By Mariana Mazzucato – The use and abuse of data by Facebook and other tech companies are finally garnering the official attention they deserve. With personal data becoming the world’s most valuable commodity, will users be the platform economy’s masters or its slaves?
Prospects for democratizing the platform economy remain dim.
Algorithms are developing in ways that allow companies to profit from our past, present, and future behavior – or what Shoshana Zuboff of Harvard Business School describes as our “behavioral surplus.” In many cases, digital platforms already know our preferences better than we do, and can nudge us to behave in ways that produce still more value. Do we really want to live in a society where our innermost desires and manifestations of personal agency are up for sale?
Capitalism has always excelled at creating new desires and cravings. But with big data and algorithms, tech companies have both accelerated and inverted this process. Rather than just creating new goods and services in anticipation of what people might want, they already know what we will want, and are selling our future selves. Worse, the algorithmic processes being used often perpetuate gender and racial biases, and can be manipulated for profit or political gain. While we all benefit immensely from digital services such as Google search, we didn’t sign up to have our behavior cataloged, shaped, and sold.
To change this will require focusing directly on the prevailing business model, and specifically on the source of economic rents. Just as landowners in the seventeenth century extracted rents from land-price inflation, and just as robber barons profited from the scarcity of oil, today’s platform firms are extracting value through the monopolization of search and e-commerce services. more>
Posted in Broadband, Business, Communication industry, Economic development, Economy, Education, How to, Media, Net, Technology
Tagged Broadband, Business improvement, Capital, Digital Feudalism, feudalism, Government, Internet
Digital transformation: Improving the odds of success
By Jacques Bughin, Jonathan Deakin, and Barbara O’Beirne – or established companies, the pressure to digitize business models and products has reached new intensity. McKinsey research shows that the best-performing decile of digitized incumbents earns as much as 80 percent of the digital revenues generated in their industries.
Ascending to that elite group is far from easy. In a new survey of more than 1,700 C-suite executives, we learned that the average digital transformation—an effort to enable existing business models by integrating advanced technologies—stands a 45 percent chance of delivering less profit than expected. The likelihood of surpassing profit expectations, on average, is just one in ten.
The good news is that executives can decisively increase the chance that a transformation focused on digital enablement will beat performance expectations.
Our latest research shows that exceptionally effective digital transformations are distinguished mostly by the practices that executives choose to follow. Adhering to a well-defined set of transformation practices lifts the likelihood of exceeding profit expectations to more than 50 percent—about five times better than transformations that involve none of these practices. What’s more, the same combination of practices works for every type of digital-enablement effort that our survey covered. more>
Posted in Business, Economy, Education, How to, Net, Technology
Tagged Business improvement, Digital transformation, Internet, McKinsey, Productivity, Success, Technology
By Dan Carney – There is something almost as absurd afoot in Texas now; an electric motor startup making amazing performance claims that arose from a father/son project to improve upon the traditional Aeromotor windmill (a San Angelo, Texas product) for pumping water from wells.
Linear Labs CEO Brad Hunstable makes claims about the effectiveness of what the company dubs the Hunstable Electric Turbine, an electric motor (or generator) that would seem improbable if not for the fact that he says products employing motors from Linear Labs will hit stores early next year.
Consider this, the HET produces 2-3 times more torque than a conventional motor of the same size and specifications, it can be manufactured with no specialized tools or processes at comparable cost to traditional motors, it runs at lower voltage and uses simpler control electronics and it does all of this using iron ferrite magnets rather than the expensive rare earth Neodymium magnets that rely on Chinese suppliers.
It was developed while U.S. Military Academy alum Brad Hunstable and his father, nuclear power engineer Fred Hunstable collaborated on development of a old-fashioned many-vane-style water-pumping windmill, with the notion that it could be upgraded for use in the developing world to also produce small amounts of electricity.
The generator needed to work using the back-and-forth motion of the water pumping shaft that descends from the windmill to the well, so their generator was linear rather than rotary in motion. Hence “Linear Labs.”
A breakthrough in designing that motor led to the idea of applying their new configuration to electric motors. more>
Posted in Business, Economic development, Economy, Education, How to, Product, Technology
Tagged Breakthrough, Business improvement, Electric motor, Technology, Torque, Water pump
How can AI help make our roads safer?
ITU News – What does a fully autonomous, electric, high-performance race car have to do with the United Nations Sustainable Development Goals (SDGs)?
For starters, the vehicle, developed by Roborace, is providing a testing ground for new efforts to build public trust in how next-generation vehicles could improve road safety and reduce the 1.35 million annual road deaths worldwide (SDG 3.6). Increased use of autonomous, electric, connected vehicles could also reduce emissions, improve traffic flows — and provide affordable, safe and sustainable transport systems to underdeveloped nations (SDG 11.2).
But how do we go from race track to the road?
A panel of experts – Bryn Balcombe, CSO at Roborace and Founder of the Autonomous Drivers Alliance; Lucas di Grassi, Formula-E World Champion and CEO at Roborace; and Fred Werner, Head of Strategic Engagement at ITU’s Standardization Bureau – met at Web Summit 2019 to discuss how AI will make our roads safer, and how ITU is helping lead the charge. more>
Posted in Broadband, Business, Communication industry, Economic development, Economy, Education, How to, Net, Science, Technology
Tagged AI, Business improvement, International Telecommunication Union, ITU, Safety, Skills, Technology
Bias busters: Avoiding snap judgments
Despite their best intentions, executives fall prey to cognitive and organizational biases that get in the way of good decision making.
By Tim Koller, Dan Lovallo, and Phil Rosenzweig – The board of a mining company thinks it’s time for a new CEO, one who understands the increased role of technology in the industry and can inspire the next generation of mining leaders. The hiring committee has a few internal candidates in mind—namely, the heads of the copper, nickel, and coal divisions.
All three have similar years and types of industry experience and comparable P&L responsibilities. But the front-runner in the minds of many on the committee is the head of the copper division. After all, copper has contributed the most to the bottom line over the past few years, while the other divisions have been lagging. It must be because the unit head is a tech-savvy people person, with a good understanding of industry trends, they reason. “Seems like a no-brainer,” the head of the hiring committee notes.
But how can the board be sure that it is picking the best candidate for the top job?
These distortions don’t apply only to company performance; the halo effect can also alter how we view individual performance. That’s what happened in the case of the mining company. The front-running CEO candidate’s division had performed well in large part because of a significant spike in the price of copper, something over which he had no control. Yet the halo of high profits shined on the business-unit leader, the hiring committee’s initial impressions of him stuck, and he was appointed CEO.
Much to the board’s dismay, the new CEO did not demonstrate either skillful use of technology or strong leadership, two capabilities that were critical for this role. Early in his tenure, the company incurred billions of dollars in losses. more>