The Technology of Nations

In 1776, Scottish economist and philosopher, Adam Smith wrote the masterpiece, ‘The Wealth of Nations’- actually ‘An Inquiry into the Nature and Causes of the Wealth of Nations”. By coincidence, the United States Declaration of Independence was adopted the same year, making the American colonies independent and thus no longer a part of the British Empire.

America has since evolved to dominate the old British Empire in virtually every aspect of human endeavors, except perhaps, social welfare. The Yankees figuratively were discipled by Dr. Smith who believed in free market and made his argument that ‘capitalism’ will benefit mankind than any other economic structure. He laid this foundation at the onset of industrial revolution and provided the basics for modern economics.

Smith made his case about the ‘invisible hand’ and why monopoly and undue and unfettered government regulations or interference in market and industry must be discouraged. He was of the opinion that prudent allocation of resources cannot happen when states dominate and over interfere.

In that old time, America farmers could grow cotton, but would not process it. It has to be sent to England where it would later be imported into U.S as a finished product. Understanding that this decision was not due to lack of processing ability, you will appreciate Smith’s argument that market must be free.

His theses were clear and were very influential; they provided the same level of fulcrum to Economics as Isaac Newton’s Mathematica Prinicipia to Physics. Or in modern times, Bill Gates’ Windows to the information economy.

While reading Smith’s book and understanding the time frame it was written, one cannot but appreciate the intellectual rigor in that piece. Before technology was penetrated in en mass across the regions of the world, he noted that all nations could compete at par in agricultural productivity. The reason was absence of division of labor in any subsistence farming system in the world. A farmer does everything in the farm and is not an expert in most.

Discounting fertile land, rain and other factors that could help farmers, all the farmers, from Africa to plantations in Alabama, the level of productivity was similar. Why? No specialization was employed in farming business at the time.

Fast track forward when the industrial revolution set forth. The British Empire became an engine of wealth creation through automation. It was a quintessential period of unrivalled human productivity which resulted to enormous wealth created in the empire. Technology not only helped speed process execution, it helped in division of labor.

Interestingly, Dr Smith had noted that except agriculture where productivity was flat because of lack of division of labor, other industries were doing just fine. And in those industries, there were organized structures which enabled division of labor. For instance in the construction industry, there were bricklayers, carpenters, painters, and so on; but a farmer was a farmer.

As you read through Wealth of Nations and observe the 21st century, it becomes evident that technology was so influential in the last few centuries. It has changed our structures and created a new business adaptation rules like outsourcing which is indeed a new breed of division of labor.

From accumulation of stock and pricing, as explained by Dr. Smith, we see today a world where technology is shaping everything in very fundamental ways for wealth creation. In this era, it has become technology as technology translates to wealth. So, nations that focus on creating, diffusing and penetrating technology will do well.

Why? It is about national technology DNA. The more passionate and innovative nations are triumphing at the global business scene. Give me Japan and I will give you electronics. Talk about United States, I will share biotechnology and pharmaceutical technologies, and indeed every major technology. Give me China, and I will give you green technologies.

So, as nations continue to compete on the technology paradigm, we see at the highest level of success measurement an embodiment captured by technology capability. When nations are understood from the lens of their Technology Readiness Index, Knowledge Economic Index, we see that countries have become technology competing nodes. In some really poor countries with no (effectual) technology, they do not have a node and are unplugged in the sphere of global wealth creation.

Simply, it will be difficult to separate the health of any modern economy from its technology. It goes beyond the wealth of that nation to its survivability. The most advanced nations are the technology juggernauts while the least developing economics barely record any technology penetration impact. For the latter, it is like still living in the pre-industrial age Dr. Smith discussed on agriculture and division of labor where processes were inefficient.

Perhaps, this explains the efficiency in developed world in both the public and private arenas. The more technologies they diffuse, the more productive they become. In other words, show me the technology and I will tell you where the nation stands in the league of countries. Interestingly, the invention of steam engine changed the world and powered the industrial revolution. The invention of transistor transformed the 20th century and is fuelling the new innovation century.

