Questions about Nominet Trust’s direction and accountability have led to Nominet announcing that it is withdrawing from its own charitable foundation that it set up over a decade ago.

What Is Nominet Trust?

Nominet Trust is the charitable foundation that was set up by Nominet, the UK’s domain-name registry, as a way of dealing with the excess revenue from registrations of .uk domain names.

What’s Gone Wrong?

An email sent by Nominet CEO Russell Haworth cites problems with the Trusts “grant-giving, single funder model” which was set up in 2008, as being at the heart of the reason for Nominet wanting to walk away from its own Trust.

It has been reported, however, that some members of the Trust became concerned that, rather than using the money from .uk to find good causes, money may have been used to fund unrelated business expansions, including loss-making ventures.

There was also concern after Nominet raised its prices by 50% for reasons that were unclear to many, and that contacts Nominet had signed to run dozens of new domain registries, may have been won by offering below-market rates.

The announcement of the move away from the Trust by Nominet was accompanied by the resignation of the chair of trustees Natalie Campbell, and by two of its directors, former Nominet board member Nora Nanayakkara, and Jemima Rellie.

Trouble At The Top?

There appears to have been a history of trouble at the top at Nominet with previous CEO, Lesley Cowley, reportedly giving the board members more power over the funds.

Some commentators have noted that the arrival of new Chief Executive Russell Haworth, a former acquisition and venture specialist with no experience of the domain name registry market, brought more of a shift from non-profit with a strong public benefit remit to a profit-seeking investment vehicle.

Mr Haworth’s arrival in 2015 also coincided with the resignation of the entire Nominet Trust team, including the chief executive, chair, several trustees, and most of its senior staff.

It has also been noted that under Haworth’s leadership, the organization appeared to ignore the recommendations of an independent study into its governance that would have given members a greater say in Nominet’s direction.

What Now?

Nominet’s CEO has stated that the Nominet Trust should now be free to attract other investors in order to fulfil its social tech ambitions, which means that the Trust will become a separate entity with a new name, and with different governance and funding structures. The Trust is reported to be in a healthy financial position and is continuing running its programmes.
Nominet is still willing to be involved as a member of the Trust during the transition period.

It is thought that the new version of the Nominet Trust will be led by new Chair Bill Liao, who joined the Board back in 2014. It is reported that Mr Liao has the full support of Trustees Sebastien Lahtinen, Beth Murray and Hannah Keartland.

What Does This Mean For Your Business?

It seems that a change in CEO, the focus way Nominet now does business, and most probably the culture (after resignations) and power shifts, and led to questions which, in turn led to the registry and its Trust going their separate ways.

Nominet was set up as a non-profit, public-interest, government-designed operator of the UK’s internet registry, and the Trust was set up to make use of money for good, charitable causes. It is important that organisational structures of this kind maintain accountability and transparency, and that the original charitable focus of Trusts is protected by members who have enough power.

Although businesses and charities need strong leadership, too much power at the top, and power and focus wasted on internal struggles can cause problems for the health of an organisation. As it stands, Nominet has a stable annual revenue of £30m, and the Trust (and the good causes it gives to) have benefitted from £44m since 2008. The hope is, therefore, that the change will mean stability restored to the Trust and that any problems with direction and accountability can be investigated and put right.

A report by Ernst & Young has highlighted the fact that 10% of all funds raised through Initial Coin Offerings (ICOs) are stolen by hackers using techniques such as Phishing.

What Is An ICO?

An Initial Coin Offering (ICO) is a controversial way of start-up companies raising money / crowd funding to build new technology platforms or to fund businesses that use crypto currencies (also called tokens), and the underlying blockchain technology. The tokens only become functional units of currency if / when the ICO’s funding goal is met, and the project finally launches.

