Imperial Business | 2023

Your gif ts helpe d me realise my dreams

When MSc student Zoya moved from Pakistan during the pandemic, generous donations from Imperial supporters took away her financial worries so she could focus on her studies.

Growing up in Pakistan, it was Zoya’s dream to study at a top university in the UK. When her father passed away, her mum became a school teacher to make ends meet and support Zoya’s education. Zoya and her two siblings helped out by taking up jobs alongside their studies. Inspired by her father, who had a degree in health sciences, her ambition was to be a scientist. Her dream came true when she was admitted to Imperial to study an MSc in Advanced Chemical Engineering.

Yet when the pandemic hit, Zoya had to put her dreams on hold. When the day came to start her course at Imperial, she had to find money for the mandatory 10-day hotel quarantine – even though she had “barely saved up enough to survive”. It blew a hole in her savings before she had even started.

Your generosity changes lives

“I had days of extreme stress,” she says. “I was new in London with no contacts or friends, and I had the money shortage looming over my head.” She tried to figure out a way to get a part-time job, but it was really difficult. Zoya’s dream hung in the balance. That’s when generous donations from Imperial alumni and supporters like you made all the difference.

Thanks to your gifts, Zoya was able to access student hardship support to cover her rent and bills so she could settle into London and her new life at Imperial free from worry.

“I was very relieved,” she says. “It took a huge burden off me. I was able to give my course my full attention and explore all that Imperial has to offer.”

Opening doors to the future

Now, Zoya can focus on developing her research skills and building her knowledge, so she can change the world for the better.

“I want to assure donors to the College that the support was put to good use,” she says.

“To realise my dream is something that will always be my proudest accomplishment.”

Will you help more students like Zoya?

No one knows the life-changing impact of an Imperial education better than the College community. Your support can remove financial barriers, so that students from all backgrounds can afford to come to Imperial and excel.

If you would like to support more students like Zoya, please make a gift today using the form enclosed or online at bit.ly/ICBS-Magazine

Alumni enquiries

alumni-business@imperial.ac.uk

Editorial

Evie Burrows-Taylor

Senior Digital Communications Officer

e.burrows-taylor@imperial.ac.uk

Michael Mills

Communications Manager

michael.mills@imperial.ac.uk

Contributors

Christiane Bode, Didier Bonnet, Cláudia Custódio, Conrad

Duncan, Deborah Evanson, Jonathan Haskel, David Miles

Fran Morgan, Markus Perkmann, Helena Pozniak, Michelle Rogan, Pedro Rosa Dias, Laura Singleton, Christopher Tucci, Michael Wade, Tim Weiss

Photographers

Marcus Ginns, Joshua Khoo, Isobel Rae

Illustrators

Made Up Studio

With thanks to Isabella Clarke-Price, Alessio di Capua, Aram Karakashian, Lauren Pow

Cover

Boc Studio Design opx.studio

© Imperial College Business School 2023

The opinions expressed in Imperial Business are those of the contributors and not necessarily those of Imperial College Business School. While all reasonable efforts have been made to ensure the information in this publication is correct, matters covered by this publication are subject to change.

In this issue

14

Economic policy in a time of plague and war

Professor David Miles looks at debt, taxes and spending in the UK during an era of seismic fiscal shocks

22

The Business School launches first undergraduate degree

Dr Pedro Rosa Dias tell us about the Business School’s new BSc in Economics, Finance & Data Science

28

What climate change really means for business

Rising temperatures affect business performance and it’s vital we understand the macroeconomic impact of climate change

30

How businesses can combine profits with sustainability

Mapping out a sustainable future is crucial for all businesses. So, how can this be done without sacrificing profit?

38

Could engaging in corporate social impact work damage your career?

Corporations are increasingly offering employees the chance to engage in social impact work. But volunteering can, in some cases, limit career progression

42

Alumnus profile: Ravi Varghese

If investors want businesses to clean up their act, they need a seat at the table. That’s according to Ravi Varghese, Head of Sustainable Investing at global asset management firm Epoch Investment Partners

46

What African tech startups can teach us about digital innovation

The African tech startup landscape is undergoing radical change, but what is helping certain businesses thrive in this new environment?

The big business of analytics and operations

The Business School’s analytics and operations academics presented four papers at prestigious machine learning and AI conference NeurIPS in 2022. Here, we take a closer look at their research

Welcome from the Dean

The world faces an ever more complex set of challenges. Climate change, conflict, economic development and growing inequality, among others, require technology, policy, management and analysis, as well as financing. Universities are perfectly placed to help solve these crucial issues.

That’s why we have dedicated this issue’s cover to the theme of how Imperial College Business School, along with the rest of the Imperial community, is helping to solve the world’s greatest challenges.

On page 18, we look at how a team of Business School students, faculty and staff helped resettle Ukrainians displaced by the war; we also explore how the Business School’s new Institute for Deep Tech Entrepreneurship will help groundbreaking technologies find a pathway to market (p 54); and Professor Franklin Allen and Professor Alex Edmans reveal how businesses can pave the way towards profitable sustainability (p 30).

It’s one thing to have the drive and ambition to solve these challenges, but expertise is key.

Professor David Miles takes us through debt, taxes and spending in the UK during an era of seismic fiscal shocks (p 14); and we also explore the challenges facing developed economies in a feature on Professor Jonathan Haskel’s latest book: Restarting the Future – How to Fix the Intangible Economy (p 60).

Through our cuttingedge research, we are able to take an in-depth view of how some of the major issues are affecting the world of business.

On page 28, Dr Cláudia Custódio tells us what climate change really means for business and,

with digital transformation more important now than ever, Professor Christopher Tucci looks at how to avoid the nine digital transformation mistakes all businesses make (p 34).

We also take an indepth look at some of the research highlights from our Department of Analytics, Marketing & Operations (p 50).

The solutions to all the world’s problems are out there but, to ensure they are not lost in the mix, we need universities to play their role in helping to find the funding for critical research, as well as providing the resources for the best minds to focus on what matters.

Professor Francisco Veloso Dean, Imperial College Business School

The business news

A round-up of the top stories from across Imperial College Business School

Professor Francisco Veloso reappointed as Dean

In March 2022, Imperial College London reappointed Professor Francisco Veloso as Dean of the Business School. An internationally renowned authority in entrepreneurship and innovation, Professor Veloso joined Imperial in 2017, having previously been Dean of the Católica Lisbon School of Business & Economics in Portugal.

During his time as Dean of the Business School, Professor Veloso has led the development of an ambitious 10-year strategy to bolster

Imperial’s position as a prominent global business school. Key strategic priorities include sustainability and social responsibility, entrepreneurship, digital transformation, health innovation and future finance.

Reacting to the news, Professor Veloso said: “I am delighted with the reappointment decision and would like to thank everyone in the Business School and across the Imperial community for all we have accomplished together and the tremendous support

that I have felt over the past five years. I am very excited by the momentum and great initiatives of the School and look forward to continuing to work alongside wonderful colleagues to establish an even greater Business School.”

Professor Veloso will serve for a further five years, until 31 May 2027.

Imperial welcomes its new president

Professor Hugh Brady, a renowned medic and university leader, has joined Imperial College London as President after spending seven years as Vice-Chancellor and President of the University of Bristol. He formerly served as the youngest ever president of University College Dublin (UCD), Ireland’s largest researchintensive university. His academic career also included roles at Harvard Medical School, the University of Toronto and UCD. An international authority on the pathogenesis of renal inflammation and diabetic kidney disease, Professor

Brady is the first medic to lead Imperial. He succeeds Professor Alice Gast, who led Imperial from 2014 to 2022.

Professor Brady said: “I have long admired Imperial, going back to a Medical School elective, and it is clear from its recent accolades and achievements that the College is going from strength to strength. This success is a testament to the spirit of community, collaboration and innovation that runs through everything Imperial does.

“Few organisations have the talent, connections and global reach of Imperial.

We have an important contribution to make to society, and that is at the forefront of my mind as I take up this role.”

He added: “The Business School is a really good example of being absolutely world class in terms of the nuts and bolts of finance and marketing and leadership: the standard courses that any business school should offer. But what

really excites me is the way they’re engaging with the world of climate change, the world of green technologies, the world of biotechnologies, and harnessing what other areas of Imperial have to offer.”

“This success is a testament to the spirit of community, collaboration and innovation that runs through everything Imperial does.”

Imperial research is best in the UK, finds REF 2021

Imperial College

London has a greater proportion of worldleading research than any other UK university, according to the Research Excellence Framework (REF) 2021. The results, published in 2022, confirm Imperial’s status as a world-class research university.

Professor David Miles becomes top forecaster at UK fiscal watchdog

environment and first for research impact among Russell Group universities.

The College ranked top in the UK overall – with a greater proportion of 4* “world-leading” research than any other UK university. Imperial ranked first in the UK for research outputs, first in the UK for research

This success was reflected in the Business School: 97 per cent of the School’s research assessed by peer review in the REF was classed as “world-leading” (4*) or “internationally excellent” (3*), and 70 per cent of our research as 4*. The School was second in the UK for proportion of world-leading research in business and management studies and first for research environment. This was a rise of three places on the 2014 assessment, reflecting the exceptional quality of the School’s academics and their work, and confirming its position as a leading business school for research in the UK and internationally.

