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The Global Warming Controversy

2015. március 08. - Kevin Jackson

Back in 2007, former U.S. Vice President, Al Gore, received the Nobel Prize for his role in the making of the internationally acclaimed film, “An Inconvenient Truth.” Due to the success of this documentary and the number of scientists supporting the global warming case, it seemed that the international community would surely unite and implement strict measures to slowdown the emissions of CO2. This has not happened. While there may be a consensus among scientists regarding the existence of global warming, there are many policymakers around the world that still either see the global warming case as unfounded or are convinced that proposed solutions are economically unfeasible.

One of the most common arguments against global warming is that a clear upward trend in temperatures cannot be established and there is an absence of long-term historical data. Another reason is that the rise in global temperatures could be the result of a normal climate shift and have nothing to do with greenhouse gases. Other concerns are related to potential job losses and the fact that India and China currently heavily rely on coal and are unwilling to take significant steps due to potential economic fallout. Despite the scientific evidence supporting global warming, it is policymakers that need to be convinced and this is no easy task.

If everyone were to agree that global warming does exist and presents a significant threat, then what can be done about the problem? The adoption of renewable energy is certainly one way and we are seeing significant advances in solar (please after to an earlier blog entitled “Rooftop Revolution”). Other suggestions are that we all should ride our bikes more and recycle our garbage. We should also not forget the potential for breakthrough developments like Elon Musk’s hyperloop and the emergence of electric and hydrogen-powered cars either. Overall, advancements are being made that are both cost efficient and environmentally friendly.

In a recent article in the Washington Post, Ed Rogers makes the case that governments need to stop fiddling around with complex carbon price formulas and focus on supporting technologies that can make a genuine difference over the long run. He is absolutely right. I think we should first all agree that polluting the environment does have negative consequences. Secondly, by making alternative energy solutions affordable and effective, it will naturally reduce our dependence on fossil fuels because it will be profitable to do so. Global warming is undoubtedly a question that will not be answered anytime soon. In the meantime, let’s hope policymakers can stop the endless, partisan debates and focus on supporting initiatives that can raise the standard of living for millions of people in an environmentally friendly way.

For more information on the Global Warming Controversy, please Refer to the Following articles:

The Insiders: Global warming might be real, but the Democrats' solutions are not, The Washington Post, Ed Rogers, March 6 th , 2015 http://www.washingtonpost.com/blogs/post-partisan/wp/2015/03/06/the-insiders-global-warming-might-be-real-but-the-democrats-solutions-are-not/ 

Global Warming Controversy http://en.wikipedia.org/wiki/Global_warming_controversy

How Global Warming Works, Jonathan Strickland and Ed Grabianowski http://science.howstuffworks.com/environmental/green-science/global-warming7.htm 

For more information about the Global Business Corvinus blogger, go to https://www.linkedin.com/in/kevinmjackson1 

Blog 29

 

 

Planes, Trains, and Automobiles (Part III)

2015. március 03. - Kevin Jackson

The future of the automobile will be like a soap opera that is full of twists and turns. Many experts believe that in 20 years, electric cars will replace traditional, gas-powered cars and dominate the roads. Others say that the electric cars will not be able to compete with next generation combustion engines either in efficiency or price. While opinions will always vary, there is little doubt that the car industry will fundamentally change in the future in one way or another.

Rumors of Apple’s electric cars hitting the road in five years are swirling around the world like a hurricane. There is no one credible who doubts that Apple, with its $750 billion market cap and $160 billion in cash, has the resources to totally disrupt the car industry. Despite all of the chatter, however, the U.S. Energy Information Administration is still forecasting that gas and diesel powered engines will account for 95% of the international car markets. Why? One of the principle reasons is that governments around the world are mandating that cars become a lot more efficient. For example, the U.S. government is requiring cars to average 23 kilometers per liter by 2025. The upside for combustion engines is surprisingly high given that just 18% of the energy produced by gas is actually used to power a vehicle (the rest is lost). Car manufacturers are optimistic, therefore, that engines powered by fossil fuels can easily boost the number of kilometers per liter by 35-40% during the next few decades.