It seems that major scientific breakthroughs bring major great countries. Let me emphasize here that some old kingdoms that ruled the world such as the old Babylon, Roman Empire, and Pharaoh’s Egypt; there have been associated knowledge base that put them ahead. You cannot disassociate good crop production in River Nile to the mastery of Egyptians in inventing some sections of geometry for farming. Some of the old wars had been won by developing constructs that enabled efficient transportation of soldiers to battleground. There was science and nations were winning by using that knowledge.

In conclusion, the world has been living on technology and it is indeed defining our competitive space. As nations compete, it is technology that shapes the world with wealth as the major byproducts, in some cases. I make this case because some of the best technologies had been invented for non-wealth reasons (yes, directly). Examples include Internet and radar technologies which have created wealth and spurred commercial innovations but have military origins.

There could not be any more powerful way of examining national competitiveness than understanding the technology of nations. Yes, wealth has since morphed to technology and all competitions and wealth creation could as well be seen from technology viewpoint. And in this piece, I aptly replace Dr. Smith’s ‘wealth’ with ‘technology’ to have The Technology of Nations.

Technology Enhances Wine, Spirits and Beer Labels

What’s the purpose of a wine label; or for that matter a label on spirits and beer? Obviously, the first response to that question is: to satisfy the TTB (Alcohol and Tobacco Tax and Trade Bureau) regulations. Once that is accomplished, the label space remaining may be used for branding and marketing copy. The fact is, there is very little space on bottle labels to get creative with messages. Now technology is helping solve the limited space on labels by way of RFID (radio frequency identification/ID) technology. Tap a smartphone on a NFC (Near Field Communications) tag embedded on a bottle and see what comes up on your smartphone; assuming there is currently a tag on the label.

Depending on a winery’s budget and the number of smartphones enabled with RFID tag readers (newer smartphones have built-in reader capability), wine, beer and spirits producers can communicate directly with the consumer while they are standing in front of the bottle or can. These electronic tags can impart information in any format. The information can be audio, a message or automatically opening a website page; the choice is up to the winery or craft beverage company. The most economical tag option is to use NFC tags embedded in a label or a very thin flexible film adhered to a bottle.

This NFC technology has different names such as Smart Labels, Tags, and OpenSense Tags; the moniker I use is “Tap Tags”. Smart Labels (originated in the consumer products industry) are starting to appear on food, personal care and pharma items. Although extremely limited, spirits, beer and wine are recent joiners. In fact, companies using smart label tags are not just the big players in the food and personal care space but are also used by small start-ups. Basically, tags are a means for producers of products to give the consumer more information than is possible to print on a label. But, the benefits of such tags aren’t just in dispensing more information, it is also about branding, loyalty, increased sales, etc.

QR codes have been around for decades. They can do some of the operations a NFC tag can perform but are limited. More on QR code versus NFC follows.

Twenty years ago, I was involved with a gentleman who is an expert integrator of RFID (radio frequency identification/ID) tag technologies for casinos. His patented technology is used today in allowing casinos to authenticate and track their gaming chips within a casino. Ken Smith, writing for on November 5, 2012 reported that Wynn/Encore Casino’s in Las Vegas starting using chips embedded with RFID tags in 2005. Point being: the level of sophistication offered by “tag” technologies allow companies to communicate with consumers, even before they buy the product.

Decades ago barcodes started allowing companies the means to track inventory, monitor parts and adjust pricing instantly. Then RFID tags came along which expanded the capabilities of product monitoring passively and actively; reading and writing information to a RFID tag. Depending on the capabilities of an RFID tag, information can not only be read from a tag, but that tag can also be written to; adding more/different/updated information on the tag. We don’t want to forget the QR (Quick Response Code) that most smart phones can read optically and provide an on-screen response via a link to a landing page. The QR code, invented in 1994 has a similar application as the barcode. Smartphones today come with QR reading capabilities and more recently antenna to communicate with NFC tags.

