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      Learner in Afghanistan reaches beyond barriers to pursue career in data science

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      Tahmina S. was a junior studying computer engineering at a top university in Afghanistan when a new government policy banned women from pursuing education. In August 2021, the Taliban prohibited girls from attending school beyond the sixth grade. While women were initially allowed to continue to attend universities, by October 2021, an order from the Ministry of Higher Education declared that all women in Afghanistan were suspended from attending public and private centers of higher education.

      Determined to continue her studies and pursue her ambitions, Tahmina found the MIT Refugee Action Hub (ReACT) and was accepted to its Certificate in Computer Science and Data Science program in 2022.

      “ReACT helped me realize that I can do big things and be a part of big things,” she says.

      MIT ReACT provides education and professional opportunities to learners from refugee and forcibly displaced communities worldwide. ReACT’s core pillars include academic development, human skills development, employment pathways, and network building. Since 2017, ReACT has offered its Certificate in Computer and Data Science (CDS) program free-of-cost to learners wherever they live. In 2022, ReACT welcomed its largest and most diverse cohort to date — 136 learners from 29 countries — including 25 learners from Afghanistan, more than half of whom are women.

      Tahmina was able to select her classes in the program, and especially valued learning Python — which has led to her studying other programming languages and gaining more skills in data science. She’s continuing to take online courses in hopes of completing her undergraduate degree, and someday pursuing a masters degree in computer science and becoming a data scientist.

      “It’s an important and fun career. I really love data,” she says. “If this is my only time for this experience, I will bring to the table what I have, and do my best.”

      In addition to the education ban, Tahmina also faced the challenge of accessing an internet connection, which is expensive where she lives. But she regularly studies between 12 and 14 hours a day to achieve her dreams.

      The ReACT program offers a blend of asynchronous and synchronous learning. Learners complete a curated series of online, rigorous MIT coursework through MITx with the support of teaching assistants and collaborators, and also participate in a series of interactive online workshops in interpersonal skills that are critical to success in education and careers.

      ReACT learners engage with MIT’s global network of experts including MIT staff, faculty, and alumni — as well as collaborators across technology, humanitarian, and government sectors.

      “I loved that experience a lot, it was a huge achievement. I’m grateful ReACT gave me a chance to be a part of that team of amazing people. I’m amazed I completed that program, because it was really challenging.”

      Theory into practice

      Tahmina was one of 10 students from the ReACT cohort accepted to the highly competitive MIT Innovation Leadership Bootcamp program. She worked on a team of five people who initiated a business proposal and took the project through each phase of the development process. Her team’s project was creating an app for finance management for users aged 23-51 — including all the graphic elements and a final presentation. One valuable aspect of the boot camp, Tahmina says, was presenting their project to real investors who then provided business insights and actionable feedback.

      As part of this ReACT cohort, Tahmina also participated in the Global Apprenticeship Program (GAP) pilot, an initiative led by Talanta and with the participation of MIT Open Learning as curriculum provider. The GAP initiative focuses on improving diverse emerging talent job preparedness and exploring how companies can successfully recruit, onboard, and retain this talent through remote, paid internships. Through the GAP pilot, Tahmina received training in professional skills, resume and interview preparation, and was matched with a financial sector firm for a four-month remote internship in data science.

      To prepare Tahmina and other learners for these professional experiences, ReACT trains its cohorts to work with people who have diverse backgrounds, experiences, and challenges. The nonprofit Na’amal offered workshops covering areas such as problem-solving, innovation and ideation, goal-setting, communication, teamwork, and infrastructure and info security. Tahmina was able to access English classes and learn valuable career skills, such as writing a resume.“This was an amazing part for me. There’s a huge difference going from theoretical to practical,” she says. “Not only do you have to have the theoretical experience, you have to have soft skills. You have to communicate everything you learn to other people, because other people in the business might not have that knowledge, so you have to tell the story in a way that they can understand.”

      ReACT wanted the women in the program to be mentored by women who were not only leaders in the tech field, but working in the same geographic region as learners. At the start of the internship, Na’amal connected Tahmina with a mentor, Maha Gad, who is head of talent development at Talabat and lives in Dubai. Tahmina met with Gad at the beginning and end of each month, giving her the opportunity to ask expansive questions. Tahmina says Gad encouraged her to research and plan first, and then worked with her to explore new tools, like Trello.

      Wanting to put her skills to use locally, Tahmina volunteered at the nonprofit Rumie, a community for Afghan women and girls, working as a learning designer, translator, team leader, and social media manager. She currently volunteers at Correspondents of the World as a story ambassador, helping Afghan people share stories, community, and culture — especially telling the stories of Afghan women and the changes they’ve made in the world.

