Exponential - July 12, 2015

www.skillbridge.co
Exponential
Skillbridge is a digital service
empowering firms with Elite
Business Freelancers on demand.
In this issue:
• Kowabunga: the Aloha State doubles
down on solar energy
• RoboCop: police forces take new datadriven
approach
• Call the shots: inside the fast-growing
field of telemedicine
• Meet Jobaline.com’s Luis Salazar, who is
adding automation to blue collar hiring
1 +1 (212) 548 4548 www.skillbridge.co

Exponential the Skillbridge Magazine
Kowabunga: the Aloha
State doubles down on
solar energy
• 21% of Hawaii’s power now comes from renewable sources like wind turbines
and solar panels.
• A new Hawaiian state law mandates that renewables supply all of Hawaii’s
electricity by 2045.
Hawaii doubles down on solar energy
To understand the problems of turning the electric grid green,
you should look first to Haiwaii. In total, 21% of the state’s
power now comes from renewable sources like wind turbines
and solar panels. A new law mandates that renewables must
supply all of the state’s electricity by 2045. But Hawaii’s grid is
already running into problems with large amounts of rooftop
solar and other renewable technologies working unreliably on a
disconnected system.
2 +1 (212) 548 4548 www.skillbridge.co

Exponential the Skillbridge Magazine
Solar and wind swings
Because of sudden swings in the output of solar and wind energy,
Hawaii’s main utility frequently struggles to maintain a steady
supply. State officials concede that there are problems but have not
given up. Hawaii’s effort is attracting global attention for its unusual
electrical system: each island has its own electric grid, which are not
connected. In mainland America, three big power grids serve 48
states. Historically, the bigger the grid, the more stable it is. Hawaii
remains the only state that still burns oil to generate most of its
electricity. 70% of Hawaiian energy comes from oil vs. 1% for the US
as a whole, according to federal data. This has pushed Hawaii’s
average electricity price to 34 cents per kilowatt-hour, the highest in
America, and almost triple the national average.
Hawaii’s average
electricity price is 34
cents per kilowatt-hour,
the highest in America.
A long road ahead
The Aloha State ranks seventh in the United States in terms of
cumulative solar energy installations, according to the first quarter
report by the Solar Energy Industries Association and GTM
Research. To date, Hawaii has 52,000solar residential installations
and over 2,500 solar commercial installations.
Deutsche Bank predicts that, by 2016, solar power will be as cheap as
grid power in 36 states even if Congress lets renewable-energy tax
credits expire. Burning fossil fuels significantly increases costs to
taxpayers. A study in Climatic Change estimates that American fossil
fuel power plants create $970bn worth of climate damage and
negative health effects each year.
What the brains think…
The McKinsey piece “Solar power is shining” posits that the solar
industry lapsed into “a classic cycle of boom and bust after a decade
of unprecedented growth.” Years of government subsidies boosted the
global installed capacity of solar-photovoltaic (PV) modules and
dramatically cut prices. Then, new producers, including China,
rushed into the market, prompting pressures on margins. Demand
hasn’t kept up with supply, and governments continue to scale back
support as they cope with the aftermath of the economic crisis. For all
its problems, McKinsey indicates that the industry is suffering from
growing pains, not dying. Solar is entering a period of maturation that
will probably lead to more stable and expansive growth for companies
that can manage costs and tap rising demand.
Hawaii has 52,211
residential solar
installations and 2,550
solar commercial
installations.
Key Reading:
• Newsweek: Hawaii Is
Aiming for 100 Percent
Energy Renewables.
Can the Nation Follow?
• WSJ: Hawaii Wrestles
With Vagaries of Solar
Power
• McKinsey: Solar power
is shining
3 +1 (212) 548 4548 www.skillbridge.co

