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	<title>WalterNaeslund.com &#187; Here Comes The Social Internet Bank! &#8211; WalterNaeslund.com</title>
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	<description>Walter Naeslund. Founder and CEO of The Advertising Agency Honesty. Professional Speaker.</description>
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		<title>Here Comes The Social Internet Bank!</title>
		<link>http://walternaeslund.com/here-comes-social-internet-bank/</link>
		<comments>http://walternaeslund.com/here-comes-social-internet-bank/#comments</comments>
		<pubDate>Sun, 31 Jan 2010 19:44:40 +0000</pubDate>
		<dc:creator>Walter Naeslund</dc:creator>
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		<description><![CDATA[Money is important to us. Control over our life situation is too. But then, how can we possibly accept Internet banks as they are today. How can we possibly think that it&#8217;s okay to, say, not be able to get a visual overview analysis of our expenses and incomes? How can we possibly put up [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><span class="drop_cap">M</span>oney is important to us. Control over our life situation is too. But then, how can we possibly accept Internet banks as they are today. How can we possibly think that it&#8217;s okay to, say, not be able to get a visual overview analysis of our expenses and incomes? How can we possibly put up with the long and complicated OCR-numbers or basic search functionality? And how is it possible that we have such user hostile login procedures?</p>
<p><strong>I can&#8217;t present all my ideas for my perfect Internet banking experience in just one post, but I can show you three examples of what Internet banking would look like if I had my say, and also what I think it <em>will</em> look like in just a couple of years. Here we go!</strong></p>
<h2>Facebook Secure Connect</h2>
<p><img style="max-width: 800px;" src="http://walternaeslund.com/wp-content/uploads/2010/01/facebooksecureconnect1.jpg" alt="" /></p>
<p><span class="drop_cap">L</span>ogging in to your Internet bank today is more or less of a hassle depending on your particular bank, but it&#8217;s nevertheless a hassle. Banks have been lagging behind the times here, focusing on security, but not on usability. The market forces will inevitably push us closer to an optimal trade off between <em>security </em>and <em>usability</em>. We see people leaving their bank today, simply because the login security solution is too complex (using USB-hardware for example).</p>
<p>To creatively solve this problem outside identification providers will step in. On of those will be Facebook. Our online identity is contained in our Facebook accounts, our Google Profiles, Twitter accounts and other services that we haven&#8217;t even learned the names of yet. We have come to trust them for logging in to other services now, and since more advanced transactions are taking place using this login by the minute (buying major chunks of advertising for example), a need for more secure identification procedures will arise. A second version of Facebook Connect called <strong>Facebook Secure Connect</strong> will be launched using secure authorization technology and will eventually be adopted by the banks. One bank will lead this evolution and the others will be both inspired and forced to follow.</p>
<p>Facebook will lead the way in this development, but Google will be quick to follow. To compete with Facebook, Google will go on a marketing rampage for secure <strong>OpenID</strong> and couple with <strong>Google Budget Analytics</strong>:</p>
<h2>Google Budget Analytics</h2>
<p><img style="max-width: 800px;" src="http://walternaeslund.com/wp-content/uploads/2010/01/googleBudgetAnalytics.jpg" alt="" /><br />
<span class="drop_cap">T</span>he amount of control you have over your budget and cash flow today at your ordinary Internet bank is really a joke. You get a list of your transactions and not much else. Besides that, it&#8217;s also really messy to go back and check out your history. My own bank has recently made it possible to export to Excel XLS-format, but give me a break – XLS? In 2010?</p>
<p>Instead, when you log in to your bank using secure OpenID all transactions will automatically be indexed, fully searchable and categorized. You will be able to analyze your economy at all levels from the very basic (cigarettes, food, rent) to the very advanced with cluster analysis, seasonal trends, forecasts and goal tracking.</p>
<p>In step two, Google will also launch <strong>Google Budget Analytics For Business</strong> where you can do your books and account distributions more or less automatically. This will kick ass for small businesses.</p>
<p>Facebook&#8217;s reply to this will be to enable sharing services where you can share selected transactions and events in your feed, much like what <a href="http://blippy.com" target="_blank">Blippy</a> does today. Come to think of it, Facebook will probably buy Blippy.</p>
<h2>Open Banking API</h2>
<p><img style="max-width: 800px;" src="http://walternaeslund.com/wp-content/uploads/2010/01/ibank.jpg" alt="" /></p>
<p><span class="drop_cap">F</span>inally, banks will realize that they are best at doing what banks do, and will hand over interface design and function to the experts. Banks will release secure API-sets to allow third party specialized internet bank companies to connect to their systems. This will in turn open up the market for hardcore competition. Google will be way ahead already and will release <strong>Google Bank</strong> which will be an big expansion of Google Budget Analytics. Here, they will also have tight integration with Google Spreadsheets, and will also allow for seamless integration with Google Chat, Google Voice and Gmail for interacting with your bank&#8217;s customer service.</p>
<p>And what about Apple – the self proclaimed customer experience rulers of the universe? They won&#8217;t remain on the sidelines for long.</p>
<p>Man, I wish I had the cash to go into this one myself. Call me if you know any investors who would like to change the world with me on this one.</p>
<p>Update: Interesting link about the <a href="http://www.e24.se/pengar24/din-ekonomi/bank-och-forsakring/alla-internetbanker-far-hard-kritik_2355781.e24">poor quality of internet banking</a> (in Swedish).</p>
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		<title>Finland Becomes The World&#8217;s Best Internet Nation!</title>
		<link>http://walternaeslund.com/finland-becomes-the-worlds-best-internet-nation/</link>
		<comments>http://walternaeslund.com/finland-becomes-the-worlds-best-internet-nation/#comments</comments>
		<pubDate>Thu, 15 Oct 2009 08:18:46 +0000</pubDate>
		<dc:creator>Walter Naeslund</dc:creator>
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		<guid isPermaLink="false">http://walternaeslund.com/finland-becomes-the-worlds-best-in-while-other-countries-fall-behind/</guid>
		<description><![CDATA[Suddenly my Twitscoop-window started screaming at me with two huge keywords: &#8220;Finland&#8221; and &#8220;Broadband&#8221;. What the&#8230; I thought and started investigating. Turns out Finland, as the first country in the world, has made broadband access each citizens right by law, and suddenly, BOOM, Finland is on the map as the most progressive country in the [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><span class="drop_cap">S</span>uddenly my Twitscoop-window started screaming at me with two huge keywords: &#8220;Finland&#8221; and &#8220;Broadband&#8221;. What the&#8230; I thought and started investigating. Turns out Finland, as the first country in the world, has made <a target="_blank" href="http://www.huffingtonpost.com/2009/10/14/finland-broadband-access_n_320481.html">broadband access each citizens right by law</a>, and suddenly, BOOM, Finland is on the map as the most progressive country in the world. It&#8217;s actually part of my <a target="_blank" href="http://walternaeslund.com/what-the-world-will-look-like-in-25-years/">25 year prediction for the future</a>: </p>
<blockquote><p>&#8230;we retain the symmetry of the internet. We treat it like infrastructure in place to make markets and information flow efficient. Like a great system of streets and water pipes.
