Corporate Taxes Poised to Rise After 136-Country Deal

 
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Nearly 140 countries agreed Friday to the most sweeping overhaul of global tax rules in a century, a move that aims to curtail tax avoidance by multinational corporations and raise additional tax revenue of as much as $150 billion annually.

But the accord, which is a decade in the making, now must be implemented by the signatories, a path that is likely to be far from smooth, including in a closely divided U.S. Congress.

The reform sets out a global minimum corporate tax of 15%, targeted at preventing companies from exploiting low-tax jurisdictions.

Treasury Secretary Janet Yellen said the floor set by the global minimum tax was a victory for the U.S. and its ability to raise money from companies. She urged Congress to move swiftly to enact the international tax proposals it has been debating, which would help pay for extending the expanded child tax credit and climate-change initiatives, among other policies.

“International tax policy making is a complex issue, but the arcane language of today’s agreement belies how simple and sweeping the stakes are: when this deal is enacted, Americans will find the global economy a much easier place to land a job, earn a living, or scale a business,” Ms. Yellen said.

The agreement among 136 countries also seeks to address the challenges posed by companies, particularly technology giants, that register the intellectual property that drives their profits anywhere in the world. As a result, many of those countries established operations in low-tax countries such as Ireland to reduce their tax bills.

The final deal gained the backing of Ireland, Estonia and Hungary, three members of the European Union that withheld their support for a preliminary agreement in July. But Nigeria, Kenya, Sri Lanka and Pakistan continued to reject the deal.

The new agreement, if implemented, would divide existing tax revenues in a way that favors countries where customers are based. The biggest countries, as well as the low-tax jurisdictions, must implement the agreement in order for it to meaningfully reduce tax avoidance.

Overall, the OECD estimates the new rules could give governments around the world additional revenue of $150 billion annually.

The final deal is expected to receive the backing of leaders from the Group of 20 leading economies when they meet in Rome at the end of this month. Thereafter, the signatories will have to change their national laws and amend international treaties to put the overhaul into practice.

The signatories set 2023 as a target for implementation, which tax experts said was an ambitious goal. And while the agreement would likely survive the failure of a small economy to pass new laws, it would be greatly weakened if a large economy—such as the U.S.—were to fail.

“We are all relying on all the bigger countries being able to move at roughly the same pace together,” said Irish Finance Minister Paschal Donohoe. “Were any big economy not to find itself in a position to implement the agreement,  that would matter for the other countries. But that might not become apparent for a while.”

 

Congress’ work on the deal will be divided into two phases. The first, this year, will be to change the minimum tax on U.S. companies’ foreign income that the U.S. approved in 2017. To comply with the agreement, Democrats intend to raise the rate—the House plan calls for 16.6%—and implement it on a country-by-country basis. Democrats can advance this on their own and they are trying to do so as part of President Biden’s broader policy agenda.

The second phase will be trickier, and the timing is less certain. That is where the U.S. would have to agree to the international deal changing the rules for where income is taxed. Many analysts say that would require a treaty, which would need a two-thirds vote in the Senate and thus some support from Republicans. Ms. Yellen has been more circumspect about the schedule and procedural details of the second phase.

Friction between European countries and the U.S. over the taxation of U.S. tech giants has threatened to trigger a trade war.

In long-running talks about new international tax rules, European officials have argued U.S. tech giants should pay more tax in Europe, and they fought for a system that would reallocate taxing rights on some digital products from countries where the product is produced to where it is consumed.

The U.S., however, resisted. A number of European governments introduced their own taxes on digital services. The U.S. then threatened to respond with new tariffs on imports from Europe.

The compromise was to reallocate taxing rights on all big companies that are above a certain profit threshold.

Under the agreement reached Friday, governments pledged not to introduce any new levies and said they would ultimately withdraw any that are in place. But the timetable for doing that has yet to be settled through bilateral discussions between the U.S. and those countries that have introduced the new levies.

Even though they will likely have to pay more tax after the overhaul, technology companies have long backed efforts to secure an international agreement, which they see as a way to avoid a chaotic network of national levies that threatened to tax the same profit multiple times.

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The Organization for Economic Cooperation and Development, which has been guiding the tax talks, estimates that some $125 billion in existing tax revenues would be divided among countries in a new way.

Those new rules would be applied to companies with global turnover of €20 billion (about $23 billion) or more, and with a profit margin of 10% or more. That group is likely to include around 100 companies. Governments have agreed to reallocate the taxing rights to a quarter of the profits of each of those companies above 10%.

