Monday, May 23, 2011

The Idea Hunt - China vs Europe

Philips radio receiver model 930A, made in 1931Image via Wikipedia
Innovation tops many agenda's, from individuals, organizations and countries. But what innovation actually is and how to deal with it, outside high-brow and often mythical debates, remains illusive.

Bill Fischer and Andy Boyton have in their recently released "The Idea Hunter: How to Find the Best Ideas and Make them Happen" produced an excellent guide on how to hunt for ideas and get them in place. They describe the core of innovation and - apart from giving very down-to-earth advice - they turn around arguments I have witnessed in many of the innovation debates.

My apologies when I focus on the China angle here, it is my angle and not of the book, but I learned a few important lessons from the book that should reflect on the debate on how innovative China actually is.

Is China not the 'cut-and-paste' country where few original ideas are the basis of its innovation? Is China able to be innovative, because of its cultural inhibitions? Is its neglect for intellectual property not actually stealing from others? Fischer and Boyton turn around that concept and argue that innovation is mostly a cut-and-past process, and mostly not producing new and original ideas. The better strategy is try existing ideas are use them in a different setting, they argue.
This is an extremely important attitude for an Idea Hunter. Trying to come up with thoroughly original ideas all the time ... is a losing game. The better plan is to identify potentially valuable ideas that either are already being used or have been used in the past. The task then is to slip those ideas into your setting or circumstances.
They use a wide range of examples to illustrate their point. Take for example Sam Walton, the founder of Wal-Mart:
Walton made a habit of prowling for ideas in other people's stores... It was "just part of the educational process," part of his regular exercise. ... Walton had the right attitude as an Idea Hunter. "You can learn from everybody," he taught. "I probably learned the most by studying what my competitor was doing across the street." He gladly conceded that all the ideas tried at Wal-Mart, such as how and where to display items, were copied from stores. His wife, Helen, says he seemed to spend almost as much time in other people's stores as he did in his own.
Let's put this in black and white. In Europe, for example in my native country The Netherlands, basic research seems to be the holy grail of innovation. Original ideas are presented in TV-shows and are funded by the government. We look in admiration at a company like Philips whose research department has been famous for groundbreaking basic research. And, yes, we know all that basic research seldom left the corporate labs, because there was a huge disconnect with their marketing and what consumers really wanted.

Is from that perspective China not much more innovative? And should the innovation debate not be focused more on what we actually get from it, in stead of conducting intellectual debates on concepts and principles that add little value?

Bill Fischer is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
Fischer_William-AImage by Fantake via Flickr

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Sunday, May 22, 2011

China seeks Arctic shipping lanes - Wendell Minnick

An armed suspected pirate looks over the edge ...Suspected pirates via Wikipedia
While the world is fearing the melting polar is, China sees new opportunities for Arctic shipping lanes, writes defense expert Wendell Minnick on his weblog. Other sea lanes could become potentially problematic.
Beijing has had security concerns over the sea lanes of communication. China is dependent on oil and gas shipments from the Middle East. Potential choke points in the Malacca Strait and territorial disputes in the South China Sea have added to the concern. For the first time in China’s modern naval history, it has taken up anti-piracy patrols in the Gulf of Aden to ward off Somali pirates.

Though an Arctic passage would do little to solve security concerns over oil and gas shipments from the Middle East, it would provide a shorter route for China’s exports to Europe. It is estimated that the maritime route between Asia and Europe could be reduced from 15,000 miles to less than 8,000 miles, Wang Kuan-Hsiung, a researcher at National Taiwan Normal University, said.
More at Wendell Minnick's weblog.

Wendell Minnick is a speaker at the China Speakers Bureau. When you need him at your meeting or confer
Wendell_Minnick
Wendell Minnick
ence, do get in touch.
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Thursday, May 12, 2011

Tricia Wang joins China Speakers Bureau

tricia1
The sociologist and tech writer Tricia Wang has joined the China Speakers Bureau. Tricia Wang focuses on the usage of internet and mobile communication in cities and is current doing research in Wuhan among migrant community. Tricia Wang combines strong analytical academic skills with an equally convincing on-the-ground experience in different cities in China.