</p></blockquote>
<p>Meanwhile in other countries, legislation is passed allowing suspension from the internet as a good and fair punishment for passing along &#8220;propriatary&#8221; information. Make a projection from these two scenarios to see where they&#8217;ll end up in terms of innovation and growth, and also compare them to the 25-year prediction post above. In Sweden we just passed the FRA-law, which also leads us in the wrong direction, even if I personally don&#8217;t think it&#8217;s remotely as dagerous as the IPRED and IPRED2 laws.</p>
<p>Anyway, hats of for Finland, who have now proven themselves as forerunners in the online world! Congratulations!</p>
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		<title>New And Highly Creative SEO-Strategy!</title>
		<link>http://walternaeslund.com/new-and-highly-creative-seo-strategy/</link>
		<comments>http://walternaeslund.com/new-and-highly-creative-seo-strategy/#comments</comments>
		<pubDate>Thu, 01 Oct 2009 10:06:46 +0000</pubDate>
		<dc:creator>Walter Naeslund</dc:creator>
				<category><![CDATA[Thoughts on Marketing]]></category>
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		<description><![CDATA[@simonnystrom drew my attention to a new and highly creative SEO-strategy a few minutes ago. Perhaps this could be an idea for agencies if they don&#8217;t want to change their head-in-the-sand-internet-strategy?]]></description>
			<content:encoded><![CDATA[<p></p><p><span class="drop_cap">@</span><a target="_blank" href="http://twitter.com/simonnystrom">simonnystrom</a> drew my attention to a new and highly creative SEO-strategy a few minutes ago. Perhaps this could be an idea for agencies if they don&#8217;t want to change their head-in-the-sand-internet-strategy?</p>
<p><img style="max-width: 800px;" src="http://walternaeslund.com/wp-content/uploads/2009/10/Sk%C3%A4rmavbild-2009-10-01-kl.-12.02.03.png" /></p>
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		<title>Do Dictatorships Use Social Media More Effectively Than Corporations?</title>
		<link>http://walternaeslund.com/do-dictatorships-use-social-media-more-effectively-than-corporations/</link>
		<comments>http://walternaeslund.com/do-dictatorships-use-social-media-more-effectively-than-corporations/#comments</comments>
		<pubDate>Thu, 24 Sep 2009 09:48:11 +0000</pubDate>
		<dc:creator>Walter Naeslund</dc:creator>
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		<description><![CDATA[I&#8216;ve done quite a bit of thinking about how the social web will make the world a better place. I&#8217;ve written about it, and also lectured about the social web, good, and evil. So when a talk by Evgeny Morozov popped on TED on the topic of how the net aids dictatorships, I was naturally [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><span class="drop_cap">I</span>&#8216;ve done quite a bit of thinking about how the <a target="_blank" href="http://walternaeslund.com/?s=evil">social web will make the world a better place</a>. I&#8217;ve written about it, and also <a target="_blank" href="http://www.slideshare.net/walternaeslund/do-social-never-lie">lectured about the social web, good, and evil</a>.</p>
<p>So when a talk by Evgeny Morozov popped on TED on the topic of <a target="_blank" href="http://www.ted.com/talks/evgeny_morozov_is_the_internet_what_orwell_feared.html">how the net aids dictatorships</a>, I was naturally interested. Was somebody going to put up a good argument against my theories?</p>
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<p>The answer is yes. And no. Evgeny argues beautifully for the ideas, but simultaneously shows how the dictatorships actually start using the web to reach out and communicate, much like I think companies should. They are proactive, the contribute, they engage, and they are present. They DON&#8217;T try to cencor stuff, because they have realized that participation is more effective. And I tell you – if dictatorships do this successfully, companies should too!</p>
<p>Then, of course, these dictatorships abuse their power to flood the system with government biased comments and spam, and commit evil acts, but I&#8217;m not as sure as Evgeny is about how effective this is. Compare it for example to this example from the very well designed <a target="_blank" href="http://www.intel.com/sites/sitewide/en_US/social-media.htm">guidelines at Intel for how to effectively use the social web</a>: </p>
<blockquote><p><strong>Be transparent</strong>. Your honesty—or dishonesty—will be quickly noticed in the social media environment. If you are blogging about your work at Intel, use your real name, identify that you work for Intel, and be clear about your role. If you have a vested interest in something you are discussing, be the first to point it out.</p></blockquote>
<p>This is not a guideline that the dictatorships exactly follow. On the other hand, perhaps other commenters don&#8217;t dare use their real name either for fear of physical abuse, so this way It may actually work for government agents to blend into the anonymous crowd. Again – we see an example of how anonymity leads to evil and abuse.</p>
<p>Incidently, the campaign led by <a target="_blank" href="http://walternaeslund.com/is-spotify-the-darth-vader-of-music/">The Cartel</a> to hunt down file sharers also leads to anonymization of the web, making laws like HADOPI and IPRED all the more troublesome – and also promoters of more serious evil.</p>
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		<title>Understanding Web Copy and Why it Will Cost You Big Bucks!</title>
		<link>http://walternaeslund.com/understanding-web-copy-and-why-it-will-cost-you-big-bucks/</link>
		<comments>http://walternaeslund.com/understanding-web-copy-and-why-it-will-cost-you-big-bucks/#comments</comments>
		<pubDate>Mon, 21 Sep 2009 10:50:17 +0000</pubDate>
		<dc:creator>Walter Naeslund</dc:creator>
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		<description><![CDATA[It was more than eleven years ago that I started my academic career at the M.Sc.-program for media technology at Linköping Institute of Technology. Way back then, the web was completely different, Google didn&#8217;t exist (it was actually founded the same year), and ICQ was the name of the game for communication. But it wasn&#8217;t [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><span class="drop_cap">I</span>t was more than eleven years ago that I started my academic career at the M.Sc.-program for media technology at Linköping Institute of Technology. Way back then, the web was completely different, Google didn&#8217;t exist (it was actually founded the same year), and ICQ was the name of the game for communication.</p>
