Extractive summaries of and key takeaways from the articles curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision making | Week 244|May 13-19, 2022
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Shaping Section : Ideas and forces shaping economies and industries
The Indian economy is being rewired. The opportunity is immense
The Economist | May 13, 2022
Over the past three years India has endured more than its share of bad news and suffering. Yet as the Economist Briefing section explains, if you take a step back, a novel confluence of forces stands to transform India’s economy over the next decade, improving the lives of 1.4bn people and changing the balance of power in Asia. Technological leaps, the energy transition and geopolitical shifts are creating new opportunities—and new tools to fix intractable problems.
As the country emerges from the pandemic a new pattern of growth is visible. It is unlike anything you have seen before. An indigenous tech effort is key. As the cost of technology has dropped, India has rolled out a national “tech stack”: a set of state-sponsored digital services that link ordinary Indians with an electronic identity, payments and tax systems, and bank accounts. The rapid adoption of these platforms is forcing a vast, inefficient, informal cash economy into the 21st century. It has turbocharged the world’s third-largest startup scene after America’s and China’s.
Alongside that, global trends are creating bigger business clusters. The it-services industry has doubled in size in a decade, helped by the cloud and a worldwide shortage of software workers. Where else can Western firms find half a million new engineers a year? There is a renewable-energy investment spree: India ranks third for solar installations and is pioneering green hydrogen. As firms everywhere reconfigure supply chains to lessen their reliance on China, India’s attractions as a manufacturing location have risen, helped by a $26bn subsidy scheme. Western governments are keen to forge defence and technology links. India has also found a workaround to redistribute more to ordinary folk who vote but rarely see immediate gains from economic reforms: a direct, real-time, digital welfare system that in 36 months has paid $200bn to about 950m people.
These changes will not lead to a manufacturing boom as big as those in South Korea or China, which created enough jobs to empty the fields of farmers. They do not solve deep problems such as extreme weather or clogged courts. But they do help explain why India is forecast to be the world’s fastest-growing big economy in 2022 and why it has a chance of holding on to that title for years. Growth generates more wealth to invest in the country’s human capital, particularly hospitals and schools. However, the biggest threat to all this is India’s incendiary politics.
3 key takeaways from the article
- Over the past three years India has endured more than its share of bad news and suffering. Yet if you take a step back, a novel confluence of forces stands to transform India’s economy over the next decade, improving the lives of 1.4bn people and changing the balance of power in Asia.
- Technological leaps, the energy transition and geopolitical shifts are creating new opportunities—and new tools to fix intractable problems.
- The biggest threat to all these immense opportunities is India’s incendiary politics.
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Topics: India, Global Economy, Development
Reimagining higher education in MENAP
By Stephen Hall et al., | McKinsey & Company | May 13, 2022
There is a range of initiatives that higher-education institutions (HEIs) in the Middle East, North Africa, and Pakistan (MENAP) can consider to help them sustainably meet the needs of a growing young population that is already confronted with high unemployment and limited job prospects. Rethinking the approach to higher education could ensure that Ministeries of Education & HEIs respond to the increasing demand for postsecondary education, as well as the need to develop the skills required by the economy and instill a culture of lifelong learning. Three considerations:
- What delivery channels and models could we use to fulfill our core educational mission? Despite the challenges, the forced experiment of the past 24 months offers a once-in-a-generation opportunity for HEIs to make various strategic choices about the mix of remote and in-person learning to optimize the quality and equity of their education, and reconfigure their use of physical and virtual space accordingly. Another path to improve graduates’ job outcomes could be to ensure that students’ study choices align with labor market needs. Countries could potentially achieve better alignment between labor market needs and university outputs through three measures: improving labor market transparency and career guidance, adopting enrollment limits for certain majors, and changing the financial incentives for students and universities.
- How to manage financial sustainability? With the financial squeeze on the public purse, HEIs may not be able to rely on increases in government appropriations to sustain them. A priority for education leaders in this context may be to evaluate their spending and consider reallocating existing resources. One way to reduce expenditures could be to create synergies by merging several smaller universities into one bigger institution. Third-stream revenues, from activities such as executive education or consulting, are currently extremely limited in MENAP. Some universities have established separate organizations for example for research and consulting. Another source of revenue that universities could pursue is donations and bequests. Finally, developing and charging for training offerings related to upskilling and reskilling is another potential source of revenue for HEIs.
