Digital business building driven by conviction and experimentation
Enter digital business building
At root, the challenge of digitization is not the adoption of any particular technology. Instead, it is the strategic coherence with which companies deploy that technology in support of a digital business model. Companies need to focus on building businesses that are foundationally digital and that can continually evolve, says Anand Ganapathy, who leads the EY-Parthenon Digital Business Building practice. “Digital transformation needs to happen broadly,” he says, “but the strategy on how to do it needs to be more thoughtful, faster, cheaper, and better.”
“To remain competitive, organizations must reimagine their business models to extract value from digital,” says Ganapathy. Re-envisioning a business around digital requires thinking strategically about “how they can operate like digital native companies, so they can be more agile and evolve faster and continuously to outpace peers and handle disruption from new entrants,” he says. “They must understand the anatomy of a digital business to turbocharge their core and build new businesses.”
In the traditional strategy playbook, Ganapathy explains, companies take a “waterfall” approach to change in which executive leadership designs a transformation plan and then hands it over to operational teams to implement over several years. This approach fails in today’s environment of constant flux. Firms must be continually in motion to stay ahead of competitive threats and disruptions—and to profit from new opportunities. Agile work approaches, long used by technical teams, become useful tools for product development and project management, because they can deliver strategic change at the speed of digital business.
Digital business building, Ganapathy explains, is a “continuous, flexible process, leveraging agile experimentation in a rapidly changing business environment where players come and go, rules change, and endpoints are never singularly defined.” It is a crucial shift, he advises, because firms today cannot spend five years delivering on a change agenda.
While every business is different, Ganapathy emphasizes several core principles for digital business building. The first is to build conviction across the enterprise. While strategy leaders like to focus on big ideas, Ganapathy cautions that they also must spend time and effort building their stakeholders’ confidence to implement said ideas.
Startups and founders have experience with tough, lean operating environments in their early years. Conviction got them through, enabling them to overcome threats, fight fires, and lead teams through uncertain waters. That gives them a resilience that guides them through later challenges or reforms.
Business leaders in incumbent or well-established companies, by contrast, may lack that visceral experience. As a result, they may also lack the conviction to drive through a transformation agenda that brings risks, disruptions, and opposition, whether from shareholders, staff, or customers.
One way to build conviction in these types of businesses, Ganapathy says, is to focus on a company’s endowments. To be sure, traditional businesses have some disadvantages when compared to startups or digital natives: they may have to contend with legacy infrastructure, more defensive cultural mindsets, and a digital skills gap. But they also have assets of their own that they can take confidence from.
The Download: AI films, and the threat of microplastics
The Frost nails its uncanny, disconcerting vibe in its first few shots. Vast icy mountains, a makeshift camp of military-style tents, a group of people huddled around a fire, barking dogs. It’s familiar stuff, yet weird enough to plant a growing seed of dread. There’s something wrong here.
Welcome to the unsettling world of AI moviemaking. The Frost is a 12-minute movie from Detroit-based video creation company Waymark in which every shot is generated by an image-making AI. It’s one of the most impressive—and bizarre—examples yet of this strange new genre. Read the full story, and take an exclusive look at the movie.
—Will Douglas Heaven
Microplastics are everywhere. What does that mean for our immune systems?
Microplastics are pretty much everywhere you look. These tiny pieces of plastic pollution, less than five millimeters across, have been found in human blood, breast milk, and placentas. They’re even in our drinking water and the air we breathe.
Given their ubiquity, it’s worth considering what we know about microplastics. What are they doing to us?
The short answer is: we don’t really know. But scientists have begun to build a picture of their potential effects from early studies in animals and clumps of cells, and new research suggests that they could affect not only the health of our body tissues, but our immune systems more generally. Read the full story.
Microplastics are everywhere. What does that mean for our immune systems?
Here, bits of plastic can end up collecting various types of bacteria, which cling to their surfaces. Seabirds that ingest them not only end up with a stomach full of plastic—which can end up starving them—but also get introduced to types of bacteria that they wouldn’t encounter otherwise. It seems to disturb their gut microbiomes.
There are similar concerns for humans. These tiny bits of plastic, floating and flying all over the world, could act as a “Trojan horse,” introducing harmful drug-resistant bacteria and their genes, as some researchers put it.
It’s a deeply unsettling thought. As research plows on, hopefully we’ll learn not only what microplastics are doing to us, but how we might tackle the problem.
Read more from Tech Review’s archive
It is too simplistic to say we should ban all plastic. But we could do with revolutionizing the way we recycle it, as my colleague Casey Crownhart pointed out in an article published last year.
We can use sewage to track the rise of antimicrobial-resistant bacteria, as I wrote in a previous edition of the Checkup. At this point, we need all the help we can get …
… which is partly why scientists are also exploring the possibility of using tiny viruses to treat drug-resistant bacterial infections. Phages were discovered around 100 years ago and are due a comeback!
Our immune systems are incredibly complicated. And sex matters: there are important differences between the immune systems of men and women, as Sandeep Ravindran wrote in this feature, which ran in our magazine issue on gender.
Welcome to the new surreal. How AI-generated video is changing film.
Fast and cheap
Artists are often the first to experiment with new technology. But the immediate future of generative video is being shaped by the advertising industry. Waymark made The Frost to explore how generative AI could be built into its products. The company makes video creation tools for businesses looking for a fast and cheap way to make commercials. Waymark is one of several startups, alongside firms such as Softcube and Vedia AI, that offer bespoke video ads for clients with just a few clicks.
Waymark’s current tech, launched at the start of the year, pulls together several different AI techniques, including large language models, image recognition, and speech synthesis, to generate a video ad on the fly. Waymark also drew on its large data set of non-AI-generated commercials created for previous customers. “We have hundreds of thousands of videos,” says CEO Alex Persky-Stern. “We’ve pulled the best of those and trained it on what a good video looks like.”
To use Waymark’s tool, which it offers as part of a tiered subscription service starting at $25 a month, users supply the web address or social media accounts for their business, and it goes off and gathers all the text and images it can find. It then uses that data to generate a commercial, using OpenAI’s GPT-3 to write a script that is read aloud by a synthesized voice over selected images that highlight the business. A slick minute-long commercial can be generated in seconds. Users can edit the result if they wish, tweaking the script, editing images, choosing a different voice, and so on. Waymark says that more than 100,000 people have used its tool so far.
The trouble is that not every business has a website or images to draw from, says Parker. “An accountant or a therapist might have no assets at all,” he says.
Waymark’s next idea is to use generative AI to create images and video for businesses that don’t yet have any—or don’t want to use the ones they have. “That’s the thrust behind making The Frost,” says Parker. “Create a world, a vibe.”
The Frost has a vibe, for sure. But it is also janky. “It’s not a perfect medium yet by any means,” says Rubin. “It was a bit of a struggle to get certain things from DALL-E, like emotional responses in faces. But at other times, it delighted us. We’d be like, ‘Oh my God, this is magic happening before our eyes.’”
This hit-and-miss process will improve as the technology gets better. DALL-E 2, which Waymark used to make The Frost, was released just a year ago. Video generation tools that generate short clips have only been around for a few months.
The most revolutionary aspect of the technology is being able to generate new shots whenever you want them, says Rubin: “With 15 minutes of trial and error, you get that shot you wanted that fits perfectly into a sequence.” He remembers cutting the film together and needing particular shots, like a close-up of a boot on a mountainside. With DALL-E, he could just call it up. “It’s mind-blowing,” he says. “That’s when it started to be a real eye-opening experience as a filmmaker.”