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#435145 How Big Companies Can Simultaneously Run ...

We live in the age of entrepreneurs. New startups seem to appear out of nowhere and challenge not only established companies, but entire industries. Where startup unicorns were once mythical creatures, they now seem abundant, not only increasing in numbers but also in the speed with which they can gain the minimum one-billion-dollar valuations to achieve this status.

But no matter how well things go for innovative startups, how many new success stories we hear, and how much space they take up in the media, the story that they are the best or only source of innovation isn’t entirely accurate.

Established organizations, or legacy organizations, can be incredibly innovative too. And while innovation is much more difficult in established organizations than in startups because they have much more complex systems—nobody is more likely to succeed in their innovation efforts than established organizations.

Unlike startups, established organizations have all the resources. They have money, customers, data, suppliers, partners, and infrastructure, which put them in a far better position to transform new ideas into concrete, value-creating, successful offerings than startups.

However, for established organizations, becoming an innovation champion in these times of rapid change requires new rules of engagement.

Many organizations commit the mistake of engaging in innovation as if it were a homogeneous thing that should be approached in the same way every time, regardless of its purpose. In my book, Transforming Legacy Organizations, I argue that innovation in established organizations must actually be divided into three different tracks: optimizing, augmenting, and mutating innovation.

All three are important, and to complicate matters further, organizations must execute all three types of innovation at the same time.

Optimizing Innovation
The first track is optimizing innovation. This type of innovation is the majority of what legacy organizations already do today. It is, metaphorically speaking, the extra blade on the razor. A razor manufacturer might launch a new razor that has not just three, but four blades, to ensure an even better, closer, and more comfortable shave. Then one or two years later, they say they are now launching a razor that has not only four, but five blades for an even better, closer, and more comfortable shave. That is optimizing innovation.

Adding extra blades on the razor is where the established player reigns.

No startup with so much as a modicum of sense would even try to beat the established company in this type of innovation. And this continuous optimization, both on the operational and customer facing sides, is important. In the short term. It pays the rent. But it’s far from enough. There are limits to how many blades a razor needs, and optimizing innovation only improves upon the past.

Augmenting Innovation
Established players must also go beyond optimization and prepare for the future through augmenting innovation.

The digital transformation projects that many organizations are initiating can be characterized as augmenting innovation. In the first instance, it is about upgrading core offerings and processes from analog to digital. Or, if you’re born digital, you’ve probably had to augment the core to become mobile-first. Perhaps you have even entered the next augmentation phase, which involves implementing artificial intelligence. Becoming AI-first, like the Amazons, Microsofts, Baidus, and Googles of the world, requires great technological advancements. And it’s difficult. But technology may, in fact, be a minor part of the task.

The biggest challenge for augmenting innovation is probably culture.

Only legacy organizations that manage to transform their cultures from status quo cultures—cultures with a preference for things as they are—into cultures full of incremental innovators can thrive in constant change.

To create a strong innovation culture, an organization needs to thoroughly understand its immune systems. These are the mechanisms that protect the organization and operate around the clock to keep it healthy and stable, just as the body’s immune system operates to keep the body healthy and stable. But in a rapidly changing world, many of these defense mechanisms are no longer appropriate and risk weakening organizations’ innovation power.

When talking about organizational immune systems, there is a clear tendency to simply point to the individual immune system, people’s unwillingness to change.

But this is too simplistic.

Of course, there is human resistance to change, but the organizational immune system, consisting of a company’s key performance indicators (KPIs), rewards systems, legacy IT infrastructure and processes, and investor and shareholder demands, is far more important. So is the organization’s societal immune system, such as legislative barriers, legacy customers and providers, and economic climate.

Luckily, there are many culture hacks that organizations can apply to strengthen their innovation cultures by upgrading their physical and digital workspaces, transforming their top-down work processes into decentralized, agile ones, and empowering their employees.

