HR goes Digital

HR goes Digital

Much has been said and written about the digital economy, but what is it about exactly? This is one of the most transformational times in human history: the way we work will change dramatically and the required skills will be different. Whereas in the past changes happened gradually, this change is exponential. The changes are also combinatorial, amplifying each other: quantum computing fuels big data, the internet of things fuels artificial intelligence and machine learning, which fuels robotics. However, everything that cannot be digitized or automated will become extremely valuable. Human traits such as creativity, imagination, intuition, emotion, ethics will be the NeXT transactionable goods. The goal is to go beyond technology and data to reach human insights and WISDOM. Consider the example of an ERP consultant: while in the past consultancy firms looked for technical specialists, the role should and will be transformed into that of a Business Consultant leveraging on technology to drive organizational change. The consultants do have technical skills, correct, but they also have process experience which can be transferred from one company to another. From that view, having a deep insight into the tool is not as important as adding strategic value to management. Consider the following graph known as Martec’s Law: while technology changes at an exponential rate, organizations change at a logarithmic rate. The gap between these two curves must be covered by the Business Consultant, who provides advice as to how to embrace change and which technologies are best for the specific organization to adopt.

The same view can be applied to most positions that are technology driven. In the past, HR would go for candidates that had the specific technical knowledge regarding the tool that will be used for the position. But how can they look now for people with skill-sets in Big Data, the Internet of Things or Artificial Intelligence? In the article: “85% Of Jobs That Will Exist In 2030 Haven’t Been Invented Yet: Dell” we learn that: "The pace of change will be so rapid that people will learn 'in the moment' using new technologies such as augmented reality and virtual reality. The ability to gain new knowledge will be more valuable than the knowledge itself. In other words, get ready for a lifetime of skills training and retraining, in real time”.

The “have you done it before?” question that is asked during interviews to tech specialists seems a little too 20^th Century, as the 21^st century gives room to ever changing careers shifts where staying ahead of the curve is key not to become obsolete. In the past, training was in charge of supervisors or managers. Hiring people with the concrete experience in the tool would serve as an accelerator of the learning curve; meaning: the supervisor would not have to use so much time of their time in training. But today, online courses are very accessible, changing the game once more. An IT engineer, for example, can easily be switched towards a new technology with the proper training. The focus then should not be on looking for people with the specific knowledge, but rather on finding candidates with the fundamental knowledge which through training can be transformed into the skill-set the organization is looking for.

https://www.huffingtonpost.ca/2017/07/14/85-of-jobs-that-will-exist-in-2030-haven-t-been-invented-yet-d_a_23030098/

Construction Tech

Construction Tech

Technology is impacting the construction industry like never before. From cloud base collaboration and the development of digital twins, to robots, super-materials, wearable tech, pollution eating buildings, and even artificial intelligence. Check out the following construction tech trends:

1. Robots: from autonomous robots that increase the detailed size inspection, to mechanical arms that automate repetitive tasks. AI shows itself in the form of predictive designs to the rise of intelligent buildings that operate themselves.
2. Exoskeletons: originally developed for military use and for pacient mobility and rehabilitation, they are now appearing on construction sites.
3. The Connected Jobsite: they use cloud technology to make information available to all the relevant parties. Design information is streamed from a single point of truth into the palms of operatives, to info by geo-location, remote site monitoring, personnel location tracking, etc. Digital mapping engines contain and visualize construction data, by using geo-location information is presented from multiple systems relevant to the physical location. 
4. Autonomous Vehicles: as with robotics, the automation of the construction plant increases safety measures and helps the industry’s shortfall in labor. Semi-autonomous electric excavators that can learn the careful movement trying to achieve highly accurate labeling.
5. Advanced Materials: recycling of hard to dispose of waste products has seen increases for example in relation to plastics. Waste plastic has been incorporated into roadways and used as a material for 3D printing new components or structures. Also, CO2 injections in materials produces strengths in the final material.
6. Unmanned Aerial Vehicles: drones are becoming increasingly common in construction sites. The undertake inspections ensuring that operatives remain out of harm, and survey vast areas of land in a few minutes.
7. Virtual and Augmented Reality: they can be used for walkthrough in complex logistics sites in advance, or to support health awareness safety training. They offer a range of data to site personnel, from design information to statistics.     
8. 3D Printing: they can be used for rapid prototyping or to the full scale printing of houses and bridges.
9. The Intelligent Built Environment: by harnessing the data from the digitally enabled assets we are now creating entire cities can now operate in a smarter more efficient way. The data can be used assess trends and to transform the design of future buildings, infrastructure projects and even large scale city wide master plans. 

