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Samsung, Huawei supply majority of own modem chips, Qualcomm says

SAN JOSE, Calif. (Reuters) – The two largest smart phone makers in the world supply a majority of their own modem chips to help their devices connect to wireless data networks, according to evidence presented at an antitrust trial for chip supplier Qualcomm Inc (QCOM.O).

FILE PHOTO: The logo of Qualcomm is seen during the Mobile World Congress in Barcelona, Spain February 27, 2018. REUTERS/Yves Herman/File Photo

A trial between the U.S. Federal Trade Commission and Qualcomm kicked off in a federal courtroom in California on Friday, with the regulators arguing that Qualcomm engaged in anticompetitive patent licensing practices to preserve a monopoly on modem chips. The case is being closely watched because it may shed light on the likely eventual outcome of the global legal battle between Apple Inc (AAPL.O) and Qualcomm.

Apple has alleged that Qualcomm engaged in illegal business practices, and Qualcomm in turn has alleged Apple violated its patents, scoring victories in China and Germany last month.

Qualcomm has argued its licensing practices follow long-established industry norms and that it charges broadly the same licensing rates that it had for many years before it ever started selling chips.

That has become a big market for Qualcomm, which controlled 59.6 percent of the $15.3 billion market for 4G modem chips in 2017, according to IDC’s Phil Solis, who studies mobile chips for the research firm.

But Bob Van Nest, an attorney representing Qualcomm in the case, also sought to show that Qualcomm is not dominant in the world’s two biggest handset makers.

During opening arguments, Van Nest’s presentation said that Huawei [HWT.UL] internally sources 54 percent of the modem chips it puts in its devices and gets only 22 percent of its modems from Qualcomm, with the remainder coming from other unnamed makers. Samsung (005930.KS) internally sources 52 percent of the modem chips it uses, with 38 percent from Qualcomm and the rest from other makers, according to the presentation.

Huawei and Samsung did not immediately respond to a request for comment. Also, the FTC’s case centers not on the overall modem chip market – which includes slower chips that go into cheaper handsets – but rather the market for speedy “premium” chips where Qualcomm is among the only options.

Huawei and Samsung are both large diversified technology corporations that make many other products aside from premium-priced smart phones. Huawei’s HiSilicon unit supplies the chips for its high-end phones such as its Mate and P series. Samsung’s chip division supplies processors and other components for many of its handsets and is also a dominant global supplier of memory chips beyond its own products.

The two firms are also Apple’s fiercest rivals in the market for premium smart phones costing $700 or more. Apple depends entirely on Intel Corp (INTC.O) and Qualcomm for modem chips, though the iPhones released in 2018 use Intel modems exclusively.

Technology news publication The Information last month reported here that Apple was designing its own modem chip, citing Apple job listings and a source briefed on Apple’s plans. Apple declined to comment on its plans.

For the second quarter of 2018 – the most recent figures available from IDC – Apple was the third-largest smart phone supplier by volume, with Samsung and Huawei in first and second place, respectively.

Reporting by Stephen Nellis; Editing by James Dalgleish

The Simple Engineering That Will Keep NYC's L Train Rolling

Ever since the last of the brackish water slithered out of the Canarsie Tunnel in the aftermath of 2012’s Superstorm Sandy, New Yorkers have been bracing for the pain. Public transit officials have long warned that the water damage to the 94-year-old tunnel, full of just-as-old subway equipment, would eventually require a long, painful, deeply inconvenient rehabilitation. That’s the tunnel that runs under the East River, carrying many of the L subway train’s 400,000 daily riders from popular Brooklyn neighborhoods like Williamsburg and Bushwick into Manhattan.

The surgery was scheduled for April 2019, when the stretch of L train that takes New Yorkers across Manhattan and into Brooklyn was scheduled to shut down for a 15-month repair job. Ahead of what they officially deemed the “L-pocalypse,” local officials created piles of plans to ramp up bus service, encourage biking, and run new ferry routes, and everything else they could think of to keep all those commuters from taking to cars and making already bad traffic fully catastrophic.

Those plans (as well as wilder ones proposed by concerned citizens) became a lot less necessary Thursday morning, when Governor Andrew Cuomo called a surprise press conference to proclaim that no, the L train won’t close completely, and yes, it will still be fixed for the future.

