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That includes learning from the outside and striving to adopt certain start-up practices, with a focus on three key management processes: (1) resource allocation that nurtures future businesses, (2) faster-cycle product development, and (3) partnering with start-ups. Product development: g etting closer to customers and moving faster.
While much has already been written about this challenge in the developed world, there are also some important lessons to be learned from the Bottom of the Pyramid (BoP). But beyond product and technology innovations, more widespread adoption can only happen if the behavior of individual farms changes in a fundamental way.
Business students have traditionally considered net present value, paybackperiod, and hurdle rates as necessary tools to determine which project to select. Digital companies, however, consider scientists’ and software workers’ and product development teams’ time to be the company’s most valuable resource.
Looking at LVMH’s efforts, I’ll highlight three areas where I see great impact and innovation: managing carbon and energy, building a connection with customers around brand purpose, and working closely with suppliers. The most innovative part of LVMH’s carbon strategy is the use of an internal carbon fund. .”
The parallels with business are clear: Stars are a crucial but perhaps fragile source of innovation and competitive advantage. Costs naturally drop as people gain experience collaborating and develop the trusted relationships that smooth the process, but you should take steps to lower those costs more quickly.
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