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Global Advisors is a leader in defining quantified strategies, decreasing uncertainty, improving decisions and achieving measureable results.

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Global Advisors’ Thoughts: Is insecurity behind that dysfunction?

Global Advisors’ Thoughts: Is insecurity behind that dysfunction?

By Marc Wilson
Marc is a partner at Global Advisors and based in Johannesburg, South Africa

Download this article at http://www.globaladvisors.biz/inc-feed/20170907/thoughts-is-insecurity-behind-that-dysfunction

We tend to characterise insecurity as what we see in overtly fragile, shy and awkward people. We think that their insecurity presents as lack of confidence. And often we associate it with under-achievement.

Sometimes we might be aware that insecurities can lie behind the -ias, -isms and the phobias. Body dysmorphia? Insecurity about attractiveness. Racism? Often the need to find security by claiming superiority, belonging to group with power, a group you understand and whose acceptance you want. Homophobia? Often insecurity about one’s own sexuality or masculinity / feminity.

So it is often counter-intuitive when we discover that often behind incredible success lies – insecurity! In fact, an article I once read described the successful elite of strategy consulting firms as typically “insecure over-achievers.”

Insecurity must be one of the most misunderstood drivers of dysfunction. Instead we see its related symptoms and react to those. “That woman is so overbearing. That guy is so aggressive! That girl is so self-absorbed. That guy is so competitive.” Even, “That guy is so arrogant.”

How is it that someone we might perceive as competitive, arrogant or overconfident might be insecure? Sometimes people overcompensate to hide a weakness or insecurity. Sometimes in an effort to avoid feeling defensive of a perceived shortcoming, they might go on the offensive – telling people they are the opposite or even faking security.

Do we even know what insecurity is? The very need to…

Read the rest of “Power, Control and Space” at http://www.globaladvisors.biz/inc-feed/20170907/thoughts-is-insecurity-behind-that-dysfunction

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Strategy Tools

Your due diligence is most likely wrong

Your due diligence is most likely wrong

As many as 70 – 90% of deals fail to create value for acquirers. The majority of these deals were the subject of commercial or strategic due diligences (DDs). Many DDs are rubber stamps – designed to motivate an investment to shareholders. Yet the requirements for a value-adding DD go beyond this.

Strategic due diligence must test investees against uncertainty via a variety of methods that include scenarios, probabilised forecasts and stress tests to ensure that investees are value accretive.

Firms that invest during downturns outperform those who don’t. DDs undertaken during downturns have a particularly difficult task – how to assess the future prospects of an investee when the future is so uncertain.

There is clearly an integrated approach to successful due diligence – despite the challenges posed by uncertainty.

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Fast Facts

The use of full absorption or average costing in asset-intensive industries with under-utilisation can lead to self-defeating pricing strategies

The use of full absorption or average costing in asset-intensive industries with under-utilisation can lead to self-defeating pricing strategies

Non-conformance costs can distort pricing decisions The use of full absorption or average costing in asset-intensive industries with under-utilisation can lead to self-defeating pricing strategies

  • The use of full absorption or average costing in a manufacturing environment with under-utilisation can lead to self-defeating pricing strategies
  • The increase in price to cover costs results in volume decreases – lowering factory utilisation and increasing unit production costs. This is the start of the utilisation-pricing “death spiral”
  • Costing according to factory utilisation – partial absorption costing – offers the opportunity to be more strategic about costing and utilisation
  • “Unabsorbed” costs can be targeted through OEE and volume improvements. At the same time, the “disadvantage” of having a large factory is normalised and pricing can compete with more fully-utilised factories
  • A recent manufacturing client saw 60% of unit costs arise from factory under-utilisation – sub-optimal OEE levels (non-conformance), low volumes and work-centre bottlenecks contributed to the utilisation gap
  • These principles can apply to any asset-intensive business – for example banking
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Selected News

Term: AI Data Centre

Term: AI Data Centre

“An AI Data Center is a highly specialized, power-dense physical facility designed specifically to train, deploy, and run artificial intelligence (AI) models, machine learning (ML) algorithms, and generative AI applications.” – AI Data Centre

This specialised facility diverges significantly from traditional data centres, which handle mixed enterprise workloads, by prioritising accelerated compute, ultra-high-bandwidth networking, and advanced power and cooling systems to manage dense GPU clusters and continuous data pipelines for AI tasks like model training, fine-tuning, and inference.1,2,4