Exponential the Skillbridge Magazine
RoboCop: police forces
upgrade their technology,
take data-driven approach
• Estimates show that in 2015 the global police and law enforcement equipment
market will reach $7bn.
• Hardware firms like Taser now sell cloud-storage services that can cost $15-
$55 per body camera-wearing police officer per month.
Technology in policing
Following a string of high-profile police shootings, American
police departments are now buying thousands of body cameras
that will hold individual officers accountable for their actions.
As police grapple with the challenge of storing a huge amount of
data, manufacturers like hardware-maker Taser, are providing
cloud storage services. Estimates indicate that the global law
enforcement equipment market will reach $7bn by 2015.
4 +1 (212) 548 4548 www.skillbridge.co

Exponential the Skillbridge Magazine
Gunshot detection technology arrives
Shots fired in New York City will no longer go unheard. In March, the
NYPD introduced new technology that pinpoints the sound of gunfire
to provide police officers with real-time incident locations. The
ShotSpotter system uses sensors to triangulate the place of a
shooting and alert police — even when nobody calls 911.
The initiative is being piloted in seventeen police precincts including
the Bronx. The cost to run the ShotSpotter service is $1.5m per year.
In total, 300 ShotSpotter sensors are being installed across an area of
15 square miles.
New York City has
invested in the
ShotSpotter system to
triangulate gunshots.
Police departments fight crime with big data
The Los Angeles police are increasingly relying on technology that
not only tells patrol officers where crime is most likely to occur but
also tracks ex-cons likely to commit misdemeanours. The approach
has already helped to reduce crime in one of LA’s most notorious
neighborhoods, the infamous "Shootin' Newton.” The program is
expanding and has drawn interest from police departments across
North America. Dubbed LASER for its ability to zero in on offenders
and hotspots, the new law enforcement tool uses data tracking of
objects such as license plates and phones. LASER uses technology
developed by the CIA's venture capital arm allowing investigators to
match up troves of data from 15 separate sources and to connect dots
that they otherwise might miss.
The Los Angeles Police
Department’s LASER
program uses crimereduction
technology
developed by the CIA’s
venture capital arm.
What the brains think…
The Deloitte report “The Digital Policing Journey: From Concept to
Reality” argues that many police departments have been slow to
realize the benefits of using technology. The most common mistake
police departments make is buying and equipping forces with mobile
devices without considering the full range of requirements that these
devices must support. This frequently results in police forces
becoming over-equipped with conflicting technologies. 83% of CIOs
surveyed by Deloitte believe that resistance by employees is the
number one cause of IT project failures. For police technology to have
the highest efficacy, it must be adopted and then used regularly by
officers in the field.
Key Reading:
• Capital New York:
NYPD legal official on
interplay of police
technologies
• WSJ: Maker of Police
Body Cameras Is
Acquired
• Deloitte: The Digital
Policing Journey: From
Concept to Reality
5 +1 (212) 548 4548 www.skillbridge.co

Exponential the Skillbridge Magazine
Call the shots: inside
the fast-growing field
of telemedicine
• Worldwide revenue for telehealth devices and services is expected to reach
$4.5 billion in 2018, up from $440.6 million in 2013.
• Between 2013 and 2018, the number of patients using telehealth services will
grow to 7 million in 2018, up from 350,000 in 2013.
Telemedicine: heal of the future
Telemedicine – exchanging medical information via electronic
communications to boost health outcomes – is growing rapidly.
The field is witnessing unprecedented diversification as it
branches out into services using two-way video, email and
smartphones. The method is increasingly being integrated into
the operations of hospitals, home health agencies, and even
modern workplaces.
6 +1 (212) 548 4548 www.skillbridge.co

