My Review of "X: The Experience When Business Meets Design ."

5 out of 5 stars....

X: The Experience When Business Meets Design takes the reader into a step by step process to understand how businesses should develop or transform their brand to equate to an experience, rather than just performing a function. Welcome to the Experience Economy. Coca Cola was one of the first to successfully embody it, by tailoring its ads not to just being a carbonated beverage, but associating it with fun and happiness. Think, too, of Disney taking one on a fantasy trip and Disneyland being the "happiest place on earth." The ultimate, as the book infers, being Steve Jobs and Apple, where art and technology intersect to bring customers to need functions they never before thought they needed or wanted.

It details an Experience Architecture when the customer shares the experience with the brand, Coke and Nike being examples. It is important to get into the user's point of view, to emphasize. It is also important to discard legacy philosophies and visualize the experience. We are now in a digital world and as Banksy might think, digital graffiti.

And the book explains that the customer experience is not linear, but a collection of moments
of truth, it calls ZMOT, FMOT, SMOT and UMOT....the bottom line being it is complicated

This complexity can create a Circle of Rife within a company, basically a soloing of opinions
The book quotes Leo Tolstoy, "Everyone thinks of changing the world, but no one wants to change
himself," as wise to ponder to overcome this problem. So, the team must "think differently," then come up with a plan. Further, this plan should be broken into "grids." This visualization will lead to an omnichannel design, several points in grids leading to desining how to fully understand the customer. The challenge for a company, being to move from managing to designing, a collaborative process, the book breaks down as 3Ds, evolving to a human centered design, it calls UCX, user centered experience, and eventually gets to UX, human experience. It really is about people and p2p, people communicating with people. The book even brings up some futuristic films, specifically, Inception, where dreams of one person are implanted in another person to let that person build on the creativity of the previous person. This collaborative designing is similar, cross breeding of ideas. The author also advocates having an anthropologist on the team to ensure the design focuses on humans using the latest understandings.

So human centered, that the process should come up with a story, amplified visually with storyboards.

I recommend the book, an easy read for a reader just interested to learn what the Experience Economy is, a more intensive read for a reader wanting to implement it at their company.

My Review of "Inflection Point"

5 out of 5 stars....

This book discusses the intersection of Big Data, the Cloud and Mobility and how it represents not just a new trend or an incremental step in technology, but an "Inflection Point," such that it makes nearly all businesses obsolete unless they transform their IT immediately.

Basically, computers and software should be seen as a utility service, provided by another company that has as its core competency, providing and maintaining such systems for a reasonable periodic service fee. Then, the company should stick to its core competencies. so, no need for its own data center, computers, existing software and staff to manage updates.

Also part of this inflection point are Apps. The internet is now really a collection of applications, such that one could start a new business in a short time without prior knowledge, using Apps. So, incremental will not work now, since competition can now develop and improve super fast. A key word now is disintermediation. massive loss of jobs, basically because of elimination of middlemen.

This SaaS (software as a service) and the disintermediation resulting is amplified with the Internet of Things with machines communicating with machines via the Cloud, bypassing the need for additional jobs, and steps for ordinary humans outside the workplace.

The book also addresses how one can better evaluate stocks for their personal portfolio, considering the above. The popular metric of EBITDA (earnings before interest, taxes, depreciation and amortization) is worthless because now, this excludes the very things which could make the company uncompetitive in this new environment. Instead, ROIC (return on invested capital), is perhaps now the premier metric to be used, along with cash flow.

Also, the book covers MDM (mobile device management), very important to let company employees use their own mobile device, maybe only just partially subsidized by the company since it also can be used for personal stuff. The key being simplicity.

The book also mentions mobile middleware,which allows Apps to communicate with Apps.

The beauty of this book is how it ties together these very important concepts in such a neat way, making an easy and fast reading book. I heartily recommend it.

Portfolio "Update"

I just added some IBM (International Business Machines) and HPQ (Hewlett Packard, Inc) to my porfolio. Both have high dividends and low PE's.

