The questions that will shape the future of capitalism
Advocates of free markets must engage in the public debate about them
By John Paul Rollert – What is the promise of capitalism?
That may seem like a strange question, and when I ask it of my MBAs, I suspect they regard it as an exercise in the pedagogical pastime Guess What Teacher Is Thinking. Still I ask it, for I hope it prompts my students to think about the kinds of problems capitalism is equipped to solve as well as those that are beyond its compass.
This is hardly a matter of idle speculation, especially for those who have good reason to believe that they will someday enjoy a disproportionate amount of the system’s spoils. Those fortunate individuals sometimes need to be reminded that free markets, however mighty, will not mend their marriage, relieve their cold, or stop their brother-in-law from bragging about his golf game. Indeed, there are plenty of things capitalism can’t do, and reflecting on them is a good way of distinguishing what it can do—and what it should.
Naturally, what capitalism can and should do are not one and the same. The first is a technical matter best left to economists; the second is more of an ideological affair, the province of moral and political philosophy. The distinction is an important one, but it tends to fade whenever one believes that free markets will solve most any problem: moral, social, and political as well as economic. If capitalism can do anything, so the thinking goes, then it should do everything.
Now, with the kind of intellectual prodding the question above intends, almost no one honestly believes that capitalism can, or should, do everything. Yet up until recently, it passed for conventional wisdom, in the United States and throughout most of the developed world, that capitalism could do most things, that the obvious solution to nearly any pressing problem of social organization was freer trade, fewer regulations, and far less government intervention. more>
Posted in Business, Economic development, Economy, Education, How to, Net, Technology
Tagged Business improvement, Capital, Chicago Booth, Financial crisis, Internet, Skills
The drumbeat of digital: How winning teams play
Pace and power go hand in hand for digital leaders, which typically run four times faster and pull critical strategic levers two times harder than other companies do.
By Jacques Bughin, Tanguy Catlin, and Laura LaBerge – Most executives we know have a powerful, intuitive feel for the rhythm of their businesses. They know how hard and fast to pull strategic levers, move their organization, and drive execution to achieve their objectives. Or at least they did. Digitization has intensified the rhythm of competition in many industries, leaving executives adrift, with information-gathering systems that are too slow or disconnected, direction-setting approaches that are too timid, and talent-management norms that are misaligned and incremental.
These leaders know their companies must adjust and accelerate. Digital is putting pressure on profit pools as it transfers an increasing share of value to consumers. Furthermore, those profit pools are bleeding across traditional industry lines as advanced technologies enable companies to forge into adjacencies, changing who in the value chain is making money, what share of the pie they capture, and how. The slow and inefficient are left behind, competing for scraps.
What is unclear to these executives, however, is how much and how fast to adapt their business rhythms. The exhortation to “change at the speed of digital” generates more anxiety than answers. We have recently completed some research that provides clear guidance: digital leaders appear to keep up a drumbeat in their businesses that can be four times faster, and twice as powerful, as those of their peers.
You can’t quicken the pace of an organization by fiat. You have to build it by accelerating the frequency of manageable practices that are integral to achieving key goals, such as serving the customer or driving internal efficiency. These “light-touch” actions are low risk and low investment, but they can provide high-yield returns. We have grouped them into two buckets that can help mold incumbents into digital players.
How often does your organization analyze customer data to look proactively for new ways of delighting your customers?
How frequently do your senior business leaders take time to investigate and understand new digital technologies so that they recognize which ones are truly relevant to their areas of the business?
How quickly and consistently does your company share lessons acquired from test-and-learn experiments performed by those on the front lines? more>
Posted in Broadband, Business, Economy, Education, How to, Net
Tagged Business improvement, Jobs, McKinsey, Organization, Skills, Teams
Expanding business models of managed wave services with Adaptive Networks
It goes without saying that no other method of network transport has ever surpassed the speed and performance that is delivered over optical networks. The many innovations in optical communications form the backbone of the robust, reliable, high capacity networks that connect our world. But what is less talked about are the billions in revenues that stem from innovative business and service models delivered over optical networks as managed connectivity services (aka managed wave services). Ciena’s Niloufar Tayebi details what can happen to evolve managed wave services in the era of Adaptive Networks.
By Niloufar Tayebi – Let’s step back in time to take a snap-shot of what service interfaces have previously thrived in managed wave service offers. In a managed wave service, the service provider is able to offer a wide range of client service interfaces: Ethernet, SONET/SDH, DWDM, storage area networking (SAN) interfaces and more.
For these managed wave services, the client is handing off an interface that is required to transport payload connecting two data centers in complete transparency without protocol conversion. This is done by either using a dedicated wavelength over DWDM or through the use of OTN containers (aka ODU).
With the growth of traffic and cost-per-bit declining, client interfaces are now evolving to higher bit rates – as happened with the evolution from SONET/SDH clients to 10Gbps clients – but also expanding in client protocols that supported 10Gbps, such as ODU-2 and 10GE.
One natural path for evolving a managed wave service is to continue the path of offering higher rate, with more emphasis on 100GE and ODU-4 client interfaces. Today it is common to look at a managed wave service and see 100GE and ODU-4 /100Gbps clients supported. With the ongoing reduction of cost-per-bit and higher rate transport, offering managed wave services at higher than 100Gbps client support also makes economic and technical sense.
