Ocean Medallion: Smooth Cruising on a ‘Smart’ Ship

Quartz: John Padgett, chief experience and innovation officer of Carnival Cruises, “previously worked for Disney, where he was instrumental in the creation of the MagicBand, a wristband meant to help reduce the aggravations of the typical Disney vacation … At Carnival, Padgett and his team quickly set out to create Carnival’s own version of the Disney MagicBand, called the Ocean Medallion. It uses AI to take the MagicBand technology to another level. Instead of just alleviating the ‘friction’ of typical travel experiences (lines, room keys, paying for things) it will use data to anticipate what you want to do, eat, and see.”

“The Medallion, offered first on Carnival’s Princess cruise line, is about the size of a quarter … It facilitates boarding and cuts down on wait times. It can be used to pay for things on the cruise, it unlocks the door to your room as you approach, and can be used on the ship-wide gambling platform. Carrying the Medallion means the staff knows your name and where you are. If you order a drink, they can come find you to deliver it. If you go to another bar on board, the staff already knows what you like. The Medallion also updates your information, keeping track of your likes and dislikes, what activities you enjoy, and what you consume. It anticipates other activities you’ll enjoy and the side trips you’ll want to take.”

“In many ways the Medallion is a beta launch of the first fully wired smart city. What it takes to make it work could one day be used on land. Padgett says the technology is innovative because the preferences you reveal are updated in real time. You order a Martini and every crew member on the ship instantly knows more information about you, and is that much closer to determining whether you might enjoy trying scuba diving—or just kicking back in your stateroom with an old episode of The Love Boat.”

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Mistaken Identities: Fake Birthdates Foil Facebook

The Wall Street Journal: “A recent survey of U.S., French, German, Italian and British consumers found that 41% had intentionally falsified personal information when signing up for products and services online. Most common was providing a fake phone number … Respondents also said they have provided a false birth date, made up a postal address, lied about a name or selected the wrong gender.”

“All the lying does seem to foil advertisers. It is ‘a much bigger problem than people are aware of,’ says Nick Baker, director of research and consulting of U.K. market research company Verve, which conducted a 2015 survey showing a large amount of fake information on website registrations and the like. Incorrect birth years, he says, are particularly nefarious because advertisers are often trying to match up habits or buying patterns with a specific age group.”

“But some companies that provide data to marketers say they are depending less and less on biographical information. Preethy Vaidyanathan, the chief product officer of New York-based marketing technology company Tapad, says they track much more valuable information from phone and web browser use.”

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Bingo Box: China Leads Robo-Retail Revolution

The New York Times: “A global race to automate stores is underway among several of the world’s top retailers and small tech start-ups, which are motivated to shave labor costs and minimize shoppers’ frustrations, like waiting for cashiers … Companies are testing robots that help keep shelves stocked, as well as apps that let shoppers ring up items with a smartphone … China, which has its own ambitious e-commerce companies, is emerging as an especially fertile place for these retail experiments.”

“One effort is a chain of more than 100 unmanned convenience shops from a start-up called Bingo Box, one of which sits in a business park in Shanghai. Shoppers scan a code on their phones to enter and, once inside, scan the items they want to buy. The store unlocks the exit door after they’ve paid through their phones … Not to be outdone, JD, another big internet retailer in China … put readable chips on items to automate the checkout process. At its huge campus south of Beijing, JD is testing a new store that relies on computer vision and sensors on the shelves to know when items have been taken.”

“While such technologies could improve the shopping experience, there may also be consequences that people find less desirable. Retailers like Amazon could compile reams of data about where customers spend time inside their doors, comparable to what internet companies already know about their online habits … In China, there is less public concern about data privacy issues. Many Chinese citizens have become accustomed to high levels of surveillance, including widespread security cameras and government monitoring of online communications.”

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Mastodon: The Anti-Facebook?

The Washington Post: “Mastodon, a Twitter-like social network has had a massive spike in sign-ups … As the #DeleteFacebook movement has gained steam, people are registering for Mastodon at four times the rate that they normally do, according to Eugen Rochko, the service’s creator. Between Monday and Tuesday alone, Mastodon gained about 5,800 new users … That’s more new registrations than what Mastodon typically sees over an entire week.”

“For a social network — Mastodon has 1.1 million users to Facebook’s 2.2 billion — that may not sound very impressive. But what makes Mastodon increasingly attractive, particularly in a post-#DeleteFacebook world, is its attitude toward data and control … Mastodon’s code is open-source, meaning anybody can inspect its design. It’s distributed, meaning that it doesn’t run in some data center controlled by corporate executives but instead is run by its own users who set up independent servers. And its development costs are paid for by online donations, rather than through the marketing of users’ personal information.”

“Rooted in the idea that it doesn’t benefit consumers to depend on centralized commercial platforms sucking up users’ personal information, these entrepreneurs believe they can restore a bit of the magic from the Internet’s earlier days — back when everything was open and interoperable, not siloed and commercialized.”