Mutating Innovation
Upgrading your core and preparing for the future by augmenting innovation is crucial if you want success in the medium term. But to win in the long run and be as or more successful 20 to 30 years from now, you need to invent the future, and challenge your core, through mutating innovation.

This requires involving radical innovators who have a bold focus on experimenting with that which is not currently understood and for which a business case cannot be prepared.

Here you must also physically move away from the core organization when you initiate and run such initiatives. This is sometimes called “innovation on the edges” because the initiatives will not have a chance at succeeding within the core. It will be too noisy as they challenge what currently exists—precisely what the majority of the organization’s employees are working to optimize or augment.

Forward-looking organizations experiment to mutate their core through “X divisions,” sometimes called skunk works or innovation labs.

Lowe’s Innovation Labs, for instance, worked with startups to build in-store robot assistants and zero-gravity 3D printers to explore the future. Mutating innovation might include pursuing partnerships across all imaginable domains or establishing brand new companies, rather than traditional business units, as we see automakers such as Toyota now doing to build software for autonomous vehicles. Companies might also engage in radical open innovation by sponsoring others’ ingenuity. Japan’s top airline ANA is exploring a future of travel that does not involve flying people from point A to point B via the ANA Avatar XPRIZE competition.

Increasing technological opportunities challenge the core of any organization but also create unprecedented potential. No matter what product, service, or experience you create, you can’t rest on your laurels. You have to bring yourself to a position where you have a clear strategy for optimizing, augmenting, and mutating your core and thus transforming your organization.

It’s not an easy job. But, hey, if it were easy, everyone would be doing it. Those who make it, on the other hand, will be the innovation champions of the future.

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#435140 This Week’s Awesome Stories From ...

GENETICS
Gene Therapy Might Have Its First Blockbuster
Antonio Regalado | MIT Technology Review
“…drug giant Novartis expects to win approval to launch what it says will be the first ‘blockbuster’ gene-replacement treatment. A blockbuster is any drug with more than $1 billion in sales each year. The treatment, called Zolgensma, is able to save infants born with spinal muscular atrophy (SMA) type 1, a degenerative disease that usually kills within two years.”

ARTIFICIAL INTELLIGENCE
AI Took a Test to Detect Lung Cancer. It Got an A.
Denise Grady | The New York Times
“Computers were as good or better than doctors at detecting tiny lung cancers on CT scans, in a study by researchers from Google and several medical centers. The technology is a work in progress, not ready for widespread use, but the new report, published Monday in the journal Nature Medicine, offers a glimpse of the future of artificial intelligence in medicine.”

ROBOTICS
The Rise and Reign of Starship, the World’s First Robotic Delivery Provider
Luke Dormehl | Digital Trends
“[Starship’s] delivery robots have travelled a combined 200,000 miles, carried out 50,000 deliveries, and been tested in over 100 cities in 20 countries. It is a regular fixture not just in multiple neighborhoods but also university campuses.”

SPACE
Elon Musk Just Ignited the Race to Build the Space Internet
Jonathan O’Callaghan | Wired
“It’s estimated that about 3.3 billion people lack access to the internet, but Elon Musk is trying to change that. On Thursday, May 23—after two cancelled launches the week before—SpaceX launched 60 Starlink satellites on a Falcon 9 rocket from Cape Canaveral, in Florida, as part of the firm’s mission to bring low-cost, high-speed internet to the world.”

VIRTUAL REALITY
The iPod of VR Is Here, and You Should Try It
Mark Wilson | Fast Company
“In nearly 15 years of writing about cutting-edge technology, I’ve never seen a single product line get so much better so fast. With [the Oculus] Quest, there are no PCs required. There are no wires to run. All you do is grab the cloth headset and pull it around your head.”

FUTURE OF FOOD
Impossible Foods’ Rising Empire of Almost Meat
Chris Ip | Engadget
“Impossible says it wants to ultimately create a parallel universe of ersatz animal products from steak to eggs. …Yet as Impossible ventures deeper into the culinary uncanny valley, it also needs society to discard a fundamental cultural idea that dates back millennia and accept a new truth: Meat doesn’t have to come from animals.”

