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The Only Sustainable Edge: Why Business Strategy Depends on Productive Friction and Dynamic Specialization |
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Topic: Business |
9:44 pm EDT, Jun 4, 2005 |
John Seely Brown ("The Social Life of Information") has a new book. Back in April, Tom Friedman said, "...check out [this] smart new book by the strategists John Hagel III and John Seely Brown." From the looks of it, Brown and Hagel's ideas in this book made a significant impact on Friedman's latest thinking as reflected in "The World Is Flat." Many firms have used outsourcing and offshoring to shave costs and reduce operating expenses. But as opportunities for innovation and growth migrate to the peripheries of companies, industries, and the global economy, efficiency will no longer be enough to sustain competitive advantage. The only sustainable advantage in the future will come from an institutional capacity to work closely with other highly specialized firms to get better faster. Enabled by the emergence of global process networks, firms will undergo a three-stage transformation: deepening specialization within firms; mobilizing best-in-class capabilities across enterprises; and, ultimately, accelerating learning across broad networks of enterprises. Hagel and Seely Brown discuss the strategic levers that will accelerate this migration, and they outline a new approach to strategy development that will help companies capture this shifting source of strategic advantage. Calling for a forceful reinvention of business strategy and the very nature of the firm itself, this bold and forward-looking book reveals what every company must do today to become tomorrows market leader.
The Only Sustainable Edge: Why Business Strategy Depends on Productive Friction and Dynamic Specialization |
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Topic: Business |
8:08 am EDT, Jun 2, 2005 |
The State Department recently called the Afghan drug trade "an enormous threat to world stability." The UN estimates that Afghanistan produces 87% of the world's opium. The opium trade is booming, partly the result of the US strategy for overthrowing the Taliban and stabilizing the country after two decades of war. As long as the Taliban pay cash, the warlords are pleased to let bygones be bygones. "The idea is not to leave them in the provinces anymore, but to bring them on board in official positions in order to better control them."
Of course, this is known as the Dilbert principle of counter-narcotics. The United Nations estimates that Afghan opium, morphine and heroin feed the habits of 10 million addicts, or two-thirds of the world's opiate abusers. Afghan narcotics kill about 10,000 people a year, it says. One Kunduz trafficker estimated that there was enough opium stashed in village wells and other hiding places to keep labs and smugglers working for 10 to 15 years, even if poppy cultivation stopped entirely. Schmidt said that was probably an underestimation. "Trying to get rid of drugs in Afghanistan is like trying to clear sand from a beach with a bucket," said an American counter-narcotics agent. He predicted that the government crackdown would be good for business. Increased arrests and interdiction would cut competition and reduce the glut that forced down prices by two-thirds last year. "The more restrictions, the more the business will boom," the trafficker said. "The price will go high, the number of dealers will go down, and my income will go up. The professional businessmen will remain. They have good connections. Whoever works hard in a business wins."