While it is clear that electric cars are improving, the real question is “Are they improving fast enough?” GM and Tesla have made plans to launch new electric vehicles in 2017 or 2018 that will cost about $30,000 (after government subsidies) and be capable of driving 320 kilometers without recharging. Still, a buyer needs to calculate how many years of fuel savings will it take to offset the higher price of electric cars. Another argument against electric cars is that they actually consume energy that was created by the burning of fossil fuels. Since a low percentage of energy is created using renewables, the whole “green” image for electric cars falls apart. It is estimated that fossil fuels generate 65% of the U.S. electricity today and will generate 64% in 2040. Not exactly the green future many are hoping for.

After riding in a Tesla and feeling its incredibly smooth acceleration, I am certainly a fan. Being a fan and becoming a customer, however, are two different things. The burden of proof for electric cars is quite high and they do face some stiff competition from traditional gas and diesel powered vehicles. Rising oil production and falling gas prices make the challenge even tougher. Still, it is never wise to underestimate the ability of technology to solve tough challenges. A breakthrough in battery life alone could put a huge dent in future of both car and oil industries. Perhaps this is what Apple has its eye on and in five years maybe we will all be driving giant iPhones.

For more information on the Future of Cars, please refer to the following articles:

The Car of the Future May Run on Gasoline, WSJ, Steve Levine, January 30th, 2015

(http://www.wsj.com/articles/the-car-of-the-future-may-run-on-gas-1422646049)

Electric car benefits? Just myths: Column, USA Today, Bjorn Lomborg, February 2nd, 2015, ( http://www.usatoday.com/story/opinion/2015/02/18/electric-car-benefits-air-myths-pollution-health-column/23641729/)

MacRumors.com, Apple’s Electric Vehicle Project (http://www.macrumors.com/roundup/apple-car/)

For more information about the Corvinus Global Business blogger, go to https://www.linkedin.com/in/kevinmjackson1.

Blog 28

Planes, Trains, and Automobiles (Part II)

2015. február 27. - Kevin Jackson

Urbanization is happening at a pace that has never been seen before in history. Experts predict that by 2050 the majority, approximately 75% of the world’s population will live in cities. In the future, we can also expect to see a dramatic rise in the number of megacities, which are formed when two or more cities merge together. For example, the Hong Kong-Shenhzen-Guangzhou area in China is now home to more than 120 million people. So, what does this all mean? For starters, it means that city transportation systems will need to get a whole lot better to accommodate the needs of millions of people living in concentrated areas.

In a megacity, it is simply not possible for everyone to drive their own vehicles to and from work. The only way to truly solve the megacity transportation challenge is by creating a highly efficient, fast, and affordable train network. Achieving this goal, however, is no easy task. In order to move more people within a given time frame, trains need to go faster. Greater speeds, however, require more rapid acceleration and deceleration and this can make a lot of people sick. As trains accelerate, it also takes increasing amounts of power to push air out of the away. Finally, while many train manufacturers have designed trains that can tilt going into curves, they have found very little demand for this line of innovation amongst governments and private enterprises due to their hefty price tag.

Elon Musk’s interests are not limited to the electric car company, Tesla, or his spaceflight company, Space X. In 2013, Musk also unveiled his plans for the creation of the Hyperloop that utilizes “reduced-pressure tubes in which pressurized capsules ride on a cushion of air that is driven by a combination of linear induction motors and air compressors.” Essentially, the hyperloop is a cross between a train and a plane that can potentially reduce the travel time between Los Angeles and San Francisco to just 35 minutes. This means that the hyperloop would be travelling at an incredible 1,223 kilometers per hour. Only a month ago, Musk tweeted that they are now building a test track in Texas. While they are many skeptics, it is never wise to underestimate the resources and vision of Elon Musk.

Urbanization and the growth of megacities is a force that cannot be stopped. If handled properly, then the average standard of living can be raised. If handled poorly, then the standard of living for millions of people can plummet thereby creating large slum areas and dangerous unrest. I think it is clear that trains on rails have serious limitations and involve enormous costs to install and maintain. The future of travel will involve the adoption of new technologies that could ultimately not just connect areas of megacities, but connect megacities around the world to each other. Who knows, maybe the hyperloop will shoot us to the moon and back.