<p>But it wasn&#8217;t too long ago that I went to ad school, and now that I think of it, I find a few things about my education there quite strange. While I was there I did a bunch of interesting stuff. Formally, I was a copywriter student at Berghs School of Communication, but in reality I was more into strategy, and I also did one of my internships as an <em>art director</em> at<a title="BBH" href="http://bartleboglehegarty.com" target="_blank"> BBH New York</a> (who also have an <a title="BBH Site Search" href="http://www.google.se/search?q=site%3Ahttp%3A%2F%2Fbartleboglehegarty.com%2F&amp;ie=utf-8&amp;oe=utf-8&amp;aq=t&amp;rls=org.mozilla:sv-SE:official&amp;client=firefox-a" target="_blank">SEO-questionable</a> big <a title="Brindfors Flash Site" href="http://walternaeslund.com/lowe-brindfors-copy-the-forsman-bodenfors-seo-mistakes/" target="_blank">Flash-behemoth</a> as their site by the way). I have always loved trying different things, and this was certainly a great opportunity to do that.</p>
<div class="wp-caption alignnone" style="width: 480px">
	<img title="My desk at BBH New York." src="http://walternaeslund.com/wp-content/uploads/2009/09/bbh.jpg" alt="" width="480" height="321" />
	<p class="wp-caption-text">Oh, nostalgia. My desk at BBH New York.</p>
</div>
<p>But the copywriting education itself was flawed in one key way – whoever put it together didn&#8217;t seem to be aware of something called &#8220;the internet&#8221;. I never once in two years heard anyone talk about web copy, much less give a lecture on SEO. I&#8217;m not sure how it is there today, but if they don&#8217;t dedicate time to that, I think it is very strange.</p>
<p>But the problem isn&#8217;t just in the schools. I read an article recently in the Swedish advertising magazine <a title="Framtidens Reklam" href="http://www.resume.se/nyheter/2009/09/07/de-skriver-framtidens-rekl/index.xml">Resumé</a> by a young and successful copywriter who said that web copy doesn&#8217;t differ very much from traditional copy. This is what he said:</p>
<blockquote><p>&#8220;Jag ställer mig också ibland frågande till definitionen av webbcopy. Skillnaden är inte så stor, det är bara de dramaturgiska förutsättningarna som är lite annorlunda. Men i grunden handlar det om att kunna skriva intresseväckande&#8221;.</p></blockquote>
<p>or in my own humble English translation:</p>
<blockquote><p>&#8220;I sometimes question the definition of web copy. The difference isn&#8217;t that big, it&#8217;s just the dramaturgical premises that are somewhat different. But basically, it&#8217;s all about writing to awaken interest&#8221;.</p></blockquote>
<p>Assuming he was quoted correctly, I find this strange. We can of course have different perspectives on what constitutes a <em>big</em> difference, but I would say that the difference is definitely significant! And more importantly, most copywriters don&#8217;t have any knowledge of, or experience from writing for search engines.</p>
<p>Google isn&#8217;t like your normal target audience. For one, <strong>Google doesn&#8217;t read between the lines</strong>. Humans understand that a passage like <em>&#8220;&#8230;the dark mysterious pulse of the the night&#8230;&#8221;</em> refers to, say, dance or sex, but can Google understand that? Google does, on the other hand, read <em>around</em> the lines, takes context into account, weighs remote links, clusters and evaluates what others have written – stuff that humans have a harder time doing.</p>
<p>I tell copywriters <strong>&#8220;to write for the hearts of men and the mind of Google&#8221;</strong>, and that is much harder than just doing one or the other. Good copywriters will need <em>two </em>sets of skills, and will be harder to find, harder to educate, and much more expensive to buy, simply because of the upcoming imbalance between supply and demand of this skill combo.</p>
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		<title>Lowe Brindfors Copy the Forsman &amp; Bodenfors SEO Mistakes</title>
		<link>http://walternaeslund.com/lowe-brindfors-copy-the-forsman-bodenfors-seo-mistakes/</link>
		<comments>http://walternaeslund.com/lowe-brindfors-copy-the-forsman-bodenfors-seo-mistakes/#comments</comments>
		<pubDate>Tue, 15 Sep 2009 09:59:26 +0000</pubDate>
		<dc:creator>Walter Naeslund</dc:creator>
				<category><![CDATA[Thoughts on Marketing]]></category>
		<category><![CDATA[Advertising]]></category>
		<category><![CDATA[beautiful]]></category>
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		<guid isPermaLink="false">http://walternaeslund.com/?p=1417</guid>
		<description><![CDATA[Last week I wrote about how Forsman &#38; Bodenfors don&#8217;t understand how the internet works. In absolute terms, the description was fair, but in relative terms, they are not worse than most of the advertising business. Yesterday we got another painfull piece of evidence to that effect. I&#8217;m talking about the brand new website of [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><span class="drop_cap">L</span>ast week I wrote about how <a href="http://walternaeslund.com/forsman-bodenfors-and-svenska-kyrkan-dont-know-google/" target="_blank">Forsman &amp; Bodenfors</a> don&#8217;t understand how the internet works. In absolute terms, the description was fair, but in relative terms, they are not worse than most of the advertising business. Yesterday we got another painfull piece of evidence to that effect.</p>
<p>I&#8217;m talking about the brand new website of Lowe Brindfors. But to discuss the site we need to separate two things: Design and communications efficiency.</p>
<h3>Design</h3>
<p>It&#8217;s a matter of taste of course, but I think this page is very well designed from a print designers point of view. It&#8217;s excellent print design, but awful interactive design. Because it is not interactive. It&#8217;s like designing a very pretty car with only passenger seats. And just like such a beautiful but useless car, this site belongs in a museum. Which leads me into point 2:</p>
<h3>Communications Efficiency</h3>
<p>This thing is a very pretty printed catalogue in digital format. It&#8217;s what websites were in the late 90&#8242;s. The entire thing is <a href="http://lowebrindfors.se" target="_blank">a big Flash-page</a>, with text that you cannot copy, films you cannot share, posters that you <em>can</em> download as PDFs (!) but not share with anyone, and invisible coworkers that you can only reach via email or telephone. No wonder they have this disclaimer on the site:</p>
