You may not know Hon Hai, but it is to produce 70% of all iPhones 6. It also operates the largest factories on Earth. Terry Gou, founder and chairman, based his success on cheap labor costs as well as audacious merging strategies. Will the rise of automated factories mean the end of this success story, and more broadly the end of China as the world factory? As a matter of fact, Mr. Gou is fond of robots, and he won't be the last to launch an automated factory. But he may need Chinese arms for a while. Here is why.
As artificial intelligence takes hold, what will it take to be an effective executive?
With the rapid advances in information technology, a new approach to knowledge is emerging which changes the very idea of skillfulness: what employees know matters less than what they are able to find, and, more relevantly, what they are able to share. Working alone creates less value than teamwork. Hierarchies tend to fade out, while collaboration becomes paramount. In these circumstances, the employees cease to be seen only as a productivity lever. Their personal performance continues to count, but now companies are also interested, and perhaps even more, in their ability to enter a dynamic and to nurture it. The employees can be valued for their creativity, capacity to innovate, their empathy and their intellectual curiosity.
There is a merciless war ongoing now in companies round the world to reduce production costs. Some have a major advantage when they can display improved energy efficiency of their commercial vans and trucks. The energy efficiency factor is now increasingly integrated in the augmented performance assessment that the brands emphasize for their shareholders, their customers, their suppliers, analysts and notation agencies. Some companies have moved faster than others to fight energy waste. The USA, with its huge, continental dimensions, lends itself well to energy scales of economy. Major transport companies, such as UPS or FedEx, are making remarkable progress, but the prime interest goes to the distributor Wal-Mart Stores Inc. On several occasions, President Obama singled out Wal-Mart as a model in terms of energy savings.
The world market for service robots will represent 25 billion euros in 2015 and could well be 100 billion euros by 2018 and 200 billion in 2023, according to the International Federation of Robotics. If we can assert that this entire high growth sector is emerging, there are, nonetheless, variations to be considered: some robots are close to industrial maturity, while others are still in experimental assessment phases. But the growth trend is now well established. It may not necessarily be spectacular but will affect considerably both developed societies and their economies.
Faced with consumers who can search for information, form groups and publicly express their opinion through electronic media and social networking, goods producers and services providers will inevitably have to step down from their comfortable heights and start thinking in terms of coproduction with a customer who will become a prosumer.
Come year 2030, what will business enterprises look like? Almost every qualified answer points in the same direction, or at least provides a foreseeable trend: if as predicted instability becomes the rule and not the exception, and in a context of an entirely new ecosystem stemming from pervasive digital technologies, business enterprises will have to evolve quite considerably if they wish to remain efficient, sustainable and resilient. What factors come to bear here?
To stay competitive, companies must stop experimenting with digital and commit to transforming themselves into full digital businesses. Here are seven traits that successful digital enterprises share.
Sustainable development mantras are all over the world, but change is slow to come. While the international negotiations in the context of the UN Framework Convention on Climate Change have not shown much progress, international standards suggest a less visible, more influential and pragmatic way to impulse change. In recent years a set of tools has been developed to address the interrelated challenges of climate change, energy, water and nutrition. In an increasingly global economy, could they make a difference?
What kinds of lessons can providers of microfinance services in developed countries learn from microfinance practices overseas? Three experts from the microfinance industry addressed that question during a panel discussion at the eighth annual Penn Microfinance Conference, whose theme was "Microfinance: Beyond Its Roots." In addition, keynote speaker Elizabeth Rhyne, managing director of the Center for Financial Inclusion, discussed how the microfinance industry is moving beyond its reliance on lending into multiple new directions, including innovations in the health care sector.
Cyber-threats are now becoming systemic in the world economy. Concern of all actors involved is rising, to the extent that it may lead to a global counter move against digitisation that would consequently have a huge negative economic impact. Notwithstanding progress in cloud computing and big data with, according to McKinsey, a generated annual income of between 9,600 and 21,600 billion dollars in the global economy. If the sophistication of cyber-attacks were to submerge the defensive capacity of States and organizations, we could fear more stringent regulations and policies that would in fact slow down innovation and growth.
Enterprises are now able to collect all kind of real-time information about the needs of each consumer. They can provide innovative products that are neither goods nor services but something else, in between, that could be called solutions. Around these solutions we are witnessing the emergence of original business models, and more generally, of a new economy.
In countries that have based their wealth on production, every discovery and innovation that potentially lower production costs attract very strong attention. Since 2007, the discovery and exploitation of shale gas and oil have put the USA energy industry back on the track to competitive procurement faced with competing nations who have been low costs champions for decades. The new question on the table is to ascertain whether 3D printing can have a comparable impact.
For the world's economy to get full value from technological innovation, it must have a robust, coordinated approach to cybersecurity. A new report from the World Economic Forum and McKinsey looks at how that could happen.
Shrouded in the secrecy of marketing services, at the heart of the manufacturing industry, innovation has today established itself as the ultimate solution, illustrated by insolent successes despite a challenging environment. Sometimes defined as the encounter between an invention and a market segment, innovation seems to generate alternatives, growth drivers, and even crisis products that allow companies to bounce or to renew themselves. So how are the necessary opportunities to be found? Is there a recipe for large FMCG companies? A recipe? Certainly not. But some methods, yes. And also plenty of flawed strategies.
Businesses are increasingly the victims of cyber attacks. These crimes are not only costly for the companies, but can also put their very existence at risk and may provoke significant externalities for third parties. The pace of innovation is escalating rapidly among threat sources, helped by an acceleration in the global proliferation of cyber expertise. Sharing information is a solution. What about insurance?
Social business and new models of access to goods and services: can they help multinational companies from developed countries reinvent themselves? Or even, can they become levers of strategic renewal for these firms? Danone's experience suggests they can indeed. However, precise analysis of the underlying processes is required if we are to discern the factors that lead to success.
African nations are seldom mentioned in the world ranking of innovative countries, but things could change with the rise of a new generation of technologies that perform many financial transactions from mobile phones. Today, mobile banking opens a new avenue for development. But can this model be exported?
The myth of scientific management has all but disappeared, yet the industrial world continues to overvalue methods that have been standardized from outside the business environment, at the expense of creative solutions developed within companies themselves. Isn't it time to change the approach? Michel Berry, founder of the Paris School of Management, has long cultivated an attention to the singularity of situations. But how does one share the intelligence hidden in things singular? How should one train, transmit knowledge and exchange views? Envisioning management as an art overcomes these contradictions.
In the US, a disruptive new way for small companies to raise capital is putting a spotlight on the readiness of a tightly regulated securities market to adopt the openness of the Internet. It has sparked debate about whether the change will spur economic growth or become another vehicle for fraud.