The portfolio, in order of biggest holding to least

WBA (Walgreen Boots Alliance)
PEP (Pepsi)
PG (Procter & Gamble)

HAS (Hasbro)

GPC (Genuine Parts)
MAT (Mattel)
MMM (3M)
KO (Coca Cola)

T (AT&T)
ADP (Automatic Data Processing)
KMB (Kimberly Clark)

K (Kellogg)
VZ (Verizon)
SYY (Sysco)

CVX (Chevron)
DPS (Dr. Pepper, Snapple)
CDK (CDK Global)

IBM (International Business Machines)
HYH (Halyard Health)

HPQ (Hewlett Packard, Inc)
6% GNMA (Government National Mortgage Association) Bonds

Stocks make up abt 25% of my assets.  Other assets are CDs, a home mortgage and about 2% precious metals..

My Review of "Civic Capitalism."

3 out of 5 stars.....

The authors and most of the contributors are British and this book focuses on Britain's problems post financial crisis 2008, while expanding it to be basically a manifesto against capitalism.

On almost every page, the book uses the words neoliberal or neoliberalism

The book presents an alternative, not an improvement. As such, it is better to use the book as a way to consider improvements. It offers worthy considerations such as sustainability and environmental improvements, as well as social improvements which would make for less greed and for a society less concerned with consumption.

It also mentions that this alternative should be global, but since the crisis some coordination has been achieved.

Further, in the US where the crisis began, better regulation has been achieved via  Dodd-Frank, increased FDIC insurance, etc.

It should be remembered that the world is the most peaceful (% dying from war), prosperous (% above poverty), healthiest (highest life expectancy), educated, etc.in history. So, I recommend this book, only with the condition that it be read for ideas on how to improve our current economic system.

My Take on US Debt

US government debt is about 1 x GDP and total public and private debt is about 3 x GDP.

Interest rates are at historic lows with little chance of major inflation because of globalization and overwhelming deflationary forces. Plus, we have the most diversified economy, so benefit from such forces, long-term.

Also, there is good and bad debt. Before the 2008 crash, we had too much bad debt, like subprime and liar mortgage loans, financing two misguided wars with debt and tax cuts for the rich, financed with debt.

Now, much of our debt is good debt....Social Security, Medicare, and Medicaid. Plus, lending standards are much stronger than before the crash. Plus, even bad car debt is OK, because if defaulted, cars can easily be repossessed and resold, plus while still used they help the economy with maintenance costs. Also, student loan debt at least shows how dedicated Americans are in improving themselves and do make them more educated.

During bad times, it is best to expand debt, here to save the banking system and stimulus programs to create jobs and expand the economy.

During good times, it is best to begin paying down debt/restructuring debt laden programs. So, now, since the economy is healthy, best to start now with Social Security, Medicaid, Medicare, etc. But, since the recovery has been uneven and interest rates are so low there is no need to overdue it and punish the lower classes. Plus, since lower classes spend most or all of their improved income/benefits from such programs, they recycle into the economy (multiplier effect), actually punishing them hurts the economy..

My Take on the Economy

The stock market is overdue for a correction This might be it, but no one knows.

My approach is to only hold companies which provide goods or services always in demand and pay a good dividend with a history of raising it each year. So, I just see drops as opportunities to buy more.

I see this as one of most remarkable economic times in US history. US innovation has changed every industry on the planet, resulting in the US having the strongest economy in the world, while also bringing along other advanced economies which embrace innovation.

Recent slowness in the US economy is due to the strong dollar, but that is good for the medium and long term, a resurgence of the world reserve currency.

For the US, the strong dollar makes the cost of commodities cheaper, a bonanza.

As for the slowness of the economic recovery from the 2008 crash, financial crashes usually take longer to fully recover than from business cycle and other similar recessions.

So, this slowness, combined with great innovation and needed new regulations, is consistent with a solid economic boom, nothing like "trickle down" because it is combined with such bottom up advances like ACA and historic creation of new jobs combined with rising minimum wages, rising education standards and expansion of community college opportunities. Plus, maybe the most remarkable catalyst being the lowest interest rates in history.

The only real risk I see is who becomes the next US president.

Portfolio 'Update"

I just  bought some Chevron (CVX) stock, since it had dropped and now pays about 4.3% dividend which is usually raised each year.

My portfolio, in order of largest holding to least....

