by Said El Mansour Cherkaoui – TRI CONSULTING KYOTO TRI CK USA – Landmark Legislation: California Facing the World of Artificial Intelligence TRI CONSULTING KYOTO TRI CK USA – A California lawmaker will file a bill seeking to make generative AI models more transparent and start a discussion in the state on how to regulate the technology. California Senator Scott Wiener (D) has drafted a bill requiring “frontier” … Continue reading
A California lawmaker will file a bill seeking to make generative AI models more transparent and start a discussion in the state on how to regulate the technology. California Senator Scott Wiener (D) has drafted a bill requiring “frontier” model systems, usually classified as large language models, to meet transparency standards when they reach above a certain quantity of computing power. Wiener’s bill will also propose security measures so AI systems don’t “fall into the hands of foreign states” and try to establish a state research center on AI outside of Big Tech.
The bill, which is classified as an intent bill and needs further development before it can pass, will also mandate AI labs to test models for safety risks and disclose to the state if safety risks are found. Wiener’s goal, per a statement sent to The Verge, is to start discussions on regulating AI.
California and Artificial Intelligence: To Be or Not To Be Meaningful Regulation?
California Weighed in below!
California AI safety bill blocked:
California Gov. Gavin Newsom has vetoed a controversial artificial intelligence safety bill that would have “laid the groundwork for how AI is regulated across the U.S.”
In a statement, Gov. Gavin Newsom said SB 1047 is “well-intentioned” but doesn’t consider whether AI is deployed in high – or low-risk situations, and would have applied to only the largest and most costly models.
AI Bill SB 1047 faced opposition from tech companies large and small, who warned that it would strangle innovation.
Newsom said he’s now collaborating with researchers including Fei-Fei Li to create more effective legislation.
Read more Naturally and Intelligently:
California legislature passes AI bill SB 1047: https://www.linkedin.com/news/story/calif-legislature-passes-ai-bill-6144228/
An artificial intelligence safety bill was overwhelmingly approved by California legislators on Wednesday, September 25, 2024 and now heads to Gov. Gavin Newsom for final consideration. If enacted, the “fiercely debated” bill would require tech companies to safety-test AI programs before release and empower the attorney general to sue AI companies for any major harm caused by their technologies.
The bill earned cautious support from the likes and here are some of these reactions:
Elon Musk: “This is a tough call and will make some people upset, but, all things considered, I think California should probably pass the SB 1047 AI safety bill. For over 20 years, I have been an advocate for AI regulation, just as we regulate any product/technology that is a potential risk to the public.”
This is a tough call and will make some people upset, but, all things considered, I think California should probably pass the SB 1047 AI safety bill.
For over 20 years, I have been an advocate for AI regulation, just as we regulate any product/technology that is a potential risk…
Governor Newsom announces new initiatives to advance safe and responsible AI, protect Californians: Sep 29, 2024
What you need to know:
Governor Newsom announced that the “godmother of AI,” Dr. Fei-Fei Li, as well as Tino Cuéllar, member of the National Academy of Sciences Committee on Social and Ethical Implications of Computing Research, and Jennifer Tour Chayes, Dean of the College of Computing, Data Science, and Society at UC Berkeley, will help lead California’s effort to develop responsible guardrails for the deployment of GenAI.
Governor Newsom also ordered state agencies to expand their assessment of the risks from potential catastrophic events.
The bill, introduced by Sen. Scott Wiener (D-San Francisco), would have required developers to submit their safety plans to the state attorney general, who could hold them liable if AI models they directly control were to cause harm or imminent threats to public safety.
Additionally, the legislation would have required tech firms to be able to turn off the AI models they directly control if things went awry.
Plagiarism, copyright, and other forms of industrial, research, and intellectual property are the next challenges.
Trademarks and intellectual property need to be redefined and refocused.
The notion of knowledge and job qualifications has also to be reinterrogated and reevaluated within every sector and every production.
