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Hey Siri. Why did Apple pay $200m for an AI start-up?
JANUARY 15 2020 | Financial Times | Richard Waters and Patrick McGee in San Francisco.

For Apple, better on-device AI would allow the company’s customers to keep full control of their personal data.

Apple has paid almost $200m for an AI start up, Seattle-based Xnor, that specialises in bringing intelligence to “smart” devices.....Xnor specialises in running complex machine learning models on so-called edge devices — the wide range of gadgets, from smartphones to smart home devices and cars, that operate beyond the reach of the cloud data centres that currently handle most artificial intelligence processing.  Running machine learning on-device, rather than in the cloud, has become one of the most important technology frontiers in the spread of AI. For Apple, better on-device AI would allow the company’s customers to keep full control of their personal data......That has become an important part of the company’s marketing pitch as it tries to distinguish itself from Google and Facebook.

Xnor had developed a way to run large machine learning models without requiring the computing resources and power normally needed for such data-intensive work (e.g. the technology reduces network demands caused by AI aka latency). .....This means that critical applications can continue to run even when they lose a connection to the cloud, such as in driverless cars.
Apple  artificial_intelligence  cloud_computing  connected_devices  data_centers  decentralization  edge  Facebook  Google  latency  M&A  machine_learning  on-device  personal_data  Richard_Waters  Siri  start_ups  Xnor 
11 weeks ago by jerryking
Goldman taps Amazon executive as new tech boss
September 12, 2019 | Financial Times | Laura Noonan in New York.

Goldman Sachs has hired a senior executive from Amazon Web Services (AWS) to replace departing technology boss Elisha Wiesel, in a move that could accelerate the bank’s migration to cloud services.

Goldman announced the appointment of Marco Argenti, erstwhile vice-president of technology at cloud-technology provider AWS. He will be co-chief information officer, replacing Mr Wiesel, a Goldman veteran who was last week reported to be in talks to leave the bank.

The Wall Street giant, which likes to describe itself as more of a tech company than a bank, has also hired a senior Verizon executive, Atte Lahtiranta, as its new chief technology officer, replacing John Madsen who is leaving the partnership but will continue as chief architect of technology.....Goldman Sachs was an early convert to cloud computing — where processing capability is accessed online rather than through physical machines — and has used it to strip out costs over the past few years.
Amazon  appointments  AWS  C-suite  CIO  cloud_computing  digital_savvy  digital_strategies  Goldman_Sachs 
september 2019 by jerryking
3 reasons why restaurants need mobile, cloud technology | FastCasual
April 14, 2014

Google: "cloud computing" fast food franchises
digital-first restaurants valuations
cloud_computing  mobile_applications  mobile_phones  restaurants  virtual_restaurants 
september 2019 by jerryking
Opinion: Canadian companies must prepare for disruptors to come knocking
July 26, 2019 | The Globe and Mail | by JOHN RUFFOLO.

In August, 2011, technology legend Marc Andreessen wrote his seminal article titled Why Software Is Eating the World, which became the central investment thesis behind his venture capital firm Andreessen Horowitz. Andreessen’s prognostication has since followed Amara’s Law on the effect of technology, which aptly states: “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.” [JCK: See also Andy Kessler's definition of S-Curves "Technology develops in S curves: Things start slow, go into hyperbolic growth, and then roll over. "] The feast has really just begun.

We are in the midst of the Fourth Industrial Revolution – or as some call it, the Information Revolution.....the Information Revolution really began to take shape in 2008, catalyzed by three incredibly powerful and converging forces – mobility-first, cloud computing and social media. All three forces collided together with full impact in 2008, spawning a wave of new technology companies.......The next phase of the Fourth Industrial Revolution will see the rise of a new species of company – the “disruptors.” While technology companies will continue to grow, we are witnessing the enablement of those technologies across all economic sectors as the leading weapon used by new entrants to disrupt the traditional incumbents in their respective industries. The massive influx of venture capital to support the building and growth of technology companies over the past 10 years has produced these tools, such as artificial intelligence, machine learning, and the internet of things, which are now being leveraged across all industries......Those companies that can harness these new technologies to operate better and faster, and to gain unmatched insights into their customers, will prosper. Although these disruptors are not technology companies in the conventional sense, their tight focus on value creation through innovation further blurs the lines between a technology company and a traditional company.

The incumbents, however, are not asleep at the wheel. To ward off the disruptors, they know they must embrace technology. It is this battleground that I believe will generate the greatest wealth creation and transfer opportunities over the next decade. The disruptors, naturally, are particularly active in those industries where they perceive the incumbents to be burdened by outdated technological infrastructure or business models, and hard-pressed to counterattack.

Yesterday, the disruptors focused primarily on consumer sectors such as the music industry, travel booking, newspapers, magazines and book publishing. Today, it’s groceries, entertainment and personal transportation, thanks to Amazon, Netflix and Uber, respectively.

But consumer-focused sectors were just the start for the disruptors. Before long, I believe we will see them try to disrupt varied industries such as banking, insurance, health care, real estate and even agriculture and mining; no industry will be immune. These sectors all represent emblematic Canadian brands, and yes, each will in turn will go through the same jarring disruption as so many others.
************************************************
See [Why It’s Not Enough Just to Be Disruptive - The New York Times
By JEREMY G. PHILIPS AUG. 10, 2016] Creating enormous value over the long term requires turning a tactical edge into some form of durable advantage....Superior tactical execution can still create real value, particularly where it provides ammunition for a bigger war (like Walmart’s battle with Amazon). And in the long term, value is created not by disruption, but by weaving together advantages (as both Amazon and Walmart have done in different ways) that together create a barrier that is hard to storm.
Amara's_Law  artificial_intelligence  cloud_computing  digital_savvy  disruption  incumbents  insurgents  investment_thesis  John_Ruffolo  legacy_tech  Marc_Andreessen  mobility_first  overestimation  S-curves  social_media  software_is_eating_the_world  start_ups  technology  underestimation  venture_capital 
july 2019 by jerryking
With the iPhone Sputtering, Apple Bets Its Future on TV and News
March 25, 2019 | WSJ | By Tripp Mickle.