<p><img style="max-width: 800px;" src="http://walternaeslund.com/wp-content/uploads/2009/09/Sk%C3%A4rmavbild-2009-09-15-kl.-11.17.45.png" alt="" /></p>
<p>Apparently they think that the elusive internet out there is about technology and gadgets, which couldn&#8217;t be further from the truth. Because really, these new technologies are VEHICLES of ideas. Nothing else. But the ideas have to be made for a world of transparency, not to fill expensive media plans. And for you to come up with such ideas, you have to know how this transparent world functions.</p>
<p>Search and SEO is ONE important aspect to understand in order to get people &#8220;to spend time with the brand&#8221; (to use Lowe Brindfors&#8217; own terminology), and this is what the brand new Lowe Brindfors site looks like to Google:</p>
<p><img style="max-width: 800px;" src="http://walternaeslund.com/wp-content/uploads/2009/09/Sk%C3%A4rmavbild-2009-09-15-kl.-10.52.17.png" alt="" width="480" height="707" /></p>
<p>According to Google, what&#8217;s most interesting about the new Lowe Brindfors site seems to be their webmail (!), followed by pages from their old site, and a PDF press-release from August 2008.</p>
<p>Disclaiming your way out of obvious lack of knowledge about the psychology and behavior on the internet with something general like a <em>&#8220;Hey, boy slow it down&#8221;</em>-disclaimer becomes embarrassing when confronted with clients who know the internet – something that becomes more and more common every day thanks to knowledgeable rebels and speakers on the topic like <a href="http://ronnestam.com/" target="_blank">Johan Ronnestam</a>, <a href="http://joinsimon.se" target="_blank">Simon Sundén</a>, and <a href="http://bjornalberts.com/" target="_blank">Björn Alberts</a>, just to name a few. <em>[Edit: + <a title="Jesper Åström" href="http://jesperastrom.com/" target="_blank">Jesper Åström</a>]</em></p>
<p>Things don&#8217;t improve when I read what <a href="http://resume.se/nyheter/2009/09/14/vi-har-haft-en-ofortjant-d/">Peter Willebrand our Swedish ad-business press Resumé</a> has to say about the new site:</p>
<blockquote><p>&#8220;Resume.se thankfully notes that the trend is the same as in other digital communication: simpler, faster, and more head on&#8221;.</p></blockquote>
<p>This statement is <em>very</em> general, and also wrong. The site isn&#8217;t fast. It&#8217;s a heavy Flash film with a loader from hell. The trend of the internet is not &#8220;<em>simpler, faster, and more head on&#8221;</em>. The trend, or rather the permanent shift, is to <em>social participation</em> in dynamically coordinated institution-less groups, which means that a site needs to support that behavior. You need to love people, not just say you love them. The new thing about the internet is <em>not</em> that people can now talk back to you, it is that everybody can talk to everybody and coordinate discussions and topics without necessarily involving you. If anything, this is <em>more complex</em>, not simpler. Grasping the entire strategy for this more complex system requires a more diverse skill set ranging from behavioral psychology to technology.</p>
<p>The bottom line is that you can have the prettiest house in the world, but to make friends, you have to meet them. Or else you&#8217;ll end up being very lonely.</p>
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		<title>Is Spotify the Darth Vader of Music?</title>
		<link>http://walternaeslund.com/is-spotify-the-darth-vader-of-music/</link>
		<comments>http://walternaeslund.com/is-spotify-the-darth-vader-of-music/#comments</comments>
		<pubDate>Tue, 08 Sep 2009 15:15:55 +0000</pubDate>
		<dc:creator>Walter Naeslund</dc:creator>
				<category><![CDATA[Copyright and Piracy]]></category>
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		<category><![CDATA[Spotify]]></category>
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		<guid isPermaLink="false">http://walternaeslund.com/is-spotify-the-darth-vader-of-music/</guid>
		<description><![CDATA[As Spotify launched their iPhone app, the crowd cheered. The talented SEO-expert (and comedian) Simon Sundén publishes the follwing graph of Spotify Premium sales that went viral amongst us nerds. Half us us thought is was true, and who knows, it may be. But even if this graphic joke isn&#8217;t true, it illustrates something quiet [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><img class="size-full wp-image-1702" style="float: right; margin-top: 10px; margin-bottom: 10px; margin-left: 10px;" title="Spotify Premium Graph" src="http://www.joinsimon.se/bilder/spotify-graph.jpg" alt="Spotify Premium Graph" width="277" height="272" /><span class="drop_cap">A</span>s Spotify launched their iPhone app, the crowd cheered. The talented <a href="http://joinsimon.se/" target="_blank">SEO-expert (and comedian) Simon Sundén</a> publishes the follwing graph of Spotify Premium sales that went viral amongst us nerds. Half us us thought is was true, and who knows, it may be.</p>
<p>But even if this graphic joke isn&#8217;t true, it illustrates something quiet scary. Something scary that starts with an &#8220;M&#8221;.</p>
<p>Let me tell you a story to explain:</p>
<h3>Chapter 1 – The Music Industry</h3>
<p>Think for a minute about how the music industry works. This is an industry that has built it&#8217;s entire business model around their monopoly on information distribution. Largely, the monopoly has been built on the control over distribution of plastic circles. In recent years, as silver became the new black in the plastic circles industry, the information started to find other ways of distributing itself over the internet, and the monopoly of distribution started to break down.</p>
<p>Desperately, the record industry tried everything to stop these new an superior modes of information distribution by trying to sabotage them with destructive and inefficient &#8220;inventions&#8221; like DRM. When that didn&#8217;t work (because Darwinistic innovation always gravitates towards the efficient), they cried foul, and tried to persuade their friends &#8220;in Washington&#8221; to legislate and punish anyone who had <em>the audacity</em> to use these new and efficient modes of distribution instead of using theirs.</p>