The agreement announced Friday specifies that its revenue and profitability thresholds for reallocating taxing rights could also apply to a part of a larger company if that segment is reported in its financial accounts. Such a provision would apply to Amazon.com Inc.’s cloud division, Amazon Web Services, even though Amazon as a whole isn’t profitable enough to qualify because of its low-margin e-commerce business.

The other part of the agreement sets a minimum tax rate of 15% on the profits made by large companies. Smaller companies, with revenues of less than $750 million, are exempted because they don’t typically have international operations and can’t therefore take advantage of the loopholes that big multinational companies have benefited from.

Low-tax countries such as Ireland will see an overall decline in revenues. Developing countries are least happy with the final deal, having pushed for both a higher minimum tax rate and the reallocation of a greater share of the profits of the largest companies.

 
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Bank Mergers Are On Track to Hit Their Highest Level Since the Financial Crisis

It took less than three months for a deal to be reached between Columbia Banking System and the smaller Bank of Commerce Holdings. Banks are on pace this year to merge at a level not seen since the 2008 financial crisis. It is a sharp turnaround from last year, when the economy spiraled and many regional and community banks put merger plans on the shelf. Now, bank executives are feeling more certain about what the future holds, but some are finding it hard to make it on their own. Though the economy has in many ways recovered from 2020, loan demand is still low and profits from lending are slim.

Banks have announced more than $54 billion in deals through late September, according to Dealogic. That puts industry mergers and acquisitions on pace for their biggest year since 2008, when some big banks had to sell themselves to stave off collapse. At this time last year, banks had announced just $17 billion in mergers.

Banks typically spend weeks or months turning a potential target’s loan book upside down, searching for risky loans or other red flags, before agreeing to acquire it. But the Covid-19 pandemic muddied that process. For months, lenders struggled to assess the creditworthiness of their own customers, much less those of their competitors.

“Neither potential sellers nor buyers really wanted to do a transaction last year because of the uncertainty that could be on folks’ balance sheets,” said Kevin Riley, chief executive of First Interstate BancSystem Inc. FIBK -0.17% in Billings, Mont.

But the expected wave of loan defaults never materialized, and by the end of last year, serious merger conversations resumed, according to executives and regulatory filings. This month, First Interstate FIBK -0.17% agreed to buy regional lender Great Western Bancorp Inc. in a deal that will boost its assets to more than $32 billion.

“[Banks] are no longer fearful of the bottom falling out,” said Nathan Stovall, an analyst at S&P Global Market Intelligence. “They are no longer looking at a deal like trying to catch a falling knife.”2019 was also a big year for bank mergers, but more of the major regionals are in play this year. So while there are fewer deals this year than at this point in 2019, the overall value is higher than it was two years ago.

Minneapolis-based U.S. Bancorp last week said it plans to buy MUFG Union Bank’s core retail-banking operations, boosting its presence on the West Coast. Another major regional, Citizens Financial Group Inc., said in July that it plans to buy Investors Bancorp Inc. Investors Bank had shelved merger talks with another bank when the pandemic hit in 2020, according to regulatory filings.

The Federal Reserve cut interest rates to near zero when the pandemic hit, and low rates have made it more difficult for banks to profit from their bread-and-butter business of lending. The average net interest margin, a measure of lending profitability, reached a record low of 2.5% in the second quarter, according to the Federal Deposit Insurance Corp.

Smaller banks have also struggled to compete with the high-end digital offerings and technology of the megabanks.

Sacramento, Calif.-based Bank of Commerce Holdings began courting potential merger partners in the spring of 2021. The board and management of the $1.9-billion-assets bank had for years considered different options to overcome ever-narrowing industry margins, including being acquired by a larger bank, CEO Randy Eslick said. It took less than three months to iron out a deal with $18 billion Columbia Banking System Inc. of Tacoma, Wash.

The deal was announced in June, and the combined bank will have the resources to invest in technology and other areas—trust departments, wealth management, specialty lending—that the smaller Bank of Commerce wouldn’t have been able to fund on its own.

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What impact will the boom in bank mergers have on customers? Join the conversation below.

“Those types of things bring technology to the table that we could not afford to,” Mr. Eslick said. “At the end of the day, we have more arrows in our quiver.”

The pressure to scale up has only grown more intense in recent years, said Scott Wylie, CEO of the $2 billion First Western Financial Inc. in Denver. In July, First Western said it would buy the parent company of a smaller bank, the nearby Rocky Mountain Bank.

“For a $300- or $500- or $700-million bank, it used to be you could have a nice little business that could go for a long time,” Mr. Wylie said. “These days, that’s really hard.” Conway, Ark.-based Home BancShares Inc. said this month it would buy Happy Bancshares for more than $900 million. Within weeks, CEO John Allison got pitched another deal.

