And finally, connecting the brain to an electronic device to control devices. ALLEN: I’ll answer that with a little story. A friend of mine who is an expert on social media strategy constantly tweets only facts, data points and sound bites very specific to social media interests. He keeps his updates extremely focused, reinforcing his role as an expert. He connects with media/ghost writers/editors that now cite him as a story source/fact provider when developing content for major news outlets, further reinforcing the value of his professional brand. That’s where we are headed in business and in selling. A statistic I like to cite is that, in 2019, 60 million people will be engaged in some form of contract selling — half of the number of adults working in the U.S. today! JONES: The optics and electronics

Darren Jones, Alpine Innovations 38

Elizabeth Allen, MarketSmartz industries are always changing, and consumers love innovation because it means better products and better value. As a company with a creative line of accessories for these industries, Alpine’s task is to know what’s coming down the pipeline of innovation and to develop products that solve problems that may not even exist yet. JOCKERS: Wireless Local Area Networks, once found mainly in commercial facilities, have evolved now to home use by a very broad user base. Through a wide range of high-speed Internet providers for home use, WiFi networks are commonplace in homes across the country. This wireless access to the Internet opens a huge opportunity to sense, report and control various activities and functions in homes, businesses and vacation property remotely. FEMRITE: The Internet of Things. Everything will be connected to everything else. DOHRMANN: First, utilizing our own apps to enhance the customer’s experience during our event. Such a simple little box that shows up on our phones and pads, but holds a tremendous amount of power! Second, customer connection. We’re

Innovation & Technology Today

building new ways to build relationships with our customers’ direct relationship and for our customers’ needs. We’re looking at creative ways to make this experience more intuitive and ahead of the innovation curve. VOSS: Where mobile is going on its influence and sensors. The Age Of Context, by Robert Scoble and Shel Israel, has opened many eyes on where sensors are going and how they will monitor and manage our lives. SYKES: We are past Green. The new keywords are “Resilience” and “Survivability”, because of the violent weather we cannot stop. This is a great improvement, actually. Houses are being built to live in for an extended crisis. Before, they were just “flipped” for profit. Recent events show that insurance does not begin to pay the cost of rebuilding, much less the pain of waiting for a contractor, and complying with the new regulations. BOCK: The progress of science and innovation, all kinds of innovation, is moving so fast that it’s difficult for science fiction people to keep up! We’re achieving the reality faster than they can write it, in some cases. ■

Larry Bock, U.S.A. Science & Engineering Festival Winter 2013

interview

Innovation & Technology Today Conversation with

GARY SHAPIRO President and CEO, Consumer Electronics Association

INNOVATION & TECHNOLOGY TODAY: What are the biggest innovations passing through consumer electronics? GARY SHAPIRO: The first big innovation is the Internet of Things, or connected objects that will help us lead more integrated lives. We’re seeing it already, especially in manufacturing where machine-tomachine (M2M) connections help speed up the process. But it’s also becoming part of our daily lives. For instance, Starbucks recently introduced a new Internet-connected coffeemaker in its stores that tracks customers’ drink preferences. There are even connected toothbrushes that reinforce good dental hygiene. Also, we’re fast approaching an era where cars drive us, not the other way around. We’re already seeing driverless functionality in cars, with functions like automated parallel parking, lane drift assist and collision avoidance technology. Just about every major automobile manufacturer now has a driverless prototype, and they’re working to make fully autonomous cars available to everyone. At the 2014 International CES®, nine of the top 10 car makers will be on hand showing their latest innovations in driverless car technology. I&T TODAY: Which product categories will be most noteworthy at CES 2014? GS: Digital health and fitness technologies are garnering a lot of attention at this year’s show as more people use their mobile devices to track their health and wellness. More, digital technology is redefining health care, from tele-health systems that offer high-quality medical diagnostics for acute care patients, to apps that give both doctors and patients access to complete medical histories and comprehensive biometric data. Another significant consumer tech category is 3D printing. This technology has gained a lot of traction recently, and it continues to grow. While it’s widely used 40

in manufacturing, we’re now seeing it in the consumer space. Both artists and individuals can use it. I predict that very soon, every interior designer will have his or her own 3D printer, and that’s just one example. Ultra High-Definition (Ultra HD) display technology will also be huge. Ultra HD offers four times the resolution of current highdefinition TVs, and we’re going to be seeing it more and more in people’s homes. I&T TODAY: Customers’ demands have become specialized and specific the past few years. How do you as a trade association address the ever-growing access to information and knowledge? GS: Consumers are more informed than ever, and they want more information, so it’s important for companies to understand customers’ needs and desires. One of the ways my organization, the Consumer Electronics Association (CEA)®, serves our members is by making all of our market research and publications available free to all members. We also have a team of librarians that can assist members with any research needs. We also know that Millennials — a main driver of consumer electronics purchases — get most of their information on products from their friends (62 percent), through social media and the Internet (63 percent). A lot of them also use their smartphones, especially to look up reviews and price compare when they’re in the store. So we present our information in a number of ways, from online to print, apps and digital publications, and we get everything out to the public using social media, including Twitter, Facebook, YouTube, LinkedIn, Google+ and Instagram.

Innovation & Technology Today

(Continued on Page 126)

Winter 2013

Digital Technology,

meet THE SMART FARM A long-held family operation in Kansas turns to new technology to improve yields â&#x20AC;&#x201D; and have more fun doing it By Gordon Lee

Colby, Kansas

We have arrived, 39° 23’ 10”N 101° 02’12”W, elevation 3,170 feet, at the SPH Farm shop headquarters in Colby, Kansas. We’re here to find out about the Downing family farm’s long history of precision farming and to see firsthand some of the most innovative, high tech, farming equipment in existence today that they have developed and created. Harlan Downing grew up on a farm in northwest Kansas in the 1970s. As with most Midwest farm operations, he and his family spent a lot of time driving tractors, tilling up the soil in preparation for seeding the next crop into the ground. Today, along with his wife Mylinda, and their two sons, Brian and Michael, they own and operate a family partnership, SPH Farm, and have eliminated soil tillage by adopting the no-till concept. Those long days and nights of Three generations of the Downing family, struggling to steer the equipment on the SPH Farm for 100 years. in a straight line are only a early adopters, the Downings have memory. Instead, they are restoring been developing and improving on life back into the cropland they own no-till farming practices, as well as or operate for others by building leading the way in precision healthy soils alive with earthworms agriculture since the onset of GPS and microorganisms. navigation guidance systems for How? The answer to the question agriculture equipment a decade ago. provides one of the most In the 1990s, the highest accuracy progressive, dynamic stories in GPS satellite signals were reserved for larger-yield farming today. True 44

Innovation & Technology Today

use by the military. In May 2000, when President Clinton ordered the military to turn off the intentional degradation of the satellitebased GPS transmission signals, the race was on to develop integrated auto steering systems for farm tractors. In April 2002, Harlan quit driving a tractor and has not needed to since. He installed a new GPS-guided Auto Pilot system that could steer his tractor and the machines it pulled to within one inch of repeatable accuracy down the same path. The hands-free technology worked day or night, on dry, moist or frosted ground. With that dramatic start to precision farming, and a subsequent realization that local area producers were not ready to accept the new technology, Harlan and his family (Continued on Page 46)

Winter 2013

5th Generation Family Farming Operation

Professional, Responsible, Experienced and Committed Agriculture Production Team

Operating in front of the leading edge of advanced agriculture production concepts and technology while totally focused on Sustainable Development Have you ever wanted to be involved in production agriculture or maybe restore your family’s heritage on the farm from earlier generations? Our operations are welcoming inquiries from select private investors that want to be involved with sustainable agriculture. Opportunities exist in land ownership, cattle production, research, strategic planning, financing, and technology development. We are always open to new ideas, solutions and opportunities. Experience being part of a unique, professional group that you can grow with at your own pace and comfort level while helping maintain, improve and restore the earth’s most nurturing asset, the soil!

We cooperate with some of the best agriculture producers & suppliers in the world including: Cozza Cattle — Colby, Kansas

Carpenter Cattle Company Inc. — Brewster, Kansas

Visit us at: www.sphfarm.com

(Continued from Page 44)

pressed on. By networking with the few operations across the U.S. that also owned the new GPS technology, the Downings found ways to use the high accuracy guidance system. They pushed the envelope on their farm, which has since proven to continually improve soil quality while simultaneously maintaining much higher sustainable yields. Fast forward to 2013. Harlan’s son, Brian Downing, sits inside a large John Deere tractor cab. The GPS auto steer feature is just a small part of this rig. It’s impossible not to look at the neatly laid-out touch screen displays, digital gauges and custom controls throughout the cab. A glance out the rear window reveals the new fertilizer machine he is about to roll out for its first launch. It is one of the two new high-tech machines the SPH Farm operation has built in the last year. When viewing and learning all of the functions, safety systems and missions this impressive creation is capable of performing while rolling across the farm fields, it seems the machine can pass for a modern-day space ship. The machine, is the future that agriculture needs to realize if the world’s human

population reaches the predicted 9 billion by the year 2050. The two new fertilizer rigs at the headquarters were designed by Brian Downing, engineered by his friend Jeff Bitton, and then built by

the entire SPH crew in their machine shop. Whatever happened to down time during the frigid winter months on the Great Plains? The rigs were built to precisely apply plant nutrients uniformly across the entire width of the applicator into the soil. The applications are based on the digital, GPS oriented, prescription application maps created from analyzing results of the entire database of information the

operation gathers and saves. With reasonably obtainable yield goals as a target, the fertilizer is not only applied as needed across the field per data-based recommendations, but also precisely and strategically placed into the soil geometrically. This allows the roots of each plant to reach the bands and best utilize the nutrients. As with all other uses of smart technology in the business world, human brains and ingenuity are ultimately more important. In this case, the Downing family’s keen knowledge of root systems enables the technology to work optimally. The same John Deere processor that auto steers the machines across the field also controls the machine’s hydraulic driven pumps at variable rates. It can blend different formulations from up to five products, all carried on the machine in separate tanks. The processor takes input from the custom prescription maps and blends the prescribed rates on the go. It also saves and produces “as applied” maps and data that allow Brian and his colleagues to overlay the application maps on top of the (Continued on Page 48)

The GPS auto steer systems in SPH Farm’s tractor cabs (center) has helped to create larger yields, better planning for rainy and dry conditions, row planting to within 1-inch accuracy, and less reliance on fertilizers, herbicides and pesticides.

Innovation & Technology Today

Winter 2013

Fine-Art TV Concealment experience the extraordinary in the ordinary

Since 2001, VisionArt has provided the interior design community with a profitable and style-conscious solution for concealing a flat screen TV. If you have a size, shape, frame or art piece that is outside the scope of the VisionArt Galleries, we will work closely with you to make your concept a reality. We enjoy the creativity and originality that comes from our interior design partnerships and take great pride in producing one-of-a-kind results.

visionartgalleries.com

866.432.4353

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harvested crop production maps to study how well the initial decisions came out. SPH Farm applies the precise formulations of soil nutrients, using electronics and innovations that have come together after years of building, operating and repairing a series of other similar machines. When they tell the story, it’s almost like hearing a mid-America version of Edison’s long prototype path to the incandescent light bulb. But the end justifies the means: These machines utilize precise placement and uniform application. They do so as needed, when needed, maintaining profitability while building soil quality levels that improve each season. This is a refreshing departure from the usual soil quality story today, of farmlands leached of the topsoil nutrients they once possessed due to excessive same-crop farming, loss of topsoil, over-fertilizing, and an absence of natural aeration and fertilizing sources such as earthworms. Back to the technology. Using highly accurate RTK-corrected GPS autopilot systems, every piece of rolling stock equipment that SPH Farm operates passes through the fields down the same controlled traffic paths, year after year, with repeated accuracy to within an inch. The large John Deere tractor and the new fertilizer applicator machine

ride on a rubber track system. In fact, every machine on the farm is equipped with tracked running gears or fitted with rubber tracks. Every track bears the weight of each machine in the same configuration,

“This level of operation is not for everyone, but in time, it may need to be more widespread throughout the industry.” — Harlan Downing, SPH Farm always passing across the farm fields down the same 40-foot centered paths. The controlled traffic patterns are key to the success of SPH Farm’s no-till operation. By controlling traffic patterns to the same 8 percent (or less) of the entire field, the 92 percent of the soil not compacted by

vehicles has developed into lush, rich and productive soil. The soil has become alive, full of earthworms and microorganisms. It would likely remind any old-time farmer of the family farm 60 years ago, before agribusiness kicked in full-force. And the soil quality keeps improving. All of this is happening in a semiarid region, where total annual precipitation is a major factor for agriculture production. The soils in northwest Kansas allow roots to grow and develop down to six feet. Add that to the soil’s moisture holding capacity of up to a six-foot soil moisture profile and, in theory, there is enough water to grow one good crop. The Downing’s healthy, lowcompaction, high-organic matter soils soak in and absorb rain from the overly intense thunderstorms of recent years, while many other farms suffer flash flooding and excessive soil runoff. It is not uncommon to receive in excess of 2 to 3 inches of rain during one quick violent storm. “The goal,” Harlan Downing said, “is to hold and store each drop of moisture right where it falls when it falls. Rain water running off a field and down the ditches and draws has no positive values, and our operation goes to great efforts to keep all of it in the fields.” SPH Farm also utilizes remotely located, self-contained, six-foot deep soil moisture probes. The probes (Continued on Page 50)

Thanks to smart farming, the Downing family has yielded many truckloads of top-grade crops while catching the eyes of farming operations nationwide with their innovative techniques and technologies, hand-built in their shop in some cases.

Innovation & Technology Today

Winter 2013

(Continued from Page 48)

Home-Based Weather System A major factor in smart farming is one with which all farmers have concerned themselves for centuries — the weather. What about when they walk inside? Now, farm and homeowners no longer need to turn on the TV, watch the clouds and winds, check the internet, or rely solely on their crackly weather band radios. One company, WeatherHawk, has created a seven-sensor home system that provides exterior weather measurements. Wind speed and direction, barometric pressure, relative humidity, outdoor air temperature, rainfall and solar radiation levels are all measured. The system is easily installed on solar and wireless systems. On the farm, WeatherHawk data assists with such activities as: spraying operations (gauging wind speed for overspray); crop management (determining best conditions to seed, fertilize and apply pesticides); hay production (optimal conditions to bale before rains); and livestock (gauges oncoming weather and rainfall).

monitors soil moisture content and help determine how much, if any, irrigation water needs to be applied. It allows the operators to watch and learn how rainfall and/or irrigation water changes the soil moisture profile, what the crop’s water uptake is, and to compare different cropping rotations to each other for water use efficiency. The solar powered units, which transmit back to a server via cell phone modems, also contain remote weather stations to monitor and record wind, temperatures, rainfall, and relative humidity. The technology network only gets better. All pivot irrigation sprinkler systems are monitored and controlled with cell modems that communicate back to servers monitored and controlled with iPhones, iPads or PC’s. With iPhones, the crew can shut off irrigation wells remotely and instantly in case a sprinkler stops moving, a storm moves across the area, or if it is just time to shut the wells down. Another tool Downing and his family use to collect data is the shooting of digital aerial images of their crops from the company’s aircraft. A view from the sky during various stages of the crop’s growth cycle is invaluable in discovering troubled areas, as well as exceptional good zones. Which leads to the decision-making process. Conference rooms and corporate offices might base decisions off economic drivers or the landscape of the customer base, but SPH Farm’s decisions are literally landscape-based — and driven by the ultimate resource, nature. All of the farm’s operations and decisions are technical, based off real-time that includes planting, applications, harvested yields, weather, soil sampling and plant tissue testing. Everything is georeferenced, based off highly accurate RTK corrected GPS signals. The farm utilizes the information to create a large database, which is then used throughout the production cycle to assist in management decisions.

