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jerryking : collective_intelligence   13

At BlackRock, a Wall Street Rock Star’s $5 Trillion Comeback - The New York Times
SEPT. 15, 2016 | NYT | By LANDON THOMAS Jr.

(1) Laurence Fink: “If you think you know everything about our business, you are kidding yourself,” he said. “The biggest question we have to answer is: ‘Are we developing the right leaders?’” “Are you,” he asked, “prepared to be one of those leaders?”

(2) BlackRock was thriving because of its focus on low-risk, low-cost funds and the all-seeing wonders of Aladdin. BlackRock sees the future of finance as being rules-based, data-driven, systematic investment styles such as exchange-traded funds, which track a variety of stock and bond indexes or adhere to a set of financial rules. Fink believes that his algorithmic driven style will, over time, grow faster than the costlier “active investing” model in which individuals, not algorithms, make stock, bond and asset allocation decisions.

Most money management firms highlight their investment returns first, and risk controls second. BlackRock has taken a reverse approach: It believes that risk analysis, such as gauging how a security will trade if interest rates go up or down, improves investment results.

(3) BlackRock, along with central banks, sovereign wealth funds — have become the new arbiters of "flow.“ It is not about the flow of securities anymore, it is about the flow of information and indications of interest.”

(4) Asset Liability and Debt and Derivatives Investment Network (Aladdin), is BlackRock's big data-mining, risk-mitigation platform/framework. Aladdin is a network of code, trades, chat, algorithms and predictive models that on any given day can highlight vulnerabilities and opportunities connected to the trillions that BlackRock firm tracks — including the portion which belongs to outside firms that pay BlackRock a fee to have access to the platform. Aladdin stress-tests how securities will respond to certain situations (e.g. a sudden rise in interest rates or what happens in the event of a political surprise, like Donald J. Trump being elected president.)

In San Francisco, a team of equity analysts deploys data analysis to study the language that CEOs use during an earnings call. Unusually bearish this quarter, compared with last? If so, maybe the stock is a sell. “We have more information than anyone,” Mr. Fink said.
systematic_approaches  ETFs  Wall_Street  BlackRock  Laurence_Fink  asset_management  traders  complacency  future  finance  Aladdin  risk-management  financiers  financial_services  central_banks  money_management  information_flows  volatility  economic_downturn  liquidity  bonds  platforms  frameworks  stress-tests  monitoring  CEOs  succession  risk-analysis  leadership  order_management_system  sovereign_wealth_funds  market_intelligence  intentionality  data_mining  collective_intelligence  risk-mitigation  rules-based  risks  asset_values  scaling  scenario-planning  databases 
september 2016 by jerryking
If you want a good PR person, hire a soccer player -
AUGUST 26, 2014 | PRConsultants Group| By Margaret Nathan, Partner at Strategic Communication, Inc.

"...the best PR people are always the ones who know the playing field cold, the ones who know where all the bodies are buried and who can feel the space and timing of a great opportunity or a good story, who know the best people in the company from whom to get information and how not to hide, but to explain.

As Critchley writes, “Soccer is a collective game, a team game, and everyone has to play the part which has been assigned to them, which means they have to understand it spatially, positionally and intelligently and make it effective.” A good PR person or public relations firm operation is the same.

I frequently get asked from clients why isn’t my acquisition, my product, my company front-page news. Well now I can explain it. If you have the “product” and your company runs the “right formations to control the space” and your competitors are in awe, you probably have a great story.

Good PR people should be able to help your company run the “right formations” and structure the right timing and space around the company and then always be able to provide three to four options for the company to run with. While baseball is also a team sport, it is primarily driven by individual achievement. “The team who performs the most individual tasks well will probably win the game,” according to Brooks. But the question is can they win it for the long haul.

“Once we acknowledge that, in life, we are playing soccer, not baseball, a few things become clear. First, awareness of the landscape of reality is the highest form of wisdom. It’s not raw computational power that matters most; it’s having a sensitive attunement to the widest environment, feeling where the flow of events is going. Genius is in practice perceiving more than the conscious reasoning,” said Brooks.