“Someone said to me, ‘Johnny, the body hasn’t even gotten cold yet…and they’re bringing all these other deals,’” Mr. Allison said.

By: Orla McCaffrey at orla.mccaffrey@wsj.com

Source: Bank Mergers Are On Track to Hit Their Highest Level Since the Financial Crisis – WSJ

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Related Contents:

To Reimagine The Student Experience, Think Like A Tech Company

With these five mindset shifts, higher-ed institutions can immerse digital learning into their strategies and operations, reveals Tij Nerurkar, Business Leader for Cognizant’s Education practice.

The news that online learning platform 2U is acquiring edX, a nonprofit platform run by Harvard and MIT, is yet another sign of the momentum of digital learning.

Among the deal’s synergies is 2U’s access to edX’s global learner base of 39 million registered users and 120 million annual website visitors. This increases 2U’s reach and stands to lower student acquisition costs, which typically account for as much as 20% of online program managers’ revenues.

Often overlooked amid the headlines, however, is the reality that technology is only part of the change that digital learning is inflicting on higher education. Equally important is the change in mindset among colleges and universities as they shape the direct-to-consumer (DTC) learning experiences that will engage today’s students.

How to make the higher-ed shift

To reimagine the college experience and make the transition to digital learning, higher-education leaders need to think like a tech company would. The following mindset shifts will propel them forward to immersing digital learning into their strategies and operations:

  • Out with the old culture, in with the new.

This change is among the toughest for colleges and universities to execute. Many university leaders we talk with focus exclusively on the technology that the DTC model requires. But the reality is that DTC is an outside-in approach that puts the student experience first, ahead of any administrative and departmental priorities. It brings changes that ripple across campuses, especially the institutional mindset.

Thriving in today’s higher-education environment requires all campus functions — from recruitment and admissions to financial aid and academics — to move quickly and in seamless, connected ways. Reimagining the student experience will require organizational changes that break down siloes and emphasize collaboration.

  • Be willing to take risks.

While bold moves don’t come naturally to higher-ed institutions, they can be an important differentiator. For example, when the pandemic halted college entrance exams, a nonprofit testing organization used the hiatus to overhaul the paper-based exams that millions of students took annually at its 7,000 centers. Our team built a new-generation platform that digitized the entire testing workflow, including online and mobile apps designed to appeal to Gen Z learners accustomed to multitasking and virtually interacting with their peers. As higher ed begins to emerge from the pandemic, the company is ready with a business model fit for today’s students.

  • View the CIO’s role as strategic.

In our recent research, higher-ed leaders said they believe industry disruption will only accelerate; however, we see too many higher-ed institutions that still limit their CIOs to overseeing back-office operations. A talented CIO can help institutions think out of the box by spotting new business models and investment opportunities to drive enrollments and revenue.

For example, Arizona State University’s widely admired CIO helped ASU break ahead early in online learning with innovative programs like its Global Freshman Academy. By providing CIOs with a seat at the table, higher-ed institutions and their governing boards open themselves to emerging ideas such as adopting blockchain for digital credentials or applying mixed-reality simulations to learning.

  • Reassess your marketing strategies.

Glossy direct-mail brochures are a common and costly rite of passage. The median public university spends 14% of its marketing and recruiting budget on student lists purchased to identify prospects, with one public university’s student data costs topping $2 million from 2010 to 2018. Building predictive analytics capabilities can help organizations reach targeted student populations more intelligently and fill seats more effectively than the basic demographics of lists.

For example, St. Mary’s College credits predictive analytics with increasing its applicant pool. When data showed that prospective students who visited the Maryland campus were more likely to enroll, St. Mary’s doubled down on personalized campus tours that deliver a more on-brand experience. Investing in data modernization, automation and robust platforms requires greater capital investments upfront, but it also creates better and long-lasting pull as universities seek to attract lifelong learners.

  • It takes a platform.

The single biggest lesson to learn from educational technology players is the ability to respond to market conditions with agility, and platforms are at the heart of that flexibility. Ed-tech companies are able to pivot quickly and scale their business models in new directions.

For instance, 2U built momentum and scale by positioning itself not just as a provider of online degree classes for individual students but also as a provider of cloud-based software as-a-service (SaaS) platforms to colleges and universities. The strategy elevates 2U from a services-only business model to the SaaS model.

Now colleges and universities are beginning to take steps in the same direction: Last fall, ASU launched the University Design Institute, through which it scales the innovative approaches and solutions it has developed for its own campus to help other universities create online offerings and is even partnering on community-based projects such as supply chain improvements in Ghana and across Africa. Thinking like a tech company means investing in the right platforms and building the ability to scale.