The robotic side will have to be adapted to all these forms of definitions, including design, research, and development.
Competition,cookie-cutting, copycatting, and imitation will have to be reformulated as well as the reverse engineering procedures and processes.
Law schools will have to form new Artificially Intelligent competent Lawyers and Prosecutors as well as Judges.
One of these regulations is the consumption of electricity and the impact on the environment resulting from the multiplication of Data Centers.
“While some of the most advanced, “hyperscale” data centers, like those maintained by Google, Facebook, and Amazon, have pledged to transition their sites to carbon-neutral via carbon offsetting and investment in renewable energy infrastructures like wind and solar, many of the smaller-scale data centers that I observed lack the resources and capital to pursue similar sustainability initiatives. Smaller-scale, traditional data centers have often been set up within older buildings that are not optimized for ever-changing power, cooling, and data storage capacity needs. Since the emergence of hyperscale facilities, many companies, universities, and others who operate their own small-scale data centers have begun to transfer their data to hyperscalers or cloud colocation facilities, citing energy cost reductions.
The Cloud now has a greater carbon footprint than the airline industry. A single data center can consume the equivalent electricity of 50,000 homes.
According to a Lawrence Berkeley National Laboratory report, if the entire Cloud shifted to hyperscale facilities, energy usage might drop as much as 25 percent. Without any regulatory body or agency to incentivize or enforce such a shift in our infrastructural configuration, there are other solutions that have been proposed to curb the Cloud’s carbon problem. Some have proposed relocating data centers to Nordic countries like Iceland or Sweden, in a bid to utilize ambient, cool air to minimize carbon footprint, a technique called “free cooling.” However, network signal latency issues make this dream of a haven for green data centers largely untenable to meet the computing and data storage demands of the wider world.”Source: The staggering ecological impacts of computation and the cloud
Oracle and Amazon Coming to Morocco and Africa: New Silicon Muslimetropolis in Morocco
These imbrications of the Data Centers as participants in the deficiencies of climate change have forced many providers to seek other skies and localisations in more welcoming regions in the United States and countries around the world such as Amazon and Oracle signing and moving new Data Centers to Morocco.
Oracle intends to increase its Moroccan Research & Development workforce to 1,000 information technology specialists. Oracle‘s expansion follows the inauguration of its Moroccan Development Center at Casanearshore / Technopolis Parks in Casablanca, where researchers leverage cloud, AI, and machine learning technologies to address the most pressing challenges in the fields of business, science, and the public sector.
Oracle and Amazon Coming to Morocco and Africa: New Silicon Muslimetropolis in Morocco
“Oracle’s R&D center in Casablanca has already played a critical role in driving technical advances, improving cybersecurity, and developing new AI capabilities, [” “] By strengthening our R&D presence in Morocco, we will be able to leverage its vast talent pool to accelerate the development of solutions that will help our clients around the world grow their businesses and achieve success in their sectors,» said Safra Ada Catz, the CEO of Oracle Corporation.
Ms. Ghita Mezzour, PhD. added: “This ambitious project is aligned with the Royal Strategic Vision of His Majesty King Mohammed VI, which encourages the innovation and creativity of young Moroccans.”
It is estimated that 40% of new positions will be located outside the Greater Casablanca and Rabat-Salé-Kenitra regions, by opening new offices in Agadir this year, and in northern Morocco within the next two years.
In this center of excellence, young Moroccans will be at the forefront of the design and development of innovative solutions using the latest technologies such as artificial intelligence, big data, cloud, and cybersecurity. These solutions will be deployed on a global scale, thus strengthening Morocco’s positioning as a digital hub for the entire region.
In the same horizon, sky, and cloud line, Amazon Web Services (AWS) is getting into the fold of the Moroccan and North Sahara Africa to offer cloud computing in Morocco and Senegal using its AWS Wavelength platform in partnership with Orange, which was announced on Wednesday 29, May 2024.
