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The Rise of FinTech in Supply Chains

Harvard Business Review

A new type of services company could transform global supply chains: Financial technology companies that act as intermediaries in facilitating transactions between a company and its suppliers. The use of FinTechs allows suppliers to access funding at the multinationals firm’s lower cost of capital.). Insight Center.

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6 Digital Strategies, and Why Some Work Better than Others

Harvard Business Review

Digital technology has been roiling markets and disrupting companies for more than two decades, but despite that lengthy history, incumbents are still struggling to enact and deliver on digital transformations. Sponsored by DXC Technology. One example is P&G’s Oral-B toothbrush with Bluetooth-enabled digital guidance.

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Should Companies Retain "Strategic" Cash?

Harvard Business Review

Strategic cash also can be used to finance long-term reinvestment programs in the business—which is especially valuable to companies in capital-intensive industries (e.g., high technology or pharmaceutical) that are investing in projects with uncertain long-range payoffs. energy or telecom) or research-intensive industries (e.g.,

Company 13
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What U.S. CEOs Should Do with the Money from Corporate Tax Cuts

Harvard Business Review

The cost of capital is at historic lows, averaging below 6% for most large U.S. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders.

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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

Repaying such profits to shareholders through share repurchases is better than misinvesting that cash to diversify into unrelated businesses in which management has no expertise or overinvesting in projects that may not return cost of capital. Consider three examples. What would better measures be? Creative accounting measures.

EPS 8
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When "Creative Destruction" Destroys More than It Creates

Harvard Business Review

Would shareholders of Kodak — which had some of the earliest digital photography technology — agree that its destruction made evolutionary sense, or would they echo Harvard Professor John Kotter's remark that it was the result of "complacency"? real revenue and profit growth and earning their cost of capital has steadily declined.

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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. It is through continuously making incremental progress in lowering costs and increasing revenues that firms achieve competitive advantage in their industry. Here are four things leaders can do.