Capitalize on higher-ed strengths

The most successful tech companies also know and relentlessly develop their strengths, which is why you don’t see Apple rolling out a social network or Netflix designing smartphones. It’s no secret that education’s disruptors offer curriculum options that are fast, dirt-cheap and job-ready. Coursera estimates students can complete a Google Professional Certificates program by studying five to 10 hours per week for eight months or less.

Ed-tech clearly knows its market strengths. At the same time, two-thirds of students between the ages of 19 and 30 still think a college degree is a good investment, whether in-person or virtually. Higher ed’s brand value remains strong in the wake of COVID-19: In another survey, 93% of students polled — both enrolled in fully online programs and studying remotely due to COVID-19 — expect a positive return on their online education investment.

The scalability enabled through digital can help colleges and universities press their pedagogic advantages and compete with online competitors’ lean operations. For example, at a time when applications to full-time MBA programs have declined, enrollment in the University of Illinois’ online MBA program has reached 4,000 — up from 114 since the program’s 2016 launch.

The key to capitalizing on the momentum of digital learning is to reimagine a student experience that taps into today’s youth by reshaping your institution’s mindset and approach to education.

Download our latest research report “The Work Ahead in Higher Ed: Repaving the Road for the Employees of Tomorrow.”

Kshitij (Tij) Nerurkar is the North America leader for Education Business at Cognizant. For over 25 years, Tij has advised and implemented digital learning solutions across private and public sector clients on a global basis. In his current role, he helps educational institutions and ed-tech companies develop and implement digital strategies to transform their business model, reimagine learner experience and drive skill enablement. Previously, Tij was the Head of Cognizant Academy in North America. In this role, he was responsible for developing industry partnerships for the Academy and worked as a core member of the talent team to help bridge the reskilling gap through innovative synergistic business models. Tij has a bachelor’s degree in mechanical engineering and a master’s degree in management studies from the University of Bombay, India, and he has completed a sales and leadership program at Harvard University. Tij is also on the executive learning council of the Association for Talent Development (ATD). He can be reached at Kshitij.Nerurkar@cognizant.com

Source: To Reimagine The Student Experience, Think Like A Tech Company

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How Investing in Strategic Partnerships Can Help Grow Your Business

How Investing in Strategic Partnerships Can Help Grow Your Business

The best entrepreneurs understand the power of people. Whether thinking about accessible healthcare or, more broadly, startup success, collaboration and partnerships have always been vital, even before the pandemic strengthened the need for a collective approach.

Of course, for entrepreneurs looking to scale their business, cash is a critical piece of the puzzle. For obvious reasons, access to capital enables a business to grow, whether that’s investing in research and development (R&D), expanding overseas, or hiring top talent.

But capital shouldn’t be treated as a silver bullet. Instead, founders should turn their attention toward creating strong, strategic partnerships to drive business growth. Working with other established organisations builds credibility, allowing businesses to make further connections and expand their operations.

Entrepreneurs, though, should learn exactly how to unlock beneficial relationships that will ultimately set them up for long-term victory. Partnerships must be win-win and goals aligned so that everyone comes out as beneficiaries.

Why connections matter.

When executed wisely, strategic partnerships can foster business growth. With the potential to form a critical part of any growing business, these partnerships benefit startups and corporates alike. For large corporations, startups and scaleups can fuel innovation; for early-stage founders, big companies can enable fresh revenue, scaling possibilities and credibility.

With established partners come established networks. Existing knowledge, suppliers and customers can make selling products on a larger scale much easier to achieve. This empowers startups to scale quickly, with that revenue used to reinvest in operations and innovation, fuelling further growth and making it easier to establish new business relationships with a wider pool of organisations.

What’s also important, particularly if operating in a crowded space such as healthcare, is the potential for impact. Healthcare solutions – rightly or wrongly – are often judged by the number of patients using them. So, establishing key strategic partnerships – as we’ve done with Microsoft, Allianz and Portuguese healthcare provider Médis – provides an avenue to millions of patients.

Infermedica experimented with different business models, but eventually settled on a B2B strategy over B2C as we had the potential to reach more patients through a partnership network. This accelerated on our goal to bring more accessible healthcare to all. Strategic partnerships enable startups to quickly build credibility and cut through loud crowded markets.

Investor partnerships can play a role as well. Relationships don’t need to simply need to be between providers, but investors can bring knowledge, connections and consultancy which can help startups to overcome growing challenges and open doors that may otherwise remain closed until certain milestones around size, revenue and customers have been reached. What’s key is ensuring both sides remain committed to moving forward together.

How to unlock the opportunity.

