Good morning, CIOs. As digital technology transforms business, enterprises can be at a disadvantage relative to newcomers. One solution is to work with startups, but that can be tricky because of security, regulatory and policy requirements at large companies. CIO Journal spoke to the top technology executives at JetBlue Airways about how they make the relationship work through a corporate venture arm, JetBlue Technology Ventures.
The Silicon Valley-based venture group looks for technology that could add business value within 18 months, as well as that which may have longer, 5- to 10-year payoffs. It has made early and mid-stage investments in 18 startups since 2016.
“Being part of the Silicon Valley innovation ecosystem is very important for us,” Eash Sundaram, JetBlue’s chief digital and technology officer, tells CIO Journal.
MORE TECHNOLOGY NEWS
ZTE replaces execs. ZTE Corp. has named new top executives, including a new CEO, a person familiar with the matter said, reports WSJ’s Dan Strumpf. The Chinese telecom firm presses ahead with its U.S.-mandated leadership purge. The new leadership comes less than a week after ZTE’s board of directors resigned and shareholders voted to install a new eight-person board.
U.K. banks need cybersecurity backup plan. British banks were given three months to explain how they can avoid damaging IT breakdowns and respond to the growing threat of cyber attacks, reports Reuters. The Bank of England and the Financial Conduct Authority told banks to report back by Oct. 5 on their exposure to risks and how they would respond to outages, according to Reuters.
China blocks Micron chip sales. A Chinese court’s patent ruling temporarily has stopped Micron Technology Inc., the largest memory-chip maker in the U.S., from selling a range of products in China, two rival manufacturers said, The Wall Street Journal’s Chuin-Wei Yap reports. The decision comes as trade tensions rise between Beijing and Washington, which has accused Chinese businesses of intellectual-property theft, among other issues.
Tech companies win reprieve. European Union lawmakers rejected new copyright rules Thursday, instead opting for more debate, a victory for tech firms that are facing a broader European effort to rein them in on topics ranging from privacy to taxes, reports WSJ’s Sam Schechner.Thursday’s vote means that the copyright legislation will be sent back to the full EU parliament for debate in September.
Google, Facebook monopolize ideas. An advertisement for bail-bond companies that was banned by Alphabet Inc.’s Google raises the question whether it’s fair that an entire industry can be kicked out of a major advertising channel, reports WSJ’s Greg Ip. While Google and Facebook Inc. claim to be neutral platforms that connect users, advertisers and content providers, decisions about which ads to ban are inherently value-laden.
Tech firms may slow growth in wages. Fast-growing tech firms are taking a growing share of national income in many countries, leaving workers’ overall wage growth subdued, reports Reuters, citing the Organization for Economic Cooperation and Development. After the 2008-2009 global economic crisis, many workers were forced to accept low-pay jobs and overall productivity gains in most economies no longer translated into higher wages for all workers, Reuters reports.
LED tariffs puts spotlight on Cree Inc. The North Carolina maker of lighting products said this week that it faces a 25% duty on light-emitting diodes shipped to the U.S. from its plant in China, Jay Greene reports in The Wall Street Journal. Joining other U.S. tech firms, Cree has argued that paying tariffs on its own products will cut into spending on research and jobs at home. The Trump administration says planned tariffs on some $50 billion worth of Chinese goods are needed to thwart cyber espionage and unfair subsidies.
Volkswagen seeks recharge with electric speedster. Roughly three years after a scandal over diesel emissions tarnished its image, Volkswagen AG is hoping for a public-relations boost from its prototype all-electric race car, The Journal’s Dan Neil reports. Dubbed the I.D. R, the battery-powered vehicle last month shaved 17 seconds off the previous track record for climbing Pikes Peak, a winding 12.42-mile mountain route in central Colorado. The prior record was set in 2013 when a Peugeot 208 T16 rally car reached the peak in 8 minutes and 13.878 seconds, Mr. Neil reports.
Uber rides again in Finland. Uber Technologies Inc. will re-start its ride-hailing business in Finland after a one-year pause, according to Reuters. The company has been the target of police investigations in Finland and drivers have been ordered to give up their earnings to the state for not having valid permits, Reuters reports. New transportation laws came into effect on July 1 that created a legal framework for companies such as Uber.
EVERYTHING ELSE YOU NEED TO KNOW
With clock ticking, China warns U.S. will shoot itself in the foot if it pulls the trigger on tariffs. (WSJ)
The head of General Electric Co. in Latin America is arrested in Brazil, accused of taking part in a price-fixing cartel when he worked for Philips Medical Systems, before joining GE. (WSJ)
Truck-factory backlogs soar on heavy demand for big rigs. (WSJ)
After more than a decade of winning and unconventional behavior, David Einhorn’s Greenlight Capital has shrunk by half. (WSJ)
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