So, how's your liberal democracy doing in the war on drugs? The Lure of Opium Wealth |
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The world according to Peter Drucker |
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Topic: Business |
8:57 pm EDT, May 30, 2005 |
Though 2005 is scarcely a third over, it's not too early to entertain a nomination for investment book of the year. My candidate is "The Daily Drucker," a compendium of wisdom from the writings of Peter Drucker, the famed management guru who turns 96 this year. "Futurists always measure their batting average by counting how many things they have predicted that have come true. They never count how many important things come true that they did not predict." Instead of playing a guess-the-future game, better to look for and try to understand changes that have already begun to take place -- the "future that has already happened." Drucker doesn't argue so much for optimism as for realism. "Face reality," he says. "Today's new realities fit neither the assumptions of the Left nor those of the Right." The world according to Drucker is no theoretical flight of fancy. It's everybody's new place of residence, whether we are ready for it or not. The world according to Peter Drucker |
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The New Profile of the Long-Term Unemployed |
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Topic: Business |
9:38 am EDT, May 24, 2005 |
After World War II, when traditional industries dominated the economy, the usual pattern was for long-term unemployment to surge during recessions and die away quickly as recoveries took hold. That changed during the early 1990's and is even more evident in the current recovery, which began in November 2001. Structural changes in the economy and productivity improvements, reflecting the ability of companies to achieve higher output with fewer or the same number of workers, mean that even growing businesses no longer need to dip as much into the pool of displaced workers. Several factors seem to be contributing to the rise in long-term unemployment. The swelling cost of company-paid health insurance is "inducing business to be less aggressive in its hiring," The New Profile of the Long-Term Unemployed |
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Musicians Market Brands to Sell Their Latest Music |
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Topic: Business |
9:32 am EDT, May 24, 2005 |
Well-known bands and singers, along with their labels, are teaming with major advertisers and agencies for promotions that seek to sell brand-name products as well as CD's or downloads. In turn, the record labels, with dwindling budgets to promote individual releases in an increasingly crowded market, benefit from the multimillion-dollar budgets the advertisers typically put behind the campaigns. Previously, the artists may or may not have released new singles or albums when they made commercials. Today, the campaigns are timed to coincide with the musicians' latest releases to try to capitalize on their time in the limelight peddling their tunes. Musicians Market Brands to Sell Their Latest Music |
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The Business of America Is to Stay in Business |
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Topic: Business |
6:07 am EST, Mar 24, 2005 |
General Motors, once the symbol of corporate giantism, both admired and reviled, is now a shriveled husk of its former corporate self. And thereby hangs a tale of post-industrial America and a warning for America itself. The Business of America Is to Stay in Business |
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Topic: Business |
2:54 pm EST, Feb 19, 2005 |
Every once in a while I hear from people who love their jobs. I don't mean people who are merely pleased to have a job, or relieved not to despise that job, but rather workers who are head-over-heels ecstatic about the work they do. People who would keep on working if they hit the lottery. People who jump out of bed in the morning, thrilled that it is Monday. It's not only people in offbeat jobs who are enamored of their work. People who are skilled and are challenged by what they do, who are proud of the product of their work and who like -- or at least respect -- the people they work with, are most likely to love their jobs. That is as true of the doorman as the TV star. Take This Job and Hug It |
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Dubai buys $1B stake in Daimler-Chrysler |
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Topic: Business |
10:43 pm EST, Jan 30, 2005 |
The government of the Gulf emirate of Dubai has bought a $1 billion stake in DaimlerChrysler AG, becoming the auto maker's third largest shareholder, it said on Sunday. Industry sources said that neither Deutsche Bank AG nor the Gulf state of Kuwait -- DaimlerChrysler's biggest and second-largest shareholders -- had reduced their stakes. Dubai buys $1B stake in Daimler-Chrysler |
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Nissan chief: hybrid cars make no sense |
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Topic: Business |
10:42 pm EST, Jan 30, 2005 |
"They make a nice story, but they're not a good business story yet because the value is lower than their costs," said Nissan Chief Executive Carlos Ghosn. He also poured cold water on hydrogen fuel cell vehicles, which many automakers see as the industry's next big technological breakthrough. "The cost to build one fuel cell car is about $800,000. Do the math and you figure out that we will have to reduce the cost of that car by more than 95 percent in order to gain widespread marketplace acceptance." Did you know that Nissan is actually owned (partially, but substantially) by Renault? Nissan chief: hybrid cars make no sense |
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Got Game: How the Gamer Generation Is Reshaping Business Forever |
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Topic: Business |
10:24 am EST, Dec 30, 2004 |
Think video games are kids' stuff? Think again. Got Game shows how growing up immersed in video games has profoundly shaped the attitudes and abilities of this new generation. While many parents fret about their childrens minds turning to goo as they squander hour after hour absorbed in electronic diversion, gamers glean valuable knowledge from their pastime, and theyre poised to use that knowledge to transform the workplace. This is a Harvard Business School Press book. Got Game: How the Gamer Generation Is Reshaping Business Forever |
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