How sustainable are we with disruptive innovation?

15

September

2019

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I still remember my very first time learning the concept of disruptive innovation by reading an article from my favourite economist, Joseph Schumpeter. He used the term “creative destruction” for what we nowadays call and use and being influenced by, as disruptive technology. Looking back since the time he published his research on creative destruction in 1942, we have come a long way.

There is no doubt that disruptive technologies or, in Clayton M. Christensen’s point of view, innovations have transformed our lives forever. Not only they vastly affect our lives on individual level but also the business sphere in a way, I would say fierce and might considered invasive. This has raised legal and regulatory concerns across the globe. How safe are we and how much privacy we have left in response the boom of digital innovations, such as Artificial Intelligence (AI), drones, Augmented Reality (AR), block chain as well as distributed ledger technology that includes cryptocurrencies and big data.

Let’s take an example, Facebook, a giant tech firm recently has been fined with a record breaking $5 billion by the U.S. Federal Trade Commission (FTC) for the failed effort in protecting user data and its interference in the U.S. election with the use of AI and mathematics algorithm. Facebook was allegedly claimed to use data of millions of its user provided by a British consulting firm, Cambridge Analytica, to psychologically profile US voters and target them with material to help Donald Trump’s 2016 presidential campaign. Facebook has then apologized to its users and admitted a “breach of trust” has occurred.

In general, AI creates the typical so-called “black box” problem when decisions are made based on algorithm. These algorithms can be so complexly programmed that even its creator fails to acknowledge or detect any breach of market norms or identity any crime. If such algorithm made public, it would lead to data security breach, especially in accordance with the General Data Protection Regulation (GDPR) directive issued by the European Commission in May 2018, requiring companies to explain how algorithms using personal data work and make decisions. The more a company’s business model depends on its technology, the more prone it is to malicious cyber attacks.

As further developments of technological disruptions are being implemented and as the number of its users increasing enlarges, solving the issue of cyber security is a difficult but necessary step. In addition, knowing how to turn this threat into an opportunity will create a sustainable development model for big tech companies.

Besides, we have seen government’s actions in taking this matter further, however mostly ad-hoc. According to the strategic triangle policy, a good policy should be technically correct, politically stable and organisationally implementable. Given the fact that technology changes very rapidly, it is imperative that adaptive regulations take place in time to avoid expensive and drastic consequences. This calls for effective and mutual collaboration between tech firms and regulatory institutions on both regional and global level.

References:

https://www.weforum.org/agenda/2019/02/how-can-we-regulate-disruptive-technologies/
https://www.bbc.com/news/world-us-canada-48972327

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Beyond the buzz: using Blockchain in healthcare

6

September

2018

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2017 will probably be remembered as the year of the Bitcoin, as its price skyrocketed by more than 1300 % and new kinds of millionaires were introduced, the Bitcoin millionaires. Behind this hype lies a more interesting technology, Blockchain. According to Chen (2018), this technology has “the potential to change the way we live, work consume and interact”. An interesting and impactful use of the Blockchain might be in the healthcare industry, a huge industry that covers almost 20% of the US economy.

Nowadays, most healthcare providers store data on so-called legacy systems, which are not designed to share data. Apart from that, almost every hospital stores its data differently, which makes ‘connected healthcare’ almost impossible. Even though this might not seem that big of a deal at first, sharing medical data can reduce costs and even more important, improve patient care dramatically. Therefore, more transparency is needed, this is where Blockchain comes in. This technology can provide transparent data-sharing across institutions, as well as the security and privacy needed. Combining the already existing data may in the future create new insight and possible solutions to health problems that are devastating today. Furthermore, it may benefit the individual patient as well, since the records can be accessed at any time, giving doctors all the necessary information and making diagnoses even more comprehensive.

This is only one way Blockchain can transform the healthcare industry, others might include personalized medicine and better medical research. There are some challenges as well, however, such as the complexity of Blockchain and regulation, which is especially strict in healthcare. Nonetheless, most healthcare providers recognize that Blockchain has the power to reduce costs and improve the overall health care, which can support the rise of Blockchain in the healthcare industry.