<p>Why so desperate, you may ask? Well – this was all they knew. It was not them, but <em>the musicians</em> who created the music. What they, the record industry, had to offer was marketing and distribution. And when their monopolized mode of distribution was suddenly outdated, and marketing was suddenly taken over by the music itself, it&#8217;s own viral distribution, communities like MySpace, and crowdsourced services like LastFM, the music industry was suddenly cut out of the loop, unable to provide value. And like the dinosaurs before them, their fate looked sealed.</p>
<h3>Chapter 2 – The Innovators</h3>
<p>But the file sharing systems, though hugely more efficient than the plastic circles, was not perfect. Billions of redundant copies of the information had to be kept on harddrives where you wanted to access the music, sharing the music meant sending over entire files, and meta-information was incongruent. Instead, thought a group of innovative individuals, one would like to take the route of the semantic web and have ONLY ONE instance of every file, with congruent meta data, stored in ONE place so that we could share it by only sending links pointing to the specific files. Then each of us could have access to all information and create a hugely efficient market for sifting out the very best. A more efficient model to be sure, and as we know, Darwinistic innovation always gravitates towards the efficient. The group of geniuses created and productified this new and superior mode of distribution. And they named it – <a href="http://spotify.com" target="_blank">Spotify</a>.</p>
<h3>Chapter 3 – The Cartel</h3>
<p>And here, the music industry saw it&#8217;s chance. In one of the weekly meetings of <strong>The Cartel</strong>, the organisation they had set up together <em>&#8220;to act for the common welfare of artists everywhere&#8221;</em>, one executive stood up and said – &#8220;we can&#8217;t stop every single individual on the internet, but we can stop one company! We can threaten to destroy their new value, and claim part of it as ransom! We can regain our distribution monopoly by using their own value against them! But we have to act quickly! If more inventive companies emerge and compete, like <a href="http://www.chilirec.com/?p=13" target="_blank">Chilirec</a> for instance, we will loose this last chance for survival of our kind. Sure, Chilirec will try to sue us, in fact, <a href="http://www.dn.se/kultur-noje/musik/chilirec-anmaler-skivbolagen-1.935353" target="_blank">they already did</a>, but that&#8217;s no match for our lawyers. <a href="http://www.wired.com/threatlevel/2009/04/pirateconflict/" target="_blank">We have our own people in the courts&#8221;</a>.</p>
<p>One young assistant&#8217;s assistant, who had observed them in silence from the end of the table, mumbled quietly &#8220;but what value will we contribute? How will we make things more efficient? Will this not stifle competition and put an end to innovation?&#8221;? BE QUIET! Roared an executive at the end of the table. THEY NEED US! THEY WILL SUBMIT OR BE DESTROYED!</p>
<p>Said and done. <em>The Cartel</em> cheered and applauded. &#8220;If we all agree to let Spotify use our music, and let Chilirec use none, we can cut any deal we want. They have no chance to do this without us. We can use their new invention to return to the times of the distribution monopoly! We can be rich! Maybe we can even keep all new releases within Spotify and NEVER NEVER NEVER release the files to anyone else! Trying to hack Spotify and batch down these files will be easy enough to stop! We couldn&#8217;t control the data on the plastic circles, but we CAN control the data on the Spotify servers! We can even <a href="http://computersweden.idg.se/2.2683/1.240046/documents-reveal-major-labels-own-part-of-spotify" target="_blank">demand to <em>own</em> part of Spotify</a>&#8220;! The room went silent as his words resonated through the spines of The Cartel directors like a chilling wind. <em>Own the only source of music&#8230; on the planet.</em></p>
<h3>Epilogue</h3>
<p>When Apple realized what hit them it was too late. A year earlier, soon after The Cartel&#8217;s spirited meeting, Apple had given away their last line of defense and allowed the Spotify client on their iPhone. As the power of the iTunes store faded away, Apple tried in a last attempt to launch their version of Spotify, called <strong>iTunes Unlimited</strong>. The service was impeccably polished, integrated into their brand new <em>Wild Cat</em> operating system, and could play songs while texting on the iPhone, something that the Spotify client couldn&#8217;t. But what was the use of all this if they had no music. Or at least, just enough music not to be able to compete with Spotify. The number of Spotify exclusive songs and artists soared and left the rest of the industry in rubble. A lot of people said that &#8220;we should have seen this coming when Spotify restricted the iPhone app to paying premium users&#8221;. But now it was to late. The war was over. They won.</p>
<p>At least until the rebels on the far moon of MySpace started their indie music rebellion. But that is a whole other story.</p>
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		<title>The Hang Glider Theory – How to Survive Disgusting Domino&#8217;s Pizza Clips and More.</title>
		<link>http://walternaeslund.com/the-hangglider-theory-%e2%80%93-how-to-survive-disgusting-dominos-pizza-clips-and-more/</link>
		<comments>http://walternaeslund.com/the-hangglider-theory-%e2%80%93-how-to-survive-disgusting-dominos-pizza-clips-and-more/#comments</comments>
		<pubDate>Mon, 07 Sep 2009 06:30:53 +0000</pubDate>
		<dc:creator>Walter Naeslund</dc:creator>
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		<description><![CDATA[I love to theorize about social behavior and how it relates to our behavior on the internet. But sometimes I get the urge to be just a little more practical about things. How can we actually use all this theory? Before we dig into what I call The Hang Glider Theory, let&#8217;s gossip a little. [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><span class="drop_cap">I</span> love to theorize about social behavior and how it relates to our behavior on the internet. But sometimes I get the urge to be just <em>a little</em> more practical about things. How can we actually <em>use</em> all this theory? Before we dig into what I call <em>The Hang Glider Theory</em>, let&#8217;s gossip a little.</p>
<h3>The Anatomy of Gossip</h3>
