Tag: e-Commerce

Amazon: ‘What I want to be when I grow up’

Go Lean Commentary

For the planned entity, Caribbean Postal Union, the question should be asked:

What do you want to be when you grow up?

The answer should be:

Amazon

It turns out that Amazon was only founded in 1999, so this is less than 20 years. It is that quickly that an enterprise can have a transformative effect on society. We need transformations in the Caribbean and we are hoping to follow the Amazon business model as the solution for our regional postal-logistical needs.

How successful is Amazon as a model for success?

Well, now Amazon market capitalization has exceeded $1 Trillion. See the VIDEO and news story here:

VIDEO – Amazon 2nd company to top $1 trillion valuation – https://www.usatoday.com/videos/tech/nation-now/2018/09/05/amazon-2nd-company-top-1-trillion-valuation/37720169/

Sep 4, 2018 – Amazon has become the 2nd publicly traded company to be worth $1 trillion, after Apple. Amazon has cemented customer loyalty through its devices and fast, free shipping as well as music and video streaming perks. AP

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Title Amazon’s stock value tops $1 trillion, joins Apple in trillionaire club

Amazon’s meteoric stock surge briefly pushed its market value above $1 trillion, a milestone that makes the online retail giant only the second publicly traded company in the U.S. to pass that mark – following Apple.

Amazon topped $1 trillion for the first time Tuesday when its shares climbed past $2,050.27 in late-morning trading and hit an intraday record high of $2,050.50. Shares pulled back to $2,039.51 for a gain of 1.3 percent for     the day.

The accomplishment comes after Amazon’s per-share price crossed $2,000 for the first time last week.

Under CEO Jeff Bezos, who is now the richest person in the world with a net worth of an estimated $166 billion, Amazon has emerged as the most powerful force in the e-commerce business, capturing roughly 50 percent of the online retail market, according to eMarketer.

But it’s not just Amazon’s disruptive force in retail that has attracted investors on Wall Street. The company has diversified its sales and profit streams, from a public cloud-computing business to paid subscription services like Amazon Prime, and advertising revenue on its website.

Some Wall Street pros see the stock climbing even higher.

Citing Amazon’s improving business mix, rapid growth and profit potential, Morgan Stanley analyst Brian Nowak last week upped his price target for Amazon shares to $2,500, which is the highest on Wall Street, according to Bloomberg. If that fresh target is reached, it would boost the company’s market capitalization to more than $1.2 trillion.

In the race for most valuable U.S. company, Amazon now trails Apple by roughly $100 billion.

….

See the rest of the news article in the Appendix below.

This one company is worth US$1 Trillion. The whole Caribbean’s Gross Domestic Product (GDP) is [far] less; it is our plan to elevate the economic engines in the region to get the economy’s output up to $800 Billion.

Amazon is a model for e-Commerce, logistics, media and innovation. This is the role model we want for our Caribbean Postal Union and the aligning online portal, www.myCaribbean.gov. It is good to have a roadmap to follow to duplicate the successful journey of Amazon.

The book Go Lean…Caribbean serves as such a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU) and the Caribbean Postal Union (CPU). These entities are designed to address the “Agents of Change“ in modern society, but for a Caribbean scope only.  The “Agents of Change” at play in the foregoing news sources, according to the book (Page 57), are defined as follows:

  • Technology
  • Globalization

Asking the question: “What I want to be when I grow up?” is emblematic of future planning. This exercise is important for the region if we truly want to have a future. Though our people may survive, such an eventuality is not guaranteed for our culture. Ghost Towns do happen!

Our Caribbean region cannot continue with the status quo in terms of business operations and societal outworking. We must now reboot our industrial landscape to foster new opportunities (jobs, entrepreneurism and industrial development). This is the charter of the Caribbean Postal Union effort. In fact, the following 3 statements are identified as the prime directives of this CU charter:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to protect the resultant economic engines.
  • Improve Caribbean governance to support these engines.

In a previous Go Lean blog-commentary, it was related that …

… what Amazon did and does, is the epitome of what the CU/CPU needs to do to reboot Caribbean society. The company disrupted the status quo in so many industries – think: book retailers & movie rentals – and transformed markets to exploit opportunities and derive profits. This is the “Sum of All Caribbean Dreams“.

This reference to Caribbean Dreams is presented early in the Go Lean book with these opening pronouncements in the Declaration of Interdependence (Page 13 and 14):

xxiv. Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

xxvii. Whereas the region has endured a spectator status during the Industrial Revolution, we cannot stand on the sidelines of this new economy, the Information Revolution. Rather, the Federation must embrace all the tenets of Internet Communications Technology (ICT) to serve as an equalizing element in competition with the rest of the world. The Federation must bridge the digital divide and promote the community ethos that research/development is valuable and must be promoted and incentivized for adoption.

Monitoring and analyzing the business model of Amazon has been a frequent occupation for these Go Lean blog-commentaries; consider these previous submissions, as follows:

https://goleancaribbean.com/blog/?p=14316 Forging Change: Soft Power – Clean-up or ‘Adios Amazon’

Amazon is proving that people and communities will be motivated to change in order to have the prospect of acquiring money or to prevent losing money. This “soft power” is now emerging as the preferred way to forge change on society. The summary statement is: “Clean-up your societal defects or else … face the loss of an economic bonanza”.

https://goleancaribbean.com/blog/?p=14191 Scheduling in the ‘Gig Economy’

Amazon is proving that there is always “honorable” work available in the service industry. Any reference to the Post Office of 1987 can now be replaced with the Gig Economy. Amazon is very prominent in the Gig Economy in the US.

https://goleancaribbean.com/blog/?p=13627 Amazon: Then and Now

It has only been 18 years ago (1999 – 2017) since Amazon launched in Seattle, Washington USA. Now today, they are huge … and transforming how America shops … and consume media; even their digital assistant – Alexa – is transformative.

https://goleancaribbean.com/blog/?p=13091 Amazon Opens Search for HQ2
Amazon is accepting bids for a 2nd headquarters in North America. The city that lands HQ2 will have a lot to celebrate, as this enterprise can create many high-paying direct jobs – 50,000 – and have an indirect stimulus on the rest of the economy. This is a feature of Amazon that “we” want to model in the Caribbean.
https://goleancaribbean.com/blog/?p=12291 Big Tech’s Amazon – The Retailers’ Enemy
Big Tech companies like Amazon have the treasuries, talent and temperament (culture, values and commitment) to change the world, for good and for bad. The Amazon threat had been “all things internet”, but now they are attempting to dominate the physical retail space as well, with their acquisition of Whole Foods grocery stores.
https://goleancaribbean.com/blog/?p=11358 Retail Apocalypse – Preparing for the Inevitable
There is feast and famine “in the cards” for the retail eco-system. On one end of the spectrum , there will be prosperity for electronic commerce stakeholders, but on the other end, for brick-and-mortar establishments, there will be a Retail Apocalypse. This is not just a future problem as the threat has already manifested!
https://goleancaribbean.com/blog/?p=9839 Alibaba and Amazon’s Cloud allows for global reach
This model, with cutting-edge data centers, is the new colonialism.
https://goleancaribbean.com/blog/?p=7297 Death of the ‘Department Store’: Exaggerated or Eventual
Modern technology and electronic commerce has transformed many aspects of society; much has been added and much taken away. Just consider: cameras, watches, pagers, maps, calculators, calendars, payphones, books, music and more. The related industries have also been affected: travel agencies, music retailers, book retailers, newspapers, travel agencies and Big Box retailers. Amazon is to blame for many of the transformations.
https://goleancaribbean.com/blog/?p=7023 Thanksgiving & American Commerce – Past, Present and Amazon
To better understand American commerce, one must understand Cyber Monday and its dominant player Amazon. This company demonstrates how to be lean and technocratic as it employs cutting-edge automation  and robotics. They are a great model for a new Caribbean.
https://goleancaribbean.com/blog/?p=1416 Model of an E-Commerce Fulfillment Company: Amazon
Amazon is the model for the Caribbean Postal Union (CPU): our means for delivering the mail. Considering the US, one might think that the American model would be the US Postal Service (USPS). No, the Go Lean book relates how the USPS is a failing enterprise, while Amazon flourishes with growth, capital and profits.

One Trillion Dollars …

… this sounds great! This is what is meant by the old encouragement: Reach for the stars!

Can we pursue such a quest in the new Caribbean?

Yes, we can!

Consolidating and integrating the existing postal agencies in the Caribbean, should be “low hanging fruit”. Currently, these entities are just inefficient, ineffective cost centers, but here is the opportunity to transform them to this new vision: the CPU functioning as a job-creating profit center.

We cannot ignore this win-win possibility.

We hereby urge all Caribbean stakeholders to lean-in to the empowerments in the Go Lean/CU/CPU roadmap. Whether we pursue this roadmap to make a trillion dollars or just to optimize the mail, the end-result will be a positive benefit. This quest can make our homeland a better place to live, work and play. 🙂

Download the free e-Book of Go Lean … Caribbean – now!

Sign the petition to lean-in for the roadmap for the Caribbean Union Trade Federation.

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AppendixAmazon’s stock value tops $1 trillion, joins Apple in trillionaire club – Cont’d

By: Adam Shell, USA TODAY


Amazon’s stock, which is up nearly 75 percent this year, has been one of Wall Street’s top performers in the bull market that began in March 2009, gaining more than 3,000 percent, according to S&P Dow Jones Indices.

Amazon is also pushing into new businesses, such as groceries, a move highlighted by its purchase last year of upscale grocer Whole Foods Market for $13.7 billion. It also entered the health care space in June, with the purchase of online pharmacy PillPack.

The only other U.S. stocks within striking distance of a $1 trillion market value are Microsoft and Google-parent Alphabet, both of which are valued at roughly $850 billion.

Tuna Amobi, an analyst at Wall Street firm CFRA, sees Amazon’s stock price rising as high as $2,200 a share. Amazon’s suite of businesses, he says, act as “building blocks” that give it a diversified stream of revenue and will help it deliver “consistent” earnings results in the quarters ahead. “A lot of investments are starting to pay off,” he says.

Still, like any stock, Amazon is not risk free. Despite reporting a profit of $2.5 billion on $52.9 billion in sales in the quarter ended in June, and forecasting year-over-year sales growth of 23 percent to 31 percent in the current quarter, Amazon is not a cheap stock.

It currently trades at nearly 100 times its expected earnings over the next 12 months, which is about five times the broad market’s price-to-earnings ratio of 21, according to Bloomberg.

Another potential risk that could derail Amazon is a potential regulatory crackdown from Washington, D.C., which could look to counter its clout in online retailing, Amobi says.

Amazon is one of the popular and strong-performing “FAANG” stocks – Facebook, Apple, Netflix and Google parent Alphabet are the others – that have come under increased scrutiny from President Donald Trump and lawmakers because of their growing dominance. Executives from Facebook and Twitter will testify Wednesday before the Senate Intelligence Committee regarding interference of foreign nations on social-media platforms.

Amazon also faces increasing competition in online retailing from big players like Walmart and Target that are fighting to regain lost market share. It is also facing challenges from Microsoft and Google in the competitive cloud-computing business.

Source: USA Today – Posted September 4, 2018; retrieved October 1, 2018 from: https://www.usatoday.com/story/money/2018/09/04/amazon-tops-1-trillion-market-value/1191141002/?csp=chromepush

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e-Government 3.0

Go Lean Commentary

What if we had the chance to “start all over again”, with the knowledge, wisdom and experience that we have now? Could we do “it” faster, stronger, better? Can we do more with less?

Absolutely! Yes, we can!

Work it harder
Make it better
Do it faster
Make us stronger – 2001 Song Lyrics by group Daft Punk

The “it” in this case, is the governance for the Caribbean, the stewardship and shepherding of the 30 member-states that constitute the political Caribbean. (This includes the 2 South American countries – Guyana and Suriname – along with the Central American country of Belize).

There is the need now to reboot, reform or transform all 3 societal engines of the Caribbean region: economics, security and governance. While the first 2 engines can be reformed, there is the opportunity to launch a whole layer of governance. This is the purpose of the book Go Lean…Caribbean – available to download for free – to introduce and implement the Caribbean Union Trade Federation (CU). The Go Lean book serves as a roadmap for this new federal government. We will therefore be in a position to “start all over again” and create an administrative regime that can make the Caribbean homeland faster, stronger, better as places to live, work and play. This regime can be dubbed:

e-Government 3.0.

e-Government 1.0 refers to just the facilitation of government services via some electronic mode, the first attempt to embrace an online presence and processing; 2.0 refers to the quest for greater citizen participation in the governing/policy-making process, “putting government in the hands of citizens”.[54] This 3.0 brand however, refers to the penultimate e-Delivery, processing and optimization of ICT (Internet & Communications Technologies) among all the different roles and responsibilities. Imagine digital interactions …

  • between a citizen and their government (C2G)
  • between governments and other government agencies (G2G)
  • between government and citizens (G2C)
  • between government and employees (G2E), and …
  • between government and businesses/commercial entities (G2B).

If this sounds fantastical, just know that there are successful role model countries doing this e-Government 3.0 right now. For example, the Baltic Republic country of Estonia is widely recognized as e-Estonia, as a reference to its tech-savvy government and society.[98] (Until recently – 1991 – Estonia was a Failing-State as a member of the USSR or the Union of Soviet Socialist Republics). Today, e-Estonia is recognized as the leader in implementing block-chain technology into its e-government infrastructure.[99] See more on their 3.0 offering in the Appendices below, including a White Paper in Appendix B. Also see the VIDEO on Estonia in Appendix C.

e-Government schemes are win-win

The ultimate goal of e-Government is to be able to offer an increased portfolio of public services to citizens in an efficient and cost effective manner. e-Government allows for government transparency. Government transparency is important because it allows the public to be informed about what the government is working on as well as the policies they are trying to implement. Simple tasks may be easier to perform through electronic government access. Many changes, such as marital status or address changes can be a long process and take a lot of paper work for citizens. e-Government allows these tasks to be performed efficiently with more convenience to individuals. e-Government is an easy way for the public to be more involved in political campaigns. It could increase voter awareness, which could lead to an increase in citizen participation in elections. It is convenient and cost-effective for businesses, and the public benefits by getting easy access to the most current information available without having to spend time, energy and money to get it.

e-Government helps simplify processes and makes government information more easily accessible for public sector agencies and citizens. For example, the Indiana Bureau of Motor Vehicles simplified the process of certifying driver records to be admitted in county court proceedings.[34] Indiana became the first state to allow government records to be digitally signed, legally certified and delivered electronically by using Electronic Postmark technology. In addition to its simplicity, e-democracy services can reduce costs. Alabama Department of Conservation & Natural Resources, Wal-Mart and NIC[35] developed an online hunting and fishing license service utilizing an existing computer to automate the licensing process. More than 140,000 licenses were purchased at Wal-Mart stores during the first hunting season and the agency estimates it will save $200,000 annually from service.[36]

The anticipated benefits of e-government include efficiency, improved services, better accessibility of public services, sustainable community development and more transparency and accountability.[22]

Source: Retrieved June 19, 2018 from: https://en.wikipedia.org/wiki/E-government#Advantages

There is no doubt that the operations of government are necessary for a functioning society. There is an implied Social Contract that states “that citizens surrender some of their freedoms and submit to the authority of the State in exchange for protection of remaining natural and legal rights”. The more efficiency a State displays in delivering its obligations to its citizens, the better for the State, and the citizens. Where there is failure in this delivery, people … leave or flee!

Human flight and societal abandonment is already a characteristic of the Caribbean today. So we must explore the viability and feasibility of e-Government schemes in the new Caribbean, as rebooting the governing engines is part-and-parcel of the Go Lean roadmap. In fact, the roadmap features these 3 prime directives:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to ensure public safety and protect the resultant economic engines.
  • Improve Caribbean governance to support these engines, including a separation-of-powers between the member-states and CU federal agencies.

In a previous Go Lean commentary, it was revealed that the government is the largest employer in each Caribbean member-state. So to foster change, it is necessary to engage the governing processes. How can we improve Caribbean governance so as to bring change to our society? Answer: Deploy these functional areas of new electronic systems:

e-Government services are among the strategies, tactics and implementations in the Go Lean roadmap for elevating Caribbean society. While the new federal government will embrace these above e-Systems, the existing governmental structures – municipal, state and NGO’s – can also benefit from the economies-of-scale. See how this functionality is portrayed in the book (Page 51):

The CU’s delivery of ICT [(Internet & Communications Technologies)] systems, e-Government, contact center and in-source services (i.e. property tax systems [and www.myCaribbean.gov]) can put the burden on systems continuity at the federal level and not the member-states. (This is the model of Canada with the federal delivery of provincial systems and services – some Provincial / Territorial presence / governance is completely “virtual”).