The new plan for the next few years is to keep the train open and running as normal during weekdays, whilst doing repairs on nights and weekends (the details remain fuzzy). The board of the Metropolitan Transportation Authority, which runs the subway, has yet to adopt the new plan, which was proposed by a commission of half a dozen engineers based at Columbia and Cornell Universities that Cuomo assembled last month, two years after the decision was made to close the line. But the agency put out a press release Thursday afternoon saying it “accepted the recommendations.”

Curious politics are clearly at work here, but New Yorkers are unlikely to care, as long as the subway keeps running. And if it does, it’ll be thanks to two bits of subway engineering infrastructure: benchwalls and cable racking.

Let’s start with benchwalls. If the train stopped in the tunnel and you had to get out, these are the stretches of concrete, running along each wall and resembling big benches, that you’d be walking on. Facilitating emergency exits is one of their main functions—without them, you’d have to jump out of the train, onto the ground and risk hitting the third rail. Benchwalls also hold most of the goodies that make the subway work, including the power and communications cables. When workers were building the line, which started service in 1924, putting the cables in the concrete was the best way to protect them from things like hungry rats and water damage.

Over the past century, those benchwalls have started to deteriorate, a process accelerated by the flooding from Hurricane Sandy. Explaining its full shutdown plan in 2016, the MTA said the tunnel’s bench walls “must be replaced to protect the structural integrity of the two tubes [east and west] that carry trains through the tunnel.”

Replacing these things involves jackhammering away concrete, removing the rubble, replacing the cabling inside, setting new concrete, and having it dry. It’s work you can’t do overnight or on weekends, because any one section takes several days. And you can’t run trains without leaving a walkway to lead people to safety in an emergency.

The new plan involves giving those benchwalls a bit of a demotion. They’ll still be used for emergency egress, but they won’t hold the cables anymore. Instead, the L train will use a “cable racking” system, in which new power and comms lines will be strung up and attached to the sides of the tunnel, above the benchwalls. Turns out, their protective jacketing has advanced since the Prohibition Era. “We’ve had tremendous progress in materials,” says Peter Kinget, a Cornell electrical engineer who served on the panel. , If the jacketing catches fire, it doesn’t produce noxious fumes. It’s impervious to vermin and H2O, obviating the need for the concrete armor. The workers will also shore up the sections of benchwall that are crumbling with fiber reinforced polymer, Cuomo says, leaving the old, inactive cables entombed inside.

That decoupling of the benchwall’s duties is a big deal, because it makes the work much easier to execute. You can cut back service at night and on weekends (by running trains in just one of the tunnel’s twin tubes) and have workers slip underground, setting up the racks and new cables segment by segment. During normal hours, the train operates as it usually does, pulling power from the cables already in the benchwalls. Once the work is done, the MTA will switch the trains over to the new set of cords.

Cable racking has been used for new metro lines in London, Hong Kong, and the Saudi capital of Riyadh, Cuomo says. This would be its first use in the US, and the first time it’s been used to fix up an existing line.

“It’s a clever solution,” says Matt Cunningham, a civil engineer and global director of infrastructure for Canadian engineering firm IBI. It’s cheaper and easier than replacing all the cable-filled benchwalls, and it’s a proven method. “It’s going to work.”

Which brings up the unanswered question of why this idea is just surfacing now. Why not before the MTA decided on the full shutdown, then spent two years preparing for it? It makes Cuomo the politician who averted the traffic-spewing L-pocalypse—but it also makes one wonder why he didn’t come to the rescue earlier. (He’s been governor of New York since 2011.) In his press conference, he presented this as new solution, which is true if you compare it to the techniques used to build the subway in the previous century, but not if you take a slightly narrower view. “It’s not new technology that’s only now become available,” Cunningham says.

Of course, limiting service during nights and weekends to make this fix will still inflict some suffering, and the MTA has a terrible record of mismanaging this sort of operation, so any promises about deadlines or costs should be doubted. “You’re not getting a root canal on five teeth, you’re getting a root canal on three teeth,” says Allan Rutter, of Texas A&M’s Transportation Institute. “There’s gonna be pain.”

In infrastructure as well as in dental surgery, you’ve got to accept some drilling and discomfort. But less is definitely more.


More Great WIRED Stories

How Can We Best Prepare for Job Automation?

The best way to prepare is to transition away from things that are largely routine and predictable. Try to find a role that is largely focused on tasks that are not easy to automate.

