Conflicting Demands and Creativity

In MIT/Sloan:

Conflicting demands within a business can be a source of creativity and opportunity — if they are handled well.
  
The writer F. Scott Fitzgerald once observed, “The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time, and still retain the ability to function.”

But within a business, opposing ideas typically lead to conflict, and in the face of conflicting demands, managers will feel anxiety, stress, and frustration. However, our research at Aeon Co. Ltd., one of Japan’s largest retailers, suggests that a positive approach to handling conflicts between opposing ideas can create new value for a company.

Like many retailers, Aeon faces a built-in conflict in its operations. On the one hand, managers in local stores want to adapt their stock to meet local communities’ preferences and needs. On the other hand, the executive team at Aeon’s national headquarters in Chiba, Japan, strives for greater economies of scale. .... " 

Stephen Hawking Opens British AI Hub

Will be interesting to see the varying views of Hawking and colleagues on different aspects of AI.  Building these 'Centers' for studying complex and disruptive tech seems to be growing.  Following.

Stephen Hawking Opens British Artificial Intelligence Hub
Agence France-Presse (10/19/16) 

Scientist Stephen Hawking on Wednesday opened an artificial research (AI) center at the U.K.'s Cambridge University. Funded by a $12.3-million grant from the Leverhulme Trust, the Leverhulme Centre for the Future of Intelligence (CFI) will bring together researchers, industry representatives, and policymakers to make sure AI technology is used to benefit humanity. The ethics of AI is a core concern for Hawking, who has warned the technology's misuse could pose serious risks to civilization. "It will bring disruption to our economy," Hawking says. "And in the future, AI could develop a will of its own--a will that is in conflict with ours." Researchers will be tasked with developing systems that have goals aligned with human values and are sufficiently trustworthy. The center also will pursue projects ranging from the regulation of autonomous weapons to the impact of AI on democracy. "We don't need to see AI as replacing us, but can see it as enhancing us: we will be able to make better decisions, on the basis of better evidence and better insights," says Stephen Cave, the center's director. "AI will help us to learn about ourselves and our environment--and could, if managed well, be liberating."  ... " 

More Data Changes Decision Making

Good thoughts about who is in control, and how. Will this be solved by more autonomy of the organization to react to changes in data?

How the Big Data Explosion Has Changed Decision Making
by Michael Schrage

Organizations I work with increasingly struggle to straddle two painfully polarizing operating principles. On the one hand, they desperately seek greater agility; on the other, they genuinely want to include all the right stakeholders in their processes. This conflict uncomfortably transcends traditional “centralization/decentralization” debates. Customers and clients demand greater agility, and employees and partners expect greater empowerment. So the companies push hard to provide both. ... " 

Data Explosion and Decision Making

In the HBR, useful thoughts on decisions,  data and organization.

How the Big Data Explosion Has Changed Decision Making
by Michael Schrage

Organizations I work with increasingly struggle to straddle two painfully  
polarizing operating principles. On the one hand, they desperately seek greater agility; on the other, they genuinely want to include all the right stakeholders in their processes. This conflict uncomfortably transcends traditional “centralization/decentralization” debates. Customers and clients demand greater agility, and employees and partners expect greater empowerment. So the companies push hard to provide both.

Including more people, alas, typically increases coordination costs and response times. But, almost paradoxically, greater organizational agility requires greater responsiveness and improved coordination. The more stakeholders involved, the more likely that decisions are delayed. But effective agility frequently demands inclusive stakeholder involvement.

In other words, more people want to make more-agile decisions more often. This tension drives my clients mad. At one Fortune 1000 company, for example, “flame wars” broke out between customer support units, desperate to respond faster to customer complaints, and the technical design group, equally desperate to avoid ad hoc fixes. Neither group could effectively solve the problems without the other, but their overlaps quickly became sources of conflict rather than collaboration. That pathology isn’t uncommon.

The digitally networked enterprise — whether Slacked, Chattered, Skyped, Google Doc-ed — sharply exacerbates tensions and pain points: More stakeholders can instantly access, and share, actionable information. Technology facilitates greater transparency and visibility throughout enterprise ecosystems. Real-time situational awareness dramatically increases. But the managerial and operational ability to act on that data-driven information may not.

