Many executives are under pressure to develop successful data center strategies that work for their organization, according to industry-specific criteria. While data centers have been in use for decades and began as largely in-house centers for proprietary data, they have evolved. In the 2020s, they are more likely to be remote facilities or networks of facilities owned by cloud service providers housing virtualized infrastructure for the shared use of multiple companies and customers. This note offers an overview of the types of data centers, including enterprise, cloud, and colocation; a brief history of data centers; and data center statistics, including especially costs and energy efficiency. With the rise of artificial intelligence, the Internet of Things, and edge computing, among other innovations, data centers are in high demand and evolving to meet it. This note includes video of Jim Miller, a tech industry executive and an expert in the field, discussing hyperscalers, the early days and evolution of data centers, and what's involved in scaling a data center. Along with related notes, this technical note is updated regularly in response to changes in the technology and industry. At the Darden School of Business, it is taught in an MBA course on "Digital Operations."
This field-based case puts students in the role of Nikki Brown, a Black female police officer at the St. Louis County Police Department (SLCPD). After repeatedly witnessing and experiencing acts of discrimination, favoritism, harassment, and racism within the SLCPD, Brown must decide whether to file a formal complaint or remain silent. Reporting illegal, immoral, or unethical behavior within a long-entrenched US police culture could cost Brown her job. Conversely, opting for silence could mean Brown is implicitly perpetuating unethical practices that often harm other officers and citizens like herself. With the pressure mounting, which should Brown choose her career or her conscience? This case has been taught at the Darden School of Business in the first- and second-year MBA elective Talent Management. It is ideal for graduate and executive MBA courses, especially those centered around organizational behavior; talent management or human resources; and diversity, equity, and inclusion.
This note introduces cybersecurity what it is, why it is needed, and current practices and solutions. While the broad issue of information security is a concern for governments and individuals, this note focuses on internet-related risks facing private-sector enterprises. Cybersecurity is, or should be, front and center in the minds of leaders at companies that are adopting and applying digital technologies to transform how their companies operate. Those technologies continue to advance in some cases at mind-boggling speed. Think artificial intelligence (AI), cloud solutions, enterprise integration, 5G communication, the Internet of Things (IoT), robotics, and more. While these technologies promise to increase an enterprises efficiencies and deliver better customer services, they also introduce a new business risk: cyber risk. Cyber risk means risk of disruption of an enterprises operations, damage to its reputation, or both, caused by the deliberate actions cyberattacks of outsiders (cybercriminals) or enterprise insiders. Once thought to be the responsibility of an enterprises information technology (IT) department, cybersecurity the prevention of and response to cyberattacks is now every employees responsibility, from hourly workers to the board of directors. At the Darden School of Business, this note is taught in the second-year elective Digital Operations class; it would also be suitable in a module covering cyber risks.
This case study focuses on the emergence of art finance, a way to provide liquidity to art collectors by structuring loans using works of art as collateral. Sayuri Ganepola, global managing director of Art Finance at Christie's, provides a view of art lending from Christie's perspective and describes Christie's competitive advantages in this new line of business. Ganepola has to decide whether to lend against a portfolio of art and what risks such a loan could entail, given her overall portfolio of art loans. Students receive information on the collateral and are asked to provide recommendations. The field-based case provides background on the history of Christie's, its businesses, and its art lending operations. The case also discusses the art market and its historical returns on investment. Students have the opportunity to consider art as collateral for a loan and to discuss the challenges of risk management in art lending. At the Darden School of Business, this case is taught in "Financial Institutions and Markets," a second-year MBA elective. It is ideally suited for a course on financial institutions, money and banking, and risk management.
Rex Geveden and Robb LeMasters, CEO and CFO of BWX Technologies, Inc. (BWXT), were concerned that investors and analysts did not fully appreciate the company's transformation from a nuclear reactor provider to the US Navy and Canadian utilities to a multi-product line firm across some of the most compelling growth areas in the nuclear power and propulsion end markets. They aimed to convey this shift and highlight growth opportunities during Investor Day 2021. The executives wondered whether they successfully communicated BWXT's transformation journey and if the market would value the company accordingly.
