Important New Book By Tuck School Professor Kusum Ailawadi and Darden Professor Paul Farris
Selecting and managing multiple distribution channels is one of the thorniest challenges facing managers today. How do you make physical and digital channels, independent and company-owned ones, platform and pipeline retail, work together? How do you achieve the market coverage you need while preserving your brand’s equity? And how do you do this in a way that is sustainable for all the partners in the distribution...
Posted by: Vijay Govindarajan - 05/04/2020 at 05:59 am
What the Shift to Virtual Learning Could Mean for the Future of Higher Ed
Tectonic shifts in society and business occur when unexpected events force widespread experimentation around a new idea. During World War II, for instance, when American men went off to war, women proved that they could do “men’s” work — and do it well. Women never looked back after that. Similarly, the Y2K problem demanded the extensive use of Indian software engineers, leading to...
Posted by: Vijay Govindarajan - 03/31/2020 at 11:18 am
Becoming A Better Corporate Citizen
Capitalism is under pressure. People all over the world believe that CEOs manage companies for the short term because of a single-minded focus on shareholders. The emergence of activist investors, who focus on quickly extracting outsize returns, has created even more angst about how companies are run. To address these issues, academics, think tanks, corporate leaders, and NGOs have started talking about how to reform the...
Posted by: Vijay Govindarajan - 02/20/2020 at 06:16 am
We Are Nowhere Near Stakeholder Capitalism
If you read the headlines coming from the 2020 World Economic Forum at Davos, you may start believing that public corporations have fundamentally changed their raison d’être: from creating value for shareholders to benefiting society-at-large. In our opinion, this conclusion is premature. We haven’t seen real change yet, and we won’t without first...
Posted by: Vijay Govindarajan - 01/30/2020 at 07:39 am
Understanding India’s Chilly Reception of Jeff Bezos
Developing nations normally welcome CEOs of large multinationals who promise to invest in their countries and generate jobs. However, Jeff Bezos’s recent visit to India was marred by protests, an antagonistic remark by the Indian finance minister, and a refusal to meet by the Indian prime minister — all despite Bezos’s promising to spend a billion dollars and generate millions of jobs...
Posted by: Vijay Govindarajan - 01/23/2020 at 05:12 am
How India Plans to Protect Consumer Data
The Indian government looks set to legislate a Personal Data Protection Bill (DPB), which would control the collection, processing, storage, usage, transfer, protection, and disclosure of personal data of Indian residents. Despite its regional nature, DPB is an important development for global managers. The digital economy in India is expected to reach a valuation of $1 trillion dollars by...
Posted by: Vijay Govindarajan - 12/18/2019 at 06:30 am
Midsize Companies Are Growing, But Struggling to Earn Profits
This summer, we published an analysis showing that the gap between large and small firms has grown over the past 15 years, with large companies becoming more likely to maintain their dominance and small ones less likely to become big and profitable. Several readers wrote to us asking about what’s happened to medium-sized firms — those not included in the top 30% or the bottom 30% of firms as measured...
Posted by: Vijay Govindarajan - 11/05/2019 at 06:56 am
The Vijay Govindarajan Video Series
My Three Box Solution Video Series launches on:
Harvard Business Review
Posted by: Vijay Govindarajan - 10/09/2019 at 06:17 am
To Lower Health Care Costs, Look to International Innovations
It’s hardly surprising that health care is shaping up to be a central issue of the 2020 U.S. presidential campaign. Despite several plans floated by Democratic candidates, much of the debate still comes down to one question: Who will get stuck with the bill?
Read the entire post on Fortune
Posted by: Vijay Govindarajan - 09/26/2019 at 01:04 pm
No, WeWork Isn’t a Tech Company. Here’s Why That Matters
Last week, WeWork, the coworking space now known as The We Company, released its S-1 filing to go public. That spurred numerous concerns about the company’s large valuation ($47 billion at last count), given its hefty losses ($1.6 billion on revenues of $1.8 billion) and despite its rapid growth (86% year-over-year revenue growth). It also renewed questions about WeWork’s claims of being a...
Posted by: Vijay Govindarajan - 08/21/2019 at 07:55 am
The Gap Between Large and Small Companies Is Growing. Why?
Research and news headlines are replete with the idea that traditional large companies can’t innovate, and that smaller digital companies will render many larger ones extinct. While we’ve seen numerous startups of the last thirty years not only disrupt businesses but become the megacorporations of today, we wondered whether this disruption is accelerating with the momentum of digital...
Posted by: Vijay Govindarajan - 08/16/2019 at 07:21 am
Thinkers 50 nomination for Geoffrey Parker, Marshall Van Alstyne, and Sangeet Choudary
I strongly endorse three thought leaders for Thinkers 50 2019 List. Please send your nominations for Geoffrey Parker, Marshall Van Alstyne, and Sangeet Choudary by going to this link: https://thinkers50.com/nominate-2019/
It is easy to make the case for Geoff, Marshall, and Sangeet. Consider a few highlights:
They are the co-authors of the best-selling book Platform Revolution, with nearly 200,000 copies sold; now...
Posted by: Vijay Govindarajan - 08/15/2019 at 07:32 am
The Problem with France’s Plan to Tax Digital Companies
France recently approved a 3% tax on revenues generated by large digital companies in its territory, a move that is now being investigated as a potentially unfair trade practice by the U.S. government.
The French legislation, which would invariably affect U.S. tech giants such as Alphabet, eBay, and Facebook, is the kind of tax that the European Union has wanted to impose for years. Emboldened by the...