Ciena’s market intelligence and global consulting teams have been tracking the market size of managed wave services. Their findings show 10GEoDWDM managed wave services are mature services contributing to 60% of managed wave service offers, while 100GEoDWDM managed wave services are the fastest growing wave services at a 30% CAGR. more>
Posted in Broadband, Business, Economic development, Economy, Education, How to, Net, Science, Technology
Tagged Adaptive Network, Broadband, Business improvement, Ciena, Fiber optics, Skills, Technology
The submarine network seascape in 2020
Submarine networks carry over 99% of intercontinental data traffic making it critical infrastructure to be protected and innovated upon at a frantic rate to maintain pace with the approximately 40% bandwidth growth in all submerged corridors of our world. Ciena’s submarine networking expert, Brian Lavallée, highlights key areas for focused innovation throughout 2020.
By Brian Lavallée – There are several key technologies that are the focus of submarine network innovation and will garner a great deal of time, money, resources, and attention in 2020. These technologies will once again allow submarine cable operators to modernize their submerged assets and not only maintain pace with voracious and ongoing growth in bandwidth demand but provide critical competitive differentiation as well. I cover below these key technology innovation areas that I believe will dominate the discussion seascape throughout 2020.
With voracious and ongoing bandwidth growth experienced for many years now, coupled with expanding rollout of 5G services that significantly increase access speeds to content hosted in data centers, cable operators are constantly seeking new ways to increase available bandwidth between continental landmasses for Data Center Interconnection (DCI) purposes – satellite networks need not apply!
Although Submarine Line Terminating Equipment (SLTE) has been constantly innovative upon at a frenetic pace for the past decade, the wet plants they connect to have experienced comparatively little innovation – until now. Wet plants leveraging SDM technology offer more fiber pairs than traditional submarine cables, and although SDM cables support less capacity per fiber pair, they have a much higher overall capacity due to far more pairs (12 and higher), which is further enhanced with power-optimized repeater (misnomer for subsea optical amplifier) designs.
As an industry proof point, the first SDM-based submarine cable deployed is the transatlantic Dunant cable, which supports up to 250Tb/s of overall capacity over an aggregate of 12 fiber pairs, which is many more than the traditional 6 to 8 fiber pairs offered on recent submarine cable deployments. more>
Posted in Broadband, Business, Communication industry, Economic development, Economy, Education, How to, Net, Science, Technology
Tagged Business improvement, Ciena, Fiber optics, Internet, Skills, Technology
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>
Posted in Business, Economy, Education, History, How to, Technology
Tagged Business improvement, Capital, Chicago Booth, Financial crisis, Multinational, Recession, Skills
How you can accelerate and de-risk your network transformation with Lifecycle Management
Successful network transformation is about delivering the right business outcomes, not just deploying new kit. With effective Lifecycle Management (LCM), you can make sure that your projects are properly aligned to your business needs and – crucially – you can accelerate and de-risk your transformation projects as well, says Robin Hobbs, Director, Services Sales & Strategy for Ciena in EMEA.
By Robin Hobbs – It can seem that most technology vendors just want to sell you equipment and oversee deployment activities until their kit is live in your network. However, their primary concern may not be whether their solution is delivering the business benefits you set out to achieve.
This deployment-focussed approach can leave you at a loss as to how to fine-tune and optimize your environment. That means you may be unable to meet customer SLAs consistently as traffic demands grow, or you may struggle to monetize your network to its fullest potential.
So how can you ensure that you choose the right underlying technologies to support your transformation strategy, and design and build a solution that meets your business needs long term? And how can you operate your upgraded network effectively and optimize its performance and efficiency over time to maximize your competitive advantage and ROI?
To avoid the dangers of ‘short-termism’ in network upgrade strategies, operators are increasingly turning to LCM (Lifecycle Management). This is a systematic, ‘step-based’ approach to network transformation and ongoing management. This approach means you can deliver projects quickly and cost-effectively, while also ensuring the best business outcomes for your organization and your customers.
Crucially, LCM recognizes that network transformation is a journey and one that is cyclical in nature, not just a deployment. This means every step is carefully structured and documented, with no element of your transformation left to chance. Some of the benefits are a faster, lower-risk deployment and migration, improved customer experience based on optimizing network availability and performance, and the ability to continually assess and ‘future-proof’ your network to avoid costly forklift upgrades in the future. more>
Posted in Broadband, Business, Communication industry, Economy, Education, How to, Net, Science, Technology
Tagged Broadband, Business improvement, Ciena, Fiber optics, Internet, Skills, Technology
By John Lusty – Digitalization is transforming the global Energy & Utilities (E&U) industry, and the most exciting part is that it’s happening so differently in each industry sector depending on their unique plans and priorities. That’s because each organization has a slightly different digital legacy and is executing a different business model that is making them a leader in their respective sectors of the market. It’s also because E&U businesses are inherently non-uniform due to mergers and acquisitions, project mindsets, boom and bust business cycles, breakthroughs in technology, and sudden societal or geopolitical shifts that ripple through the global energy economy at the speed of light.
This blog is the first in a new series from Siemens Digital Industries Software, where we’ll discuss trends in digitalization that relate to the Energy & Utilities industry. At Siemens, we have the privilege of working closely with industry leaders and people from an extensive range of manufacturing sectors with different degrees of digital maturity. That lets us see what’s working great as well as some things that didn’t go quite as planned.
We’re also the software business unit within Siemens AG, a mega-enterprise of close to 400,000 colleagues that acts as a massive internal customer for our solutions. People usually look at us a little differently, knowing that as a global engineering and manufacturing organization that relies extensively on our software solutions, we truly have “skin in the game” as our supplier.
Much work has been done across the E&U industry to assemble and apply the “digital twin” of assets, projects and facilities to be more efficient, profitable, and operationally excellent. In this blog, we’ll review examples of excellence in these areas and speak with some of the people who made them happen. more>
Posted in Business, Economic development, Economy, Education, Energy & emissions, How to, Net, Science, Technology
Tagged Business improvement, Climate change, Digital transformation, Energy, Siemens, Skills