Platforms, the Sharing Economy, and Business Model Innovation



so you guys have all know about the Industrial Revolution where we talk about how we're now going through another Industrial Revolution I think we are going through a transformation that is as profound as deep and as impactful as the Industrial Revolution which happened 200 years ago but most people don't really understand what an Industrial Revolution is right most people think that Industrial Revolution is really all about investing a whole lot in capital in order to make labor more productive that's the traditional story and that sort of lay behind all the development economics for many many decades you know throw a lot of capital at a problem and that will make labor more efficient and I want to explain that it's actually much more complicated than that and much of what happens in industrial revolutions is about making capital more effective as well as making labor more effective through not just technology but new organizational forms so this is the technology that everybody points to as the source of the Industrial Revolution and technology is very important right I mean we have technology now that's transforming everything but it's really I think if we don't organize and you don't organize your business adequately you can never take advantage of this technology so Adam Smith wrote this book about the Industrial ushion and he talked about the pin Factory okay what the heck was the the pin Factory the pin Factory story was about how originally you had these craftspeople that would build things like pins or shoes and they would do the entire process from beginning to end so they'd take a sheet of metal that roll it out and cut it in little pieces that sharpen the tip if it did flatten the top put it in a box and then sell the box okay the next step was something called the putting out system where instead of having one craftsperson do the entire process they would split up the production right then a division of labor where one person would roll the metal the other one would cut it into little pieces the third person would sharpen the tip and the fourth person would flatten the top okay now this is an advantage because it reduces the amount of human capital that's needed because people can specialize and this is the part that most people focus on when they read Adam Smith but I think the more important thing that happened was when they took all of these people from the little huts and they brought them together into a central location and this is what's called the factory system okay why is the factory system so important it's not simply because you now have this centralized power source right they can fuel these machines rather it's about how the amount of capital necessary to produce this box of pins goes down okay how does this happen well before the class person had to own all of the equipment right so the equipment was being used only a tiny fraction of the time because you'd have a hammer you'd use the hammer you'd set the count hammer side then you'd go over and start using the rolling equipment right and then you'd set that aside and you'd go over and use the sharpening equipment right so the capacity utilization of the physical plant was very very low in addition right with with a process like this you had massive inventory levels right so each Hut you'd have these people working on the product okay and then the amount would stack up until someone came and picked that up and moved it over to the next Hut what happens in the factory system is the minute you finish working on an item you pass it along to the next person who passes it on to the next person so when I was a kid I worked in a factory as a bundle boy and this is what we did right you'd go around you'd see a stack of clothing right unfinished jackets you'd bring it over to the next station that add on the sleeves okay and then when that's tacked up to the right-hand side of that seamstress you'd pick them up and bring them over to the person who put the buttons on and so the amount of inventory goes down all right so the amount of capital that's needed in the industrial situation is actually lower than the amount of capital that is needed under the old craft system and the old putting out system it's about reorganizing the production process not simply about introducing technology so this is the technology that we have now right it's the phone or more importantly right it's our server farms so how is this technology being exploited through new organizational forms so I teach a course on data science and data strategy which is all about how companies use technology and the lesson from my core strategy class is that every company is a technology company a couple years ago we transitioned that and we started to say that every company is a software company so here we have an airline this is Delta what kind of business is Delta in or I should say United right what kind of business is United in we think right we think of it as being in the airline business but in reality these are technology companies these are software companies so imagine the following situation you've got a plane that's supposed to go from San Francisco to Los Angeles and there's a mechanical problem with that plane now in the old days what would happen is they would just tell you sit here and wait until the plane is repaired now what happens is the airline says we could take a plane that's bound for Las Vegas and reroute it to Los Angeles ok now what should we do so we tell the people on the way to Los Angeles to wait we should tell the people on the way to Las Vegas to wait so you have to think through first of all how many people are on each of these planes how valuable are these passengers what's their lifetime customer value right how much do they pay for these tickets how many of them live in San Francisco and how many of them are gonna need to get hotels to spend the night ok but it's not just that if I take a plane that's supposed to go to Las Vegas and idle a it then where is it supposed to go after it left Las Vegas I have to do the same exact calculation on all the passengers that are impacted throughout the entire right Ripple's set of ripples that comes from my choice but it's not just the passengers it's also the pilots right so the pilots if they get delayed they may not be able to fly because they don't have enough sleep okay so I have to factor what's going to happen to those pilots and then what about the the flight staff the flight staff needs to ultimately make its way back to where it's going to sleep at night and so I have to think through how I'm going to reassign all those workers so this is an extraordinarily complicated calculation that has to be done and you to be done by humans right and there's no way that a human can possibly think through all the ripple effects right in terms of impact on customers impacts on pilots impact on equipment right impact on repair times and so we now have this all done by software that calculation happens instantaneously and then the computer says drag that guy out of the plane right okay oh so I I think they might have gotten some of the costs or going you know in that in that calculation right okay here's another company and if you were here my talk last year I talked about this write-ups what kind of company is this right we just know it's an e-commerce company which is now it is a software company right it's a supper company they spend a billion dollars a year on software okay so there's an example when I talked about last year imagine that you're a driver for UPS and you wake up in the morning you go to work and they tell you here are 120 packages that you have to deliver today okay how do you decide how to deliver those 120 packages right well in the old days the driver would be an expert okay they would understand the routes that would understand the locations understand the one-way streets okay the traffic patterns and so forth and then they would select but this is an extraordinarily complicated problem right how many different ways are there to deliver 120 packages how many different ways a million two million okay well if this is the total age of the earth up here 145 I don't know what that is in seconds this is how many ways you can deliver 120 packages okay this is called the Traveling Salesman problem right you might have learned about it back in business school it's a very very complex problem to solve but it's even more complicated for the u.s. UPS driver because they have certain delivery constraints right you can only pick up certain packages at certain times you may have certain customers that want to have a specific delivery window etc and so we're asking this human being to make this decision right and now we have software so UPS invested three billion dollars on software whose main goal of which was to solve this this problem and so now we have algorithms that do this ok so just quick quiz which one do you think is the computer and which one do you think is the human okay that's the human that's the computer and you might think well what's the big difference well if you can get the 10% if you can shave 10% off the amount of time that you spend delivering these packages that's 10% less fuel that's 10% wear