The Go Lean book provides 370-pages of turn-by-turn directions on how to deliver on the ICT promise. The book describes “how” Caribbean communities can adopt new community ethos, plus the strategies, tactics, implementations and advocacies to execute so as to reboot, reform and transform our homeland. Consider one advocacy in particular on Page 168; see here some excerpts, summaries and headlines from the Chapter entitled:

10 Ways to Improve Governance in the Caribbean Region

1 Lean-in for the Caribbean Single Market
The CU will adopt a “Right to Good Governance” in its charter; thereby bringing accountability beyond state borders. The CU’s initiatives allow for more effective governance by separating many duties that are now managed on a national level to a federal level within the CU. So national governments will perform less services, and with the dividends from the CU, more revenues to control. But with these benefits come greater fiscal accountability.
2 Currency Union & Monetary Control
3 e-Government & e-Delivery

e-Government services for a lot of government functionality will allow economies of scale with regional governments sharing the same systems. This is envisioned for property records-tax assessment-collections, income taxes, auto registrations, vital records, human resources-payroll, and regulatory-compliance-audit functionality. In addition, a lot of government services will be delivered electronically: email, cash disbursements on a card-based benefits card (see Appendix ZV on Page 353), ACH and electronic funds transfer measure for expenditures and revenue collections.

4 Better (and New) Revenue Management
5 Economic Sanctions and Penalties
6 Consolidation of Outstanding Debt
7 CU Capital Markets
8 Economic Crimes and Bankruptcy Jurisdiction
9 Postal Modernization

The CU will assume the responsibility for mail service in the region with modernized systems and processes to enhance the efficiency and effectiveness: zone improvement (ZIP) codes, postal barcodes, sorting-collating equipment, “last-leg-electronic-postal”. The Caribbean Postal Union will deploy thousands of “neighborhood centralized mail box” locations for delivery and collection. All postal employees of the member-states will become Federal Civil Servants.

10 Prison Industrial Labor

The CU will launch the www.myCaribbean.gov on Day One/Step One of this important roadmap. This portal, resembling a social media site, will also be accessible from a smart-phone. So citizens can interact for their government from the palm of their hands. Consider how e-Government and e-Delivery have been portrayed in this sample of previous blog-commentaries:

https://goleancaribbean.com/blog/?p=13524 Future Focused – e-Government Portal 101
https://goleancaribbean.com/blog/?p=10513 Transforming ‘Money’ Countrywide
https://goleancaribbean.com/blog/?p=8823 China’s WeChat: Model for Caribbean Social Media
https://goleancaribbean.com/blog/?p=7991 Transformations: Caribbean Postal Union – Delivering the Future
https://goleancaribbean.com/blog/?p=7034 The Future of Money
https://goleancaribbean.com/blog/?p=888 How to Re-invent Government in a Digital Image – Book Review

We must reform and transform our Caribbean governing engines. We can easily accomplish this with the new CU Trade Federation – a new federal government.

This is not an option. We have a chance to start over again, and do things right! We can be faster, stronger and better. This is exactly what our region needs right now – e-Government 3.0. We urge all stakeholders to lean-in to this CU/Go Lean roadmap to make the Caribbean a better place to live, work and play. 🙂

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

Download the free e-Book of Go Lean … Caribbean – now!

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Appendix A – Estonia takes the plunge
Sub-title: A national identity scheme goes global

The founders of the internet were academics who took users’ identities on trust. When only research co-operation was at stake, this was reasonable. But the lack of secure identification is now hampering the development of e-commerce and the provision of public services online. In day-to-day life, from banking to dating, if you don’t know who you are dealing with, you are vulnerable to fraud or deceit, or will have to submit to cumbersome procedures such as scanning and uploading documents to prove who you are.

Much work has gone into making systems that can recognise and verify digital IDs. A standard called OpenID Connect, organised by an international non-profit foundation, was launched this year. Mobile-phone operators have started a complementary service, Mobile Connect, which allows identities of all kinds to be authenticated from smartphones.

But providing a digital ID that will be widely used and trusted is far harder. Businesses can check their employees rigorously, and issue credentials for gaining access to buildings, computers and the like. But what about outside the workplace? Facebook, Google and Twitter are all trying to make their accounts a form of ID. But these are issued without verification, so pseudonyms are rife and impersonation easy.

Private providers are offering their own schemes; miiCard, for example, uses bank accounts as a way of issuing a verified online identity. But these fall short of the reliability of a state-backed identity, issued by a government official, checked against other databases, using biometric data (such as fingerprints and retinal scans) and backed by law—in effect an electronic passport.

There is one place where this cyberdream is already reality. Secure, authenticated identity is the birthright of every Estonian: before a newborn even arrives home, the hospital will have issued a digital birth certificate and his health insurance will have been started automatically. All residents of the small Baltic state aged 15 or over have electronic ID cards, which are used in health care, electronic banking and shopping, to sign contracts and encrypt e-mail, as tram tickets, and much more besides—even to vote.

Estonia’s approach makes life efficient: taxes take less than an hour to file, and refunds are paid within 48 hours. By law, the state may not ask for any piece of information more than once, people have the right to know what data are held on them and all government databases must be compatible, a system known as the X-road. In all, the Estonian state offers 600 e-services to its citizens and 2,400 to businesses.

Estonia’s system uses suitably hefty encryption. Only a minimum of private data are kept on the ID card itself. Lost cards can simply be cancelled. And in over a decade, no security breaches have been reported. Also issued are two PIN codes, one for authentication (proving who the holder is) and one for authorisation (signing documents or making payments). Asked to authenticate a user, the service concerned queries a central database to check that the card and relevant code match. It also asks for only the minimum information needed: to check a customer’s age, for example, it does not ask, “How old is this person?” but merely, “Is this person over 18?”

Other governments have tried to issue electronic identity cards. But costs have been high and public resistance strong. Some have proved careless custodians of their citizens’ data. There are fears of snooping. Britain had spent £257m ($370m) of a planned £4.5 billion on a much-criticised ID card scheme by the time the current coalition government scrapped it after coming to office in 2010.

That has left a gap in the global market—one that Estonia hopes to fill. Starting later this year, it will issue ID cards to non-resident “satellite Estonians”, thereby creating a global, government-standard digital identity. Applicants will pay a small fee, probably around €30-50 ($41-68), and provide the same biometric data and documents as Estonian residents. If all is in order, a card will be issued, or its virtual equivalent on a smartphone (held on a special secure module in the SIM card).

Some good ideas never take off because too few people embrace them. And with just 1.3m residents, Estonia is a tiddler—even with the 10m satellite Estonians the government hopes to add over the next decade. What may provide the necessary scale is a European Union rule soon to come into force that will require member states to accept each others’ digital IDs. That means non-resident holders of Estonian IDs, wherever they are, will be able not only to send each other encrypted e-mail and to prove their identity to web-service providers who accept government-issued identities, but also to do business with governments anywhere in the EU.

Estonia is being “very clever”, says Stéphanie de Labriolle of the Secure Identity Alliance, an international working group. Marie Austenaa of the GSMA, a global association of mobile-phone firms, praises it too. Allan Foster of ForgeRock, a firm that is working on government ID schemes in Belgium, New Zealand and elsewhere, thinks that the new satellite Estonians will help change attitudes to secure digital identities in their own countries, too.

The scheme’s advantages for Estonia are multiple. It will help it shed the detested “ex-Soviet” tag and promote itself as a paragon of good government and innovation. It will attract investment: once you have an Estonian ID, setting up a company there takes only a few minutes. And it will create an electronic diaspora all over the world with a stake in the country’s survival—no small matter at a time when the threat from Russia is keenly felt. (Estonia is also planning to back up all its national data to secure “digital embassies” in friendly foreign countries.)

Struck by the X-road’s scalability and security, and the fact that it has already worked well for over a decade, Finland and other countries are adopting the Estonian system in whole or in part. But for foreign individuals, perhaps its greatest appeal is that it is optional. Those who like the system’s convenience, security and flexibility can apply (though Estonia’s chief information officer, Taavi Kotka, who is taking time away from his real-life job running an IT company, stresses that the ID is a privilege, not a right). Those who feel queasy about a foreign state having access to their personal data can steer clear.

Mr Kotka says that Estonia aims to do for identity what American Express cards did for international travel in the 1960s: to simplify life. But the bigger point is that government-verified identity has been divorced from location. If Estonia’s scheme takes off some other countries may well decide to follow its lead. Some may aim at volume; others, to target the top end, as with the market in non-resident investors’ passports. Soon, multiple satellite citizenship may even become the norm.

Source: The Economist Magazine – Posted June 28, 2018; retrieved June 20, 2018 from: https://web.archive.org/web/20140701170642/http://www.economist.com/news/international/21605923-national-identity-scheme-goes-global-estonia-takes-plunge

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Appendix B – Estonia: A model for e-Government
Abstract
Over the next decade, the population of Estonia is expected to soar more than 600% as the country becomes the first in the world to open its borders to an influx of e-residents.

Estonia: A model for e-Government. Available from: https://www.researchgate.net/publication/277943805_Estonia_A_model_for_e-government [accessed Jun 19 2018].

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Appendix C VIDEO – Estonia Built the Society of the Future from Scratch – https://youtu.be/cHkIfiTGmzo

Beme News
Published on Jan 10, 2018 – A tech revolution is going down in Estonia…of all places. The tiny Baltic nation has built a futuristic, digital-first society. Lou explains how it works, why it works, and if it will work elsewhere.

Sources & Further Reading:
E-Estonia’ official website – https://e-estonia.com/
Estonia the Digital Republic – https://www.newyorker.com/magazine/20…
Is This Tiny European Nation a Preview of Our Tech Future? – http://fortune.com/2017/04/27/estonia…
How long it takes to file taxes in Estonia – http://www.politifact.com/truth-o-met…
How long it takes to file taxes in the U.S. – https://www.washingtonpost.com/blogs/…
Why Americans didn’t vote in 2016 – http://www.pewresearch.org/fact-tank/…

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Amazon Opens Search for HQ2

Go Lean Commentary

Amazon 2Amazon is not just a giant on the internet, in the areas of electronic commerce. No they are emerging as a giant in the real world as well. The company has over 380,000 employees worldwide and 40,000+ at their Seattle, Washington USA headquarters. That is a BIG corporate presence. In fact, economic analysts had tabulated Amazon’s Gross Domestic Product (GDP) contribution to Seattle at $US 38 Billion. Wow!

Now, the company has decided to open a new supplemental headquarters facility – with the promise of another 50,000 job opportunities. Where will they place this second HQ facility – HQ2? They are open to offers.

Let the bidding begin …

See the Press Release in the Appendix below and the related VIDEO here:

VIDEO – American cities vie to be site of Amazon’s second headquarters – https://www.today.com/video/american-cities-vie-to-be-site-of-amazon-s-second-headquarters-1055053379904

Many U.S cities are competing fiercely to show Amazon why they should become home to the online giant’s second headquarters. NBC business correspondent Jo Ling Kent reports for TODAY from one of them: Los Angeles.

As related in this VIDEO, Amazon HQ2 would be a “serious jolt to any local economy”. Consider these prospective cities that are lining up:

Atlanta El Paso, TX Nashville, TN
Baltimore Gary, Indiana Pittsburgh, PA
Birmingham, AL Houston, TX Phoenix, AZ
Boston, MA Las Vegas, NV Portland, OR
Chicago Los Angeles St Louis, MO
Cincinnati, OH Miami, FL Toronto, Canada
Denver, CO Minneapolis, MN Tucson, AZ

The Caribbean is not represented on that list; notwithstanding the frontier city of Miami. (Miami thrives due to the presence of the Caribbean Diaspora).

But that’s OK…this time. We have our own plans.

CU Blog - Amazon Opens Search for for HQ2 - Photo 1As related in previous blog-commentaries by the movement behind the book Go Lean … Caribbean, Amazon is a model for the Caribbean’s own venture into electronic commerce. We have the design for www.myCaribbean.gov web-portal and the Caribbean Postal Union to perform a lot of the same functionality that Amazon does in the USA.

The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU) and the Caribbean Postal Union (CPU). These entities are designed to address the “Agents of Change“ in modern society, but for a Caribbean scope only.  The “Agents of Change” at play in the foregoing news source are as follows:

  • Technology
  • Globalization

As related in the foregoing VIDEO, the business dynamics of Amazon will have a huge impact on some local community. That American city that lands HQ2 will have a lot to celebrate, as their societal engines will be elevated. An enterprise that can create that many high-paying direct jobs – 50,000 – will have a stimulating effect on the rest of the economy. This too is a feature of Amazon that “we” want to model in the Caribbean. The Go Lean/CU roadmap is designed to elevate the Caribbean’s societal engines starting first with economics (jobs, industrial development and entrepreneurial opportunities). In fact, the following 3 statements are identified as the prime directives of the CU:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to protect the resultant economic engines.
  • Improve Caribbean governance to support these other engines. Governance will not grow the economy, commerce will.

One addition feature of Amazon that bears disclosing is their effect on stimulating other businesses. According to these words from the Press Release below, the home community of Amazon’s current headquarters – Seattle, Washington – has incubated many other Fortune 500 companies in the wake of Amazon’s rise and dominance:

Increase in Fortune 500 companies with engineering/R&D centers in Seattle: From 7 in 2010 to 31 in 2017

Incubation is a primary tactic addressed in the Go Lean book. It is explained (Page 28) as follows:

The Bottom Line on Incubators
Business incubators are programs designed to support the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management. Incubators vary in the way they deliver their services, in their organizational structure, and in the types of clients they serve. Successful completion of a business incubation program increases the likelihood that a startup company will stay in business for the long term: studies found 87% of incubator graduates stayed in business, in contrast to 44% of all firms. [Incubators are common in the US, Canada and Europe]. In 2005 alone, North American incubation programs assisted more than 27,000 firms that provided employment for more than 100,000 workers and generated annual revenues of $17 billion.

Incubators differ from research and technology parks in their dedication to startup and early-stage companies. Incubators also differ from the U.S. Small Business Administration’s Small Business Development Centers in that they serve only selected clients. Most common incubators provide these services:

1. Help with business basics

2. Networking activities

3. Marketing assistance

4. Help with accounting/financial management

5. Access to bank loans, loan funds and guarantee programs

6. Help with presentation skills

7. Links to higher education resources

8. Links to strategic partners

9. Access to angel investors or venture capital

10. Advisory boards and mentors

11. Technology commercialization assistance

12. Help with regulatory compliance

13. Intellectual property management.

CU Blog - Retail Enemy - Amazon - Photo 1Amazon’s modus operandi is not to be an incubator, though they have invested in many other tech-related companies. No, the Seattle incubation resulted from more community synergy than direct planning. This is what is defined in the Go Lean book as “community ethos”:

1. The fundamental character or spirit of a culture; the underlying sentiment that informs the beliefs, customs, or practices of a group or society; dominant assumptions of a people or period.

2. The character or disposition of a community, group, person, etc.

We need this community ethos in the Caribbean!

Overall, in its 370-pages, the Go Lean book stresses the community ethos, strategies, tactics, implementations and advocacies to reform and transform the economic engines of Caribbean society. The required technocratic stewardship for the region’s economic engines was presented early in the book with these opening pronouncements in the Declaration of Interdependence (Page 13 and 14):

xxiv. Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

xxvii. Whereas the region has endured a spectator status during the Industrial Revolution, we cannot stand on the sidelines of this new economy, the Information Revolution. Rather, the Federation must embrace all the tenets of Internet Communications Technology (ICT) to serve as an equalizing element in competition with the rest of the world. The Federation must bridge the digital divide and promote the community ethos that research/development is valuable and must be promoted and incentivized for adoption.

The points of effective, technocratic stewardship were further elaborated upon in previous blog-commentaries. Consider this sample:

https://goleancaribbean.com/blog/?p=12291 Amazon – The Retailers’ Enemy
https://goleancaribbean.com/blog/?p=8823 Lessons from China – WeChat: Model for Caribbean Social Media
https://goleancaribbean.com/blog/?p=7991 Transformations: Caribbean Postal Union – Delivering the Future
https://goleancaribbean.com/blog/?p=3187 Robots help Amazon tackle Cyber Monday
https://goleancaribbean.com/blog/?p=2488 Model of an E-Commerce Fulfillment Company: Alibaba
https://goleancaribbean.com/blog/?p=1416 Model of an E-Commerce Fulfillment Company: Amazon
https://goleancaribbean.com/blog/?p=528 Facebook’s advances for e-Commerce payments

Congratulation to the selected city – whoever is selected – for Amazon’s HQ2.

For the Caribbean, let’s pay attention to this bidding process. Let’s lean-in and learn how the economic incentives were structured by the winning city to attract this “whale” of a corporate investor – Amazon commits to spending $5 Billion to enhance local infrastructure in the selected city. This chosen city will make great progress in their attempts to elevate their city … to live, work and play.

The lessons learned can help the Caribbean in our solicitations of Direct Foreign Investors. We can learn so much from this process, since it is also our desire to make our homelands better places to live, work and play. 🙂

Download the free e-book of Go Lean … Caribbean – now!