One of the first of its kind the services will be provided without having physical AWS infrastructure such as data centers. Natural collaboration obliges, Orange will use and branch its physical data centers to shelter the AWS services. This AWS-Orange partnership, beyond language differences and origins, is responding to the rise of demand and needs for speeder and secured computing operations from banks, telecom firms, and healthcare firms.
There is a sense of a Gold Rush in Africa attracting cloud operators to service the rising cloud market that is expected to grow by 15% yearly to reach $18 billion in 2028, according to Statista.
This agreement aims to establish two public cloud regions in Morocco.
The investment of $140 million over five years, will enable Oracle to establish a comprehensive suite of cloud services, with deployments in two data centers. This project will provide local and regional businesses with access to next-generation cloud services, enhancing their efficiency and competitiveness.
Oracle Advent stimulates Interest and Strategic Partnership between Orange and Amazon
Amazon Web Services (AWS), an Amazon subsidiary that provides “cloud computing on demand” platforms and applications to individuals, businesses, and governments, plans to offer “cloud computing” to Morocco and Senegal using its AWS Wavelength platform in collaboration with the company French Orange. This is what we read in a joint statement from the two companies, according to which this will be the first time that the services will be available in a country without physical AWS infrastructure such as data centers.
Oracle Advent Stimulates Interest and Strategic Partnership between Orange Maroc-AWS
Amazon Web Services (AWS), an Amazon subsidiary that provides “cloud computing on demand” platforms and applications to individuals, businesses, and governments, plans to offer “cloud computing” to Morocco and Senegal using its AWS Wavelength platform in collaboration with the company French Orange. This is what we read in a joint statement from the two companies, according to which this will be the first time that the services will be available in a country without physical AWS infrastructure such as data centers.
C’est une excellente nouvelle pour le Maroc 👏 J’espère que les autres géants mondiaux du cloud, tels que Microsoft Azure, Amazon AWS et Google GCP, choisiront également de s’installer ici, d’autant plus que le Maroc est l’un des pays leaders en Afrique 🙏
Yassine BENADDOU IDRISSI en fait ça consomme moins que les milliers de salles serveurs climatisées mais très mal-isolées de Tanger à Lagrouira. Consolider et centraliser dans un datacenter moderne qui respecte toutes les normes en vigueur du Green IT serait beaucoup mieux pour l’environnement.
Amine L. Avec tous mes respects, ca n’existe pas des normes en vigueur et green it avec les datacenters => C’est polluant et energivore surtout avec la nouvelle stratégie numérique 2030 vous verrez des datacenters naitre comme des champions mutualisés avec les bornes 5G …de quelle maroc vert on parle 🤔
Yassine BENADDOU IDRISSI J’ai travaillé 7 ans au Maroc sur et dans des datacenters locaux privés, c’était CATASTROPHIQUE: Des climatiseurs pour serveurs qui refroidissaient de grandes salles de 100m2 à fond alors qu’il n’y avait que 4 serveurs et avec des fenêtres ouvertes. En terme de normes il y en a plusieurs: ISO 50001, LEED et j’en passe.
Amine L. Les normes sont faites pour faite travailler les cabinets de conseil c’est leur gain pain pas plus..ces normes meme dans les pays les plus développés ne sont pas respectés..ya tout un debat dans ce sens en France, Etats Unis surtout avec l’émergence de l’ia generative et les supercalculateurs quantiques bientot repandus.
Pr Mohamed Amine ISSAMI tout dépend des termes du contrat portant sur la localisation des données. En europe, certains pays ont plutôt opté à deux mesures. Pour les données stratégiques des entreprises nationales, l’hébergement doit être au niveau national ou européen par un opérateur national ou européen. Pour les données de l’Etat ayant trait à la souveraineté, l’hébergeur est un opérateur public national.See translationSee translation of this comment
Artificial Intelligence comes with a hefty price tag – not just because of how expensive it is to actually train and run AI models, but also due to its considerable environmental impact.