Data Spark Director Dr Susan Mulcahy appointed to UK’s new Digital Skills Council

David Miles, Professor of Financial Economics, has been appointed to one of the most influential roles in UK economic policy: the economic expert of the three-person Budget Responsibility Committee (BRC). The BRC was established by Act of Parliament to provide independent and authoritative analysis of the UK fiscal position; it heads up the Office for Budget Responsibility (OBR) and has the task of assessing and reporting the sustainability of the UK’s public finances to Parliament. Then-Chancellor of the Exchequer Rishi Sunak, who nominated Professor Miles, said: “I am delighted to nominate Professor David Miles for appointment to the OBR’s Budget Responsibility

Committee – a role that is a vital part of our commitment to strong public finances as we rebuild from the pandemic. A highly respected economist, Professor Miles brings a variety of academic and professional expertise which will only strengthen the existing independent and authoritative analysis of the OBR.”

Professor Miles served on the Bank of England’s Monetary Policy Committee from 2009 until 2015 and in 2016 was made a CBE for his services to monetary policy. He continues his research and teaching at Imperial College Business School alongside his new position.

You can read more about Professor David Miles’ work on page 14.

Dr Susan Mulcahy, Director of Imperial College Business School’s Data Spark programme, has been appointed to the UK’s new Digital Skills Council. Part of the UK Government’s new Digital Strategy, the expert council will bring together leaders in the technology sector to bridge the digital skills gap “at all levels of society” and help make the

UK a “global tech superpower”.

Dr Mulcahy, who was Senior Education Fellow of Imperial’s Data Science Institute before going on to head up the Business School’s Data Spark programme, will be joined by fellow experts from prominent organisations such as Starling Bank, Amazon Web Services and the Royal Academy of Engineering.

“97% of the School’s research assessed was classed as world-leading or internationally excellent.”

Imperial College Business School has launched the UK’s first degree to allow students to study economics and finance combined with data science.

The new BSc in Economics, Finance & Data Science will launch in October

2023. The first undergraduate degree of its kind, it offers a new approach to leadership and aims to prepare the next generation of economists, policy experts and business leaders. It has been designed by leading

academics at the forefront of economics, finance and data science, with input from industry and public policy leaders.

Leila Guerra, ViceDean (Education) at Imperial College Business School, said: “Education will be a crucial tool when it comes to addressing global disruption. Today’s university students will be the thought leaders tackling the world’s greatest challenges – and it is the role of educators and universities to ensure they are prepared.

“This degree draws on Imperial’s worldrenowned expertise across the fields of science, technology and business, and demonstrates its commitment to helping the next generation shape the debates that define our society. Graduates of the BSc in Economics, Finance & Data Science will be ideally positioned to make an impact in the digital era.”

You can read more about the BSc Economics, Finance & Data Science on page 22.

Prime Minister of Slovakia meets student tech entrepreneurs

The Prime Minister of Slovakia, Eduard Heger, met Imperial students to discuss entrepreneurship, technology and innovation in March 2022. The Prime Minister joined a

session with students, alumni, industry professionals and tech entrepreneurs to hear about their innovative ideas, the lessons they have learned from studying in London, and how

they could help drive the technology sector in Slovakia.

Speaking to the students, Prime Minister Heger said: “The first way to success for a country is investment into education. We can’t do anything else if we don’t invest in education, otherwise success will be

smaller and slower, and we won’t reach the potential that we have. That’s why in the recovery plan that we developed, we chose two priorities for ourselves: education and health, because we want healthy people and we want smart people.”

Professor Francisco Veloso, Dean of Imperial College Business School, and Leila Guerra, ViceDean (Education) at the Business School, hosted the Prime Minister, who was joined by the Slovakian Ambassador to the UK, Robert Ondrejcsak. The event was organised by Imperial’s Czech & Slovak Society.

New degree in economics, finance and data science is first of its kind in the UK

“Education will be a crucial tool when it comes to addressing global disruption.”

Carol Propper Dame.

Professor.

Health economist.

Written by Evie Burrows-Taylor

In brief

Made a dame in recognition of her public services to health and economics in 2021

Former president of the Royal Economic Society

Member of President Emmanuel Macron’s expert commission

Research Associate at the Institute for Fiscal Studies

niversal, equitable, comprehensive, high quality, free at the point of delivery and centrally funded – these were the founding principles of the UK’s National Health Service (NHS) when it was created in 1948. But today the institution, besieged by financial woes, is facing yet another series of crises, as well as growing public outcry over the quality of its services.

Dame Carol Propper is Professor of Economics at Imperial College Business School and a research associate at the Institute for Fiscal Studies. Using the NHS as her “laboratory”, the former president of the Royal Economic Society’s focus has been the impact of competition in healthcare, the impact of incentives on the quality of healthcare delivery and health system productivity, and the interaction between the state and private markets. As a member of French President Emmanuel Macron’s expert

Solving the nursing problem

After years of researching choice and competition in the healthcare sector, Professor Propper has more recently been focusing on the “nuts and bolts of the production of healthcare”. Using her access to NHS data, she is working with several experts, including colleagues at the Institute for Fiscal Studies, to research nursing teams.

“The NHS went into the pandemic already short of about 50,000 nurses and, with global competition, it’s important to solve this shortage and keep nurses in post,” she says. “We’re looking at a very extreme situation – whether a patient has died – and we’re asking if it matters if you’re missing a nurse. And, if so, does it matter if you’re missing a senior nurse, a qualified nurse, an agency nurse or a healthcare assistant?”

Among their findings so far, they have discovered the most important nurses in the prevention of patient deaths are the senior ones.

a lot of different pressures at the same time – all of which demand more money.

“We’ve seen senior staff choosing to take early retirement, the doctors’ pension furore, which some have argued is causing people to leave the NHS prematurely, and the GP shortage, meaning lots of people are unable to get appointments. The huge rise in energy prices is also putting further pressures on NHS budgets.”

Additionally, the increase in waiting times has led to a huge shift in the number of people opting to use private healthcare, with fears this could lead to “a two-tier system”.

Professor Propper believes this is likely to lead to a review of how the NHS is financed, looking into European healthcare models based on social insurance.

commission, she investigated three of the biggest long-term challenges facing the world’s economies: inequality, climate change and demography, including the problems associated with an ageing population.

“The policy implication of this is that you shouldn’t keep trying to fill vacant nursing posts by substituting them for less qualified people. Secondly, you should be trying to retain the nurses you already have because there’s a clear return to both seniority and familiarity with the hospital.”

Rise in private healthcare

When it comes to the NHS in the post-COVID landscape, Professor Propper highlights the fact the institution is “facing

“Social insurance is not very different from tax financing because, where these systems exist in Europe, individuals with lower incomes tend not to have to pay anything while individuals who are on higher incomes generally share the insurance costs with the state.”

With so many problems plaguing the NHS at once, some have dubbed this a “make or break” moment for UK healthcare but Professor Propper isn’t convinced.

“The NHS has been through many crises since 1948 and each time we’ve successfully managed them – and that’s with one of the lowest levels of funding of any wealthy European country.”

Professor Dame Carol Propper tells us about her research into the UK’s nursing problem and explores some of the issues plaguing the NHS

“The NHS has been through many crises since 1948 and each time we’ve successfully managed them.”

Economic policy in a time of plague and war

Professor David Miles looks at debt, taxes and spending in the UK during an era of seismic fiscal shocks

Written by Professor David Miles

t the end of 2021, I was asked to take the lead on economic research at the Office for Budget Responsibility (OBR). That is the independent organisation that makes assessments of the economic and fiscal outlook, which the UK Government uses to inform its tax, spending and borrowing policies. I took up this role at a time when the UK’s fiscal situation was unusually challenging.

Over the past 15 years, the UK economy has been hit by three exceptional shocks in quick succession: the 2008 global financial crisis, the COVID pandemic and war in Europe. As a result, UK Government debt is now far higher than anyone expected.

Until very recently, remarkably cheap borrowing enabled the government to fund the debt and run large deficits in part to help households deal with massive economic disruption. This was very effective during COVID: by the end of 2022, GDP was close to its pre-crisis level and unemployment was actually lower.

Nonetheless, the situation is fragile, with government debt much higher now at around 100 per cent of annual GDP and interest rates on that debt far above levels over any period since the start of the global financial crisis back in autumn 2008. Recent data suggest growth is slowing, in part because incomes are being hit by energy prices. So, what are our economic prospects?

The long-term view

Here, it can be comforting to take the longer view. Historically, we have been far deeper in debt and seen no defaults. Conflicts have seen the fastest growth of debt, with the world wars bringing UK Government debt to a peak of around 270 per cent of GDP by the late 1940s. However, debt fell sharply in the wake of these wars to around 50 per cent of GDP, thanks to dramatic cuts in military spending, stronger tax revenues as the economy recovered and bursts of inflation. But today, much of UK debt and government spending is index-linked (automatically linked to price rises) and won’t be eaten away by inflation. Much of our debt is linked to short-term interest rates, and these look set to rise even further. So, how do we get out of this?