      “It’s been the most beautiful journey of my life that I will never forget,” says Tahmina. “I found ReACT at a time when I had nothing, and I found the most valuable thing.” More

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      Illuminating the money trail

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      You may not know this, but the U.S. imposes a 12.5 percent import tariff on imported flashlights. However, for a product category the federal government describes as “portable electric lamps designed to function by their own source of energy, other than flashlights,” the import tariff is just 3.5 percent.

      At a glance, this seems inexplicable. Why is one kind of self-powered portable light taxed more heavily than another? According to MIT political science professor In Song Kim, a policy discrepancy like this often stems from the difference in firms’ political power, as well as the extent to which firms are empowered by global production networks. This is a subject Kim has spent years examining in detail, producing original scholarly results while opening up a wealth of big data about politics to the public.

      “We all understand companies as being important economic agents,” Kim says. “But companies are political agents, too. They are very important political actors.”

      In particular, Kim’s work has illuminated the effects of lobbying upon U.S. trade policy. International trade is often presented as an unalloyed good, opening up markets and fueling growth. Beyond that, trade issues are usually described at the industry level; we hear about what the agriculture lobby or auto industry wants. But in reality, different firms want different things, even within the same industry.

      As Kim’s work shows, most firms lobby for policies pertaining to specific components of their products, and trade policy consists heavily of carve-outs for companies, not industry-wide standards. Firms making non-flashlight portable lights, it would seem, are good at lobbying, but the benefits clearly do not carry over to all portable light makers, as long as products are not perfect substitutes for each other. Meanwhile, as Kim’s research also shows, lobbying helps firms grow faster in size, even as lobbying-influenced policies may slow down the economy as a whole.

      “All our existing theories suggest that trade policy is a public good, in the sense that the benefits of open trade, the gains from trade, will be enjoyed by the public and will benefit the country as a whole,” Kim says. “But what I’ve learned is that trade policies are very, very granular. It’s become obvious to me that trade is no longer a public good. It’s actually a private good for individual companies.”

      Kim’s work includes over a dozen published journal articles over the last several years, several other forthcoming research papers, and a book he is currently writing. At the same time, Kim has created a public database, LobbyView, which tracks money in U.S. politics extending back to 1999. LobbyView, as an important collection of political information, has research, educational, and public-interest applications, enabling others, in academia or outside it, to further delve into the topic.

      “I want to contribute to the scholarly community, and I also want to create a public [resource] for our MIT community [and beyond], so we can all study politics through it,” Kim says.

      Keeping the public good in sight

      Kim grew up in South Korea, in a setting where politics was central to daily life. Kim’s grandfather, Kim jae-soon, was the Speaker of the National Assembly in South Korea from 1988 through 1990 and an important figure in the country’s government.

      “I’ve always been fascinated by politics,” says Kim, who remembers prominent political figures dropping by the family home when he was young. One of the principal lessons Kim learned about politics from his grandfather, however, was not about proximity to power, but the importance of public service. The enduring lesson of his family’s engagement with politics, Kim says, is that “I truly believe in contributing to the public good.”

      Kim’s found his own way of contributing to the public good not as a politician but as a scholar of politics. Kim received his BA in political science from Yonsei University in Seoul but decided he wanted to pursue graduate studies in the U.S. He earned an MA in law and diplomacy from the Fletcher School of Tufts University, then an MA in political science at George Washington University. By this time, Kim had become focused on the quantitative analysis of trade policy; for his PhD work, he attended Princeton University and was awarded his doctorate in 2014, joining the MIT faculty that year.

      Among the key pieces of research Kim has published, one paper, “Political Cleavages within Industry: Firm-level Lobbying for Trade Liberalization,” published in the American Political Science Review and growing out of his dissertation research, helped show how remarkably specialized many trade policies are. As of 2017, the U.S. had almost 17,000 types of products it made tariff decisions about. Many of these are the component parts of a product; about two-thirds of international trade consists of manufactured components that get shipped around during the production process, rather than raw goods or finished products. That paper won the 2018 Michael Wallerstein Award for the best published article in political economy in the previous year.

      Another 2017 paper Kim co-authored, “The Charmed Life of Superstar Exporters,” from the Journal of Politics, provides more empirical evidence of the differences among firms within an industry. The “superstar” firms that are the largest exporters tend to lobby the most about trade politics; a firm’s characteristics reveal more about its preferences for open trade than the possibility that its industry as a whole will gain a comparative advantage internationally.

      Kim often uses large-scale data and computational methods to study international trade and trade politics. Still another paper he has co-authored, “Measuring Trade Profile with Granular Product-level Trade Data,” published in the American Journal of Political Science in 2020, traces trade relationships in highly specific terms. Looking at over 2 billion observations of international trade data, Kim developed an algorithm to group countries based on which products they import and export. The methodology helps researchers to learn about the highly different developmental paths that countries follow, and about the deepening international competition between countries such as the U.S. and China.