The iPhone is running out of juice. To go beyond the device that made Apple Inc. a global colossus, Tim Cook is betting on a suite of services—marking the company’s biggest shift in more than a decade......Apple will take a giant leap forward announcing video- and news-subscription services that it hopes will generate billions of dollars in new annual revenue and deepen ties between iPhone users and the company.....apps and services, from Spotify to Netflix to China’s WeChat , have often become more important to users than the devices that run them. .....The company’s ambition in video is to become an alternative to cable, combining original series with shows from other networks to create a new entertainment service that can reach more than 100 markets world-wide. ....Apple hasn’t said what it will charge for the programming. .....The original series will be delivered in a new TV app that staff have been calling a Netflix killer.....Apple has been negotiating to bring its new TV app to multiple platforms, including Roku and smart TVs.........Apple plans to showcase a revamped News app that includes a premium tier with access to more than 200 magazines—including Bon Appétit, People and Glamour—as well as newspapers, including The Wall Street Journal.....The Washington Post and New York Times aren’t participating in the new app...... in the early 2000s, co-founder Steve Jobs reinvented the company by pushing it into mobile devices. The iPod and its accompanying iTunes service revived a company that was largely dependent on Mac computer sales....Mr. Cook is attempting a similar feat in the approaching twilight of the smartphone era....Cook wanted to know which apps were selling well, how many Apple Music subscribers stuck with the service, and how many people were signing up for iCloud storage.....Apple’s biggest source of services revenue comes from distributing other companies’ software through its App Store.....Apple’s music-streaming service has about 50 million global subscribers—far behind Spotify’s 96 million.

Apple’s base of 1.4 billion iPhones, iPads and Macs in use globally gives it a distribution platform..................The push into news subscriptions could help Apple battle Facebook, whose News Feed has helped it become the No. 1 app world-wide in monthly active smartphone users.....Facebook is attempting to become a super-app like China’s WeChat, which allows users to shop, order food, buy movie tickets and make reservations on any mobile operating system......Steve Jobs foreshadowed Apple’s services future when he started iTunes in 2001, offering categories from competing major labels to make the first successful digital-music store, with songs available for 99 cents.

For Mr. Cook’s monthly services meetings, the company monitors of apps that benefit and threaten Apple. There is a "release radar" for Cook to track apps that are expected to sell well and other metrics for the apps that have challenged Apple’s business, including iTunes sales decreases compared with Apple Music subscription growth.
App_Store  Apple  Apple_IDs  Apple_Music  big_bets  CEOs  cloud_computing  Disney  iCloud  iPhone  iTunes  magazines  mobile_applications  multiplatforms  Netflix  news  NYT  original_content  pivots  platforms  services  smartphones  Spotify  storage  streaming  subscriptions  television  Tim_Cook  WaPo  WeChat 
march 2019 by jerryking
Everything still to play for with AI in its infancy
February 14, 2019 | Financial Times | by Richard Waters.

the future of AI in business up for grabs--this is a clearly a time for big bets.

Ginni Rometty,IBM CEO, describes Big Blue’s customers applications of powerful new tools, such as AI: “Random acts of digital”. They are taking a hit-and-miss approach to projects to extract business value out of their data. Customers tend to start with an isolated data set or use case — like streamlining interactions with a particular group of customers. They are not tied into a company’s deeper systems, data or workflow, limiting their impact. Andrew Moore, the new head of AI for Google’s cloud business, has a different way of describing it: “Artisanal AI”. It takes a lot of work to build AI systems that work well in particular situations. Expertise and experience to prepare a data set and “tune” the systems is vital, making the availability of specialised human brain power a key limiting factor.

The state of the art in how businesses are using artificial intelligence is just that: an art. The tools and techniques needed to build robust “production” systems for the new AI economy are still in development. To have a real effect at scale, a deeper level of standardisation and automation is needed. AI technology is at a rudimentary stage. Coming from completely different ends of the enterprise technology spectrum, the trajectories of Google and IBM highlight what is at stake — and the extent to which this field is still wide open.

Google comes from a world of “if you build it, they will come”. The rise of software as a service have brought a similar approach to business technology. However, beyond this “consumerisation” of IT, which has put easy-to-use tools into more workers’ hands, overhauling a company’s internal systems and processes takes a lot of heavy lifting. True enterprise software companies start from a different position. They try to develop a deep understanding of their customers’ problems and needs, then adapt their technology to make it useful.

IBM, by contrast, already knows a lot about its customers’ businesses, and has a huge services operation to handle complex IT implementations. It has also been working on this for a while. Its most notable attempt to push AI into the business mainstream is IBM Watson. Watson, however, turned out to be a great demonstration of a set of AI capabilities, rather than a coherent strategy for making AI usable.

IBM has been working hard recently to make up for lost time. Its latest adaptation of the technology, announced this week, is Watson Anywhere — a way to run its AI on the computing clouds of different companies such as Amazon, Microsoft and Google, meaning customers can apply it to their data wherever they are stored. 
IBM’s campaign to make itself more relevant to its customers in the cloud-first world that is emerging. Rather than compete head-on with the new super-clouds, IBM is hoping to become the digital Switzerland. 

This is a message that should resonate deeply. Big users of IT have always been wary of being locked into buying from dominant suppliers. Also, for many companies, Amazon and Google have come to look like potential competitors as they push out from the worlds of online shopping and advertising.....IBM faces searching questions about its ability to execute — as the hit-and-miss implementation of Watson demonstrates. Operating seamlessly in the new world of multi-clouds presents a deep engineering challenge.
artificial_intelligence  artisan_hobbies_&_crafts  automation  big_bets  brainpower  cloud_computing  contra-Amazon  cultural_change  data  digital_strategies  early-stage  economies_of_scale  Google  hit-and-miss  IBM  IBM_Watson  internal_systems  randomness  Richard_Waters  SaaS  standardization  value_extraction 
february 2019 by jerryking
Microsoft Is Worth as Much as Apple. How Did That Happen?
Nov. 29, 2018 | The New York Times | By Steve Lohr.

Just a few years ago, Microsoft was seen as a lumbering has-been of the technology world.....the company had lost its luster, failing or trailing in the markets of the future like mobile, search, online advertising and cloud computing.....It’s a very different story today. Microsoft is running neck and neck with Apple for the title of the world’s most valuable company, both worth more than $850 billion, thanks to a stock price that has climbed 30 % over the past 12 mths.

So what happened?

* The company built on its strengths

There is a short-term explanation for Microsoft’s market rise, and there is a longer-term one.

The near-term, stock-trading answer is that Microsoft has held up better than others during the recent sell-off of tech company shares. The more enduring and important answer is that Microsoft has become a case study of how a once-dominant company can build on its strengths and avoid being a prisoner of its past. It has fully embraced cloud computing, abandoned an errant foray into smartphones and returned to its roots as mainly a supplier of technology to business customers.

