Tech
Inside the trend of tech ‘spinouts’ solving real-world problems | Computer Weekly
Silicon Valley has created the impression of the archetypal technology company as founded by smart, young guns in a garage who tinker around to find a product that can make them, and their investors, a fortune. When things fail to work out, it is often down to the fact their creation failed to address a real-world problem.
The opposite of such a scenario is when a business finds itself with a problem and, failing to identify an offering in the marketplace, develops one itself. The retail and hospitality industries have been hotbeds for such activity in recent years, no doubt driven by the exponential increase in technology use since the advent of the pandemic.
The best products have then been “spun out” of the original operator businesses to then sell their capabilities to others in the sector who are encountering the same issues. Joel Robinson, founder of Openr, says that before it was a tech company, the firm started as a solution to a problem faced by the Azzurri Group, a leading hospitality operator with Zizzi, Ask Italian and Coco di Mama among its brands.
Having joined Azzurri Group in 2019 from the retail sector, working latterly at Sainsbury’s, Robinson encountered a growing digital landscape in hospitality involving a fragmented mess of scattered data, manual processes and inflexible systems.
“We were experiencing the pain,” he says. “In 2017/18, [hospitality] was a simple business involving configuring tills in restaurants and ‘off you go’. But post-pandemic, it was about order at the table, click and collect, website ordering and catering platforms. Managing identical data across these platforms was proving inefficient.”
Having failed to find a market offering that could truly solve its unique needs of handling this data, Robinson decided to build one. “If we felt we needed something then we’d build it ourselves,” he says. “We also spoke to peers to see if it was a sector-wide problem. Pubs, quick service restaurants and cafés all had the same [data-related] problem, so we knew there was external consumption for the solution.”
Openr was built as a business to ultimately spin out, and obviously had the benefit of being prototyped within the Azzurri Group. This gave the product credibility and authenticity in the sector. “We could speak with empathy to others,” says Robinson. “There are huge upsides to being a genuine solution for operators … and it opens doors.”
Development team
Although Robinson had built up some decent tech chops, and his team had built its own click and collect – as well as pay-at-table – services, the Openr data platform required bringing in a development team with the capabilities to scale and bring to market. The company has since gone on to supply its offering to the likes of Stonegate, Caffé Nero and Burger King.
It has been a similar story for Andrew Xeni, co-founder of Nobody’s Child and Fabacus, who gained experience in the retail and manufacturing sectors from working at his family’s business, Europride Ltd, producing and supplying value womenswear to big high street retailers. During this time, he discovered the opportunities to create both the fashion brand Nobody’s Child and tech business Fabacus.
He describes the latter as a trusted system of record for the products of large brands and retailers. It comprises all the product data to meet companies’ ESG reporting needs, and provides the infrastructure for implementing digital product passports.
“I did a lot of the ground work early on, speaking with most of our then retail customers – including New Look and Asos – to build a product lifecycle management [platform] for the family business, but the data aggregation platform – Fabacus – was always intended for go-to-market [spin-out], as I realised it was solving a common problem,” says Xeni.
Having scanned the landscape, he discovered that no-one was addressing the fundamental challenge of siloed and fragmented data across products. With his fashion experience, he says: “The main ingredient I brought to the table was the business logic and understanding of the problem and the solution needed. Anyone can build technology, but it’s like letting an architect build and decorate your home, expecting it to meet your needs.”
Xeni says Fabacus was initially a passion project that he self-funded, but as he discovered the common challenges across the clothing sector, he needed to source external capital and sell the product to third parties.
“It’s tough, so make sure you’re addressing a real problem,” he says. “We developed a solution architectured by a team of experienced execs that understood the problem intimately, and knew how to articulate the solution and plan an implementation succinctly. Nothing we have built to date is a challenge I haven’t operationally faced in to personally.”
Fabacus is currently working with a myriad of brands and retailers, including Nobody’s Child, Paramount, NBC Universal, Hasbro, Fanatics and Tesco. Across brand licensing, Xeni says the business has reached a critical mass of customers, while in the retail sector, there is “very exciting early engagement”.