Part of the answer is that taxes have increased. The OBR’s recent central estimate is that the fiscal deficit and debt relative to GDP are likely to fall back – but that is still some way off, with debt relative to GDP only marginally falling some five years ahead. And risks are substantial in the longer term.

The risks

Interest rates have been at exceptionally low levels and are now rising, increasing the cost of government debt. If the conflict in Ukraine drags on, the UK may spend more on defence. The UK population will continue to age, meaning health costs will rise. Although, on a more positive note, lower population growth may also stop house prices rising so fast and environmental problems would be eased with a smaller population. But there is also the potential problem of unrealistic expectations. An enormous increase in public spending during the pandemic,

which helped shelter households from the worst economic impacts of COVID, may have led to heightened expectations about the government’s ability to spare us from the effects of bad economic shocks.

This response, which saw public borrowing reach levels of 17 per cent of GDP during 2020–21, is possible as a one-off, but not as an ongoing policy. The fiscal position in the UK – and nearly all high-income economies – is far worse than could have been imagined just over a decade ago. This means governments face tougher constraints, and realism is essential if good decisions are to be made.

David Miles is Professor of Financial Economics at Imperial College Business School and a member of the Office for Budget Responsibility’s Budget Responsibility Committee. He has undergraduate and Master’s degrees from the University of Oxford and a PhD from the University of London.

About the author

“Over the past 15 years, the UK economy has been hit by three exceptional shocks in quick succession.”

Ukraine: How to help in a crisis

Russia’s invasion of Ukraine marked the beginning of a new refugee crisis in Europe. In response, a team of students, faculty and staff from Imperial College Business School worked with the French charity Solidarité Ukraine on a playbook to help community efforts to resettle Ukrainians displaced by the war.

The charity is led by Imperial College Business School Advisory Board and Imperial Council member Mary Meaney, who has been at the forefront of efforts to support Ukrainians in Saint-Omer, northern France, where she lives. Since March 2022, Solidarité Ukraine has worked with the community to welcome hundreds of Ukrainian women and children, and has found solutions to house, feed, clothe and care for them all.

Written by Laura Singleton

1 (L–R) Ukrainian refugees

Tetiana Ponomar and Yulia Ostrovska stand with Mary Meaney and four children at her farm in northern France

2 The castle at SaintOmer seen through the treetops

3 A child’s drawing is seen in a community room for Ukrainian refugees at a farm in northern France

4 Yulia Ostrovksa and daughter Veronika

5 Some Ukrainians live on a farm in the castle grounds, which lies on the edge of a protected nature reserve

6 Former Ukrainian Olympic rower Tatyana Kolesnikova with her daughter at an amusement park in northern France

1–5 Credit Thomson Reuters Foundation/ Emma Batha

6 Credit Thomson Reuters Foundation/ Tatyana Kolesnikova

Success in Saint-Omer

Working with the other members of the Business School team, Mary helped to create the guide after leading the local effort, which included hundreds of volunteers; she provided shelter for scores of displaced Ukrainian people, including 11 orphaned children, in her own home.

The guide has been written to help other communities replicate the success seen in SaintOmer, where all the Ukrainian children of primary and secondary school age have been placed in French schools. Meanwhile, teenagers and adults attend French classes offered in person four days a week, as well as additional online classes.

On arrival, every Ukrainian underwent a comprehensive medical check-up, including a status check on vaccinations, chronic conditions and psychological state, and has had access to medical care. The team in Saint-Omer also has 60 Russian- and Ukrainianspeaking psychologists providing mental health support.

Additionally, volunteers worked to submit the documents necessary for the Ukrainian families to receive their protected status and a new bus stop was set up in front of the Ukrainian welcome centre with free transport for all Ukrainians. The community also organised an array of activities including art classes and sports competitions. Imperial students recently visited France to help Ukrainians create their CVs and, as a result, many have already found jobs.

Welcoming displaced people

The guide – Solidarity Ukraine: A Guide to Welcoming Ukrainian Displaced People – provides practical advice on how community leaders can best manage the arrival and resettlement of Ukrainian people.

Celia Moore, Professor of Organisational Behaviour at Imperial College Business School and Co-Director of the Centre for Responsible Leadership, was one of those who worked on the guide with Mary. They were joined by a team of Imperial students including Marina Moncayola Lobato, Sneha Kuruvilla, Karina Penska and Karolina Kaczmarek.

“Mary’s leadership and dedication throughout this crisis has been inspiring, and I applaud her for spearheading the creation of this important guide,” says Professor Moore. “I worked alongside three incredible Ukrainian students from the Business School to codify and organise what the group in Saint-Omer has learned.”

The guide offers a range of training materials for those interested in mobilising their communities to support Ukrainian women and children, with key areas including the organisation of transport of displaced Ukrainian people and preparing the French host families for their arrival.

It also contains details of how to match and host Ukrainian families and support people who are suffering from trauma, as well as the practicalities of making sure refugees are provided with essentials, such as toiletries and computer access.

In 2022, Imperial launched the Sanctuary Support Fund, a new scholarship fund, to support students from displaced communities such as asylum seekers and refugees.

You can find out more at imprl.biz/Sanctuary

“Solidarité Ukraine has worked with the community to welcome hundreds of Ukrainian women and children.”

The Business School launches first undergraduate degree as it celebrates 20 years

Undergraduate Programme Director

Pedro

Rosa Dias

on Imperial College Business School’s first dedicated programme for undergraduates

In 2022, Imperial College Business School marked an important milestone, launching its first dedicated undergraduate programme. The BSc Economics, Finance & Data Science will be offered from October 2023.

Drawing on Imperial’s worldrenowned expertise in science, technology and business, the new degree is well timed; there is a growing demand for graduates with academic training in economics and finance, whose analytical skills are complemented by data science and coding capabilities.

Chief Economist at the UK’s Competition & Markets Authority Dr Mike Walker describes the new programme as an “innovative marriage”, with graduates benefiting from proficiency across several disciplines.

“We currently have about 110 economists at the Competition & Markets Authority, and about 40 data scientists. However, we have relatively few who are very proficient in both disciplines, which is a real shame.”

Collaborative innovation

The Business School’s academic experts along with industry leaders, Imperial alumni, and leading business and public policy experts have spent two years collaborating to create a highly innovative programme.

In contrast to other joint degrees, the BSc Economics, Finance & Data Science integrates all three areas of learning. Students will learn to program from the day they arrive, incorporating data science into economics and finance applications.

Additionally, Associate Professor of Design & Innovation Dr Ileana Stigliani has designed a set of three modules aimed at enhancing personal development by fostering creativity, empathy and emotional intelligence.

Designed for diverse students with enquiring minds and skilled in quantitative research, the programme spans all four Business School departments: Economics & Public Policy, Finance, Management & Entrepreneurship, and Analytics, Marketing & Operations.

A bright future

Given the programme’s academic rigour and endorsement by industry leaders, graduates of the BSc Economics, Finance & Data Science programme can expect rich employment opportunities.

The programme will pave the way to a broad range of careers in a variety of sectors, such as technology, finance, consulting and the public sector. Additionally, graduates will find roles at central banks, regulatory bodies, think tanks and international organisations.

“By unlocking the power of data and combining it with cutting edge economics and finance, the programme is an ideal foundation for a career in tech,” says Cindy Rose, President of Microsoft Western Europe and Business School Advisory Board member.

The programme has been similarly endorsed by Dr Andrew Benito, Chief European Economist at Eisler Capital, who says: “Increasingly, a successful analytical career in finance requires knowing how to select, apply and combine the right frameworks from economics, finance and data science. The Imperial BSc recognises this fully. I can’t think of a better foundation for a career in finance.”

No matter the sector, graduates of the BSc in Economics, Finance & Data Science will be equipped to make an impact in the digital era. They will also join the growing Business School graduate network made up of over 20,000 alumni from over 100 countries. My team and I are very much looking forward to welcoming the inaugural cohort of students in 2023.

You can find out more at imprl.biz/Undergraduates

About the author

Written by Pedro Rosa Dias

“Graduates of the BSc in Economics, Finance & Data Science will be equipped to make an impact in the digital era.”

Pedro Rosa Dias is Director of Undergraduate Studies and Associate Professor of Health Economics. His work focuses on health economics in developing countries, inequalities in health and healthcare, and the effects of educational policy on health outcomes.

Dr Ying-Ying Hsieh

In brief

Assistant Professor of Innovation & Entrepreneurship at the Business School since 2018

Associate Centre Director of Imperial’s Centre for Cryptocurrency Research & Engineering

Winner of two Business School Teaching Excellence Awards

Research Fellow at the Scotiabank Digital Banking Lab at Ivey Business School

Written by Evie Burrows-Taylor

espite its erratic nature, the cryptocurrency market continues to be a source of fascination for investors and the public alike.

When Dr Ying-Ying Hsieh, Assistant Professor of Innovation & Entrepreneurship at Imperial College Business School, first came across cryptocurrency in 2014, she was similarly fascinated. At that time, the industry was still in its infancy and most people hadn’t heard of bitcoin.

Dr Ying-Ying Hsieh tells us about her fascination with blockchain and what the future holds for digital money D

“The engineer in me wanted to truly understand what it is, what’s unique about it, and when I figured it out, I decided to study the phenomenon, no matter what,” she says.

