Strategies for an ethical and sustainable planet.

My new book: The 80 minutes Sustainable Development for MBAs

2025-05-21T13:09:00.001+02:00

Title: The 80 minutes Sustainable Development for MBAs

About this Book

This book explores the critical topics of Sustainable Development, Sustainability, Ethics, and Compliance; often overlooked in traditional MBA education. It provides a practical perspective on why and how these topics should be integrated into business leadership, decision-making, and operations to address global challenges.
This book provides also, for each topic, several concrete cases from the business and governments programs.

Available soon at Bibliothèque Universitaire, Benelux

Lithium, the future environmental and human disaster?

2024-02-13T13:13:00.001+01:00

Brine extracting.

The production and recycling of electric car batteries poses major environmental and social problems: Lithium batteries are being used for vehicles but also for their computer and electronic equipment. This increases the pressure on this rare metal lithium, a material that has become one of the most strategic on the planet.

Lithium - also known as white gold - often comes from Latin America. Its production, very greedy in water, damages the ecosystems and the survival of the local populations in areas where the drought is already problematic.

Lithium is among the elements identified as particularly sensitive by the World Bank: "whose demand is expected to increase by 1,000%, driven by the production of electric vehicles. If the risk of depletion is lower, it is the conditions of its extraction in arid regions, and in particular the high demand for water, which are worrying."

Extraction of lithium

Bolivia has the world's largest reserves of lithium, 40% of the planet's stock. It has invested 1 billion euros, considering that lithium will be to the electric car what oil is to the gas car. The authorities want to make Bolivia the Saudi Arabia Lithium. They want to make Bolivia the world's largest producer of lithium and set world market prices.

Lithium extraction technology generates fewer emissions than mining. But the use of large evaporation pools 20-30 km long. Tons of brine pumped into the desert water tables are transported in huge ponds. It is this brine that contains lithium. The evaporation of pond water is a natural process that lasts twelve months. We obtain salts rich in minerals of all kinds.

In the largest lithium mine in Bolivia, the environmental consequences of this practice could be considerable. In this already 'desertic' region, the consumption of water necessary for the production of lithium is gigantic. The surrounding rivers are already dry. Quinoa, the main agricultural resource of the dozens of Indian communities of farmers living of quinoa, raising llamas and sometimes tourism, in the region, are the most affected by this drought.
For a long time, tourism was the only wealth of the Bolivia Indian communities, but landscapes are today transformed to make way for the exploitation of lithium, essential for mobile phones, computers and batteries of electric cars.

In Argentina and Chile where Lithium extraction is already taking place on a large scale, social development expectations have not been met. Chilean , US multinationals, Chinese companies claimed to use 100 liters of water per second, when in fact they used 200!

the result: the area was dry, salinization was much more important due to the greater evaporation. The Indian communities were severely impacted. And most of the profit is taken by production companies.

Ultimately, do we have to destroy other ecosystems of the planet in order to reduce CO2 emissions using electric vehicles? Aren't we solving a problem by creating an even more devastating one?

Can't companies develop new technologies and processes to make sure that this metal extraction not only supports their own business, but also protects the local ecosystems AND helps a sustainable development of the local communities?

Amsterdam, the world's first "doughnut" city !!

2023-12-12T09:46:00.000+01:00

From its humble beginnings as a 13th-century fishing village, Amsterdam is today a major hub for business, tourism and culture and has a long and well-respected tradition in the arts. Amsterdam is a metropolis of more than 1 million inhabitants (excluding the suburbs) with nearly 9 million international tourists visited the city in 2019.
This post is about Amsterdam city plan to implement, as first city in the world, the "doughnut" model.

"In Amsterdam we want to ensure a good life for everyone, within the Earth’s natural boundaries. That can be done in a circular city in which we adopt a smarter approach to scarce raw materials, produce and consume differently." said the city mayor.

Amsterdam is rethinking what economic success looks like. In doing so, it’s not looking at traditional financial metrics. Instead, the city will be the first in the world to officially adopt the “doughnut” model of economics.

The model, developed by UK Oxford economist Kate Raworth, is a simple way to illustrate a complex goal.

The inner ring of the doughnut represents minimum standards of living, based on the UN’s Sustainable Development Goals. This entails the basic essentials everyone needs to thrive, from food and clean water to gender equality and adequate housing. According to the model, no one should fall into the hole in the center of the doughnut, which would mean they don’t have enough to afford basic needs.

The outer ring of the doughnut represents the ecological limits of the planet, from biodiversity loss and air pollution to climate breakdown.

Amsterdam wants to stay between the inner and outer rings, in the green space.

The overarching question is: How can Amsterdam city be home to thriving people, in a thriving place, while respecting the well-being of all people and the health of the whole planet?

The following is a key step that differentiates all other models:

Accepting the individual responsibility in what is produced, what is manufactured and what is consumed throughout the whole value chain, everywhere in the world, from global to local !

This approach also looks at the impacts the city has beyond its own borders, from the air pollution that’s created in China when Chinese factories make goods that are exported to the Netherlands, or the social impact of the cocoa grown in Africa—sometimes with child labor or slavery—that’s imported in huge quantities through the Port of Amsterdam. It stretches the boundaries of responsibility of the city.

The City of Amsterdam is focusing on 3 value chains:
Food and organic waste streams
Ambition 1: Short food chains provide a robust sustainable food system
Ambition 2: Healthy and sustainable food for the people of Amsterdam
Ambition 3: High-quality processing of organic waste streams

Consumer goods
Ambition 1: The City sets the right example by reducing its consumption
Ambition 2: Using what we have more sparingly
Ambition 3: Amsterdam makes the most of discarded products

Built environment
Ambition 1: The transition to circular development requires a joint effort
Ambition 2: The City sets the right example by formulating circular criteria
Ambition 3: A circular approach to the existing city

More details to come, will follow up this project.

Sources:

- Amsterdam city website

- Kate Raworth blog

Increase in GDP by up to 20 percent by connecting schools to the internet

2021-07-03T14:21:00.000+02:00

An interesting study report by the Economist Intelligence Unit (EIU) report sponsored by Ericsson has found that nations with low broadband connectivity have the potential to realize an increase in GDP by up to 20 percent by connecting schools to the internet.

A well-educated workforce is more likely to be innovative and foster ground-breaking ideas, leading to economic development and job creation. EIU analysis shows that for every 10 percent increase in school connectivity in a country, GDP per capita could increase by 1.1 percent.

In the context of the West African country of Niger, the report finds that improvements in school connectivity to Finnish levels could increase GDP per capita by almost 20 percent - from USD 550 per person in the baseline, to USD 660 per person by 2025.

The report focuses on four key actions to make a change:

Collaboration is key: A holistic, public/private partnership strategy is needed to coordinate efforts with stakeholders to overcome barriers to school connectivity.
Accessibility and affordability: Building infrastructure to enable access to the internet is a starting point. Quality of connection and cost are important factors as well.
Embedding internet and digital tools into education: Once access to school connectivity is achieved, it must be embedded into the curriculum. Teachers must be trained to integrate technology into everyday learning.
Protecting children online: School connectivity provides opportunities for children. Additional steps must be taken to ensure healthy and protected online learning environments. Internet usage must be properly managed to ensure safe and secure use..

The report also recommends that public, private and NGO sector leaders around the world can make a dramatic impact towards bridging the digital divide by joining forces to make internet connectivity a global reality for school children of all ages.

As a result, Ericsson today appeals to these players to get behind the efforts of Giga (a school connectivity initiative founded by UNICEF and the International Telecommunication Union) through actions such as: funding, data sharing, technological expertise and reimagining sustainable business models for connectivity. Ericsson has committed its efforts through a three-year partnership with UNICEF to help map the current school connectivity gap across 35 countries.

will games disrupt traditional Marketing?

2020-06-01T12:50:00.003+02:00

The lock down due to the pandemic has created a new phenomenon in social media & gaming industry: The real life moves into the virtual world!

The game "Animal crossing, new Horizons", was opportunistically launched on March 2020 in the middle of the world lock down. It became very quickly a world best selling game.

It's an easy game where there is no fighting and no winners. Where you can buy a trip that will take you to a deserted island where you can get away with all your creativity, charm and the freedom to work hard to create the life you want on the island. The island offers creativity, freedom and lots of charm. A harmonious new life simply! Gather up different resources and see what you can do with them. Some things are clearly practical while others are more aesthetic. Make new friends, enjoy the seasons and explore the island! Create and shape your character and home in the game.

