Since the aim of the wrap up class was to exchange reflections, the interaction was the tonic during the class on December 11. Indeed, the professor outlined each relation between Battles and topics. So, apart the evident polarization pursued by a Battle, such experience also was conceived to approach gradually the teaching material. For instance, the Battle of Bill Gates against Steve Jobs was under the notion of technology entrepreneurship, the Battle of Uber versus Taxis exposed the opposing organizational structures, the Battle of Security against Privacy addressed the variability of the environment, the Battle between Cars and Horses approached the customer centric tendency, the Battle of Weak against Strong Artificial Intelligence embraced the decisions in distinct environments, the Battle of Politics versus Ideologists revealed an ambiguous scenario, and the last Battle put in the balance the visionary ideas and the financial results of Elon Musk under the umbrella of network effects and social capital.

From this journey, it appears unavoidable the discussion about ethical implications, but first ¿does the innovation have an ethical value? Since a constructive intention can be undermined by wrong presumptions, the innovation can be conceived as a neutral arena with respect to ethics.  Moreover, the value creation and the transformative potential of innovation can overcome the single aim of economical value, to reach a balance in the social good shaping the social innovation.

Nonetheless, the generation of non-economical value is not trivial and implies a process oriented view and also the policy impacts. Some examples from the process oriented sight, it is the evolution from the short message service (SMS) to the dissemination of instant messaging enriching texts by capacity and aesthetics, another example is the digital dating experience (or the way to approach a person) is also going beyond a superficial interaction to become a meaningful relationship. Some examples from the policy impacts, it is the effect of social networks connecting people to share content and the privacy affairs.

The already mentioned impacts let us think about three new categories of innovation; narrow view, societal challenge and systemic transformation. Firstly, a narrow view is concentrating efforts in one direction to address vulnerable groups in the society and embracing charitable actions. For instance, shelters for vulnerable people, discounts in transportation, and access to vaccinations to vulnerable children, among others. Secondly, the broader sight of a societal challenge addresses the society as a whole considering its wider challenges. To exemplify, the European Union project Horizon 2020. Lastly, the systemic transformation is a bottom-up approach where the empowerment of the society is an essential characteristic followed by the co-creation between many actors. In such active societal atmosphere the policies are target of constant mutation, and the sustainability of such policies is a prominent concern.  From here, it is plausible that the common goods of communities can be manage by themselves, such as, the fishing stock who use the resource and make the fish sustainable over time, then the limitations become regulated as a result of a co-creation effort. Even though, what if this approach goes wrong, such as, when a bank is untied from the central government and it decides to move further and out of the limits of control, it could be the case of Bitcoin.

Hope it helps! Happy Holidays!

Berioshka, Notekeepers Team

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From another stance, the elements present in the start up Lab are not far from the scope of social capital, since we are recognizing competencies that are not only technical. Certainly, it is well known that the initial start up stage is fuelled by personal resources, and the funds are limited. Nevertheless, there is more capital on the table than just money, so the active connections among people are also the resources that are the basis of social capital. Furthermore, such connections can be characterized from different perspectives, namely the relations in the social network and the resources created by people relations.  So, ¿How do you put all the resources together to form the organization? Currently, the partners involved in the formation of a company can increase the variety of resources available, and the growing process as well. In fact, through formal partner relations the positive impact is higher, driving strategic alliances based on mutual and compatible purposes, such as, the shared economy. So ¿What are the benefits of social capital?, mainly exploiting business opportunities. For instance, the lack of knowledge can be perceived as an opportunity to involve new players. Moreover, it is also feasible to make a link between market transaction and acquisition through any strategical alliance. To exemplify, the health industry and insurances by sharing part of the equity.

In general, if we need access to knowledge we can derive in a complementary R&D extension, such as, the alliance between Apple and AT&T. Another example, if we are looking for access to new markets and internationalization possibly we reach further market knowledge. By seeking efficiency we can promote the introduction of scaling up partners. By producing tailored solutions to clients we can satisfy needs instead demands for standards products. To exemplify, a low cost mobile phone system in Africa allowing an alliance between the Government and the telecommunications industry. Another example, it is risk sharing where there is an opportunity to pool resources or portfolios together. Also the combination of knowledge can derive in new products, such as, Apple and BMW, Adidas and Goodyear, among others.

To close the class, the artistic intervention of the collective Incanti installed the vision of a multidisciplinary theatre. The Incanti project tends to translate the characteristic meaning displayed by the environment into a renovated energy that is disseminated in a particular space by the body language acting as a medium. So, the voice progression of a singer who is crossing the space in circular movements produces a magnetic field that attracts the audience attention, transforming the spatial energy. The project Incanti considers the innovation as a bridge between theatre and the University, so the invitation is open to participate in this project and other social initiatives, such as the park interventions for common good.