Sources:

  1. https://hackernoon.com/how-blockchain-is-set-to-disrupt-the-healthcare-industry-in-2018-5d4fda455911
  1. https://www.businessinsider.nl/bitcoin-price-in-2017-review-2017-12/?international=true&r=US
  1. https://www.cnbc.com/2018/01/10/in-the-world-of-cryptocurrency-buzz-blockchain-is-the-real-winner.html
  1. https://www.forbes.com/sites/ciocentral/2018/08/05/will-blockchain-transform-healthcare/#478b85b7553d

 

 

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Is Artificial Intelligence a Threat For Humanity?

7

October

2016

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The movie “Her” is a beautiful example of how Artificial Intelligence (AI) may interfere in our future lives. For the people who haven’t seen the movie, the film follows Theodore, a man who develops a relationship with an intelligent computer operating system called Samantha. Just as in the movie, I believe AI can really add something to our lives. Everyone knows the examples of self-driving cars or robot vacuums that can make life for people easier. In the future, many more convenient applications will be developed to enhance our lives and the popularity of AI will only grow and grow.

However, many technologies have both good and bad aspects that they can be used for, and so does AI. There was a lot of commotion when people heard about so-called “killer robots”, fully autonomous weapons that are able to select and engage targets without human intervention. According to the Human Rights Watch “it is questionable that fully autonomous weapons would be capable of meeting international humanitarian law standards, including the rules of distinction, proportionality, and military necessity, while they would threaten the fundamental right to life and principle of human dignity”. Some 36% of people think the rise of AI poses a threat to the long term survival of humanity. Among those 36% are Stephen Hawking, Bill Gates, and Elon Musk. They all warn about a time when humans will lose control of AI and be enslaved or exterminated by them. Particularly the development of self-learning machines freighting these people.

Irving John Good developed in 1960 the idea of the intelligence explosion. He anticipated that self-improving machines would become as intelligent, then exponentially more intelligent, than humans. Initially, Good had a romantic view about AI, as he believed that they would save mankind by solving intractable problems, including famine, disease and war. Later on, he feared global competition would drive nations to develop superintelligence without safeguards. Eventually, he believed that this would lead to the extermination of the human race.

The crux of the problem is that we have no idea how we control super intelligent machines. Many people don’t see the threat and assume AI will be harmless. A.I. scientist Steve Omohundro did research on the nature of AI and indicated that they will develop basic drives, regardless of their job. They’ll become self-protective and seek resources to better achieve their goals. If necessary, they’ll fight us to survive, as they won’t want to be turned off. Omohundro therefore emphasizes that we have to design AI very carefully. You should expect that ethics are therefore paramount for experts in developing superintelligence. Unfortunately this is not the case, most experts are developing products instead of exploring safety and ethics. The budgets for AI are rising and are projected to a rising budget going to generate trillions of euros in economic value. Shouldn’t we spend a fraction of that budget on exploring the ethics of autonomous machines, in order to ensure the survival of the human species?

Sources:

  • https://en.wikipedia.org/wiki/Her_(film)
  • https://www.hrw.org/topic/arms/killer-robots
  • https://www.hrw.org/topic/arms/killer-robots
  • http://newsvideo.su/video/3768547
  • http://www.huffingtonpost.com/james-barrat/hawking-gates-artificial-intelligence_b_7008706.html
  • http://io9.gizmodo.com/why-a-superintelligent-machine-may-be-the-last-thing-we-1440091472

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Two last examples on crowdsourcing…

20

October

2012

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While I was surfing on the net, I found out two more funny examples of crowdsourcing: Digital IPA and My Burger.

Digital IPA is the first crowdsourced beer. It is made by Yestie Boys that is settled in New Zeland. Given its slogan “Established in the future”, it chose to make the recipe of the beer freely available on the web allowing to everyone to gain knowledge of it and try to make it better. It won the Sutton Group Brewers Guild of New Zealand Beer Awards in 2012 for the innovative label of the beer. It has a QR code where people can find some information about the company and its beer, allowing them to experiment and change the recipe on the basis of their preferences.