For more information on the Future of Trains, please refer to the following articles: 

The New Cold War Is Over Europe’s Energy Future, Business Insider, Bradley Klapper and Matthew Lee, February 3rd, 2015 (http://www.businessinsider.com/the-new-cold-war-is-over-europes-energy-future-2015-2#ixzz3R91UushR

Russia's gas fight with Ukraine, BBC News, Paul Kirby, October 31st, 2014 (http://www.bbc.com/news/world-europe-29521564)

How Much Europe Depends on Russian Energy, New York Times, September 2nd, 2015 (http://www.nytimes.com/interactive/2014/03/21/world/europe/how-much-europe-depends-on-russian-energy.html?_r=2c)

For more information about the Corvinus Global Business blogger, go to https://www.linkedin.com/in/kevinmjackson1.

Blog 27

Planes, Trains, and Automobiles (Part I)

2015. február 23. - Kevin Jackson

The first time I was on an airplane was in 1982 and the experience of flying has not changed much since then. While long haul flights now offer in-flight entertainment systems, security is certainly slower and I do not seem to get my bags any quicker. In the future, however, we can expect to see innovations that will significantly improve our travel experiences.

The travel site, Skyscanner, asked 56 experts and futurologists about current and emerging trends for the industry. One of their predictions is that airline passengers will be able to do 3D Skype conversations using holograms, and each seat will come equipped with “sonic disruptors” that will prevent others from hearing your conversation. Another prediction is that seats will have the ability to adapt to a person’s particular size and shape using memory-style foam and offer built in climate control. Finally, experts see the planes of the future being divided into zones with areas for hanging out or playing games, spaces designated for eating rather than using the annoying flop down tray, and others designed specifically for sleeping.  Sounds more like a train than a plane. I’m in. 

Now that we have established that our in-flight experiences will be getting a whole lot better, what about improvements at airports? Patrick Yeung, CEO of Dragonair, believes that “By 2025, automated self-service technologies, operated by a smartphone, will let a traveler drop off his bag at McDonald’s, or check-in as he buys a cup of coffee at Starbucks.” British Airways and Microsoft are already working together on a personalized, smartphone activated, digital bag tags that will eliminate the need for paper tags, tickets, and boarding cards altogether. The good news is that we might not have to wait until 2025, as the Incheon Airport in South Korea already offers a three minute self check-in with eight major airlines. The ultimate goal is to create a totally automated airport where the passengers take total control of their journeys, while a multilingual staff is available for those with special needs.

Many of us have read books and watched movies about what the future will be like and more often than not these predictions are far more accurate. In the next twenty years, however, I strongly believe that the airline industry will undergo fundamental changes likes the ones witnessed 100 years ago when the airline industry first began. These changes in travel, however, will not just be limited to just flying as I will explore in the next two parts of this series. Technology is disrupting entire industries and this is good news for all of us who like to travel or at least have to for work.

For more information on the future of travel, please refer to the following articles:

Future of flight: What air travel will look like in 10 years, RELAXNEWS, July 2nd, 2014(http://www.canoe.ca/Travel/News/2014/07/01/21777906-relaxnews.html)

Games areas, panoramic windows and seats that harvest body heat to power the cabin: Airbus reveals what flying will be like in 2050 (fingers crossed!), SARAH GORDON, June 9th, 2014

(http://www.dailymail.co.uk/travel/article-2652950/Airbus-reveals-future-flight-panoramic-windows-games-rooms-planes.html#ixzz3SS9VKZl5)

The Future of Travel Part 2: Travel Journeys, Skyscanner Report, (http://www.skyscanner2024.com/part2.php)

 

For more information about the Corvinus Global Business blogger, go to https://www.linkedin.com/in/kevinmjackson1.

Blog 26

 

 

 

The Big Shame

2015. február 17. - Kevin Jackson

Economic progress has provided us with conveniences and luxuries that previous generations only dreamed about. At the same time, this progress has created some serious and harmful side effects that will be inherited by future generations. One of the dirtiest secrets of our planet is the “Great Pacific Garbage Patch” that is estimated to be anywhere from 700,000 square kilometers (size of Texas) to more than square 15,000,000 kilometers in size (8.1% of the entire Pacific Ocean).

An ocean gyre is a system of connected, rotating ocean currents that are formed by global wind patterns and the Earth’s rotational force. The North Pacific Gyre is one of five major ocean gyres on our planet and stretches all the way from Japan to the California coastline (20 million square kilometers). The area in the middle of these circling currents is quite calm making it the perfect place for enormous amounts of manmade trash to become trapped. Roughly 80% of the trash collected in the Great Pacific Garbage Patch comes from the shores of North America and Asia, while the other 20% comes from boats. It takes about six years for a piece of trash to find its way to the world’s biggest garbage dump from North America, while from Asia it only takes one.

