From Insurance Policy to Growth Engine: The New Economics of Cyber Resilience

Originally appeared on Perspectives by Palo Alto Networks.

When a CISO is invited into a board meeting, oftentimes, the lights dim, a scary heatmap of thwarted attacks appears on the screen, and the Audit Committee asks something like: “Are we safe?”

It is a necessary ritual, but it is also, frankly, a waste of an asset.

While the board obsesses over the perimeter, they ignore the fact that a mature, unified security platform is sitting on a goldmine of business intelligence. And because it sits at the intersection of every user, every application and every data stream, the security platform is the only system that sees an organization’s behavior.

If you stop looking at your security stack as a shield and start treating it as a sensor, it reveals three critical truths about your business that some CFOs and COOs might be missing.

1. True Velocity of Innovation — And What’s Destroying It

Let’s admit it: Every CEO believes their organization is agile. After all, they have the numbers, personnel and slide decks to prove it. But the security platform holds the data on the real friction within the machinery.

Consider the shadow AI phenomenon. We know that 78% of enterprises are actively using AI.1 Yet, only 6% have a mature strategy for it.2 A traditional view sees this as a risk to block.

A platform view sees this as market research.

When a unified security platform correlates web traffic with endpoint activity, it does more than catch malware. It maps user intent and reveals which AI tools your developers are smuggling into their workflows to write code faster. Plus, it shows which large language models your marketing team is using to bypass agency costs.

This behavior goes beyond a simple compliance violation. It marks a signal of unmet demand. The platform reveals where your employees are desperate to innovate but are underserved by corporate IT. Also, it reveals the “drag coefficients” — the specific policy bottlenecks where compliant projects go to die.

A CISO looking at this data can tell the board: “We aren’t losing speed because of hackers. We’re losing speed because our architecture forces our smartest people to work in the dark.”

2. The “Interest Rate” on Your Technical Debt

In mergers and acquisitions, due diligence is typically a financial and legal colonoscopy. Analysts scour the books for hidden liabilities. But they rarely check the “cyber balance sheet,” which is where the concept of security debt moves from a metaphor to a metric.

The average enterprise is currently stitching together 83 different security tools from 29 vendors. In a fragmented state, this is just “IT clutter.” But through the lens of a unified platform, this fragmentation reveals the organization’s operational fragility.

A platform audit acts like an MRI for M&A risk. It quantifies the cost of complexity. It reveals how many hours are wasted manually correlating data between incompatible systems. It exposes the “interest payments” the company is making in the form of high turnover (burnout) and slow remediation times.

If you are acquiring a company, you’re buying their revenue and you’re inheriting their architecture.

3. The Reality of Resilience

Recent research from Unit 42 shows that agentic AI can compress what was once a multiday ransomware campaign into roughly 25 minutes. This security statistic is terrifying, but it’s also a profound operational metric. It reveals that the speed of business disruption now exceeds the speed of human reaction.

A mature platform is perhaps the truest tangible way to measure the resilience of your revenue streams. By correlating uptime data with threat activity, the platform provides a real-time view of business continuity risk. It moves the metric from mean time to detect (a technical stat) to revenue at risk per minute (a business stat).

The Pivot from Cost Center to Growth Engine

The data required to steer a modern enterprise through the AI economy is already flowing through your SOC. But because we have mentally siloed security as “protection,” we treat this data as exhaust — something to be analyzed for threats and then discarded.

The CISO of 2026 is not just the Chief “No” Officer. If they are leveraging a mature, unified platform, they are also the keeper of their organization’s data fabric. They know which departments are innovating, which processes are broken, and where the next acquisition target is hiding their skeletons.

The question the board should ask is no longer “Are we safe?” It is: “What does the security data tell us about who we are?” Only the right questions can lead to the right solutions. 

Your 2026 AI Cybersecurity Strategy: Breaking Down the Hard Choices for Tech Leaders

Originally appeared on Perspectives by Palo Alto Networks.

A CIO’s or CFO’s ledger has a fundamental, if unspoken, equation: Resources must, at a minimum, match the scale of the risk. For 2026, however, this equation doesn’t work. Today’s AI supercharges and scales threats, which are multiplying at a rate no technology has ever seen. Meanwhile, many cybersecurity budgets remain stubbornly linear, forcing a series of hard choices about where to invest, what to automate and which risks to accept.

We’ve seen the effects of AI as a massive force multiplier for both attackers and defenders. It both accelerates the pace of attacks and promises new forms of automated defense. For leaders, the real test is how strategically they invest in AI to get the greatest return on security.

This ambiguity — where risk and new technology collide — is familiar territory for Mark Settle. A seven-time CIO (most recently at Okta), an author and an advisor, he guides technology leaders through multiple cycles of disruption, from moving to the cloud to the pressures of downsizing.

I sat down with Mr. Settle to discuss these critical tradeoffs. He reflected on the practical choices security and tech leaders must make as they plan for this new landscape. His insights offer a clear-eyed view for any leader tasked with managing exponential risk with finite resources.

How worried should we be about the pace of innovation on the offensive side of cybersecurity?

It cuts both ways. AI clearly creates new threat opportunities, but it’s also the latest automation tool, after years of automating in cybersecurity. Many CISOs will tell you that criminals don’t need AI yet, because people still make the same mistakes, like clicking on bad links, reusing weak passwords and leaving the door open. In that sense, attackers are still winning the old-fashioned way.

Security threats are multiplying, but budgets aren’t keeping pace. How should tech leaders think about that tension as they approach planning for next year?

That’s the reality they face. You can’t defend on every front at once, and you can’t expect headcount or budgets to suddenly expand. What you can do is recognize that the landscape itself is shifting — through vendor consolidation, category convergence and AI capabilities getting embedded into larger platforms.

If you step back and look a bit beyond one budgeting cycle, those secular changes create opportunities to simplify and focus.

What are the biggest opportunities you see?

If I were going into a budget exercise for next year, I’d be looking at three things. 

The first one is consolidation. Everybody complains about the size and complexity of their security tech stack. M&As [mergers and acquisitions] are highly competitive in this space, with major platforms absorbing point solutions. If you look closely, you may find tools you bought two or three years ago that were “must-haves” then but now overlap with what your primary platform vendor does well. Dropping some of those tools saves real money.

Second, some categories are merging. Take vulnerability management, which used to require two separate tools — threat intelligence and vulnerability scanning. Now, you have continuous exposure management platforms that marry those together and add business context. You don’t want to be the last person paying for a tool that’s on its way out.

And the third is AI. Every vendor is pushing AI capabilities right now. My advice would be to experiment aggressively, but with an objective. The one that appeals most to me is automation. Use AI to automate away routine work, reduce latency in responding to threats and eliminate some of the headcount pressure. 

The reality is that you’re not going to get more people. Rather, you might be told to make cuts, so it’s better to put these tools to work now.

How do you pull that off without falling into the trap of always pursuing every new tool and capability?

That’s the bigger issue. Do you leverage the AI capabilities your existing vendors are rolling out, or do you also invest in new AI-native products? You can’t really afford to do both, which is where the tradeoff comes in.

My bias is to start with incumbent platforms that their vendors are embedding AI into. You can evaluate their capabilities with your concrete goals. For example, you might ask: Can they automate repetitive tasks? Can they shrink response times? Can they free up people? These areas, I believe, will have the fastest returns.

Once you’ve made those tradeoffs, how do you protect the savings to ensure they’re reinvested in security instead of disappearing into the broader budget?

If you find ways to cut vendor costs or labor dollars, don’t wait for finance to spend the savings on marketing. Talk to the CFO up front and cut a deal. You might say: “If I save three dollars, I get to reinvest two dollars into reskilling and cloud security.” That way, you have a gain-share model that lets you reinvest in security instead of losing out on those dollars.

You’ve talked about automation as the most compelling near-term use case for AI. What happens as AI agents start acting more independently? How does that change your risk calculus?

I don’t believe it’s here yet, but it’s coming — and it’s something I’ve been researching closely. In a multiagent world, AI systems will commission actions on behalf of one another, often with little or no human involvement. That raises fundamental questions about authentication. Today, we think about authenticating a person. But what happens when it’s an agent initiating a transaction on behalf of another agent? How do you establish trust at machine speed? That’s going to reshape identity and access management in the next few years, and CIOs and CISOs will need to start preparing for it now.

As leaders plan for 2026, what’s the biggest change in mindset you would encourage them to make?

Before leaders become enticed by their existing vendors’ new AI capabilities, they need to learn as much as they can about how cybercriminals are using AI to weaponize the threat vectors that matter most to their companies. They need to focus their AI investments on new defensive capabilities that can blunt those AI-turbocharged threats. Simply put, they need to use AI to fight AI.

In Patents He Trusts: Srinivas Tummalapenta on Turning Cybersecurity Breakthroughs into Economic Advantage

Originally appeared on Perspectives by Palo Alto Networks.

We tend to think of a patent in physical terms, like a stronger material, a more efficient gear or a novel chemical compound. It is a discrete and tangible property, something you can hold with its boundaries clearly defined. Cybersecurity, however, lives in the abstract realm of logic, code and trust. A patent here, although not for an object, is for a process — a method of defense, a new way to establish identity or a shield for the trust that underpins the global economy. This shift from a physical to digital patent is redefining what innovation looks like, what “asset” means, and how, in a world of invisible threats, it is protected.

CEOs and regulators rank cyber defense as a top business priority, which is why last year, computer and security patent filings ranked the highest in terms of volume.1 This is proof that companies are scrambling to protect market share, trust and credibility.

For more than two decades, Srinivas Tummalapenta, Master Inventor, Distinguished Engineer and CTO of IBM Consulting Cybersecurity Services, has focused on turning real-world security challenges into innovations that stand up to both attackers and auditors. With more than 25 patents to his name, he has helped redefine how intellectual property can serve as both protection and, more importantly, as tangible proof of trust. 

I sat down with Mr. Tummalapenta who described what effective, sustainable security innovation looks like in practice. His vision starts with small, diverse teams that move quickly from idea to implementation, backed by a culture that balances openness with protection. But his most urgent call to action is a sharp focus on AI, the frontier where technical progress and economic value now converge.

What are some key strategies that cybersecurity leaders need to follow to convert raw technology innovation into economic value?

I’ve learned that innovation doesn’t happen in isolation. That’s why we created “patent pods,” small groups where three or four people from different backgrounds come together to hash out ideas. You might have someone from cybersecurity, someone from data management, someone from networking. That diversity produces something new — and in security, it often produces solutions that wouldn’t emerge in a traditional silo.

What many people don’t realize is that this model scales easily. I’ve seen clients with far smaller teams create their own versions — a few Slack channels, regular check-ins and leadership support are enough. The key is to bring domain and gender diversity into the mix and keep the cycle alive. Every innovation program rises, plateaus, and, unless leaders re-energize it, fades. 

The discipline is in knowing when to refresh.

What are the biggest misconceptions about enterprise patent development?

One big misconception is that patents themselves are the goal. They’re not. Patents are a by-product of innovation, not the purpose of it. When companies chase patent counts or short-term licensing revenue, creativity dries up. Another trap is believing that, once you have a patent, you’re safe — someone can always cite it and go around it. The real protection comes from constantly innovating faster than others can copy you.

How do you measure the economic value of cybersecurity patents?

The ROI is not about numbers. You don’t measure value by saying, “I have 500 patents.” You measure it by how those innovations are embedded into operations, how they improve outcomes and how they differentiate you in the market.

Those improvements can save millions of dollars and allow companies to address threats faster, which is critical when you’re dealing with AI-powered attacks. The fact that these processes are patented provides the differentiation. When we talk to analysts and clients, we can point to not only the outcome but the protected innovation behind it.

Cybersecurity patents walk a fine line between openness and proprietary demands. How do you balance the two?

It’s a constant tension. Open models accelerate progress, but openness can also let people or companies with bad intent misuse the work. The goal is balance. Share what helps the community move forward; protect innovations that could be misused.

Whether code is open or protected, intent matters. You can innovate fast without abandoning responsibility.

How can cybersecurity patents foster a pro-innovation culture?

For many of us, patents are part of our legacy. The work we do for clients is important, but patents stay with you for life. That sense of ownership inspires people. When interns come in, we involve them in patent pods, and when employees see their ideas turned into patents, it sends a clear message. Innovation is not limited to senior inventors, anyone can contribute. 

So yes, patents are technical artifacts, but inside a company, they are also culture markers. They show employees that their creativity matters, their ideas are protected and that they are rewarded.

Given some of the competing priorities in cybersecurity — AI-powered defenses, quantum cryptography, reskilling and training — where should CISOs focus their innovation efforts for greatest impact?

AI, without question. Quantum-safe encryption is essential work, but it’s a long-term play that requires deep cryptography expertise and collaboration with standard-setting bodies. 

AI is where every company can make progress now — automating detection, triage and response; predicting threats before they happen; and simplifying the analyst’s workload. If you have to place your bets for the next few years, it’s AI. It’s the single biggest lever to build resilience and trust.

What other lessons might security executives draw from your experience?

Patents in cybersecurity are not vanity metrics, but rather proof points. They demonstrate to employees that innovation is valued, [and they] show customers and regulators that you’re serious about protecting data. And they give companies a competitive edge by embedding innovation directly into operations.

Ultimately, they are about trust. In a digital economy under constant threat, that’s the most valuable currency we have.

Securing the Economy for the Quantum Era

Originally appeared on Perspectives by Palo Alto Networks.

Encryption is the invisible plumbing of the global economy. Every bank transfer, hospital record, stock trade and power-grid command depends on it. And yet, with the rise of quantum computing, that plumbing has developed a crack that’s widening fast.

Few people know more about that threat than Sridhar Muppidi, an IBM fellow and chief technology officer of IBM Security. A longtime researcher and architect of enterprise security systems, he advises companies and governments on how to prepare for next-generation threats. In his view, quantum computing represents an important technological breakthrough and a major test of long-term economic security.

Quantum machines promise enormous benefits in fields like drug discovery and climate science. But the same power that fuels those advances can break encryption standards that safeguard trillions of dollars in transactions and vast stores of sensitive data. Cybercriminals know this, which is why they’re already stealing encrypted data today to unlock and exploit once quantum computers catch up — a scheme known as “harvest now, decrypt later.”

Thus, as Muppidi says, the race is on. Experts warn that some widely used cryptographic algorithms could be broken between 2028 and 2032, well within the planning windows for government and business. The challenge is reminiscent of the Y2K threat in the years leading up to 2000: the feared meltdown was avoided not because the risk was overstated, but because early, coordinated action paid off.

I recently spoke with Muppidi who shared why the decryption threat will be as complex as Y2K, why designing crypto-agile systems that can adapt rapidly to new cryptographic standards is more than a one-time upgrade, and why the future of digital trust depends on starting now.