Exponential the Skillbridge Magazine
Costs down: Doctors in the cloud
Worldwide revenue for telehealth devices and services is expected to
reach $4.5bn in 2018, up from $440m in 2013. In this period, the
number of patients using telehealth services will grow from 350,000
to 5m. The mindset of healthcare professionals toward telehealth is
shifting too: The Academy of Integrative Health and Medicine
Conference Poll of healthcare providers shows that 67% of American
healthcare professionals are either using some form of telemedicine
now, or are planning to in the next few years. A 2014 study by
healthcare consulting firm HIMSS Analytics reveals that the #1
driver of telehealth investment is the need to fill gaps in care. 70% of
consumers reported that they’d rather have an online video visit to
obtain a prescription than travel to their doctor’s office.
70% of consumers
reported that they’d
rather have an online
video visit to obtain a
prescription than travel to
their doctor’s office.
Companies at the telehealth forefront
An intriguing partnership is emerging between Intel and GE. The two
firms have co-created Health Harmony, a service that “simplifies
implementing and deploying remote care management by providing
intuitive and easy-to-use technology for the clinician, patient, and
family caregiver.” The platform encourages patients to engage in their
own health from home using consumer-friendly devices, interactive
education, and videoconferencing. The software enables patients to
transmit daily vital data to clinicians, collecting subjective
information typically collected during an in-office visit. Startups are
also playing a role in the sector: Healthtap has raised $38m, and
already uses 67,000 doctors to answer users’ health questions for free.
Healthtap has raised
$38.3m and Doctor on
Demand has raised $74m
in venture capital funding
to improve telehealth.
What the brains think…
Venture capitalist Vinod Khosla is an outspoken supporter of the
telehealth revolution. He believes that “if 90% of the time the doctor
knows exactly the right kind of diagnosis from very few and
superficial inputs does it really require 10+ years of intense education
for every diagnostician?” Khosla adds that the fault is not entirely
with the doctors, as “most of us don’t know what set of symptoms
warrant the full-scale attention of medical personnel, so we either go
all the time or we do not go at all (save for emergencies).” The HBR
piece “Telemedicine Can Cut Health Care Costs by 90%” details how
telemedicine is used widely in rural India, and has significantly cut
healthcare costs. In cases where doctor’s office treatment was
required, that can now be brought to the home, costs have been
reduced by over 90%. How quickly will this change happen in the US?
Key Reading:
• USC Annenberg and
ReportingonHealth.org
report: Bedside
Manners: Lessons from
Consumer Reports
patient safety survey
• TechCrunch: Do We
Need Doctors Or
Algorithms?
• HBR: Telemedicine
Can Cut Health Care
Costs by 90%
7 +1 (212) 548 4548 www.skillbridge.co

Exponential the Skillbridge Magazine
Driving force: robot cars
meet on California road
In Palo Alto, self-driving cars meet
Two self-driving cars met on the road in Palo Alto, California,
resulting in one taking evasive action, Reuters reports. One
robot car made by Delphi Automotive and another one by
Google, met when the Google car, a Lexus RX400h crossover,
pulled in front of the Delphi vehicle, an Audi Q5 crossover,
making it abandon a planned lane change. The incident comes
as Google's purpose-built self-driving cars take to California
highways to see how well they mix with regular traffic. Details of
the encounter were revealed to Reuters by John Absmeier,
director of Delphi's self-driving car driving unit.
8 +1 (212) 548 4548 www.skillbridge.co

Winners and Losers
Good Week For: OpenDNS
Cisco Systems has agreed to buy network security company
OpenDNS for $635m, further boosting its online security portfolio.
Based in San Francisco, OpenDNS protects corporations, schools and
households from attacks and malware by providing cloud-delivered
security services. Security represented about 4% of Cisco’s overall
revenue in 2014.
Bad Week For: SpaceX
A SpaceX rocket broke up 2 minutes into its flight. The rocket’s
Dragon space capsule was carrying 4 tons of food, fuel and
experimental apparatus for the International Space Station (ISS).
This is the third resupply mission to the ISS to fail in the last 10
months. Last fall, one mission attempted by Orbital Sciences ended
in explosion while a Russian mission spiralled out of control in April
2015. The ISS is currently inhabited by two Russian cosmonauts,
and one American astronaut.
Bad Week For: French Uber executives
French prosecutors ordered two top executives from Uber to stand
trial on charges that could bring fines and jail time. Pierre-Dimitri
Gore-Coty and Thibaud Simphal were released after spending a night
in police custody. They face charges including deceptive commercial
practices, enabling illegal taxi services and illicit storage of personal
data. Uber as a company is also charged for operating a system that
puts passengers in touch with drivers who don’t have professional
driving licenses.
Good Week For: Chubb Corporation shareholders
In the largest-ever deal between two companies in the insurance
industry, ACE Ltd. has agreed to buy Chubb Corp. for $28.3bn in
cash and stock. The deal comes as the property-and-casualty sector
faces pricing pressures in addition to diminished interest income. In
obtaining Chubb, ACE gets access to a well-known brand name and
potential synergies between the two firms’ middle-market
commercial businesses.
9 +1 (212) 548 4548 www.skillbridge.co