      At other times, Kim has analyzed who is influencing trade policy. His paper “Mapping Political Communities,” from the journal Political Analysis in 2021, looks at the U.S. Congress and uses mandatory reports filed by lobbyists to build a picture of which interests groups are most closely connected to which politicians.

      Kim has published all his papers while balancing both his scholarly research and the public launch of LobbyView, which occurred in 2018. He was awarded tenure by MIT in the spring of 2022. Currently he is an associate professor in the Department of Political Science and a faculty affiliate of the Institute for Data, Systems, and Society.

      By the book

      Kim has continued to explore firm-level lobbying dynamics, although his recent research runs in a few directions. In a 2021 working paper, Kim and co-author Federico Huneeus of the Central Bank of Chile built a model estimating that eliminating lobbying in the U.S. could increase productivity by as much as 6 percent.

      “Political rents [favorable policies] given to particular companies might introduce inefficiencies or a misallocation of resources in the economy,” Kim says. “You could allocate those resources to more productive although politically inactive firms, but now they’re given to less productive and yet politically active big companies, increasing market concentration and monopolies.”

      Kim is on sabbatical during the 2022-23 academic year, working on a book about the importance of firms’ political activities in trade policymaking. The book will have an expansive timeframe, dating back to ancient times, which underscores the salience of trade policy across eras. At the same time, the book will analyze the distinctive features of modern trade politics with deepening global production networks.

      “I’m trying to allow people to learn about the history of trade politics, to show how the politics have changed over time,” Kim says. “In doing that, I’m also highlighting the importance of firm-to-firm trade and the emergence of new trade coalitions among firms in different countries and industries that are linked through the global production chain.”

      While continuing his own scholarly research, Kim still leads LobbyView, which he views both as a big data resource for any scholars interested in money in politics and an excellent teaching resource for his MIT classes, as students can tap into it for projects and papers. LobbyView contains so much data, in fact, that part of the challenge is finding ways to mine it effectively.

      “It really offers me an opportunity to work with MIT students,” Kim says of LobbyView. “What I think I can contribute is to bring those technologies to our understanding of politics. Having this unique data set can really allow students here to use technology to learn about politics, and I believe that fits the MIT identity.” More

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      3 Questions: Why cybersecurity is on the agenda for corporate boards of directors

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      Organizations of every size and in every industry are vulnerable to cybersecurity risks — a dynamic landscape of threats and vulnerabilities and a corresponding overload of possible mitigating controls. MIT Senior Lecturer Keri Pearlson, who is also the executive director of the research consortium Cybersecurity at MIT Sloan (CAMS) and an instructor for the new MIT Sloan Executive Education course Cybersecurity Governance for the Board of Directors, knows how business can get ahead of this risk. Here, she describes the current threat and explores how boards can mitigate their risk against cybercrime.

      Q: What does the current state of cyberattacks mean for businesses in 2023?

      A: Last year we were discussing how the pandemic heightened fear, uncertainty, doubt and chaos, opening new doors for malicious actors to do their cyber mischief in our organizations and our families. We saw an increase in ransomware and other cyber attacks, and we saw an increase in concern from operating executives and board of directors wondering how to keep the organization secure. Since then, we have seen a continued escalation of cyber incidents, many of which no longer make the headlines unless they are wildly unique, damaging, or different than previous incidents. For every new technology that cybersecurity professionals invent, it’s only a matter of time until malicious actors find a way around it. New leadership approaches are needed for 2023 as we move into the next phase of securing our organizations.

      In great part, this means ensuring deep cybersecurity competencies on our boards of directors. Cyber risk is so significant that a responsible board can no longer ignore it or just delegate it to risk management experts. In fact, an organization’s board of directors holds a uniquely vital role in safeguarding data and systems for the future because of their fiduciary responsibility to shareholders and their responsibility to oversee and mitigate business risk.

      As these cyber threats increase, and as companies bolster their cybersecurity budgets accordingly, the regulatory community is also advancing new requirements of companies. In March of this year, the SEC issued a proposed rule titled Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure. In it, the SEC describes its intention to require public companies to disclose whether their boards have members with cybersecurity expertise. Specifically, registrants will be required to disclose whether the entire board, a specific board member, or a board committee is responsible for the oversight of cyber risks; the processes by which the board is informed about cyber risks, and the frequency of its discussions on this topic; and whether and how the board or specified board committee considers cyber risks as part of its business strategy, risk management, and financial oversight.

      Q: How can boards help their organizations mitigate cyber risk?

      A: According to the studies I’ve conducted with my CAMS colleagues, most organizations focus on cyber protection rather than cyber resilience, and we believe that is a mistake. A company that invests only in protection is not managing the risk associated with getting up and running again in the event of a cyber incident, and they are not going to be able to respond appropriately to new regulations, either. Resiliency means having a practical plan for recovery and business continuation.