I think this generally includes 3 areas:

  1. Creative work — where you are building something new, thinking outside the box in non-predictable ways, etc.
  2. Human-centered work — where you build sophisticated relationships with people. This would include caring roles, as with a nurse or social worker, but also business roles where you need a need understanding of your clients.
  3. Skilled trade work — this includes jobs that require lots of mobility, dexterity and flexibility in unpredictable environments. Examples would be electricians or plumbers. Building a robot that can do these jobs is probably far in the future.

What you do NOT want is to be the person who’s only role is to sit in front of a computer performing some predictable task–like cranking out the same report again and again. If you have a job like this you should worry and look to transition in other roles in the 3 areas I listed above.

One very important part of adapting is to realize that future careers will nearly all require continuous learning. So whether you are concerned with yourself or your children, a focus on learning–getting good at it and truly enjoying it–will be one of the most important components of success.

This question originally appeared on Quora – the place to gain and share knowledge, empowering people to learn from others and better understand the world. You can follow Quora on Twitter, Facebook, and Google+. More questions:

Published on: Jan 3, 2019

Google wins U.S. approval for radar-based hand motion sensor

WASHINGTON (Reuters) – Alphabet Inc’s Google unit won approval from U.S. regulators to deploy a radar-based motion sensing device known as Project Soli.

Google signage is seen at the Google headquarters in the Manhattan borough of New York City, New York, U.S., December 19, 2018. REUTERS/Shannon Stapleton

The Federal Communications Commission (FCC) said in an order late on Monday that it would grant Google a waiver to operate the Soli sensors at higher power levels than currently allowed. The FCC said the sensors can also be operated aboard aircraft.

The FCC said the decision “will serve the public interest by providing for innovative device control features using touchless hand gesture technology.”

A Google spokeswoman did not immediately comment on Tuesday, citing the New Year’s Day holiday.

The FCC said the Soli sensor captures motion in a three-dimensional space using a radar beam to enable touchless control of functions or features that can benefit users with mobility or speech impairments.

Google says the sensor can allow users to press an invisible button between the thumb and index fingers or a virtual dial that turns by rubbing a thumb against the index finger.

The company says that “even though these controls are virtual, the interactions feel physical and responsive” as feedback is generated by the haptic sensation of fingers touching.

Google says the virtual tools can approximate the precision of natural human hand motion and the sensor can be embedded in wearables, phones, computers and vehicles.

In March, Google asked the FCC to allow its short-range interactive motion sensing Soli radar to operate in the 57- to 64-GHz frequency band at power levels consistent with European Telecommunications Standards Institute standards.

Facebook Inc raised concerns with the FCC that the Soli sensors operating in the spectrum band at higher power levels might have issues coexisting with other technologies.

After discussions, Google and Facebook jointly told the FCC in September that they agreed the sensors could operate at higher than currently allowed power levels without interference but at lower levels than previously proposed by Google.

Facebook told the FCC in September that it expected a “variety of use cases to develop with respect to new radar devices, including Soli.”

The Soli devices can be operated aboard aircraft but must still comply with Federal Aviation Administration rules governing portable electronic devices.

Reporting by David Shepardson; editing by Jonathan Oatis

Elon Musk Adds Larry Ellison to Tesla's Board, Fulfilling SEC Requirement–Sort of

Tesla announced today that Oracle co-founder and Chairman Larry Ellison, and an investor in Tesla, has been added to the Tesla board. Also joining the board is Kathleen Wilson-Thompson, global head of HR at Walgreens. 

The move fulfills the letter, although not the spirit, of Tesla’s agreement with the Securities and Exchange Commission, which sued the company after Elon Musk posted an inaccurate and ill-advised tweet saying he was planning to take Tesla private and had the funding to do so. The settlement required that Tesla name a new chair to replace Musk, and add two independent directors to the board. 

The company has now met both those conditions, though maybe not the way the SEC  wished. Robyn Denholm, Tesla’s new chair, lives in Australia, where she’s CFO of that country’s largest telecom company. She won’t move to California for at least another four months and maybe never. That might make it tough for her to oversee Musk, as the SEC wanted the new chair to do. She’s also a longtime member of Tesla’s board, which is famous for failing to oversee him, at least so far.

