Growth & Innovation, Research & Development, Product Development, Technology Management, Strategic Planning, Strategic Planning Process, Operations, Information Technology, Applications
This is my third in a series of commentaries from a European trip that took me to Switzerland, Germany, and Poland in mid-November. In Warsaw, I met staff of Poland-based U.S. subsidiaries for a formal discussion of the Industrial Internet.
Global Economy, Economic Environment, Growth & Innovation, Research & Development, Research, Innovation
While measuring potential GDP—the maximum output achievable without provoking inflation—is not an exact science, it is clear that U.S. potential has slowed significantly since the 1980s and 1990s. Slower labor force growth and productivity are causing the sluggishness, although it is likely that government statistics do not accurately account for several types of 21st-century innovation.
Of all the generations, millennials may be getting the lion’s share of focus lately, but children born after 2000 are having their own impact on society and the economy; the oldest of them aren’t that many years from entering the full-time workforce.
Growth & Innovation, Strategic Planning, Strategy Development
At this still early stage, economic modeling and econometric evidence suggest that robots can have a positive and significant impact on productivity and growth. Concerns about labor market impacts should be centered on a skill bias, whereby robots negatively affect lower-skilled workers. Public investment in preparing the workforce for advancing automation will optimize domestic welfare and global competitiveness.
Synergies may justify valuations, but they pose serious challenges to realize. More than three-quarters of companies say they can’t reach return thresholds on M&A transactions without including synergies, but only a minuscule number find realizing these synergies straightforward.
Corporate development executives are stuck between a rock and hard place—the current M&A market is overvalued, but boards and shareholders look to them to complete deals to meet growth targets. And the importance of getting deals right has never been higher.
Without product management, a company runs the risk of not growing in big, bold ways. Far too often, manufacturers’ innovation efforts yield little more than minor changes to existing products, rather than new forms of customer value.