Dr Hsieh, also the Associate Centre Director of the Centre for Cryptocurrency Research & Engineering at Imperial College London, focuses her research on the structure of blockchain, the technology that supports cryptocurrency transactions.

Regulating digital money

The value of cryptocurrency lies in its function as a way to move money online, but perhaps the reason it has such a devoted following is the ideological and political possibilities it presents.

“The purpose of creating digital cash is to take back control of our money and to be our own bank,” says Dr Hsieh. “It isn’t sponsored by any corporation, there are no managers, no CEOs, no employees to manage all the transactions in the sense of traditional companies.

“This decentralisation can hopefully help us achieve the idea of the democratisation of money, finance and ownership.”

But in addition to these possibilities, cryptocurrency also poses a dilemma for financial regulators: how to avoid killing the innovation prematurely and, at the same time, protect investors and consumers.

“Regulators, such as the FCC (Federal Communications Commission) in the US, are experimenting with different ideas and trying to see to what extent we have to reinvent the wheel. It isn’t possible to apply the existing regulatory framework to the new system because there are many unique features [to cryptocurrency],” says Dr Hsieh, adding that, despite these difficulties, cryptocurrencies aren’t going anywhere.

“Today, we are quite sure that cryptocurrency is not going away, so regulations become necessary if organisations want to adopt this technology.”

The future of cryptocurrency

Dr Hsieh’s current research focus is blockchain platforms and how they can perform effectively without the usual managerial hierarchies and authorities. Having initially investigated the structure of cryptocurrencies, she is now focusing on the infrastructure that needs to be in place in order for them to work well.

Beyond her work at Imperial, Dr Hsieh is keen to share her research, its relevance and potential impact, with other experts in the sector. In July 2022, she took part in a Chatham House event where experts explored what the future holds for cryptocurrencies in a turbulent time for digital finance.

She is also passionate about educating the next generation of innovators and has won two Teaching Excellence Awards, which are nominated and voted for by students.

“For me, teaching informs research and vice versa. The most rewarding part of teaching is when my students tell me my teaching has motivated them to pursue a particular career or educational path.”

Being an academic has allowed Dr Hsieh to fulfill her intellectual curiosity, as well as the opportunity to have a positive impact on the world.

“I am able to ask interesting questions, discover the answers and hopefully my research and my teaching will influence managerial decisions or policymaking for the greater good.”

Image credit: Chatham House

“Decentralisation can hopefully help us achieve the idea of the democratisation of money, finance and ownership.”

WHAT CLIMATE CHANGE REALLY MEANS FOR BUSINESSES

Written by Dr Cláudia Custódio

Rising temperatures affect business performance; it’s vital we understand the macroeconomic impact of climate change

We already know vulnerable sectors such as agriculture will take a hit from climate change. Severe weather – flooding, storms, heatwaves and fires –damages supply chains and disrupts business.

There’s also evidence some retailers benefit from climate change as demand for air conditioning, bottled water and electricity rises.

But beyond these obvious impacts, is there a direct effect of global warming on business performance? And can we separate demanddriven effects from supply-side effects?

We looked at sales by firms across the US and how they fare when temperatures rise. Specifically, we compared what happens when temperatures rise for some but not all suppliers of the same client. This way we were able to consider fluctuations in consumer demand for a finished product – if, for example, appetite for ice cream increases but demand for chocolate declines as temperatures rise.

As we suspected, a local rise in temperature leads to a drop in suppliers’ sales. Specifically, a local temperature rise of one degree Celsius leads to a two per cent fall in sales to a client over the course of a year. And the data show suppliers of the same client from regions less affected by warmer climes don’t experience the same drop. So, what’s going on?

Rising temperatures and falling sales

There are three main factors that can have a negative impact on business. If it’s too hot, then staff productivity declines – employees are absent or working conditions are more difficult –particularly within heat-sensitive industries, such as manufacturing.

We also suspected a company’s finances play a part: deep coffers might allow larger companies to relocate or divert resources to different branches, whereas cash-strapped businesses don’t have that option.

And then there is the ease with which a client could buy the same thing elsewhere: the more

standardised the product, the easier it is to switch supplier. Clients do this if production is affected, or even if they just suspect it will be.

One might deduce that falls in sales will follow in proportion with rising temperatures: a rise of two degrees Celsius in temperatures leads to a four per cent fall in sales and so on. But as temperatures rise, the meteorological effects can be more severe and unpredictable, leading to greater disruption.

Extending our understanding

It’s vital we understand the impact of the inevitable rise in temperatures. Policymakers need to know what climate change means at a macroeconomic level – specifically, how the revenues of firms will be affected. At a company level, wages might be affected and some companies in highly competitive sectors may even go under because of hotter climes. But if policymakers understand how and when to intervene – when to extend finance or to help improve working conditions –we’ll be better prepared to deal with the fallout.

About the author

Dr Cláudia Custódio is Associate Professor of Finance at Imperial College Business School. She holds a PhD from the London School of Economics, and has extensive professional experience in the US and Portugal.

“A local temperature rise of one degree Celsius leads to a two per cent fall in sales to a client over the course of a year.”

How businesses can combine profits with sustainability

Mapping out a sustainable future is crucial for all businesses. But it isn’t always clear how to do this without sacrificing profit

he Business School’s Professor

of Finance & Economics Franklin

Allen and London Business School’s Professor of Finance Alex Edmans explore how businesses can achieve effective sustainability.

Written by Evie Burrows-Taylor

In 2022, Imperial College Business School’s Brevan Howard Centre hosted the launch of Professor Alex Edmans’ book, Grow the Pie: How Great Companies Deliver Both Purpose and Profit Professor Franklin Allen, Executive Director of the Brevan Howard Centre, sat down with Professor Edmans to discuss how businesses can work towards sustainable models and be profitable at the same time.

What advice would you offer to business leaders who are struggling to combine profit and purpose?

AE People tend to think that the value a business creates is a fixed pie and anything that you give to society is at the expense of profit. But what I’d like to make clear is that purpose and profit are intertwined.

The goal of academic research is to show that win-wins, which might sound like wishful thinking, are possible. However, it is important that business leaders are discerning: there are certain moves that pay off in terms of long-term profitability, but not all do.

How damaging is greenwashing to the wider sustainability message, and what can be done to limit its impact?

AE Greenwashing is damaging in many ways. It means that companies can say they’re taking action without putting it into practice, leading to a big backlash against sustainability in general. To limit its impact, investors and the media should focus on actual outcomes, and not be swayed by promises and slogans.

FA Greenwashing is down to a problem with the way green bonds are structured. Somebody must certify that green bonds are being used to support specific climate-related or environmental projects. However, there’s a big issue around what counts as green, as well as whether the company uses the bonds to work on these projects after they’ve been certified.

But there’s another way: contingent green bonds make the pay off on the bonds contingent on acting to improve climate change. This is a technical solution to the problem of greenwashing that hasn’t been widely publicised.

Which companies have a successful, sustainable business model?

AE When Paul Polman took over Unilever, he said the company would ensure it was a sustainable business, and its purpose was to make sustainable living commonplace. People were sceptical, but when Unilever showed that the sustainable living brands were growing faster than the other brands, this highlighted the business case for purpose.

How optimistic do you feel about society’s ability to change business for the better?

AE I’m moderately optimistic. This is now a major issue that interests people across business who realise that, in today’s world, you need to think about purpose. I think we need regulation, carbon taxes, action from companies themselves and employees, but we need to work together, rather than say it’s entirely down to companies or regulators.

FA I’m somewhat more optimistic than Alex. One of things that has surprised me most is the extent of ESG financing mandates. In Europe, I have heard the statistic that 75 per cent of investment mandates have an ESG component; in the US it’s less but growing fast. That’s an example of people wanting to do the right thing, and I think that’s potentially extremely powerful.

“The goal of academic research is to show that win-wins, which might sound like wishful thinking, are possible.”

Franklin Allen is Professor of Finance & Economics, ViceDean of Research & Faculty, and Executive Director of the Brevan Howard Centre at Imperial College Business School.

About Imperial Business 33

9 digital transformation mistakes all organisations make and how to avoid them

Three experts reveal how you can avoid the digital transformation mistakes your competitors are all making

Written by Christopher Tucci,

When it comes to digital transformation, we tend to focus on the success stories. But 87 per cent of digital transformations fail to meet expectations, and that’s usually down to a series of common mistakes.

Imperial College Business School’s

Christopher Tucci, Professor of Digital Strategy & Innovation, IMD Business School’s Didier Bonnet, Professor of Strategy & Digital Transformation, and Michael Wade, Professor of Innovation & Strategy told us what those mistakes are, so you can avoid making them too.

Focusing on digital for the sake of digital

One of the first hurdles when it comes to a successful digital transformation is coming up with a clear reason for doing it.

Many people think embracing digital means making big investments in technology without having any idea how it should be used. If you don’t have a set of well-articulated objectives, you’ll have no way of monetising it.

Focusing on strategy and planning rather than vision and agility

Many companies put their faith in plans that quickly become obsolete –how many organisations could have predicted the pandemic? While the effectiveness of strategic planning has fallen, vision and agility remain crucial.

