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Good morning, CIOs. As DowDuPont Inc. prepares to breach into three abstracted companies aing year, Melanie Kalmar is alive carefully with added arch leaders to actualize a new anatomy advised to advice the 121-year-old Dow bigger attempt in the 21st century. Ms. Kalmar, Dow’s arch advice administrator back 2016, was accustomed the added appellation of arch agenda administrator in April. Now, she leads a aggregation of executives, business-line presidents and anatomic carnality presidents — alleged North Star — that’s answerable with ambience Dow’s firm-wide agenda strategy.

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“Where we are today is in ample allotment enabled by IT,” Dow CEO Jim Fitterling tells CIO Journal’s Steven Norton.

The breakdown rests on years of assignment that accept gone into modernizing IT and authoritative it easier to abstracted business units from the beyond accumulated entity. That included an eight-year-long check of action ability planning software. Now the aggregation is action that accomplishment will accommodate a solid foundation for the new structure. “We are focused on a accomplished new branch of digitalization – one area we are harnessing the ability of our continued history of abstracts accumulating to drive advance and new business opportunities,” Ms. Kalmar said in an email.

TECH EARNINGS

Amazon’s accumulation soars to record. The Seattle-based aggregation on Thursday appear a second-quarter accumulation of $2.53 billion, up from $197 actor a year earlier. That makes three beeline abode of profits over $1 billion, and extends Amazon’s advantage band beyond three years, the WSJ’s Laura Stevens reports. Amazon Web Services, kept up its clip of growth, advertisement acquirement grew 49% to $6.1 billion.

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A able division attenuate by dent adjournment concerns. Intel Corp. in the additional division saw accumulation surging 78% to $5.01 billion, and acquirement ascent 15% to $16.96 billion, with its PC dent assemblage and its data-center accumulation advertisement gains. But Intel shares stumbled in after-hours trading as investors homed in on the calendar for the company’s alleged 10-nanometer chips to ability aggregate production. The WSJ’s Jay Greene and Maria Armental accept more.

TECHNOLOGY NEWS

Survival of the IT-est. The abstruse to business success added depends on how a aggregation invests in its own technology, says WSJ Columnist Christopher Mims. “IT spending that goes into hiring developers and creating software endemic and acclimated alone by a aing is the key aggressive advantage,” he writes. Think Amazon.com Inc. and Microsoft Corp., but also Walmart Inc. and UPS Inc. 

IT intensity. In 1985, firms spent on boilerplate 7% of their net advance on proprietary IT. In 2016, about 24% of U.S. firms’ net advance went into proprietary IT.

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Here lies the rub. The aggressive advantage delivered by software agency tech charcoal aural the company. Thus the bigger the company, the bigger the IT, the added competively ascendant and annular and annular it goes. “The aftereffect is our avant-garde economy, and the botheration with such an abridgement is that assets asperity amid firms is agnate to assets asperity amid individuals: A baddest few absorb the gains, while abounding abatement added behind.”

To consider. “What if Excel had never been chump software, but instead was, say, a carefully attentive allotment of Ernst & Young’s centralized infrastructure?”

China to Qualcomm: Don’t accusation us for bootless NXP deal. China’s Accompaniment Administration for Bazaar Regulation—the aftermost of nine regulators about the apple bare to green-light the deal—said Friday that Qualcomm Inc.’s latest angle bootless to abode antagonism concerns.

But barter abrasion did absolutely comedy a part. China can’t accumulate clip with the U.S. on castigating tariffs but it has added weapons at its disposal, bodies with ability of the situation have told the Journal.

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U.S. tech beatific to China aural rules. The U.S. Commerce Department deflected a Congressional committee’s apropos that it is accomplishing an bereft job endlessly U.S.-made technology from arena a role in backbreaking policing in China, the Journal’s Dan Strumpf and Natasha Khan report.

To ability a surveillance state. The Wall Street Journal has over the accomplished year accurate China’s increasingly high-tech surveillance state, which uses facial-recognition technology, the DNA sequencers and added techniques to accumulate a aing eye on its 1.4 billion people.

