How to improve productivity? Make sure it’s shared broadly — Simon Johnson

MIT Sloan Professor Simon Johnson

From The Washington Post

We know what productivity growth requires: investments in new technology. For previous generations, this was factories full of machines, first powered by steam and then by electricity. More recently it was the arrival of computers, which changed how work was organized within and across firms.

We often perceive the impact of new technology imperfectly and with a lag, and today is no different. We can see a wave of hardware and software innovations underway — technologies such as 3D printing and distributed ledgers will allow manufacturing and finance to become more dispersed — but it is hard to know exactly where it will take us.

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MIT Sloan Experts Podcast: Uber, Lyft and Racial Bias

MIT Sloan Professor Christopher Knittel

We hope you enjoy the latest installment of the MIT Sloan Experts Podcast series!

The third in our series of MIT Sloan Experts podcasts features Chris Knittel, professor of applied economics at MIT Sloan, talking about his latest research on racial bias in the ride-sharing industry.

Knittel’s research focuses on how Uber and Lyft are failing black passengers and what to do about it. Listen to this brief podcast and find out how Knittel came to his conclusions, what his findings say about drivers who cancel on customers with names that generally indicate they are a person of color, and what takeaways Uber and Lyft can garner from these findings to improve.

Four Factors for Realizing Full IoT Value — Stephanie L. Woerner

Stephanie L. Woerner, Research Scientist at the MIT Sloan Center for Information Systems Research

From MIT SMR Custom Studio

Realizing value through the Internet of Things (IoT) may begin with simple goals, but it can also catapult a business toward new horizons. The level of commitment to completing the journey really depends on the presence of four factors:

  1. Translating Threats Into Opportunity.

A major driver in IoT initiatives is finding a new source of revenue in the face of changing industry trends. In CISR’s survey of 352 CIOs, respondents with the highest levels of IoT commitment generated 50% of their revenues from products introduced in the past three years. These CIOs see firsthand how quickly disruptive change can occur.

Consider Schindler Holdings AG, which manufactures, installs, and maintains escalators, elevators, and moving walkways. In this increasingly price-sensitive industry, maintenance accounts for 75% of operating profits. This prompted Schindler to use IoT to not only improve equipment maintenance through the data generated by its elevators but also to reposition itself as a service provider that helps customers with building management using this data. To move in this direction, it developed a Web-based customer portal and a mobile app to provide real-time insights.

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Mark Cuban and Nate Silver talk technology, analytics, sports and more

Dallas Mavericks owner Mark Cuban and FiveThirtyEight editor-in-chief Nate Silver spoke last weekend at the MIT Sloan Sports Analytics Conference, covering a wide range of topics. Watch a video excerpt from their conversation:

Read the full interview at FiveThirtyEight or more about the MIT Sloan’s 11th Annual Sports Analytics conference.

This single act would help many Americans reach retirement savings goals — Robert Pozen

MIT Sloan Senior Lecturer Robert Pozen

MIT Sloan Senior Lecturer Robert Pozen

From MarketWatch

It’s true for everyone: despite our best intentions, we often fail to accomplish what we set out to do. When it comes to retirement investing, millions of Americans do not meet their own declared saving goals for retirement.

As a result, almost one-third of the U.S. population has no retirement savings at all,while many others will fall well short of what they will need for their Golden Years.

A solution can be found in the field of behavioral economics, which suggests ways tohelp Americans start saving. It seems that saving is a lot like dieting — small changes can help you reach your goal.

For example, many studies have shown that being automatically placed in a savings plan dramatically boosts participation by employees — even if they can opt out.

These studies show that when an automatic savings plan is introduced with an opt-out, 60% to 70% of employees remain in the plan. This may seem like a technical nuance, but there is a big difference between opting in by completing an application versus choosing not to opt out.

A plan designed to take advantage of this behavior is called an automatic IRA. In the same way that many people fail to start saving, those placed in an automatic IRA simply fail to stop saving by withdrawing from the plan. Automatic IRAs help people build their savings using the power of inertia.

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