Last week, Googlerevealed that its greenhouse gas emissions have jumped nearly 50% over the past five years — because the data centers it uses to power AI and other applications are using more power than ever before.
Emissions are just one part of the equation in AI’s soaring environmental costs. The technology is also known to have a voracious appetite for both energy and water. AI’s rapid growth could cause U.S. electricity consumption to “outstrip current supply in the next two years,” Bernstein analysts recently said. Meanwhile, a recent Goldman Sachsreport found that the demand for power driven by AI applications is poised to increase 160% by 2030 – and also estimated that using ChatGPT for an answer sucks up to 10 times as much electricity as a basic Google search.
“That kind of spike in power demand hasn’t been seen in the U.S. since the early years of this century,” the Goldman analysts said in the report.
With AI only growing in scale and scope, and thereby getting more resource-intensive, tech companies, investors and startups are trying to balance its promises with its environmental footprint, investing in areas like renewable energy sources and energy-efficient processing.
One way stakeholders are trying to limit carbon emissions related to training and using AI is by using or designing data centers powered by cleaner energy sources like hydropower, wind, and even nuclear power — versus coal.
OpenAI founder and CEO Sam Altman and VC firm Andreessen Horowitz seem to be part of this camp, with their backing of the startupExowatt, which aims to meet such clean-energy needs by combining solar thermal tech with a thermal battery system in modules that can be stored and deployed near data centers.
Other tech companies are similarly trying to make their AI infrastructure more efficient by investing heavily in clean energy sources for their data centers.
Illustration: Brendan Lynch/Axios
Columbus’ data center boom may be running out of juice.
Why it matters: Ample, affordable electricity is part of what made the area so attractive to data centers and tech manufacturers in the first place, helping land mega-projects from Intel, Amazon, Facebook and Google.
But a 146% expansion of local data center inventory from 2012-2021 has gobbled up much of our excess grid capacity, per a new report by researchers at JLL, a commercial real estate firm that caters to the tech industry.
Threat level: The company is warning data center developers that the area’s grid capacity will be “constrained” over the next two to three years.
The big picture: Data centers are driving a surge in demand for electricity across the country.
The increase is fueled in part by the rapid rise of artificial intelligence, which relies on especially power-hungry computing infrastructuret.
Utilities have doubled their estimates of how much additional electricity they’ll need in the near term, which notes the trend threatens U.S. climate change goals.
Zoom in: AEP Ohio warned PJM, the organization that operates the electric grid in the region, that it’s anticipating heavy new demands for electricity between new data centers and Intel’s new $20 billion semiconductor plant.
Friction point: To meet that demand, the utility wants to build new transmission lines to New Albany for new Intel, Meta, Google, and Amazon facilities.
That’s drawn pushback from some residents, who complained the project will hurt their property values, per WCMH-TV.
What they’re saying: “The energy demand from these large users can be 100 times that of a typical industrial customer,” AEP Ohio spokesman Scott Blake told Axios. Source: Mar 25, 2024 –News
Just this week, Amazonsaid that it had reached a crucial climate goal by using electricity in its operations from sources that didn’t produce greenhouse gas emissions. The company claimed that it essentially offset its electricity use via its more than 500 solar and wind projects, but some critics argued that since those projects don’t directly power Amazon’s operations, the company may be offering “a misleading impression of its effect on the climate.”
“Advances in AI have depended on exponential growth in training data and thus computing power; as these power requirements grow in the era of deep learning, AI is spurring a boom in clean electricity,” said Izzy Woolgar, director of external affairs at the non-profit energy research institute Centre for Net Zero (Octopus Energy Group). “The race to invest in vast new data centers — and the green energy to power them — is on.”
Founded in 2021, Anthropic also conducts research into AI language models. The company has built its general-purpose chatbot, a potential rival to ChatGPT named Claude, but has yet to release it publicly.