<p>It seems reasonable to me that gossip evolved as a tool to manage coordination of larger societies. It was a way to trade the social currency called reputation. Reputation, in turn, was a way to govern collaboration between individuals where you neither had a close enough common interest in genetic propagation, nor first hand knowledge of the individual&#8217;s contribution or withdrawal from the common pool of value (stash of nuts, Mammoth meat, whatever), nor a strong enough reason to hurt or kill the individual in question. Gossip was a more granular way to control behavior so that it wouldn&#8217;t become abusive. Killing individuals for stealing a banana makes society somewhat unstable, but so does letting banana theft run wild, right? Gossip and reputation worked really well here as a way to make societies more stable, to enable rudimentary trade over time and distances, and support larger scale collaboration in general. Societies using this tool prevailed and individuals mastering social behavior thrived. If this wasn&#8217;t true, we wouldn&#8217;t be doing what we are doing today. Apparently, those who stayed behind in their caves and didn&#8217;t interact perished. Maybe somebody should tell this to marketing execs who don&#8217;t think they need to engage in social media.</p>
<h3>Positive and Negative Gossip</h3>
<p>If this is how gossip evolved, one can imagine why negative gossip is so much more common than positive gossip. It was more valuable to know who not to trust than knowing who to trust, simply because it was more expensive to be ripped off or killed than to miss out on the benefit some good social interaction. This could explain our approach anxiety and also why our reflexes for spotting danger is so much quicker than the mental process of spotting something good.</p>
<p>To this day, negative gossip dominates. Even though I can&#8217;t show you any conclusive evidence, I think we know it intuitively from our everyday lives. Just look at a rack of gossip porn&#8230; sorry gossip magazines.</p>
<h3>Gossip and Brands</h3>
<p>This is also true for brands. It&#8217;s so much easier to go viral on some negative spin than on some positive one. There are tons of examples, the &#8220;<a href="http://www.google.se/search?q=Disgusting+Domino%27s+Pizza+Clip&amp;ie=utf-8&amp;oe=utf-8&amp;aq=t&amp;rls=org.mozilla:sv-SE:official&amp;client=firefox-a" target="_blank">Disgusting Domino&#8217;s Pizza Clip</a>&#8221; being only one.</p>
<p>But wait a minute – if this is built in to our minds from thousands of years of evolution, and the internet makes this kind of gossip ultra efficient, will this not happen to us all the time? Yes, my dear Watson, it will. And for that reason, strategies to handle it will have to be part of our management models, but also part of our strategic communications thinking.</p>
<p class="note">How to build it into our management models is crucially important, and includes things like corporate guidelines, empowerment of employees, etc. It is outside the scope of today&#8217;s post, but I promise discuss it further some other day.</p>
<p>Instead, today, I&#8217;ll propose a model for building it into our strategic thinking. I call it <em>The Hang Glider Theory:</em></p>
<h3>The Hang Glider Theory</h3>
<p>If the domination of negative gossip is human nature, then we have a downward <em>gravity of gossip</em> on our scale from attraction to repulsion. So what if we could do what hang gliders do and use this force of gravity to gain speed and create lift again? To nurture warm upwinds and gain even more lift, eventually ending up turning negative momentum to positive lift?</p>
<p><img src="http://walterlicious.se/wp-content/uploads/2009/09/Sk%C3%A4rmavbild-2009-09-06-kl.-18.52.151.png" alt="" width="480" height="359" /></p>
<p>What EA-Games did to handle a bug i their Tiger Woods &#8217;08 game is an old but clear example of this strategy. The bug was that you could walk out on water in the game, which created quite a bit of buzz in the gaming community. But instead of doing something boring, like fixing the bug, or just keeping quite, EA put on their hang glider and used the momentum. This it what they came up with:</p>
<div class="youtube-video"><object width="425" height="344" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/FZ1st1Vw2kY&amp;hl=sv&amp;fs=1&amp;" /><param name="allowfullscreen" value="true" /><embed width="425" height="344" type="application/x-shockwave-flash" src="http://www.youtube.com/v/FZ1st1Vw2kY&amp;hl=sv&amp;fs=1&amp;" allowFullScreen="true" allowscriptaccess="always" allowfullscreen="true" /></object></div>
<p>Now, I&#8217;m not saying that creating a funny film will solve your problem, <em>make sure you hear me now</em>. For Domino&#8217;s for example, that would probably have been disastrous. But this film is a clear example of the theory at work.</p>
<p>But even for the Domino&#8217;s case much could have been done. Cool campaigns could have been created for recruiting 2 new employees (implying that there were in fact only 2 people involved), or you could have taken these two individuals in to help out with improving working conditions at Domino&#8217;s (they were obviously the two most dissatisfied employees in the country), or you could have turned the restaurant in question into an institute for food freshness and employee care, making the incident a turn around symbol. Or whatever. Just not this:</p>
<div class="youtube-video"><object width="425" height="344" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/7l6AJ49xNSQ&amp;hl=sv&amp;fs=1&amp;" /><param name="allowfullscreen" value="true" /><embed width="425" height="344" type="application/x-shockwave-flash" src="http://www.youtube.com/v/7l6AJ49xNSQ&amp;hl=sv&amp;fs=1&amp;" allowFullScreen="true" allowscriptaccess="always" allowfullscreen="true" /></object></div>
<p>&#8230;which is boring, and guilty sounding. It&#8217;s also very similar to the &#8220;a few bad apples&#8221;-defense used in the Abu Ghraib trials. It sounds like you throw out and indict two employees without changing anything in the system, thus leading us to wonder if there aren&#8217;t a thousand others just like them out there, being just as dissatisfied and disloyal, only waiting to sneeze on my mozzarella sandwich.</p>
<p>So – this is <strong>The Hang Glider Theory</strong>. Try it out. Tell me what you think of it. Have fun!</p>
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		<title>Q&amp;A From The BBH Labs Post on Honesty</title>
		<link>http://walternaeslund.com/qa-from-the-bbh-labs-post-on-honesty/</link>
		<comments>http://walternaeslund.com/qa-from-the-bbh-labs-post-on-honesty/#comments</comments>
		<pubDate>Fri, 04 Sep 2009 13:56:05 +0000</pubDate>
		<dc:creator>Walter Naeslund</dc:creator>