A derivative of RFID technology that is gaining acceptance rapidly is the NFC tag. A strong proponent of NFC technology is coming from Grocery Manufacturers Association and the Food Marketing Institute-the SmartLabel™ group. They formed an alliance called Trade Partners Alliance to explore ways to be transparent with quick, reliable, actionable, in-depth product information for the consumer. One of their applications involves NFC tags which takes the consumer, via their smartphone, to a navigational landing page. All the consumer is required to do is tap their smartphone on the NFC tag on the product packaging.

Noted previously, most product packaging has limited space for details. The real estate available on a printed wine label may not be enough to provide a plethora of information options various consumers are interested in and/or need. Solution: why not make it possible for a consumer to tap their smartphone against a “tap tag” on a product and instantly be taken to a URL/website/landing page that allows the producer to communicate (in print, video or audio) with a potential customer concerning the product. An adage I hear a lot: You can do anything with enough time and money. Same adage applies to NFC technology. For our discussion I am taking the quickest and most creatively flexible approach to new label technologies; the NFC tag, while not totally forgetting QR codes.

This brings us to the “here and now” concerning new technologies that allow producers of wine, spirits and beer to communicate directly with their customer. I am talking about NFC (Near Field Communications), a technology application already being explored by Diageo, Coronado Brewing, and a winemaker in Spain (Barbadillo Wines). In December 2017 Astral Tequila will feature NFC technologies to promote in-store consumer interactions. It has been reported by one integrator/manufacturer of NFC applications, an alcohol product company realized a 30% increase in conversion rates when testing their foray into NFC label tags. Yes, NFC is part of many label options that can be very transparent to the consumer.

A NFC type smart label is actually a RFID tag that is about as thin as 3 sheets of printer paper or.0002 inches. When labels, with embedded NFC tags, are tapped by a NFC enabled smartphone, the phone receives pre-programmed information. For example, the user may be directed to a predetermined site. The website/landing page the consumer is directed to can be designed as a winery, brewer or distillery deems appropriate. The information in the NFC tag can be approximately 7K in size. Again, larger and more capable RFID tags can offer greater capabilities and much more capabilities, but at more expense and involved integration.

One manufacturer of this technology that demonstrated the NFC options for me was Metal Craft. “The options for NFC to communicate with customers in the beverage industry is mind boggling,” said Austin Elling, Marketing Manager-Metal Craft. “Here are some examples of what can be programmed into one of our NFC tags: vCard to import data into the address book, URL to open a given web address, plain text to display simple messages on a smartphone, telephone numbers to initiate a call, geo location to open a specific destination,” says Elling. “For alcoholic beverage business, my experience says that branding and creating direct communications with a customer is in the NFC sweet-spot. A winery may decide to use NFC capabilities for a loyalty program, announcements, promotional trials, initial trials, wine clubs, etc.”

Digressing for a moment. Recently, Anheuser-Busch launched a new Tequila flavored beer branded as Oculto Beer. The label on the beer was embedded with a tag and battery that lit up the eyes on the skull logo on the label. They positioned the switch where most people would gab the bottle. Obviously, it was creative and very expensive. Unfortunately, consumers bought the beer for the novelty of the label technology; consumers did not like the Tequila flavor and it failed.

Relatively inexpensive, NFC tags can only be read at extremely close range, which is why the label area containing the tag needs to be tapped with the enabled smartphone. Some more expensive and capable RFID tags can have a read/write range of approximately 200 feet. However, at approximately $0.10 each, NFC tags are affordable. The price however does not include set-up costs and integration with the back-end landing page. Nathan Chandler writing in “How Stuff Works” reports, “Memory capacity and speed dictate tag cost, which is a critical consideration for companies that want to spread information far and wide through smart posters or flyers… labels. Right now, tags cost around 30 cents apiece even in bulk, but the price should continue to drop until they’re only a few pennies each [source: NFC Rumors].”

