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

  

Comparing Apples vs. Oranges

Comparing

Apples vs. Oranges

Compared to, compared to, let us compare... the countries!!! In my Releases "Revolution 4.0 and the Man of Tomorrow - Post-Industrialism, Inequality and the Knowledge Based Economy - Parts 1 & 2", I take you through the last 200 years of history of the two regions I know the most: South-South America and Scandinavia, to show you the differences, but also the similarities. Comparing countries is a difficult thing. Sure, government processes have played their role, but what about history, culture and religion? It is very difficult to compare countries in different regions. Let us take the discussion to a higher level. While the American continent has been mainly populated by immigrants, Europe has much more history of emigration, war and colonization. Could be difficult to explain the situation TODAY without knowing a little bit about the history of these regions.

While Northern Europe has only received migration waves from other parts of Northern Europe, and Southern Europe was under the influence of the Roman Empire (a multicultural empire), Argentina was populated mainly by Europeans, being the 2nd country in the American continent to receive the most European immigrants after the US. Argentinians naturally tend to compare themselves with the US, but the United States of America consists of 320 million inhabitants spread in 50 States. Meanwhile, Argentina consists of 23 states housing 43 million inhabitants. Norway, on the other hand, has only 5 million inhabitants and can be compared only to a Province in these countries. There is no possible comparison.

As explained in my fantastic chapter "Death and Taxes", tax systems cannot be applied indiscriminately without having regards for the culture. While Scandinavians tolerate a heavier tax toll, Southern Europeans prefer a more moderate tax rate and Southeast Asians do not want to pay taxes at all. Consider that communities IN those countries will keep their customs and traditions. Meaning the Asians will still resist paying taxes, even if they live in Europe (or Argentina). The counterpart of the Tax System is the Welfare System. The more taxes you pay, the more you get in return: be it healthcare, education, social plans, whatever. But be careful, too much welfare kills entrepreneurial spirit and drives laziness. Countries should then look up to models that offer a CULTURAL match.

Argentina, the most southernmost country in the World, can look up to both Australia and Canada. From the center South, it could be said that Argentina is very much like Canada. Consider an average of 25.000 USD x capita for Buenos Aires and the Southernmost provinces compared to 5.000 USD x capita in the North. This responds to lower Productivity from the Bolivians, Paraguayans and Peruvians, people of Indian origin and their children also found in Buenos Aires and who live in very bad conditions (they are Argentina's poor people). Former President Cristina Kirchner referred to this group as the people "of the original tribes". They are really 3er or 4th generation immigrants from nearby countries that were not incorporated Productively to the workforce (for whatever reason). I will refer to this group as "the latinos", a much friendlier term than the nicknames that they usually get. The solution to poverty in the case of Argentina lies in increasing the Productivity of the latino group. Canada, much further North, does not face this issue. Australia did have descendents from indigenous people, but not as much. The US does have a much higher Latino immigration rate, usually coming from Mexico. My view is that migration at some point happens naturally: no wall or fence will separate the North of Argentina from Bolivia or Paraguay. As explained in my chapter "Bolivia: the NeXT India", the most powerful nations in South America must "help" or make sure that the situation in Bolivia and Paraguay improves, to resolve their own situation. The impoverishment of nearby countries eventually hits you, as migration waves naturally flow from one country to another. This was not understood by Europe, that with austerity measures strangled Southern European economies dooming itself to the deepest depression since WW2.

In my article: "Dark Clouds over Norway and Scandinavian countries", I explain the challenges Scandinavian countries are going through TODAY. In his masterpiece "Scandinavian Unexceptionalism: Culture, Markets and the Failure of Third-Way Socialism", Nima Sanandaji explains that the success of the Nordics little had to do with the Government. Scandinavians and their descendants abroad show higher Productivity rates than in Scandinavia itself, were government intervention and the Welfare system have actually contributed to hinder growth. This might refer to "the Protestant Work Ethic and the Spirit of Capitalism", as described by German Sociologist Max Weber. Consider that Scandinavian countries have not received migration that is not from Northern Europe at any point in history, and are as such uni-cultural societies. Social tensions are arising as the region shifts towards multi-culturalism. From that view, ALL Scandinavian countries (composing a total population of 20 million people, excluding Finland), should look to the Kingdom of the Netherlands, a country with a colonial, multicultural and merchant history consisting of 17 million people.