With the rise of quantum computing, how safe is the data that companies currently consider secure? How real is the threat that today’s encrypted data will be decrypted in the future?

It is definitely a real and immediate problem. The threat is called “retroactive decryption” — cybercriminals storing encrypted data now to decrypt later. The current reality is that people are already collecting encrypted data, especially financial data. We see that on the dark web. Current algorithms may become vulnerable within the next decade depending on quantum breakthroughs.

So the timeline is anywhere from 2028 to 2032. We should be worried about it right now. However, only about 5% of companies are preparing for it. It’s not a question of the sky falling immediately, it’s about the decisions we are making. It will cost us more if we don’t take advantage of what we know about quantum safety.

Where across the economy do you see the greatest areas of concern?

The biggest risks are in the financial and critical infrastructure sectors.

Financial markets are vulnerable because every transaction, from phone banking to bank-to-bank transfers, relies on RSA and ECC encryption that quantum computers can break. Because banks are so interconnected, the Bank for International Settlements has warned that quantum risk could undermine critical financial encryption, impacting global markets.

Power grids, communications, and transportation all use encrypted control systems. If quantum computers allow cybercriminals to break into power grids, they could shut down electricity, immediately knocking out the internet along with banking, hospitals, and other types of critical infrastructure.

The scenarios that worry me most? Attackers breaking into payment systems to manipulate stock trades, mass credit card fraud after decrypting years of stored banking data, and coordinated attacks that simultaneously shut down power, internet, and transportation.

How do these threats rank against other cyber risks, including those powered by AI?

Quantum and AI create different types of risk that need to be defended against at the same time.

Quantum threats work like data thieves — stealing information now to unlock later. AI-powered attacks work like smart burglars, constantly testing defenses and adapting in real time to break in.

The biggest concern is quantum and AI working together — using quantum computers to make AI attacks much faster and more powerful while also breaking encryption. This isn’t science fiction; researchers are already using quantum computers to improve AI systems.

Companies face a tough choice: AI attacks demand immediate attention and resources, while quantum threats need long-term planning because they could do much more damage. Financial institutions now consider quantum their biggest long-term threat and AI their biggest daily threat. That forces them to invest in both immediate defenses and future-proof encryption.

Achieving quantum-resistant encryption obviously isn’t as simple as flipping a switch. What lessons can we take from past transitions to a new technology?

You can’t quite equate it to Y2K but it’s a helpful way to explain the issue.

It’s not just the year that quantum computers break cryptography. It is a prolonged process to transition to a new cryptography regime. For Y2K, preparation was a multi-year process and cost about $100 billion, which is around $190 billion today. Unlike Y2K, quantum migration will require ongoing adaptation and revalidation, not a single deadline. But Y2K does show the massive scale that we should think about with YQK, and the earlier we start to address it, the better off we will be.

The scale of that effort is what leaders should keep in mind with quantum. Planning years in advance is the only way to reduce both risk and cost.

There is both cooperation and competition in the race to develop quantum computing. How do you see this shaping the race to achieve quantum-resistant cryptography?

It’s not a single entity or vendor problem. Major players, like the U.S. and the European Union, are investing quite a bit. China is making big investments. I believe the E.U. and the U.S. are establishing some joint quantum benchmarks. Companies like IBM, Microsoft and Google, as well as universities, are contributing.

This activity helps advance technology like the NIST standards for quantum-resistant cryptography. It’s worth noting that it took eight years to create these standards.

Transitioning to quantum-safe cryptography will be a multi-year effort across industries, governments, and supply chains. This needs executive oversight from the CISO and/or CTO and alignment across vendors and partners, since migration spans the entire enterprise ecosystem. Organizations should systematically discover and document all cryptographic assets and dependencies before migration begins. They should inventory cryptography, prioritize upgrades, and coordinate internally and externally. The later organizations start, the harder and more expensive it will be for everyone.

The Year Ahead: What Will Become the 3 Pillars of Trust in an AI-First World?

Originally appeared on Perspectives by Palo Alto Networks.

Today, the conversation in every boardroom is most likely centered on a single, transformative force: artificial intelligence (AI). Many see it as the engine for unprecedented growth, efficiency and innovation. And, while this belief is justifiable, the entire revolution is being built on a fragile foundation of trust — an already fragile ground that is about to shift even further.

As AI systems begin to manage supply chains, deploy code and execute financial transactions, the nature of risk changes entirely. The primary threat becomes the catastrophic cost of disruption to the intelligent systems that form the central nervous system of modern business.

To harness AI’s promise while mitigating its existential risks, we already know that leaders must move beyond a defensive security posture. To be effective, leaders must also fundamentally shift how they view security as a whole. They must view it as the foundation that innovation is built on, not as a barrier to progress. To do this, we, as a collective, must build a proactive strategy based on three core pillars of trust.

1. Engineering for Trust

Trust cannot be an afterthought; it must be an engineering outcome. In the past, security was often a gate that slowed progress. Today, that model is inverted. A modern, unified security platform with trust built in by design now serves as a powerful strategic accelerator.

Automated security, when treated as a native component of the AI development lifecycle, eliminates the traditional brakes on progress. This enables our teams to innovate and deploy new models with the speed and confidence that delivers a direct, quantifiable competitive advantage. This transition from a reactive posture to one that ensures innovation velocity is key.

The “engineering for trust” approach also allows us to address a silent liability plaguing many organizations: decades of accumulated security debt. A patchwork of disconnected point products creates a complex and vulnerable attack surface, a problem now amplified by the cloud. Our exclusive internal research found that a majority of cloud databases related to AI development are not properly secured, lacking basic encryption or access controls. 

Moving to a unified, trustworthy platform is akin to refinancing this debt — a solution that any board member would be amenable to. This type of platform simplifies operations, reduces long-term risk and frees up our most valuable resources to focus on growth instead of just defense.

2. Cultivating Cultures of Trust

A single human error can undermine even the most perfectly engineered system. While technology provides the foundation, a vigilant and security-conscious culture forms the crucial human layer of the trust stack.

In an era of AI-powered phishing and sophisticated social engineering, every employee must become a steward of their organization’s security. This challenge is magnified by the rise of shadow AI. Our latest research on SaaS risks reveals that the use of unsanctioned third-party AI tools in the enterprise has skyrocketed, creating a massive blind spot where sensitive corporate data is regularly fed into untrusted models. That is why this pillar demands more than annual training videos. It requires a deep-seated culture of awareness where people are empowered to question anomalies and act as the first line of defense.

The value of this culture extends far beyond risk mitigation. A strong culture provides the ethical guardrails that ensure AI is used responsibly, protecting the brand and maintaining customer confidence that is so difficult to earn and so easy to lose. Its essential, human-driven process protects the organization from the inside out.

3. Governing for Trust

The speed and scale of modern AI demand a new governance model built on two key principles: unwavering human control and radical industry-wide cooperation.

First, we must design systems that guarantee human oversight. Robust, human-in-the-loop governance is the ultimate safeguard against the catastrophic business disruption that autonomous systems could otherwise trigger. It is the board-level guarantee that our most valuable tools remain under our command, operating as intended.

Second, we must recognize that we cannot face this new threat landscape alone. AI-powered attacks are an ecosystem-wide problem that demands an ecosystem-wide defense. Sharing threat intelligence and best practices across companies and industries is a core business necessity for our collective survival and stability.

Trust as the Ultimate ROI

To lead in the age of AI, our strategy must be clear. We need well-engineered systems that accelerate the business, a vigilant culture that protects it and a robust governance that ensures its resilience. The goal of a modern security strategy has fundamentally changed, shifting from merely preventing incidents to actively creating and protecting value.

In the AI-first world, thriving organizations will understand that trust is the most valuable asset on their balance sheet and the ultimate driver of their success.

Curious what else Ben has to say? Check out his other articles on Perspectives.

Enterprises Are Embracing AI. But Can They Secure it?

Originally published in Cybersecurity Dive on May 20, 2024.

AI applications are vast and varied: we’ve seen everything from intelligent customer service chatbots, AI-powered language processing tools, and even bespoke machine learning models for business analytics. But if there is one glaring hole that has emerged as more enterprises utilize AI, it’s the critical issue of security.

A recent Gartner study predicted that, by 2026, more than 80% of enterprises will have used AI APIs or deployed generative AI applications. That is a staggering number and its applications cannot go unregulated. Never has it been more important to ensure the confidentiality and integrity of the data this AI is processing. 

The spotlight on the AI era can sometimes seem as if it’s only shining on its benefits. But we’d be remiss not to acknowledge it’s also an era in constant flux and rife with escalating threats. Safeguarding digital assets in the wake of AI and preserving the integrity of networks is a tireless pursuit. And amidst this pursuit, two key challenges consistently emerge: unsanctioned AI usage and ever-evolving, complex AI infrastructures that follow.

Yes, AI is a game-changer. But when the game changes, so, too, do the rules. These challenges, while serious and complex, are solvable with a holistic approach to AI security.

Unsanctioned AI

The proliferation of third-party AI applications coupled with the allure of its benefits often leads employees to bypass official channels and deploy them without proper approval or oversight. And despite the best efforts of IT departments to enforce security policies and guidelines, this unsanctioned usage poses significant security and data risks for organizations. Without visibility into which AI applications are being used, how they're being used, and the associated risk profile, IT departments often find themselves in the dark, unable to effectively monitor and mitigate potential threats.

Third-party AI applications also introduce additional complexities related to data privacy, compliance, and governance. As these applications mature, so, too, should their sophistication. But that’s not always the case, as these applications have inadvertently exposed sensitive data and violated regulatory requirements, heightening the risk of costly data breaches and legal repercussions.

Security is no longer a matter of technical prowess; it's a strategic imperative that demands innovative solutions. Furthermore, to imply there is a single solution to addressing the challenges associated with unsanctioned AI usage would be misleading; it unequivocally requires a multi-faceted approach. Organizations must implement robust policies and procedures for evaluating, approving, and monitoring the use of AI applications. They must also invest in comprehensive AI security solutions that provide visibility into all AI usage across the enterprise, enabling proactive threat detection and response.

Compounding AI Infrastructure

Whether enterprises are dipping their toes into AI or building its uses into their operations, they face the daunting task of managing increasingly complex infrastructures. Protecting AI infrastructure requires organizations to address a seemingly endless number of security concerns, including securing the AI development lifecycle, guarding sensitive data, and defending against AI-driven attacks. With AI models and datasets becoming increasingly valuable assets, organizations must implement resilient security measures to safeguard them from unauthorized access, manipulation, or theft.

What’s more, failure to ensure an organization’s AI operations comply with relevant regulatory requirements, industry standards, and internal policies could result in costly fines, reputational damage, and legal liabilities.

In response to this growing AI usage, organizations have begun to build intricate ecosystems of tools, platforms, and technologies to support AI-powered applications. In fact, according to recent studies, the average company employs a staggering 45 cybersecurity tools. But this rapid expansion hasn’t solved the problem, it’s created a convoluted mess of tools that have led to undue fragmentation and interoperability issues. There is a better way and companies must be proactive in their approach to building a thoughtful infrastructure. 

Securing AI Tools

The first step in solving these challenges (and perhaps the most obvious step) is ensuring that confidential data remains secure when using AI tools. While there are a myriad of strategies to safeguard confidential data in the context of AI operations, here are the ones that are most critical.

Data Encryption

Implementing encryption mechanisms can help protect information from unauthorized access. By encrypting data both at rest and in transit, organizations can ensure that confidential data remains secure, even if it falls into the wrong hands. Advanced encryption algorithms and key management practices can further enhance data protection and mitigate the risk of data breaches.

Access Controls

Enforcing strict access controls is essential for limiting access to confidential data and preventing unauthorized users from viewing or modifying sensitive information. Role-based access controls (RBAC), multi-factor authentication (MFA), and privileged access management (PAM) solutions can help organizations enforce least privilege principles and restrict access to sensitive data based on user roles and permissions.

Anonymization and Pseudonymization

Anonymizing or pseudonymizing data can reduce the risk of data exposure and help organizations comply with data privacy regulations such as GDPR and CCPA. By replacing personally identifiable information (PII) with anonymized or pseudonymized identifiers, organizations can protect individual privacy while still deriving valuable insights from the data.

Compliance with Regulations

Compliance with data privacy and security regulations is crucial for organizations leveraging AI tools and technologies. Regulations such as GDPR, HIPAA, and PCI-DSS impose strict requirements for the handling, processing, and storage of confidential data. Organizations must ensure that their AI operations comply with these regulations to avoid legal ramifications and reputational damage.

Regular Audits and Monitoring

Conducting regular audits and monitoring activities can help organizations detect and mitigate potential security risks and compliance issues. By continuously monitoring AI operations, organizations can identify anomalous behavior, unauthorized access attempts, and data breaches in real-time, allowing them to take prompt corrective action and prevent additional damage.

Platformization

But how can companies implement and enact these policies if one of the biggest hurdles of AI security is its complexity? The best thing they can do is to embrace the idea of platformization. Platformization can fundamentally change how enterprises approach AI security by centralizing efforts within existing cybersecurity platforms. 

This will enable enterprises to manage AI security alongside other cybersecurity functions, such as network security, endpoint protection, and cloud security. Implementing this centralized approach allows security teams to monitor and mitigate threats more effectively, minimizing the risk of security breaches and data loss.

Securing AI Operations

It’s not just enough, though, that the tools are secure, a company’s AI operations must also be sound. Perhaps one of the most innovative steps a company can employ to secure these operations is to develop custom AI models. 

Developing custom AI models is not a simple process, but it’s a necessary one. It involves a series of steps, including data collection, preprocessing, model training, evaluation, and deployment. While venturing across these steps, organizations must also carefully define their business objectives, gather relevant data sources, and select appropriate algorithms and techniques to train the model. Custom AI models are often built using machine learning frameworks, allowing organizations to leverage advanced algorithms and techniques to address specific business challenges.

Even considering all of these techniques, securing AI operations involves more than just developing and deploying custom AI models. Security considerations should be incorporated into every stage of the AI development lifecycle to mitigate potential risks and vulnerabilities. This includes implementing data security measures to protect sensitive information, integrating authentication and authorization mechanisms to control access to AI resources, and conducting thorough security assessments and code reviews to identify and address security flaws and weaknesses.

By incorporating these security considerations and best practices into the AI development lifecycle, organizations can effectively secure their AI operations.

Looking Ahead

Organizations must safeguard and protect their digital assets – this should never be negotiable –  because when it comes to AI, the issue is paramount. As more enterprises continue to explore and embrace AI to drive digital transformation, it's essential to stay vigilant and proactive in defense strategies and adopt a holistic approach to cybersecurity. 

There needs to be more diligence when it comes to AI applications and more security protocols to protect against unsanctioned usage. These approaches should include integrated security solutions that provide end-to-end visibility, centralized management, and automated threat detection and response capabilities. 