Experience the new system for creating things! Collect materials to create everything from tools to furniture.

Online gamers discovered quickly the possibilities offered by the game and the lock down at home provided the time to be creative.

As examples, lovers who couldn't meet in real life due to the forced separation and the lock down, they met in the game, and they even get married and organized a wedding party with guests et al,

The Hong Kong activists who couldn't demonstrate in real life in the city, they did that inside the game. They organized the demonstrations in the game. see below screenshot.

In France, the yellow vests activists (with characters wearing yellow vests) met in the game to continue their demonstrations from inside the game. below screenshot.

Museums were totally rebuild in the game and any online gamer can join and have a 'guided' virtual visit of the museum. see screenshot.

Even TV shows are reconstructed with the host in his traditional suit and guests who are interviewed, a guest telling jokes, a band playing live music and everyone is at home holding the game controllers. Music singles are also planned to be launched from inside the game. see screenshot

It's whole second reality world that is becoming a virtual one.

The popular game Fortnite with its 300 million subscribers is also one of the largest meeting place. They have started organizing concert inside the game, The concert of rapper Travis scott has gathered more than 12 million fans in one single place !! 12 millions consumers in the same place.

Movie trailers are being projected inside the games.

The question for marketers: where are the targets hanging out? Well, the answer is becoming clearer: Meet them in the "real" virtual world !

Book Review: Measuring What Counts... (GDP?)

2019-12-03T19:11:00.002+01:00

In 2009, a group of economists led by Nobel laureate Joseph E. Stiglitz, French economist Jean-Paul Fitoussi, and Nobel laureate Amartya Sen sparked a global conversation about GDP and a major movement among scholars, policy makers, and activists to change the way we measure our economies.

Book cover – November 19, 2019

For economists, metrics are the means to measure performance. “If we measure the wrong thing, we will do the wrong thing,”

“The world is facing three existential crises: a climate crisis, an inequality crisis and a crisis in democracy. Yet the accepted ways by which we measure economic performance give absolutely no hint that we might be facing a problem.” says Stiglitz.

GDP gives no hint of environmental degradation or resource depletion, nor inequality, middle-class suffering, or lower standards of living.

“If growth is not sustainable because we are destroying the environment and using up scarce natural resources our statistics should warn us,” he says. “It is clear that something is fundamentally wrong with the way we assess economic performance and social performance.”

The new book, Measuring What Counts: The Global Movement for Well-Being, cowritten with French economists Jean-Paul Fitoussi and Martine Durand, provides a blueprint for how countries can use more appropriate metrics that account for details such as sustainability and how people feel about their lives.

This book provides an accessible overview of the last decade’s global movement, sparked by the original critique of GDP, and proposes a new “dashboard” of metrics to assess a society’s health, including measures of inequality and economic vulnerability, whether growth is environmentally sustainable, and how people feel about their lives. Essential reading for our time, it also serves as a guide for policy makers and others on how to use these new tools to fundamentally change the way we measure our lives—and to plot a radically new path forward.

"If we want to put people first, we have to know what matters to them, what improves their well-being, and how we can supply more of whatever that is."—Joseph E. Stiglitz

Moonshot, the World Bank plan for building an inclusive digital future across Africa

2019-09-03T19:37:00.000+02:00

In 2019, global internet adoption has surpassed 50 per cent of the world’s population.

According to ITU, the strongest growth of the percentage of population using the Internet was reported in Africa, where it increased from 2.1 per cent in 2005 to 24.4 per cent in 2018.
According to Digital 2019 Report overview from January 2019, Africa has a population over 1.3 billion with 43 per cent living in urban areas; over one billion mobile users representing a mobile penetration of 80 per cent; and Africa has over 216 million Internet users which represents only 16 per cent of the African population. And more than half of urban African adults owned Internet-capable devices (McKinsey Global Institute 2013).

There is a need for a moonshot!!

The World Bank has launched 'Moonshot Africa', an ambitious initiative to connect individuals, firms, and governments in Africa to boost broadband penetration between 2021-2030.
The World Bank estimates large investment needs: about 20 billion US Dollars would be needed to double connectivity by 2021 in Africa and Middle East, and about 51 billion US Dollars would be needed to achieve Universal Access to broadband by 2030 in Africa and Middle East.

Doubling connectivity by 2021 and expanding coverage by 2030 requires more than infrastructure investment, it requires a renewed focus on securing enabling policy frameworks and investment in digital skills and content.

Will Moonshot Africa create jobs on a continent where job creation is needed for Africa’s working-age population projected to rise by 70% in the next twenty years?

A recent paper by Jonas Hjort and Jonas Poulsen, “The Arrival of Fast Internet and Employment in Africa,” published in the American Economic Review in March 2019, gives technology optimists reason for hope. Using household survey data from 12 African countries with a combined population of roughly half a billion people, the authors document a large positive effect on employment.

There will still be concerns about a disruptive effect of technology (robots and algorithms replacing human labor) -when increasing digital transformation in a continent that needs jobs creation-, despite economists studies. But Africa cannot stay behind any longer.

Digital transformation will certainly create opportunities for Africa to grow its economy, create jobs, and transform people’s lives. With the aim to digitally connect every individual, business and government in Africa the “moonshot” will help countries accelerate progress, inclusion, bring high-speed connectivity to all, and lay the foundations for a digital economy.

An ecosystem approach beyond broadband deployment
Some have suggested that the new initiative should go beyond broadband connectivity to also cover “e-government , Fintech, investment in human capital and digital literacy, innovation-friendly policies that foster entrepreneurship.This digital transformation requires an ecosystem approach.

An impactful digital transformation must be inclusive
Others, have called for a digital transformation agenda prioritizing digital inclusion, including with a focus on women. If implemented with the appropriate policies and business incentives, a perspective on inclusion could help “mitigate the possible negative effects of the digital transformation.

Sustainable development
I would add that all investment should take into account impacts on environment and climate already in the beginning.
Africa must get the latest energy-efficient innovations and technologies to create a sustainable Africa that will support mitigate climate change effects on the planet.

In September 2019 at the UN General Assembly in New York, The Broadband Commission for Sustainable Development will release its report together with the report of the Moonshot Working group, we hope to have a good idea about the plans, ambitions and most of all the commitments of the donors.

Sources:

Aadhaar: India’s massive digital inclusion project

2019-06-22T09:07:00.002+02:00

Public advertisement

India is the second largest country in the world in terms of population. India has also a large number of villages; more than 600.000 villages with poor transport infrastructure making movement of goods and people extremely difficult.

The idea of a universal electronic ID was proposed by the Indian Department of Information Technology in 2006. Immediately, an organization was given capital and resources to implement a large-scale program with the objective to include all Indian residents in a single ID system housed in an electronic repository.

They called it: Aadhaar, which means base or foundation in Hindi language.

India’s program to provide a unique identity number for every resident was created; the largest biometric identification program in the world. Launched in 2008, the program has created biometric identities for over one billion people. The program also aims to achieve social inclusion and more efficient public and private service delivery.

Aadhaar has also started to be used for several public purposes, such as digitizing government subsidy flows (government-to-person payments); financial services; recording attendance for government employees to reduce 'absenteeism'; and issuance of passports and voter identity cards. The impact of a strong digital identity scheme affects banks, payments, security, compliance and financial inclusion

How does it work?
Indian residents can apply for an Aadhaar number by submitting their proof of identity, proof of address and registering their biometric (fingerprints and iris scan) information.

What's in it for banks?
Money transfer is widely used through traditional brokers and biometric capabilities are turned on in India, so when someone wants to initiate a money transfer through an agent, they can identify and verify themselves using their biometric fingerprint, without showing any paper or plastic documents.
And nowadays, people are spending more time online or on mobile whether they’re on social media, they’re shopping, or even paying their bills and transferring money.

A great inclusion example for public governance

Aadhaar is a great inclusion example of how a government-mandated program could work at scale to create positive impact and create sustainable development.
The impact of a strong digital identity scheme affects banks, payments, security, compliance and financial inclusion -- and Aadhaar's is already seeing results.

Although the value of this project is obvious in terms of digital inclusion, still macroeconomic studies need to be engaged in order to quantify the real economic value of such an effort, and its GDP impact on India's economy.

Finally, recently Aadhaar leadership initiated discussions with public institutions in African and Asian countries in order to support and replicate such a great inclusion project.