- How can we support innovation industries with our research agenda? Funding and R&D expenditure more and developing talent are critical. To improve the regional ecosystem for innovation, governments could enable R&D ecosystems in emerging technologies. Because of the long-term process of commercializing basic research, government support would be critical to achieve breakthroughs in science and technology.
3 key takeaways from the article
- Given the job market challenges as well as the lingering pandemic-induced financial constraints, higher-education institutions (HEIs) in the Middle East, North Africa, and Pakistan (MENAP) may need to change the way they do business to ensure that they are sustainable into the future.
- Rethinking the approach to higher education could ensure that HEIs respond to the increasing demand for postsecondary education, as well as the need to develop the skills required by the economy and instill a culture of lifelong learning.
- By addressing the three considerations—selecting the most appropriate delivery approach and channels, managing financial sustainability, and supporting innovation industries— Ministries of education and HEIs can potentially build a sustainable and successful post pandemic future for the institutions, the students who pass through them, and the region’s economy.
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Topics: Higher Education, Economy, Skills
Crypto is weathering a bitter storm. Some still hold on for dear life.
By Rebecca Ackerman | MIT Technology Review | May 16, 2022
One shiny premise of DeFi, or decentralized finance—a catch-all term for cryptocurrencies and blockchain projects related to the exchange of value—is that by spreading out and automating operations, and removing power from middlemen like banks, it can offer a system more resilient to global forces, able to survive events like war and economic downturns that pummel traditional markets. Some industry insiders have even suggested crypto could be a good investing bet to ride out a potential recession. Now in our current precarious financial climate, with the traditional market slipping dramatically and Big Tech stocks plummeting, that theory of resilience is getting a real-life road test. And the results are not great.
Bitcoin has taken its own nosedive in the past few weeks, while Ethereum and others have dipped as well. As “Web2” tech companies like Amazon and Netflix watch their stock drop, Coinbase, one of the top three crypto exchange platforms, and Robinhood, which supports crypto trading, have seen theirs falling right alongside. But the big crash came last week, when the major algorithmic stablecoin TerraUSD (UST) tanked dramatically. A $100 stake in UST last Monday was worth just $18 by Sunday morning; that much in its sister token, Luna, is worth pennies now.
Each company in the crypto ecosystem has its own explanation for why it’s faltering. But all these faulty pieces add up to an experimental system that is vulnerable to the same market trends as traditional finance—only without strict regulation and strong guardrails.
With banks launching crypto products and non-algorithmic stablecoins relying on the paper dollar to keep them steady, the crypto industry is clearly “tethered” to the rest of the financial market in multiple ways; the question now is if the plummeting coins will drag down traditional stocks in return. In January, Paul Krugman predicted in the New York Times that crypto assets may be the new subprime mortgages—bad eggs that have the power to spoil the whole market. This week, individual crypto investors \claimed to have lost their life savings already. There may be more pain in store. What remains to be seen is if the real money still pouring into the industry from VCs and evangelists can float it through icy times, and—if it manages to find its way back into the sun—how many acolytes, and even regular market investors, will be sacrificed to the freezing waters first.
3 key takeaways from the article
- One shiny premise of DeFi, or decentralized finance is that by spreading out and automating operations, and removing power from middlemen like banks, it can offer a system more resilient to global forces, able to survive events like war and economic downturns that pummel traditional markets.
- Now in our current precarious financial climate, with the traditional market slipping dramatically and Big Tech stocks plummeting, that theory of resilience is getting a real-life road test. And the results are not great.
- Bitcoin has taken its own nosedive in the past few weeks. Each company in the crypto ecosystem has its own explanation for why it’s faltering. But all these faulty pieces add up to an experimental system that is vulnerable to the same market trends as traditional finance—only without strict regulation and strong guardrails.
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Topics: Cryptocurrency, Financial System, Blockchain
How leaders at Salesforce, Zoom, and Best Buy are using technology to change health care
By Carmela Chirinos | Fortune Magazine | May 18, 2022
The pandemic gave patients more power than ever before, and millions of people are now taking charge of their health. For big companies, technology can help bridge surging new demands for primary and specialty care. Leaders from Salesforce, Zoom, and Best Buy recently shared seismic shifts in health care, and the technology they’re deploying to help.