To avoid being locked into outdated plans, have a clear vision, carry out a series of small experiments in that direction and move forward with the changes that work.

Christopher Tucci is Professor of Digital Strategy & Innovation at Imperial College Business School and Academic Director of the School’s Centre for Digital Transformation.

Michael Wade is Professor of Innovation & Strategy at IMD Business School and holds the Cisco Chair in Digital Business Transformation.

Didier Bonnet is Professor of Strategy & Digital Transformation at IMD Business School and a globally recognised thought leader on digital transformation.

About the authors

Didier Bonnet and Michael Wade

Focusing on disruptors rather than disruption

Business leaders often become obsessed with companies that have disrupted a sector rather than the disruption itself. This is a distraction that stops organisations coming up with their own new ideas.

Not focusing on cultural transformation

New technology and digital capabilities are going to be adopted by people within the organisation, so leaders must build a culture of experimentation. It’s also important to address employee fears, such as being made redundant, head on.

Taking radical steps before the company is ready

Thinking big about digital transformation is a good thing, but don’t put the cart before the horse. Digitalising and modernising your existing processes and operations is a good start and will provide shorter-term return.

Setting up the digital team to fail

Digital skills are essential for any modern company, but the digital transformation team should be appropriately resourced, and always report to senior leaders. If nobody cares about them and they have no power, they’ll be ineffective and a waste of money.

Underinvesting in digital capability

Digital products and services are not enough on their own; organisations need to be able to deliver them at scale. Think early about the digital skills you need to acquire, as well as how you will upskill your existing employees.

Not focusing enough on corporate digital responsibility

Recently, significant questions have been raised about the impact of digital technologies on social, economic and environmental welfare. These questions need to be acknowledged and addressed within any digital transformation.

Managing digital in an “ivory tower”

If you keep your digital team separate from the rest of the organisation, it will make it very difficult for them to come up with interesting ideas because they won’t understand the products, services or the business model.

In conclusion

Business leaders must create a learning culture orientated towards experimentation. Find out what works before scaling up, and manage the people issues and digital skills gaps while creating your digital portfolio.

Corporations are increasingly offering employees the chance to engage in social impact work. But is doing social good also good for your career?

COULD ENGAGING IN CORPORATE SOCIAL IMPACT WORK DAMAGE YOUR CAREER?

These days, many people are looking for more from their professional roles than the duties listed in their job description; they expect their employers to provide them with the opportunity to explore meaningful work beyond the corporate world. Companies that meet these expectations have a lot to gain. Studies show they benefit from improved recruitment, employee retention and mitigation against adverse employee behaviour. However, it does not necessarily translate that those who volunteer benefit in terms of career advancement. In fact, in some cases, it can hold them back.

We carried out two studies that revealed some of the reasons for this unexpected consequence of corporate social initiatives (CSI). For the first, we used human resource data on around 1,300 employees in a large multinational consulting firm to observe employees’ project assignments, including their participation in social impact initiatives and, crucially, the rate of promotion from the rank of consultant to manager over a five-year period.

In the second, we asked nearly 900 middle managers across different companies in the UK and US to evaluate a fictional accountancy employee up for promotion. The managers, a mix of men and women, were all experienced in hiring and promoting. Everything about the fictional employee profiles was identical except gender and job history. The fictional employee named Amanda or Matthew had either undertaken a spell of social impact work or completed a commercial project for a corporate client.

Written by Michelle Rogan and Christiane Bode

Gender as a key factor in promotion

Together, the results of the studies revealed a critical factor affecting decision makers’ judgements regarding promotions of employees who participated in social impact work: gender. But in a different way than is usually observed in studies of gender bias in organisations.

Our first study showed male employees who took on CSI projects were less likely to be promoted. In our second study, we discovered that the gender of the manager making the decision also mattered. Male managers penalised male employees more than females for undertaking CSI projects, rather than profitable corporate work, and were far less likely to recommend them for promotion. But when a male manager assessed a female employee, she was not penalised in the same way. Nor did female managers discriminate in any way towards either men or women.

We also investigated why, with our experiment revealing male managers judged men who carried out social impact work as not being the right “fit” for the company. This reinforces research that shows we expect men and women to conform to strict gender stereotypes in the professional environment. Unfortunately, for men, it may be career damaging to take part in socially motivated work.

Gender stereotyping in the workplace

Over recent years, corporate social initiatives have acquired strategic business importance and numbers have soared. But our research calls attention to the gendered nature of CSI work and the potential for negative career consequences for those who in engage in it, as well as the evaluators’ gender bias in promotion decisions. It also reveals a previously unidentified tension between business and society. A firm’s efforts to engage with society through employee initiatives may conflict with its members’ gender beliefs, consequently limiting male employees’ ability to contribute to the firm’s social impact agenda. It may also signal a new form of job segregation by gender that is harmful to female employees. If only female employees fill these types of roles, a firm’s social engagement risks becoming only women’s work.

One worry is that these socially orientated positions may be viewed as less valuable than commercial ones, meaning women may inadvertently assume roles that have poorer longer-term career prospects, even though their near-term promotions remain unaffected. For social impact work to deliver benefits, attitudes within the corporate world must change and gender beliefs be updated. This is a challenge not only for business but for all of society.

About the authors Michelle Rogan is Associate Professor of Strategy & Entrepreneurship and the Academic Director of the MSc in Innovation, Entrepreneurship & Management at Imperial College Business School.

Christiane Bode is Assistant Professor of Strategy at Imperial College Business School. Her research focuses on the micro-processes underlying the corporate social engagement of firms.

“Attitudes within the corporate world must change and gender beliefs be updated.”

Ravi Varghese

MSc graduate. Investor. Sustainability advocate.

After seven years as an investment analyst, Ravi Varghese followed his interest in climate change by taking a role with Ceres, a sustainability organisation based in Boston. But he missed the cut and thrust of investment and went on to complete an MSc in Climate Change, Management & Finance at Imperial College Business School in 2018.

“Imperial’s reputation at the intersection of science and technology and management really stood out, and its network has been incredibly helpful.”

Written by Helena Pozniak

If investors want businesses to clean up their act, they need a seat at the table. That’s according to Ravi Varghese, Head of Sustainable Investing at global asset management firm Epoch Investment Partners

Promoted at Epoch in New York

after joining as an analyst in 2019, he is now in charge of environmental, social and governance (ESG) and, with his team, helps assess the implications of ESG issues for the firm’s portfolio of around 500 listed companies.

Dealing in controversy

Grappling with ethics is part of the job. Nothing, in his view, is off limits when it comes to applying the tools of ESG investing – from fossil fuels through to defence and Big Tech. “We don’t exclude any sectors; controversial industries are more likely to benefit from a thoughtful ESG approach.”

Investors had grown pessimistic about the prospects of hydrocarbons, he says, but when energy prices soared, many ESG investors found themselves without exposure to these pivotal companies.

“Some sectors have fallen out of favour, but we’ve always said these companies are central to the global economy and energy security and will continue to be so for the next 30 years,” he explains. “Many are making the transition to lower-carbon energy, and we want to take part in that.”

Divesting from fossil fuels doesn’t reduce emissions, it simply shifts the ownership, “and if that ownership becomes opaque, it could make things worse.”

Big Tech, with its vast influence over societies and economies, is fraught with pitfalls for ESG investors, but can’t be ignored. “It’s perfectly reasonable that the tech giants should be subject to scrutiny,” he says. “As investors, we continue to think how we can be effective partners while challenging practices that could ultimately draw a backlash from society or regulators.”

If a client’s reputation is at stake, a company fails to reform or displays weak governance, then it may be time to depart. “One of the interesting things about ESG is that it merges the pragmatic reality of the corporate world with more complex issues around ethics and reputation.”

The growth of ESG

Even in the past three years, ESG has developed apace, says Ravi. “Not every asset manager had an ESG team then, which is very different today. ESG had to overcome a lot of scepticism… It means many things to many people, so definitions are important.”

In his role, Ravi often engages directly with companies to dive deeper into the detail around ESG performance, and he works closely with investment analysts in his company. Investor stewardship is another important pillar in ESG –increasingly, for instance, shareholders are asking businesses for plans to report and cut emissions and meet environmental and social targets. His team is also responsible for explaining the firm’s ESG philosophy to its clients. While formal qualifications aren’t a prerequisite for entering the ESG field, he’s grateful for the solid grounding delivered by his time at Imperial College Business School.

In brief

Completed the MSc in Climate Change, Management & Finance at Imperial College Business School

Head of Sustainable Investing at a global asset management firm

Worked as a senior associate at a non-profit organisation advocating sustainability

Completed his undergraduate degree at Yale University

“It gave me a foundation in climate science and the political, economic and technological tools for mitigating emissions. I think it really accelerated my ability to pursue this career. ESG is now being applied to so many different industries and asset classes, and it promises to be a really interesting journey.”

What African tech startups can teach us about digital innovation

The African tech startup landscape is undergoing radical change, but what is helping certain businesses thrive in this new environment?

Written by Tim Weiss and Markus Perkmann

During the past decade, the African continent has pushed the frontiers of digital innovation, providing fresh landscapes for startups. More than 600 technology hubs now welcome entrepreneurs, with some startling successes. On top of which, the pandemic has accelerated digital takeup, allowing some ventures to leapfrog innovation cycles.

