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jerryking : value_extraction   7

Opinion | The United Kingdom Has Gone Mad - The New York Times
By Thomas L. Friedman
Opinion Columnist

April 2, 2019

What do the most effective leaders today have in common? They wake up every morning and ask themselves the same questions: “What world am I living in? What are the biggest trends in this world? And how do I educate my citizens about this world and align my policies so more of my people can get the best out of these trends and cushion the worst?”

So what world are we living in?

(1) We’re living in a world that is becoming so interconnected — thanks to digitization, the internet, broadband, mobile devices, the cloud and soon-to-be 5G wireless transmissions — that we are becoming interdependent to an unprecedented degree. In this world, growth increasingly depends on the ability of yourself, your community, your town, your factory, your school and your country to be connected to more and more of the flows of knowledge and investment — and not just rely on stocks of stuff........The key to creating economic value has been to acquire some proprietary knowledge stocks, aggressively protect those knowledge stocks and then efficiently extract the economic value from those knowledge stocks and deliver them to the market. The challenge in a more rapidly changing world is that knowledge stocks depreciate at an accelerating rate. In this kind of world, the key source of economic value shifts from stocks to flows......yet Britain is ruled today by a party that wants to disconnect from a connected world....
(2) Understand that in a world of simultaneous accelerations in technology and globalization, keeping your country as open as possible to as many flows as possible is advantageous for two reasons: You get all the change signals first and have to respond to them and you attract the most high-I.Q. risk-takers, who tend to be the people who start or advance new companies.....The best talent wants to go to the most open systems — open both to immigrants and trade — because that is where the most opportunities are. Britain is about to put up a big sign: GO AWAY.
(3) wise leaders also understand that all the big problems today are global problems, and they have only global solutions: climate change, trade rules, technology standards and preventing excesses and contagion in financial markets......small states/middle powers need to be part of a wider coalition like the European Union.
(4) the best leaders know a little history. Trump is fine with a world of competitive European nationalisms, not a strong European Union. So is Vladimir Putin. So, it seems, are the Brexiteers. How quickly they’ve all forgotten that the E.U. and NATO were built to prevent the very competitive nationalism that ran riot in Europe in the 20th century and brought us two world wars.
21st._century  accelerated_lifecycles  Brexit  EU  historical_amnesia  history  information_flows  interdependence  interconnections  middle-powers  open_borders  proprietary  questions  small_states  talent_flows  technical_standards  Tom_Friedman  United_Kingdom  value_extraction 
april 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
Lunch with the FT: Mariana Mazzucato - FT.com
August 14, 2015 12:07 pm
Lunch with the FT: Mariana Mazzucato
John Thornhill

* Mazzucato’s book The Entrepreneurial State

As Mazzucato explains it, the traditional way of framing the debate about wealth creation is to picture the private sector as a magnificent lion caged by the public sector. Remove the bars, and the lion roams and roars. In fact, she argues, private sector companies are rarely lions; far more often they are kittens. Managers tend to be more concerned with cutting costs, buying back their shares and maximising their share prices (and stock options) than they are in investing in research and development and boosting long-term growth.
“As soon as I started looking at these issues, I started realising how much language matters. If you just talk about the state as a facilitator, as a de-risker, as an incentiviser, as a fixer of market failures, it ends up structuring what you do,” she says. But the state plays a far more creative role, she insists, in terms of declaring grand missions (the US ambition to go to the moon, or the German goal of creating nuclear-free energy), and investing in the early-stage development of many industries, including semiconductors, the internet and fracking. “You always require the state to roar.”
... Some tech and pharmaceuticals companies are going to extravagant lengths to reduce their taxes, one of the ways in which they pay back the state. The more libertarian wing of Silicon Valley is even talking of secession from California so they can pay no tax at all. “Won’t it be nice when there’s the next tsunami and these guys call the coastguard,” she says....
One criticism of Mazzucato’s work is that she fetishises the public sector in much the same way that rightwing commentators idolise the private sector. She appears stung by the suggestion: “I’m from Italy, believe me, I don’t romanticise the state.” The challenge, she says, is to rebalance the relationship between the private sector, which is all too often overly financialised and parasitic, and the public sector, which is frequently unimaginative and fearful. “When you have a courageous, mission-oriented public sector, it affects not just investment but the relationships and the deals it does with the private sector,” she says. Europe’s left-wing parties could have run with this agenda. Instead, she says, they have “absolutely failed” to change the political discourse by obsessing about value extraction rather than value creation, by focusing more on taxing big business than fostering innovation.

====================================================
The Chinese get the state to do that risky and costly, research and the development to keep them ahead.

