Case Study #1 - Zappos

• Zappos is an Amazon owned online shoe and clothing retailer based in Las Vegas, Nevada. In 2013, they sent waves through the business community by announcing their adoption of ‘holacracy’ as a governance structure.

• Holacracy is a method of decentralized management and organizational governance, where authority and decision-making are distributed throughout a series of self-organizing teams rather than being vested at the top of a hierarchy. The system replaces traditional management with a peer-to-peer "operating system.”

• According to accounts, those in creative departments of the business like IT and development, did not embrace the move, while those in more rigid groups like finance and accounting were quick to adjust.

• Over the last few years, Zappos has slowly reverted to a more hierarchal structure, moving away from holacracy. They are now profitable with stronger and more reliable cash flows.

• Why was holacracy unsuccessful over the long term? We believe, in this case, issues with scalability and employee uncertainty regarding their tasks/goals were the primary reasons. A highly sales and customer oriented business needs to have a certain level of structure to be successful.

• With that being said, their story is far from over, and there are several other variables affecting business performance. Feel free to email us at [email protected] if you have any insights you’d like to share!

TL;DR

• Liverpool’s Collaboration with DeepMind

• Dude Perfect get a $100 Million Backing

• How Toyota is doubling down on Innovation

• and more…

TECHNOLOGY

Deepmind x Liverpool FC

A new collaboration between DeepMind and Liverpool FC is set to revolutionize the world of football tactics. The partnership has resulted in the development of TacticAI, an artificial intelligence (AI) model designed to provide data-driven insights for optimizing corner kicks.

TacticAI leverages a vast dataset of historical matches to analyse player positioning, team formations, and even the physics of the ball itself. This comprehensive analysis allows the AI to predict the most likely recipient of the corner kick.

Significantly, blind tests conducted with Liverpool FC experts revealed a remarkable preference for AI-generated tactics. In a staggering 90% of cases, the experts favoured the AI's suggestions over those devised by humans.

AI as an assistant for Football Tactics

This collaboration marks a significant stride towards the integration of AI within the realm of professional sports. The success of TacticAI paves the way for a future where data-driven insights play an increasingly prominent role in the beautiful game.

What Exactly is Quantum Computing?

Headlines scream about super-powered quantum computers solving problems in seconds. But what exactly are these mysterious machines, and how do they work their magic? Unlike our everyday computers that use bits, quantum computers wield qubits, existing in multiple states at once.

Regular computers use bits, like tiny switches that are either on (1) or off (0). This works well for most tasks, but for some incredibly complex problems, it's like trying to solve a maze with only two directions.

Qubits are like superpowered bits. They can be a 0, a 1, or a mix of both at the same time, thanks to something called superposition. It's like spinning a coin so fast it's a blur – it's both heads and tails until you stop it and look.

But there's another trick up their sleeve: entanglement. Imagine two coins, linked in a special way that if one flips heads, the other is guaranteed to be tails, no matter the distance. Entangled qubits work similarly. Their fates are intertwined, so changing one instantly affects the other. This lets qubits perform complex calculations across multiple qubits, like a symphony of calculations happening all at once.

Quantum Computers vs Classical Computers

So, how does this translate to real-world problems? Imagine designing a new medicine. A regular computer would have to try many different combinations of atoms, one by one. A quantum computer, using superposition and entanglement, could explore all the possibilities at once, finding the perfect combination much faster!

FINANCE

Dude Perfect Strikes Gold

On Tuesday, the well-known sports influencer YouTube channel Dude Perfect announced that it has received an investment exceeding $100 million from the private investment firm Highmount Capital. This funding aims to help the group grow into a broader media company.

The team's next phase, referred to as "Dude Perfect 2.0," includes ambitious plans such as opening a retail store, launching a streaming platform, debuting a line of toys and games at Walmart, and even the potential development of a $100 million theme park.

Available data on Dude Perfect’s Revenue Growth

Growth equity capital is an efficient way to allow innovative sports media brands to scale, while allowing them to retain high levels of autonomy in management, unlike traditional private equity buyouts. This represents a thrilling evolution for sports media, showcasing how dynamic content creation can significantly elevate the industry's engagement and reach.

Chase Media Solutions: A New Era for Banking Engagement?

As the digital landscape continues to evolve, JPMorgan Chase has stepped foot into the advertising realm with its new initiative, Chase Media Solutions.

This venture is not like any other advertising platform; it utilizes Chase’s expansive financial data with advanced digital marketing techniques that will allow brands to connect with the interests of 80 million consumers and provide a personalized brand experience.

US Digital Ad Spending Trends and Projections

The inception of Chase Media Solutions comes from Chase’s acquisition of Figg in 2022, a leading card- linked marketing platform. The acquisition was aimed to enhance Chase’s capabilities in offering targeted, value-driven interactions between consumers and brands.

By harnessing the power of first-party data, Chase Media Solutions provides brands with precise targeting options based on consumer behavior and purchase history. This could promise better ROI for participating brands while enhancing consumer engagement through personalized offers. 

It will be interesting to see if other banks pursue something similar and how this will reshape the landscape of consumer finance.

SUSTAINABILITY

Toyota Puts $300 Million into Climate & Science Startups

Toyota is doubling down on innovation with a $300 million boost to its venture arm, targeting early-stage startups in climate tech, AI, and space exploration. This move expands Toyota Ventures' assets to over $800 million, reflecting the company's commitment to cutting-edge technologies.

Funding Trends for Climate Startups

Jim Adler, general partner at Toyota Ventures, emphasizes the importance of taking risks in the rapidly evolving tech landscape. He believes that by embracing these opportunities, Toyota can stay ahead of global trends and innovations.

The newly allocated $300 million will be divided between two funds: the climate fund supporting startups like hydrogen-focused Ecolectro, and the deep technology fund targeting science-driven ventures such as satellite servicing firm Starfish Space and quantum computing startup Haiqu.

Adler also states that corporate venture investing has its challenges. Initially, Toyota Ventures had to ensure profitability within three years for every project. However, this requirement was dropped to better support early-stage startups.

80% of Global CO2 Emissions Come From Just 57 Companies

A new report by the nonprofit InfluenceMap sheds light on a critical factor in climate change: the outsized role of a small number of companies in global carbon emissions. The report reveals a troubling truth - a mere 57 fossil fuel and cement producers have been the source of a staggering 80% of global CO2 emissions since the signing of the Paris Agreement in 2015.

These companies can be broadly categorized into two groups: state-owned giants and investor-owned firms.

The report identifies some of the top emitters as Chinese state-owned entities, along with investor-owned companies like ExxonMobil, Shell, BP, and Chevron. The report highlights a concerning trend - many of them have actually increased their output since the Paris Agreement.

Emissions by Entity Type (1940–2022)

The research by InfluenceMap serves as a stark reminder of the urgency of climate action. By identifying the key players driving global emissions, the report paves the way for targeted solutions and increased pressure on those most responsible for our planet's future.

NEXUS NEWSFLASH

• China urges telecom firms to phase our foreign chips - A Big Blow to Intel, AMD.

• Geothermal energy could revolutionize industry - Could Polarization halt its progress?

• Europe’s ESG Market continues to Thrive - Why is it outperforming the US?

STAT OF THE WEEK