Softbank’s potential investment in Uber

Regarding Softbank’s potential investment in Uber over the weekend, Mergermarket’s research editor Elizabeth Lim has commented below about the deal:  

• Sunday’s news of SoftBank’s bid with a consortium for a significant stake in Uber shows the company’s continued effort to be the king of high-profile start-ups.
• SoftBank also owns stakes in other ride-sharing startups around the globe, including Brazil’s 99Taxis, China’s Didi Chuxing, and India’s Ola, though it does not currently have a stake in Uber’s main competitor in the US, Lyft.
• To date this year, the company has engaged in a record 29 transactions, almost 5x the number for the whole of last year, and with only one transaction having lapsed – a US$1.8 billion attempt to acquire Luxembourg - based satellite provider Intelsat in the first half of the year.
• SoftBank’s buys have been fairly representative of a market share grab taking place throughout the industry, and have ranged from medical testing start-ups (Guardant Health) to budding autonomous vehicle companies (Nauto) to artificial intelligence (Appier; Petuum) and robotics firms (Boston Dynamics; Schaft) to co-working spaces (WeWork). Investments have especially picked up following the Vision Fund’s formation and close with US$93 billion.
• Deals that have closed over just the last few months have included such ventures as a US$250 million bid with Accel for popular messaging platform Slack, a US$114 million bid with Qualcomm Ventures for autonomous robot company Brain Corporation, a bid as part of a consortium of sponsors for an undisclosed consideration of indoor farming start-up Plenty, and the full-on acquisition of US cyberdefense company Cybereason, also for an undisclosed consideration, among many others.
• Most of SoftBank’s bids have been as part of various consortia – altogether, they have taken stakes in companies worth a combined US$25 billion so far this year, with no sign of letting up on that momentum.
• Uber has attempted to move past its recent woes by resolving certain issues within its board, which paved the way for this investment to take place. With plans for an IPO in 2019, SoftBank's stake buy and two new board seats signal a move forward finally for the ride sharing company.

ICICI bank launch India’s first voice base remittance service

ICICI Bank, India's largest private sector bank by consolidated assets, today announced the launch of India's first voice-based international remittance service to enable non-resident Indians (NRIs) to send money to any bank in India.

With this new feature in the ICICI Bank's Money2India app, an NRI customer can instantly initiate a remittance to his/her existing payees in India with just a simple voice command to Apple's virtual voice assistant, Siri, on his/her Apple iPhone / iPad.

A first-of-its kind cross border remittance service by a bank in the country, it improves customer's convenience significantly as it replaces a five-step process, which was required to initiate a remittance to India earlier.

--

Alex Lew, CFA 

UOB hackathon 2017

Modular architecture: Control vs. Openness

A firm seeks to attract different partners to design and develop new components outside a platform core.

These firm's innovation activities influence each other by being reciprocal and recursive. Thus, the innovation is the demand side based.

Firm needs to have the capability to create new uses of its services and platform. Just think of Amazon who was a bookstore in the beginning, but now sells basically everything.

Today's platform market has become a dynamic mashup of unforeseen dependencies among content, devices, networks, and partners. PayPal exemplifies this change. The payment service uses a sophisticated digital platform seamlessly to integrate with websites from which music, videos, movies, application, magazines and books can be purchased.

On one hand, the platform provider seeks to maximize innovation through open innovation and layer module architecture. But on the other hand, the platform provider seeks to keep some parts of the platform under strict control. So, every layer in the digital platform include designed rules, data control and govern the platform and its components.

Network effects tends to lead to concentrated markets

Consumers prefer credit cards accepted by more merchants, while merchants prefer credit cards carried by more consumers.

An additional customer on demand side of the market will add value to the other side of the same market. In another example, more gamers on Steam platform will increase the value of game content manufacturers. More merchants accepting American Express increases the value for American Express cardholders.

This eventually leads to concentrated markets. This is why network effects typically lead to giants – Wechat, Facebook, Twitter. 