      Certainly, protection is part of the resilience equation, but if the pandemic taught us anything, it taught us that resilience is the ability to weather an attack and recover quickly with minimal impact to our operations. The ultimate goal of a cyber-resilient organization would be zero disruption from a cyber breach — no impact on operations, finances, technologies, supply chain or reputation. Board members should ask, What would it take for this to be the case? And they should ensure that executives and managers have made proper and appropriate preparations to respond and recover.

      Being a knowledgeable board member does not mean becoming a cybersecurity expert, but it does mean understanding basic concepts, risks, frameworks, and approaches. And it means having the ability to assess whether management appropriately comprehends related threats, has an appropriate cyber strategy, and can measure its effectiveness. Board members today require focused training on these critical areas to carry out their mission. Unfortunately, many enterprises fail to leverage their boards of directors in this capacity or prepare board members to actively contribute to strategy, protocols, and emergency action plans.

      Alongside my CAMS colleagues Stuart Madnick and Kevin Powers, I’m teaching a new  MIT Sloan Executive Education course, Cybersecurity Governance for the Board of Directors, designed to help organizations and their boards get up to speed. Participants will explore the board’s role in cybersecurity, as well as breach planning, response, and mitigation. And we will discuss the impact and requirements of the many new regulations coming forward, not just from the SEC, but also White House, Congress, and most states and countries around the world, which are imposing more high-level responsibilities on companies.

      Q: What are some examples of how companies, and specifically boards of directors, have successfully upped their cybersecurity game?

      A: To ensure boardroom skills reflect the patterns of the marketplace, companies such as FedEx, Hasbro, PNC, and UPS have transformed their approach to governing cyber risk, starting with board cyber expertise. In companies like these, building resiliency started with a clear plan — from the boardroom — built on business and economic analysis.

      In one company we looked at, the CEO realized his board was not well versed in the business context or financial exposure risk from a cyber attack, so he hired a third-party consulting firm to conduct a cybersecurity maturity assessment. The company CISO presented the results of the report to the enterprise risk management subcommittee, creating a productive dialogue around the business and financial impact of different investments in cybersecurity.  

      Another organization focused their board on the alignment of their cybersecurity program and operational risk. The CISO, chief risk officer, and board collaborated to understand the exposure of the organization from a risk perspective, resulting in optimizing their cyber insurance policy to mitigate the newly understood risk.

      One important takeaway from these examples is the importance of using the language of risk, resiliency, and reputation to bridge the gaps between technical cybersecurity needs and the oversight responsibilities executed by boards. Boards need to understand the financial exposure resulting from cyber risk, not just the technical components typically found in cyber presentations.

      Cyber risk is not going away. It’s escalating and becoming more sophisticated every day. Getting your board “on board” is key to meeting new guidelines, providing sufficient oversight to cybersecurity plans, and making organizations more resilient. More

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      Companies use MIT research to identify and respond to supply chain risks

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      In February 2020, MIT professor David Simchi-Levi predicted the future. In an article in Harvard Business Review, he and his colleague warned that the new coronavirus outbreak would throttle supply chains and shutter tens of thousands of businesses across North America and Europe by mid-March.

      For Simchi-Levi, who had developed new models of supply chain resiliency and advised major companies on how to best shield themselves from supply chain woes, the signs of disruption were plain to see. Two years later, the professor of engineering systems at the MIT Schwarzman College of Computing and the Department of Civil and Environmental Engineering, and director of the MIT Data Science Lab has found a “flood of interest” from companies anxious to apply his Risk Exposure Index (REI) research to identify and respond to hidden risks in their own supply chains.

      His work on “stress tests” for critical supply chains and ways to guide global supply chain recovery were included in the 2022 Economic Report of the President presented to the U.S. Congress in April.

      It is rare that data science research can influence policy at the highest levels, Simchi-Levi says, but his models reflect something that business needs now: a new world of continuing global crisis, without relying on historical precedent.

      “What the last two years showed is that you cannot plan just based on what happened last year or the last two years,” Simchi-Levi says.

      He recalled the famous quote, sometimes attributed to hockey great Wayne Gretzsky, that good players don’t skate to where the puck is, but where the puck is going to be. “We are not focusing on the state of the supply chain right now, but what may happen six weeks from now, eight weeks from now, to prepare ourselves today to prevent the problems of the future.”

      Finding hidden risks

      At the heart of REI is a mathematical model of the supply chain that focuses on potential failures at different supply chain nodes — a flood at a supplier’s factory, or a shortage of raw materials at another factory, for instance. By calculating variables such as “time-to-recover” (TTR), which measures how long it will take a particular node to be back at full function, and time-to-survive (TTS), which identifies the maximum duration that the supply chain can match supply with demand after a disruption, the model focuses on the impact of disruption on the supply chain, rather than the cause of disruption.

