Business Transformation Requires Transformational Leaders

We encounter AI in our daily lives with services such as Netflix and Amazon using AI and predictive technology to analyze billions of records to suggest films, books, and other items we might like based on our previous reactions and choices and those of others like us. But the potential of AI goes far beyond entertainment and shopping services.

Cutter Consortium Senior Consultant Helen Pukszta explores the use of drones for sustainability. From the critical application of precision agriculture to whimsical light shows, drones not only provide new functionality, they do so with a low carbon footprint. In precision agriculture, we see again that the data collection capability of drones coupled with sophisticated optimization algorithms can help farmers use natural resources more efficiently. In an unusual application that most would not think of, Pukszta goes on to illuminate the unintended environmental consequences of fireworks and the benefits of using drones for light shows.

A Renewal Energy Certificate (REC) is another mech­anism for offsetting carbon emissions. As explained by Claudio Lima, RECs are issued to accredited generators of renewable energy. These credits can then be traded in energy markets where consumers looking to offset their own fossil fuel energy consumption can buy the credits. Since a REC is essentially a record of a quasi-observable event (i.e., renewable energy fed into the grid), this data is susceptible to manipulation and transaction errors. Similar to carbon markets, or any market for that matter, lack of credibility can under­­mine the effectiveness of the market. Lima explains how blockchain can be used to ensure the authenticity of RECs and improve their market credibility.

We continue the trend of the last CBTJ issue with an interview of a top-notch expert whose company is helping to make great strides toward sustainability. Cutter Consortium Fellow Lou Mazzucchelli talks with Carlos Silva of Pachama, a company that uses satellite imagery and ML to measure the carbon captured by forests and how it evolves over time. This measurement allows us to determine whether a carbon credit that is traded on an exchange represents a “real” reduction in emissions. The verifiability and accuracy of such measurements form the foundation for robust carbon markets. Silva explains how the technology works to ensure the integrity of forest carbon credits.

The four articles in this companion issue of CBTJ on sustainability explore the ways that technology can be used to monitor and improve the sustainability of a wide range of processes, industrial and otherwise.

Speed, productivity, quality, and engagement — the benefits of Agile — are vital to your business. Business leaders across industries strive to cultivate these essential qualities on a day-to-day basis. The sheer volume of podcasts, books, seminars, and articles centering on these elements indicate an impressive collective interest in becoming Agile. However, many leaders are slow to start the Agile journey — at least right now.

Explore the unintended consequences, such as erosion of human skills and the scope expansion that takes us from reconnecting with old friends online to channels that broadcast un-fact-checked news, that AI can bring. In this Advisor, Paul Clermont offers no-nonsense advice for dealing with these issues.

For a KRI framework to be successful, it is vital that KRIs are well selected so they can support the business and its objectives within the risk appetite. This Advisor explores some of the means by which KRIs can be established.