Innovation & Technology Today

Historical data is incorporated in current data to form a powerful knowledge base that SPH Farm uses on its never-ending search for the ideal blends and rates of crop inputs. “No applications of fertilizers or pesticides are made without reason and justification,” Harlan Downing said. “Common sense always prevails.” Communications is also key. All of the buildings, homes, offices and rolling stock fleet carry new digital UHF two-way radios. All key employees carry iPhones loaded with apps to monitor weather forecasts, access remote data stations, markets, job lists, maintenance records, grain storage monitoring, irrigation systems, and equipment condition warnings. Naturally, they also use their iPhones as phones, to keep in contact with each other, suppliers, work groups and the world in general while on the go. All of the John Deere equipment is equipped with “JDLink” modems and software. These units link everything the equipment is doing in the field back to the office, as well as tying into all of the farm’s John Deere equipment. “This very powerful technology saves so much time, keeps everyone in the loop, and increases the efficiency of everyone from the office to the field,” Harlan Downing said. For all the smart technology on the state-of-the-art farm, Harlan and Brian Downing both pointed out the most important resource of all to their success: the professional group of people with which they work every day. “This level of operation is not for everyone, but in time, it may need to be more widespread throughout the industry,” Harlan said. “It takes a tremendous amount of work, planning, understanding and coordination among the whole group. SPH Farm focuses on sustainable development, and this group understands the big picture of why the farm operates like it does.” ■ Winter 2013

interview

Innovation & Technology Today Conversation with

Martin O’LOUGHLIN Brilliant Integrated Technologies

Smart Irrigation Under Your Control

INNOVATION & TECHNOLOGY TODAY: Martin, you have an illustrious background in something other than nextgeneration irrigation control systems. Could you tell us a bit about it, and how it sparked your interest in green technology? MARTIN O’LOUGHLIN: I was originally a Navy pilot, and went to Top Gun school, so I had some familiarity with technology. When I was in the Navy, I was stationed in central California, so since the mid-80s, I’ve had some water sensitivity built into me. As I flew planes around the West and watched the changes in landscapes, lake sizes and reservoir levels, I became more determined to do something about it. I&T TODAY: That happened with a fortuitous meeting roughly two years ago. MO: Yes it did. At the beginning of 2012, Dan Kennedy, who I’d known, introduced me to Lawrence LeBeau, who was developing a weather-based irrigation controller, and had installed a couple of prototype systems in Utah and Phoenix. I took one look at it and said to them, “Yeah, let me help you guys get a business going that can help save the planet.” That’s how and when Brilliant Integrated Technologies was born. I&T TODAY: You began with an innovative product that works on everything from smart farms to school campuses to city parks. How does it work? MO: When we map out a site, we look at the vegetation, wind direction, composition, humidity and recent rainfall in 16 different zones, and that information is resident in our server. Every night, we gather weather data, look at the vegetation type, and have a sophisticated evapotranspiration algorithm that adjusts the water needs. We send that information over the web to the controller, which then directs the zones on how many minutes they should water during the day. 52

I&T TODAY: How did you go from that larger use to the big splash BIT made at the CEDIA home automation expo this past summer? MO: We were able to tighten things up a little bit and make it a heckuva lot cheaper to the homeowner. We found an inexpensive way to do sophisticated calculations in each of the watering zones, and put it into a small package. But the biggest thing we did was design a graphical user interface so you can command our irrigation control not only from a webenabled device, but also with a Control 4 home automation control tablet or their website. I&T TODAY: What kind of water savings are customers experiencing? MO: Between 20 percent and 50 percent. This is because every night, our controller looks at what really happened weather-wise, and recalibrates the water usage for the next day. We use real-time data, not historical temperatures. I&T TODAY: Now that BIT has become known in the home automation world, what will happen to your original municipal/industrial/commercial plan? MO: A vast area of the world needs to save water, and the cost has gotten out of control. Whether they’ve gotten into home automation or not, they will benefit from a stand-alone irrigation controller based on a weather model. These are the places like homes, parks, schools. We have controllers that are proven to work on the smart farm and municipal space, which is where we started. They’re custom crafted, robust industrial pieces of equipment. We’re probably going to see our footprint in these areas grow because of the notoriety our technology is getting in the homeowner space. ■

Innovation & Technology Today

Winter 2013

HOW

TRAVEL Became PORTABLE, MOBILE & INSTANT By Rosemary Oâ&#x20AC;&#x2122;Brien In the not-too-distant past, before social media and the internet crawled into all of our homes and offices, setting up a trip involved a series of chores. You either had to pass the chores involved to a good travel agent, put one of your staff on it, or call airlines directly to find the best price and book your tickets. Now, all you or your staff has to do is shimmy up to the computer, smartphone or tablet and begin searching. Within minutes, you can compare prices for airlines, car rental, hotels and destinations from airlines and aggregators alike, book your trip, and sit back and dream of that vacation to Orlando or business trip to meet your team in Kalamazoo. The best part? You donâ&#x20AC;&#x2122;t have to go it alone. The internet and apps have become the best ways to discover the best place to eat while you are away, the best show to see, or even where you can find a nail salon for that nail you chipped grabbing your bags from the airline carousel. We have moved from the role of the sheep to the shepherd. Instead of accepting what we are offered, we have the option of 54

waiting for a plane to take off. Many airlines, for example, have a few dedicated social media representatives who troll Twitter and other social media for irritated

choosing from the best deals with the click of a mouse or a trackpad. This is truly a consumerdriven industry. Our tweets speak louder than if we had just thrown a tantrum in front of the ticket agent upon hearing we were bumped from our flight. Now we can broadcast our grievances to the entire traveling world with a couple of clicks. Likewise, the travel industry has responded. They do not want to lose money from the posts of an irritated passenger, or worse, many irritated passengers sitting on a tarmac

Innovation & Technology Today

customers. When they find complaints, they often have the authority to fix what is wrong and turn that unhappy customer into a happy one. What does that same customer then do? Tweets their happiness to their hundreds or thousands of followers, restoring goodwill. (Continued on Page 56)

Winter 2013

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“Airlines have increasingly been catering to consumers’ on-the-go needs,” says Frank O’Brien, Founder of Conversation, a New York marketing agency and frequent business traveler. “JetBlue, for example, created a customer loyalty program that accumulates points every time a member travels. They also created JetBlueMobile, which expedites the check-in process by allowing their passengers to download their boarding pass directly to their phones.” These mobile capabilities, according to O’Brien, allow passengers to become more independent and less reliant on a customer service agent. He believes this creates a system of efficiency that maximizes the positive customer experience. Another active traveler and former senior engineer with Intel, comedian Dan Nainan, agrees with O’Brien. “I think the airlines and the travel industry in general are doing a fantastic job of adapting to the digital age,” he said. He believes different airlines are approaching the digital age differently, though. “Delta routinely wins the award for being the most tech savvy airline, and that’s a fortunate thing, because that’s who I travel with the most.” Nainan likes their website as well as their iPhone app, “on which I can do just about everything I need to do when traveling their airline.”

Our tweets speak louder than if we had just thrown a tantrum in front of the ticket agent upon hearing we were bumped from our flight.

••••••• Big airlines are not the only ones jumping into the digital age. Paramount Business Jets (PBJ) is a charter jet company that can set up a flight in as little as four hours’ notice, resulting in savings of up to 40% below current market

rates. “We realized that all brokerages in the industry are resellers so we decided to introduce a way for private jet clients to have representation in the marketplace instead,” according to CEO Richard Zaher. “Instead of buying really low and selling really high, we buy the best value for our clients because we have a fixed management fee.” PBJ clients have the option of calling 24/7, sending an email or getting a quick quote online. PBJ negotiates the trip on their behalf and then provides the client with various options based on their preferences. The client chooses the aircraft and PBJ processes the trip. Elasticity’s TripCase makes keeping all of your travel plans organized and efficient by utilizing mobile devices. Egencia notifies a traveler if a flight is canceled or delayed, and offers the services of a live travel consultant to help rebook the flight or find a last-minute hotel. TripCase, founded by the worldwide travel computer system, Sabre, works in a similar manner and includes helpful tips and tools. “Sabre has seen the industry evolve with every new technology invention and anticipated the needs of the mobile traveler years ago,” says Carrie Mamantov, TripCase’s Manager of Brand and Strategy. “We are uniquely positioned to connect the traveler with all the travel brands they use — airlines, hotels, car and travel agencies, just for a start.” After you have arrived at your destination, you need a place to rest your head. (Continued on Page 58)

Innovation & Technology Today

Winter 2013

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GetARoom.com was founded by the former CEO and President of Hotels.com, Dave Litman and Bob Diener. They came online after their Hotels.com non-compete clauses had expired. It offers the option of going online for deals or calling a live person for their unpublished rates. HotelCoupons.com began as a paper coupon book 31 years ago. Though it still offers the paper version at businesses and rest stops across the country, it responded to the digital age by creating mobile application and online options for the traveler who does not have access to the paper coupon book. “The addition of the HotelCoupons.com app to our family of products has really helped expand our market,” according to Mark Novak, Vice President and General Manager of HotelCoupons.com.

“While we still have those travelers who are loyal to our print guides, an overwhelming majority of travelers appreciate having access to the same deals right at their fingertips through the HotelCoupons.com app.” Hotels themselves are getting into the game by making checkins and check-outs easier. Marriott Mobile App allows Marriott Rewards Members at the Baltimore Marriott Waterfront and other Marriott properties to check-in the day before arrival time. Guests are automatically notified when their room is ready and can pick up their pre-programmed key card at the property’s expedited mobile check-in desk. “Our frequent guests told us they wanted mobile check-in, using their smartphones, to be widely available,” says Paul Cahill, Senior Vice President of Brand Management for Marriott Hotels. (Continued on Page 60)

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Dan Nainan is a comedian, world traveller and former Intel engineer. His extensive travel throughout the world, while making technical presentations on Intel’s products and keeping up his very busy performance schedule, makes him a big fan of mobile apps for travel. Here are some of his favorites, which combine free sites and those offering a small charge: nan.com www.danielnai

Flight Board

Kayak

Shows the arrival and departure info for any airport in the world

Airfare information

Momondo

Seat Guru

Fantastic for looking up flights when in other countries

Shows the best seat on every flight

Gate Guru

Drop It Off

Shows what kind of restaurants are nearby

Shows the closest FedEx box or FedEx office that is still open

Glympse

PlaceMe

Friends can immediately track where you are and how fast you are moving

Keeps track of flight gates; alerts you if there's any flight delay

Flight Track Pro

FlightAware

Keeps track of flight gate alerts you if there's any flight delay

Tracks exactly how far along your flight is so you know what time you will land

Gas Buddy

How does the travel industry know their customers’ preferences? Digital products such as Site Intercept from Qualtrics help them immensely. Site Intercept collects real-time feedback from onsumers on perks and amenities they are most interested in. “Just a few years ago, most customer surveys involved pen and paper,” according to Steve Brain, head of engineering at Qualtrics. “Today, empowered by technology, companies can receive customized and immediate feedback. This removal of delays allows businesses to get more accurate, detailed responses, and to act on them without waiting.” These are only a few of the many digital products offered by the travel industry. The industry has responded to the digital age by creating apps, interactive websites and offering deals that can only be found online, often with the option of dealing directly with a travel professional. It’s only a matter of time before someone creates an app that takes away our smartphone, puts it in its docking station and tucks us into our hotel bed. ■

MapQuest

Shows the closest and cheapest gas stations

Best GPS app calls out street names and lets you see where gas stations, hotels & restaurants are located

Yelp

Trip Advisor

Both great for finding local restaurants

GrubHub Delivery.com Eat24 Lets you order food from your hotel

Rome2Rio Shows how to get from one destination to any other in the world

– Rosemary O’Brien

ROSEMARY O’BRIEN is the author of two novels, Scraps and First Saturday. She also writes for websites and magazines, and is working on a book about pocket parks in New York City. For more information about Rosemary, visit www.PocketParksNYC.com and www.RosemaryOBrien.net.

The BOOMING Travel Market The portable travel dynamic is hot and getting hotter. One big reason is the massive platform shift of the industry to online and mobile solutions for travelers. The other is the renewed growth in the number of travelers â&#x20AC;&#x201D; and their comfort levels with using portable devices to plan trips.

(SOURCES: U.S. Travel Industry, Travel Effect, EMarketingEye.com)

In 2012, U.S. residents logged more than 1.6 billion domestic leisure trips and 400 million business trips. Domestic leisure travelers spent $854 billion on direct travel, and $1.1 trillion at their destinations. Business travelers spent $258.6 billion. For both business and leisure travelers, social media, online and mobile planning have increased dramatically. A look at U.S. travel industry statistics for 2012, showing the impact of online and portable travel:

87% 62% 45% 43%

use the Internet for some or all travel planning use the Internet to research upcoming trips source initial trip ideas on the Internet read reviews from other travelers

31% 24% 16% 46%

watch travel videos read travel-related blogs post travel reviews used Facebook or Foursquare to change locations while on vacation

33% 30% 29% 15%

used social media to change their original hotel bookings have used mobile apps to find hotel deals have used mobile apps to find flight deals have downloaded apps specific to their vacations

interview

Innovation & Technology Today Conversation with

WILL STEIN Philip Stein Watches

Keeping Time, Naturally

In a centuries-old industry where proclaimed innovation is often a rehash of another design, or something a wise soul first considered three centuries ago but had no technology to apply it, a new idea and application is news indeed. For the past few years, Philip Stein Watches has bridged the tricky gap between fine watch making, aesthetic appeal, luxury and affordability with watches that attune to natural frequencies. When wearing Stein watches, the technology inside the device picks up natural frequencies that surround us. It draws positive frequencies into our minds and bodies, creating better harmony in our lives. For those thinking this is farreaching, New Age branding, think again: the highest science, finest design and new technology have been combined to create both the product and its effectiveness. To find out more about these fascinating watches and wearables, we spoke with Will Stein, the man at the forefront of his family company’s latest achievement. INNOVATION & TECHNOLOGY TODAY: You’ve come up with something truly unique in your natural frequency technology. What is the state of fine watchmaking today — and why is true innovation so challenging in general? WILL STEIN: Fine watch making and the innovation in this industry is all about the material, finishings and of course how complex and complicated the movement inside a timepiece is. Everyone is competing in this space. Philip Stein is not at all about that, but rather about combining luxury, technology and well-being. We 62

have taken a lesson from what is known and speculated about the beneficial effects of natural frequencies on living and the adverse affects of man-made frequencies to offer a compact technology that brings the wearer back in tune with the natural ones. I&T TODAY: Could you talk about the principle behind the technology, who came up with the idea, and the observations in both the marketplace and people that led to taking this approach? WS: In principle, the technology works like an antenna. Inside every Philip Stein timepiece or bracelet is a metal disk, which is fine tuned to pick up specific natural frequencies that surround us and channels them to our body for our personal benefit. As a result, the body is tuned to function and operate at its best. You can compare it to a music instrument that needs to be tuned to produce better sounds. That is why our new brand ethos is, “Live in tune”. I&T TODAY: What specific natural frequencies are we talking about when it comes to time keeping, sense of time and timing rhythms? WS: The body behaves like a finely tuned machine. Every cell or system functions best at a certain frequency, making the relationship between human beings and frequencies very complex. When the body is exposed to a specific frequency or set of frequencies, it responds to them. We are surrounded by manmade as well as natural frequencies, and our technology picks up those natural frequencies instead of the manmade frequencies. I&T TODAY: What technologies have you incorporated into the watch designs to pick up and channel natural frequencies? Is there something in the structure that filters, or rebuffs, artificial frequencies?