Most of the debris comes from plastic bags, bottle caps, plastic water bottles, and Styrofoam cups. The dangerous part is that plastic does not biodegrade, but rather photo degrades. Sunlight breaks it down into tiny pieces that either collect near the surface or pile up on the ocean floor. These tiny pieces of plastic are tragically ingested by marine animals and responsible for killing millions of them each year. A study of the predatory fishes in the North Pacific Gyre found that 19% of them contained plastic. It is ironic that these are the same species commonly eaten by people, who later ingest plastic that was originally tossed into the ocean as garbage. 

Since the Great Pacific Garbage Patch is far from the borders of any one nation, no one is willing to take the responsibility to clean it up. So what is the answer? Just last summer, a 19 year old Dutchman, Boyan Slat, came up with a cost effective way to clean up the mess created by so many others (http://tinyurl.com/obunkzk). The concept involves using ocean currents to transport plastic into a collection platform. Solid floating barriers are then used to corral the trash and avoid entangling any sea life. It is estimated that the patch can be cleaned up in 10 years using Slat's method. While we should all be grateful that there is a viable solution to clean up mankind's disgusting mess, hard measures need to be made regarding all of the trash that gets dumped into the ocean on a daily basis. It is truly a big shame the way we treat our own planet. 

 

For more information on the Great Pacific Garbage Patch, please refer to the following articles:

Oceans fill with plastic—and it's hard to remove, CNBC, Roberto Ferris, February 12th, 2015 (http://www.cnbc.com/id/102416552)

Great Pacific Garbage Patch, National Geographic,

(http://education.nationalgeographic.com/education/encyclopedia/great-pacific-garbage-patch/?ar_a=1)

 Could we clean up the Great Pacific Garbage Patch?, How Stuff Works, Julia Layton,(http://science.howstuffworks.com/environmental/green-science/clean-up-garbage-patch2.htm)

North Pacific Gyre, Wikipedia,http://en.wikipedia.org/wiki/North_Pacific_Gyre

 

For more information about the Corvinus Global Business blogger, go to https://www.linkedin.com/in/kevinmjackson1.

Blog 25

 

Mobile Africa

2015. február 15. - Kevin Jackson

The impact of the mobile phone on Africa has been nothing sort of extraordinary. Over the past 15 years, the number of mobile connections has grown by 44% per year and today there are more subscribers in Africa than in Europe and the U.S. combined. Now contrast this picture with the one described by South African journalist, Tony Shapshak: “There was a statistic bandied about in the 1990s that Manhattan had more phone lines than the 55 countries in Africa.” While Africa has come a long way since the 1990s, it has only really just begun to tap into its true potential.

One of the best examples of African innovation is M-Pesa, a SMS based mobile payment system. Users can charge up their account with real money at stores or with M-Pesa agents and then use this credit to pay for almost anything by sending a simple SMS. The cost to use this service is just one SMS. This service has filled a huge gap where, according to McKinsey and Company, 80% of Africa’s adult population does not use formal or semi-informal financial services. Today, more than 50% of Kenya’s GDP moves through M-Pesa used by more than 68% of Kenya’s adult population. This is textbook industry disruption.

The lack of Internet access in rural areas has also spurred some interesting innovations that are beginning to close the gap. BRCK is a Kenyan based company that sells portable units that can supply 3G and 4G Wifi connections for whole rural communities. These units sell for just $250 and have a battery life of about 8 hours. And let’s not forget the battle that is shaping up between Google’s Loon and Facebook’s Titan for the delivery of Internet access to the most remote parts of Africa. The Google Loon project involves the use of weather balloons that float around and transmit Internet access to receivers on the ground. The Facebook Titan is a huge, solar powered drone that performs a similar function. In any case, Internet access for all Africans will soon become a reality and will add even more fuel to the mobile revolution.

Rapidly growing mobile subscriptions, rising Internet access, and adoption of mobile payments are all transforming Africa and having a direct impact on its future GDP growth. Today, Africa’s iGDP (Internet impacted GDP) is only 1.1%, but McKinsey estimates that by 2025 this number can easily jump to at least 5%-6% (similar to Sweden and the U.K.). The mobile revolution in Africa is now empowering people to innovate, create, and become entrepreneurs. This is the best news of all as Africans themselves become optimistic about their own future.