So I would encourage everyone who is hiring a Public Relations firm to ask yourselves are these guys’ soccer players or a baseball team? If the PR firm or the PR person is not constantly re-evaluating your business, introducing you to new ideas and people to drive your business then go find someone who will. Go find a soccer player.
spatial_awareness  soccer  public_relations  wisdom  collective_intelligence  sophisticated  competitive_landscape  generating_strategic_options  professional_service_firms  long-haul  Simon_Critchley 
september 2016 by jerryking
Where Value Lives in a Networked World
Mohanbir SawhneyDeval Parikh
FROM THE JANUARY 2001 ISSUE

In recent years, it seems as though the only constant in business has been upheaval...Business has become so complex that trying to predict what lies ahead is futile. Plotting strategy is a fool’s game. The best you can do is become as flexible and hope you’ll be able to ride out the disruption.
There’s some truth in that view…..We have studied the upheavals and concluded that many of them have a common root--the nature of intelligence in networks. The digitization of information, combined with advances in computing and communications, has fundamentally changed how all networks operate, human as well as technological, and that change is having profound consequences for the way work is done and value is created throughout the economy. Network intelligence is the Rosetta Stone. Being able to decipher it will shape the future of business.

Four Strategies for Profiting from Intelligence Migration

Arbitrage.
Because intelligence can be located anywhere on a network, there are often opportunities for moving particular types of intelligence to new regions or countries where the cost of maintaining the intelligence is lower. Such an arbitrage strategy is particularly useful for people-intensive services that can be delivered over a network, because labor costs tend to vary dramatically across geographies.

Aggregation.
As intelligence decouples, companies have the opportunity to combine formerly isolated pools of dedicated infrastructure intelligence into a large pool of shared infrastructure that can be provided over a network.

Rewiring.
The mobilization of intelligence allows organizations to more tightly coordinate processes with many participants. In essence, this strategy involves creating an information network that all participants connect to and establishing an information exchange standard that allows them to communicate.

Reassembly.
Another new kind of intermediary creates value by aggregating, reorganizing, and configuring disparate pieces of intelligence into coherent, personalized packages for customers.
arbitrage  centralization  collective_intelligence  decentralization  digitalization  disruption  flexibility  HBR  networks  network_power  resilience  taxonomy  turbulence  turmoil  uncertainty  value_creation 
november 2015 by jerryking
BlackRock’s Aladdin: genie not included - FT.com
July 11, 2014 | FT |By Tracy Alloway.
(Risk management technology is no substitute for investor instinct)
Aladdin is BlackRock's current, state of the art risk and order management system. Aladdin has been described as BlackRock’s “central nervous system” but what is less well-known is that the operating platform also acts as the brains at some 60 other financial firms which altogether handle a whopping $14tn worth of assets.

At banks, investment managers and trading outfits around the world, Aladdin’s genie is hard at work analysing portfolios, running stress test scenarios and generally employing BlackRock’s “collective intelligence” to perform a whole host of financial functions....the increasingly significant role that Aladdin and its 25m lines of code plays in the wider financial markets has, with notable exceptions, largely been overlooked....The role of these formulas or programs tends to go unnoticed but they often play two key roles in the build-ups to financial crises. Firstly they give investors and traders a potentially dangerous sense of control over risk. Second, as their use proliferates, they also encourage a build-up of “one-way” bets as investors increasingly come to rely on similar data and analysis.
BlackRock  Laurence_Fink  asset_management  pretense_of_knowledge  long-term  risk-management  Wall_Street  collective_intelligence  systemic_risks  order_management_system  algorithms  platforms  Aladdin  stress-tests  overconfidence  overlooked  false_confidence  scenario-planning  financial_crises 
july 2014 by jerryking
The New Einsteins Will Be Scientists Who Share: Networked Science - WSJ.com
OCTOBER 29, 2011 | WSJ | By MICHAEL NIELSEN

The New Einsteins Will Be Scientists Who Share
From cancer to cosmology, researchers could race ahead by working together—online and in the open
collaboration  problem_solving  scientists  networks  collective_intelligence  science_&_technology 
october 2011 by jerryking
The Slow Hunch: How Innovation is Created Through Group Intelligence
By Dan Rowinski / June 9, 2011

Chance favors the connected mind. That is what author Steven B. Johnson says to those looking for the next big idea. Johnson is the author of "Where Ideas Come From" a book that looks at the macro trends on how innovation evolves.

