Tuesday, August 26, 2008

Thinking differently (externally) about innovation

The N.C. Rural Economic Development Center’s annual Rural Partners Forum is coming up in early October and the topic this year is INNOVATION. And we’re sure that they’ll present a slew of different ways in which innovation touches our state’s rural economies, but is there a vehicle for innovation more radical than the Internet?

While most companies still cling to the invention model that centers on internally-generated ideas and intellectual property, other companies are beginning to adopt a fundamentally different way of thinking about how to develop new products and processes. They understand that the Internet is fueling the transition to an open model of innovation that is driven by greater access to talent, risk-taking entrepreneurship and capital – wherever in the world it is found.

In 2000, Proctor and Gamble (P&G) realized that their return on increasingly expensive research and development (R&D) investments was inadequate. Studying their process for innovation, they estimated that each of their internally-employed researchers had at least 200 talented peers worldwide with skill sets that that P&G could potentially use. So P&G decided to fundamentally change their view of R&D to now include not only the 7,500 people inside the firm, but also 1.5 million scientists and engineers outside the company. The Internet made this possible by providing those new connections. The results more than support the wisdom of that decision – to adopt an open innovation policy. The company reported in 2006 that R&D productivity is up almost 60 percent, and 45 percent of products in development having key elements from external sources. Their innovation success rate has doubled, the cost of innovation has decreased, and perhaps the most telling of all – the price of a share of P&G stock has doubled.

Eli Lilly, a pharmaceutical giant headquartered in Indiana, has also used the Internet to dramatically change their innovation model. Eli Lilly created and spun-off Innocentive, a Web-based service firm that posts client’s scientific problems and offers cash for accepted solutions, maintaining the anonymity of all involved. This approach allows firms of all sizes to efficiently use the Internet to leverage their access to a critical and scarce R&D resource – talented human capital. It was found that for the 166 problems solved through Innocentive, the further the problem was from the solver’s expertise, the more likely he or she was to solve it. Non-experts in one field solved problems in another field by thinking differently. The results reinforce the value of the Internet as a boundary-eliminating connection that can serve to enrich blockbuster innovations.

The application of the Internet to spurring innovation is not limited to R&D enterprises. Netflix, a mail-order and Web-based entertainment service recently offered a $1 million award for an algorithm that would improve efficiency of one of its existing internal systems by at least 10 percent. They drew over 15,000 entrants from 126 countries, and the leading solution came from Budapest University of Technology and Economics.

Monday, August 18, 2008

Hurricane season is here - do you have a communications plan?

Tropical Storm Fay is the first storm of the season to even flirt with the idea of dumping some weather on North Carolina. With everything that Florida and the Gulf have suffered through for the last few years, you have to wonder if in the give-and-take of Atlantic Hurricane Seasons, it is the Carolinas' "turn" to get it.

So - since we've had a relatively long stretch of hurricane-free years - the forthcoming (potential) arrival of Fay makes us think about emergency communication plans. Stocking up. Boarding up. Heading out of dodge, if need be.

The Home Safety Council recently reported that only 30 percent of households have discussed and created an emergency communications plan - specifically outlining how families would stay connected in the case of a major weather or disaster event. And this topic is so intimately tied to technology these days because of our collective dependence on linkage with each other though mediums like Internet access and cell/mobile coverage. It may sound like a stretch, but this is a truly great example of how Internet connectivity has infiltrated every portion of modern society.

Tuesday, August 12, 2008

Who Understands All This Technical Stuff Anyway?

Well, the quick answer may be – not many people. It seems somewhat scary for local, state and national leaders to be making policy decisions on technologies that they may not fully understand. If we want to deploy more broadband (and deploy it in areas that may not have the normal market-driven forces at work), it seems that it would be helpful to have more technical resources available to decision-makers who are trying to understand broadband issues.

Last month, Geoff Daly of App-Rising.com spoke at the annual conference for the National Association of Regulatory Commissioners on wireless broadband. In his speech, he points out some of the pros and cons of wireless broadband – in a way that is easy to understand. What areas will it be most useful in (ex. mobility-driven applications)? What are the drawbacks (lack of standardized technologies)?