Salesforce. Adoption of virtual care is driving successful outcomes for many patients, said Dr. Fatima Paruk, Senior Vice President and Chief Healthcare Officer at Salesforce. According to her viewing patients as consumers with preferences, options, and needs has revolutionized retail, financial services, and now health care. With more access to health care through virtual sessions, patients want care on-demand “whenever, wherever or however.” Increased telehealth access also benefited some rural populations which historically had less access to primary and specialty care. With this new shift, providers now “need virtual strategies so that they are making sure that patients are coming in through their digital front doors” which improves patient acquisition, and helps hospitals and providers stay in business.
Zoom. Ron Emerson, Global Healthcare Lead for Zoom video communications, shared that his company saw an increase in users with the pandemic, and the platform started serving multiple purposes. Doctor visits over Zoom became popular, in a phenomenon the company hadn’t preciously seen. As a result, the company began asking more questions about strategy. Many people now think that the future will be more digital, and your first interaction with your provider will be digital. Zoom conducted a study to see which modality people preferred and found that “61% of people said they wanted to continue to have a hybrid model of care, 34% said they just wanted in person, and 4% said they just wanted video only.”
Best Buy. Best Buy is now focused on leaning into the adoption of telehealth and helping customers set up for success, said Diana Gelston, Vice President, Virtual Care Sales, Marketing and Client Success. Adopting the mentality that patients are consumers helps the company understand the intersection of care and technology better. Best Buy has been in the health care business for around four years and currently has over 1.5 million users engaging with its products there, about 20% of the market. Now, the company expects a rapid surge in demand.
2 key takeaways from the article
- The pandemic gave patients more power than ever before, and millions of people are now taking charge of their health. For big companies, technology can help bridge surging new demands for primary and specialty care.
- Based on sharing from leaders of about the seismic shifts in health care, three trends are: viewing patients as consumers with preferences, options, and needs has revolutionized retail, financial services, and now health care; with more access to health care through virtual sessions, patients want care on-demand “whenever, wherever or however; and more people wanted to continue to have a hybrid model of care.
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Topics: Medical Sector, Technology
Strategy & Business Model
How Gillette Embraced the Beard to Win Over Scruffy Millennials
By Thomas Buckley | Bloomberg Businessweek | May 13, 2022
Gillette’s longtime slogan was that its shaving products were “the best a man can get.” But this supposed the brand was selling something a man wants. And that’s been less the case for a new generation of men who don’t see being cleanshaven as a masculine ideal and who have cheaper alternatives when they want to address their stubble. Worldwide, more than half of men now sport beards, including two-thirds of millennial men.
Through most of the past decade, Gillette’s approach to this phenomenon was to wait it out. Despite P&G’s scale, which offers unparalleled insights into consumer behavior, the groupthink among marketers at its grooming division was that facial hair would be a short-lived trend. That stoicism proved catastrophic. Gillette was selling an aging line of products to a shrinking audience instead of innovating in lockstep with the lumberjack-chic look prevailing among actors, athletes, musicians, cover models, online influencers, baristas, bartenders, and, oh, almost any man from Shoreditch in London to Silver Lake in Los Angeles regardless of how the crow flies.
In 2019, with Gillette’s revenue cratering, P&G wrote down the value of the brand by $8 billion. A pandemic during which adults have questioned the need to wear pants on Zoom calls, let alone worry about a 5 o’clock shadow, hasn’t helped things.
Today, Gillette is trying to attract younger consumers with a two-pronged approach. In 2020 it rolled out a line of face washes, shave gels, combs, waxes, oils, and beard-friendly razors named for founder King C. Gillette. The products are a major strategic shift for a company previously known for rebuking unshaven employees, criticizing bearded visitors at its Boston headquarters, and demonizing facial hair as an unemployable character trait in ads. At the same time the company wants to make shaving cool again.
Reimagining Gillette for the modern man is one of the toughest challenges in the consumer-goods industry. In the past companies of P&G’s size simply would have swallowed up disrupters. But a millennial predilection for small-batch brands over mass-market products of the boomer age and regulatory concerns about sprawling footprints are seeing the old guard increasingly forced to compete with the new.
3 key takeaways from the article
- A new generation of men stop seeing being clean shaven as a masculine ideal. Worldwide, more than half of men now sport beards, including two-thirds of millennial men.
- Through most of the past decade, Gillette’s approach to this phenomenon was to wait it out. That stoicism proved catastrophic. Gillette was selling an aging line of products to a shrinking audience instead of innovating in lockstep with the lumberjack-chic look prevailing among celebrities.