Aadhaar organization, website: https://uidai.gov.in/

Universal Basic Income pilot results from Finland and India

2019-04-14T18:37:00.000+02:00

India Sikkim state landscape

In a previous post, I was introducing the Basic Income concept together with few operating and announced pilots. I was also questioning whether we can find a link between the Basic Income and the United Nations Sustainable Development Goals.

One of the possible link is the 'new' transient nature of poverty. Because of the increased global and local climate risks. Several studies of economists prove that poverty is transient in nature, i.e., individuals move in and out of poverty (Dercon and Shapiro 2007).
Therefore, the idea of a Basic Income is interesting to get the poor from their poverty and, given the transient nature of poverty, a Basic Income could provide insurance against economic shocks in many poorer countries. Policymakers should take into account the transient nature of poverty with including a much larger share of the population.

Finland pilot: self-perceived well-being improved, during the first year, no effects on employment.

In the same previous post, I presented two pilots: the Kenya pilot with preliminary results that GiveDirectly, a New York-based nonprofit has initiated in a rural village in Western Kenya, in October 2016, and the pilot launch in Finland. Just a a reminder, in January 2017, 2000 Finnish unemployed people received their first cash transfer of 560 euros, which they will continue to receive each month, until 31 December 2018. They were randomly selected from 25 to 58 years to participate in a study to assess the impact of universal basic income. During the evaluation of the basic income experiment they study the effects of the basic income on the employment status, income and well-being of the participants. The results are preliminary, and it is not yet possible to draw any firm conclusions regarding the effects of the basic income experiment.

Preliminary results of the Finland pilot: the recipients of a basic income perceived their well-being as being better than did the control group. 55% of the recipients of a basic income and 46% of the control group perceived their state of health as good or very good. 17% of the recipients of a basic income and 25% of the control group experienced quite a high degree or a very high degree of stress.
The recipients of a basic income had less stress symptoms as well as less difficulties to concentrate and less health problems than the control group. They were also more confident in their future and in their ability to influence societal issues’, says a lead researcher at Kela.

India Sikkim state is on the verge of becoming the first place on Earth implementing a basic income

Sikkim, the second smallest state in India, has grown a reputation, over the years, for environmental consciousness, ethnical diversity and tourism. It is also the home of one of the most educated people on Earth, with a 98% literacy rate.

The Sikkim Democratic Front (SDF), the democratically elected party governing the state since 1994, has written basic income into its manifesto for the 2019 Assembly elections, and aims to have it implemented by 2022.This initiative is not intended as a pilot test, but as an actual implementation.

As for financing the basic income scheme, SDF officials are considering surplus energy generation revenue (from hydropower) and redirecting costs from welfare programs which cease to be relevant.

Germany
A pilot is being prepared in Germany in 2019

Interesting projects to follow...

Sources

Finland pilot
https://www.kela.fi/web/en/news-archive/-/asset_publisher/lN08GY2nIrZo/content/preliminary-results-of-the-basic-income-experiment-self-perceived-wellbeing-improved-during-the-first-year-no-effects-on-employment

Kela, the Social Insurance Institution of Finland, is a government agency that provides basic economic security for everyone living in Finland.

https://basicincome.org/

Are electric vehicles really good for the planet?

2018-11-30T18:18:00.001+01:00

Source: https://exponentialroadmap.org/report/

The electric car does not produce CO2 or atmospheric pollutants. It offers many benefits, especially in the cities.

Should we all run on electricity?

Is electric car good for the planet?

The electric car is powered solely by electricity. Its engine is powered by batteries, that can be recharged at home or via a special terminal (in the street, parking, gas stations).

But how are we sure that electric vehicles are good for the planet? is it only because they use electricity instead of fossil-fuel? Vehicles with lower tailpipe emissions are perceived as cleaner. However, does it make sense to look only to tailpipe emissions? What about the emissions during production of the specific components and their appropriate end-of-life treatment processes.

How Sustainability experts compare the environmental performance of different vehicle technologies?
Therefore, in Sustainability we talk about the complete life cycle of the vehicle that should be included in order to assess the true environmental performance.

The environmental impacts of different fuels and vehicle technologies are evaluated with the Life Cycle Assessment (LCA) methodology. LCA is a standardized methodology.
The life cycle assessment considers the full life of a product system and is not only limited to the production and usage of the fuel or electricity. It includes the extraction of raw materials, the manufacturing of components, the assembly, the use stage and the end-of-life treatment.

Electric vehicles have advantages: No CO2 emissions or air pollutants. Reduced use of fossil fuels (diesel and gasoline). Silent. Economic. Low maintenance.
And they have one disadvantage: the batteries !

The production and recycling of electric car batteries poses major environmental and social problems: Lithium batteries are being used for vehicles but also for their computer and electronic equipment. This increases the pressure on this rare metal lithium, a material that has become one of the most strategic on the planet.

Lithium - also known as white gold - often comes from Latin America. Its production, very greedy in water, damages the ecosystems and the survival of the local populations in areas where the drought is already problematic.

Lithium is among the elements identified as particularly sensitive by the World Bank: "whose demand is expected to increase by 1,000%, driven by the production of electric vehicles. If the risk of depletion is lower, it is the conditions of its extraction in arid regions, and in particular the high demand for water, which are worrying."

Extraction of lithium: the future environmental & human disaster

Bolivia has the world's largest reserves of lithium, 40% of the planet's stock. It has invested 1 billion euros, considering that lithium will be to the electric car what oil is to the gas car. The authorities want to make Bolivia the Saudi Arabia Lithium. They want to make Bolivia the world's largest producer of lithium and set world market prices.

In the largest lithium mine in Bolivia, the environmental consequences of this practice could be considerable. In this already desertic region, the consumption of water necessary for the production of lithium is gigantic. The surrounding rivers are already dry. Quinoa, the main agricultural resource of the dozens of Indian communities of farmers living of quinoa, raising llamas and sometimes tourism, in the region, are the most affected by this drought.

In Argentina and Chile where Lithium extraction is already taking place on a large scale, social development expectations have not been met. Chilean company, including US multinationals, Chinese claimed to use 100 liters of water per second, when in fact the company used 200!

the result: the area was dry, salinization was much more important due to the greater evaporation. The Indian communities were severly impacted. And most of the profit is taken by production companies.

For a long time, tourism was the only wealth of the Bolivia Indian communities, but landscapes are today transformed to make way for the exploitation of lithium, metal essential for mobile phones, computers and batteries of electric cars. Under the salt desert.

So finally, if you holistically apply LCA, would you easily conclude that electric cars are good for the planet & people?

Prevent spread of epidemics in the world, using ICT

2018-09-24T09:08:00.000+02:00

Source: Report's proposed governance model led by international organizations

The UnitedNations Sustainable Development Goals (SDGs) will shape the world agenda for at least the next 12 years. Governments, private sector, and the civil society adopted the 17 global goals to ensure prosperity for all as part of a new sustainable development agenda.

The idea that suggests that businesses are here to create value for their shareholders only, at the expense of the society, is gradually becoming obsolete. This tremendous awareness created by the agenda mentioned above is setting a trend and is forcing strategists to look at their market with both eyes.
Because of this “Mobility Age” we’re in, no other industry than ICT is better positioned to enable the achievement of the global goals.

Representing Ericsson group, I had the opportunity to join an international cross-functional team of experts in the Working Group on Epidemic Preparedness-Preventing the Spread of Epidemics using ICT, which was established by the Broadband Commission for Sustainable Development. The work group was chaired and coordinated by Korea Telecom group. The objective of this international effort was to develop a proposal that addresses the challenge of preventing the spread of epidemics in the world using ICT and present it at the UN general assembly meeting in September 2018 in New York.

This report has been developed through an iterative and collaborative process drawing on expertise from the members of the Broadband Commission Working Group. The coordination of experts and the development of the content were provided under the supervision of Korea Telecom group. In addition, critical contributions were made by work group members from the World Bank Group, the Pan American Health Organization (PAHO), the International Telecommunication Union (ITU), GSMA, Ericsson, health experts and scientists. The Working Group met online or offline on a quarterly basis, reviewed material, exchanged insightful ideas and discussed the strategic trajectory of the report.

