First Look

Abstract—While existing theory suggests that increased contact between customers and employees diminishes efficiency, recent research demonstrates that when employees can see their customers, the beneficiaries of their efforts, the quality and efficiency of the service they deliver can actually improve. Studies in food service show how revealing customers to employees can lead employees to feel more appreciated, enhancing their job satisfaction and willingness to exert effort.

Publisher's link: https://archive.harvardbusiness.org/cla/web/pl/product.seam?c=35966&i=35968&cs=c47cdb98df17b9135950d44df0b063b0

Abstract—China's sustainable development faces three challenges: first, the follow-up momentum of sustainable economic growth and economic transformation is insufficient; second, some resources and environment loads have reached their limits; third, some products affecting the health and rights of the people as well as the related entities' behavior are challenging the legal and moral bottom line. These three aspects are required to establish a new evaluation system including the indexes of economic performance, environmental performance, and social responsibility evaluation, which cover the company in the national, regional, and corporate levels for the purpose of realizing the comprehensive evaluation of economic and environmental performance and social responsibility. Considering the lessons learned from implementing a national evaluation system of green GDP, and before forming the system complexity model, the easiest issues first can be taken to establish the evaluation system of economic, environmental, and social responsibility respectively, which will be integrated in practice by the executive entities. The strategy of a new evaluation system should adjust the structure of the original evaluation system with the idea of reform and require the development of the rule of law, including formulating relevant laws and the legal framework. This paper proposes three specific suggestions about the new sustainable evaluation system and emphasizes that the evaluation based on the integrated report is the specific performance of the new evaluation system strategy at the enterprise level.

Publisher's link: http://www.bulletin.cas.cn/ch/reader/view_full_html.aspx?file_no=20140401&flag=1

Abstract—When Google bought Nest, a maker of digital thermostats, for $3.2 billion just a few months ago, it was a clear indication that digital transformation and connection are spreading across even the most traditional industrial segments and creating a staggering array of business opportunities and threats. The digitization of tasks and processes has become essential to competition. General Electric, for example, was at risk of losing many of its top customers to nontraditional competitors-IBM and SAP on the one hand, big data start-ups on the other-offering data-intensive, analytics-based services that could connect to any industrial device. So GE launched a multibillion-dollar initiative focused on what it calls the industrial Internet: adding digital sensors to its machines; connecting them to a common, cloud-based software platform; investing in software development capabilities; building advanced analytics capabilities; and embracing crowd-based product development. With all this, GE is evolving its business model. Now, for example, revenue from its jet engines is tied to reduced downtime and miles flown over the course of a year. After just three years, GE is generating more than $1.5 billion in incremental income with digitally enabled, outcomes-based business models. The company expects that number to double in 2014 and again in 2015.

Publisher's link: http://hbr.org/2014/11/digital-ubiquity-how-connections-sensors-and-data-are-revolutionizing-business/ar/1

Abstract—Health care providers in much of the world are trying to respond to the tremendous pressure to reduce costs-but evidence suggests that many of their attempts are counterproductive, raising costs and sometimes decreasing the quality of care. Using evidence from field research conducted at more than 50 health care provider organizations, Kaplan and Haas identify five common mistakes when managers attempt to cut health care costs. The mistakes are triggered, primarily, by working from the line-item expense categories on P&Ls, rather than clinically based structural models of the processes actually used to deliver care. Sustainable cost reduction is best achieved by optimizing the quantity and mix of all the resources needed to produce excellent outcomes for a patient's medical condition, not by across-the-board reductions in line-item expenses.

Publisher's link: http://hbr.org/2014/11/how-not-to-cut-health-care-costs/ar/1

Abstract—Information technology is revolutionizing products. Once composed solely of mechanical and electrical parts, products have become complex systems that combine hardware, sensors, data storage, microprocessors, software, and connectivity in myriad ways. These "smart, connected products"-made possible by vast improvements in processing power and device miniaturization and by the network benefits of ubiquitous wireless connectivity-have unleashed a new era of competition.

Publisher's link: http://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition/ar/1