4.0 Lab: The future of food, finance, health, ed, & management–Otto Scharmer

MIT Sloan Sr. Lecturer Otto Scharmer

MIT Sloan Senior Lecturer Otto Scharmer

From Huffington Post

Last week, Amazon acquired Whole Foods in a move that has many wondering what this means for the direction of the economy. In my view, Amazon’s acquisition of Whole Foods does to organics what Uber did to the sharing economy: it takes something that was born out of a different economic logic (a grocery store dedicated to healthy food) and then molds and morphs it to fit into an economic operating system that is firmly based in the old paradigm—i.e. in a paradigm that aims for world domination rather than serving a goal of shared prosperity and well-being for all. 

In this post, inspired by a number of gatherings with change makers across sectors in China, Europe, and the Americas during the past few weeks, I outline a framework for understanding how the current limits of capitalism we are bumping up against in sectors such as food, finance, health, education and business are all related to the same outdated economic logic or “operating system” (OS). We need a new economic operating system, one that reinvents how we work together as neighbors, as businesses, as cities and as larger systems. Below I describe briefly the evolution of these five sectors from OS 1.0 to where we are today, which in most cases is OS 2.0 or 3.0.

The pressing challenges of our time, i.e. the challenge of losing our environment (ecological divide), our societal whole (social divide), and our humanity (spiritual divide) calls for reinventing our systems of food, health, education, finance and management towards 4.0. This essay lays out the rationale for OS 4.0 and a possible way to get us there through an Asian-American-European initiative called 4.0 Lab.

Five Sectors, One Problem

As the labels of the new economy have gone mainstream (green, organic, sharing economies) the underlying economic reality stays the same. That is to say, the immense buying power of giants like Amazon squeeze the supply chain, workers, farmers, and the planet through the same patterns of exploitation and structural violence that gave rise to the movement for a new economy in the first place.

On one level you could describe the problem by saying that companies like Amazon and Uber misperceive the new economy as just another app that runs on their old corporate operating system (i.e. world domination through economies of scale). In reality, though, the new economy is not just another app—it’s a radical upgrade of their entire operating system. The difference between the old and the new paradigms can be summarized in three words: ego vs. eco. Ego-system awareness means “me first”, while eco-system awareness means an awareness that focuses on the well-being of all.

There is a profound systemic barrier that exists in all major sectors today. It’s not only the mainstream players like Amazon and Uber that are stuck in their current economic operating systems; many of the innovators who once broke through that model are now also stuck. The global food system is still profoundly destructive. The health system is still sick. The educational system is unable to learn. The global financial system is heading full throttle into the next crash—as if 2008 never happened. Foundations and philanthropists still place their assets in the old economy, thereby harming people and planet, in order to use some of the profits to fund projects that alleviate symptoms but don’t deal with root causes. The innovators in all these spaces are stuck in the niches that first gave them space to develop something new. But now these niches are increasingly crowded, and mainstream players adopt the new labels and sound bites while often perpetuating the old models.

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American children need to stop being taught to fear the topic of race – Evan Apfelbaum

MIT Sloan Asst. Prof. Evan Apfelbaum

MIT Sloan Asst. Prof. Evan Apfelbaum

From Quartz

The killing of Trayvon Martin, an unarmed African American teenager from Florida—and the jury’s subsequent acquittal of George Zimmerman, the white man who shot him. The fatal shooting of Michael Brown, an unarmed African American teenager from Ferguson, Missouri, by white policeman Darren Wilson—and the decision by a grand jury not to indict the officer. The massacre of nine African Americans by a white supremacist at a Charleston church in June 2015. These are just a sampling of violent racially charged incidents that have taken place over past three years.

These episodes have sparked rage, disillusionment, sorrow, resentment, and confusion. According to a New York Times/CBS News pollconducted last month, nearly six in 10 Americans, including majorities of both white and black people, think race relations in the US are generally bad, and nearly four in 10 say the situation is worsening.

Yet in spite of this awareness and introspection, our country is still incapable of a coherent, intelligent national conversation about race. Indeed, the subject of race is so sensitive and so volatile that most people are apt to avoid it altogether. Why is that?

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Harnessing technology — David Schmittlein

From The Financial Times

David Schmittlein, dean of MIT Sloan School of Management, discusses the effect of the digital economy on management education with FT Business Education Editor Della Bradshaw.

Watch the video at The Financial Times.

David Schmittlein is the John C Head III Dean and Professor of Marketing at the MIT Sloan School of Management.

Holiday gifts that encourage STEM education — Elaine Chen

MIT Sloan Senior Lecturer Elaine Chen

MIT Sloan Senior Lecturer Elaine Chen

From Fortune

The gender imbalance in STEM fields is extreme. According to a 2010 AAUW report, boys and girls take math and science courses in roughly equal numbers in elementary, middle, and high school, however far fewer women than men pursue these fields in college. According to the National Science Foundation, 29% of all male freshmen planned to major in a STEM field in 2006 compared to 15% of all female freshmen.

Further, while 57% of undergraduate degrees are earned by women, only 12% of computer science degrees are earned by women. By college graduation, men outnumber women in nearly every science and engineering field.

This divide grows worse at the graduate level and is even wider in the workplace. GirlsWhoCode.com states that women make up half the U.S. workforce, yet hold only 25% of the jobs in the technical or computing fields. To quote from the site: “In a room full of 25 engineers, only three will be women.”

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Our two “E’s” at MIT Sloan: Education and Entrepreneur — Miro Kazakoff

Miro Kazakoff, MBA 2011  Image credit: Upstart Business Journal

MIT Sloan Lecturer Miro Kazakoff, MBA ’11
Image credit: Upstart Business Journal

Though my memory might fail me, the first person I remember meeting at the MIT Sloan School of Management was fellow first-year MBA student Tom Rose. Though we’re both the kind of students that enjoy classroom learning, it was the exciting and creative environment outside of class that really motivated us to try to build something from scratch. That’s why we launched “The MBA Show,” a weekly live web show about MBA news.  We never asked permission, the two of us just started shooting it every week in front of a red curtain taped onto the cafeteria wall. At Sloan, you were able to just kind of do those things without asking permission. You had the space and the freedom to be able to develop ideas and operate like that without having to ask anyone first..

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