Ellison is certainly more local and more vocal. He has a lot in common with Musk–he’s another iconic entrepreneur who built a hugely successful enterprise but sometimes gets himself in trouble by publicly saying exactly what he’s thinking, for instance when he called cloud computing “complete gibberish” at a 2008 analyst conference. Perhaps most important from Musk’s point of view, he’s a good friend and a staunch defender of both Tesla and Musk. 

Case in point, an October analyst call, where Ellison momentarily diverged from the topic at hand to defend Musk. “He’s landing rockets on robot drone rafts in the ocean,” Ellison said. “And you’re saying he doesn’t know what he’s doing. Well, who else is landing rockets? You ever land a rocket on a robot drone? Who are you?”

Ellison may not be the truly independent voice the SEC was hoping for. And yet, his arrival is probably very good news for Tesla. Ellison is one of the world’s richest people precisely because he knows how to build a profitable company. He also has a proven track record as an outside director, particularly at Apple, where he helped guide that company’s legendary turnaround after Steve Jobs returned as CEO in 1997. He has skin in the game, having bought 3 million shares of Tesla earlier this year. And, while he’s obviously a big fan of Elon Musk, he’s clearly capable of standing up to him if Ellison believes Musk is headed in the wrong direction. 

Tesla’s other new director, Kathleen Wilson-Thompson, is  more in the mold of Denholm–an un-flamboyant executive who has spent decades working her way up the corporate ladder, first at Kellogg, then at Walgreens. Having a longtime HR executive on the board is another good move for the company, in light of complaints about working conditions, especially during the Model 3 production ramp-up

The SEC has not publicly commented on the choice of new directors. But the markets seem to approve. Tesla’s share price is up by more than 5 percent on a day when most of the market headed downward. 

Disclosure: I’m a contributor to Oracle’s magazine Profit.

Got a McDonald's or Burger King Coupon? Here's the Smart, Surprising Thing to Do With It. (You Only Have 3 Days)

This is a story about a smaller restaurant chain trolling McDonald’s, Burger King, and other giants of the business. And it’s kind of brilliant. Before the details, a quick explanation.

The fast food industry is a smart and fun one to follow no matter what business you’re in, and for two big reasons.

First, there’s the pure scale. Make a menu change at McDonald’s for example, and you’re upending the routines of hundreds of thousands of hungry Americans. You can learn a lot just by watching how they develop and test new products.

But second, there’s the marketing.

Think of McDonald’s, which spends $2 billion a year on marketing and ads. That’s half the entire value of its much smaller competitor, Wendy’s. It’s an incredible chance just to unpack what they do, and figure out why they think that various ideas will work.

Which brings us to some shoot-the-moon marketing campaigns that can actually turn the big chains’ efforts on their heads.

The only catch? You had to place the order from a McDonald’s restaurant. (Technically, just being within 600 feet was close enough to trigger the offer.)

Of course, Burger King isn’t small; just smaller than McDonald’s. But it shows how if you’re creative, you can use a competitor’s strength–in that case the fact that there are roughly twice as many McDonald’s in the U.S. than there are Burger King locations–to your advantage.

But what if you don’t have 1.7 million Twitter followers and a full time social media marketing operation, like Burger King, to get word of your deal out.?

What if you don’t even have a mobile app (or a burning desire to get people to download your app, which is what the Burger King promotion and so many others these days are all about)?

Ladies and gentlemen, I give you: Smoothie King.

Again: not exactly tiny, although very small compared to McDonald’s and Burger King. Smoothie King has close to 800 stores, heavily concentrated in warmer weather parts of the country.

It’s privately held, and even if you’ve never tried it, you might recognize the name from the $40 million naming deal it has for the NBA New Orleans Pelicans home arena (“Smoothie King Center“).

Now, like its bigger competitors, Smoothie King also has a rewards app, and it’s launched a contest to try to incentivize people to download and use it. (The “Change-a-Meal Challenge.”)  

But what attracted me to this whole thing is how Smoothie King is kicking off its promotion: By letting you use any coupon from any other fast food restaurant — McDonald’s or Burger King included — at Smoothie King.

It’s good for only one day, New Year’s Eve, and regardless of the competitor’s coupon’s value, it gets you $2 off a smoothie at Smoothie King on December 31.

And in truth, I don’t know how many people would take advantage of it. But that doesn’t really matter in a way; what matters in this social media age is whether you can find a truthful, fun way to troll your competitors and turn their strengths to your advangage.

As a marketing strategy, I think it’s brilliant.