Daly’s goal was to educate the regulatory commissioners gathered together there from all around the country. We won’t try to spell out his entire speech here, but we recommend reading it. He even points out what he sees as a technical problem in a wireless plan around libraries, suggested one of the FCC commissioners. And that makes us wonder – where do these national leaders go for technical advice? Of course, the FCC commissioners have dedicated staff but what about all the utilities commissioners and state-level leaders? There are a multitude of technical issues surrounding broadband deployment, and you don’t have to look far to also see the volume of complex regulatory and legislative requirements around varying technologies.

At the e-NC Authority, we get lots of calls from local leaders and state leaders who are trying to sort out these questions. They most often ask about deploying wireless service and/or developing fiber networks. We do provide technical advice to local and state leaders in North Carolina, but only as much as is possible with our small staff and limited financial resources. And there are some other groups which do this as well, such as the Center for Public Technology at UNC-Chapel Hill, which offers training for government IT professionals.

But there still seems to be a lack of technical assistance available to those who need it most – those who may be trying to decide where to invest millions of dollars allocated for a community network, or those state legislators who are trying to decide how to write a particular piece of legislation. There are always industry professionals and vendors to provide consulting but can you get objective advice from a vendor?

In any case, until we have enough public entities willing to invest in technical staff members that really understand broadband technologies, or in policy staffers that really understand the policy side, we just have to hope that leaders and interested citizens are taking the time to read Daly’s columns and the thousands of other blogs, presentations and in-depth papers that examine these issues.

Friday, August 1, 2008

Coastal N.C. - are you gettin' the signal?

Wakey, wakey! The switch to digital television for several coastal communities in North Carolina is less than 40 days away! I know we’ve written about it before but every little reminder helps.

Beginning at noon on Sept. 8, 2008, Wilmington-area stations WWAY (ABC), WSFX-TV (FOX), WECT (NBC),WILM-LP (CBS) and W51CW (Trinity Broadcasting) will broadcast only digital signals to their viewers in New Hanover, Bladen, Brunswick, Columbus and Pender counties. The rest of the nation will make the switch on Feb. 17, 2009. The transition will affect those who watch free television from an over-the-air signal (through a rooftop antenna or “rabbit ears”). If you watch television from an over-the-air, or analog, signal, you must buy an analog-to-digital converter box, buy a digital television OR subscribe to a paid television service.

Analog-to-digital converter boxes are in stores and have a one-time cost of $40-70. To help you pay for the boxes, the U.S. government is offering two $40 coupons per household. For more information on the coupons, visit www.dtv2009.gov, or call 1-888-388-2009 (voice) or 1-877-530-2634 (TTY). Plus, you should not need a new antenna if you get good quality reception on analog channels 2-51 with your existing antenna.

The Federal Communications Commission (FCC) has staff available to educate people about the switch. In Brunswick County, you may contact Jessica Przybyla at (202) 418-2721. Additionally, FCC staff will be at the following local events and locations to answer questions about the digital television transition and sign-up area residents for the converter box coupon.

Saturday, Aug. 2 – 5 -10 p.m.
Leland Under the Lights Classic Car Show, Wal-Mart parking lot, Leland

Monday, Aug. 4 – 9:30 a.m. - 12:30 p.m.
Leland WIC Center, 1492 Village Road N.E., Leland

Monday, Aug. 4 – 6:00 - 8:00 p.m.
Brunswick Community College, Main Campus, Bolivia

Tuesday, Aug. 5 – 8:30 - 11:30 a.m.
Brunswick County Health Department, 25 Courthouse Drive, Bolivia

Wednesday, Aug. 6 – 8:30 - 11:30 a.m.
Shallotte WIC Center, Sunward Office Building, 117 Holden Beach Road, Shallotte

Friday, July 25, 2008

Economy in the pooper = Internet subscriptions expendable?