The latest figures show some $4 billion of investment was funnelled into African tech startups in 2021 and six unicorns have emerged on the continent. But what makes certain businesses flourish in these unique circumstances?

Accelerating growth

Our assessment reveals a plethora of scaling models being used by tech startups on the African continent. Take Kenyan company OkHi, whose technology allows users who don’t have a physical address the chance to create a “smart address”. This tech solution also answers a problem for Nigerian banks: Nigerian digital payment unicorn Interswitch had to verify the identity of new customers with a time-consuming visit in person. Now, OkHi’s technology solves Interswitch’s “know your customer” problem digitally.

We also considered whether rapid growth can work in African economies, with some examples suggesting it does. Successful fintech startup Paystack, founded by two Nigerian entrepreneurs, was acquired by US fintech venture Stripe for $200 million. Founders of both companies were part of the same cohort at Silicon Valleybased accelerator Y Combinator, where they forged valuable relationships, with Stripe becoming an early investor in Paystack.

“The African continent has pushed the frontiers of digital innovation.”

Entrepreneurial success

But what mix of local and international entrepreneurs makes for a successful startup? Kenyan startup Twiga, created by both Kenyan and expat founders, has become one of Kenya’s most celebrated success stories. The business has leveraged digital technologies to build supply chains for retail distribution, allowing smallholder farmers to bypass fragmented food supply chains.

Kenyan founder Peter Njonjo, who previously worked for Coca-Cola, brought his expertise in local supply chains and logistics, while US founder Grant Brooke had a background in strategy and finance. This mix has boosted the company’s rapid growth since its foundation in 2014 – to date, it has raised $157 million.

Adopting emerging technologies

We also considered whether where a company is founded matters, looking specifically at two main models. Kenyan tech firm Cellulant has expanded from a ringtone provider to a digital finance business operating in 34 African nations. This is a home-grown venture, headquartered on the continent, and equipped with a deep understanding of how to navigate different national institutions.

By contrast, some global tech firms leverage mature investment environments in Western economies and operate largely on the African continent. The San Francisco-based drone startup Zipline has raised more than $200 million, but mostly tests its model of drone-delivered medical supplies in Rwanda and Ghana.

Our study suggests change is on the horizon, with impending reforms and opportunities. For example, the ambitious African Continental Free Trade Agreement offers African nations a chance to cut out the red tape and could be transformative. Some countries are committing to adopting emerging technologies, with strategies to usher in artificial intelligence.

Access to entrepreneurial finance is also increasing, encouraged by maturing financial markets, such as the proposed joint stock market between Uganda, Tanzania and Rwanda. As a result, the next decade could spell opportunities for digital growth on a scale the continent has not yet seen.

Dr Tim Weiss is Assistant Professor in the Department of Management & Entrepreneurship at Imperial College Business School. His research analyses the changing nature of entrepreneurship and its societal effects.

Markus Perkmann is Professor of Innovation & Entrepreneurship at Imperial College Business School. He is Academic Director of the Imperial MBA and holds a PhD from Lancaster University.

The big business of analytics and operations

The Business School’s analytics and operations academics presented four papers at prestigious machine learning and AI conference NeurIPS in 2022. Here, we take a closer look at their research

Written by Evie Burrows-Taylor

Business School academics working in the field of analytics and operations carry out research across areas as wide ranging as business analytics, the design and management of processes across the manufacturing and services sectors, and managing employee and customer behaviour. Difficult to translate to outsiders due to its foundations in complex maths, the discipline is nevertheless “big business”, in the words of Professor Wolfram Wiesemann, Head of the Department of Analytics, Marketing & Operations. While the required background in computer science, statistics and management is “hard to come by”, new processes and systems are frequently sold to startups for large sums of money, and the work of the department has caught the eye of industry experts.

At NeurlPS 2022 – a prestigious machine learning and AI conference, where just 25 per cent of submitted papers are accepted each year – the Business School’s Department of Analytics, Marketing & Operations presented four papers. This strong showing demonstrates the Business School’s contribution to Imperial’s well-known strength in analytics and operations.

Making sound business decisions under pressure

A collaboration between Dr Xiaocheng Li and PhD student Shang Liu presents a new model for programming sophisticated sequential decisionmaking policies. As opposed to making a single decision at one point in time, sequential decision-making processes require policies that allow a series of decisions to be taken at different points in the future.

The work is targeted at business environments that are subject to frequent changes and fluctuations, which lead to uncertainty and require evolving information processing. For example, an ad-bidding platform needs to change its strategy according to remaining budget, while an airline booking platform adapts to several important market factors such as season, flight time and available promotions.

While existing research focuses on more predictable business environments, their proposed approach offers more adaptable, data-driven and robust decision-making support.

indicate either “yes” if there is a tumour or “no” if there isn’t. On top of this, the computer needs to output the correct answer as often as possible.

To solve these problems, data is required to estimate the prediction. Unfortunately, data can be corrupted by unusual results, and so-called “robust approaches” that take this problem into account often have better results.

Previously, research in this area has focused on situations where all of those observed are trying to achieve the same thing, such as the behaviour of consumers who want to save money. In contrast, this new research by Dr Li takes a more realistic model – a group of people who do not all share the same goal – therefore offering a more realistic comparison of human behaviour. It allows a more complex look into why people are purchasing the products they have chosen and what this means for the retailer in question.

Accurately predicting outcomes

Predicting whether a patient will go on to develop a particular disease, or a web user will click on an ad, is often achieved through a process called logistic regression. The goal is to predict a binary – or “yes” or “no” – outcome based on a series of factors such as the patient’s medical history or the webbrowser’s past browsing habits.

Let’s say you are trying to write a machine learning programme that will be able to detect cancerous lung tumours: it takes in images of lung X-rays as input and determines if there is a tumour. The programme should

A research collaboration between Professor Martin Haugh, Professor Wiesemann, and their PhD students Reza Belbasi and Aras Selvi, presents a “robust approach” to logistic regression that is tailored to handle the errant results that often arise in practice and, as a result, skew the data. While handling these features can result in very challenging mathematical problems, the authors show how these can be solved efficiently and provide better results.

Using data to solve problems

Solutions to problems such as how to select an optimal production and distribution strategy for a supply chain, how to operate an energy system and how to invest in the financial markets are often based on Markov decision processes. Modelling decision making in situations where outcomes are partly random and partly under the control of a decision maker, these mathematical frameworks are used where key factors such as future customer demands, raw material prices and exchange rates are uncertain.

In his research paper, Professor Wiesemann demonstrates that, to achieve a high-performing process, it is crucial to anticipate the uncertainty, as well as factor in the inevitable estimation errors. He proposes a method for safeguarding Markov decision processes against these mistakes, which could, in turn, lead to superior business strategies.

Random preference

Revealed preference refers to the practice of observing how people behave to work out what they are trying to achieve through their actions. When it comes to linking this to machine learning and analytics and operations, revealed preference can be particularly useful when it comes to explaining consumer behaviour.

“The work of the department has caught the eye of industry experts.”

Business Technology

“Where worlds collide means that two things are coming together. It means something is growing, it’s colliding with what exists. When you’ve got that crossover, that nexus, there’s a bit of a problem. But that means there’s an opportunity to create a solution. Where worlds collide means innovation. It means growth, it means progress and it means a chance to develop solutions.”

Ansumana Bai-Marrow Global Online MBA, Chief Compliance O cer, Cairn Capital

Worlds collide at Imperial College Business School. Scan the QR code and discover more today.

Written by Conrad Duncan, Deborah Evanson and Laura Singleton

Technology solutions based on substantial scientific or engineering challenges, collectively referred to as “deep tech”, have the potential to transform society but often fail to secure financial backing and go undeveloped.

Imperial’s recently launched Institute for Deep Tech Entrepreneurship is looking to change that, aiming to secure substantial philanthropic support over the coming decade to help the commercialisation of promising discoveries.

“Deep tech holds great promise for helping to solve all sorts of global challenges, from climate change and food and water insecurity to antimicrobial resistance and the need for continual medical advances,” says Professor Hugh Brady, President of Imperial College London. “Our Institute for Deep Tech Entrepreneurship will help accelerate these deep tech innovations to market, helping to deliver the solutions society needs.”

Welcome to the Institute for Deep Tech Entrepreneurship

Imperial is tackling major societal challenges with its pioneering new institute

Vibrant innovation ecosystem

Developing innovative solutions is time consuming, requiring lengthy research and technical development before they reach the market. Often spun out of university labs before they are commercially viable, deep tech innovations are unable to garner the support they need from traditional funding resources.

“Venture capitalists like to focus on mature technology with proven markets, but investment is also needed during the delicate, early stages of research,” says Dean of the Business School Francisco Veloso. “These technologies are typically far from the level of readiness that can entice typical venture investors, who see them as too risky or immature.”

Through its DT Prime Fund, the Institute will focus on helping Imperial scientists reach technical milestones

that address key uncertainties in the eyes of potential backers. Meanwhile, it is also developing a research platform to inform evidence-based best practices specific to deep tech.