We can see know clearly how Revolution 4.0 is already being applied to the construction industry. Now consider how data can be monetized and used. In his book “The New Oil – Using Innovative Business Models to Turn Data Into Profit” author Arent van’t Spijker considers that “even if companies are not in the same value chain, they can still find common ground on which to share data and achieve benefits. “Value Net Creation” refers to the predisposition for monetizing data due to the fact that companies are in the same value network: they share the same final consumer. Exchanging data about this consumer or his behavior can bring great benefits to all involved, including the customer, without harming each organization’s competitive position. Multiple organizations form a network that can create value for the end user rather than a chain of companies creating value in consecutive steps”.

The point is that all of these different technology providers serve in the end the same final customer: the purchaser of the construction site (be it house, building, etc). Construction firms see their core business as the construction itself, purchasing the technology they need to carry on their activities, but why not get involved in the technology field themselves?

No one better than a construction firm could know the technology that is required for their own industry. To capture a larger share of the Value Net Creation, they can support the creation of start ups outside the company’s structure or enable internal projects, developing the technology they need themselves. Then, by creating solid brands and a streamlined easily exportable business model construction companies could and should switch towards becoming technology providers for the industry at a global scale. Shifting their Strategy to become Data Driven is the key to survive in the World of Tomorrow.

https://www.amazon.com/New-Oil-Innovative-Business-Models/dp/1935504827

Utilities Tech

Utilities Tech

The 4th Industrial Revolution is here! The first author that coined the term was German Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, in his book: “The Fourth Industrial Revolution”. Schwab argues that this revolution is different in scale, scope and complexity from any that have come before. Characterized by a range of new technologies that are fusing the physical, digital and biological worlds, the developments are affecting all disciplines, economies, industries and governments, and even challenging ideas about what it means to be human. With my releases “Revolution 4.0 and the Man of Tomorrow” in March 2016 I was amongst the first authors to dwell on it’s meaning. But how is it different from the previous three industrial revolutions? An example in the Utilities Sector will show us the LIGHT.

In release “Where no Man Has Gone Before” I explain that the Utilities Sector is composed by electricity, gas and water. Let us take the electricity sector as example: Thomas Edison was the inventor of Direct Current Electricity and the light bulb. He founded General Electric Light Bulb Company in 1887, which was later incorporated in General Electric Company. General Electric, the only surviving company of the Dow Jones Industrial Average from the beginning of the 20th Century manage to survive the following revolutions by diversifying into segments such as: Appliances, Power and Water, Oil and Gas, Energy Management, Aviation, Healthcare, Transportation and Capital. Meaning, it’s core business is not electricity anymore.

In his book “The New Oil – Using Innovative Business Models to Turn Data Into Profit”, author Arent van’t Spijker takes us through a fantastic example as to how to reshape the electricity sector into a Data Value Driven industry. In the following Business Model Canvas, “a utility company sells electricity contracts (X) as a value proposition to consumers (A). It’s key activities include the supply of electrical power (X). As part of this activity, the utility company installs digital metering devices in the homes of consumers to measure the amount of power used by the household. These smart meters do not only measure the amount of electricity used, but also register additional data such as the times of use, the fluctuations on the power grid and even which actual devices are using power. This data is sent back to the utility company, where it is stored in a database. It is then used to provide services (Y) to the consumers, for instance by offering variable rates during the day to stimulate power usage at offpeak times or by displaying personalized advice on a smart thermostat or a web portal”. 

“The device at the heart of this data transport is called the Smart Meter, which measure both incoming electricity and outgoing flows over a particular time. The customer value resides in the data, for instance by comparing your washing machine’s data against a global database of washing machines, your electricity company may detect that your machine is using more energy than average washing machines that run as often as you run yours. Based on that data, the company could calculate that purchasing a new washing machine would save you enough money to be profitable in 4 years’ time”.

