Tag Archives: Skills

Updates from ITU

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>

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Updates from Chicago Booth

Why do analysts low-ball earnings forecasts?
By Martin Daks – The market-research company FactSet reports that for each quarter over the past five years, an average of 72 percent of companies in the S&P 500 beat earnings estimates. Past research, including by University of Pennsylvania’s Scott Richardson, University of California at Irvine’s Siew Hong Teoh, and Boston University’s Peter D. Wysocki has found that analysts’ forecasts become more pessimistic and thus beatable as the quarter end approaches, but an unaddressed question is how this walk-down affects clients. If analysts revise their forecasts downward each quarter to placate managers, wouldn’t this confuse the investors who ultimately pay for their services?

According to Chicago Booth’s Philip G. Berger and Washington University’s Charles G. Ham and Zachary R. Kaplan, analysts walk down forecasts by suppressing positive news from quarterly forecasts, not by issuing misleading negative revisions. When analysts have positive news, they will often revise the share price target upward or state explicitly that they expect companies to beat earnings estimates, while leaving the quarterly forecast unrevised. Suppressing positive news leads to beatable forecasts—behavior that benefits corporate executives but carries important implications for both the individual investors who rely on these predictions and researchers studying investor expectations.

When securities analysts receive updated information after issuing a quarterly forecast, they have three options: revise the current-quarter earnings forecast; issue an alternative forecast signal, such as a revision to the share price target or future-quarter earnings; or issue no additional forecast.

By not disseminating all information through the current-quarter earnings forecast, which is widely available through commercial databases, analysts provide an advantage to investment clients who have paid for access to the full breadth of their research product.

“Analysts convey information in ways that enable them to be of service to clients, who they care about, and, at the same time, to avoid displeasing corporate managers, who they also care about,” Berger says. “Non-clients, who rely on earnings forecasts because they do not have access to the whole of an analysts’ work product, end up with skewed information, but this is not a primary concern for the analysts’ business.”

The researchers demonstrate that a simple strategy based on buying companies expected to beat earnings, using share price target revisions and the text of reports, yields significant abnormal returns, suggesting the market does not see through the analysts’ strategy for conveying information selectively. more>

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Updates from McKinsey

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>

Updates from Adobe

The Simple Life
By Jenny Carless –By day a graphic designer, by night a nature photographer, Anders Bundgaard focuses on simplicity, no matter the medium.

Bundgaard’s interest in graphic design was first piqued during an internship at an advertising agency. After finishing school, he sought out a series of courses—including year-long programs in print and reproduction, drawing, advertising, and multimedia—to develop the skills he needed.

At 21, Bundgaard moved from Denmark to London in search of new and interesting work. “My first job here was for a company that designed film posters,” he says. “I really liked the work and continued in that direction.”

Today, Bundgaard’s graphic design work is mainly aimed at the film industry. His portfolio includes film posters, motion graphics for trailers, and title sequences.

Whether working in print or motion, his preferred style is simple and clean.

“I try to get to the core of a project and then distill it down to the bare minimum to communicate the idea,” he says. more>

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Updates from Adobe

By Cristina Daura – llustrator Cristina Daura grew up steps away from an amusement park. A trail led straight from her house to the top of Barcelona’s Tibidabo mountain, where a large church looms over a colorful theme park full of twinkly lights, charming roller coasters, creepy vintage animatronics, and sweet-smelling air. Daura’s family held an annual pass, so she could pop in any time. Today, the artist’s playful but dark illustrations are clearly inspired by the kitsch, the bright colors, and her memories of this extraordinary place.

A bit of an outcast when she was younger, Daura found her community at comic book stores. Always with a sketchbook in hand, she thought she wanted to design comic books for a living. When she found out that illustration work paid better, she switched gears—but she continues to take inspiration from the way comics tell a story.

Daura also uses symbols and an intentionally limited color palette to communicate, with many symbols repeated in multiple works. With the symbols, Daura has created her own representational language—and because she doesn’t like to explain her work, the viewer is left to interpret meaning on their own. more>

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Updates from ITU

Why ITU strives to be the world’s most inclusive standardization platform
By Bilel Jamoussi – The global ICT ecosystem is a remarkable feat of engineering and a similarly remarkable feat of international collaboration.

The ICT industry relies on technical standards to an extent rivalled by few other industry sectors.

Our networks and devices interconnect and interoperate thanks to the tireless efforts of thousands of experts worldwide who come together to develop international standards.

International standards provide the technical foundations of the global ICT ecosystem – today’s advanced optical, radio and satellite networks are all based on ITU standards.

95 per cent of international traffic runs over optical infrastructure built in conformance with ITU standards. Video will account for over 80 per cent of all Internet traffic by 2020, and this traffic will rely on ITU’s Primetime Emmy winning video-compression standards.

Standards create efficiencies enjoyed by all market players, efficiencies and economies of scale that ultimately result in lower costs to producers and lower prices to consumers. more>

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Updates from Chicago Booth

How multinational companies help spread recessions
By Bob Simison – The Great Recession a decade ago was one example of how economic cycles across the world can move in parallel, a phenomenon that economists don’t fully understand. It could be that a common event, such as a surge in oil prices, affects many economies at the same time—or perhaps linkages between countries transmit economic shocks from one country to the world economy.