By taking necessary and thoughtful steps to secure AI usage and infrastructure, organizations can mitigate risks, protect sensitive data, and ensure the integrity of all AI deployments.

The Secrets to Sustainable Success

Originally published on Banyan Infrastructure on May 15, 2024

With any investment, risk is a possibility. Whether it’s a single stock or a major construction initiative, there are no guarantees when investors put their money into a project. This is especially true for the sustainable infrastructure industry, where speed, accuracy, and efficiency are paramount to any project’s success. From securing deals to navigating intricate regulatory frameworks and managing multifaceted projects, investors face a myriad of challenges. These challenges can not only have a profound effect on timelines but can also destroy a company’s competitive edge. 

‍Why is the Process Flawed?

While the list of challenges facing the sustainable infrastructure industry is vast and long, there are common problems for a number of companies. And since sustainable infrastructure deals are inherently complex and unique, they demand innovative approaches for effective scalability. 

Let’s explore some of the common pain points and, perhaps, most importantly, how to solve them.

Inefficiencies in Manual Processes 

Manual data entry and the use of disparate systems is rampant across the industry. It frequently results in a lack of visibility into tasks and performance, leading to costly errors and mismanagement of the process. Manual data entry, fragmented systems, and disjointed processes create confusion, misalignment, and frustration. 

These inefficiencies not only consume valuable time and resources but also hinder a company’s ability to scale – something many in the sustainable industry have already expressed. In fact, a recent survey by Banyan Infrastructure revealed a division in annual growth goals by organizational size: the smaller the firm, the greater the focus on quick growth, and the larger firms, the more focus on internal efficiency and diversification.

Of the organizations with 0-10 annual projects, 78% said their main concerns are to increase deal velocity and improve liquidity. On the other hand, firms with 50+ projects focus on expanding their investment appetite for different deal types (75%) and diversifying portfolios (63%). This stark contrast not only sheds light on the challenges different-sized organizations face but highlights the fact that all organizations need to tailor their approaches to meet evolving market demands and achieve sustainable growth.

This cannot be achieved, however, without a single source of truth across deals and portfolios; a unified platform that consolidates data from various stakeholders and tech stacks will eliminate the struggle so many companies currently face. Without real-time access to accurate and up-to-date information, decision-making will continue to be hindered, and deals will continue to be jeopardized.

High Overhead Costs

Scaling operations cost-effectively is a formidable challenge in the sustainable infrastructure landscape. Traditional processes are not conducive to scaling operations due to their high overhead costs and required manpower, making it challenging to pursue deals profitably. 

Moreover, the high overhead costs associated with smaller, distributed projects present barriers to entry for new market participants. Without scalable processes and systems in place, investors will continue to wrestle with profitability and struggle to capitalize on market opportunities. This growing complexity and the sheer volume of deals require new approaches to deal management.  

Need for Speed and Efficiency 

Speed and efficiency are critical for any industry but perhaps nowhere near as important as for the sustainable infrastructure industry, with BloombergNEF reporting a need for annual clean energy investment of $4.8 trillion through 2030. This staggering number indicates the critical need for improved deal velocity. But considering how long application processes can be and how long deals take to close, this investment is almost impossible to achieve using these outdated processes and systems. These traditional methods, instead, act as industry bottlenecks, hindering transaction speed and preventing investors from capitalizing on market opportunities quickly.

Efficient workflows and real-time insights are not only essential, they have already proven useful. With Banyan Infrastructure, the Sumitomo Mitsui Banking Corporation’s (SMBC) duration improved deal velocity by 30 days, enabling more than a 40% increase in deal throughput. SMBC will also see an estimated 25% time savings per deal. These numbers indicate almost a near elimination of risk of missing out on lucrative deals and falling behind competitors.

Compliance Obligations and Regulatory Challenges

New legislation, including the Inflation Reduction Act and the Greenhouse Gas Reduction Fund,  and evolving regulatory frameworks introduce additional compliance obligations that are difficult to track across an extensive portfolio. Manual tracking and management of compliance requirements further exacerbate the challenges associated with deal-making processes and increase the risk of non-compliance and regulatory penalties. Furthermore, any new legislation introduces additional compliance requirements that are difficult to track manually, A growing portfolio requires simplified tracking and oversight, eliminating the need for complex and time-consuming tasks for investors. 

These traditional methods of deal management – reliant on manual processes and static models – have long proven inadequate when confronted with the need for scale. Merely adding more manpower to address scalability issues is neither affordable nor practical. Investors must embrace a strategic investment in project finance software solutions. 

But by embracing project finance software tailored to your goals, investors can not only streamline their operations but also gain a distinct advantage in navigating the complexities of sustainable infrastructure. A comprehensive software solution has already provided a strategic pathway to maximizing cost and efficiency throughout the entire investment life cycle for hundreds of companies.

“What We’ve Been Doing Has Been Working…”

In the sustainable infrastructure industry the adage “What we’ve been doing has been working” resonates loudly. And for some, it’s true. But not only is it not sustainable, it’s wholly inefficient and unnecessarily costly. 

Let’s be clear: a comprehensive software solution that provides an end-to-end digital trail is the only solution for those in the sustainable infrastructure industry. It will streamline operations, reduce overhead costs, enable effective deal execution at scale, and accurately report on performance. 

Software solutions aren’t catalysts for transformation, they are the basis of it. Rethinking the way things have been done in sustainable infrastructure will enable investors to mature their processes and support portfolio growth. 

Benefits of a Digital Sustainable Software Solution

Proven Time and Resource Savings

Centralizing data, automating tasks, and providing real-time insights streamline workflows and eliminate the inefficiencies associated with traditional processes. Investors leveraging project finance software have already experienced significant time and resource savings. In fact, a recent survey revealed that 38% of respondents spent over 5 hours weekly on data management and process administration tasks. Critically, of the respondents in executive roles, 60% spent 5+ hours per month on reporting for portfolio management.

With a software solution, tasks that once required hours of manual labor now require only a fraction of that time. This doesn’t eliminate processes, it streamlines them, allowing investors to focus their resources on strategic activities that drive value and growth.

Enhanced Operational Efficiency

Project finance software empowers investors to optimize their operations and maximize efficiency throughout the entire investment life cycle. By standardizing processes, eliminating redundancies, and automating routine tasks, a purpose-built software solution enables investors to achieve more with less. 

Operational efficiency gains translate into tangible benefits such as faster deal execution, improved accuracy, and reduced risk exposure, ultimately driving better outcomes for investors. Another leading investment firm reported a 25% increase in deal throughput and a 20% reduction in time per deal after implementing project finance software.

Centralized Decision-Making

Central to the value proposition of project finance software is its ability to provide real-time insights and actionable intelligence. By aggregating data from disparate sources and presenting it in a unified dashboard, these solutions empower investors to make informed decisions with confidence. Whether evaluating investment opportunities, assessing risk, or monitoring portfolio performance, investors can access the information they need when they need it – anytime, anywhere. 

These insights enable them to react swiftly to changing market conditions and capitalize on emerging opportunities. A recent example showcased how a global investment firm achieved a 30% increase in deal velocity and a 15% improvement in investment returns by leveraging project finance software.

Cost Reduction and Profit Maximization

But the most compelling benefits of all are the potential for cost reduction and profit maximization. Project finance software enables investors to reduce operational costs by enabling employees to focus on tasks that matter, eliminating mundane, manual processes from their responsibilities. 

Software presents an opportunity for companies to create efficient workflows in a fraction of the time while minimizing the risk of errors and inaccuracies and reducing turnover because of employee burnout. By operating more efficiently, investors can maximize profitability per deal and achieve higher returns on their investment. 

Furthermore, the scalability afforded by project finance software allows investors to pursue deals at a larger scale without incurring proportional increases in overhead costs, unlocking new avenues for growth and expansion. A major organization utilizing project finance software reported a 30% decrease in overhead costs and a 25% increase in deal profitability.

Looking Ahead

Investing in the right software solutions is essential for sustainable success in the competitive world of sustainable infrastructure investment. By streamlining deal-making processes, accelerating execution, and reducing operational costs, these solutions empower investors to maximize efficiency and achieve their investment goals more effectively. 

As the demand for sustainable infrastructure investment continues to grow, investing in the right software solutions will be crucial for staying competitive and capitalizing on market opportunities.

The Gig Economy Goes Beyond Uber and Lyft – But We Still Need a Way to Safeguard Independent Workers. Here's How.

Originally published on Nowsta’s website on June 21, 2023.

The gig economy has become something of a hot topic in recent months. It’s seen rapid growth, transformed how businesses operate, and opened doors for millions of flex workers. And while platforms like Uber and Lyft have become synonymous with gig work, the gig economy encompasses a much broader range of industries and occupations. From delivery drivers and freelance bartenders to catering servers and stadium attendants, gig work offers flexibility and autonomy to millions of workers worldwide. However, while this type of work offers freedom and flexibility, there still comes a need for adequate protection and support for these individuals. 

In this article, we’ll explore how the global gig economy extends beyond the well-known ride-hailing services and discuss the importance of establishing mechanisms to safeguard the rights and well-being of the gig worker.

The Benefits and Challenges of Flex Work

While ride-hailing platforms like Uber and Lyft have played a significant role in popularizing the gig worker role, these businesses represent just a fraction of the gig economy’s vast ecosystem. It has permeated industries from food delivery and home assistance to creative work and professional services. 

The expansion of flex work can be attributed to technological advancements, changing work preferences, and the increasing demand for flexible solutions in the labor market, with flexibility often the primary draw of gig work. Individuals choose when, where, and how much they want to work, offering a level of autonomy that is highly appealing. The gig workforce encourages people to balance their personal lives, pursue other interests or education, and create a customized work schedule that suits their needs. And the diversification has enabled individuals to earn income and build their careers outside traditional employment models.

However, the gig economy also presents significant challenges. One of the most pressing issues is income volatility. Without a stable paycheck, these independent workers often face unpredictable earnings, making it challenging to budget and plan for the future. Additionally, gig economy workers typically lack access to traditional employee benefits such as health insurance, retirement savings plans, and paid time off. This absence of essential safety nets can leave them financially vulnerable and exposed to risks.

Another challenge is the lack of labor protections and job security. Unlike traditional employees, gig workers are often classified as independent contractors or independent workers, meaning they are not generally entitled to the same legal safeguards, such as minimum wage guarantees, unemployment insurance, overtime pay, and protection against unfair termination. This classification can leave gig economy workers in a precarious position without the same level of stability and recourse as traditional “9-5” employees.

Ensuring Fairness and Protection in the Gig Economy

As gig economy work continues to grow and reshape the labor landscape, it is essential to establish fair and equitable conditions for independent workers. This requires a multi-faceted approach involving policymakers, gig economy platforms, labor organizations, and other stakeholders.

One crucial step is to develop legal and regulatory frameworks that recognize the unique nature of gig work and provide appropriate protections. This includes reevaluating the classification of so-called “independent contractors” and establishing a more comprehensive system that ensures fair compensation, wage growth opportunities, benefits, and labor rights. Some jurisdictions have already taken steps to introduce legislation granting gig workers certain employment benefits while maintaining flexibility.

Technology as a Catalyst for Positive Change

Technology plays a pivotal role in driving positive change within the gig economy. Digital platforms have the potential to provide gig workers with access to resources and support that were traditionally reserved for full-time employees. These platforms can offer gig workers personalized benefits packages, facilitate access to healthcare services, and provide tools for financial planning and income stability.

While this may seem daunting, some platforms have already partnered with insurance providers to offer gig workers affordable and flexible health coverage. These partnerships enable gig workers to access essential medical services, promoting their well-being and mitigating some risks associated with lacking traditional employer-sponsored benefits. Other platforms leverage and collaborate with third-party providers to offer retirement savings plans and professional development opportunities tailored to flex workers.

Moreover, technology can facilitate the creation of communities and networks where gig workers can connect, share experiences, and access professional development opportunities. By leveraging technology, gig workers can build support systems, gain access to training resources, and expand their skill sets, ultimately enhancing their employability and long-term career prospects.

Collaboration and Stakeholder Responsibility

Addressing the challenges gig workers face requires collaboration among various stakeholders. It will take time and patience, but it is by no means an insurmountable task. Policymakers, technology platforms, labor organizations, and the workers themselves must come together to shape the future of work to ensure fairness and protection.

This collaboration involves ongoing dialogue to identify and address emerging issues, such as evolving work models and the impact of automation on gig work. By actively engaging all stakeholders, we can collectively develop innovative solutions that strike a balance between flexibility and worker well-being.

Successful collaborations have already emerged in the gig economy landscape. For example, the Fairwork Foundation, an independent organization that sets standards for fair work in the gig economy, has developed a set of criteria that businesses can use to assess their compliance with fair labor practices. These initiatives not only benefit gig workers but contribute to the overall sustainability and growth of the gig economy. But while there have been advancements, it’s imperative more platforms partner with organizations to establish industry-specific standards and codes of conduct to safeguard and benefit flex workers.

What’s Next for the Gig Economy?

As the gig economy continues to expand, it is crucial to recognize the diverse range of industries and occupations that now fall under the gig work umbrella. While the flexibility and autonomy provided by gig work are undoubtedly appealing, it is equally important to address flex worker challenges.

By establishing legal frameworks that protect gig workers’ rights, leveraging technology to create supportive platforms, and fostering collaboration among stakeholders, we can ensure that the gig economy provides fair and sustainable opportunities for workers. Yes, the gig economy can empower individuals, but it is our collective responsibility to shape it into a force that upholds the well-being and rights of those who participate in it.

What In-Store Experiences Look Like In A Post-Pandemic World

Originally published in Forbes on October 5, 2022.

When the pandemic hit, dozens of industries suffered from its effects. Particularly affected was the retail brick-and-mortar industry. As retail sales plummeted, in-store visitations slumped, and browsing all but became a thing of the past, many wondered if the in-store shopping experience was extinct. But lately, we’ve seen a resurgence of in-store shopping, with many eager to return to that brick-and-mortar experience.

I spoke with Bobby Marhamat, CEO of Raydiant, the leading in-location experience platform, to learn more about how retailers can create a seamless shopping experience. I wanted to understand how brick-and-mortar retailers could offer both the benefits of online shopping and the in-store experience while surmounting the industry's current challenges.

Gary Drenik: What’s the major challenge brick-and-mortar businesses are facing in a post-pandemic world?

Bobby Marhamat: During the pandemic, consumers became accustomed to the online shopping experience. It made sense, too. After all, shopping online offered convenience and ease. People could “shop” wherever they wanted, whenever they wanted – all from the safety of their homes. Online shopping became a potent tool during the pandemic. But as restrictions eased and the world began to open up again, people began returning to stores. In fact, retail sales are up almost 14% compared to the pre-pandemic levels.