She has been working with leading mobile companies in trying to understand this booming market and is at the forefront of also this new and fast-growing market of China's inner provinces.

At the China Speakers Bureau we are very happy to work with Tricia Wang, as she is bringing in a new fresh outlook in a very fast changing society, where internet and mobile communication are crucial tools in the development of civil society and commerce.
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Wednesday, May 11, 2011

Inflation raises tensions - Shaun Rein

ShaunReinportraitShaun Rein by Fantake via Flickr
The unusual fine of 2 million RMB (euro 200,000) for Unilever after announced prices rises caused a stampede, illustrates how inflation is becoming a headache for the authorities, Shaun Rein says in various comments.
In AFP:
"This is a very unusual measure. I think it is a way of scaring companies to think twice before they raise prices," Shaun Rein, managing director of China Market Research Group in Shanghai, told AFP...
"Consumers feel it is much harsher... food prices from yoghurt to milk to eggs to cooking oil have gone up 10-20 per cent in the past six months," said Rein.
In Market Watch:
The fine levied on Unilever reflects Beijing’s growing sensitivity about inflation numbers, according to China Market Research managing director Shaun Rein in Shanghai.
Government officials and company executives were also aware of the growing political sensitivity of the issue, Rein said.
“Last month’s leaks really upset certain folks, so everyone will probably be more tight-lipped,” Rein said.
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Imbalance, not overpopulation is our problem - Zhang Juwei

Shanghai 020Aging, one of China's problems
Even China's mostly optimistic People's Daily, the Communist Party newspaper, admits the country has a problem with its demographics, after the results of the latest census appeared. Huge imbalances are China's largest problem, tells Zhang Juwei in MSNBC, no longer overpopulation.
“China doesn’t have overpopulation pressure,” said Zhang Juwei, the deputy chief of the Population and Labor Economics Institute at the Chinese Academy of Social Sciences.  “A structural imbalance is the real problem we’re facing.”
By that, Zhang means a whole host of problems that the one-child policy has engendered.
zjwpic3Image by Fantake via Flickr
Zhang Juwei
Key findings of the new census confirmed Zhang’s points, even prompting the official Communist Party newspaper, the People’s Daily, to say “a crisis looms” and giving rise to a catchphrase found in much of the Western media coverage, that “China will grow older before it gets richer.”
More in MSNBC.

Zhang Juwei is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
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Tuesday, May 10, 2011

Where to make money in China? - Helen Wang

Wang_Helen_HiRes_black_MG_1708Helen Wang
Celebrity author Helen Wang taps into the excitement of Western companies to enter the China market. The paper JingDaily asks her wide ranging questions on her book on China's middle class, The Chinese Dream. Focus on health care and education, she advises foreign companies.
JD: Last year, we interviewed Handel Jones, author of ChinAmerica, who said that education, health and the Internet are going to be the most lucrative sectors for Western companies to tap the Chinese middle class. Would you agree with this? Are there any other sectors you would add?

HW: Definitely, the healthcare and education sectors will provide lucrative opportunities for Western companies. I am not sure about the Internet as it’s currently dominated by domestic companies. But if you look at the e-commerce sector, it could be a game changer. Recently, many VCs have invested in e-commerce and group buying sites as China’s internet users are approaching half a billion.

I think the consumer products sector, particularly in the areas of luxury goods and big ticket items such as automobiles, LCD TVs, and smartphones, will see increasing opportunities for Western companies. I would also add the clean tech sector. Western companies are leading in technology in this field.
More in JingDaily.


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The price tag of anti-Chinese rhetoric in the US - Shaun Rein

The US could lose 1 to 2 trillion US dollar in revenue if they successfully scare away Chinese investors, writes Shaun Rein in CNBC, quoting a recent Asia Society report. "Fear mongering about China by American politicians and businessmen like Donald Trump has made Chinese think twice about investing in the U.S."
A few months ago I was interviewing salespeople in luxury boutiques like Louis Vuitton and Gucci along 5th Avenue in New York. “60 percent of our customers are Chinese,” a salesman at one store told me. “20 percent are Brazilians, and the rest are Europeans and Americans. A few years ago, it was mostly Americans, but not anymore.”...
There are some retail outlets in the U.S. that have been wise enough to adapt their strategy to accommodate high-spending Chinese tourists, including hiring more Mandarin-speaking salespeople. But not all American retailers are that foresighted.
Also Chinese investors have shifted their preference from the US to Europe, Rein says:
In recent interviews, most executives told us they plan to focus on Europe rather than the U.S. because they fear increasing anti-Chinese sentiment here. Cases like telecom giant Huawei’s rejected attempt to acquire 3Leaf Systems have made them nervous, while in Europe the welcome mat is being rolled out for investors.
More in CNBC.