* It bet big on the cloud and won …
Microsoft’s path to cloud computing — processing, storage and software delivered as a service over the internet from remote data centers — was lengthy and sometimes halting.... it did not have an offering comparable to Amazon’s until 2013. Even then, Microsoft’s cloud service was a side business. The corporate center of gravity remained its Windows operating system, the linchpin of the company’s wealth and power during the personal computer era. That changed after Mr. Nadella replaced Steven A. Ballmer, who had been chief executive for 14 years. Mr. Nadella made the cloud service a top priority, and the company is now a strong No. 2 to Amazon.....Microsoft has also retooled its popular Office apps like Word, Excel and PowerPoint in a cloud version, Office 365......“The essence of what Satya Nadella did was the dramatic shift to the cloud,” said David B. Yoffie, a professor at the HBS. “He put Microsoft back into a high-growth business.”

* … while walking away from losing bets
When Microsoft acquired Nokia’s mobile phone business in 2013, Mr. Ballmer hailed the move as a “bold step into the future.” Two years later, Mr. Nadella walked away from that future, taking a $7.6 billion charge, nearly the entire value of the purchase, and shedding 7,800 workers.

Microsoft would not try to compete with the smartphone technology leaders, Apple, Google and Samsung. Instead, Microsoft focused on its developing apps and other software for business customers. Microsoft products, in the main, are about utility — productivity tools, whether people use them at work or at home. And its Azure cloud technology is a service for businesses and a platform for software developers to build applications, a kind of cloud operating system.

Mr. Nadella’s big acquisitions have been intended to add to its offerings for business users and developers. In 2016, Microsoft bought LinkedIn, the social network for professionals, for $26.2 billion.

“It’s really the coming together of the professional cloud and the professional network,” Mr. Nadella explained at the time.

This year, Microsoft paid $7.5 billion for GitHub, an open software platform used by 28 million programmers.

* It has opened up its technology and culture
Under Mr. Nadella, Microsoft has loosened up. Windows would no longer be its center of gravity — or its anchor. Microsoft apps would run not only on Apple’s Macintosh software but on other operating systems as well. Open source and free software, once anathema to Microsoft, was embraced as a vital tool of modern software development.

Mr. Nadella preached an outward-looking mind-set. “We need to be insatiable in our desire to learn from the outside and bring that learning into Microsoft,” ......“The old, Windows-centric view of the world stifled innovation,” .....“The company has changed culturally.
cloud_computing  kill_rates  Microsoft  outward_looking  Satya_Nadella  Steve_Lohr  strengths  turnarounds  big_bets  walking_away 
november 2018 by jerryking
The Morning Download: Computing’s Future Lies at Edge of Network, Just Before the Cloud - CIO Journal. - WSJ
By Steve Rosenbush
Jun 20, 2018

For years, computing has been centralized in one place or another. First, the data center, and later massive clouds. Now, networks are taking a more decentralized structure, with power located at the so-called edge, be it a retail environment, an oil rig or an automobile. On Tuesday, Hewlett Packard Enterprise Co. said it will invest $4 billion during the next four years to accelerate innovation in what HPE calls “the intelligent edge.”

Edge of opportunity. “We see significant areas for growth … (as) more assets and ‘things’ come online and the amount of data generated continues to grow exponentially,” HPE CEO Antonio Neri told CIO Journal’s Sara Castellanos in an email. The number of devices connected to the internet will reach 20.4 billion by 2020, up from 8.4 billion in 2017, according to Gartner Research Inc. By 2021, 40% of enterprises will have an edge computing strategy in place, up from about 1% in 2017, Gartner says.

The payoff. Stewart Ebrat, CIO at bridal gown and fashion company Vera Wang Co., an HPE customer, maintains that with data analytics and Bluetooth-enabled beacon devices at the edge, a salesperson could know more about a prospective customer’s preferences as soon as they walk into a brick-and-mortar store. Says Mr. Ebrat: “The customer has always been number one (at Vera Wang), but technology is going to enhance that experience even further.”
cloud_computing  decentralization  edge  future  Industrial_Internet  IT  artificial_intelligence  centralization  machine_learning  HPE  HP  data_centers 
june 2018 by jerryking
Vertical media mergers are just so 19th century | Financial Times
June 21, 2018 | Financial Times | Anne-Marie Slaughter.

Media companies are falling over themselves to merge with one another right now. AT&T took the US to court over the right to buy TimeWarner, and Comcast and Disney are engaged in a bidding war for some of 21st Century Fox. Big looks set to get bigger. Yet according to our best thinkers on the future of capitalism, the corporate titans driving these decisions are heading firmly backward.

AT&T and Comcast are communications companies that are attempting to go vertical and control every layer of a media empire from underground cables to the creation of content....Andrew Carnegie was determined to own coal mines and railroads as well as steel mills. The goal was control from top to bottom, closed access and economies of scale.

But that is old-fashioned thinking, according to the current crop of books on the dramatic economic changes being wreaked in the next phase of the information age. They argue that vertical integration amounts to building silos in an era that will be dominated by platforms — owning in an era of renting — and looking for mass markets when customers want individualized products.

Hemant Taneja makes a strong case for “customised microproduction and finely targeted marketing” in his book Unscaled. An investor for the Boston-based firm General Catalyst, he does not question the value of having many customers rather than few. But he argues that fast-growing companies in sectors ranging from energy to healthcare and education are succeeding because they customise their goods and services to a “market of one”.

The rise of artificial intelligence and cloud computing allows these companies to “rent scale”, he writes. Small, nimble companies can now out-compete big ones in specific markets, adding scale as they need to.....Netflix’s market value exceeded that of Comcast back in May and it is now bigger than Disney. Its global headcount is 5,500, nearly one-fifth of Time Warner’s and one-50th of AT&T’s. Netflix does not have the size to build as large in-house AI capabilities. But a quick search for “media data analytics” reveals a score of companies. Why pay for that capability when you can rent it
Andrew_Carnegie  Anne-Marie_Slaughter  artificial_intelligence  books  cloud_computing  end_of_ownership  entertainment_industry  Netflix  platforms  scaling  size  vertical_integration  AT&T  Comcast  customization  Disney  gazelles  nimbleness  mass_media  personalization  mergers_&_acquisitions  21st_Century_Fox  Time_Warner  19th_century  microproducers  target_marketing  unscalability  silo_mentality 
june 2018 by jerryking
The future of computing is at the edge
June 6, 2018 | FT | by Richard Waters in San Francisco.

With so much data being produced, sending it all to cloud does not make economic sense.

The economics of big data — and the machine learning algorithms that feed on it — have been a gift to the leading cloud computing companies. By drawing data-intensive tasks into their massive, centralised facilities, companies such as Amazon, Microsoft and Google have thrived by bringing down the unit costs of computing.