Why would a winery, craft brewery or craft spirits company invest in a new label endeavor? Here are some immediate marketing applications that come to mind:

· Protect the integrity of their brands

· Build a comprehensive loyalty program and brand awareness

· Source for consumers to obtain product reviews

· Detailed product information-tasting notes, retail locations, AVA’s, information about winemaker, DtC (Direct to Consumer) pricing

· E-commerce centric efforts

· Customer surveys

· Encourage wine club and newsletter sign-ups

Coronado Brewing in Coronado, CA found consumers were intrigued with their use of NFC technology (tap tags) embedded in their coasters; “consumers were keeping the coasters to show friends,” reported Coronado Brewing’s Marketing Dept. press release. Coasters are a unique use of NFC tags, because the craft beer industry is all about building brand trials, positioning the beer as being handcrafted and artisanal, and explaining quality. The coaster application certainly achieved the greater objectives. Coronado Brewing know they must be real, accessible, authentic, and back it up by delivering the message with and experience of being new. Once a brand wins loyalty, the brand wins, states the company’s marketing material.

Coronado Brewing tested the NFC tag concept with ThinFilm of San Jose, CA and concluded: “A brand can do the following without the interference of search engines or social media platforms: Communicate directly with the consumer; provide a unique digital experience; and, surprise and delight customers on their terms,” commented Bill Cummings, Senior Vice President-ThinFilms Electronics ASA.

Barbadillo Wines, using ThinFilm NFC tags promoted a contest for consumers on their website form NFC generated visits, by using a series of uniquely generated entry numbers printed on each cork. Basically, they were promoting wine sales at the retail level and at home when the wine was opened. “With SpeedTap (ThinFilm brand name) tags applied, consumers are able to interact instantly with products and the brand by tapping the product tag with their smartphones (no app required). The tap launches the brand’s customized landing page video or other digital asset on the smartphone,” said Cummings. “The ThinFilm application was not on the label, although it could have been, but rather on a bottleneck collar.”

Immediate benefits of the ThinFilm effort was a 10-fold increase in traffic versus social media and a 2.8x increase in average time spent on the site. Further, Barbadillo sold significantly more wine.

In the alcohol related product business, the TTB dictates the requirement of wine labels and it is a rather complex approval process to get a label designed that meets TTB requirements. That fact notwithstanding, there is important information, to me, not currently on a wine label that I would appreciate, especially when I look for a new wine.

From a nice-to-know vantage point there are other bits of information I would find interesting that would probably push me to become a brand loyalist. Looking at a 3.5-inch diameter bottle, it simply doesn’t lend itself to a great deal of copy about the product; small print doesn’t work for me because I always forget to wear glasses. NFC could come to my rescue when looking for more information about a wine.

Here is a potential scenario to illustrate my point.

Assume you walk into your favorite wine store to look for a nice wine as a hostess gift and you are interested in getting more information about the wine than is on the label; such information as suggested food pairings, information about the winemaker, past wine awards, how big is the winery, comments about the wine from other consumers. This is important information you might like before you buy the wine. Maybe it isn’t information that is life-saving, but it certainly would be nice-to-know. Further, I would probably become a loyal customer and maybe join their wine club.

Today what are my options to get ancillary information? I have long learned that large discount retailers are not a reliable source of information. Maybe you come home and do some research on-line. But there is an easy way to get more information. The easiest, and most economical would be the NFC tag on the bottle; the label or a stick-on tag would allow the consumer to tap their smartphone on the bottle. Once the consumer taps the NFC tag their smartphone would pull up a website where all ancillary information about the wine would be available instantly. The information format can be anything.

Any winery or consumer can easily experiment with NFC tags. In fact, by going to Amazon you can find many manufacturers who will sell 6 NFC tags for $8.00. These are thin flexible tags about 1-inch square, although NFC tags can come in various sizes. Then go to YouTube and learn the easy task of writing (programming) to the tag. As a consumer you will start to wonder why the wine, beer and distillery industry isn’t running to this technology for their new labels.

Before rushing into this technology wineries need to understand that there are back-end costs associated with finding the best alternative to integrating the NFC technology into labels. Then there is the issue setting up the tag with the information desired to be on the tag. Then there is the issue of integrating the tag, customer and product interface.

