A Rare Joint Interview with Microsoft CEO Satya Nadella and Bill Gates

26. September 2017

Date: 26-09-2017
Source: The Wall Street Journal

On the occasion of the publication of Nadella’s first book, out this fall, Nadella and his predecessor talk shop

In February 2014, Satya Nadella became the third CEO of Microsoft . Nadella, more soft-spoken than his predecessors, Bill Gates and Steve Ballmer, assumed the company’s helm amid one of its stormiest chapters. Ballmer, toward the end of his 14-year tenure, had purchased Nokia ’s mobile phone business at great cost ($7.2 billion) but failed to make a dent in the market dominance of Apple and Samsung . Nadella quickly nixed those ambitions and instead ramped up investment in artificial intelligence and commercial cloud computing. The result has been a remarkable turnaround, featuring major growth in cloud services revenue, a doubling of year-on-year profits and an all-time stock price high.

In his new book, Hit Refresh: The Quest to Rediscover Microsoft’s Soul and Imagine a Better Future for Everyone (released September 26), Nadella, 50, explains this corporate transformation, lays out his hopeful vision for technological progress and recounts his own rich personal history. Read the rest of this entry »


Do You Know How Others See You?

29. August 2017

Date: 29-08-2017
Source: The Wall Street Journal By Elizabeth Bernstein

We don’t always correctly read how the outside world reads us; new research shows what we can do to improve our perception and the benefits we’ll see

Most of us are not as self-aware as we think we are.

Research shows that people who have a high level of self-awareness—who see themselves, how they fit into the world and how others see them clearly—make smarter decisions, raise more mature children and are more successful in school and work. They’re less likely to lie, cheat and steal. And they have healthier relationships.

Tasha Eurich, an organizational psychologist from Denver, spent three years conducting a study on self-awareness and has a new book on it titled “Insight.” When it comes to self-knowledge, she says there are three types of people: those who have it, those who underestimate how much they have (she calls them “underraters”) and those who overestimate how much they have (“overraters”). Un derraters beat themselves up unnecessarily. Overraters believe they do everything well. She found no gender differences in her research.

Read the rest of this entry »


Crowded cloud: Microsoft

20. July 2017

Date: 20-07-2017
Source: The Economist

Today the world’s largest software company reports earnings for the second quarter. Its share price is at an all-time high, elevated by expectations that the chief executive, Satya Nadella, will continue to transform the company and develop new business lines.

Mr Nadella, who is enthusiastic about artificial intelligence (AI), wants Microsoft to become an “AI-first” firm. He has pumped more time and money into Azure, its cloud-computing business, hopeful that it will account for much of the firm’s future growth.

But the company faces stiff competition from deep-pocketed rivals, such as Amazon and Google. Jefferies, an investment bank, reckons Azure will chalk up around $5bn in sales in 2017, or 21% of the market—an impressive sum but far less than Amazon Web Services, with 71%. Investors will be looking for clues as to how much new cloud business Microsoft has won. When expectations are great, even good results can disappoint.


What will business technology look like tomorrow?

13. July 2017

Date: 13-07-2017
Source: The Economist
Subject: A new way to work

Two experts from MIT analyse the business implications of our digital future

Machine, Platform, Crowd: Harnessing our Digital Future. By Andrew McAfee and Erik Brynjolfsson. W.W. Norton; 402 pages; $28.95 and £22.99.

IN 2014 Andrew McAfee and Erik Brynjolfsson of the Massachusetts Institute of Technology published “The Second Machine Age”. The book was a balanced portrait of how new digital technologies were poised to improve society, even as they increased unemployment and depressed wages. In their latest work, “Machine, Platform, Crowd”, the authors seek to explain the business implications behind these developments.

Mr McAfee and Mr Brynjolfsson believe that the latest phase of computers and the internet have created three shifts in how work happens. The first is artificial intelligence (AI): a move from man to machine. In the past people worked with computers and, at the same time, were augmented by them: what the authors call the “standard partnership”. But that model is breaking down as computers improve and take more control.

You need only look at self-driving cars, online language translation and Amazon’s prototype cashierless shops to see that something big is happening. Digital technologies used to be applied to information—first numbers and text, and, later, music and video. Now, the digital technologies are invading the physical world.

For instance, designing a “heat exchanger”, a part in appliances like refrigerators, means balancing many different specifications and constraints. Humans settle for one that works well enough because to find the optimal one is too hard. But new “generative design” means AI-infused software can run zillions of tiny permutations to find the best possible design—one that a human might not come up with. And with 3D printing, those designs might be shared, modified and manufactured anywhere. Read the rest of this entry »


A CEO’s Guide to Leading Digital Transformation

9. June 2017

This article is part of an ongoing series exploring changes in the workplace and in the nature of work. The first piece explored 12 megatrends, such as automation, big data, demographics, and diversity, that are revolutionizing the way work gets done. Subsequent publications will explore digital governance, talent, and culture.

The success of a transformation depends on an organization’s leaders, especially the CEO. In digital transformations, the CEO is even more critical because of the magnitude of change, the degree of disruption, and the power of inertia.

Digital transformation requires new ways of working, not just new technology. The scarcest resource at many companies is not necessarily technological know-how but leadership. Leaders need the ability to sift through an avalanche of digital initiatives, manage accelerating innovation cycles, and reshape the organization around new approaches such as agile.

Here are five golden rules of digital transformation for CEOs to follow. Read the rest of this entry »


Jeff Bezos: the ‘obsessive’ Amazon founder and world’s next richest man

3. June 2017

Date: 03-06-2017
Source: The Guardian

Bezos, whose wealth has risen by $20bn in five months, could take Bill Gates’s crown within days if Amazon shares keep soaring

 Jeff Bezos founded Amazon in 1994, the early days of the internet, selling books from his garage in Seattle.