Exponential the Skillbridge Magazine
The Briefing
The global round-up
Brazilian firm JBS buys American pork
business from Cargill
JBS, the owner of the Swift pork brands,
has acquired an appetite for acquisitions.
The Brazilian buyer, already the world's
largest meat producer, will buy Cargill's
US-based pork business for $1.45bn. The
purchase, made by Colorado-based JBS
USA Pork, includes two Cargill
Midwestern meat processing plants
acquired by Cargill in 1987 -- one in
Ottumwa, Iowa, and the other in the
western Illinois town of Beardstown
Together, the plants processed over 9
million hogs in 2014.
Guyana Assures Exxon That Venezuela
Dispute Won’t Slow Oil Exploration
waklingsf via
flickr
Exxon Mobil recently discovered oil off the
coast of Guyana but Venezuela is claiming
the oil as its own. Guyanese President David
Granger has a clear message for Exxon
Mobil: Drill on. Granger, who took office days
before Exxon announced the significant find
in May, said that he met with officials from
the company and offered assurances that
exploration work won’t be interrupted,
despite Venezuela’s revival of a century-old
claim on two-thirds of Guyana’s territory.
10 +1 (212) 548 4548 www.skillbridge.co

Exponential the Skillbridge Magazine
Airbus beats Boeing for South Korea cargo
contract
Airbus beat out Boeing in a $1.3bn race to
supply South Korea with four aerial refuel
tankers. South Korea plans to buy four Airbus
A330 MRTT jets to fuel the country's military
aircraft. The first delivery is due in 2019.
Airbus leads Boeing in overseas sales in the
refuel-jet contest. Customers for the A330
MRTT jets include Australia, the UK, Saudi
Arabia and Singapore.
Carlyle Group invests into Chinese
logistics company Shanghai ANE
Philippines San Miguel makes oil and
beer
San Miguel, known for its ubiquitous
Philippine beer, now makes most of its
money from oil. Over the past seven years,
San Miguel President Ramon Ang has
engineered a series of acquisitions that
have turned the Philippines’ biggest
brewery into an oil and gas company,
quadrupling the firm’s revenues. Today,
over 70% of San Miguel’s revenue comes
from oil. Since 2010, San Miguel has
expanded into power generation, mining,
infrastructure, telecommunications and
petrochemicals businesses. Sales hit
$17.4bn last year, equivalent to 6% of
national GDP.
The Carlyle Group is leading an
investment in Chinese logistics company,
Shanghai ANE Logistics. The firm
delivers small orders throughout China
through a network of 5,000 franchised
stores. Carlyle Group’s portion of the
investment is $120 million with the
American company betting on demand for
delivery services to support China’s fastgrowing
e-commerce industry. Goldman
Sachs Group and China Renaissance are
also putting money into the firm. Private
equity firms have poured money into
logistics companies and warehousing in
China as online retailers like Alibaba and
JD.com experience rapid growth.
11 +1 (212) 548 4548 www.skillbridge.co