Innovation & Technology Today

Winter 2013

WS: By allowing the body to gain full benefit from the natural frequencies that surround us, even if they are often buried in the noise of high power man-made frequencies that appear in the foreground, we believe that the body can better cope with stress or other negative impacts from our environment. I&T TODAY: When were you introduced to this technology? WS: My wife Rina and I were introduced to frequency technology and its benefits toward the end of 2002. We brought it through our Philip Stein timepieces to market in 2003. I&T TODAY: So you saw the direct benefits when used in timepieces, and were able to integrate the new technology into your products? Yes. I&T TODAY: Could you talk about your work with German watchmaker Stefan Kudoke on the Prestige Tastemaker and other watches? What has his involvement contributed to your overall line? WS: Even though Philip Stein is not about complicated movements, we wanted to show that high-end watchmaking, beauty, luxury, and well-being can be

combined. We met Stefan Kudoke in 2012 in Basel. We liked his work very much and asked him whether he would like to collaborate with us on a project. Since our technology is about natural frequencies, he skeletonized a movement for us, with Mother Earth in the middle of the dial, to symbolize nature and earth frequencies. This Limited Edition was a great success for Philip Stein. I&T TODAY: Another of your featured products is the Round Prestige. To give us an idea of watch construction and how elements work together, could you break down the relationship between the watch elements and wearer in how they create harmonic balance and focus on natural frequencies? WS: Our design or watch elements are not necessarily connected to the benefit of the technology. When we started, we had only one watch collection, which was not round, but oval-shaped with a Figure 8-shaped dual time zone dial. This watch design became Philip Stein’s DNA and Signature collection, which Philip Stein is known for. To this day, it is our bestseller and the watch that best establishes our brand identity. In addition to this iconic design, we’ve added round windows to the back of the watch, through which the technology disk is visible. We carried this design and staple over to our other watch collection, including the Round Prestige. ■

The Wonderful World of

3D PRINTING By Stephanie Clarke

Just when we thought we’ve seen it all, a new technology emerges that puts actual products in our hands — through an amazing printing process Recently, I was stunned when my eyes rolled across a headline: “Dad uses 3D printer to make his son a prosthetic hand.” I had to go back and read it twice. A father whose son was born without fingers spent two years searching for an affordable way

to give his son the ability to grasp, pinch, pick up, and hold items with a prosthetic. His search was futile. Then he came across 3D printing. Using the 3D printer at his son’s school, he was able to design and fabricate a prosthetic. The mere thought of this remarkable event tells me why this industry will grow in a steep curve over the next few decades. The applications almost seem limitless, and as many businesses strive to find intangible web-based technology, companies such as Afinia, MakerBot Industries, Cube, EOS, ExOne, Fab@Home, Materialise, Objet, Optomec, ReaLizer, RepRap, Shapeways, Stratasys, and 3D

Systems fight for the top spot in a tangible technology. What is 3D printing? Or, if you want to use its official name, Additive Manufacturing? In simple terms, 3D printing is just as it sounds: printing a solid object of nearly any shape using a digital model. Think about a sci-fi movie where a person lays in stasis while tiny arms quickly rebuild their musculature system. It’s quick as it replicates what once was there, or should have been. That’s 3D printing. Of course, at the moment, that kind of technology is still a ways away, but with industries jumping board such as architecture, engineering, (Continued on Page 66)

Photo courtesy of Afinia, Inc.

Innovation & Technology Today

Winter 2013

(Continued from Page 64)

aerospace, dental and medical fields, as well as dozens of others, the replication of an arm is not as far off as it may seem. Much of this will be determined by the materials manufacturers can use when making products through 3D printing. Currently, there are two types of materials from which most items are printed, ABS (Acrylonitrile Butadiene Styrene) and PLA (PolyLactic Acid). Opinions vary, but ABS is usually cited as slightly better due to its material integrity (it won’t shatter as PLA has a tendency to do). It can be

like an inkjet printer, except instead of ink, material is layered in successive patterns until an object is created. By the early 1990s, the new technology was proving, although imperfectly, that small parts could be built. When we reached the new millennium, scientists had created the first lab-grown organs for urinary bladder augmentation. Then, in 2006, manufacturing connected with mass customization. Two years later, that really expanded

gallon and reach 70 miles per hour. From a printing process? Can you imagine? It’s obvious that 3D printing technology has grown quite a bit in the last 25 years, but where is the boom? 3D printing is growing rapidly, but not yet at the explosive pace we’ve come to expect in technology. As Wohlers’ report noted, though, that explosion is just about here. In fact, most experts say 2014 is the year of explosive change in 3D printing, as many of the industry’s important patents expire. That will inevitably

The Urbee1 tapped for screws, as well as a The Urbee2, courtesy of korecologic.com surface that can be more easily finished in post-production. Let’s face it, though: replication of an thanks to growth in prosthetics and arm won’t be done with a rigid an opening of the door to smaller material. This is where the future companies and home-based becomes fun, as new recyclable, businesses such as artists, architects, organic, and potentially living cell and designers to print out physical tissues are used to create and inexpensive copies of their the future of medical surgery designs. In 2011 came the arrival of and manufacturing. world’s first 3D printed car, the Stepping away from sci-fi for a Urbee, and in 2012 a 3D printed moment, let’s look at the short prosthetic jaw was implanted in an history of the industry. The concept 83-year-old woman. began to take root in the 1980s with a In his seminal 2011 report, man most credited for developing the “Additive Manufacturing and 3D language of the modern 3D printer, Printing State of the Industry Annual Charles W. Hull. The eventual coWorldwide Progress Report,” leading founder of 3D Systems, Hull coined market analyst Terry Wohlers made the term “stereolithography”. We’ll predictions for a robust second half touch on that specific term later, as of this decade (see story on page 68). the 1984 patent defines current 3D He also focused on the Urbee car, a printing technology. big hit when it was revealed at the The concept has always been a TEDx in Winnipeg in late 2011. The simple one. The printers work much 3D printed car can get 200 miles per 66

Innovation & Technology Today

lead to a market flooded with more advanced and competitively priced 3D printers backed with big investors. For the current market leaders, 2014 will be a productive, yet scary year, as industry movement from Asia, more specifically China, is sure to jump on better technology at lower cost. What does this say for the market leaders such as Afinia, MakerBot, and Cube? Afinia’s initial growth could be linked to social media and web surfing, but in 2012 a review by Make Magazine listed Afinia in their “Ultimate Guide to 3D Printing,” with awards in Best Overall Experience, Easiest to Setup, and Easiest to Use. This helped the young company achieve a good position in the market. Said Mitch Ackmann, President of Afinia and Microboards, “We will sell no 3D (Continued on Page 68)

Winter 2013

The Ultimate Screen Cleaner for your Tablet

THE iSLIP

Leading mobile accessories cleaning innovator Cooper-Product.com has designed a revolutionary, innovative and patented electronic tablet screen cleaner called The iSlip. The iSlip combines fashionable microfiber® fabric with an elastic band that seamlessly attaches to your tablet so you never misplace it. Available in a variety of trendy colors and patterns, the iSlip is durable, can be washed and is affordably priced. The iSlip will also clean the glass of any electronic device including: Cell Phones, Laptops, Glasses, Navigation Screens and Cameras. The iSlip Screen Cleaner comes in a variety of sizes to fit iPad 1-4, iPad Mini, iPad Air, Kindle Fire HD 8.9 & Kindle DX, Samsung Galaxy 10.0 & Tab™ 2 10.1, Microsoft Surface, Nexus 10, NOOK® HD+, and any 8- to 10-inch screen-size tablet. Machine washable (up to 15 times), and warranted for 6 months of normal use, the iSLip is also an ideal platform for promotions, trade shows and marketing campaigns. Apple iPad, iPad Mini and iPad Air are registered trademarks of the Apple Corporation.

cooper-product.com

How BIG will

3D PRINTING become? 3D printing, also known as Additive Manufacturing, has become the darling of both industry and Wall Street. Everyone is talking about it, and more businesses are adopting 3D printing every day — one of the latest being McDonalds with its Happy Meal toys. What are the projections for this burgeoning industry? Very robust. Let’s take a look at the next year or so:

Estimated Consumer Spending on 3D printing: 2013: $87 MILLION 2014: $136 MILLION

Estimated Business Spending on 3D printing: 2013: $325 MILLION 2014: $536 MILLION

Then, watch what happens between 2016 and 2020, according to projections:

Total Estimated Industry Size 2016: $3.1 BILLION 2020: $5.2 BILLION

In addition, Gartner Group estimates that in 2015, seven of the world’s top 50 retailers will be carrying 3D printers. They have already made appearances in many Staples stores. — SC and RY

(SOURCES: Gartner Group, Wohlers Associates)

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printer before its time. There are no venture capitalists or public shareholders telling us to release products prematurely. We have our own schedule and we follow it.” Ackmann explained that the third factor in Afinia’s success has been due to their parent company, Microboards Technology, and their dedication to design, engineering, logistics, supply chain, infrastructure, and customer service. Customer service is key. Afiniacs, as their customers are called, lend support through praise on social media, while the company responds with good oldfashioned customer service. They are big enough to fill orders of hundreds of printers, while small enough to call each customer to thank them for their business. In an industry burgeoning with new young competition, Afinia is posed to hold fast and grow in the 2014 boom. Afinia currently holds the number three spot in market leaders, while MakerBot and Cube hold the top two spots. They will likely maintain the top spots due to strong public relations, name recognition, and support from their parent companies. We’ve discussed some of the obvious applications of 3D printing, mostly in the medical, engineering, and automotive fields. But, what is its future

across the full spectrum of industry and business? The potential seems almost limitless. Consider McDonalds, for example. I’m not talking about replicating a Big Mac, but what if you are at McDonalds and your child wants a specific toy with their Happy Meal, and that toy is no longer available? Well, McDonalds IT Director, Mark Fabes, has been seriously thinking of adding in-store 3D printers for such cases. "Countless families have had their enjoyment of a nutritious McD’s ruined because they turned up the week that the starring character in that season’s kiddie-sized blockbuster had been replaced by an earnest but boring supporting character as the toy of choice,” Fabes said. Now imagine the advances in Wi-Fi. You would be hard pressed to not be able to find a free Wi-Fi service within a few miles in any major city, and often small towns. What if the same soon holds true for free 3D printing? In Abingdon, Maryland, this dream is coming to fruition. The Hartford County library was gifted a 3D printer for public use. While it is used mostly to print smaller objects such as key-chains, smaller toys, and iPhone cases, they believe there will be growth of more complicated items, with education playing a big part. (Continued on Page 70)

Photos courtesy of Afinia, Inc.

Innovation & Technology Today

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Afinia’s Ackmann sees our country’s economic growth in Science, Technology, Engineering, and Math, STEM. (In a side note, the 2014 STEM Forum & Expo is expected to draw thousands of young enthusiasts, teachers and others to New Orleans). None of this should be surprising, yet just like the computer, internet, and ereaders, Afinia has realized the potential of getting 3D printing into schools. To that extent, the company has partnered with Pitsco Education and Project Lead the Way to introduce curricula integrated with 3D printers. That way, educators receive a classroom-ready solution for their STEM curriculum needs. This leads to young minds probing a new technology and the creation of a better world. For example, a small impoverished community in Africa may one day be able to use recyclable materials to print everyday items, such as kitchen

“We will sell no 3D printer before its time. There are no venture capitalists or public shareholders telling us to release products prematurely. We have our own schedule and we follow it.” — Mitch Ackmann, Afinia

utensils, that are not readily available. With small amounts of funding, this process is starting to take shape. Homemade prosthetics, manufacturing your own iPhone case at the public library, and printon-demand happy meal toys are starting to make this technology, once only available to financiallybacked engineers and scientists, a strong reality for the rest of the world. The highly anticipated 2014 boom will be bringing about less expensive, more robust, and advanced technology to at-home consumers, non-profit companies, and impoverished areas of the world. Then the latest technology boom will really hit strong. ■

STEPHANIE CLARKE is the Communications Department editor of Innovation & Technology Today. She is based in New York.

Listening LOUD & CLEAR Compiled By Robert Yehling & Hannah Brott

Innovation drives today’s audio industry, giving us home, phone and conferencing equipment beyond any we’ve seen before Headphones with Bluetooth connections that cancel out 98% of ambient noise. Voice recognition technologies that redefine the airline and bank sectors. Headsets so clear that it feels like the voice at the other end is leaning into your ear. Conferencing equipment that makes in-person meetings more optional than ever. Welcome to the bustling world of audio home and office equipment, circa 2014. Consumers and B2B customers alike have created an insatiable demand for the hottest, newest item. It seems that every month, a new feature or material pops into equipment from either a name-brand or previously obscure manufacturer, changing the manufacturing and buying landscape yet again. This boom is flourishing, it’s impacting virtually all of the world markets, and it’s not receding anytime soon. For one thing, the market continues to grow, both in customer reach and revenue. For Winter 2013

another, we have more uses for audio equipment than ever, including business and personal phone use, voice recognition, Bluetooth, conferencing, car and home stereo entertainment, home theaters, personal computers, public address systems, and our portable listening devices. On top of that, the industry remains dynamic. A quick peek into the Top 10 headphone companies, as determined by Consumer Reports, shows that a 5year-old company is ranked fifth (Beats, founded by hip-hop star Dr. Dre), while the third-ranked company, Shure, has been around since 1925. The U.S., Germany and

Japan have an iron lock on the Top 10, assuring plenty of R&D and innovation to come. However, for every JBL or Bose, there is a Phiaton or Sennheiser, newer companies with state-ofthe-art equipment. The same applies with Bluetooth speakers and phone speakers, where for every Jabra, Logitech or Sony, there is an Edifier or Speecup. Expect more players in this sales segment, which is expected to grow 16% per year over the next five years. A few quick numbers bear out the sizzling realities of an audio world in which key market segments are growing between 9% and 35% per year: • Global home audio equipment sales will top $20 billion in 2015, according to Global Industry Analysts. • The Asia-Pacific, Middle East and Latin American markets are exploding. • Voice recognition technology will eclipse $58 billion in 2015, according to BCC Research. That’s up from $20 billion in 2010.