Hope this helps! All the best,

Berioshka, Notekeepers Team

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A Visionary

1. ¿How Musk’s companies can be sustainable and feasible? Ans.: We are doing researching development and experimentation in the field of cars, space exploration and clean energy, and the Government is consistently supporting us to boost sustainability in the long term.

2. If Tesla is not getting profits ¿Why to invest in Tesla? Ans.: Electrical cars are disruptive in the market, so Tesla must be treated as a research business instead a traditional carmaker. Indeed the production timing is longer and there are losses per car. Even though, the aim is to reduce environmental damage that’s why the company is diversifying the car offering; from luxury to mass market models.

3. ¿How is the Government following their investments? Ans.: The Government is permanently investing and the balances are transparent, and also the stock market demonstrates the returns every period. So, this is a researching company producing gains and losses as well.

4. ¿How many rockets can be reused? Ans.: All rockets are reusable, but we cannot say a rocket can travel 30 times to Mars.

A Fraud

1. ¿Why are you judging financial losses instead the vision behind the companies? Ans.: According our figures, the income is going down every year and still they are losing money, which is a public financial support. Furthermore, Tesla usually is partially repaying debts, i.e. around 20%, and then asks for new loans increasing the time window to repay once again. We can associate such behavior to the Ponzi scheme fraud, where the value is given by external capital or in the form of financial instruments, instead from the real production.

2. ¿Where are the references to support such lack of profits in Tesla? Ans.: Tesla produces around three cars per day, and meanwhile others are producing thousands of cars, so the production is very low. For instance, Ford is manufacturing a car 10 times faster. If you are not able to produce enough cars you are not doing an innovation.

3. ¿How do you prove that Tesla production is unsuccessful? Ans.: We used statistical references from Internet, where it is also possible to read about many failures in Falcon 9 rocket. So, from the financial state the innovation is not successful, that’s why we insist and ask ¿what does a company work for?

Hope this helps! All the best,

Berioshka, Notekeepers Team

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From the private arena, there is a realm of venture capitalists highly interested in provide funding for growing business. Additionally, since the startup company is conceived as a daring journey for capitalists the venture financing implies risks. From the public arena, the seed capitals are distributed according the public policies while the taxes can restrain a fast innovation adoption. Indeed, there is also a direct relation between country welfare and the company growth.

According to a Fortune 500 study, Apple steadily increased from 2011 to 2014, in contrast to Hewlett Packard for the same period. An equivalent rising is displayed by Microsoft and Amazon, yet below Apple. Google also had a steady growing after Amazon, whilst the notorious backward motion was exhibited by Nokia. Despite that the mentioned companies are far from being a startup since are mature brands, the successful companies usually follow the same financing cycle. The beginning is as a seed venture, and then it turns into a startup, after that it moves to the first stage, then it becomes consolidated to finally reach maturity. Any seed is well recognized as a risky and ambiguous early stage where the own resources are invested, usually from family or friends (FFF) and some angel investor. An early growth can attract more business angels and venture capitalists during the startup and the first stages. Through a continual growth, the consolidation stage arises increasing the cash flow. Conversely, the risk steadily decreases through the later stage, and the company maturity allows the access to private equity funds, bank loans and the stock exchange.

Furthermore, the debt capital it is a sort a loan or a temporal form of funding excluding ownership of the company since the contract only fix returns and additional interests. The risk capital is a stable contract assuring a dividend from the company profits and granting a voice and vote in the governance as a co-owner. From the private equity fund stance, it is possible to encompass several sorts of investments pursuing a limited and temporal partnership, such as, angel investors, venture capitalist and corporate investors. As a corporate investor we can consider the example of Google Ventures, they invested in Uber roughly $258 million Dollar in 2013. As business angels the investment capability is limited since are physical persons or specialized firms, they invest from 50 mil Euros to 250 mil Euros, fixing a return of investment above 20% per year. As a venture capitalist, the focus is on highly risk companies expecting certain equity on total shares based on enterprise estimated value, and such strategy can be extended from medium to long terms, roughly 7 years. Some examples of venture capitals are HP, Apple, Sun Microsystems, Intel, Microsoft, Google, Facebook, among others. The selection criteria behind such ideas are the market opportunity, the value proposition, management team, and the financials. Moreover, the fundraising is competitive and follows different review stages. For instance, one reason behind an unsuccessful first review could be a not promising deal, or an incomplete business plan as a second review, even a sustainability gap can justify a lack of due diligence. So, it is not an easy job to get the financing. Yet,    some successful examples are Amazon, Apple, Body Shop, ML Labs., and AirBnB, among others.