Exponential the Skillbridge Magazine
h
The Interview
• This week’s interview is with Luis Salazar, president
and CEO of Jobaline.com.
• Jobaline is the largest and fastest growing, mobilefirst,
multi lingual marketplace for hourly jobs,
reaching millions of job seekers on any device.
• The firm uses state-of-the-art technology to solve the
key issues affecting hourly wage workers and their
employers; addressing inefficiencies that cost US
companies over $300bn every year.
What were the major changes in trends
that led you to found Jobaline?
volumes augment the inefficiencies that
already exist.
The hourly jobs segment has been
neglected for years. The last time
innovation was brought to the industry
was in the late ‘90s when Monster.com
created classified advertising for jobs
and an online resource to serve the
market. Since then, little has been done
in terms of innovation for the low wage
hourly workers segment, a segment that
for two-thirds of the US labor force.
When we drilled into the numbers, we
saw close to 1bn job applications were
processed in this segment every year, a
majority of which were processed
manually or using dated technologies.
We observed an emerging digital gap
with only 20% of corporations enabling
mobile job applications while 92% of
the labor force is mobile. According to
the US Department of Labor, 2% of US
companies generate two-thirds of
available jobs. 80% of these jobs are in
the services sector, where seasonality
and the temporary nature of some jobs
create a constant hiring cycle. High
How do you expect that technology will
continue to revolutionize human
resources in the coming years?
The Human Capital Management
Sector is in a healthy stage with venture
capital funding many companies that,
alongside Jobaline, are seeking to
disrupt the status quo. The key focus in
this decade is real-time matching
technologies.
We have two issues in the US labor
economy right now. One is inefficiency
in recruitment. The other is the existing
inefficiency of people not having the
right skillsets needed to perform jobs.
Real-time matching, real-time
assessment, and addressing the skills
gap in the low wage segment are three
issues that technology must address for
the HCM sector in this decade.
12 +1 (212) 548 4548 www.skillbridge.co

Exponential the Skillbridge Magazine
The Interview
h
You recently spoke at the Jordan, Edmiston Group
Conference in New York about the impact that
Jobaline has had on its users. Can you share with
us how Jobaline helps its users?
We have processed over 850,000 job applications,
helping hundreds of thousands of people get back
to work; people who have been neglected by their
lack of access to technology. On average, the midmarket
and large corporations using Jobaline have
saved 60% on recruitment and have reduced their
time-to-hire by 50%.
It looks like Jobaline has grown very fast on mobile
devices. What is it about your user base that has
made mobile their go to interface?
This segment of the population is mobile first. 92%
of the population in the US has either a
smartphone or a cell phone with text messaging
capabilities, and our solution enables job seekers to
apply to a position regardless of their level of
access to technology. Thanks to our intuitive
experience, free of ads and tailored to serve the
needs of the hourly jobs sector, we built a network
of over 500,000 workers in the first 18 months.
From your perspective, what were the biggest pain
points that your customers faced when searching
for jobs before Jobaline was created?
First and foremost we serve the workers; we win
only if we help them to get back to work. And our
customers are the employers who pay for the
service in order to hire faster, reduce their
recruiting costs, and comply with EEOC and
OFCCP regulations to guarantee every worker a
fair chance.
From the worker point of view, the biggest pain is
that only 20% of companies in the US offer a
mobile friendly job application process; and by
this, I mean a real mobile experience, not just the
same dated process reformatted to fit into a
smaller screen. When the process is not mobile
friendly, they are forced, for example, to take mass
transit to find a computer to apply for a job or
knock on the doors of local hotels, retail shops and
construction sites to fill out paper applications.
Another major problem, as reported by several of
our large customers and now being investigated by
some legislators, is when workers visit job listing
sites where their contact information is captured
without their explicit consent and then sold to
third parties. This does not result in a job but being
inundated with marketing solicitations. It’s 2015;
we can do this much better.
Prior to founding Jobaline, you had a very
successful career at Xerox, Microsoft and Yahoo.
What did working in a large corporate
environment teach you that has helped you
succeed at Jobaline?
Working in a large corporate environment gave me
a framework for how to operate a business at scale,
and helped me to determine which numbers are
vital to look at in order to evaluate whether or not a
business is on the path to success. Xerox is
extremely focused on customer experience and
customer service. Microsoft is equally focused on
customer experience, and on serving the needs of
enterprise organizations. At Microsoft, we always
asked, “How do you think about a scalable business
model to support a scalable product?” My
experience at Yahoo was a fantastic way to
understand how different demographic groups
online and how their behavior changes depending
on each generation.
Online Extra: Read the full length interview, including a
deeper discussion into the changing nature of hiring at
www.skillbridge.co/LuisSalazar
Luis Salazar is president and CEO of Jobaline. He previously held positions as General
Manager at Microsoft, Customer Service Director at Xerox, and CMO & Corporate Strategy
Officer at Global Market Insite. A native of Venezuela, he earned a degree in Mechanical
Engineering at Universidad Simón Bolívar.
13 +1 (212) 548 4548 www.skillbridge.co

