Dec
10
Political Potpourri
Filed Under Blog, data protection, Education, healthcare, Industry Analysis, internet, Pearson, privacy, Publishing, STM, Uncategorized | Leave a Comment
When I want to write about innovation a political agenda looms. When I write about what the politicians are doing to the information industry I find it is so deeply unsatisfying and depressing that I am forced back onto descriptions of industry self-survivalism! But at times there is no choice: politics is a burden we all have to bear, and we in the UK bear a particularly heavy burden at the moment. Unless you have been sheltering in an igloo in Lapland awaiting Father Christmas, you cannot have failed to hear something of Britain’s latest Euro Row, which hit gale force this week with the ferocity of the storms that hit Scotland and generated 165 mph winds and set wind turbines alight. The political equivalent of this was a British Prime Minister using his veto in a European Summit and ending up in a minority of four, which is likely to diminish to one.
Why is this in the least interest of the information industry? While Mr Cameron acted in order to prevent his coalition from breaking down and splits developing in his own party, his ostensible reason was to prevent the European Union passing laws disadvantageous to the city of London. Financial services are 10% of UK GDP. They must be protected as the key to success in Europe. Yet, as Lionel Barber, Editor of the Financial Times, notes in his editorial this morning, there is nothing to prevent the 26members of the Union who will now get together in tighter conclave on budget, tax and trading matters to pass laws which discriminate against City interests, as long as those laws do not infringe the current regulation of the greater community of which the UK is still a member. The Prime Minister is claiming victory: he should take care. Every British victory in Europe since 1815 has been followed by Britain losing the peace.
And have a care too in more domestic matters. The junior Business minister, David “Two Brains” Willetts, supported a leadership speech on the importance of the British role in Big Pharma by undertaking to secure, despite lively public protests, the release of anonymized datasets covering diagnostic and prescription practice in the NHS, still the world’s largest health service. Yet he appears to forget that it is impossible to do this unilaterally. Not only are the major pharma players global titans, but providing UK-based players like GSK with information denied to their German or French rivals would be a state aid, or at least a restraint of trade, condemning UK government to the dock in the courtrooms of that very alliance whose powers they have recently been diminishing. And do these data and their availability do anything to promote employment in research labs in the UK? Nothing at all: we are missing the point about a networked economy if we think otherwise.
Elsewhere in the deeply paranoid British civil service, we continued last week in the hugely entertaining game of finding the pea under the information walnut shells. Having declared a Public Data Corporation to trade government-created content with the private sector, public consultations have led to real divisions about what this superstructure is meant to achieve. Local government and SOCITM, the public sector IT professionals, clearly read the intent rather than the effect of the proposals; This is an effort to frustrate the privatization of the UK Land Registry, Ordnance Survey and Met Office by regulatory obfuscation – and it is working splendidly well. Meanwhile, a near meaningless consultation on MiData – a government plan for re-regulating identity protection – has created a panel of private sector players, including Google and the real villains (energy utilities, high street banks) to give consumers more assurance that their identity information is not being grossly misused. The government’s seriousness on this topic is underlined by the size of their budget of £10m ($15m)!
Finally, the week ended with the revelation that school examination boards regularly brief teachers, in seminars paid for by schools, on what the upcoming examination is likely to cover. This is apparently scandalous, as if the huge National Curriculum requirement could ever be fully examined without giving hundreds of question options in the exam papers. What is the purpose of the examination if it is not to test what has been taught? As a result, several examiners have been suspended for cheating, several inquiries have been set in train, and the interesting idea flated that all the examination boards should be combined, and then privatized (since they would then be easier to regulate, fine, and would face regular contract renewal. Pearson already own one board. And ETS formerly held the SATS marking contract but lost it after an equally unilluminating controversy about performance. Change in outcomes then may not be a direct result of the causes of concern.
Apart from which little happened in information market politics last week. Back to innovation next week, with a sigh of relief.