Thus far we have explored NFC tags in general, highlighting myriad applications for the wine, spirits and beer industries and have mentioned QR codes. It is important to understand, there are similarities between NFC technologies and the ubiquitous QR code. Any smartphone with a camera and a QR reader app can retrieve information from this code. NFC is the newest label technology to retrieve information via programmed coding. Google and Apple use NFC technologies for their payment systems. Most smartphones currently produced are equipped with NFC tag readers.

To use a QR code, a business decides what they want the QR code to link to and uses a computer program to generate the image.

Anyone can generate a QR code for free. I have generated 2 QR symbols, one for my vCard and another was another that was a graphic image and text about Image of Wine, LLC. These were relatively simple to generate; just fill in an on-line form. After generating one QR code I needed to change an e-mail address and phone number. The problem was that I had already printed a new brochure and business cards with the now obsolete QR code. I had to re-order all the promotional material.

After experimenting with NXT’s NFC tag’s, I found I could re-program the tag with my smartphone; granted it was only one tag.

A static image of the code must be printed on advertising or product packaging. AS I found out, if anything changes about the product or information, a new QR code must be generated and printed on new material and old materials must be removed from the market. Further, QR codes are read by a smartphone camera and the success of reading a code can be contingent on ambient lighting, quality of image, colors used and the camera itself. One good thing about QR codes, they can be generated for free and NFC tags require creating a design and encode the tag. In the end NFC tags are more reliable and versatile than QR codes. For large volume information both options require a landing page.

QR codes can take a consumer to specific information on a website and provide static information; however, the security and convenience of a QR code is not equal to that of NFC tags. Further, information directly retrieved from the QR label really depends on the size of the QR image; the larger the image the more information. NFC tags do not need to be visible to work.

If customization is going to be an issue with bottles of wine, a QR code must be visible for scanning and the colors used must be dark enough for the smartphone camera to read. Further the consumer must open a QR code reader to scan the image. Conversely, NFC tags offer complete freedom of design options because the tag can be hidden and not compromise the integrity of the label image/branding.

In 2015 Mr. Tony Rosati of Trust Point Innovations wrote about QR code and NFC tags. He said, “NFC tags are more expensive (on the order of $0.10) than printed QR codes printed on a label. The verdict: QR codes could be replaced with the more convenient NFC tags; however, there is an additional cost. It is reasonable to assume that product manufacturers would want to take advantage of consumer convenience and security.” Further, “NFC tags are really easy to use – just tap the tag. No special application to open, it’s built into the smartphone, and NFC tags are much more secure than QR codes.”

The intent in this article is to explain a new technology the alcohol industry should be exploring as NFC technology is becoming mainstream; it is a relevant marketing tool embraced by today’s consumers.

Consumers seem to love technology when it really can work for them. That same thought is transferrable to the winery, distillery and brewer. With all the conversations surrounding labels in the wine business, consumers must wonder, why not NFC tags-convenient, quick, flexible, leading edge method to distribute information and build loyalty.

Technology is Disruptive – And Empowering

Technology changes the way we work, live our lives, and have fun. Technology can empower businesses with improvements in productivity, faster development and production cycles, superior decision making by employees, and enhanced customer service. But deriving these benefits from incorporating new technology is not always a smooth process. Technology is often, at first, disruptive before it becomes empowering.

Although the ideas developed in this article may have general applicability, they are mainly intended to relate to the incorporation of new information and communications technologies into business processes. Information technologies involve computers and their peripheral equipment as well as the data flow across local area networks. Communications involve any voice and video activity including the telephone system and related equipment as well as the communications pathways creating the wide area networks.

Technology Changes Business Processes

Every action conducted within a business is part of one process or another. Sometimes the processes are easily defined and readily observable, as in the path of a purchase order. At other times, the process is not so clear but nevertheless it still exists even if by default.

New technologies are introduced into business to:

Speed up existing processes
Extend the capabilities of existing processes
Change the processes

In changing the processes, the new technologies will often allow new ways of conducting business that were not previously possible.