and tear on the truck that's 10% labor less labor and the people get their packages 10% earlier and that is worth hundreds of millions of dollars and that's why UPS gets a positive ROI on this software investment but the thing is they don't just use software to route package packages they also use software in their sorting facilities right at the hubs they also use software to figure out where the boxes on the pack where the boxes ought to go inside the truck right on the top shelf bottom shelf front back and what are they doing they're calculating right to costs and benefits which might include injuries to the truck drivers so if you put the heavy packages down below you have more back problems more work outages and you've got a cost associated with that okay so UPS knows where all of their packages are from the minute I pick up to the minute of drop-off and this has a huge impact right on their cost structure okay what about Walmart what kind of company is Walmart it's a software company you guys now know the answer I ain't okay and in fact they've been Aly in this field since long before Amazon existed these guys were a leader in this field right they have an extraordinarily sophisticated logistics operation they use a hub-and-spoke system just like the airline just like right ups right they use this cross docking okay which all the stuff comes in all stuff goes out and and what they're really trying to do again is to exploit not just their labor but their capital more effectively okay so how do they do it they've been using point-of-sale data capture since day one so when a customer goes in and they buy a box of diapers okay it the barcode is scanned that a piece of information immediately goes back to the hub and so they have people packaging packing diapers onto that truck for next day delivery and the amount of diapers that they put on that truck today depends on the amount of sales that that store has had today and the goal there is to make sure that you have the the smallest amount of inventory right passing through this pipeline and the minute you put the package on write on this truck for delivery from the hub the hub that is also going to place an order to get new diapers into the warehouse for subsequent delivery okay and of course you can track all of these shipments in real time using RFID okay so this is how Walmart was able to become the lowest cost right retailer in the United States was through data capture and through analytics doing the kind of optimization that you've learned about right in business school many many years ago so that you have just in time everything okay so the problem for retailers here has to do with the inventory inventory is extraordinarily expensive this problem was solved back with the introduction of the factory system back in the day it was all about inventory reduction if you have too much inventory then you've got a major problem now if you look at most of these retailers these legacy retailers their inventory to sales ratio is huge stuff it's just sitting around doing nothing if you've got stuff on the shelf you got stuff on the warehouse you've got to pay interest on all that stuff but it's worse it's not just that you have to pay interest on it it's declining in value even if you think about something that like a watch that physically can last forever it's still declining in value it's still a perishable good why is it a perishable good because you manufactured it at a moment in time when you thought the customer wanted it okay and that moment starts to pass almost immediately and by the time you get it to the store into market the customers preferences may have changed so we see inventory right in all of these different industries we have all of this inventory and the inventory is just eating up all of our of our capital okay so to give you an example of how some companies are doing well and some doing poorly let's think about our local companies a gap right over here work at the gap and buy your shop at the gap okay so how long does it take the gap to get a product from the moment they start designing it until it hits the shelves all right so the design team sits down area what should we do let's make some sure it's what color should they be what should they be made out of raw baba and then you know sometime later it makes its way to the shelf how long does it take for a company like the gap seven months seven months okay now what about a company like Inditex right the company behind Zara how long does it take them okay let's see so this thing of the Wall Street Journal day one well let's design it day one through five or they start prototyping it right day five they got it all that's got the thing in CAD right in the software okay then they start printing it out day 5 to 7 to 8 to 17 they're making it to 1821 they're putting a price tag on it 21 is shipped 22 it's in shipment 23 24 it's in the store okay so 24 days versus 7 months okay now on the one hand right you've got 7 months worth of work in process inventory that you're paying interest on okay that's that's a problem but the bigger problem is that by the time it gets the store people like whoa that's so whack that's 7 months all I don't want to duh right so what do you have to do with it if you're the gap then you have to start discounting it and then you have to start you know giving it away and then sooner or later it winds up in a container ships going over to Africa right like all the shirts from the losing Super Bowl team right ok and and so you know that's just wasted well if you can respond if you know hey the customer wants this then you can go and make it and you can get at the market before the customers preferences have changed ok so this is what you want and of course we talk of manufacturing about stuff like additive manufacturing which is basically made to order right where you can do mass customization so now you know you can walk into a store and they'll scan your body ok and then they'll make the product for you maybe even on the spot okay so retailing is being completely transformed again by having better more timely information about what the customer wants which then feeds back into right a very short development cycle so that there is less wastage of capital ok and of course Amazon right you all know has used automation to reduce the amount of capital involved in this entire logistics process to shorten the delivery cycle to the point where you get delivery within hours of ordering the product so the amount of inventory that they have to sit on the shelf is much much lower and in fact Amazon is now at the stage where they're going to deliver stuff to you before you've even ordered it right now talk about short development cycle I mean that is what I want I'm like huh this looks really interesting boom there it is Wow you know they can read your mind ok so what's the point of this do you remember back at how many of you guys had operations way back you don't remember any of it but if you have remember it you remember little queue model you remember this right it's a trade-off between your holding costs and your ordering costs okay and so you got to figure out well which one should I go for and then you find the sweet spot okay or remember the news vendor model how much stuff do i order I've got a trade off stock costs right versus excess inventory okay the thing about what's happening with analytics data science and data capture and better information is that you can just throw these things out because you don't have to worry about these trade-offs anymore right the unit comes in the unit goes out you don't have to think about these costs the trade-offs are very very different costs okay so the kind of things that you learn in Business School about these trade-offs the trade-offs can change because of Technology both in communications and an organization okay now let's circle back to ups ok so P at ups does a lot more than simply track packages they also track their trucks right so they have sensors all throughout the trucks which communicate with the cloud now what do they do with these sensors and this is basically an example of Internet of Things you guys have all heard about the Internet of Things we have so many devices connected smart meters smart washing machines smart refrigerators fitbit's you know a zillion different computing devices and so forth right I've even you know you how does that boat launch yesterday and one of the final contestants was for the connected breast seriously okay so you can actually monitor how much milk your baby is consuming and you can put on Facebook and everything else in Co true I'm serious and so and you know there's a lot of medical applications there but you know there's connected cows there's connected III know people that have a connected horse so they're sitting at work and the conceder horse wandering around in the field my raw horse is doing good okay so you know you can connect this about anything right but but the applications here not just in the personal space but in the industrial space are enormous right they're huge so General Electric I talked about this last year but I want to really flesh this out right General Electric has undergone this massive transformation in the last couple years it's