Technology

104 | GlobeAsia October 2015

In 2013 Google launched Glass, the company’s first foray into augmented reality, with much

fanfare among a small group of beta testers they called “Glass Explorers.” Interest grew at a fevered pace but as usage increased, so did a growing sense that Glass was nothing more than an overpriced toy. By January 2015, Glass was done, and many analysts were left wondering where things went so wrong.

Reports now suggest that the release of Glass’s successor is imminent and the upgraded device appears geared, surprisingly, toward the enterprise market. Are minor tweaks enough to ensure Glass 2.0 doesn’t end up sharing shelf space with HD DVDs and Nintendo Virtual Boy’s in electronic limbo? Glass 2.0 may have its work cut out, but on the bright side, after its predecessor’s disastrous showing, things could only go uphill.

Glass half emptyAs early as its initial release, Glass did feel a little unfinished. In 2013 the Daily Mail referred to it as a “glass half empty.” The paper rightly predicted that it would be years before the product was mainstream. The problem for Glass was that the world didn’t quite know what to make of it yet and neither unfortunately did Google.

Perhaps worse, many feel that the company implied that Glass was much more of a finished product when in fact it was very much in beta. Google put out advertisements and videos that showed Google Glass as consumer technology meant for everyday use.

The disparity made for some very unhappy campers and because of the limited release and prohibitive price there just wasn’t enough value for most people to want to buy it. Those that took the plunge started to feel like

they belonged to a very small club. A portion of this exclusive club of “Glass Explorers” came to be known by a little less flattering term: Glassholes.

When a new word enters the public lexicon and it happens to be a pejorative aimed at users of your product, a company might have a PR issue on its hands. As these Glass Explorers made their way out into the world, it turns out some of them were “exploring” in ways that made other people uncomfortable.

Surreptitious recording was a concern and many people just felt plain awkward having to assume they were being recorded. Google, threading the needle between not wanting to exclude potential customers while still addressing the outrage, hilariously put out a list of etiquette suggestions explicitly asking its users to among other things not be “creepy” or “rude.”

While Google went about setting the bar low for its users, its users began to feel that in relation to their device, Google had set the bar even lower. The number one review for the early version of Glass on Amazon calls it an “expensive, but mostly useless gimmick.” This was the primary complaint across the board for early adopters. Many felt Glass would soon become more mainstream and its utility would correspondingly increase. Those hoping for this were bitterly disappointed.

Early adopters tended to be an optimistic bunch that perhaps forgot Google has a track record for releasing imperfect products as quickly as they can and then iterating on them as time goes on. In a previous column (GlobeAsia, August 2013), I pointed out in reference to Google Glass that “It’s a mistake.... to judge the prospects of this very fascinating technology based solely on product zero.”

When a new word enters the public lexicon and it happens to be a pejorative aimed at users of your product, a company might have a PR issue on its hands.

Google Glass, Project Aura and the Segway strategy

Technology

106 | GlobeAsia October 2015

under Google’s new umbrella corporation Alphabet. Since Google’s focus within the Alphabet corporation post reorganization remains geared mostly towards the consumer market the organization of the project under Google suggests that Google considers Glass and augmented reality intrinsic to its core business. This would further indicate that Google’s focus on Enterprise for Glass is seen perhaps as a stop-gap measure to maintain interest between now and the time when these devices are accepted by consumers.

Google will see Glass throughGoogle has both the will and the means to see this strategy through for Glass. In the short term Google has made the right decision to focus where the market is. Glass has enormous promise in the medical field and in fact once people start viewing these as normal in a work setting, they will no longer be considered creepy and become more accepted.

Reportedly the soon-to-be-released Enterprise edition is expected to fold like regular glasses, be more water resistant, durable and better suited for a work environment. If all this makes it to the final version, there is no reason to doubt that Glass could live to fight another day.

Like Segway, Glass will do much better with enterprise customers but this will doubtlessly disappoint some consumers who just wanted a glimpse of the future and for Google to make better consumer grade wearables. Eventually Google will likely shift gears back to the consumer market when they feel technology and the public are ready.

For now, casual early adopters waiting to get their hands on an updated Google Glass can only hope that the new enterprise/Segway strategy is just that. A temporary segue.

became public it was clear to many that this would be the successor to the Google Glass project.

A new team was assembled for Project Aura that would not only be focused on the next iteration of Glass, but surprisingly also on Google’s ever-expanding portfolio of IoT devices and other wearables like Google Cardboard (the company’s budget virtual-reality toy).

Google reportedly went on a hiring spree in order to stock its new division with some of the top talent. Business Insider reported that Google’s hiring spree included three key senior engineers from Lab126, an R&D firm owned by Amazon. The new hires, Dmitry Svetlov, Amir Frenkel and Tina Chen were involved in several high-profile products like the Amazon Fire phone, Fire TV and Amazon Echo.

Considering Google Glass’s history, the Lab126 alums are in great company. One has to wonder however why this seemed like a good idea to the folks at Google. The company responsible for Google Glass recruiting the people responsible for the Amazon Fire phone seems a little bit like the blind leading the blind.

The biggest change, perhaps, is that Google has taken a page from another high-profile failure - the Segway - and decided to focus on the enterprise model instead. Those who remember the launch of the Segway in 2001 remember the huge hype with which it was launched before fading into obscurity shortly thereafter. What may not be so apparent is that the Segway has achieved modest success in its second act as specialized transport in areas like airports and tends to be popular with walking tours and security guards.