“We need to fully understand these funding barriers before we can fix them,” says the Business School’s Professor Ramana Nanda, Academic Lead at the Institute for Deep Tech Entrepreneurship. “Entrepreneurship plays such a fundamental role in driving economic growth, but the best ideas don’t always end up getting the money they need.

“Equally importantly, we aim to develop resources for the wider community of entrepreneurs, regulators and policymakers, to support the development of a vibrant deep tech ecosystem in the UK and beyond,” he says.

One of Imperial’s Academic Strategy projects, the Institute aims to deliver impact and benefit to society. Building on a strong research foundation across the College’s four faculties – Science, Engineering, Medicine and Business – it draws on the strengths of the entire Imperial community.

The Institute’s launch gathered experts from academia, industry and business

“Venture capitalists like to focus on mature technology with proven markets, but investment is also needed during the delicate, early stages of research.”

Written by Fran Morgan

elvin Poh’s career initially led him to study law, with his desire to experience the world – particularly the UK, Europe and the US – taking him to Harvard and Cambridge. He then pursued his calling for entrepreneurship while completing his MSc at Imperial College Business School. That love of learning, exceptional levels of drive and energy, and a determination to be a force for good are integral to his success. And he is still only 31.

A failed business venture in Hong Kong in 2010 left Melvin acutely aware of the fact that the knowledge he needed to succeed simply wasn’t available and is often only truly accessible to those fortunate enough to receive a good education.

on

“In today’s age, being able to access quality information and knowledge is so important… being able to equip yourself with the right knowledge is something that should not be limited to certain people – it should be equally accessible to all,” he says.

After graduating from Imperial College Business School’s MSc Innovation, Entrepreneurship & Management, Melvin Poh went on to secure millions in funding for his growing business

Knowledge sharing

And so, the seeds of The Asian Entrepreneur – to facilitate the sharing of knowledge and acumen among entrepreneurs – were planted. The model, experiential in nature, was initially a printed publication that focused only on business.

That was in 2013. In 2022, the organisation was expanded and renamed Empirics Asia, with a team of 37, more than 1,000 regular contributors and over one million published articles on an online knowledge-sharing platform. Its remit has now broadened to encompass all the social sciences, with content democratically curated by an editorial team to protect the platform’s credibility and ensure its breadth and relevance. It remains open access, a central tenet of the organisation.

Melvin pursued the Business School’s MSc Innovation, Entrepreneurship & Management in 2015 to hone his business skills and exploit the College’s focus on engineering and technology. At the time, there weren’t many specialised business courses like this on offer, and to study in London was an opportunity not to be missed.

“I was most impressed, not just by the way the course was structured, but also by the people I met… to be able to meet them, learn from them and exchange experiences with them was just incredibly valuable,” he says.

Growing a business empire

What he learnt from his peers, in addition to the teaching and electives on offer, gave him the extra skills he needed to build The Asian Entrepreneur into a business that, within eight years, was able to attract

$14 million in investments. In 2019, Melvin was named in Forbes’ 30 Under 30 List and, in 2022, he was the recipient of the Business & Innovation Award from the British Council. One of his goals is to develop the social networking aspect of the platform, allowing users to “contribute their personal knowledge and insights and exchange them with each other”.

What advice does Melvin have for the current or prospective students on the Business School’s MSc in Innovation, Entrepreneurship & Management programme?

1 Broaden your perspectives, challenge your thinking and step outside your comfort zone.

2 Recognise the power you have as a business leader, and value the fulfilment that comes with responsible leadership.

3 Fuel your passion and remain true to your beliefs. His conviction that “Being able to equip yourself with the right knowledge is something that should be equally accessible to all” continues to be his mantra, and the driving force behind Empirics Asia’s success.

FIXING THE INTANGIBLE ECONOMY

Professor Jonathan Haskel explores the themes of his latest book, Restarting the Future: How to Fix the Intangible Economy

Written by Jonathan Haskel

The failure of financial institutions to keep up with the rise of the intangible economy has led to economic disappointment across the developed world. So, why has this happened, and what do we do now?

At the beginning of the 21st century, it was hoped that new technologies and ways of doing business would mean greater prosperity – but this has not proved to be the case.

Businesses have been putting more money into intangible assets, such as R&D and design, making them a cornerstone of the economy, rather than tangible assets, such as buildings.

Despite this, the pace of intangible investment is slowing and developed countries find themselves in a strange position: the world is richer than it’s ever been, yet their economies are suffering from major issues, including stagnation, inequality and dysfunctional competition. It is essential these problems are addressed so we can create an economy that is faster growing, more sustainable and fairer for everyone. But first, we must understand the reasons we ended up in this situation.

The Great Economic Disappointment

The explanations for the Great Economic Disappointment that developed countries across the world are experiencing fall into two groups: conduct and circumstance. Conduct theories are based on the idea that different behaviour would have resulted in a different outcome. Within this group, left-wing arguments blame neoliberalism while those on the right point the finger at the loss of an entrepreneurial spirit.

Explanations that fall under the umbrella of circumstance tend to be more fatalistic, arguing the issues we face today are the inevitable consequence of progress.

In our book, Restarting the Future: How to Fix the Intangible Economy, my co-author Stian Westlake and I put forward a different explanation altogether: we believe the problem we are seeing in the world’s major economies is the result of being caught between the past and future.

An unfinished revolution

It is generally accepted that economic activity depends on institutions. Sound institutions enable exchange: trade, investment and specialisation are all essential to making the economy progress. The problem today is intangible capital has unusual economic properties; ideas, like designs, can leak out to others who don’t pay for them.

Consider, for example, the increased need for capital markets and banking systems to lend to firms whose intangible assets, such as a new movie script, are difficult to use as security for loans. Compare this to a firm with lots of tangible assets, such as buildings and vehicles, that wants to borrow money. From the bank’s perspective, it makes far more sense to lend to the second type of company.

We have the old economic institutions for the new intangible economy, meaning worthwhile intangible investments are not made, resulting in slower growth, and the potential downsides of an intangibles-rich economy go unchecked.

The solution

If we want to fix institutions, we need to identify and strike political bargains, but rebuilding these institutions is a tough electoral sell. Doing the deals necessary to make the new institutions stick requires creativity, cunning and willingness to challenge vested interests – and these requirements may seem like a tall order, politically.

But unlike other explanations for the Great Economic Disappointment, the story we are telling is grounds for optimism. For, if the issue is that we have failed to update and improve our institutions to keep up with the changing structure of the economy, then there is a solution – even if it is a difficult one to bring about. Institutional renewal has happened before, and it can happen again.

If we are successful, the rewards will be increased growth and prosperity, tackling ecological threats from pandemics to global warming, and finding a way out of the unhappy halfway house in which the economy has been stuck for nearly two decades. These are things worth fighting for.

About the author

Jonathan Haskel is Professor of Economics at Imperial College Business School and an External Member of the Bank of England’s Monetary Policy Committee. His main research interests are productivity, innovation, intangible investment and growth.

Q. How do you combine sustainability and pro t?

Q. Is corporate social impact work good for your career?

Q. How do we x a broken economy?

IB Knowledge

Let us help you make better decisions with weekly articles from Imperial’s business experts imprl.biz/mag-knowledge

Alumni updates

A degree from Imperial College Business School is just the start of a great business leader’s journey

Class of 1984

Valerie Vaughan-Dick

MSc Management Science

Valerie was awarded an MBE in the 2022 Queen’s Platinum Jubilee Honours list for services to general practice and to ethnic minority communities. She is the Chief Operating Officer, and most senior member of staff, at the Royal College of General Practitioners, the professional membership body for family doctors in the UK and abroad.

Classes of 1990–99

Abayomi Carmichael

Full-Time MBA 1997

In January 2023, Abayomi was promoted to Chief Executive of Bermuda’s Regulatory Authority. The independent regulator oversees the island’s electronic communications, electricity and submarine communications cables.

Tina Vilaça

Full-Time MBA 1997

Tina’s time at Imperial continues to have a positive impact on her career. She has travelled all over the world, working in the finance sector, and, in 2022, she was offered the role of Director –Technical Pre-Sales Architect at data and payments firm Moneyhub.

Lee Cowie

BSc Biochemistry & Management

Joint Honours 1999

Lee is Chief Technology Officer for Merlin Entertainments, which runs a large portfolio of attractions including Legoland and Madame Tussaud’s. He runs a global team spanning four continents and is responsible for technology strategy, day-to-day IT operations and delivering new technology. Previously, Lee was Global Head of Technology Delivery at Ericsson, spending four years opening new TV broadcast stations around the world.

Class of 2013

Jason Parmer

BSc Chemistry & Business Management Joint Honours

Jason leads TikTok’s Gaming revenue business across the UK and Nordics. This involves leading a team of brand and performance marketing experts to help gaming companies launch, grow and sustain their PC/console and mobile games.

Class of 2015

Supa Chantschool

MSc International Health Management

Supa is the Chief Operations Officer and founder of Rest Space, a company that provides places to rest at work to support employee wellbeing. Since leaving Imperial, Supa has worked in pharmaceutical market research and consulting. He has also digitalised his family Asian groceries store, Muay Supermarket in Earl’s Court, which is now one of the top 15 Asian supermarkets in London.