One such linkage is multinational corporations,  according to Marcus Biermann, a postdoctoral scholar at the Catholic University of Louvain, and Chicago Booth’s Kilian Huber, who explore the role of multinationals in spreading the global recession by analyzing the ripple effects of one German bank’s struggles during the 2008–09 financial crisis.

Commerzbank was Germany’s second-biggest commercial lender behind Deutsche Bank. Losses on trading and investments abroad hammered the bank, especially after Lehman Brothers collapsed in September 2008. Commerzbank’s capital fell by 68 percent between December 2007 and December 2009, which forced the bank to reduce its aggregate lending stock by 17 percent. Biermann and Huber find that this pullback in credit available to German parent companies affected subsidiaries in other countries, thus helping to transmit the economic contraction. more>

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Updates from Chicago Booth

How Norway reduced the rich-poor earnings gap
By Dwyer Gunn – In the United States, vocational and technical education at the high-school level has long been controversial. Critics argue that vocational schools serve as warehouses for disadvantaged students, depriving them of the opportunity to attend college. Advocates maintain that vocational schools provide valuable labor-market skills and may better serve students who struggle with traditional academics or who can’t or don’t wish to attend college.

In recent years, however, a new vision has emerged, one that emphasizes increasing access to alternative educational models while ensuring that students who choose these pathways can still ultimately pursue higher education. Many states are exploring or have launched high-school apprenticeship programs, and there’s been renewed interest in the Career Academies education model, a 35-year-old approach aimed at restructuring high schools to create alternative pathways that lead to higher education or the workplace.

American reformers may find further inspiration in the results of a 25-year-old overhaul of vocational education in Norway. Research by Chicago Booth’s Marianne Bertrand and Jack Mountjoy, along with University of Chicago’s Magne Mogstad, suggests the reforms helped reduce the eventual earnings gap experienced by poor students, particularly boys, although not without some unintended consequences.

The sweeping changes, known as Reform 94, increased access to apprenticeships and altered the country’s vocational-track high-school degrees to allow graduates to attend college after a semester of supplemental academic courses. Before the changes, students in Norway who obtained vocational-track degrees had to restart high school and secure an academic diploma if they wanted to attend college. more>

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Updates from Ciena

Mobile backhaul: a key growth driver to fuel fiber investments
It is no secret that communication service providers are facing decreasing margins and increased financial leveraging, struggling to make the investments necessary to respond to the evolution of user and application requirements. Francisco Sant’Anna explains how regional providers can leverage carrier wholesale demand to enable profitable and sustainable fiber investments.
By Francisco Sant’Anna – Fiber has never been as critical as it is today, and this trend is likely to continue for a long time. With the evolution of 4G and initial 5G deployments underway we will see an almost six-fold increase in mobile data-traffic between 2018 and 2023 (according to Ovum’s Network Traffic Forecast: 2018-23, published in December 2018). The result? Massive demand for transport capacity. Combining this with the cell densification needed to deliver suitable coverage at a higher spectrum, mobile services will be a major driver for extending fiber reach.

Residential, business and public sectors are also driving this push for more fiber. Video continues to be the main application, having increased its share of total Internet download traffic from 58 percent to 61 percent from 2018 to 2019, according to Sandvine’s 2019 Internet Phenomena Report. New streaming and operator IPTV solutions are playing a major role in this growth, but on top of that, the evolution of video quality standards is expected to be crucial fuel to the four-fold video traffic increase that Ovum forecasts from 2018 to 2023 in its same report. Consumers’ unrelenting desire for more bandwidth is driving communication service providers on a quest to increase their bandwidth offerings throughout their covered areas, a key factor in a scenario where the largest pipe may have the best chance at winning the customer.

Analysis of recent acquisitions of regional providers shows that the valuation of most of these companies was largely based on their fiber networks. Most reports emphasize the number of fiber route-miles being acquired, with rare mentions of customer base or service expertise. Fiber-miles is the current gold-standard for the telecommunication sector. more>

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This is the one secret to managing an organization

By Maynard Webb – It’s all about people. You don’t have anything if don’t have great people doing great things.

So, what’s the secret? You have to have conviction about what you are doing. You have to have a mindset that says you are doing something amazing and exciting and people will want to be a part of it. In order to attract people to your endeavor, you must believe that it’s an incredible opportunity for others and you must execute and deliver on that promise.

Always be on the lookout for great people, and do so with a mindset of abundance. People are yearning for good opportunities and you have the privilege of being able to offer them a chance. See what you have as what’s scarce—a rare and special opportunity. Instead of thinking of hiring as chore, see it as a gift that can change someone’s life.

Always pick and promote people who will help you and your culture grow.

Don’t eliminate people because they don’t seem like a “culture fit”—embrace differences and stay rigorously focused on the cultural attributes that actually define your company. more>