Informed i’s Weekly Business Insights

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Extractive summaries and key takeaways from the articles carefully curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision-making | Since 2017 | Week 373, November 1-7, 2024 | Archive

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Shaping Section

What if Microsoft let OpenAI go free?

The Economist | October 28, 2024

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3 key takeaways from the article

  1. Since 2019 Microsoft has provided more than $13bn in cash and computing capacity to OpenAI, a once-penniless startup that is now at the forefront of generative artificial intelligence (AI) and, as of its most recent fundraising round, worth $157bn. In exchange, Microsoft has gained the exclusive right to run OpenAI’s models on Azure, its cloud-computing business.
  2. So far it has been a wildly successful partnership. Funding from Microsoft has helped OpenAI build bigger and better large language models (LLMs). That technology, in turn, has been incorporated into Microsoft’s various software products. The ties between the two have allowed Azure to chip away at the lead of AWS, Amazon’s cloud-computing division.  
  3. Yet OpenAI sometimes chafes at the ties to its wealthy benefactor. Many believe that Microsoft should loosen its grip. They have their eyes on the half of the cloud-computing market still controlled by AWS. Gaining access to that would increase OpenAI’s already dominant position in the provision of LLms, lifting revenues that are expected to be upwards of $3.5bn this year.

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Topics:  Technology, Artificial Intelligence, Open AI, Microsoft, Google, Amazon, Cloud Computing, Regulations, Competition

Who Thinks China’s Not an Economic Powerhouse? China

By Dan Murtaugh et al., | Bloomberg Businessweek | October 2024 Issue

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3 key takeaways from the article

  1. How can the world’s second-largest economy be simultaneously “developed”—at the cutting edge of science and technology—yet still be officially classed as “developing”—allowed concessions on emissions and access to global funds? A point of contention that will loom over November’s United Nations climate summit in Baku, Azerbaijan.
  2. China likes to think of itself as a hybrid superpower, a compromise description that serves its diplomatic goals. In climate finance, though, the position is untenable. If a nation is considered developed, it’s expected to pay into a $100 billion-a-year UN pot. Developing nations not only have no such obligation but can also use the money to mitigate the impact of hotter summers and more frequent storms.
  3. US and European leaders will push China to join their ranks and begin paying up. But Beijing is set on defending its developing-nation status, which allows it to spend formidable amounts of money to advance global climate goals but on its own terms.

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Topics:  Environment, Global Warming, China, USA, Developed Countries, Developing Counties

OpenAI brings a new web search tool to ChatGPT

By Melissa Heikkilä | MIT Technology Review | October 31, 2024

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2 key takeaways from the article

  1. Until now, ChatGPT was mostly restricted to generating answers from its training data, which is current up to October 2023 for GPT-4o, and had limited web search capabilities. Searches about generalized topics will still draw on this information from the model itself, but now ChatGPT will automatically search the web in response to queries about recent information such as sports, stocks, or news of the day, and can deliver rich multi-media results. Users can also manually trigger a web search, but for the most part, the chatbot will make its own decision about when an answer would benefit from information taken from the web.
  2. But despite the enhanced ability to search the web and cross-check sources, the tool is not immune from the persistent tendency of AI language models to make things up or get it wrong. Another risk is that the current push to access the web through AI search will disrupt the internet’s digital economy.  By shielding the web behind an all-knowing chatbot, AI search could deprive creators of the visits and ‘eyeballs’ they need to survive.

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Topics:  Technology and Humans, Artificial Intelligence, Search Engine, Regulations, Competition

Strategy & Business Model Section

Brittle, Anxious, Nonlinear, and Incomprehensible: Welcome to the ‘BANI’ world

By Raj L. Gupta et al., | Fortune | November 5, 2024

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3 key takeaways from the article

  1. Welcome to the BANI world—Brittle, Anxious, Nonlinear, and Incomprehensible. This new paradigm has replaced the familiar VUCA (Volatile, Uncertain, Complex, Ambiguous) framework. The shift from VUCA to BANI is evident in three key areas. First, the speed of change has accelerated dramatically. Second, BANI acknowledges the complexity created by the interconnectedness of our global systems.  Finally, the emotional impact of change has intensified. BANI highlights the widespread anxiety and polarization of our era, in which responses can accelerate crises.
  2. Success in the BANI world demands a top-to-bottom transformation of corporate leadership and governance. 
  3. A five-part framework for this radical shift: redefining the Board by recognizing that every seat counts; adaptive leadership – the ability to navigate constant change and ambiguity with agility and resilience; reimagine the C-Suite as a collaborative, cross-functional team to drive agility and innovation; AI Integration; and measure success while taking a more holistic approach that focuses on long-term value creation through three-to-five-year Total Shareholder Return.

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Topics:  Strategy, Business Model, Agility, Resilience

Connecting for growth: A makeover for your marketing operating model

By Biljana Cvetanovski et al., | McKinsey & Company | October 28, 2024 

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3 key takeaways from the article

  1. Achieving marketing aspirations and goals has become more challenging than ever as capabilities and tech have gotten more sophisticated. Marketing leaders are responsible for traditional marketing functions (such as brand, creative, and consumer insights) and for newer digital channels (such as performance marketing, retail media, and social media marketing).  Consequently, the job of growth-marketing leaders has gotten more complex as they increasingly wear multiple hats in their organizations.
  2. With the world of marketing becoming more expansive and complicated, achieving growth means defining a new holistic marketing operating model.  Marketing leaders must deliver across four pillars of marketing excellence. They need to execute a clear marketing strategy with insight-led growth, produce best-in-class efficiency and effectiveness via marketing performance, and champion the latest and highest-impact tech-enabled marketing use cases, all while building a fit-for-purpose operating model.
  3. To succeed, marketing and growth leaders can focus on three areas: connecting teams through organizational structure, connecting ways of working through governance and culture, and connecting expertise to growth drivers through capabilities.

