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Blog Entries in July 2018

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

The Factors Behind China’s Growing Strength in Innovation

In 2006, 26-year-old Frank Wang started up DJI in a dorm room at Hong Kong University of Science & Technology. The legend goes that Frank’s father had given him an expensive remote-controlled model helicopter for doing well in school. When the helicopter predictably crashed shortly after, Wang became determined to build a better controller. As part of his graduate thesis, he perfected an electronics flight...