This is a clear example of Revolution 4.0 applied to revitalize an industry. An electricity company implements smart meters through which data is collected. This data is processed, “packaged” and sold a service. Consumers might pay an extra fee for this data, but it is extremely valuable for cost savings. The data “pays itself” to put it bluntly. As the Data Driven Strategy grows, electricity companies will continue offering their standard services but will as well grow their business in the data segment. Eventually Smart Meters and the collected data can be sold not only to existing customers but also to non-customers. This is a way to expand the market by attracting new customers but also to unlock untapped market value. In this example, we clearly view how the fourth industrial revolution differs from the previous revolutions, which were capital intensive. Switching to a Data Driven Strategy does not require huge capitals, but is knowledge intensive. Having vision, taking risks and leading data driven strategic changes are un-negotiable skill-sets for the World of Tomorrow.

https://en.wikipedia.org/wiki/Technological_revolution

http://the4thindustrialrevolution.blogspot.com/2019/04/utilities-sector.html

https://www.amazon.com/New-Oil-Innovative-Business-Models/dp/1935504827

Oil Tanker Tech

Oil Tanker Tech

I recently participated in the implementation of the SAP Business One product in an argentinian company dedicated to renting oil tankers for fluvial transportation throughout the argentinian Mesopotamian rivers. Now consider something very important, a software implementation can be used not only for the technical benefits of the software itself but also as a way of reorganizing the departments and drive efficiency. A product aimed at small and middle sized companies, an implementation of this product is supposed to last no more than 6 months. Yet, after many twists and turns Go Live date was postponed many times.

One of the reasons was that the software was sold as a bi-monetary system, but did not comply with argentinian accounting standards, meaning Fixed Assets and Inventory are in Argentina mainly “priced” in USD a situation very atypical in other countries which value these assets in local currency. This caused the Accounting Department to lose confidence in the software and implementation team, proceeding to thoroughly test the system to verify compliance both from an accounting and tax perspective.

Another reason for the delay was the implementation of another system called SAION that would serve as communication by satellite between the ships and SAP. The personnel in the ships would load the materials and inventory information to SAION on board, and this information was to be transmitted to land by a satellite signal. This process, though complicated, was very sophisticated and an interesting technological development. Due to the complexity of the implementation and after a change in Management this advancement was aborted, finally agreeing on sending the information to land in an excel file that would later be uploaded manually to the SAP.

After a year and a half of pushing through strong corporate resistance, the implementation was divided in two: a light implementation including accounting and basic logistics, and a subsequent phase involving deeper logistics. The first implementation phase went on not without resistance and complaints, but was smoothly implemented; and the second phase is still in process focusing more on the advantages in K.P.I.s for management.

Consider the history of this company: in the past National Oil company Y.P.F. had it’s own oil tank service, when it was privatized this service provider was established to provide external carriage service to Y.P.F. and other Oil players in the local market. Even if the company has subsisted for a couple of decades, the business model is difficult to export considering the big investments required and the difficulties of engaging in business in the oil markets in other countries. Could this business model be applied in Brasil, for example? It would imply access to huge capital investment as well as business relationships difficult to access for small foreign companies. But remember that businesses are forced to innovate and expand or they will not resist the test of time. Where is the potential then to build and grow an exportable business model for such a company?

Revolution 4.0, the fourth industrial revolution, implies a shift in mindset to all sorts of companies, be it start ups, middle sized or big companies. Applying revolution 4.0 to the Oil Tanker industry is the solution to expand globally, by producing the technology to provide services to the industry and then export these services. The SAOIN project that was aborted missing the big picture: once implemented this solution could be branded and easily exported to other players in the industry worldwide. As described in the Lean Start Up defined by Eric Ries, companies can support the establishment of Innovation SandBoxes.

An Innovation Sandbox can be defined as ‘A digital environment and toolset which enables large groups of stakeholders to act autonomously and without hierarchy in the building of innovative concepts and solutions’. The main purpose of an innovation sandbox is to allow individuals to collaborate collectively in real time in the act of problem solving, opportunity identification and concept building without the communicative and logistical barriers which emerge in larger organizations, a result of structural considerations such as siloed departments, lack of access to relevant decision makers, and the ability for individuals lower down the power spectrum to have their voice hear. Social mechanics and high quality user interfaces (such as those seen on public social networking platforms i.e. Facebook and Twitter) are deployed to increase participation rates and ensure that stakeholders are sufficiently engaged with the collaborative efforts.

The products developed in the Innovation Sandboxes can be later absorbed by the organization, or be branded and sold separately to the industry. By supporting the creation of Start-Ups to provide technology services to the Oil Tanker industry, small companies such as the one I provide in this example can easily escalate and globalize. Whether the project is carried out as an internal project or as an external project to serve the organization, applying Revolution 4.0 to provide the technology as a service for the industry is the way to go. As economies become digital and the technology sector is accountable for a larger share of GDP, companies will need to be creative, innovative and technology orientated not just to progress but to survive the test of time.

https://en.wikipedia.org/wiki/SAP_Business_One

https://en.wikipedia.org/wiki/Lean_startup

https://medium.com/innovation-playground/the-innovation-sandbox-d9€€dfbdd15914

Green Tech

Green Tech

Green Tech, also known as Environmental technology or Clean Tech, refers to sustainable energy generation technology. It also refers to a means of energy production that is less harmful to the environment than more traditional ways of generating energy, such as burning fossil fuels. They are energy sources that renew themselves and never run out. Increasingly, socially responsible (SRI) investors look to companies that specifically employ or produce green technologies (or that do both). 