Productivity through outsourcing

Outsource outsource outsource. At your job, don't be the one who soaks up bullshit work from bosses

Many executives also spend too much time on operational details, such as the best flight to take or the seating plan at a corporate dinner. Such tasks should be delegated, if possible, to an executive assistant. Of course, the boss must be able to rely on this person to get the tasks done correctly, quickly, and politely. Once confidence is established, he or she should go to great lengths to support and retain such an assistant, who is crucial to being productive.

--

Alex Lew, CFA 

Porter’s strategy

Strategy is about choosing what NOT to do. Strategy is not just about creating nice slides. Good companies ponder daily their business mix. 

(An extract from Jeff's article)

Finally, simplification was all about reallocating resources to fund more growth and identify and solve customers' problems better. When companies are slow, it is typically a sign that their costs are in the wrong place. One of the reasons big companies fail is that they don't think they can afford something and aren't willing to free up the resources to make bold moves. We are investing heavily in making GE a digital industrial company. Last year we put about $4 billion into developing our analytics software and machine-learning capabilities and another $2 billion into building a leadership position in additive-manufacturing equipment and services—an emerging field that is going to revolutionize manufacturing. We had to run leaner in other places to make those investments.

--

Alex Lew, CFA 

Bitcoin consensus and stakeholders

Bitcoin required consensus

Consensus of rules – which kind of block exists

Consensus of history

Consensus that coins are valuable – who owns the coins

These consensuses provide incentives for bitcoins mining. Bitcoin relies on consensus, it relies on agreement by the participants and that that consensus is a fragile and interdependent thing.

Who are the stakeholders?

Miners write history, make the blocks, record transactions. Investors decide if the bitcoin has any value. Merchants and users influence its acceptance.

FAQ: Why is blockchain attractive?

Beauty of blockchain lies in common agreement

Everyone can agree upon a single published block chain that is the agreed upon history which transactions have happened.

People can agree which transactions are valid and which transactions have actually occurred.

Ability to assign IDs to things in a decentralized way.

This means there is no need for central authority. No one has the final say unlike cash, where central banks decide the volume of money.

FAQ: How do we know if a blockchain transaction is valid?

4 premise to check for transaction validity

• First, if the consumed coins are valid, that is they really were created in previous transactions. 
• Second, that the consumed coins were not already consumed in some previous transaction, this is not a double-spend.
• Third, that the total value of the coins that come out of this transaction is equal to the total value of the coins that went in. 
• And finally that the transaction is validly signed by the owners of all of the consumed coins. 

FAQ: Who guards the creation of bitcoin?

A crypto currency transaction is always valid. This is so because the user said so. He puts it in the block's history, signs it and this has to be valid.

The beauty of cryptocurrency is here - there is no need to worry if someone is entitled to create coins. Anything that's placed in the history and signed, is valid. This is where the efficiencies of transactions are derived.

Is Tencent raising its game with its credit score system?

All eyes are now on Tencent’s credit score system. But what exactly does this mean for Tencent and its nemesis, Alibaba?

Tencent’s credit score system is stealing the limelight even as onlookers anticipate Alibaba’s monthly update of its Sesame Credit. Tencent is granting some of its users access to its credit score system in the run-up to “8.8 cashless days.” This is Tencent’s latest bid to get a slice of China’s US$5.5 trillion mobile payments market.

Only QQ super members are eligible to view their credit score for the time being. This means users must pay at least 20 yuan to view their credit score. Tencent’s strategy is similar to Alibaba’s Sesame Credit back in 2015.

Accessing Tencent’s credit score is an obscure process. Users must first take note of the “Tencent credit” public number. After selecting “my credit”, users will need to enter the name and identity number. The corresponding credit score then appears; it lies within the range of 300 to 850.