If you want to make your own Digital IPA, here is the recipe: http://yeastieboys.posterous.com/private/yCmgJxeHrs

Image

My Burger was a campaign of McDonald’s to celebrate its 40th year of being “Germany’s favourite restaurant” where users could create its own burger. McDonald’s launched an online platform where everyone could choose the name of the burger and its ingredients, shape and dimensions. Furthermore, all users competed with each other: most voted burgers were produced, distributed and sold in McDonald’s restaurant. This is a good example of how people can provide to firms a low-cost marketing campaign. Results were impressive: 7 million people visited the website, 116000 burgers were created and 12000 communication campaigns were developed, and everything was made only thanks to users’ engagement.

If you want to know more about it, see the video… http://vimeo.com/40618555#

Claudio

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Crowdfunding saves and makes the world a better place.

20

October

2012

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This weeks subject was crowdsourcing and crowdfunding and I found a fun example about how crowdfunding kept a 129 years old business from going bankrupt.

http://www.crowdcube.com/blog/2012/03/01/darlington-fc-turns-to-crowdfunding-to-save-its-football-club/

UK based football club Darlington FC went bankrupt and there were no interested buyers. The fans therefore connected with crowdfunding platform Crowcube to raise ₤ 750.000 to buy the club. The managed to raise ₤ 291.450 (39%) in the first two weeks.

In times were a lot of football clubs can not manage to keep their finance healthy this is a interesting way of staying alive. I think that this fan based ownership will happen more often and is a good thing. The fans now have power to decide what happens to their beloved club and it shows that a community (crowd) is willing to help and involve themselves with saving old clubs and companies like Darlington FC

 In times where social entrepreneurship is in demand I think that crowdfunding is a good tool to help such starts ups to get financed. I think that through crowdfunding the world could become a better place.

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Discount based on your social influence

20

October

2012

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Volga Verdi clothing have a really nice social media campaign. They give customers a discount based on their social reach; the more followers, friends or connections you have, the more discount you get. In other words, the more influential you are in your social media circles, the more you will save at Volga Verdi. I think this is an interesting campaign.

Afbeelding

source: http://www.marketingsavant.com/2012/08/discounts-based-on-your-social-influence

In the picture above is an example with Facebook. Facebook users get $5 discount if they have between 30 and 150 friends, $7 if they have between 150 and 1000 friends and $15 discount if they have 1000 friends or more. To get the discount, they must add Volga Verdi on Facebook, send them a prespecified message about the brand, and then email Volga Verdi to confirm they have taken part. This also applies for Twitter, Google+, tumblr. and more other social media platforms. You can check it out on http://www.volgaverdi.com.

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Crowdsourcing Home Assignment

18

October

2012

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The topic for this week was Crowdsourcing. Sincerely, I had never heard this word before reading articles, so I was really interested in understanding what the word means and its features.. But first, what does crowdsourcing means? Howe stated that crowdsourcing is the act of outsourcing a task to a “crowd”, rather than to a designated “agent”, such as a contractor, in the form of an open call.

The first article, by A. Afuah and C. L. Tucci, attempt to explain when crowdsource a problem-solving process could bring to better results than solve it internally or designing an external agent. If the problem-holder has enough knowledge to solve the problem internally, he is conducting a local search, if not, he needs to acquire that knowledge which could be found outside. In this case he should conduct an external search that sometimes could be time-consuming and expensive. The best advantage of crowdsourcing is that external agents self-select and try to solve independently a problem transforming a distant search in a local search. They found five key factors that influence the choice of crowdsource a problem or not.

  1. Characteristics of the problem;
  2. Characteristics of knowledge required for the solution;
  3. Characteristics of the crowd;
  4. Characteristics of Solution to be evaluated and evaluators;
  5. Characteristics of IT.

For each factor authors made some proposition. For example:

Proposition 1a: The easier it is to delineate and transmit a focal agent’s problem, the higher the probability the agent will crowd source the problem.

