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In an effort to improve the financial viability of the remaining nuclear fleet, industry executives launched the Delivering the Nuclear Promise initiative; challenging employees and vendors to identify innovative ways to improve efficiency, reduce costs, and raise revenues while maintaining operational safety and reliability.
The audience for such innovation wants to be receptive: A recent American Hospital Association (AHA) survey found that 75% of senior hospital executives endorsed the importance of digital innovation. Yet, despite their stated enthusiasm, hospitals have been notoriously slow to adopt digital innovations. health care system.
You need to think like a portfolio manager, allocating resources both to innovate in your core and for the future. Knowing that today’s operations will almost always win the lion’s share of resources, you need to consciously create a protected class of innovative ideas to invest in, even if money is tight.
But beyond product and technology innovations, more widespread adoption can only happen if the behavior of individual farms changes in a fundamental way. For example, the drip irrigation we sell has an average six-month paybackperiod. In the trenches : Why is behavior entrenched?
Business students have traditionally considered net present value, paybackperiod, and hurdle rates as necessary tools to determine which project to select. Furthermore, the operating managers cannot take their eyes off day-to-day operations to focus on innovation. Traditional companies therefore rely on two strategies.
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. Both these efforts help the paybackperiod arrive sooner, making collaboration a smarter investment for the next wave of people. Likewise, your actions can make the benefits start to flow sooner.
Still, if you''re dependent on coal-powered energy — or your value chain is — it''s time to rethink your energy strategy and reconsider the paybackperiods on clean energy investments. It''s not just innovation to avoid regulations — that''s old school. Business will feel government action on many fronts.
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