(#66) Boeing's brutal 2024; Brands go Direct; Deloitte's reorganisation; and Google DeepMind unveils Tactic AI: a football AI coach
Tech job seekers without AI skills face a new reality: lower salaries and fewer roles
Knowledge Partner: EY
The role of the Chief Financial Officer (CFO) in Romania has experienced a radical transformation in recent years. The traditional equation of prudence and austerity management has been swapped for a bolder strategy; one fueled by innovation, integration, and unimaginable feats of growth steered by CFOs beginning to place more emphasis on the holistic development of their team’s skills.
The EY CFO Imperative 2024 survey provides an interesting glimpse into the multi-faceted role of the CFO, seeking to comprehend his/her personal and professional transformation in a rapidly evolving business landscape. Read the full report.
Today’s menu
Brands go Direct (ie. Selena Gomez to sell Rare Beauty for $2 bn)
Boeing's brutal 2024
Apple is getting serious about AI
Google DeepMind unveils Tactic AI: a football AI coach
The lost lessons of crypto
Inside the glorious afterlife of Roger Federer
Strategy
Hindenburg Research has a new target: LLC S.A.
The Polish company LLC S.A. has 5 recognizable brands (ie. Reserved, Mohito, House, Cropp, and Sinsay) and has been working undercover on the Russian market, hence violating the embargo. Some findings:
1/ Russia, LPP's largest international market, accounted for about 19.2% of its revenue. The invasion led to a 46.6% drop in LPP's share price due to the exit of foreign companies from Russia and the loss of a key growth market. In response to sanction and reputational risks, LPP announced divesting its Russian operations in April 2022, claiming to sell its assets to a "Chinese consortium" represented by a Dubai-based shell company with no clear background.
2/ However, investigations suggest this divestment was a façade, with LPP allegedly maintaining control over its Russian operations. Operational details, such as the reopening of Russian stores immediately after announcing the sale and changes in auditors, raise suspicions.
3/ Further, investigative findings, including secret shopper reports, barcode analysis, and import-export records, indicate LPP has continued selling its products in Russia, employing barcode manipulation and front companies to conceal its activities.
4/ Despite the divestment claim, LPP's revenue grew 13% overall in FY 2022/23, with non-Russian markets reporting a 40.5% increase.
These actions, if true, could violate loan agreements and deceive stakeholders about LPP's operations and financial health, suggesting a complex scheme to continue benefiting from the Russian market while appearing to comply with international sanctions and public sentiment. LINK
Microsoft hires DeepMind co-founder Suleyman Mustafa to lead its consumer AI division
Now, if we look again to see the pyramid of priorities that I created in November 2023 when Panos Panay (head of hardware) left to go to Amazon. My two cents for this move:
1/ Microsoft needs an AI consumer strategy. Not only to increase its market share, but also to fend off OpenAI
2/ AI is important for Google, but never as important as classical search (ie. its cash cow)
3/ OpenAI is looking to build AI devices (smartphones?) and chips, hence trying to build a real company. On the other hand, Microsoft wants to make new things (ie. GenAi) a feature.
Classic strategy moves. LINK
Brands go Direct
Selena Gomez, the owner of Rare Beauty, hired financial experts to sell her company for approx. $2 billion.
Despite the potential sale, Gomez plans to remain involved in the business. Rare Beauty, launched in 2020, gained popularity with products like liquid cosmetics and a viral blush on TikTok. This move reflects the mixed outcomes of celebrity ventures in the beauty industry.
Soon we’ll have this kind of initiative from other influencers: Mr. Beast, Khaby Lame, or Selly. LINK
Jensen Huang (NVIDIA) is the new Taylor Swift
1/ At Nvidia's annual developer conference, CEO Jensen Huang unveiled the B200 chip, touted as 30 times faster in certain tasks than its predecessor, aiming to maintain Nvidia's 80% AI chip market share.
2/ Amidst high expectations, Nvidia also introduced software tools to facilitate AI model sales and expanded into software for 3-D world emulation and partnerships for design applications.
3/ If you are an old reader of #onStrategy you probably know by now that the actual chip (ie. H100) was developed before the Generative AI wave and another one was in development, hence the announcement. LINK
Boeing's brutal 2024
1/ Boeing has faced a significant crisis due to recent safety incidents, starting with an Alaska Airlines Boeing 737 MAX-9 that had to make an emergency landing due to a door malfunction. This event led to increased scrutiny over Boeing's safety standards and procedures, highlighting the urgency of addressing these concerns within one of the world's largest airplane manufacturers.