Infectious diseases and epidemics outbreak have followed the history of human beings for ages, from the “Plague of Athens”, the first recorded infectious disease outbreak to modern times epidemics such as Ebola and MERS. Growing international exchanges, increase in population and urbanization, intensification of global climate and environmental changes, and inadequate systems of disease prevention and control are the leading causes of severe epidemics in modern society. An epidemic outbreak could cause the loss of many lives and have a devastating economic impact estimated of 60 billion US dollars loss per year.

Mobile industry

Mobile technology has experienced a rapid technical development, increasing network coverage, and an exponential increase of cell phones user rates all over the world. According to Q2/2018 Ericsson MobilityReport, there are around 5.5 billion subscribers globally.

Mobile networks have brought voice and internet services to billions of people around over the last 25 years. At the current trajectory, mobile broadband will provide network coverage to around 95% of the world’s population by 2022.

Mobile industry has a great potential to deliver life-saving information even in the most remote and resource poor areas. Additionally, it offers an effective contribution to public health initiatives in support of achieving the health outcomes related to the Sustainable Development Goals (SDGs) while being economical, effective, and sustainable.

Big data availability

The explosion of data from different sources; mobile network, IT services is a great opportunity to address this challenge. Different type of data could be used in the fight against epidemics for analytics and/or simulation: genetic data, mobile network’s Call Data record (CDR), roaming data, Cell phone mobility, Social media data, Location-based information data, and you name it.

Various technologies exist to collect, analyze, and report various epidemics-related data. Using different sources of data is important to create an accurate view of the epidemic situation. The simultaneous collection of CDRs, roaming data, IoT data, location-based data and social media data will provide the Analytics platforms with enough information to produce accurate reports, that could help governments and organizations to take the right decisions.

The report proposes three important recommendations:

Regulation for Safe Personal Data Utilization: Currently, many countries around the globe have privacy protection laws in place. However, this should not lead to the loss of opportunities to prevent the spread of epidemics in an early manner.
Establishment of epidemics data sharing/monitoring system: Data sharing and utilization among nations around the world is essential to effectively fight epidemics.
Expansion of global governance: There is a need for global governance to be jointly led by international organizations of various fields, such as UN, ITU, and WHO. international organizations can include the establishment of epidemics-related regulations and policy guidelines that governments around the world can refer to and the promotion of the private-public-international community participation to build an integrated system.

You are encouraged to comment, suggest and keep the dialog vivid on this important topic that will positively impact us all.

Note: this blog has been published simultaneously in the Ericsson Technology for good blog

What experts say...

2018-04-20T13:52:00.002+02:00

Joseph E. Stiglitz, a Nobel laureate in economics, is University Professor at Columbia University and Chief Economist at the Roosevelt Institute.
Read what he has to say about trade war, technological leadership, AI, 5G:

"Today’s trade conflict reveals the extent to which America has lost its dominant global position. When a poor, developing China started increasing its trade with the West a quarter-century ago, few imagined that it would now be the world’s industrial giant. China has already surpassed the US in manufacturing output, savings, trade, and even GDP when measured in terms of purchasing power parity.

Even more frightening to many in the advanced countries is the real possibility that, beyond catching up rapidly in its technological competence, China could actually lead in one of the key industries of the future: Artificial Intelligence. AI is based on big data, and the availability of data is fundamentally a political matter that implicates issues such as privacy, transparency, security, and the rules that frame economic competition.

The EU, for its part, seems highly concerned with protecting data privacy, whereas China does not. Unfortunately, that could give China a large advantage in developing AI.

And advantages in AI will extend well beyond the technology sector, potentially to almost every sector of the economy. Clearly, there needs to be a global agreement to set standards for developing and deploying AI and related technologies. Europeans should not have to compromise their genuinely held concerns about privacy just to promote trade, which is simply a means (sometimes) to achieving higher living standards.

In the years ahead, we are going to have to figure out how to create a “fair” global trading regime among countries with fundamentally different economic systems, histories, cultures, and societal preferences."

Source:- https://www.project-syndicate.org/commentary/trump-unnecessary-trade-war-by-joseph-e--stiglitz-2018-04

Will 5G unleash a "digital" cold war ?

2018-04-12T15:51:00.002+02:00

5G logo

We are in an era where apps, artificial intelligence and connected objects are entering, disrupting and revolutionizing sectors as diverse as transport, energy, health, finance or construction. Mastering mobile networks technology is becoming crucial.
It is not involving the telecom industry alone, but all industries are impacted.

This is why China has made 5G one of its economic and strategic priorities. 5G is one of the pillars of Made in China 2025 plan (plan that I wrote about recently, you can click on the link to go to the corresponding post). It aims to make China a world reference in terms of innovation and new technologies, while it has long been seen as a low-cost country simply copying more or less foreign products. For China, 5G is part of the essential technological foundations that will allow the emergence of economic champions. The goal is to be the first to deploy 5G technology throughout its territory, while being a leader in the field of patents, standards, design and manufacturing of these high-speed networks; knowing that 5G technology is designed to connect objects from different industries.

Higher investment
China has worked hard in the 5G. According to a forecast from the Ministry of Industry and Information Technology, China's cumulative investment in 5G will reach by 2025, 214 billion US dollars!

Of course, Chinese telecom equipment manufacturers are among the main beneficiaries.

For the United States, China's ambitions in 5G pose a serious threat to the US economy.
The 5G race is not just a technological battle!! Both China and USA believe that the one who wins will have a decisive advantage to take the world economic leadership in the longer term.

So if China is heavily investing in this technology -which is, by the way, totally legitimate and fair-, what are the other developed countries doing? What are the plans from Europe, Japan, USA?

We haven't heard of any concrete, elaborated plan, rather than few "shy" & unclear initiatives here and there.

Or is the only response is a "digital" cold war; a trade war by taxing products ??

What is the "Made in China 2025" plan ?

2018-04-07T19:24:00.000+02:00

China, which has already surpassed Japan as Asia's leading exporter of high-tech products in 2014, is now looking to take the lead from the United States and Germany; With competitive multi-national companies in high value-added products.

The Made in China 2025 plan draws direct inspiration from Germany's "Industry 4.0" plan and is designed to elevate China from "world factory" to "big industrial power", mastering research, innovation and high value-added production.

This "Made in China 2025" redefines all of China's industrial priorities. China wants to be at the forefront of the new industrial revolution linked to digital integration. As the efficiency and quality of Chinese producers are highly uneven, and multiple challenges need to be overcome in a short amount of time, China wants to avoid being squeezed by newly emerging low-cost producers and wants more effectively to cooperate and to compete with advanced industrialized economies.

The Made in China 2025 has clear goals, tools, and sector focus. Its guiding principles are to have manufacturing be innovation-driven, emphasize quality over quantity, achieve green development, optimize the structure of Chinese industry, and nurture human talent.

The plan highlights 10 priority sectors:

New advanced information technology;
Automated machine tools & robotics;
Aerospace and aeronautical equipment;
Maritime equipment and high-tech shipping;
Modern rail transport equipment;
New-energy vehicles and equipment;
Power equipment;
Agricultural equipment;
New materials;
Biopharma and advanced medical products.

It focuses on the entire manufacturing process and not just innovation.The plan also specifies focus on the countries that together make up the Silk Road initiative.

Multi-national companies will most probably face new challenges with this plan.
A clear goal is to make Chinese companies more competitive across the board, to localize production of components and final products, and to have Chinese firms move up the value-added chain in production and innovation networks, and to achieve much greater international brand recognition.

So is there an impact on the world economy? Are there opportunities in this plan for non-Chinese multi-national companies?

post to be continued...

Sources:

http://english.gov.cn/2016special/madeinchina2025/

https://www.csis.org/analysis/made-china-2025

https://www.theguardian.com/world/

https://www.lesechos.fr/idees-debats/editos-analyses/

is a Universal Basic Income a good solution to end Poverty?

2017-10-06T13:01:00.000+02:00

Recently, the Universal Basic Income (UBI) has hit the news headlines around the world;either because few politicians included it in their political programs (France, Finland, India) or a number of influential people said that they support the idea (Tesla's Musk, Facebook's Zuckerberg or Virgin's Branson, Bill Gates to name a few). This has not left the economists aside, instead many economists from different economics schools delivered studies or views about the introduction of the Universal Basic Income in a country and its impact on labor, productivity, employment, poverty, etc...

Many known economist are backing the idea of UBI, among them Thomas Piketty and Nobel prize in Economics laureate Joseph Stieglitz. And not to forget one of the leading advocate of UBI Professor Philippe Van Parijs from the university of Louvain, Belgium, read his influential paper on the topic here.