The Briefing
The Briefing
Exponential the Skillbridge Magazine
2 key
reads
McKinsey: Unlocking the potential of the Internet of
Things
INTERNET OF THINGS; TECH – McKinsey estimates
that the Internet of Things (IoT) will have a total potential
economic impact of between $4 to $11 trillion a year by
2025. At the top end, that valuation would be equivalent to
about 11% of the world economy. The report argues that the
interoperability between IoT systems is of critical
importance. Of the total potential economic value the IoT
enables, interoperability is required for 40% to 60% of uses.
Currently, most IoT data are not used. For example, on an
oil rig that has 30,000 sensors, only 1% of the data are
examined. That’s because this information is used mostly to
detect and control anomalies—not for optimization and
prediction, which provide the greatest value.
aiigle_dore via flickr
Fast Company: How Shake Shack leads the better burger
revolution
FOOD; IPO – Shake Shack opened in New York’s Madison
Square Park 11 years ago. Created by New York
restaurateur Danny Meyer, it has grown from a humble
burger stand into a global chain with 41 US outlets and 29
overseas franchises in cities like Moscow, Dubai, Istanbul,
and London. The company went public in January, raising
$112m in an IPO that valued it at around $1.6bn. When
Shake Shack announced its impressive first-quarter
earnings in May, its stock price had more than tripled.
That IPO was the highest-profile moment yet for the
"better burger" category. Better-burger successes include
Five Guys (over $1.3bn in revenue last year), Smashburger
($270m), and Habit Burger ($175m), which also went
public recently. In 2014, these small chains brought in
$2.7bn of the $76.9bn generated by hamburger
restaurants in the US, which suggest that there is plenty
of room to grow.
14 +1 (212) 548 4548 www.skillbridge.co

Exponential the Skillbridge Magazine
Deeper Dives
We heart h charts
Trane de Vore via flickr
How do body cameras change the
behavior of police officers?
Effect of Body Camera Use on the Rialto, California Police Department
Research into the effect of body
cameras is limited, but one police
force – a mid-sized department in
Rialto, California – has published the
results of its shift to body-worn
cameras. When some members of
the force began wearing cameras in
February 2012, instances of using
force dropped significantly, as did
complaints of police misconduct.
Global Forecast of Telehealth Patients and Device and Service Revenue
How is alternative energy being used in
Hawaii?
In 2012, Hawaii imported 93% of the
energy it consumed. In 2013, the state had
the highest electricity prices in the
nation. Yet Hawaii has the world's largest
commercial electricity generator fueled
exclusively with biofuels. Hawaii is one of
eight states with installed geothermal
capacity. In 2013, 23% of its renewable
net electricity generation came from
geothermal energy.
Source: IHS Technology
Source: IS News and World Reports/Rialto Police Department
How fast is telehealth predicted to
grow globally?
The global telehealth market will
grow by more than a factor of 10
from 2013 to 2018, as medical
providers increasingly employ
remote communications and
monitoring technology to reduce
costs and improve the quality of
care. Worldwide revenue for
telehealth devices and services is
expected to swell to $4.5bn in
2018, up from $440.6m in 2013.
Residential and commercial net-metered solar PV capacity in Hawaii;
average residential solar PV system size
Source: US Energy Information Administration
15 +1 (212) 548 4548 www.skillbridge.co