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		<description><![CDATA[Yesterday, BBH Labs wrote an interesting post commenting on some of my thoughts on internet transparency and gossip. The post itself, as well as the comments, are well worth a read. Since it&#8217;s one of my favorite topics, I naturally wanted in on the discussion myself, but as I started writing a comment on their [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><span class="drop_cap">Y</span>esterday, <a href="http://bbh-labs.com/will-the-web-make-us-more-honest#comments" target="_blank">BBH Labs</a> wrote an interesting post commenting on some of my thoughts on internet transparency and gossip. The post itself, as well as the comments, are well worth a read. Since it&#8217;s one of my favorite topics, I naturally wanted in on the discussion myself, but as I started writing a comment on their blog, I realized it would probably be a bit long for a comment, and instead decided to make it a follow up post here.<br />
<strong><br />
Q: Is there any evidence of better behavior and less cheating?</strong></p>
<p>A: I think we can see plenty of evidence to support the fact that the breakdown of brand privacy forces brands to behave better. User comments and ratings are in fact the backbone of much of e-commerce, and are really a form of digital gossip. Companies behaving badly are exposed all over the place. Companies behaving well are to some extent rewarded, even though gossip gravitates towards the negative for natural reasons (it&#8217;s often more expensive in nature to make the wrong decision than valuable to make the right one). On the individual level, Googling is a standard part of hiring these days, and cheating husbands and wives are exposed all over the internet every day. Just to mention a couple of examples.</p>
<p>Before language evolved, cheaters were easy to spot in small tribes, but not in larger societies. When language evolved, efficiency of gossip increased and we could now crack down on cheaters and reward contributers in bigger groups. Now, with the social web, gossip is made even more efficient, thus making it possible to spot cheaters and reward contributers in very large groups, spread out all over the globe. It&#8217;s the same basic psychology and the same economics behind it, but more efficient means of communication enable us to increase scale. The economics of gossip are very much the same as internet economics, or information economics in general: Providing gossip is virtually free, while receiving it can be very valuable. This creates growth. As a fun excercise, you can try applying these economics to the &#8220;piracy&#8221;-debate.</p>
<p><strong>&#8220;Q&#8221;: On one hand it all sounds a little Utopian (and some might argue, less fun). On the other, it does sound rather attractive.</strong></p>
<p>A: It may sound utopian, but it&#8217;s really not. I&#8217;m not talking about perfect transparency with zero transaction and coordination costs (which would be utopian and impossible). Instead, I&#8217;m talking about an increase in efficiency, which leads to a more precise control system that is harder to cheat. Harder, but not impossible.</p>
<p>And I really don&#8217;t think that it&#8217;s a question of attractive or less fun, but rather of us increasing our ability to coordinate as a species. An increase in ability to coordinate enables us to coordinate more quickly, thus becoming more adaptive to changes in our environment. Those who adapt the quickest to change will be the most fit for their environment, and the fittest will survive. If we let this continue without destroying the efficiency with legislation, this is where we will gravitate towards by Darwinistic law. It&#8217;s somewhat like asking if life became less fun or more attractive when language was introduced. I can&#8217;t answer that, and I don&#8217;t know if it&#8217;s a relevant question. I do think that it made us more civilized, and I think that the web will have the same effect.</p>
<p><strong>Q: For other societal constructs, such as a nation/regime, hard to say. The world had pretty honest information on the Iran situation, but that didn’t make the regime behave more honestly. On the other hand if<br />
victims in genocidal warfare in Africa had means of disseminating real time information would the world be more inclined to intervene and act more honestly by upholding basic human rights?<br />
</strong><br />
A: There are a few different questions involved here, and I won&#8217;t go into the specific situation for each country, but on the structural level you can say this: There is a huge shift in power going on all over the world. The monopolies of information distribution previously (and sometimes currently) held by institutions by economic neccesity, are falling apart. And this makes those depending on such monopolies less powerful. For these institutions, the social web poses a threat, and the only way to stop the threat is to stop entire services, and indeed this is what we are seeing in some of these regimes.</p>
<p>Unfortunately for them, this is also very costly in terms of not tapping into the growth engine of gossip and digital gossip that we spoke about earlier, and will leave them with the choice of handing over power by unblocking internet services or loosing out in the competition with free countries. Ultimately, I think and hope that fighting internet freedom is a loosing battle.</p>
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		<title>&#8220;The School Web is Not Primarily a Matter of Communication&#8230;&#8221;</title>
		<link>http://walternaeslund.com/the-school-web-is-not-primarily-a-matter-of-communication/</link>
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		<pubDate>Thu, 03 Sep 2009 11:44:31 +0000</pubDate>
		<dc:creator>Walter Naeslund</dc:creator>
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		<description><![CDATA[Thanks to all for your interest in yesterday&#8217;s post about Forsman &#38; Bodenfors, Svenska Kyrkan, and Google. It led to many interesting conversations both in the comments of the post, on Twitter in my email inbox, on Facebook, and over the phone. Wasn&#8217;t quite prepared for that kind of response. So, thanks! Today I want [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><em>Thanks to all for your interest in yesterday&#8217;s post about Forsman &amp; Bodenfors, Svenska Kyrkan, and Google. It led to many interesting conversations both in the comments of the post, on Twitter in my email inbox, on Facebook, and over the phone. Wasn&#8217;t quite prepared for that kind of response. So, thanks!</em></p>