Other than simply speeding up existing processes, new technologies will be disruptive when first introduced. This results from having to change patterns of behavior and/or relationships with others. When disruption occurs, productivity often suffers at first, until such time as the new processes become as familiar as the old ones. At this point, hopefully, the goal has been achieved of reaching a higher level of productivity than the level at which it started before the introduction of the new technology.

Therefore a common cycle that occurs with the introduction of new technologies includes:

Lower productivity, and, finally,
A higher plateau of productivity than the starting point

The obvious goals for introducing new technologies are to:

Minimize the disruption
Minimize the time it takes to increase productivity
Maximize the gain in productivity

In achieving these goals it is helpful to understand the:

Context in which the processes operate, that is, who will be impacted by changes in the specific processes affected
Democratizing potential of technology
Types of people that will react in very different ways to new technologies

The processes by which a company operates and the introduction of new technologies do not exist in isolation. Both of these exist within a context that may be a part of and affect:

The social relationships within an organization and possibly with companies with whom you conduct business
Political (power) structures within an organization
How individuals view themselves and their abilities

Technology can be democratizing. If it is used to create and disseminate information useful to the mission and goals of the business, it can be a great equalizer between “levels” of management and staff. The key word is “disseminate.” If access to the information is decentralized, and easy communication of the information is allowed, then “front line” workers can improve the quantity and quality of decisions they make without having to involve layers of management.

Types of People from a Technology Perspective

From a perspective of introducing new technology into your company, you may find it helpful to understand the following four types of people:


Innovators/embracers will investigate new technologies on their own. They will sometimes be helpful to introducing new technologies that would otherwise not have been known to the company. They will sometimes be a “thorn” in pushing for new technologies they think will be useful (or just “neat” to have) but do not fit the company’s agenda or objectives. These people will embrace new technologies when introduced by others, will often be the first ones to fully incorporate and make use of it, and could help others to fully utilize new technologies.

Enthusiasts will accept new technology enthusiastically. They won’t usually seek it out but will be eager to incorporate it into their processes where appropriate. As a result of their openness, they will often readily learn how to use the new technology and may also be useful in assisting others through the learning process.

Acceptors will accept new technology because it is required. They will not seek it out. In fact, they will often try to avoid it at first until they are forced to accept it. Once they understand the new technology is here to stay, they will willingly learn how to benefit from it or, at least, live with it.

Naysayers habitually oppose new technologies and often are very vocal about their opposition. They often gripe about any changes and will often never change if they don’t have to or they quit before they are made to change “the way they do things.”

The productivity vs. time curve will look different for each of these types of people. Think of how each person in your own organization fits into these four types. Think of how that impacts deriving the full benefits that you’ve carefully targeted. Think of how that impacts your ability to discover additional benefits once the technologies are implemented. Understanding the differences can help smooth out the rough spots during and after the implementation process.

Lessen the Disruption; Increase the Empowerment

Understanding the context in which processes exist, the democratizing potential of technology, and the types of people will help you achieve the goals stated above for a more rapid payoff from a smoother introduction of new technologies.

In addition, make the new technologies transparent to the user or, at least, make them as intuitive to operate as possible. Extra time in pre-planning the introduction of new technologies and training employees in the use of the technologies can provide a return many times greater than the hours spent in planning and training. You can achieve faster increases in productivity, reduced impact on customers, and lower burdens on support staff.

With proper planning and training, the productivity curve will increase at a faster rate and to a higher level than it might otherwise have achieved

Ed Mass is President of Mass Strategic Communications, Inc., a telecommunications consulting firm since 1993. Visit [] and [] for more information. We specialize in Transforming Telecommunications from a Tactical Tool To a Strategic Business Resource. We Integrate Business Strategies with Technology Opportunities.

We act as an extension of your staff. We are business strategists to increase the performance of your company through intelligent and cost effective use of technology.

Specifically, we consult on IP Telephone System Decisions, Service Provider Decisions for Voice and Data Services, and Services Audits to Inventory All Services and Discover Unused Services. We do all this within a framework of Vendor-Neutral Consulting.