Consider the case of Spain. Many times Spain looks up to Germanic countries. Quite clearly, nothing does the multicultural Kingdom of Spain (Roman Empire influenced), have to do with Northern Europe. Different religion, colonial history, multiculturalism, the way the country is organized, the Tax system... Comparisons seem futile. But what is Spain missing, to take the leap? In my article "How Tech Hubs create Wealth", I explain that entrepreneurs should be focused in the efforts of Wealth creation leaving the distribution of that Wealth in the hands of the Government (hopefully in a transparent manner). Culturally different but with the same Religion and Tax burden, Spain can look up to Ireland, a country that appears as bridge between the US and Europe and that the largest Tech giants in the World have chosen to establish their offices (location matters as well). Once more, the same cannot be said about the Nordics, which offer a different Tax System and can look to each other for examples in the Tech Industry (Finland being the most attractive case).

But enough with the countries and comparing!!! In my article "the 4 Keys of Value Creation", I have given you the ingredients to change YOUR OWN life and situation. If you live in a Developed Country, you have all the tools that you need to improve your situation. Don't follow the Pack, do your own thing, find your niche, succeed, and ENJOY LIFE!!! Better LUCK NeXT time!!!

SKÅL!!!

Textile Tech

Textile Tech

In post-industrial societies, knowledge is about to become the most valuable commodity of all. And while developed countries continue to lose the low-end jobs in manufacturing which are outsourced to low cost countries, the challenge is how to add value to the economy to remain competitive. An example in the textile industry comes to mind. Before, textile was manufactured in Europe. But today, countries debate themselves between two models: import clothes, or keep a high-value adding textile industries. Keeping the whole supply chain does not seem like an option.

How can we integrate the Fourth Industrial Revolution to the textile industry? In my release "Where No Man Has Gone Before - the Road to the Fourth Industrial Revolution", I take you through a recount of 5000 years of civilizations to understand the crucial moment the World is facing today. The NeXT industries, less capital intensive than before, must integrate to the old industries in order to add value. While manufacturing is automated and outsourced, design must remain in developed countries. 3D Printers can be used today to sketch digital blueprints at almost no cost. Their easy access make it easier for small business to have access to the latest technology to develop rapid prototypes. To cite my release "Nike uses 3D printers to create multi-colored prototypes of shoes. The cost and timing for prototyping has been cut significantly in the last few years. Besides rapid prototyping, 3D printing is also used for rapid manufacturing. Rapid manufacturing is a new method of manufacturing where companies are using 3D printers for short run custom manufacturing".

"The Internet of Things" is another example. Again citing my Release "Where No Man Has Gone Before: the Road to the Fourth Industrial Revolution": "the process starts with the devices themselves, which securely communicate with an Internet of Things platform. This platform integrates the data from many devices, and applies analytics to share the most valuable data with Applications that address industry specific needs". To add value and differiante, brands can add technology to the classical outfit. A chip can be inserted into a training shoe, which in turn sends signals to an iPhone or iWatch that can be used to run reports and analytics. Metrics can help the runners identify their areas of improvements to increase their performance. And help the Brand position itself in the high quality segment, which the final customer is willing to pay for.

For bigger companies, having a strong powerful ERP also helps. The company "Pacific Textiles", headquartered in Hong Kong but with factories in Asia Pacific, uses SAP to achieve the Digital Transformation of it's Fabric Manufacturing. Efficiencies in month-end closing and MRP processes allow to automate a large part of the Supply Chain. By using Data, the company ensures consistency in quality. With Real time reports, decision making process is made agile. SAP HANA ensures a one-service framework which gives Pacific Textiles access to a global network of high qualified IT consultants ready to drive organizational change through software implementation. The aggressive strategy in technologization has helped the company expand globally, focusing on developed countries. 

While the textile industry might be seen by some as a "dying" industry, it represents an excellent example of an industry ready to be reborn. Companies must understand that using the latest technology is not a choice, but a must in order to remain competitive. All that can be automated must be automated, in a transition to "intelligent manufacturing". The low end jobs that must be destroyed should not be protected, as the focus shifts to more value added and more creativity. Companies must manage to differentiate to position their brand in the mind of the consumer and rapidly expand globally. Today, thanks to technology, it is easier than ever. Revolution 4.0 allows easy access to the latest tools to develop your business. There are no excuses. Hop on the Revolution and drive your business to the NeXT level!!!