LONGEVITY
Can We Live Longer but Stay Younger?
Adam Gopnik | The New Yorker
“With greater longevity, the quest to avoid the infirmities of aging is more urgent than ever.”

PRIVACY
Facial Recognition Has Already Reached Its Breaking Point
Lily Hay Newman | Wired
“As facial recognition technologies have evolved from fledgling projects into powerful software platforms, researchers and civil liberties advocates have been issuing warnings about the potential for privacy erosions. Those mounting fears came to a head Wednesday in Congress.”

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#435127 Teaching AI the Concept of ‘Similar, ...

As a human you instinctively know that a leopard is closer to a cat than a motorbike, but the way we train most AI makes them oblivious to these kinds of relations. Building the concept of similarity into our algorithms could make them far more capable, writes the author of a new paper in Science Robotics.

Convolutional neural networks have revolutionized the field of computer vision to the point that machines are now outperforming humans on some of the most challenging visual tasks. But the way we train them to analyze images is very different from the way humans learn, says Atsuto Maki, an associate professor at KTH Royal Institute of Technology.

“Imagine that you are two years old and being quizzed on what you see in a photo of a leopard,” he writes. “You might answer ‘a cat’ and your parents might say, ‘yeah, not quite but similar’.”

In contrast, the way we train neural networks rarely gives that kind of partial credit. They are typically trained to have very high confidence in the correct label and consider all incorrect labels, whether ”cat” or “motorbike,” equally wrong. That’s a mistake, says Maki, because ignoring the fact that something can be “less wrong” means you’re not exploiting all of the information in the training data.

Even when models are trained this way, there will be small differences in the probabilities assigned to incorrect labels that can tell you a lot about how well the model can generalize what it has learned to unseen data.

If you show a model a picture of a leopard and it gives “cat” a probability of five percent and “motorbike” one percent, that suggests it picked up on the fact that a cat is closer to a leopard than a motorbike. In contrast, if the figures are the other way around it means the model hasn’t learned the broad features that make cats and leopards similar, something that could potentially be helpful when analyzing new data.

If we could boost this ability to identify similarities between classes we should be able to create more flexible models better able to generalize, says Maki. And recent research has demonstrated how variations of an approach called regularization might help us achieve that goal.

Neural networks are prone to a problem called “overfitting,” which refers to a tendency to pay too much attention to tiny details and noise specific to their training set. When that happens, models will perform excellently on their training data but poorly when applied to unseen test data without these particular quirks.

Regularization is used to circumvent this problem, typically by reducing the network’s capacity to learn all this unnecessary information and therefore boost its ability to generalize to new data. Techniques are varied, but generally involve modifying the network’s structure or the strength of the weights between artificial neurons.

More recently, though, researchers have suggested new regularization approaches that work by encouraging a broader spread of probabilities across all classes. This essentially helps them capture more of the class similarities, says Maki, and therefore boosts their ability to generalize.

One such approach was devised in 2017 by Google Brain researchers, led by deep learning pioneer Geoffrey Hinton. They introduced a penalty to their training process that directly punished overconfident predictions in the model’s outputs, and a technique called label smoothing that prevents the largest probability becoming much larger than all others. This meant the probabilities were lower for correct labels and higher for incorrect ones, which was found to boost performance of models on varied tasks from image classification to speech recognition.

Another came from Maki himself in 2017 and achieves the same goal, but by suppressing high values in the model’s feature vector—the mathematical construct that describes all of an object’s important characteristics. This has a knock-on effect on the spread of output probabilities and also helped boost performance on various image classification tasks.

While it’s still early days for the approach, the fact that humans are able to exploit these kinds of similarities to learn more efficiently suggests that models that incorporate them hold promise. Maki points out that it could be particularly useful in applications such as robotic grasping, where distinguishing various similar objects is important.

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#435119 Are These Robots Better Than You at ...

