Delivery app Hugo crushed Uber in El Salvador. So why is it shutting down? From the moment it launched in 2017, Hugo, a last-mile delivery service that offered users everything from food and cash delivery to concert ticket collections, went toe-to-toe against Uber Eats and other global delivery giants. For a while, the Salvadoran contender came out on top. Then, on January 4, Hugo’s founders announced in a statement that the company would be shutting down on January 10. Rest of World visited Hugo’s offices in San Salvador on the startup’s final day of operation, and spoke to three delivery drivers, two corporate employees, and the company’s founder, Alejandro Argumedo. All of them agreed it was an emotional farewell, and a profound change for the last-mile delivery scene in El Salvador. Yet, while executives and many corporate employees are looking forward to cashing in or moving on to PedidosYa, the company that acquired the startup’s operations, Hugo’s delivery workers say they are the ones paying for the brunt of this change. Continued here |
Holding Onto Your Marketing Budget in a Downturn Most marketers know that when the economy turns, their budget at risk. So with today’s economic uncertainty, volatile markets, inflation, and more, what should marketers be doing now? Based on her experience in media and marketing through different economic cycles, the author offers six actions for CMOs to consider as we face a potential downturn: 1) Build a tight relationship with your CFO; 2) Zero out inefficient spend and ways of working; 3) Embrace speed and agility; 4) Stand out by staying in the market; 5) Make decisions in the context of your sector’s dynamics; and 6) Continue to drive forward digital transformation powered by data. Continued here |
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Taiwan goes all in on crypto, despite the global crash The same day that disgraced cryptocurrency exchange founder Sam Bankman-Fried was arrested in the Bahamas, Taipei’s mayor-elect, Chiang Wan-an, stepped onto a stage in front of a packed auditorium to extol the bright future that blockchain technology would bring to Taiwan. Chiang’s speech was part of Taipei Blockchain Week, which took place last month in a movie theater on the upper floors of a luxury mall, with views of the iconic Taipei 101 building. There, attendees heard Taiwan’s pitch to a shaken crypto community: The island nation should be Asia’s next crypto hub. Continued here |
A Sustainable Economy Depends on Sustainable Materials At a family gathering in August, I gave a brief tribute to my mother on the occasion of her 90th birthday. As the guests sipped their coffee in the warm summer air, I ticked off a dozen or so pieces of wisdom that she has imparted to her family over the decades. One insight that I credited to her was an aversion to waste. In our household, items such as clothes and toys would have multiple lives before being thrown out, and leftover food would be transformed into tomorrow’s lunch. In other words, my mother was an early advocate of the circular economy, in which materials and products have multiple iterations, and the waste of one process loops back and becomes the input for another. For people of her generation, these are commonly held values. But younger generations have largely strayed from these ideas, opting instead to produce and consume more and more. Some of the waste is recycled, but that only goes so far towards addressing the problem that the planet has limited resources to offer. Continued here |
Why Diverse Teams Are Smarter Striving to increase workplace diversity is not an empty slogan — it is a good business decision. A 2015 McKinsey report on 366 public companies found that those in the top quartile for ethnic and racial diversity in management were 35% more likely to have financial returns above their industry mean, and those in the top quartile for gender diversity were 15% more likely to have returns above the industry mean. Continued here |
You Need an Innovation Strategy Without such a strategy, companies will have a hard time weighing the trade-offs of various practices—such as crowdsourcing and customer co-creation—and so may end up with a grab bag of approaches. They will have trouble designing a coherent innovation system that fits their competitive needs over time and may be tempted to ape someone else’s system. And they will find it difficult to align different parts of the organization with shared priorities. Continued here |
Meta sues "scraping-for-hire" service that sells user data to law enforcement Meta said it’s suing “scraping-for-hire” service Voyager Labs for allegedly using fake accounts, proprietary software, and a sprawling network of IP addresses to surreptitiously collect massive amounts of personal data from users of Facebook, Instagram, Twitter, and other social networking sites. Continued here |
Amid China's massive COVID wave, 42% of people on one flight tested positive Although China has largely abandoned COVID-19 case reporting, evidence of its massive wave of infection readily shows up in airports outside its borders. Continued here |