By far the best and most useful approach for managing those tensions is Michael Jensen’s path-breaking work in decision rights a quarter-century ago. Simply put, decision rights clarify authority and accountability for decisions and decision making. Decision rights are about how organizations “decide how to decide” who is empowered to make decisions. Think of it as a governance model for enterprise decision.  .... "

Integrating Supply and Demand

In the summer issue of SloanMIT:  This requires membership or sign up registration for the full article.

Integrating Supply and Demand
" ... At many companies, sales generation activities have become disconnected from the operational activities required to fulfill that demand — resulting in conflicting objectives and foregone business opportunities. Bringing the supply and demand sides of an enterprise together can represent a significant opportunity for efficiency and value creation.  ... " 

Waze as Panopticon

In the New Yorker.   Google subsidiary, social driving App Waze is sharing its data with Los Angeles.  Data driving and pattern improvement and intelligence.   How is this like Bentham's Panopticon?  What are the implications?

" ....  The L.A.-Waze partnership is, at least in theory, an initial step toward allowing the city’s planners and engineers to regain a healthier role in mediating the kinds of longstanding cross-town conflicts that Waze has renewed and amplified. Whether the deal will help to resolve fundamental long-term issues related to the city’s growth and inadequate infrastructure is another matter. It’s even still up for question whether improved data-sharing will improve conditions in the short run. .. " 

Google Testing Buy Button

In Retailwire:  Is this the ultimate challenge for retail?  Everyone searches.    So making the buy as easy as possible is powerful.  Embedded discussion is useful.

" ... In what is being seen as a potential challenge to Amazon but perhaps a conflict for retailers, Google plans to begin testing "buy buttons" in coming weeks.

The Wall Street Journal reported last week that buttons will appear beside paid search results on mobile in the "Shop on Google" section. Clicking a button takes the shopper to another Google product page, where orders can be customized (sizes, colors, etc.) and shipping options explored before completing the purchase. Google will also store credit card information to let the shopper repeat the process again at another time. ... " 

Dysfunctional Teams and Healthy Ecosystems

In FastCompany: An interesting view.   Somewhat over segmented.  Have seen some of these examples.   It then suggests healthier ecosystems.  Good idea, but also harder to implement in many cultures.   And where are the rewards to make these systems operate beyond just 'leadership'?

" ... In nature, one quality of healthy ecosystems is their vibrant and interdependent biodiversity, enabling adaptation to environmental shifts and threats. Healthy leadership teams, especially in today’s dynamic world, display divergent perspectives that they respect and value. They avoid getting stuck because they can evaluate options based on data and members’ individual knowledge, and ultimately find places of agreement. They see conflicting opinions as dilemmas to grapple with rather than fights to win. ... "

Tradeoff Analytics Services

Have been examining some of the Watson services announced last week.    These are available free (with limited amounts of data) with registration on the Bluemix cloud services.  One that intrigued me was tradeoff analytics.  Implementing Pareto optimization.  Have not seen that technique embedded anywhere recently, a nice idea. These can be connected via API to a mobile App,  for example.  At the link, documentation  and a demonstration video.  All the services are published as Beta.  Will try with some sample health domain data. Provide your thoughts.

" ... Helps users make better choices to best meet multiple conflicting goals, combining smart visualization and recommendations for tradeoff exploration ... 
The Tradeoff Analytics service helps people optimize their decisions while striking a balance between multiple, often conflicting, objectives. The service can be used to help make complex decisions like what mortgage to take or which laptop to purchase. Tradeoff Analytics uses Pareto filtering techniques to identify the optimal alternatives across multiple criteria. It then uses various analytical and visual approaches to help the decision maker explore the pros and cons of their alternatives. ... " 

(Update):  It was brought to my attention that Pareto optimization and its uses are not well known. The WP has a good article that starts non technically. And more broadly on Pareto Analysis.

(Update): And on Smart Pareto filters.

IARPA Sharp Meets Big Data

I was reminded of the IARPA Sharp project again.  To which I have a loose connection.  Some of the statements below are certainly how we define intelligence ... being adaptive under varying and often contradictory  data.  This means something different again under the strain of big data.  Big Data means we need analytical methods as part of our understanding of the data itself.   More thoughts on this will follow.