Central to its operation are high-performance computing resources such as Graphics Processing Units (GPUs) and Tensor Processing Units (TPUs). GPUs excel in parallel processing, enabling rapid handling of billions of data points essential for AI model training, while TPUs offer tailored efficiency for AI-specific tasks, reducing energy consumption.2,3,5

High-speed networking is critical, employing technologies like InfiniBand, 400 Gbps Ethernet, and optical interconnects to facilitate seamless data movement across thousands of servers, preventing bottlenecks in distributed AI workloads.2,4

Robust storage systems-including distributed file systems and object storage-ensure swift access to vast datasets, model weights, and real-time inference data, with scalability to accommodate ever-growing AI requirements.1,2,3

Addressing the immense power density, advanced cooling systems are vital, often accounting for 35-40% of energy use, incorporating liquid cooling and thermal zoning to maintain efficiency and low Power Usage Effectiveness (PUE) for sustainability.2,4

Additional features include data centre automation, network security, and energy-efficient designs, yielding benefits like enhanced performance, scalability, cost optimisation, and support for innovation in fields such as big data analytics, natural language processing, and computer vision.3,5

Key Theorist: Jensen Huang and the GPU Revolution

The foremost strategist linked to the evolution of AI data centres is Jensen Huang, co-founder, president, and CEO of NVIDIA Corporation. Huang’s vision has positioned NVIDIA’s GPUs as the cornerstone of modern AI infrastructure, directly shaping the architecture of these power-dense facilities.2

Born in 1963 in Taiwan, Huang immigrated to the United States as a child. He earned a bachelor’s degree in electrical engineering from Oregon State University and a master’s from Stanford University. In 1993, at age 30, he co-founded NVIDIA with Chris Malachowsky and Curtis Priem, initially targeting 3D graphics for gaming and PCs. Huang recognised the parallel processing power of GPUs, pivoting NVIDIA towards general-purpose computing on GPUs (CUDA platform, launched 2006), which unlocked their potential for scientific simulations, cryptography, and eventually AI.2

Huang’s prescient relationship to AI data centres stems from his early advocacy for GPU-accelerated computing in machine learning. By 2012, Alex Krizhevsky’s use of NVIDIA GPUs to win the ImageNet competition catalysed the deep learning boom, proving GPUs’ superiority over CPUs for neural networks. Under Huang’s leadership, NVIDIA developed AI-specific hardware like A100 and H100 GPUs, Blackwell architecture, and full-stack solutions including InfiniBand networking via Mellanox (acquired 2020). These innovations address AI data centre challenges: massive parallelism for training trillion-parameter models, high-bandwidth interconnects for multi-node scaling, and power-efficient designs for dense racks consuming up to 100kW each.2,4

Huang’s biography reflects relentless innovation; he famously wore a black leather jacket onstage, symbolising his contrarian style. NVIDIA’s market cap surged from $3 billion in 2015 to over $3 trillion by 2024, propelled by AI demand. His strategic foresight-declaring in 2017 that “the era of AI has begun”-anticipated the hyperscale AI data centre boom, making NVIDIA indispensable to leaders like Microsoft, Google, and Meta. Huang’s influence extends to sustainability, pushing for efficient cooling and low-PUE designs amid AI’s energy demands.4

Today, virtually every major AI data centre relies on NVIDIA technology, underscoring Huang’s role as the architect of the AI infrastructure revolution.

References

1. https://www.aflhyperscale.com/articles/ai-data-center-infrastructure-essentials/

2. https://www.rcrwireless.com/20250407/fundamentals/ai-optimized-data-center

3. https://www.racksolutions.com/news/blog/what-is-an-ai-data-center/

4. https://www.f5.com/glossary/ai-data-center

5. https://www.lenovo.com/us/en/glossary/what-is-ai-data-center/

6. https://www.ibm.com/think/topics/ai-data-center

7. https://www.generativevalue.com/p/a-primer-on-ai-data-centers

8. https://www.sunbirddcim.com/glossary/data-center-components

"An AI Data Center is a highly specialized, power-dense physical facility designed specifically to train, deploy, and run artificial intelligence (AI) models, machine learning (ML) algorithms, and generative AI applications." - Term: AI Data Centre

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