But what’s the best way to go about creating these relationships? For founders, the first step to achieving this is to remember that although partnerships are sealed between companies, they’re created by people and that human connection has to be built first. Talk to the potential partner to understand what they are truly trying to achieve and how a partnership could help them solve it.

Similarly, founders must understand their own goals and what they need from any relationship to ensure they keep progressing towards it. When discussions are open and the people are looked after, great relationships are forged.

Developing a partner program at an early stage: creating a network of trusted resellers and innovative partners also allows entrepreneurs to explore opportunities in their immediate area and beyond. Indeed, European founders shouldn’t simply look within their own country or continent for partnerships, by looking further afield they open themselves up to new ways of thinking and opportunities.

Partner programs and ecosystems establish a feedback community, each organization provides feedback which improves each other’s offerings, leading to greater growth and credibility for all. This also drives thoughts around integration, how compatible one offering is with another to ensure it truly adds value in a real-world environment. Collaboration with partners enables entrepreneurs to see how their product fits into the bigger picture which fuels wider innovation.

For example, Infermedica’s partner program enables organizations from all aspects of healthcare to collaborate with us and access our AI technology, enhancing and diversifying services which offer better end-user outcomes. Of course, there is still some way to go and things will never stop evolving. The top SaaS companies have on average around 350 integrations as they understand all of the potential engagement points and are establishing ecosystems that reflect them. The key takeaway: when creating partner ecosystems, always keep in mind how an end-user could potentially interact with your offering.

Take your time.

As in life, building a long-last relationship takes a lot of time and effort. So, while it can be tempting to rush into an exciting partnership or program, it’s vital to take your time to build trust and establish clear boundaries. Drawing on our own experience, it took more than a year to establish partnerships with Microsoft and Allianz, and it’s an ongoing process of building mutual trust and finding new ways to collaborate.

Remember that there should be no A and B side in partnerships. Each party brings their own benefits to the table. Combining knowledge and resources makes the relationship greater than the sum of its parts, delivering greater value to customers, industry and economy.

At all times, specificity is key to success. Be sure that the partnership is truly feeding into your overall strategy and that you have all the necessary resources to support you on your journey. Plan it well and take your time. It’s a long-term strategy that requires patience, commitment and perseverance. Rome was not built in a day, but the foundations of a long lasting relationship could start tomorrow.

Keep your goals in mind and ensure you’re going into every conversation with completely open eyes because when you find those strategic connections that just work, the opportunity for growth is truly great.

By: Tomasz Domino / Chief Operating Officer, Infermedica

Source: How Investing in Strategic Partnerships Can Help Grow Your Business

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Critics:

A strategic partnership (also see strategic alliance) is a relationship between two commercial enterprises, usually formalized by one or more business contracts. A strategic partnership will usually fall short of a legal partnership entity, agency, or corporate affiliate relationship. Strategic partnerships can take on various forms from shake hand agreements, contractual cooperation’s all the way to equity alliances, either the formation of a joint venture or cross-holdings in each other.

Typically, two companies form a strategic partnership when each possesses one or more business assets or have expertise that will help the other by enhancing their businesses. This can also mean, that one firm is helping the other firm to expand their market to other marketplaces, by helping with some expertise.

According to Cohen and Levinthal a considerable in-house expertise which complements the technology activities of its partner is a necessary condition for a successful exploitation of knowledge and technological capabilities outside their boundaries. Strategic partnerships can develop in outsourcing relationships where the parties desire to achieve long-term “win-win” benefits and innovation based on mutually desired outcomes.

No matter if a business contract was signed, between the two parties, or not, a trust-based relationship between the partners is indispensable. One common strategic partnership involves one company providing engineering, manufacturing or product development services, partnering with a smaller, entrepreneurial firm or inventor to create a specialized new product. Typically, the larger firm supplies capital, and the necessary product development, marketing, manufacturing, and distribution capabilities, while the smaller firm supplies specialized technical or creative expertise.

References

Why Your Workforce Needs Data Literacy

Organizations that rely on data analysis to make decisions have a significant competitive advantage in overcoming challenges and planning for the future. And yet data access and the skills required to understand the data are, in many organizations, restricted to business intelligence teams and IT specialists.

As enterprises tap into the full potential of their data, leaders must work toward empowering employees to use data in their jobs and to increase performance—individually and as part of a team. This puts data at the heart of decision making across departments and roles and doesn’t restrict innovation to just one function. This strategic choice can foster a data culture—transcending individuals and teams while fundamentally changing an organization’s operations, mindset and identity around data.

Organizations can also instill a data culture by promoting data literacy—because in order for employees to participate in a data culture, they first need to speak the language of data. More than technical proficiency with software, data literacy encompasses the critical thinking skills required to interpret data and communicate its significance to others.