Strengthening Human Adaptive Reasoning and Problem-Solving (SHARP)
Adaptive reasoning and problem-solving are increasingly valuable for information-oriented workplaces, where inferences from sparse, voluminous, or conflicting data must be drawn, validated, and communicated—often under stressful, time-sensitive conditions. In such contexts, one’s ability to accurately update one’s mental models, make valid conclusions, and effectively deploy attention and other cognitive resources is critical. ....  " 

3D Printing for Fashion

Continued examples of 3D Printing.  Also note this as an example of what is called late stage differentiation, which improves supply chain efficiency.   But also does conflict with economies of scale that have been key to manufacturing costs for a long time.  Colleague Walter Riker just passed along a link on what is being 3D printed today.

" .... The 3D printing technology is most widely used for manufacturing prototypes quickly and inexpensively. Over the past several years, however, 3D printing has moved into applications such as architecture, dental and medical and even human tissue replication. One burgeoning marketplace is 3D printing is fashion, including garments, footwear, jewelry and eye wear. For example, South African fashion designer Michaella Janse van Vuuren just announced a collection multi-material 3D printed designs using Stratasys¿ new Objet500 Connex3 3D Printer. San Francisco-based startup Continuum lets anyone design their own clothing through its Constrvct online destination, where digital designs are exported to pattern files. The company then uses the files to manufacture the garments on 3-D printers. ... " 

Adaptive Reasoning and Human Problem Solving

Brought to my attention.  Solicitation by IARPA still open.  Below the synopsis.  Agree strongly that this is a big topic.  Its about the data, AND finding new ways to make it useful in the business process solving context.  That context it shifting constantly.

" ... Adaptive reasoning and problem-solving (ARP) are increasingly valuable for information-oriented workplaces, where inferences from sparse, voluminous, or conflicting data must be drawn, validated, and communicated-often under stressful, time-sensitive conditions. In such contexts, an ability to apply inductive and deductive reasoning to complex, ambiguous and/or novel problems is critical. Accordingly, optimizing an analyst's adaptive reasoning could pay large dividends in the quality of their analytic conclusions and information products. Given adaptive reasoning tests' high predictive value for performance and productivity, proven methods for strengthening adaptive reasoning and problem-solving could have significant benefits for society in general, as well as for individuals whose work is both analytical and cognitively demanding. Intriguingly, some recent research suggests that these capabilities may be strengthened, even among high-performing adults. Despite some promising results, however, there are methodological and practical shortcomings that currently limit the direct applicability of this research for the Intelligence Community. ... "  

Specializing in the Visually Impossible

In our innovation center we featured a number of technologies to engage with the consumer in retail.  Digital signage was a common application.  We invited companies, large and small, to participate in providing new technologies.  One such company was 5th Screen, which has just updated their web site.  See also Digital SignageToday, which mentions one of their principals, Keith Kelsen, Who posts about trends in the space.   Very visual and forward looking, they have much experience in retail.    They write in their blog:

" ... We help you bring discovery and education to the in-store experience and deliver an Immersive experience. Every visit is an opportunity to create loyalty, add value and tell the brand story.We develop, with our clients, unique in-store digital experiences that serve to ENTERTAIN and EDUCATE the consumer.  The success of our digital engagement projects are a result of their VISUAL APPEAL, integration with the overall store design and their EASE OF USE.  We understand that retailers and brands have different and sometimes conflicting goals.  Retailers focus on increasing their top line sales SELLING MORE.  Brands increase their top lines sales by ENHANCING THE BRAND experience.  Our challenge is to create a store environment that meets both brand enhancement and retail sales objectives. We work with our client, store designers and fabricators to create a true DIGITAL DESTINATON STORE that develops and maintains an engaging, ongoing and relevant relationship with the consumer.  ... " 

World Peace via Vending Machines

A curious project from Coke using vending machines to promote world peace.   Would they then need a vending App too?   The Happiness project:  " ... Coke quietly posted this teaser video back in late December, but sources suggest a bigger announcement is coming soon and that it will be a major project for the brand. It shows vending machines capable of connecting users, bound for not-so-friendly neighbors India and Pakistan. Video technology means the users in the two countries will actually be able to see each other and touch hands virtually; the idea is that it could roll out to various countries in conflict.... " 

Metadata and the Stroop Effect

The Stroop effect is a clinical test that measures differences in reaction time when you are shown information that confirms or contradicts your own views, conscious or nonconscious.  It has been used in neuromarketing studies in retail.  I am skeptical about its direct usefullness.  Here the suggestion is made that the conflict between  data itself and associated metadata can have similar effects.  The thought is interesting, but I have doubts that a mere timing difference is significant.