But artificial intelligence is also starting to feed a very different paradigm of computing. This is one that pushes more data-crunching out to the network “edge” — the name given to the many computing devices that intersect with the real world, from internet-connected cameras and smartwatches to autonomous cars. And it is fuelling a wave of new start-ups which, backers claim, represent the next significant architectural shift in computing.....Xnor.ai, an early-stage AI software start-up that raised $12m this month, is typical of this new wave. Led by Ali Farhadi, an associate professor at University of Washington, the company develops machine learning algorithms that can be run on extremely low-cost gadgets. Its image recognition software, for instance, can operate on a Raspberry Pi, a tiny computer costing just $5, designed to teach the basics of computer science......That could make it more economical to analyse data on the spot rather than shipping it to the cloud. One possible use: a large number of cheap cameras around the home with the brains to recognise visitors, or tell the difference between a burglar and a cat.

The overwhelming volume of data that will soon be generated by billions of devices such as these upends the logic of data centralisation, according to Mr Farhadi. “We like to say that the cloud is a way to scale AI, but to me it’s a roadblock to AI,” he said. “There is no cloud that can digest this much data.”

“The need for this is being driven by the mass of information being collected at the edge,” added Peter Levine, a partner at Silicon Valley venture capital firm Andreessen Horowitz and investor in a number of “edge” start-ups. “The real expense is going to be shipping all that data back to the cloud to be processed when it doesn’t need to be.”

Other factors add to the attractions of processing data close to where it is collected. Latency — the lag that comes from sending information to a distant data centre and waiting for results to be returned — is debilitating for some applications, such as driverless cars that need to react instantly. And by processing data on the device, rather than sending it to the servers of a large cloud company, privacy is guaranteed.

Tobias Knaup, co-founder of Mesosphere, another US start-up, uses a recent computing truism to sum up the trend: “Data has gravity.”....Nor are the boundaries between cloud and edge distinct. Data collected locally is frequently needed to retrain machine learning algorithms to keep them relevant, a computing-intensive task best handled in the cloud. Companies such as Mesosphere — which raised $125m this month, taking the total to more than $250m — are betting that this will give rise to technologies that move information and applications to where they are best handled, from data centres out to the edge and vice versa...Microsoft unveiled image-recognition software that was capable of running on a local device rather than its own data centres.
Andreessen_Horowitz  artificial_intelligence  centralization  cloud_computing  computer_vision  data_centers  decentralization  edge  future  Industrial_Internet  IT  latency  low-cost  machine_learning  Microsoft  Richard_Waters 
june 2018 by jerryking
‘You’re Stupid If You Don’t Get Scared’: When Amazon Goes From Partner to Rival - WSJ
By Jay Greene and Laura Stevens
June 1, 2018

The data weapon
One Amazon weapon is data. In retail, Amazon gathered consumer data to learn what sold well, which helped it create its own branded goods while making tailored sales pitches with its familiar “you may also like” offer. Data helped Amazon know where to start its own delivery services to cut costs, an alternative to using United Parcel Service Inc. and FedEx Corp.

“In many ways, Amazon is nothing except a data company,” said James Thomson, a former Amazon manager who advises brands that work with the company. “And they use that data to inform all the decisions they make.”

In web services, data across the broader platform, along with customer requests, inform the company’s decisions to move into new businesses, said former Amazon executives.

That gives Amazon a valuable window into changes in how corporations in the 21st century are using cloud computing to replace their own data centers. Today’s corporations frequently want a one-stop shop for services rather than trying to stitch them together. A food-services firm, say, might want to better track data it collects from its restaurants, so it would rent computing space from Amazon and use a data service offered by a software company on Amazon’s platform to better analyze what customers order. A small business might use an Amazon partner’s online services for password and sign-on functions, along with other business-management programs.
21st._century  Amazon  AWS  brands  cloud_computing  contra-Amazon  coopetition  data  data_centers  data_collection  data_driven  delivery_services  fear  new_businesses  one-stop_shop  partnerships  platforms  private_labels  rivalries  small_business  strengths  tools  unfair_advantages 
june 2018 by jerryking
What the Tax Bill Fails to Address: Technology’s Tsunami -
DEC. 20, 2017 | The New York Times | Farhad Manjoo.

Manjoo posits that the Republican tax bill is the wrong fix for the wrong problem, given how tech is altering society and the economy....The bill (the parachute) does little to address the tech-abetted wave of economic displacement (the tsunami) that may be looming just off the horizon. And it also seems to intensify some of the structural problems in the tech business, including its increasing domination by five giants — Apple, Amazon, Microsoft, Facebook and Alphabet, Google’s parent company — which own some of the world’s most important economic platforms.....some in Silicon Valley think the giants misplayed their hand in the legislation. In pursuing short-term tax advantages, they missed a chance to advocate policies that might have more broadly benefited many of their customers — and improved their images, too......This gets back to that looming tsunami. Though many of the economy’s structural problems predate the last decade’s rise of the tech behemoths, the innovations that Silicon Valley has been working on — things like e-commerce, cloud storage, artificial intelligence and the general digitization of everything and everyone around you — are some of the central protagonists in the economic story of our age.

Among other economic concerns, these innovations are implicated in the rise of inequality; the expanding premium on education and skills; the decimation and dislocation of retail jobs; the rising urban-rural divide, and spiking housing costs in cities; and the rise of the “gig” economy of contract workers who drive Ubers and rent out their spare bedrooms on Airbnb....technology is changing work in a few ways. First, it’s altering the type of work that people do — for instance, creating a boom in e-commerce warehouse jobs in large metro areas while reducing opportunities for retail workers in rural areas. Technology has also created more uncertainty around when people work and how much they’ll get paid.
Farhad_Manjoo  preparation  job_loss  job_displacement  Silicon_Valley  tax_codes  corporate_concentration  platforms  income_inequality  short-sightedness  e-commerce  cloud_computing  artificial_intelligence  gig_economy  precarious  automation  uncertainty  universal_basic_income  digitalization  Apple  Amazon  Netflix  Microsoft  Facebook  Alphabet  Google  inconsistent_incomes  Big_Tech  FAANG 
december 2017 by jerryking
20 Years On, Amazon and Jeff Bezos Prove Naysayers Wrong - The New York Times
Andrew Ross Sorkin
DEALBOOK MAY 15, 2017

Twenty years ago this week, Amazon.com went public........Here we are, 20 years later, and Mr. Bezos has an authentic, legitimate claim on having changed the way we live.