On March 10, 2023, Silicon Valley Bank (SVB) went into receivership. At the time, it was the second-largest US bank failure in history. What happened? The case briefly describes the story of SVB, from its origin in the early 1980s to March 2023, and focuses on the events surrounding its demise. The case discusses in detail the issues that led to SVB's bankruptcy, in particular interest-rate risk, asset-liability management (ALM), inadequate stress testing, risk management more broadly, corporate governance, regulation, issues related to the bank's focus on venture capital (VC) and private equity (PE) loans, and its exposure to the technology sector. The case also describes the Fed's reaction after the bankruptcy. The SVB episode offers an important learning opportunity that touches many facets of a bank and its environment. It has several clear messages about bank management leadership. The case is well suited for a course on financial institutions, money and banking, and risk management. Ideally it would be positioned after credit, interest-rate, and liquidity risks have been covered, so that students have a better understanding of these concepts before they tackle this case; it could also be used as an introduction to the banking model, its key risks, and the role of the Federal Reserve. At Darden, it is taught in the second-year elective, "Financial Institutions and Markets."
Alliant Credit Union (Alliant) had to decide whether to partner with Upstart Holdings, Inc. (Upstart), a financial technology (fintech) company that offered a platform to connect borrowers and lenders. Upstart's underwriting models used artificial intelligence (AI)/machine learning (ML) algorithms to analyze both standard financial variables and "alternative data" on borrowers (e.g., their education history). Studies found that Upstart's approach to underwriting resulted in fewer defaults and more approvals relative to conventional models based on credit scores. However, the use of alternative data in the underwriting process raised fair-lending concerns. In 2020, a nonprofit claimed that Upstart's use of educational variables led to discriminatory outcomes. While Upstart disputed this claim, it agreed to reform aspects of its models to ensure fairness. This case requires students to evaluate tradeoffs associated with the use of new data and technology in the underwriting process. On the one hand, Upstart's underwriting models expanded access to credit, particularly benefiting borrowers with limited credit histories. On the other hand, the use of alternative data raised fairness concerns because the variables were often correlated with factors such as race, ethnicity, and age. The case also provides an opportunity to discuss fair lending laws in the United States, the economics of underwriting, and funding models used by fintech firms. At Darden, this case is used as part of a second-year MBA elective on fintech. It is part of a unit that studies applications of fintech to borrowing and lending. The case could also be used in classes on banking and financial institutions or corporate social responsibility.
In mid-2008, hedge fund manager Steve Maiden was riding high. The self-assured Maiden had launched his own fund in late 2006 and it was substantially outperforming the market. Investors wanted in, and Maiden's personal wealth exceeded even his own lofty expectations. But then things began to fall apart. The global financial crisis hit and several of Maiden's large investments were imploding. His efforts to capture some value hinged on reaching an agreement with several partners. To buy time until an agreement could be reached, Maiden began to falsify his fund's returns to investors. He continued to do this for over two years. In May 2013, Maiden pleaded guilty to securities fraud and was given a seven-year prison sentence, leaving behind his wife and two young children. The Steve Maiden case series (consisting of UVA-OB-1437, UVA-OB-1438, and UVA-OB-1439) provides an inside look at the rise, demise, and resurrection of an ambitious young man whose profile is not unlike that of many MBA students. It gives students a unique opportunity to witness events as they unfolded, and read Maiden's own words about his thoughts and feelings as things unraveled, as well as his candid reflections on what he learned from the experience.
In mid-2008, hedge fund manager Steve Maiden was riding high. The self-assured Maiden had launched his own fund in late 2006 and it was substantially outperforming the market. Investors wanted in, and Maiden's personal wealth exceeded even his own lofty expectations. But then things began to fall apart. The global financial crisis hit and several of Maiden's large investments were imploding. His efforts to capture some value hinged on reaching an agreement with several partners. To buy time until an agreement could be reached, Maiden began to falsify his fund's returns to investors. He continued to do this for over two years. In May 2013, Maiden pleaded guilty to securities fraud and was given a seven-year prison sentence, leaving behind his wife and two young children. The Steve Maiden case series (consisting of UVA-OB-1437, UVA-OB-1438, and UVA-OB-1439) provides an inside look at the rise, demise, and resurrection of an ambitious young man whose profile is not unlike that of many MBA students. It gives students a unique opportunity to witness events as they unfolded, and read Maiden's own words about his thoughts and feelings as things unraveled, as well as his candid reflections on what he learned from the experience.
