Monthly Archive for September, 2010

Untangling the Social Web

Software: From retailing to counterterrorism, the ability to analyse social connections is proving increasingly useful.

The market for such software is booming. By one estimate there are more than 100 programs for network analysis, also known as link analysis or predictive analysis. The raw data used may extend far beyond phone records to encompass information available from private and governmental entities, and internet sources such as Facebook. Adoption is being driven by the availability of more sources of information, and by the fact that network-analysis software is becoming easier to use.

Where is network analysis headed? The next step beyond mapping influence between individuals is to map the influences between larger segments of society. A forecasting model developed by Venkatramana Subrahmanian of the University of Maryland does just that. Called SOMA Terror Organization Portal, it analyses a wide range of information about politics, business and society in Lebanon to predict, with surprising accuracy, rocket attacks by the country’s Hizbullah militia on Israel [Source].

The Future of the Internet

The internet has been a great unifier of people, companies and online networks. Powerful forces are threatening to balkanise it.

The first internet boom, a decade and a half ago, resembled a religious movement. Omnipresent cyber-gurus, often framed by colourful PowerPoint presentations reminiscent of stained glass, prophesied a digital paradise in which not only would commerce be frictionless and growth exponential, but democracy would be direct and the nation-state would no longer exist.

The internet is too important for governments to ignore. They are increasingly finding ways to enforce their laws in the digital realm. The most prominent is China’s “great firewall”. The Chinese authorities are using the same technology that companies use to stop employees accessing particular websites and online services.

It should come as no surprise that the internet is being pulled apart on every level. “While technology can gravely wound governments, it rarely kills them,” Debora Spar, president of Barnard College at Columbia University, wrote several years ago in her book, “Ruling the Waves”. “This was all inevitable,” argues Chris Anderson, the editor of Wired, under the headline “The Web is Dead” in the September issue of the magazine. “A technology is invented, it spreads, a thousand flowers bloom, and then someone finds a way to own it, locking out others.”

[Source]

From One-time Imitator to Pioneer

Ten years ago, Samsung’s executives poured over numbers and set their 2010 sales goal at $140 billion — four times the amount in 2000. Sales will reach that level this year, according to the median estimate of 21 analysts — right on target. The company is aiming to increase revenue again — this time more than tripling it from 2009 to $400 billion by 2020.

Samsung Electronics has already taken giant steps from its early days as a copycat appliance manufacturer. Now, as a consumer electronics behemoth, it has expanded beyond South Korea and the nation’s industrial, conglomerate-run shipyards, steel mills and auto plants.

“Samsung today is in an incredible position to create the evolution of consumer electronics,” says Shaun Cochran, who heads Korean research at brokerage CLSA Asia-Pacific, which rates Samsung Electronics a “buy.” To be successful, Samsung — a company with a history of top-down managers and obedient employees — will need to shift strategy, a process for which it has few guideposts.

For the one-time imitator to become a pioneer, hitting the numbers will be just the beginning [Source 1] [Source 2].

Emergence of a New Global Business Player

Burger King agreed on Thursday to sell itself to the investment firm 3G Capital for about $4 billion, including the assumption of debt, marking the second time in eight years that the fast-food giant has taken itself private. The agreement on Thursday for Burger King Holdings to be acquired by a Brazilian-backed investment firm, like a deal two years ago for Anheuser-Busch that involved some of the same investors, is one of those emblematic transactions that seem to herald the emergence of a new global business player.

The growth of the Brazilian economy in recent years has created a whole new class of wealthy entrepreneurs who are looking for opportunities to invest their fortunes and are not daunted by the idea of trying their luck beyond Brazil’s borders. Traditionally, Brazilian business has been dominated by an often cautious elite based in São Paulo, the country’s industrial and financial hub. But the economic surge of the last decade has changed that.

One thing is clear, though: Brazil’s dominance in all phases of the global beef industry. The country is already the leading beef exporter and now, thanks to the Burger King deal on Thursday, it has another outlet to encourage consumption globally [Source].

Intel Acquires New Capabilities

Over the last two weeks Intel has bought the wireless business of Infineon for $1.4 billion and McAfee for $7.68 billion, as well as the cable modem business of Texas Instruments for an undisclosed price.

Paul Otellini, CEO of Intel, noted that more and more devices were connecting to the Internet, and said the wireless connectivity was a sector where the company saw “growth potential.” Furthermore, Intel CEO Paul Otellini lays out the rationale for this deal in a press release:

Intel’s goal is to expand its mobile and embedded product offerings to support additional customers and market segments, including smartphones, tablets, netbooks, notebooks, and embedded computing devices. Through this effort, Intel will pair WLS’s best-in-class cellular technology with its core strengths to enable the delivery of low-power, Intel-based platforms that combine its applications processor with an expanded portfolio of wireless options—bringing together Intel’s leadership in Wi-Fi and WiMAX with WLS’s leadership in 2G and 3G, and a combined path to accelerate 4G LTE.”

Source.