The controversy about ICOs centres around the fact that, although it is an innovative new source of venture funding, some commentators view ICO projects as unregulated securities that allow their founders to raise an unjustified amounts of capital, and that valuations of ICO tokens may be driven too much by the fear of missing out and, therefore, seem to result in investors rushing to put money into projects that ignore some important market fundamentals, such as project development.

$400 Million Stolen

After analysing more than 372 ICOs, Ernst & Young has reported that approximately $400 million of the total $3.7 billion funds raised to date has been stolen by hackers. The most widely used technique to steal the digital cryptocurrency funds was found to be Phishing, resulting in the theft of $1.5 million in ICO proceeds per month.

ICOs are an opportunity for scammers because they are able to take advantage of the promise of people making a huge return from a relatively low investment.

As well as scammers taking money, the study also found that underlying software code in some projects contains hidden investment terms that have not been disclosed, or that contradict previous disclosures e.g. saying there will be no further issuance of a cryptocurrency, while the code may leave that option open.

Challenges To Reaching Targets For ICOs

The Ernst & Young research shows that the volume of ICOs has been slowing since late 2017, with less than 25% reaching their target in November 2017, compared with 90% in June. Recent ICOs have faced challenges in reaching their targets, a drop in quality i.e. more low quality projects with higher fundraising goals are being presented, and issues from earlier projects are now being highlighted.

Crypto-based investment of choice is therefore waning, organizers and contributors are now facing increased regulatory scrutiny, and they are therefore now under more pressure to prove the longer-term potential of their product or service to an increasingly sceptical audience.

What Does This Mean For Your Business?

A drop in the value of popular cryptocurrency Bitcoin (its value has fallen 12% over 24 hours), added to warnings about investing in cryptocurrencies from the chairman of UBS and warnings by billionaire investor Warren Buffett (who said he would never invest in cryptocurrency), and news reports of scams such as a fake sale con for instant messenger service Telegram to unsuspecting would-be investors have all served as warnings about the risks of cryptocurrencies and of ICOs.

This latest Ernst & Young research has only served to cement that message to businesses and investors, and some commentators now think that ICOs could soon disappear altogether as a viable fundraising option, unless they can address the issue of security urgently and effectively.

The new business-focused version of WhatsApp for Android is now available for download in the UK.

Small Business Needs

The new WhatsApp Business can be downloaded for free at Google Play, and is specifically aimed at the needs of small businesses, which account for 99.3% of all private sector businesses in the UK (FSB).

Facebook-owned WhatsApp has said that it wants people to use WhatsApp to connect with small businesses, and that the new ‘WhatsApp Business’ will make it easier for companies to connect with customers, and offers a more convenient way for the 1.3 billion WhatsApp users to chat with businesses.

Why Launch WhatsApp Business?

Since Facebook acquired WhatsApp in 2014 for $22 billion, the company has been looking for ways to monetize the app which, although was developed for use by individuals, is now being widely used by people in business, and in large and small organizations as a collaboration tool for staff.

This move by WhatsApp is also designed to gain a march on rivals in what has become a battle for the attention of consumers by messaging apps including Apple’s iMessage, Facebook’s Messenger, Kik, Slack for business, and others.
What Can It Do?

The launch in the UK (and the US, Indonesia, Italy and Mexico at the same time) is part of the wider worldwide rollout. According to WhatsApp, 80% of small businesses already using the App in India and Brazil say WhatsApp helps them both communicate with customers and grow their business (Morning Consult study figures).

Features

Features of the App include:

• Business Profiles: to help companies to provide useful information to customers e.g. business description, email or store addresses, and website.
• Smart Messaging Tools: to enable companies to respond quickly with answers to frequently asked questions, also greeting messages to introduce customers to the business, and away messages that let them know you’re busy.
• Messaging Statistics: simple metrics like the number of messages read to see what’s working, and to give businesses a way of measuring and monitoring the effectiveness of the app.
• WhatsApp Web: to enable the sending and receiving of messages with WhatsApp Business on the desktop.
• Account Type: so that customers will know that they’re talking to a business because it is listed as a Business Account. This can become a Confirmed Account later (similar feature to Twitter’s verification process), and once confirmed, the account phone number will match the business phone number.
• WhatsApp allows users to send photos, it has end-to-end encryption security (n important feature for businesses), allows for easy document sharing (up to 100 MB), and allows for seamless syncing of your chats to your computer so that you can chat on whatever device is most convenient.