But some challenges arose when stores reopened, the most prominent of which was the convergence of online and offline experiences. Since people were conditioned to the online shopping experience, retailers needed to find a way to bridge the gap between online and in-store experiences. Just this year, a survey found that nearly 50% of brands say unifying online and in-store operations and data will be their biggest challenge over the next year.

Online, customers have access to an incredible amount of information: price, reviews, videos, product information, dimensions, specs, and similar products. In-store, however, you essentially have the price, and that’s about it. That just isn’t sustainable. If retailers don’t find a way to create that online/in-store convergence, they’re destined to fail. Some stores are taking measures to bridge that gap, but others haven’t connected the online/offline experiences yet. Mitigating this challenge will be a major factor in determining who succeeds in retail – and who doesn’t – in the years ahead.

Drenik: Do you think brick-and-mortar will continue to have a stake in the future of retail and how will this future connect with e-commerce?

Marhamat: 100%. A bunch of brands have learned how to engage and sell to their [ideal customer profile]. Part of what happened during the pandemic was that 75% of people were changing brands because everything felt commoditized. That’s huge, especially considering a recent survey by Prosper Insights and Analytics found that 61% of consumers currently participate in customer loyalty programs. People want to see, touch, and feel the brand. It isn’t just about the online experience anymore.

Brand loyalty is paramount to the in-store shopping experience. Not only does it cement brand loyalty, but it also offers opportunities to upsell and improves dwell times. A customer who shops in-store spends 31% more rather than online. Online is about convenience, but in-store is about the experience.

Drenik: What role will digital signage play in the future of retail?

Marhamat: Its most prominent role will be around engagement. Yes, digital signage is great for displaying a menu or advertising a recent promotion. But digital signage must be interactive to truly transform the in-store experience. One of our customers saw an 8% increase in consumer spending once they started playing music from their digital displays.

We recently acquired Perch because we know digital signage isn’t enough. This technology is a game-changer for the retail industry. If somebody interacts with a product on a shelf, stores can play ads curated for the product they just picked up. Yes, this is still digital signage, but now we’re able to create smart, personalized digital experiences for consumers in the store – all because we know what item is currently off the shelf. Retailers will need to embrace that cohesive experience.

Drenik: What can retailers do to modernize their business right now?

Marhamat: Frankly: invest in technology. They need to become familiar with more products beyond digital signage. It isn’t just about digital signage anymore; that’s only one part of modernizing the in-store experience. Education with Lift and Learn.

People want to engage with brands, and retailers need to find engaging ways to do this. Creating that positive in-store experience using the latest technology has already produced results. Raydiant did a survey recently and found that 61% of consumers are likely to spend more at a location – and 90% said they are likely to return to that store – if they have a positive in-store experience. Those are numbers brick-and-mortar retailers can’t ignore.

Drenik: The metaverse has been quite the buzzword lately. How do you see retail evolving once the metaverse becomes mainstream?

Marhamat: There are a lot of brands tinkering in the metaverse right now. Many questions people currently have pertain to whether this will be mainstream or not. Can companies effectively tie in AI and AR to physical locations?

Given where we are today, there are a lot of investments in the metaverse – but those investments aren’t universal. I know Adidas is investing heavily in it, but other brands like Sephora aren’t so much. This circles back to the same thing we’ve been talking about. Should retailers invest in the metaverse or virtual experiences in a real-life environment? It’s a tricky line right now, but these are questions many retailers should be asking now.

Drenik: What’s in store for the future of brick-and-mortar?

Marhamat: The future of brick and mortar is digitizing the physical store locations. It’s already shown it can increase revenue and brand loyalty. The ones that are well-versed and investing in this digital transformation are going to be the ones to succeed. Walmart is already investing heavily in this. They have virtual agents in many of their stores’ sections – no employees, just these virtual agents. Retailers need to bring that online experience inside the store. If they do, they’ll separate themselves from the retailers that thrive and those that fail.

The History Of Brick-And-Mortar Retail (And What’s In Store For The Future)

Originally published in Forbes on August 16, 2022.

No matter what changes, one principle remains the same in retail: getting customers the products they need and giving them a great experience while doing so.

Of course, brick-and-mortar retailers certainly have changed over the years. Store sizes have expanded and contracted, technology has transformed processes and procedures, the internet has enabled new ways of selling and marketing and customer expectations for what they want in an in-store experience shift each year. The Covid-19 pandemic has also impacted brick-and-mortar operations and will be a time that future retailers point back to and say, “That was a moment that changed retail.”

Brick-and-mortar retail has a bright future—simply consider the fact that small business revenue has grown 53.05% between 2016 and 2022—but only if retailers can learn from the past and embrace the future.

A Short History Of Brick-And-Mortar

The history of brick-and-mortar retail dates back as far as people have been selling products to other people from a physical location. When we think of the modern age, we think of general stores, the primary retail experience that served communities living outside of cities in the 1800s. The general store carried everything someone could need in one location—though the experience was more utility than anything and very different from the specialty shops and urban markets of the city.

As more people began moving to cities in the mid-1800s, the need for a one-stop-shop was realized in the creation of department stores, with Jordan Marsh opening in 1841, Macy’s opening in 1858 as a dry goods store and Sears—with its robust mail-order catalog business—opening in 1886. Department stores carried everything consumers would need, from clothing to home goods to furniture, and often featured “evocative displays, exhibits, demonstrations, and lectures,” creating a truly unique shopping experience.

After WWII, the population began spreading to the suburbs, and another concept arose: malls. Typically anchored by department stores and “big box” stores that were created in the mid-1960s, malls catered to many different demographics of shoppers, with an experience that included not just stores but food courts, movie theaters and other entertainment.

The next big shift for retail? The internet. E-commerce officially began in 1979, and the 1980s and 1990s saw a revolution in the way people could shop. Now consumers could visit a website from their home—such as Amazon, which launched in 1995, with no physical location—make purchases using their PayPal account and simply be shipped their products.

With the rise in popularity, ease of use and convenience for online retailers also came the question: “Is this the death of brick-and-mortar retail?” It seemed so when, in 2016 and 2017, brands including JCPenney, RadioShack, Payless, Urban Outfitters and many others closed their stores or filed for bankruptcy.

It wasn’t the death of brick-and-mortar but the beginning of brick-and-mortar needing to look different from what it had been. Knowing that they couldn’t compete on price or breadth of inventory, brick-and-mortar retailers knew they had to compete on experience instead.

A 2020 study of independent bookstores found that because they couldn’t compete against Amazon on price and convenience, brick-and-mortar stores focused on creating community, providing hand-selected product curation and offering a place for people to convene over shared interests. By creating a great in-store experience for customers, independent bookstores grew despite Amazon’s presence—a 49% growth in the number of stores in the U.S. between 2009 and 2018.

Then came the Covid-19 pandemic and lockdowns that forced many retail locations to close to customers for upwards of two years. Literally overnight, brick-and-mortar retailers needed to rethink their business strategies and get creative with new initiatives. These included innovations such as buy online, pick up in-store (BOPIS) options, curbside or home delivery, virtual concierge service or events to keep engagement high, and expanding e-commerce offerings.

Now that the pandemic is easing and stores are reopening, where do we go from here?

Brick-And-Mortar Retail’s Future Trajectory

Already retailers have been adopting new innovations such as touchscreens to facilitate checkout, apps to help find products in the store and digital displays to keep customers up to date on both in-store product features and safety measures. As retail moves forward, it won’t go back to many of the approaches it had before the pandemic—it can’t, especially since customers are now used to in-store features such as BOPIS and self-checkout.

Retailers who want to continue to engage customers will continue to embrace new technological offerings to enhance the in-store experience. They’ll also focus on providing customers a great atmosphere, delivering excellent customer service, offering personalized experience, getting customers connected to the right product or service and providing a frictionless experience overall. Ultimately, continued customer engagement depends upon creating a great in-store experience that makes customers want to return and have that “day out” experience that the history of retail has led to.

These Consumer Trends are Defining the Future of Brick and Mortar

Originally published on Fast Company on July 19, 2022.

What do Sports Authority, HHGregg, Circuit City, and Tower Records all have in common? They’re all once-great American retailers that slid into irrelevance and, eventually, nonexistence. One could argue that these organizations lost the pulse of the consumer, failed to pivot to sustainable verticals, and met their demise as a result.

At Raydiant, we want to help as many retailers as possible avoid such a fate. This is one reason we’ve published our State of Consumer Behavior 2022 report, which we hope will provide a valuable perspective on prevailing consumer trends.

By surveying a substantial segment of consumers, we evoked several clear insights that all brick-and-mortar organizations should consider.

TREND 1: SHOPPERS ARE BARGAIN HUNTING

According to our survey, 24.8% of respondents are more likely to frequent stores that provide compelling in-store discounts. This was the leading response among consumers who were asked what would lead them to change from one brand to another.

It should come as no surprise that savings, or at least better value, top shoppers’ priority lists. Inflation has become a pressing concern among most shoppers, and bargain hunting has become more of a necessity than an option. Inflationary considerations aside, finding a good deal makes shoppers feel smart and makes them want to continue bargain hunting (at your store, ideally).

These findings suggest that offering strong deals within your stores is not just a reactionary response to mounting price pressures. Rather, it is a sustainable solution that adds intrigue each time a shopper journeys through your stores.

Macy’s, a brand that has struggled with recent store closures, is taking advantage of consumers’ thirst for a bargain. It has expanded its body of Backstage locations, which cater specifically to the value-conscious shopper.

In order to free up the margins to maintain ultra-competitive pricing on certain items, you might consider implementing more technology within your stores. This may allow you to trim labor costs and pass the savings to your shoppers.

TREND 2: RETAILERS ARE DELIVERING VALUE THROUGH IN-STORE EXPERIENCES

Once you’ve lowered prices as far as you can justify, how do you deliver ever-greater value to your customers? Many retailers are leveling up their in-store experiences, which provide intangible yet very real value to the customer.

In our survey, 21.7% of respondents said that “experiences aimed at generating fun” can compel them to visit a new store and make return visits. This was the second-leading motivation for consumers to leave a current brand for a new one. As a brick-and-mortar organization, providing standout in-store experiences could provide a windfall of new customers.

Clothing retailer Faherty Brand has taken this to heart. It hosts a series of concerts, intimate talks, retreats, dinners, and community-building events both inside its stores and in partner venues around the country. Known as Sun Sessions, these events, whether they are paid or complimentary, offer opportunities for customers to build stronger ties to the brand, specific stores, and employees.

TREND 3: CONVENIENCE SHOPPING REMAINS POPULAR

While many shoppers visit brick-and-mortar stores to have a great experience, we’ve found that many are still persuaded by convenience. For 23.8% of respondents, that convenience is the second-leading factor in their decision of where to shop—behind only the price of goods. According to the National Retail Federation, 83% of consumers have also stated that convenience is more important to shoppers today than it’s ever been.

Convenience doesn’t only mean offering buy online, pick up in-store options like curbside fulfillment. It also means that shoppers can come into your store, experience what they want to experience, and leave without enduring unnecessary hassles—like lines, confusing product layouts, or too few checkout options.

One hack that many retailers have embraced is self-service options. Where possible, give your customers the option to do it themselves. Whether this means posting product details on an interactive display, providing ample self-checkout kiosks, or implementing other DIY options, you’ll cater to customers’ stated desire for convenience.

TREND 4: RETAILERS ARE DELIVERING SAVINGS THROUGH IN-STORE TECHNOLOGY

In-store technology isn’t just a means to greater convenience. It can also save your organization money, which you may then allocate toward more competitive pricing for value-needy customers.

In-store signs, kiosk screens, and other dynamic displays can be a cost-effective form of advertising for your brand. Effective apps also allow you to reach the customer at any time in any location, expanding the reach of your physical store for a reasonable investment.

Technology can directly help your shoppers save money, and the majority of consumers today are willing to use retail-specific AI technology that helps them save money—through intelligent product curation, direction to discounts, and other means.

Because we know through our report that competitive prices are a leading criteria for consumers today, retailers are increasingly turning to tech to deliver savings to their shoppers.

TREND 5: CONSUMERS CONTINUE TO TALK 

It’s not that brick-and-mortar shoppers are a particularly gossipy bunch. They’re simply human beings living in an age where social complaining is as easy as 280 characters (or less) and a click. This is the cost of doing business in the 21st century.

In our survey, 83% of respondents said that they’re likely to tell others about a poor in-store experience. Depending on the shopper, “others” could be a couple of friends—or it could be a Twitter following of hundreds of thousands of people. With an understanding of what shoppers today demand, you should also weigh the exponential harm that can result from one poor customer experience.

No two customers are exactly alike. As a brick-and-mortar organization, your edict is to understand what the greatest number of shoppers want the most. While you can’t please everyone, you should absolutely work to please the majority of consumers—then do what you can to please the rest.

Based on our findings, offering great value (through both prices and in-store experiences), prioritizing convenience and using technology to do so are surefire ways to please the vast majority of American consumers.

Brick-And-Mortar Shoppers Have Spoken: Offer Great In-Store Experiences Or Kiss Customers Goodbye

Originally published in Forbes on May 16, 2022.

Those who portrayed brick-and-mortar stores as a relic of retail’s past have had to backtrack in a major way. Once regulatory restrictions allowed shoppers to visit physical stores once again, brick-and-mortar store sales grew faster than e-commerce sales for the first year in retail’s recorded history. Still, practitioners of brick-and-mortar must not take their own staying power for granted.

While brick-and-mortar sales may continue to grow as a whole, the success of individual organizations is far from guaranteed. As Deloitte points out, retailers must constantly adapt their in-location experiences to fit customers’ evolving priorities, preferences and concerns. From a growing desire for tech experiences to omnichannel engagement with brands, customer tastes are shaping retailers’ priorities.

The findings uncovered by Raydiant’s State of Consumer Behavior 2021 report underscore the need for excellent, innovative in-store experiences. Respondents revealed that e-commerce and brick-and-mortar remain neck and neck for shoppers’ dollars, with 44.4% of consumers preferring in-store shopping to online alternatives.

Brick-and-mortar should embrace every edge it has over online shopping, and it has no greater advantage than sensorily appealing, daring in-store experiences. Armed with fresh insights from shoppers themselves, your organization may be empowered to implement the types of in-store experiences customers truly value.

Customers consider shopping an experience, not just a means to an end.

While a customer ostensibly visits your store to purchase something they need, our report found that customers value the experience of being in a store even more than the ability to get what they need.

Over 27% of respondents who prefer shopping in-store said they do so, primarily, because they “enjoy the experience of shopping in a store and visiting a physical location.” Another 24.7% of respondents said they like shopping in person because they can touch, feel and experience products without the limitations that e-commerce inherently imposes.

