Daily Archives: December 1, 2020

Updates from McKinsey

E-commerce: How consumer brands can get it right
Consumer brands need to make direct-to-consumer economics feasible and the customer experience seamless.
By Arun Arora, Hamza Khan, Sajal Kohli, and Caroline Tufft – Consumer brands have been seeking to establish direct relations with end customers for a range of reasons: to generate deeper insights about consumer needs, to maintain control over their brand experience, and to differentiate their proposition to consumers. Increasingly, they also do it to drive sales (see sidebar, “Why go direct?”).

For any brands that have considered establishing a direct-to-consumer (DTC) channel in the past and decided against it, now is the time to reconsider. COVID-19 has accelerated profound business trends, including the massive consumer shift to digital channels. In the United States, for example, the increase in e-commerce penetration observed in the first half of 2020 was equivalent to that of the last decade. In Europe, overall digital adoption has jumped from 81 percent to 95 percent during the COVID-19 crisis.

Many companies have been active in launching new DTC programs during the pandemic. For example, PepsiCo and Kraft Heinz have both launched new DTC propositions in recent months. Nike’s digital sales grew by 36 percent in the first quarter of 2020, and Nike is aiming to grow the share of its DTC sales from 30 percent today to 50 percent in the near future. “The accelerated consumer shift toward digital is here to stay,” said John Donahoe, a Silicon Valley veteran who became Nike president and CEO in January. 1 Our consumer sentiment research shows that two-thirds of consumers plan to continue to shop online after the pandemic.

The vast majority of consumer brands are used to selling through intermediaries, including retailers, online marketplaces, and specialized distributors. Their experience with direct consumer relationships and e-commerce is limited. As a result, they often hesitate to launch an e-commerce channel despite the obvious opportunity it offers. Just 60 percent of consumer-goods companies, at best, feel even moderately prepared to capture e-commerce growth opportunities. more>

Updates from Adobe

Build dynamic cityscapes with Brian Yap
The Adobe creative director and illustrator demonstrates how to make a complex metropolis using very simple shapes and lines.
By Jordon Kushins – Two rectangles and a triangle. Those are the basic building blocks Brian Yap uses to form the foundation of one of myriad structures in a dynamic cityscape he brought to life with Adobe Illustrator on the iPad.

As a creative director and illustrator here at Adobe, Yap knows his way around Creative Cloud, and his portfolio is a testament to the capabilities of a variety of apps and programs. “I’m almost entirely mobile now,” he says. “I’ll sometimes scribble in a notebook, or finish something off on desktop, but the tablet is my main tool.”

Downsizing from desktop to tablet hasn’t made him any less meticulous. “I’d describe my work as over-detailed,” he says with a laugh. “Or maybe ‘complex’ is a better word. I like to work in a variety of different digital styles — everything from what feels like classic ink drawings to music posters to very graphic and sometimes even sculptural works — as well as experiment with different materials.” more>

Related>

Updates from Ciena

Can utilities have their multi-layered cake and eat it too?
Utilities are facing increasing bandwidth demands on their communications networks. Ciena’s Mitch Simcoe explains how modernizing networks to a private packet-optical fiber architecture can help utilities scale to support new smart grid applications.
By Mitch Simcoe – Utilities are increasingly in the eye of the storm these days. Whether it’s having to deal with hurricanes in the Gulf Coast over the last few months or wildfires on the West Coast, utilities have had to put more sensors out in the field to keep abreast of changing weather conditions and potential risks to their power grids. The increasing demands for utilities to show that they are carbon-free is also changing the way they generate and distribute energy. The one common denominator that utilities have is more data to collect and backhaul from their power grids, which is driving increasing demand on their communications networks.

Many utilities may not realize it, but recent advancements have resulted in several bandwidth-intensive applications and processes driving up demand on their networks:

  1. Video Surveillance
    Security continues to be top of mind for utilities and security surveillance in the past has been more “after the fact”; where video surveillance is stored locally at the substation and only accessed after a security breach. Today’s approach is to backhaul all security video footage to a centralized data center and apply artificial intelligence (AI) techniques to proactively determine if a security breach is in the process of occurring. In those cases, security personnel can be dispatched on site in near-real time. Each video camera at a substation can generate 9 Gigabytes of data per day and a typical substation could have a dozen video cameras to surveil.
  2. Synchrophasors
    Prior to the big power outage of 2003 in the Northeast United States (where 50 million households lost power for two days), sensors on the power grid using SCADA (Supervisory Control and Data Acquisition) would sample the state of the grid about once every four seconds. This significant outage could have been avoided had the grid been sampling data more frequently. To address this, a device called a synchrophasor (not the Star Trek type!) was introduced, which would sample the state of the grid 30 to 60 times per second. This has allowed the grid to be more reliable but produces significantly more data to backhaul and process. Each synchrophasor PMU (Performance Measurement Unit) can generate 15 Gigabytes of data per day and all of that must be backhauled to a central data center for analysis.
  3. Smart Meters
    In the US, over 50% of households are now serviced by a smart meter that measures your household’s power consumption every 15 minutes. Beyond their billing function, they help utilities track power consumption hotspots during peak usage. For a utility of 1 million households, which would be the middle range for most US Investor-owned Utilities (IOUs), this can generate 1 terabyte of data per day that needs to be backhauled to a central data center for processing.
  4. Internet of Things (IoT) devices
    These include what we mentioned earlier: weather sensors and sensors on power equipment to proactively identify issues. Smart thermostats in homes is another growing trend which utilities are using to offer smart “on-demand” billing plans where you allow the utility to raise your thermostat during periods of peak usage during the hot summer months in exchange for a lower cents per kWh price.

For the first three categories we mentioned above, a utility of 1 million households would result in a daily requirement for data backhaul of 6 to 8 terabytes. With this amount of data to backhaul and process, it is no wonder utilities are exhausting the available capacity of their legacy communications networks.

The Information Technology (IT) group in a utility is tasked with managing many of these new applications associated with a smarter grid. Some utilities have been leasing copper-based TDM services for many years from service providers for smart grid, IT and substation traffic. The cost of this approach has been onerous and only gets more expensive as service providers are migrating their networks away from copper to fiber and wireless options. more>

Updates from Chicago Booth

This one ubiquitous job actually has four distinct roles
The avatars of the strategist
By Ram Shivakumar – Among the occupational titles that have become ubiquitous in the 21st century, “strategist” remains something of a mystery. What does the strategist do? What skills and mindset distinguish the strategist from others?

Is the strategist a visionary whose mandate is to look into the future and set a course of direction? A planner whose charter is to develop and implement the company’s strategic plan? An organization builder whose mission is to inspire a vibrant and energetic culture? Or is it all of the above?

Academic scholarship does not settle this question. Over the past 50 years, many competing schools of thought on strategy have emerged. The two most prominent are the positioning school and the people school. The positioning school, closely associated with ideas developed by Harvard’s Michael Porter, argues that strategy is all about distinctiveness and not operational efficiency. In this view, the acquisition of a valuable position depends on the unique combination of activities that an organization performs (or controls). The people school, closely associated with the ideas of Stanford’s Jeffrey Pfeffer, posits that the principal difference between high-performance organizations and others lies in how each group manages its most important resource—people. In this view, high-performance organizations foster a culture that reward teamwork, integrity, and commitment.

Because these two schools differ in their doctrines (assumptions and beliefs) and principles (ideas and insights), each envisions a distinct role for the strategist. more>

Related>