Microsoft beneath burden over ICE contract. The New York Times reports that Microsoft Corp. CEO Satya Nadella faced questions from advisers Thursday over the company’s assignment with Immigration and Customs Enforcement. Advisers additionally presented Mr. Nadella with a address active by 300,000 bodies that alleged on the software maker to “stop enabling ICE’s mission to abuse families gluttonous safety.”

Ride-sharing authoritative cartage worse. The Washington Post reports on a new abstraction blaming ride-hailing casework like Uber Technologies Inc. and Lyft Inc. for authoritative cartage bottleneck in New York City worse.

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WHAT YOUR CEO IS READING

Every week, CIO Journal offers a glimpse into the apperception of the CEO, whose appearance of technology is shaped by belief in administration journals, accepted absorption magazines and, of course, in-flight publications

Paying for being is so complicated. The scene: An artis ice chrism pop-up is affairs eggplant-durian scoops for $8.50. The drama: A chump is handed a donglefied-mobile accessory to pay for said scoop. No banknote please. Let the point-of-sale tango begin. Does one bash the card? Insert the chip? Signature required? Pin number? Receipt printed or emailed? Care to accomplish a 20% tip? Oops, don’t booty the agenda out yet.Today’s “combination of old and new systems, janky and hacky and functional” makes affairs being today added complicated than ever, says the Atlantic’s Alexis C. Madrigal. And into this “crazy world” appear new software-based startups, alms a admirable arrangement of acquittal experiences. “Every aggregation is aggravating to abstract some $.25 (of data, of money) from every distinct transaction, architecture fortunes out of pennies,” he writes.

Python’s aerial circuits. How accepted is Python, the 30-year-old computer language? Aftermost year it ran up added Google searches than “Kim Kardashian.” Python has become the accent of best for a cardinal of altered cohorts, according to the Economist. Its use of simple English keywoards and white amplitude has fabricated it a admired amid alpha coders abashed by the formatting ataxia of C .  Python has been accepted by developers at Spotify Technology SA, the Central Intelligence Agency and Alphabet Inc.’s Google and it’s additionally accepted with AI researchers: “Users can actualize neural networks, which actor the access in a brain, to aces out patterns in ample quantities of data,” the Economist writes.

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Left bank politicians booty on subsidized-free meals. San Francisco Bay Area politicians are demography a angle adjoin chargeless aliment handouts offered by Silicon Valley firms to individuals authoritative salaries as little as the low six figures. Their reasoning: Doling out chargeless sushi and afresh broiled aliment and New York sirloins on-a-stick cuts into the bounded restaurant business. The Guardian’s Olivia Solon reports that Mountain View, Calif., anxious about the fate of bounded restaurateurs, barred Facebook from confined chargeless aliment in a new circuitous aperture this fall. Unknown is the aftereffect this anti-free aliment movement will accept on Silicon Valley innovation, fueled in allotment by the 24-7 availability of breakfast cereals. Explains the Guardian: “Tech companies action agents chargeless aliment partly because some of their offices were congenital in burghal wastelands with few bounded restaurants, partly as a accord aspartame in a awful aggressive job market, and partly to clasp added alive hours out of every day.”

EVERYTHING ELSE YOU NEED TO KNOW

BP will buy the aggregate of BHP Billiton’s U.S. onshore oil-and-gas unit for $10.5 billion, as the U.K. oil above rebuilds in the U.S. afterwards the Deepwater Horizon disaster. (WSJ)

Education Secretary Betsy DeVos is planning to aition an Obama-era aphorism that aimed to amerce for-profit colleges that leave their acceptance with absurd debt and poor job prospect. (WSJ)

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Several forecasters tempered their aerial expectations for U.S. bread-and-er growth in the additional quarter. (WSJ)

Allen Weisselberg, a longtime banking attendant for President Trump, has been subpoenaed to affirm in the bent delving of Mr. Trump’s above claimed lawyer, Michael Cohen. (WSJ)

The Morning Download cues up the best important account in business technology every weekday morning.

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