As for the Smoothies, well, I don’t know. I’m writing this from New Hampshire, and it looks like the nearest Smoothie King would be a three hour drive away. You’ll have to let me know in the comments.

Hate Telemarketers? This Brilliantly Simple Legal Trick Totally Destroys Most of Them (Why Did It Take So Long?)

My fellow Americans, we live in a divided time. But there is one thing we all agree on.

It’s only getting worse. By next month, nearly half of all incoming cell-phone calls will be spam. Half! Sure, the government cracks down on a few of the worst offenders. But they’re fighting with a hand tied behind their back. Now, a small group of lawmakers wants to change that.

So here’s the problem, the reason why it hasn’t been fixed before — and why a laughably simple legal trick could very likely be the solution.

Surprise: it’s totally legal!

The scenario has to do with spoofed Caller ID. You’re at home, or at work, or wherever, and you’re suddenly interrupted by a call you don’t recognize. Only… it’s from the same area code and exchange as your cell phone. 

As an example, my phone number is (424) 245-5687. I might get a call from say, (424) 245-9999.

Now, the call isn’t really originating from that number — or likely from any real traceable number. It’s just set up that way to make it look like a local call, so I might be more likely to answer.

You might assume that doing this would be illegal. I mean, I’m a lawyer (not practicing, but still), and I was pretty sure people had been prosecuted for wire fraud for doing less.

But it turns out that’s not the case at all. In fact, the Federal Communications Commission says it’s only illegal to make this kind of spoofed Caller ID call if you do so “with the intent to defraud, cause harm or wrongly obtain anything of value.”

No provable bad faith or fraud? No problem, under the current law.

Welcome to Kentucky

It’s in this context that an unlikely savior might come to the rescue.

Meet Kevin Bratcher, a state legislator in Kentucky who introduced a bill to make it illegal to spoof a Caller ID for almost any reason at all.

It wouldn’t matter if you could later prove that, for example, “technically if the person jumped through all these hoops and paid these upfront fees they could get a free trip to the Bahamas.” 

Simply “causing misleading information to be transmitted to users of caller identification technologies, or to otherwise misrepresent the origin of the telephone solicitation,” would result in a very significant fine: $500 for a first offense, and $3,000 for each subsequent offense.

There would be  few minor exceptions for things: things like if the recipient knew his or her true phone number or location, or friends playing an innocuous prank on one another.

But beyond that, it would be a strict law.

“I came up with this because I just had a campaign, and everywhere I went people were asking me, ‘Why can’t you do something about all these calls with fake IDs?'” Bratcher, a Republican who has been in office for 22 years, told me recently. “And I was receiving them too. Just a light bulb went off on my head: Why is anyone trying to give you a call with a fake ID? That needs to stop.:

A big part of the problem

I realized something after Bratcher and I talked: it’s not just the scammers who have latched onto this spoofing strategy. 

For example, Bratcher didn’told me about receiving spoofed Caller ID phone calls from a 501(c)(3) he supports, and that’s based in Washington, D.C. The calls looked like they were coming from Kentucky.

That’s also what he says to those who might suggest that anyone sophisticated enough to spoof a Caller ID might also be sophisticated enough not to get caught. For a big part of these calls — maybe even a majority — the fraud stops with the spoofed number.

Legitimate charities aren’t going to want to be tarred with this brush.

Why can’t the government work for us?

For now, if the law were only changed like this in one state, it would be a complicated and potentially expensive strategy for legitimate charities to risk fines and bad press for spoofing IDs in Kentucky.

But while the initial news coverage of Bratcher’s bill suggested it might be the first attempt like this in the country, I’ve talked with Indiana officials who say they’ve been doing something similar.

It’s hard to believe that other states and the federal government itself would be far behind.

I’ve written a lot recently about other ways to cut down on telemarketing calls. There’s the “Lenny” bot, which is truthfully one of my favorites from an entertainment standpoint, as it’s simply an Australian chatbot designed to waste telemarketers’ time.

And since Lenny hasn’t actually been widely released, I also suggested perhaps we could all team up to do a sort of “manual Lenny” — basically stringing telemarketers along, wasting their time, and driving up their employers’ costs so as to destroy their business model.

Those stories got a giant response. Because it’s a problem everyone faces.

And so, shouldn’t our government work for us, instead of us having to hack together ideas on our own to solve these kinds of problems?

