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The Financial Times is looking for 100 European companies, individuals and organisations that are taking advantage of new technologies in groundbreaking ways.


“There are fears that Europe is falling behind in digital transformation, just as the so-called fourth industrial evolution begins to change the business models of traditional industries in noticeable ways “, 

Patrick McGee wrote for the Digital Economy section in the Financial Times June edition. The predicted efficiency gains from the adoption of new technology are so great that, at first glance, they appear to be typos. PwC, for instance, forecasts the shift to contribute as much as 14 per cent to global GDP gains by 2030 — or “about $15tn in today’s value”. However, digitalisation has so far been patchy. According to PwC, two-thirds of the 1,155 global manufacturing companies they surveyed “have just started or have not yet embarked on their digital transformation”.

Europe, in particular, is lagging behind: just 5 per cent of manufacturers in Europe, the Middle East and Africa (Emea) are “digital champions,” PwC says, versus 11 per cent in the Americas and 19 per cent in Asia-Pacific. On the other hand, Europe has strong foundations in fields such as artificial intelligence (AI) and cryptography, says Siraj Khaliq, a partner at Atomico, a technology investment group, which compiles an annual report, The State of European Tech. Over the past two years, he says, industry has been increasingly tapping into these innovations with small acquisitions happening all the time. “The trajectory is very strong for these areas, especially with government policies of encouraging entrepreneurship with tax breaks and other measures,” Mr Khaliq adds.

More than 30 national and regional initiatives for digitalising industry have been launched across the continent over the past few years.”

The FT is compiling a list of Europe’s best examples of digital transformation


Find out how to get involved

Please see details below for how to nominate a digital transformation champion to be considered for this list on #FTEuropeGrowth.”






Windows of opportunity


This world is moving away from a system of national markets


Isolated from one another by trade barriers, distance or culture, advances in technology and mass communication have made it possible, for people in one part of the world to watch happenings in far off places. Theses are often used interchangeably but they refer to different processes. The process of integration on a worldwide scale of markets and production, has a single accepted definition used for it, globalisation. For it, national boundaries are not important economically; free trade and movement of labour and other resources result in the breakdown of these boundaries and one big global marketplace.

On the other hand, referring to resources is internationalisation for which the increased links between nation states, with respect for trade and movement of this resources in participating and co-operating with other nation states to a common end.The regional trade agreements and regionalism are important in this process the EU is an example.

Hyperglobalisation – an extreme view process where the world market is a borderless global market. Consisting of powerless nation states and powerful multinational corporations. The process of globalisation brings changes in both the power of countries and companies and in national characteristics and culture, generally accepted in a view called transformationalism.

The main international organisation concerned with globalisation are the World Trade Organisation, the International Monetary Fund, the World Bank and the OECD. The OECD categories members into three bands high income countries, which include the EU, North America and Australia; middle income countries, which include East Asia and the Pacific Rim, and low-income countries, which include South Asia and Africa.




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A result in increased exposure to global forces

Businesses operate under the process of globalisation that is constantly changing. It used to mean the westernisation of the developing world but the newly emerging economies  such as Brasil, China and India are redefining processes and institutions.

Businesses need an understanding of the processes in the global context and even if they do not trade directly with other countries, they might be affected by domestic shortage of skilled labour or may be subject to developments on the global financial markets.

All businesses need to be aware of their global context

Globalisation is here to stay and despite apparent retreat into nationalism in light of economic conditions in 2008, in 1980, the share of the developing countries in world trade was 22 per cent, by 2005 it was 32 per cent and the World Bank predicts that their share will be 45 per cent by 2030.

Expect change


The world is a different place now


Business flows is in the opposite direction and often between developing countries. One indication of this the number of companies from the emerging nations appears in the Fortune 500 list of the world’s biggest companies.

Substantial amounts of foreign trade and hence movements of currency, result from the activities of very large multinationals companies or enterprises.

The transnationality index gives the measure of an MNE’s involvement abroad by looking at three ratios foreign asset/total assets, foreign sales/total sales and foreign employment.

As such it captures the importance of foreign activities in its overall activities. These multinationals are huge organisations and their market value often exceed the GNP of many of the countries in which they operate.

There are over 60000 MNE’s around the world and they are estimated to account for a quarter of the world’s output.

The growth in MNE’s is due to relaxation od exchange controls , making it easier to move money between countries, and the improvements in communication, which makes it possible to run a world-wide business from one country.


Dealing with diversity


As a result of the suits and the publicity surrounding it, employee especially managers must attend sessions about the advantages of a multiracial clientele.