The second reading, by Lars B. Jeppensen and Karim R. Lakhani (2010), is a statistical study on the impact of marginality on problem-solving process in a broadcast search. In fact “marginal” people have no pre-existing knowledge or theory. Thus, they can solve a problem in different and novel ways. Two kind of marginality are individuated:

  • Technical marginality: people are distant from the field of knowledge required to solve a problem;
  • Social marginality: people are excluded from the field of the problem.

To evaluate the impact of marginality on the success of problem solving, they used two different regression models. Given the positive relationship between technical marginality and problem solving success, they found that successful solvers could bring new perspectives and heuristics into problem solving process. Furthermore, they studied women’s social marginality. In fact, they found that women are more cautious than men in submitting a solution, and that they do it only if they are pretty sure to have a good solution which could be the winner. Thus, they state that successful solutions are positive correlated with being women.

The third article, by T. W. Malone, R. Laubacher and C. Dellarocas (2010), defines the elementary parts, called “genes”, of collective intelligence systems. These genes can be combined and recombined to explore new ways of collective intelligence. They found that any activity needs some “genes” to answer to four key questions:

  • What is being done?
  • Who is doing it?
  • Why are they doing it?
  • How is it being done?

They found sixteen genes. For example: “How genes” for a create task (the actors in the system generate something new) are: Collection and Collaboration. The first one allows everyone to create content independently. The second one occurs when there are strong interdependences among single contributions that should be managed to perform a single task.

The fourth reading, by G. P. Pisano and R. Verganti (2008), analyses different forms of collaboration. They state that the kind of collaboration depends on two dimensions: Participation and Governance. The first one can be open or closed depending on whether or not everyone could participate. An open platform best suits if problems or situations could be separated into small “pieces”. The second one can be Hierarchic or Flat: Hierarchic if only one group has the last decision on a matter, while Flat when everyone can participate to decisions.

The two examples I used are: Yahoo! Answer and OpenStreetMap.

I think that everyone of you knows so well Yahoo! Answer. Basically, it is a database where every registered user can post its own questions or answer to other members’ questions. It’s the classical example of a collection gene: everyone is encouraged to participate or to find his or her question on the database. It’s easy, funny, easy accessible (it’s available in 12 languages) and well integrated with other Yahoo!’s services. But remember: the community is not made by expert. Furthermore, it’s not unusual to receive silly or joking answers.

OpenStreetMap is also known as Wikipedia of road maps. Basically, this is a crowdsource project born on 2004 which goal is to create a free and crowdsourced map of the entire world. It allows to registered users to contribute adding or editing maps. In fact, users can use their GPS peripherals, such as smartphones or laptop, to add maps, or they can use their “local knowledge” to add just details or point of interests. Its greatest advantage is that is distributed under ODbL license allowing users to use, share or edit freely maps. For this reason, many affirmed firms, such as Apple, Flickr, Joomla and Foursquare, employed it. Given its wide community that is now reaching 700000 users around the world, one more advantage is that it provides a constantly updated service. If you are planning to develop a map-based service this could be an optimal solution. Finally, this is an example of collaboration gene because everyone contributes independently, but there are strong interdependences among contributions that must be managed.

 

Claudio

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Professional Networking on Social Network Services

30

September

2012

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While I was reading the case for this week, LinkedIn, I came across Social Networks Services providing the opportunity to use professional network applications. Of course, our dear beloved Facebook also provides this option, one of these applications is called BrancheOut. I myself tried this application once on Facebook, because I was invited by a friend of mine. I was wondering if this application is becoming more and more popular and found an arcticle about professional networking on SNS. (Doyle, 2012)

This article states that young people care less about the separation of their professional lives and their private lives. However, if they do want to use their SNS for professional networking, they should become more aware of the information they post. One should definitely limit photos posted on their profile and choose their friends wisely. Do you people think that you will use Facebook (or other SNSs) for professional networking? Take a look at the BracheOut site aswell, maybe you will be surprised about how many friends of you are already joining!

Websites:

– http://jobsearch.about.com/od/networking/a/facebook.htm

– http://branchout.com/user/home

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