In mid-2008, hedge fund manager Steve Maiden was riding high. The self-assured Maiden had launched his own fund in late 2006 and it was substantially outperforming the market. Investors wanted in, and Maiden's personal wealth exceeded even his own lofty expectations. But then things began to fall apart. The global financial crisis hit and several of Maiden's large investments were imploding. His efforts to capture some value hinged on reaching an agreement with several partners. To buy time until an agreement could be reached, Maiden began to falsify his fund's returns to investors. He continued to do this for over two years. In May 2013, Maiden pleaded guilty to securities fraud and was given a seven-year prison sentence, leaving behind his wife and two young children. The Steve Maiden case series (consisting of UVA-OB-1437, UVA-OB-1438, and UVA-OB-1439) provides an inside look at the rise, demise, and resurrection of an ambitious young man whose profile is not unlike that of many MBA students. It gives students a unique opportunity to witness events as they unfolded, and read Maiden's own words about his thoughts and feelings as things unraveled, as well as his candid reflections on what he learned from the experience.
In July 2022, Celsius Network (Celsius), a cryptocurrency (crypto) network, filed for bankruptcy. Celsius was a "crypto bank" but often acted as a hedge fund. It was taking deposits in cryptos such as Bitcoin (BTC) and Ether (ETH), promising a sizeable yield to the depositors and then lending these out to institutional investors, or more aggressively to decentralized finance (DeFi) protocols which were promising an even higher yield (but with a higher risk, of course). The case examines the DeFi ecosystem, its key players, and discusses key building blocks such as stablecoins and their role in it. The case can be taught in a course on financial institutions, capital markets, or fintech.
This case is set in 2022, a year after Mary Barra, chair and CEO of General Motors (GM), set a goal to phase out production of gas-powered (internal combustion engine [ICE]) vehicles and only sell electric vehicles (EVs) by 2035. At the time of the announcement, no other large automaker had set a target date for exclusively producing EVs. GM said it would invest $35 billion over the next five years to build its EV production capabilities and capacity, including the manufacture of batteries. As one management scholar stated, ""There is a huge disruption coming."" The protagonist is a prospective employee who would lead investor relations for GM, and who is interested in learning about the company's objectives, potential pitfalls, and greatest strengths. She will need to evaluate how to communicate the EV transition to stakeholders, and the GM employees are one specific audience. The case introduces opportunities to discuss labor unions, a powerful force in the US automobile industry. A variety of financial tables and graphs in the case exhibits enable instructors to focus on topics they feel are most appropriate for their individual courses.
On her first day as the new CEO of Citigroup Inc. (Citi), Jane Fraser announced Citi's commitment to net-zero greenhouse gas emissions (GHG) by 2050. The case examines the implications of such a decision, including the need to work both on Citi's own operations as well as help transition those of its clients. The case allows for an examination of the green bond market, and separately, the market of social bonds and sustainability-linked bonds. The case discusses the various principles and frameworks for green and social bonds and their potential benefits and risks.
In January 2022, Shiftsmart cofounder and CEO Aakash Kumar wanted to capitalize on the company's momentum. Shiftsmart connected workers on a shift-by-shift basis to some of the world's largest corporations and government agencies. Fractionalizing traditional jobs into shifts was profoundly disrupting the idea of labor. At the time, the company operated in three verticals-Retail Insights, Flexible Contact Centers, and Convenience Retail. Kumar was considering whether to move up-market to professional services (such as tax preparation); attack the large, growing, and critical labor vertical (health care); or invest in fast-growing but highly competitive grocery delivery. The case provides students with the opportunity to examine platforms, analyze network effects, and evaluate the three expansion options Kumar was considering. It describes Shiftsmart's business model and its proprietary platform, which was the operational lifeblood of the company. This case is taught in Digital Operations, a second-year MBA elective course at the Darden School of Business. It could also be used in courses focused on digital operations or strategy and in those that consider how labor is changing.