2/ Following the incident, the Federal Aviation Administration (FAA) took decisive action by temporarily grounding the 737 MAX-9 model and initiating a thorough investigation into Boeing's quality control processes. This step reflects the serious nature of the safety issues at hand and Boeing's responsibility to ensure the integrity of its aircraft. The grounding order aimed to prevent further incidents and restore public confidence in air travel safety.
2/ As Boeing navigates these challenges, the company's response and the aviation industry's regulatory scrutiny underscore the broader implications for passenger safety and the reputation of one of the leading aircraft manufacturers. The situation calls for a concerted effort to address and rectify the identified safety issues, reinforcing the paramount importance of maintaining strict safety standards in the aviation industry.
I am skeptical that Boeing can address all challenges because the problems that come from design in aviation last some good years. Reuters, QZ
Artificial Intelligence
Apple is getting serious about AI
1/ Apple's foray into generative AI is highlighted by their development of the MM1 model, capable of analyzing images and text. This marks a significant step for a company traditionally seen as cautious in AI, suggesting a move towards more sophisticated AI capabilities.
2/ The MM1 model, detailed in a research paper, indicates Apple's growing investment in AI technology, potentially leading to advanced applications in their products. With generative AI rapidly evolving, Apple's initiatives like MM1 and possible collaboration with Google's Gemini model showcase their strategic approach to integrating AI technology while maintaining a focus on user privacy and device integration.
3/ I believe that for on-device inferences Apple will use its model and for complex ones, it will work with Google Gemini. More to find in June at WWDC. Paper, Wired.
Google DeepMind unveils Tactic AI: a football AI coach
1/ Google DeepMind has partnered with Premier League club Liverpool to develop TacticAI, an artificial intelligence football tactics coach, focusing on improving player positions during corner kicks—a crucial scoring opportunity. The technology, which leverages geometric deep learning from over 7,000 corner kicks in the English Premier League, received approval from human experts in a study published in Nature Communications.
2/ This collaboration underscores the expanding role of AI in sports strategy, offering insights into the game's dynamics and potential applications in other fields such as robotics and traffic coordination. While still in its prototype phase, TacticAI's recommendations were favored by Liverpool's analysts 90% of the time over existing strategies, highlighting its potential to enhance tactical decision-making in football.
3/ The project is part of a broader movement to incorporate sophisticated data analysis in sports, exemplified by past initiatives like the Oakland Athletics' Moneyball strategy, and signals a growing interest in the applications of AI across various sports disciplines. LINK
Top generative AI mobile apps by engagement
The relationship between app downloads and active usage isn't direct. Out of 49 AI-driven mobile applications, Character AI stands out for its high user engagement, averaging 298 sessions monthly. Developed by ex-Google engineers, this platform distinguishes itself by allowing users to personalize chatbots with various traits and personalities.
Data
Algorithms drive revenue
ByteDance, the parent company of TikTok, is on track to become the world’s biggest social media group with $120bn in global sales. In the US, TikTok made last year $16bn in revenue. LINK
Temu in the USA
Almost half of Wish, AliExpress customers shop at Temu. LINK
YouTube is the KING in the USA. LINK
Things Happen
Tech job seekers without AI skills face a new reality: lower salaries and fewer roles. LINK
The year to be great, an essay by David George from a16z. LINK
LinkedIn reportedly considering adding gaming to its platform. LINK
Deloitte launches the biggest reorganization in a decade to cut costs. LINK
There’s a fake Santorini in Abu Dhabi….because of luxury travel. LINK
The lost lessons of crypto. LINK
Zombie car factories are on the rise in China as buyers opt for EVs. Remember: an EV has 5-10x less spare parts. LINK
Outside Interest
What really happens to our memory as we age? LINK
Fake elections in Russia
Programmer and election analyst Ivan Shukshin claims Putin received approximately 22 million fraudulent votes, marking the largest fraud in Russia's election history, not counting votes from occupied Ukrainian territories and e-voting. Further, Novaya Gazeta. Europe's statistical analysis suggests up to 31.6 million votes for Putin could be fabricated, nearly half of his officially reported 76 million votes. Additionally, they observed that without these alleged manipulations, Davankov would have been the runner-up in the election results. GolosInfo, Novaya Gazeta, Politico
Alzheimer’s may be caused by a build-up of fat in brain cells. LINK
Inside the glorious afterlife of Roger Federer. LINK
The more household work men do the more fertility increases. LINK
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