Sign the petition to lean-in for the roadmap for the Caribbean Union Trade Federation.

————-

Appendix Title: Amazon Opens Search for Amazon HQ2 A Second Headquarters City in North America

New headquarters will be a full equal to Amazon’s headquarters in Seattle, and is expected to grow to 50,000 employees as part of the company’s ongoing job creation

Amazon plans to invest over $5 billion in construction and operation of Amazon HQ2

In addition to Amazon’s direct hiring and investment, construction and operation of Amazon HQ2 is expected to create tens of thousands of jobs in construction and related industries, and generate tens of billions of dollars in additional investment in the city where Amazon HQ2 is located

SEATTLE — (BUSINESS WIRE)

(NASDAQ: AMZN) — Amazon today announced plans to open Amazon HQ2, a second company headquarters in North America. Amazon expects to invest over $5 billion in construction and grow this second headquarters to include as many as 50,000 high-paying jobs. In addition to Amazon’s direct hiring and investment, construction and ongoing operation of Amazon HQ2 is expected to create tens of thousands of additional jobs and tens of billions of dollars in additional investment in the surrounding community. Amazon is opening the Amazon HQ2 Request for Proposal (“RFP”) now, and local and state government leaders interested in learning more about how they can bring Amazon to their community can visit www.amazon.com/amazonHQ2.

Amazon estimates its investments in Seattle from 2010 through 2016 resulted in an additional $38 billion to the city’s economy – every dollar invested by Amazon in Seattle generated an additional 1.4 dollars for the city’s economy overall.

Details of Amazon’s Seattle Headquarters:

Direct1 Number of buildings 33
Square feet 8.1 million
Local retail within Amazon headquarters 24 restaurants/cafes + 8 other services
Amazon employees 40,000+
Capital investment (buildings & infrastructure) $3.7 billion
Operational expenditures (utilities & maintenance) $1.4 billion
Compensation to employees $25.7 billion
Number of annual hotel nights by visiting Amazonians and guests 233,000 (2016)
Amount paid into the city’s public transportation system as employees’ transportation benefit $43 million
Indirect2 Additional jobs created in the city as a result of Amazon’s direct investments 53,000
Additional investments in the local economy as a result of Amazon’s direct investments $38 billion
Increase in personal income by non-Amazon employees as a result of Amazon’s direct investments $17 billion
Other Increase in Fortune 500 companies with engineering/R&D centers in Seattle From 7 in 2010 to 31 in 2017

1 From 2010 (when Amazon moved its headquarters to downtown Seattle) to June 2017.

2 From 2010-2016. Calculated using Input-Output methodology and multipliers developed by the U.S. Bureau of Economic Analysis.

With more than 380,000 employees worldwide, Amazon ranks #1 on Fast Company’s Most Innovative Companies, #2 on Fortune’s World’s Most Admired Companies, #1 on The Harris Poll’s Corporate Reputation survey, and #2 on LinkedIn’s U.S. most desirable companies list. Amazon was also recently included in the Military Times’ Best for Vets list of companies committed to providing opportunities for military veterans.

“We expect HQ2 to be a full equal to our Seattle headquarters,” said Jeff Bezos, Amazon founder and CEO. “Amazon HQ2 will bring billions of dollars in up-front and ongoing investments, and tens of thousands of high-paying jobs. We’re excited to find a second home.”

In choosing the location for HQ2, Amazon has a preference for:

  • Metropolitan areas with more than one million people
  • A stable and business-friendly environment
  • Urban or suburban locations with the potential to attract and retain strong technical talent
  • Communities that think big and creatively when considering locations and real estate options

HQ2 could be, but does not have to be:

  • An urban or downtown campus
  • A similar layout to Amazon’s Seattle campus
  • A development-prepped site. We want to encourage states and communities to think creatively for viable real estate options, while not negatively affecting our preferred timeline.

Amazon HQ2 will be a complete headquarters for Amazon – not a satellite office. Amazon expects to hire new teams and executives in HQ2, and will also let existing senior leaders across the company decide whether to locate their teams in HQ1, HQ2 or both. The company expects that employees who are currently working in HQ1 can choose to continue working there, or they could have an opportunity to move if they would prefer to be located in HQ2.

To learn more about Amazon’s current Seattle headquarters, plans for Amazon HQ2, and to submit a proposal, visit www.amazon.com/amazonHQ2.

———-

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon. For more information, visit www.amazon.com/about and follow @AmazonNews.

Forward-Looking Statements

This press release contains forward-looking statements that are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains, and develops commercial agreements, acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services, and technologies, system interruptions, government regulation and taxation, and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

———-

View source version on businesswire.com: http://www.businesswire.com/news/home/20170907005717/en/

Amazon.com, Inc.
Media Hotline
Amazon-pr@amazon.com
www.amazon.com/pr

Copyright Business Wire 2017

———-

Source: Posted September 7, 2017; retrieved September 26, 2017 from: http://www.nbc-2.com/story/36308962/amazon-opens-search-for-amazon-hq2-a-second-headquarters-city-in-north-america

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Big Tech’s Amazon – The Retailers’ Enemy

Go Lean Commentary

The retail industry now has a “name for its pain”; they know who-what is undermining their business model. It is not just the Internet; it is …

Amazon.
Amazon 2

In a previous blog-commentary by the movement behind the book Go Lean … Caribbean, it was asserted that the industry is being threatened by the Retail Apocalypse. That was just generalizing the threat as “all things internet”, but now we see that Amazon is attempting to emerge from cyber-space and dominate the retail space.

To the victor go the spoils.

A lot is being spoiled, as shopping malls have suffered a dire disposition. See the full story here:

Title: What venture will Amazon tackle next?

People were shocked by Amazon’s announcement to buy Whole Foods Market for $13.7 billion, prompting many to wonder what the future of grocery and clothes shopping might look like as the online retailer attempts to dominate. NBC’s Jo Ling Kent has the report for TODAY.

VIDEO – American Giant Shopping Shift – http://www.today.com/video/what-venture-will-amazon-tackle-next-972676675883

This is the reality of Big Tech. There are 4 anchor companies in the Internet & Communications Technologies (ICT) industry that continue to impact the modern world and disrupt the legacies of commercial enterprises:

These companies have the treasuries, talent and temperament (culture, values and commitment) to change the world, for good and for bad. Amazon and its Founder-CEO Jeff Bezos are “talking the talk and walking the walk”; they put their “money where the mouth is”. They’ve just agreed to spend $13.7 Billion to acquire brick-and-mortar grocery store chain Whole Foods. This is a big deal!

It’s not just Amazon and Whole Foods: Here’s the enormous Jeff Bezos empire, in one chart – June 21, 2017
CU Blog - Retail Enemy - Amazon - Photo 1

Amazon and Bezos are disruptive role-players. They have disrupted the business model of so many industries and companies. This is the Retail Apocalypse … personified.

Amazon and this Retail Apocalypse are germane issues for the movement behind the book Go Lean…Caribbean. The book posits that there are “Agents of Change” that are impacting the economic, security and governing engines in Caribbean society; these “Agents of Change” include:

  • Technology
  • Globalization

Monitoring these “Agents of Change” is part-and-parcel of the roadmap this book presents for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU). The quest of this Go Lean/CU roadmap is to elevate the Caribbean’s societal engines starting first with economics (jobs, industrial development and entrepreneurial opportunities). In fact, the following 3 statements are identified as the prime directives of the CU:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to protect the resultant economic.
  • Improve Caribbean governance – as e-Commerce alters sales & border taxes – to support these engines.

According to the foregoing VIDEO, Amazon and Internet & Communications Technologies disrupting retail commerce is not all good and not all bad:

  • Good: Prices with internet commerce are cheaper than at retail stores.
  • Bad: Retail stores and jobs are endangered.
  • Good: Greater variety and product options.
  • Bad: Mall closures undermines local communities (tax base of neighboring properties).
  • Good: Technological innovations create economic opportunities in the ICT industry space.
  • Bad: State government revenue reductions based on prohibitions on internet taxes.
  • Good: Delivery options create logistical jobs.
  • Bad: Family businesses/Main Streets cannot compete.

The future matches forward.

Whether its Amazon or no Amazon, Jeff Bezos or someone else, change will come to the Retail Economy. This applies in the US or in the Caribbean. The point is to prepare for the change, to position regional institutions to explore all the opportunities that change brings. According to the Go Lean book …

‘Luck is the destination where opportunity meets preparation’ – Page 252.

What are Main Streets to do?

This question was fully analyzed in the Go Lean book in its 370-pages of turn-by-turn instructions on “how” to adopt new community ethos, and the the strategies, tactics, implementations and advocacies to execute so as to reboot, reform and transform the societal engines of Caribbean society. Consider  this sample advocacy on Page 201:

10 Ways to Impact Main Street

1 Lean-in for the Caribbean Single Market
This treaty allows for the unification of the region into one market, thereby expanding to an economy of 30 countries, 42 million people and a GDP of over $800 Billion. The mission of the CU is to enhance the economic engines of the region, fostering institutions like capital markets and secondary mortgage funds to facilitate local governments and town-planning efforts for downtown developments and enhancements. The CU’s adoption of electronic funds transfer modes will allow for more card-based transactions in the region. This facilitates Mail-Order / Telephone Order (MOTO), internet and mobile commerce modes – this is the future of retailing, and allows Mom-and-Pops to compete with “Big-Box”.
2 Repatriated Diaspora – Shopping Habits
3 Big-Box Competition: Cooperatives
4 Big-Box Competition: e-Commerce
Electronic commerce holds the promise of “leveling the playing field” so that small merchants can compete against larger merchants. To facilitate e-Commerce, purchased merchandise must get to their destinations as efficiently as possible.
The CU’s implementation of the Caribbean Postal Union allows for better logistics for package delivery.
5 Downtown Wi-Fi – Time and Place
The CU will foster the implementation of more technology solutions, including Wi-Fi for internet connectivity, especially in downtown areas. The emergence of mobile applications allows for the coordination of “time and place” to convert internet browsing to real-time purchasing. This communications service can be advertising based or subscription based.
6 Theater Districts
7 Downtown Development Authorities
8 Magnate and Charter Schools
9 The Arts in Public Places
10 Cruise Industry Port-side Merchants
In this [Caribbean] region, many tourist destinations for cruise ships are centered on Main Streets and downtowns, i.e. Bay Street in Nassau-Bahamas. The CU will foster more cruise passenger spending at the port-side merchants by facilitating e-Payments and settlement for the proprietary cruise passenger smart cards in Caribbean Dollars (not US$ or Euros).

Though not directly mentioned in the book, Amazon and the Retail Apocalypse is planned for in the Go Lean roadmap. A comprehensive view of  the technocratic stewardship for the region’s economic engines is presented early in the book with these opening pronouncements in the Declaration of Interdependence (Page 13 and 14):

xxiv. Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

xxvii. Whereas the region has endured a spectator status during the Industrial Revolution, we cannot stand on the sidelines of this new economy, the Information Revolution. Rather, the Federation must embrace all the tenets of Internet Communications Technology (ICT) to serve as an equalizing element in competition with the rest of the world. The Federation must bridge the digital divide and promote the community ethos that research/development is valuable and must be promoted and incentivized for adoption.

The business models of Amazon and similar companies – and competitors – have been further elaborated upon in previous blog/commentaries. Consider this sample:

https://goleancaribbean.com/blog/?p=11453 Location Matters, Even in a Virtual World
https://goleancaribbean.com/blog/?p=9839 Alibaba Cloud stretches global reach with four new facilities
https://goleancaribbean.com/blog/?p=9800 Model of the Macy’s Thanksgiving Day Parade – By The Numbers
https://goleancaribbean.com/blog/?p=7297 Death of the ‘Department Store’: Exaggerated or Eventual
https://goleancaribbean.com/blog/?p=7023 Thanksgiving and American Commerce – Past, Present and Amazon
https://goleancaribbean.com/blog/?p=2488 Model of an E-Commerce Fulfillment Company: Alibaba
https://goleancaribbean.com/blog/?p=1416 Model of an E-Commerce Fulfillment Company: Amazon

Notice to all retail stakeholders: Amazon is not just your enemy; they are your “Pace Car”, the “target rabbit in a Greyhound race”.

CU Blog - Amazon - Retailers' Enemy - Photo 2

CU Blog - Amazon - Retailers' Enemy - Photo 3

Know your enemy!

Notice to all Caribbean stakeholders: Lean-in for the empowerments for e-Commerce described in the book Go Lean … Caribbean. We can do this; we can elevate our communities and our own retail eco-systems. We can be a better place to live, work and play; and a better place to shop.

🙂

Download the free e-Book of Go Lean … Caribbean – now!

Sign the petition to lean-in for the roadmap for the Caribbean Union Trade Federation.

 

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Location Matters, Even in a Virtual World

Go Lean Commentary 

CU Blog - Location Still Matters in a Virtual World - Photo 1Location, location, location …

Despite the direct references to the physical world, it turns out that ‘location’ is equally important in the virtual world.

The consideration of location is the most important factor in the Art-and-Science of Marketing. That field has these 4 charters, considered the 4 P’s, but location rises to the front of the priorities:

  • Place – Location, location, location… (See Appendix below).
    Can also refer to distribution; the destination and activities that make the product available to consumers.
  • Product – The goods and/or services offered by a company to its customers.
  • Price – The amount of money paid by customers to purchase the product
  • Promotion – The activities that communicate the product’s features and benefits and persuade customers to purchase the product.
    Source: Marketing Online Journal

But for the virtual world – or electronic commerce – the discussion of location considers “community” more so than buildings. “Community” as in community ethos; this is defined as the fundamental character of a culture, that informs the beliefs, customs, or practices of a group or society.

So where – which community – an e-Commerce company is located in really matters … for access to the right ethos, skilled talent, support services and capital. Is the Caribbean a good location for electronic commerce? No, we are not!

Can we be a good location for electronic commerce? Yes, we can!

We must simply adopt the appropriate community ethos; then execute the proper strategies, tactics and implementations to foster the industrial policies, entrepreneurial opportunities and jobs.

There is a model for us to follow:

Ann Arbor, Michigan.

In a previous blog-commentary on April 16, 2015 by the movement behind the book Go Lean … Caribbean, the college-town of Ann Arbor was examined as part of a year-long tour of the economic anatomy of City of Detroit and surrounding Michigan cities. The book identified the Detroit metropolitan area (Page 140) as a Failed-City that parallels many Caribbean communities. Yet still, out of the “ashes of decay”, a few positive innovations were observed-and-reported on, such as the impactful community of Ann Arbor. That previous blog quoted the following:

The idea of impactful cities aligns with the book Go Lean…Caribbean in stressing the elevation of the societal engines through entrepreneurial endeavors. The book asserts that Caribbean society can be elevated by improving the eco-system to live, work, learn and play. This is the example of Ann Arbor.

The Go Lean roadmap accepts that change has come to the global marketplace, due mostly to the convergence of Internet & Communications Technology (ICT). The book posits that size no longer matters, that from any location – like Ann Arbor … – innovative solutions can be developed and promoted to an appreciative audience. What matters most is the innovation, not the location; so any Caribbean member-state, large or small can be impactful. The first requirement is the community ethos of valuing intellectual property. This ethos would be new for the Caribbean market; it is therefore a mission of the CU to forge.

The Go Lean roadmap asserts that one individual or community can make a difference in the quest to elevate Caribbean society – the promoters of Go Lean have come to Ann Arbor to observe and report on their progress. We want the same outcomes by fostering genius qualifiers in our region; we therefore need impactful college-towns in the Caribbean.

Consider this example of a world renowned company, based in Ann Arbor, that embraced that city’s spirit and most-assuredly rebooted their company, culture and fortunes. That company is Domino’s Pizza. Yes, a pizza company with more staff in Information Technology than any other department in the corporate headquarters. They place a huge emphasis on developing- deploying technology-based solutions, while also improving their underlying product, Pizza. This story is portrayed in this VIDEO here:

VIDEOBehind Domino’s Pizza’s recipe for successhttp://www.cbsnews.com/videos/dominos-pizzas-recipe-for-success

Published on Mar 25, 2017 – Domino’s Pizza is hotter than ever.
One big reason has to do with marketing seven years ago that helped save the day when the flat-bread company was flatlining… .
“In 2009, we decided that technology was going to be a big deal,” CEO Patrick Doyle said. Domino’s has more people working in IT than anywhere else in the company, at its Ann Arbor, Michigan, headquarters. CBS News correspondent Michelle Miller reports.
(Read the full transcript here: http://www.cbsnews.com/videos/dominos-pizzas-recipe-for-success)

CU Blog - Location Still Matters in a Virtual World - Photo 2

See a related VIDEO here: Domino’s® Pizza Turnaround by Domino’s Pizza on YouTube

The book Go Lean…Caribbean strategizes technology as well; in fact that Internet & Communications Technologies (ICT) – e-Commerce is one such economic activity – is presented as a great equalizer for Small Country-States versus Big States on the world stage. The book stresses this point early (on Page 14) in the opening Declaration of Interdependence:

xxvii. Whereas the region has endured a spectator status during the Industrial Revolution, we cannot stand on the sidelines of this new economy, the Information Revolution. Rather, the Federation must embrace all the tenets of Internet Communications Technology (ICT) to serve as an equalizing element in competition with the rest of the world. The Federation must bridge the digital divide and promote the community ethos that research/development is valuable and must be promoted and incentivized for adoption.