What Does This Mean For Your Business?

Since many business people (and more importantly, their customers) were using WhatsApp for general communication anyway, it makes sense for Facebook to develop a version that is focused more specifically on small businesses. Clearly, this is a very large market in countries across the world, and it will, of course, present opportunities for monetisation and probably advertising using the Facebook-owned network in future.

From the perspective of businesses, WhatsApp provides a lot of powerful, useful, and cost saving features for a handy free app, and with speed and versatility of communications being an important factor in getting the business in today’s environment, WhatsApp Business is likely to prove popular.

WhatsApp Business offers businesses / brands the potential for building a relationship with their customers on a 1:1 level. The huge user base of the app, its speed and reliability, and the verification system of the business version could provide new opportunities for businesses that are able to harness it in a value-adding and engaging way.

There are many possible applications for WhatsApp Business e.g., KLM’s use of the app for flight confirmations and updates, brands using the app on competitions, and WhatsApp Business could work well in industries such as hospitality. WhatsApp could be a perfect way to enable customers to book a hotel room, get customer support, and even access an on-site member of staff such as a concierge. Retail brands could use the app for many purposes in addition to just shipping confirmations.

Many tech and business commentators are saying that 1:1 messaging is the future of personalized commerce and post-purchase customer service, and WhatsApp Business is well positioned enough, and widely used enough to provide opportunities for businesses worldwide to improve their communication and relationship marketing.

Amazon has opened a revolutionary checkout-free, bricks-and-mortar grocery store called ‘Amazon Go’ in Seattle, after more than a year of testing.

How Can It Have No Checkouts?

The Amazon Go store uses infra-red ceiling-mounted cameras and electronic sensors to track what shoppers remove from the shelves (which have weight sensors), and what they put back. Some items carry a visual dot code, which acts like a barcode, to help the cameras to identify them.

The system uses a deep learning element so that it can differentiate between customers as they move around the store and between similar looking items for sale. The items for sale are added to the customers’ Amazon Go account as they pick them up, and items are deleted from the account if they put back on the shelves. An electronic receipt is issued as the customer exits the store.

Cash is not needed as customers are billed to the card that Amazon has on file. The ‘grab and go’ concept of the Amazon Go “just walk out” store means that it has no checkout operators or self-service tills because the whole process is automated.

As yet, there is no information about how accurate the system is, and there have only been some reports of minor teething problems.

Super-Convenient

The fact that Amazon Go appears to have eradicated the challenges of long queues which can deter shoppers, and removed the challenge of human error and other messages and authorisation processes that can disrupt self-service tills, could mean that the new store concept poses a real challenge to other retailers.

Whole Foods

Amazon began challenging grocery retailers in the US such as Wal-Mart in the bricks-and-mortar world last summer when it bought Whole Foods Market Inc. for $13.7 Billion, with industry insiders saying that it would be a long and costly process for Amazon to revolutionize grocery delivery the way they revolutionized online retailing. Before groceries, Amazon moved into brick-and-mortar retailing with the opening of a bookshop in Seattle in 2015 – there are now 13 in the US, plus dozens of pop-up outlets.

Amazon launched its ‘Amazon Fresh’ grocery delivery service in the UK back in 2016, and reports indicate that it is 25% cheaper to use Amazon Fresh than shopping in traditional supermarkets.

What Does This Mean For Your Businesses?