For more information on how Africa is turning mobile, please refer to the following articles:

Lions go digital: The Internet’s transformative potential in Africa, byJames Manyika, Armando Cabral, Lohini Moodley, Suraj Moraje, Safroadu Yeboah-Amankwah, Michael Chui, and Jerry Anthonyrajah, November 2013  (http://tinyurl.com/q5uatjv)  

AFRICA BUSINESS-Browse, click, pay: African retail finds growing outlet online, By Elias Biryabarema and Matthew Mpoke Bigg, February 13th, 2015 (http://www.reuters.com/article/2015/02/13/africa-retail-internet-idUSL4N0VD02520150213)

Africa in 2030: A future of smartphones, drones and digital witchdoctors, By CHRISTINE MUNGAI, January 19th, 2015

(http://mgafrica.com/article/2015-01-19-africas-tech-future-smartphones-drones-and-your-local-e-sangoma)

Mobile First: Why Mobile Phones Are Transforming Lives In Africa, By Adrian Leighton, October 29th, 2014 (http://www.oafrica.com/mobile/mobile-first-why-mobile-phones-are-transforming-lives-in-africa/)  

 

For more information about the Corvinus Global Business blogger, go to https://www.linkedin.com/in/kevinmjackson1.

Blog 24

 

 

 

 

 

The Cold War Turns Hot

2015. február 09. - Kevin Jackson

The Cold War derives its name from the fact that there was no large scale fighting between the U.S. and the Soviet Union. What actually happened was an exercise in game theory, where both nations were forced to recognize that advantage could not be gained through the use of nuclear weapons. This is famously referred to as Mutually Assured Destruction (MAD). Today, we have an entirely different situation unfolding, where the electricity and heating needs of tens of millions of Europeans hang in the balance. Pipelines, ports, and refineries have now replaced the old game pieces of troops, tanks, and missiles, and it is abundantly clear that the Hot War cannot be resolved by game theory alone.

According to the BBC, 23% of the EU’s natural gas comes from Russia. This overall figure is a bit misleading as nations like Hungary (24% of total energy use), Slovakia (22%), Lithuania (36%), and Latvia (27%) are far more dependent on Russian gas than nations like Spain, France, or the U.K. Another key fact is that 70% of the gas supplied to the EU uses pipelines running through Ukraine. Given Russia’s takeover of Crimea and their ongoing, bloody battle with Ukraine, it has provided extra motivation for Europe to find ways to reduce their dependence on Russian energy sooner rather than later. 

Given the crisis in Ukraine, the EU and the U.S. are working together to help Eastern European nations become more energy independent by providing capital, technology (fracking), and political support. A U.S. official recently commented that they would like to see a “20 percent slice cut out of Russia's current share of the Eastern European gas market by 2020.” On the other side, Russia is making its own moves. An $11.3 billion deal with Hungary for the building of two new nuclear reactors is certainly one of their recent wins, as the friendship between Putin and Orban appears to be quite cosy. Russia has also vowed to increase energy supplies to Turkey after EU opposition defeated his pipeline proposal. Despite these moves, Russia is still dealing with falling oil prices and the ruble that has plunged more than 50% versus the U.S. dollar. 

We are now living in a world where the supply of energy is outstripping demand. Fracking has unlocked an enormous amount of oil and natural gas in the U.S. and this technology is now being shared around the world. The ability to produce and distribute liquid natural gas (LNG) is one that can now be developed by nations all over the world. For countries like Russia that are very dependent on energy exports, this either delivers a wake up call or signals the downward spiral of defeat. Let’s just hope that the Hot War involves Russia developing its energy industry rather than invading another nation by force in a desperate effort to save itself. 

For more information on the Hot War, please refer to the following articles: 

The New Cold War Is Over Europe’s Energy Future, Business Insider, Bradley Klapper and Matthew Lee, February 3rd, 2015 (http://www.businessinsider.com/the-new-cold-war-is-over-europes-energy-future-2015-2#ixzz3R91UushR

Russia's gas fight with Ukraine, BBC News, Paul Kirby, October 31st, 2014 (http://www.bbc.com/news/world-europe-29521564)

How Much Europe Depends on Russian Energy, New York Times, September 2nd, 2015 (http://www.nytimes.com/interactive/2014/03/21/world/europe/how-much-europe-depends-on-russian-energy.html?_r=2c)

For more information about the Corvinus Global Business blogger, go to https://www.linkedin.com/in/kevinmjackson1.