Many employees either don’t feel comfortable using data or aren’t completely prepared to use it. To best close this skills gap and encourage everyone to contribute to a data culture, organizations need executives who use and champion data, training and community programs that accommodate many learning needs and styles, benchmarks for measuring progress and support systems that encourage continuous personal development and growth.

Here’s how organizations can improve their data literacy:

1. LEAD

Employees take direction from leaders who signal their commitment to data literacy, from sharing data insights at meetings to participating in training alongside staff. “It becomes very inspiring when you can show your organization the data and insights that you found and what you did with that information,” said Jennifer Day, vice president of customer strategy and programs at Tableau.

“It takes that leadership at the top to make a commitment to data-driven decision making in order to really instill that across the entire organization.” To develop critical thinking around data, executives might ask questions about how data supported decisions, or they may demonstrate how they used data in their strategic actions. And publicizing success stories and use cases through internal communications draws focus to how different departments use data.

Self-Service Learning

This approach is “for the people who just need to solve a problem—get in and get out,” said Ravi Mistry, one of about three dozen Tableau Zen Masters, professionals selected by Tableau who are masters of the Tableau end-to-end analytics platform and now teach others how to use it.

Reference guides for digital processes and tutorials for specific tasks enable people to bridge minor gaps in knowledge, minimizing frustration and the need to interrupt someone else’s work to ask for help. In addition, forums moderated by data specialists can become indispensable roundups of solutions. Keeping it all on a single learning platform, or perhaps your company’s intranet, makes it easy for employees to look up what they need.

3.Measure

Success Indicators

Performance metrics are critical indicators of how well a data literacy initiative is working. Identify which metrics need to improve as data use increases and assess progress at regular intervals to know where to tweak your training program. Having the right learning targets will improve data literacy in areas that boost business performance.

And quantifying the business value generated by data literacy programs can encourage buy-in from executives. Ultimately, collecting metrics, use cases and testimonials can help the organization show a strong correlation between higher data literacy and better business outcomes.

4.Support

Knowledge Curators

Enlisting data specialists like analysts to showcase the benefits of using data helps make data more accessible to novices. Mistry, the Tableau Zen Master, referred to analysts who function in this capacity as “knowledge curators” guiding their peers on how to successfully use data in their roles. “The objective is to make sure everyone has a base level of analysis that they can do,” he said.

This is a shift from traditional business intelligence models in which analysts and IT professionals collect and analyze data for the entire company. Internal data experts can also offer office hours to help employees complete specific projects, troubleshoot problems and brainstorm different ways to look at data.

What’s most effective depends on the company and its workforce: The right data literacy program will implement training, software tools and digital processes that motivate employees to continuously learn and refine their skills, while encouraging data-driven thinking as a core practice.

For more information on how you can improve data literacy throughout your organization, read these resources from Tableau:

The Data Culture Playbook: Start Becoming A Data-Driven Organization

Forrester Consulting Study: Bridging The Great Data Literacy Gap

Data Literacy For All: A Free Self-Guided Course Covering Foundational Concepts

By: Natasha Stokes

Source: Why Your Workforce Needs Data Literacy

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Critics:

As data collection and data sharing become routine and data analysis and big data become common ideas in the news, business, government and society, it becomes more and more important for students, citizens, and readers to have some data literacy. The concept is associated with data science, which is concerned with data analysis, usually through automated means, and the interpretation and application of the results.

Data literacy is distinguished from statistical literacy since it involves understanding what data mean, including the ability to read graphs and charts as well as draw conclusions from data. Statistical literacy, on the other hand, refers to the “ability to read and interpret summary statistics in everyday media” such as graphs, tables, statements, surveys, and studies.

As guides for finding and using information, librarians lead workshops on data literacy for students and researchers, and also work on developing their own data literacy skills. A set of core competencies and contents that can be used as an adaptable common framework of reference in library instructional programs across institutions and disciplines has been proposed.

Resources created by librarians include MIT‘s Data Management and Publishing tutorial, the EDINA Research Data Management Training (MANTRA), the University of Edinburgh’s Data Library and the University of Minnesota libraries’ Data Management Course for Structural Engineers.

See also

How Entrepreneurs Are Capitalizing on Digital Transformation in the Age of the ‘New Normal’

How Entrepreneurs Are Capitalising on Digital Transformation in the Age of the 'New Normal'

The Covid-19 pandemic has carried a significant impact on the rate in which businesses are embracing digital transformation. The health crisis has created an almost overnight need for traditional brick and mortar shopping experiences to regenerate into something altogether more adaptive and remote. While some businesses are finding this transition toward emerging technology a little tricky, it’s proving to be a significant opportunity for entrepreneurs in the age of the “new normal.”