Like Xeni and Robinson, there was recognition by JP Then, founder of Crosstown Doughnuts and Slerp, that fundamental change was happening to his business through structural change in the wider sector. As a very early user of Deliveroo and UberEats, he found a need for an e-commerce platform to host the growing volumes of online orders for his doughnuts.
“I had 10 locations with click and collect and on-demand delivery, but they all had different attributes (such as opening times),” he says. “I did not want to build a platform – I wanted to find something, but there was nothing out there. Slerp was born out of my need to solve a problem.”
Separate business
During conversations with other operators in the sector, Then found they were also experiencing online sales growth, so there was recognition of the opportunity to ultimately sell his offering to others in the industry. He incorporated the business in 2016 because he understood being separate was important: “A bakery running a tech company did not make sense!
“By 2020, there was enough proof from Crosstown that it could be important enough for other companies [to use],” he says. “By then there was also more sophistication in last mile logistics so Slerp could work with various delivery providers.”
The product gives hospitality companies greater control over their margins for delivery orders and ensures they have a direct relationship with the customer. This enables them to avoid having to rely wholly on the delivery marketplaces – Deliveroo, Just Eat and Uber Eats.
As the delivery marketplace model has developed, the Slerp platform has ultimately been able to plug into the network of delivery riders at these companies while still owning the customer relationships and the associated data.
Being an operator has been massively important for the development of Slerp, according to Then, who says: “Having operator domain knowledge has been pivotal to building out an operator-first view. Slerp solved a genuine operator problem.”
He believes this is in contrast to the technology firms that find there is not a market for their products and make radical changes to their propositions – hence the frequent use of the term “pivot” in the tech world.
Although Then left Crosstown in 2020, amid the tough times of Covid-19, he continues to run Slerp, which has gone on to work with many hospitality companies, including Nell’s, Zia Lucia, Dom’s Subs, Sourdough Sophia, Chicken Cottage and Chopstix.
Enterprise resource planing
Ed Brown, co-founder of Double Puc and Percy Labs, is also aware of the tough nature of the hospitality industry. He co-founded healthy food chain Friska, which reached eight sites before it hit difficulties in 2021 and changed hands. During his time at Friska, he had created a dedicated enterprise resource planing system for hospitality – to handle the likes of purchasing, supply chain and ingredients – that was not tied into a point-of-sale system.
This became RocketOS, and was an early product in the field as a software as-a-service offering for the hospitality industry. Brown now acknowledges it would have been a better business decision at the time to have focused on this technology and spun it out to sell to other operators rather than put more money into Friska.
Armed with this experience, he now operates Double Puc Café & Catering – with four units in the Bristol area – along with the fledgling Percy Labs, an artificial intelligence-powered purchasing platform that consolidates baskets of product orders across wholesalers to save on the purchase cost, built with a view to spinning it out and selling it to other hospitality businesses.
Although there are third-party group purchasing organisations acting as middlemen, Brown believes they do not benefit the hospitality companies nor the wholesalers. The advent of ChatGPT and its ability to accurately match food product data has enabled the creation of Percy Labs to provide a more efficient service that he says could save businesses 10% on their ingredients costs.
“We know it is a challenge to build a product, but we’ve done similar with RocketOS and Friska,” he says. “We know that these solutions will be easy for operators to use. Every feature we build, we can see it’s useful.”
Building it from within Double Puc means the product can be prototyped very quickly. “We know how it needs to work. It’s all customer-centric. Everything has been tested in a real environment,” says Brown, adding that building the service in-house also helps with conversations with wholesalers and operators. “Coming from us builds trust and confidence,” he adds.
As technology becomes an ever more important part of the operations of retail and hospitality businesses – and they have increasingly tech-literate workforces – the appetite for implementing real problem-solving products is likely to grow, thereby providing a fertile ground for in-house developments and potential spinouts.
Tech
Anthropic Supply-Chain-Risk Designation Halted by Judge
Anthropic won a preliminary injunction barring the US Department of Defense from labeling it a supply-chain risk, potentially clearing the way for customers to resume working with the company. The ruling on Thursday by Rita Lin, a federal district judge in San Francisco, is a symbolic setback for the Pentagon and a significant boost for the generative AI company as it tries to preserve its business and reputation.