Hope this helps! All the best,

Berioshka, Notekeepers Team

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This special edition attempts to register the traces left by the referred battle. So, here there is one interpretation of the main questions discussed that day.

Strong AI

1. ¿Is the project feasible in the near time? Ans.: This is the starting point, and we are actively working in researching.
2. ¿How a machine can be better than a real teacher? Ans.: The strong point here is the human improvement in the robot, since the machine is adapting through the interaction with the students. Consequently, we are not trying to replace a teacher.
3. ¿How do you plan to achieve empathy with this machine? Ans.: We are actively working in researching to clarify that point. Nowadays, we cannot assure 100% certainty since we perform under an uncertainty environment.
4. ¿How can you persuade people if your project is reliable with such uncertainty? Ans.: There are not advertisements, since we are making researching. We are far from the idea of marketing.
5. ¿Is this outcome software or hardware? Ans.: A robot.
6. ¿How can you build an affordable solution in comparison to a personal tutor? If the tutor is expensive as you said. Ans.: We reaffirm that a tutor per student is much more expensive than one robot for many people.

Weak AI

1. ¿What is your sustainability plan? ¿Why to invest in your project? Ans.: The niche is health industry and our value is accuracy.
2. ¿What is the originality or novelty contribution behind your idea? Ans.: We apply predictive algorithms and we innovate over the existing technology.
3. ¿How do you think to become strong AI in the near future? Ans.: Currently, we cannot anticipate external conditions. The focus of our sensors is gathering real time data instead an adaptive approach.
4. ¿What about liability considering a mistake in a medical diagnostic? Ans.: There are sensors measuring real time information in the form of smart watches. Gathering health conditions like heartbeats, pressure, etc. Through continual improvement we can get more precise results reducing false negative and false positives.
5. ¿How do you handle the legal aspects in order to control the privacy of the data sets? Ans.: The data is anonymized. Additionally, we consider non disclosure agreement clauses in the contract.
6. ¿Is the model considering inputs from “relatives/family” to make relations to anticipate inherited diseases? Ans.: We do not use such criteria.
7. ¿How are you handling your budget? Ans.: We have a business model based on our smart watch sensor.

Hope this helps! All the best,

Berioshka, Notekeepers Team

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The network effect exemplifies those qualities that a consumer extracts from a product and how that demand scales as a positive feedback. Even though, there is a distinction between a direct and an indirect network effect, namely the increase in usage and the increase in complementary goods correspondingly. Then, the adoption of such inventions can still increase proportionally to the current amount of buyers, if potential customers hope on the bandwagon of the best option available. So, at first sight the price is not the only reason to choice. Consequently, the positive feedback can be favourable for stronger competitors and the opposite for weak competitors. For instance, the VHS and betamax battle was won by the virtuous VHS, so the vicious Betamax became obsolete losing the videotape format. In order to resist such competitiveness it is needed a critical mass, or that point when the value obtained is greater or equal than the price paid for the good or service, then ¿How to attract users prior to reaching the critical mass?. Probably, the early adopters are the chosen ones, and from those first interested plan an expansion in the future. Therefore, we need to think about user retention, and such strategy can vary from an easy migration path to a revolutionary strategy. Hence, the strategy can be either open to assure the necessary features available or controlled to maintain the control power in the proprietary system. Nonetheless, through the technological switching the users are exposed to vendor lock-in due to the substantial costs. For instance, the smart phone vendors lock-in the user to avoid the migration of the customer to another brand, or the case of SAP where the purchases are tie up to trainings.

From another stance, as we can infer the buyer’s decisions are not strictly rational. Thus, since the price is not the only factor of influence, and the bandwagon behavior is explicit then the reputation is relevant. Nonetheless, a certainty environment where the analysis is not needed and neither a choice, can induce to an Olympic decision making following a linear sequence of actions. Conversely, it is still possible to find a global optimum from such sequence if the probabilities are given in order to estimate risks. Then if the risks are identified the choices must be judged and the entrepreneurial mindset can decide in terms of a win and loss context. Yet, if we need to find the probabilities and make assumptions in uncertainty, the decision will be the best according the evidence available. For instance, the Cuban missile crisis between URS and US where the information gathered was decisive in the conflict. Moreover, the decisions including ambiguity offer the opportunity to create new environments by induction of novel ideas, since I know nothing I select randomly. On the other hand, a retrospective decision making is supported by proved experiences. So, there is space to act first and justify later, as a Doctor must do under an emergency, although there is still a degree of uncertainty. Lastly, from the garbage can theory (Cohen, March an Olsen), it is stated that there is a continual incoming and outgoing flow of problems, solutions, participants and choice opportunities. Then, the problems are stick to solutions by a matter of chance, although decision makers must recognize all the implications before make a rational decision.  So, do you think the fox did make a rational decision in the Fox and the Grapes fable?