Ideas are rarely created through a "eureka" moment....Johnson believes that ideas are born of a "slow hunch" that are made possible through periods of technological innovation and evolution. If you are creating a startup, where do you get your ideas from?

Innovation is often made possible by the evolution of networked possibilities....
The Hive Mind & Collective Intelligence

"It is just this idea that if you diversify and have an electric range of interests and you are constantly getting interesting stories about things that you do not know that much about or are adjacent to your particular field of expertise you are much more likely to come up with innovative ideas," Johnson told ReadWriteWeb.

The same approach would work well for developers and innovators working on the next technology breakthrough. Startup founders should take step back from their project and ask what type of similar projects have been undertaken in a completely different field and see if those lessons can be applied to their project.

"The trick is to look at something different and borrow ideas. It is like saying 'this worked for that field, if we put it here what would it do in this new context?'" Johnson said.

In today's world, the ability to branch out of your field of expertise has been made much easier through social media. You can follow what is happening in your niche through a specifically created Twitter list, but it is also beneficial to create lists of people working in different sectors as well.

"The important thing is that this is not some kind of hive-mind wisdom of the crowds, collective intelligence network smarts," Johnson said. "The unit is still the individual or the small group. There are some examples of group intelligence. This is an example instead of taking individuals in small groups and making them smarter by connecting them to a wider range of influences."
adjacencies  collective_intelligence  innovation  grouping  Steven_Johnson  start_ups  chance  probabilities  idea_generation  ideas  Communicating_&_Connecting  cross-pollination  cross-disciplinary  interconnections  learning_journeys  connected_learning  wisdom_of_crowds 
october 2011 by jerryking
The next big tech revolution? The global brain - The Globe and Mail
Sep. 22, 2011 | Globe and Mail | CHRYSTIA FREELAND.

Mr. Milner, in contrast, almost perfectly represents a technology elite with a global reference: He lives in Moscow, recently bought a home in Silicon Valley, and addressed the Ukrainian conference by video link from Singapore. From that vantage point, the most pressing issue in the world today isn’t recession and political paralysis in the West, or even the rapid development and political transformation in emerging markets, it is the technology revolution that, in his view, is only getting started.

Here are some of the changes he sees as most significant:

The Internet revolution is the fastest economic change humans have experienced, and it is accelerating. Two billion people are online today, he noted; he predicts that number will double over the next decade.

The Internet is not just about connecting people, it is also about connecting machines, a phenomenon he dubbed “the Internet of things.” Five billion devices are connected today, he said; by 2020, he thinks more than 20 billion will be.

More information is being created than ever before. He asserted that as much information was created every 48 hours in 2010 as was created between the dawn of time and 2003. In 10 years, that much data will be generated every 60 minutes.

The result is the dominance of Internet platforms relative to traditional media, he said: “The largest newspaper in the United States is only reaching 1 per cent of the population ... That compares to Internet media, which is used by 25 per cent of the population daily and growing.”

Internet businesses are much more efficient than brick-and-mortar companies. This was one of his most striking observations, and a clue to the paradox of how we find ourselves simultaneously living in a time of what he views as unprecedented technological innovation but also high unemployment in the developed West. As Mr. Milner said: “Big Internet companies on average are capable of generating revenue of $1-million per employee, and that compares to 10 to 20 per cent of that which is normally generated by traditional offline businesses of comparable size.” As an illustration, he cited Facebook, where, he said, each single engineer supports one million users.

Finally – and Mr. Milner admitted this was “a bit of a futuristic picture” – he predicted “the emergence of the global brain, which consists of all the humans connected to each other and to the machine and interacting in a very unique and profound way, creating an intelligence that does not belong to any single human being or computer.”
Chrystia_Freeland  Yuri_Milner  e-commerce  Industrial_Internet  tech-utopianism  networks  connected_devices  platforms  collective_intelligence  efficiencies  inefficiencies 
october 2011 by jerryking
Leading in the Indian Ocean - WSJ.com
* MARCH 10, 2011 Thomas Mahnken and Andrew Shearer:.leading in
the Indian Ocean
Australia and the U.S. need to organize allies to maintain freedom of
navigation as regional rivalries heat up.