- Today, Gillette is trying to attract younger consumers with a two-pronged approach. In 2020 it rolled out a line of face washes, shave gels, combs, waxes, oils, and beard-friendly razors named for founder King C. Gillette. The products are a major strategic shift for a company previously known for rebuking unshaven individuals. At the same time the company wants to make shaving cool again.
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Topics: Strategy, Business Plan, Marketing
How IBM, Ford, DuPont, and Sony Passed on Windows, the Cadillac, Gore-Tex, and the iPod
By Bill Saporito | Inc Magazine | May-June 2022 Issue
There are many reasons why companies go thumbs-down on good ideas. Some of those reasons seem reasonable: The idea doesn’t align with the current mission, or it requires too much capital or manpower or too much of management’s focus. Then there are the cases when the big bosses were perhaps not paying enough attention. Consider Thomas Edison, who briefly employed in his lab a fellow named Nikola Tesla. Tesla had come up with an induction motor for alternating current and suggested to Edison that it was a better source of electricity than Edison’s own direct-current dynamos. “Spare me that nonsense,” Edison is said to have told the underling, in one of the most luminous miscalculations in business history. Let’s revel in a few more.
Apple Tunes In. In the late 1990s, as mp3 players were beginning to bloom, an engineer named Tony Fadell had an idea for a line of digital music players. He took his player to one of the digital music leaders at the time including RealNetworks, Sony and Phillips. They simply balked at creating a separate personal music device. Finally, he found some guy named Steve Jobs, whose computer company was desperate to get mp3 players hooked up to its iTunes app. Five years later, Apple sold its 100 millionth iPod.
DuPont Lets One Slip Away. In the late 1950s, a chemical engineer named Wilbert “Bill” Gore was getting the warm fuzzies about a compound he was working with called polytetrafluoroethylene. Gore thought the compound, which DuPont called Teflon, had potential beyond what his employer had in mind–a nonstick coating. So he and his wife, Vieve, struck out on their own and founded W.L. Gore & Associates in 1958, in their basement in Newark, Delaware. PTFE was highly resistant to heat, making it perfect for electrical insulation–and just in time for the emerging space age and computer age, which craved electrical efficiency; it was applicable to medical implants as well. But that’s not why you know their surname today. In 1969, after their son Bob created a stretched version, called expanded PTFE, the company found a market for a breathable, waterproof fabric they called Gore-Tex–which would make winter weather much more bearable for all of us.
IBM Opens the Window for Microsoft. The question was: “Do you want to buy it or do you want me to buy it?” The answer would change computing. The speaker was IBM exec Jack Sams, who needed an operating system for the IBM Personal Computer 5150. The machine was being built with open architecture–unheard of at IBM–when introduced in 1981. The question was posed to 24-year-old Bill Gates, whose startup, Microsoft, didn’t actually have an OS, but had located one called QDOS (for Quick and Dirty Operating System) from a local firm. Given the opportunity to buy QDOS or rent it, IBM did the latter. Gates shrewdly negotiated the right to license QDOS–which became MS-DOS. The rush of third-party computer makers that followed the PC’s introduction in 1981– including Dell, Compaq, and HP–would turn Microsoft into the biggest software maker on the planet and eventually force IBM out of the PC market.
2 key takeaways from the article
- There are many reasons why companies go thumbs-down on good ideas. Some of those reasons seem reasonable: The idea doesn’t align with the current mission, or it requires too much capital or manpower or too much of management’s focus. Then there are the cases when the big bosses were perhaps not paying enough attention.
- Two of such cases are: Steve Job bought the idea of a line of a personal digital music players from Tony Fadell who got refusal from Sony and Phillips; the question “Do you want to buy it or do you want me to buy it?” by IBM exec Jack Sams from 24-year-old Bill Gates, whose startup, Microsoft, didn’t actually have an OS, but had located one called QDOS – the answer changed the computer industry driving IBM out of PC market.
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Topics: Strategy, Business Model
Leading & Managing
Haven’t Networked in a While? Here’s How to Jump Back In.
By Dorie Clark | Harvard Business Review | May 17, 2022
Even for committed networkers, the pandemic has wreaked havoc on the typical opportunities for making professional connections. As a result, many of us have doubled down on our existing relationships, radically reducing the number of new people we’ve met over the past two years, and have let our loose connections go. That may not seem like a problem in the moment, but over time, researchers suggest, it can lead to a decrease in innovation because we’re not being exposed to new perspectives. Three strategies that will prove helpful as we re-emerge into the office and other professional gatherings — no matter what size gathering you’re ready to attend.
