Tag Archives: Business improvement

Updates from Adobe

Hitting the Right Notes in Illustration
By Joe Shepter – At some point in their lives, everyone draws,” says illustrator Gabriel Silveira. “Some people continue to draw, but most stop.”

That’s the humble way the 35-year-old Brazilian describes his path to becoming a highly sought-after professional illustrator. Silveira’s futuristic and intensely graphical creations have graced the pages of magazines like ESPN, Wired, and the Harvard Business Review, and enhanced brands and events like Loot Crate and the MCM London Comic Con.

He admits that as he was growing up, he was much more of a fan than a prodigy. Early on, he discovered the Brazilian cartoonists Laerte and Angeli, as well as Franco-Belgian bandes dessinées, becoming fascinated with artists like Hergé and Moebius. From there, he moved on to American titles and developed a particular affinity for the X-Men. Along the way, he noticed that the comic books didn’t merely have an author; they also credited an illustrator.

This sparked an idea that emerged when he graduated from design school in 2005. After struggling to find a design job in Sao Paulo’s competitive advertising scene, Silveira landed a position as an assistant for noted Brazilian illustrator Carlo Giovanni, with whom he trained diligently for nine months. When Giovanni decided to take his practice in the new direction, he generously shared his editorial contacts with Silveira, who quickly established himself as a talented freelancer. more>

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Why Corporations Can No Longer Avoid Politics

By Alana Semuels – For decades, most companies went to great lengths to avoid opining on social issues. No longer.

What’s changed? Frustrated with political gridlock, consumers have turned to business for leadership. “I think business has to pick up the mantle when governments fail you,” Patagonia CEO Rose Marcario told TIME earlier this year. Young consumers are also more likely to patronize brands whose business models claim to include social change.

Nine in 10 members of Generation Z, who account for as much as $150 billion in spending power globally, believe that companies have a responsibility to social and environmental issues, according to McKinsey. In an age when companies have detailed information on customers’ ages, incomes and political persuasions, they’re calculating that these socially aware consumers are more lucrative than those who might be put off by social-justice campaigns.

“In a politically polarized world that is saturated in social media, you’re not going to escape politics,” says Jerry Davis, a professor of management and sociology at the University of Michigan. “This is a sea change–in the past, companies kept their heads down and did their best to never be seen.” more>

We’re All Free Riders. Get over It!

By Nicholas Gruen – Anathematized and stigmatized today, free-riders built the lion’s share of the prosperity we enjoy today.

Does that mean we should ‘share’ or ‘pirate’ more copyrighted things on the internet? Not necessarily. The free rider problem is real enough.

But here’s the thing. In addition to the free rider problem, which we should solve as best we can, there’s a free rider opportunity. And while we whine about the problem, the opportunity has always been far larger and its value grows with every passing day.

The American economist Robert Solow demonstrated in the 1950s that nearly all of the productivity growth in history – particularly our rise from subsistence to affluence since the industrial revolution – was a result not of increasing capital investment, but of people finding better ways of working and playing, and then being copied. A little of this innovation was fostered by intellectual property rights which give temporary monopolies in technology. But much less than you’d think.

Most innovation can’t be patented. And after patents expire in 20 years (it used to be less) it’s open slather. We’re not paying royalties to the estates of Matthew Bolton and James Watt for their refinements to the piston engine. But we’re still free riding on their work. In other words, free-riding made us what we are today.

At the birth of modernity Thomas Jefferson spoke of the free rider opportunity more eloquently than any statesman then or since:

He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper at mine, receives light without darkening me. That ideas should freely spread from one to another over the globe, for the moral and mutual instruction of man, and improvement of his condition, seems to have been peculiarly and benevolently designed by nature, when she made them, like fire, expansible over all space, without lessening their density in any point, and like the air in which we breathe, move, and have our physical being, incapable of confinement or exclusive appropriation.

