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How Corporates Can Best Engage With Startups

The Horizons Tracker

From the entrepreneurs perspective, there is little incentive therefore to share their ideas and expertise with the large companies, with many believing that any benefits to doing so were heavily weighted in favor of the big company. Ensure there is an independent cost center.

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How Companies Can Better Work With Startups

The Horizons Tracker

The researchers believe that their findings can help corporate venturing units maximize both their return and impact in a variety of ways, and they make six recommendations to achieve the best results: Design metrics and incentives oriented towards value integration. Ensure there is an independent cost center.

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The First Step to Fixing U.S. Manufacturing

Harvard Business Review

manufacturers do source from domestic suppliers, they tend to regard them purely as a cost center. Past work by McKinsey found that inefficiencies in manufacturer-supplier interactions add up to roughly 5% of development, tooling, and product costs in the auto industry. Even when large U.S. But the future trajectory of U.S.

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How One Company Made Its Analytics Investment Pay Off

Harvard Business Review

The ABU was set up as a centralized profit center with ambitious targets and with direct reporting to the chief operations officer; most often, similar units are organized as cost centers with no specific targets. Incentive scheme alignment. Two main traits distinguish GFNorte’s ABU incentive scheme.

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Develop Your Company’s Cross-Functional Capabilities

Harvard Business Review

On one hand, functions are treated as sources of expertise within the enterprise, which gives them an incentive to emulate world-class functions in other companies—to whom they will inevitably be compared. When all cross-functional teams are temporary, an organization has little incentive to overcome these hurdles.

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The Internet Shouldn’t Run on Dirty Energy

Harvard Business Review

Here’s why now is the time right to invest in renewable energy sources for the internet: Renewable energy can help reduce a cost center. Most credible projections expect the cost of renewable electricity to drop and many traditional sources of electricity to increase.

Energy 8
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3 Mistakes in U.S. Health Care That Emerging Economies Can’t Afford to Repeat

Harvard Business Review

Pay physicians for health outcomes rather than the number of procedures or visits; systematically incentivize prevention and primary care; and turn hospitals into cost centers rather than revenue engines. All of this requires a better understanding of how health transactions work and how much they cost.