WBA (Walgreen Boots Alliance)
PEP (Pepsi)
PG (Procter & Gamble)

HAS (Hasbro)

GPC (Genuine Parts)
MAT (Mattel)
MMM (3M)
KO (Coca Cola)

T (AT&T)
ADP (Automatic Data Processing)
KMB (Kimberly Clark)

K (Kellogg)
VZ (Verizon)
SYY (Sysco)

CVX (Chevron)
DPS (Dr. Pepper, Snapple)
CDK (CDK Global)
HYH (Halyard Health)
6% GNMA (Government National Mortgage Association) Bonds

Stocks make up abt 24% of my assets.  Other assets are CDs, a home mortgage and about 2% precious metals..

My Review of "Can Financial Markets be Controllrd"

4 out of 5 stars

The author, Howard Davies, says the financial markets can't be controlled, pursuant to the 2008 crash and its aftermath.

He says the roots being the financialization of our economy, basically our major industry, based on debt/leverage to generate such huge profits it attracted many of our brightest minds away from pursuing more fundamentally sound careers to help society, all hidden in such complexity, it was, and still is, impossible to control. Further, the complexity bred mostly short term strategies, leading to a dysfunctional financial system.

Also, misguided thinking led to thinking globalization and technology reduced risks, but just increased risks.

And Dodd-Frank, he says is too complex, and the EU too flawed, for him to have much confidence.

He does say globalization and technology has led to more income inequality, and so much debt in the US made it worse by inflating asset prices. And he says this has led to more booms and busts, creating an intrinsically fragile economy intentionally because of the revolving door between Wall Street and government.

Anyway, I do recommend the book despite what I see as an omission like the funding of two wars and tax cuts for the rich, financed by lots of debt, making handling the crisis harder. Also, despite his pessimism, some of the US regulation is an improvement and though formal coordinated international regulation has not been achieved, there is more coordination than before. But, the book does present a good discussion of the risks in our financial system.

My Review of "The Full Catastrophe"

4 out of 5 stars

The author, of Greek heritage, goes to Greece to better understand how the nation will cope with the effects of the 2008 financial crash on it and its membership in the EU.

He sees modern Greece as corrupt, with its government, via kickbacks, bribes, etc, providing easy living for all government workers and their descendants. Greeks don't see this as bad, just making up for brutal treatment under the Ottoman Empire. Plus, taxes go underpaid.

Kind of a paradox, a nation as a birthplace of democracy, science and reason, now a dysfunctional government and people who expect to be rewarded.

Meanwhile, those with ties to the government do pretty well, while those tied to the private economy either do well and move money out of Greece, or suffer.

Greece probably cooked the books to get accepted  to the EU and cannot meet reforms because the nation lives on corruption.

Also, past NAZI occupation of Greece during WW2 still evokes passion, such that they see Germany as just the latest evil incarnation of the past, via the austerity wanted in proposed reforms. Talk of WW2 reparations still are prevalent.

The author uses lots of interviews to paint his picture of recent Greece and I recommend the book to better understand Greece in relation to the current financial situation.

My Review of "A Force for Good"

5 out of 5 stars

This book looks at the financial crash of 2008 and offers ways to reduce the odds of one happening again. The author, John G. Taft, has a fine education and experience to qualify him for such a book, and the book offers lots of details, with opinions from many noted people like Sheila Bair, John Bogle, etc.

The book says the word, finance is derived from the Latin word, finis, meaning end, and the Latin term meaning goal. So, finance is intended to reach an end, a goal, inferring a longer term objective. Taft sees one of the main reasons for the crash was too much short term thinking, driven largely to increase the stock price, especially since executives are rewarded with stock options. Plus, since the stock price is driven higher when the company exceeds analyst estimates, rather than real results, it is a phony way to value a stock, especially no matter what real or estimated results are, the CEO can just offer positive 'guidance.

So, the author says executive pay should not be depended on short term moves in stock prices. Further, the author says a company's mission should be not just for the benefit of stock holders, but put clients/customers first. Historically, investment houses, like Goldman Sachs, were partnerships, with the added incentive to put the client first because assets of the partners were at risk, too. He recommends a "fiduciary capitalism" where banks have an explicit fiduciary role. Also, he advocates a "sustainability capitalism" where a corporation also should include financial negatives and positives for how a company has affected the environment, too.

He thinks there also should be super fiduciaries which try to hold companies to such standards, even sustainability concerns.He sees CALPERS, the CA pension system and the Bill and Melinda Gates Foundation as examples.

I recommend this book for any CEO or high ranking government official and anyone who is interested in the 2008 crash and ways to improve our form of capitalism.