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Topics:  Strategy, Business Model, Marketing

Design Products That Won’t Become Obsolete

By Vijay Govindarajan et al., | Harvard Business Review Magazine | November–December 2024

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3 key takeaways from the article

  1. Many commercial offerings today can change and expand to suit users’ evolving needs.  Such products offer enormous potential to companies and their customers.
  2. Such products have been helping customers overcome seven challenges:  age-related developments, age-related challenges congenital limitations, desire for novelty, shifting learning needs, technological evolution, and shifting performance needs.  Companies can meet those challenges in four distinct ways: configurable hardware, preconfigured software, updatable hardware, and updatable software.  Across these categories of products, there are several ways companies can separate themselves from the competition:  increased engagement, flexible market response, continual innovation, and positive social impact.
  3. Several pricing and business models for adaptable products can help companies grow the value pie and share it with their customers.  These are: charging premium pricing, charging for upgrades, positioning products as services, offering complementary products, providing complementary services, monetizing maintenance, establishing brand communities, and providing resale and modification services.

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Topics:  Strategy, Business Model,  Marketing, Product, Sustainability

Personal Development, Leading & Managing Section

Building Mastery: What Leaders Do That Helps — or Impedes

By Lynda Gratton | MIT Sloan Management Review | October 29, 2024

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3 key takeaways from the article

  1. This is a time when we are all asking how best to prepare for a long working life. With expanded life expectancies and fast-paced technological development, this is a necessity.  
  2. However, to make this highly adaptive and flexible model work, there must be strong threads running through a person’s life that bring stability to their working experiences and working identities.  One such thread is mastery — the capacity to create a deep body of knowledge and skills, in the way that craftspeople master their crafts. The foundation of this kind of command is micro skills — those skills that we each build that together add up to a capability and whose combination is valuable and unique. 
  3. Five takeaways are important based on a research:  mastery is an idea whose time has come again; mastery is still built through observation, repetition, and feedback; demonstrating mastery to others is a challenge; companies don’t always step up to support mastery; and GenAI is seen as a partner rather than a threat.

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Topics:  Leadership, Learning, Skills, Training, Lifetime Career

17 Tips To Craft Irresistible B2B Marketing Emails

By Expert Panel | Forbes Magazine | November 7, 2024

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2 key takeaways from the article

  1. In the crowded space of B2B marketing, your emails need to stand out to avoid being overlooked or deleted immediately. But how do you ensure your message gets the attention it deserves?  
  2. Here, 17 Forbes Business Development Council members share insights on what makes a marketing email impossible to ignore:  tailor your message to the recipient’s role and objectives; leverage a mutual connection, if possible; add a personalized subject line; address your readers’ specific needs; provide value with unique and data-driven insight; show concrete benefits in the subject line; highlight a relevant industry trend or surprising statistic; quickly articulate the problem you’re going to solve; demonstrate understanding of your audience’s unique challenges; get to your value proposition quickly and succinctly; consider adopting a casual and authentic tone; follow a formula for memorable, readable emails; present key facts or a comparative analysis of competitors; reference your recipient’s content or social media; leverage persona-level targeting and customization; focus on how a consumer might feel successful when using your product; and consider using a subject line tool.

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Topics:  Marketing, Communication, Personalization, email

Entrepreneurship Section

5 Things Entrepreneurs Can Learn From the Harris and Trump Election Campaigns 

Written by Elizabeth Gore | Inc Magazine | November 6, 2024

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2 key takeaways from the article

  1. The Kamala Harris campaign has raised a record $1 billion in just three months. Can you imagine pulling that off in your next venture round, and that fast? The Trump campaign kept consistently raising money through his loss and four years of civilian life to the tune of $371.9 million between January 2023 and September 30, 2024. Could you bring that kind of funding to your company if you fail at a major milestone?   
  2. Five areas to replicate for the entrepreneurs:  keep the message simple, use influencers, along with digital reach deeper into your community with your products physically (direct sale/message), keep your product messaging consistent, and make sure that a day doesn’t go by without a message going out about how awesome your company is.

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Topics:  Startup, Entrepreneurship, Marketing, Consistency, Advertising, Promotion

How to Build a High-Converting Landing Page — The Design Tips and Best Practices You Need to Know

By Alex Quin | Edited by Chelsea Brown | Entrepreneur Magazine | November 6, 2024

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2 key takeaways from the article

  1. Designing a high-converting landing page can enhance your conversion rate by up to 300%.  The key elements of a high-converting landing page include a hero image or video, a unique selling proposition and an effective, strategically placed call to action.
  2. To further boost conversion rates, you should optimize lead magnets, build trust and credibility through social proof and ensure the landing page is mobile-friendly.  It’s also important to utilize A/B testing and continuously refine your landing page to meet your audience’s preferences.

Full Article

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Topics:  Marketing, Online Storefront, Content Marketing, Website Development