Astoundingly, data suggests that digital transformation has been accelerated by as much as seven years due to the pandemic, with Asia/Pacific businesses driving forward up to a decade in the future when it comes to digital offerings.

With entrepreneurs and new startup founders finding themselves in a strong position to embrace modern digital practices ahead of more traditional companies, we’re likely to see a rise in innovation among post-pandemic businesses. With this in mind, let’s take a deeper look into the ways in which digital transformation are benefiting businesses in the age of the new normal:

Fast, data-driven decisions.

Any digital transformation strategy needs to be driven by data. The emergence of big data as a key analytical tool may make all the difference in ensuring that startups take the right steps at the right time to ensure that they thrive without losing valuable resources chasing the wrong target audience, or promoting an underperforming product.

Enterprises today have the ability to tap into far greater volumes of data than ever before, thanks largely to both big data and Internet of Things technology. With the right set of analytical tools, this data can be transformed into essential insights that can leverage faster, more efficient and accurate decisions. Essentially, the deeper analytical tools are embedded in business operations, the greater the levels of integration and effect that may have.

By incorporating more AI-based technology into business models, it’s possible to gain access to huge volumes of big data that can drive key decisions. The pandemic has helped innovations in terms of data and analytics become more visible in the world of business, and many entrepreneurs are turning to advanced AI capabilities in order to modernise their existing applications while sifting through data at a faster and more efficient rate.

Leveraging multi-channel experiences.

Digital transformation is empowering customers to get what they want, when they want, and however they want it. Today, more than half of all consumers expect to receive a customer service response within 60 minutes. They also want equally swift response times on weekends as they’ve come to expect on weekdays. This emphasis on perpetual engagement has meant that businesses that aren’t switched on 24/7/365 are putting themselves at a disadvantage to rivals that may have more efficient operations in place.

The pandemic has led to business happening in real-time – even more so than in brick and mortar stores. Although customers in high street stores know they’re getting a face to face experience, this doesn’t mean that business representatives can offer a similar personalised and immediately knowledgeable service than that of a chatbot or a live chat operative with a sea of information at their disposal.

Modern consumers are never tied to a single channel. They visit stores, websites, leave feedback through mobile apps and ask questions for support teams on social networking sites. By combining these interactions, it’s possible to create full digital profiles for customers whenever they interact with your business – helping entrepreneurs to provide significantly more immersive experiences.

Fundraising via blockchain technology.

Blockchain technology is one of the most exciting emerging technologies today. Its applications are far-reaching in terms of leveraging new payment methods and brokering agreements via smart contracts, and while the use cases for these blockchain applications will certainly grow over the coming years, today the technology is already being widely utilised by entrepreneurs as a form of raising capital through Initial Token Offerings (ITOs), also known as Initial Coin Offerings (ICOs).

As an alternative to the use of traditional banks, venture capital firms, angel investors or crowdfunders, ITO tokens can be made available for exchanges where they can trade freely. These tokens are comparable to equity in a company, or a share of revenue for token holders.

Interested investors can buy into the offering and receive tokens that are created on a blockchain from the company. The tokens could have some practical use within the company where they can be spent on goods or services, or they could purely represent an equity share in a startup or project.

There are currently numerous companies that use blockchain technology to simply and secure its operations. From large corporations like HSBC’s Digital Vault, which is blockchain-based custody platform that allows clients to access details of their private assets to small education startups like ODEM, which aim to democratize education.

Another company that’s pioneering blockchain technology within the world of business is OpenExO, which has developed its own community-driven utility token EXOS, to help build a new transformation economy that helps companies to accelerate, democratise and internationalise their innovation.

Salim Ismail, OpenExO founder, is the former Yahoo technology innovator who developed the industry of Exponential Organizations. He has become a household name in the entrepreneur and innovation landscape, and now he launches the blockchain ecosystem that includes Fortune 500 companies, cities and even countries.

Reaping widespread rewards.

Although digital transformation could begin with a focus on just one facet of a startup, its benefits can be far reaching for employees, consumers and stakeholders alike. It could limit the mundane tasks required of workers, offer greater levels of personalisation for consumers and free up new skills to be developed in other areas of a business.

This, in turn, helps to build more engaged and invested teams that know the value of fresh ideas and perspectives. Although the natural adaptability of entrepreneurs makes the adoption of digital transformation an easier one to make than for established business owners, the benefits can be significant for both new and old endeavours.

The pandemic has accelerated the potential of emerging technologies by over seven years in some cases, the adoption of these new approaches and tools can be an imperative step in ensuring that your business navigates the age of the new normal with the greatest of efficiency.