“Defendants’ designation of Anthropic as a ‘supply chain risk’ is likely both contrary to law and arbitrary and capricious,” Lin wrote in justifying the temporary relief. “The Department of War provides no legitimate basis to infer from Anthropic’s forthright insistence on usage restrictions that it might become a saboteur.”
Anthropic and the Pentagon did not immediately respond to requests to comment on the ruling.
The Department of Defense, which under Trump calls itself the Department of War, has relied on Anthropic’s Claude AI tools for writing sensitive documents and analyzing classified data over the past couple of years. But this month, it began pulling the plug on Claude after determining that Anthropic could not be trusted. Pentagon officials cited numerous instances in which Anthropic allegedly placed or sought to put usage restrictions on its technology that the Trump administration found unnecessary.
The administration ultimately issued several directives, including designating the company a supply-chain risk, which have had the effect of slowly halting Claude usage across the federal government and hurting Anthropic’s sales and public reputation. The company filed two lawsuits challenging the sanctions as unconstitutional. In a hearing on Tuesday, Lin said the government had appeared to illegally “cripple” and “punish” Anthropic.
Lin’s ruling on Thursday “restores the status quo” to February 27, before the directives were issued. “It does not bar any defendant from taking any lawful action that would have been available to it” on that date, she wrote. “For example, this order does not require the Department of War to use Anthropic’s products or services and does not prevent the Department of War from transitioning to other artificial intelligence providers, so long as those actions are consistent with applicable regulations, statutes, and constitutional provisions.”
The ruling suggests the Pentagon and other federal agencies are still free to cancel deals with Anthropic and ask contractors that integrate Claude into their own tools to stop doing so, but without citing the supply-chain-risk designation as the basis.
The immediate impact is unclear because Lin’s order won’t take effect for a week. And a federal appeals court in Washington, DC, has yet to rule on the second lawsuit Anthropic filed, which focuses on a different law under which the company was also barred from providing software to the military.
But Anthropic could use Lin’s ruling to demonstrate to some customers concerned about working with an industry pariah that the law may be on its side in the long run. Lin has not set a schedule to make a final ruling.
Tech
How Trump’s Plot to Grab Iran’s Nuclear Fuel Would Actually Work
President Donald Trump and top defense officials are reportedly weighing whether to send ground troops to Iran in order to retrieve the country’s highly enriched uranium. However, the administration has shared little information about which troops would be deployed, how they would retrieve the nuclear material, or where the material would go next.
“People are going to have to go and get it,” secretary of state Marco Rubio said at a congressional briefing earlier this month, referring to the possible operation.
There are some indications that an operation is close on the horizon. On Tuesday, The Wall Street Journal reported that the Pentagon has imminent plans to deploy 3,000 brigade combat troops to the Middle East. (At the time of writing, the order has not been made.) The troops would come from the Army’s 82nd Airborne Division, which specializes in “joint forcible entry operations.” On Wednesday, Iran’s government rejected Trump’s 15-point plan to end the war, and White House press secretary Karoline Leavitt said that the president “is prepared to unleash hell” in Iran if a peace deal is not reached—a plan some lawmakers have reportedly expressed concern about.
Drawing from publicly available intelligence and their own experience, two experts outlined the likely contours of a ground operation targeting nuclear sites. They tell WIRED that any version of a ground operation would be incredibly complicated and pose a huge risk to the lives of American troops.
“I personally think a ground operation using special forces supported by a larger force is extremely, extremely risky and ultimately infeasible,” Spencer Faragasso, a senior research fellow at the Institute for Science and International Security, tells WIRED.
Nuclear Ambitions
Any version of the operation would likely take several weeks and involve simultaneous actions at multiple target locations that aren’t in close proximity to each other, the experts say. Jonathan Hackett, a former operations specialist for the Marines and the Defense Intelligence Agency, tells WIRED that as many as 10 locations could be targeted: the Isfahan, Arak, and Darkhovin research reactors; the Natanz, Fordow, and Parchin enrichment facilities; the Saghand, Chine, and Yazd mines; and the Bushehr power plant.