It feels like a winner issue for any lawmaker who wants to run to the head of the crowd, and become known as a champion of the people. People seem to want this.  

3 Coaching Strategies To Help Your Employees Overcome Uncertainty

To keep a business running smoothly, managers need to train their employees on how to perform pre-prescribed duties on a consistent basis. It’s also every leader’s responsibility to hold their team accountable to a high standard of quality and to work with them on streamlining their processes to increase efficiency.

A big challenge, however, is in preparing teams to excel when circumstances take an unexpected turn. Uncertainty is a given in business interactions, whether with clients, partners or colleagues, and leaders must take steps to coach their employees on best practices for handling uncommon situations well.

At my company Amerisleep, we encourage our staff to approach unfamiliar problems with an inquisitive mind. Rather than get flustered by the introduction of new variables, our team members are expected to ask questions to identify the key issue, diagnose the cause, and research the best solution.

Below are three things other leaders can do to ensure their team is comfortable dealing with uncertainty — and that they are capable of thriving too.

1. Create contingency plans teams can use to guide next steps.

When you anticipate the possibility of alternative scenarios, you can pre-plan different ways to respond.

In sales, for instance, one of the most dependable strategies is creating a script that features curated response patterns a salesperson can use to guide conversations based on each client’s reaction. This reduces the negative impact of resistance and rejections because it gives the salesperson a model for how they can best overcome the situation.

When negotiating with vendors, too, you may encounter obstacles that could derail the deal. To prepare our managers for those situations, we walk them through the most common sticking points such as price and timeline. If the costs are too high, we seek ways to cut back on expected deliverables to decrease the overall scope and rework the engagement so that it fits our budget. If the delivery schedule is longer than expected, we dissect the process to discover which steps we can expedite.

As a regular part of the training process, department leaders should provide their team members with guidance for how they should process uncertainty and proceed with a solutions-based approach.

2. Train staff to identify elements under their control and act accordingly.

The unknown can be quite jarring for some people. It often causes those unprepared to abandon all hope of influencing the situation and to accept whatever happens. But participants always have some measure of control, even when the expected outcomes seem less likely to manifest.

Teach your employees to look for elements they can leverage — such as historical data, rapport with other team members or participants, and available tools and technology — to allow them to reestablish their composure. Otherwise, they may view new variables as an obstacle instead of an opportunity. This will also help them become more self-reliant, empowering them to independently push more projects through to completion.

Our employees at Amerisleep take this to heart. When website outages occur, rather than panic, our development team follows a pre-defined process for troubleshooting and resolving the issue. Additionally, they take this opportunity to identify ways to further strengthen the reliability of our online experience, mitigating the risk of future failures. Although it’s impossible for us to predict when our site may experience a bit of downtime, what’s certain is the fact that our engineers are both skilled and process-oriented enough to find the perfect solution in a timely manner.

3. Promote strong analytical and critical thinking skills.

When unforeseen circumstances disrupt a plan, it’s common for people to immediately begin thinking about the ramifications of the uncertainty on their future. In these instances, they’re focusing too heavily on the consequences when they should exert more energy finding meaningful solutions.

Those who excel at dealing with the unknown stay in the moment and follow a successful roadmap: prepare as much as possible beforehand; anticipate the unexpected; look for ways to make a difference; and act decisively.

By taking a structured and strategic approach to addressing unfamiliar scenarios, you maintain your ability to think through the problem rationally rather than reacting emotionally.

Ready, headset, go: Retailers racing ahead with VR for staff training

The circa 5,000 virtual reality (VR) videos viewed over two weeks by Costa Coffee staff, looking to understand how best to prepare the company’s Christmas drinks range, highlight the appetite for learning in the organisation using this technology.

That is the view of Laura Chapman, head of learning at Costa, who says festive-themed training videos were not mandatory for its workforce, but they really captured the imagination of its people at this busy time of year.

“It’s still early days for us, but feedback show us teams are motivated to learn this way,” she says, commenting on the recent introduction to over 1,500 Costa stores of Google Cardboard headsets and associated tools, enabling teams to access 360-degree footage of coffee-making tips and techniques.

The move was announced at the end of October, and was primarily a way of helping induct new staff in the ways and methods of Costa baristas ahead of the busy Christmas trading period. However, it’s a platform that can be used for training all year round.

Chapman says the VR element is embedded into what she describes as an already comprehensive training programme, and currently includes tips on how to make an Americano or the Black Forest Hot Chocolate which appears on the menu in December.