Reintroduce one-on-one connections. Attending large scale networking events may feel overwhelming if you haven’t done it in a while. If that’s the case, a good starting place to rebuild your networking muscles may be seeking out one-on-one connections. You can begin with colleagues or clients you may have connected with virtually during the pandemic, and with whom you’d like to deepen your relationship. You can also create a list of dormant ties — people you haven’t seen or interacted with much during the past two years, with whom you’d like to refresh your relationship. If you’ve exhausted those opportunities, or can’t think of people you’d like to meet up with, ask a friend (especially one who you know is a good connector) for suggestions about people you ought to meet.
Attend networking events. If you feel ready to dive into an in-person networking event, be aware that some things have changed, including the amount of personal space that you, and others, feel is appropriate. Additionally, we’ll need to go back to the basics of practicing small talk and finding ways to connect with strangers. The best move, psychologist Robert Cialdini suggests, is to rapidly identify a commonality you share with the other person. Having something in common not only gives you something to talk about, but also conveys that you’re “one of them,” creating a pathway to build trust.
Host your own events. The problem with attending other people’s events is that they may not be optimized for networking the way you like to do it. If you’re willing to take the lead on organizing an event, you can not only control the attendee list, but also structure the flow. You might consider recruiting a co-host. Dividing responsibilities helps lighten the load. And of course, the primary benefit is that your cohost will be exposed to your network, and vice versa.
3 key takeaways from the article
- Even for committed networkers, the pandemic has wreaked havoc on the typical opportunities for making professional connections. As a result, many of us have doubled down on our existing relationships, radically reducing the number of new people we’ve met over the past two years, and have let our loose connections go.
- That may not seem like a problem in the moment, but over time, researchers suggest, it can lead to a decrease in innovation because we’re not being exposed to new perspectives.
- Three strategies that will prove helpful as we re-emerge into the office and other professional gatherings — no matter what size gathering you’re ready to attend are: reintroduce one-on-one connections, attend networking events, and host your own event.
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Topics: Personal Development, Networking, Socializing
Building Cyber Resilience Before the Next Attack Occurs
Manuel Hepfer et al., | MIT Sloan Management Review | May 12, 2022
The surge in cyber activity surrounding the invasion of Ukraine, documented in a Microsoft report, stoked concerns among governments and enterprises fearful of getting caught in the digital crossfire. In 2017, a cyberattack on a Ukrainian tax preparation program led to disabled airports, railways, and banks within Ukraine and spread to a host of global companies, eventually causing more than $10 billion in economic damage). The authors, with the help of their research, try to understand response best practices and how companies can avoid common mistakes.
People never come to work expecting a cyberattack, so when it happens, it feels random and overwhelming. Business leaders are often suddenly confronted by unfamiliar issues for which they have received little formal training. The authors observed three common mistakes people make that inhibit successful recovery from a cyberattack. One, setting unrealistic deadlines for recovery – before rushing to set hard deadlines, leaders must get as much information as possible to help understand the full scale and impact of an attack. Two, irrational internalization – Most serious cyberattacks these days have reached a level of sophistication that makes it difficult, if not impossible, for companies to deal with such incidents on their own – so seek outside support. And three, unnecessary blame – in the wake of an attack, any energy not spent on resolving the issues just creates additional pressure and reinforces paralysis.
The precise low-level details of how a company should respond to a cyberattack depends on the nature of the attack and the kind of business affected. But at a higher level, the following three elements are at the heart of responding successfully to any attack. One, plan and prepare with edge cases in mind – a plan can help you to remain calm and make sounder decisions amid chaos, try to think clearly, behave innovatively, and adapt quickly to changes in the enterprise and its environment. Two, don’t delegate, lead. And three, provide open, consistent communication.
3 key takeaways from the article
- The surge in cyber activity surrounding the invasion of Ukraine, documented in a Microsoft report, stoked concerns among governments and enterprises fearful of getting caught in the digital crossfire. What could be the response best practices and how companies can avoid common mistakes.
- Three common mistakes people make that inhibit successful recovery from a cyberattack are: setting unrealistic deadlines for recovery; irrational internalization, and unnecessary blame.
- Three elements are at the heart of responding successfully to any attack: plan and prepare with edge cases in mind; don’t delegate, lead; and provide open, consistent communication.