He has changed the way we shop. He has changed the way companies use computers, by moving much of their information and systems to cloud services. He’s even changed the way we interact with computers by voice: “Alexa!”......he has bought — and fixed — The Washington Post,.........Most executives are worried about the next quarter, but Mr. Bezos is worried about what will happen years from now. That is a competitive advantage that many chief executives could learn from.

“If everything you do needs to work on a three-year time horizon, then you’re competing against a lot of people,” Mr. Bezos told Wired in 2011. Here, he was expressing the view that some chief executives think in three-year cycles — a relatively generous assessment, given that most top executives don’t last many more years than that.

“But,” he continued, “if you’re willing to invest on a seven-year time horizon, you’re now competing against a fraction of those people, because very few companies are willing to do that.”....Is Mr. Bezos an easy boss? Hardly. He is unbelievably demanding. ......I’m supposed to hate Mr. Bezos. After all, he has pressured publishers, cut their margins and practically put old-school bookstores out of business. As if to rub it in, he’s now introducing bricks-and-mortar Amazon bookstores.

But to take that view would be to misunderstand what innovation looks like. It upends industries — witness the current carnage in the retail industry, which has been outmoded by Amazon and all the companies trying to copy it.

“Amazon is not happening to book selling,” Mr. Bezos explained, defending his role in a 2013 interview with Charlie Rose. “The future is happening to book selling.” And the future is now happening to retail stores and even supermarkets — Mr. Bezos’ next conquest. And the future is clearly happening to enterprise computing.
Andrew_Sorkin  Jeff_Bezos  Amazon  WaPo  newspapers  e-commerce  anniversaries  moguls  trailblazers  time_horizons  cloud_computing  Alexa  long-term  Warren_Buffett  innovation 
may 2017 by jerryking
Is Your Stuff Safe in the Cloud? - WSJ
By GEOFFREY A. FOWLER
March 14, 2017

COnsider private clouds
cloud_computing  privacy  digital_storage  Dropbox  Apple  Google 
march 2017 by jerryking
Tech Startups Struggle to Close Deals With IT Buyers - WSJ
By ANGUS LOTEN
Aug. 24, 2016

As Haier and other large corporations become increasingly digital, they are spending more time checking out technology offered by small, independent tech firms. Yet startup products and services for enterprises, while more accepted than a few years ago, still face significant resistance on the path toward revenue, CIOs and industry analysts say.

“I won’t take a risk on something that isn’t from a proven enterprise technology company,” especially for key functions, such as sales, human resources, cybersecurity or even office email, said Ms. Johnston. “Some startups are just so cheap or free, you’re nervous to go with it. What if they go out of business?”

Only 23% of 112 large corporations in a recent survey said working with startups was very important, according
customer_adoption  start_ups  large_companies  CIOs  Haier  challenges  cloud_computing  risk-aversion  SaaS  IT  risks 
august 2016 by jerryking
Computing Beyond Moore’s Law - The CIO Report - WSJ
Apr 8, 2016 GUEST VOICES
Computing Beyond Moore’s Law
ARTICLE
COMMENTS (3)
CHIPS
INTEL
MOORE'S LAW
14
By IRVING WLADAWSKY-BERGER
Moore's_Law  software  evolution  cloud_computing  Marc_Andreessen  Irving_Wladawsky-Berger 
april 2016 by jerryking
Microsoft banks on bots to restore company’s mobile relevance - The Globe and Mail
SHANE DINGMAN - TECHNOLOGY REPORTER
The Globe and Mail
Published Wednesday, Mar. 30, 2016

Mr. Nadella to describe how bots and machine learning tools are going to create a new “distributed computing fabric” that will vault Microsoft back into relevance on mobile platforms that are built and owned by rivals at Apple and Google. The theory is that if the App Store is owned by the phone makers, you go around the store with bots that live inside other popular mobile services....Everyone from Facebook and Slack to Amazon and Google are already vying to build the best hosts for these new bot services. Canadian messaging company Kik is among those making major investments in this bot-driven future that foresees commands to semi-artificially intelligent interactive chatbots expanding into everything from physical commerce (buying stuff at a shop with your phone, essentially) to controlling Internet of Things devices (texting your coffee machine to make an espresso). Microsoft showed off similar concepts on Wednesday, including a cupcake shopbot and a Domino’s Pizza bot that can deliver food to your location.
bots  Microsoft  platforms  Kik  CEOs  Satya_Nadella  distributed_computing  machine_learning  Azure  cloud_computing  software  intelligent_agents  chatbots 
march 2016 by jerryking
When Your App Is in the Cloud - The New York Times
People at a sports event have had their season tickets scanned, and by linking that information to their mobile numbers, promotions for, perhaps, two beers for the price of one might be texted to their phones during the game. (How creepy this might seem is for society to
sports  cloud_computing  mobile_phones 
march 2016 by jerryking
Gearing Up for the Cloud, AT&T Tells Its Workers: Adapt, or Else - The New York Times
FEB. 13, 2016| NYT | By QUENTIN HARDY.

For the company to survive in this environment, Mr. Stephenson needs to retrain its 280,000 employees so they can improve their coding skills, or learn them, and make quick business decisions based on a fire hose of data coming into the company.....Learn new skills or find your career choices are very limited.

“There is a need to retool yourself, and you should not expect to stop,”....People who do not spend five to 10 hours a week in online learning, he added, “will obsolete themselves with the technology.” .......By 2020, Mr. Stephenson hopes AT&T will be well into its transformation into a computing company that manages all sorts of digital things: phones, satellite television and huge volumes of data, all sorted through software managed in the cloud.

That can’t happen unless at least some of his work force is retrained to deal with the technology. It’s not a young group: The average tenure at AT&T is 12 years, or 22 years if you don’t count the people working in call centers. And many employees don’t have experience writing open-source software or casually analyzing terabytes of customer data. .......By 2020, Mr. Stephenson hopes AT&T will be well into its transformation into a computing company that manages all sorts of digital things: phones, satellite television and huge volumes of data, all sorted through software managed in the cloud.

.......“Everybody is going to go face to face with a Google, an Amazon, a Netflix,” he said. “You compete based on data, and based on customer insights you get with their permission. If we’re wrong, it won’t play well for anyone here.
Quentin_Hardy  AT&T  cloud_computing  data  retraining  reinvention  skills  self-education  virtualization  data_scientists  new_products  online_training  e-learning  customer_insights  Google  Amazon  Netflix  data_driven 
february 2016 by jerryking
Looking Beyond the Internet of Things
JAN. 1, 2016 | NYT | By QUENTIN HARDY.

Adam Bosworth is building what some call a “data singularity.” In the Internet of Things, billions of devices and sensors would wirelessly connect to far-off data centers, where millions of computer servers manage and learn from all that information.

