September 2013 - Creative Connectivity

The Green Approach to Energy Theft

I’ve spent the last few days at the Utility Analytics Week conference in Atlanta, where energy companies come together to discuss what they can do with the data they’re beginning to collect from smart meters. Despite the range of interesting and useful things that are possible, the majority of speakers converged on one application – reducing the level of energy theft. Specifically that seemed to mean stopping people stealing electricity to grow marijuana. A speaker from the Canadian supplier BC Hydro even went as far as saying that detecting marijuana growers was the main reason they’d decided to install smart meters.

The reason marijuana growers bypass their meters is that it traditionally takes quite a lot of power to run the growing lights for a loft-full of cannabis plants. Apparently 1,000W agricultural lights are needed for a set of fifteen to twenty plants. And now that the Canadian utilities are cracking down on energy thieves, the illicit trade is moving to the US. Which really got the US utility representatives hot under the collar. There’s nothing that riles a Southern utility manager as much as the knowledge that those pesky Canadians are turning his kids into reefer smoking zombies.

Hence the amount of effort being poured into revenue protection data analytics in an attempt to differentiate a closet pot grower from a faulty transformer. However, I think that by concentrating on theft, the utilities are missing an opportunity.

Google Glass, Robot Surgery and Drones

There’s a lot of hype around the first Google Glass operation, performed last week at the Clinica Cemtro in Madrid. Although Glass was used in this instance for training purposes, it doesn’t take much imagination to see its potential for guiding a surgeon. That’s a step which fulfils much of the original promise of remote robot surgery, which we now see in a somewhat emasculated form in the Da Vinci robots, which are arguably adding more glamour than technology to routine procedures.

If we take that mental step towards guiding and assisting surgeons through Google Glass, it leads us to ask the more important question of how we select and train surgeons, and what patients should expect of them. If we want the best manual technicians we may not want to retrain our current surgeons, but look for a new breed. That resonates with George Brandt’s play Grounded, which won awards at Edinburgh this year. It looks at the issues in reassigning fighter pilots to operate drones. It has a magnificent performance from Lucy Ellison and has relevance to many other areas, particularly the brave new world that Clinica Cemtro are letting us glimpse. If you’re in London before 3^rd Oct, go and see it at the Gate Theatre.

Let’s look at how those three things come together.

Smart Wrist Good. Smart Home Bad.

Or so it appears if you look at where the funding’s going. This week Jawbone, maker of the Bluetooth headset and more recently of the UP wristband, managed to raise $93 million in debt financing based on sales of its new products, with the rumour of a further $20 million in VC funding to come. It’s not alone. Earlier this year Fitbit, founded on clip-on devices, but now another player in wrist real estate had VCs falling over themselves to give it an additional $43 million.

In contrast, the smart home market has begun to look decidedly unexciting. After the Nest love-in, which raised them $80 million at the start of the year, their German rival tado only managed a measly $2.6 million from its previous investors. I’d always tended to discount the Nest fundraise, not because of the product, but because of their heritage. Ex-Apple staffed start-ups in California with slick products seem to get VCs wetting themselves in much the same way as followers of the cult of Apple do at the launch of a new iPhone.

If you take a look at the media coverage, it’s also pretty obvious where everyone considers the action to be. It not what we live in – it’s what we wear on our wrist. Investing in Smart Home looks rather dumb.

Zombie Wireless Standards

Back in 2010, Mark Thomas, the head of PA Consulting’s Strategy and Market practice published a book called The Zombie Economy. In it he defined a Zombie company as one which is generating just about enough cash to service its debt, so the bank is not obliged to pull the plug on the loan. The issue with such companies is that they can limp along, and just about survive, but as they don’t have enough money to invest, they fall over once the economy picks up, as they become uncompetitive. The problem they pose is that by continuing to exist in this Zombie state they threaten the development of other companies, acting as a damper to more sustainable businesses.

It struck me that there’s a close analogy in the area of wireless standards where we have what are effectively Zombie wireless standards. There’s not necessarily anything fundamentally wrong with these individual standards, other than that they have failed to get traction and so limp along. Here, the problem is that they tend to jealously claim a particular application sector or market segment, blocking other more successful standards from entering. That has a damping effect on product development, creating silos which keep putting off innovation in the hope that one day the standard will gain traction, constantly delaying growth and interoperability. Because they’re not being incorporated into enough products, they have effectively lost their ability to function and have become half-dead, half-alive ‘Zombies’.

I think it’s time to recognise the damage that this is doing. Rather than pursuing multiple parallel paths, the industry needs to concentrate on a far smaller number of short range wireless standards. They in turn need to embrace the requirements of a wider range of sectors.