Far from wanting to ignore the free rider problem, Jefferson was on top of that too, spearheading the institutionalization of intellectual property. But having done so, throughout his life, including in his administration of patents, he sought balance between dealing with the problems and seizing the opportunities presented by free riding. more>

Updates from Siemens

Artificial intelligence development is changing how industry works
By StevenH – Many industries are going to benefit from artificial intelligence development. It’s hard to say which ones in the long term will find the highest level of success, but we can already see significant benefits in a host of industries.

At its core, artificial intelligence is a tool that can acquire, organize and analyze vast amounts of data to create and parameterize models to recognize patterns and make predictions. AI is delivering many benefits and its continued use is the key to making a business more competitive. By automating some of the repetitive, basic tasks, a company can increase productivity, reduce mistakes and enable quicker, better decisions. In insurance, for example, companies are using AI to automate claims processing. The entertainment industry uses AI to optimize streaming services and suggest content based on an individual’s previous choices and comparing it to the choices of others.

If you’re a business or a company wondering about what to do about AI, whether to use it or even when to use it, then the answer is, Yes. Businesses must think about using AI. Artificial intelligence is a practical tool, and just like banks use it to prevent fraud or healthcare uses its algorithms to scan X rays, companies should look to solve problems and challenges with AI.

In engineering and manufacturing, artificial intelligence is already enhancing the scheduling in a factory by improving downtime and conducting predictive maintenance scheduling. Artificial intelligence saves companies money by reducing costs, for example by collecting data from running machines in the factory and feed it into training for predictive maintenance AI models.

Manufacturers can use these models to detect signs that maintenance is needed, such as changes in vibration signals which might indicate there is a developing problem. They can then schedule a maintenance session at the downtime of their choosing, perhaps overnight on a Saturday where there could be minimal or no loss of production. Naturally, it’s more economical to perform maintenance at the company’s discretion than having an expensive machine offline for several days, while possibly waiting for delivery of replacement parts from somewhere on the other side of the world. more>

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The Adaptive Age

No institution or individual can stand on the sidelines in the fight against climate change
By Kristalina Georgieva – When I think of the incredible challenges we must confront in the face of a changing climate, my mind focuses on young people. Eventually, they will be the ones either to enjoy the fruits or bear the burdens resulting from actions taken today.

Our efforts to reduce greenhouse gas emissions through various mitigation measures—phasing out fossil fuels, increasing energy efficiency, adopting renewable energy sources, improving land use and agricultural practices—continue to move forward, but the pace is too slow. We have to scale up and accelerate the transition to a low-carbon economy. At the same time, we must recognize that climate change is already happening and affecting the lives of millions of people. There are more frequent and more severe weather-related events—more droughts, more floods, more heat waves, more storms.

Ready or not, we are entering an age of adaptation. And we need to be smart about it. Adaptation is not a defeat, but rather a defense against what is already happening. The right investments will deliver a “triple dividend” by averting future losses, spurring economic gains through innovation, and delivering social and environmental benefits to everyone, but particularly to those currently affected and most at risk. Updated building codes can ensure infrastructure and buildings are better able to withstand extreme events. Making agriculture more climate resilient means investing more money in research and development, which in turn opens the door to innovation, growth, and healthier communities.

The IMF is stepping up its efforts to deal with climate risk. Our mission is to help our members build stronger economies and improve people’s lives through sound monetary, fiscal, and structural policies. more>

Europe Wants ‘Strategic Autonomy,’ but That’s Much Easier Said Than Done

By Stewart M. Patrick – Strategic autonomy has obvious appeal to Europeans at a time of fraying trans-Atlantic bonds and deepening great-power competition. Aspiring to self-reliance is one thing, however. Achieving it will require much more from the European Union. The heterogeneous bloc will have to develop a coherent strategic culture and come to some agreement on a shared assessment of threats—and on how the EU should pursue its interests and promote its values internationally.

Europeans must also reassure the United States that any new EU military capabilities will complement rather than undermine NATO.