Those servers would then send back commands to help whatever the sensors are connected to operate more effectively: A home automatically turns up the heat ahead of cold weather moving in, or streetlights behave differently when traffic gets bad. Or imagine an insurance company instantly resolving who has to pay for what an instant after a fender-bender because it has been automatically fed information about the accident.

Think of it as one, enormous process in which machines gather information, learn and change based on what they learn. All in seconds.... building an automated system that can react to all that data like a thoughtful person is fiendishly hard — and that may be Mr. Bosworth’s last great challenge to solve....this new era in computing will have effects far beyond a little more efficiency. Consumers could see a vast increase in the number of services, ads and product upgrades that are sold alongside most goods. And products that respond to their owner’s tastes — something already seen in smartphone upgrades, connected cars from BMW or Tesla, or entertainment devices like the Amazon Echo — could change product design.
Quentin_Hardy  Industrial_Internet  data  data_centers  data_driven  machine_learning  Google  Amazon  cloud_computing  connected_devices  BMW  Tesla  Amazon_Echo  product_design  Michael_McDerment  personalization  connected_cars 
january 2016 by jerryking
Canada’s new census needs to capture nuances of fast-evolving economy - The Globe and Mail
MIKE MCDERMENT
Contributed to The Globe and Mail
Published Saturday, Nov. 21, 2015

Building a world that better suits their needs is good for the Canadian economy and it starts with collecting better data.

In 2016, the government will reintroduce the census used before the previous government came to power. Adherence to inflexible testing principles and a looming print deadline mean that a more comprehensive survey will not be ready in time for next year. I understand this – it’s prudent to get accurate data. But printing? It’s 2015. We can file our taxes online; surely, we can a complete the long-form census online.

Perhaps a better question is: Can we afford to go five years between censuses given the current rate of change driven by technology? Just look at Canada’s manufacturing, automotive, and oil and gas sectors – rapid change in a fast-evolving world. In today’s world, five years is too long to go between drinks of new data, not to mention that five-year intervals translate into 10-year timelines before we can establish a trend. It’s high time we pick up the pace.
Michael_McDerment  Freshbooks  cloud_computing  census  statistics  rapid_change 
november 2015 by jerryking
Whirlpool CIO: The future of IoT demands a new IT paradigm
by Mary K. Pratt

Whirlpool CIO Mike Heim is using cutting-edge tech to reinvent the lowly laundromat, but first he had to reinvent how his IT team worked. Welcome to the future of IoT.....Clothespin technology allows people to use their smartphones to remotely check for available washers and dryers, pay with MasterCard or Visa rather than coins, add cycles remotely and receive notification when laundry cycles are done.

On the operator side, Clothespin enables equipment service providers to remotely change prices based on demand, time of day and other market factors; track machine utilization; identify machines requiring maintenance; and provide users with promotions and loyalty programs.

Developed in a five-day sprint last June, the project had Heim's tech people moving between e-payment processing and IT security and mobile app development and working with a variety of business functions and vendors.
Whirlpool  laundry_rooms  CIOs  laundromats  home_appliances  white_goods  Industrial_Internet  cloud_computing  mobile_applications  reinvention 
september 2015 by jerryking
Why the human cloud can do your work better than you can - The Globe and Mail
IVOR TOSSELL
Special to The Globe and Mail
Published Thursday, Nov. 27, 2014

Nav Dhunay is offering oil-wells-as-a-service.

PumpWell puts small remote-monitoring and control units next to pumpjacks, the iconic bobbing horse-heads that pump oil from wells. “That in itself is not disruptive or extremely exciting,” says Dhunay. “But it’s more than just an automation controller.” What sets PumpWell apart is what they’re really selling: people. Instead of just offering a technological tool that lets oil-well owners keep an eye on their pumps, PumpWell has hired a team of its own oil-production engineers, and it sells their time to small and mid-sized firms on a subscription basis. “We’re combining the outsourcing model of IT, and tying it into the oil and gas industry,” says Dhunay.....Dhunay is a start-up entrepreneur who found himself heading up PumpWell in Calgary after stints in Silicon Valley. As he explains it, the logic is simple: Labour costs are sky-high in the oil sector. A seasoned production engineer can run you upward of $200,000 a year, and then there’s the overhead of having him running around oil fields in a truck, checking on things.

PumpWell can use its remote networks to keep oil engineers out of the field, run analytics on monitoring data to promote preventative maintenance, and increase the number of pumps each engineer can monitor. The company’s top-tier plan offers to monitor a pump for $12,000 a year. Today, PumpWell looks after 600 wells and, Dhunay says, it’s revenue-positive. “Our industrial engineers can manage upward of 150 to 200 wells per person. Traditionally, production engineers are handling 30 to 40.”

It’s not the only company that’s using cloud technology to take outsourcing services into new realms. Across the country, in Cambridge, Ontario, a cybersecurity company is applying much the same model to an entirely different business. ESentire specializes in securing the networks of mid-sized companies with critical intellectual property, like financial services and legal firms.
SaaS  oil_industry  Outsourcing  remote_monitoring  cyber_security  small_business  SMEs  subscriptions  cloud_computing  top-tier 
july 2015 by jerryking
Amazon to Sell Predictions in Cloud Race Against Google and Microsoft - NYTimes.com
By QUENTIN HARDY APRIL 9, 2015

Amazon Web Services announced that it was selling to the public the same kind of software it uses to figure out what products Amazon puts in front of a shopper, when to stage a sale or who to target with an email offer.

The techniques, called machine learning, are applicable for technology development, finance, bioscience or pretty much anything else that is getting counted and stored online these days. In other words, almost everything.
Quentin_Hardy  Amazon  Google  machine_learning  cloud_computing  AWS  Microsoft  Azure  predictions  predictive_analytics  predictive_modeling  automated_reasoning 
april 2015 by jerryking
IBM to Invest $3 Billion in Sensor-Data Unit - WSJ
March 31, 2015 | WSJ | By DON CLARK. Can CBC get good at communicating the final product on behalf of clients of Pelmorex. So CBC considers supplying the communications platform?

IBM plans to invest $3 billion over four years on a new business helping customers gather and analyze the flood of data from sensor-equipped devices and smartphones.... IBM announced that it is forming an alliance with the Weather Company, which owns the Weather Channel and other information providers. The two companies plan jointly to exploit data about weather conditions to help businesses make better decisions....the centerpiece of IBM's new business unit is a collection of online software called IoT Foundation that runs on IBM’s existing cloud services and allows customers and partners to create new applications and enhance existing ones with real-time data and analysis....IBM is betting that correlating dissimilar kinds of data will yield the highest value. “It’s essential to federate information from multiple sources,” said Bob Picciano, IBM’s senior VP of analytics.... the Weather Channel serves up 700,000 weather forecasts a second. It already sells data to a range of customers in agriculture, transportation and other industries that rely on weather.

