Tag Archives: Productivity

Updates from Siemens

Declarative Configuration when Change is Constant
By Dave McLeish – Change is a double-edged sword. To set the scene let’s first focus on recent change for the good as relates to our own domain of product lifecycle management (PLM). In the past few years, increased mobility with smart phones and tablets has provided new opportunities for mobile access to PLM. Adoption of familiar user interface (UI) patterns from everyday life (shopping cart, smart search) and enhanced possibilities for user experience through touch and virtual assistants have enabled more of the “extended enterprise” to embrace PLM. From the shop floor where there’s touch screen access to work instructions to executives empowered to simply search, sign off and interact with dashboards on their device of choice, increasingly the whole enterprise can contribute to and view the digital thread from product development to delivery.

At the heart of this change for the good is the rich web-based access to PLM that has been made possible by html5. Rich capabilities that have meant we can begin to reimagine how we collaborate and deliver products from inception, through realization and utilization. Zero-install rich, browser-based solutions remove the need for desktop install and reduce the IT deployment overhead through firewall friendly standard https requirements.

But developing in the browser has its challenges when targeting rich capabilities over high latency WAN and with limited memory resources. Arguably the greatest challenge is managing change. Whilst the emergence of HTML5 and CSS3 among other standards have provided a reliable basis for developing web solutions, the same cannot be said for much of the web development space. more> https://goo.gl/NjgcsC

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Updates from Aalto University

Collaboration and partners

By Pia Kåll – When I was still in high school and even during my matriculation exam, I was convinced that University of the Arts was the place to be for me. However, at the time of applying I changed my mind and applied to Aalto University to study applied physics because it sounded challenging. It also felt like the right thing to do – to let art be a hobby and get a job from another field.

After I graduated, I started my dissertation. However, I didn’t finish it because I visited a McKinsey recruitment event and decided to grab the opportunity to influence the development and strategy of large, global companies as a consultant.

When I was offered a seat on the Executive Board of Outotec, I just couldn’t decline the challenge. At first, I led Strategy and M&A and later on broader responsibilities including product development and development of business processes and operational models.

In that position I realized that I enjoy working in different situations and with different people in as many different fields, and among as various questions as possible. In private equity , these sides are combined. When I transferred to CapMan, I first worked as a Partner in Buyout, and starting from June 2017 I have worked as a Managing Partner. more> https://goo.gl/DzM5Na

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Why digital work hubs are the key to citywide collaboration

By Leif Hartwig – As smart city initiatives pop up around the world, technologists and local governments are looking at ways in which they can help improve the quality of life of their citizens.

Achieving the “smart city vision,” however, is no easy task. With the implementation of each new process or technology, officials must ensure that communication is in sync with internal and external stakeholders to truly benefit on the road to getting “smarter.”

Like today’s modern enterprises, cities need to adapt to technological changes and create new and more efficient methods for getting work done. Even more so, city workers need to be able to communicate with each other, including contractors and private company representatives who are all involved in key projects.

When considering digital work hubs, officials/knowledge workers should keep in mind easy-to-use tech platforms that eliminate the need to have a number of different tools such as email, messaging, video conferencing and data sharing apps being used to collaborate and share. The combination of these tools and the transition of people on projects creates a huge challenge when it comes to searching for any information related to a project or group. more> https://goo.gl/vAvBRG

Updates from GE

CEO Transition: How Jeff Immelt Reinvented GE
By Dorothy Pomerantz & Matthew Van Dusen – It started with a simple conversation in 2009. GE Chairman and CEO Jeff Immelt was at the company’s Global Research headquarters in Niskayuna, New York, chatting with scientists about embedding sensors in jet engines. When jet engines run, they don’t only power planes — they generate trillions of bytes of data that can provide an enormously valuable window into their inner workings. The insights could allow GE to optimize the machines’ operations and even lead to better engines in the future. But what was the company doing with that data?

Soon after that fateful conversation, Immelt set GE on a path to becoming a new kind of enterprise: a digital industrial company that could unlock productivity from connected machines.

The company Immelt is handing over to his successor, John Flannery, is greatly changed from the one he inherited. Immelt transformed the company by spinning off its real estate, financial services and media divisions, including its stake in NBCUniversal, for tens of billions of dollars.

The moves stabilized GE after the 2008 financial crisis. Immelt then strengthened the core of GE by focusing on power infrastructure, buying the energy assets of the leading power company Alstom in 2015 and merging GE Oil & Gas with Baker Hughes in 2016 to create the world’s largest energy services business. “His enduring legacy is the portfolio transformation,” John Rice says.

Under Immelt, GE also took stands on issues that were important to customers. The company’s Ecomagination initiative helped moved the environment to the top of the corporate agenda. more> https://goo.gl/kdzfHM

Is Productivity Growth Becoming Irrelevant?

By Adair Turner – As we get richer, measured productivity may inevitably slow, and measured GDP per capita may tell us ever less about trends in human welfare.

Our standard mental model of productivity growth reflects the transition from agriculture to industry. We start with 100 farmers producing 100 units of food: technological progress enables 50 to produce the same amount, and the other 50 to move to factories that produce washing machines or cars or whatever. Overall productivity doubles, and can double again, as both agriculture and manufacturing become still more productive, with some workers then shifting to restaurants or health-care services. We assume an endlessly repeatable process.

Or suppose that 25 of the surplus farmers become criminals, and the other 25 police. Then the benefit to human welfare is nil, even though measured productivity rises if public services are valued, as per standard convention, at input cost.