Nov
15
The British Do Irony
Filed Under B2B, Blog, data protection, Financial services, Industry Analysis, internet, news media, online advertising, Publishing, Reed Elsevier, social media, Thomson, Uncategorized, Workflow | 3 Comments
We are always told that a prime difference between the British and their American cousins is that the British “do” irony. So I find it really ironic that, after years of being told in this industry that the credit raters had an unchallengeable hold on their markets because of their unique aggregation skills (not, you will note, their analysis), a six month old start-up which aggregates and gives users free access is giving them holy terrors in the UK. The company is www.duedil.com (give it a transatlantic pronunciation to get the “doodle” moniker they obviously aimed for) and I cannot do better than quote its citation from the excellent news service of the Asia Pacific trade body, Business Information Industry Association (www.biia.com):
“Duedil is a new business information company that offers free financial information sourced from UK’s Companies House (Public Sector Information). It is so confident in the quality of its data, that it offers a £5 payment if one finds any discrepancies in its financials, no questions asked. The company was launched in April 2011 by Damian Kimmelman, owner of “We Are VI Ltd” and co-founder of Mackin Gaming. Duedil claims in its website to have the largest database of free company financials in the world! That is a tall order for an upstart that is only several months in operation. Duedil aggregates data from all over the web and bring this to users along-side information which it pays for. It says the information will correspond directly with the information found at Companies House delivering company financial statements, going back 10 years, with company histories, name changes, litigations, director lists, family graphs & more. According to Duedil, it is funded by Passion Capital, who is predominantly funded by the UK government. Other investors are some of the people behind Skype, LastFM, Yahoo!, AOL & QXL/Tradus, and was chosen as a Microsoft Bizspark company.”
This service is well worth a look. For one thing, the data presentation is good enough to seriously challenge the sector players, and for another the information collection is also hugely competitive. But the irony comes in the thought that a freemium model could be used to take a Trojan Horse right into the middle of the commercial credit rating encampment. Industry professionals rightly point out that Duedil would have to support a great deal of advertising to support such a service long term. But what if that is not the point at all. Instead, a cogent strategy here would concentrate on getting very high free usage levels, and all the time stretch those staid competitors by adding more and more Open Web derived content into the mix, so that the comparison was not with publicly available “official” content, but with the Duedil selection above and beyond that. Then, when you have the attention of the audience, you can begin to charge subscriptions for higher level activities: in-greater-depth analysis, time-elapsed reporting on watch lists, custom service applications for automated purchasing systems, social media-style buying clubs based on shared content with user groups etc. And when you get that second level market locked in, then you will be able to sell plenty of service advertising on the still-free core site.
The creators of DueDil have grasped a key point that the established market has long since conveniently forgotten. The market is all about the collection of commoditized data from the web, and there really is no defensible barrier to entry in that business. Insofar as credit scoring and the development of formulae for rating credit worthiness are concerned, the established industry is on safer ground, but as we used to say on the farm in my youth, if you try to sell potatoes with the dirt on them, you get rich for a while until people realize that clean potatoes cost no more, and are better value. Attempts to sell on openly available content as if it was an “answer” fits this case, and this is the bluff that DueDil calls. Soon, as in every other sector in every information market that I know, the players here those who seek survival will be heading up the value chain. Analytics, the application of Big Data principles and practice, the widespread integration of workflow modelling with third party strategic alliances – all of these are part of the future of a sector which we still call Credit and Business Information, but which we will increasingly come to see as whole web monitoring for business and personal performance.
And as that happens, so will consolidation become more interesting. Choicepoint and Lexis may have been an early sign. Both in the enterprize software solutions field and in the major B2B holdings there must be potential interest in those of the big sector players who add real value. But lets emphasize “value” again – DueDil have demonstrated that the value from pure data collection is negligible, and consolidators, especially if they are deeply into advanced taxonomic search and linked data, may find that smaller regional players in the existing industry have little to add. In the next play, much of their data will look as insignificant as the large and once much vaunted databases of the directory publishers do now.
In short, DueDil is a mouse that roared, and while the elephant of Big Credit is still in the room, he is trying to stand on the curtain rail!
(Declare an interest – I am currently chairman of BIIA – a powerhouse of industry discussion in Asia Pacific!)
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