And as consumers continue to seek out more compelling experiences, expertise and different types of engagement during a trip to a retail or food and beverage outlet, there are several ways the Costa VR staff training tool is catering for these demands by preparing staff accordingly.

“We have a high volume of millennials in the workforce, so we wanted to be able to provide an engaging and innovative way of training them, one which would really excite them to learn,” says Chapman.

“The VR 360 videos we currently have provide a wider insight into the coffee growing process with footage of coffee plantations in Peru along with sneak peaks inside our state of the art roastery and coffee lab in Basildon.

“In addition to this, we also feature drinks tutorials on our key products, so teams can learn faster by immersing themselves in a real-life environment.”

Walmart is another big retail business that is well under way with its use of VR for operational gain. Facebook-owned Oculus Go VR headsets are being used by the grocer’s staff across the US, with the STRIVR-created content teaching people about technology and compliance, and aiding soft skill development like empathy and customer service.

To indicate the scale of the technology’s usage, the plan is for four VR headsets in every Walmart “supercenter”, and two units to every neighbourhood market and discount store. In total, the retailer says 17,000+ headsets are in use at Walmart today.

VR training must run deep

Ed Greig, chief disruptor at Deloitte, agrees that some of the best cases of VR usage in retail are around staff training.

“If you want to change the behaviour of your staff, that’s something you can do with VR in a way you couldn’t do with text-based e-learning,” he says.

“Some organisations are still using paper-based learning, and these are organisations that in other areas are very technical, but VR can enhance this process.”

Greig backs VR’s ability to improve the soft skills of store associates to align them with company values or to provide a platform for helping more senior staff improve management and empathy, but ultimately he sees the biggest gains for retailers coming from its wider deployment by human resources departments.

Wider recruitment

He acknowledges the idea of VR being used as a staff training tool has opened up conversations with Deloitte clients about their wider recruitment and subsequent learning strategy. As retailers embark on widescale digital transformation, he sees VR playing a central role in improving store design, supply chain operations, and general processes.

“Our motto is ‘fall in love with the problem not the solution’,” says Greig.

“There is a real danger with a new tech like VR and the subsequent modifications to that tech that people can fall in love with the solution [and forget why they need it in their businesses]. If you’re going to use VR, it should be about reshaping your entire learning strategy and how you look to develop people throughout the organisation.”

“It’s really effective when it’s used as part of the recruitment process, providing a consistency of experience for employees right from the first moment they have contact with a certain company,” he says.

“If retailers can nail that, it gives them a whole load of additional time where they’ve got people thinking about their brand values, and they can hit the ground running once they’re on the team.”

In a future internet of things (IoT) environment, Greig predicts multiple ways VR could play a part in the “digital twin” process, where a retailer’s physical premises are effectively digitally cloned. One can imagine staff using VR in this format to remotely change a retail store’s lighting or signage setting in real time, he asserts.

VR as standalone entertainment

VR is cropping up in various guises across retail, be it Virgin Holidays using Google Cardboard in stores to help customers experience locations before they book them, or Tommy Hilfiger kitting out global flagships with WeMakeVR-loaded SamsungGear devices to showcase its catwalk shows to in-store visitors.

But some of the most impactful uses of it revolve around creating an event out of VR technology. At Westfield Stratford City in 2016, Samsung ran an in-shopping-centre pop-up, enabling around a quarter of a million people to try out its Gear VR to experience roller coaster rides in North America or holidays in remote destinations.

Judging by that success, it is perhaps clear why ImmotionVR, a company that designs content for VR and operates simulators in public places around the UK, is continuing to scale its business based on a similar cinematic-like premise.

With 12 locations across the country, including at Manchester’s Arndale Centre, Birmingham’s Star City, Intu Derby, and most recently, Wembley’s London Designer Outlet, the company is creating theme-park-like, family-friendly experiences starting from £5 in shopping centres around the UK.

Martin Higginson, CEO of Immotion Group, says his company is looking to help the wider retail industry not by selling it VR technology as an internal solution, but by setting up its simulators and VR installations deep within retail – in the aisles of shopping centres or in locations left behind by collapsed or down-sizing retail chains.

“We’re focused on delivering an out-of-home experience,” he says.