gone from being an industrial equipment company to being what a software company yeah now how did this transition happen right so the legend is that Jeff ml wakes up one day Lowell or a software company now of course not the transition is gradual and step by step so when General Electric sells something like an aircraft engine and they sell more than aircraft engines they sell drill bits they sell locomotives they sell windmill turbines right they sell MRI equipment so forth when they sell these things they typically sell them bundled with a service contract now they used to also sell them bundled with a loan okay they make money on the financing they've gotten rid of that part cuz doesn't really fit but they sell it bundled with a maintenance contract so if you are in charge of operations at a General Electric right if you're in charge of operations at General Electric what is your main problem your main concern what's the number-one cost that you have to bear if you are in charge of operations at General Electric what well it's your maintenance cost it's your maintenance costs right so what happens is the customer shells out you know million dollars or something for the engine and then right they have to pay this monthly fee for maintenance and that does not vary based on the amount of maintenance and so anything that the operations group does is essentially like a cost center okay so they're trying to reduce the cost now here's the they would send out these maintenance teams to visit the engines right periodically they'll have a maintenance schedule kind of like you when you take your car into the mechanic what is it like every 5,000 miles for oil okay now the problem is that half the time the maintenance people get there they look at it and uh you know it looks good nothing needs to be done and then they leave okay the other half of the time to get there and the engines like falling apart and after replace half the parts because you know ah dang if we had gotten here a week earlier we could have repaired this thing okay so what's the operational decision that the maintenance group is faced with well it's a trade-off right so think back to the eoq you model or the news vendor model this is classic operations I've got to compare the cost of arriving to early with the cost of arriving too late okay and I've got a mean and a standard deviation okay and using the mean and standard deviation of like when the the engine needs maintenance I'm going to you know stagger my my deliver my my business so as to reduce the overall cost okay so if your view of operations is sort of 1.0 it's all about those trade-offs if it's 2.0 it's about getting rid of those trade-offs altogether like D none of the above right do I ride too early or do I ride too late well how many of you arrive at exactly the right time I did what do you ever think of that so what would you need to know in order to arrive at exactly the right time what piece of information would you like to have but you'd like to be able to track right the degradation of the engine in real time okay now unless you can't strap a guy to the engine and have them pure in you know while the plane is flying so the next best thing would be to put sensors all through the engine right so General Electric now has installed literally tons of sensors in every engine which pick up pressure which pick up temperature which pick up right wind speed everything else right which gives them the ability to monitor the health of the engine maybe not in real-time I mean it does still gets batched right more or less every hour or so okay and in fact what they're doing is they're constructing kind of digital twins of these engines in in their servers and they've announced that they're going to buy like tens of milk it's something like 300 million servers I think about that that is just so insane I can't even think about it it's so insane right I mean I can't that is that it just goes beyond belief to think that they could use that many servers but why because the amount of information that's being generated by these engines is astronomical right astronomical I mean they're they're giving out like 2 terabytes an hour right and if you multiply that by the number of engines on the number of planes and the number of lights it is an astronomical amount of information ok and so with this information what they can do is reduce these maintenance costs to a very very low level ok and they want to do this for all of the equipment that they have but not only that right not only that right that's not it it's not just it right because what else can you do now if the Operations Group is sucking in all this data for optimal scheduling of maintenance if that was the end of the story like this would be ok that's interesting that's cool and operation geeks would be all over it but the bigger impact is what happens when the marketing group gets ahold of this data all right so if you're in the marketing group and you're like wow you mean to tell me you know how all of our customers use the product you know how often they fly where they fly when they fly right what the altitude is etc if I'm marketing and I know how my customer uses my product then I can start charging them differentially right I can say hey if you're flying at high altitude versus low altitude that has differential impact on maintenance ok if you fly a lot of short hauls versus long hauls that is a differential impact on maintenance if you fly through desert environments or through ice environments or through you know like JFK where you fly through seagull environments or geese environments all right that's going to have a differential impact on maintenance and so what I can do is I can vary the price okay I can vary the price based on how you use the engine okay so now we're talking about transforming the business we're using a very very different business model because now I'm not selling engines if I'm General Electric I'm selling engines as a service right I'm selling thrust right I'm no longer in the products business I'm in the service business okay but I don't just sell service like access to the engine I can now bundle access to the engine with advice on how to use this engine better so you know hey I've noticed that you're using this engine in a way that is not fuel-efficient maybe if you do it this way it'll be newer more fuel-efficient you see how this works okay so what this is doing first of all is right showing that software is essentially taking over the world right you've heard this phrase Marc Andreessen did it said it's about five years ago okay but it's worth repeating software is is eating the world okay now look if you're in general electric and you're trying to expand this idea how would you do it so right now I'm selling you analytics on how best to use the engines so that's only one part of the plane they're all these other parts of the plane and so if I could get information about the rest of the plane then I could provide you with advice not just on how to use the engine but on how to use the plane so I'd like to do is I'd like to suck data from the wings of the plane right and from the cockpit of the plane right and from the lavatory of the plane pretty much from every piece of the plane and then it can provide you with even more advice and better advice because what I'm going to do is I'm going to suck in all this data from all these planes and we run analytics on it okay and then I can back to you advice on how to use this plane okay now of course that creates a problem because Boeing also wants to get into this business and Boeing also wants to you know give you advice on how to use the plane and so so Boeing might be reluctant to share their data with General Electric and General Electric might be you know reluctant to share their advice with Boeing and so this poses a whole different set of problems which we can talk about in another context okay but the idea here is that from the company's perspective its selling a service instead of a product but think about it from the perspective of the company on the other side so now as an airline okay I don't have any cop acts anymore I now have op X right I don't have fixed costs anymore I have variable costs now what does that do I mean it's a huge hugely impactful okay so what does this do so look how many of you guys took accounting classes when you were here at Haas right okay now accountants spent an enormous amount of time dealing with fixed costs right how much did it cost you to drive how many of you guys drove here today how much did it cost you to drive here yup no idea all right so if I said you which is cheaper taking it over or driving your own car to Haas would you be able to answer that question right what most people do is they well the toll of $3 right $6 toll $6 and now you boobers like $8 I'm taking the car right okay because you have no way of knowing what what the value of your car is before and after so if I go back in history in the old days the merchants who sent ships off to India they had a very interesting way of solving this problem all the merchants would get together in the coffee shop in London they would all pitch in money they would buy a boat they would buy a bunch of like woolens or whatever English were