Dmytro Spilka

By: Dmytro Spilka / Entrepreneur Leadership Network VIP – CEO and Founder of Solvid and Pridicto

Source: How Entrepreneurs Are Capitalising on Digital Transformation in the Age of the ‘New Normal’

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Critics:

Digital Transformation (DT or DX) or Digitalization is the adoption of digital technology to transform services or businesses, through replacing non-digital or manual processes with digital processes or replacing older digital technology with newer digital technology. Digital solutions may enable – in addition to efficiency via automation – new types of innovation and creativity, rather than simply enhancing and supporting traditional methods.

One aspect of digital transformation is the concept of ‘going paperless‘ or reaching a ‘digital business maturity’affecting both individual businesses and whole segments of society, such as government,mass communications,art,health care, and science.

Digital transformation is not proceeding at the same pace everywhere. According to the McKinsey Global Institute‘s 2016 Industry Digitization Index,Europe is currently operating at 12% of its digital potential, while the United States is operating at 18%. Within Europe, Germany operates at 10% of its digital potential, while the United Kingdom is almost on par with the United States at 17%.

One example of digital transformation is the use of cloud computing. This reduces reliance on user-owned hardware and increases reliance on subscription-based cloud services. Some of these digital solutions enhance capabilities of traditional software products (e.g. Microsoft Office compared to Office 365) while others are entirely cloud based (e.g. Google Docs).

As the companies providing the services are guaranteed of regular (usually monthly) recurring revenue from subscriptions, they are able to finance ongoing development with reduced risk (historically most software companies derived the majority of their revenue from users upgrading, and had to invest upfront in developing sufficient new features and benefits to encourage users to upgrade), and delivering more frequent updates often using forms of agile software development internally.This subscription model also reduces software piracy, which is a major benefit to the vendor.

Digitalization (of industries and organizations)

Unlike digitization, digitalization is the ‘organizational process’ or ‘business process’ of the technologically-induced change within industries, organizations, markets and branches. Digitalization of manufacturing industries has enabled new production processes and much of the phenomena today known as the Internet of Things, Industrial Internet, Industry 4.0, machine to machine communication, artificial intelligence and machine vision.

Digitalization of business and organizations has induced new business models (such as freemium), new eGovernment services, electronic payment, office automation and paperless office processes, using technologies such as smart phones, web applications, cloud services, electronic identification, blockchain, smart contracts and cryptocurrencies, and also business intelligence using Big Data. Digitalization of education has induced e-learning and Mooc courses.

See also

U.K. Challenger Bank Monzo Lays Off 8% Of Staff Due To COVID-19 Fallout

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U.K digital bank Monzo has confirmed plans to cut up to 120 jobs as a result of the coronavirus pandemic.

As first reported by Reuters on Wednesday, Monzo staff were informed via an internal memo that the company will be laying off up to 8% of its workforce due to the coronavirus crisis and resulting economic downturn.

“Unfortunately we haven’t been able to achieve the goal of preventing the risk of redundancy at this time. It’s genuinely heartbreaking to share the news,” the memo, written by newly-appointed CEO TS Anil, said.

A source close to the company said management had “exhausted every option” to avoid making staff redundant.

Around 300 staff have already been furloughed under the U.K. government’s job retention scheme and executives have waived some or all of their pay in response to the pandemic. Monzo co-founder Tom Blomfield deciding to not to take a salary for the next 12 months.

The company was also in April forced to shutter its Las Vegas-based customer support office.

According to Reuters, the redundancies will fall in Monzo’s Head Office and operations teams. The cuts are not linked to staff that volunteered to be furloughed in March, though a source said there could be some overlap.

Monzo, founded in 2015, has been having a rough time recently. Though it told Reuters back in February that it planned to hire around 500 people this year, the company has since been scrambling for funding, seeking to raise between £70 million and £80 million to see it through the disruption – at a 40% discount on its previous valuation of £2 billion.

In March, CEO Tom Blomfield – who has since moved on to take up the role of president – hit out at rumours about an imminent collapse, insisting “Monzo is not going bust”.

Follow me on Twitter.

I am an experienced journalist with more than a decade of experience covering the technology industry. I was previously editor of UK tech tabloid The INQUIRER, and since going freelance in 2020, I have written for a number of publications including Computer Shopper, IT Pro, TechRadar and Tes

Source:https://www.forbes.com

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Update to this review here – https://youtu.be/0cFZLQRb-kk Check out this other REALLY COOL way of managing money; https://youtu.be/oU-L1k1uo4M Welcome back to Stu’s Reviews! Today Stu takes a look at the ‘bank of the future’ – Monzo.
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