Google has invested $300 million into an OpenAI and ChatGPT rival, officially joining the race to create the best generative AI. The tech giant is taking a 10% stake in Anthropic and its AI model Claude, The Financial Times reports. Anthropic’s short history is full of big players — former OpenAI researchers founded the startup in 2021 and raised $580 million in funding last April, mostly from the now-disgraced FTX. Google’s announcement comes weeks after Microsoft, LinkedIn’s parent company, invested $10 billion into OpenAI.
Very excited to partner with Anthropic on building the future of AI on our Google ML infrastructure!
Anthropic selected Google Cloud to benefit from the company’s deep expertise in large-scale systems for machine learning and as a partner with shared values around the safe and beneficial development of AI. By leveraging Google’s custom-developed machine learning systems designed to run computationally-intensive workloads, Anthropic will continue to conduct breakthrough AI research on the same infrastructure that powers Google Search and YouTube.
“At Google, we believe it is imperative to pursue AI boldly and responsibly,” said James Manyika , SVP of Technology and Society, Google. “We are committed to developing and delivering useful and beneficial applications, applying responsible principles grounded in human values and safety, and evolving our approaches as we learn from research, experience, users, and the wider community. Our partnership with Anthropic is aligned with that philosophy.”
“AI has evolved from academic research to become one of the biggest drivers of technological change, creating new opportunities for growth and improved services across all industries,” said Thomas Kurian , CEO, Google Cloud. “Google Cloud is providing open infrastructure for the next generation of AI startups, and our partnership with Anthropic is a great example of how we’re helping users and businesses tap into the power of reliable and responsible
There’s been a real frenzy around #AI over the past few months. But I thought calling it an “AI arms race” was tad alarmist. Until now.
Google has invested $300 million into Anthropic — on the heels of Microsoft’s (LinkedIn’s parent) recent $10 billion investment into ChatGPT-creator OpenAI — it’s clear that the race for the future of AI has ramped up.
“OpenAI is an AI research and deployment company. Our mission is to ensure that artificial general intelligence benefits all of humanity. For more information about OpenAI: https://openai.com/about.”
🚨 BREAKING: Google investing $300 million in OpenAI competitor Anthropic Last week’s headlines saw Anthropic seeking $300 million in investment. We now know that Google will be the one to provide it. In exchange, Google will be getting about 10% stake. Plus, Anthropic will be exclusively using Google for its computing resources. This is similar to the original Microsoft/OpenAI deal, where Microsoft invested $1 billion for a similar tie-up in computing resources. PS. Get today’s top AI stories in a quick 3-minute digest. Join 11K+ other professionals staying smart on AI: http://bit.ly/3iKiI10
Times are really interesting to watch out in generative AI space. According to news reporting from the Financial Times, Google has invested $300 million in one of the most buzzy OpenAI rivals, Anthropic, whose recently-debuted generative AI model, Claude, is considered competitive with ChatGPT #google#ai. Results of Claude model are comparatively better than chatgpt.
Anthropic‘s Claude does a decent job of translating Bengali text into English. ChatGPT failed this particular task. So did Google translate.
My dad Rehman Mehbubor has been writing op-ed articles in Bangladeshi newspapers recently. He sent me one of his articles today. Having grown up in the United States, I did not learn to read and write in Bangla, unfortunately. (Though I do speak it).
First I tried Google translate to help me read his article. It kept failing, stating that I exceeded the character limit. I kept reducing the text down and finally got it to work but felt that it was too cumbersome to do over and over again. Next I tried ChatGPT. I kept getting an error message. Finally, I tried Claude. And it worked! I’m glad I found a way to appreciate my dad’s work.
ChatGPT just turned 2 months old. Isn’t it crazy to think that back in early November, we still searched for information on Google and wrote our own copy like a bunch of jackasses? We were rosy cheeked cherubs when it came to AI back then. Its fast growth lit a fire under every company in the AI space. And now they’re coming in hot. In a few more months, the landscape will look very different. What are a few AI contenders we should look out for? A VentureBeat article from today shed some light on it.