Innovation & Technology Today

TOP 10 Headphone Manufacturers 1. Bose (US) 2. Sennheiser (Germany) 3. Shure (US) 4. Audio Technica (Japan) 5. Beats (US) 6. Grado (US) 7. AKG (Germany) 8. Beyerdynamic (Germany) 9. Sony (Japan) 10. Koss (US)

TOP 10 Speaker System Manufacturers 1. Harman International (JBL, Infinity) (US) 2. Dynaudio (Denmark) 3. Bowers & Wilkins (UK) 4. Bose (US) 5. Klipsch (US) 6. Martin Logan (US) 7. KEF (UK) 8. Polk (US) 9. Definitive Technology (US) 10. Paradigm (Canada)

TOP 10 Bluetooth Speaker Headset Mfgs. 1. Plantronics (US) 2. Jawbone (US) 3. Motorola (US) 4. Jabra (US) 5. LG (South Korea) 6. Samsung (South Korea) 7. Bluefox (US) 8. Sound iD (US) 9. BlueAnt (US) 10. VXi (BlueParrott) (US) (SOURCES: Audio Review, Consumer Reports, Top 10 Reviews)

• Noise-canceling and signaltransmitting hardware continues to be the leading sub-market, with sales estimated at $26 billion. • The world TV and video market will exceed $270 billion in 2015, according to MarketLine. That’s a 40% jump from the $192 billion received in 2010. Now, Innovation & Technology Today spotlights a few companies whose rapid development of technologically superior headphones, speakers and Bluetooth speakers exemplify the hard innovative push of the entire industry.

GOING GREEN WITH AUDIO EXCELLENCE Edifier has taken a different track to prominence from other audio companies. It kicked off as a small national company in Beijing before fanning east with its state-of-the-art consumer audio line.

Edifier is one of the greenest major audio manufacturers in the world. The company recycles 1 to 2 tons of plastic daily, re-uses treated residential water, deploys solar panels, operates with LED and T5 lighting, and refuses to work with suppliers that are not environmentally friendly. In a region paralyzed several times a year by smog pollution, Edifier’s light footprint is welcome. Still headquartered in Beijing, but with subsidiary headquarters in the U.S. and a dozen other nations, Edifier builds and distributes more

Innovation & Technology Today

than 8 million audio units per year. They operate the old-fashioned, vertically integrated way, with everything from R&D to manufacturing and distribution spreading from the Beijing base to subsidiary locations, and to stores and consumers from there. They specialize in the consumer market, rolling out far-forward R&D and product design in stereo and home theater speakers, headphones, Bluetooth headsets, and docking technology for PC, multimedia, digital, and IT lifestyle audio. “We would like our customers to be drawn to our products visually, followed by extreme satisfaction by the audio quality,” Founder and CEO Wendong Zhang said. “There are tricks involved when putting design and audio together. Customer response has been phenomenal to our products that are sleek and forward thinking. Creating products that don't look like anything else on the market is the ultimate goal.” One of Edifier’s new offerings is the MP260 Extreme Connect Bluetooth Speaker. The device comes fully charged, takes three seconds or less to pair with an iPhone or Android, and streams favorite music sites like Pandora or Spotify in an equally short time. The Bluetooth Speaker’s two full-range drivers are countered by a rear facing passive bass radiator, and holds 10 hours of battery life. “Our approach is to present a more versatile audio system,” Zhang said. “Using various (Continued on Page 74)

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w w w. B L U E T I G E R U S A . c o m SoundPODS by Blue Tiger are heavy-duty speakers, that achieve exceptional sound quality in the palm of your hand. Only $49.99.

(Continued from Page 72)

forms of acoustic technology one pair of Edifier speakers can serve as a complete audio system — more suited for today’s urban living.” Edifier has flown high with its signature design of sorts, the Spinnaker e30 speaker system. Its advanced audio technology is augmented with a 12-foot cord to connect the speakers on a spreadout home system, Bluetooth pairing that is good to a 30-foot radius, and versatile input and output jacks that can connect to everything from multimedia systems to iPhones. The Spinnaker e30 picked up numerous awards at multimedia, electronics and technology shows from Fall 2012 to Summer 2013.

GERMANY’S AUDIO PATRIARCH, SENNHEISER They’ve been around 70 years, but Germany’s audio patriarch, Sennheiser, continues to send shock waves through the audio field with its top-quality sound equipment. Now comes their latest cutting-edge technology for office professionals: the SD wireless series. Each headset in the series comes with Sennheiser’s HD voice clarity, so the conversation sounds like it’s happening face-to-face. Each model also comes standard with Sennheiser’s ActiveGuard technology, which limits incoming

sound to a safe 103 decibels to keep the user’s hearing from being damaged by acoustic shock. One setback everyone inevitably runs into with ever-more convenient technology: battery life. Somehow, all of the technological advancements the industry has seen over the past few decades have failed to yield a battery that can truly keep up. Not with the SD wireless series. It packs eight hours — a full workday — of battery life in “wideband mode,” 12 hours in “narrowband mode,” and 100 hours of standby time. The battery will charge 50 percent in 20 minutes, and a full charge takes about an hour. The headset also turns off automatically after being out-ofrange (180 feet in a typical office building, or 590 feet in line of sight) for 30 minutes. Leave it to Sennheiser to innovate something so forward-thinking. If you work in a noisy office environment, the SD wireless series has you covered. Each model comes with a noise-cancelling microphone, and the SD Pro 1 and 2 models come with the ultra noise-cancelling microphone (if your office is really noisy). Last, but not least, the question on many professionals’ minds: Is the headset actually comfortable enough to wear for eight hours? Sennheiser’s answer: each of the SD wireless headsets was designed with comfort and all-day wearability in mind. — Hannah Brott

Innovation & Technology Today

TALKING WITH SPEECUP CEO

GUS JOCKERS INNOVATION & TECHNOLOGY TODAY: How have you positioned speeCup within your industry — and what recent moves gave you greater traction? GUS JOCKERS: We are outside the normal mold for marketing a consumer electronic product. Our business has historically been as a private label manufacturer building for OEM’s with established brands with recognized names in their markets. iCreation is our brand name and speeCup was our first venture to design a product to manufacture in our own operation and take it to the consumer with the fewest possible distribution steps, thus providing the greatest value to the consumer for a highly technical product in a competitive market. I&T TODAY: Word is strong that your Bluetooth speakers are at the highest level. Can you elaborate? GJ: Based on our performance tests and those who have done extensive (Continued on Page 76)

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speeCup is a Siri/S Voice Activated Portable Bluetooth Surround Sound Speaker with gesture control. This portable 8” tall speaker is designed to play music and be a hands-free speakerphone in your car, home, office or on the go. Using the audio-out provided auxiliary cable, you can also connect directly to your car or home stereo system for enhanced sound quality and without losing the portability of your phone, tablet or other Bluetooth device. Its sound quality, features and performance will amaze you.

on the go

in the car

at the office

• Integrated noise canceling microphone for hands-free communication • Intuitive top-mounted smartControl includes Gesture control • Bluetooth range up to 30 feet • Built-in rechargeable lithium ion battery for up to 20 hours of use • Aux line-out jack for Bluetooth streaming audio to car & home audio systems • Three colors to choose from — White, Black or Red

BOOTH 6721

speeCup.com MFi Manufacturing Licensees 6.0 for iPhone 5

Gus Jockers, speeCup

GJ: Bluetooth speakers entered the market very quickly, led more by famous and popular personalities than by performance. That is actually a very good thing, because it caused the market to expand quickly and made more people aware of the benefits of using a battery-operated speaker without wires to make portability a necessity in our lives. We entered later and, therefore, needed to separate ourselves from the two evolving pieces of the market.

Captain Payne, Audio Envy

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evaluation testing on our product, the sound produced is exceptional compared to higher priced yet highly recognized brand names in the Bluetooth speaker market. When we first conceived speeCup, our primary goal was to design a portable and functional Bluetooth speaker with superior sound quality and offer it at an attractive price by taking advantage of our manufacturing and engineering capabilities to get to market in the shortest time possible (target 2 months). We are convinced we met or exceeded all of our goals. I&T TODAY: Why is speeCup so well positioned to operate with the highest technology? GJ: Since we have been deeply involved in both Bluetooth and infrared technologies for nearly 10 years, our relationships with the leaders in the chip and software developers are very close. We are in the enviable position of testing and evaluating the leading edge of new chip and software design. The product we intend to introduce at CES 2014 will be the first time the new technology has been incorporated for a Bluetooth speaker.

To hear more from Gus Jockers, see The Innovators Roundtable (page 28).

Statistics: How Often People Listen to Music on Headphones (includes portable headphones and ear buds)

21% 21% 14% 7% 10% 7% 18%

Every Day Almost Every Day Several Times/Week Once a Week More than Once/Month Once /Year to Once/Month Less than Once/Year

I&T TODAY: You were not one of the early players in the Bluetooth speaker market, yet you’ve become one of the most innovative. How did you do that? 76

QUICK TALK: AUDIO ENVY’S

CAPTAIN PAYNE INNOVATION & TECHNOLOGY TODAY: As an innovator and inventor, you’ve made some substantial contributions to the evolution of home automation and technology in the past 15 to 20 years. Could you share a few? CAPTAIN PAYNE: Sure. Audio Envy set out on a mission to build 250 prototypes, not just for audiophiles but for mainstream consumers. The Art Deco speaker, which is a hand-crafted speaker that visually complements the room, fits in with a bronze pot, a pottery vase, etc., producing sound from a work of art. Also, 12 years ago, we came up with a solution to share one rack of electronics with the whole house, HD video included. We made it affordable, and today, the benefits are seen by manufacturers and service providers. We also specialize in acoustical theater design with wall positioning for better sound imaging. We have been working with smart remotes for years. I&T TODAY: With general home automation solutions provided by so many companies, what are some of the specific advantages Audio Envy offers? CP: Our goal is to tie many systems together into one simple-touse interface. I love checking out new products. Even the basics of an (Continued on Page 78)

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automation system are a continuous learning process, requiring years of experience to achieve excellence. Automation is a monster of variables. Installer and vendor support in navigating these factors is critical for success. I&T TODAY: Do you feel our growth in musical and technical sophistication, from the stereo era of the 1970s-1980s, has contributed to the types of systems and features we want in our homes? If so, how? CP: Many desires come from what people didn’t like. Can we hide the speakers? Can this be faster and easier to use? How can I navigate my music collection? Innovation spawns! But it’s not all roses. Products that evolve merely from complaints often sacrifice performance. Our cables and speaker innovations bring back the quality while meeting the customer’s desire in aesthetics and interaction.

I&T TODAY: What do you see as the next steps or innovations in audio and video technology? How is Audio Envy positioned in that future? CP: My next step is to get Audio Envy cables and speakers benefiting a wider audience. After that I’m expecting: a lightweight affordable

panel that blocks impressive levels of sound; the dream in-wall bracket; Super Tape; A/V tools for more efficient installations; efficient wi-fi distribution; robotic assistance and manufacturing; virtual rooms; and (3D) printing technology.

advertising special feature

Phiaton: innovations in headphone technology In recent years, the headphone industry has grown by 7% annually. With continued growth in the use of mobile devices, the headphone industry is anticipated to experience even greater growth in the coming years. As it becomes increasingly important to stand apart in such a fast-growing market, Phiaton is one brand that has established itself with its distinctive product offering in the headphone market. For Phiaton, appealing design is not simply a matter of making products that look great. It is about incorporating innovative design elements into personal audio products that link form and function to create something entirely new and exciting. Phiaton’s product designs integrate elements like machined aluminum, carbon graphite fiber and perforated leather, which create a unique look distinctive from any others in the headphone market while also contributing dramatically to the audio performance. Phiaton’s latest additions to the product line are included in what’s known as the Moderna Series (or M-Series). The M-Series signifies all of the qualities encompassed in the past, present, and future of Phiaton’s aesthetics and audio performance. Some of the most recent product offerings in the M-Series include the Bridge MS 500 Headphones, which integrate qualities similar to those found in a great instrument,

matching superior audio performance with a stunning, sleek design. Its dual-chamber structure and multi-tune acoustic design offer high-end performance and sound quality, combining the excellent bass response of closed ear headphones with the crystal clear high-frequency response of open-style headphones. These fashionable headphones feature an easy, foldable structure for sleek and convenient transportation. The Bridge MS 500 Headphones are available for $299. Another recent introduction to the line is the Chord MS 530 headphones, which packs active noise-cancellation and Bluetooth 4.0 into one. These wireless over-ear headphones block out 98% of ambient background noise, feature 40mm titanium drivers for improved sound reproduction and have an attention-grabbing design. The combination of wireless Bluetooth technology, noise-cancellation and its fold-andgo design makes them an ideal headphone for travelers and commuters. The Chord MS 530 headphones are available for $349. The Fusion MS 430 Headphones embody Phiaton’s signature M-series. The graphite fiber feature not only contributes to an attractive design but also makes these on-ear headphones lightweight, durable and resistant to wear-and-tear. Every detail in the Fusion MS 430 Headphones was skillfully combined from the perforated headband design to the hidden red accents behind the carbon fiber enclosure. The Phiaton driver technology completes the synthesis, providing rich bass, full-bodied midrange, and sparkling high notes. The Fusion MS 430 headphones are available for $179.