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Topics: Technology, Cyber Security, Resilience
Entrepreneurship Setcion
7 Reasons To Go Beyond Influence To Create Positive Impact In Your Career
By Amy Blaschka | Forbes Magazine | May 18, 2022
Influence is an undisputed leadership asset in the professional world. Whether in a boardroom or at a client pitch, your ability to defend your ideas and persuade others that they matter can make or break your career. The best leaders do it in an ethical way. Following what Robert Cialdini, author of Influence: The Psychology of Persuasion, calls the seven Universal Principles of Persuasion.
- Reciprocation: We feel obligated to give back to others something we’ve received first. Give before you ask by first providing value and serving, not selling.
- Liking: We’re more influenced by the people we like and who are like us. To up your likability factor, practice kindness and offer compliments while highlighting similarities and increasing familiarity through repeated interactions and positive associations.
- Social Proof: We determine what is correct by finding out what other people think is correct. Don’t tell people you’re amazing; have your happy clients and customers advocate for you on your behalf.
- Authority: We defer to those authorities we perceive as both expert and trustworthy. The more you can position yourself as a credible expert, the more likely people will follow your lead.
- Scarcity: We assign more value to less available things. When trying to persuade people about your idea, it’s not enough to explain why it’s unique and the benefits they’ll gain; you’ll also need to point out what they stand to lose if they pass.
- Commitment and Consistency: We like to be and look consistent within our words, beliefs, attitudes, and deeds, and after making a commitment, we are more willing to agree to requests in keeping with the prior commitment. Simple reminders of an earlier commitment can guide future behavior, strengthening someone’s resolve to remain consistent.
- Unity: We say yes to those we consider one of us. Create opportunities to bring people together through shared experiences and co-creation.
2 key takeaways from the article
- Influence is an undisputed leadership asset in the professional world. Whether in a boardroom or at a client pitch, your ability to defend your ideas and persuade others that they matter can make or break your career.
- seven Universal Principles of Persuasion are: give before you ask by first providing value and serving, not selling; practice kindness and offer compliments; provide social proof that your happy clients and customers advocate for you on your behalf; the more you can position yourself as a credible expert, the more likely people will follow your lead; when trying to persuade people about your idea you’ll also need to point out what they stand to lose if they pass; strengthening resolve to remain consistent; and create opportunities to bring people together through shared experiences and co-creation.
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Topics: Personal Development, Leadership, Persuasion
5 Reasons Procurement Should Be In Consideration For Your Startup
By Stephen Day | Entrepreneur Magazine | May 19, 2022
If there’s one figure that hangs over the heads of most founders, it’s the fact that nine in 10 startups will fail. The astonishingly low success rate of new companies proves that most are not launching with the right tools to build and sustain growth. Out of all the potential points of failure, supply chain problems can drag a startup down faster than most. Here are five reasons why procurement should be a top priority for your team.
- Avoid unnecessary dependencies. Flexibility in supply sources is exactly what a startup requires to scale at the rate they’ve based their valuations on. Supplier lock-in is the last thing a startup needs, especially if it’s the first big problem they have to face.
- Comply with legal policies. Many startup founders don’t talk to their legal advisor about the procurement process, but ensuring that suppliers comply with company and industry policies is a crucial step in starting a business.
- Align with consumer values. The conversation around environmental, social and governance (ESG) is driving consumer decisions, which is why it must be a fundamental consideration in company procurement policies. The sooner you start thinking about these values, the more time you have to flesh out terms of engagement and find suppliers who align with your ethics.
- Minimize supply chain uncertainty. Simply hitting the baseline of profitability is difficult enough for today’s startups, and it only gets more difficult when a company hasn’t created a strong foundation on which to grow. Negotiating the best cost is not as important as ensuring your company can continue operating during unsure times. What counts is that you start early, ensuring that you have more time to compare options and build relationships.
- Create sustainable success. Scaling your business isn’t just about protecting your supply but also protecting your Intellectual Property Rights (IPR). Before you seek out suppliers for important components, you should have a critical conversation about how your procurement practices might expose proprietary concepts and what you need to do to protect them.
3 key takeaways from the article
- If there’s one figure that hangs over the heads of most founders, it’s the fact that nine in 10 startups will fail. The astonishingly low success rate of new companies proves that most are not launching with the right tools to build and sustain growth.
- Out of all the potential points of failure, supply chain problems can drag a startup down faster than most.
- Five considerations procurement should have in procurement decisions: avoid unnecessary dependencies, comply with legal policies, align with consumer values, minimize supply chain uncertainty, and create sustainable success.
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Topics: Entrepreneurship, Startup, Procurement
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