As Robert Kaplan recently highlighted in his book "Monsoon," economic
ties are burgeoning across and around the Indian Ocean
region....Beijing's challenge to freedom of navigation in the
Indo-Pacific means that the U.S. and Australia should be thinking about
bringing together their proliferating bilateral maritime security links
in a collective arrangement, one that could pool resources to mount
rapid responses to natural disasters and other contingencies and work
together to keep Asia's vital sea lanes open.
maritime  U.S._Navy  Australia  collective_intelligence  disasters  China_rising  rivalries  Robert_Kaplan  Indian_Ocean  Indo_Pacific  bilateral  rapid-response  natural_calamities 
march 2011 by jerryking
Chance Favors the Connected Mind
September 27, 2010 | Jam Side Down | by Marty Manley. This
weekend, the Wall Street Journal published a very insightful article by
Steve Johnson, author of Everything Bad Is Good for You, which argues
that video games and TV shows are actually making us smarter and The
Ghost Map, which chronicles the heroic efforts of John Snow to prove
that London's terrifying 19th century cholera epidemics were water
borne, not airborne as widely believed.

The article is condensed from Johnson's forthcoming Where Good Ideas
Come From: The Natural History of Innovation, which describes the
conditions under which "ideas have sex" and multiply. He has also
released a YouTube video that is both a captivating summary and a
brilliant piece of media.
book_reviews  books  cholera  innovation  YouTube  Steven_Johnson  interconnections  ideas  idea_generation  luck  chance  information_spillover  ideaviruses  connected_learning  collective_intelligence  contingency  19th_century  virality 
october 2010 by jerryking
Unboxed - Yes, People Still Read, but Now It’s Social - NYTimes.com
June 18, 2010 | New York Times | By STEVEN JOHNSON, Nicholas
Carr's new book, “The Shallows,” argues that the compulsive skimming,
linking and multitasking of our screen reading is undermining the deep,
immersive focus that has defined book culture for centuries.
Distractions come with a heavy cost--studies show how multitasking harms
our concentration. But we must also measure what we gain from
multitasking....The problem with Mr. Carr’s model is its unquestioned
reverence for the slow contemplation of deep reading. For society to
advance as it has since Gutenberg, he argues, we need the quiet,
solitary space of the book. Yet many great ideas that have advanced
culture over the past centuries have emerged from a more connective
space, in the collision of different worldviews and sensibilities,
different metaphors and fields of expertise. (Gutenberg himself borrowed
his printing press from the screw presses of Rhineland vintners, as Mr.
Carr notes.)
cognitive_skills  collective_intelligence  collective_wisdom  Communicating_&_Connecting  connected_learning  contemplation  cross-disciplinary  deep_learning  discernment  distractions  focus  Johan_Gutenberg  Kindle  metaphors  multitasking  monotasking  Nicholas_Carr  reading  solitude  Steven_Johnson  sustained_inquiry  thinking  thinking_deliberatively  worldviews 
june 2010 by jerryking
The man who must keep Goldman growing
March 5 2008 | Fortune Magazine | By Bethany McLean, editor at
large. Lloyd Blankfein has a lot on his mind. The chief of Wall
Street's most successful investment bank has to outsmart treacherous
markets while balancing the firm's interests with those of its clients.
"Its range of operations gives Goldman unparalleled access to
information and ideas from around the world. "Goldman has more touch
points to more clients around the globe," says Jeff Harte, an analyst at
Sandler O'Neill. "It gives them more opportunities and better
collective intelligence.""
Goldman_Sachs  Lloyd_Blankfein  collective_intelligence  market_intelligence  informational_advantages  CEOs  unfair_advantages 
february 2010 by jerryking
Unboxed - Crowdsourcing Works, When It’s Focused - NYTimes.com
July 18, 2009 | new York Times | By STEVE LOHR. New research
suggests that open-innovation models succeed only when carefully
designed for a particular task and when the incentives are tailored to
attract the most effective collaborators. “There is this misconception
that you can sprinkle crowd wisdom on something and things will turn out
for the best,” said Thomas W. Malone, director of the Center for
Collective Intelligence at the Massachusetts Institute of Technology.
“That’s not true. It’s not magic.” Success requires that companies have
a culture open to outside ideas and a system for vetting and acting on
them.
Steve_Lohr  crowdsourcing  collective_intelligence  business_models  open-innovation  Netflix 
july 2009 by jerryking

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