Blog 23

Walls Down, Activity Up

2015. február 04. - Kevin Jackson

Back in 1960, the typical office layout was like a traditional schoolhouse where desks were lined up in a big open room all facing the same way. In an effort to modernize the workplace, Herman Miller launched an intensive study by bringing in all sorts of experts to discover the optimal office configuration. One of the key problems they found was that the open environment impeded communication and that workers required both privacy and interaction. Their solution to this problem was the invention of the cubicle that was designed to give employees the freedom to personalize their workspaces and have privacy when needed, while still being close to their colleagues.

The introduction of the cubicle made a huge impact on office design and they are still commonly used today. More than 50 years later, however, the wisdom of Herman Miller is being challenged as companies like Google and Facebook have created university campus like environments. One of the pioneers of this new movement is Clive Wilkinson, who designed Google’s Mountain View headquarters and also the Midtown Manhattan office of advertising firm, Gerson Lehrman Group (GLG). At GLG, all 250 employees are given office issued laptops and headsets and can choose to work at a wide variety of different workstations depending on their mood. All personal gear is stored in lockers and a coffee bar with a smiling barista is free for all to use and enjoy.

The departure from cubicles to an open, free flowing one is referred to as “activity based working” and is now popping up all over the world. Spencer Ogden is a recruitment firm in Singapore that looks more like a game room than a real business. Restaurant style booths sit at one side of the office while a ping-pong table, foosball table, and video games can be seen in the middle of their open workspace. While some may see forms of entertainment to be distractions, Spencer Ogden claims it is vital to recruiting and retaining top young talent and it has boosted their staff productivity by 30%.

It also needs to be noted that a big part of activity-based working is related to cloud computing and more capable laptops, where moving from one workspace to the next is now seamless. Another nice outcome is the breakdown of the traditional, hierarchical workplace where offices with a view surround a bullpen of cubicles. Still, I am not sure I am ready to work at a desk where a ping-pong ball can go bouncing across my desk at any given moment. While I am all for activity based workplaces, I think companies are still better off keeping their boardrooms and not changing them into game rooms.

 

For more information on Activity Based Working, please refer to the following articles:

Wikipedia: http://en.wikipedia.org/wiki/Cubicle

Cozy in Your Cubicle? An Office Design Alternative May Improve Efficiency, Bloomberg, Belinda Lanks, September 18, 2014, (http://www.bloomberg.com/bw/articles/2014-09-18/activity-based-working-office-design-for-better-efficiency)

Goodbye cubicles, hello foosball, CNBC, Ansuya Harjani, January 27th, 2015, (http://www.cnbc.com/id/102366998)

 

For more information about the Corvinus Global Business blogger, go to https://www.linkedin.com/in/kevinmjackson1.

Blog 22

 

 

The Space Race Is Back

2015. február 01. - Kevin Jackson

When NASA shut down its space shuttle program back in 2011, it closed a door but also opened a big window. This open window is now being accessed by private businesses that have the resources and capital to help NASA send a human to an asteroid by 2025 and to Mars sometime in the 2030s. The first step of this plan involves developing a more cost effective way to shuttle astronauts to and from the International Space Station (ISS), where the current cost is $70 million per seat aboard a Russian Soyuz spacecraft. So, if you want to hail a space taxi right now, you better have a fat wallet.

NASA just awarded a $2.6 billion contract to Space X and a $4.6 billion to Boeing for the development of a space taxi that charges less than $58 million for a ride to the ISS and back. This is significant not only because it involves private enterprise, but also that the U.S. no longer wants to rely on foreign space programs. This now calls into question what the future of the ISS will be given that it is now used and funded by five space agencies (U.S., Russia, Japan, European Space Agency (ESA), and Canada) governed by international treaties and agreements.

Due to the plunging ruble and tough economic times, Russia has been forced to delay its decision regarding the ISS. Comments have been made that Russia will either pursue the creation of a new Russian space station or will partner with China whose space station is expected to be operational around 2020. The ESA has also not decided whether they will continue to fund the ISS past 2020. While there is a lot of uncertainty regarding what the future of the ISS will be, there is little doubt that governments and private businesses from all over the world are teaming in a race to see who can achieve the next big breakthrough.  