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Shaun Rein
Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting of conference? Do get in touch.
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Monday, May 9, 2011

10 misconceptions on casual gaming - Marc van der Chijs

Marc_vander_Chijs_Pressphoto1Marc van der Chijs
"Girls are no real gamers". This and nine other misconceptions on social and casual games are addressed by Marc van der Chijs, serial internet entrepreneur and angel investor in Shanghai, published in the Business Insider.
1. Gaming is a waste of time and is bad for kids
This is something I hear often but that I totally disagree with. I believe there is a creative and educational layer in many games. But of course it doesn't mean that kids should play all the time. I have two kids myself and find that online games can be an addition to their development. It's important that children also play outside and do sports. Next to that they can also play online games, but they should only play for short lengths of time. Research shows that kids of 3 years old should play maximum 10 minutes per day and 6 year olds should not be online more than 30 minutes per day. If children do that games can be very beneficial. They can learn a lot in games, for example learning to work together, but also getting more self confidence when you achieve something in a game.
Read more: http://www.businessinsider.com/10-misconceptions-about-online-casual-and-social-gaming-2011-5#ixzz1LvaTI5M9

Marc van der Chijs is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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On headbangers and metal in China - Kaiser Kuo

Kaiser KuoKaiser Kuo by shelisrael1 via Flickr
In a short documentary rock musician Kaiser Kuo recalls the emergence of headbangers and metal in China, and the famous band Tang Dynasty. You can read his story also in our book: A Changing China.

Kaiser Kuo is a speaker at the China Speakers Bureau. Do you need him at your meeting, conference or concert, do get in touch.






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Tariff cut needed to boost luxury sales - Shaun Rein

ShaunRein2Shaun Rein by Fantake via Flickr
Chinese have spent last year 13 billion US dollar on luxury goods, but only 40 percent in China itself, says Shaun Rein in CNBC. Because of the high tariffs luxury goods, including cars, are 20-30 percent more expensive on the mainland. "They are shooting themselves in the foot."

Shaun Rein is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.


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Saturday, May 7, 2011

Wage inequality root of unrest - Wang Jianmao

Wang JianmaoWang Jianmao
Increased social unrest is triggered off by the huge wage inequality in the country, tells CEIBS professor Wang Jianmao in the Australian news paper The National.
While official figures are hard to come by, "the people realise the situation is very bad", says Wang Jianmao, a professor of economics at the China Europe International Business School in Shanghai. Prof Wang partly blames China's model of development for the extent of inequality.

"The emphasis so much is, for example, on manufacturing and investment [but] services are underdeveloped," he says. "We ensure that capital can always get very high returns. We fail to generate enough jobs. That has suppressed the labour income."

While in the cities there is an income gap between many of China's 230 million migrant workers and the better-off locally registered residents, a key factor in inequality is the urban-rural divide.
More in The National.

Professor Wang Jianmao is a speaker at the Chinese Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Friday, May 6, 2011

No room for high-risk innovation - Arthur Kroeber

arthurkArthur Kroeber by Fantake via Flickr

Is China becoming an innovative force? Arthur Kroeber belongs to the bears in this debate, he tells Reuters, as the academic climate in the country is too much constrained. Not only lack of intellectual property protection and a failing educational system holds innovation back.
"There's a political constraint, too," said Arthur Kroeber, managing director of GaveKal-Dragonomics in Beijing. "In the long run, innovation arises in societies that are really open, where you can discuss anything. And China doesn't have that kind of political culture yet."..
"For most Chinese companies the aim is to provide 80 percent of global best quality but at 50 percent of the cost," said Kroeber. "If you can make money doing that - and many do - you really have no incentive to invest in high-risk innovation."
More in Reuters.

