Author Archives: Net economy

Updates from Ciena

Next-generation networks help DOT’s deliver quality motorist experience
Converged packet-optical technology enhances Department of Transportation’s intelligent transportation systems while paving the way for future automated highways.
By Daniele Loffreda – On statewide highway systems, road conditions can change without warning. Snowstorms, rockslides, vehicle collisions, traffic congestion and wildlife activity are just a few examples of sudden changes that can disrupt road travel. For Department of Transportation (DOT) traffic managers in central operations centers, accessing real-time data from remote roadside “smart” devices is critical. Trying to resolve roadside problems from afar without real-time data is like trying to steer a car that has a mud-splattered windshield. Although there may be a few clear patches, it is nearly impossible to see the whole picture.

Traffic managers need real-time access to data flowing from intelligent transportation systems (ITS) technologies, smart traffic control devices and connected vehicle applications. Combining this data with analytics software provides traffic managers a clearer view of what is happening throughout the highway system. Armed with these insights they can quickly resolve problems, dispatch emergency crews, alert motorists to pending hazards, and recommend alternative routes to their destinations.

The challenge? The enormous data volume generated by video cameras, sensors, monitoring devices, vehicle to infrastructure (V2I) and other technologies can quickly clog a network increasing congestion and outages. more>

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Updates from Chicago Booth

How leaders can rise to the challenge of COVID-19
By Daniel Diermeier – As cases of COVID-19 continue to grow across the world, leaders in business, government, and other spheres face unprecedented challenges. The disease has encroached not only on public health but on global economic well-being and on some of the most fundamental practices of modern society. It has generated great anxiety and exacted an enormous and growing human toll. And it has required virtually every organization to reinvent its processes to cope with a world in which many people simply don’t feel safe being in the same room together.

Crisis situations can overwhelm even the most experienced leaders, presenting unexpected, complex scenarios that evolve at a fast pace and in several directions. Even in cases in which contingency plans have been prepared, those plans need to be adjusted to respond to rapidly changing circumstances. Fortunately, there are tools and perspectives leaders can use to help their organizations weather difficult times. By building trust, managing fear, and encouraging a sense of duty and community orientation, any leader—whether in business, government, or the nonprofit sector, and in organizations big and small—can better navigate the difficult path of crisis management.

Crises frequently happen without warning and require a response under extreme time pressure. Decision makers often find themselves drowning in data, yet truly vital information is not available. During these situations, leaders must continue to build trust, both internally and externally. Doing so generates much-needed room to maneuver and the goodwill that leaders will need to rely on when tough decisions have to be made.

Even though the desirability of trust is obvious, leaders often struggle with building and maintaining it, especially during high-stakes crises. Research has identified four major factors that influence the level of trust among stakeholders involved in a crisis, summarized in what I’ve called the Trust Radar:

Full transparency is reached when, in the mind of your audience, all relevant questions have been addressed. Your audience—not you—will determine what information is considered relevant. What is relevant will also vary for different audiences. more>

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The Coronavirus Crisis in the U.S. Is a Failure of Democracy

By David Litt – It’s become commonplace to refer to COVID-19 as “the worst public health crisis of our lifetimes.” But what has cost the United States so many lives and jobs during the pandemic is not, at root, a failure of public health. It’s a failure of democracy.

Despite our political polarization, and in the face of an unprecedented threat, the American people have been in remarkable agreement about what they expect from their government. From the time the virus was discovered, our scientists and public health officials urged aggressive action and put forward plans to save lives. Poll after poll has shown that a clear majority of Americans trust want our leaders to heed the experts’ advice. Yet that hasn’t happened. We were far too slow to implement social-distancing guidelines – a delay epidemiologists found is responsible for 90% of U.S. coronavirus deaths – and now we’re acting far too quickly to reopen the economy.