Europe’s strategic reappraisal is largely, though not entirely, a function of President Donald Trump. While his predecessors in Washington often pressed the Europeans to ramp up defense spending, Trump has upended the trans-Atlantic alliance in several ways. He has depicted it as obsolete, questioned America’s commitments to NATO’s mutual defense as outlined in Article 5 of the North Atlantic Treaty, and taken precipitous actions without consulting allies in Europe—such as his recent unilateral withdrawal of U.S. troops from northeastern Syria. Confronting such uncertainty, Europeans naturally want to hedge their bets. One way to do so is by developing autonomous military capabilities that permit them to act outside NATO, including with a post-Brexit United Kingdom.

Washington’s own identification of China as America’s primary economic, technological and strategic adversary reinforces these instincts. Few Europeans share such a zero-sum assessment, seeking instead to pursue what Beijing terms “win-win” relations. While Americans seem bent on a new Cold War with China, Europeans must confront a more immediate military and political threat: an aggressive Russia under Vladimir Putin, right on their doorstep.

Beyond defense matters, Trump’s disruption of U.S. foreign policy has persuaded a growing number of Europeans that they need to pursue strategic autonomy across the board. America’s abdication of global leadership has thrust the EU into an unaccustomed role—that of chief defender of the rules-based, liberal international order. As Trump has embraced unilateralism and protectionism, cozied up to dictators and ignored climate change, the EU has become the primary champion of collective security, multilateralism, human rights and the preservation of the global commons. more>

Nature’s Solution to Climate Change

A strategy to protect whales can limit greenhouse gases and global warming
By Ralph Chami, Thomas Cosimano, Connel Fullenkamp, and Sena Oztosun – When it comes to saving the planet, one whale is worth thousands of trees.

Scientific research now indicates more clearly than ever that our carbon footprint—the release of carbon dioxide (CO2) into the atmosphere where it contributes to global warming through the so-called greenhouse effect—now threatens our ecosystems and our way of life. But efforts to mitigate climate change face two significant challenges. The first is to find effective ways to reduce the amount of CO2 in the atmosphere or its impact on average global temperature. The second is to raise sufficient funds to put these technologies into practice.

Many proposed solutions to global warming, such as capturing carbon directly from the air and burying it deep in the earth, are complex, untested, and expensive. What if there were a low-tech solution to this problem that not only is effective and economical, but also has a successful funding model?

An example of such an opportunity comes from a surprisingly simple and essentially “no-tech” strategy to capture more carbon from the atmosphere: increase global whale populations. Marine biologists have recently discovered that whales—especially the great whales—play a significant role in capturing carbon from the atmosphere (Roman and others 2014).

The carbon capture potential of whales is truly startling. Whales accumulate carbon in their bodies during their long lives. When they die, they sink to the bottom of the ocean; each great whale sequesters 33 tons of CO2 on average, taking that carbon out of the atmosphere for centuries. A tree, meanwhile, absorbs only up to 48 pounds of CO2 a year.

Protecting whales could add significantly to carbon capture because the current population of the largest great whales is only a small fraction of what it once was. Sadly, after decades of industrialized whaling, biologists estimate that overall whale populations are now to less than one fourth what they once were. Some species, like the blue whales, have been reduced to only 3 percent of their previous abundance. Thus, the benefits from whales’ ecosystem services to us and to our survival are much less than they could be.

But this is only the beginning of the story. more>

Updates from McKinsey

A transformation in store
Brick-and-mortar retail stores need to up their game. Technology could give them significant boost.
By Praveen Adhi, Tiffany Burns, Andrew Davis, Shruti Lal, and Bill Mutell – Now should be a great time in US retail. Consumer confidence has finally returned to pre-recession levels. Americans have seen their per capita, constant-dollar disposable income rise more than 20 percent between the beginning of 2014 and early 2019.

Yet despite the buoyant economic environment, many brick-and-mortar stores are struggling. In the last three years, more than 45 US retail chains have gone bankrupt.

Yet rumors of the physical store’s death are exaggerated. Even by 2023, e-commerce is forecast to account for only 21 percent of total retail sales and just 5 percent of grocery sales. And with Amazon and other major internet players developing their own brick-and-mortar networks, it is becoming increasingly clear that the future of retail belongs to companies that can offer a true omnichannel experience.

