Archive for September 2012

From consumption to creation

Via Mozilla Webmaker:

“Mozillians are people who make things. Moving people from consumption to creation is Mozilla’s goal.” – Mitchell Baker, Mozilla Chair and Chief Lizard Wrangler

This is a brilliant goal. To build a generation of webmakers. Getting people to create more than just consume.

It is widely stated that 1% create, 10% curate, the rest consume (quote from Fred Wilson). Imagine if the tables were turned.

Malaysian censorship doesn’t cross borders but what if you’re a Malaysian startup?

The White House did ask YouTube to check if there was a violation of terms of service for the recent video that’s causing the Muslim world to go up in storm. It seems like there isn’t, and the video continues to stay up. Good on Google, good on YouTube, and here’s a win to freedom of expression & speech.

Today I see Dr. Rais Yatim, Information Communication & Culture Minster of Malaysia ask for YouTube to remove the movie. Its just smart that he realizes that YouTube isn’t controlled & created in Malaysia so its not “without our technical capability” to remove it.

There are some problems with this line of thought.

  1. If you are a company in Malaysia, hosting user generated content, you may be subject to censorship. Will it make a difference if you’re an MSC status company as there is a bill of guarantees? Or does it not matter?
  2. Rais continues on that Malaysia is an Islamic nation. It is a secular nation with Islam as the religion of the federation. It is a great pity he chooses to skew facts on what is supposed to be Malaysia Day today.
  3. Censorship without due course. Malaysia has many obscure laws that are passed as acts of parliament while the current ruling regime has been in power since independence. They have been so used to just sending notices for removals that they’ve forgotten that they need to consult the law. And chances are there are many laws that affect freedoms of speech & expression, even though they may be constitutionally protected. Companies incorporating in Malaysia need to take this into consideration.

Its good that Google isn’t simply buckling under pressure (another):

Google Malaysia communications and public affairs head Zeffri Yusof said they received the official request from the Malaysian Communications and Multimedia Commission (MCMC) and that both parties were discussing the next course of action.

“Google adheres to the laws of the land in every country it has a domain in. So, (we) will act based on official complaints from the regulatory bodies,” he said.

Zeffri added, however, that the regulatory body had to cite the relevant laws or bylaws which were breached when making its complaint.

Now the onus is on the MCMC to show what laws the video contravenes so that YouTube can block it for all those coming from .my domainspace. 

What does this do to already poor investor sentiment? What does this mean for startups? What happens when some zealot finds a subversive message in Gangnam Style that may cause all the follow-ups to be deemed anti-religion?

YouTube has a message questioning if you should really be looking at the video. Adults should well, learn to behave like adults.

Muhammad Movie Trailer - YouTube

People to follow: Zeffri Yusof on Twitter is @zeffri. There’s also @GoogleMsia. Google+ account for +Google Malaysia.

The iPhone 5

I have been asked numerous times in the last few days: what do you think of the new iPhone 5? Will you recommend me to buy it?

Go, whet your appetite at the official iPhone page. It has a great design (thinner, lighter), it’s the same width but taller (4 inches now), comes with an awesome camera, has better battery life & comes with LTE connectivity. The feature list is impressive as are the tech specs.

Am I going to buy it? No, I’m happy with last year’s model. (ok, a little older – I’m using an iPhone 4 personally). It is a pity that I can no longer link to the site made by gina trapani & anil dash.

If you need to buy a new phone, my suggestion is of course to get the best & latest model, and that is the iPhone 5. If however your older iPhone 4S or 4 is working, I think my arguments work on why you don’t quite need to migrate yet. Put it plain & simple: the iPhone 4 I carry in my pocket “just works”. I have a mophie juice pack to extend its battery life. I have invested in the dock ecosystem tremendously (chargers for an office, two homes, as well as the travel kit; devices like a Withings BP-800 Blood Pressure Monitor, a whole lot more like music docks & those pesky things called in-car audio systems).

I wrote about the dock ecosystem a while back and Apple has decided to upgrade this, i.e. now with a Lighting connector. One has to buy a Lightning to 30-pin adapter. I understand that it was probably impossible to get the design to become much thinner, but we’re in a dilemma situation now especially when many people have i-devices, including an iPad. Gone is the ease of use of just having similar chargers. This transition period is going to be tough. Also, some countries get the adapter included for free, while others are forced to pay USD$30 for it.