This is just another chapter in the intense battle between Alibaba and Tencent

Tencent and Alibaba have been in a longstanding dispute over payment matters. But Alibaba is advancing much faster when it comes to the credit score system. In January 2015, Ant Financial Services (蚂蚁金服) officially launched the Sesame Credit score. Over the years, it has access to more services – accommodation, travel, consumption, and loans. These rapid changes make many users pay attention to Sesame Credit’s monthly updates.

Tencent has been going all out to promote WeChat payment and QQ wallet. But it has been relatively cautious when it comes to personal credit. As early as 2015, Tencent has become one of the first batches of personal credit licensing units in the Central Bank. Its credit score system’s official website has been inactive for several years.

Tencent’s credit inquiry has been kept on such low profile allegedly thanks to “Pony” Ma Huateng.

“Isn’t such product buying and selling of personal data?” Ma retorted when he was approached by the person-in-charge of the Tencent’s credit inquiry. Ma then demanded that the distribution of the product be stopped for “protecting user’s privacy.”

Ma’s views appear to have changed. In his speech at last year’s Tencent Cloud summit, he mentioned that “Tencent will keep a long-term record of every user’s credit” to protect the rights and interests of its partners.

The absence of a credit system has always been an obstacle to WeChat’s expansion in China. Establishing an in-house credit scoring system is an imperative.

Chinese consumers are more concerned about the actual utility of Tencent’s credit score system

A user’s credit score is broken down into five categories – social index, safety index, wealth index, performance index, and consumption index. These criteria are similar to Sesame Credit’s.

Tencent and Alibaba have their own characteristics and advantages when formulating their own credit systems. Alibaba’s credit data is mainly based on the large number of e-commerce transactions and the addition of financial products such as Yu’ebao (余额宝), which is more heavily weighted towards data from Internet finance.

Alibaba is less adroit when it comes to social networking features. Alibaba has worked hard over the years but the results are not always satisfactory. The latest incident was the “Circles” event. Alipay attracted an uproar when it intended to use the Sesame Credit to enter the high-end dating market. Alipay then pivoted back to focus on payment mode and finance.

Social networking is Tencent’s natural niche thanks to QQ and WeChat. WeChat has nearly 900 million monthly active users while QQ has more than 860 million monthly active users. This can provide a large number of continuous and traceable user behaviour data for Tencent. In its introduction page, Tencent credit mentioned that the user's friendships and his circle of friends are also a factor in measuring one’s credit score.

Tencent does not have the same electronic business platform that Tmall and Taobao have. These platforms can help obtain consumption data. The evaluation of the user’s consumption index mainly comes from Tencent mobile QQ, WeChat payment, and shopping behaviour. Tencent may have access to JD.com’s consumption data thanks to QQ’s and WeChat’s connections with the e-commerce company. This means greater prospect of opening up “small credit” with JD.com.

An average user is more concerned about the practicalities of the credit score. Tencent’s credit score system has limited application for the moment as it is launched not too long ago. Aside from micro credit loan products and Everbright Bank credit card application, other functions such as mobile phone repair and car insurance instalment payment are not the average user’s concern. “Mobike deposits” are capturing substantial attention even though nothing concrete has been unveiled.

How Tencent’s credit score system can sharpen its competitive edge remains up in the air

Bike-sharing companies, including Ofo and BlueGogo, have introduced the Sesame Credit to waive off deposit fees. Mobike is unlikely to tap on the Sesame Credit thanks to Tencent. Mobike’s 299 yuan security deposit continues to draw heavy criticism. Users stand to gain if their accumulated points could leverage on Tencent credit to waive off deposit fee.

Tencent credit score can also be increased through supplementary work and education information. This is not too different from Alibaba’s Sesame Credit. But Tencent risks attracting the lawbreakers’ attention as its application scenarios expand in the future. Ant Financial once refuted the “swiping scores” claim by insisting that the so-called “gaining points” method is implausible. Tencent risks facing the same fate; it must be ready for this.