The Go Lean book details technology and other strategies, tactics, implementations and advocacies to forge a cyber-friendly community ethos in the Caribbean. The book presents one such advocacy on Page 127, entitled:

10 Big Ideas … in the Caribbean Region

8 Cyber Caribbean
Forge electronic commerce industries so that the internet communications technology (ICT) can be a great equalizer in economic battles of global trade. This includes e-Government (outsourcing and in-sourcing for member-states systems) and e-Delivery, Postal Electronic Last Leg mail, e-Learning and wireline/wireless/satellite initiatives.

The opening Declaration of Interdependence also stressed the need for entrepreneurship and job creation. The book relates that the right community ethos can be – must be – forged, especially if we want to create jobs … in this new economy; (we want those jobs). See that pronouncement here also in the opening Declaration of Interdependence on Page 14:

xxvi. Whereas the Caribbean region must have new jobs to empower the engines of the economy and create the income sources for prosperity, and encourage the next generation to forge their dreams right at home, the Federation must therefore foster the development of new industries, like … frozen foods …. In addition, the Federation must invigorate the enterprises related to existing industries like tourism… – impacting the region with more jobs.

The Go Lean book serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU), for the elevation of all 30 member-states of the Caribbean. This CU/Go Lean roadmap has these 3 prime directives:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion and create 2.2 million new jobs.
  • Establishment of a security apparatus to protect the resultant economic engines.
  • Improve Caribbean governance to support these engines.

This commentary examined many other companies and many other cities, detailing their successes and failures in transforming their communities. Consider this sample of earlier blogs:

https://goleancaribbean.com/blog/?p=10449 Model of an ‘empowering’ family/company empowering a city: Detroit
https://goleancaribbean.com/blog/?p=10140 Lessons Learned from Detroit demolishing thousands of structures
https://goleancaribbean.com/blog/?p=8982 GraceKennedy: Profile of a Caribbean Transnational Corporation
https://goleancaribbean.com/blog/?p=8669 Detroit makes Community College free
https://goleancaribbean.com/blog/?p=7586 Company Blink Health: The Cure for High Drug Prices
https://goleancaribbean.com/blog/?p=7235 Flint, Michigan – A Cautionary Tale
https://goleancaribbean.com/blog/?p=5155 Tesla unveils super-battery to power homes
https://goleancaribbean.com/blog/?p=4587 Burlington, Vermont: First city to be powered 100% by renewables
https://goleancaribbean.com/blog/?p=3152 Making a Great Place to Work®
https://goleancaribbean.com/blog/?p=3490 How One Entrepreneur Can Rally a Whole Community
https://goleancaribbean.com/blog/?p=2488 Role Model Jack Ma brings Alibaba to America
https://goleancaribbean.com/blog/?p=1416 Role Model Amazon’s new FIRE Smartphone

The Go Lean book and these accompanying blogs posit that the economic failure in the Caribbean in the past in general is the result of the lack of diversity in our industrial development. The region depends too heavily on tourism. We need to be prepared for the new economy – with the tenants of ICT. While location does not matter online, when it comes to e-Commerce, location does matter for having a community that fosters the right attitudes and achievements.

The Go Lean book asserts that the Caribbean nations must do better! We must look for these ICT opportunities for economic expansion; consider “10 Ways to Foster e-Commerce” (Page 198).

The requisite investment of the resources (time, talent, treasuries) for this goal may be too big for any one Caribbean member-state alone, so shifting the responsibility to a region-wide, professionally-managed, deputized technocracy will result in greater production and greater accountability.

The Go Lean roadmap is designed to facilitate economic growth and job creation, by modeling companies like Domino’s and cities like Ann Arbor. We want to be their protégés … and definitely not their parasites.

Now is the time for all of the Caribbean, the people, entrepreneurs, business establishments and even the governing institutions, to lean-in to this Go Lean roadmap to make the Caribbean homeland a better place to live, work and play. 🙂

Download the free e-book of Go Lean … Caribbean – now!

Sign the petition to lean-in for the roadmap for the Caribbean Union Trade Federation.

———-

Appendix Title: Who coined the phrase ‘location, location, location’?

Language expert William Safire searches for who came up with the phrase “location, location, location” in the Times Magazine this weekend after a colleague working on a wedding announcement said the phrase was attributed to a British real estate tycoon named Lord Harold Samuel. Lord Samuel’s 1987 obituary names him as the phrase coiner, but the editor of the “Yale Book of Quotations” found the phrase used in a real estate classified ad in the Chicago Tribune in 1926.

Lord Samuel was 14 years old at the time. Safire said the context of the 1926 ad suggests it was already a familiar phrase in Chicago and phrasal etymologists are not yet finished with this challenge.
Source: The Real Deal – South Florida Real Estate News – Posted June 9, 2009; retrieved April 24, 2017 from: http://bit.ly/2jyEzbD

 

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Retail Apocalypse – Preparing for the Inevitable

Go Lean Commentary

Remember the dream … of 7 Fat Cows and 7 Skinny Cows?

The articulation of the dream was that the 7 Fat Cows represented 7 prosperous years while the 7 Skinny Cows represented 7 years of famine with poverty and distress. – The Bible; Genesis Chapter 41.
CU Blog - Retail Apocalypse - Preparing for the Inevitable - Photo 0

In that Bible drama of Joseph in ancient Egypt, those circumstances were more than just in a dream; it was a prophecy of prosperity and famine. It came true!

Joseph was able to use the foresight to prepare that kingdom for adversity, after first exploiting the opportunities.

Here it comes again.

There is feast and famine “in the cards” as related to the retail eco-system. On one end of the spectrum , there will be prosperity for electronic commerce stakeholders, but on the other end, for brick-and-mortar establishments, there will be a Retail Apocalypse.

Will be? Actually, the threat has already manifested!

This is the assertion in this news article by the financial-economic magazine Business Insider:

CU Blog - Retail Apocalypse - Preparing for the Inevitable - Photo 1

Title: The retail apocalypse has officially descended on America
By: Hayley Peterson

Thousands of mall-based stores are shutting down in what’s fast becoming one of the biggest waves of retail closures in decades.

More than 3,500 stores are expected to close in the next couple of months.

Department stores like JCPenney, Macy’s, Sears, and Kmart are among the companies shutting down stores, along with middle-of-the-mall chains like Crocs, BCBG, Abercrombie & Fitch, and Guess.

CU Blog - Retail Apocalypse - Preparing for the Inevitable - Photo 2

Some retailers are exiting the brick-and-mortar business altogether and trying to shift to an all-online model.

For example, Bebe is closing all its stores — about 170 — to focus on increasing its online sales, according to a Bloomberg report.

Some are going out of business altogether, like The Limited which recently shut down all 250 of its stores.

Others, such as Sears and JCPenney, are aggressively paring down their store counts to unload unprofitable locations and try to stanch losses.

CU Blog - Retail Apocalypse - Preparing for the Inevitable - Photo 3Sears is shutting down about 10% of its Sears and Kmart locations, or 150 stores, and JCPenney is shutting down about 14% of its locations, or 138 stores.

According to many analysts, the retail apocalypse has been a long time coming in the US, where stores per capita far outnumber that of any other country.

The US has 23.5 square feet of retail space per person, compared with 16.4 square feet in Canada and 11.1 square feet in Australia, the next two countries with the most retail space per capita, according to a Morningstar Credit Ratings report from October.

Visits to shopping malls have been declining for years with the rise of e-commerce and titanic shifts in how shoppers spend their money. Visits declined by 50% between 2010 and 2013, according to the real-estate research firm Cushman & Wakefield.

And people are now devoting bigger shares of their wallets to restaurants, travel, and technology than ever before, while spending less on apparel and accessories.

As stores close, many shopping malls will be forced to shut down as well.

When an anchor store like Sears or Macy’s closes, it often triggers a downward spiral in performance for shopping malls.

Not only do the malls lose the income and shopper traffic from that store’s business, but the closure often triggers “co-tenancy clauses” that allow the other mall tenants to terminate their leases or renegotiate the terms, typically with a period of lower rents, until another retailer moves into the anchor space.

To reduce losses, malls must quickly find a replacement tenant for the massive retail space that the anchor store occupied, which is difficult — especially in malls that are already financially strapped — when major department stores are reducing their retail footprints.

That can have grave consequences for shopping malls, especially in markets where it’s harder to transform vacant mall space into non-retail space like apartments, according to analysts.

The nation’s worst-performing malls — those classified in the industry as C- and D-rated — will be hit the hardest by the store closures.

The real-estate research firm Green Street Advisors estimates that about 30% of all malls fall under those classifications. That means that nearly a third of shopping malls are at risk of dying off as a result of store closures.
Source: Business Insider e-Zine. Posted 03/21/2017; retrieved 04/17/2017 from: http://www.businessinsider.com/the-retail-apocalypse-has-officially-descended-on-america-2017-3

CU Blog - Retail Apocalypse - Preparing for the Inevitable - Photo 4

Related:

1. Monday Market Mayhem – The Retail Apocalypse – Look out Wall Street

2. Dollar General is defying the retail apocalypse and opening 1,000 stores

See the related AUDIO Podcast below here:

———–

AUDIO Podcast – Wal-Mart battles Amazon with discounts for online ordering and store pickup – https://www.marketplace.org/2017/04/14/business/its-battle-amazon-walmart-offers-discounts-ordering-online-and-picking-store

Published April 14, 2017 – Big Box giant Wal-Mart battling e-Commerce giant Amazon for New Economy fulfillment.

As noted in the foregoing, the Retail Apocalypse is affecting the news in the United States. It’s only the news today, tomorrow will be jobs, the next day the finance apparatus holding the debt (mortgages and security instruments on Wall Street) for the many shopping malls and then soon, the rest of the economy will be impacted.

This is so familiar. Remember the housing-real estate bubble in 2003 to 2010. This previous blog-commentary identified the following 5 steps of a bubble:

1.   Displacement

2.   Boom

3.   Euphoria

4.   Profit Taking

5.   Panic

Here we go again! Sounds like a crisis is imminent.

The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU) and Caribbean Central Bank (CCB); it declares that a crisis is a terrible thing to waste – quoting famed American Economist Paul Romer. Though the impending crisis is slated for the US, the actuality of economic contagions mean that the Caribbean member-states will be affected as well.

Where do the tourists come from that drive the Caribbean region’s primary economic driver?

The question is rhetorical; the answer is obvious!

The Go Lean book seeks to prepare the Caribbean region for the change dynamics impacting the world. The “Agents of Change” at play in the foregoing news source are as follows:

  • Technology
  • Globalization

The underlying issue with the Retail Apocalypse is not the demand for retail products, it is the supply. Consumers are still demanding and consuming fashion and commodities, just not at shopping malls; e-Commerce is “all the rage”.

Consider the experience of this commentator:

I went to buy 3 pairs of slacks.

I was only able to find one – with the brand, make, size and color – at a Big Box retail store. So then I went home and matched the brand, model, size with the e-Commerce merchant Amazon.com and acquired the same pants in 2 divergent colors that the Big Box retailer did not have in inventory. 3 days later, the whole shopping expedition was over; I acquired 3 pairs of slacks, primarily from the online merchant and delivered by the shipping company United Parcel Service (UPS).

The quest of the Go Lean/CU roadmap is to elevate the Caribbean’s societal engines – not the US – starting first with economics (jobs, commercial developments and entrepreneurial opportunities). In fact, the following 3 statements are identified as the prime directives of the CU:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to protect the resultant economic engines.
  • Improve Caribbean governance – as e-Commerce alters sales & border taxes – to support these engines.

The changes taking place in the US with the Retail Apocalypse will eventually traverse the Caribbean member-states as well. This is the parallel with the opening Bible Drama. A crisis is coming and we have the opportunity to exploit the prosperous years and prepare for the famine. The Caribbean region – all 30 member-states – needs to better exploit e-Commerce. There are so missing ingredients, fully detailed in the Go Lean book; see  this sample advocacy on Page 198:

10 Ways to Foster e-Commerce

1 Leverage the full population – 42 million people in all 30 member-states to deploy the CU and the CCB.
2 Regional Currency (Caribbean Dollar or C$)
3 Card Culture
The CU will seek to foster the eco-system for e-payments beyond government activity. To assimilate this change, a card culture, on Main Street, will entail utilizing debit/credit cards, benefits pay cards, and even smart cards on cruise ships.
The CU will collectively bargain with the cruise lines to deploy C$ electronic “purses” to facilitate port-side and onboard retail commerce. All of these changes will garner a better monetary multiplier on the CU economy, by expanding M1.
4 CU Social Media
The CU web portal www.myCaribbean.gov will grant free access, email, IM, and profile pages for CU stakeholders, even normalizing communications thru social media sites. This will facilitate internet commerce activities in the region, as the CU will have hot data on profiles, habits and previous activities, thereby creating opportunities for measured marketing.
5 A Market for the Downloads of Intellectual Properties
6 Remittance Methods (Card & Email)
7 Mobile Apps – Hi-Density Wi-Fi
8 Regional Postal Services – CPU
The CU will assume the responsibility for mail services in the region; (all member-state postal employees will become federal civil servants). The embrace of the Caribbean Postal Union allows for parcel mail to be optimally shipped and delivered throughout the region, with Customs considerations in place. The CPU will therefore ensure the fulfillment side of e-commerce, even allowing for computer applications for printing electronic stamps/barcodes for value savings.
9 Turnpike Logistics
10 Customs and Import Optimizations

The missing ingredients for this new marketplace – electronic commerce – are not just banking-related, the full eco-system must be enabled: electronic (technology), commerce (trade) and fulfillment (logistics). The implementation of these provisions will constitute a New Day for the region. Overall, the Go Lean book stresses the community ethos, strategies, tactics, implementations and advocacies to reboot, reform and transform the economic engines of Caribbean society, so as to benefit from changes coming due to the Retail Apocalypse, this New Day.

Though not directly mentioned in the Go Lean book, this Retail Apocalypse is planned for in the roadmap. A comprehensive view of  the technocratic stewardship for the region’s economic engines, including the banking eco-system, is presented early in the book with these opening pronouncements in the Declaration of Interdependence (Page 13 and 14):

xxiv. Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

xxvii. Whereas the region has endured a spectator status during the Industrial Revolution, we cannot stand on the sidelines of this new economy, the Information Revolution. Rather, the Federation must embrace all the tenets of Internet Communications Technology (ICT) to serve as an equalizing element in competition with the rest of the world. The Federation must bridge the digital divide and promote the community ethos that research/development is valuable and must be promoted and incentivized for adoption.

The points of effective, technocratic banking and retail stewardship were further elaborated upon in previous blog/commentaries. Consider this sample:

https://goleancaribbean.com/blog/?p=11184 Big Bank investing $Billion on ‘Fintech’ for e-Commerce positioning
https://goleancaribbean.com/blog/?p=8823 Lessons from China – WeChat: Model for Caribbean Social Media
https://goleancaribbean.com/blog/?p=8704 Lesson from MetroCard
https://goleancaribbean.com/blog/?p=7991 Transformations: Caribbean Postal Union – Delivering the Future
https://goleancaribbean.com/blog/?p=7034 The Future of Money
https://goleancaribbean.com/blog/?p=6635 New Security Chip in Credit Cards Unveiled
https://goleancaribbean.com/blog/?p=5668 Move over Mastercard/Visa – Time for Local Banking Cards
https://goleancaribbean.com/blog/?p=4425 Cash, Credit or iPhone …
https://goleancaribbean.com/blog/?p=3889 Royal Bank of Canada’s EZPay – Ready for Change
https://goleancaribbean.com/blog/?p=3881 The Need for Regional Cooperation for Cyber-Security & e-Security
https://goleancaribbean.com/blog/?p=3858 Model of Central Banking Technocracy: ECB 1 trillion Euro stimulus
https://goleancaribbean.com/blog/?p=2488 Model of an E-Commerce Fulfillment Company: Alibaba
https://goleancaribbean.com/blog/?p=1416 Model of an E-Commerce Fulfillment Company: Amazon
https://goleancaribbean.com/blog/?p=1350 PayPal’s model to pay for e-Commerce
https://goleancaribbean.com/blog/?p=906 Bitcoin model to pay for e-Commerce
https://goleancaribbean.com/blog/?p=528 Facebook to pay for e-Commerce

Warning to all retail stakeholders – buyers, sellers and governments: Change is coming!