Arthur Kroeber is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
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Wednesday, May 4, 2011

The pros and cons of Renren's IPO - Jeremy Goldkorn

goldkorn_3Jeremy Goldkorn by Fantake via Flickr
The valuation of China's leading social network Renren has done up dramatically just ahead of its IPO on Wednesday. Jeremy Goldkorn explains in Seeking Alpha why both excitement and caution should lead the investors.
On the pros: It is probably the closest a Chinese internet firm can come to Facebook. Renren has a highly competitive management with much experience in social networks. It has build up a close relationship with (potential) advertisers and is making some money.
On the cons: Renren is not China's equivalent of Facebook and is facing at home a brutal competitive landscape. And while it might make money in the future, is does not do it yet.

More in Seeking Alpha.

Jeremy Goldkorn is one of the leading voices on China's internet scene. He is also a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Tuesday, May 3, 2011

Labor shortage will cause stagnation - Zhang Juwei

Zhang JuweiZhang Juwei by Fantake via Flickr
China's economy will face stagnation in the short term because of the ongoing shortage of labor, tells CASS-professor Zhang Juwei state news agency Xinhua in a dispatch about the effect of aging, based on the latest results from the National Bureau of Statistics.
"The potential emergence of a labor shortage is likely to contribute to slower economic growth in the short term," said Zhang Juwei, professor and director of the Labor and Social Security Research Center at the Chinese Academy of Social Sciences.
China has already reaped the benefits of a demographic dividend, which is believed to have played a role in the country's economic breakthrough, having enjoyed the advantage of abundant cheap labor for decades.
"Wage increases are the most direct response to labor shortages. That will definitely squeeze the profit margin for some low value-added manufacturers," Zhang said.
More in Xinhua.

Zhang Juwei is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
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The reversed gender gap at universities - Bill Dodson

BD_Casual2v2revBill Dodson          
Most are familiar with the gender gap in China, where men outnumber women in national statistics. But Bill Dodson noted recently during lectures at a business school in Ningbo, his class had a reversed gender gap: 70 percent female students.
In his weblog:
After the university talk, I asked my hosts why it was the audience was so tilted toward women. Was it that women who had found the poster advertising the talk found my photo sexy or was it the more urbane fact that there were overwhelmingly more women on campus than men? (Actually, I didn’t ask the first question; though I did entertain the thought).
My host, a young, portly and good-natured student who worked part-time at the library answered, “The curriculum at the school is in English,” he himself answered in accented English. “Women score better on the language portion of the university entrance examination than the men, so more women than men are admitted to the university; also, more women in the undergraduate school enroll in our business school.” He finished quickly, “When we open our engineering school, the campus should attract more men. We hope to have more balance at the school within a couple years.”
Bill Dodson is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
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Monday, May 2, 2011

Taiwan builds stealthy catamarans for Strait - Wendell Minnick

Wendell_MinnickWendell Minnick by Fantake via Flickr
Taiwan plans to build its first prototype of a stealthy 500-ton catamaran corvette in 2012 under the Hsun Hai (Swift Sea) program, Deputy Defense Minister Lin Yu-pao told legislators in April, according to Wendell Minnick on his weblog.
A Taiwan defense source said there are initial plans to build 10 Swift Seas armed with anti-ship missiles.

“We have already finished the research design and the contract design, and the bidding process will begin in 2012 with delivery in 2014,” he said.

The vessels will be deployed in the Taiwan Strait to break a Chinese naval blockade or stop an invasion fleet, he said.

..
Local media reports have dubbed the Swift Sea vessel the “carrier-killer” in response to China’s planned deployment of its first aircraft carrier, the Ukrainian Varyag, expected to begin sea trials this summer. Beijing has not officially named the ship yet. Western guesses include Shi Lang, after the admiral who conquered Taiwan in 1681, and Liu Huaqing, after the father of China’s modern navy.


However, the carrier will most likely be based in the South China Sea and not be deployed against Taiwan except off the east of the island during a conflict, said the Taiwan defense source.


More on Wendell Minnick's weblog.