Apple has decided to use a nano SIM (i.e. something smaller than a micro-SIM). People are still getting used to micro-SIM’s, and my travel kit even has a SIM cutter, because when you travel its pretty hard to find prepaid services that offer micro-SIM cards. Its impossible to cut a micro-SIM to a nano-SIM, so telcos have to support it by default. Apple doesn’t care so much about this because in their launch market (the USA), they have AT&T giving you international data roaming plans that don’t cost an arm & a leg. I have to pay anywhere between USD$12-19 to have data roaming per day.

No one knows if one of the major complaints about the iPhone is fixed – the dodgy home button. I know many iPhone users whom have owned a second phone turn on the accessibility functionality just so that they don’t have to press the home button. This is a workaround and does not work as expected. It is a disappointment for such a costly device that such things do not stand the test of time.

A lot of people sell the idea that its great to watch videos & movies on your iPhone. I’m sure many people do that, but I don’t. I watch movies on my iPad quite happily when mobile. Or on my huge LCD television when I’m home :-)

It comes with LTE. I’m sure LTE is meant to be awesome (in fact, I’ve use it regularly in South Korea, and it is fast, real fast), but my home carriers don’t support it yet. And it likely that by the time there is widespread support throughout the whole of Malaysia (heck, its still difficult to get reliable 3G access in the whole country if you step out of the Klang Valley) there will be a next generation iPhone, which is something I might pick up.

The camera on my iPhone 4 is sufficient. The camera on the 4S is awesome. And I bet the camera on the 5 will do wonders with easy panaromas, quicker photo capture, etc. It probably means I will find less need to carry a point & shoot, but this alone is not a good reason to upgrade.

I doubt that there will be much software that doesn’t run on the iPhone 4. iOS 6 will run on the iPhone 4. Apple continues to sell the iPhone 4, so it will be supported

So, am I compelled to upgrade? No. But if anything happened to my dear iPhone 4, I might consider the iPhone 5. Or with my investment in the dock connector ecosystem, I might just get an iPhone 4S :-) Happy not to be giving into the consumption economy!

Quotable on 10Gen+MongoDB

Via Pandodaily (an article you definitely should read):

The company has big plans. 10Gen’s vision is to build a software platform company akin to Redhat or Oracle, Schireson says. “That’s the type of company we want to build,” he says. “Those companies don’t get acquired.” — 10gen President, Max Schireson

I’m glad that this is the vision. This is something I’m very positive about. I hope that this vision is realized for Max & the rest of 10gen. This is a company that has raised five rounds of venture funding ($73 million), currently valued at over $550 million.

My take on Rocket Internet

Drip, dropI’ve wanted to write about Rocket Internet ever since reading an article that appeared in SGEntrepreneurs, written by my friend Bernard Leong, titled Are the Samwer Brothers, a.k.a Rocket Internet really that bad for Southeast Asia? That article appeared towards the end of March 2012, and anyone that knows me closely knows that I’ve been having an epic year traveling for business (more on that later). What prompted me to write this today? Reading Bernard’s next article in the series titled Is there any method in Rocket Internet’s madness? That and I’m taking a much needed break, sitting in a venue older than the nation Malaysia itself, overlooking the place where Malaysia fought for independence from the British, and sipping a cold Hoegaarden from the tap.

If you haven’t read those links, consider it a pre-requisite. Go on, I’ll wait.

In the US-based media, Rocket Internet are looked at as copycats. Should we shun copycats that don’t improve on things? No. Very little uniqueness comes out of things, and its rare that true innovation happens. The iPhone, the iPad, the Macbook Air. Those are true innovations that every other manufacturer out there is trying to copy. Its very much similar in the software world where things get rehashed. Timing & execution play an important role to success, naturally.

Free market economics are also interesting. You can launch products that are clones of Pinterest, but if Pinterest is where it’s at, that’s where people are going to be. I remember in the early days of Twitter, there was many a clone, even one in Malaysia called Pacmee, funded by an investor friend of mine. They put 18-months of good work into it, added the local spin to it, and bam, Twitter won anyway. Welcome to free market economics.

Caught in the tracksThis is similar to AirBnB clones like Wimdu (Rocket Internet). You might add your local spin to things, like my friend recently launched in Japan, homerent.jp, but in 18-24 months you’ll see if a local spin makes a business. I’m rooting for my friend, especially since the Japanese market is very closed, so here’s a cheers to them. Plus they have a great story to boot. (A friend is an investor at iBilik focused on the south-east asian market – I too wish them all the success).

At the end of the day, free market economics picks which service wins. What you do to make yourself a winner is down to creative smarts, growth hacking, and most importantly gaining user traction.