This is a familiar stance – preparing for the inevitable – for the Go Lean movement; there have been previous warnings of disruptive changes; see this sample here:

https://goleancaribbean.com/blog/?p=7847 To the Personal Computer industry: Cloud Computing, Smartphones and Tablets are making actual laptop and desktop computers inconsequential.
https://goleancaribbean.com/blog/?p=6151 To the regional government’s Revenue Officials: 3-D Printing is coming and will change fabrication to local rather than import. This will disrupt border taxes revenue expectations.
https://goleancaribbean.com/blog/?p=6016 To the Infrastructure Planners: Climate Change is making Caribbean summers hot-hot-hot and northern winters milder; there must be cooperative refrigeration to provide relief, otherwise people will leave for northern destinations.
https://goleancaribbean.com/blog/?p=5784 To Jamaica’s Public Safety Officials: Human Rights protections must be extended to people who identify as LGBT. Whether you agree or not, the international community will force you to respect their rights for life, liberty and the pursuit of happiness.
https://goleancaribbean.com/blog/?p=5210 To the Cruise Line industry: The Caribbean region’s collective bargaining will extract greater benefits and protections for port city commerce.
https://goleancaribbean.com/blog/?p=5155 To the Caribbean Power Grip: Home-based batteries will allow for successful deployments of solar/wind power generation and require less power from the grid.
https://goleancaribbean.com/blog/?p=4767 To the regional government’s Revenue Officials: Under the WTO regime, customs duties must eventually be eliminated; same too with conditional property taxes. VAT or Sales Taxes are OK.

As for the Retail Apocalypse, now is the time for all stakeholders of Caribbean banking, retail and governments to lean-in for the empowerments for e-Commerce described here-in and in the book Go Lean … Caribbean. This is where the marketplace is going, not just tomorrow, but already here today. We can do this; we can elevate our communities and our retail eco-systems. We can be a better place to live, work and play. 🙂

Download the free e-book of Go Lean … Caribbean – now!

Sign the petition to lean-in for the roadmap for the Caribbean Union Trade Federation.

 

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JPMorganChase spent $10 billion on ‘Fintech’ for 1 year

Go Lean Commentary

Looking for a job? Where are the jobs to be created for the 21 Century?

JPMorgan - Photo 2Try banking! Financial/Banking technology to be exact. This sub-industry sector is referred to as ‘Fintech’; see the definition in the Appendix below.

So rather than the individual, if a community wants to foster job creation, ‘Fintech’ offers attractive options.

What’s more, according to this news article, one New York-based bank, JPMorganChase, spent almost $10 Billion on Fintech … last year alone. The CEO, Jaime Dimon, announced that there will be even more investment in this vital area. See the full story here:

Title: Jamie Dimon – JPMorgan spent nearly $10 billion on tech last year
By: Ari Levy

JPMorgan CEO Jamie Dimon said the bank spent $9.5 billion on technology in 2016 and has plans this year to introduce products for digital banking, online investment advice and electronic trading.

JPMorgan - Photo 1In his annual letter to shareholders on Tuesday, Dimon said the bank is also “collaborating with some excellent fintech companies to dramatically improve our digital and other customer offerings.”

Among the leading bank executives, Dimon has established himself as the biggest presence in San Francisco and Silicon Valley, making regular trips West to meet with tech executives and venture capitalists. He made headlines in his shareholder letter two years ago, warning investors that “Silicon Valley is coming.”

Rather than view potential banking disruption as a threat to JPMorgan, Dimon has embraced new technologies. About $3 billion, or almost one-third, of last year’s investment went to “new initiatives,” including $600 million on fintech solutions and projects.

Dimon highlighted partnerships with emerging tech companies like Zelle for consumer payments, Roostify for online mortgages, TrueCar for auto finance and On Deck Capital, which provides loans to small businesses.

The JPMorgan CEO also took a swipe at the U.S. immigration system and how it hurts this country’s ability to compete globally. Dimon said that about 40 percent of people receiving advanced degrees in science, technology engineering and math at American universities are from other countries. Yet they have no legal way to stay when they’re finished with school.

“We are forcing great talent overseas by not allowing these young people to build their dreams here,” Dimon wrote.

Source: CNBC – Business & Finance TV Channel; posted 04/04/2017; retrieved 04/05/2017) from: http://www.cnbc.com/2017/04/04/jamie-dimon-letter-jpmorgan-spent-9-5b-on-tech-last-year.html

So where are the jobs to be found? According to the foregoing, this industry – Fintech – is one of the options.

In general, this has been a frequent question for the movement behind the book Go Lean … Caribbean. The book presents the Caribbean region a roadmap to elevate its societal engines, starting first with economics (jobs, industrial development and entrepreneurial opportunities). In fact, the prime directives of the roadmap includes the following 3 statements:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to protect the resultant economic.
  • Improve Caribbean governance to support these engines.

The Go Lean book introduces the Caribbean Union Trade Federation (CU) as a federal government for 30 regional member-states, plus the Caribbean Central Bank (CCB) as a cooperative for the existing Central Banks. Together, these new entities will provide stewardship for the region’s banks.

Banking is very familiar to the Caribbean. This industry has proven to be the secondary industrial driver for many Caribbean communities, trailing only tourism. The Go Lean book explains (Page 58):

Core Competence – What are we best at doing?
There are features of Caribbean life that work very well now. We are currently the “best address” in the world. If one has the resources, there is no better place to call home – imagine a lottery winner relocating to a Caribbean paradise. Further, if someone has the resources for only a short time-frame, there is no better place to vacation. And thus, as a regional community, the Caribbean is best at servicing:

  • Tourism
  • Cruise Operations
  • Offshore Banking – The Caribbean colonial heritage created the ideal climate for offshore banking. Many of the European expatriates administering the colonies didn’t want to burden themselves with aggressive tax policies or strenuous financial compliance, and so inadvertently created a climate for tax sheltering and avoidance. Though the industry is professionally managed today, with best-of-class oversight and compliance requirements, the reputations and image is still deep-rooted based on this history. Consider Bermuda, Cayman Islands and Nassau’s proliferation with hundreds of offshore banks. When a celebrity in North America or Europe is labeled with “deposits in the Caymans or Bermuda”, there is an immediate public’s reaction. This was the case for US Presidential Candidate Mitt Romney in the 2012 Presidential election.
  • Specialty Agriculture.

Overall, the Go Lean book stresses the community ethos, strategies, tactics, implementations and advocacies to reboot, reform and transform the economic engines of Caribbean society.

How many jobs are to be impacted?

In general the roadmap projects 2.2 million new jobs across the 30 Caribbean member states. But for the Financial/Banking industry, the plan calls for:

Banking – New jobs from Banking reform, and adoption of e-payments, & card products  –  6,000

The Caribbean technology industry projects even more new jobs to be created in the region; the count was published at:

Technology – Direct:    Products and services for IT architecture, application and administration  –  20,000

Technology – Indirect: Service jobs for technology support and logistics  –  44,000

In total, the projection is for 70,000 new jobs.

Considering the experience of JPMorganChase Bank in the foregoing article – spending $10 Billion – and the projections in the Go Lean roadmap, it must be concluded that Fintech is one area “where the jobs are”.

The Go Lean book asserts that to thrive in the new global marketplace there must be an agile technocratic administration for the region’s banking; it will affect all aspects of Caribbean life. This comprehensive view – economics, security and governance – is the charge of the Go Lean roadmap, opening with these pronouncements in the Declaration of Interdependence (Page 13 and 14):

xxiv. Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

xxvii. Whereas the region has endured a spectator status during the Industrial Revolution, we cannot stand on the sidelines of this new economy, the Information Revolution. Rather, the Federation must embrace all the tenets of Internet Communications Technology (ICT) to serve as an equalizing element in competition with the rest of the world. The Federation must bridge the digital divide and promote the community ethos that research/development is valuable and must be promoted and incentivized for adoption.

The points of effective, technocratic banking stewardship were further elaborated upon in previous blog/commentaries. Consider this sample:

https://goleancaribbean.com/blog/?p=10585 Two Pies: Economic Plan for a New Caribbean
https://goleancaribbean.com/blog/?p=10513 Transforming ‘Money’ Countrywide – Model of India
https://goleancaribbean.com/blog/?p=7140 Central Bank of Azerbaijan sets its currency on free float
https://goleancaribbean.com/blog/?p=7034 The Future of Money
https://goleancaribbean.com/blog/?p=6800 Venezuela sues black market currency website in US
https://goleancaribbean.com/blog/?p=6635 New Security Chip in Credit Cards Unveiled
https://goleancaribbean.com/blog/?p=5668 Move over Mastercard/Visa – Time for Local Banking Cards
https://goleancaribbean.com/blog/?p=4425 Cash, Credit or iPhone …
https://goleancaribbean.com/blog/?p=3889 Royal Bank of Canada’s EZPay – Ready for Change
https://goleancaribbean.com/blog/?p=3881 The Need for Regional Cooperation for Cyber-Security & e-Security
https://goleancaribbean.com/blog/?p=3858 Model of Central Banking Technocracy: ECB 1 trillion Euro stimulus
https://goleancaribbean.com/blog/?p=3582 For Canadian Banks: Caribbean is a ‘Bad Bet’
https://goleancaribbean.com/blog/?p=1350 PayPal’s Fintech model: Expand payment services to 10 markets
https://goleancaribbean.com/blog/?p=906 Bitcoin virtual currency needs regulatory framework to change image
https://goleancaribbean.com/blog/?p=528 Facebook plans to provide Fintech – Mobile payment services
https://goleancaribbean.com/blog/?p=467 Barbados Central Bank records $3.7m loss in 2013

In a previous blog-commentary, the question was asked:

Who will win the [Fintech] “space race” between all the big Information Technology companies (like Facebook, Google, Apple, Paypal, etc.)? It is not known yet! But for the Caribbean, we must not be spectators only in this “space race”. Not this time!

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VIDEO – What is a ‘Robo-Advisor’ – http://www.investopedia.com/terms/r/roboadvisor-roboadviser.asp

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Now is the time for all stakeholders of Caribbean banking to lean-in for the empowerments described here-in and in the book Go Lean … Caribbean. This is where the jobs are, today and tomorrow. We can elevate our communities and our banking eco-systems. We can be a better place to live, work and play. 🙂

Sign the petition to lean-in for the roadmap for the Caribbean Union Trade Federation.

Download the free e-book of Go Lean … Caribbean – now!

———

Appendix – What is ‘Fintech’

CU Blog - Transforming Money Countrywide - Photo 2Fintech is a portmanteau – a word derived from a blending of two or more distinct forms as smog from smoke and fog) – of financial technology that describes an emerging financial services sector in the 21st century. Originally, the term applied to technology applied to the back-end of established consumer and trade financial institutions. Since the end of the first decade of the 21st century, the term has expanded to include any technological innovation in the financial sector, including innovations in financial literacy and education, retail banking, investment and even crypto-currencies like bitcoin.

BREAKING DOWN ‘Fintech’
The term financial technology can apply to any innovation in how people transact business, from the invention of money to double-entry bookkeeping. Since the internet revolution and the mobile internet revolution, however, financial technology has grown explosively, and fintech, which originally referred to computer technology applied to the back office of banks or trading firms, now describes a broad variety of technological interventions into personal and commercial finance.

Fintech’s Expanding Horizons
Already technological innovation has up-ended 20th century ways of trading and banking. The mobile-only stock trading app Robinhood charges no fees for trades, and peer-to-peer lending sites like Prosper and Lending Club promise to reduce rates by opening up competition for loans to broad market forces. Technologies being designed that should reach fruition by 2020 include mobile banking, mobile trading on commodities exchanges, digital wallets (like Apple (AAPL) and Google’s (GOOG) developing mobile wallet systems), financial advisory and robo-advisor sites like LearnVest and Betterment, and all-in-one money management tools like Mint and Level.

New Tech in Fintech
In the olden days, individuals and institutions used the invisible hand of the market – represented by the signaling function of price – to make financial decisions. New technologies, like machine learning, predictive behavioral analytics and data-driven marketing, will take the guess work and hocus pocus out of financial decisions. “Learning” apps will not only learn the habits of users, often hidden to themselves, but will engage users in learning games to make their automatic, unconscious spending and saving decisions better. On the back end, improved data analytics will help institutional clients further refine their investment decisions and open new opportunities for financial innovation.

Fintech Users
Who uses fintech? There are four broad categories: 1) B2B for banks and 2) their business clients; and 3) B2C for small businesses and 4) consumers. Trends toward mobile banking, increased information, data and more accurate analytics and decentralization of access will create opportunities for all four groups to interact in heretofore unprecedented ways.

Source: Retrieved 04-05-2017 from: http://www.investopedia.com/terms/f/fintech.asp

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VIDEO – What is ‘FinTech’ – http://www.investopedia.com/terms/f/fintech.asp

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Less and Less People Reading Newspapers

Go Lean Commentary

The Fourth Estate is under attack … by Free Market forces and technology. We should all be alarmed!

The Fourth Estate (or fourth power)… most commonly refers to the news media, especially print journalism or “the press”. The term makes implicit reference to the earlier division of the three Estates of the Realm: the clergy, the nobility, and the commoners. – Wikipedia.

This title is a reference to a societal-political force or institution whose influence is undeniable though it may not be consistently or officially recognized. In the US and other countries, there is constitutional protections for Freedom of the Press.

The First Amendment of the United States Constitution states:

  • Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.

The United Nations‘ 1948 Universal Declaration of Human Rights states:

  • “Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference, and impart information and ideas through any media regardless of frontiers”.

A free press is important for modern societies. Despite all the news and information, it can also be an important sentinel against “bad actors” – yes, “bad actors” will always emerge. But this freedom is a two-edge sword: free to succeed and free to fail. So the entities of the Fourth Estate must adapt, like everyone else, to global changes and competitive shifts, otherwise they die.

In a previous blog-commentary, the following observance was made:

“Print is not dead… yet? I almost didn’t notice!”

“If print is not dead yet, does that mean it is going to put up a fight? Will it make a comback? I say “No”. It is just a matter of time. Print might experience only a slow death, but die … it will.”

Continuing the count, if there is a Fourth Estate, then to no one’s surprise, there is also a Fifth Estate:

The Fifth Estate is a socio-cultural reference to groupings of outlier viewpoints in contemporary society, and is most associated with bloggers, journalists publishing in non-mainstream media outlets, and the social media or “social license” . The “Fifth” Estate extends the sequence of the three classical Estates of the Realm and the preceding Fourth Estate, essentially the mainstream press. The use of “Fifth Estate” dates to the 1960s counterculture, and in particular the influential The Fifth Estate, an underground newspaper first published in Detroit in 1965. Web-based technologies have enhanced the scope and power of the Fifth Estate far beyond the modest and boutique[1] conditions of its beginnings. – Wikipedia

This commentary is a blog, thus representative of the Fifth Estate. This continues a long series on the theme of New Media:

https://goleancaribbean.com/blog/?p=10052 Fake News? Welcome to America
https://goleancaribbean.com/blog/?p=5353 POTUS and the Internet
https://goleancaribbean.com/blog/?p=4076 American Media Fantasies -vs- Weather Realities
https://goleancaribbean.com/blog/?p=3974 Google and Mobile Phones – Here comes Change
https://goleancaribbean.com/blog/?p=273 10 Things We Don’t Want from the US – #9: American Media Domination
https://goleancaribbean.com/blog/?p=248 Print is not dead yet

Welcome to the future. Say “Goodbye” to yesterday. Newspapers are representative of that yesterday. The daily newspaper in most communities are getting thinner, smaller in size, distribution and influence. This fact is born out in this news article:

Study: Less Than A Quarter Of Americans Read Newspapers
(CBS HOUSTON) — The number of Americans reading print newspapers, magazines and books is in rapid decline.

Only 29 percent of Americans now say they read a newspaper yesterday – with just 23 percent reading a print newspaper. Over the past decade, the percentage reading a print newspaper the previous day has fallen by 18 points (from 41 percent to 23 percent). Somewhat more (38 percent) say they regularly read a daily newspaper, although this percentage also has declined, from 54 percent in 2004.

Also according to the recent Pew Research Center poll, Americans enjoy reading as much as ever – 51 percent say they enjoy reading a lot. This is little changed over the past two decades, but a declining proportion gets news or reads other material on paper on a typical day. Many readers are now shifting to digital platforms to read the papers.

Substantial percentages of the regular readers of leading newspapers now read them digitally. Currently, 55 percent of regular New York Times readers say they read the paper mostly on a computer or mobile device, as do 48 percent of regular USA Today and 44 percent of Wall Street Journal readers.

Over the past decade, there have been smaller declines in the percentages of Americans reading a magazine or book in print (six points and four points, respectively) than for newspapers.