      Even before the pandemic, catastrophic events such as the 2010 Iceland volcanic eruption and the 2011 Tohoku earthquake and tsunami in Japan were threatening these nodes. “For many years, companies from a variety of industries focused mostly on efficiency, cutting costs as much as possible, using strategies like outsourcing and offshoring,” Simchi-Levi says. “They were very successful doing this, but it has dramatically increased their exposure to risk.”

      Using their model, Simchi-Levi and colleagues began working with Ford Motor Company in 2013 to improve the company’s supply chain resiliency. The partnership uncovered some surprising hidden risks.

      To begin with, the researchers found out that Ford’s “strategic suppliers” — the nodes of the supply chain where the company spent large amount of money each year — had only moderate exposure to risk. Instead, the biggest risk “tended to come from tiny suppliers that provide Ford with components that cost about 10 cents,” says Simchi-Levi.

      The analysis also found that risky suppliers are everywhere across the globe. “There is this idea that if you just move suppliers closer to market, to demand, to North America or to Mexico, you increase the resiliency of your supply chain. That is not supported by our data,” he says.

      Rewards of resiliency

      By creating a virtual representation, or “digital twin,” of the Ford supply chain, the researchers were able to test out strategies at each node to see what would increase supply chain resiliency. Should the company invest in more warehouses to store a key component? Should it shift production of a component to another factory?

      Companies are sometimes reluctant to invest in supply chain resiliency, Simchi-Levi says, but the analysis isn’t just about risk. “It’s also going to help you identify savings opportunities. The company may be building a lot of misplaced, costly inventory, for instance, and our method helps them to identify these inefficiencies and cut costs.”

      Since working with Ford, Simchi-Levi and colleagues have collaborated with many other companies, including a partnership with Accenture, to scale the REI technology to a variety of industries including high-tech, industrial equipment, home improvement retailers, fashion retailers, and consumer packaged goods.

      Annette Clayton, the CEO of Schneider Electric North America and previously its chief supply chain officer, has worked with Simchi-Levi for 17 years. “When I first went to work for Schneider, I asked David and his team to help us look at resiliency and inventory positioning in order to make the best cost, delivery, flexibility, and speed trade-offs for the North American supply chain,” she says. “As the pandemic unfolded, the very learnings in supply chain resiliency we had worked on before became even more important and we partnered with David and his team again,”

      “We have used TTR and TTS to determine places where we need to develop and duplicate supplier capability, from raw materials to assembled parts. We increased inventories where our time-to-recover because of extended logistics times exceeded our time-to-survive,” Clayton adds. “We have used TTR and TTS to prioritize our workload in supplier development, procurement and expanding our own manufacturing capacity.”

      The REI approach can even be applied to an entire country’s economy, as the U.N. Office for Disaster Risk Reduction has done for developing countries such as Thailand in the wake of disastrous flooding in 2011.

      Simchi-Levi and colleagues have been motivated by the pandemic to enhance the REI model with new features. “Because we have started collaborating with more companies, we have realized some interesting, company-specific business constraints,” he says, which are leading to more efficient ways of calculating hidden risk. More

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      Reducing food waste to increase access to affordable foods

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      About a third of the world’s food supply never gets eaten. That means the water, labor, energy, and fertilizer that went into growing, processing, and distributing the food is wasted.

      On the other end of the supply chain are cash-strapped consumers, who have been further distressed in recent years by factors like the Covid-19 pandemic and inflation.

      Spoiler Alert, a company founded by two MIT alumni, is helping companies bridge the gap between food waste and food insecurity with a platform connecting major food and beverage brands with discount grocers, retailers, and nonprofits. The platform helps brands discount or donate excess and short-dated inventory days, weeks, and months before it expires.

      “There is a tremendous amount of underutilized data that exists in the manufacturing and distribution space that results in good food going to waste,” says Ricky Ashenfelter MBA ’15, who co-founded the company with Emily Malina MBA ’15.

      Spoiler Alert helps brands manage distressed inventory data, create offers for potential buyers, and review and accept bids. The platform is designed to work with companies’ existing inventory and fulfillment systems, using automation and pricing intelligence to further streamline sales.

      “At a high level, we’re a waste-prevention software built for sales and supply-chain teams,” Ashenfelter says. “You can think of it as a private [business-to-business] eBay of sorts.”

      Spoiler Alert is working with global companies like Nestle, Kraft Heinz, and Danone, as well as discount grocers like the United Grocery Outlet and Misfits Market. Those brands are already using the platform to reduce food waste and get more food on people’s tables.