Google to SCOTUS: Liability for promoting terrorist videos will ruin the Internet For years, YouTube has been accused of enabling terrorist recruitment. This allegedly happens when a user clicks on a terrorist video hosted on the platform, then spirals down a rabbit hole of extremist content automatically queued “up next” through YouTube’s recommendation engine. In 2016, the family of Nohemi Gonzalez—who was killed in a 2015 Paris terrorist attack after extremists allegedly relied on YouTube for recruitment—sued YouTube owner Google, forcing courts to consider YouTube’s alleged role in aiding and abetting terrorists. Google has been defending YouTube ever since. Then, last year, the Supreme Court agreed to hear the case. Continued here |
Ars is reviewing HBO's The Last of Us series While video game adaptations into linear media have a bit of a hit-and-miss history at this point, the prestige TV treatment of this post-apocalyptic thriller is getting plenty of early buzz. That's probably thanks in no small part to the involvement of the game's creative director Neil Druckmann, who serves as executive producer and director for the TV series. Continued here |
Best Buy offers free shipping for all members, but cuts Totaltech benefits Big changes are afoot in electronics seller Best Buy's member and customer loyalty program as the company aims to generate more revenue and compete with Amazon, Best Buy announced via emails to customers this week. Continued here |
How Apple Is Organized for Innovation When Steve Jobs returned to Apple, in 1997, it had a conventional structure for a company of its size and scope. It was divided into business units, each with its own P&L responsibilities. Believing that conventional management had stifled innovation, Jobs laid off the general managers of all the business units (in a single day), put the entire company under one P&L, and combined the disparate functional departments of the business units into one functional organization. Although such a structure is common for small entrepreneurial firms, Apple—remarkably—retains it today, even though the company is nearly 40 times as large in terms of revenue and far more complex than it was in 1997. In this article the authors discuss the innovation benefits and leadership challenges of Apple’s distinctive and ever-evolving organizational model in the belief that it may be useful for other companies competing in rapidly changing environments. Continued here |
Despite Everything You Think You Know, America Is on the Right Track Yes, America is a wounded giant—but it always has been, and the case for optimism is surprisingly strong. Negativity is by now so deeply ingrained in American media culture that it’s become the default frame imposed on reality. In large part, this is because since the dawn of the internet age, the surest way to build an audience is to write stories that make people terrified or furious. This is not rocket science: Evolution designed humans to pay special attention to threats. So, unsurprisingly, the share of American headlines denoting anger increased by 104 percent from 2000 to 2019. The share of headlines evoking fear surged by 150 percent. Continued here |
A Refresher on Statistical Significance When you run an experiment or analyze data, you want to know if your findings are “significant.” But business relevance (i.e., practical significance) isn’t always the same thing as confidence that a result isn’t due purely to chance (i.e., statistical significance). This is an important distinction; unfortunately, statistical significance is often misunderstood and misused in organizations today. And yet because more and more companies are relying on data to make critical business decisions, it’s an essential concept for managers to understand. Continued here |
Why Online Shoppers Aren’t Falling for Exploding Deals Time-limited sales are a marketing staple in retail stores, but those same scarcity tactics don’t work online to move products and increase profits. Wharton marketing professor Cait Lamberton explains why. Wharton’s Cait Lamberton speaks with Wharton Business Daily on Sirius XM about why online consumers resist time scarcity promotions. Continued here |
The Case for ‘Kraken’ A new subvariant of SARS-CoV-2 is rapidly taking over in the U.S.—the most transmissible that has ever been detected. It’s called XBB.1.5, in reference to its status as a hybrid of two prior strains of Omicron, BA.2.10.1 and BA.2.75. It’s also called “Kraken.” Not by everyone, though. The nickname Kraken was ginned up by an informal group of scientists on Twitter and has caught on at some—but only some—major news outlets. As one evolutionary virologist told The Atlantic earlier this week, the name—a reference to the folkloric sea monster—“seems obviously intended to scare the shit out of people” and serves no substantive purpose for communicating science. Continued here |
What Is Disruptive Innovation? For the past 20 years, the theory of disruptive innovation has been enormously influential in business circles and a powerful tool for predicting which industry entrants will succeed. Unfortunately, the theory has also been widely misunderstood, and the “disruptive” label has been applied too carelessly anytime a market newcomer shakes up well-established incumbents. Continued here |
Research Summaries Written by AI Fool Scientists Scientists cannot always differentiate between research abstracts generated by the AI ChatGPT and those written by humans An artificial-intelligence (AI) chatbot can write such convincing fake research-paper abstracts that scientists are often unable to spot them, according to a preprint posted on the bioRxiv server in late December1. Researchers are divided over the implications for science. Continued here |