exporting at the time they would send it to India they would sell the woollens they would buy pepper or the cinnamon bring it back to London sell the cinnamon fella pepper sell the boat and then divvy up the proceeds among the partners okay so why did they do this because they didn't have any accountants right because they didn't have any accountants they could figure out exactly how profitable that mission was and how that journey was because they started with a pile of cash and they ended with a pile of cash and then they would say okay by now or later like now let's go do another journey to India oh shoot we gotta buy the boat back hey we just sold the boat now we got to go buy it back all right and so they said this is kind of silly what if we just kept the boat and use it you know two years in a row okay now and then sell the boat if you sell the boat after two years again you start with cash in with cash but then if you're trying to figure out today did I make them up where did I make the money did I make it on the first mission or the second mission you're missing a critical piece of information right which is how much the boat was worth between the first and the second mission and the only way to really find out is to actually sell the boat all right so this is a problem with fixed costs and this is why God invented depreciation hey and so what does depreciation depreciation is like you know I'm just going to pick some random schedule out of the sky and I'm going to use it and assume like gonna kind of assume the boat is worth half as much after the first mission okay but if there's no connection to reality now of course accountants have been they're a little more sophisticated now they use something called ABC right which is codes call it which stands for activity-based crap okay sorry I know there's accountants out there you got to doing your best okay what if we can't wait a fixed cost and we replace them completely with variable costs so instead of buying the boat I rent the boat okay I get rid of these accounts so I'm kind of red my operations people I got rid of my accountant people okay everything is now a variable cost so if I'm United Airlines and I'm trying to figure out okay how much is it going to cost to fly this plane from Los Angeles to San Francisco okay I'm gonna get a line item I got a line item for the amount of peanuts that I gave out add a line item right for the amount of salaries I had to pay for these different people and I also have a line item from the engine which tells me exactly how much the engine cost to use on that flight segment so now if I do cost-benefit analysis and I tell album should I go to Las Vegas or should I go to Los Angeles well the engine bill will be slightly higher if I do this rather than this so imagine that every time you drove your car right down to you know Mountain View from Berkeley you know your phone once that's gonna cost you like $8 okay well we have that it's called uber right it's called uber right if you own the car then it's very difficult to get that okay so you know having these you know turning having these these telematics and cars is changing how we think about driving so your PS I mentioned you know they can track their drivers they can figure out whether the drivers are idling or going backwards or making left turns and stuff like that okay and so you know cars now are becoming connected cars and this is transforming thing so think about Tesla's again there's another thing that I talked about motor class you know what business is Tesla in there yes you got a skip so many steps right so you know five years ago as a technology company yeah it is and what are they making well they're making electronics equipment and inside like yeah okay so that's an a answer five years ago if you said they're a car company bird you fail so they're an electronics company about yeah good nay now if you come to class and you say it's an electronics company it's approve you fail no they're a software company right you buy this car now in the old days if you bought a car and you're like oh wow dang this year they have power steering they didn't have that last year what do you have to do get to buy a new car now Tesla introduced in something like oh we've got the new parallel parking feature get to buy a new Tesla no you downloading right you download it and you update it okay so each of these little features and services right can be acquired individually right and updates can happen in in real time okay so what's this doing what's this what's the impact of this now it's going to have impact the the size and shape of the firm so I'm very interested it's like how for in business strategy you know what do these firms do okay so I was giving a talk a couple of couple weeks ago at the National Auto Dealers Association okay and so these are people who basically stand between the auto manufacturers and the customer okay so what are they doing what's their value add their value add is they understand the local market they understand right the individual customer because I can look them in the eye and figure out like what they're worth that can provide all this you know servicing and so forth and so on okay so what's their future look like grandma wasn't really a particularly popular talk as this conference right but hopefully some of them sold their dealerships the next day and I'll get a thank you letter in 20 years because right if you think about these dealers and what they did right and you now think about what those dealers are doing right what does Tesla do you don't need to go to the Tesla dealer and then drive out with the car you go there and you take a look at it maybe you take it for a spin and then you go home and you order it order on your phone before you even leave the Tesla Department and then the Tesla drives itself to your house and you find it at home waiting for you right before you get home so we don't need to have write these dealers because they're not really adding any additional informational value that you can't get through a direct relationship with the customer again that's a different topic but think about the impact on inventory so these dealers are sitting on massive massive amounts of inventory you know they buy them from Ford and then they try to sell them right what's Tesla's approach sell it first and then you build it right so you shorten the development cycle you eliminate the inventory and your use of capital is much much more efficient okay so these cards now are coming with all of these sensors and so again before we have completely autonomous cars that nobody owns people are still going to be buying cars I mean I think you know in the future before it's probably the next ten years I have three cars there I never really drive driving that often because I'd ride my bicycle to school but I've got these three cars 83 91 2004 and we know within the next 10 years I'm going to keep them out in petaluma with my three horses and I'm gonna run out there and drive them around for fun and then uber on back because like what the heck am I gonna need them alright I have no idea what I'm gonna need them for except real fun I mean I enjoy driving but I don't enjoy sitting in traffic going down a mountain view so I'm gonna put them out in the country with the horses okay so but here's the thing this is opening up so many different possibilities if you are a commercial trucking company right now every one of your trucks are connected and what you can do with that information is not just optimize routes but also you can monitor the way the drivers are driving like UPS does okay now once you can do that and you can get these safety alerts like oh yeah this drivers driving too fast and you could text them and say hey stop driving so fast go take a nap or whatever okay but but still that's a difficult calculation for you to make as a trucking company to figure out you know if I tell this this guy to slow down right then my delivery time will be later and I might have to cut my prices with my customers and I'm going to save money on accidents how much money am I going to save on accidents I have no idea I have no idea how many how much I'm going to save because accidents are very sporadic they don't happen that often okay but who does no insurance companies right this is the reason why insurance companies exist they don't exist primarily to spread risk that's what sort of b2c concurrence companies do is they spread risk but b2b insurance companies make no sense economically right because if I'm if I'm Chevron and I'm buying insurance on all my tanker fleet ok so that if a tanker blows up I get a check from an insurance company why the heck would the stockholders support that if I'm a stockholder all it means is I get a check from one of my S&P 500 companies to another one right it's it's a wash so the only reason why you would actually go to an insurance company is because you want advice and what the insurance company will tell you is hey you know you ought to put these speed regulators into your tankers and if you do that we will give you a lower insurance price because what the insurance companies do their job is to convert fixed costs into variable costs their job is to convert right sporadic unpredictable costs into