"Cleantech" is an industry term used to describe products or services that improve operational performance, productivity or efficiency while also reducing costs, inputs, energy consumption, waste or environmental pollution. Large companies like Starbucks and Whole Foods employ green technology practices alongside a variety of small startups. Othes such as Tesla Motors and SolarCity produce or install green technologies such as electric vehicles or photovoltaic solar panels.

TODAY, over 80% of the energy is coming from fossil fuels. Green Tech constitutes only 10% but is a fast growing segment. Venture Capitalists are stampeding to invest in Green Tech, which can be described or simplified the following way:

1. Solar Energy: Solar panels use the energy provided by the sun. The material inside (silicon) absorbs the energy, and an atomic reaction generates energy. A control device called an inverter changes the electricity from DC to AC. The electricity passes to outlets and then to electrical devices, like a computer.
2. Wind Energy: Wind turbines are might seem small but are 20 story high! The blades connect to gears that create energy, which is converted by a generator into electricity which travels down the tower through a cable which in turn connects with the power grid that serves the communities.
   
3. Hydro Energy: it is generated by capturing the force of moving water that is in the rivers and oceans. It is generated in damns, rivers and streams, where gravity helps out. It is done by using the movement of the water to spin hydraulic turbines. The energy is converted into electricity through a generator and then sent to a power grid.
4. GeoThermal: magma, which lies underneath the Earth, can be used as energy. The heat contain 50.000 time more energy than all the oil and natural gas resources in the world. Releasing a small amount of that heat can create electricity. A well drilled a couple of miles deep can capture the rise of hot water and steam. That steam goes through a turbine and a generator produces electricity.
   
5. BioMass: energy is absorbed through trees and plants through photosyntesis, and in release when organic matter decomposes. Plant waste can be collected from farms and manufacturers, the waste is burned to hot water, which creates steam. The pressure of the steam spins a turbine, which empowers a generator, which creates electricity. Waste from animals can also be collected in a large tank called the digestor, filled with bacteria that eats the waste and converts it to methane gas, which empowers a generator and so on. The same process can be used for methane.
   

Green Tech is useful to fight climate change since is does not produce green house effect. They create no pollution emissions. Renewable energies renew themselves and will never run out. They cost very little to operate. Disadvantages include generation of energy only in small scales.It will take time to replace fossil fuels, but eventually it will happen.
It may seem difficult or expensive to establish your self as a Green Tech Entrepreneur since they are technologies that are CAPITAL intensive as well as KNOWLEDGE intensive. That being said building a prototype, a 3D simulation model and a Business Plan is accesible to anyone in mildly developed countries. Things are getting easier, much easier than before. Getting financed might a challenge though for countries that score high in the Corruption Perception Index (CPI).
The Mayas, a long lasting advanced civilization that misteriously disappeared, did not predict the end of the world. They predicted a period of changes from the year 2012. Revolution 4.0, the Post-Industrial society, the Knowledge Based Economy is here to stay. It's up to you, and only you to change your situation. Make no mistake, these changes will take place fast, there will be realignment in the distribution of world power in the NeXT few years. Which SOCIETIES have the VISION to make this happen?

Hop on this revolution, the 4th industrial revolution, a REVOLUTION OF THOUGHT.

Source:
https://www.investopedia.com/terms/g/green_tech.asp
https://en.wikipedia.org/wiki/Corruption_Perceptions_Index 

FinTech

FinTech

What is FinTech? It is a multi-billion dollar industry and it means Financial Technology. It includes a range of Products, Technologies, Business Models that are changing the Financial Services Industry. It refers to cashless processes, crowdfunding platforms, roboadvisers and virtual currencies!!! Start ups using FinTech are currently attracting more and more attention and funds. Big companies are also going into FinTechs, with examples such as Apple Payer (Apple) or AliPay (AliBaba). 