“Currently shopping in general needs to bring theatre, because without that retail will wither on the vine. The high street and shopping malls need to change and start creating more theatre be it additional dining spaces, VR or something else; there needs to be a unique mix that creates a ‘theme park’ within shopping centres.”

Incentivising shopping mall visits

Higginson argues that venues from ImmotionVR, which creates its own content from its Manchester studios and offers VR experiences covering scenarios ranging from roller coaster rides to swimming with sharks off the coast of Tonga, can give families an added incentive to visit a shopping mall.

There is also a focus within the business on providing VR-enabled destinations for work parties and educational trips for schoolchildren.

“We want to create Disneyland in Westfield or Lakeside, or wherever – shopping centre owners have massive challenges with the likes of House of Fraser and Debenhams going through turmoil,” he says.

“We can bring experiences to shopping centres and fill them with guests throughout the week, helping malls become leisure destinations rather than venues for straight-out shopping.”

Higginson also argues the continued growth of his brand will open up VR to the mainstream. As a result, the tech might become more widely used in the home and in the workplace. In short, society could be about to see more of it in its various forms.

Costa and Walmart are clearly on the start of their VR journeys, but the staff engagement it has resulted in, and – in the case of Walmart – the rapid extended roll-out of the technology to date, suggests further exploration and usage is imminent.

VR roll-out a reality

Walmart announced in September that its VR technology was set to be accessible for all employee training across its entire US store portfolio, following initial usage solely for staff development in Walmart Academies. More than one million Walmart associates will now receive the same level of training as those in the academies, the retailer said.

Meanwhile, all of Costa’s fully owned stores – as opposed to its franchise and concession partners – have a Google Cardboard headset that allows staff to experience VR. And Chapman acknowledges the business is looking to make them available to its partnerships and international stores, while additional ideas for its usage keep arising.

“We could provide ‘on-the-job’ experiences to potential candidates so they get an idea as to what it’s like working in one of our stores,” she says.

“The coffee growing process and following the coffee journey from bean to cup is also something that we feel would be useful for inductions for everyone in the Costa family both among our store teams and in our support centre.”

Treasury Secretary Mnuchin Raises Questions of Bank Stability: Hold Onto Your Hat

The entire financial system that everyone, including all businesses, depends on sits on the need for trust. And in a couple eof tweets, the Treasury Department and Treasury Secretary Steven Mnuchin may have shaken that trust loose.

The Treasury Department said that Mnuchin held a series of calls with CEOs of major banks: Bank of America, Citi, Goldman Sachs, JP Morgan Chase, Morgan Stanley, and Wells Fargo.

The CEOs confirmed that they have ample liquidity available for lending to consumer, business markets, and all other market operations. He also confirmed that they have not experienced any clearance or margin issues and that the markets continue to function properly.

Equity markets have been rocky for various reasons, including tariff wars, general uncertainty, and the Fed increasing interest rates. No markets rise forever and we’ve seen a long run. A recent survey of global CEOs showed that chief financial officers overwhelmingly expect a recession by 2010 and many think 2019 will be the year.

In turbulent times, there are tremendous reasons for businesses to be wary and for governments to be concerned about basic banking issues like liquidity. Without enough money available, institutions can’t lend money and an economy can grind to a halt.

But aside from public inquiries like bank stress tests mandated by law, deep inquiries happen out of public views. No one wants to start a panic, undermine public confidence, and potentially start runs on banks, with people looking in total to take out more money than the banks actually have. (The lending business depends on institutions leveraging deposits, which means lending out many times more than they have on hand.)

Mnuchin’s move might have made sense if there were public concerns about bank stability. Bank stocks have been taking a hit with market oscillations. When people worry about the economy, they expect that banks may suffer. When things slow, fewer people and companies take out the loans that are the source of institutional income.

But there hasn’t been a lot of concern about underlying bank stability. At least, there wasn’t until Sunday evening when the tweets hit the fan. Particularly as Mnuchin was reportedly on vacation in Mexico.

While apparently intended to as a pre-emptive reassurance to investors, the tweet may have done just the opposite, stoking fears that the government is bracing for the worst.

MarketWatch then copied a number of investor tweets. Here’s one.

The substance was much of what I heard in my circle of financial people and business and economics reporters. One could only manage “WTF?”

It may be that all is well. But markets react to expectation and emotion and things have been shaken already. You now much reexamine your strategy in the wake of decreasing confidence in the economy and keep a close eye on new statements that could further shake things up.


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