In other words, with lives on the line, our elected leaders are ignoring the people’s will, and Americans are dying as a result. In our shining city on a hill – the global model for representative government – how could this possibly happen? more>

Updates from McKinsey

Beyond contactless operations: Human-centered customer experience
As we look forward to the next normal, consumers are already demonstrating a preference for companies that deliver great service while reducing risks all along the customer journey.
By Melissa Dalrymple and Kevin Dolan – As the global fight against COVID-19 continues and much of normal daily life remains on hold, organizations are trying to navigate a rapidly evolving landscape. Many have moved beyond initial actions to protect the lives and livelihoods of their people and are working to tackle the concerns of the estimated millions of consumers who expect the effects of COVID-19 to be long lasting—customers who are making decisions about whether or not to engage with a company based on its actions to address safety concerns and the way it communicates changes. Beyond addressing safety concerns, organizations that find ways to rebuild the human experiences that existed before COVID-19—among everyone from suppliers to employees and customers—within a contactless world will differentiate themselves and gain customer loyalty.

Companies are moving quickly to institute new policies and processes that will allow them to reopen—or in some cases, remain open. Many are investigating opportunities to shift toward contactless service and operations, allowing the cores of their businesses to continue operating while assuring both employees and customers of their safety. Companies that develop a long-term strategy now to mitigate risks while delivering distinctive and human-centric experiences will emerge from the pandemic with stronger operational resilience, more agile organizations, and sustainable competitive advantage that can better respond to a changing economic context and any future shocks.

It will be important that companies work across silos to provide solutions that deliver effective, end-to-end employee and customer experiences, maintaining the value of their brands through the operational adjustments they make. A new, data-driven perspective, summarized as IDEA (identify interactions, diagnose and prioritize risks, develop and execute solutions, and adapt and sustain), can provide crucial structure and rigor in helping an organization see risks, assess their intensity, and create solutions to address them iteratively as the external environment evolves.

Leaders can then develop interventions and redesign critical customer and employee journeys, enabling their organizations to reopen or sustain operations while also building trust with both customers and employees, such as redesigning the way hotel guests check in by developing a completely digital experience without a check-in counter. Over time, IDEA can flex to include more human elements while keeping safety and security at its core. more>

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Optimizing Thermoelectric Energy Generation

By Elizabeth Montalbano – Deriving energy from the heat electronic devices emit so they can provide their own sustainable sources of power is a Holy Grail for scientists developing power sources for sensors that will drive the future of healthcare devices as well as the Internet of Things.

Researchers in Japan now have come up with a new thermoelectric generator that can convert temperature differences to electricity can be used to power small, flexible devices.

Scientists at Osaka University developed the device in the form of a bismuth telluride semiconductor on a thin, polymer film that weighs less than a paperclip and smaller than the size of an adult fingernail.

However, packed in the tiny device is a maximum output power density of 185 milliwatts per square centimeter, which “meets standard specifications for portable and wearable sensors,” Tohru Sugahara, an associate professor at the university’s Institute of Scientific and Industrial Research, in a press statement. more>

Updates from Chicago Booth

How the Fed plans to pay the country’s bills
By John H. Cochrane – Public attention in the United States during the first phase of the COVID-19 crisis has been largely on the disease itself, the massive social and economic shock of the shutdown, and how we can orchestrate a safe reopening. But we also need to pay some attention to the financial side of the current situation, and the Federal Reserve’s immense reaction to it. Whatever one thinks of that reaction, it’s important to understand what the bank did, what beneficial and adverse consequences there are, and how our financial and economic system and policies might be set up better in the future.

We face a severe economic downturn of unknown duration. If it is something other than a V-shaped downturn spanning months rather than years, there will be a wave of bankruptcies, from individuals to corporations, and huge losses all over the financial system. “Well, earn returns in good times and take losses in bad times,” you may say, and I do, more often than the Fed does, but for now this is simply a fact.

Our government’s basic economic plan to confront this situation is simple: the Federal Reserve will print money to pay every bill, and guarantee every debt, for the duration. And, to a somewhat lesser approximation, the plan is also to ensure that no fixed-income investor loses money.