It is estimated that 2 billion people world wide do not have bank accounts!!! Now thanks to FinTech all you need is a phone to take out a loan or insurance. Kenya has pioneered a mobile banking system called MPesa. Kenyas access MPesa directly through their phones to transfer money, pay bills, or take out loans. Fintech has forced traditional Lenders, Insurers and Asset Managers to embrace new digital technologies. Wealth Managers now have to compete with roboadvisers which are automated financial planning services. Thanks to high tech algorithms these services are available 24x7 and can be more affordable than traditional asset managers. Examples of FinTech include:

1. Peer-to-Peer Financing: they appear as solutions for people to lend and borrow without going to the bank. Data privacy is one main issue of concern as more financial services go digital, cyber-attacks become a risk. The higher the risk, the higher the interest rate demanded.
2. Cognitive AI: they go a step beyond normal data crunching and can see and analyse patterns and accelerate/optimize decision making.
3. Digital-only banks: almost every bank offers mobile and web-based access. Digital Banks go one step further and rely solely on a digital interface. They save physical costs and pass on cost savings to customers.
4. Mobile Payments: they represent the head of the FinTech value pyramid for now. Mobile payment apps have reduced the time and cost to make online payments.The payment revolution is just starting!!
5. White Label Banking: it allows companies without a banking license or a regulatory infraestructure to offer financial products to their customers.For ex, a card issued and branded by a retail store but using the payment infrastructure of a licenced bank.
6. Telematics (Insurance): an example is a small device is installed in your vehicle which tracks your car and determines your premium based on how you drive. They apply not only for auto-insurance but also for safely renting out vehicles.
7. RegTech: they intend to automate regulation compliance, from credit card fraud detection to monitoring financial risks thresholds.
8. Virtual and Cryptocurrencies: they range from ways to transfer value, to smart contracts and decentralized storage to leasing smart devices.
9. Web-based financial planning tools: large corporations use ERPs to manage their financial budgeting, planning and forecasting needs while small businesses are using excels which take up a lot of time. By implementing new tools the user only needs to feed the raw data and define the relationship between certain variables, and the system automatically produces a number of reports, graphs and insights that can be plugged into an investor presentation.
10. Financial learning: apps offer the opportunity to practice your trading skills in real time, using dummy accounts on simulated exchanges. 
11. Robo-Advisors: they provide easy and accesible basic invesment advice to consumers, eliminating tasks previously performed in excels files.

The appearance of FinTech, low cost easy to develop financial technology, put a Question (?) mark on the role of Business Majors itself. Is it really worth it to take a PLACE in a company and attempt to climb the corporate ladder? Or is it SMARTER to team up with engineers adding value with products and services needed by the financial world and build a billion dollar business? In my article "The Need for Business Majors in the Tech World" I explain how Business Majors add value and should ideally team up with engineers to build businesses. In a world of rising inequality and unemployment, and acknowledging that professional jobs will also be automated and lost in the NeXT few years, it might be that reinventing the business carrer itself and switching to the technology sector is the way to GO for business majors.

Romania: The Little Italy

Romania: The Little Italy

Validating hypotesis is not as difficult as it sounds... Seasoned travellers should be easily be able to grasp these concepts. Romania, a country of beautiful landscapes, is located in the middle of Slavic Europe. After the fall of the Greek, the Romans established themselves in a garrison with the cohabitation of the native Dacians and the Roman colonists. The Roman garrison were used to to resists invasions from the Russian Zars, becoming the first border of heavy resistance.

In the Middle Ages, the Kingdom of Romania resisted the Ottoman Empire invasions. Amongst the most legendary icons is Vlad III of Wallachia (Vlad the Impaler - Dracul). In a fortress in the midst of Transylvania, Vlad resisted the Ottoman invasions time after time, impaling the enemies once killed to send a clear message to the enemies. When Ottoman soldiers showed up in future invasions, the bodies to their desceeds comrades would fill them with fear. Bram Stocker used his figure to inspire him for his novel "Dracula". Interestingly enough, Bram Stocker never visited Transylvania and imagined this area to be gloomy and cloudy. Transylvania is actually a very sunny and beautiful area. 

Consider the case of the Gypsies (Romfolk). Though many have Romanian passports, they represent an ethnical group spread across Europe. Being a Gypsy does not make you Romanian, beign Romanian does not make you a gypsy!

Romanians (generally speaking) resemble italians physically, romanian language remains as the living language closest to the original latin, Italian music is as popular as ever, and many romanians dream of going (back?) to Italy!!! The case of Romania exemplifies how culture is preserved even after centuries, when a Roman Empire Garrison to fence invasions preserves authentic latin culture even if surrounded by slavic countries!!! Mind blowing!!!

REVOLUTION 4.0 - A REVOLUTION OF THOUGHT