So what is the Universal basic Income? here the official definition from basicincome.org:

"A basic income is a periodic cash payment unconditionally delivered to all, on an individual basis, without means-test or work requirement. That is, basic income has the following five characteristics:

Periodic: it is paid at regular intervals (for example every month), not as a one-off grant.
Cash payment: it is paid in an appropriate medium of exchange, allowing those who receive it to decide what they spend it on. It is not, therefore, paid either in kind (such as food or services) or in vouchers dedicated to a specific use.
Individual: it is paid on an individual basis—and not, for instance, to households.
Universal: it is paid to all, without means test.
Unconditional: it is paid without a requirement to work or to demonstrate willingness-to-work."

The idea of a basic income paid regularly is not new! It was proposed by Thomas Paine in 1796 who wanted it funded out tax on natural resources; and more recently through several initiatives.
The notion of a Negative Income Tax (NIT) first appears in the writings of the French economist Augustin Cournot (1838). It was briefly proposed by Milton Friedman (1962) as a way of trimming down the welfare state. But the UBI is fundamentally different than the NIT in its nature, because UBI has no means-tested scheme, and is paid to all.

Ongoing Pilots
Various pilots have already been rolled out in Kenya, India, the United States, Finland and France, among other countries. In developed countries the debate has been motivated by the prospective threat of technology replacing jobs, in developing countries this debate has more to do with finding a better way to tackle poverty.

I have selected below two totally different pilot purposes, in order to show how diverse an implementation of the UBI can be.

Finland pilot
In January 2017, 2000 Finnish unemployed people received their first cash transfer of 560 euros, which they will continue to receive each month, until 31 December 2018. They were randomly selected from 25 to 58 years to participate in a study to assess the impact of universal basic income on employment. If it is proved conclusive, the experiment could be extended to other categories of the population of that country of 5.5 million inhabitants.
After 3 years of recession with the fall of its flagship brand Nokia, Finland wanted to test new ideas that could provide a solution to decrease "poverty", social exclusion and provide incentives to support employment.

Looking forward to the results of the Finnish pilot...

Meanwhile, in a recent note (July 2017) entitled "Basic Income, what would it change? " The OECD has studied 4 countries ( France , Finland , Italy and the UK ) a universal income would be paid without means testing, to all working age individuals as well as minors.

According to the OECD, the introduction of a universal income in these 4 countries would lead to lower resources for early retirees and the unemployed as a result of a general increase in taxation.

"A basic income, which would be granted unconditionally to all working-age individuals and children and would be neutral to public finances , would not be an effective tool to reduce poverty", the Organization for Economic Cooperation and Development Economic statistics (OECD).
According to the scenario of the study, many low-income households, currently receiving aid, would be less well off. The poverty rate would increase in Finland, France and the United Kingdom, and would remain unchanged in Italy.

Kenya pilot*
GiveDirectly, a New York-based nonprofit has initiated a pilot program in a rural village in Western Kenya, this past October.
The cash transfers are made via mobile phone to the village residents. Each of the 95 participants received 2,280 shillings (about US$22) every month to save or spend however they see fit. Participants are all guaranteed this income for the next 12 years. Before GiveDirectly began the payments, many people in the village were living on less than US$0.75 a day; afterwards, no one was.

GiveDirectly’s analysis claimed that “for 45% of the village’s residents, the first month’s basic income payment was the largest amount of money they’d ever had.” The organization recently published an internal analysis of the pilot program, in a first attempt to process the results of the pilot. The results will set the tone for future programs and influence basic income policy making moving forward.

Some of their answers are below:

“I will be getting transfers that will enable me to pay medical bills for my condition and also buy other things. Since I went for checkup after receiving the transfer, my health situation has improved and I am able to go about my business without much stress.” Grace, 68.
“Since I have been able to improve on my business, I have gotten income to help me meet my daily expenses and also buy enough food for my children.” Diana, 33.
“The biggest difference in my daily life is that I can have 3 meals in a day.” Dorcus, 87.

The survey also asked how the money was spent.

“I spent the entire transfer received from GiveDirectly to purchase a fishing net and a floater.” Erick, 40.
“I spent the money received from GiveDirectly to buy clean water, food, soap, and used most of the amount to pay school fees.” Fredrick, 70.
“I spent most of the money I received from GiveDirectly on buying a goat since I want to buy livestock. I also bought food for my household.” Patrick, 38.
“I spent the money received from GiveDirectly to purchase food and kept most of the transfer as savings.” Milka, 44.

Do recipients of basic income stop working? Here are some of their responses:

“I feel I need to work harder and engage in other income-generating activities to get more money.” Samson, 70.
Yes, receiving the payments has changed my feeling towards work since I really want to finish my driving course and immediately look for employment.” Fredrick Odhiambo Awino, 28.
“I will not be working since I am old and sickly. I will just wait for the transfers.” Jael, 73.
“I will still continue with my small business and charcoal burning since the family needs the extra income to enable us to meet all our expenses without borrowing from relatives each time.” Norah, 30

Also, many of the beneficiaries mentioned that they could invest part of that money for a joint community project like building a well,...

So where the poverty starts?
Poverty is defined globally as those below a daily consumption level of $1.90 in 2015 purchasing power parity terms (**). About 11 percent of the global population, or 750 million people, live below this consumption level. Many Economists have argued that this definition tends to be narrow (Deeming and Gubhaju 2014, UNSD 2005, Pritchett 2003). This is an important point in the sense that this definition could blindside policymakers to potentially serious problems. Why?

Several studies of economists prove that poverty is transient in nature, i.e., individuals move in and out of poverty (Dercon and Shapiro 2007). Recent analysis on poverty in Africa by Beegle et al (2016) shows that in 20 out of 26 studies transient or temporary poverty is higher than chronic poverty (always poor).

Increased climate risks such as droughts and floods only increase the risk of individuals falling into poverty. How many people became -literally overnight- poor and fulfill the definition above after the recent hurricanes in the Caribbean?.
A large part of individuals in low-income-countries (LICs) is poor. For example, they are 87% in Democratic Republic of Congo or 74% in Zambia.
Therefore, the idea of a UBI is interesting to get the poor from their poverty and, given the transient nature of poverty, a UBI could provide insurance against economic shocks in many poorer countries.

Policymakers should not be blindsided following exactly the consumption level of $1.90 in PPP as defined by the world Bank. They should take into account the transient nature of poverty with including a much larger share of the population.

The UBI discussion is still new, hot, exciting and everyone has arguments depending on whether they are pros or cons. There are still way too many poor in the world!
______________________________________________________
Sources:
*basicincome.org
**WorldBank increase the Poverty line in 2015 to $1.90 instead of $1.25

Book review - Machine, Platform, Crowd: Harnessing Our Digital Future

2017-08-17T20:12:00.002+02:00

Authors: Andrew McAfee & Erik Brynjolfsson
Title: Machine, Platform, Crowd: Harnessing our digital future
Year: 2017

Andrew McAfee and Erik Brynjolfsson book is a spot-on exploration of three pillars unleashed by the digital revolution: Machine, Platform and Crowd.

1) The Machine learning is supplanting human minds (Artificial Intelligence, AI). Google’s AlphaGO AI is now able to defeat any human GO player (it took more than 3000 years for humans to understand and develop the GO knowledge !)- a development that occurred at a faster pace than almost every AI researcher had predicted - The authors see this as indicators of much larger structural economic changes to come.

2) Multi-sided Platforms owners (like Google, Amazon, Uber, Facebook, Alibaba) are becoming so powerful that they might disrupt a large number of established corporate -all industries included. They are collecting so much data from different market segments so they can develop the right models for selection, production and distribution of products and services.

And even more important the marginal cost of any additional digital product or service they would launch would be almost equal to zero!

3) The Crowd is increasingly augmenting and constantly on-line. One of the consequences is the decline in number of retail stores in the US market. From 2005 to 2015 the number of indoor shopping malls declined by 20 percent. 2007 was the first year in 50 that no indoor shopping mall was opened.

These 3 trends will combine the advances of Artificial Intelligence and machine learning, with the growth of interconnected digital networks (Mobile Internet and Internet Of Things).

Shift from Products to Platforms, a new pattern

The largest taxi service owns no vehicles (Uber). The biggest hotelier has no property (Airbnb). The most comprehensive retailer holds no inventory (Alibaba) and the most valuable “media” company creates some content but not much (Facebook).