Robot technology is evolving at breakneck speed. SoftBank’s Pepper is found in companies across the globe and is rapidly improving its conversation skills. Telepresence robots open up new opportunities for remote working, while Boston Dynamics’ Handle robot could soon (literally) take a load off human colleagues in warehouses.

But warehouses and offices aren’t the only places where robots are lining up next to humans.

Toyota’s Cue 3 robot recently showed off its basketball skills, putting up better numbers than the NBA’s most accurate three-point shooter, the Golden State Warriors’ Steph Curry.

Cue 3 is still some way from being ready to take on Curry, or even amateur basketball players, in a real game. However, it is the latest member of a growing cast of robots challenging human dominance in sports.

As these robots continue to develop, they not only exemplify the speed of exponential technology development, but also how those technologies are improving human capabilities.

Meet the Contestants
The list of robots in sports is surprisingly long and diverse. There are robot skiers, tumblers, soccer players, sumos, and even robot game jockeys. Introductions to a few of them are in order.

Robot: Forpheus
Sport: Table tennis
Intro: Looks like something out of War of the Worlds equipped with a ping pong bat instead of a death ray.
Ability level: Capable of counteracting spin shots and good enough to beat many beginners.

Robot: Sumo bot
Sport: Sumo wrestling
Intro: Hyper-fast, hyper-aggressive. Think robot equivalent to an angry wasp on six cans of Red Bull crossed with a very small tank.
Ability level: Flies around the ring way faster than any human sumo. Tend to drive straight out of the ring at times.

Robot: Cue 3
Sport: Basketball
Intro: Stands at an imposing 6 foot and 10 inches, so pretty much built for the NBA. Looks a bit like something that belongs in a video game.
Ability level: A 62.5 percent three-pointer percentage, which is better than Steph Curry’s; is less mobile than Charles Barkley – in his current form.

Robot: Robo Cup Robots
Intro: The future of soccer. If everything goes to plan, a team of robots will take on the Lionel Messis and Cristiano Ronaldos of 2050 and beat them in a full 11 vs. 11 game.
Ability level: Currently plays soccer more like the six-year-olds I used to coach than Lionel Messi.

The Limiting Factor
The skill level of all the robots above is impressive, and they are doing things that no human contestant can. The sumo bots’ inhuman speed is self-evident. Forpheus’ ability to track the ball with two cameras while simultaneously tracking its opponent with two other cameras requires a look at the spec sheet, but is similarly beyond human capability. While Cue 3 can’t move, it makes shots from the mid-court logo look easy.

Robots are performing at a level that was confined to the realm of science fiction at the start of the millennium. The speed of development indicates that in the near future, my national team soccer coach would likely call up a robot instead of me (he must have lost my number since he hasn’t done so yet. It’s the only logical explanation), and he’d be right to do so.

It is also worth considering that many current sports robots have a humanoid form, which limits their ability. If engineers were to optimize robot design to outperform humans in specific categories, many world champions would likely already be metallic.

Swimming is perhaps one of the most obvious. Even Michael Phelps would struggle to keep up with a torpedo-shaped robot, and if you beefed up a sumo robot to human size, human sumos might impress you by running away from them with a 100-meter speed close to Usain Bolt’s.

In other areas, the playing field for humans and robots is rapidly leveling. One likely candidate for the first head-to-head competitions is racing, where self-driving cars from the Roborace League could perhaps soon be ready to race the likes of Lewis Hamilton.

Tech Pushing Humans
Perhaps one of the biggest reasons why it may still take some time for robots to surpass us is that they, along with other exponential technologies, are already making us better at sports.

In Japan, elite volleyball players use a robot to practice their attacks. Some American football players also practice against robot opponents and hone their skills using VR.

On the sidelines, AI is being used to analyze and improve athletes’ performance, and we may soon see the first AI coaches, not to mention referees.

We may even compete in games dreamt up by our electronic cousins. SpeedGate, a new game created by an AI by studying 400 different sports, is a prime example of that quickly becoming a possibility.