This is exactly the tack Google should take. The fact is, Glass will never be mainstream unless they’re mandated in certain industries and the people working there no longer feel silly wearing them. Glass is a long way from general adoption perhaps because society hasn’t quite formulated the etiquette around them yet. Making Glass an enterprise product will go a long way towards increasing adoption.

In light of this new enterprise strategy for Glass, the company’s current structure is intriguing. As mentioned, Project Aura is expected to encompass Google’s IoT and wearable technologies but Google’s other offerings in this space are all clearly marketed to consumers. In contrast, the next version of Glass is expected instead to be marketed to enterprise customers.

Project Aura will also continue to exist as a part of Google rather than as a separate business SO

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Like Segway, Glass will do much better with enterprise customers but this will doubtlessly disappoint some consumers who just wanted a glimpse of the future and for Google to make better consumer grade wearables.

VOLUME 9 NUMBER 10 / OCTOBER 2015

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Dian SiswariniBreaking the glass ceiling at XL Axiata

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Susi Pudjiastuti Anita TanjungTri Rismaharini

End of Golden Era: Corporate Profits Set to Fall

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Columnists16 Paulius KuncinasThailand sees surge in office demand

20 Steve Hanke The Rupiah is in trouble, again

24 Jamil Maidan FloresThe Republic: A philosopher once led Singapore and made all the difference

100 Wuddy Warsono The way of the intercepting fist

104 Jason Fernandes Google Glass, Project Aura and the Segway strategy

108 Scott YoungerRural development in eastern Indonesia

110 Keith Loveard The view from Budapest

contentsVOLUME 9 NUMBER 10 / OCTOBER 2015

global trends28 The new global competition for corporate profitsOver the past three decades, global corporations have enjoyed record profit growth on the back of the rise of emerging markets, lower costs and deregulation.

special report 96 Perfect capitalism in a digital worldDriverless cars are now a reality. Google glasses allow the wearer instant access to unmatched information. Digital wallpaper will transform living rooms into doctor’s offices and supermarkets.

EVENT112 Lifetime Achievement Award for Mochtar Riady living the goodlife

122 Sunday food-dayGlobeAsia goes on a full (stomach) review of the Sunday brunch at Spectrum Restaurant at the Fairmont Jakarta and Sana Sini Restaurant at the Pullman Jakarta.

Back Page124 SMA Kebon Dalem Semarang

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96 | Shoeb Kagda and Prof. Michio Kaku

112

8 | GlobeAsia October 2015

At a time of economic uncertainty, there is much debate on just what ails the Indonesian economy. President

Joko Widodo and his government recently announced an economic stimulus package that focuses on deregulation and unlocking bottlenecks.

This is a good first step as it will hopefully remove or reduce bureaucratic red tape and ultimately lower the cost of business. The stimulus package, however, does not address one of the fundamental factors behind the current economic slowdown: falling consumer demand.

With the collapse of commodity prices, incomes of farmers, traders and suppliers have all dropped sharply. This in turn has impacted consumption, one of the drivers of gross domestic product growth over the past decade.

It is therefore crucial that businesses, especially small and medium enterprises are given some support either in the way of fiscal assistance or by lightening regulations. It would also be immensely helpful if the government and parliament relaxed the ever-tightening noose around foreign businesses.

Indonesia is at a crucial junction. If it continues on the path of protectionism and erecting barriers to foreign businesses, it will go backwards. The economy will

Editor’s NoteEditorialEditor in ChiefShoeb Kagda

Managing Editor Yanto Soegiarto

Deputy Editors Muhamad Al Azhari

Editor at LargeJohn Riady

Senior EditorAlbert W. NontoDenverino Dante

Contributing EditorsFarid HariantoSteve HankeScott Younger

ContributorsFrans WinartaJason FernandesWuddy WarsonoPaulius Kuncinas

Special ColumnistJamil Maidan Flores

ReportersVanesha ManuturiDion Bisara

Art, Design and LayoutGimbar MaulanaElsid ArendraAgustinus W. TriwibowoNela RealinoWulan Tagu Dedo Rudi Pandjaitan

Senior PhotographersM. DefrizalSuhadi

ProductionAssistantDanang Kurniadi

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Why women matter stagnate and ultimately local businesses will suffer.

While the larger domestic businesses will likely be able to take care of themselves, SMEs will be hit hard. And women, in particular, will find that their financial independence and ability to earn a livelihood will regress. This will be unfortunate as over the past two decades women have made great strides in increasing their contribution to the overall economy.

Women own 35% of

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Indonesia’s SMEs and it is these businesses that drive the country’s economic growth. The openness of the economy has created new opportunities for women entrepreneurs and allowed them to improve their lives. By pursuing policies that will essentially lead to the narrowing of economic space, the government is restricting the role of women.

Women comprise more than half the global economy, 40% of the global workforce and more than $20 trillion in financial spending worldwide. Their role in the Indonesian economy is no less critical.

Women have a multiplier effect as consumers, building new markets as they make the majority of purchase decisions. Increasing their economic participation is central to the country’s economic growth and social progress.

Each year, GlobeAsia publishes the 99 Most Powerful Women list to focus national attention on the role of women in Indonesian society at large and in the economy. The list celebrates women and their accomplishments but, more importantly, reminds us that harnessing female talent is crucial to the country’s progress.

Shoeb KagdaEditor in Chief

shoeb@globeasia.com