Print magazine reading is down by 7 percent from 2006, and book reading is down by 8 percent since 2006. Also, the percentage of people who wrote or received a personal letter declined 8 percent from 20 to 12 in the last six years.

And television viewership may be on the decline next.

While print sources have suffered readership losses in recent years, television news viewership has remained more stable. Currently, 55 percent say they watched the news or a news program on television yesterday, little changed from recent years. But there are signs this may also change. Only about a third (34 percent) of those younger than 30 say they watched TV news yesterday; in 2006, nearly half of young people (49 percent) said they watched TV news the prior day.

Among older age groups, the percentages saying they watched TV yesterday has not changed significantly over this period.

Source: CBS News; posted October 15, 2012; retrieved 03/05/2017 from: http://houston.cbslocal.com/2012/10/15/study-less-than-a-quarter-of-americans-read-newspapers/

The foregoing article is from 2012, but in the most recent episode of CBS Sunday Morning News Magazine (March 5, 2017), there was this “Pulse Poll”:

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CU Blog - Aereo Founder and CEO Chet Kanojia on the future of TV - Photo 1Many newspapers in major cities are “taking a hit”: circulation is down, advertising is down, the number of pages is down, but retail prices are up. The digital transformation is afoot. Consider the experience of the Miami Herald, in the Appendix below; (regrettably, a very long article).

So instead of newspapers, there is more reliance now on electronic media for news, information, and entertainment. The reference to electronic media does not only mean TV or radio, but rather, it includes the internet. A lot of consumers still read, just not in print, they now use internet websites, social media, e-Readers, blogs and email. This transformation does not only feature computer terminals and monitors, but smaller screens as well, as in mobile telephones or smart phones.

The change from the Fourth to the Fifth Estate is also affecting the legacy electronic media: TV and radio. These institutions are finding competition because of the internet.

As reported in that previous blog, “in the TV industry, more people are abandoning cable contracts for subscriptions services like Netflix and Hulu; they are still able to enjoy their favorite programming, just delivered by alternate means. For radio, the audience is shrinking due to the proliferation of mobile music options like Pandora, Rhapsody, Jango, Slacker, Roxio, etc.”

Are these future prospects true for the Caribbean as well?

The book Go Lean…Caribbean asserts that the “world is flat” and that globalization and technology has taken its toll on all aspects of Caribbean life. How are our media outlets doing in the region?

At first glance, the newspapers still thrive:

  • Circulation remain strong.
  • There are just as many pages – per section – compared to 10, 20 or 30 years ago.
  • The pages are still filled with advertising.
  • Retail prices has increased beyond inflation, close to $1 in equivalent US dollars.

This disposition is simply because there is less electronic delivery in the Caribbean. Alas, the same technology changes affecting the rest of the modern world will surely impact the Caribbean. Mobile-smartphone devices are becoming more ubiquitous, even in the Caribbean region in the countries normally considered Third World. The newspaper industry  in the region will be imperiled if there are no mitigations. The Go Lean book presents that mitigation.

The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU). This empowerment effort is designed to move the region forward, to the corner of opportunity and preparation. This roadmap calls for confederating the 30 member-states in the region to provide optimization solutions in the areas of economics, security and governance. The Fourth Estate relates to all three areas. The CU/Go Lean roadmap has these prime directives:

  • Optimization of the economic engines in order to grow the regional economy and create 2.2 million new jobs.
  • Establishment of a security apparatus to enhance public safety and protect the economic engines against “bad actors”.
  • Improvement of Caribbean governance to support these engines.

There is no doubt, the Print-Journalism industry is in decline. In conflict with the medium over elements of truth, the new American President, Donald Trump, pejoratively refers to the New York Times as the failing New York Times.

The Go Lean book purports that the Caribbean must do better. The Go Lean book details the policies and other community ethos to adopt, plus the executions of strategies, tactics, implementations and advocacies to elevate Caribbean society, and protect the media industry. The book details how to Bridge the Digital Divide (Page 31), deploy a customized Social Media network  (Page 111) branded as www.myCaribbean.gov with tentacles in mobile technologies – and Ways to Foster e-Commerce (Page 198).

All in all, the Go Lean roadmap posits that as a region, we cannot only expect to consume, but that we must create/compose as well. The end result of this roadmap is a complete eco-system to foster a viable electronic media industry.

Download the book Go Lean … Caribbean – now!

Sign the petition to lean-in for the roadmap for the Caribbean Union Trade Federation.

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Appendix – How The Miami Herald is getting to know its audience again

By: Kristen Hare

MIAMI — On the outside, the headquarters of the Miami Herald looks like any building in any part of town filled with wide warehouses, beige office plazas and chain restaurants. Inside, though, the values of the Herald are written on the walls.

Really.

On one teal green wall in slim white letters:

“Publish! Journalistic cowardliness is as evil as censorship.” — Gene Miller

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On another (from the adjacent newsroom of the Spanish daily El Nuevo Herald):

“El periódico es una espada y su empuñadura la razón.” — José Martí

CU Blog - Less and Less People Reading Newspapers - Photo 3

A few months ago, something new appeared on the big screen TVs hanging from cobalt blue walls in the middle of the newsroom: Chartbeat.

Newsrooms and journalists around the country have had access to real-time analytics for years. In March, the Herald joined in and gave everyone access to Chartbeat.

Then, every reporter was asked to raise total traffic to their stories by 7.5 percent. They got training in headline writing and search engine optimization. They started forming teams to function like startups, responsible for covering subjects such as Cuba, local government and food.

Change didn’t hit the newspaper industry in one big wallop. It has come, instead, in relentless small ones. The Herald didn’t just start making changes to adapt to digital, either. But for Aminda Marqués Gonzalez, the Herald’s executive editor and vice president, this year’s about accelerating those changes.

All of the shifts have one thing in common: They require everyone at the Herald to pay attention to its audience.

WELCOME TO MIAMI

In the middle of the newsroom, the big screens with Chartbeat tick along like departure boards at a train station. They serve a similar function, too. This story’s stalling, this one’s taking off, this one needs fuel.

The Herald is one of four legacy newspapers in the Knight-Temple Table Stakes Project, a $1.3 million initiative aimed at pushing regional news organizations toward the digital future. Here, analytics have been integral to that process.

But the Herald (and other McClatchy papers) didn’t wait until Table Stakes came along to get started. The company began working with the American Press Institute almost a year ago to try and get to know its audience better.

The institute’s Metrics for News program helps newsrooms figure out where their journalists are spending time, where their audiences are spending time and how to get the two to align more closely. Contrary to the typical notions of clickbait and virality, API has discovered that readers value actual reporting — enterprise work, local crime reporting and long-form journalism, among other things.

The Herald, for example, has found a strong and engaged audience for its local government coverage. But not every story resonates.

“It’s wonderful to say, we value enterprise, our focus is on enterprise, but if you’re a beat reporter, hey you make sources by going to meetings,” said Rick Hirsch, the Herald’s managing editor. “Part of this work is showing up.”

Add to this that Miami-Dade County has more than 30 municipalities, plus a big county and city government, and the Herald’s five local government reporters can’t possibly cover them all, even with a stable of freelancers. The challenge: How can the Herald structure coverage to build sources, keep track of what’s happening and make sure people find and read it?

In part, it’s about being less city-specific and focusing on topics everyone in the area cares about, Hirsch said. Should one reporter cover six cities, or should that reporter focus on transportation issues across them all? Should another focus on corruption? Another on spending and accountability?

“Are there ways to approach local government coverage that looks across city lines?” Hirsch asked. “I think there are, but it requires a little bit of a change in how we go about doing what we do, and it certainly means more of a team approach than we’ve had before.”

In the last few months, editors at the Herald began to see a way they just might be able make that happen.

MIAMI, INC

The Herald has launched several initiatives as part of the Table Stakes project. But one in particular ties in with all the rest: the formulation of “INCs,” (short for incorporated.) Basically, they’re meant to be self-contained startups within the newsroom.

“It’s a really different way of working,” Hirsch said. “The idea behind it is to develop a team approach with a leader who’s responsible to really focus on audience, to work with a team to develop coverage that responds to areas where we know there’s high engagement and at the same time look at other ways to reach people that aren’t just writing stories.”

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The people running INCs aren’t just in charge of coverage, but also getting that coverage to spread on social media. And that means thinking digitally.

So far, INCs include Spanish and English coverage of Cuba and the Herald’s food coverage. Other areas that will become INCs are crime and courts, local government, entertainment and coverage of sports that appeals to the Herald’s local and international readers.

Carlos Frías, food editor, is a one-man INC.

It took awhile for him to realize that it’s all about workflow. Now, he aggregates. He works on getting headlines and social media language right. He spends his time on in-depth features. And when Frías sees a story he can’t get to, he reaches out to other departments. Could a suburban reporter cover it? Someone in sports? He’s curating work from the rest of the Herald that makes sense for his audience.

“Before, I was kind of just shoveling coal, but now I’m at the point that I realize that the beauty of this INC idea is you can leverage the resources that you have at the paper,” he said.

In the past, for instance, a story about National Doughnut Day that wasn’t ready for the print edition wouldn’t have been published at all. But when Frías heard about a new doughnut shop, he contacted a suburban reporter and editor, published the story online that day and promoted it heavily on social media. It ended up running in the newspaper on Sunday. A story that previously had limited reach instead got the star treatment with an audience that loves food.

Not all the INCs are as clear or as straightforward, however. In Cuba Today is one of those. The Herald and El Nuevo Herald’s coverage of Cuba has readership in English and Spanish, and became a standalone site in each language in December, before the INCs debuted.

Now, it’s gone from a vertical to a startup within the newsroom.

The team, led by editor Nancy San Martin, has four staffers devoted to coverage of Cuba. Two are reporters, two are producers and translators. The audience for both sites are heavily bilingual. Original content does best.

The challenge, San Martin said, is maintaining two sites in two different languages as well as providing coverage for the Miami Herald and El Nuevo Herald in print and for digital. She’s considering combining them into one Spanglish site (using a mix of English and Spanish).

Fundamentally, INCs aren’t meant to be verticals but to harness the Herald’s audience, Marqués said. They start by figuring out who the audience is, how to reach it and how to help it grow. They all include aggregation and a strong focus on social media. They also all ask — what else? Beyond advertising, is there anything to monetize? Events? A custom database? A newsletter?

As with real startups, though, each INC has different needs, different expectations and different possibilities. Just like there’s really not one audience, there’s not one formula for reaching them.

NOT THE HUNGER GAMES

When Nicholas Nehamas started at the Herald two years ago, reporters weren’t paying attention to what people were reading, where they were reading it or for how long.

“Now, two years later, I look up and there’s a big monitor with Chartbeat on it,” said Nehamas, who covers real estate, which will eventually become an INC. “And that makes a big difference in the way we think about our coverage and the stories we write, so that’s been a big impact, I think.”

That’s also resulted in something a lot of newsrooms are already doing — deciding what they’ll stop covering. In the past, the business desk covered quarterly earnings reports from banks. No longer.

“There are things you have to cover, even if not many people read them, but this is not one of them,” he said.

Saying no to those reports means more time for enterprise. For Nehamas, that enterprise included being part of the team that investigated the Panama Papers.

One of his fears, when reporters were asked to figure out how readers were responding, was that their efforts would all boil down to clicks. And sure, if he spent all his time writing about J-Lo’s latest home sale, he could meet his traffic goals. But that’s not what’s happened.

“I think reporters are seeing that it’s not going to be ‘The Hunger Games,'” he said. “We’re not going to be out there finding the grossest stories we can to report. We’re still fulfilling the old mission.”

Marqués agreed.

“Listening to your readers doesn’t mean that you lose your journalism values,” she said.

It does mean making lots of adjustments, however. Here are some other changes happening at the Herald that focus on audience:

The morning breaking news team started working a digital schedule

“It sounds basic, but you can’t have a morning breaking news effort without moving people to the morning,” said Jeff Kleinman, day news editor.

Now, the team works from 7 a.m. to 4 p.m., (and their work includes a daily Facebook Live morning update.) They’re not thinking about print packages or print space, but updating stories as more information comes in. When a reporter recently asked Kleinman how long a story should be, it took him a minute to answer.

“I’m not thinking length first thing in the morning,” he said. “I’m thinking speed and video and how this story can develop.”

They’re trying to detach themselves from the print monster, he added, “and it’s a monster that we all love and that’s baked into our newsroom, but it sometimes can hold you back.”

They’re experimenting

The Herald’s sports desk is toying with the idea that its vast out-of-market readership will read coverage of sports in Spanglish. Instead of launching it as an INC or starting a new vertical, however, they’re testing to see if there’s an audience for it by using a Facebook group.

They’re betting all these changes will bring a valuable audience

Marqués started at the Herald as an intern in 1986. In 2002, she left to work as an editor at People Magazine. There, she found an industry very tuned in to its audience. Editors knew what stories readers responded to. They tested covers. It was still a print-centric business, but it was also an audience-centric one.

When she returned to the Herald in 2007, Marqués started asking questions about readers. Now, she has tools to answer those questions and to show how readers are responding.

For instance, in June of last year, the Herald had 5.6 million total unique visitors. This June, they hit 10.8 million.

And as the Herald’s newsroom has transformed during the last year or so, its advertising side has as well, said Orlando Comas, McClatchy’s director of sales.

“It’s really less about ‘we’re just a newspaper company’ and more that we are connecting to our local audiences and our local businesses,” he said.

Higher pageviews translate directly into increased revenue from display ads. Indirectly, he said, higher engagement turns into revenue by creating a local audience that stays around and is more valuable to advertisers.

Print is still a focus, and it still brings in money, Marqués said. But the future is digital, “so that’s where we have to be hyper-focused.”

“We say in shorthand, ‘audience first,'” said Suzanne Levinson, who worked for the Herald for more that 30 years and is now head of digital news at McClatchy. “It’s really about adjusting how we do journalism.”

Marqués agreed.

“It’s a new medium. It’s not just a new platform,” she said. “And for too long we all treated it like just another platform.”

TOWARD THE SUMMIT

At its biggest, the Miami Herald had a newsroom of about 435. Now, it’s about 115. The cuts here, like at other newspapers, have been as relentless as the industry changes.

Over the years, the Herald has been sluggish in response to shifts in the news business, said David Neal, a breaking news reporter who has been at the Herald for 27 years.

“I feel like we were like the entire industry,” he said, “we were slow to respond to a lot of changes that you could see coming on the horizon even 20 years ago.”

Chartbeat is great, Neal said. It’s a good tool to see how your work is doing. But, for him, it still comes back to instincts.

“You can still figure out what’s gonna hit: sports, animals, pets of sports stars, a sex cruise.”

Because of all the changes the newsroom has weathered, morale’s not great, Neal said, “but there are still a lot of people here doing good work who are still energized and inspired and doing their best.”

Nehamas, who’s been here for a few years, sees a newsroom more open to change than when he started, and one that’s producing high-quality local journalism.

To him, morale seems very strong right now.

Frías is fairly new to the Herald, so he’s not sure what it was like before Chartbeat and INCs were part of life here. There’s a fear that the newsroom is no longer capable of tackling the kind of journalism the Herald produced 15 or 20 years ago, he said.

“It’s just not true,” Frías said. “It’s just you have to pick and choose your spots.”

San Martin can’t speak for the whole newsroom, but on the Cuba INC, things are working.

“We’ve created a family-style camaraderie and thoroughly enjoy the challenge of going after an increasing and diversified audience,” she said. “There is great satisfaction in knowing that we are attracting national and international visitors to our Cuba sites, including those living on the island.”

They’re seeing more retweets, likes, comments, mentions and aggregations of their work, and that’s satisfying. That doesn’t mean it’s easy, though.

“For us, the future is like climbing a mountain that we know will provide a breathtaking view,” she said. “We just keep working hard to reach the summit.”

FOLLOWING THE SIGNS

The biggest challenges facing the Herald now aren’t really about what’s happening with its audience. Instead, Hirsch said, they’re about time, culture and focus.

“I think this is a hard shift,” he said, “and it is uncomfortable, and so part of the change that people have to make is working differently, and that’s really hard…We’re taking folks who have a lot of muscle memory and working a certain way and saying, let’s do this differently.”

Because of that, all the changes the Herald is pursuing are, for now and probably for good, a work in progress. And that’s tough for people used to waiting to publish, print and share big things until they’re just about perfect.

“I wish it was in our DNA,” Hirsch said, “but it’s going to have to be a learned skill for us.”

When the Herald first relocated to Doral from downtown Miami in 2013, the inside of its new home was one of cold gray walls, countless hallways and turns. Along with the bright colors and fortifying quotes (which, yes, are just paint and words,) the newsroom installed street signs. They hang from many corners.

Palmetto. Miracle Mile. Calle Ocho.

Now, everyone knows their way around. But early on, those signs reminded them of where they’d been and helped them figure out where they were going. It’s not exactly like figuring out a path into a digital future. But it’s not all that different, either.