      “Project Drawdown [a nonprofit working on climate solutions] has identified food waste as the number one priority to address the global climate crisis, so these types of corporate initiatives can be really powerful from an environmental standpoint,” Ashenfelter says, noting the nonprofit estimates food waste accounts for 8 percent of global greenhouse gas emissions. “Contrast that with growing levels of food insecurity and folks not being able to access affordable nutrition, and you start to see how tackling supply-chain inefficiency can have a dramatic impact from both an environmental and a social lens. That’s what motivates us.”

      Untapped data for change

      Ashenfelter came to MIT’s Sloan School of Management after several years in sustainability software and management consulting within the retail and consumer products industries.

      “I was really attracted to transitioning into something much more entrepreneurial, and to leverage not only Sloan’s focus on entrepreneurship, but also the broader MIT ecosystem’s focus on technology, entrepreneurship, clean tech innovation, and other themes along that front,” he says.

      Ashenfelter met Malina at one of Sloan’s admitted students events in 2013, and the founders soon set out to use data to decrease food waste.

      “For us, the idea was clear: How do we better leverage data to manage excess and short-dated inventory?” Ashenfelter says. “How we go about that has evolved over the last six years, but it’s all rooted in solving an enormous climate problem, solving a major food insecurity problem, and from a capitalistic standpoint, helping businesses cut costs and generate revenue from otherwise wasted products.”

      The founders spent many hours in the Martin Trust Center for MIT Entrepreneurship with support from the Sloan Sustainability Initiative, and used Spoiler Alert as a case study in nearly every class they took, thinking through product development, sales, marketing, pricing, and more through their coursework.

      “We brought our idea into just about every action learning class that we could at Sloan and MIT,” Ashenfelter says.

      They also participated in the MIT $100K Entrepreneurship Competition and received support from the Venture Mentoring Service and the IDEAS Global Challenge program.

      Upon graduation, the founders initially began building a platform to facilitate donations of excess inventory, but soon learned big companies’ processes for discounting that inventory were also highly manual. Today, more than 90 percent of Spoiler Alert’s transaction volume is discounted, with the remainder donated.

      Different teams within an organization can upload excess inventory reports to Spoiler Alert’s system, eliminating the need to manually aggregate datasets and preparing what the industry refers to as “blowout lists” to sell. Spoiler Alert uses machine-learning-based tools to help both parties with pricing and negotiations to close deals more quickly.

      “Companies are taking pretty manual and slow approaches to deciding [what to do with excess inventory],” Ashenfelter says. “And when you have slow decision-making, you’re losing days or even weeks of shelf life on that product. That can be the difference between selling product versus donating, and donating versus dumping.”

      Once a deal has been made, Spoiler Alert automatically generates the forms and workflows needed by fulfillment teams to get the product out the door. The relationships companies build on the platform are also a major driver for cutting down waste.

      “We’re providing suppliers with the ability to control where their discounted and donated product ends up,” Ashenfelter says. “That’s really powerful because it allows these CPG brands to ensure that this product is, in many cases, getting to affordable nutrition outlets in underserved communities.”

      Ashenfelter says the majority of inventory goes to regional and national discount grocers, supplemented with extensive purchasing from local and nonprofit grocery chains.

      “Everything we do is oriented around helping sell as much product as possible to a reputable set of buyers at the most fair, equitable prices possible,” Ashenfelter says.

      Scaling for impact

      The pandemic has disrupted many aspects of the food supply chains. But Ashenfelter says it has also accelerated the adoption of digital solutions that can better manage such volatility.

      When Campbell began using Spoiler Alert’s system in 2019, for instance, it achieved a 36 percent increase in discount sales and a 27 percent increase in donations over the first five months.

      Ashenfelter says the results have proven that companies’ sustainability targets can go hand in hand with initiatives that boost their bottom lines. In fact, because Spoiler Alert focuses so much on the untapped revenue associated with food waste, many customers don’t even realize Spoiler Alert is a sustainability company until after they’ve signed on.

      “What’s neat about this program is that it becomes an incredibly powerful case study internally for how sustainability and operational outcomes aren’t in conflict and can drive both business results as well as overall environmental impact,” Ashenfelter says.

      Going forward, Spoiler Alert will continue building out algorithmic solutions that could further cut down on waste internationally and across a wider array of products.

      “At every step in our process, we’re collecting a tremendous amount of data in terms of what is and isn’t selling, at what price point, to which buyers, out of which geographies, and with how much remaining shelf life,” Ashenfelter explains. “We are only starting to scratch the surface in terms of bringing our recommendations engine to life for our suppliers and buyers. Ultimately our goal is to power the waste-free economy, and rooted in that is making better decisions faster, in collaboration with a growing ecosystem of supply chain partners, and with as little manual intervention as possible.” More

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      End-to-end supply chain transparency

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      For years, companies have managed their extended supply chains with intermittent audits and certifications while attempting to persuade their suppliers to adhere to certain standards and codes of conduct. But they’ve lacked the concrete data necessary to prove their supply chains were working as they should. They most likely had baseline data about their suppliers — what they bought and who they bought it from — but knew little else about the rest of the supply chain.