a smooth even cost because you can't do right ROI calculations or NPV calculations unless you have the right numbers and what their job is is to provide you with those numbers because they have the expertise they have the data ok and you don't because if you're an oil company your expertise is and getting oil out of the ground it's not in predicting accidents in your fleet ok so this is why and you know they have all these different technology out there that can be used to monitor driving so this is what I think is going to happen right with things like cars you know how I have one of these things in my cart where it tells me exactly how much fuel economy I'm getting and so when I'm driving uphill I go down to the group and I Drive fast in a low gear it's like and then when I go like you know I'm coasting it's like a good pie right so if I made you sit in regulating my fuel consumption I pay attention to this thing nobody does apparently but yeah you know it's there if you want it so I think what's going to happen is we have insurance rates right in real time right so instead of batch processing like oh you had an accident last month your insurance rates go up it's like you start driving like an idiot and your church rates go up in real time right because if there's a disconnect between the behavior and the cost it's not going to really you can't be incorporate into your decision-making but if I get real-time feedback and a minute I start veering off the side of the road okay it's and I don't care if I live or die but if my insurance rates are going up I don't want that to happen and so we'll see this in all sorts of businesses what will happen if you're a company right and you have a credit line with a bank instead of every year or going back to the bank and renegotiating that credit line and saying well here are my financials from the last 12 months right spent three nights did three pull the pulled an all-nighter cranking out my 10k and everything right you just give the bank access to your enterprise software and then the bank will give you a credit line in real time right so you know you make a stupid investment you know your BlackBerry you double down the next BlackBerry your credit line Gogi right the minute that announcement is made okay so your credit line your interest rate will vary in real time so you know imagine you board a flight for Las Vegas you know you wander into the MGM Grand okay you get a text on your phone it's like your insurance rates just went up because now we know you're a risk seeker okay no okay you know you go to the doctor and you get your heart examined your insurance rates go down okay and so we're seeing that not only in sort of Property and Casualty but even in personal health rate people are willing to share this information they want their insurance companies to know if they're engaging in healthy behaviors if you exercise about healthy food and in some countries there are insurance companies that are actually doing this they're tapping into your food purchases or tapping into your exercise and your Fitbit data and then adjusting your insurance rates accordingly in order to reward you because look when you you know when you when you go out and and and and you know do something crazy you know you got starts you know smoke and cigarettes or whatever you know that the idea of like death is is distant but if you know the minute you grab for that pack of cigarettes you notice your insurance prices just went up then you can actually do the cost benefit in real time okay okay so this is one of the things so that's that's changing the way companies are organized so let's circle back to this idea of how do you make maximal use of your capital and this takes us to the story of uber of course right so again there's lots of origin myths for all of these stories but the founder of uber I remember back in you know the I was in New York in the late 2000s and I remember looking out the window and seeing all of these black cars sitting there during the day these guys would drive executives to work in the morning and they would pick them up at night and then what would they do during the day nothing nothing they would sit around and talk about you know politics play chess okay whatever so what's the capacity utilization of these cars it's very very low now if you're an Operations person or a finance person you know you look at that and you say this is just a total waste anytime you see idle capacity it pains you inside if you're a finance person okay now look this is would be the origin of uber if I were the founder of uber it would be pain resulting from excess capacity in the world the real origin is looking for a car and there's no car so what we have is we have excess supply and excess demand and the wait a second in economics you're not supposed to have excess supply and excess demand simultaneously why because it's supposed to be a market which clears these things but in order for there to be a market people have to be able to communicate right the sellers and the buyers have to be able to communicate with each other okay so communication is all the information and the lower information costs lower communication costs this gives rise to markets that were too costly to implement in the past okay so when you're driving to work when you drove down here and your car Chris what was the capacity utilization of that car 1/4 does that hurt you every single day when you get in that car and you look behind you and you're like excess capacity right if you were the CEO of your own individual personal family corporation you would be fired right now right because if I have a factory that's it and I'd almost seventy five percent of the time okay I'm going to go out of business and so this is a total waste okay and this is the solution right this is the solution whether it's lyft or uber or blah blah car or any of the other right marketplaces for excess capacity okay that was the original idea of course now we have new capacity flooding in because we now have this feedback loop but originally the idea is excess capacity now once you understand this and you start looking around you like wow where is their excess capacity think back to the craft production system the guys using the hammer only 25% of time and then he moves on what's happening to hammer Melton you can get together with three of his buddies and they all come together then all of a sudden they can pass the hammer to each other okay so we now of course uber has ride-sharing and ride sharing is yet another way of exploiting this excess capacity once you have these cars in the system okay and and this is this is having a huge impact of course uber I now take uber pool most of the time because it's so much more cost effective and they have algorithms that determine right the trade-off between you know a longer ride which leads to less customer satisfaction and the lower use of cost so look the number of uber drivers the United States is expanding very rapidly this is the latest data which is already 2 years old but it's going through the roof so another company that does an insta card so I had the chief data officer for instacart come and speak in my class this past spring and you know what's the problem that they're trying to solve I mean how much how much does it cost you to get groceries you go in there you pay $60 on groceries and then you walk out how much did it cost you to get the groceries well you've got not only the wear and tear on your car what about your time right so if you're making 450 bucks an hour as a lawyer and you spent an hour ago in the grocery store okay that's a very expensive grocery bill so if I can get somebody else to do it that's going to be beneficial to my time okay embed it better for capital so what instacart what they're trying to do and the reason why they can make it so cost-effective is that they don't just simply have a single shopper who goes and picks up a single bundle of groceries and takes it to a single drop-off point and then goes back to the store instead what they do is they do multiple pick ups and multiple drop-offs and so you need an algorithm that can actually match right the orders with the drivers or shoppers as they call them okay and so this is a complicated complicated algorithm and you know as a data scientist in a company like this you explore these trade-offs okay and so again this should remind you of a basic operations class where you know if you utilize your your drivers or your shoppers you know to aggressively typically that means that you're going to miss a bunch of delivery windows okay and if you try to satisfy the customer by getting into those delivery windows 100% of the time then you're going to lose out on the economies of pooling these pickups with the drivers okay and so here's your trade-off but here is a beautiful thing about analytics and what analytics enables you to do is that it enables you to avoid to stop thinking about you know this static trade-off and start taking those trade-offs and pushing them right in a direction that takes you closer and closer to having your cake and eating it too okay that's what data scientists are good at so ultimately I think what we'll see in the world of Transportation is all this excess capacity