These findings simply reinforce the essential importance of your in-store experiences, from your design scheme to product layouts, immersive experiences and customer service. Organizations that naively believe customers shop for a product and a product alone need not wonder why their sales are lagging.

Products are interchangeable. Great experiences are irreplaceable.

It’s common for someone to order a widely available product from an e-commerce retailer, even if they normally buy that product from a brick-and-mortar location. In fact, 48% of respondents said they’ve stopped purchasing certain items in a store and now purchase them through an online retailer.

The fact is, most items today are replaceable. You don’t need to go to Best Buy to purchase Bose headphones, and you don’t need to go to Williams-Sonoma for a stainless steel saute pan. However, you do need to go to these stores to indulge in the experiences they and other brick-and-mortar locations offer.

It’s not the products that make brick-and-mortar indispensable to a given shopper, though there are exceptions. In most cases, it’s an experience — a smell, sight, emotional response or interaction with a familiar staffer — that gets shoppers out of their homes and into stores.

Young shoppers, in particular, value the experience of shopping. There is nothing glamorous — let alone Instagram-able — about purchasing a blouse online. The chance to document a shopping spree at a fashionable retail location, on the other hand? For experience-driven generations of shoppers, the choice is clear.

Remember that stellar experiences, in combination with worthwhile products, are the rarest currency in today’s consumer landscape.

Retail favors the bold but also the timeless classics.

Brick-and-mortar organizations face a dual mandate: Be bold in some aspects but remain grounded in traditional retail principles in other areas of their organization. Let me explain.

We’ve seen that the most daring in-store experiences, like Flannels’ Beauty Bar concept, draw acclaim and intrigue from customers who seek something other than the same old, same old. Many other brands have taken experimental leaps, establishing themselves as one of the “cool” brands in their respective fields.

We found that 83% of shoppers will return to your store after a positive experience. By your breaking the mold, customers see that you are truly investing in their satisfaction by trying to provide value beyond the products you offer. Even if your boldness misses the mark for a certain customer, they may applaud your efforts nonetheless.

In this sense, embracing bold, novel ventures is key to delivering fresh in-location experiences. And yet, some brick-and-mortar staples will never go out of style — customer service topping the list.

Tech-assisted customer service, in particular, is becoming the norm. Digital screens directing customers to products, self-service kiosks and other gadgets make the employee’s job easier and prevent customers from feeling completely neglected — even when your associates are occupied.

Be bold without veering from the classic tenets of great retail experiences. The rest will take care of itself.

E-commerce is about convenience. While brick-and-mortar has also embraced convenience, it offers an intrinsic advantage: the chance to provide immersive, captivating experiences.

Each retailer must decide the degree to which they want to capitalize on this advantage. We know through our findings that 77% of shoppers consider the quality of an in-store experience to be “important” or “very important” to their perception of a brand. We also found that 63% of consumers will spend more at your store when you give them a positive experience.

In-location experience management is more art than science. You must work within your brand’s identity but also venture into new experiential waters. You must offer the same great customer service with new twists. Balanced scales look different for each organization.

One thing is undeniable: In-store experiences deserve your full attention. Without excellent ones, your customers will search elsewhere for the emotional connections they seek from their chosen brands.

Embracing the Future of Digital Transformation: The Next Wave of Working is Here

Originally published on DroneDeploy on October 22, 2021.

Like many companies, DroneDeploy was born out of a simple but powerful use case: stopping rhino poachers in our home country of South Africa. And over the company’s last 11 years, we saw use cases expand across dozens of industries, spanning over 200 countries. As the software matured, our customers developed more efficient processes, sped up their operations, improved yields, all while keeping workers safe.

Companies could achieve these successes because they found a common theme across their use cases: drone data allowed them to act on the opportunities, perhaps, previously unseen.

This theme rings true across almost any industry.

• In agriculture: acting on opportunities for crops

• In construction: acting on job site opportunities

• In energy: opportunities for power & distribution centers, plants, and wind farms

The list goes on…

For industries across the globe, it was imperative DroneDeploy provided exacting data empowering you to act; to provide a full, comprehensive picture of everything that’s going on. This meant you could act quickly, making your operations unquestionably better, unapologetically more efficient. Compromising on this point could mean the difference between being in business one day and a market afterthought the other.

History has long proven businesses are constantly in search of new ways to get a leg up on the competition. This year, we’re excited to announce we’re taking it a step further when it comes to acting on your opportunity.

First, we’re investing to make the best product even better; the best product that can scale to fit your needs; and the best product for a better future.

We’re launching a whole host of new products and updates, including Flight, 3D processing, and an amazing new feature called Corridors. There’s also 3D Annotations, in which you’ll be able to measure and markup vertical facades and export 3D lineworks to CAD. We’ve invested heavily in updates to 360 Walkthrough, Stand Assessment, and Asset Inspection.

When DroneDeploy was founded, the company had many shared goals; today, one of them stands out: to redefine how people view the world. Another way of putting it: to redefine the reality around them.

As we set out to accomplish this goal, we understood hardware helped solve one piece of this puzzle. After all, it got the device up in the air. But once the drone was up in the air, how could you fully capture the world below? How could you get unlimited insights into the things that were important to you, important to your team, and important to your business? It didn't take long for us to realize it would be the software that would make these hardware devices truly powerful tools.

Over the last several decades, many of the largest companies in construction, agriculture, and energy have been performing a digital transformation of their businesses. By transforming their physical worlds into digital, companies found they could finally manage the things they could finally measure.

As this wave of digital transformation swept from industry to industry, our customers began to innovate with new technologies, devices, and use cases – including, of course, drones. Today, some customers have over 1,000 drones in their organization – with a roadmap to over 10,000. Some of our most innovative customers even have fleets of drones that outnumber the fleets of the largest airlines. This level of scalability became possible because they used DroneDeploy on a daily basis, collecting massive data troves, processed with machine learning, to enable them to make better decisions and transform their own customer experiences.

And these innovators aren't sitting still. Their drone programs are maturing, scaling, and embarking on a new frontier that could be even more transformative: ground robotic software.

Let’s be honest. Drones have one simple superpower: they can fly. Thus, providing a bird’s eye perspective out of reach of humans. But out of this strength, there is a weakness: Drones focus on aerial. But this isn't where humans operate.

There’s a considerable need to capture insight at the ground level – at eye-level. Yesterday, millions of you were carrying around measuring tapes, blueprints, and clipboards. Tomorrow, there will no longer be a requirement for in-person field data; the data will simply show up on your mobile device – accurate, objective, actionable data for any industry, anywhere in the world.

Imagine scheduling a team of robots to capture every aspect of your job site, as often as you’d like. Robots equipped with cameras and LiDAR, leveraging machine learning to detect, classify, and report on the state of critical equipment and the progress on industrial sites. Oil wells, highway construction projects, agricultural research plots, no industry will ever be the same. Today’s workflows will become a thing of the past.

Think of this: A new children’s hospital is under construction. The project is mammoth, with five sophisticated wings spanning eight different floors. The team responsible for the project has just wrapped for the evening, and the site is now seemingly quiet. But even though every worker has gone home, it doesn’t mean work has stopped. This particular construction team happens to be utilizing a robot that visits every wing of the hospital, every floor, even every room, capturing data on every single aspect of the project. This robot will check if everything is in the right place, that building has gone to plan, progress made from the day prior, and even check for safety issues. By the time that team wakes up in the morning, all of that information has been uploaded to their devices. Even before getting to the site, every worker has a complete picture of what’s going on inside that children’s hospital.

This reality is now a step closer following our acquisition of Rocos, a revolutionary technology out of Auckland, New Zealand. DroneDeploy’s existing data capture, processing, and analytical tools will now be usable with ground robots. Soon, our customers will be able to instruct ground robots to traverse job sites, capture imagery, process that data into structured, measurable information, and instantly share it across their teams for analysis.

In the not-too-distant future, you’ll be able to take unprecedented action, capitalizing on this fleet of robots, all operationalized, orchestrated, and organized by DroneDeploy.

This brings us back to the matter of how we’re enabling you to act on opportunity. Opportunities for your crops. Your solar farms. Your job sites.

In construction, over the past several years we’ve seen Increasing material costs and labor shortages. Projects have grown in complexity and often result in budget overruns. Managing these large portfolios of building and job sites can be daunting. But this new way of working with robotics will only mitigate these challenges. This level of automation at scale enables inspections and site scans 24 hours a day, 7 days a week. Build 3D digital twins of your environments to track progress against BIM in real time. Report on progress without ever setting foot on-site, improving worker safety and compliance; avoiding costly overruns; and increasing consistency and accuracy across every job.

Consider those in the solar industry. Solar arrays tend to be in remote, dry, and hot locations, spanning dozens upon dozens of acres. This makes manual inspections difficult, hazardous, and time-consuming. Robotics, though, can withstand high temperatures and increased dust and sand levels. Equipped with the right payloads, these robots can scan solar panels, cables, and mounting brackets while sending alerts about which repairs are needed – and when.

This new technological wave will open doors for those in the agriculture industry. Growers will be able to monitor remote and expansive terrains, automate harvesting and planting processes, remove weeds accurately without the use of pesticides, and, perhaps most importantly considering drought and water shortages, this new way of working will optimize irrigation and water efficiency.

Robots will perform industry tasks completely autonomously, saving time, costs, and enabling timely maintenance.

Many of our Fortune 500 customers in construction, energy, and agriculture are already starting their journey to leverage these tools – tools that will transform their businesses. It’s an exciting time for all industries poised to take advantage of this technology.

Back in 2015, at the start of DroneDeploy’s journey, our first customers had just one drone in their operations. Eventually, that one drone evolved into a massive program, with numerous pilots, across multiple locations, all operating on one platform. Customers utilizing DroneDeploy’s single source of truth now have a new journey: and it begins with ground robotics. And just like in 2015, many of you will start with one ground robot in 2021, but we’re confident that those programs will grow into a fleet of robotics, all working for your business in ways industries never could have dreamed of.

We can't wait to see what comes next.

Five Myths of College Debt

Cartoon by John Fewings

As postsecondary education costs continue to soar, students are increasingly met with challenges about how to pay for college, and it can seem heavily burdensome to take on debt in order to meet tuition.  But smartly utilizing student loans can act as an investment for your future—and investing in your education can improve your odds of graduating, create boundless career and financial opportunities, and protect you from defaulting on your loans.

1)   College is an opportunity to create a higher-income future for oneself.

Earning a degree improves the likelihood of a more profitable income.  The average annual salary of workers with a high school diploma is barely above $35,000.  Compare that to the average annual salary of a worker with a bachelor’s degree: $59,124.  Unsurprisingly, over the course of their careers, college graduates are expected to make $1.3 million more than those with only a high school diploma.  Students who graduate are also less likely to be unemployed (4.5% unemployment rate of workers with some or no college education compared to 2.2% for those holding a bachelor’s degree).

2)   The problem isn’t debt, it’s debt without a degree. 

It’s clear: without a college degree, students are less likely to land higher paying jobs, and without a solid source of income, repaying loans can be exceptionally daunting.  By 2020, it’s estimated 65% of jobs in America will require postsecondary education beyond high school.  But in 2016, roughly 28% of borrowers reported they did not complete the educational program for which they took out student loans.  Sadly, a third of those borrowers go on to make less than $25,000 a year.  Concurrently, those who drop out are four times as likely to default on their loan repayments than those who graduate.  While loans can seem unavoidable, research has shown garnering a degree is worth it in the long run. 

3)   Dropping out to start making money isn’t always the right choice.

Too many low-income students are incurring debt, dropping out, and finding no road to pay back the loans.  While 60% of the wealthiest students graduate, only about 16% of low-income students went on to earn a degree, with many citing work demands as the main motivation for dropping out.  It can seem enticing to immediately start making money, but what students need to know is for those who go on to earn a degree just 10% have defaulted on their loans.  For college drop outs, 49% ultimately defaulted.

4)   Taking on more debt doesn’t increase one’s chances of defaulting

We’ve seen, since 1980, tuition costs at public universities have risen 344% with the vault in private college tuition up 241%.  These can seem like intimidating jumps, but the more a student borrows to curb tuition costs, the more likely they were to graduate and avoid default.  In fact, the default rate among those that borrowed $40,000 or more was just 7%.  For those who borrowed less than $10,000, their default rate was a whopping 43%.  

5)   The overall numbers don’t always tell the entire story

You may have seen the scary statistics released by the Federal Reserve: there is nearly $1.4 trillion in outstanding student loan debt in the U.S.  But that number can be misleading.  Of that $1.4 trillion, 57% of that debt is held by people with graduate school loans—loans that, unlike four-year institutions, have no cap.  What’s more is nearly half of that total is held by people who make at least $81,000 a year (placing them in the top 25% of earners with student debt).  For those that make at least $81,000 a year, they are much more likely to pay off their loans, and pay them off in a shorter period of time.  $1.4 trillion is a startling number, but it doesn’t paint the whole portrait, and it should deter students from investing in their education.

A college degree is the surest outcome a student has at repaying their loans.  And while we can’t fix the soaring costs of college, we can teach students to be financially savvier. How much you borrow, at what times, and on what terms are the most important factors when forecasting a student’s financial future.

Why Millennials Will Save America

There is a great deal of dispute about the timeframe Millennials were born.  According to The Center for Generational Kinetics, Millennials were born between 1977 and 1995.  Marketing Teacher believes Millennials were born between 1981 and 2000.  And, in an Atlantic article last year, it was reported Millennials covered two decades, from 1980 to 2000.  No matter what the defined time period, I, myself, am a Millennial.  I was born in 1985 and haven’t found a single study that deems me anything other than this.

For the longest time, Millennials were branded as an apocalyptic generation.  We, with our privileged lives and coddling parents, would eventually lead to the downfall of civilization.  We are seen as spoiled and disconnected.  We would rather bury our noses in our phones than a good book.  We prefer watching YouTube videos for two hours than going to a movie.  And the vast majority of us have never seen an opera, or attended the symphony, and believe the only musical that actually exists is Hamilton.  And, for the longest time, I rejected the notion I was lumped in with said Millennials.  After all, I don’t have a trust fund, my parents weren’t doting, I didn’t have my first cell phone until I was 19 years old, I did—and still do—read a book a week.  And I was one of the last people in America to see “Charlie Bit My Finger.”  I was entirely ready to give up on the Millennial generation. 

And then something happened; something so cataclysmic to our psyches many of us are still reeling: Donald Trump won the 2016 Presidential Election.