Attributes of Successful Platforms

They all take advantage of the technological advances of GPS, mobile and cloud.
Successful platforms are customer-centric.
Smart API's Open up the platforms to a broad range of contributors and contributions, enabling platforms to be at the heart of any transaction from any type.
Platforms are a way for companies to create marketplaces that allow both sides of the transaction to flourish.
Platforms must ensure that standards are high, and also attract different sets of participants, producers on one side and consumers(customers) on the other side.

Jobs & Productivity growth: the "Great Decoupling"

Productivity growth has been decoupled from wages because of "concentration" of wealth in the hand of few people/companies. Andrew called it: the Great Decoupling.

Questions from the book
The book ends every chapter with an interesting question. Here are selected ones:

Which key decisions or operations, if any, would you consider turning over entirely to artificial intelligence systems?
What would happen if your competitors start applying machine learning?
In your innovation and prototyping work, how are you taking advantage of the new technologies for making things?
Looking at the existing tasks and processes in your job or organisation, what do you see as the ideal division of work between humans and machines?
What are the most important digital platforms in your industry today? What do you think they will be in three years?
Does it make more sense for you to try to build your own platform, or to participate in someone else’s?
What’s your strategy for cooperating or competing with a platform that brings network effects and revenue management capabilities to your industry?
Are you confident that you can continue to differentiate your offerings as platforms spread? If so, why? What are your sustainable sources of differentiation?
How and how often do you look outside your group of identified internal and external experts for help with your challenges and opportunities?

Conclusion

Robots, robots, Artificial Intelligence and even more robots.
The book is to my opinion a bit of a repetition of the last book the second machine age.
The authors brought up the same examples from Google, Airbnb, Amazon, Facebook, etc...and even Alibaba...

So what's new in this book? The core message and probably the most important conclusion of the book is that we are underestimating the pace of technologically driven economic change - and that these changes will concentrate advantage amongst an ever narrowing segment of companies and individuals.
Clearly, the authors are surprised by the faster pace of machine learning, faster than anyone has predicted.

The book is in any case a wake-up call that make executives, business leaders or future startups think about their model.

The authors do not dare to make any humble assertion about impact on jobs (loss) other than menting economic change. Is it because there's still a lot of uncertainty? [...]. It's just starting...

I am disappointed that the authors do not provide a playbook or not even a direction on how to use these great technological advances to advance society! Not a single word about Sustainable Development, about the UN Sustainable Development Goals or positive impacts.
All they had to say is: " the technology is here, and we can make whatever we want with it ..."

Finally, Machine, Platform, Crowd is a book that should be read and discussed by executives in order to understand the ongoing change and decide on the strategy to apply in their own company/industry; and scholars and academics to get the discussions going and maybe be able to influence the course of business discussions towards a more Sustainable, Societal Business Practice.

Is China disrupting Europe, US & Japan industrial leadership?

2017-05-08T16:43:00.001+02:00

image from Foxconn manufacturing site

China’s economic miracle is directly attributable to its manufacturing industry. Approximately 100 million people are employed in manufacturing in China (in the U.S., the number is around 12 million), and the sector accounts for almost 36 percent of China’s Gross Domestic Product(GDP).

Despite the huge challenges, a large number of manufacturers in China are planning to transform their production processes using robotics and automation at an unprecedented scale.
Do they really have a choice? Human labor in China is no longer as cheap as it once was, especially compared with labor in rival manufacturing hubs that are quickly growing in Asia. In Vietnam, Thailand, and Indonesia, factory wages can be less than a third of what they are in the urban centers of China.
So the solution for China, many manufacturers -and government officials- believe, is to replace human workers with machines.

Almost a quarter of the world’s products are made in China today. If China can use robots and other advanced technologies to retool productions that never before automated, that might turn the country, now the world’s sweatshop, into a hub of high-tech innovation.

But how this would affect the millions of Chinese factories workers?

But this change will challenge U.S., European and Japanese industrial companies not used to competing with Chinese firms in the high-end segments of their markets.
In other words, China may soon be known less for cheap Christmas toys and more for high-end medical equipment, luxury cars and jet engines.

Growth has moved elsewhere...Where will you invest then?

2017-04-22T21:49:00.000+02:00

By 2025, China will be home to more large companies than either the United States or Europe. It is expected that nearly 50% of the world’s large companies—defined as those with revenue of $1 billion or more—to be headquartered in emerging markets.

Image from Hubble telescope

New emerging cities
Nearly 50% of global GDP growth between 2010 and 2025 will come from 440 cities in emerging markets. 95% of them small and medium-size cities that many may not even have heard of and couldn’t point to on a map;

Who has heard of Hsinchu, in northern Taiwan?
Brazil’s Santa Catarina state, halfway between São Paulo and the Uruguayan border?
Or Tianjin, a city that lies around 120 kilometers southeast of Beijing?
In 2010, it is estimated that the GDP of Tianjin was around $130 billion, making it around the same size as Stockholm, the capital of Sweden. By 2025, it is estimated that the GDP of Tianjin will be around $625 billion—approximately that of all of Sweden.
Lagos, economic capital of Nigeria, is predicted to be one of the 10 most populous cities globally. Nigeria's population is set to rocket to 397 million by 2050.

Countries are becoming more urbanized
By 2025, emerging economies will grow 75% faster than developed nations and will account for more than 50% of the world's economy. 440 cities in emerging markets will account for more than 50% global GDP growth and more than 50% of urban population (2.5 billion people) will live in Asian cities. 46 of the top 200 cities in the world will be in China.

And this is going to happen in 6 years from now!
The gravity center of the world will change its coordinates by then.

Source: McKinsey & Company report on new disruptive forces

4th industrial revolution: AI, driverless vehicles, robots; what impact?

2017-03-27T20:18:00.000+02:00

Manufacturing site

The intriguing and insidious intrusion of robots (note that robot is a piece of hardware and/or software that execute repetitive tasks!) in our daily lives is one of the mark of the ongoing 4th industrial revolution.

New professions related to the ongoing digital transformation will appear, but how many and most importantly at what pace? If factories turn day and night without workers, will machines finance the national social protection system? From where will governments collect their revenues?
Are we moving from a "labor" income to "capital" income economy? What are the consequences on the national economies?

The revolution in artificial intelligence is only just beginning and will probably be
costly in jobs. The economists community is clearly divided. Automation has become a general concern over the future of manufacturing and the global economy as a whole. Many fear that the economic well-beings of vast populations are at risk in the coming years. A report from Deloitte indicated that 35% of jobs will be in jeopardy over the next 20 years alone.

Uber self-driving taxis are already driving in Tempe, Arizona (one recently crashed!) and autonomous trucks are being tested on German motorways; what will become of the millions of truck, bus, metro, train, taxi and truck drivers? Aircraft engine manufacturer Rolls-Royce has announced a program which aims to sail by 2020 totally automatic boats, without crew and captain.
We are even starting the discussion around pilot-less airplanes that can save billions of dollars for the airlines companies.

Supermarkets equipped with sensors and optical readers will replace cashiers. Consumer goods are ordered online and can be delivered by standalone vehicles. Already in Amazon's warehouses, the storage and shipping of goods are fully automated. Even the cashier is redundant in the newly launched AmazonGo store in Seattle.

Automation will certainly affect the job market, a recent report from Deloitte in partnership with Oxford University, is suggesting that 35% of jobs were at risk over the next 20 years.
Apple and Samsung supplier Foxconn has reportedly replaced 60,000 factory workers with robots. iPhone maker replaced more than half of its workforce with robots since iPhone 6 launch.This Deloitte report states that " About a quarter of jobs in the United Kingdom are threatened by automation over the next two decades, including more than two million jobs in the retail trade, one and a half million in transport and storage. Secure data technology called Blockchain could eventually destroy thousands of jobs in banks, law firms and notaries.

But for many economists, these widespread productivity gains, lower transport costs, are expected to create new wealth, new industries and new jobs. In the preceding industrial revolutions (electricity, computers, the Internet), new jobs have replaced old ones, but the transition took place over several decades.

There is simply no evidence at the moment that the current industrial revolution will be any different.

Is this pattern of creative destruction theorized by Joseph Schumpeter?