which you see all around you on the highway in the parking lots and everywhere else which represents a lot of our GNP you know a lot of times we compare the wealth of countries by comparing GNP and we said well we have all this GNP you know one of the problems with that measure is that like if everybody got sick tomorrow and had to go to the hospital that would increase GNP and if we have a hurricane that destroys like property and we have to build new property that increases GNP there everybody has to buy a car but sits idle 90 percent at a time that increases you know GNP at least immediately in the short run okay but if we can get rid of all this and get rid of all this excess capacity right we'll free up resources for so much else so again I'm going to be been on a plane like this lately see that's fantastic I remember when I lived in DC they used to have this thing called the shuttle and they guaranteed you a seat on the shuttle which meant that if the shuttle was still filled up and you're the one person that didn't get a seat they would whip out another plane just for you right and I remember flying Air France that was the Trump shuttle right anyway I remember flying from Paris to Philadelphia on Air France and it would stop in New York drop off pretty much all the passengers except for me and then I would fly a 747 alone from New York to Philadelphia you know giving that the trees on the Turnpike right okay that is extraordinarily inefficient extraordinarily inefficient excess capacity capacity utilization when it's low it kills me it causes pain so what the airlines have done much to the grief of many passengers has been right to increase the capacity utilization across the board through better analytics okay so we look around the world we see excess capacity everywhere let me see excess capacity you know with steel production look at all this energy right in terms of energy production if you look at PG&E PG&E has to build towers and capacitators that are like 3x of what the average flow of electricity is right to handle surges ok massive wastage of capital right we think about trucks trucks are driving around empty all the time right you drive out you drop your stuff off you drive back empty ok that's a complete waste ok we can solve these problems with better data ok and this is effectively think about the sharing economy which is the word that's used to describe what uber is doing it's not really quite sharing economy but it's also nothing new so when when I was in graduate school I was studying economic history and people are puzzled they were like the McCormick Reaper is this fantastic machine that boosts productivity and agriculture and yet the optimal scale of a farm to make it cost-effective to buy one of these things was like three times the size of the average American farm so out in Kansas and Nebraska everybody had 106 acres but to be cost effective you need to have like 500 acres to buy one of these things and everybody I can this is crazy these farmers are irrational etc what was going on the sharing economy right the farmers would all get together and buy these Reapers and say you use it on Monday I'll use it on Tuesday use it on Wednesday because if you buy a reaper and you only use it for one farm it's a waste of capital so we're starting to see anytime you look in that room you probably of that room in your basement sitting empty okay excess capacity right and the reason why it was excess historically is because it was there's so many transaction costs involved in finding someone to use it right Craigslist remember this okay home away slight improvement air B&B so much less friction in matching the buyers and the sellers the users and the providers now even parking spot okay this was actually declared illegal in San Francisco right sharing parking spots but once you start looking around you start thinking where is all this excess capacity this suit I wear it once a year at the Haas Alumni Reunion okay what's the capacity utilization of the tube is extremely low somebody else the other 364 days of your why don't I simply because it's difficult to find somebody who could use it in turn looked oh right my mic on have you heard about oh it's a it's a essentially a way for you to rent clothing so you get a box of clothes you wear them to work for three weeks and then you ship it back and then they ship it to somebody else now of course they try clean it you know remove the stains but yeah okay so start thinking about excess capacity well now we have excess we've urban sitter but we have you know get somebody to walk your dog right all through all these on-demand apps this is one where you get people to do various tasks for you 100 they even have one for doctors right it's called scalpel I've heard about that terrible logo right okay but you know if you're a doctor and you're you know you're on vacation and then you know you're hanging out and you're like I could use a little extra work and you know you just sign up and then the hospitals like oh we needed some emergency room person you like okay fine I'll go do that for a Tuesday okay and of course right the cloud computing right so how do we understand cloud computing it's really at its heart not a new concept at all it's all about converting a fixed cost to a variable cost and it's about taking advantage of excess capacity right so if I'm an IT manager and I'm trying to figure out how much server capacity do I need I have to make some kind of forecast about my business needs I mean half the time my forecast is too high half the time it's too low so I have to trade off between having excess capacity that I paid for and I'm wasting or a shortfall in capacity in which case has happened to me a couple years ago I stopped getting email right don't worry mail server full okay so you have to make those trade-offs well if you move to the cloud you don't have to worry about it right because you only order what you need now your whole IT infrastructure is a variable cost you pay as you go right you only pay for what you use now this is true for electricity it's true for water it's true for everything else why shouldn't it be true for something like your IT infrastructure okay and so if you think about all the variability right there's the variability of a typical company right their CPU utilization right over the course of a day or over the course of a month it's varying all over the place so again you have to choose between excess capacity or not enough capacity all right if you think about around the world right there's less than perfect correlation in usage right night and day between UK and Japan right or think about different services like so you know H&R Block had to have or into it had to have server capacity to handle the amount of traffic that they got on for 17 this year you know I don't know that you guys owe my taxes at like 11 o'clock at night okay all right the whole thing would – or they would have to buy so much capacity that would sit around go like this me 364 days a year okay so if you think about whenever you have a surge when we have variability and demand if you can use a variable cost and the only way to make it effective is to find others whose demand is right less than perfectly correlated this simple diversification okay so this is why companies are moving more and more into the cloud so we have of course infrastructure as a service by platform as a service and software as a service where everything is now a service and I remember you know talking to IT directors five years ago they're like what was crazy because you know after all it's in the cloud anybody can go in the cloud and access it was like really you know like you you know you you the person you have in charge is does can't possibly have right the the skill set that someone and Amazon has right so you know this is as if someone said well why the heck should I ever get water you know from F mud when I can just get it from my roof with a with a rain collector it's like nobody does this anymore you just go to the faucet and you get it from somebody who knows what they're doing okay so the way in which no I mean I mean that in terms of like in terms of the cost the lower cost it's going to be lower cost if you send it out to a centralized provider so in the way in which you manage the supply and demand of course is with dynamic pricing and I've talked to I have a whole course where I spent a lot of time on dynamic pricing right which manages the supply in the demand right we know about surge pricing with uber etc instacart does this to make sure that their drivers get that you can smooth out the demand we call it demand and management okay and you know electricity they've been doing peak load pricing for a long time right so try and manage the demand for for electricity AWS does this to manage demand of their cloud services so now you have an incentive to use the product when no one else is using it right and if you can do that you will save a bundle of money again goal is to maximize capacity utilization to lower the total amount of capital that is invested in any process so if you were to think about you guys have heard this phrase I think rich tweeted this awhile back and said you know nobody you don't buy you don't buy a drill you