Legacy of the Japanese Earthquake and Tsunami

Mark Montgomery of Kyield writes about the legacy of the Tohuki earthquake. Its broad managerial implications and governance.  This reminds me of the preparation of our supply chain to much less catastrophic 'random' events like the Katrina hurricane.  Preparation is everything.  One approach we used was simulation modeling that included sensitivity to key breakdowns.   Causes of the loss of auxiliary power at the Japanese power plant would have been an an obvious example.  

" ... Whether psychological, social, technical, economic, or some combination thereof, it would seem that no justification for not deploying the most advanced crisis prevention systems can be left standing. Indeed, we all have a moral imperative that demands of us to rise above our bias, personal and institutional conflicts, and defensive nature, to explore and embrace the most appropriate solutions, regardless of origin, institutional labeling, media branding, or any other factor. Some crises are indeed too severe not to prevent.... " 

Conflict Management

An excellent piece by Ed Burghard on effective conflict management.  Most people do not deal well with conflict, and this chkeclist of possible solutions can be very valuable.

Better to Call than E-Mail

In the HBR Blog, email may be easier, but it is less impactful:
" ... But the bigger need is just for more live conversations to occur, period. This is especially true when people are trying to resolve a conflict or communicate an important business decision. There is a rising and unproductive trend towards people trying to do digital conflict resolution. The de facto path for issue resolution seems to be increasingly via email. More accurately, email has become a convenient mechanism for issue-avoidance. It is easier, quicker, less stressful, and less confrontational to have critical or challenging issues sent over email versus a live one-on-one with a counterpart.... "

CFO's and the Supply Chain

Have never thought of it in this way, but its a useful thought.  In CFO mag:

"Supply chain and finance are usually seen as separate and conflicting disciplines.

In a retailing or manufacturing company, key performance indicators are typically set by the chief operating officer to maintain high customer-service levels by keeping inventories high. At the same time, the CFO pushes the company’s supply-chain management to reduce inventory as much as possible to avoid the financial burden imposed by high working capital requirements. As a result, supply-chain and financial incentives become misaligned, and efforts to arrive at a compromise can be extremely frustrating for both disciplines. However, it is possible to bridge this divide ... "

KYield Diabetes Use Case Scenario

Mark Montgomery of KYield writes:

" .. I am pleased to share with you our health care use case, which is an important cornerstone of our series 'Semantic Scenarios for the Intelligent Enterprise':
We selected the diabetes mellitus (type 2) scenario to demonstrate the value of the Kyield platform for the health care ecosystem. Given the very high cost of health care in the U.S. currently, with an unsustainable economic trajectory, it is essential that costs be driven lower while improving care. Diabetes type 2 for example has direct costs exceeding $200 billion annually in the U.S. alone, the majority of which is preventable.

The most obvious method in overcoming this significant challenge is with far more intelligent and efficient HIT systems. It's important to highlight, however, that the two largest potential areas for cost savings are in disease prevention and organizational efficiency, which is evidenced in this use case. Not only do the majority of HIT applications and systems fail to address the two most important areas; many actually lead to higher costs across the health care ecosystem.

This was a challenging use case scenario to develop and write due to the complexity of the disease, large body of regulations, incomplete standards, and conflicting interests between the partners in the ecosystem. I had additional personal motivation with this project as my father died a few years ago from complications from diabetes, which was diagnosed shortly after my brother died of Amyotrophic lateral sclerosis (ALS). Ever since the shocking phone call from my brother in the summer of 1997, I have followed ALS research, which is a highly complex and brutal disease.

Diabetes type 2 is also complex, but unlike ALS and many other diseases, diabetes type 2 is largely preventable with a relatively modest change in behavior and lifestyle. Diabetes type 2 has a cure for the majority of patients: prevention through behavioral change and adoption of a healthy lifestyle.

It is not entirely accidental that the HIT sections found in the stimulus and health care reform legislation are well matched for the Kyield platform. Our mission intentionally aligns with the needs of the health care ecosystem; an R&D process that began more than a decade ago.

I am confident that the path provided by this scenario will lead to effective disease prevention, health care delivery at substantially lower costs, and personalized medicine that optimizes tailored therapies for the individual patient. In addition, the integration of anonymous data with life science researchers should result in more effective discoveries in less time at lower costs.

Kyield Healthcare Platform:
Patient Health Management
Diabetes and the American Healthcare System ... "

Mark Montgomery
Founder & CEO - Kyield
Web: http://www.kyield.com
Email: markm@kyield.com