We have wondered when or if the lagging economy would translate into fewer new Internet subscription requests (or rather, people electing to terminate that service). With gas and food prices what they are, times are tight and many people are having to think more strategically about what expenses are truly necessary. It’s definitely a tough call. Imagine being a small business and trying to make that decision? Or the parent of a high school-aged student?

An article in Telephony Online this week pointed out that AT&T cited a decline in home-based wire line Internet subscriptions when discussing its third-quarter earnings. AT&T Chief Financial Officer Rick Lindner mentions that the lost customers are “indicating they are not going to a competitor” and that many of these lost subscribers are trying to save costs by using their work/office-based Internet services instead of having that availability at home.

As Ed Gibbons from Telephony Online points out, “If these people have office Internet connections, they likely don’t have blue collars; they’re not bus drivers or waiters. They’re white-collar workers who would rather fill up their gas tanks than their phone lines. The irony, of course, is that if they were able to keep their broadband connections and work from home, they would likely reap much larger savings by not buying the gas needed to drive to and from work each day.”

As others have pointed out, stressful or uncertain economic times tend to quickly illustrate the value (or lack thereof) that consumers place on any given product – gas, disposable diapers, new sneakers, name-brand macaroni-and-cheese, to name a few. This draws into question something that contradicts much of the e-NC Authority’s cause…the profound economic value of broadband connectivity.

Monday, July 21, 2008

Universal broadband throw-down: McCain vs. Obama

The Washington Post has put together a healthy resource site for readers to examine the 2008 presidential campaign candidates for their position on various issues. In looking at this recently, it was made clear what a stark difference there is between Sen. McCain and Sen. Obama when it comes to looking at universal broadband as an economic driver. Did we mention it was a stark difference?

When each candidate was asked to name "the three most important things [they would do] to promote economic growth and prosperity," Sen. Obama noted universal broadband deployment, but the words "broadband" and "Internet" are completely missing from Sen. McCain's response. Now, Sen. McCain's answer to the question is longer than Sen. Obama's, but Sen. McCain only mentions the role of technology in economic stimulation after a short break (included in the text below). Both are worthy candidates and we certainly won't make a political recommendation here - but the differences between candidates when it comes to universal broadband access is worth pointing out.

Here's how it went down...

Q:
WHAT ARE THE THREE MOST IMPORTANT THINGS YOU WOULD DO TO PROMOTE ECONOMIC GROWTH AND PROSPERITY?

SEN. OBAMA'S RESPONSE:
First, I will make strategic, long-term investments into American infrastructure to create more high-wage jobs. I will expand federal funding for basic research, make the tax credit for research and development permanent, and expand the deployment of broadband technology, so that businesses can invest in innovation and create high-paying, secure jobs. And I will make investments in education, training, and workforce development so that Americans can leverage our strengths -- our ingenuity and entrepreneurialism -- to create new high-wage jobs and prosper in a world economy. Second, I will fight against trade agreements that undermine American competitiveness and use trade as a tool to grow American jobs. I will use trade agreements to spread good labor and environmental standards around the world and stand firm against agreements like the Central American Free Trade Agreement (CAFTA) that fail to live up to those important benchmarks. Third, I will promote digital inclusion. Getting broadband Internet access into every home and business in urban America at an affordable rate could give low-income people increased opportunities to start businesses and engage actively in our communities.

