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Why HR Really Does Add Value

Harvard Business Review

Adding legitimacy to this skepticism are new technologies that enable automation of routine transactions, offshoring and shared service organizations that specialize in managing many tactical elements of HR. Within the first year of our effort net sales increased 27 percent while fixed costs were reduced by 40 percent.

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How to Prepare Your Supply Chain for the Unthinkable

Harvard Business Review

Most companies focus on minimizing costs rather than maximizing flexibility, which would entail making large investments in supply chains. For instance, many companies feel they don't need to develop alternatives to Japanese suppliers because they buy so little from them nowadays. One way of doing that is to outsource production.

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Who Wins in the Gig Economy, and Who Loses

Harvard Business Review

A full-time job provided the steady income needed to support our traditional version of the American Dream: the highly leveraged, high-fixed-cost house; the cars; the latest consumer goods. If you had a full-time job, you won. These skilled and entrepreneurial workers win in the gig economy by moving from good jobs to great work.

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What BMW’s Corporate VC Offers That Regular Investors Can’t

Harvard Business Review

To fill the void and build such a new BMW startup unit, Gimmy partnered with an experienced innovation manager from BMW, Matthias Meyer. And the fixed cost from “touchpoint-to-pilot” are immense. In essence, the venture client, instead of equity, buys the technology of a startup when it is still a venture to do so.

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When M&A Is Not the Best Option for Hospitals

Harvard Business Review

Many hospitals system executives underestimate the cost of both pursuing an acquisition and managing the post-merger integration.). The advantages that hospital systems can derive from scale fall into four groups: Classic economies of scale focus on lowering the cost per unit of care delivered (e.g., Affiliation models.

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3D Printing Will Revive Conglomerates

Harvard Business Review

Hailed in the 1960s as bastions of sophisticated management, they used cheap financing to acquire, then rationalize, many family-owned firms. As the technology develops, GE could revamp this and other plants into general printer farms supplying all of its manufacturing divisions. But there’s little attention to synergies.

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What Could Amazon’s Approach to Health Care Look Like?

Harvard Business Review

To the extent that the technology Amazon developed for Amazon Go can be turned to services beyond grocery shopping, health care may be one of the early beneficiaries. If so, Amazon could find itself as an outsourced supplier of IT services to the delivery systems that are currently trying to do this integration on their own.