Source: Posted July 11, 2016; retrieved March 6, 2017 from: https://www.poynter.org/2016/how-the-miami-herald-is-getting-to-know-its-audience-again/414525/

————

See the VIDEO of the Miami Herald Digital Edition here:

VIDEO – Miami Herald Digital Newspaper – https://youtu.be/01GWq9mZsMg

Published on Sep 17, 2012 – Learn about the Miami Herald Digital Newspaper. The Miami Herald Digital Newspaper is an exact replica of the daily paper, available on PC, Mac, iPad, iPhone, Android and most tablets. You’ll love the convenience, at home or on the go.
Features include:
– Easy to use and navigate
– Available anywhere in the world with data access
– Share via email, Facebook & Twitter
– Searchable 30 day archive
– Quick links to advertiser websites

http://www.miamiherald.com/digital

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Transforming ‘Money’ Countrywide

Go Lean Commentary

CU Blog - Transforming Money Countrywide - Photo 2Big changes are coming with electronic money (e-Money). The countrywide deployments will be transformative!

There are so many benefits:

  • Security – Smartchips and PIN options can ensure against unauthorized use.
  • Risk-aversive – The informal economy and Black Markets are mitigated, thereby fostering tax revenues.
  • Portability – e-Money can be used in Cyberspace and in the real world (merchant POS, ATMs).
  • Functional – Payroll and Government Benefits can be easily loaded; credit programs can also be added.
  • Far-reaching – Benefits outside of the payment transaction; the scheme increases M1, which increases available bank capital for community investments. (M1 is the measurement of currency/money in circulation – M0 – plus overnight bank deposits. As M1 values increase, there is a dynamic to create money “from thin-air”, called the money multiplier. The more money in the system, the more liquidity for investment and industrial expansion.)

The actuality of e-Money is not just academic, it is ubiquitous in the role-model country of India, and their “rupee” currency. This emerging economy of 1.2 billion people forcibly transformed the money supply in their market this past year (November 8), with good, bad and ugly results. See the full story of the designs and developments here:

Title: What the U.S. can learn from India’s move toward a cashless society
By: Vivek Wadhwa, Distinguished Fellow at Carnegie Mellon University

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Silicon Valley fancies itself the global leader in innovation. Its leaders hype technologies such as bitcoin and blockchain, which some claim are the greatest inventions since the Internet. They are so complex that only a few mathematicians can understand them, and they require massive computing resources to operate — yet billions of dollars are invested in them.

India may have leapfrogged the U.S. technology industry with simple and practical innovations and massive grunt work. It has built a digital infrastructure that will soon process billions more transactions than bitcoin ever has. With this, India will skip two generations of financial technologies and build something as monumental as China’s Great Wall and America’s interstate highways.

A decade ago, India had a massive problem: nearly half its people did not have any form of identification. When you are born in a village without hospitals or government services, you don’t get a birth certificate. If you can’t prove who you are, you can’t open a bank account or get a loan or insurance; you are doomed to be part of the informal economy — whose members live in the shadows and don’t pay taxes.

In 2009, the government launched a massive project, called Aadhar, to solve this problem by providing a digital identity to everyone based on an individual’s fingerprints and retina scans. As of 2016, the program had issued 12-digit identification numbers to 1.1 billion people. This was the largest and most successful I.T. project in the world and created the foundation for a digital economy.

India’s next challenge was to provide everyone with a bank account. Its government sanctioned the opening of 11 institutions called payment banks, which can hold money but don’t do lending. To motivate people to open accounts, it offered free life insurance with them and made them a channel for social-welfare benefits. Within three years, more than 270 million bank accounts were opened, with $10 billion in deposits.

And then India launched its Unified Payment Interface (UPI), a way for banks to transfer money directly to one another based on a single identifier, such as the Aadhar number.

Take the way that credit-card payments are processed: When you present your card to a store, the cashier verifies your signature and transmits your credit-card information to a billing processor such as Visa, American Express or MasterCard — which works with the sending and receiving banks. The billing processors act as a custodian and clearing house. In return for this service, they charge the merchants a fee of 2 to 3 percent of the transaction. This is a tax that is indirectly passed on to the customer.

With a system such as UPI, the billing processor is eliminated, and transaction costs are close to zero. The mobile phone and a personal identification number take the place of the credit card as the authentication factor. All you do is to download a free app and enter your identification number and bank PIN, and you can instantly transfer money to anyone — regardless of which bank he or she uses.

There is no technology barrier to prevent a UPI from working in the United States. Transfers would happen within seconds, even faster than the 10 minutes that a bitcoin transaction takes.

India has just introduced another innovation called India Stack. This is a series of secured and connected systems that allow people to store and share personal data such as addresses, bank statements, medical records, employment records and tax filings, and it enables the digital signing of documents. The user controls what information is shared and with whom, and electronic signature occurs through biometric authentication.

Take the example of opening a mobile-phone account. It is cumbersome everywhere, because the telecom carriers need to verify the user’s identity and credit history. In India, it often took days to produce all the documents that the government required. With the new “know-your-customer” procedures that are part of India Stack, all that is needed is a thumb print or retina scan, and an account can be opened within minutes. The same can be done for medical records. Imagine being able to share these with doctors and clinics as and when necessary. This is surely possible for us in the United States, but we aren’t doing it because no trusted central authority has stepped up to the task.

India Stack will also transform how lending is done. The typical villager currently has no chance of getting a small-business loan, because he or she lacks a credit history and verifiable credentials. Now people can share information from their digital lockers, such as bank statements, utility bill payments and life insurance policies, and loans can be approved almost instantaneously on the basis of verified data. This is a more open system than the credit0scoring services that U.S. businesses use.

In November, in a move to curb corruption and eliminate counterfeit bills, Indian Prime Minister Narendra Modi shocked the country by announcing the discontinuation of all 500- and 1,000-rupee (about $7 and $14) notes — which account for roughly 86 percent of all money in circulation. The move disrupted the entire economy, caused pain and suffering, and was widely criticized. Yet it was a bold move that will surely produce long-term benefit, because it will accelerate the push to digital currency and the modernization of the Indian economy.

Nobel Prize-winning economist Joseph Stiglitz said at the World Economic Forum meeting in Davos, Switzerland, that the United States should follow Modi’s lead in phasing out currency and moving toward a digital economy, because it would have “benefits that outweigh the cost.” Speaking of the inequity and corruption that is becoming an issue in the United States and all over the world, he said: “I believe very strongly that countries like the United States could and should move to a digital currency so that you would have the ability to trace this kind of corruption. There are important issues of privacy, cybersecurity, but it would certainly have big advantages.”

We are not ready to become a cashless society, but there are many lessons that Silicon Valley and the United States can learn from the developing world.
Source: Linked-in Business Social Media – Posted February 14; retrieved February 16, 2017 from:  https://www.linkedin.com/pulse/what-us-can-learn-from-indias-move-toward-cashless-society-wadhwa?trk=eml-email_feed_ecosystem_digest_01-hero-0-null&midToken=AQEaD9txxg6Yyw&fromEmail=fromEmail&ut=2MfxBMnV48eDE1

CU Blog - Transforming Money Countrywide - Photo 4Studying the lessons from other societies and deploying cutting-edge payment systems are missions of the movement behind the book Go Lean … Caribbean; it serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU) and the aligning Caribbean Central Bank (CCB). This Go Lean/CU/CCB roadmap depicts e-Money as a hallmark of technocratic efficiency, with agility to keep pace of technology and market changes.

To be ubiquitous – the capacity of being everywhere, especially at the same time – requires coordination of all engines of society. This is the quest of the Go Lean roadmap, to optimize these engines, as stated with these 3 prime directives:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to protect the resultant economic engines.
  • Improvement of Caribbean governance to support these engines.

The Go Lean/CU/CCB roadmap anticipated an e-Money scheme, one for cruise lines using smartchips payment-identity cards. This is part-and-parcel of the plan for a regional currency for the Caribbean Single Market, the Caribbean Dollar (C$), to be used primarily as an electronic currency. (A regional currency model exists with the Euro currency for 19 European states and 337 million people). These cashless schemes will impact the growth of the regional economy in both the domestic and tourist markets. Consider this one CU scheme to incentivize more spending among cruise line passengers:

The cruise industry needs the Caribbean more than the Caribbean needs the industry. But the cruise lines have embedded rules/regulations designed to maximize their revenues at the expense of the port-side establishments. The CU solution is to deploy a scheme for smartcards (or smart-phone applications) that function on the ships and at the port cities. This scheme will also employ NFC technology – (Near Field Communications; defined fully at Page 193 – so as to glean the additional security benefits of shielding private financial data of the guest and passengers.

This is an example of an electronic money scheme facilitating more commerce (e-Commerce). So the CCB will settle all C$ electronic transactions – cashless or accounting currency – in a credit card-style interchange / clearinghouse system.

There are a lot of details to “sweat out” – this is heavy-lifting. So the same as the U.S. can learn many lessons from India’s cashless moves in the foregoing article, the Caribbean can benefit too. A cashless society is the prize that mature economies want. It would be a win-win. See the portrayal of this Indian model in this Appendix VIDEO below.

The Go Lean book asserts that the Caribbean should keep their “eyes on the same prize” of a cashless society. If India can, then so can we; this Third World country is now considered an “emerging” economy for elevating more of their citizens to middle class status. The book posits that to thrive in the new global marketplace there must be an agile technocratic administration for the region’s currencies. This is the charge – economics, security and governance – of the Go Lean roadmap, opening with these pronouncements; Declaration of Interdependence (Page 13 and 14):

xxiv. Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

xxv. Whereas the legacy of international democracies had been imperiled due to a global financial crisis, the structure of the Federation must allow for financial stability and assurance of the Federation’s institutions. To mandate the economic vibrancy of the region, monetary and fiscal controls and policies must be incorporated as proactive and reactive measures. These measures must address threats against the financial integrity of the Federation and of the member-states.

xxvii. Whereas the region has endured a spectator status during the Industrial Revolution, we cannot stand on the sidelines of this new economy, the Information Revolution. Rather, the Federation must embrace all the tenets of Internet Communications Technology (ICT) to serve as an equalizing element in competition with the rest of the world. The Federation must bridge the digital divide and promote the community ethos that research/development is valuable and must be promoted and incentivized for adoption.

The Go Lean book details a series of community ethos, strategies, tactics, implementations and advocacies to foster the proper controls for electronic/mobile payments in the Caribbean region:

Community Ethos – Economic Principles Page 21
Community Ethos – Money Multiplier Principle Page 22
Community Ethos – Security Principles Page 23
Community Ethos – Governing Principles – Lean Operations Page 24
Community Ethos – Governing Principles – Cooperatives Page 25
Community Ethos – Ways to Bridge the Digital Divide Page 31
Strategy – Mission – Fortify the monetary needs through a Currency Union Page 45
Tactical – Separation of Powers – Central Banking Page 73
Implementation – Assemble Central Bank Cooperative Page 96
Implementation – Ways to Deliver Page 109
Planning – 10 Big Ideas – #2: Currency Union / Single Currency Page 127
Anecdote – Caribbean Currencies Page 149
Advocacy – Ways to Grow the Economy Page 151
Advocacy – Ways to Create Jobs Page 152
Advocacy – Ways to Mitigate Black Markets Page 165
Advocacy – Ways to Foster Cooperatives Page 176
Advocacy – Ways to Impact Cruise Tourism – Smartcard scheme Page 193
Advocacy – Ways to Foster Technology Page 197
Advocacy – Ways to Foster e-Commerce Page 198
Advocacy – Reforms for Banking Regulations – Central Banking Efficiencies Page 199
Advocacy – Ways to Impact Main Street Page 201

The points of effective, technocratic currency stewardship were further elaborated upon in previous blog/commentaries. Consider this sample:

https://goleancaribbean.com/blog/?p=8381 A Lesson in Economic Fallacies – Casino Currency – US Dollars?
https://goleancaribbean.com/blog/?p=7140 Central Bank of Azerbaijan sets its currency on free float
https://goleancaribbean.com/blog/?p=7034 The Future of Money
https://goleancaribbean.com/blog/?p=6800 Venezuela sues black market currency website in US
https://goleancaribbean.com/blog/?p=6635 New Security Chip in Credit Cards Unveiled
https://goleancaribbean.com/blog/?p=5668 Move over Mastercard/Visa
https://goleancaribbean.com/blog/?p=4425 Cash, Credit or iPhone …
https://goleancaribbean.com/blog/?p=3889 RBC EZPay – Ready for Change
https://goleancaribbean.com/blog/?p=3881 The Need for Regional Cooperation to Up Cyber-Security
https://goleancaribbean.com/blog/?p=2074 MetroCard – Model for the Caribbean Dollar
https://goleancaribbean.com/blog/?p=1350 PayPal expands payment services to 10 markets
https://goleancaribbean.com/blog/?p=906 Bitcoin virtual currency needs regulatory framework to change image
https://goleancaribbean.com/blog/?p=833 One currency, divergent economies

There are things that we in the Caribbean want from India … and things we do not want.

We want their lessons learned so that we can get more impact in our society, like:

  • more cruise tourism spending
  • foster more e-Commerce
  • increase M1 money supply in our region
  • mitigate the informal economy and Black Markets,
  • steer oversight for technology engagements
  • grow the economy
  • create jobs
  • enhance security
  • optimize governance

India has to feed 1.2 billion people. We do not want that population! India has a large Diaspora scattered throughout the world. We do not want that either. We simply want our people to prosper where they are planted in our Caribbean homeland. This means we have to better compete, adjust and adapt to this ever-changing world.

Now is the time for all stakeholders of the Caribbean to lean-in for the empowerments described in the book Go Lean … Caribbean. This change can help to make the Caribbean a better place to live, work and play. 🙂

Download the book Go Lean … Caribbean – now!

—————

Appendix VIDEO – Digital payment providers cash in on India’s currency crunch – https://youtu.be/BvnL7ZjBfkk

Published on Dec 2, 2016 – Paytm and other digital payment providers in India are mobilising an army of workers to enrol small merchants and customers to permanently change their historic reliance on cash as they reap the benefits of the severe currency crunch affecting the country.

CU Blog - Transforming Money Countrywide - Photo 3Paytm and other digital payment providers in India are on an intensive campaign to woo small merchants and customers to permanently change their historic reliance on cash as they reap the benefits of the government’s currency clampdown.

From front page ads in national dailies to quirky social media posts, digital players including Paytm and MobiKwik have left no stones unturned to sign up people for mobile payments since Indian Prime Minister Narendra Modi’s announcement to ditch high value bank notes.

However getting shops and customers to go digital and shun their dependence on hard cash still remains a herculean task.

“The problem we face is that we are not educated enough to operate it (digital payment apps). We don’t have that smart phone that is why there are some problems,” said Lal Singh, a betel shop owner in one of New Delhi’s bustling markets, who uses a feature phone.

Around 65 percent of the mobile phones in India are feature phones which are used only for simpler calling and texting purposes.

Sales of cheap smartphones have boomed in recent years, but internet networks remain patchy, especially in rural India.

Credit Suisse estimates more than 90 percent of consumer purchases are made in cash, as millions still do not have bank accounts. Those who do have bank cards mainly use them to withdraw from cash machines. Financial literacy and technology usage also remains low, and many fear getting duped.

Modi’s push against black money has given digital payment providers an once-in-a-lifetime opportunity to expand their user base and the results have been promising so far, sparking widespread optimism.

MobiKwik, whose backers include U.S. venture capital firm Sequoia Capital and American Express, has added 150,000 merchants since the curb for a total of 250,000, and co-founder Upasana Taku said there has been a sea change in the modes of payment since the November 8 announcement.

“We look at it as a tectonic shift in user behaviour where people are now willing to adopt digital payments because the government has incentivised them. In many ways, this is the best marketing campaign any mobile wallet company could have ever wanted,” said Taku.

She is expecting a user base of around 150 million by next year.

Meanwhile, Paytm, India’s largest mobile payment and commerce platform and backed by Chinese Internet giant Alibaba Group Holding Ltd, has deployed a 10,000-strong sales force, and nearly doubled the number of small merchants signed up to its services to 1.5 million.

“So we were targeting 500 million users by 2020. Now, we are targeting them by 2018. So, we have fast forwarded that plan by two years and similarly, one lakh crore (1,000 billion) that’s the volume of dollar transaction volume that we were talking about, if we were targeting it in 2020, we are targeting it in 2018,” said Chief executive of Paytm, Vijay Shekhar Sharma.

There were concerns as well that once the cash crunch subsides, merchants and customers will go back to business as usual, using notes to pay for transactions but Sharma said the convenience value provided by the online payments will prevail over it.
Paytm now has 158 million clients, 8 million more since the note ban.

One of the factors which have prompted mom and pop stores and people to turn to Paytm and other e-wallet companies is that the new 2,000 rupee introduced by the government has turned out to be a blessing in disguise for the common man.