But the opportunities have expanded, Mr. Kenny said, as weather sensors installed in many more places have contributed to more timely, localized forecasts. The added detail helps farmers predict more precisely, for example, where hail could impact their fields, Mr. Kenny said.

The Weather Company is turning to IBM, he said, because of its software expertise and relationships with customers in many industries.
sensors  IBM  weather  massive_data_sets  data  data_driven  analytics  Industrial_Internet  smartphones  cloud_computing 
march 2015 by jerryking
Apple’s drive for world auto dominance spooks the industry - The Globe and Mail
GREG KEENAN, BRIAN MILNER AND OMAR EL AKKAD
The Globe and Mail
Published Friday, Mar. 20 2015,

Apple’s big advantage over traditional car makers is simple, yet hard to overcome, and it lies in the cloud.

The cloud consists of remote servers that store vast amounts of data and run applications, giving everyone on the planet with a connected device access to unlimited computing power essentially for free. It is also revolutionizing the way companies do business by instantly providing them with vast amounts of customer data. And it means Apple would not need to acquire car manufacturing capacity or build assembly and distribution networks in order to create chaos in the club.

It’s an advantage few traditional manufacturers, including auto makers, fully grasp, let alone have the ability to exploit.....“Apple thinks from the cloud out,” says Mr. McInerney, who would definitely line up for an Apple vehicle. At least then, he says, he would be assured of a better communications interface than the clunky one in his new upscale German model.

“If you’re an Apple or a Google, it allows you to use the same power to manage your supply chain that you use to manage your customers,” he says.

“That’s a revolution in thinking that allows you to identify all the cash-wait states [where money sits idle] and to collect a stunning amount of customer information in real time. Put the two together and you’re turning that information into cash at an accelerated rate. Car companies don’t think like that.”
automotive_industry  automobile  Apple  batteries  autonomous_vehicles  cloud_computing  connected_devices  layer_mastery  digital_first  data_coordination  incumbents  monetization  cash  customer_data  idle_funds  SMAC_stack  connected_cars 
march 2015 by jerryking
Box, Dropbox and Hightail Pivot to New Business Models - NYTimes.com
AUG. 24, 2014 | NYT | By QUENTIN HARDY.

how do you avoid free? Box is trying to cater to special data storage needs, like digital versions of X-rays for health care companies and other tasks specific to different kinds of customers. Hightail is trying to do something similar for customers like law firms. And Dropbox? It is trying to make sure that its consumer-minded service stays easier to use than what the big guys provide.
digital_storage  Box  Dropbox  Hightail  business_models  cloud_computing  free 
august 2014 by jerryking
Advice to Microsoft's Satya Nadella: Be More Brave - WSJ
By CHRISTOPHER MIMS CONNECT
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advice  Microsoft  Satya_Nadella  strategy  cloud_computing  Christopher_Mims 
june 2014 by jerryking
Embracing the cloud: How Microsoft is radically changing its vision - The Globe and Mail
OMAR EL AKKAD - TECHNOLOGY REPORTER

REDMOND, WASH. — The Globe and Mail

Published Saturday, Mar. 22 2014
Omar_el_Akkad  Microsoft  cloud_computing  strategy 
march 2014 by jerryking
Review of Space Monkey Peer-to-Peer Digital Storage System - WSJ.com
Dec. 10, 2013 | WSJ| By Katherine Boehret.

The $199 Space Monkey storage solution offers two ways to store files: Remote storage, which uses a peer-to-peer system, and local storage, which uses this one-terabyte hard drive, above, that plugs into a wireless router. Space Monkey
P2P  peer-to-peer  cloud_computing  digital_storage 
december 2013 by jerryking
Advertisers zeroing in on where, as well as who, you are
Apr. 04 2013 | The Globe and Mail | Susan Krashinsky.

The typical response rate for one of these campaigns is about 1 per cent. The location-specific campaign increased that by 400 per cent on average.

“There’s been a wholesale change in the amount …of data available and the tools available to actually understand it. It’s turning that data into knowledge that is the biggest task,” Mr. Okrucky said.

In an age where we transmit data from devices in our pockets many times a day, using information such as postal code profiles, housing statistics, and demographics by district may seem like an old-fashioned marketing tactic. And it is. But the processing of that information is changing rapidly: the ability to sort through massive data sets, to cross-reference them, and create detailed targets, has accelerated.

“It really gets to the cloud computing capability. We do programs with all these data sets very quickly. And some of the data sets can be absolutely massive,” said Phil Kaszuba, vice-president and general manager at DMTI.
Susan_Krashinsky  location  location_based_services  personalization  target_marketing  CDC  flu_outbreaks  massive_data_sets  advertising  data  databases  online_behaviour  behavioural_targeting  Aimia  LBMA  DMTI  specificity  response_rates  cloud_computing 
april 2013 by jerryking
Welcome to the thingternet
Nov 21st 2012 | The Economist from The World In 2013 print edition| Nick Valéry: Difference Engine columnist, The Economist
Industrial_Internet  cloud_computing 
january 2013 by jerryking
Dropbox: A nebulous future | The Economist
Dec 22nd 2012, 11:31 by A.R. | OXFORD

Dropbox dominates online file-sharing. It boast three times as many users as its closest direct rival, YouSendIt. (Its dominance is even more pronounced when it comes to the volume of data stored.) It eats up 20% of all bandwidth consumed globally by browser-based file-sharing services, against 1% for YouSendIt. Dropbox users save more than 1 billion files every day.