<p><span class="drop_cap">T</span>oday I want to talk to you about something else. I want to talk to you about clients. Because even though it is our responsibility as consultants to provide know-how and ideas, clients also need to take their share of responsibility. In short – everybody needs to do their job.</p>
<p>Yesterday I met a prospective client who had great knowledge and understanding of communication and the internet. He almost cried over how he had to actually teach his expensive consultants how to do their jobs. Clients such as this one are a pleasure to meet, and the projects with them always turn out great. They have passion and they understand their role in a successful project.</p>
<p>But sometimes&#8230; just sometimes&#8230; you bump into something dark and completely different. Let me tell you one of these stories:</p>
<p><img style="max-width: 800px;" src="http://walternaeslund.com/wp-content/uploads/2009/09/Sk%C3%A4rmavbild-2009-09-03-kl.-13.43.47.png" alt="" width="481" height="324" /></p>
<p><span class="drop_cap">O</span>n one April morning earlier this year I sat on the balcony with at cup of coffee and a copy of Dagens Nyheter in my hands. I started reading about a topic that I have a particular interest in – computers and learning. The project described in the article is called Skolwebben (The School Web) and is intended to be an information hub for teachers, students, and parents alike. A great idea to be sure! The internet could be an amazing tool to move<br />
learning into a whole new era, but only if competence and ability is<br />
blended into the mix. Here, this didn&#8217;t happen.</p>
<p>As I continued reading,  I almost choked on my coffee. This project took on <strong>enormous </strong>costs. 17 000 000 SEK was poured into the project which was to be carried out by TietoEnator. For anyone of us who has ever worked with communication systems 17 000 000 SEK is a <em>huge</em> sum. For that kind of money we could create amazing strategy, amazing tactics, and amazing implementation. The money would be put into streamlining efficiency for the users based on their actual behaviors, and would be built on open source technology. But this is not what TietoEnator does. Instead, the produce a buggy, complicated and expensive system, hated by teachers, students, and parents alike. From what I could tell from the article in Dagens Nyheter, the project was on it&#8217;s way to the garbage can and would then be restarted from scratch.</p>
<p>There is plenty to <a href="http://computersweden.idg.se/2.2683/1.223886/kritiken-vaxer-mot-tietos-skolwebb" target="_blank">read about this project</a> and you can find much on Google. Try for example <a href="http://www.google.se/search?q=skolwebben+anette+holm&amp;ie=utf-8&amp;oe=utf-8&amp;aq=t&amp;rls=org.mozilla:sv-SE:official&amp;client=firefox-a" target="_blank">this search</a>. But be prepared to get upset.</p>
<p><img style="float: right; margin-top: 10px; margin-bottom: 10px; margin-left: 10px;" title="&quot;Det är flera typer av problem som påtalas&quot;, säger Anette Holm om Skolwebben." src="http://www.idg.se/polopoly_fs/1.222718%21imageUploader/1348236225.jpg" alt="&quot;Det är flera typer av problem som påtalas&quot;, säger Anette Holm om Skolwebben." width="150" height="163" />As I was sitting there on my balcony, I felt I had to do something. I picked up my computer and wrote an email to Anette Holm, the IT-director of Stockholm City, and also the person who had been commenting the story in Dagens Nyheter, explaining to her my ambition to help out. I told her that I would put mine and my agency&#8217;s resources at her disposal to figure out how to turn this catastrophe into something useful. I offered to do it for free*<em>(see edit below)</em>.</p>
<p>When I received her answer I had to read it over and over five times before I could believe what it said. I could have understood if she wasn&#8217;t willing to involve a new agency into the project, but I had never expected this. It was just too much. Here is the email:</p>
<p><img style="max-width: 800px;" src="http://walternaeslund.com/wp-content/uploads/2009/09/Sk%C3%A4rmavbild-2009-09-03-kl.-12.28.08.png" alt="" /></p>
<p><strong><br />
</strong>&#8220;The School Web is <strong>not primarily a matter of communication</strong>.<strong> </strong>Thanks for your offer, but I don&#8217;t see the need.&#8221;<strong> </strong>I read in the email. <em> </em></p>
<p><em><strong>Not primarily a matter of communication</strong></em><strong>!</strong> What?!?! Suddenly it didn&#8217;t seem so strange anymore that projects governed by this kind of thinking would make communications projects crash, and take 17 000 000 SEK of tax money with them in the fall. How could anyone with the title of IT-director even write something like this, apparently without flinching? It&#8217;s almost Kafta-like.</p>
<p>I sat there looking at the email for a while, trying to figure out what to do with it. It just felt so hopeless. I printed the email and posted it on my wall for while see if I would eventually figure this out. <em>&#8220;Not primarily a matter of communication&#8230;&#8221; </em>echoed in my head. What is it a matter of then? If not communication?</p>
<p>A client like Anette Holm is one that I wouldn&#8217;t take on. Good projects can&#8217;t emerge from somebody who&#8217;s philosophical view of the internet doesn&#8217;t include the word <em>communication</em>. I would recommend you all not to take on such projects either. Eventually, we&#8217;ll get the clients we deserve, and our clients will get the brilliance they deserve.</p>
<p>Excellence is a business of ideals.</p>
<p><em>Edit:<a href="757http://walternaeslund.com/wp-content/uploads/2009/09/Sk%C3%83%C2%A4rmavbild-2009-09-03-kl.-14.54.34.png"><br />
</a><a href="http://walternaeslund.com/wp-content/uploads/2009/09/Sk%C3%A4rmavbild-2009-09-03-kl.-14.54.34.png" target="_blank">FYI, here is a link to the email I sent.</a></em></p>
<p><em>Edit:<br />
The offer was intended as free, though I realize now that I&#8217;m looking back at the email that it could possibly have been interpreted otherwise, as commenters &#8220;vän av ordning&#8221; and Magnus Nilsson have rightfully pointed out. The main point however, is not whether or not we actually did offer our services for free, but that Anette Holm&#8217;s thoughts on the project were that &#8220;&#8230;the school web is not primarily a matter of communication&#8230;&#8221;.</em></p>
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