The Discipline of Innovation In the hypercompetition for breakthrough solutions, managers worry too much about characteristics and personality—“Am I smart enough? Do I have the right temperament?”—and not enough about process. A commitment to the systematic search for imaginative and useful ideas is what successful entrepreneurs share—not some special genius or trait. What’s more, entrepreneurship can occur in a business of any size or age because, at heart, it has to do with a certain kind of activity: innovation, the disciplined effort to improve a business’s potential. Continued here |
Research: Adding Women to the C-Suite Changes How Companies Think It’s well known that firms with greater gender diversity among senior leadership perform better. But what’s less clear is why exactly that is. What are the specific mechanisms that drive the positive business outcomes associated with increasing the number of women in the C-suite? In this piece, the authors share new research that explores exactly how the addition of female executives shifts companies’ strategic approach to innovation. Based on an analysis of more than 150 companies, the authors find that after women join the top management team, firms become more open to change and less open to risk, and they tend to shift from an M&A-focused strategy to more investment into internal R&D. In other words, when women join the C-suite, they don’t just bring new perspectives — they actually shift how the C-suite thinks about innovation, ultimately enabling these firms to consider a wider variety of strategies for creating value. Continued here |
Startups, It's Time to Think Like Camels -- Not Unicorns Covid-19 and the global recession it has caused have us all girding for a long period of extremely challenging conditions in the global market. This situation is uncharted waters for the traditional Silicon Valley startup model, which is geared toward fast growth and creating “unicorns.” Instead of the unicorn, the camel is the more fitting mascot. Camels can survive for long periods in extremely adverse conditions. Startup camel enterprises offer businesses in all industries and sectors valuable lessons on how to survive and grow in adverse conditions. They do this with three strategies in mind: they execute balanced growth; they take a long-term outlook; and they weave diversification into the business model. Continued here |
Why the Lean Start-Up Changes Everything In the past few years, a new methodology for launching companies, called “the lean start-up,” has begun to replace the old regimen. Traditionally, a venture’s founders would write a business plan, complete with a five-year forecast, use it to raise money, and then go into “stealth mode” to develop their offerings, all without getting much feedback from the people they intended to sell to. Lean start-ups, in contrast, begin by searching for a business model. They test, revise, and discard hypotheses, continually gathering customer feedback and rapidly iterating on and reengineering their products. This strategy greatly reduces the chances that start-ups will spend a lot of time and money launching products that no one actually will pay for. Continued here |
Gene Drives Could Fight Malaria and Other Global Killers but Might Have Unintended Consequences A new technology could wipe out whole species. Is it a magic bullet or a genetic atom bomb? Every year more than 600,000 people die from mosquito-transmitted malaria, most of them children under age five. Some insects that are disease vectors, such as mosquitoes, are currently expanding their range around the world, bringing new threats. Genetic engineering can fix this by permanently altering insect genes through what is known as a gene drive. Continued here |
Photos of the Week:Â Arabian Oryx, Siberian Tigers, Flying Squid Dogsledding in the dark in Svalbard, a trout-catching contest in South Korea, lava in Hawaii’s Kilauea volcano, tornado damage in Alabama, heavy rain and floods in California, Orthodox Christmas celebrations in Bosnia and Herzegovina, an invasion of Brazil’s Congress by pro-Bolsonaro protesters in Brasilia, and much more Cashmere goats graze on foliage as they wander through brush above the beach in Bournemouth, England, on January 9, 2023. Bournemouth, Christchurch and Poole Council began a goat-grazing scheme in 2020 on the East Cliff, overlooking Bournemouth beach. The aim is to encourage British feral goats to manage vegetation along the cliff tops naturally. Grazing by livestock is seen as the only long-term and viable solution for cliff management. # Continued here |
The One Number You Need to Grow
This finding is based on two years of research in which a variety of survey questions were tested by linking the responses with actual customer behavior—purchasing patterns and referrals—and ultimately with company growth. Surprisingly, the most effective question wasn’t about customer satisfaction or even loyalty per se. In most of the industries studied, the percentage of customers enthusiastic enough about a company to refer it to a friend or colleague directly correlated with growth rates among competitors. Continued here
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