From the moment Mr. Trump announced his candidacy back in 2015, up until the day of the election, many of us Millennials were complacent.  Our numbers were particularly stagnant when it came to voter turnout.  We quit going to rallies.  We didn’t caucus, we didn’t fundraise, we didn’t door-knock.  In short, we were lazy.  But perhaps our biggest—and most glaring—error was that we absolutely couldn’t fathom the fact that an orange-haired sex predator with a penchant for alternative facts and bigotry could be elected to the nation’s highest office.  We were naïve to believe general logic was enough to influence the election.  We believed the American people would see through a man who suffers from malignant narcissism and extreme paranoia.  We believed the president following in the footsteps of our beloved Barack couldn’t be somebody so glaringly evil and petty.  But then we Millennials suffered that crushing blow that we Millennials aren’t used to: we were fucking wrong.

It was a shock to our system.  But if there’s one bit of solace we can glean from such a horrific outcome, it’s that in that instant, our complacency was extinguished.  Our apathy for politics was, in large part, cast away.

We rose up.  We organized.  We rallied.  We donated.

The day after Trump’s inauguration millions of us took the streets and marched in protest of his presidency.  Not the result of the election, but of Mr. Trump’s cruel and unusual policies.  I was there in Oakland, and the scene surrounding Lake Merritt gave us hope.  We saw tangible evidence that we were all in this together, and our protestations were supported by millions more like us. 

Also, since the election charitable donations have risen steadily—predominately for human rights organizations.  Charities like The Trevor Project, The Immigration Defense Project, and Planned Parenthood have seen an influx of cash.  In fact, at the end of January, the ACLU reported in one weekend they received a total of $24 million in donations—six times its yearly average.  Tech company Lyft even pledged a $1 million donation to ACLU, stating in an email to customers: “Trump closed the country’s borders to refugees, immigrants, and even documented residents from around the world based on their country of origin.  Banning people of a particular faith or creed, race or identity, sexuality or ethnicity, from entering the U.S. is antithetical to both Lyft’s and our nation’s core values. We stand firmly against these actions, and will not be silent on issues that threaten the values of our community.” Appropriately enough, Lyft co-founders Logan Green and John Zimmer are both Millennials.

Support for outlets like the New York Times and the Washington Post has also grown.  In Q4 of 2016, the Times added 276,000 subscribers—the paper’s best quarter since 2011.  The Times also said it had an increase of 41,000 paid subscriptions in the week following Election Day, and added more digital subscriptions in the last quarter of 2016 than all of 2013 and 2014 combined.  We’re becoming more informed and fighting back against the Trump Administration’s alternative facts and desire for fake news.  We're sourcing our information and then resourcing it.  It’s not enough for us to know Alex Jones is insane, we need to prove he is. 

Millennials are planning a revolt with information and consistency.  We’re exercising our activism by creating groups such as Berners for Progress, The Other 98%, Join the Coffee Party, Occupy Yourself, and hundreds more.  We’re organizing and creating platforms for goodness and common sense.  We’re attending panels again, asking the right questions, and, perhaps most importantly, we’re challenging fake news and its bitter establishment.  Hundreds of people are also petitioning for office, whether it be School Board, City Council, State legislatures, or something grander (at this point I’d take my landlord as President over this knucklehead).  Finally, after all of these years in the dark, we’ve found our resilience.  Believe it or not, Millennials, we have every opportunity in the world to be The Greatest Generation.  Sorry, Tom Brokaw.

Keep in mind, too, the Millennials are resilient.  We have lived through some serious shit.  We witnessed the era of Monica Lewinsky and her stained dress.  We saw a sitting president impeached.  We were there when the courts decided the outcome of the 2000 presidential election.  We watched the worst terrorist attack ever committed unfold on American soil.  We were told by our President weapons of mass destruction were in Iraq, which was later revealed to be a lie.  We were—and are—a part of the longest running war in the history of the world.  We watched our economy recede, the banks collapse, and our government bail out these crooks.  We were a part of ENRON, Haliburton, and Ponzi schemes.  We were bystanders to a glut of mass shootings, including the appalling acts that took place in Columbine, Virginia Tech, Fort Hood, Gabby Giffords in Tucson, Arizona, the Aurora Theater, Sandy Hook, the church in Charleston, and, most recently, the Orlando nightclub which claimed the lives of 49 people.  And the cherry on the Millennials’ shit-smeared sundae was the election of a man qualified to run little more than a 10-meter race.

And it’s not just Donald Trump.  Congressional Republicans and Democrats are a mess, too—they have been for quite some time.  Sure, there are a few shining examples—I’m looking at you Mr. Ellison, Mr. Booker, Ms. Warren, and Mr. Sanders—but Congress’ ineptitude is becoming dangerous.  They’ve proposed a crippling replacement of the ACA, and many Congress men and women support the President’s budget that will guarantee the rich get richer and the poorer classes will die—literally.  Republicans and Democrats are spiraling down a rabbit hole that is seemingly endless. 

So today I pledge my allegiance to a new party: The Decency Party.  And I encourage all my Millennial friends to join me.  If The Decency Party is not the party for you, by all means, pledge your allegiance to the Green Party, the Democrats, the Republicans, the Tea Party, the Freedom Party, or whatever party you feel most comfortable with.  But The Decency Party is a proponent, aptly, for: decency.  The Decency Party believes in funding education and the well-being of America’s children.  We believe in supporting the arts and protecting the environment.  We believe in waging wars on poverty, not on poor people.  We believe in funding NASA so future generations have a way to get off this planet when it’s inevitably destroyed by greenhouse gases and global warming.  Speaking of global warming, we at The Decency Party believe it’s fucking real.  We believe in scientific studies.  We believe in equal rights.  We believe in equal pay for women.  We believe it’s the woman’s right to choose and, if need be, the federal government will help her pay for that choice.  We believe in paid maternity and paternity leaves.  We believe in immigration rights.  We believe in due process.  We believe in renewable energies.  We believe in limited military spending.  And we believe when the banks fuck over the American people they should be held responsible.

Mr. Trump, I apologize that we Millennials will not be deterred.  Even if our arms tire and our fists chafe, we will refuse to stop pounding on the White House door demanding satisfaction.  We will not stand for your bigotry and “White Power” agendas.  You are everything we Millennials hate and we will fight you every step of the way.  Your Non-Decency Party—headed by white supremacist Steve Bannon—will be dismantled.  Mark our words.  And, oh, what a sweet day that will be.

But the last thing we Millennials have to understand is that the success of any good revolution needs a final punctuation mark.  And the only way to complete our rise is to vote.  It’s the final step in what is sure to be a long, drawn out fight.  But the moment we vote and make our voice of Decency heard, we take back this country.  No longer should we be prisoners of a broken system.

We’ll see you out on the battlefield, Mr. Trump, and wish you the best of luck against a party willing to fight for all Americans.  

San Francisco's Got A Money Problem

San Francisco’s got a money problem.  Or, at the very least, it’ll have a money problem very, very soon.

The late San Francisco journalist, Herb Caen, once said, “One day if I do go to heaven...I’ll look around and say, ‘It ain’t bad, but it ain’t San Francisco.’”  And, for the longest time, he was right.  San Francisco was a beautiful city, built upon rolling hills on a small peninsula.  San Francisco was the city of free love, gay rights, gender equality, vast diversities, peace, harmony, and a cornucopia of culture.  And up until the Dot Com era, San Francisco was still stable in terms of economic equality and affordability.  In a word, it was idyllic. 

And then, because of the tech boom, the money started rolling in...

There was only one problem.  Most of the tech companies were based in Silicon Valley, including eBay, Apple, Facebook, Google, Intel, Yahoo!, Netflix, HP, and Electronic Arts.  In fact, 39 of the Fortune 100 companies are located in Silicon Valley.  

Unfortunately, they weren’t located in San Francisco proper.

And the ones that were—most notably Twitter—complained about San Francisco’s payroll tax.  This tax requires companies to pay the equivalent of 1.5% of all employee compensations.  And, while this tax seems insignificant—almost innocuous—when it comes to multi-billion dollar companies, the tax is also based on stock option gains.  A particularly important component for companies like Twitter looking to implement an I.P.O.  And therein, as history tells us, lies the rub. 

So, not surprisingly, companies threatened to leave downtown for the economically friendlier confines of Silicon Valley.  Historically, these threats are most closely associated with football teams threatening to leave their city unless a new stadium is built.  We’re looking at you Oakland Raiders, Minnesota Vikings, Houston Oilers, Baltimore Browns, and San Diego Chargers. 

But Twitter, Uber, Square, and others were bringing in jobs and, thus, bringing in money.  They knew this.  The city knew this.  And, as a result, they held San Francisco hostage.  So, in 2011, San Francisco’s Board of Supervisors and Mayor Ed Lee made a controversial decision: They invoked a 1.5% payroll tax exemption for any company with a payroll greater than $1 million that moved into San Francisco’s dilapidated SoMa district.  This tax exemption would come to be known as The Twitter Tax.

Source: SF Gate

At first, this tax was heralded as a rousing success.  According to a reportby the San Francisco Controller’s Office, in 2013, the city brought in $7.6 million more in business tax revenue while only giving up $4.2 million in waived tax revenue.  All in all, those numbers are a sign of progress for a flailing city.  

But here’s where things get sticky: a year later, the San Francisco Controller’s Office published a similar report stating, because of the Twitter Tax, businesses in San Francisco’s Mid-Market district skirted paying nearly $34 million in taxes.  It turns out Ed Lee and San Francisco’s Board didn’t account for the IPO offered by both Twitter and Zendesk, which accounted for $125 million.  Just in case anyone is wondering, in San Francisco’s 2017 budget, it will cost $32 million to support the most vulnerable San Franciscans in getting and staying stably housed.  This number—$2 million less than attributed to avoided taxes—includes funding for 500 new units of supportive housing, continuation of the Navigation Center, rental subsidies for homeless families and transitional age youth, as well as an expansion of medical respite services for homeless individuals with chronic medical conditions.

Last month, we did an article about the unequal distribution of wealth in society.  And, suffice it to say, many of you were vocal about your opposition to such a theory.  Which is more than fair.  Ed T. was particularly confused.

Think about it like this, Ed: San Francisco is your parents, Twitter is your older brother, and you are you.  Each week you and your brother, Twitter, are given $40 total for allowance.  Disgruntled with such an arrangement, your parents realize $40 for allowance is too steep a price.  But, since that was the agreed upon amount, they’re in a pickle.  So, what do they do?  They use your money to subsidize the money they have to pay to Twitter.  So the next week your parents give them $30 and you $10.  The week after that, your parents give Twitter $35 and you $5.  Until, eventually, you’re given $1 and Twitter is given $39. San Francisco’s total payout is the same, but there is a gross difference in what Ed sees and what Twitter sees. 

It’s still early, but it’s very possible we are about to witness a staggering unequal distribution of wealth in the city of San Francisco.  What happens when those societies are created?  Housing costs go up, poverty rates increase, and diversity declines.  

Take, for example—and, keep in mind, these numbers have been adjusted for inflation:

• According to the San Francisco Rent Board (SFRB), in 1996, the average cost of a 3-bedroom home in San Francisco was $288,240.  By 1998, that number jumped to $361,410.  In 1999, to $409,570.  In November 2011, the same time the Twitter Tax went into effect, the average cost of a 3-bedroom home was $748,000.  As of February 2017, that average had increased to $1,340,000, nearly a $1 million increase in less than 18 years.

• Rent prices aren’t immune either.  In 1990, the average rent for a 2-bedroom apartment in San Francisco was $975.  In 2001, it was $2,400.  Today, the median rent price for a 2-bedroom apartment is $4,350.  Since 1979, the overall increase in rent is a staggering 452%.

• Despite being one of the world’s wealthiest regions, there were 829,547 people living in poverty in the Bay Area in 2013. This is just over 11.3% of the region’s total population.  In 2015, San Francisco had the highest poverty rate in the Bay Area, with an estimated 12% of its population living below the poverty line.  In 2007, the poverty rate in San Francisco was just 9%. 

And, according to the Silicon Valley Institute for Regional Studies:

• With rents in some parts of the Bay Area 185% higher, home prices 250% higher, and the cost of goods and services 6% higher than in the United States as a whole—the ‘cost of living’ is undoubtedly different.  As such, the poverty rate in the Bay Area could be as much as 3-4% points higher.

• Between 2007 and 2013, the income ratio of highest earners to the lowest earners increased by 15.5% in the Bay Area, and the gap between high and low income households is much wider ($263,000 compared to $178,000 in the U.S.)

• In the Bay Area, income inequality is partly a result of declines in shares of middle-income households.  The share of middle-income households declined by 3.7% in the Bay Area between 2007 and 2013—nearly a 20% sharper increase than the U.S. average.

Twitter, though, has given back.  They’ve opened a $3 million community center called NeighborNest, which provides access to computer technology, education, and training.  However, NeighborNest provides only clients of their community-based partners such access.

They have an Ads for Good program, which offers non-profits a way to leverage the Twitter advertising platform to amplify their message.  However, this program is by invitation only.

Reading the Twitter community initiatives is like reading the amenities of a hotel you could never afford.

We, at Pecorino & Eggs, don’t blame Twitter.  We don’t blame Square, or Uber, or Zendesk.  We don’t even blame Ed Lee.  But trends are trends for a reason, and there doesn’t appear to be an end in sight for San Francisco.  Tax breaks are becoming more prevalent for the rich and more astronomical for major tech companies.  Poverty levels refuse to decrease.  And people are being forced out of their homes, many of them middle-class, unable to afford the skyrocketing rent prices.  

Mr. Mayor, it’s time to admit San Francisco’s middle class is at risk of extinction and fix the problem on your city’s horizon.

The Sad Ballad of Rudy Giuliani

Last week, former New York City mayor turned cyber security expert, Rudolph Giuliani claimed Donald Trump wanted “a Muslim ban” and ordered Giuliani himself to assemble a commission to show him “the right way to do it legally.”  Giuliani, appearing on Fox News, eagerly recalled the details of a phone call that allegedly took place between him and the president.

For the full interview, click here.

Giuliani, speculated by many to be the next Secretary of State before removing himself from contention, said, “When (Trump) first announced it, he said, ‘Muslim ban.’  He called me up.  He said, ‘Put a commission together.  Show me the right way to do it legally.’”  Giuliani, who himself has a difficult relationship with legality, took almost grotesque pleasure in relaying the details.  He explained the story as if conveying an anecdote from summer camp, inexplicably unaware he was divulging the fact Mr. Trump knew what he was doing, and knew it was based off of religious discrimination.  Perhaps it’s because of Giuliani’s obliviousness why he rose so meteorically and fell so catastrophically during Trump’s campaign, and subsequent victory.

Or perhaps it’s because Rudy Giuliani has a history of making inflammatory statements—statements that, over the years, have become more and more fantastical.  For example, even though Rudy’s father did a stint in Sing Sing prison for felony assault and robbery, and even though that father later became an enforcer for an organized crime family in NewYork, Giuliani claimed former President Obama “doesn’t love America” because he wasn’t brought up right.  He also claimed the Central Park Five—five black and Latino men falsely accused of rape and assault and later exonerated through DNA evidence—were still guilty because, after all, they were “criminals and engaged in criminal activity.”  This statement came even though there was no empirical evidence to support such a claim. 

