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If there is Capex involved, engage early enough the person who will cut the check. Involve trade partners: they will open up more than in your buy meetings. You will find gold. – Dictatorship: someone needs to say yes, in the end. But the dictator’s focus is on results more than money.
The report includes case studies for Dow, which also utilized a constructed wetland at one of its facilities, reducing capex expense by a factor of 10. Shell isn’t the only company that discovered the savings from green infrastructure.
Savor of Temple found that firms led by single CEOs engage in much more aggressive investment behavior, in terms of capex, innovation activity, R&D, and acquisitions, than companies led by married chief executives. If the chief executive is unmarried, maybe he (or she) is just trying to attract a mate.
It may make costs more predictable and shift investments from CapEx to OpEx. They never have! What the cloud does is make the technology-supply side more efficient and perhaps more agile. It may even lead to access to leading-edge technologies.
Directors should make sure that OpEx and CapEx are aligned with risk reduction priorities and projects; security is not done for security’s sake. Ideally, boards should eliminate obstacles that prevent organizations from developing a culture of proactive security. It’s done for the business.
If asked about cost savings, be ready to deliver your pitch on how you intend to reduce or eliminate capex spending, reduce personnel resources, move services to a pay by month model eliminating long term contracts and ultimately reduce your annual budget by a modest percentage year over year over a 3-5 year period of time.
They were evenly distributed between pursuing opportunities (46%) and reducing risks (44%), and ran the gamut from product pricing and features, capex investments, manufacturing processes, market expansion, joint ventures, M&A, and more.
These companies have effectively no capex. It’s four kids and their laptops, and the entire company is run on the cloud, on Amazon Web Services, on Salesforce.com, NetSuite, and Gmail. It’s literally their laptops and their ramen noodles, and that’s it. And they walk in the door, and sometimes they have five million users in 170 countries.
Are you focusing opex and capex on these priorities in order to build competitively differentiated capabilities? And finally, does the operating model support the company’s strategic mission with the right combination of people, process, technology, and tools? None of these are easy questions.
Executives who wouldn’t hesitate to automate a factory now flinch at the prospect of deep-learning algorithms dictating their sales strategies and capex. The most painful board conversations that I hear about machine learning revolve around how much power and authority super-smart software should have.
These indicators and hypotheses were: Investment: The ratio of capex to depreciation. To construct our Corporate Horizon Index, we identified five financial indicators, selected because they matched up with five hypotheses we had developed about the ways in which long- and short-term companies might differ.
While the financials of shifting expenditure to the opex budget rather than the capex budget do undoubtedly support adoption from smaller enterprises, the McKinsey findings remind us that there are a broader range of barriers to overcome if the benefits of the latest technologies are to be spread across society.
And not very much capex , not very much innovation. .” The real problem with the economy isn’t too little lending: “We’ve got low interest rates. We’ve [got] growth prospects in the stock market. Dodd-Frank and Dodd-Frank rollback is unlikely to address that.”
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