Tencent and Alibaba are waging a new battle in the credit score scene. But it remains uncertain whether Tencent, who has a slower start than Alibaba, can still wield the similar counter attack move it did with its WeChat payment years ago.

追求成功，活出精彩

每个人在一生中都有很多目标。从小的说起，比如在周末之前清理完车库，到取得改变生命的成就，像是在10年内存到2万美元这样。

只要相信成功，你的精神力量将会帮助你完成目标，作为它的衍生品，你能通过鼓励别人对你的信任来建立一个支持系统。

不要仅仅是熟记。事实上，这个方面可以少做点，但是你要加强自身创造性思维的能力。

通过现实记忆，你能掌握一些信息，并把它们储存在大脑中便于日后的回忆。但是这些记忆中的许多事件最终都会变得如同车库里的破旧盒子般：只在你需要的时候才捡起它们。

另一方面，创造性思维则专注于寻找创新的解决方案。这意味着要提出新的、改进的方法来处理任何问题或挑战。

尽管记忆事实本身很重要，但是创造性思维给了我们快速且有效地克服任何障碍的能力。现实记忆使我们的大脑变得呆滞不堪;而创造性思维却使我们的大脑具有适应性和灵活性。

这意味着成功人士总是专注于提高他们的创造性思维，而不是仅仅去尝试记住事实。

你可以用这三种行动来激发创造性思维:接受新思想，尽可能多地抓住尝试新事物的机会，每天早上花十分钟来反思这个问题，“我今天怎么才能做得更好呢?”

有种办法，可以让你通过多样化的生活方式来促进这三种行为，做各种各样展现自己不同个性的工作。

交优秀的朋友

你可能很熟悉“人如其食”这句话，这意味着如果你想拥有一个健康的身体，你应该遵循健康的饮食习惯。同样的想法也适用于你的心态:你的思维方式会对你所看到和听到产生影响。你的生活环境，朋友，你所阅读的文章都会影响你的思维过程。

例如，长时间与喜欢说流言蜚语的人交往会更容易使你变得八卦。相反，与那些只对别人说积极的话语的人长期相处会让你也变得和他们一样。

没错，你正被与你交往的人影响着呢。

你要让周围充满优秀的人才，他们不仅仅有雄心壮志而且相信你的梦想，并认为你能最终能实现它们。你身后有这样的力量来支撑，你就能沿着通往成功的或许带些荆棘的漫漫长路上前进。

保持积极向上的态度

一个保持积极向上的心态的方法是确保你做了在道德上你认为是正确的事情。当人们做一些有悖道德的事情时，比如对某个重要的人撒谎，或是对朋友不问自取时，这会使你内疚，并侵蚀着你的内心。这些负面的想法总是伴有一个恶劣的态度。另一方面，对自己的决定感到快乐和舒适，会建立更多的信任，从而维持你更好的心情。

但最重要的是，没有什么能像相信你在生活中所做的事情是重要的并且有价值的那样让你拥有一个积极的态度。自然而然，这会成为你永久的信心来源，让你毫无理由怀疑自己。

消灭恐惧

“恐惧都源自于你的思想”这个观点，经常被用来帮助人们来克服他们对接近某些情况不明事件的犹豫。

正如我们的免疫系统需要适当的营养来发挥作用，我们的信心需要持续的支持，以确保它尽可能可靠和有效。

一个建立信任的最好方法是什么？开始表现自信，即使你感觉不到。起初，这将很难维持，但随着时间的推移，就变得自然了。这是因为你可以按照你想要的方式来控制自己的情绪。

接受失败亦是生活的一部分

成功的人在面对挫折后会振作起来。当失败者忙于为他们失败寻找借口时，成功的人正在掸去灰尘，寻找并尝试另一种方法。

每一个成功的人都会遇到同样的问题比如反对、气馁、挫折和不幸的个人遭遇，正是这些处理挑战的方式使他们变得出类拔萃。

Mindset change impacts lives and success

People with a fixed mindset hinder their development due to their belief in “natural” talents and their adherence from failure. People with a growth mindset perceive challenges as an opportunity to achieve their dreams. 