Hope this helps! All the best,

Berioshka, Notekeepers Team

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Exploring the principles of science in action, we can find the first rule that states the fate of facts and machines is in later users’ hands; and the quality of such inventions are a consequence of a collective action. To exemplify, at first sight selecting Android over iOS to target a bigger market segment is reasonable, whilst developing augmented reality can be more attractive for the iOS segment. Despite the fact that Android is more affordable than IOS, the iOS users are willing to buy applications that Android users are not willing to. Hence, IOS has a higher potential for users than Android. This latter example assigns a quality to a machine or a device that we recognize as a seed.

Furthermore, the first method of science in action tends to study things before those are blackboxed, so the focus is the scientific activity and not the readymade science. Currently, there are fewer barriers to access knowledge in comparison to the sixties decade. Even though, still the scientific literature exhibits a low rate of citations and roughly 80% is not cited. Indeed, the expected citations for an article are around 17, meanwhile if an article is not cited at all it is not unexpected.

Moreover, throughout the second principle the scientists and engineers are recognized as representatives of their own inventions. Thus, such inventions are shaped by the hands of others instead through the foundations of the mechanism. So, ¿what is the relationship between science in action and innovation? The constant feedback, since it is essential to develop companies.

From another stance, the Black Swan theory by Nassim Taleb, it makes a depth look into the unpredictability.  Considering a cause and effect perspective, the complexity of the environment has the potential to create unexpected events, and the improper manage of such events can produce catastrophic results. To subjectively exemplify, the first reaction could be either to treat the black swan as an exception and observing it as an outlier, or try to adapt to it as our definition is wrong, or reject it due to the black swan is not a swan. Accordingly, the theory introduces the notion of mediocristan and extremistan. Usually the mediocristan is represented as a normal distribution under well know probabilities, demonstrating relations such as a low impact and highest probability and also a highest impact and low probability relation. Conversely, the extremistan states that an accurate prediction is not feasible since the events are improbable as occurrences, although if presented it would have the highest impact.

Lastly, the problem of induction is also in synch with innovation. Despite that an experience can confirm a truth, still we ignore if that condition will remain immutable forever. As the assumption of the Russell’s Chicken, that chicken was fed routinely ignoring that someday it would be cooked. For instance, the real state bubble affecting over half of the U.S. states represented a major crisis (see The Big Short movie).

Hope this helps, All the Best,

Berioshka – Notekeepers Team

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From another stance, there are sorts of approaches digging into innovation aspects. Indeed, the battles are designed to induce ambiguity, sensemaking analyses the decision by experience, science in action extend the meaning of practice and black swans has the focus on unpredictability.

Firstly, the Battles are a divergent learning dynamic to promote radical innovation. Even though, it is evident that innovation can perform in both; convergent and divergent directions. The drawback in the convergent experience is the incremental innovation as in close organizations, although encompasses team working in the class. Hence, there is still room to improve the collaborative dynamic in the divergent mindset. Throughout Battles, is also faced the dichotomy of retrospective and prospective schemes since the aim is to create new knowledge. Moreover, the situations selected reflect a binary choice to induce a controlled conflict before the reconciliation.

Secondly, Sensemaking was introduced by Karl E. Weick and it is acknowledged as a process by which people give meaning to their collective experiences. Since, every individual make a retrospective analysis from the experience, then they decide to continue or not with an idea. Therefore, a decision here has its base in what you already did, implying both a priori or at posterior criteria. Even though, here the assumptions are created for the future, it is not enough for actions. More reflection and comprehension aid people to become aware that they can make some changes to the course of action.

Thirdly, the Science in Action study by Bruno Latour, explain how social context and technical content are both essential to a proper understanding of scientific activity, emphasizing that science can only be understood through its practice. This latter work declares that fate of facts and machines is in later user’s hands. Additionally, the science in action tends to study things before those are solidified and black boxed.

