Trump and transforming capitalism: making our movement see itself – Otto Scharmer

MIT Sloan Sr. Lecturer Otto Scharmer

MIT Sloan Senior Lecturer Otto Scharmer

From Huffington Post

“Trump is America’s wake-up call” I heard a visitor to the United States say the other day. True. Trump’s first year has been a wake-up call heard around the world. But are we really waking up? And who is “we”? And what, if anything, is the new awareness that we are supposed to wake up to?

This column inquires into these questions, and announces a major initiative that blends the news and social media power of HuffPost with the online-to-offline movement-building capacities of MITx u.lab.

Over the past few months, having attended events and grassroots gatherings in various parts of the world, I’m encouraged that such a waking-up and movement building process is well underway. I’ve seen firsthand a new landscape of initiatives focused on transforming the foundations of our economies and our social structures that is emerging. At the same time, social media movements such as #MeToo have shown how quickly latent and necessary changes can be catalyzed in our current moment. While there is still much more structural and systemic work to be done, it’s increasingly clear that as our old economic structures and civilizational forms hit the wall of our planetary limits, a new world is taking shape that focuses on bridging the three major divides of our time: the ecological divide, the social-economic divide, and the spiritual divide.

This awakening process is not only happening in grassroots movements. It’s equally observable among many, particularly younger, leaders working inside our traditional institutions. Everyone knows that we live in a moment of profound disruption. An old order is about to end. And something new is about to be born.

Last week, I was running a session at the European Central Bank in Frankfurt. During the discussion, one of the senior management attendees said: “The problem you describe is not totally new. The destructive dynamics of prejudice, ignorance, hate, and fear have been around for a long time.” And then he asked, “But why is it so much worse today? What is actually different now?”

What a great question. It prompted me to deepen my own sense making.

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How analytics and machine learning can aid organ transplant decisions – Dimitris Bertsimas and Nikolaos Trichakis

MIT Sloan Prof. Dimitris Bertsimas

MIT Sloan Asst. Prof. Nikolaos (Nikos) Trichakis

From Health Data Management

magine this scenario: A patient named John has waited 5.5 years for a much-needed kidney transplant. One day, he learns that a deceased donor kidney is available and that he is the 153rd patient to whom this kidney was offered.

Clearly, this is not a “high-quality” organ if it was declined by 152 patients or the clinicians treating them. But because John has been waiting a long time for a new kidney, should he accept or decline the kidney? And can analytics and machine learning help make that decision easier?

Currently, that decision is usually made by John’s doctor based on a variety of factors, such as John’s current overall health status on dialysis and a gut instinct about whether (and when) John will get a better offer for a healthier kidney.

If John is young and relatively healthy, the risk of prematurely accepting a lower-quality kidney is future organ failure and more surgeries. If John’s health status is critical and he rejects the kidney, he could be underestimating how long it will take until a higher-quality organ is available. The decision could be a matter of life or death.

John’s dilemma isn’t unique in the world of kidney transplantation, where current demand outpaces supply. Since 2002, the number of candidates on the waiting list has nearly doubled, from slightly more than 50,000 to more than 96,000 in 2013. During the same time, live donation rates have decreased. Complicating this problem of supply and demand is an unacceptably high deceased donor organ discard rate, as much as 50 percent in some instances.

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Financial regulation calls for 20/20 vision – Antonio Weiss and Simon Johnson

MIT Sloan Professor Simon Johnson

Harvard Kennedy School Senior Fellow Antonio Weiss

From Bloomberg

One of the central pillars of financial reform, the Financial Stability Oversight Council (FSOC), is under political attack and at risk of coming undone.

In the past, the balkanized U.S. financial regulatory system has consistently failed to address risks that took root in its jurisdictional gaps. The FSOC was created to solve that problem, bringing regulators together to make sure they have the tools to protect the economy from financial crises. It is already making an important difference.

Unfortunately, earlier this month the House Financial Services Committee passed the Financial Choice Act (CHOICE Act), which threatens to reverse that progress. It would, for example, all but eliminate the FSOC’s ability to prevent the regrowth of an unsupervised shadow banking sector that might once again threaten our financial stability and economic resiliency. At the same time, the administration of President Donald Trump has signaled that it may use the council to pursue deregulation, rather than its core mandate of financial stability, and to reverse or limit its ability to designate systemically important non-banks for enhanced supervision. Meanwhile, MetLife Inc., the largest U.S. life insurer, recently asked the courts to delay ruling on an appeal filed by the Obama administration seeking to reinstate the firm’s designation as a systemically important institution requiring prudential oversight by the Federal Reserve.  The Trump administration has agreed to put the appeal on hold.

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How blockchain technology will impact the digital economy–Christian Catalini

MIT Sloan Professor Christian Catalini

MIT Sloan Professor Christian Catalini

From University of Oxford Faculty of Law.

The Platform of the Future?

The survival of any organization depends on its ability to outperform competitors and marketplaces in attracting and rewarding talent, ideas and capital. As communication and transaction costs have drastically declined because of the internet, new platforms have emerged, delivering goods and services at a speed and efficiency previously unimaginable. These new digital players took advantage of the changes in the underlying technology to challenge established business models and rethink pre-existing value chains. The ones that succeeded did so because they achieved a level of efficiency that their brick and mortar counterparts had trouble replicating. Through online reputation and feedback systems, digital players were able to create global marketplaces where individuals, products and services could be matched more effectively than ever before. By providing curation and ensuring the safety of transactions, these new types of intermediaries were able to reap the returns of this first wave of digitization.

A similar transformation is about to happen as blockchain technology and cryptocurrencies mature and mainstream applications emerge. Under this new wave of technological change, intermediaries will still be able to add value to transactions, but thenature of intermediation will fundamentally change. Whereas some established players will be able to use this opportunity to further scale their operations, others will be challenged by new entrants proposing entirely new approaches to value creation and value capture.

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Why GoPro needs to pick a model–John Carrier

MIT Sloan Sr. Lecturer John Carrier

MIT Sloan Senior Lecturer John Carrier

From Huffington Post

GoPro’s recent loss of $107.5 million is certainly dramatic. After all, last year it announced a profit of $16.8 million. However, it’s also a cautionary tale for all new companies that find themselves in a similarly precarious financial position after enjoying rapid financial success. When this happens, it’s time to take a hard look at the business model.

The big question the company should ask is whether it aspires to be more like Crocs, Chrysler, or Apple. These three companies have all found varying degrees of success through very different models. Each offers substantial pros and cons so it is important for GoPro to know its vision and find the right fit.

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