Posted by: Vijay Govindarajan - 07/17/2019 at 06:08 am
R&D Spending Has Dramatically Surpassed Advertising Spending
In February, 3G-owned Kraft Heinz Co. wrote down the value of its Kraft and Oscar Mayer brands by $15.4 billion. 3G co-founder Jorge Paulo Lemann described 3G’s mistake of not spending enough to sustain brands: “We bought brands and we thought they would last forever.
Read the entire post at Harvard Business Review>>
Posted by: Vijay Govindarajan - 05/20/2019 at 07:04 am
Vote For Ravi Ramamurti For Thinkers 50
I strongly recommend that you nominate Ravi Ramamurti, University Distinguished Professor and founding Director of the Center for Emerging Markets at Northeastern University, as one of the Top 50 Management Thinkers for Thinkers 50: https://thinkers50.com/vote/
Ravi has done pioneering research on strategy and innovation in emerging markets. His influential contributions include an award-winning article on “reverse...
Posted by: Vijay Govindarajan - 05/07/2019 at 08:31 am
Venkat Venkatraman—Thinkers 50 Vote
I strongly recommend that you vote for Boston University Professor Venkat Venkatraman for Top 50 Management Thinker for Thinkers 50 Rankings as well as for the Distinguished Award for Digital Thinking: https://thinkers50.com/vote/
Venkat has been working at the intersection of IT strategy and business strategy since 1986 when he started his career at MIT. He wrote a seminal paper on IT-induced business...
Posted by: Vijay Govindarajan - 05/07/2019 at 08:30 am
Should Dual-Class Shares Be Banned?
Voices against dual-class shares, which violate the principles of corporate democracy and the precept of “one share one vote,” have increased over time. An influential 50-member Investor Stewardship Group (ISG), overseeing $22 trillion in assets, demands a total elimination of dual-class stock. Council of Institutional Investors (CII), representing managers of $25 trillion assets,...
Posted by: Vijay Govindarajan - 12/06/2018 at 06:39 am
Should Everyone Be Allowed to Invest in Private Tech Companies?
The SEC Chairman recently announced a policy initiative to enable the ordinary investors to invest in private companies. Currently, only wealthy accredited investors are allowed to invest in private companies. His stated goal is enabling small investors to get access to alternative high-quality investments, such as in private tech companies like Uber and AirBnB. But in our view this policy, even if...
Posted by: Vijay Govindarajan - 10/16/2018 at 08:45 am
How One Nonprofit Is Expanding Health Care for the Uninsured
America spends $3.3 trillion on health care, or more than $10,000 per person, which is twice as much as any other industrialized country. Yet nearly 30 million Americans, or 10% of the population, are uninsured. If the Affordable Care Act unravels in the near term, the number of insured could creep back up to 50 million, the level in 2009. These numbers exclude the millions more who are underinsured —...
Posted by: Vijay Govindarajan - 10/11/2018 at 07:55 am
Why We Shouldn’t Worry About the Declining Number of Public Companies
Elon Musk recently tweeted that he intends to take Tesla private, that is, to take Tesla off U.S. stock exchanges. In a parallel development, the number of companies listed on U.S. stock exchanges has declined by almost 50% from its peak in 1996, despite dramatic increase in aggregate market capitalization. Many conjectures have been offered to explain this controversial trend. We offer...
Posted by: Vijay Govindarajan - 08/27/2018 at 07:24 am
Why the World Needs Doctors with These 3 Qualities
Doctors are sometimes blamed for the ills of the U.S. health care system, but our five-year research project in India and the U.S. revealed the opposite. Almost every high-performing health care organization we studied was led by a medical professional (something that academic research has also found).
Read the entire post at Harvard Business Review>>
Posted by: Vijay Govindarajan - 08/13/2018 at 08:44 am
A Blueprint for Digital Companies’ Financial Reporting
On June 25, 2018, Facebook lost market capitalization of more than $100 billion in just two hours of trading after it announced its quarterly performance, despite exceeding analysts’ earnings forecasts. What caused this slump? It failed to meet its revenue and subscriber growth targets. This example illustrates that investors consider information beyond just earnings as value-relevant. In a recent HBR...
Posted by: Vijay Govindarajan - 08/13/2018 at 08:42 am
Task Shifting Could Help Lower Costs in U.S. Health Care
If you ran a fancy restaurant, would you want the chef also to clean dishes and mop the floor? Of course not. You’d hire others to do these things and let the chef focus on producing delicious food. This simple idea — that one should match the skill level of the individual to the skill requirements of a task — has influenced how many businesses operate. That’s why lawyers are helped by paralegals,...
Posted by: Vijay Govindarajan - 07/19/2018 at 09:14 am
3 Entrepreneurs Who Made It Their Mission to Lower Health Care Costs
There is a healthcare crisis in the U.S. which cries out for breakthrough healthcare delivery innovations that aim at significant cost reductions and wider coverage. In 2016, the U.S. spent a staggering $3.2 trillion, or almost 18% of its GDP, on health care — that’s $10,000 per person, twice as much as any other country in the industrialized world. Innovation has the power to ratchet down U.S. costs quite...
Posted by: Vijay Govindarajan - 07/09/2018 at 10:05 am
Why We Need to Update Financial Reporting for the Digital Era
The market caps of just four companies, Apple, Alphabet, Amazon, and Microsoft, now exceed $3 trillion. Their combined assets of $944 billion are an order of magnitude lower than the combined assets of $7,700 billion of the largest 3,177 companies in 1986, when the aggregate market capitalization reached $3 trillion for the first time. In our recent HBR article, we argued that financial statements fail to capture the...
Posted by: Vijay Govindarajan - 07/06/2018 at 08:58 am