Most of them use the free version of the service. The company makes makes money by charging for extra storage....Dropbox relies on individuals and small firms, for whom its rudimentary security features are good enough; bigger businesses with sensitive information prefer more secure services like Box.net. The advent of competitors in the nebulous form of iCloud, Google’s Drive and Microsoft’s Skydrive, which come pre-installed on their respective makers' gadgets, does not seem to have dampened enthusiasm for Dropbox. Unlike iCloud, which boasted 190m users by October thanks to its deep integration with Apple's mobile devices, the service is "platform neutral"—ie, works across different devices and operating systems—and allows easy file-sharing, both useful traits in an increasingly connected world where few people hew devoutly to a single device-maker....A bigger long-term worry is the plummeting price of digital storage. With its vast scale, Amazon has driven down costs substantially for the likes of Dropbox, which leases server space from the e-commerce giant. But Google Drive already offers 100GB for $5 a month, half what Dropbox charges for the same amount of storage. And Google can advertise its cloud across its myriad online offerings. Dropbox's margins are only likely to get wispier in the future.
Dropbox  file-sharing  cloud_computing  Google_Drive  network_effects  digital_storage  good_enough 
december 2012 by jerryking
Murfie: Sending Your CDs to Cloud Heaven - WSJ.com
August 27, 2011 | WSJ |By KEVIN SINTUMUANG.
The Digital Life
Sending Your Discs to Cloud Heaven
What to do with the hundreds of CDs collecting dust in your attic? A new service can rip, store and sell them
music  cloud_computing  digital_life 
december 2012 by jerryking
Jeff Hawkins Develops a Brainy Big Data Company - NYTimes.com
November 28, 2012, 12:13 pmComment
Jeff Hawkins Develops a Brainy Big Data Company
By QUENTIN HARDY

Jeff Hawkins, who helped develop the technology in Palm, an early and successful mobile device, is a co-founder of Numenta, a predictive software company....Numenta’s product, called Grok, is a cloud-based service that works much the same way. Grok takes steady feeds of data from things like thermostats, Web clicks, or machinery. From initially observing the data flow, it begins making guesses about what will happen next. The more data, the more accurate the predictions become.
massive_data_sets  Grok  pattern_recognition  start_ups  streaming  aftermath  cloud_computing  predictions  predictive_analytics  Quentin_Hardy 
november 2012 by jerryking
H.P.’s Misstep Shows Risk in the Push for Big Ideas - NYTimes.com
November 21, 2012 | NYT | By QUENTIN HARDY.

The ill-fated marriage of the companies is a lesson for H.P. and other older technology giants as they throw billions at supposedly game-changing acquisitions, trying to gain a foothold in the future.

In that future, smartphones and tablets, connected to cloud-computing data centers, are the essential tools of work and play. Companies rent software over the air, rather than buying it with expensive maintenance contracts.

And vast streams of data are continually analyzed to find new patterns and make predictions about consumer behavior and product design. Autonomy, for instance, makes software that can analyze marketing patterns and advise a company on matters like where it should increase marketing resources.

These forces threaten older businesses, like H.P.’s traditional personal computer and data storage products. Other companies, like Oracle, Microsoft and Cisco, also face pressure. They are all trying to buy the future — and have the cash to do it..... But identifying the next big thing can be difficult, said Jeffrey Sonnenfeld, a professor of management at Yale University. Likely as not, he said, deals like the one for Autonomy have “maybe a 40 percent success, 60 percent failure rate.”

He added, “The odds are against you succeeding, but the odds are also worth taking.”

The real hazard, he said, is in the way companies describe these acquisitions as “natural, inevitable victories.” They should be seen, he said, as “an investment, like in research and development.”
Autonomy  big_bets  breakthroughs  cloud_computing  cultural_clash  failure  game_changers  HP  ideas  M&A  Meg_Whitman  mergers_&_acquisitions  mistakes  missteps  moonshots  Quentin_Hardy  risks  SaaS  subscriptions  success_rates 
november 2012 by jerryking
Taking One for the Country - NYTimes.com
By THOMAS L. FRIEDMAN
Published: June 30, 2012

"I found myself applauding for Chief Justice Roberts the same way I did for Al Gore when he gracefully bowed to the will of the Supreme Court in the 2000 election and the same way I do for those wounded warriors — and for the same reason: They each, in their own way, took one for the country.

To put it another way, Roberts undertook an act of statesmanship for the national good by being willing to anger his own “constituency” on a very big question. But he also did what judges should do: leave the big political questions to the politicians. The equivalent act of statesmanship on the part of our politicians now would be doing what Roberts deferred to them as their responsibility: decide the big, hard questions, with compromises, for the national good. Otherwise, we’re doomed to a tug of war on the deck of the Titanic, no matter what health care plan we have. "...Our newfound natural gas bounty can give us long-term access to cheap, cleaner energy and, combined with advances in robotics and software, is already bringing blue-collar manufacturing back to America. Web-enabled cellphones and tablets are creating vast new possibilities to bring high-quality, low-cost education to every community college and public school so people can afford to acquire the skills to learn 21st-century jobs. Cloud computing is giving anyone with a creative spark cheap, powerful tools to start a company with very little money. And dramatically low interest rates mean we can borrow to build new infrastructure — and make money.
Tom_Friedman  John_Roberts  U.S._Supreme_Court  judges  statesmanship  hydraulic_fracturing  natural_gas  cloud_computing  smartphones  robotics  software  interest_rates  infrastructure  automation  constituencies  low-interest  compromise  blue-collar  manufacturers  politicians  hard_questions  high-quality 
july 2012 by jerryking
New Rules for Bringing Innovations to Market
March 2004 | HBR | Bhaskar Chakravorti.

The more networked a market is, the harder it is for an innovation to take hold, writes Bhaskar Chakravorti, who leads Monitor Group's practice on strategies for growth and managing uncertainty through the application of game theory. Chakravorti argues that executives need to rethink the way they bring innovations to market, specifically by orchestrating behavior change across the market, so that a large number of players adopt their offerings and believe they are better off for having done so. He outlines a four-part framework for doing just that: The innovator must reason back from a target endgame, implementing only those strategies that maximize its chances of getting to its goal. It must complement power players, positioning its innovation as an enhancement to their products or services. The innovator must offer coordinated switching incentives to three core groups: the players that add to the innovation's benefits, the players that act as channels to adopters and the adopters themselves. And it must preserve flexibility in case its initial strategy fails.

Chakravorti uses Adobe's introduction of its Acrobat software as an example of an innovator that took into account other players in the network--and succeeded because of it. As more content became available in Acrobat format, more readers were motivated to download the program," he observes. "The flexibility in Acrobat's product structure and the segmentation in the market allowed the pricing elasticity that resulted in the software's widespread adoption."
HBR  innovation  networks  network_effects  rules_of_the_game  commercialization  monetization  product_launches  howto  growth  managing_uncertainty  cloud_computing  endgame  Adobe  uncertainty  switching_costs  jump-start  platforms  orchestration  ecosystems  big_bang  behaviours  behavioral_change  frameworks  sharing_economy  customer_adoption  thinking_backwards  new_categories  early_adopters  distribution_channels  work-back_schedules 
july 2012 by jerryking
Why Canada lags in cloud computing -
Why Canada lags in cloud computing
Rockel, Nick. The Globe and Mail [Toronto, Ont] 09 Feb 2012: B.15.
ProQuest  cloud_computing  Canada 
june 2012 by jerryking
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