With university humanities courses going into decline, there is a serious need for a rethink on societal values. One of them being the high importance pinned on economics. The subject has several claims to glory, yet its practitioners are not covering themselves in similar glory now. Repeatedly have they failed to predict the market upheavals, yet they bear little humility. In a survey conducted by a team from the Northwestern University, it was deduced that while around three-fourths of sociologists and psychologists believe in inter-disciplinary engagement, barely two-fifths of economists think likewise. Literature in particular provides great insight into human behavior, which can be an ideal asset in ensuring the best of talent management practices. Unlike economics, in literature things do not get simplified just for the sake of it. If one considers the works of the likes of Leo Tolstoy, Jane Austen, Fyodor Dostoevsky, George Elliot and of course William Shakespeare, one can find layers of complicated personalities. Human beings do not always act rationally, something which economists assume, but was rejected by Adam Smith himself. Economists must learn from other fields such as literature, philosophy, psychology, sociology, anthropology, history and political science in order to develop more realistic models.

Source:http://knowledge.wharton.upenn.edu/article/could-a-bit-of-tolstoy-and-austen-improve-economic-forecasting/

Uploaded Date:06 February 2018

A lot of companies have been reducing their primary business research investments and instead outsourcing that task to universities, taking advantage of the latter’s often substantial intellectual assets and research infrastructure. Universities too have become more receptive in the wake of reducing government funds and federal grants. Some obstacles have been experienced such as regarding non-disclosure agreements and the potential for Intellectual Property (IP). But by and large, both sides want to forge long term, rather than transactional relationships. For this, some steps are required starting with locating the company’s R&D wing near talent centres such as major universities. Early stage research must be outsourced to universities and funded by these corporates. The entire institution must be engaged with, and not juts some talented individuals. Companies mustn’t stick to the usual big brands, but explore other options which could prove to be aces. The Non-Disclosure Agreements (NDAs) must be reinforced among both parties by focusing on aspects of interest to all. The patent licensing norms must be relatively flexible. Projects must be executed and finished in such a manner, that relationships exist where contracts could be resigned or extended with the same party in good faith. There is often a substantial cultural gap between MBA institutions and corporates. This needs to be sensitively handled to benefit both parties through a concept of societal engineering.

Source:https://hbr.org/2018/01/why-companies-and-universities-should-forge-long-term-collaborations?utm_medium=email&utm_source=newsletter_daily&utm_campaign=dailyalert&referral=00563&spMailingID=18894202&spUserID=OTY0OTMwNTk5NwS2&spJobID=1181669277&spReportId=MTE4MTY2OTI3NwS2

Uploaded Date:06 February 2018

A report by the World Economic Forum (WEF) plays on the negativity that is following the large-scale introduction of robots and Artificial Intelligence aided tools into various workplaces. While it is true, that there are fears of jobs losses, the WEF says that robots must instead work together with human beings, with each building on the others’ strengths. Even a partner at McKinsey states that the interaction between humans and robots will be of great interest over the next fifteen odd years. To start off, collaborative robots known as ‘cobots’ have been deployed on factory flows. While robots do not tire off or get sick, they are not very adept at improvising as humans do. Instead reskilling corporate training programmes need to be imparted to existing employees, so that people can be taken off repetitive or dangerous tasks and instead focus on creative stuff. Marketing research firm Gartner states that AI backed tools will generate nearly three trillion dollars’ worth of economic growth over the coming years. This is further corroborated by PwC which feels likewise in impact terms. The top ten most in-demand skills are also set to change in 2020 as opposed to those of 2015.

Source:https://www.weforum.org/agenda/2018/01/machines-can’t-dream

Uploaded Date:06 February 2018

The likes of Uber, Xiaomi and Netflix, have all scaled up their operations exponentially within only a few years. This is because they have taken advantage of the power of digitization and the platform-based economy. Leveraging their vast networks, even traditional large corporations such as Philips and Rolls-Royce have also joined in.Global growth rates are abysmally low, while protectionism is affecting international trade. That is why the economics in this new period of globalization requires a completely different approach. Some developments have led to new kinds of business models set to thrive. One is greater connectivity, while another is the rise of digital platforms. A third is the growing propensity of Artificial Intelligence (AI) combined with business analytics. Elements such as robotics, 3 D printing, digital prototyping and real-time collaboration means that we are on the verge of Industry 4.0. Consumers meanwhile are highly connected and mobile. All this cocktailed with a protectionist trade environment stifled by state-led capitalism has given this a unique flavor. In this scenario, the Boston Consulting Group has identified seven new business models. The first such is cross-border servitization. Then there is value-addition through software. Global personalization, multi-local manufacturing and global digital ecosystems add up to the list. The last two are asset-light market entry and development of multiple national identities.

Source:https://www.bcg.com/publications/2017/globalization-new-business-models-global-landscape.aspx?linkId=45913552

Uploaded Date:06 February 2018

In present business, beyond conventional investment banking, there is growing interest on a term called “impact investment”. This impact investing is a method where traditional investment is done keeping in view the ESG factors which are – environmental, social and governance. To cite an example, at the Wharton University, more students are now enrolling for the impact investment course than investment management. This has led to a Social Impact Initiative of the Wharton. Business intelligence provided by Bank of America (BoA) sites that a whopping weighty-five percent of millennials are interested in impact investment. Reports further suggest that women are more likely to go for impact investing than men, so are likely to own majority of the finds in coming times. Merrill Lynch is one of the traditional players now entering this field, but following close behind are Black Rock, TPG and Bain.

Source:http://knowledge.wharton.upenn.edu/article/social-impact-investing-interest-manpower-and-money-pour-in/

Uploaded Date:06 February 2018

A new metric called the Corporate Horizon Index has been developed by one of the big three management consulting firms- McKinsey – to compare and contrast the performance of various companies under parameters such as market capitalization, job creation, investment, revenue and earnings. This index values long term-stability over the destabilizing effects of short-termism. Several findings have already appeared such as between a thirteen-year span since 2001, long-term focused companies have witnessed a forty-seven percent rise in earnings and thirty-six percent in average growth compared to their short-term-centric rivals. Over a similar period, the former companies also created a whopping twelve-thousand more jobs than the other group.

Source:https://www.mckinsey.com/global-themes/long-term-capitalism/where-companies-with-a-long-term-view-outperform-their-peers?cid=other-eml-ttn-mgi-mgi-oth-1712

Uploaded Date:06 February 2018

The term Design Thinking has been around since 1969. But very few companies have actually embraced the concept wholeheartedly. For those who have, the prize returns are exponentially high. A look through the S&P 500 index will show us names such as Disney, Netflix, Nike, Tesla, P&G, Apple and Amazon, companies which have perfected their designs so reaping the rewards. For such firms, more than a department, design is what drives the processes. Departmental silos give way to cross-functional teams. They curate expertise not from only single fields, but make experts from different walks of life work together. People at such places are hands-on, so they prefer the proverbial garages to cubicles. They do not adopt aesthetics as component for any specific project, but is indeed a continuously evolving maxim embedded in their corporate strategy. The research they undergo is that involving the full-spectrum. Their innovations are not aimed at one type development, so the continuously prototype. They gauge business intelligence by engaging with customer groups. The changes they envisage go beyond the incremental to brave new ones.

Source:https://www.mckinsey.com/business-functions/mckinsey-design/our-insights/more-than-a-feeling-ten-design-practices-to-deliver-business-value

Uploaded Date:06 February 2018