What’s Behind

THE SKILLS GAP? By Charles Warner Innovation & Technology Today Publisher

We need to find more good paying jobs for our skilled workers, right? Actually, the reverse is closer to the truth. If someone told you that, right now in the good ‘ol US of A, there are millions of good paying jobs unfilled due to a lack of skilled workers, would you be surprised? Perhaps dumfounded? If so, you would not be alone. In an era of 24-hour news cycles dedicated to endless loops of celebrity gossip and “gotcha journalism”, the skills gap has scarcely been covered by the mainstream media — until now. Innovation & Technology Today has talked with some key players to expose this conundrum, while at the same time exploring solutions in definable terms. The issue not only affects the unemployed, but its cross-sector applicability is directly tied to U.S. economic development. “We are lending money we don’t have to kids who can’t pay it back to train them for jobs that no longer exist. That’s nuts,” said Mike Rowe of the mikeroweWORKS Foundation. Never before has a complex issue been summarized so succinctly. Rowe, host of the popular Discovery Channel show Dirty Jobs, 80

has made it his foundation’s mission to help close the country’s skills gap by challenging the misconceptions that surround “alternative education.” “We’ve got a trillion dollars in student loans, and hundreds of thousands of graduates who can’t find

Innovation & Technology Today

work in their chosen field,” Rowe said. “Meanwhile, welders and pipefitters are in short supply all over the country. For people willing to learn a useful skill and work hard, opportunities are everywhere. But the prevailing perceptions are powerful. And changing them takes time.” When asked if this is an attitude of “American Exceptionalism,” Rowe was a bit more measured. “That’s a bit beyond my pay grade. But I think in general, most people are programmed to take the path of least resistance,” he said. “It’s natural for parents to want something for their kids that’s better than what they had. The question is, what exactly does ‘better’ mean in 2013? Is it better to graduate from Georgetown with a law degree, or is it better to know how to repair heavy machinery in North Dakota? I know people in both positions. One is debt-free with a house he paid for in cash and more work than he can ever hope to finish. The other owes $130,000 in student loans, can’t find (Continued on Page 82)

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a job, and lives back home in his parents’ basement. I think maybe it’s less about ‘exceptionalism,’ and more about ‘expectationalism.’” Rowe brings up an interesting point. If there are millions of good paying tech jobs available right now, and over 80% do not require a fouryear degree, what is the disconnect? Are young people not inspired by science and math anymore? Is it a lingering negative association with going to a tech school instead of a four-year college? Or is it that these skilled labor jobs have the stigmatic word “labor” associated with them? It seems clear that, in this new economy, work ethic and skill are part of the equation. According to Mary Kelly, President and CEO of StrataTech Education Group, “Mike Rowe understands the skills gap, but he also understands the work ethic. Work ethic is important. When you’re talking about welding, yes, they can make a lot of

money. We have guys coming out of a seven-month program and making a great living, but some of them are working on a pipeline, in the cold, by themselves, rolling around in the dirt. They are doing 6g welding in a confined space using a mirror to weld. It’s hard work! If they don’t have that work ethic, they’re certainly not going to make that kind of money. “I think Mike’s message is the right message, which is, ‘look, the skills gap we need to fix, but we also need to focus on the work ethic, too.’” In the spirit of putting your money where your mouth is, mikeroweWORKS has partnered with top technical schools, like those under the StrataTech umbrella, to offer scholarships to students who demonstrate not only academic skills but pledge work ethic as well — by signing the pledge. How’s that for old school principles mixed with hightech training? As skilled tradesmen from the baby boomer generation retire in droves, hundreds of thousands of positions are in need of fresh, talented workers. Countless companies have vacancies that can’t be filled because of a shortage of skilled workers, which affects the entire economy. We are not just talking about plumbers, welders and pipe fitters — but also science, technology, engineering and mathematics, or STEM. In a famous 2011 conversation, President Obama asked the late Steve Jobs why Apple products could not

Innovation & Technology Today

be made in the U.S. Jobs replied, “Those jobs aren’t coming back.” Apple took a public relations hit for that statement, but as it turns out, Jobs was right. U.S. workers are simply not as skilled as their overseas counterparts at computer and device engineering. Larry Bock, serial entrepreneur and biotech investor, believes the answer is to celebrate science. Bock should know. As he started and built new companies in the U.S., he

How can the richest nation on earth justify not investing in the 3 million jobs that can’t be filled right here? could no longer find homegrown talent to fill those key positions. Bock has a new initiative to end this trend: the USA Science & Engineering Festival, which takes place April 26-27, 2014, in Washington D.C.

Winter 2013

“I wanted to find a way to bring together children, families, scientists, educators, tech companies, government leaders, and celebrities, to create an event that celebrated science, and that’s how the USA Science & Engineering Festival came together,” he said. “It gives kids the tools to change the world. “Our schools aren’t producing the highly trained and highly skilled workers needed. And our young people aren’t inspired to pursue these career paths in science, technology, engineering and math. This is already having repercussions in our economy, and it will only worsen unless we find a way to address it. “A society gets what it celebrates. If we celebrate the sports stars, musicians and the Kardashians, they will inspire children down those pathways in life. As a nation, we can do better than that. We need to do better than that,” he added. Who will do the heavy lifting to shift this paradigm? According to Bock, it will need to be a collaboration of government and private sector. “But perhaps more importantly, it needs to be a collaboration of parents and educators constantly focusing on the STEM fields and constantly inspiring kids to pursue it, particularly young women and children of color,” he said. One organization, Project Lead The Way, is helping to do just that. Project Lead The Way (PLTW) is a

501(c)(3) nonprofit organization and the nation’s leading provider of STEM programs. It develops a pipeline of interested, prepared graduates to become the next generation of problem solvers, critical thinkers, collaborators, innovators, and entrepreneurs. PLTW does this through its curriculum, teacher training, and expansive network. It is now in more than 5,200 schools in all 50 states, and growing at a rate of more than 20% a year. There is also an organized and growing movement, led by the National Girls Collaborative Project, to help women receive the access and opportunities they need —

Winter 2013

Innovation & Technology Today

“We are lending money we don’t have to kids who can’t pay it back to train them for jobs that no longer exist. That’s nuts.” — Mike Rowe, mikeroweWORKS Foundation

along with the support of their parents, who are key to providing positive reinforcement. More women tech role models wouldn’t hurt, either. With big names like Mike Rowe, mega-corporations like Lockheed Martin, Chevron, Northrup Grumman, and huge festivals like the USA Science and Engineering Festival, it’s time for our elected officials to get their act together. They say attitude is a direct reflection of leadership, and the leadership in Washington has been vapid at best and downright hostile at times when it comes to investing in innovation. How can the richest nation on earth justify not investing in the 3 million jobs that can’t be filled right here, because of the skills gap? To those budget hawks always willing and able to slash spending on science, innovation and education, while feeding pork barrel projects and military programs even the Pentagon doesn’t want, we ask, “What do you think will be the real cost of failing to invest in our nation’s future?” The skills gap affects five things above all: our young people’s sense of purpose and contribution; the ability of our businesses to expand; our economy’s ability to grow and prosper; our nation’s legacy of innovation; and the American Dream itself. Question is, what are we going to do about it? Hold that thought … Duck Dynasty is coming on. ■

interview

Innovation & Technology Today Conversation with

MIKE ROWE

Exclusive Interview by Charles Warner

Millions of Americans know Mike Rowe as the Dirty Jobs guy, the host of one of the most popular shows in cable TV history. But did you also know he’s one of the nation’s foremost promoters of finding skilled workers to fill the gaps that exist in technology and other industries? Our publisher, Charles Warner, caught up with Mike just as we were heading to press. What follows is their conversation.

I&T TODAY: Bummer. MR: Tell me about it. In high school, I washed out of every shop class there was. I had no aptitude for the thing I wanted to do, and couldn’t understand why I was failing. I&T TODAY: What did you do? MR: I let it go. I enrolled at a community college and took some random courses in a bunch of things I had never considered. Philosophy. Rhetorical analysis. Speech. I learned to sing. I learned to write. I learned to act. I joined the debate team. I guess I left the industrial arts for the liberal arts, but when I started working for a living, I still thought of myself as a tradesman. I still do. With a slightly different tool box.

INNOVATION & TECHNOLOGY TODAY: Mike, what was life like for you before Dirty Jobs? MIKE ROWE: I had maybe 300 separate employers. I started in the Baltimore Opera, did some community theater, and appeared in some truly unfortunate infomercials. I also narrated everything with the I&T TODAY: So how do you explain 300 Photos by Michael Segal Photography word “Wildebeest” in it. (Trust me, it Dirty Jobs? You shot for eight years in all never works out well for the Wildebeest.) My first actual 50 states. For a guy with commitment issues, that was a job in TV was on The QVC Cable Shopping Channel. I pretty big bite. worked the graveyard shift there for three years, and MR: Total miscalculation. I was pitching an idea became fairly facile at impersonating a TV host. I was called Somebody’s Gotta Do It, a short-term project eventually fired in 1993 — deservedly — and moved to about real people doing real work that I thought my Hollywood. I’ve been working on this or that ever since. grandfather might enjoy watching. Discovery called it a “talk show in a sewer,” but agreed to order three hours. I&T TODAY: Was a career in television always the plan? They changed the name to Dirty Jobs, and gave me a MR: No. God no. I wanted to be a tradesman. I lived budget that rivaled my first weekly allowance. In turn, I next door to my grandfather — one of those men who signed some paperwork that gave them the right to just seemed to know how things worked. With no formal order more episodes, if by some unthinkable chance education, he went on to master just about every trade. people actually watched. Eight years later, we were still Carpentry, electrical, plumbing, mechanical … the shooting. Careful what you wish for … guy could build a house without a blueprint. I wanted to do that. I&T TODAY: So your whole business model evaporated overnight? I&T TODAY: What happened? MR: Yeah. Along with my attitude. Dirty Jobs was MR: I didn’t get the handy gene. Skipped right over me. personal, and when it went to series, I was determined (Continued on Page 86)

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to keep it that way. No writers, no actors, no scripts, no “confessionals,” and no second takes. Nothing fake. It was hard work for sure — we were on the road 300 nights a year. But it was simple and honest. And a hell of a lot of fun. I&T TODAY: Yet, for all its humor and simplicity, Dirty Jobs touched on some very big themes. Entrepreneurship, innovation, the dignity of work, the definition of a “good job.” MR: Those themes were always in the show, but they didn’t really become central until the economy crashed. In 2008, unemployment was headline news, and there was constant talk about how “all the good jobs had vanished.” But Dirty Jobs was telling another story. Every week, we proved that lots of jobs still exist for people who are willing to learn a useful skill and work their butts off. Reporters were suddenly interested in a “dirty jobs perspective.” I was happy to share it. I&T TODAY: During that time, on Labor Day 2008, you started mikeroweWORKS. You called it a PR campaign for skilled labor and alternative education. MR: Right. It was also an online Trade Resource Center, built by fans of the show. We assembled thousands of apprenticeship programs and on-the-job training opportunities and posted them in one place. I started to publicly challenge the narrative that high unemployment means no jobs, and that a good education can only come with a four-year degree. I&T TODAY: You also challenge the stigmas and stereotypes associated with skilled labor in a very direct way. Why? MR: Because I don’t think the skills gap is a problem; I think it’s a symptom of what we value. And somewhere along the way, we’ve stopped valuing hard work and skilled labor. How else can you explain the availability of so many jobs that no one seems to want? If we want to encourage people to get trained for the jobs that actually exist, we have to change the way we talk about work and education. We have to treat the cause, not the symptom. I&T TODAY: The symptoms are pretty scary. Right now, there are 3 million good paying jobs that can’t be filled in the US. MR: Right. And the crazy thing is, less than 12% of those jobs require a four-year degree. Most require specific training and a useful skill. 86

I&T TODAY: So why aren’t students considering tech schools as a viable career path? MR: Because we’ve spent the last 40 years telling them that Tech Schools are institutions for functioning idiots. We’ve spent decades pushing “higher education” to the point that anything less than a diploma now feels like a vocational consolation prize. It’s just so damn dysfunctional. We’ve got a trillion dollars in student loans, and hundreds of thousands of graduates who can’t find work in their chosen field. Meanwhile, welders and pipefitters are in short supply all over the country. For people willing to learn a useful skill and work hard, opportunities are everywhere. But the prevailing perceptions are powerful. And changing them takes time. I&T TODAY: What’s the next step to close that skills gap? Who has to start doing some heavy lifting now that awareness has been created? MR: We’ve got to start by rewarding the behavior we want to encourage. At mikeroweWORKS, we offer “work ethic scholarships.” They’re a bit controversial, but they get people talking. We’re building an association of excellent trade schools around the country. Midwest Technical, Tulsa Welding, Delta Technical, and RSI — they all understand the challenge, and we’re working closely with them. I also think companies can do a better job of recruiting, by emphasizing the role of skill wherever it applies. Hundreds of STEM jobs for instance, require the mastery of a useful skill. And conversely, many skilled jobs require an understanding of STEM. But it’s rare to see a welder portrayed as a person who understands the science or mathematical aspects of the work, or an engineer with muddy boots, holding a welding torch. I&T TODAY: We understand you’ll be at The Science and Engineering Festival in DC this April. This is a pretty big deal. MR: It’s a huge deal. They expect a minimum of 250,000 people, and tons of press. I’m giving speeches and moderating panels. I’ve also agreed to host The mikeroweWORKS Pavilion. I’m filling it with dozens of companies that want to show off the relationship between skill and technology in their own businesses. Caterpillar, for instance, will have a huge presence, because they have literally hundreds of positions all over the country for heavy equipment technicians. These jobs

Innovation & Technology Today

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Winter 2013

DRIVING DEMAND: The CODE for Social Selling By Elizabeth Allen True or False?

Without a plan to adapt quickly, our collective goose is cooked. How do people come to understand that they are indeed part of the sales team whether they like it or not, are ready or not or are “opting in or not”?

A. Everyone (no matter their title) is now in sales. B. You’d better figure out exactly what this means. C. Your professional future depends on it. D. All the above. Increasingly, whether we like it or not, want it or not, are prepared or not, we are all in sales. Our asset is the value of the relational inventory contained within our social networks. Our corporate value is our contact’s willingness to do business with us. Our job security is our ability to sell and drive demand within these networks. And it all happens at the speed of trust. Are you ready? Welcome to the final evolution of the flat organization. Indeed, now we are all in sales. While in the past, this term was a cute corporate mantra, it’s going to be your death knell if you don’t get it. Like the frog that sits in the pot too long until it boils, we’re collectively in hot water. Do you feel it starting to boil? While we lounge deeply in social networks that connect everyone we know with everyone we want to know, the economy is slowly turning up the heat. Winter 2013

Do you have a nagging sensation that something is really changing? Awareness begins with the nonstop incessant pressure to engage in social media to promote your personal human brand, because if you don’t, you simply become irrelevant. It’s the new unspoken corporate rule that if you personally are not contributing to new business, your company might label you as expendable. You sense that if you aren’t part of a savvy new sales solution, you might be labeled as part of an old culture that just “doesn’t get it”. And that’s not good.

