MANAGING in the

NEW WORLD

A lot of discussion has gone in to whether certain companies will survive the ongoing age of the platform economy. But more pertinently, companies need also assess whether there may be something to do with the industry itself. The credit to the likes of Uber, Airbnb, Facebook, You Tube and Amazon may go beyond merely the companies themselves, but also to the respective sectors. Platform transformations are best suited to industries where the expected output is precisely determined, regulations are lower and where spare capacities exist. It also depends whether a company derives value from the information it generates or its physical assets. If it is the former, then data warehousing can be an important source of revenue, beyond the mere services provided. Another matter of divergence is the mode of transaction. Platforms thrive when the payment method is simple and modular, rather than when complex and interdependent. Platforms also rely information asymmetry in the concerned market.

Source:https://mitsloan.mit.edu/ideas-made-to-matter/how-to-tell-if-your-industry-ready-platform-transformation

Uploaded Date:18 October 2019

A Behavioral Theory published in 1965 remains a classic in management literature. This book was written by Robert McKersie, who was then associated with the University of Chicago as a teacher. His co- author was Richard Walton. Four sub- processes have been defined here, which explain the fundamentals behind human behavior and for talent management. The first two of these sub- processes are interlinked. They are the Distributive Bargaining and Integrative Bargaining. The first one is about how when one side gains, the other invariably loses. The other is to maintain a balance so benefits reach the maximum numbers. Another is Attitudinal Restructuring. Here, there is better understanding of how each side feels during the bargaining process. The fourth aspect is the intra- organizational part during negotiations. Due to the extensive ground covered by the book, it has aged very well even five decades on.

Source:https://mitsloan.mit.edu/ideas-made-to-matter/a-classic-negotiation-framework-still-applicable-after-50-years

Uploaded Date:14 October 2019

Several philosophies and business ideologies have been devised to acquire and retain new customers, while also keeping the revenues onside. TQM (Total Quality Management) and ERP (Enterprise Resource Planning) were two of the most prominent ideas floated successfully immediately after the Second World War. They all solved problems at that time, but now with the evolution of business, different approaches are required. Even the world of management consulting is taking a hiatus from the frontline, with many companies realizing that healing oneself is easier than enlisting the services of any third party. Business customers too nowadays want the same kind of services that individual customers expect. One company that is at the forefront of this evolution is German tech firm SAP. They were initially primarily in to products, but are now involved in a wider range of holistic business solutions. Chicago- based 37 Signals and its offshoot Basecamp is another such prominent example of the turnaround.

Source:https://www.strategy-business.com/blog/The-evolution-of-problem-solving?gko=9a381

Uploaded Date:14 October 2019

The US state of California, that possesses the country’s largest economy, has also been the trendsetter when it comes to laws and regulations surrounding various industries such as housing, energy, automotive and technology. There is a new law titled the Assembly Bill 5 or AB5, which threatens to have a major impact on the ongoing trend of the gig economy. This bill was passed at both the Senate as well as the state House some time back. This law takes effect from the first day of 2020. It states that all independent contractual workers, need to be registered as employees and thus be part of all benefits and insurance that regular employees avail. This will have a massive impact on talent recruitment, as the law affects trucking, publishing, cleaning and rideshare companies. While the law is popularly known as the ‘Uber Law’, Uber considers itself out of its requirements. The ongoing gig economy, with its army of more than a million freelance employees in California could be severely impacted, either way.

Source:https://knowledge.wharton.upenn.edu/article/california-bill-5-gig-economy/

Uploaded Date:03 October 2019

Payal Arora, who is a Professor at the Erasmus University in Rotterdam, has written a new book titled The Next Billion Users. Here, she speaks about how the transformational effects of technology do not always converge for the people. The book describes how several so- called transformational technologies merely ended up supplying more options for leisure, while the productivity goals suffered. A lot of this is in corporate training and in education where such play activities were expected to boost learning, but ended up overwhelming the task itself. There is now an increasingly vast digital divide between the developing and developed worlds. In terms of the ability to use technology and access to the same, there are vast differences. NGOs, government agencies and companies that are socially conscious need to incorporate the ideas as evinced in this book.

Source:https://www.strategy-business.com/article/A-new-view-of-the-fortune-at-the-bottom-of-the-digital-pyramid?gko=c71df

Uploaded Date:03 October 2019

The Forbes magazine has conducted a thorough research to identify the companies across the globe, that have the most customer- centric of systems. More than merely a list, the publication has broken down the names across eight key industries, which are in- retail, finance, B2B, healthcare, agriculture, manufacturing, telecom and in insurance. To begin with, in retail it is Wegmans that tops the list followed by Trader Joe’s. Glossier, Warby Parker, Sephora, Amazon, Casper, Away Luggage, Best Buy and the traditional giant Target make up the rest of the top ten. Warby Parker is especially putting to great use its data warehousing mechanism, by fetching relevant records to understand customer behaviours to tailor the marketing accordingly. In finance, it is Citizens on top. The next nine are Chase, Ally Bank, Navy Federal Credit Union, Huntington National Bank, Charles Schwab, ING, Edward Jones, Discover and Capital One. One Medical tops the list for Healthcare. The rest in it include UCB, Kaiser Permanente, RDMD, Propeller, VR Health, Acxiom, Cloud Care, Novo Nordisk and Solv. Slack and DHL top the B2B rankings, which it is Workday and of course Google who are on top of the list for software or internet. Montage tops hospitality and USAA does likewise for insurance. And finally, there is Dish Network for Telecom, Subaru for manufacturing and Indigo in agriculture.

Source:https://www.forbes.com/sites/blakemorgan/2019/06/30/100-of-the-most-customer-centric-companies/#3435d7c063c3

Uploaded Date:11 September 2019

Design is now increasingly being seen as an essential cog of business, and not just as a support mechanism. Several cases have been known of bad service design and product. On the other hand, there are also countless cases of iconic designs such as the Google home page, the Swiss Army Knife and the visitor experience at Disneyland. A McKinsey Design Index (MDI) has been crafted that analyzes the strong correlation between great design and the company’s financial performance. Generally the study conducted by McKinsey clearly confirms how there is indeed a strong correlation. This is true for across the industries. Many companies have been quite slow to catch up. To ensure that design works take place smoothly, the company needs to ensure an analytical bent of mindset for the top leadership. The talent recruitment must be such that each team is made up of cross- functional skill levels. Continuous iteration is needed to create the ideal product or service design. Pilot tests need to be performed to gauge the user experience.

Source:https://www.mckinsey.com/business-functions/mckinsey-design/our-insights/the-business-value-of-design?cid=other-eml-alt-mbl-mck&hlkid=61ddb36e59874eea93a15cb7455d2c6e&hctky=9953462&hdpid=69c22963-565e-4250-91db-c617d15d1c11

Uploaded Date:29 August 2019

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