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How Big Data Disrupts Big Brands

The Washington Post: “Launched in 2015, ZX Ventures is charged with ‘disrupting’ the beer industry by developing and investing in businesses that will provide value and improve user experiences — and make more money for AB InBev — somewhere down the road. They’ve invested in e-commerce delivery systems, beer-rating applications and home-brew suppliers, all of which provide data points that can tell them about trends and help them get ahead of the market.”

“According to its mission statement, ‘ZX Ventures is hopelessly dedicated to creating and analyzing the data necessary for determining our ideal strategies, products and technologies. We believe that the more we know and learn about our consumers and products, the better chance we have of anticipating their needs in the future.’ Translation: They want to know everything about purchasing patterns and decisions. What are customers looking for? What are influencers thinking? How can they make it easier to get AB InBev’s products into the hands of people who might want beer?”

“The ZX Ventures team is interested in access to a large number of data points: The most popular and trending beers, styles and search terms in any region around the world. Are more people giving high ratings to saisons in London than Los Angeles? Are Bavarians searching for IPAs available to them? What are the most highly rated beer bars in the Southeast? Which beer styles have grown the most in the last year, in terms of average ratings or the number of searches, and where? If certain cities are rating sour beers higher than the norm, for example, Elysian’s sour pineapple seasonal or a new wild saison from Wicked Weed could be given extra promotional play in those markets.”

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Retailers Miss Mark With ‘Targeted’ Emails

The Wall Street Journal: “Traditional retailers were once pioneers of using data to zero in on what customers want. But as the importance of their catalogs and mailings have been overtaken by email and other online media, they have struggled—sometimes to the frustration of their customers.”

Brendan Witcher of Forrester comments: “Nearly 90% of organizations say they are focused on personalizing customer experiences, yet only 40% of shoppers say that information they get from retailers is relevant to their tastes and interests. The ugly truth is that most retailers haven’t done the (hard) work of understanding how to use the data.”

“At no time is that more evident than during the year-end shopping bonanza, when retailers deluge customers with messages. During last year’s holiday season, retail emails increased 15% compared with the rest of the year, but shoppers opened 15% fewer of them, according to a study of eight billion messages by marketing-services firm Yes Lifecycle Marketing.”

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Google Gaggle: Predicting Restaurant Wait Times

USA Today: “Google Search (and eventually Google Maps) will show diners the estimated wait times for local restaurants to help them skip the crowds and jump the lines. The new feature expands on Google showing consumers looking to change their oil and get their hair cut how busy local businesses typically are. Google gathers this information from aggregated and anonymized data from users who allow Google to track their location using Google apps on their phones or other devices.”

“Now, says Google, diners can click on a time frame and see live or historical data on how busy a restaurant is expected to be and the estimated wait time. The information will be available for nearly 1 million sit-down restaurants around the globe. And up next, says Google: Grocery stores.”

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Clubhouse Culture: How Houston Solved Its Problem

The Wall Street Journal: “Under Jeff Luhnow’s stewardship, the Houston Astros developed into the industry’s most analytically driven organization, relying almost entirely on data to navigate through a full-blown rebuild … But for all of their bold ideas, the Astros too often forgot about one important aspect: their players.” However a willingness to embrace “the value of chemistry and culture paid enormous dividends in 2017: The Astros won the World Series, their first since the franchise’s creation in 196.”2

“It represented a subtle, but crucial shift in the Astros’ thinking. Though numbers remain their focus, the driving force that propelled them from the bottom of the standings to the pinnacle of the baseball universe, Luhnow learned a lesson along the way: To deny the significance of chemistry ignores a critical component of the equation that equals a championship roster.”

“For sure, the Astros didn’t revolutionize the concept of caring about chemistry. The Chicago Cubs, the World Series champions in 2016, also prioritized traits they could not measure in players. Few expected the Astros to do the same. Now, however, they will parade down the streets of downtown Houston as champions.” Luhnow comments: “Culture is a hard thing to really quantify. But when you see it you know it’s there.”

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Slowball: Is ‘Big Data’ Wrecking Baseball?

The Wall Street Journal: “Baseball has never been more beset by inaction. Games this season saw an average gap of 3 minutes, 48 seconds between balls in play, an all-time high … A confluence of hitting, pitching and defensive strategies spawned by the league’s ‘Moneyball’ revolution have all played a role. That makes baseball, whose early use of big-data strategies was embraced by the business world in general, a case study in its unintended consequences.”

For example: “Statistics showing precisely when starting pitchers become less effective have prompted teams to remove them from games earlier than before. That has increased one of the biggest drags on pace of play: pitching changes. Regular-season games this year saw an average of 8.4 pitchers used between both teams, an all-time high. That’s up from 5.8 pitchers a game 30 years ago.”

“Radar and camera measurements of the angle at which balls leave the bat have shown that the optimal swing angle looks more like an uppercut than many hitters preferred. Hitters, in turn, have started swinging for the fences in droves. Home runs this season reached a record level. That all-or-nothing approach means that between each home run there is a lot of standing around and waiting. Some classic displays of athleticism—a daring attempt by a runner to advance more than one base on a teammate’s hit, for instance—have become rarer.”

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