      With Sourcemap, companies can now trace their supply chains from raw material to finished good with certainty, keeping track of the mines and farms that produce the commodities they rely on to take their goods to market. This unprecedented level of transparency provides Sourcemap’s customers with the assurance that the entire end-to-end supply chain operates within their standards while living up to social and environmental targets.

      And they’re doing it at scale for large multinationals across the food, agricultural, automotive, tech, and apparel industries. Thanks to Sourcemap founder and CEO Leonardo Bonanni MA ’03, SM ’05, PhD ’10, companies like VF Corporation, owner of brands like Timberland, The North Face, Mars, Hershey, and Ferrero, now have enough data to confidently tell the story of how they’re sourcing their raw materials.

      “Coming from the Media Lab, we recognized early on the power of the cloud, the power of social networking-type databases and smartphone diffusion around the world,” says Bonanni of his company’s MIT roots. Rather than providing intermittent glances at the supply chain via an auditor, Sourcemap collects data continuously, in real-time, every step of the way, flagging anything that could indicate counterfeiting, adulteration, fraud, waste, or abuse.

      “We’ve taken our customers from a situation where they had very little control to a world where they have direct visibility over their entire global operations, even allowing them to see ahead of time — before a container reaches the port — whether there is any indication that there might be something wrong with it,” says Bonanni.

      The key problem Sourcemap addresses is a lack of data in companies’ supply chain management databases. According to Bonanni, most Sourcemap customers have invested millions of dollars in enterprise resource planning (ERP) databases, which provide information about internal operations and direct suppliers, but fall short when it comes to global operations, where their secondary and tertiary suppliers operate. Built on relational databases, ERP systems have been around for more than 40 years and work well for simple, static data structures. But they aren’t agile enough to handle big data and rapidly evolving, complex data structures

      Sourcemap, on the other hand, uses NoSQL (non-relational) database technology, which is more flexible, cost-efficient, and scalable. “Our platform is like a LinkedIn for the supply chain,” explains Bonanni. Customers provide information about where they buy their raw materials, the suppliers get invited to the network and provide information to validate those relationships, right down to the farms and the mines where the raw materials are extracted — which is often where the biggest risks lie.

      Initially, the entire supply chain database of a Sourcemap customer might amount to a few megabytes of spreadsheets listing their purchase orders and the names of their suppliers. Sourcemap delivers terabytes of data that paint a detailed picture of the supply chain, capturing everything, right down to the moment a farmer in West Africa delivers cocoa beans to a warehouse, onto a truck heading to a port, to a factory, all the way to the finished goods.

      “We’ve seen the amount of data collected grow by a factor of 1 million, which tells us that the world is finally ready for full visibility of supply chains,” says Bonanni. “The fact is that we’ve seen supply chain transparency go from a fringe concern to a broad-based requirement as a license to operate in most of Europe and North America,” says Bonanni.

      These days, disruptions in supply chains, combined with price volatility and new laws requiring companies to prove that the goods they import were not made illegally (such as by causing deforestation or involving forced or child labor), means that companies are often required to know where they source their raw materials from, even if they only import the materials through an intermediary.

      Sourcemap uses its full suite of tools to walk customers through a step-by-step process that maps their suppliers while measuring performance, ultimately verifying the entire supply chain and providing them with the confidence to import goods while being customs-compliant. At the end of the day, Sourcemap customers can communicate to their stakeholders and the end consumer exactly where their commodities come from while ensuring that social, environmental, and compliance standards are met.

      The company was recently named to the newest cohort of firms honored by the MIT Startup Exchange (STEX) as STEX25 startups. Bonanni is quick to point out the benefits of STEX and of MIT’s Industrial Liaison Program (ILP): “Our best feedback and our most constructive relationships have been with companies that sponsored our research early on at the Media Lab and ILP,” he says. “The innovative exchange of ideas inherent in the MIT startup ecosystem has helped to build up Sourcemap as a company and to grow supply chain transparency as a future-facing technology that more and more companies are now scrambling to adopt.” More

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      in Data Management & Statistics

      Helping companies optimize their websites and mobile apps

      by

      Creating a good customer experience increasingly means creating a good digital experience. But metrics like pageviews and clicks offer limited insight into how much customers actually like a digital product.

      That’s the problem the digital optimization company Amplitude is solving. Amplitude gives companies a clearer picture into how users interact with their digital products to help them understand exactly which features to promote or improve.