To be clear, my intention here is not to criticize this plan. From a combination of voluntary and imposed social distancing, the economy is collapsing. Twenty million people, more than 1 in 10 US workers, lost their jobs in the first month of the COVID-19 shutdowns. That’s more than the entire 2008–09 recession, all in the course of three weeks. A third of US apartment renters didn’t pay April rent. Run that up through the financial system: most guesses say that companies have one to three months of cash on hand, and then fail.

If you want to know why the Fed hit the panic button, it’s because every alarm went off.

Is the plan really to try to pay every bill?

Yes, pretty much. This is not stimulus. It is “get-through-it-us.” People who lost jobs and businesses that have no income can’t pay their bills. When people run out of cash, they stop paying rent, mortgages, utilities, and consumer debts. In turn, the people who lent them money are in trouble. Businesses with zero income can’t pay debts, employees, rent, mortgages, or utilities either. When they stop paying, they go through bankruptcy, and their creditors get into trouble. If you want to stop a financial crisis, you have to pay all the bills, not just hand out some cash so people can buy food.

And that’s more or less the plan. more>

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Challenges for international institutions during COVID 19

By Erol User – International institutions still represent a compromise between the power capabilities of their participants and the need for relative civilizational interaction between them. Institutions cannot be effective or on their own. It always depends on the ability of states to agree and the presence of objective structural prerequisites.

In the latter half of April, disputes between China and the United States led to the disruption of a tele-meeting by the G20 countries.

Due to the fact that this grouping is considered the most representative and, at the same time, the least binding in terms of decision-making, until recently it was considered the most promising in the context of a crumbling world order and the growth of national egoism.

However, the first round of the most important interstate confrontation of the new era already called into question the very possibility of discussions between the leaders of the 20 most economically and politically important countries of the world. Somewhat earlier, the US government announced that it plans to stop funding the World Health Organisation, where it is the main donor. Washington does not like much at the WHO. But the main thing is that China has so far been able to exert more influence on its work than the United States itself. Donald Trump is trying to correct this imbalance in the ways characteristic of his policymaking. The result is not yet obvious.

Such course of events makes more than relevant the question of the future of international institutions, the most important achievement of international politics in the 20th century.

Mankind went without constant norms and rules for most of its political history. Since the formation of the first states, collectives of individuals have reflected nothing but their own conscience and the strength of other collectives in their actions. In Europe, the role of arbiter was for a short time, less than 1,000 years, played by the Catholic potentate in Rome. The church did not have its own armies, but it did have moral authority. Moreover, the popes’ lack of their own military power, as well as their claim to the universality of spiritual power, did not allow the Holy See to become one of the ordinary states.

Accordingly, the values ​​and rules that Rome tried to impose during the Middle Ages did not directly express anyone’s values ​​or interests. Therefore, they were relatively fair, for the most part. At the beginning of the 16th century, European states became so strong that they became nonplussed with the power of Rome. Over the next 400 years, they lived practically without any institutions embodying the need to follow the rules. As a result of the Thirty Years’ War of 1618 – 1648, at least general rules of conduct appeared, therefore Kissinger in his book World Order defined the Westphalian system as “having not a substantive, but a procedural character.” This was a great achievement for its time, but it was far from an attempt to establish genuine, civilized relations between peoples. more>

Updates from Chicago Booth

Why US unemployment is even worse than the official numbers say
By Rebecca Stropoli – The COVID-19 crisis has sent the US jobs market reeling. As of April 16, more than 22 million workers had filed unemployment claims since the shutdowns began in March.

But the real unemployment figures are likely higher than reported, suggests research by University of Texas’s Olivier Coibion, University of California at Berkeley’s Yuriy Gorodnichenko, and Chicago Booth’s Michael Weber. Despite catastrophic job losses, an increase in workers dropping out of the labor force altogether may mean the official unemployment rate is misleadingly low, they argue.