South-east Asia is unlike any other. We call ourselves ASEAN, but we have no single currency, we all speak different languages, we have no Schengen agreement and even though there may be free-trade-agreements in place, we all come with our own obscure laws. We don’t even have a beer you’ll call an Asian beer :-) As Bernard pointed out, we seem very much like Europe.

What is Rocket Internet getting right? Execution – at a great speed. Scale. With failing fast built-in.

The Next Web carried an article on this topic too. I quote:

These people don’t complain about payment gateway issues for their e-commerce sites, they just find ways to make it work. They won’t wait, and that’s a winning attitude.

I know the pain of dealing with Malaysian payment gateways. I guess I should say we should be thankful that we even have payment gateways. Most people don’t even bother dealing with these gateways and end up doing dodgy hacks like saying they’ll accept transfers from cash deposit machines, direct bank transfers, or worse, cash on delivery. This is not e-commerce. This may be commerce facilitated by electronic means, but it is in no way seamless or meets my standards of being called e-commerce.

That aside, I applaud the Samwer brothers doing this. Sure it isn’t very friendly to the smaller entrepreneur. Now you just have to learn to be more cunning. Execute better. Overall, I feel small entrepreneurs will do even better with this market as there’s lots of benefit to Rocket Internet spending the money to educate people about e-commerce (just see my thoughts on zalora & zalora II).

The one’s complaining were the ones already used to building copycats with a lot less money & execution flair. 

That’s not to say this model hasn’t got its issues. As Bernard points out, they’ve had executives come & go, lots of complaining employees, and they’ve even shut down services. I’ve been told by many that they’re also cheap. And customer service is generally terrible (this is anecdotal, like how an iPod hasn’t arrived in 73 days – I have never purchased anything from a Rocket Internet company). I’ve heard that seller relations aren’t all that awesome either.

IMG 0198Everything has hiccups. Its how quickly you learn from them and execute better. It’s not easy to build a Zappos culture overnight, and frankly speaking, South-East Asian customer service is in the doldrums overall. Many businesses can take to learning from how 5-star hotels run their operations in Asia (see service at InterContinental Bangkok, InterContinental Singapore, Grand Hyatt Singapore, Hyatt Regency Kuantan Resort and the like). The culture of Delivering Happiness is generally non-existent.

Bernard suggests this too:

The inconvenient truth is that the Samwer Brothers are excellent in cloning the operations and the IT platforms behind, but they are not good at cloning companies where the real strength is in the services part of the company.

Are operations cloned rather well? The IT platforms from my knowledge are all built within the market. This is why some markets have to deal with Google Spreadsheets and some markets have real built-in systems. 

Will there be a successful exit for one of these clones? Who’s to say. Anything is possible. It seems that JP Morgan has bet on Rocket Internet, but that’s not an underwriter that has much clout in general today. See where Facebook is.

Fire @ CrownIf you’re a South East Asian entrepreneur, don’t look at Rocket Internet companies as competition. They’re cloners. If you’re planning on building something remotely original, or a mashup, good on you. Execute smarter. If you’re planning on doing a clone, make sure you excel in the local touch. There’s no shortage of advice and if money is tight, remember to do things in a lean fashion. Your buddies at Rocket Internet are well funded (yes, the Euro is declining, but its still better than any single south east asian currency out there), but have a different passion & goal in their execution. Passion will show in good customer service.

If you are Rocket Internet, good luck with the cloning. I’m never a fan of unoriginal copies, but you’ve brought clear execution to what was already happening in the space anyways. This is why I respect you. I wish you the best of luck, and congratulations with getting investment dollars. It means you’re here to stay. Continue ensuring that people are comfortable with e-commerce transactions. Lobby to improve it with governments. But please don’t turn people off with terrible customer service. Asian customers can take a lot of crap, just don’t go overboard.

If you’re a US-based company reeling as to what Rocket Internet is doing in South East Asia, remember that you caused this to happen. You chose not to expand here and now you’re paying the price. Plain and simple. I’ve had my fair share of conversations with US-based companies that seem to think Asia is the last place to expand to. That’s a mistaken notion people.

All in, there’s plenty that’s happening in the US that is still not available in South East Asia. Plenty more to clone. Much more to disrupt.

Testing the WordPress Facebook plugin

This is me testing the WordPress Facebook plugin. It was generally missed when I could sync posts to facebook notes, but I guess this is the first step for that to happen again. Great use of a lunch hour as I wolf down some grandma-made malaysian-style chee cheong fun.


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