On July 20, 1969, the world watched together as Neil Armstrong took his first step on the moon. A lot of time has passed since then and space travel for humans has been limited to moon landings and orbit rides. With the evolution of technology and the involvement of the private sector, I truly believe we will see the global space industry make fundamental leaps in the next 20 years. Competition will heat up once again between different space programs and many see India as a nation who has the resources and motivation to become a significant player. Who knows, perhaps one day I will be able to afford a space taxi.

For more information on Space Taxis, please refer to the following articles:

The Most Expensive Taxis In The World Set To Launch, Literally, Paul Dworin, January 27th, 2015 (http://clapway.com/2015/01/27/the-most-expensive-taxis-in-the-world-set-to-launch-literally123/)  

Europe's 'space taxi' prepares for lift-off - unmanned spacecraft opens new chapter for ESA, Olivia Solon, January 30th, 2015 (http://www.mirror.co.uk/news/technology-science/science/europes-space-taxi-prepares-lift-off-5073131)

Indian startups beginning to make their mark in space, Evelyn Fok and Malavika Murali, January 30th (http://tinyurl.com/njnaopq)  

NASA’s Journey to Mars: (http://www.nasa.gov/content/nasas-journey-to-mars/#.VMyHjkLLNo8)

 

For more information about the Corvinus Global Business blogger, go to https://www.linkedin.com/in/kevinmjackson1.

Blog 21

 

 

 

 

Uber and Out

2015. január 28. - Kevin Jackson

I can remember when Napster was launched back in June of 1999 as a peer-to-peer sharing service specializing in the exchange of MP3 music files. It was an instant hit and totally disrupted the music industry. At its peak, Napster had more than 80 million users before it was shut down by a court order. Still, the ease of downloading individual songs lived on and the age of album music was finished. Today, we are once again seeing entire industries being disrupted at a frightening pace.

Uber was founded in 2009 and has turned the global taxi industry upside down in less than five years. It is now present in 53 countries and more then 200 cities worldwide and worth an estimated $40 billion. By creating an app-based transportation network, Uber has transformed anyone with free time and a decent car into a taxi driver. Customers just have to install the Uber app and use it to request a driver. The process is simple and Uber’s rates are quite competitive with those of local taxi companies. If Uber is creating jobs and saving people money, then what’s not to like?

While Uber’s growth has been extraordinary, it has also left a serious wake as taxi companies and governments around the world claim that it is an illegal taxicab operation that embraces unfair business practices and dodges important safety issues. Just last year there was a protest led by 5,000 taxi drivers last year literally shutdown central London. As of December 2014, Uber was banned in Spain and two cities in India, and continues to be involved in disputes with several governmental bodies, including those of the U.S. and Australia. Finally, there was an alleged rape of a woman in India by an Uber driver last December. All in all, Uber has made just as many enemies as friends using the strategy of act now and ask for permission later.

Will Uber be like Napster and burn bright for a few more years before being taken down? I don’t think so. While there are safety issues that need to be solved and governmental regulations that need to be addressed, Uber has unlocked a lot of value. According to Uber co-founder, Travis Kalanick, "There are about 1 billion cars in the world today and I think that about 96% of them are under-utilized. We use about 15% of our space in cities just to park our cars, and we have to deal with problems like drink-driving. There's also a massive carbon footprint that we all have to deal with.” If Uber can learn to be respectful and not see the world as something to be greedily conquered, then it will succeed in totally disrupting an industry that has not changed since the first documented coach service in London back in 1605. 

For more information on Uber and its controversy, please refer to the following articles:

Uber founder aims to create 50,000 jobs in Europe, Jamie Dunkley, The Independent, January 19, 2015 (http://www.usatoday.com/story/tech/2015/01/19/uber-founder-new-jobs/21985951/)

Wikipedia: Uber (http://en.wikipedia.org/wiki/Uber_(company

Wikipedia: Napster (http://en.wikipedia.org/wiki/Napster 

Wikipedia: Taxicab (http://en.wikipedia.org/wiki/Taxicab)

 

For more information about the Corvinus Global Business blogger, go to https://www.linkedin.com/in/kevinmjackson1.

Blog 20

 

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