In 2013, Jonathan Martin, a starting lineman for the Miami Dolphins, left the team. He cited the negative effects of the team's culture-specifically, bullying and mistreatment by several of his teammates-on his well-being, saying it had contributed to depression and thoughts of self-harm. The news of Martin's departure exploded across media channels in the following days. At the behest of the Dolphins' ownership, the US National Football League (NFL) hired a law firm to investigate. On February 14, 2014, the law firm's findings (called the Wells Report) were released to the public, and they were damning. There was clear evidence of harassment targeting Martin as well as others on the Dolphins team. But while some within the NFL reacted to the findings with dismay, others said that playing football was ""a man's job,"" and indicated that the behavior called bullying and harassment was simply part of the high-testosterone culture. This public-sourced case and its follow-up, ""A Dolphin Bullied: Jonathan Martin's NFL Experience in Miami (B)"" (UVA-E-0481) use the context of the NFL to expand student understanding of gender binaries as shaped by racial and socioeconomic factors, and to discuss possible interventions to diminish turnover and promote inclusion. They promote a discussion of how underrepresented individuals navigate a work environment where they are not prototypical. This case also allows for a discussion of mental health as part of a broader focus on wellness at work.
This case should be used after students have read "A Dolphin Bullied: Jonathan Martin's NFL Experience in Miami (A) (UVA-E-0477). It provides a brief update on actions taken by different stakeholders following the release of the Wells Report in 2014. The case also directly addresses issues of sexuality in the NFL.
This case follows a fictional hedge fund manager as she works to finalize an investment thesis on Comerica Incorporated to present to her manager, who is undecided as to whether the fund should buy (go long) or sell (short) the stock. Assessing Comerica's value and outlook is complex. She needs to have a view on Comerica's future earnings, which are clearly linked to the gravity and duration of the COVID-19 pandemic and the resiliency of the banking sector as a whole. This case is taught at Darden in a course on "Artificial Intelligence and the Future of Work"; it would also be well suited for in-person or online MBA courses in banking and financial markets, new technologies, or communication and crisis response.
In late October 2020, hedge fund analyst Maya Botti was evaluating the decision to vote for the proposed merger of Forum Merger IIa special purpose acquisition company (SPAC), with Ittella International, a plant-based food company; if the SPAC shareholders voted in favor of the merger, Botti also had to recommend that the hedge fund's leadership redeem the hedge fund's shares in Forum II, sell the shares in the open market, or continue as shareholders of the merged company. The case provides an opportunity to discuss SPACs, including their structure; key players and participants in them; and their risks, rewards, and potential pitfalls. The case also provides an opportunity to discuss differences between regular IPOs and to compare and contrast IPOs to SPACs. This case can be taught in a second-year elective course on capital markets, financial institutions, and markets or capital raising. It can fit in a module that explores financial engineering and instruments such as collateralized debt obligations or that discusses ways of going public and contrasting them with regular IPOs.
In October 2021, Miles Arnone, CEO of Re:Build Manufacturing (Re:Build), was thinking about Re:Build's next acquisition. Arnone contemplated the pros and cons of each of three candidate companies as he prepared for a discussion with his colleagues. His associate had synthesized the results of a screening assessment for the three potential acquisitions, one element of Re:Build's acquisition decision-making process. Arnone and others had launched Re:Build in 2020 to help rejuvenate the US industrial base. The vision entailed acquiring and scaling manufacturing and engineering businesses into a tightly integrated portfolio to leverage technical capabilities across the enterprise. Adding a company to the Re:Build stable was no small decision, and getting it right would be another step forward in creating a "new" type of conglomerate-one where each company worked together to share technology, knowledge, and ideas. Which company (if any) offered the best fit with the overarching strategy? This partially disguised field-based case includes discussion of Re:Build's company structure, decision-making process, and acquisition criteria, as well as data about its current companies and the three under consideration for acquisition. This case is taught in "Operations Strategy," a Darden School of Business elective MBA course. It could also be used in other MBA courses and Executive Education programs that address entrepreneurship, private equity, and general strategy.