      “It’s all about using product data to drive your business,” says Amplitude CEO Spenser Skates ’10, who co-founded the company with Curtis Liu ’10 and Stanford University graduate Jeffrey Wang. “Mobile apps and websites are really complex. The average app or website will have thousands of things you can do with it. The question is how you know which of those things are driving a great user experience and which parts are really frustrating for users.”

      Amplitude’s database can gather millions of details about how users behave inside an app or website and allow customers to explore that information without needing data science degrees.

      “It provides an interface for very easy, accessible ways of looking at your data, understanding your data, and asking questions of that data,” Skates says.

      Amplitude, which recently announced it will be going public, is already helping 23 of the 100 largest companies in the U.S. Customers include media companies like NBC, tech companies like Twitter, and retail companies like Walmart.

      “Our platform helps businesses understand how people are using their apps and websites so they can create better versions of their products,” Skates says. “It’s all about creating a really compelling product.”

      Learning entrepreneurship

      The founders say their years at MIT were among the best of their lives. Skates and Liu were undergraduates from 2006 to 2010. Skates majored in biological engineering while Liu majored in mathematics and electrical engineering and computer science. The two first met as opponents in MIT’s Battlecode competition, in which students use artificial intelligence algorithms to control teams of robots that compete in a strategy game against other teams. The following year they teamed up.

      “There are a lot of parallels between what you’re trying to do in Battlecode and what you end up having to do in the early stages of a startup,” Liu says. “You have limited resources, limited time, and you’re trying to accomplish a goal. What we found is trying a lot of different things, putting our ideas out there and testing them with real data, really helped us focus on the things that actually mattered. That method of iteration and continual improvement set the foundation for how we approach building products and startups.”

      Liu and Skates next participated in the MIT $100K Entrepreneurship Competition with an idea for a cloud-based music streaming service. After graduation, Skates began working in finance and Liu got a job at Google, but they continued pursuing startup ideas on the side, including a website that let alumni see where their classmates ended up and a marketplace for finding photographers.

      A year after graduation, the founders decided to quit their jobs and work on a startup full time. Skates moved into Liu’s apartment in San Francisco, setting up a mattress on the floor, and they began working on a project that became Sonalight, a voice recognition app. As part of the project, the founders built an internal system to understand where users got stuck in the app and what features were used the most.

      Despite getting over 100,000 downloads, the founders decided Sonalight was a little too early for its time and started thinking their analytics feature could be useful to other companies. They spoke with about 30 different product teams to learn more about what companies wanted from their digital analytics. Amplitude was officially founded in 2012.

      Amplitude gathers fine details about digital product usage, parsing out individual features and actions to give customers a better view of how their products are being used. Using the data in Amplitude’s intuitive, no-code interface, customers can make strategic decisions like whether to launch a feature or change a distribution channel.

      The platform is designed to ease the bottlenecks that arise when executives, product teams, salespeople, and marketers want to answer questions about customer experience or behavior but need the data science team to crunch the numbers for them.

      “It’s a very collaborative interface to encourage customers to work together to understand how users are engaging with their apps,” Skates says.

      Amplitude’s database also uses machine learning to segment users, predict user outcomes, and uncover novel correlations. Earlier this year, the company unveiled a service called Recommend that helps companies create personalized user experiences across their entire platform in minutes. The service goes beyond demographics to personalize customer experiences based on what users have done or seen before within the product.

      “We’re very conscious on the privacy front,” Skates says. “A lot of analytics companies will resell your data to third parties or use it for advertising purposes. We don’t do any of that. We’re only here to provide product insights to our customers. We’re not using data to track you across the web. Everyone expects Netflix to use the data on what you’ve watched before to recommend what to watch next. That’s effectively what we’re helping other companies do.”

      Optimizing digital experiences

      The meditation app Calm is on a mission to help users build habits that improve their mental wellness. Using Amplitude, the company learned that users most often use the app to get better sleep and reduce stress. The insights helped Calm’s team double down on content geared toward those goals, launching “sleep stories” to help users unwind at the end of each day and adding content around anxiety relief and relaxation. Sleep stories are now Calm’s most popular type of content, and Calm has grown rapidly to millions of people around the world.

      Calm’s story shows the power of letting user behavior drive product decisions. Amplitude has also helped the online fundraising site GoFundMe increase donations by showing users more compelling campaigns and the exercise bike company Peloton realize the importance of social features like leaderboards.

      Moving forward, the founders believe Amplitude’s platform will continue helping companies adapt to an increasingly digital world in which users expect more compelling, personalized experiences.

      “If you think about the online experience for companies today compared to 10 years ago, now [digital] is the main point of contact, whether you’re a media company streaming content, a retail company, or a finance company,” Skates says. “That’s only going to continue. That’s where we’re trying to help.” More