Fixed mindset

Many people believe talent is the most important aspect of a person’s abilities. They believe that a person’s talents are set from the moment they were born; a person is, naturally, either intelligent and talented or stupid and inefficient, and this is unchangeable.

Companies such as Enron and McKinsey adopt this way of thinking. Their HR departments invest large sums of funds into searching for these “naturals” at schools. These hired graduates are expected to immediately boost the company’s results with their abilities. Since these graduates are expected to know it all, they receive little to no training and do not have any career progression.

As a result, their performance is evaluated critically and constantly. This invokes the question: Are these graduates as smart as they appear or will their mistakes eventually reveal their lack of talent to finish the job?

Employment under fixed mindset

Employers with this mindset believe employees who are not perfect from Day 1 will never improve, hence, it would be more business-sound to fire them. Furthermore, such employers believe that people should only do things they have a natural ability for. As they are quick to determine whether people are good or bad at something, they assume they themselves are being judged as well.

Real life examples of both mindsets 

Those with a fixed mindset seek validation from other people, while those with a growth mindset seek progress. For example, Lee Iacocca, CEO of Chrysler Motors, only rose to his position when it was on the verge of closure. Fortunately, with the help of his decision-making skills and good judgement of people, the company rose to its current pinnacle.

However, his actions changed after the company’s huge success. He became dependent on the number of awards he had, boasting his high position in the company and channelling his energy into his image than the company’s development. Eventually, he relied on others’ approval of him to survive.

Iacocca demonstrated a fixed mindset. Others’ opinions of him mattered more than the company’s progress. He seeks to appear smart and gifted in front of people, instead of coming up with plans to improve his company.

Another contrasting example would be that of Lou Gerstner. Gerstner became CEO of IBM when it was closing down. Bogged down with a fixed mindset, much time and energy were wasted on internal conflicts instead of working and planning together. Every man for himself, this thinking would eventually lead to its downfall.

Subsequently, Gerstner dissolved the company’s hierarchies and built on teamwork, encouraging peer support within teams. With added communication platforms within the company, he lowered his position to that of his employees and this allowed him to have personal interactions with his workers.

Gerstner’s growth mindset allowed to him to create a conducive working environment. This pulled the focus away from the individual employee’s success and towards shared progress. One for all and all for one, the company thrived.

Fixed mindset versus growth mindset

People with a fixed mindset shun problems; those with a growth mindset embrace and work them.

Many things in life can only be achieved by working hard. When people with a fixed mindset face challenges, they view them only as risks – the more they work on something, the harder their image shatters if they fail it. As such, people with a fixed mindset can never outdo themselves. They fail to doubt their own talents and work on their flaws.

One prime example would be that of Nadja Salerno-Sonnenberg. At the age of 10, Nadia was famous for her violin skills. When she turned 18, she held her violin incorrectly and her fingers grew stiffer. She was so afraid of failure she could not learn anything new and eventually, she abandoned the one thing she loved so much.

Actor Christopher Reeve was predicted by doctors, to be paralysed neck down for the rest of his life after his accident. However, his growth mindset allowed him to overcome this and he took hold of his situation. With a stringent and tiring training plan, he made the impossible possible. He could eventually move his entire upper body after practice.

Challenges give people with a growth mindset the opportunity to pursue purpose-filled actions. The more dejected they are, the more energy they put into fighting against – and rewriting – their fate. Like Reeve, they strive to make the impossible possible.

People with a fixed mindset hinder their development due to their belief in “natural” talents and their adherence from failure. People with a growth mindset perceive challenges as an opportunity to achieve their dreams. The more failure they face, the more effort they put in to fight against it. Similar to Reeve, they fight to make the impossible possible. By facing our own failures and working hard, we can realize our potential to the maximum, and develop a growth mindset.