The US does the same, but just keeps quiet about it so it doesn’t spoil the narrative.
“The parts of the smart phone that make it smart—GPS, touch screens, the Internet—were advanced by the Defense Department. Tesla’s battery technologies and solar panels came out of a grant from the U.S. Department of Energy. Google’s search engine algorithm was boosted by a National Science Foundation innovation. Many innovative new drugs have come out of NIH research.!” http://time.com/4089171/mariana-mazzucato/
activism  books  breakthroughs  DARPA  de-risking  Department_of_Energy  early-stage  economists  fracking  free-riding  innovation  Mariana_Mazzucato  mission-driven  moonshots  NIH  NSF  private_sector  public_sector  semiconductors  Silicon_Valley  sovereign-risk  state-as-facilitator  value_creation  value_extraction  women 
august 2015 by jerryking
Tech Wealth and Ideas Are Heading Into News
October 20, 2013 |- NYTimes.com | By DAVID CARR

Silicon Valley and its various power brokers — some who had roles in putting the news business in harm’s way to begin with — are suddenly investing significant sums of money in preserving news capacity and quality. ... Next-generation news companies including Vice, Vox Media, BuzzFeed and Business Insider have all recently received significant investment. (In addition, Jeff Skoll, another eBay alum, backed Participant Media and now the TV channel Pivot, to make “socially relevant” films and television.)

The list goes on, but the trend is clear: quality news has become, if not sexy, suddenly attractive to smart digital money.....It does not take an M.B.A. to understand that the ability to capture consumers’ attention and move them around a platform, all the while extracting value, might come in handy in the media business. ITunes used cheap, uniformly priced content to animate the sales of devices like the iPod; Amazon used cheap devices like the Kindle to push lucrative content sales. EBay reduced the friction and suspicion between buyers and sellers of all kinds of goods. ...The willingness to answer bedeviling old questions in new ways does not ensure success, but it creates remarkable possibilities. “Both Jeff Bezos and Pierre Omidyar have a hacker’s ethos, a willingness to engage in lateral thinking to solve problems in a nonconventional way, to reject what has been taken for granted and MacGyver their way to solutions (aka mental_dexterity),” suggested Shane Snow, a founder of Contently, a marketplace for content creators.

Consider Amazon’s ability to lead consumers through a highly personalized array of choices.

“If you have a story that is read by a million people, that’s great, but how do you get those million people to read another story?” said Henry Blodget of Business Insider. “Amazon is extraordinary at customizing its site for every visitor. They do endless testing and understand stickiness and relevance in a way few media companies do.”

One of the secrets of Amazon (and Netflix) is that it never offered one site, but millions of customized sites. It is not hard to envision a carefully measured invitation at the bottom of a highly trafficked news article: “People who read this story are also reading ...” .
value_extraction  news  Silicon_Valley  moguls  entrepreneur  David_Carr  digital_media  Amazon  Second_Acts  disruption  Pierre_Omidyar  Jeff_Bezos  websites  personalization  Netflix  customization  testing  experimentation  growth_hacking  stickiness  relevance  newspapers  content  problem_solving  unconventional_thinking  smart_people  attention  Henry_Blodget  Contently  content_creators  power_brokers 
october 2013 by jerryking
Don’t expect BlackBerry’s patents to stay in Canada - The Globe and Mail
BARRIE McKENNA

OTTAWA — The Globe and Mail

Published Sunday, Sep. 29 2013

The way to extract real value from BlackBerry’s IP is to use the patents in cross-licensing deals between tech companies, allowing players to use each others’ technologies. Patents can also be used in litigation – either on offence to protect turf, or to defend against infringement by others.
Blackberry  cross-licensing  defensive_tactics  intangibles  intellectual_property  IP_retention  litigation  patents  patent_infringement  patent_litigation  portfolios  portfolio_management  property_rights  offensive_tactics  sellout_culture  value_extraction 
october 2013 by jerryking
Amazon Your Industry: Extracting Value from the Value Chain
January 1, 2000 | Strategy + Business Issue 18 | By Timothy
M. Laseter, Patrick W. Houston, Joshua L. Wright and Juliana Y. Park.
The inefficient, tradition-bound, $4 billion trade-book industry is
using the Internet to unlock an additional $2 billion-plus.
Amazon  books  hidebound  inefficiencies  publishing  value_chains  value_extraction 
november 2009 by jerryking
The Three Sexy Skills of Data Geeks : Dataspora Blog
Hal Varian, Google’s Chief Economist, was interviewed a few
months ago, and said the following in the McKinsey Quarterly:
“The sexy job in the next ten years will be statisticians… The ability
to take data—to be able to understand it, to process it, to extract
value from it, to visualize it, to communicate it—that’s going to be a
hugely important skill.” Put All Three Skills Together: Sexy. Thus with
the Age of Data upon us, those who can model, munge (data wrangling, sometimes referred to as data munging, is the process of transforming and mapping data from one "raw" data form into another format with the intent of making it more appropriate and valuable for a variety of downstream purposes such as analytics) , and visually
communicate data — call us statisticians or data geeks — are a hot
commodity.
analytics  data  data_scientists  data_wrangling  career_paths  Hal_Varian  Information_Rules  statistics  visualization  value_extraction 
july 2009 by jerryking

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