Hope this helps! All the best,

Berioshka, Notekeepers Team

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Following the footprints of the outcome production it is possible to discover some insights about the organizational transformation. Indeed, a close approach attempts to push an outcome into the market expecting to attract customers, meanwhile the competitors react quickly and aggressively. Conversely, the open approach tries to pull an outcome from the people, shaping an idea with creative teams before reaching the production stage.

Therefore, a quick response is intrinsic in order to survive in dynamic markets. To exemplify, there are cases such as Nokia, the Finnish company that was founded in 1865 as a single paper mill operation and currently is recognize as a multinational communications company. Probably, without opponents the companies stay immutable, but sooner or later they evolve. For instance, the shared economy, which allow the people share their means acting as a partner and also a customer, i.e. AirBnB and Uber.

From this context, the development of current products begins as a conceptualization of the outcome. Firstly, it is performed a market analysis, then according some specifications the technology is selected. As a result, the functional prototyping stage encompasses attributes such as the performance, preliminary design and feasibility. Finally, the styling prototype is derived from social interactions like focus groups. Some examples of initiatives that shifted from open to close innovation are the disruption of smart phones, the fintech and the controversial block chain. Also a case of product development is the aeronautical industry, where the design of the seat is strategic, both for user experience, and for sustainability. Accordingly, you can decide to pull the need from the customers (B2C) or from the company (B2B) as appropriate. For instance, probably an asset like an engine implies knowledge allocated inside the company (B2B).

Additionally, as is expected the concept approval embraces the assessment of a given concept, and this step is comprised by the approval of; the plan of research and development, the schedule, the human resources and the sales. The next stage is the detailed product design, encompassing the drawings, testing and quality specifications, and the supplier selection. Consequently, during the final prototyping goal are prepared the deliverables, demonstrating their reliability as a product or service performing according the specifications. Then, the process is followed by a functional testing and tooling stage. After that, the outcome reached the manufacturing and launching stage where the marketing and communicational campaigns boost the outcome diffusion.

Since the product development is user centred, this strategy can adopt the following methods: validated learning (i.e. validation board), design thinking and system design (i.e. viability, feasibility and desirability), and lean start up (i.e. minimal viable product MVP and prototyping).  To sum up, the product management framework embraces the conceptualization, validation, design and development and the go to market of an outcome.

Hope this helps!

All the best,

Berioshka, Notekeepers Team

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Despite the blurry coordinates of knowledge, it is still imperative to perceive the knowledge to understand the business. So, ¿what is the relationship between the organization and the knowledge? The epistemology can aid to differentiate knowledge from a belief and even a truth.

Let the gambling game the roulette be a playing field, we can design a conservative roulette for risk-averse people, assuring certainty through only two possible events. Therefore, the likelihood is the same for each event, and since the data is given then the knowledge turns into a true knowledge.

Nevertheless, a classic European roulette offers a set of thirty seven numbers instead two. Yet, it is still possible to place a bet per attribute, such colour red o black, or whether the number is odd or even reaching the same chances as the previous conservative approach, although the reward is the lowest. Thus, in this scenario of risk placing bets for either single or a range of numbers is more rewarded. Since the layout is predetermined there is knowledge of the data and given probabilities.

Let the roulette to modify the betting area, so the numbers and colours are not predetermined anymore, at least not at the beginning. Hence, the croupier reveals the layout when the ball stops in the first round. The probabilities are not known in this uncertainty scenario, they vary according our capacity to acquire and process them as the data is just out there.  So ¿how many games do we need to win?. This scenario can conceive the knowledge as a selected set of information about a subject, although the certainty is not achievable.

Let the roulette change every time the croupier shows the ball, in order to reinitialize the distribution of numbers and colours. The complexity has increased and also the ambiguity, so ¿how do you avoid losing money with such infinite values?. Considering limited resources, the risk aversion appears once again. From this perspective, it is possible to recognize the weak ambiguity as an effect of the relative perception about knowledge from any observer. If we consider the data as a meaningless external stimulus, then the information provides such meaning from some knower. Thus, the knowledge acts as a conceptual frame to aware such information. Therefore, the data meaning varies according a mental frame we choose to adopt, and the data is exposed to different interpretation inducing conflicting information.

Finally, we can perceive the strong ambiguity through a new change of the roulette, but this time allowing variations from the players, who can spend resources to modify the slots and made odds in his or her favour. Here, everyone ignores who will try to do such alteration, but each player has the potential. This dynamic shifted from a certainty domain to an extreme ambiguous world, with many possible worlds where you can create new ones. So, ¿how can we convince others to comply with our vision? Since the more adherents the more the new world becomes true.

Hope this helps!

All the best,

Berioshka, Notekeepers Team

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