SEN. McCAIN'S RESPONSE:
I am committed to pursuing a pro-growth economic agenda. First, we must minimize the burden of the federal government on entrepreneurs and the private sector by keeping spending under control and taxes low. We should keep income taxes low by making the tax cuts permanent, thus eliminating the threat of a crippling tax increase in 2011, by repealing the Alternative Minimum Tax, and also by making it more difficult for Congress to raise taxes by requiring a three-fifths, super-majority vote in order to pass a tax increase. But low taxes work best when accompanied by low spending. To limit spending, we must eliminate pork-barrel spending and reform entitlement programs. Opening markets for American goods and services is indispensable to our future prosperity. We can compete with anyone. American leadership on trade is critical to a vibrant world economy and to ensure access to new markets which will benefit our businesses, workers, farmers, and ranchers. Ninety-five percent of the world's customers are outside our borders, so it makes sense to try to reach more of them with our products and services by concluding more trade agreements tied to vigorous enforcement. Over the past fifty years, efforts to reduce global barriers to trade have raised U.S. incomes by $1 trillion every year - a $3,500 'trade refund' for every man, woman, and child in the United States. We also benefit from direct investment in our nation. Americans do not shy away from the challenge of competition: they welcome it. Because of that, we attract foreign investment from across the world. Trade has also contributed to our low unemployment and inflation rates. But the benefits we enjoy today can easily be gone tomorrow if governments travel the road of protectionism to failure. We must stand firmly against such economic isolationism today to ensure America's prosperity tomorrow. America has succeeded because we've more willing to embrace and encourage economic change more than most of our competitors. *break* Additionally, a strong tech industry is critical to our continued prosperity. Maintaining our tech edge requires robust basic research, a highly skilled workforce, and a healthy investment climate. We must support our tech industry with smart policies that make basic research a priority, improve our schools to produce graduates with strong math and science skills, make our immigration system friendlier to the world's tech innovators, and make our tax system and patent laws innovation friendly.

Friday, July 11, 2008

North Carolina leadership in interactive video

North Carolina’s First Interactive Video to Universities: 1984
MCNC (known then as the Microelectronic Center of North Carolina) began a network known as CONCERT to carry courses in the sciences out from UNC-Chapel Hill, N.C. State, Duke and Wake Forest to other universities and employees at high-tech companies. The CONCERT name was changed to NCREN in 1992. And with the advent of the N.C. Information Highway, all of its constituent institutions were added to this network. University courses were carried over both CONCERT and NCREN to spread the offering of scarce courses to universities, institutions and organizations that were otherwise unable to provide a very diverse set of courses. For example, Appalachian State University and the UNC-Asheville could not offer a diverse enough set of courses for majoring in something like, say, the German language. Resources from Appalachian State University and UNC-Asheville banded together to enable a German degree by using NCREN.

Originally, CONCERT used microwave towers and then moved predominantly to leased, fiber-based infrastructure and services for NCREN. The MCNC network was full motion, two-way interactive (and high quality) video for distance education, video conferencing and telemedicine. It also carried very high-speed data for research purposes among the university campuses in North Carolina.

North Carolina’s First Interactive Video Over Fiber to Schools: 1994
It took almost 10 years from the first interactive video to spread across North Carolina – a full motion, two-way interactive video at 45 Mb, delivered over an ATM Sonet fiber network here in North Carolina (piloted in Wilmington and Charlotte as Vision Carolina), and then named the N.C. Information Highway. It first offered services in August 1994 to deliver courses to high schools and community colleges. That network was built by telecommunication carriers in North Carolina – then known as Sprint, BellSouth and GTE – as well as telephone cooperatives and independent telephone companies. These carriers are known today as Embarq, AT&T and Verizon. The state paid for video services in the same way it would pay for telephone services (it did not own this network; the private sector and nonprofit telephone cooperatives did).

Initially, the network carried video to more than 70 high schools, enabling them to offer many science and technology courses that would not otherwise be available. Other courses were subsequently developed so that schools could receive language courses and advanced placement (AP) courses that were not taught in these schools because of lack of certified teachers. Shortly thereafter, 21 of North Carolina’s 50 community colleges also joined the network. Again, scarce resources were utilized across the system to spread educational content from one corner of the state to another.

The N.C. General Assembly was a leader and pioneer in funding the N.C. Information Highway. And private sector companies – be they wireline carriers, independent wireline carriers or telephone cooperatives – joined in this public-private partnership to deploy this first fiber-switched broadband ATM network in the world.

And here’s the kicker – it was the largest network of its kind in the world at that time. Right here in North Carolina. Can you believe that?

Such an awful shame that now the state and nation have fallen so far behind…