Innovation & Technology Today

For two decades, I have taught a sales process based on entrepreneurial behavior to company executives spanning multiple B2B industries. I believe that entrepreneurs are the perfect models to evaluate the process of social selling, because they often start with what they know, who they know and begin where they are. Today, companies must adopt this highly intuitive and innovative sales process with urgency and intention. If you aren’t actively cultivating a loyal relationship with your customer, be sure that someone else on Facebook or LinkedIn is. Is the expectation that everyone support sales realistic? CEOs I’ve interviewed require that everyone be minimally supportive if not outright engaged in the sales process, because it’s not enough anymore to have a few exhausted whiz-bangs that make rain. Companies need everyone to be engaged in the fight for customers (Continued on Page 88)

(Continued from Page 87)

meaningfully nurturing our core because, let’s face it, we are all customers while at the same time, interconnected to each other and as effectively hunting for new customers? a result are selling all the time. The list of business thought We’ve collectively said it for years: leaders pounding this message is “Ah yes, we are all in sales” (nod, nod, growing: Daniel Pink (To Sell Is wink, wink). Now, thanks to the social Human), Reid Hoffman (The Start networking explosion buoyed by Up of You), Seth Godin … all point Facebook, LinkedIn and Twitter, to the fact that we are now all in business apps, online marketplaces, sales. This is true whether we like it and customer access to your offerings or not, whether we were hired for it and those of your competitors, we or not, whether we are ready for it or not. Curiously, what these thought leaders are not saying is exactly how to get everyone across the organization engaged, aligned and effectively selling. They don’t tell you exactly what to do, what you can expect, or how you can implement a program to deliver measurable change immediately. My upcoming book, Driving Demand: The CODE for Social Selling, answers these questions Consultant and Author Elizabeth Allen by presenting a process that I really are in sales. That goes for all of created and developed, backed by us, from the receptionist to the CEO, two decades of in-the-trenches and everyone in between. We are experience and research. This hyperlinked, communicating both as experience involves multiple B2B people and professionals, constantly companies grappling with exactly — and instantly. the same issues you are. The There is no longer a little red line issues are: that separates what we do from who • How do I drive accountability we are. Our professional and personal as it pertains to the central goal of brands are completely intermingled, everyone contributing to the because who we know and how well sales process? we nurture them directly impacts our • How do I, as an entrepreneurial job security and economic mobility. leader, model the behaviors, We are human brand extensions of our attitudes and skills most important skills and the companies we work for. for my people to understand We are instantly known for the values and replicate? and ideas we promote, what we “like”, • How do I identify the exact the quality of our work — or our steps required to make the cultural organization’s products and services. shift, driving accountability across This is what I refer to as social the organization to the process? currency; it is more valuable than its • How do I use the tools of today weight in gold. Without it, we cannot — social networking, the many sell effectively in the 21st century. approaches to selling, and what I Much like an entrepreneur or call ‘relational currency’ — to make solopreneur tasked with driving sure everyone contributes to driving demand in his or her own tiny customer demand for my company’s economy of one, we have to engage products and services? That we are 88

Innovation & Technology Today

and move forward because our collective economy depends on it. We have to think like an entrepreneur, changing our attitudes, skill sets and behaviors to reflect our goals. We must learn to trust our instincts like an entrepreneur, engaging in a formal sales process, completely accountable to what the natural entrepreneur intuitively does in his or her head. We start with where we are, what it is we offer, and who we know leveraging our social and relational currency. The central idea behind social and relational currency is that because everyone is hyperlinked and actively involved in relationships, everyone in the company must be empowered and understand exactly what it means to participate in the sales process. To be successful, roles and responsibilities must synchronize to a central playbook that literally gets everyone on the same page. The outcome: more strategic management of relational inventory to make sure that core customers are being nurtured, while at the same, actively hunting for new customers using existing networks of people happy to provide warm introductions. Illustrations of these ideas include a new initiative by Jiffy Lube in which the car techs are active in generating interest from passing car traffic. The #2 audio headphone manufacturer in the world, Sennheiser, does the same thing with its engineers, who stand sideby-side with salespeople at trade conventions, talking with customers. Instead of hanging out and having a smoke in times of low customer volume, now they carry signs outside the building that say “no wait, come on in”. I’ve noticed (Continued on Page 90)

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this same concept now being replicated by multiple companies dependent on consumer foot traffic, where the “technical expert” is increasingly acting as prospector. Ten years ago, you never would have seen a massage therapist standing curbside with a $49 sign. Now it’s regular fair in metro areas. This process of engaging technical experts to actively support the sales process is requiring companies to really re-think their approach and training, as research suggests that skills associated with sales are now number two in demand globally.

One of the first questions I ask during a training is, “How many of you have worked in a family-owned business, owned a family business, or have a significant other connected in such a business?” Usually, most people raise their hands. The significance? People who work in family-owned businesses invest themselves wholeheartedly in the

innovation management structure branding active

analysis

concept

A decade ago, while anticipating the events of today, I created a proprietary marketing and sales process called CODE. This entrepreneurial sales process is a combination of elements that unlocks a company’s potential for growth. It’s based on translating key skills, attitudes and behaviors intuitive to the entrepreneur throughout the entire organization. The core idea is to break down the walls between departments — sales, operations, R&D, accounting — achieving an all-hands-on-deck mentality. The core ideas include: Communication: standardizing the process of establishing relationships, internally and with prospects. Organization: a structured approach to better manage all resources. Documentation: the means to generate a detailed account of your progress. Evaluation: the capability to accurately assess your performance. Sound simple? Maybe so — if you’re looking at it from the point of view of your own department. My goal is for everyone to synchronize the management of their relational currency across all departments, standardizing the language as well as key roles and shared responsibilities across the organization. This enables the entire organization to move forward with a focused sense of urgency, as well as strong intention.

company’s success. Which illustrates an important point: everyone connected to any organization — whether employee, consultant, independent contractor, manager, director, S- or C-level executive, or other stakeholder — needs to be invested as though it were your family’s business. Everyone needs to actively think like owners. In 2006, Muhammad Yunus, microfinance pioneer and Nobel Prize winner, said in a PBS News Hour interview, “All human beings are entrepreneurs. When we were in the caves, we were self-employed … finding our food, feeding ourselves. That’s where human history began. As civilization came, we suppressed it and made it into labor … We became ‘labor’ because [they] stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.” Indeed, we are entrepreneurs, as entrepreneurship is in our DNA! We

Innovation & Technology Today

ideas

plan

analysis

solution

SUCCESS

BUSINESS STRATEGY

have always been entrepreneurs, but have not identified the key behaviors, attitudes and skill sets appropriate to act like one. Now, we have. My research not only confirms, but extends the conclusion of Mr. Yunus. We all have the capability within us to sell: we simply need to know the skill sets, attitudes and behaviors that are required for success. For my entire life, I have been fascinated with entrepreneurs and what makes them unique. They are my passion. I study entrepreneurship like record producers study music. It both inspires and informs my career, and defines my work. A common intent links entrepreneurs, one that is the birthright of this great nation: to turn an idea into a marketable product or service. It all begins with an idea — we all have them. Most of us stop there. Not the entrepreneur. She or he matches that idea with a technical skill and vision. That foremost skill, to see how that idea would serve customers, leads to a product or service they bring to the market, typically with great determination. We get there through intentional attitudes, skill sets and behaviors that leverage the value of social and relational currency. Imagine for a moment a world where who you know and their preference to do business with you (social capital) translates into quantifiable and transferrable “relational currency” (remember that term). Also imagine: • Where the process of managing personal and professional relational inventories across social networks like Facebook, Twitter and LinkedIn is easily distributed to people throughout the organization. In turn, employees leverage these relationships for targeted sales and business development efforts; • Where the intuitive process of business development and sales is Winter 2013

automated across the organization. A corporate scorecard clearly captures the ROI and profitability associated with each relationship, bringing everything down to “one number”; • Where mobile technology alerts you the moment when someone you know (and trust) meets someone you want to know; • Where the process of connecting people (and their relationships) to resulting leads, opportunities, projects, and bankable profit becomes seamless and automated; and • Where the way you treat others in business, and the value you provide them, is reflected in your own personal “social credit score”. Thanks to on-line social media and social networking, our economy and our lives are networked — together. Never before have relationships been so key to the viability of organizations. They are more individualized than ever. If a single happy customer blankets social media with their delight over your product or service, and it goes viral, your pipeline of potential future customers will likely

fill up faster than any team of five cold-calling salespeople can muster. Likewise, a dissatisfied customer can really poison the waters, using the same power to instantly turn many against you. For all the marketing and advertising dollars you spend, all the directed selling you do, here is one of the biggest innovations in sales today: forming relationships with empowered customers, who already know what they’re looking for and how it can serve them or their companies. A statistic presented by HubSpot illustrates the new reality of relational currency and its impact on lead generation: 100% more leads are produced through social media marketing than through trade shows, telemarketing, PPC and direct mail combined. There’s a definite method to all those maddening tweets, LinkedIn discussions, PR Web releases, push notifications and pop-up ads. However, not all relationships are equal. A social media

communication is totally different from in-person meetings with a satisfied customer of 20 years. For that reason, leaders need a procedure to take inventory of their organizational relationships. They need a way to assess quality and codify those assessments for strategic management, and to do so with today’s dynamics, delivery methods and sales development tactics in mind. How can your organization align individual social networks with the goals of lead generation, customer service and the ongoing maintenance of key relationships? Never before has relational currency been so essential. ■

ELIZABETH ALLEN is the creator of the CODE marketing and sales process, and president of MarketSmartz (www.marketsmartz.com), a business consultancy based in Kansas City, KS. For 20 years, she has worked with CEOs and business owners with her proprietary CODE process. This article is drawn from her book, Driving Demand: CODE for Sales, which will be published in 2014.

STEPPING UP TO THE PLATE:

Compliance Identity Management in Network Security By Rick Smith When planning a house, what are your priorities? Typically, you might tell the architect to focus first on overall design, then zoom in on the specifics of living rooms, kitchens, bedrooms, hallways, greeting rooms, and perhaps the front atrium or home office. You will certainly emphasize ceiling design, and the installation of flat screens, heating and air conditioning, along with some smart home features. Then there is the flooring; it has to match both your style and the overall décor and theme of the furniture, appliances and plug-ins for your Internet and home technology. You’ve co-created the masterpiece that you and your family will enjoy for many years … right? Not quite. What about the windows? The doors? The overall security of your precious new home? Some people manage to include it in their overall design scheme. Most do not. This is exactly what happens when organizations build out their network architecture. When they craft the system that will enable them to stay ahead of the curve and the competition, they might provide 92

killer solutions — but open their backdoor wide to hackers, cyberterrorists, moles, worms and other enemies of the IT enterprise. Why? Because they bypass the one element that ensures no solution or financial data will be compromised — network security. Let’s face it: the news lately has not been good for data and enterprise network security. Whether multi-national cyberattackers prey on VISA cardholders and ATM machines, hackers help themselves to millions in fraudulent insurance payments, or a malicious insider moles into every password in the organization, these are touchy times.

Innovation & Technology Today

We read about most breaches as they impact consumers, with good reason: millions of consumers are adversely affected, many severely. In California alone, the personal information of more than 2.5 million people was compromised from 131 breaches in 2012. That’s an average of 22,500 victims per breach. According to the Open Security Foundation, 1,038 significant breach incidents occurred nationwide in 2012. Multiply the California average by the national figure, and you arrive at 23.3 million people directly affected by asset loss, identity theft, password or Social Security Number compromise, stolen e-mails, and/or hijacking of sensitive files. Consumers are the end game of a cyberattack or data breach strategy that must pass through your organization to hit its mark. In 2012, financial cybercrime and state-affiliated espionage made up 95 percent of the 47,000 cybersecurity incidents studied in Verizon’s “Data Breach Investigations Report”. (Continued on Page 94)

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The most reported cybercrime? Financial assets, at 75%. Attackers prey on corporations and small businesses alike. Since 2003, business breaches have increased by 5,000 percent. Corporations and small businesses are equally vulnerable. This constant threat requires immediate understanding of solutions for our networks — solutions that stretch within and beyond the enterprise without making your employees’ and IT departments’ jobs more complicated. For most organizations, security is an afterthought and generally done retroactively. As we start to consolidate massive stores of data with the concepts of Big Data and the complexities of networks, we expose new aspects of our IT systems. Having the ability to centrally manage access, user authentication and governance risk and compliance only helps to secure and manage the mass number of solutions. This makes streamlined compliant identity management even more pressing. It’s not something IT teams normally consider when addressing a network build-out, but it’s time for

security to rise to the top of the todo list. That said, wouldn’t it be nice to utilize a solution that combines enterprise-wide single sign-ons with equally simple identity management, in a way that

Let’s face it: the news lately has not been good for data and enterprise network security. meets corporate governance and regulatory compliance? Wouldn’t it be great to speed up system access, immediately remove user access when employees leave the company, regularly change passwords, and

VPN Virus Protection

Content Filtering

NETWORK SECURITY Intrusion Protection

Spyware Protection

Firewall

WEB SECURITY

EMAIL SECURITY Spam Protection 94

Phishing Protection

Innovation & Technology Today

decrease desk call and IT costs to recover lost passwords while tightening the security belt across multiple systems? The compliant identity management strategy I propose, and present to organizations, is destined to do for identities what the hire-to-retire model did for human resources in its early days — take into account all business processes that applied to an employee, hiring, role changes, etc. With respect to the compliant identity concept, this means taking into account all of the tangential aspects of an individual in the organization (location, company information, access protocols, segregation of duties, etc.) Not only is this centralized, streamlined compliance identity management system necessary, but it also provides the best day-to-day deterrent to external breaches. Not to mention curbing insider breaches. According to the Open Security Foundation, insider breaches occurred 31% of the time in 2012, with outsiders at 56% and accidents comprising the other 13%. More than half of the attacks hit server networks, while three-quarters targeted individual workstations. If you are an executive who keeps sensitive corporate files on your desktop, laptop or tablet and off the company server, this becomes especially worrisome. With increasingly sophisticated cyberattacks and greater coordination between individuals and state-sponsored agents the order of the day, enterprise risk management and data security must protect against more than malicious individuals. One company, SAP, has developed a compliance identity solution that covers the three core issues for executives and management: 1) Accessing multiple systems on a daily basis and keeping user (Continued on Page 96)

Winter 2013

DATA BREACH: A HUGE Problem Recently, Verizon releases its “Data Breach Investigations Report.” The report listed the ways in which enterprise systems were breached and data pilfered, and the variety of attacks that took place:

Methods

48 44% 34%

Use of stolen passwords or personal info Backdoor entries around firewalls (or no firewalls)

Brute force

Variety of Attacks

75 66% 63% 55% 51% 45%

Spyware/ keylogger

Backdoor information monitoring

Exporting real-time data

Capturing stored data

Downloader

Password Dumper

(The percentages exceed 100% due to multi-purpose attacks and methods)

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IDs and passwords organized and updated. 2) Effectively supporting monthly calls to reset passwords — which can number into the hundreds or even thousands. 3) Securing access to information at various read-in levels while ensuring employees maintain their access information in secure areas, and remember their passwords. What if each employee could have one universal password? That’s the golden key to the compliance identity management suite. Authentication is centralized for all applications and enterprise systems so that users only need one password to give them access to the resources and systems necessary to do their jobs. Three components work together: • Solutions to address risk management, corporate governance and regulatory compliance in the United States and other countries. • Centralized authentication for all applications and systems, with a single sign-on for on-device, ondemand and on-premise applications. • Identity management that enables organizations to centrally manage user accounts in even the most complex systems landscapes. The three solutions, when used in conjunction, take advantage of the UTM (unified threat management) concept and offer centralized management for the user across the various landscapes in the enterprise, including onpremise, cloud and big data solutions. When these pieces move together, the benefits of streamline compliance identity management multiply across the enterprise. IT departments quickly experience a reduction in password recovery calls, enabling them to spend more labor hours on projects. Two-factor authentication is also supported, insuring another level of risk is

Innovation & Technology Today

addressed for highly classified files. The password policy is simple and compliant, and passwords can be changed often. Integrating business-critical applications for multiple users is also easier, since data will move through the centralized provisioning and compliance systems. Insider hacking and breaching will sharply decline, because tracking malicious users will no longer require sifting through countless passwords and user IDs. Also, any irregularities in access requests will be quickly detected. Implementation is quick, very efficient economically, and certain to raise your organization’s security presence while improving user convenience. It couldn’t come at a more critical time, with Big Data sweeping through conference rooms in virtually all long-range marketing and strategic research. The rise in Big Data will lead to a redesign and execution of security solutions. ■ Network security expert RICK SMITH focuses in the areas of SAP NetWeaver technology, architecture and numerous SAP solutions. He has more than 15 years of wide-ranging IT experience.