 Or what about that time, when questioned about the shootings of unarmed, black men, he said, “White police officers wouldn’t be there if black people weren’t killing each other.”  Therefore, categorically claiming the reason unarmed black men are relentlessly murdered by white cops is because they’re doing it to themselves.  It’s possible because of these, and many other inflammatory statements, he wasn’t asked to be a cabinet member to either George W. Bush’s presidency or Donald Trump’s current fiasco.  But I'm not inclined to believe that.  

Then if it's not his inflammatory statements, perhaps it’s because of his questionable ethics and actions during his tenure as mayor of New York City.  This is the same mayor who sought an increase in fines for jaywalkers, constructed pedestrian barricades, ordered the arrest of homeless men and women found sleeping in public places, saying, “Streets do not exist in civilized societies for the purpose of sleeping there.  Bedrooms are for sleeping,” and spent city funds escorting his mistress from Long Island to Manhattan.  An out of touch mayor is not an anomaly in America, but a mayor with such little basis in reality is the definition of Rudy Giuliani.  But reality has never been a strong fixture in Donald Trump’s world, so I’d be hard-pressed to believe it’s this that sunk Giuliani’s cabinet hopes. 

After 9/11, Giuliani became both a local and national hero, taking to the streets to assure the people they would rise again and that sheer New York will would be the foundation for their cure.  But, sadly for Rudy, this adoration didn’t last long.  He falsely claimed, after the attack, he was the only politician at Ground Zero—chastising then-New York Senator Hillary Clinton for her lack of action—even though, unfortunately for Rudy, she marched next to him hours after the attack.  

But perhaps the most harmful action Giuliani took post-9/11 was during the city’s cleanup efforts.  Despite the arrival of the Federal Emergency Management Agency (FEMA), the Army Corp of Engineers, and the Occupational Safety and Health Administration (OSHA)—all with extensive disaster response experience—Giuliani dismissed the groups and assigned the Ground Zero cleanup to the largely unknown city agency, the Department of Design and Construction (DDC).  Giuliani and the DDC claimed the air quality around Ground Zero was “safe,” even though records show the city was aware of the danger from the start.  In a federal court deposition, Kelly R. McKinney, associate commissioner at the city’s health department, issued a statement claiming she gave the city an advisory of asbestos in the air and warned of its hazards.  FEMA, the Army Corp, and the OSHA instructed all workers at Ground Zero to wear respirators, an instruction Giuliani and the DDC ignored.  Since the cleanup, dozens of those workers have become ill.  According to the New York Times, 70% of the nearly 10,000 cleanup crew screened at Mount Sinai Medical Center had trouble breathing and healthcare costs related to such illnesses have run into the hundreds of millions of dollars.  As crazy as this sounds: it’s hard to believe even this colossal fuck-up was the reason Trump steered away from Giuliani. 

After all, Giuliani was one of Trump’s staunchest proponents at the start of the shaky campaign—a campaign in which nobody seemed eager to latch on to.  Rudy was like Renee Zellweger in Jerry Maguire, when Tom Cruise is yelling, “Who’s coming with me?” and all he got was a low-level secretary.  

But Trump used Giuliani as Trump does and he got Rudy to deliver some truly astonishing sound bites, including—and oh my god, this is absolutely what he said—“There were no radical Islamic terrorist attacks while George W. Bush was president.” Giuliani, seemingly unaware he’s acted as the RNC’s puppet for the last decade and a half, has happily taken to the airwaves to shout nonsense I’m not even sure he believes.  He bungles simple sentences, he blathers on about the true meaning of patriotism, and he instills fear whenever handed the opportunity—like that time he said his friend was afraid to go to London because, as Secretary of State, Hillary Clinton had created an unsafe world. 

Let's set all of this aside.  Consider them innocuous facts and unfortunate incidences when being considered for a cabinet position.  And let's also set aside the fact that a several hundred page document written by Giuliani's campaign staff was leaked to the press citing the candidate's vulnerabilities.  And let's also set aside the fact that this steadfast patriot was a willful Vietnam draft dodger.  And let's note that, as a Republican, Giuliani often strayed from the pack.  He believes in the teaching of evolution, was a proponent for gun control saying a mandatory waiting period for a handgun was a “sensible and moderate” solution.  He’s come out in support of gay marriage, he supports the federal funding of embryonic stem cell research, he’s expressed pro-choice positions during his campaigns in 1989, 1993, 2000, and 2008, and, during his time as mayor, fought for the rights of illegal immigrants—calling for them to be allowed to use public schools and even pressed for a $12,000,000 grant to start a city agency that would help illegal immigrants gain citizenship. 

It’s possible these deviations from the Republican norms is what eventually killed any chance he had at a cabinet position.  Or perhaps he’s just too goddamn unlikable.  Rudy, the RNC, other members of the Republican party, Fox News, and now Donald Trump treat you like that nerd in high school.  You ask the pretty girl to prom and she says “yes” only to ditch you as soon as something only slightly better comes along.  I’d like to say it’s nothing personal, but we both know that's not true.

Why is Giuliani forever alone in the world of politics?  I don’t know.  But I do know that when he’s eventually cast aside like a rotten piece of cube steak, the networks open up and grant him full autonomy, eager for him to make baseless claim after baseless claim, infuriating the left, provoking the activists, and titillating the right.  Rudy, you are a puppet’s puppet, fighting the battles only to be forgotten.  Your ballad is sad and long, and, unfortunately for us all, there is no end in sight.

Where Has All The Money Gone?

Today, the banks are bigger than ever, 45 million people (or 14.5% of America’s population) live below the poverty line, and the rich only seem to be getting richer.

Tonight’s main story pertains to the world’s unequal distribution of wealth.

In a report published last month, Oxfam, a global response company that investigates economic inequality, reported that 8 men own the same wealth as the poorest half of the world.  This means that the net worth of these 8 men is equivalent to more 3.6 billion people.  Oxfam determined that the global economy, in order to prevent an all-out collapse, must stop rewarding the top 1% and redistribute the wealth to the middle and lower classes.

But history has shown that we, as Americans, are far from heeding the advice of dozens of prominent economists.  The fact that these 8 men own such a majority of the world’s wealth shouldn’t shock us.  The trend has been there for us to see for quite some time.  In 2010, 388 people were worth more than half the world’s population.  In 2015, 62 people were as wealthy as half the world’s population.  And now that number is down to 8.

The Economic Policy Institute released a study concluding that between 1973-2008, the bottom 99% of households lost 10.6% of the total share of U.S. household income.  During this same period, the annual income of the top 1% of earners rose by roughly 15 percent.  And, according to a recent study by economics professors Emmanuel Saez of the University of California-Berkeley and Thomas Piketty of the Paris School of Economics, since 1960, U.S. income inequality has increased more than any other major western country.

Oxfam blamed rising inequality partially on tax dodging.  Last year, rich individuals placed a total of $7.6 trillion in offshore accounts, making these funds exempt from income tax.  Had these funds been taxed, it would have accounted for an extra $190 billion available to world governments.  Mark Goldring, the Oxfam GB chief executive, said, “World leaders’ concern about the escalating inequality crisis has so far not translated into concrete action...In a world where one in nine people go to bed hungry every night, we cannot afford to carry on giving the richest an ever bigger slice of the cake.”  But this is America, and our concern for other people beyond our own households is about as tangible as a ghost.  We stand idly by as the banks pick our pockets and justify it with trite phrases like, “It’s just the way the world works.”

DEVASTATING CONSEQUENCES

There are harmful effects that go beyond the devastation of a country’s economy.  In surveys conducted between 1968 and 2000, researchers determined countries with unequal distributions of wealth also have higher crime rates.  Similar studies found these countries were also unhealthy, as a large number of citizens were unable to afford quality food or pay for their healthcare.  This is particularly disturbing as healthcare costs in 2021 are expected to reach $4.8 trillion, up from $75 billion in 1970.  And, according to James Levine, professor of endocrinology at the Mayo Clinic, “Americans living in the poorest neighborhoods are more likely to be obese than Americans living above the poverty line.”  What’s more is that individuals below the poverty line are twice as likely to die from diabetes. 

Studies have also shown an unequal distribution of wealth will lead to political inequalities.  Political inequalities occur when Political Action Committees (PACs) or Super PACs allow multi-millionaires and multi-billionaires to donate unlimited amounts of money.  The problem with this is, it essentially eliminates the little guy from making an impact.  For example, a former teacher of mine donated $30 to Hillary Clinton’s campaign.  Unbeknownst to her, this $30 was probably used to help pay for a fraction of the cost of postage in order to mail out more contribution letters asking for money.  In contrast to this teacher, in 2016, the corporation Fahr LLC donated $90,639,038 to democrat and liberal PACs, and Las Vegas Sands and Adelson Drug Clinic gave a combined $82,693,930 to conservative and republican PACs.  In total, that’s $173,332,968 given by three corporations—$173,332,938 more than my former teacher.

Education is another victim of unequal societies, pitilessly taken out in the back alley and shot and killed by the rich with extreme prejudice.  This happens because as the rich become richer, public policies become increasingly favorable to the policy goals of the economic elites; and affordable education for all has never been a high priority with the rich.  Education programs tend to be unpopular because they involve taking public funds, which often consist of taxes primarily imposed on the wealthy.  They wonder why they should give a fraction of their billions to benefit the poor.  Because, asshole, that’s how society stays alive.  Now we have a Secretary of Education who wants to implement school vouchersas a means of supplementing education.  School vouchers have never, and will never work, but it’s a way for the wealthy to keep millions of more dollars in their pockets as the rest of society fades away like a bad dream.  But Betsy Devos’ idiotic policy plans should be left for another day, perhaps when my blood pressure has normalized.

THE BANKS ARE NOT OUR FRIEND

Banks have been out to protect themselves for decades.  If only some sort of catastrophe would happen to make the banks realize consolidation of wealth and power is harmful and could lead to a disastrous society and full-on economic downfall.  Oh wait.  It fucking did.  In 2008, the banks collapsed.  And the American government took the taxpayers’ money and redistributed it to the wealthy.  Not surprisingly, the result of this colossal fuck-up was that the share of total wealth owned by the top 1% grew from 34.6% to 37.1%.  Furthermore, the recession and the bailout caused the median household wealth of the top 1% to drop only 11.1%.  What happened to the other 99%?  Their median household wealth dropped a whopping 36.1%, thus, creating a wider gap between the rich and the poor. 

On a global scale, Oxfam said that the wealth of the poorest half of the population dropped by 41% between 2010 and 2015.  In the same period, the wealth of the richest 62 people in the world increased by $500 billion to $1.76 trillion.

And, just in case anyone is interested, the top 20 richest Americans hold a net worth of over $1 trillion.  $450 billion more than America’s 2016 deficit.

Unequal distribution of wealth is real, and nations have failed when they refused to not only accept it, but act on its harmful consequences.  We need serious plans and serious answers, not a government dedicated to placing the blame of our economic troubles on poor people and immigrants.

Make no mistake about it: this unequal distribution is responsible for the systematic execution of lower classes in America, with a heavy burden falling on minorities.  How do we fix it?  We can take several measures.  We can reinstate Glass-Steagall, repeal Citizens United, increase the capital gains tax, reduce income tax for impoverished families, restrict off-shore accounts, forgive student loan debt, keep the ACA, audit the federal reserve, overhaul the SEC, audit the banks.  And please, if nothing else, listen more often to Bernie Sanders.  I know it sounds like he’s perpetually shouting from the other side of a ballroom, but he knows how to fix the system, and it’s time we take control of our financial futures, and listen.

The Media's Fickle Friend: Donald J. Trump

Much has been said about Donald Trump’s relationship with the so-called “liberal media.”  He’s berated journalists, mocked reporters, and banned certain media outlets from various events, including his first ever press conference as POTUS.  He’s told blatant lies and then, when the media has reported the lies, used those reports as evidence of fake news.  Donald Trump’s sheer disdain and aloofness when it comes to matters of the press is alarming, and each and every journalist should take measure about what his idiocy is capable of.

This is the cautionary tale of Donald J. Trump’s ever-growing “media problem:”

The press has often had a tumultuous relationship with political figures.  Back in the early 18th century, in the British American colonies, newspapers were steadily growing in popularity.  And, as readership was expanding, editors found their readers responded favorably to satirical criticisms of local governors.  In 1734, one governor in particular, William Cosby (yes, his real name was Bill Cosby), took umbrage with such criticisms and shut down The New York Weekly Journal.  Subsequently, the Journal’s editor, John Peter Zenger, was subpoenaed and taken to trial for Criminal Libel.  Defense lawyers for Mr. Zenger argued truth was a valid defense against libel, and the courts ruled against Bill Cosby.

After his acquittal, Zenger became a hero for the freedom of the press movement and by the mid 1760s there were 24 weekly newspapers across the 13 colonies.  By the end of the 18th century, the founding fathers—those guys every goddamn politician seems keen on emulating—wrote the Constitution.  The rest, I wish I could say, is history.  But, over the years, the 1st Amendment has become a topic of severe scrutiny and hasn’t always been honored to its fullest degree.

GERMANY

Press problems go beyond the borders of the United States.  In some countries, governments and dictatorships have resorted to propaganda to diminish the press’ credibility.  One of the worst examples of this came in Germany during the rise of the Nazi party.  In 1927, Joseph Goebbels, Adolf Hitler’s Reich Minister of Public Enlightenment and Propaganda (MPEP), founded Der Angriff (“The Attack”), using it solely to advance the Nazi agenda.  Journalists who defied or criticized the MPEP were routinely imprisoned. 

Now, tell me if any of this sounds hauntingly recognizable: One of Goebbels’ first acts as minister was to ban the Nationaler Sozialist, one of Berlin’s evening newspapers, often critical of Hitler and his fascist regime. 

Additionally, after Hitler’s election, the Nazi party only had 37% support from the German citizens—a stat that angered Hitler.  Goebbels, being the good lapdog he was, set out to increase the support to 100%.  But how does one do this?  They create a context of a deteriorating economy and a fragile society, and offer a narrative as to who’s to blame for that deterioration.  In this case: the Jews.  Using the Nazi newspapers, Goebbels organized and authorized boycotts of Jewish shops and businesses.  This, as we all know, was only the beginning of the Jewish persecution. 

Lastly, according to Roger Manvell and Heinrich Fraenkel’s book, Doctor Goebbels: His Life And Death, Goebbels, along with other members of Hitler’s cabinet, had to deal with Hitler’s manic leadership style in which he repeatedly gave contradictory orders to his subordinates.  If none of this is striking you as eerily familiar, then perhaps you should read on.  If you understand exactly what I’m talking about, I’m fine if you wish to forego the rest of this history lesson and curl up in the tub and cry.