buy a hole I've heard this phrase you don't buy a drill you buy a hole okay it's kind of deep right Ted Levitt because the the drill is just a way of getting the hole so if I'm sitting there and I'm working at Black & Decker right I'm working at you know if I'm working at Black & Decker who is who should I be thinking of it as my my competitive threat you ask Black and Decker who's your competitive threat okay they might say well you know there's there's a craftsman somebody like that other drill manufacturers if they think a little more broadly they might be like wow there's people making lasers to make holes maybe there's people selling walls that have pre-drilled holes in them okay those are all different ways of getting holes but if I was working there I would be thinking very differently because I don't know about you Chris your drill what's the capacity utilization of the drill you have three times a year okay mine is zero because I don't even know where it is it's somewhere in there okay so it's zero capacity utilization so I recently just started using right TaskRabbit I need a hole I go on a press a button the guy comes over puts the hole in okay now what's the capacity utilization of that guy's drill a lot higher how many drills do I need to sell a lot fewer than if every single person has their own drill it's like every single person having their own server okay I don't need to do that okay I can sell it to a central entity that will then provide this service okay so now it is drilling as a service home repair as a service get it okay now if we circle back to Walmart and we think about you know what made Walmart so special technologically you might think that my story about the communication inside of Walmart is really the the special thing about Walmart it turns out that's not actually what makes it so special what I think made Walmart so special is that that information did not end at firm boundaries but got communicated back to the supplier right so that when I go in and I buy those diapers that information goes back to Procter & Gamble it's a proctor & gamble right starts making more diapers when I buy diapers in Walmart C so if you think back to inventory you learned probably something called the bullwhip effect in operations right where there's a delay between when the orders placed okay and so then the order takes a while to get back that's gone when companies can talk to one another with real-time information so the minute I buy that diaper in the Walmart right practing Gamble's chopping down a tree in Washington State to make the next batch of diapers and the reason why they can do that is because the computers talk to other computers the computers talk to other computers and so how are they able to do this because they speak the same language they speak the same language so I use this metaphor in my strategy class a lot and it's about what we call a modular system so if you buy a stereo as a kid I had a stereo like this it sounded great so my father saw it all gonna get one of those so you bought this ok these are like the stripes on the Hardys chicken they're painted on they're not real okay so what what's what's the advantage of a system like this it's it's like plug and play right so each component so I could find basically buy Best of Breed I can get the best turntable put it with the best amp and so forth and they could be provided by different companies right ok also and here's the key thing is that if I have asynchronous development cycles so the speakers speaker technology changes every 20 years but my source technology changes every year I don't have to replace the whole thing I could just you know get rid of the tape deck and replace it with the CD CD player okay so that's a modular system but in order to have a modular system what do you need you need interfaces you need interfaces that connect I need to be able to connect them with with tubes so that each of these components can talk to the other components okay now if you go back to the 19th century and again I'm trying to tie history together to all these recent developments you go back to the 19th century the American railroad system it looks something like this so a railroad might be built out of Washington DC and then a railroad might be built out of Chicago and then once they kind of connected in Ohio guess what they discovered different gauges they didn't fit and so if they don't fit then you if you live in Washington you're limited to only going to these cities and if you're in Chicago you're only limited to going to these cities now if I could connect these networks then I can essentially double right the number of cities I can visit then I connect three networks right I can you know increase the number of places I can go by even more so the more connections I can create between these different networks right the bigger more valuable it is to access this railroad system so what would happen in those days you would actually take the rail car off the one set of wheels and put it on other set of wheels okay this is the interface now this is what we call now kind of the API right this is the API for the for the railroad so this is how they would do it now the more complex it is and the more difficult it is the less fluid your traffic will be through this entire network okay and so you know we have different gauges all around the world I recently did a project for the cosmic rail and you know they had a real problem because you know they want to ship goods from China to the US but the trains had to stop and go through this API right and what happened there's a lot of loss that took place in these in these sheds so this is a this is this is how you should be thinking about this modularity in the modern world in the world of data okay so when you get on your phone and you you you get go to kayak to look for a ticket you know what's actually happening when you do this now these slides I put together with one of our former students what happens when you go on here you're actually talking to kayaks computers with your phone okay and then kayaks computers they contact these computers and these computers and send a message and an inquiry with all the information and then that information comes back and while this thing is spinning what's happening is all these computers are talking to one another right and in the one that information comes back I see United I'm like okay I'll click on United right hopefully it will throw me off and and then I press that button and then boom now I'm automatically I'm talking to United's computers okay I'm talking to United's computers and then I book it and I pay with Priceline then I'm talking to price lines computers right I'm talking to Apollo's computers all these computers are talking to one another ok and then when I go into United each one of these buttons is basically a direct direct link to some piece of the software in United servers ok so I'm talking directly to United's computers and I don't if you notice recently but they put inside of the United app and have the uber button ok and so what's going on is United's computers are talking to Ebers computers and then when I go into Ober I got a map where's the map come from Google which means ubers computers are talking to Google's computers right and then when I pay I pay with PayPal boom lewbert's computers talk to PayPal's computers right which also are talking to Bank of America's computers to find out if I have money in my account ok so look all these computers are talking to one other why because they can speak the same language or get translated very easily okay so this is modularity and modularity is what's underlying all new business architecture today all new business architecture and this happens in two ways one if I want to start a new business I don't have to do from scratch I simply obtain everything I need from third parties I can run a billion dollar company with half a dozen people because I can get all the stuff I need like water from the faucet like electricity from PG&E like HR software like finance software enterprise software sales software if I open up a website for my business okay and I want write personalized search I can tap into that if I want write dynamic pricing I can tap into that if I want you know recommendation engine I can tap into that all these things are available to me all these these micro services are available to me okay and so just like an iPhone is assembled from all of these different parts that are purchased from all around the world and provided by all these different companies if I'd start a small business but if I create an app like a ride-sharing app I can get my payment services from stripe right I can go and get like all this trip management software payment software or whatever from third parties okay and so every business now is just simply a bunch of independently provided pieces of software assembled together like Lego blocks okay now this is changing the way businesses are organized not just in terms of their relationship with other companies getting everything as a service but it's also changing the way companies are designed internally okay and so you know I'm going to skip the part on platforms and just end with this and we'll have time for a few minutes