To track the pandemic’s effect on unemployment, the researchers used an ongoing survey, conducted by Nielsen, of households that participate in its Homescan panel, studying three key measures typically tracked by the Bureau of Labor Statistics (BLS): the unemployment-to-population ratio, the unemployment rate, and the labor-force-participation rate.

During recessions, as the employment-to-population ratio falls, the unemployment rate typically rises, and vice versa. But in more severe recessions, a higher number of discouraged out-of-work people may stop looking for employment. In this case, while the employment-to-population ratio is low, the unemployment rate doesn’t rise at the same rate, as there are fewer people who are an active part of the labor force.

The researchers tracked surveys prior to and during the pandemic. They find that the employment-to-population ratio had fallen by around 7.5 percent in April, which meant almost 20 million jobs had been lost as of April 6, far more than the estimated 16.5 million that had been reported. State governments’ inability to process such a crushing number of claims, coupled with the fact that many workers aren’t eligible for unemployment benefits, may account for the underestimation, the researchers note. more>

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Updates from McKinsey

A CEO’s guide to reenergizing the senior team
In today’s tough and fast-changing environment, CEOs must help their top leaders to work through fear and denial and to learn new rules.
By Derek Dean – When business conditions change as dramatically as they have in the past year, CEOs need to be able to rely on their best leaders to adapt quickly. But what should they do when their strongest executives seem unable to play a new game? The costs—organizational drift, missed opportunities, unaddressed threats—are so big that it’s tempting to replace leaders who are suffering from paralysis. But this is a mistake when, as is often the case, these executives possess valuable assets, such as superior market knowledge, relationships, and organizational savvy, that are difficult to replace.

Before sending promising executives off the field, CEOs should try to help them learn to play by new rules. While part of the task—making a compelling case for change, helping him or her meet new job demands—involves appealing to an executive’s rational side, there’s also frequently an emotional element that is at least as important. Empathizing with the complex emotions executives may be feeling as the assumptions underlying their business approach unravel can be a critical part of overcoming the fear, denial, and learning blocks keeping them stuck.

Helping senior managers swim through this thick stew of challenges is a perennial problem that has become more acute for many organizations over the last year. The credit crunch and global economic slowdown didn’t just cause the unraveling of many business models. They also unsettled the assumptions and confidence of many senior managers. Mopping up the collateral damage in the executive suite is now a mission-critical task for many CEOs and is likely to remain one even when business conditions begin to recover.

Among the many emotions that can influence how executives interpret and respond to events, there’s one worth addressing on its own: plain old white-knuckled fear. In times of rapid change, when the actions that used to lead to success don’t any more, even strong leaders can experience intense, unproductive levels of fear caused by threats to their identity, their reputations, their social standing, and even their basic survival needs of a job and a paycheck. Ironically, leaders with the strongest track records are often more susceptible to fear during tumultuous periods because they have less experience facing adversity than their colleagues with more checkered pasts do. more>

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Updates from Adobe

Ryan Brown Is on the Move
By Terri Stone – Ryan Brown isn’t one for sitting still. Whether he’s running a brand’s creative strategy or running marathons, the art director is always on the move. “It just feels good to learn and grow,” he says.

Brown’s diverse client roster includes everything from Chelsea Football Club to an underwriting company. He’s even been his own customer as the head of brand and creative for the Aaron Lewis Foundation. (Brown founded the charity to honor a friend killed in action in Afghanistan.)

The Londoner is well-versed in brand strategy. “It’s an area I’ve always loved,” Brown says. “If you create a brand that has purpose and is authentic, then you create a believable, trustworthy brand, and there’s something so rewarding about that.” While at Chelsea Football Club, his role expanded from senior designer to being involved in the club’s repositioning worldwide. “It gave me a front row seat on how to create and implement a strategic positioning of a brand on a global scale.”

But Brown takes care not to lose touch with the hands-on work. “One of my skills is that I can support my team by jumping in at any phase of a project if need be, from ideation through artwork,” he says. “I think it helps keep the lines of communications open with the team.” more>

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