Retailers are already wrestling with omnichannel’s demands on their supply chains and back-office operations. Now they need to think about how they use emerging technologies and rich, granular data on customers to transform the in-store experience. The rewards for those that get this right will be significant: 83 percent of customers say they want their shopping experience to be personalized in some way, and our research suggests that effective personalization can increase store revenues by 20 to 30 percent.

Several new technologies have reached a tipping point and are set to spill over onto the retail floor. Machine learning and big-data analytics techniques are ready to crunch the vast quantities of customer data that retailers already accumulate. Robots and automation systems are moving out of factories and into warehouses and distribution centers. The Internet of Things allows products to be tracked across continents, or on shelves with millimeter precision. Now is a great time for retailers to embrace that challenge of bringing technology and data together in the offline world. more>

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Updates from Chicago Booth

How racial bias infected a major health-care algorithm
By Jeff Cockrell – As data science has developed in recent decades, algorithms have come to play a role in assisting decision-making in a wide variety of contexts, making predictions that in some cases have enormous human consequences. Algorithms may help decide who is admitted to an elite school, approved for a mortgage, or allowed to await trial from home rather than behind bars.

But there are well-publicized concerns that algorithms may perpetuate or systematize biases. And research by University of California at Berkeley’s Ziad Obermeyer, Brian Powers of Boston’s Brigham and Women’s Hospital, Christine Vogeli of Partners HealthCare, and Chicago Booth’s Sendhil Mullainathan finds that one algorithm, used to make an important health-care determination for millions of patients in the United States, produces racially biased results.

The algorithm in question is used to help identify candidates for enrollment in “high-risk care management” programs, which provide additional resources and attention to patients with complex health needs. Such programs, which can improve patient outcomes and reduce costs, are employed by many large US health systems, and therefore the decision of whom to enroll affects tens of millions of people. The algorithm assigns each patient a risk score that is used to guide enrollment decisions: a patient with a risk score in the 97th percentile and above is automatically identified for enrollment, while one with a score from the 55th to 96th percentiles is flagged for possible enrollment depending on input from the patient’s doctor.

Obermeyer, Powers, Vogeli, and Mullainathan find that black patients are on average far less healthy than white patients assigned the same score. For instance, for patients with risk scores in the 97th percentile of the researchers’ sample, black patients had on average 26 percent more chronic illnesses than white patients did. The result of this bias: black patients were significantly less likely to be identified for program enrollment than they would have been otherwise. Due to algorithmic bias, 17.7 percent of patients automatically identified for enrollment were black; without it, the researchers calculate, 46.5 percent would have been black.

The bias stems from what the algorithm is being asked to predict. more>

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The planet is burning

By Stephen J Pyne – From the Arctic to the Amazon, from California to Gran Canaria, from Borneo to India to Angola to Australia – the fires seem everywhere. Their smoke obscures subcontinents by day; their lights dapple continents at night, like a Milky Way of flame-stars. Rather than catalogue what is burning, one might more aptly ask: what isn’t? Where flames are not visible, the lights of cities and of gas flares are: combustion via the transubstantiation of coal and oil into electricity. To many observers, they appear as the pilot flames of an advancing apocalypse. Even Greenland is burning.

But the fires we see are only part of our disturbed pyrogeography. Of perhaps equal magnitude is a parallel world of lost, missing and sublimated fires. The landscapes that should have fire and don’t. The marinating of the atmosphere by greenhouse gases. The sites where traditional flame has been replaced by combustion in machines. The Earth’s biota is disintegrating as much by tame fire’s absence as by feral fire’s outbreaks. The scene is not just about the bad burns that trash countrysides and crash into towns; it’s equally about the good fires that have vanished because they are suppressed or no longer lit. Looming over it all is a planetary warming from fossil-fuel combustion that acts as a performance enhancer on all aspects of fire on Earth.

So dire is the picture that some observers argue that the past is irrelevant. We are headed into a no-narrative, no-analogue future. So immense and unimaginable are the coming upheavals that the arc of inherited knowledge that joins us to the past has broken. There is no precedent for what we are about to experience, no means by which to triangulate from accumulated human wisdom into a future unlike anything we have known before. more>