1️⃣ 𝐀𝐧𝐭𝐡𝐫𝐨𝐩𝐢𝐜’𝐬 𝐂𝐥𝐚𝐮𝐝𝐞 Created by former OpenAI researchers, it got $580 million in funding, and is about to raise $300 million more. A weird footnote to that is Sam Bankman-Fried and FTX bankrolled most of the first round, which isn’t a great association to have. Still, the company is seemingly good. It’s in closed beta now, but said to potentially be an improvement on ChatGPT and is designed to not be evil at its core.
2️⃣ 𝐃𝐞𝐞𝐩𝐌𝐢𝐧𝐝’𝐬 𝐒𝐩𝐚𝐫𝐫𝐨𝐰 This one is Google’s answer to OpenAI that takes a safer approach. It’s going slow because it wants to be able to cite sources and reduce risk. It’s going to be in private beta sometime this year, and I’m here for it. Trusting data generated by AI is hard, and if it can make the data more trustworthy, that’s going to be massive.
3️⃣ 𝐆𝐨𝐨𝐠𝐥𝐞’𝐬 𝐋𝐚𝐌𝐃𝐀 Google isn’t taking this lying down and they have another LLM competitor built on top of Google’s open-source Transformer architecture just like ChatGPT. One of the researchers working on it got into trouble last year because he said it was sentient. So yeah, there’s that. It should be the closest experience to ChatGPT of the bunch. It’ll be cool to compare the 2 tech behemoths once it’s out.
4️⃣ 𝐂𝐡𝐚𝐫𝐚𝐜𝐭𝐞𝐫 𝐀𝐈 Just like Anthropic was sort-of a descendant of OpenAI, Character AI is LaMDA’s. A couple of the original engineers that created Transformer and then LaMDA set out on their own. Its technology lets users chat with AI-driven impersonations of historical figures like Queen Elizabeth or Shakespeare as well as fictional characters. While that’s a 𝘷𝘦𝘳𝘺 specific use case, the technology is 𝘨𝘰𝘰𝘰𝘰𝘥. I had an adventure with Mario to test it out and it was like playing an old-school text adventure game. These are just the tip of the iceberg of what’s coming. Are you excited for what’s next?
How do you see these tools working together? Or who will win?
By contrast, entrepreneurship is developing a new venture outside an existing organization. The traditional entrepreneur shall now act as an innovation hunter to proactively be able to set up new smart businesses; ideally from the beginning, till the end of any business life cycle. The term entrepreneur, etymologically originates from the French word entreprendre meaning “to begin something, undertake.” During medieval times, this word was used to describe an active working person.
In economic theory, it was Richard Cantillon (1759), – an Irish economist of French descent – first, who first used the term entrepreneur. According to Cantillon, the entrepreneur is a specialist in taking risks.
Risk-taking is one of the famous attributes of entrepreneurs which is also frequently emphasized in the literature. Spiritually, some people are observed to tend to behave extra-ordinarily. As Jobs addresses; “You have to trust in something—your gut, destiny, life, karma, whatever—because believing that the dots will connect down the road will give you the confidence to follow your heart, even when it leads you off the well-known path, and that will make all the difference.” Taking the risk phenomenon and the spiritual reflections into consideration; it can easily be summed up that entrepreneurship has something to do with inner-journey.
Another emphasis on entrepreneurship is its presentation as a mindset. “Entrepreneurship is first and foremost a mindset. To seize an entrepreneurial opportunity, one needs to have a taste for independence and self-realization,” said Olli Rehn, a member of the European Commission. Understanding the entrepreneurial mindset requires a certain threshold of empathy. First of all, entrepreneurship is the story of ambiguity. An anonymous supporting quote is likely to highlight the gist of entrepreneurship. It’s as follows: “Anyone, (can be an entrepreneur) who wants to experience the deep, dark canyons of uncertainty and ambiguity; and who wants to walk the breathtaking highlands of success. But I caution, do not plan to walk the latter, until you have experienced the former.” In this regard, as Schumpeter also points out; entrepreneurs seem to have some heroic vision. Schumpeter focused on high-level entrepreneurship and larger businesses. On the other hand, Marshall examined smaller businesses, partially. It was Hayek and Kirzner, who examined the entrepreneurs as middlemen hoping to profit by buying cheap and selling expensive.