Class of 2016

Ria Wadhwa

MSc Finance & Accounting

After graduating, Ria joined Lloyds Banking Group on a graduate programme and subsequently started a career as a credit risk analyst. She was promoted to Associate Director when she moved to UBS in 2019 and, in 2022, she was promoted again to Vice President of Credit Risk Management at Morgan Stanley.

Laura Zambon

MSc Strategic Marketing

Class of 2018

Suraya Khodr and Alejandro Aldamiz

MSc International Health Management

Suraya and Alejandro met at the Business School in 2014 and married in Spain in 2022. They live in Abu Dhabi, where Suraya, originally from Lebanon, works at the Cleveland Clinic as a department administrator in clinical and surgical operations. Meanwhile, Alejandro, who is Spanish, heads the Maritime Economics department of Abu Dhabi Ports Group.

Laura is the Digital Campaign & Media Manager at Spanish fashion and fragrance company Puig, where she manages all traditional and digital media campaigns for the company’s prestige fragrance portfolio in the UK. Since 2018, Laura has also been part of the committee of Imperial’s Marketing Professional Interest Network and has been involved in organising numerous marketing events for alumni and professionals.

Abdelrahman Fathalla

MSc Finance

Abdelrahman is the founder and CEO of hospitality startup Guillam Holdings. His first project was to develop a small single-origin coffee shop chain, Guillam Coffee House. After growing organically to three locations, it has recently taken on a seven-figure minority investment and has plans to expand to six sites.

Lea Karam

MSc Strategic Marketing

Lea was listed on Campaign Media

Week’s 2022 list of 30 Under 30 for building a global reputation as a behavioural scientist. After joining media and marketing agency Total Media, she launched Brave, a behavioural consultancy. Building behavioural tech and solutions from scratch, she has led and trained up a team, and encouraged better, more effective use of data and insights in advertising.

Deesha recently joined CareerHigher as a senior career consultant, helping candidates succeed in challenging career changes across the globe. She also works as an independent education consultant, offering personalised guidance and support to Business School aspirants. She has helped hundreds of students secure admission to the most prestigious universities in the world.

Class of 2019

Clara used her passion for sustainable food and founded Saved, an alternative protein brand using cricket protein to improve everyday foods such as pasta, granola and tortilla chips. The aim is for people to get the protein they need by eating the foods they love.

When Erblin graduated, he started working as Chief Financial Officer at dua.com, a groundbreaking platform aiming to change the way globally fragmented communities connect by providing matchmaking and payment services. The success of the company led to Forbes featuring Erblin on its 30 Under 30 List as one of the rising professionals to watch in the field of finance.

Lola is a digital and innovation specialist and Chief Digital Officer at FBN Quest, a Nigerian merchant banking and asset management firm. She also recently published her first novel Lagos to London aimed at inspiring young people to find their own paths and strive to be their best as global citizens.

Sourav recently founded SCONTO, a student lifestyle and discovery platform in India. He previously cofounded cemX, the first e-commerce platform in India facilitating a direct supply channel between large cement dealerships and the consumer. He also launched ZeroDollarSecurity, India’s first crowdsourced and crowdskilled cybersecurity community.

After winning the Imperial College Business School prize for the Best End of Year Report on the Executive MBA programme, George has turned his project into reality. He founded ArtVolt, a platform that allows art enthusiasts to record all the artworks, artists, curators and galleries they want to remember in one place.

Deesha Nagpal MSc Management

Lola Aworanti-Ekugo Weekend MBA

Clara Best MSc Innovation, Entrepreneurship & Innovation

Sourav Chakraborty MSc Management

Erblin Ribari MSc Investment & Wealth Management

George Stamboulis Executive MBA

Class of 2020

MSc Economics & Strategy for Business

Soukayna was Chair of the Business School’s Student Staff Committee and President of the College’s Africa Business Club. Since leaving Imperial, she has secured a role as an analyst at the Bank of England.

Ivan founded, and was President of, the LGBTQ+ & Allies Business Club at Imperial College Business School in 2018. Since then, he has become a champion of facilitating equality, diversity and inclusion within organisations. Ivan currently works as a director at Capgemini Invent, the consulting branch of Capgemini, in Zurich, where he leads a tech advisory team.

Commander Matt Phillips was made the final Commanding Officer of United States Navy dock landing ship the USS Whidbey Island, before she was decommissioned.

Class of 2021

MSc Risk Management & Financial Engineering

Andreas started his career in finance as a quantitative analyst in the alternative investment space, helping private equity and credit funds manage the foreign exchange and interest rate risk of their deals. He now specialises in clearing over-the-counter FX derivatives and effective default management.

Since graduating from the Business School, Jack has been working on his startup, KYP. A UK-based risk intelligence platform, KYP closed its pre-seed funding round with approximately £800,000.

MSc International Health Management

After graduation, Nikolaus joined Amazon Web Services as a consultant in its Emerging Technologies & Intelligent Platforms team in London. After a year of helping clients conceptualise, implement and scale AI-enabled products and services, he joined McKinsey’s business building division, McKinsey Leap.

Megha works in the healthcare innovation space at SanusX in Vienna. She is currently working on developing a health quiz that will help customise health benefits for employees. The AI system learns about employees’ health requirements and recommends the services that will keep them healthy.

Soukayna Hachimi

Andreas Ierodiaconou

Ivan Kovynyov Weekend MBA

Jack Mulcahy Global MBA

Nikolaus Müller

Matthew Phillips Global MBA

Megha Bhola MSc International Health Management

Morgan Mixon

Full-Time MBA

Morgan is the co-founder of Cleannest, where she is on a mission to make baby care, starting with nappies, more sustainable and inclusive. Cleannest is using more sustainable production methods, educating customers and pioneering end-of-life solutions to prevent nappies from ending up as landfill. Morgan was recently named one of Management Today’s 35 Women Under 35.

Navin

MSc Economics & Strategy for Business

Navin launched Samudai, a new collectively owned, blockchaingoverned organisation also known as a DAO operating system. In June 2022, the company raised $2.5 million in pre-seed funding from global marquee investors to support its efforts and build the future of collaboration and contributor economy.

Hardil Shah

MSc Management

Hardil joined Tata Consultancy Services in London as part of its Retail Consulting Team in 2021. From there, he joined Proxima Group, part of management consultancy Bain & Company, as an analyst specialising in procurement and supply chain management. His work spans a variety of sectors, including aviation, financial services and retail.

Ludovico Tansini Petrali

Msc Economics & Strategy for Business

After working part time for a boutique consulting firm while finishing his degree at Imperial, Ludovico joined Envoy, a B2B software platform that aims to change the way people share content. In early 2022, the company raised $700,000 in a pre-seed round from venture capitalists and angel investors, and the product launched in October 2022.

Dima Tarasenko

MSc Economics & Strategy for Business

Dima entered the tech industry at consumer fintech company ClearScore. There, he worked on business and corporate strategy, helping senior leadership shape the future of the company through assessing international expansion, M&A opportunities and new ventures. Dima is now working on a startup that aims to make online payments better for consumers with venture capital firm Entrepreneur First.

Class of 2022

Karl Rizk

MSc Management

Prior to joining the Business School, Karl worked as a data engineer and analyst across sectors including health tech, fast-moving consumer goods and chemicals. After his MSc, he joined the entertainment and media industry as a senior data analyst where he supports, leads and contributes to better decision making through digital analytics for large corporations such as Netflix, Apple TV, Sony and Paramount.

The last word on...

A brief and final look at the School’s key themes in the words of our academics

Digital transformation

“The potential value of digital transformation is huge. It has been estimated that, by 2030, $13 trillion could be added to global GDP through digitalisation, automation and artificial intelligence. These can be intimidating words for pre-digital organisations but waiting to dive in isn’t the answer.”

Christopher Tucci Professor of Digital Strategy & Innovation

Economics and finance of climate change

“It is time that governments do more to drastically reduce their countries’ emissions to limit the damage being caused to our planet... Extreme weather will likely become more frequent and widespread. While we cannot control the weather and the consequent fallout of its extremities, we can do our best to ensure that health equity is available to all.”

Laure de Preux Assistant Professor of Economics

Sustainable development and social responsibility

“If every company has a role to play in the green recovery, so too does every section of society: from politicians establishing the legislative frameworks and incentives to encourage desired behaviours, to voters, consumers and investors putting pressure on businesses to prioritise environmental concerns alongside revenue and profits.”

Maurizio Zollo Professor of Strategy & Sustainability

Finance and institutional resilience

“Lower interest rates boost employment, particularly among people with lower incomes, but these higher earnings are eclipsed by the benefits the better off enjoy, in terms of healthier share dividends, better business income and cheaper interest costs. We witness a similar imbalance if we examine the impact of lower rates on the value of assets such as property and stocks.”

José-Luis Peydró Professor of Finance

Healthcare innovation management and policy

“It is essential we understand how the pandemic has compounded existing health inequalities – and, importantly, what we as a society must do to counter these issues. There is no quick fix, but making progress is vital for post-pandemic recovery and for the government to deliver on its commitment to levelling up the poorest parts of the country.”

Carol Propper Professor of Economics

The future of busine ss, to day

Brows e the p or tfolio of on- campus, vir tual and online pro gramme s at Imp erial.ac.uk/exe cutive - e ducation