Winter 2013

The CUBE

desktop expansion enclosure offers a breadth of options Mark Gunn, MAXexpansion.com

Thunderbolt connects an expansion enclosure to your Apple laptop or Mac workstation and is supported by some PC manufacturers as well. It makes data transfers to and from your computer at 10Gb/s, and also contains a 10Gb/s data port. PCIe expansion offers a range of bus speeds up to 128Gb/s. All CUBE enclosures support both Thunderbolt and PCIe expansion that connect to your computer through a cable furnished with all CUBE products. The chart at the right shows a comparison of the different CUBE versions. The nanoCUBE, the smallest of the family, is ideal for adding a fast storage Flash card to your laptop to quickly download and temporarily store video or graphic data. The µCUBE is ideal for a laptop‐user that requires a mid‐size card up to 9.5” long.

The CUBE line of expansion enclosures support from one to eight application boards.

All enclosures offer a lightweight chassis with whisper-quiet operation. It’s also extremely easy to install a board. One screw retains a lightweight metal frame that easily slides out of the enclosure, exposing the add-in card slot. Once the card is installed, the frame easily slides back into the enclosure and is secured. In intense rendering applications, GPUs can

reduce down time caused by the rendering process. “The CUBE” enclosures offer multiple slots for singlewide and doublewide full‐length cards like GPUs. While the CUBE can support one doublewide card, the CUBE2 supports two doublewide and one singlewide card, and the CUBE3 can support up to four doublewide cards. All models have ample power and cooling. Mobility is a huge advantage of expansion enclosures. Smaller and lighter than a Workstation, a laptop with an expansion enclosure can easily become mobile. The

film industry, along with many others, uses laptops to download digital images and video on location. High‐end digital cameras use software and boards to accelerate the download and transcode time from the cameras. Along with Flash memory boards, these fast-storage boards can be installed in The CUBE and then simply plugged into the laptop when required. A 3D rendering application operates at a much faster rate with multiple GPU’s. Many of today’s highend GPUs fully support the PCIe x16 Gen3bus. Many of the PC’s or Mac Workstations today may only have one or two PCIe x16 Gen3 slots. Even then, they may not have the power or cooling to support these boards, which require 350 watts apiece. This is an ideal application for The CUBE, with its power and cooling to support these hot cards. Today, you can have access to the exact specialty boards your job requires and be completely mobile with The CUBE desktop expansion enclosures. This saves the trouble of lugging around a bulky, noisy Workstation or rack mount enclosure. More than that, it saves you time and money. You can now have immediate access to high‐end boards that will reduce your downtime. You don’t have to invest in larger, more expensive computers to do the same job as you can on your laptop. The CUBE, µCUBE and nanoCUBE expansion enclosures are lightweight, whisper‐quiet, and are less expensive than other enclosures on the market. You can easily order them on www.maxexpansion.com.

Paid advertisement.

What do you do when an application you need to use requires a specialized PCIe card and your laptop or PC doesn’t have a slot to accommodate it? Expansion enclosures provide needed slots for application boards and connect easily to either your laptop or your PC or Workstation. While several desktop expansion enclosures have been introduced recently, no other has offered the breadth of options as “The CUBE” family. This line of innovative products not only includes seven different sizes, but each size offers a variety of options, including the number and type of cards supported and either Thunderbolt or PCIe connectivity to the computer.

The nanoCUBE is small, lightweight, whisper-quiet and cost less than competitive products.

Residential Electronics Innovation:

CEDIA 2013 The 2013 CEDIA EXPO, hosted by the Colorado Convention Center in Denver, provided attendees the tools they need to evolve and adapt in an ever-changing industry. Two major hot topics that dominated talk on the convention floor and in instructional and new business seminars were the wireless audio and Ultra HD/4K. However, as Brilliant Integrated Technologies’ Martin O’Loughlin noted, every category of home automation — or residential electronics systems — drew plenty of interested parties. He particularly cited companies, including his own, that utilize the Control 4 platform. Since Innovation & Technology Today was on hand for the weekend, we decided to team up with the CEDIA crew to provide this brief rundown of the hottest areas of the show:

Wireless Audio Not surprisingly, the thousands of attendees flocked to the wireless device booths. It is one of the killer 98

technologies sweeping through not only home automation, but also personal entertainment such as headphones, Bluetooths and ear bud technology. Sales are increasing more than 50 percent a year. Since we love good sounds, the adrenalin of a hot industry, and the innovative craftsmanship behind our listening devices, we focused heavily on this sector while touring the show. Some of the current buzz in the industry regarding wireless speakers has been coming from home technology professionals concerned about wireless speakers being a do-ityourself threat. While the option to simply connect devices over a wireless network clearly requires less physical labor than drilling holes and

Innovation & Technology Today

pulling cable, it does not by any means make it easier to create a reliable system. However, wireless technologies have come a long way in recent years. More and more wireless devices are being crammed into homes every day. The available RF frequency spectrum has been filled to capacity, and interference has become a major issue with which these products must contend in real world applications. High performance wireless speakers have opened the door to an entirely new market of consumers that want the technology, reliability and performance of a high-quality surround sound system but aren’t willing to allow the intrusion of traditional retrofit methodologies. Wireless systems also allow scalability, which means customers can upgrade (from 5.1 to 7.1 or 3 zones to 4 or 5) for years to come.

Ultra HD/ 4K 4K, Ultra HD … what does it all mean? It was a buzzword at CEDIA (Continued on Page 100)

Winter 2013

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2013, one we found ourselves saying a lot as well. Let’s break it down. The term ‘4K’ is probably the one best known within the industry, and has been thrown around to describe a variety of different resolution formats. However, the correct specification for 4K comes from the commercial world and our friends in digital cinema. A true 4K picture (sometimes called 4K x 2K) has a resolution of 4096x2160, which amounts to an aspect ratio of approximately 17/9 or 1.89:1

100

(a ratio commonly used for widescreen films). In order for a display to meet the minimum requirement to be considered UHD, it must have twice the vertical and horizontal resolution of Full HD, which translates to 3840x2160 (over 8 million individual pixels), and an aspect ratio of at least 16/9 (1.78:1). UHD and 4K resolutions will be a major factor in pushing screen sizes to even larger dimensions. Right now, these technologies are

considered to be “bleeding edge” and will carry a hefty price tag. There’s very little content currently available in UHD resolutions. In the end, these new formats are simply the next step in the evolution of display devices. CEDIA welcomes you to stay in touch on the very latest in home technology by joining the CEDIA mailing list at cedia.org. Or, keep turning to Innovation & Technology Today as we stay on top of the home automation industry. ■

Innovation & Technology Today

Winter 2013

MIKE ROWE (Continued from Page 86) are a perfect example of what I’m talking about — they start around $50K, offer free training, and a real chance to make six-figures in just a few years. And yet the positions go unfilled. It’s baffling. I&T TODAY: Who else would you like to see in your Pavilion? MR: Any company that relies on a skilled workforce is welcome, especially those with open positions. Turner Construction will be there, along with UTI and some of the schools I just mentioned. Organizations like Go Build Alabama and Skills USA will be there, and some companies I worked with on Dirty Jobs. Fair Oaks Farms, for instance, is one of the most innovative and successful dairies in the country. Like much of the agricultural industry, they’re constantly fighting against the hee-haw stereotypes that plague the modern farmer. They’ll be showing off all kinds of innovation that’s going to blow people away. Also, TechShop, an amazing company combining skill and innovation in a way that’s going to impact everyone. I’ve got calls out to business large and small, and 12,000 square feet to fill … I&T TODAY: Speaking of innovation and technology, what excites you? MR: The role that innovation and technology in the workforce. That’s a huge conversation. Obviously, innovation is critically important, but when it exceeds our ability to implement, we get problems. New

advancements lead to new efficiencies, new efficiencies lead to smaller workforces, and smaller workforces lead to millions of people sitting around and waiting for someone to create a new job for them. Hence the skills gap. Innovation is no good without a national commitment to constantly retrain and reexamine the nature of work and entrepreneurship. This is where our reach has exceeded our grasp. Technology has allowed us to advance faster than we can adapt. I&T TODAY: The US used to manufacture a lot of things and increasingly these jobs are being shipped overseas. Are those jobs gone for good? MR: A lot of companies are trying to retool in the States. But it’s tough. I talked to an executive at WalMart the other day, and confirmed a story I read about their commitment to put $50 billion of American-made products back on their shelves over the next ten years. That’ll require a huge investment in new factories and manufacturing facilities. But the biggest challenge? A skilled and willing workforce. At the moment, there’s something like half a million jobs available in manufacturing that companies can’t fill. It’s not enough to just build factories and run want ads. The workforce needs to be there. Massive training will need to occur. And most of all, people will need to feel excited by the prospect of learning a new skill.

■

DIGITAL PUBLISHING’S Next Chapter By Robert Yehling

With more people than ever reading on their tablets, what does the future look like for books and magazine circulations, and revenues? Attendees from Southern California to Germany sacrificed a sun-splashed October weekend to attend the Los Angeles Digital Writing & Self-Publishing Conference. While locals abandoned their domestic duties and headed to Santa Monica beach, the conference atmosphere inside was rife with possibility and optimism. Imagine several hundred brainiacs converging on the hottest new science discovery. Why the buzz? They heard authors, agents, editors, publishers and distributors present the very latest on the digital publishing revolution. What a revolution it has become. Thousands of newspaper, magazine and book publishers now accommodate or revolve around digital. Forward-thinking organizations deploy publishing wings to crank out e-books, interactive web pages and branded content. If this reminds you of the dot-com boom, you’re not alone. A big difference? Digital is here to stay. The only bubble to pop is the reign 102

publishers once held over accessibility to content. “We’ve all got to learn how to optimize, market, brand and distribute our books in this digital time,” Digital Writing & SelfPublishing Conference director Tony Todaro told the participants in L.A. “If we don’t, then we might find ourselves out of the picture.” “I advise authors to look carefully at the numbers and reach of online publications,” book publicist Barbara Cave Henricks added. “Traditional media outlets may feel more permanent, but in fact, online information lives indefinitely.”

Innovation & Technology Today

The picture contains more moving parts than a League of Legends streamathon on Twitch. According to RR Bowker, more than 1.53 million new books were produced worldwide in 2012; in 2002, that figure was 247,777. Meanwhile, the Alliance for Audited Media (AAM), formerly the Audit Bureau of Circulation, reported that 10.2 million digital magazine editions were distributed per month in the first half of 2013 — double 2012. Adobe, the desktop publishing tool king, reported in February 2013 that 34% of its produced and sold products consisted of digital content, with another 35% digital-plus-print. Five years ago, they were 100% print. With 750 million expected to own tablets worldwide by 2016, according to Forrester Research, digital media numbers are headed in one direction — up. How do readers access these products? From more than 6,000 (Continued on Page 104)

Winter 2013

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different brands of cell phones and tablets, hundreds of magazine apps, thousands of online booksellers, discount push newsletters like BookBub, publisher websites, social media, or the “Big 5” of digital newsstands — iPad (Apple), Zinio, Kindle, Nook, and Google Play. That’s a quick scratch of the surface. “That this is all happening in a pretty immature market is astounding,” said Chris Myers of MAGetc, which produces apps for numerous consumer and trade magazines (including Innovation & Technology Today). “We’re at ($2.8) billion in (digital advertising) revenue at a time when Google Play doesn’t even have their newsstand fully up yet, and only Apple is truly international with app stores in every major market worldwide. Consumer preference is driving a major shift in the magazine business that impacts design, distribution, resource allocation, and revenue generation. This shift is so significant, that I believe you will see tablets and tablet-centric content privileged over print in the years to come.” A closer look at the magazine and book publishing worlds sheds greater light on digital’s impact.

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Chris Myers, MAGetc

DIGITAL MAGAZINE PUBLISHING: REVENUE AND ENGAGEMENT In December 2012, the magazine industry shook like a bad day on the San Andreas Fault: Newsweek printed its last traditional issue and went 100% digital. While the threatened domino effect didn’t happen, and the other major national publications remained in print, the message was clear. Yet, has digital taken over the magazine publishing world? No. While print ad revenues dropped from $25.5 billion in 2007 to $16 billion in 2012, and digital ad revenues increased from $375 million to $2.8 billion during the

Innovation & Technology Today

same period, many publishers are working the two together. Circulation is climbing again after four successive down years, and unique visits to optimized websites — the “other” online publisher — continue to grow. For example, Time reports 7.7 million unique visits per month. These numbers enter into the thinking of publishers trying to find the best format (or formats) to marry advertisers and readers. “You need to customize the medium to fit what is working best for the advertiser,” says Innovation & Technology Today publisher Charles Warner. “Whether they are branding, selling product or seeking direct response, we collaborate with the advertiser to find the right format and platform to accomplish what the advertiser wants.” What an advertiser wants has changed — a lot. AdWeek recently pointed out that 80 percent of ad buyers sought print solutions first as recently as 2009, and then networked into the target magazine’s digital offering. Now, the ratio is slightly in favor of digital-first. (Continued on Page 106)

Winter 2013

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Today, a resourceful and savvy publisher can produce a print issue, digital replica or original digital magazine, and an online publication — updated daily or hourly. The best new players include The New York Times, The Wall Street Journal, National Geographic, Game Informer and Smithsonian, with Game Informer leading digital newsstand circulation at 2.9 million copies. While many publishers look for the right combination, some have found tremendous success with the help of the magic button — the branded app. “Adobe has done a number of case studies on independent publishers who have made the switch from a PDF replica edition to a full-blown, digital-first, interactive edition,” Myers said. “In the specific case of Top Gear magazine, after three months, they reported a 48% increase in total downloads, a 62% increase in paid downloads, a 79% increase in singleissue revenue, a 165% increase in subscription revenue, and a 200% increase in ad revenue. “These numbers were only made possible because readers liked the interactive format, design, and form factor so much that they spent enough time inside the app and with each issue to generate those results. Customers prefer that interactive content and apps deliver real application versus replica editions.”

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As Wild West as this digital magazine frontier might sound, the wagon train is filling fast. “Access to online publications has never been easier, but on the flip side, digital newsstands are more crowded than ever,” Warner said. “There are over 4,000 publications on Apple Newsstand alone. It’s important that as a digital publisher, we utilize every means possible to connect the reader with our publication through multiple platforms.” That involves creative offers that draw in the reader — old hat to magazine publishers, but with a 3D

Innovation & Technology Today

digital twist. Two currently hot digital and online trends are content marketplaces that move newspaper and magazine content into specialized areas; and free trials, free content, and preview content. “This is a direct response to customer dissatisfaction with magazines being labeled as ‘free’, when in fact only the app was free, and the content had to be purchased,” Myers said. (Case in point: Sports Illustrated offers a free app, but charges $5.99 per single-issue download.) “The result is that there is now more free content, either in the form of free preview articles (which SI offers, to its credit) or the first month free in a subscription. We are seeing big upticks in subscriber conversion rates when publishers offer this kind of free or trial content.” Does this mean the demise of print magazines? Not at all. In 2012, digital ad revenue accounted for 18% of total magazine ad revenue — a huge leap from 2% in 1997, but far short of the 82% that went to print ads. While 2012 newsstand sales were down 8.2% from 2011, combined print and digital subscriptions were slightly up. The real potential combines the two: 66% of surveyed adults who bought tablets in the past two years say they read both print and digital magazines. “When we started this magazine, it was clear that we would need to offer digital versions optimized for the readers on various platforms,” Warner pointed out. “That being said, there is still a very strong market for niche publications having a loyal audience of readers who Winter 2013

enjoy curling up with a nice glossy magazine.” Or a book …

BOOK PUBLISHING: DIGITAL IS HERE, BUT PRINT WILL NEVER DIE If you were Rip Van Winkle, fell asleep in 1993 and didn’t wake up until today, you would not recognize the publishing landscape. The dozens of major publishing houses to which you could market your books are down to five. Multiple city book tours are gone, unless your last name is King, Rowling, Baldacci, Clinton or O’Reilly. Likewise, publisher-subsidized publicity campaigns have downsized into the equivalent of a local mayoral race: you’re on your own. As for book formats? Gutenberg would roll over in his grave, while Nostradamus or McLuhan would simply wink. Now, in addition to traditional paperback, trade or hardcover forms, there are Mobi, ePub and PDF formatting languages

that load Kindle, Kobo, Nook and other e-readers, and online formatter/booksellers like Amazon.com and BookBaby. Or, your own website. Technology like Amazon’s Whispernet allows readers to download their new e-book buys on Kindle instantaneously after hitting “purchase”.