Wendell Minnick is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Friday, April 29, 2011

The booming value of online game firms - Marc van der Chijs

Marc_vander_Chijs_Pressphoto1Marc van der Chijs
Online gaming has developed in the past five years from a niche market into a booming industry, writes former Spil Games Asia CEO Marc van der Chijs in his weblog. Valuation for gaming companies like Zynga and Playdom have gone up dramatically and valuations will continue to rise.
Times have changed though, nowadays online games are everywhere. Especially social games like Farmville managed to get a lot of new people to start playing games. In the early days social networks helped the growth as well: if your friends invite you to play a game the chance that you will try out the game is a lot higher...
Companies like Zynga (7bn USD) and Playdom (750ml USD) are exceptions, but others see their value also go up:
But for non-social game companies valuations so far where a bit lower. It seems that may be changing though and that investors are starting to realize the potential of these companies. This week it was announced that Bigpoint raised a USD 350 million round at a USD 600 million valuation. The company is not a social game company but focuses on browser based MMO (=massive multiplayer online) games, that are free to play. Bigpoint earns its money with virtual items as well, just like Zynga and Playdom. The big difference is that Bigpoint owns most of its users and is not dependent on a site like Facebook.
I expect that valuations for many other online game properties will go up in the near future, especially for those companies that get a large part of their revenues from virtual goods and that are not dependent on Facebook for their traffic. It will be interesting to see at which valuation these companies are able to raise rounds – or are snapped up by players like Zynga looking to have their own traffic! Based on what I am hearing in the market the revenues of many of these players are doubling every year because of virtual items (just like Bigpoint) and I won’t be surprised to see a billion dollar IPO for one of them within the next 18 months.
Marc van der Chijs is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
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Wednesday, April 27, 2011

Why yelling in China does not work - Shaun Rein

ShaunRein2Shaun Rein by Fantake via Flickr
Shaun Rein explains what he has learned about doing business in China, and how US companies like Google could learn from it. Publicly yelling mostly does not work, he argues in Forbes, describing his first approach with a corruption case a decade ago.
Yelling often doesn't accomplish much in Asia. Even if you're right, it's often better to work patiently. Chinese say you should be like water--you can move fast like a river but also slow as a trickle, depending on the situation.
Take Google's ( GOOG - news - people ) battle with China. Google shouldn't have been so strident and public in demanding that the government end censorship. Everyone wants a freer Internet, but you've got to do what actually leads to improvement...
True reform ultimately needs to come from trusted Chinese showing that rules can be revised without negative effect. Change can't come from foreigners, or from Chinese funded by foreigners. Westerners can and should play key roles in reform, but by offering advice, not arrogant threats, and by presenting examples outside of the system. And always remember that reform is not an easy process. For every two steps forward there is usually one step back.
More in Forbes.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Humor as a tool against the authorities - Jeremy Goldkorn

goldkorn_3Jeremy Goldkorn by Fantake via Flickr
An active and vibrant internet culture trying to push the limits, describes internet expert Jeremy Goldkorn in this video produced by the Asia Society. Humor as a tool against censorship.
(Jeremy's comments after the cartoon).

Jeremy Goldkorn in a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.



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Tuesday, April 26, 2011

Baidu removes 2,8 million literary works - Kaiser Kuo

Kaiser HeadshotKaiser Kuo
In an effort to resolve a high-profile spat with Chinese authors on piracy, the country's leading search engine Baidu removed 2,8 million filles, told company spokesman Kaiser Kuo the BBC, hoping this action would create enough good faith.
More than 40 authors and publishers had accused Baidu that its literary platform, Baidu Wenku was greatly infringing on their copyrights by publishing without their permission. Negotiations about a deal fell flat last week.
The BBC:
"By Tuesday afternoon we had removed almost 2.8 million files, mainly from the Literary Works section of the site, which was the primary concern of the writers and publishers," Baidu spokesperson Kaiser Kuo told the BBC..

"Now that we've scrubbed the site, we hope our good faith action will be a good, solid foundation for future co-operation," Mr Kuo said.
"One thing that this whole episode has amply demonstrated is that Baidu Library is very powerful distribution platform that can be put to very good and profitable use by the authors and publishers in cooperation with Baidu, to the benefit of all parties, especially the readers," he added.
Kaiser Kuo is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
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