The hype regarding the new 2,000 rupee note was short lived as people were unable to use it to buy products for domestic purposes due to the non-availability of small money in the hands of shopkeepers and vendors at large.

The lack of 500 and 100 rupee bills in the market paved the way for e-wallet companies to become the way out for such vendors.
“This will give us a lot of relief. Exchange of change is a big issue. Some people have notes of higher denomination like 2,000 rupee notes, then how will we give the change for it,” said a roadside restaurant owner in Gurgaon, Bhuvan Kumar.

The move to demonetise the large bills is designed to bring billions of dollars’ worth of cash in unaccounted wealth into the mainstream economy, as well as dent the finances of Islamist militants who target India and are suspected of using fake 500 rupee notes to fund operations.

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Alibaba Cloud stretches global reach with four new facilities

Go Lean Commentary

For hundreds of years, empires expanded their reach by establishing colonies on foreign shores. The book Go Lean … Caribbean chronicles (Page 307) the pushing-and-shoving between European powers in the development of the Caribbean. But in 1960, after the atrocities of World War II were inventoried – credited to the complexities of colonialism in World War I and the period between the wars, the United Nations made a declaration that colonialism needed to be disbanded:

cu-blog-alibaba-cloud-stretches-global-reach-with-four-new-facilities-photo-4The “Declaration on the Granting of Independence to Colonial Countries and Peoples” was adopted by the UN General Assembly by resolution on 14 December 1960. Though some countries had already started their independence process (i.e. Ireland, Australia, India, Pakistan, Indonesia, etc.), this resolution established the standard for all dependent countries – even small ones – to become autonomous. – Source: UN-Wikisource

This is now the 21st Century. While colonialism is not dead … entirely, there is a new brand of colonies for trade. Colonies have gone from the physical world to the virtual world, referring to cyber-space or online communities. Chinese trading market-place Alibaba is providing us a model of colonizing their digital footprint in foreign countries. See the story here of Alibaba’s deployment of 4 new data centers in a potpourri of countries:

BEIJING (Reuters) – Alibaba Cloud plans to open four new data facilities outside China, the cloud unit of Alibaba Holdings Ltd said on Monday, as it seeks to grab global market share from leading players Amazon.com Inc and Microsoft.

cu-blog-alibaba-cloud-stretches-global-reach-with-four-new-facilities-photo-1

The data facilities in Dubai, Germany, Japan and Australia will extend the reach of China’s leading cloud computing service provider to every major continent, and marks the latest step in the unit’s $1 billion infrastructure investment drive.

Also known as Aliyun, the unit has flourished domestically thanks to Beijing’s strategic emphasis on building homegrown cloud technology, while foreign firms have grappled with stringent licensing restrictions in the country.

However, it accounts for a much smaller slice of the global market for cloud computing, defined as the storage of data on remote networks rather than local servers, which is expected to reach $135 billion by 2020, according to research firm Canalys.

Alibaba Cloud is forecast to take 7.8 percent of that market, while leading players Amazon.com Inc, Microsoft, International Business Machines Corp and Alphabet Inc are expected to account for 69.1 percent.

Yu Sicheng, general manager of Alibaba Cloud’s international business, said the unit’s strength in China was a significant advantage and a lynchpin in the company’s globalization plans.

“We have the U.S., Europe plus China, which is quite difficult,” he told Reuters in an interview.

The new additions bring Alibaba Cloud’s total number of foreign cloud facilities to eight, surpassing the six within China, though the majority of the company’s data volume remains squarely within China.

It will launch the data facilities through partnerships with Vodafone in Europe, Softbank Group Corp in Japan and YVOLV in Dubai, a joint venture between Alibaba Cloud and Meraas Holdings LLC.

Yu, however, declined to comment on when the unit will likely post a profit, even as it has seen six quarters of consecutive triple-digit growth, to become Alibaba’s fastest growing business sector.

“Our focus is to keep expanding our market leadership and presence and this is our priority for now,” he said.

(Corrects title of Alibaba Cloud executive Yu Sicheng)
(Reporting by Catherine Cadell; Editing by Stephen Coates)
Source: Yahoo News Source. Posted 11-21-2016; retrieved 11-28-2016 from: https://www.yahoo.com/news/alibaba-cloud-stretches-global-reach-four-facilities-061614009–finance.html?ref=gs

This commentary takes another look at colonialism; there is the need for a cyber footprint in countries where “you” may want to conduct online business – this is a feature of globalization. In the effort to deploy the Caribbean Postal Union (CPU)  as a logistics solution for delivering modern commerce, this commentary takes another look at the Alibaba Group; a company that had previously been identified as an excellent role model for the CPU. (American company Amazon was also identified as a fitting role model).

The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU) and the CPU. The book describes a business model for the CPU in facilitating electronic commerce in the region. But it presents this business model as heavy-lifting; there is the need for data centers to power the cyber-functions and applications for online & mobile commerce. The Go Lean roadmap describes the need for 6 data centers strategically placed across the Caribbean region; we want to colonize our own region, following a similar business model to Alibaba’s plans to deploy its colonies throughout the world – in these 4 foreign countries.

More dynamic data centers deployed in a foreign country would mean more business-to-business commerce, including features like web portals, online retail, mobile functionality, payment services, a shopping search engine and data-centric cloud computing services.

cu-blog-alibaba-cloud-stretches-global-reach-with-four-new-facilities-photo-3

cu-blog-alibaba-cloud-stretches-global-reach-with-four-new-facilities-photo-2

As detailed in the previous blog-commentary, Alibaba is not just a China focused company. They also have a Caribbean footprint. In September 2014, the company held an Initial Public Offering (IPO) in the United States on the New York Stock Exchange (NYSE) – Ticker symbol “BABA.N” – looking to raise US$25 billion. The NYSE corporate entity is actually a shell corporation based in the Cayman Islands. So Alibaba extending their global business operations is actually benefiting a Caribbean corporate citizen.

The Go Lean roadmap (Page 106) presented an advocacy that described the trends in data center design and functionality; they are needed for the Cyber-Caribbean strategy. A trend depicted in the book is the Case Study of Hydrogen Fuel Cells as a reliable back-up power-battery source. This Case Study sets the stage for understanding Data Center trends:

Case Study – Bottom Line on Hydrogen Fuel Cells: A fuel cell is a device that converts the chemical energy from a fuel into electricity thru a chemical reaction with oxygen or another oxidizing agent. Hydrogen is the most common fuel. Hydrogen is not in and of itself an energy source, because it is not naturally occurring as a fuel. It is, however widely regarded as an ideal energy storage medium, due to the ease with which electric power can convert water into its hydrogen and oxygen components through electrolysis. Hydrogen technologies relate to the production and use of hydrogen. Hydrogen technologies are applicable for many uses. Some hydrogen technologies are carbon neutral and could have a role in preventing climate change and a possible future hydrogen economy. Fuel cells are different from batteries in that they require a constant source of fuel and oxygen/air to sustain the chemical reaction, they can however produce electricity continually for as long as these inputs are supplied.

There are a handful of US data center facilities that are powered either partially or fully by hydrogen fuel cells; see Appendix IG on Page 285.

The advocacy, branded 10 Trends in Implementing Data Centers, is detailed here:

1. Lean-in for the Caribbean Single Market & Economy (CSME) initiative: Caribbean Union Trade Federation. The CU treaty unifies the Caribbean region into one single market of 42 million people across 30 member-states, thereby empowering the economic engines in and on behalf of the region. The CU embraces the cutting, “bleeding” edge concepts, systems and methodologies for data centers and computer server farms, as in high density computing, facilitating the maximum computing power with the least about of space and power. The prerequisite for any serious data center deployment is power…stable, reliable electricity, with primary, secondary and tertiary solutions. The CU roadmap calls for deployment of a regional power grid, with above ground, underground & underwater cabling. Though data centers must launch now, power costs will be expected to decline with the grid; hydrogen fuel cells will fill the void..
2. Fiber-Optics / Pipeline Optical fibers are widely used in fiber-optic communications, which permits transmission over longer distances and at higher bandwidths (data rates) than other forms of communication. Fibers are used instead of metal wires because signals travel along them with less loss and are also immune to electromagnetic interference. The transparent fiber are made of high quality extruded glass, silica or plastic. The CU as a new Federation can apply a leap-frog approach to implement communication networks without having to contend with older methods or investments. Further the CU will embrace the strategy of installing elaborate pipelines thru out the region, enabling fiber-optics to traverse the network.
3. IP Convergence Internet Protocol (IP) is now ubiquitous for data, voice, and video communications – they all operate on the same type of fiber. This indicates that data centers also function as telecom hubs – central switching offices are now bygones.
4. Cloud Computing  The CU will embrace cloud computing for many operational systems, thereby requiring optimal continuous processing. The roadmap calls for citizens to interact with their federal government via web portals, kiosks or phone contact centers.
5. High Availability (HA) HA is a system design approach (hardware, software and networking) that ensures operational performance will be met, like parallel processing or mirroring. There are systems (i.e. hospitals, banking, electrical grid) that must maximize availability and minimize downtime. Recovery time or estimated time of repair is closely related to availability, optimizing the time to recover from planned or unplanned outages. A CU mission is to facilitate quick recoveries after hurricanes.
6. Colocation Data Centers A colocation center (colo, or coloc) is a type of data center where equipment space and bandwidth are available for rental to retail customers. Colocation facilities provide space, power, cooling, and physical security for the server, storage, and networking equipment of other firms—and connect them to a variety of telecommunications and network service providers—with a minimum of cost and complexity. Colocation has become a popular option for companies as it allows the company to focus its IT staff on the actual work being done, instead of the logistical. Significant benefits of scale (large power and mechanical systems) result in large colocation facilities, typically 50,000 to 100,000 square feet.
7. Caves as Data Centers There is a growing trend of building underground data bunkers. A market leader placed a coloc data center in a huge facility 220 feet underground in a limestone cave outside Pittsburgh-Pennsylvania. There are other limestone cave installations in places like Mammoth, Kentucky and Lenexa, Kansas. The advantage is cost savings, driven by cooling dynamics of an underground facility, where cooler temperature allows for saving money on air conditioning. The CU will identify limestone caverns, plentiful in the region, appropriate to construct data centers – the region needs 6 centers.
8. Storage Solutions – No need for humans Old data center models needed people to load/unload data storage devices (tapes, disk drives). Now with the low costs of storage, the CU can implement storage libraries for primary and back-up purposes. Plus with tools/techniques like Deep Store archive systems [51], it allows for cost-efficient solutions for data/records that are rarely retrieved.
9. Security Issues Modern data centers require minimal human interaction, therefore physical security tend to be very restrictive. In some firms, even the CEO is not allowed access. The CU will implement biometric systems like fingerprints and iris scanning.
10. Unified Command & Control The data center may be void of humans, but there is still the need for many professional analysis, programmers and engineers. These are normally stationed in command centers to facilitate monitoring and cyber-security functions.

Is a discussion of data center trends appropriate for a societal elevation plan for the Caribbean? Absolutely! How the world has changed! The Go Lean book posits that this technology-tinged eco-system is a winning strategy for creating jobs here in the 21st Century. The book explains that Internet & Communications Technologies (ICT) can serve as an equalizing element in competition with the rest of the world. The roadmap projects that 64,000 new jobs – 20,000 Direct & 44,000 Indirect – can be created with this strategy. This strategy is among the keys for elevating Caribbean society. In fact the prime directives of the roadmap is identified with the following 3 statements:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to protect the resultant economic engines.
  • Improve Caribbean governance to support these engines.

The foregoing article and the quotation from the Go Lean book depicts a vision of a new Caribbean industrial landscape. This vision was defined early in the book (Page 14) in the opening Declaration of Interdependence:

xxvi. Whereas the Caribbean region must have new jobs to empower the engines of the economy and create the income sources for prosperity, and encourage the next generation to forge their dreams right at home, the Federation must therefore foster the development of new industries, like that of ship-building, automobile manufacturing, prefabricated housing, frozen foods, pipelines, call centers, and the prison industrial complex. In addition, the Federation must invigorate the enterprises related to existing industries like tourism, fisheries and lotteries – impacting the region with more jobs.

xxvii. Whereas the region has endured a spectator status during the Industrial Revolution, we cannot stand on the sidelines of this new economy, the Information Revolution. Rather, the Federation must embrace all the tenets of Internet Communications Technology (ICT) to serve as an equalizing element in competition with the rest of the world. The Federation must bridge the digital divide and promote the community ethos that research/development is valuable and must be promoted and incentivized for adoption.

Beyond data centers, “where are the new jobs for the 21st Century”? This is a familiar question for the Go Lean movement (book and blogs). This question was examined in these previous blog-commentaries:

https://goleancaribbean.com/blog/?p=9751 Where the Jobs Are – Animation and Game Design
https://goleancaribbean.com/blog/?p=9203 Where the Jobs Are – Employer Models in the United States
https://goleancaribbean.com/blog/?p=6089 Where the Jobs Are – Futility of Minimum Wage
https://goleancaribbean.com/blog/?p=2857 Where the Jobs Are – Entrepreneurism in Junk
https://goleancaribbean.com/blog/?p=2126 Where the Jobs Are – Computers Reshaping Global Job Market
https://goleancaribbean.com/blog/?p=2003 Where the Jobs Are – One Scenario: Ship-breaking
https://goleancaribbean.com/blog/?p=1698 Where the Jobs Are – STEM Jobs Are Filling Slowly

ICT is a prominent feature of the Caribbean empowerment plan; creating a Caribbean Cloud is “Step One, Day One” in the Go Lean roadmap. This will facilitate electronic commerce and allow modern day colonies – data centers –  in foreign countries.

The Go Lean book details a series of community ethos, strategies, tactics, implementations and advocacies to foster the best practices for Data Centers in the Caribbean region:

Community Ethos – Economic Principles – Voluntary Trade Creates Wealth Page 21
Community Ethos – Economic Principles – The Consequence of Choice Lie in Future Page 21
Community Ethos – Job Multiplier Page 22
Community Ethos – Lean Operations Page 24
Community Ethos – Ways to Impact the Future Page 26
Community Ethos – Ways to Help Entrepreneurship – Incubators Page 28
Community Ethos – Promote Intellectual Property Page 29
Community Ethos – Ways to Bridge the Digital Divide – e-Government Services Page 31
Community Ethos – Ways to Improve Sharing – e-Government Scheme Page 35
Strategy – Mission – Embrace the Advances of Technology Page 46
Strategy – Competitors – Governments – Shared Systems –vs- Premise-based Page 51
Tactical – Fostering a Technocracy Page 64
Tactical – How to Grow the Economy to $800 Billion – Trade and Globalization Page 70
Tactical – Separation of Powers – Union Revenue Administration – e-Government for Revenue Systems Page 74
Implementation – Year 1 / Assemble Phase – Deploy Data Centers Page 96
Implementation – 10 Trends in Implementing Data Centers Page 106
Implementation – Ways to Deliver Page 109
Implementation – Ways to Impact Social Media Page 111
Implementation – Ways to Benefit from Globalization Page 119
Planning – Ways to Improve Trade – Electronic Commerce Page 128
Advocacy – Ways to Grow the Economy Page 151
Advocacy – Ways to Create Jobs Page 152
Ways to Foster Cooperatives – Co-located Data Centers for e-Government Page 176
Advocacy – Ways to Foster Technology – Incubators Strategy Page 197
Advocacy – Ways to Foster e-Commerce Page 198
Advocacy – Ways to Impact Main Street – e-Commerce as competition for Big-Box Page 201

This VIDEO here – Google’s Data Center – demonstrates a theme from the Go Lean book, that data center trends will influence the ICT eco-system; also see the VIDEO tour for Facebook and Microsoft in the Appendix below:

VIDEO – Inside a Google data center – https://youtu.be/XZmGGAbHqa0

Published on Dec 16, 2014 – Joe Kava, VP of Google’s Data Center Operations, gives a tour inside a Google data center, and shares details about the security, sustainability and the core architecture of Google’s infrastructure.

According to the foregoing article and VIDEOs, data centers are important business infrastructure for the new economy. As demonstrated by Alibaba’s example, these data centers are colonies in the virtual world. The CU/Go Lean plan is to foster and incubate such key industrial installations for the goal of elevating the region economic engines.

Now is the time for all of the Caribbean, the people and governing institutions, to lean-in for the changes in the book Go Lean … Caribbean. This is a Big Idea for the region, that of a Cyber Caribbean effort (Page 127), in which data centers play a major role. Welcome to 21st Century colonies. This is how we build a better future: a better place to live, work and play. 🙂

Download the book Go Lean … Caribbean – now!

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Appendix VIDEOs:

Facebook Data Center: https://www.youtube.com/watch?v=Y8Rgje94iI0
Microsoft Data Center: https://www.youtube.com/watch?v=0uRR72b_qvc

 

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