Latest Event Updates

Biometric Identity Theft

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Recently I have been researching the potential of fraud and identity theft using fingerprints from photos posted on social media. Last week Amazon released its “Amazon One” Palm Scanner as a means to pay for purchases when shopping. That announcement made me wonder, what are the potential implications for fraud and identity theft using biometric data taken from images?

Man's forearm and hand, index finger extended to point to one of a series of "digital keys"
Could Photos posted on Social Media sites become the Key to Digital Identify Theft?

There are a surprising number of ways to accurately identify someone from a photo or video. Moreover, there is technology to copy fingerprints from social media photos taken up to three meters away. New technology has been proven effective at using 3D printing technology to create “fake fingerprints” that will bypass many fingerprint scanners.

Technology continues to improve at a rapid pace, which often means, “Where there is the will there’s a way.”

Since fingerprints can be copied from photos taken up to three meters away does that mean a palm print could potentially be copied from a photo taken 5-10 meters away? That question led to an interesting but unscientific experiment where I took pictures of my own hand, enlarged them, and then measured the distance between the ridges and furrows of both my fingers and my palm, and then compared the results of the two. Spoiler – probably not.

There are several areas where that distance was similar for both my fingers and palm. But, there were also areas on my palm where the average distance between “landmarks” was 3-5+ times greater. It turns out that for identification purposes a palm image is often segment into 3-4 distinct regions, likely due to this type of variation. This link was helpful to understand the process.

This research led to an idea for a chip-based embedded filter for smart devices and laptops. It would obfuscate key biometric information when extracting the data for display, without affecting the integrity of the original stored image. This functionality would automatically provide an additional layer of privacy and data protection. It would require optimized object detection capabilities (possibly R-CNN) that were highly efficient, and run on a capable but low energy processor like the Arm Cortex-M. Retraining and upgrades would be accomplished with firmware updates.

Edit 2020-10-13: This article on “Tiny ML” from Medium.com is the perfect tie-in to the idea described above.

While Amazon’s technology is much newer and presumably at least partially based on their 2019 Patent Application (which does look impressive), it makes you wonder how susceptible these devices might be to fraud given reports of the scans occurring “almost instantaneously.” Speed is one aspect of successful large-scale commercial adoption but the accuracy and integrity of the system are far more important from my perspective.

Time will tell how robust and foolproof Amazon’s new technology really is. Given their reach, this could occur sooner than later. Ultimately, multiple forms of biometric scans (such as a full handprint with shape, palm, and fingerprints, or a retina scan 2-3 minutes prior to the palm scan to maintain performance) may be required for enhanced security, especially with mobile devices.

Additional Resources:

Are you Thinking About Starting a Business?

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The last post on Starting a Business was popular so I thought that I would share a very key lesson learned and then provide links to previous posts that will provide insights as you move forward with launching your own business. If you have any questions just post them as comments and I would be happy to reply.

The COVID-19 pandemic has created a great deal of uncertainty and opportunity. For many, now is the ideal time to explore their dream of starting a business and jumping into the waters of entrepreneurship. That can be exciting, fun, stressful, financially rewarding, and financially challenging, all within the same short period of time. 

Being prepared for that roller coaster ride and having the ability and strength to continue pushing forward is important. Something to understand is that “Things don’t happen to you. They are the Direct Result of your own Actions and Inactions.” That may sound harsh, but here is a prime example:

When I was closing my consulting business down I trusted my Accountant and Payroll company to handle all of the required filings for Federal, Wisconsin, Ohio, and Colorado – something they stated they would handle and I accepted at face value. Both companies had done a great job before so why would I expect any less this time?

About nine months later I started receiving letters from Ohio and Colorado about filings due, so I forwarded them along to the Accountant and Payroll company. In my mind, this was “old business” and was being handled, plus I had moved on. It was probably just a timing error, something easy enough to explain away.

Skipping forward nearly three years, I had been threatened by the IRS and the Revenue Departments from both Ohio and Colorado. I started with a combined total of nearly $500K in assessments. Slowly that dropped to $50K, and then to $10K. I spent countless hours on the phone and writing letters trying to explain the misunderstanding. It wasn’t until I finally found a helpful person in each department that was willing to listen and told me specifically what needed to be done to resolve that situation. My final cost was around $1,000. I was relieved that this fiasco was finally over.

For the longest time, I blamed both the Accountant and Payroll Service for these problems. Ultimately I realized that it was my business and therefore my responsibility to understand the shutdown process – regardless of who did the actual work. I would have saved hundreds of hours of my time and several hundred dollars by simply gaining that understanding in the beginning.

I was not a victim of anything – this situation was the direct result of my own inaction. At the time it just did not seem very important, but my understanding of the situation and its importance was incorrect and I paid the price. Lesson learned. It was my business so it was still my responsibility to the very end.