CHINA

According to the Council on Foreign Relations, China's constitution affords its citizens freedom of speech and press, but the opacity of Chinese media regulations allows authorities to crack down on news stories by claiming they expose state secrets and endanger the country.  Thus, really not affording them freedom of the press at all.  In her book, The Fog of Censorship: Media Control in China, He Qinglian, a former Chinese journalist, expands on the Chinese government’s influence on the media: “News reports about important social or economic issues must first be reviewed and approved by the appropriate department-in-charge.”  Absolutely no negative assessments of national economic policy may be published.  And, in order to give the illusion there are no corrupt government offices, stories of corruption are regularly muted.  

While Article 35 of China’s Constitution grants free speech, the interpretation of the Article is left up to the courts.  And, yes, you guessed it, the judges appointed to these courts follow the directives of the Chinese Communist Party.  To this day, there is still no legal protection for journalists nor are there consequences, severe or otherwise, for those that attack journalists.  The Chinese government has established a set of rules they blatantly ignore.  This would be like hitting a home run in baseball, only for the umpire to tell you you’ve been ejected from the game.

NORTH KOREA

Much like China, North Korea’s Constitution also guarantees the freedom of speech and press.  The only problem with this is: all reporting not sanctioned by the government is subject to severe restrictions.  What’s more, according to Freedom House, a non-governmental organization that conducts research and advocacy on democracy, political freedom, and human rights, “listening to unauthorized foreign broadcasts or possessing its publications—whether it be newspapers, magazines, or journals—are considered crimes against the state.”  Penalties for such crimes include hard labor, prison sentences, and the death penalty.  Perhaps what’s most startling is the fact that North Koreans can be interrogated or arrested for speaking critically about the government.  And, much like Nazi-Germany, state-owned broadcast news outlets serve as mouthpieces for the North Korea’s propaganda.

TRUMP

And, finally, tonight we come to Donald J. Trump, a man who has lambasted media outlets he deems to be unfair, and has propped up sources of fake news more often than Steve Bannon has attacked minorities.  It’s nothing new that whenever an argument has been presented to Mr. Trump—an argument that discredits either him or his sources—he chooses not to engage with the argument, but rather attack the persons making it.  He attacks them using childish insults and moronic rhetoric, often using famous S.A.T. words such as “stupid” or “dumb,” and does whatever he can to discredit the source making their claim.  He’s that annoying kid on the playground who keeps yelling, “I know you are, but what am I?”  Trump searches for facts—no matter how baseless and inane—to support whatever statement he chooses to make. 

Watch.  I can do it, too.  The Earth is 100%, unequivocally, without question, flat.  Here’s my proof from Flat Earth Science and Bible.  This would be funny were it not for the very realistic possibility Donald Trump goes on Fox & Friends and spouts about the credibility of Flat Earth Science and Bible.

Sean Spicer, Mr. Trump’s Press Secretary and the man who just discovered what the function of a tailor is, does his best to fuel the president’s propaganda, angrily mouth-breathing his way through, what can only be described as: circus press conferences.  Going against long-standing tradition, Spicer tends to call on news outlets that are far less mainstream.  Reporters from conservative outlets like Breitbart, One America News Network and Newsmax are regularly tapped for questions, while Reuters, ABC News, and the Washington Post are often overlooked.  The press has to be rolling their eyes every time Spicer steps to the podium.  He shouts, “I’ve already answered your question” after clearly not answering the question, while spewing spittle on the reporter from the Associated Press, all the while thinking this will make him seem less incompetent.

Fake news has risen significantly over the years.  Most of the time these “alternative facts” are easily disregarded.  However, since the evolution of the Trump campaign, fake news has somehow become credible.  There are two reasons why: 1) Donald Trump watches an inordinate amount of television for an acting president, maniacally retweeting anything and everything he hears in order to solidify his opinions; and 2) Donald Trump believes everything he says is fact. 

Our political sphere is hindered by a commander-in-chief playing the most dangerous game of Telephone in the world.  For example, bonehead Gregg Phillips, former Texas Deputy Health and Human Services Commissioner and currently the man behind the mobile app VoteStand, tweeted Donald Trump won the popular vote of the 2016 election after more than 3,000,000 votes were illegally cast for Hillary Clinton.  In spite of there being no evidence to support this claim, Donald Trump, eager to propel his own conspiracy theories, tweeted his appreciation to Mr. Phillips, expressing his enthusiasm to see the results of this elusive study.  Others grabbed the baton and the rumor swelled until, finally, supporters of Mr. Trump began preaching Mr. Phillips’ tweet as fact. 

On Wednesday, Trump made another erroneous claim about former national security advisor, Michael Flynn, who, this week, was forced to resign.  Trump insisted Flynn was brought down by illegal leaks to the news media.  With, again, no evidence to support his statement, Mr. Trump tweeted: “The real scandal here is that classified information is illegally given out by ‘intelligence’ like candy. Very un-American!” 

I’m sure you’d like to think it stopped there.  It didn’t. 

Trump tweeted: “The fake news media is going crazy with their conspiracy theories and blind hatred. @MSNBC & @CNN are unwatchable. @foxandfriends is great!”  Followed by: “This Russian connection non-sense is merely an attempt to cover-up the many mistakes made in Hillary Clinton's losing campaign.”  Before adding, “Information is being illegally given to the failing @nytimes & @washingtonpost by the intelligence community (NSA and FBI?).Just like Russia.”

He stopped there, right?  No.  No, he did not.

Trump went on, saying at a press conference Wednesday morning: “Michael Flynn—General Flynn—is a wonderful man.  I think he has been treated very, very unfairly by the media.  As I call it, the fake media in many cases.  And I think it's really a sad thing that he was treated so badly.”  At the same press conference, Mr. Trump refused to answer any questions posited by the press, except from two organizations: the right-wing website, Townhall.com, and the Christian Broadcasting Network.

Trump is great at doing one thing: repeating lies so often that many see no other recourse than to believe them.

This is a dangerous time for our media.  But they ought not to panic—not yet, at least.  News outlets should be in place as a checks and balances medium, strictly designed to report the facts and ask the tough questions.  And as soon as people—specifically the president—feel threatened by those questions, The New York Times, Washington Post, The Huffington Post, POLITICO, Reuters, the Associated Press, and the hundreds of other media outlets should feel they're finally getting somewhere.  After all, it’s far too dangerous to live in a world where Mr. Trump and his cronies abide by the adage: “It’s not a lie, if you believe it.”

The Many Lies of Donald Trump

We've got a lot to cover.  And, while we’ve never been a huge fan (or even, “tremendous” fan) of lists, we feel bullet points are the best way to tackle what can only be described as a chaotic, manic, inexplicable first week of Mr. Trump’s presidency.  So bear with us as we try to make sense of a tiny handed man whose only clear objective is attempting to follow his own rambling logic. 

In today’s lesson plan, we’ll cover:

• The Wall

• Affordable Care Act

• The Pipeline Orders

• Gag Orders

• Donald Trump Has No Friends

THE WALL

The insanity leeching out of Mr. Trump during his campaign is now gushing out of him like a spastic fire hydrant.  It’s true, Mr. Trump promised to build a wall along the Mexican/American border to “stop drugs from pouring in,” and keep out drug dealers, rapists, and criminals.  It’s also true, Mr. Trump promised Americans that Mexico would pay for said wall.  What wasn’t clear was how exactly Mexico was going to fund such a project.  Rest assured, though, our Commander in Chief has a solution.  In an executive order signed on Wednesday, Mr. Trump ordered the immediate construction of a wall using funds already available in the United States budget.  And, while these funds are, in fact, designated for the sole purpose of border protection, they only represent a fraction of what it will cost to construct a 15-foot, 1,000-mile wall.  So, what’s the plan after that?  Even though Mexico has refused to pay for the wall—going so far as to cancel a trip to meet with the president—Mr. Trump is moving forward with the idea the American taxpayers will foot the cost and Mexico will reimburse us.  How will they reimburse us, you ask?  By implementing a 20% tax on goods imported from Mexico.  In a statement released earlier today, White House spokesman Sean Spicer said such a tax could generate approximately $20 billion dollars a year in tax revenue.  I see two problems with this: the first, according to the United States Trade Representative, in 2015, U.S. goods and services trade with Mexico totaled an estimated $583.6 billion, with $267.2 billion accounting for exports, and $316.4 billion accounting for imports.  That means the U.S. goods and services trade deficit with Mexico in 2015 was $49.2 billion.  Now, it’s possible Mexico could reduce the number of its exports, which would effectively kill a number of jobs (according to the Department of Commerce, U.S. exports of goods and services to Mexico supported an estimated 1.1 million jobs in 2014), or, more likely, they refuse to pay such a tax.  Secondly, and perhaps a larger problem could be, Mexico imposes a tax on us.  If we have a trade deficit with Mexico that’s just shy of $50 billion, what’s stopping them from imposing their own tax?  As Mr. Trump has already demonstrated, there doesn’t need to be any particular rhyme nor reason to create a tax on trade.  Setting dangerous precedents on trade could also have global ramifications with countries such as China, Japan, and South Korea.

AFFORDABLE CARE ACT

In spite of what many Americans think, the Affordable Care Act—or ACA—is not an insurance company.  Since its inception, though, thousands of people have taken to Facebook and Twitter to voice their displeasure with the customer service of the ACA—I’m looking at you Bren.  

Let me be clear, the ACA is and never was an insurance company.  It’s simply an act designed to provide affordable care universally in America—hence the name: Affordable Care Act.  On Monday, Mr. Trump signed an executive order directing members of his administration to begin efforts to repeal and replace the ACA.  Even the most conservative estimates put the number of people who will lose their health insurance at 18,000,000.  That’s over 5% of our country’s population.  The president doesn’t yet have a plan to replace the ACA, but has assured the American people it will be “tremendous.”  Perhaps, Mr. Trump, Mexico can fund our new healthcare system, as well.  You should just write it out like a Christmas list of things you want from them and hope they take you seriously.  If this plan seems a bit childish to you, perhaps you could just impose a 30% tax on Mexican imports.  Or, hell, why not 40%?

THE PIPELINE ORDERS

Ah, yes, well done you demonic, apple-faced goon, you even signed executive orders related to the Dakota Access and Keystone XL pipeline projects.  Effective immediately, construction should resume on both projects.  Mr. Trump also signed a directive ordering an end to protracted environmental reviews.  I’m sure your oil lobbyist friends were collectively masturbating over this one.  And I’m also sure you weren’t at all motivated by your own financial well-being.  Did you really think, Mr. Trump, we wouldn't care that you own shares in Phillips 66—a joint venture partner in Dakota Access pipeline—as well as investments in the Canadian energy company TransCanada—the developer of the Keystone XL pipeline?  This comes in conjunction with the recent freeze you put on government agencies’ spending, most notably the Environmental Protection Agency (EPA).  You’re like the dealer in a game of Blackjack who somehow convinces the rest of the table to let you play, and then stacks the deck for himself.  Which brings us to our next point...

GAG ORDERS

After you froze spending you went so far as to order the EPA to shut their tree-hugging traps about what you’ve done.  In spite of this fascist direction, one EPA staffer—who wished to remain anonymous—relayed the following: “The entire agency is under lockdown, the website, Facebook, Twitter, you name it is static and can't be updated. All reports, findings, permits and studies are frozen and not to be released. No presentations or meetings with outside groups are to be scheduled.  Any Press contacting us are to be directed to the Press Office which is also silenced and will give no response.  All grants and contracts are frozen from the contractors working on Superfund sites to grad school students working on their thesis.  We are still doing our work, writing reports, doing cancer modeling for pesticides hoping that this is temporary and we will be able to serve the public soon.  But many of us are worried about an ideologically-fueled purging and if you use any federal data I advise you gather what you can now.  We have been told the website is being reworked to reflect the new administration's policy.”  As of this morning, the EPA’s website—which had been updated regularly—shows the last update was made seven days ago.  On the other hand, the National Park Service is a prime example of a government-funded group unwilling to bow down to your 1984-esque style of governing.  Well done, Park Service, we at Pecorino & Eggs commend you.  Placing gag orders on government agencies is about as effective as last year’s Congress.  It’s like you beat somebody up on the playground and then rudely asked them not to tell on you.

DONALD TRUMP HAS NO FRIENDS

Ah yes, it’s true.  Sure, Mr. Trump, you have people you surround yourself with, but your aura of desperation reeks like a cheap cologne.  You’re not even a week into your presidency and already some of your staff hate your guts.  Yesterday, New York Magazine reported you “get bored” easily and would rather “watch television” than listen to security briefings.  And even the faintest criticism that’s sent your way makes your blood boil.  So now you know, Mr. Trump, how we feel every time you open your mouth.  The New York Times even reported you are “convinced of broad, but hidden plots to undermine” you, and said you “channel fringe ideas and give them as much weight as carefully researched reports.”  For an example of this, please refer to your own conspiracy that voter fraud is the reason you lost out on the popular vote, or the ludicrous claim you had higher crowd counts at your inauguration than former President Obama.  First, David Becker, who for six years was in charge of the election initiative for the Pew Center, said voter duplication “does exist, but it happens in very, very small numbers and nothing like what is claimed by the president.”  Even Lindsey Graham thinks you’re off your rocker on this one!  That’s like the BTK Killer saying you took things too far.  Secondly, U.S. News & World Reportreleased an article on Wednesday, with evidence you may be interested in, Mr. Trump.  Your nominee to be secretary of the Treasury (and former Goldman Sachs partner), Steven Mnuchin, is registered to vote in both California and New York.  Casual racist Steve Bannon, your senior advisor, registered to vote in New York while being registered to vote in Florida (he’s still registered to vote in Florida by the way).  And perhaps the best example of this corruption you’re hell-bent on exposing is Tiffany Trump, your daughter, who is registered to vote in both Pennsylvania and New York.  Your ability to be clueless about things is truly something to be marveled at.  And, thirdly, who fucking cares about inauguration crowds?  Are you that petty that you can’t accept the fact that the first black president of this country garnered a wider audience than a rich white boy from Manhattan?

I’d love to jump into the federal funding you cut from sanctuary cities, or the living hell that is Betsy Devos and her education “point of view,” or the 17 other agencies and programs Mr. Trump wants to cut, or even Kellyanne Conway’s casual claim that assertions made by the White House can be described as “alternative facts.”  Here’s an alternative fact for you: you’re a great guy, Mr. Trump, full of profound and poignant wisdom, and whose decency toward every living being in this world is matched only by your generosity.  

While your heart may swell at this alternative fact we've presented, we the people know what it really is: a lie.