Preaching to the choir? Beyond the People’s Climate March — Christopher Knittel

MIT Sloan Prof. Christopher Knittel

From WBUR Cognoscenti

Huge crowds recently descended on New York City to demand action on climate change. While it was an important event, I’m not sure what the march accomplished, beyond calling more attention to this critical issue. But there is a way to harness this kind of people power in a way that can have a real impact: Organize a string of high-profile marches and other activities right in the congressional districts of politicians who continue to deny undeniable science.

True political change doesn’t necessarily happen by marching in front of world leaders and others who already largely agree with you. But there can be a real impact if some of these same marchers would be willing to demonstrate in less friendly political territory to directly take on some powerful people who stand in the way of meaningful efforts to combat climate change.

Take, for example, the U. S. House of Representatives Committee on Science, Space and Technology. Shockingly, some members of the panel bearing that prestigious title are among Washington’s biggest science deniers. Jon Stewart recently pilloriedsome of those congressmen on The Daily Show, including Larry Bucshon, Steve Stockman and Dana Rohrabacher.

Read the full post at WBUR Cognoscenti. 

Christopher Knittel is the William Barton Rogers Professor of Energy and a Professor of Applied Economics at the MIT Sloan School of Management.

Taking a wait-and-see approach with disruptive innovations — Matt Marx

MIT Sloan Asst. Prof. Matt Marx

From TechCrunch

There’s been quite the brouhaha lately about disruptive innovation. On one side is Harvard Prof. Clay Christensen (author of The Innovator’s Dilemma) and his long-prevailing theory about how disruptive innovation drives incumbents out of the market. On the other side is Jill Lepore and her attack of Christensen’s theory in The New Yorker. It’s an interesting issue: Do disruptive innovations almost always lead to the downfall of incumbent companies? Is their only hope to “disrupt” themselves?

Along with Joshua Gans of the University of Toronto and David Hsu of Wharton, I conducted a study on the speech recognition industry over the last 58 years. We found a surprising pattern among entrants that adopted disruptive technologies: Instead of always going head-to-head with incumbents, they often adopted a dynamic commercialization strategy in which they started out competing against them, but later switched to cooperating with them (e.g. by licensing their technology). To understand how this can happen, we need to review what it means for a technology to be “disruptive.”

Believe the IoT hype or perish: Equipping today’s graduates for tomorrow’s tech — Peter Hirst

MIT Sloan Executive Director of Executive Education Peter Hirst

MIT Sloan Executive Director of Executive Education Peter Hirst

From Wired

I recently attended the second annual Internet of Things World Forum in Chicago, IL. In the opening keynote presentation, Wim Elfrink, Cisco’s EVP of Industry Solutions and Chief Globalization Officer, referenced Gartner’s latest version of its“Hype Cycle,” noted that IoT (the Internet of Things) has climbed over the past year to its peak. Yet, on closer inspection, the enviable place IoT is enjoying within this technology-evolution framework is actually named the “peak of inflated expectations,” a precarious high point where individual dazzling success stories of early adopters and visionary speculation are outshining wider market reticence and slow early adoption. In the model, this magical time is usually followed by a “trough of disillusionment,” then — if the market responds favorably to second and third-generation tech — the “slope of enlightenment,” and finally — if wide market adoption takes place — a “plateau of productivity.”

The conference certainly provided many vivid illustrations of success and the potential of IoT, but will this fledgling industry make it through the inevitable coming trough, and climb “high and right” on the chart with predicted tens of billions of connected devices, as was enthusiastically espoused by Elfrink in his opening remarks?

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How Corporate America can create better jobs — Thomas Kochan

MIT Sloan Professor Thomas Kochan

MIT Sloan Professor Thomas Kochan

From Fortune

In the 1987 movie Wall Street, Gordon Gekko’s memorable pronouncement that “greed is good” epitomized the worst features of American corporations that focus only on maximizing immediate shareholder returns without regard to the impact on their employees, customers, or communities.

That corporate caricature has continued to prevail. But recently, people ranging from Harvard University Business School Professor Michael Porter to leaders of the Sloan, Ford, Aspen, Hitachi (more here) and other foundations are putting forward the case that companies can provide great returns to shareholders and great jobs for employees.

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The new mathematics of startup valuation — Bill Aulet

MIT Sloan Senior Lecturer Bill Aulet

MIT Sloan Senior Lecturer Bill Aulet

From The Wall Street Journal

Valuing a company is always a mix of science and art, especially for startups.  Historically the science has been pretty simple: Find comparable companies and do a multiple of earnings or revenue.

However, three drivers of startup valuation have emerged that are changing the game. “Acquihire,” is the act of buying out a company for the skills and expertise of its staff. It has become so well-known that it is even listed in the Oxford English Dictionary. When Facebook buys a company like Hot Potato, it’s not for the revenue stream or products — it’s for the employees.

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