Robots, Artificial intelligence (AI) are likely to disrupt a large number of industries very quickly without allowing society time to adapt to changes. Will the speedy global capitalism allow time for vocational training to adapt to this new situation? It is to be feared that the fourth industrial revolution destroys more jobs than it creates. It is not sure that drivers, handlers or licensed workers in China or India are rapidly transforming into digital specialists.

To be continued...

Join the conversation!

What type of leadership is required to succeed in the new era, created by the digital transformation of the global economy?

2017-03-23T08:15:00.000+01:00

Thousands of books have been written about leadership and leaders, and many theories have been
developed in the fields of management and psychology. To mention one, Austrian-born American management consultant, educator, and author Peter Drucker stated that “management does things right; leadership does the right things.”

What type of leadership is required to succeed in this new business world, created by the Networked Society, and the ongoing digital transformation of the global economy.? This society will see new market spaces, where cross-industry companies will compete. Because of its openness, its technology based on mobility, cloud and performing networks, because of globalization, free trade and capital movement; the Networked Society will transform and reshape businesses and industries.

So, what leadership and strategy playbook should executives and strategists use?

The competition and the customers have become unpredictable and will be even more so in the future. It will be hard for companies to keep a strong position and defend it for extended periods of time. It means that competitive advantages will no longer be possible to sustain. It also means that companies will have to review their strategies and portfolios, and start building new competitive advantages more often than ‘once a year’.
Leaders in the Networked Society need to constantly start new strategic initiatives. They should care less about market segmentation – because the borders between industries will be blurred – and focus more on the jobs-to-be-done (the Clayton Christensen concept) that are out there for customers.

I think that executives in the Networked Society should have at least the following skills:

- Innovation in their DNA. Have the ability to successfully connect seemingly unrelated questions, problems, or ideas from different fields and areas.
- Ability to listen to the society, understand the issues and opportunities around sustainable development, and develop a strategy around them.
- A more customer-centric and less industry-bound view. Their methods for evaluating new business opportunities and their approach to innovation should be different.
- Ability to spark continuous change by building an agile organization that can support any new competitive advantage or any new strategic change without ‘pains’.
- A non-narcissistic approach, because leaders must be engaged in initiating questioning conversations in their organizations.
- Ability to make fast and right decisions instead of deliberations and/or consensus finding.
- Discovery-driven. Executives produce uncommon business ideas by scrutinizing common phenomena, particularly the behavior of potential customers.
- Executives in the Networked Society don’t delegate creative work, they do it themselves. Not only do they feel responsible for facilitating the innovation process, but also for coming up with strategic innovations.
- A track record for innovations. Innovation will be a core activity in the Networked Society.

So, are you an executive of the Networked Society era?

This blog has been posted on Ericsson Networked Society blog as well

Book Review - The Second Machine Age

2016-11-01T18:09:00.001+01:00

Authors: Andrew McAfee & Erik Brynjolfsson
Title: The Second Machine Age
Year: 2014
ISBN-13: 978-0393239355
ISBN-10: 0393239357

An interesting book. I recommend for students in Economics, MBA/MSC, or any Technology students. Written by two active academics, scientists and thinkers.

The book adds on to this exciting and intriguing topic of the digitization of economic activities, and its implication on our lives and our societies.
For anyone who wonders why we're seeing high income inequality and unemployment, this book will clear up a lot of mysteries.

The book is extensively footnoted with numerous references to the work of other academics and economists.

The idea

The idea that computers have now reached a maturity that big changes are expected to happen in the near future. We can expect higher productivity growth due to the Internet.
The authors brought known trends like Apple's Siri, Google's driverless car among others.
The authors seem to be hard-believers in Artificial Intelligence (AI) that is "threatening to replace human labor". They took a ride in Google’s self-driving car around the Mountain View campus and surrounding roads with no bump and no hard brake.

Google named the driving software Chauffeur.

Starting from chapter 7 through 11, the book moves the focus to the effects of technological advances on peoples lives and the study of economics. The authors make the case that income inequality is a consequence of the digitization of economic activities.

US-egocentricity
The authors have a lot to say about the US -like many US authors- and nothing to say about the rest world. They mention Facebook, Google, Amazon, probably the trendiest companies or the silicon valley based ones, but nothing about companies who have been/are innovating, making this technological transformation and change possible; companies like Finnish Telecom giant Nokia, or Swedish Telecom giant Ericsson with its 35 thousands patents & innovations in Mobile networks, making it possible for Google, Facebook and/or Amazon to enjoy Mobility, reaching by that, a new mobile customer segments.
Skype was not invented in silicon valley but in a suburb of Stockholm, capital of Sweden.

Beyond GDP
This chapter start with this amazing quote from Robert F. Kennedy “The Gross National Product does not include the beauty of our poetry or the intelligence of our public debate. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion. It measures everything, in short, except that which makes life worthwhile.”

interesting chapter on the utility of GDP as a metric for measuring welfare. Again, the music industry example was brought up to support the case.
The authors demonstrate, using other examples of the Over The Top services, that GDP is not capturing all productivity generated by these services. Of course this concern is not new, it has been raised before by many economists and non-economists. Economics Nobel prize laureate Joseph Stieglitz is one of them.

Artificial Intelligence, cultural differences and low-cost data workers
The book displays an awareness of how the "likes" of Google, Twitter, Facebook and Amazon already rely on low-cost workers’ smarts to power the companies’ seemingly miraculous information systems.

Computers do not wield the cultural affinities necessary to interpret this kind of cultural elements; but people do.

This is the hidden labor that enables companies like Google, Twitter, Amazon, Facebook to develop products around AI, machine learning, and big data.

Recommendations (chapters 12-14)
This chapter was divided in 3 chapters: recommendations for individuals, policy makers and long- term recommendations. The topic is so important and so complex topic that it requires at least a book in itself to cover it.
Strangely enough, all the recommendations chapters begin with quotes from non-US internationally known names such as Gandhi and Picasso, but it feels like the authors are (again!) speaking to US "individuals" and the US "policy makers.

is the American Dream really over?

2016-03-04T21:01:00.000+01:00

Picture borrowed from The Economist online Magazine

I was a teenager when I really ‘met’ America.

I started listening (and later playing) to American music. Bob Dylan, Billy Joel, Simon & Garfunkel, James Taylor, the Eagles were my heroes. In fact, I learned the English language thanks to Bob Dylan; and even before starting to have English courses at school. I remember our English teacher used to ask us to give her a sentence, and I always gave her a difficult sentence from Bob Dylan songs that she could not understand herself. It was funny! You do these kind of things when you’re a teenager, right? She was bit upset, but after few occasions, she started asking me which Bob Dylan sentence she’ll get in the class today.

My second meeting with America was just so sweet. It was my first summer holidays love, a beautiful girl from North Carolina that I met in Rome, Italy. She was staying with her parents in the same hotel and we met there. We were both 16. Looking back at it now, it seemed like t was coming out of a Fellini movie, except it was real and I was the main act.

Reading F. Scott Fitzgerald’s The great Gatsby and watching James Dean in East of Eden was revealing to me this open and free nation full of hope and opportunities for everyone. I was fascinated by all the 60’s/70’s movements in the US; Warhol, Lou Reed. the marches for civil rights and black rights, Martin Luther King, Malcom X. The protest singers Joan Baez, Bob Dylan. Woodstock festival ’69. The Manifestation against Vietnam war, the Bangladesh concert.

A vibrant nation and generations standing up for peace and love in the world.

Coming back to reality, what is left from all that?

The American dream is changing shape. Large disparities between rich and poor. Ethnic America is born. Racism against blacks is amazingly - despite all the sacrifices – a daily news. A new extension of racism is being exacerbated, and it's called islamphobia. Despite the active engagement and responsibility of the US administration and the CIA in several devastating wars, the current American generation does not seem to care. Too busy to follow the Kardashians on TV…

Today, you can become a star without having any talent. Look at the Kardashians! You can become a star because you have won the 2015 US contest for the best tattoo on your shoulder.
Generations of the reality show. Generations kept away from reality.

And it’s getting even worse now, look at the list of candidates running to become the next president of the US of A on November 2016, the most powerful man leading the most powerful nation on the planet.

Have you heard any Trump’s speech? I recommend you to listen to him for 5 minutes, I did it. What a disaster! His plan is simple, build a wall on the Mexican border, a neighbor country.

The other candidates are not better.

Am I only becoming emotional, nostalgic and overreacting when I remember that Woodstock generation?

Or is this really the end of the American dream?