When it comes to defining entrepreneurship; it can easily be discovered that various people have defined entrepreneurship differently. Despite this fact, the most common classification follows the mainstream of Collins and Moore; who claimed two types of entrepreneurship, differentiating due to the context of entrepreneurial activities undertaken. These are, firstly, independent entrepreneurship and independent entrepreneurs (similar to entrepreneurship/traditional entrepreneurship and entrepreneurs/traditional entrepreneurs in this paper), implying the process whereby an individual or a group of individuals, acting independently of any association with an existing organization, create a new organization
Stopford and Baden-Fuller considered entrepreneurs as opportunists even in chaotic situations, and they also metaphorically approached entrepreneurship. According to them, entrepreneurs are like Olympic athletes, long-distance runners, symphony orchestra conductors, and top-gun pilots…These metaphors underline the entrepreneurs’ being ambitious, determined, self-challenging, and talent for synchronizing [12]. [Source: Mehmet Çağrı Gündoğdu / Procedia – Social and Behavioral Sciences 41 ( 2012 ) 296 – 303].
San Francisco the Hub of Innovation and Leadership
The First Muslim Moroccan Entrepreneur-Investor in the History of Morocco Starting Transportation Operations Toutes Directions
First Moroccan Muslim Contractor of Public Transport in Early 1920 – Twenties of 20th Century: Moulay Ahmed Cherkaoui at 24 was the First Muslim Transporter in Morocco By Dr. Said El Mansour Cherkaoui Son of Moulay Ahmed Cherkaoui Father of Moulay Ahmed Cherkaoui Said El Mansour Cherkaoui PARENTAL HERITAGE OF MOROCCAN NATIONALISM This is Haj Ahmed Cherkaoui All … Continue reading
🌎 Analyst World Affairs ★ Author ★ Elaboration of Predictive Studies ★ Keynote Speaker ★ Entrepreneurial Planning ★ Business Development ★ United States ★ Europe ★ France ★ Morocco ★ China ★ Sub-Saharan Africa 🌍 Project Development Specialist ★ Entrepreneurship ★ International Trade and Business ★ Faculty ★ 🌍 France and USA: Research and Academia, Letters … Continue reading
There are various types of entrepreneurs. We will see some of it.
Industrial Entrepreneurs: They are in the business of manufacturing products. E.g. Manufacturing of automobile parts.
Trading Entrepreneurs: They are in the business of buying & selling products or services. E.g. Traders of Houses.
Imitative Entrepreneurs: These types of businesses copy other successful businesses & run the business similarly.
Drone Entrepreneurs: These types of entrepreneurs don’t like to change their business style. They don’t involve innovation. They just want to be like how they are.
Fabian Entrepreneurs: They don’t change until it is very much needed. They adopt change when it is very necessary.
What are the various functions of Entrepreneurs?
The main function of an Entrepreneur is to take risks.
The second function is to start the enterprise.
The third function is to keep an eye on the internal & external environment.
The fourth function is to make arrangements for necessary resources.
The fifth function is to deliver products/services to customers.
Innovation
Innovation is one of the key requirements for entrepreneurship.
Innovation is nothing but new ways of doing old tasks.
Innovations can be Chemical, mechanical, managerial, technical, institutional, service, etc.
According to Joseph Schumpeter, there are five types of innovations.
Introduction of new & good quality product.
Introduction of a new method of production.
Introduction of a new market.
Use of some new sources of supply as raw material.
They are making a new organizational form of industry.
The innovation process in Entrepreneurship includes the following steps.