The growth of “zero-sum” activities may, however, be even more important. Look around the economy, and it’s striking how much high-talent manpower is devoted to activities that cannot possibly increase human welfare, but entail competition for the available economic pie. Such activities have become ubiquitous: legal services, policing, and prisons; cybercrime and the army of experts defending organizations against it; financial regulators trying to stop mis-selling and the growing ranks of compliance officers employed in response; the huge resources devoted to US election campaigns; real-estate services that facilitate the exchange of already-existing assets; and much financial trading.

Much design, branding, and advertising activity is also essentially zero-sum. more> https://goo.gl/qpxGRb

The New Normal: Radical Inequality, Suffocating Debt, and Growing Job Uncertainty

By Servaas Storm – The U.S. economy is suffering from two interrelated diseases: the secular stagnation of its potential growth, and the polarization of jobs and incomes. The two disorders have a common root in the demand shortfall, originating from the ‘unbalanced’ growth between technologically ‘dynamic’ and ‘stagnant’ sectors, which—crucially—is bringing down potential growth.

The key mechanism is just this: rising real wages, as during the period 1948-1972, provide an incentive for firms to invest in labor-saving machinery and productivity growth will surge as a result; but when labor is cheap, as during most of the period 1972-2015, businesses have little incentive to invest in the modernization of their capital stock and productivity growth falters as a consequence.

Financial globalization, in addition, enabled the rich to have their cake (profits) and eat it (by channeling them to offshore tax havens or into derivative financial instruments). In this way, trade and financial globalization have been essential building blocks of the dual economy. more> https://goo.gl/5EFndw

Connecting People to Prosperity in the Exponential Age

By Vanessa Bates Ramirez – “Our assumptions about how economies function no longer seem to hold true entirely because of exponential technology.”

This claim came from entrepreneur and Singularity University faculty member, Amin Toufani.

In what he calls exponential economics or “exonomics,” Toufani breaks the tech-driven changes happening in the modern economy into seven pillars: people, property, production, price, power, policy, and prosperity.

Toufani pointed out that exonomics’ ultimate goal is to connect people and prosperity.

“Technology is empowering all of us, and people seem to be doing what companies used to do and companies seem to be doing what governments used to do,” Toufani said.

The democratizing effect of information technology is enabling small teams to have an outsized impact. He showed a graph of collaboration app Slack’s user growth, and it’s practically a vertical line. A few years old, Slack reaches millions of users, many of whom pay for the service, and was recently valued upwards of $9 billion.

The kicker? Slack was created by a team of 12 software developers. And it’s far from the only such example. more> https://goo.gl/wpBRPz

Will robots make job training (and workers) obsolete?

By Harry J. Holzer – Automation eliminates the number of workers needed per unit of good or service produced. By reducing unit costs it raises productivity and, in a competitive market, product prices should decline. All else equal, this will raise consumer demand for the good or service in question.

Whether or not this rise in product demand is sufficiently large to raise overall employment for the product depends on whether the fall in workers needed per unit of production is proportionately lesser or greater than the rise in the numbers of units demanded; if lesser, than product demand will rise.

Labor economists believe that workers mostly pay for general skill development (often in the form of lower wages, when the training occurs on the job), while employers are willing to share more in the costs of developing worker skills more specific to their needs.6 A shift away from specific towards more general skill training will thus involve a shift of the costs of training away from employers towards workers (or the public), and less sharing of any risks involved in whether the market rewards those skills over time.

Some workers whose tasks can mostly be performed by machines will be displaced, while demand is enhanced for others who can work along with the new machines—perhaps as technicians or engineers but also in a range of newer tasks that the machines cannot perform, including more complex analysis or social interactions with customers and coworkers. more> https://goo.gl/pveH2W

Understanding The Digital Revolution And What It Means

By Henning Meyer – The digital revolution, used here as shorthand for broader technological change, is one of today’s most hotly debated topics in politics, economics and business.

We are undoubtedly faced with large-scale disruptions in many areas that require adjustments.

To analyse exposure to the digital revolution and potential policy solutions you need to start breaking it down into manageable dimensions. Three areas in particular warrant special attention: What are the forces shaping the application of new technologies? What does the digital revolution mean for the future of work? And what kind of policies could help to address these issues?

There is a general lack of structured analysis of the ways in which technological progress translates into real life. This is an important shortcoming as it leads to a distorted view of real-time developments. Here we try to structure this process and identify five filters that in effect moderate technology’s impact.

First, an ethical filter. This filter restricts research itself as it sets a permission framework for what can be done.

Second, a social filter. Social resistance against technological change is not new and it is likely to be more intense in areas where there is a perceived threat to people’s jobs.

Third, a corporate governance filter.

Fourth, a legal filter also moderates what is possible and what is applied in the real world.

Last but not least a productivity filter. This filter means in principle that the application of new technology does not have a dramatic effect on productivity because either the productivity bottleneck lies elsewhere or diminishing marginal returns mean that there is little real improvement in products or services. more> https://goo.gl/nZdclG

Updates from GE

By Yari M. Bovalino & Tomas Kellner – Frank Herzog was still in elementary school in the historic Bavarian city of Bamberg when he fell in love — with metals. So ardent was his passion that he later quit high school to pursue it. “I was young when I realized that I loved the material,” he says.

More than three decades later, Herzog’s fascination with shiny objects continues. He is the founder and CEO of Concept Laser, a pioneering maker of 3D printing machines, including the world’s largest industrial printer for metals. His machines can print delicate jewelry and dental implants as well as massive engine blocks for trucks.

Last fall, GE acquired a majority stake in Herzog’s company, and Concept Laser is now part of GE Additive, a new GE business dedicated to supplying 3D printers, materials and engineering consulting services.

Herzog, 45, grew up in a state that’s obsessed with engineering. Mechanical engineers alone account for 17 percent of Bavaria’s workforce. more> https://goo.gl/uS55hn