I still naively request the Woodstock generation...

Lagos, African megacity with its challenges and sustainable solutions

2016-02-10T22:30:00.000+01:00

A recent report from the Population Reference Bureau predicts that by 2050 Nigeria will be one of the 10 most populous nations globally. The country's population is set to rocket to 397 million. With a current fertility rate of 5.5 children born per woman, the population of Nigeria is predicted to surpass that of the whole of Central Africa by 2050.

Photo from https://ng.boell.org

This population boom will impact the whole country, and particularly the already megacity of Lagos; with its 21 million people, Lagos is the third largest mega city in the world after Tokyo in Japan and Bombay in India. And Lagos is about to double in size by 2050!

Until 1975 Lagos was the capital of Lagos state, and until December 1991 it was the federal capital of Nigeria. Abuja has replaced Lagos as the federal state capital. However, Lagos remains the unofficial seat of many government agencies.
The city’s population is centered on Lagos Island, in Lagos Lagoon, on the Bight of Benin in the Gulf of Guinea.

Lagos means "lakes”, is a name given by the Portuguese settlers. Late 15th century Lagos Island had been settled by Yoruba fishermen and hunters, who called it Oko. The Portuguese first landed on Lagos Island in 1472; they established and developed a flourishing slave trade. The slave trade continued to grow until Lagos came under British control in 1861.
Lagos is the vibrant economic heart of Nigeria. It headquarters most of the commercial banks, financial institutions and corporates. It is also a major Information Communications and Telecommunications (ICT) hub; generating a significant portion of national GDP. The Port of Lagos is Nigeria's leading port and one of the largest and busiest in Africa.
Lagos has a tropical wet and dry climate that borders on a tropical monsoon climate.

I have once visited Lagos few years ago when I was on a short business trip. I was frustrated that the corporate policy at that time was not allowing me to go out for a stroll in town on my own, to get a genuine feeling of the city and meet with the city dwellers. This is usually what I like to do when I arrive at first in a new destination. I still keep the hope to come back one day on a private visit.

The expected population growth will put significant strain on a city already struggling to address its decrepit infrastructure and limited services. The multi-domains problems that the city encounters are huge. A small percentage of Lagos’s citizens have access to running water. Less than 50 percent of the city has sewage infrastructure. There is a need to solve problems such as frequent power cuts, gridlocked traffic and a shortage of housing and office space. There is a need to develop transportation infrastructure, sanitary waste disposal sites, electrical grids and different urban infrastructure, while at the same time considering the importance of conservation of heritage buildings and century-old colonial architecture.

The problems in the city are similar to all the other mega-cities; traffic jams make transportation inefficient, waste management is malfunctioning leaving tons of waste on the streets, water resources are overused or polluted and inadequate housing, as well as slums, are becoming reality for an increasing number of inhabitants. Crime is unfortunately endemic in Lagos. Property crimes, armed burglaries and car theft, are particularly high, fueled as much by large-scale unemployment as by wide disparities in income. Crime is obviously altering the image of this vibrant, optimistic megacity of Lagos’s.

Traffic congestion is common in Lagos and because of high crime rate, robberies may occur during the peak period. The quality of air is bad due to traffic and industries like in any other mega-city.

Flooding is a big problem in Lagos and the water rises often to the streets and house levels, particularly during the monsoon season.

The demand of water in Lagos is much bigger than the supply. Sources of pollution of the Lagos estuary include breweries, food processing industries, chemical industries, solid wastes from houses, sawmills and domestic sewage.

Photo: Flooded Street in Ikoyi, Reinvent Media

How to bridge the enormous physical and socio-economic gaps of the city? How to address most critical challenges like energy, water and transportation? How to respond to the huge employment demand from its young population?

Lagos would have to make the people a part of its economic success story and develop an inclusive strategy for growth, which would reduce social unrest because poverty and social exclusion is a major challenge today. Poverty rates range from 16% in Lagos.

Lagos needs to take advantage of one of its largest natural resource - water - to create sustainable living in its lagoon heart.
Architectural innovations such as the Makoko Floating School could reduce population density and create "a truly urbanized African water city.

Photo: from NLEworks.com/case/Makoko_flooding_School

Education is extremely important and is a key to Lagos’s success. Investing in educational public-private partnerships could finance "centers of excellence" providing technical and vocational skills whilst "easing the pressure on higher education."

In short, a gigantic work is expected! It’s a real test bed for smart city projects. It is a fantastic opportunity for city planners, urbanism experts, environmentalists, water specialists, energy experts and ICT professionals to take part in this endeavor and develop urban sustainable solutions in order to make Lagos a smart megacity.

ICT can play a major role in contributing with innovative, sustainable solutions to help solve all the current problems and the ones that are expected to pop-up, due to this dramatic change of the city.
Big data, cloud-based services, and IOT (Internet Of Things) services that intelligently provide real-time inputs will adequately provide smart ICT services. New business models between utility and technology providers can be developed to offer these integrated services. Lagos could particularly become a promising market for ICT service providers. These providers will create and develop the Lagos services ecosystem; mCommerce, mHealth enables greater access to healthcare, mEducation will benefit communities. Smart Grid solutions for smart power management, real-time Fleet & Transportation information system will prevent future congestion in the city and the port areas, and so many other services and opportunities.

I really believe that ICT can play a central role in helping Lagos city to avoid becoming a sprawling, polluted and highly congested megacity, but instead helping the city to grow into a greener, smarter and more livable metropolis.

If you were an executive, where would you do business in 2025?

2015-11-30T09:41:00.001+01:00

When I was reading a 2015 McKinsey & Company report on new disruptive forces, I was suddenly brought back to reality that many seem to overlook or even ignore. Check this out and comment.

Growth has moved elsewhere
By 2025, China will be home to more large companies than either the United States or Europe.
It is expected that nearly 50% of the world’s large companies—defined as those with revenue of $1 billion or more—to be headquartered in emerging markets.

New emerging cities
Nearly 50% of global GDP growth between 2010 and 2025 will come from 440 cities in emerging markets. 95% of them small and medium-size cities that many Western executives may not even have heard of and couldn’t point to on a map; Who has heard of Hsinchu, in northern Taiwan?
Brazil’s Santa Catarina state, halfway between São Paulo and the Uruguayan border? Or
Tianjin, a city that lies around 120 kilometers southeast of Beijing?

In 2010, it is estimated that the GDP of Tianjin was around $130 billion, making it around the same size as Stockholm, the capital of Sweden.
By 2025, it is estimated that the GDP of Tianjin will be around $625 billion—approximately that of all of Sweden.

Countries are becoming more urbanized
By 2025, emerging economies will grow 75% faster than developed nations and will account for more than 50% of the world's economy.
440 cities in emerging markets will account for more than 50% global GDP growth and more than 50% of urban population (2.5 billion people) will live in Asian cities.
46 of the top 200 cities in the world will be in China.

And this is going to happen in less than 10 years from now!

To be continued...

Next post on Technology evolution.

Technology for Good to redefine the Economic Value

2015-06-14T14:32:00.000+02:00

In recent years, big business has caused a number of social, environmental and economic problems. We have seen its effects on health-care systems, the environment, the mortgage crisis and so on. Profit maximization by companies has often been perceived as positive, but there is an increasing belief that this profit is made at the expense of society.

In 2010, the World Health Organization spent USD 5 billion on delivering healthcare solutions to the world. The same year, a global corporation spent USD 25 billion on delivering potato chips to the world. Corporations are incredibly powerful at delivering solutions to problems, but they make absolutely no value judgment about which problems they’re going to solve.

Ericsson’s Networked Society vision, which aims to transform the existing business landscape through business innovations, could be a tremendous opportunity for a new business practice that creates economic and societal value simultaneously.

Technology for Good is Ericsson's strong brand and concept of using our technology leadership with engaging public and private partners and our employees in order to meet a global challenge.

It has never been so cheap and easy to start up a new business. The growing number of connected devices, combined with high-performing mobile-broadband infrastructure and cloud technology, means a large amount of data and information is available globally. This accessibility to information can help to prevent disasters, fight poverty and empower people, no matter where they are in the world. The sky really is the limit for sustainable business innovations that generate profits for shareholders, while at the same time creating societal value.

I truly believe that the Networked Society vision combined with a Technology for Good approach could be a driver of economic growth and societal development in this all-communicating world.

Note: This post was published in Ericsson Networked Society blog as well.