The strengths and reach of Amazon has meant that it has spent the last 3 years diversifying and challenging more businesses in more markets. The scaling up of its parcel delivery, plus drone and robot deliveries, Amazon Fresh, its purchase of Whole Foods, and its opening of its Amazon Business online trade counter have seen more (small and large) businesses facing a tough new competitor. It is also worth noting that Amazon has a presence and therefore a potential instant grocery ordering system in many homes in the UK in the form of the Amazon Echo, thereby giving them a further advantage over the traditional big supermarkets.

For the big supermarkets here in the UK, although Amazon Go won’t challenge profits directly now (Amazon Go is one store in Seattle at the moment), the fact that it exists, it works, it appears to address key customer concerns (no queues), and its in the hands of a company with the scale, reach, and brand awareness to expand it is a worry and another challenge to the big grocery retailers.

On the plus side, if the technology could be replicated, it could serve as a blueprint for something that could be copied by the big supermarkets in some key locations.

Some commentators have pointed out that, while Amazon is not yet making large amounts of money (in big player terms) from its retail stores, they are helping to raise brand awareness and to promote Amazon’s Prime membership scheme.

HP has announced that it is launching a worldwide voluntary safety recall and replacement program for certain notebook computer and mobile workstation batteries over safety concerns.

Fire Hazard

The reason given for the recall is that the batteries, including those for the ProBook, ZBook, x360, Pavilion and Envy, is that HP says they have the potential to overheat, posing a fire and burn hazard to customers.

The fire hazard risk appears to have been reported by the Consumer Product Safety Commission (CPSC) which identified eight cases of the batteries overheating, melting, or charring. There has also been a report of one person suffering a first-degree burn from the battery, and three others suffering damage to property totalling $4,500.

How Big Is The Problem?

The CPSC estimates that as many as 50,000 units sold in the U.S. are at risk, and possibly, a further 3,000 more units sold in Canada.

Which Batteries?

HP says that the affected batteries were shipped with specific HP Probook 64x (G2 and G3), HP ProBook 65x (G2 and G3), HP x360 310 G2, HP ENVY m6, HP Pavilion x360, HP 11 notebook computers and HP ZBook (17 G3, 17 G4, and Studio G3) mobile workstations sold worldwide from December 2015 through December 2017. This includes those sold as accessories or provided as replacements through HP or an authorized HP Service Provider.

HP has provided a list of the notebook product names for batteries that may be affected at the foot of this page on its website: https://batteryprogram687.ext.hp.com/en-US/Home/ProgramSummary

How to Check Your Battery

On the same web page, HP has provided a downloadable HP Validation Utility which will check whether the battery is in your notebook is affected. The utility will also verify the battery as being one of HP’s, and this means that HP will be able to send a free replacement battery.

What If You Can’t Get To The Battery?

HP have stated that in cases where the battery is internal to the system (and isn’t customer replaceable), they will provide a “free battery replacement service” for each verified, affected battery validated on their HP Battery Recall website. This will mean that the battery will be replaced by an authorized technician at no cost to the customer.

Battery Safety Mode

In the light of the news about fire risk, if customers need to continue using their notebook, HP says that they can do so by enabling the Battery Safety Mode by connecting the notebook to an HP power adaptor.

What Does This Mean For Your Business?

The reports of people suffering burns and property being damaged are alarming, and the immediate advice for businesses with HP notebook computers and mobile workstations is to go to the HP Battery Recall website https://batteryprogram687.ext.hp.com/ to check if their battery is affected, learn about the BIOS update that contains the Battery Safety Mode feature, and to order a free battery and battery replacement services, if eligible.

In times where mobile devices are becoming ever more popular and powerful, and globalisation means that products can be widely shipped in large numbers before a problem is identified, stories such as these are becoming all-too-common. For example, there was the case of the Galaxy Note 7 phone recall due to explosive batteries, and last August, 10,000 Galaxy Note 4 batteries were recalled for risk of overheating. In the case of HP, they appear to have acted quickly, and to have provided adequate help and advice to customers. This story is also, therefore, a reminder of the importance of a having Disaster Recovery Plans in place.