The reasons, over and above human decency, are pragmatic.

One is the shifting face of the workforce, as white males, who used to be the dominant group, are becoming a minority.

A survey of several hundred American companies found that more than three-quarters of new employee were non white – a demographic shift that is also reflected to a large extend in the changing pool of customers.

Another reason is the increasing need for international companies to have employee who not only put any bias aside to appreciate people from diverse cultures (and markets) but also turn that appreciation to competitive advantage.


A third motivation is the potential fruit of diversity, in terms of heightened collective creativity and entrepreneurial energy.

All this means the culture of an organisation must change to foster tolerance, even if individual biases remain.

If it can be sustained, the robust economic growth that we have seen this year could help lift millions out of poverty, particularly in the fast-growing economies of South Asia. But growth alone won’t be enough to address pockets of extreme poverty in other parts of the world.”

World Bank Group President Jim Yong Kim said,

Policymakers need to focus on ways to support growth over the longer run

By boosting productivity and labor force participation in order to accelerate progress toward ending poverty and boosting shared prosperity. Activity in advanced economies is expected to grow 2.2 percent in 2018 before easing to a 2 percent rate of expansion next year, as central banks gradually remove monetary stimulus, the June 2018 Global Economic Prospectssays.

Growth in emerging market and developing economies

Overall is projected to strengthen to 4.5 percent in 2018, before reaching 4.7 percent in 2019 as the recovery in commodity exporters matures and commodity prices level off following this year’s increase.  This outlook is subject to considerable downside risks. The possibility of disorderly financial market volatility has increased, and the vulnerability of some emerging market and developing economies to such disruption has risen. Trade protectionist sentiment has also mounted, while policy uncertainty and geopolitical risks remain elevated.

NEW World Bank report says global growth to slow to 3% in 2019 from 3.1% in 2018, as slack dissipates, major central banks normalize policy, trade and investment moderate.





Global template



Testing for market efficiency

A set of processes, data and KPIs and a the global team its gonna work for all businesses around the world. Clearly, no stock market anywhere in the word is a perfect market. However, companies and investors do not need capital markets to be perfect; rather, they need capital market to be efficient and to offer fair prices so they can make reasoned investment and financial decisions. In corporate finance an efficient market points out three form test to this matter:

Strong form test

Because some people have access to information before other investors and so can make abnormal gains, it can be argued that capital markets are not strong form efficient. It is not possible to test for strong efficiency directly by investigating market’s use of insider information, since by definition this information is unknown.

Test from strong form efficiency are therefore indirect in approach

They examine how expert users of information is unknown. Test for strong form of efficiency are therefore indirect approach: they examine how expert users of information perform when compared against a yardstick such as the average return on the capital market.

Fund managers with resources to invest in discovering and analysing information may be in a better position than most to make abnormal gains.

If their funds achieved above-average performances ona regular basis, this would be the evidence that capital markets are not strong form efficient. A classic study of 115 mutual fund that the majority  did make above-average returns when management costs were taken into account: in fact, their performance was inferior to a passive buy-and-hold strategy as Jensen sustained. Research continues to show that actively managed funds underperform the market after accounting for management costs, and in many cases before accounting for management costs as well.

It has also been shown that investors could not benefit from the investment advice of financial tipsters(insider information becoming public information) due to the speech with which the market factored new information into share prices.

Semi-strong form tests

Tests for semi-strong form efficiency look at the speed and accuracy of share price responses to new information(event studies). In general, event studies support the view that capital markets are semi-strong form efficient.

As examination of the adjustment of share prices to the release of information about share splits found it was not possible to profit from the information because the market seemed to incorporate it efficiently and effectively. Similar findings were reached regarding earnings announcements, and merger announcements in Keon and Pinkerton advice.

In fact, possible benefits arising from mergers were found to be anticipated by the capital market up to three months prior to any announcements.

While event studies support the semi-strong form of efficient market hypothesis, they also offer evidence of anomalies, such as the observation that share prices continue to rise(or fall) for  a substantial period following the release of positive (or negative) information. It has also been found that the more frequently a share is traded, the shorter the time required for its price to return to equilibrium having absorbed new information.

Weak form test

If a capital market is weak form efficient, so that share prices reflect completely all past information, it will not be possible for investors to predict future share prices by studying past share price movements. Share prices will change as new information arrives on the market and, since new information arrives at random, share price movements will also appear to be random.

Many empirical studies have supported the proposition that the movement of share prices over time represent a random walk. This random walk hypothesis suggests that, if we know the share price at the end of one time period , we cannot predict accurately the share price at the end of the next period.