According to the International Atomic Energy Agency, Isfahan likely has the majority of the country’s 60 percent highly enriched uranium, which may be able to support a self-sustaining nuclear chain reaction, though weapon-grade material generally consists of 90 percent enriched uranium. Hackett says that the other two enrichment facilities may also have 60 percent highly enriched uranium, and that the power plant and all three research reactors may have 20 percent enriched uranium. Faragasso emphasizes that any such supplies deserve careful attention.
Hackett says that eight of the 10 sites—with the exception of Isfahan, which is likely intact underground, and “Pickaxe Mountain,” a relatively new enrichment facility near Natanz—were mostly or partially buried after last June’s air raids. Just before the war, Faragasso says, Iran backfilled the tunnel entrances to the Isfahan facility with dirt.
The riskiest version of a ground operation would involve American troops physically retrieving nuclear material. Hackett says that this material would be stored in the form of uranium hexafluoride gas inside “large cement vats.” Faragasso adds that it’s unclear how many of these vats may have been broken or damaged. At damaged sites, troops would have to bring excavators and heavy equipment capable of moving immense amounts of dirt to retrieve them
A comparatively less risky version of the operation would still necessitate ground troops, according to Hackett. However, it would primarily use air strikes to entomb nuclear material inside of their facilities. Ensuring that nuclear material is inaccessible in the short to medium term, Faragasso says, would entail destroying the entrances to underground facilities and ideally collapsing the facilities’ underground roofs.
Softening the Area
Hackett tells WIRED that based on his experience and all publicly available information, Trump’s negotiations with Iran are “probably a ruse” that buys time to move troops into place.
Hackett says that an operation would most likely begin with aerial bombardments in the areas surrounding the target sites. These bombers, he says, would likely be from the 82nd Airborne Division or the 11th or 31st Marine Expeditionary Units (MEU). The 11th MEU, a “rapid-response” force, and the 31st MEU, the only Marine unit continuously deployed abroad in strategic areas, have reportedly both been deployed to the Middle East.
Tech
Amazon’s Spring Sale Is So-So, but Cadence Capsules Are a Bright Spot
The WIRED Reviews Team has been covering Amazon’s Big Spring Sale since it began at on Wednesday, and the overall deals have been … not great, honestly. So far, we’ve found decent markdowns on vacuums, smart bird feeders, and even an air fryer we love, but I just saw that Cadence Capsules, those colorful magnetic containers you may have seen on your social media pages, are 20 percent off. (For reference, the last time I saw them on sale, they were a measly 9 percent off.)
If you’re not familiar, they allow you to decant your full-sized personal care products you use at home—from shampoo and sunscreen to serums and pills—into a labeled, modular system of hexagonal containers that are leak-proof, dishwasher safe, and stick together magnetically in your bag or on a countertop. No more jumbled, travel-sized toiletries and leaky, mismatched bottles and tubes.
Cadence Capsules have garnered some grumbling online for being overly heavy or leaking, but I’ve been using them regularly for about a year—I discuss decanting your daily-use products in my guide to How to Pack Your Beauty Routine for Travel—and haven’t experienced any leaks. They do add weight if you’re trying to travel super-light, and because they’re magnetic, they will also stick to other metal items in your toiletry bag, like bobby pins or other hair accessories. This can be annoying, especially if you’re already feeling chaotic or in a hurry.
Otherwise, Capsules are modular, convenient, and make you feel supremely organized—magnetic, interchangeable inserts for the lids come with permanent labels like “shampoo,” “conditioner,” “cleanser,” and “moisturizer.” Maybe you love this; maybe you don’t. But at least if you buy on Amazon, you can choose which label genre you get (Haircare, Bodycare, Skincare, Daily Routine). If this just isn’t your jam, the Cadence website offers a set of seven that allows you to customize the color and lid label of each Capsule, but that set is not currently on sale.
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