However, we will likely still need to make the final call on what constitutes a good game. The AI that created SpeedGate reportedly also suggested less suitable pastimes, like underwater parkour and a game that featured exploding frisbees. Both of these could be fun…but only if you’re as sturdy as a robot.

Image Credit: RoboCup Standard Platform League 2018, ©The Robocup Federation. Published with permission of reproduction granted by the RoboCup Federation. Continue reading

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#435106 Could Artificial Photosynthesis Help ...

Plants are the planet’s lungs, but they’re struggling to keep up due to rising CO2 emissions and deforestation. Engineers are giving them a helping hand, though, by augmenting their capacity with new technology and creating artificial substitutes to help them clean up our atmosphere.

Imperial College London, one of the UK’s top engineering schools, recently announced that it was teaming up with startup Arborea to build the company’s first outdoor pilot of its BioSolar Leaf cultivation system at the university’s White City campus in West London.

Arborea is developing large solar panel-like structures that house microscopic plants and can be installed on buildings or open land. The plants absorb light and carbon dioxide as they photosynthesize, removing greenhouse gases from the air and producing organic material, which can be processed to extract valuable food additives like omega-3 fatty acids.

The idea of growing algae to produce useful materials isn’t new, but Arborea’s pitch seems to be flexibility and affordability. The more conventional approach is to grow algae in open ponds, which are less efficient and open to contamination, or in photo-bioreactors, which typically require CO2 to be piped in rather than getting it from the air and can be expensive to run.

There’s little detail on how the technology deals with issues like nutrient supply and harvesting or how efficient it is. The company claims it can remove carbon dioxide as fast as 100 trees using the surface area of just a single tree, but there’s no published research to back that up, and it’s hard to compare the surface area of flat panels to that of a complex object like a tree. If you flattened out every inch of a tree’s surface it would cover a surprisingly large area.

Nonetheless, the ability to install these panels directly on buildings could present a promising way to soak up the huge amount of CO2 produced in our cities by transport and industry. And Arborea isn’t the only one trying to give plants a helping hand.

For decades researchers have been working on ways to use light-activated catalysts to split water into oxygen and hydrogen fuel, and more recently there have been efforts to fuse this with additional processes to combine the hydrogen with carbon from CO2 to produce all kinds of useful products.

Most notably, in 2016 Harvard researchers showed that water-splitting catalysts could be augmented with bacteria that combines the resulting hydrogen with CO2 to create oxygen and biomass, fuel, or other useful products. The approach was more efficient than plants at turning CO2 to fuel and was built using cheap materials, but turning it into a commercially viable technology will take time.

Not everyone is looking to mimic or borrow from biology in their efforts to suck CO2 out of the atmosphere. There’s been a recent glut of investment in startups working on direct-air capture (DAC) technology, which had previously been written off for using too much power and space to be practical. The looming climate change crisis appears to be rewriting some of those assumptions, though.

Most approaches aim to use the concentrated CO2 to produce synthetic fuels or other useful products, creating a revenue stream that could help improve their commercial viability. But we look increasingly likely to surpass the safe greenhouse gas limits, so attention is instead turning to carbon-negative technologies.

That means capturing CO2 from the air and then putting it into long-term storage. One way could be to grow lots of biomass and then bury it, mimicking the process that created fossil fuels in the first place. Or DAC plants could pump the CO2 they produce into deep underground wells.

But the former would take up unreasonably large amounts of land to make a significant dent in emissions, while the latter would require huge amounts of already scant and expensive renewable power. According to a recent analysis, artificial photosynthesis could sidestep these issues because it’s up to five times more efficient than its natural counterpart and could be cheaper than DAC.

Whether the technology will develop quickly enough for it to be deployed at scale and in time to mitigate the worst effects of climate change remains to be seen. Emissions reductions certainly present a more sure-fire way to deal with the problem, but nonetheless, cyborg plants could soon be a common sight in our cities.

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