Empirical evidence strongly supports the view that the relationship between share prices in different period on well-developed capital markets is random, in which case we can say that research shows that: Well-developed capital markets  are weak form efficiency have used serial correlation tests, run tests and filter tests.

One of the earlier studies testing for serial correlation looked for any correlation between security price changes at different points in time Studies using run tests examine whether any significance can be attached to the direction of price changes by examining the length of the run of successive price changes of the same sign. The empirical evidence indicated that the direction of prices changes on any one day was independent of the direction of price changes on any other day.

The distribution of direction was found to be based on pure chance, adding further support to the view that capital markets are weak form efficient Filter tests try to identify any significant long-term relationships in security price movements by filtering out short terms price chnages.

One early study found that white filter tests could provide abnormal returns compared with a simple buy and hold strategy, gains were cancelled out when transactions costs were taken into account.

More recent studies have found weak evidence that a period of above average returns may follow a long period of below average returns (mean reversion), buy the weak form of the efficient market hypothesis is still broadly supported. It also have been argued from an insider perspective that trading strategies based on anomalies do not generate abnormal returns.

Recent reasearch has indicated that emerging capital markets may be weak form inefficient with lower levels of liquidity and turn oner associated with such markets suggested as contributory factors.




By the end of the century, a third of the American workforce will be “knowledge workers”, people whose productivity is marked by adding value to information, whether as market analyst, writers,or computer programmers.

Peter Druker, the eminent business maven who coined the term “knowledge worker”, points out that such workers’ expertise is highly specialized, and that their productivity depends on their efforts being coordinated as part of an organisational team: writers are not publishers; computer programmers are not software distributors. While people have always worked in tandem, Druker notes that with knowledge work

” teams become the work unit rather than the individual himself.”

Perhaps the most rudimental form of organisational team-work is the meeting, that inescapable part of an executive’s office in a boardroom, on a conference call, in someone’s office. Meetings bodies in the same room are but the most obvious, and at the somewhat antiquated, example of the sense in which work is shared. Electronic networks, email, teleconferences, work teams, informal networks and the like are emerging as new functional entities in organisations. To the degree that explicit hierarchy as mapped on an organisational chart is the skeleton of an organisation, these human touch points are its central nervous system.

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The sum of total of the talents and the skill of all those involved

Whatever people come together to collaborate, whether it be in an executive planning meeting or as a team-working toward a shared product, there is a very real sense in which they have a group of IQ.

The single most important factor in maximizing the excellence of a group’s product was the degree to which the members were able to create a state of internal harmony, which lets them take the advantage of the full talent of their members.

There is an old-fashioned word for the body of skills. Character, writes Amitai Etzioni, the George Washington University, social theorist, is the

” Psychological muscle that moral conduct requires.”


The bedrock of character is self-discipline, the virtuous life,  since Aristotel have observed, is based on self-control. A related keystone of character is being able to motivate and guide ourselves, whether in doing homework, finishing a job, or getting up in the morning. As we have seen the ability to channel one’s urges to act is a basic emotional skill, one that in a former day was called will.

“We need to be in control of ourselves – our appetites, our passions to do right by others”,

notes Tomas Lickona, writing about character education.

 “It takes will to keep emotion under the control of reason.”

Being able to put aside one’s self-centered focus and impulses has social benefits: it opens the way to empathy, to real listening. to another person’s perspective. Empathy as we have seen, leads to caring, altruism and compassion. Seeing things from another’s perspective breaks down biases stereotypes, and so breads tolerance and acceptance of differences. These capacities are ever more called  on in our increasingly pluralistic society, allowing people to live together in mutual respect and creating the possibility of productive public discourse. Theses are basic arts of democracy.

Learning and Flow


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Because flow emerges in the zone in which an activity challenges people to the fullest to their capacities, as their skills increase it takes a heightened challenge to get into flow.

If  a task is too simple, it is boring; if too challenging, the result is anxiety, rather than flow.

It can be argued that mastery in a craft or skill is spurred on by the experience of flow that the motivation to get better and better at something, be it playing the violin, dancing, or gene spicing, is at least in part to stay in flow while doing it.

“Flow is an internal state that signifies a kid is engaged in a task that’s right.”


The flow model suggests that achieving mastery of any skill or body of knowledge should ideally happen naturally. Csikszentmihalyi found that it was those who in their student days had savored the sheer joy , became serious.

Whether it be in controlling impulse and putting off gratification, regulating our mood so they facilitate rather than impede thinking, motivating ourselves to persist and try, try again in the face of setbacks, all bespeak the power of emotion to guide effective effort.