Research of market
Development of product/service
Marketing of product/service
Production
Use by customer
Feedback from the customer.
Innovation has emerged as a headline in the field of business management, recently. Kuratko determines the magic words to describe the innovative way of our time: Dream, create, explore, invent, pioneer, and imagine [34]. Innovation itself is changing. The etymological roots of innovation stretch to the Latin word innovare, meaning to do something new. Most of the innovation definitions have focused on similar points with different perspectives. The key common points imply change and renewal for a better situation. The Organization for Economic Cooperation and Development (OECD), inside the Oslo Manual—the source of information regarding international technological developments— defines innovation by linking it to technological change.
According to the OECD, innovation means “completing products and services by developing them technologically. The European Union (EU) has made a broader definition. To the EU, innovation introduces the change in workforce talent, working conditions, and managerial and organizational jobs. Also, it’s about renewal and growth in product and service range. In addition to this, a well-known expression about innovation; characterizes it as the process of converting new ideas into value-creating outputs such as new products, methods, or services. With the help of innovation; companies acquire the ability to develop and apply not only new products, processes, or designs but also new operations and business models.
After having experienced enormous financial crises all over the world in recent years; company survival has emerged as the most crucial issue both for SMEs and even some large companies. SMEs, as the increasing value of the new economy, are obligatorily undertaking the mission of being innovative. It’s innovative SMEs that will lead the way to economic recovery.
This is what sets innovation-led companies apart: they have been successful in establishing organizational cultures where initiative is rewarded and failures are encouraged. They have structures, processes, and senior leadership that are supportive of innovation, and they have built an ecosystem of partners that enables these organizations to constantly bring in new ideas into their organizations.
MMP: Can any organization be innovation-led, or is it more relevant for some rather than others? Are there simple changes that can be implemented in the short term? And what about the long term?
NN: With accelerating innovation change, every organization needs to aim to become innovation-led. We all have been reading about significant changes caused by new technologies such as AI, VR (virtual reality), blockchain, and big data. These technologies will impact every type of organization. However, some researchers have argued that in highly turbulent and uncertain markets, it could be beneficial for companies to scale back on innovating until they can better understand the future directions of these markets.
In the short term, many established organizations have chosen to set up separate innovation labs. These are usually set apart from the rest of the organization so they can operate uninhibitedly. However, such labs often don’t work, as this recent commentary demonstrates.
In the long term, companies need to pursue a double strategy: developing an internal innovation capability and partnering externally – including cooperating with and even acquiring, innovative companies/start-ups. This is a strategy many leading tech companies are pursuing.
MMP: Do you have any guidance regarding the challenges creative companies face when developing innovation strategies? What can they take from tech companies and vice versa?
NN: Research on creative companies has shown that many creative companies while being quite innovative, are less business-savvy concerning turning new ideas into profitable business models. This is something that has plagued the creative industries sector for quite some time – individual creativity often drives the success of the organization, but they struggle to create a sustainable business model to scale up this creativity.
Creative companies could learn from tech companies to put more focus on the scalability of their creative ideas and how to develop financially sustainable business models. On the other hand, tech companies can learn from creative companies how to ensure that their employees remain creative and innovative, even if they are part of larger organizations with bureaucracy and managerial practices that often stifle innovation. In many ways, the stories we hear from organizations like Alphabet/Google and Apple, about the playful environments they have created for their employees and the flat hierarchies they have established, are in line with how smaller creative companies operate. Yet, Amazon, for example, has been under the spotlight, because of the stifling practices and toxic culture its employees have experienced.
The question of how to keep the creative/innovative mindset as organizations grow is critical to ensure that large organizations, whether tech or not, can continue to be innovative.
Source of the interview on Innovation: Dr Natalia Nikolova is a Senior Lecturer, at UTS Business School and Faculty of Transdisciplinary Innovation. Professor Margaret Maile Petty is UTS Executive Director of innovation and Entrepreneurship.