Just a few dollars more on the Amazon share price and the world will have a new richest man. Jeff Bezos, the company’s founder, is on the brink of overtaking Bill Gates to become the wealthiest person on the planet.

Bezos, 53, has been having a very good year. His net worth has risen by almost $20bn (£16bn) in the past five months to $85.2bn, putting him just behind Gates, the co-founder of Microsoft, who is valued at $89.3bn, according to the Bloomberg Billionaires Index.

Bezos’ fortune has soared thanks to a sharp rise in Amazon’s share price, which has gone up by one-third so far in 2017, valuing the company at $475bn and Bezos’s stake of roughly 17% at more than $80bn. If Amazon shares continue to rise at the same pace, Bezos will become the richest person in the world within days. Read the rest of this entry »


Companies Look to Make a Quantum Leap With New Technology

7. May 2017

Date: 07-05-2017
Source: The Wall Street Journal

Volkswagen is among a growing number of firms experimenting with quantum computing to push their businesses forward

Companies have started to tap into quantum computing, like this D-Wave 2000Q System, in an effort to gain a competitive edge.

Quantum mechanics has fascinated, confounded and even alarmed scientists for nearly a century with the notion that particles can exist in two states at once and communicate with each other across vast distances. The underlying science that Albert Einstein famously called “spooky” could soon become one of modern computing’s core tenets.

Computers that utilize quantum mechanics are moving beyond pure scientific research and inching toward the commercial sector, with companies such as Volkswagen AG beginning to harness their unprecedented power to solve complex problems in nanoseconds.

“This technology is not futuristic,” said Martin Hofmann, Volkswagen chief information officer, who oversees information technology for the group’s 12 brands including Audi , Porsche and Bentley. “It’s a question of years until it’s commercialized, and investing right now in the technology is a big competitive advantage.”

Companies including D-Wave Systems Inc. and International Business Machines Corp. have been pioneering quantum computing, and experts say that within five years the technology could be powerful enough to solve new classes of problems that are currently beyond the grasp of even supercomputers. Read the rest of this entry »


Harvard Business School risks going from great to good

7. May 2017

Date: 04-05-2017
Source: The Economist: Schumpeter

A confidential memorandum of warning to its senior faculty

YOU will all be aware that a book has just been published about our institution, Harvard Business School (HBS). Entitled “The Golden Passport”, by Duff McDonald, it makes a number of unflattering claims about the school’s ethics and its purpose. While often unbalanced, it is likely to galvanise hostility to HBS both inside Harvard University, of which we are a part, and among the public. This memorandum, circulated only to the most senior faculty members, assesses HBS’s strategic position.

Our school has been among the country’s most influential institutions since its foundation in 1908. Our forebears helped build America’s economy in the early 20th century and helped win the second world war. HBS educates less than 1% of American MBA students but case studies written by our faculty are used at business schools around the world. Our alumni fill the corridors of elite firms such as McKinsey. Many bosses of big American companies studied here. Even in Silicon Valley, where we are relatively weak, about a tenth of “unicorns”—private startups worth over $1bn—have one of our tribe as a founder. Read the rest of this entry »


The new status symbol: it’s not what you spend – it’s how hard you work

24. April 2017

Date: 24-04-2017
Source: The Guardian

The rich used to show how much they could spend on things they didn’t need. Today, a public display of productivity is the new symbol of class power

Apple CEO Tim Cook says he starts each day at 3.45am, while Yahoo CEO Marissa Mayer had talked about her 130-hour workweek.

Almost 120 years ago, during the first Gilded Age, sociologist Thorstein Veblen coined the term “conspicuous consumption”. He used it to refer to rich people flaunting their wealth through wasteful spending. Why buy a thousand-dollar suit when a hundred-dollar one serves the same function? The answer, Veblen said, was power. The rich asserted their dominance by showing how much money they could burn on things they didn’t need.

While radical at the time, Veblen’s observation seems obvious now. In the intervening decades, conspicuous consumption has become deeply embedded in the texture of American capitalism. Our new Gilded Age is even more Veblenian than the last. Today’s captains of industry publicize their social position with private islands and superyachts while the president of the United States covers nearly everything he owns in gold. Read the rest of this entry »


Amazon’s Jeff Bezos Outlines How He Tries to Keep Retail Giant in Startup Mode

13. April 2017

Date: 13-04-2017
Source: The Wall Street Journal

In a shareholder letter, Mr. Bezos stressed the importance of putting customers first and staying nimble

Amazon.com CEO Jeff Bezos earned a base salary of $81,840 last year, and because of his large stake in the company, has never taken stock-based compensation.

Amazon.com Inc. Chief Executive Jeff Bezos says he recently thought a new show the Amazon Studios team was considering was too boring and complicated to produce. But he gave it the green light anyway because the team thought it had potential.

Mr. Bezos told his team, “I disagree and commit and hope it becomes the most watched thing we’ve ever made,” he wrote in a shareholder letter published Wednesday. “Consider how much slower this decision cycle would have been if the team had actually had to convince me rather than simply get my commitment.”

The letter, an annual exercise, offers a window into Mr. Bezos’s management philosophy, describing how he can disagree with employees but still back their projects, as well as his opposition to relying on market research and other core company tenets.

Amazon also released data on compensation, which showed Andy Jassy, who runs the Amazon Web Services cloud division, was the top earner at $35.6 million last year, including stock awards. Read the rest of this entry »