Below are the other links. You don’t have to read them all at once, but it would be worth bookmarking them and reading one per day. Every new perspective, idea, and lesson learned could be the thing that helps you achieve your goal a day, week, or month sooner than expected. Every day and every dollar matters, so make the most of both!

Presentation about Starting a Business and Entrepreneurship

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It is interesting how often you see ads for some franchise offering that touts, “Become your own boss.” While that may not be all bad it is just the tip of the iceberg. The presentation below is intended to provide insight to people who may be considering starting their first company. This was from a one-hour presentation and glosses over a lot of things, such as the need for registrations and insurance, but for a first-timer, it could be helpful.

One of my first and most important lessons learned when I started my consulting company long ago was that paying attention to cash flow was far more important than focusing on my balance sheet. Once you understand a problem it becomes easy to alter what you do to manage it. For example, using fixed pricing based on tasks where we received 50% up-front and the remaining 50% upon acceptance of the deliverable smoothed out cash flow and that was a big help.

So, take a look and post any questions that you may have. If one person has a question it is likely that many more do as well! Cheers.

The Coming Changes to Manufacturing

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Recently, I was speaking with a person who is part of a team analyzing ways to, “mitigate the risk of exclusive manufacturing in China” while not fully divesting their business interests in a growing and potentially lucrative market. This bifurcation exercise got me thinking about how many other companies are evaluating their supply chain relationships, inventory management, and the predictability of their cost of goods sold.

In the mid-1990s I had done a lot of work with the MK manufacturing software that ran on the Ingres database. Some of the issues were performance-related and fixed by database tuning, some fixed by using average costs instead of a full Bill of Materials (BOM) explosion using dozens of screws in a window, but some were more interesting and also more business-focused.

After NAFTA became law one manufacturer built a facility in Mexico and started having a few basic but important parts manufactured there. When I arrived as a Consultant the main problem they faced was a reject rate of roughly 20% and additional related QA costs. My suggestion was to treat this part (say a single piece of steel like the rotor from a disk brake system) as a component and build-in the cost of both the scrap and the QA. They could then benchmark the costs against other suppliers in an apples-to-apples comparison to determine if they were really saving money. That approach ended up working well for them.

While that approach helped manage costs it did not address the timeliness of orders or lead time required – important aspects of Just-in-Time (JIT) manufacturing. Additionally, it should be possible to estimate shipping costs by taking into account changes in petroleum costs or anticipated changes in demand or capacity.

There are systems that are out there that claim to estimate the cost and availability of commodities based on a variety of global factors and leading indicators. It is tricky, to say the least, and can’t anticipate an event like a pandemic. But, companies that are able to manage their inventory and production risk the best will likely be the ones that succeed in the long run. They will become the most reliable suppliers and have increased profits to invest in the further growth and improvement of their businesses.

The next 2-3 years will be very interesting times due to advances in technology and geopolitical changes. Those companies that embrace change and focus on real transformation will likely emerge as the new leaders in their segments by 2025.

New Perspectives on Business Ecosystems

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One of the many changes resulting from the COVID-19 pandemic has been a sea change in thoughts and goals around Supply Chain Management (SCM). Existing SCM systems were up-ended in mere months as it has become challenging to procure raw materials to components, manufacturing has shifted to meet new unanticipated needs, and logistics challenges have arisen out of health-related staffing issues, safe working distances, and limited shipping options and availability. In short, things are a mess!

Foundational business changes will require modern approaches to Change Management. Change is not easy – especially at scale, so having ongoing support from the top down and providing incentives to motivate the right behaviors, actions, and outcomes will especially critical to the success of those initiatives. And remember, “What gets measured gets managed,” so focusing on the aspects of business and change that really matter will become a greater focus.

Business Intelligence systems will be especially important for Descriptive Analysis. Machine Learning will likely begin to play a larger role as organizations seek a more comprehensive understanding of patterns and work towards accurate Predictive Analysis. And of course, Artificial Intelligence / Deep Learning / Neural Networks use should accelerate as the need for Prescriptive Analysis grows. Technology will provide many of the insights needed for business leaders to make the best decisions in the shortest amount of time that is both possible and prudent.

This is also the right time to consider upgrading to a modern business ecosystem that is collaborative, agile, and has the ability to quickly and cost-effectively expand and adapt to whatever comes next. Click on this link to see more of the benefits of this type of model.

Man's forearm and hand, index finger extended to point to one of a series of "digital keys"

Whether you like it or not, change is coming. So, why not take a proactive posture to help ensure that this change is good and meets the objectives your company or organization needs.

Changes like this are all-encompassing so it is helpful to begin with the mindset of, “Win together, Lose together.” In general, it helps to have all areas of an organization moving in lockstep towards a common goal but at a critical juncture like this that is no longer an option.