Barbara Cave Henricks

“It has definitely changed the way we read,” publicist Barbara Cave Henricks said. “Of my three children, two are dedicated readers of physical books, while one is a diehard digital reader. He prefers the immediacy and speed of adding to his library. I read for pleasure on a Kindle, but for books I am publicizing, I prefer paper copies I can notate and flip through.” Today’s book publishing world is similar to its magazine and newspaper counterparts: a big digital play that continues to draw in revenue and readers, while print remains the staple. In 2011, most experts predicted that e-books would lure 50% to 80% of readers and buyers away from print. Their forecast arose from a 1Q 2011 Association of American Publishers report that e-book sales increased 159.8 percent from the same period in 2010, while print books saw a 23.4% decline. Let’s move forward. In its 2Q 2013 report, Nielsen Book Market (Continued on Page 108)

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Ready To Publish Digitally? By Hannah Brott Digital publishing is easier and cheaper than ever. Software from web-based companies like Wood Wing, Joomag, Mag+, and Issuu deliver tools at your fingertips (literally, by tablet or mouse), at a price you choose based on the features you need. Wood Wing offers software, compatible with Adobe InDesign, to produce and turn work into an app file that can be opened on almost any tablet or smartphone. If you're a bigger organization and need more than one-at-a-time production, Wood Wing’s multichannel publishing software helps to keep content continuously flowing to readers' devices. Google, Sony Music, Entertainment Weekly, Forbes Media, Fortune magazine and Angie’s List use it. Wood Wing’s digital publishing software starts around $220 per month, while the multi-channel publishing software starts around $77 per user, per month. Joomag offers start-to-finish digital publishing software. Designers can use Joomag’s online editor to create and format content, the service to reach readers, and the analytics services to determine reach, effectiveness and return-oninvestment (ROI). Joomag does have an option for printing hard copies, but its focus is on interactive digital content: text with photo slide shows, videos, flash animation, and links to other content. Joomag’s pricing options range from free to “please contact for pricing” (with $14.95 per month and $39.95 per month options in between). Mag+ starts as a plugin for Adobe InDesign, from which the designer can add online and interactive content. That content can be shared for approval and feedback. After the publication is finalized, the designer can use Mag+ Publish to build an app containing the publication without any coding or programming. Then the content is published to the iTunes App Store, Google Play, and Amazon Appstore for download. Mag+ is free until the publishing step, so a user can build their entire publication and then pay to publish it. Mag+ has options for $999 per issue, $399 per month, or $2,999 per month, depending on the user’s needs. Issuu allows a designer to upload a publication (up to 500 pages) into a seamless online reader designed to imitate a real magazine or book. It supports all major document formats and is easy to share on social media and websites. It also supports audio, to allow interactive content in your publication. Issuu offers detailed statistics and analytics to track reach, effectiveness and ROI. Its most distinguishing feature might be its search engine optimization: every word of every publication is optimized. Issuu offers its “Essential Features” for free, along with the Plus ($29 per month) and Premium ($39 per month) options. Issuu is used by The New York Times, MIT, NASA, Red Bull and Nike, among others.

Research found that e-books actually made up 14% of total sales and 28% of units downloaded, down from 16% and 31% in the same period in 2012. Still, e-books and digital publishing have transformed the book market. Print book revenue has been shot full of holes by falling prices and bookstores closing their doors, while traditional publishers scramble to overhaul business models utilized, in some cases, since the Industrial Age. The outcome: consolidation that feels like Hollywood in the 1980s and 1990s. From nearly 60 top-tier publishing houses twenty years ago, we’re down to five. The latest merger, once thought inconceivable, came when Penguin joined Random House to form what literary agent Ashley Grayson jokingly called, “Random Penguin House.” While many fixate on hard industry numbers, the biggest impact has occurred in the trenches. Traditional book contracts call for a 9- to 18-month gap between turn-in deadline and publish date, unless the book chronicles a major newsmaking event or personality. A new clock now operates, sped up by digital formatting and print-on-demand. You can load your book onto a publishing plaform (e.g. CreateSpace or Smashwords) and see it go live to the world within 48 to 72 hours. Then, you can drop your e-book price below $2.99, pay a few hundred dollars, and have it pushed to readers by promotional e-newsletters like BookBub, which has a million subscribers. Read-click-buy: You’ve just sold a bunch of e-books without leaving your desk. Now, what about your print book and its $14.95 cover price? If you had a traditional publishing deal, you would see about $1 per book sold. If you selfpublish, at the average 70/30 ratio between author and online seller, you’ll see $10. (Continued on Page 110)

DIGITAL PUBLISHING By The Numbers Here are a few recent statistics to underscore how much digital publishing continues to change the business and pleasure of acquiring and receiving information.

287%

Percentage increase in self-published titles, 2006-2012

Number of titles published, US, 2011

347,178

Print magazine ad revenue, 2013

$2.8

$16 billion

Digital revenue

billion magazines, 2013 Print magazine $25.5 ad revenue, 2007 billion revenue $375 Digital magazines, 2007 million

5.4 10.2 MILLION MILLION 110

DIGITAL MAGAZINE

issues distributed monthly,

Jan.-June 2012

Jan.-June 2013

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“This is the single biggest change in promoting digital books — speed,” Henricks agreed. “We must be prepared to work quickly, and adapt to lead times in working with books. The standard was 4 to 6 months (of promotion time); now, we must be prepared to handle a title release in as little as four weeks. Further, we must also work to overcome the reluctance of some media to accept books for review or consideration in digital form.” It also makes selfpublishing (or Indie Publishing) an attractive alternative to traditional publishing. “If I can write a timely book and have it out to readers right away, why wait for a big house?” bestselling author Michele Scott said at the 2013 Southern California Writers Conference in San Diego. “Plus, I get almost all the money from sales.” It’s a new strategy, indeed. Many books are promoted almost entirely by digital means, especially Indie titles. Authors and/or their publicists set up social media campaigns, look for low-cost promo services like BookBub, Masquerade Crew or BargainBooksy.com, find reviewers online, create 15-second video book ads for national cable TV ad rotations (that’s a lot of eyeballs), and email blasts to announce their books. They send out press releases to massive distribution through services like Beacon Book Publicity, which optimizes the PR Web/VOCUS online suites. In 1993, it cost about $4,000 in postage and paper to send out 10,000 releases, not including labor.

Innovation & Technology Today

Now, it costs a few hundred dollars. While the intention of promotion and publicity is the same — to get people to buy your books — the delivery vehicles are completely different. So are the people delivering the digital goods. “Participation in the process is not optional — it is the key to a book’s success,” Henricks said. Less than 5% of the 375,000 new titles put out in the U.S. in 2012 came from traditional large publishers and their imprints. The rest were selfpublished, released by small houses, or handled through collaborative fulfillment houses. Many of those titles were

exclusively e-books. It’s a telling trend. Virtually every traditional publisher now offers print and ebook titles, though it’s taken some catching up. “They have become adept at using services like Netgalley and Bookshout to distribute early copies to reviewers, they are paying close attention to the content posted on the online selling platforms, and

Winter 2013

DIGITAL PUBLISHING By The Numbers (Continued)

158,000

United States, 2007

347,178

United States, 2011

1,532,823

Worldwide, 2012

247,777

and services will proliferate, but none will become extinct. Television can now be viewed on demand, on computers, handheld devices and more. Books will follow suit. “As for buying, as brick and mortar locations shrink, I believe we will all be forced to rely on online purchasing, while at the same time new models, like subscription services similar to Netflix for movies, will begin to evolve.” ■

Worldwide, 2002

nearly all publishers have their own social media programs to promote their authors and titles,” Henricks said. “They may have not been the first into the game, but they are making admirable and quick progress.” Where are we going with digital books? Henricks drew a comparison to the other media technology that has transformed in the past decade. “I believe that like television, devices

NEW BOOK TITLES PUBLISHED

E-BOOK DOWNLOADS as percentage of total books purchased, 2013:

28%

(Sources: RR Bowker, American Booksellers Association, PriceWaterhouseCoopers, Pew Research, Alliance for Audited Media)

What’s Behind the of

GROWTH GAMING? By Aaron Halda

What is it about the PC gaming market that keeps filling this seemingly impervious bubble of market growth? Large titles that command a massive audience help, but exposure and popularity have been bolstered by the addition of gamer streams that have migrated from YouTube to sites like Twitch. More on that in a moment. Recently, the PC Gaming Alliance (PCGA), a non-profit industry alliance, created waves by publishing research indicating substantial growth in the PC gaming maket. In their Pinnacle Report: Software 2012 — DFC Intelligence, they reported that in 2012, PC gaming software market hit record sales of $20 billion. With an 8% growth from the 2011 numbers, many analysts were surprised. Why? Because past research had shown a steady decline in subscription-based Multi Media Online games. That could only lead to one thing: a great deal of attention was (and is) being shifted to mobile gaming platforms instead. Now let’s get back to Twitch (www.twitch.tv). Twitch is a website made by gamers for gamers. 112

With forums and live video gaming streams, PC gamers are more interconnected than ever. Some have created massive followings, where they may have tens, hundreds or even thousands of fellow gamers tuning in to watch them slay, dominate, or be crushed in their game of choice. Let’s switch to realtime for a quick example: As I write this sentence, it’s 9:15 on a Thursday night on the West Coast. A League of Legends player has 29,302 people watching his stream. (Two nights later, I came back to this paragraph to follow-up on my real-time statistic. On a prime-time Saturday night, two streams were showing 120,000 viewers each.) Gamers are drawn to post their live streams for a multitude of reasons. Some do it to showcase their skills,

Innovation & Technology Today

some to teach others, and others just to show their humorous sides and have fun with the crowd that follows them. All of them have the potential to make money through viewer donations — a source of instant crowdfunding that didn’t exist in the gaming world until very recently. Some live streamers are lucky and entrepreneurial enough to make a comfortable livelihood from their antics. Game companies have become big fans and supporters of the live streaming market. With free advertisement and hype from the players making their games look incredibly fun, video game producers find that joining in adds up to big business. Here’s a good example: A surge of players started playing League of Legends (LOL), as can be seen from the number of people that now view the streams on a daily basis. LOL can actually be played for free; you unlock new characters as you play the game. Of course, there is a way to unlock everything faster — spend some money. This concept of “free to play” gaming grants massive exposure and allows many players (Continued on Page 114)

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QUICK TAKES from the Gaming World

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The new game from Electronic Arts has a following of more than 5 million fans worldwide, an all-time record for an EA Sports Game, according to a Sept. 24 report. More than 1.35 million people use the Ultimate Team Web App, with 830,000 daily users.

who may not have given the game a chance to try it, enjoy it, and ultimately spend money on it. It’s a great example of funnel marketing brought over to the gaming world. The gaming companies aren’t the only organizations to see the value of Twitch. Go onto the site, and the first 15 seconds often feel like watching a Hulu or Netflix show — televisionstyle commercials from sponsors. They include food, drink and creature comfort product providers, along with video games. It hasn’t taken them long to see where millions of potential customers can be found. Many companies are utilizing Twitch to build hype for their tournaments as well. DOTA 2 recently had a large tournament called The International, which boasted a $1 million prize purse. Hundreds of thousands of people tuned in to watch the matches unfold. These streams are being set up in such a way that even E-sports are gaining popularity. Tuning in to watch PC teams go head to head while a playby-play announcer offers commentary creates a throwback vibe to traditional sports. In this and other ways, PCs are finding their way back into the mainstream of video games. The current generation of consoles have been out for nearly eight years, which could also be why we are seeing a rise in PC sales performance. Driven by gamers and businesspeople in need of real-time technology, old PCs are being replaced. PCs continue to make leaps and bounds in the power of their processors, graphics cards, and capabilities. For gamers, this

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Innovation & Technology Today

EA SPORTS FIFA 14 The new game from Electronic Arts has a following of more than 5 million fans worldwide, an all-time record for an EA Sports Game, according to a Sept. 24 report. More than 1.35 million people use the Ultimate Team Web App, with 830,000 daily users.

INTERNATIONAL GAMING TECHNOLOGY won the American Gaming Association’s Best 2012 Annual Report award. The AGA cited IGT’s ability to blaze new trails in its reporting, and to create a read that is both informative and insightful for shareholders, investors, analysts, and the media. According to IGT, the annual report received more than 26,000 mobile visits and 2,000 unique page views within 3 months of its posting — a very high number.

SKYLANDERS SWAP FORCE

generates faster load times and the ability to view graphics in much better detail than the console counterparts. Since consoles are more dedicated systems, they are able to process games at a better rate than a PC counterpart that is running similar specifications. Once the PC hardware is able to upgrade, it can surpass the console. With new consoles coming out in 4th Quarter launches, it will be interesting to see how powerful these new machines are and how they will impact the already steady rise PC sales have witnessed over the past few years. The PCGA report concludes that “the PC game business will continue to grow at a pace of 6% CAGR to $25.7 billion by 2016.” ■

AARON HALDA is the Gaming and Entertainment Editor for Innovation & Technology Today.

Winter 2013

X2, Xfinity TV & Xfinity Streampix Meet For the past 18 months, millions have indulged in the far-reaching features of the Comcast X1 platform and its 360-degree entertainment promise. Now, just as the X1 service is about to become available to 100% of Comcast subscribers, consumers are buckling their seats for the nextgeneration X2 platform. A software update to the X1, it previewed in June at the National Cable & Telecommunications Association’s The Cable Show, and is being readied for 2014 rollout.

GAMING LIAISONS Gaming’s momentum surge is like the Energizer Bunny – it keeps going. BlizzCon 2013 drew 26,000 people from around the world in November. All the big game makers will announce robust 2013 revenues, and the gaming crowd is larger and more informed than ever. Look no further than the newsstands: Game Informer is the top online magazine, with 2.9 million paid subscribers, as well as #3 on print newsstand, with 8 million subscribers. On top of that, more advertisers than ever are finding their way into video game packages, streams, or within the games themselves — a 21st century version of Hollywood product placements. What are they finding? Who are they reaching? A look at some of the tendencies and patterns of today’s committed gamers: