In the Innovation of Firms, a course in Tekedia Mini-MBA, I explained Symphonic Innovation thus: “Symphonic Innovation is innovation that is not domain-specific, but is anchored on a unified and harmonious approach in the deployment of technology components to accelerate productivity gains and cushion competitiveness. With Symphonic Innovation, you do not deploy and launch for blockchain, only to be tripped by AI or big data; you launch with a mindset that these technologies are like extended musical compositions which must be carefully organized to make the orchestra an unforgettable experience.”

What happened to Facebook Inc today revealed a case study on how to build modern technology stacks. You do not build in disparate structures with no order. Rather, you see your technology as a musical orchestra with instruments which must be harmonized to deliver an unforgettable memories across platforms and product nexus.

Facebook is back after a major outage that lasted for about six hours Monday. The outage impacted users across its suite of apps, in addition to its employees — internal systems and tools stopped working, as well. The social media behemoth faces mounting scrutiny — a whistleblower, who is set to testify before Congress Tuesday, told CBS’s “60 Minutes” Sunday that Facebook “amplifies hate, misinformation and political unrest.” The cause of the outage is still unknown, but security experts believe it could have been a Domain Name System (DNS) problem. (LinkedIn)

This is the age of unification and we have just learnt that Facebook, WhatsApp, Instagram, Oculus VR, Messenger, etc are powered under one unified stack making it easier for those great experiences we get across the platforms. Sure, the revelation came through a freeze but at least we know what they do at the highest level.

Go back to your office and ask your CTO and CIO if they can learn from this playbook, of course building redundancies to avoid a protracted failure when bad things happen.

Nigerian and African founders, what can we learn from Facebook, Instagram, WhatsApp, etc going down at the same time. On Twitter, Facebook communications exec Andy Stone  has confirmed this Great Social Media  Freeze, “We’re aware that some people are having trouble accessing our apps and products. We’re working to get things back to normal as quickly as possible, and we apologize for any inconvenience.” Founders, what is the lesson here?

Sure – it is bad everything is down but if you look at the financial improvement on what Facebook Inc has done on stacking all the elements on one core, you will see why Facebook Inc is immensely profitable. I expect this to be DNS related, and it goes to the core infrastructure which runs the multi-billionaire-dollar empire.

It is a very risky technology strategy but despite the current offline show, it is certainly the best way to build modern tech systems: you invest to build the foundational stack, and then you can drop new things on top, making everything to become variable costs from there onwards. With that, you rack up marginal cost improvements across product lines, building moats which no one can compete with.

The troubles of embattled Chinese property conglomerate Evergrande, have taken a new turn. The company shares and its property management unit were suspended from trading in Hong Kong on Monday, a move that has left all hopes of recovery in further strains.

Evergrande is working on selling majority stakes as it has repeatedly missed payments. The company has watched helplessly as many subsidiaries crumble.

The shares were halted “pending the release by the company of an announcement containing inside information about a major transaction,” Evergrande said in a statement. The property services unit said the shares were suspended ahead of an announcement “pursuant to the Hong Kong code on Takeovers and Mergers which constitutes an inside information and a possible general offer for the shares of the company.”

Evergrande’s listed electric vehicle unit, also running out of cash, continued to trade, rising 13% on Monday afternoon, Nikkei Asia reports.

The company’s shares have lost 80% of their value this year as it has also missed payments to banks, suppliers, bondholders and other investors.

About two weeks ago, in an effort to calm the storm, Evergrande hired financial advisers to proffer solution, as it has exhausted all options available to the company.

To compound Evergrande’s woes, the Chinese authorities have kept their distance, only asking banks to support the property sector and supply the market with liquidity to contain the fallout. The shares’ suspension in Hong Kong Stock Market has however, taken Evergrande’s predicament to a new height.

The company has a debt profile of over $300 billion, and has been desperately trying to offset some of its liabilities compounded by the reforms in China’s property industry.

Evergrande said in a recent filing that it has 240 billion yuan ($37.2 billion) in total debts due over the next year, compared with cash and bank deposits of 161.6 billion yuan.

Having touted selling of stakes, the conglomerate has flagged shares in Evergrande Property Services with more liquidity than other subsidiaries, including the parent company.

Last week, Evergrande reached a deal to sell a 19.9% stake in regional lender Shengjing Bank for $1.5 billion to a state-owned company, but the bank has demanded that all the proceeds be set off against sums the developer owes it, the report says.

Per Nikkei, Evergrande Property reported a 68.6% rise in net profit in the first half of 2021 from a year earlier, while also posting a rise in area under management and cash on hand. Its shares have declined 40% this year though, dragged down by the struggles of its parent. Evergrande Group owned 60.96% of the property services unit as of May 18, according to Capital IQ data.

While over 15 other stocks were also suspended from trade Monday morning in Hong Kong, including fellow Chinese property company Hopson Development Holding, Evergrande has added to its existing worries, as it may impact the company’s chances of selling some stakes. Nikkei said some Chinese local media reported that Hopson had agreed to buy 51% of Evergrande Property in a 40 billion Hong Kong dollar ($5.14 billion) deal. If the deal succeeds, the value of Evergrande Property’s shares will stay at a premium of more than 40% to last week’s closing price.

Things have been falling wide apart as investors desert the troubled company. And with no help coming from China, Evergrande is watching its chances of payment get slimmer. The company warned investors last month that there is no guaranteed that it would beat its payment deadlines, unless it sells off enough assets or secure new investments.

It missed coupon payments on two offshore dollar bonds but has 30 days to make good on those debts.

Bloomberg reported on Monday that a $260 million bond guaranteed by Evergrande had matured without repayment a day earlier. The note was issued by Jumbo Fortune Enterprises, a joint venture involving Hengda Real Estate, Evergrande’s domestic property arm, Nikkei reported.

Other attempts by Evergrande, including offering apartments, parking lots and commercial space to suppliers and other creditors, to settle debts, has yielded little result as interest in properties, especially condominium, has waned due to rising concerns about its future.

Exacerbating the woes, Evergrande is also being confronted with desertion from partners. Nikkei reported that some longtime backers of Evergrande, such as Hong Kong developer Chinese Estates and its leaders, have also been deserting the company. And last month, Chinese Estates, the second-largest shareholder in Evergrande, flagged plans to exit its entire shareholding.

With the conglomerate taken hit on all sides, the world economies are beginning to double their readiness for the worst.

Tomorrow, Oct 5, we will freeze enrollment into the 6th edition of Tekedia Mini-MBA. So, if you want to attend our world-class business school in 2021, you have just hours to get in. Midnight tomorrow  (WAT), we will close the registration. Tekedia Mini-MBA is an impactful business school. This week, we have business veterans from AXA Mansard and TrustBanc Capital  with my humble self leading the live editions in Zoom.

Go here and register.