of Q&A so this as a service revolution which gives rise also to platforms so they didn't talk about platforms right as a way of bringing together buyers and sellers for these services just as these things are changing business I think they're also changing things like education and so those of you who went to Rich's talk yesterday right you learned about edie Tech and so you know my vision I think Haas is undergoing a transformation as well right like every other company and every other entity and just as right we have software as a service platform and service and infrastructure as a service you know I think where we are headed is hospital service ok this this is where we're going okay so for most of you who came to Haas you you had this gigantic fixed cost and then you had to amortize it over 40 years right okay well what if we were to replace that fixed cost with a variable cost right what if we were to give you instead of a product give you a service right what would that look like right what would that look like so this is the kind of thing I'm thinking about maybe there's the kind of thing you could think about what would it mean for house to be a service well it would mean you know greater and less emphasis on your degree and more emphasis on things like our executive education right alumni events and so forth so thanks so much for coming here sorry I didn't get to get into everything but you know you can always come back to school and we can spend more time on this stuff so thanks for it thanks for coming well I think I mean it certainly it certainly has the potential to change the way in which we we compensate people so instead of just saying oh here's your salary and then at the end of the year we're going to have some kind of bonus discussion I'm gonna have your end of year review and that sort of thing the idea is that we're getting from the 1099 economy which is you know basically pay for service pay for ride and so forth the reason why we can do 1099 is because we can actually break down the work into bite-sized pieces and we can measure the value of the work now in traditional work environments you know that's more difficult to do okay and the reason why it's difficult to do is we don't have metrics of performance but companies are increasingly being forced to do this if I turn you from a worker on site to a worker who's working remotely I darn well better have a definition of what I expect you to do so I teach a course every summer now called workplace analytics and this is exactly what this is about how do we measure contribution how do we measure productivity how do we measure creativity how do we measure collaboration right and how do we do this in a very fine-grained way so that at the end of the day I can say you hary added 220,000 dollars worth of value today to the company and we're going to compensate you based on that then the next day you lose us a million and then take it all back right but you know when it comes to measuring the contribution of most employees now it's guesswork okay but as companies get better and better at measuring right the contributions we can start right calibrating it and then we can break it down then we don't need so there there are now companies that have CFO as a service so instead of hiring a CFO you go and get a CFO I was talking to a lawyer right he now manages 1,200 companies he's 12 under clients right and you know he used to have 12 now he has 1,200 right so it's becoming a service you don't need in-house counsel anymore and nearly as much you can tap into like lawyer the service the linearizing dot and making it aligned to where you be productive and where you capture the values okay I'm looking at from a deflation standpoint across the board yeah for the utilization went up and are we talking about a GDP level deflation and waist deflation as a result oh no no I think I think in terms of cap at labor capacity utilization is very very low you know if you think about what people do during most of the day it's a complete waste Goldman Sachs just said they cut they took 360,000 lawyer labor hours and convert it down to 20 seconds of machine learning okay if you think about what a typical doctor does looking at MRIs that's cancer move that's not cancer whoo that's cancer whoo that's not cancer right why do we need that why do we need that person doing that they could spend more time instead of having a 3-minute patient meeting guy all right ads gone yeah yeah you got cancer see you later you know like why don't the human to do what humans are good at and we can let the analytics do with the analytics good at so I think what we'll do we're going to see massive saving of labor which will free humans up to do things that only humans can do so so right so if you think about Amazon Web Services they offer you spot market pricing or subscription pricing so for someone who values like you know steady price you can basically you know buy a subscription so you know I teach a program on pricing we have an executive education program and pricing and this is of course you know one of the big questions do you you know offer different types of subscription models to people that are more interested in that kind of payment stream yeah absolutely so what you're doing really is when you sell someone a subscription what you're doing is you're selling them a type of insurance right against against unpredictable demand and they're in a better position to do that because they can they can basically offset all of the different non-correlated demand by the different demanders yeah so the chief operating officer from UPS came and spoke in the class two years ago and he said you know this was the biggest problem was you go to these drivers who have spent 20 years learning how to get good at their jobs and you come along with an algorithm that does it better okay and now all they're doing is just following to turn apt turn rag okay and so to get them to adopt you have to actually give them some control over that give them some override and help explain to them this is going to allow them to do their job better but ultimately right the once you've gotten to the point where the algorithm can tell people what to do you don't need the people anymore right so I think what we'll see is a constant right I mean it's the exact opposite of didi demeaning the job what we're doing is we're taking all parts of the job that are routine that have no meaning and we're kicking them to machines and so the only thing that's left for humans to do is the stuff that's meaningful right think about your job think about the parts that are most pleasurable and least pleasurable I guarantee you that the aspects of your job that are least pleasant are the ones that the machines can do and the ones that are most pleasant are the ones that machine's probably can't do and so you'll have more time to do the pleasant stuff and less time to do the unpleasant stuff like truck driving truck driving is possible like I don't know where all this romance comes from the factory if you go back and you read Dickens it is called the satanic mill okay so far now if it's like Oh nostalgia for the factory why wasn't it great turning that crank 18 hours a day okay no it sucked right it sucked and the sooner we can get rid of those jobs the better as far as I'm concerned satanic mill be gone okay so that that's that's again that's my view but let's take that's a we got to go and need some punch so if you want to keep talking I'll go get some more you you

5 Comments

  1. Vivian Oosthuizen said:

    The only thing humans worth should be measured by is time therefore one rate per hour for any work performed. According to anybody’s abilities the lifetime total available hours for labour should not be decided by any accounting tricks but rather by how much is their cost of living per day and that’s the wage rate for all labour performed. The guy that comes from task rabbit to drill your hole for you should be rewarded at the same rate as you receive for talking to a group of people. At least you have a hole to use after his effort.

    June 29, 2019
    Reply
  2. Vivian Oosthuizen said:

    Lower cost =lower wages or rather eliminate labour of humans altogether replace them with robots even better is what the ultimate aim is. Only use them as slaves at lowest hourly rate for what their machines can’t do like task rabbits

    June 29, 2019
    Reply
  3. Vivian Oosthuizen said:

    NO it’s not using excess capacity it’s about creating bigger and bigger monopolies. Apparently the lawmakers are too dumb to apply anti monopoly laws to technology

    June 29, 2019
    Reply
  4. Vivian Oosthuizen said:

    Too many people going to university and then spend their lives trying to come up with bs meantime it’s all to turn us humans into machines that they can enrich themselves from. Nobody is calculating how expensive all this technology is which doesn’t produce anything useful. 300k servers to for storage of information about GE engines to reduce maintenance cost?

    June 29, 2019
    Reply
  5. Vincent Donnat said:

    always loved your courses, sir… as much for the financial insight than for your sense of humour!

    June 29, 2019
    Reply

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