Sunday, November 14, 2021

g-f(2)655 THE BIG PICTURE OF THE DIGITAL AGE (11/14/2021), HBR, MBA Programs Need an Update for the Digital Era




ULTRA-condensed knowledge


"g-f" fishing of golden knowledge (GK) of the fabulous treasure of the digital age, Digital Transformation, The evolution of education (11/14/2021)  g-f(2)426 


Opportunity, HBR

A new education is needed because digital companies defy the old rules  


      • U.S. corporations have changed dramatically over the last 40 years or so. Among the world’s most valuable companies today are Microsoft, Meta (Facebook), Apple, Amazon, Tesla, and Alphabet (Google). Aside from Tesla, which owns Gigafactories, these digital natives use knowledge, talent, subscriber networks, and innovation as their key assets.
      • The magnitude of the seismic change can be judged from the fact that, according to our calculations, each 21st-century digital giant is at least 10 times more valuable than an average 20th-century industrial giant.
      • Eighty percent of companies currently listed on U.S. stock exchanges went public after 1990 and are more likely to be asset-light, digital natives like Airbnb and Uber instead of asset-intensive companies like Alcoa or Walgreen.
      • MBA education must keep evolving from algorithmic learning — teaching predetermined answers to predetermined questions — to meeting the higher-order needs of the changing corporations: creativity, empathy, leadership, conflict management, strategic thinking, understanding technological progress and disruption, crisis management, problem solving, and dynamic decision making. 


                                  Genioux knowledge fact condensed as an image


                                  References


                                  MBA Programs Need an Update for the Digital Era, Vijay Govindarajan and Anup Srivastava, November 11, 2021, Harvard Business Review, HBR.


                                  ABOUT THE AUTHORS


                                  Vijay Govindarajan


                                  Vijay Govindarajan is the Coxe Distinguished Professor at Dartmouth College’s Tuck School of Business and faculty partner at the Silicon Valley incubator Mach 49. He is a New York Times and Wall Street Journal bestselling author. His latest book is The Three Box Solution. His Harvard Business Review articles “Engineering Reverse Innovations” and “Stop the Innovation Wars” won McKinsey Awards for best article published in HBR. His HBR articles “How GE Is Disrupting Itself” and “The CEO’s Role in Business Model Reinvention” are HBR all-time top 50 bestsellers. Follow Vijay on Twitter.


                                  Anup Srivastava


                                  Anup Srivastava holds Canada Research Chair in Accounting, Decision Making, and Capital Markets and is an associate professor at Haskayne School of Business, University of Calgary. In a series of HBR articles, he examines the management implications of digital disruption. He specializes in the valuation and financial reporting challenges of digital companies. Follow Anup on LinkedIn.



                                  Extra-condensed knowledge


                                  Learned lessons, HBR 


                                  • Some of the earliest business schools were started to fulfill the needs of industrial and automobile companies. For example, MIT’s business school is named after Alfred Sloan, the ex-CEO of General Motors. University of Pennsylvania’s business school is named after Joseph Wharton, a leader in industrial metallurgy. Business schools have historically been organized into watertight departments, such as finance, accounting, production and operations management, marketing, and human resources. This department structure mimics that of a 20th-century automobile or industrial company.
                                  • For a large part of the 20th century, the dominant logic of business was based on the use of physical assets to produce physical goods. The biggest investments were in machines and factories. The costs of producing the product, composed of labor, raw material, energy, and machine hours, ate away most of the profits from revenues, leaving thin margins. 



                                  Condensed knowledge




                                  Lessons learned, HBR


                                  • Digital businesses defy those rules. Think about Google’s search engine, Meta’s Facebook, or Microsoft’s operating system. The cost of servicing a new customer for each is negligible, so each dollar of revenue flows straight to pre-tax profits. Digital assets can be used an infinite number of times in infinite places, without any erosion. In fact, each usage grows the value of the digital asset because of network effects, leading to increasing returns. Knowledge products can be distributed all over the world instantaneously using the internet, so most digital companies compete globally. This strategy, combined with extremely low variable costs, implies that very few players can successfully address the entire global market. Some of them earn winner-takes-all profits. 
                                  • The dominant strategy then becomes to establish first-mover advantage, grow your market, and become the global market leader as quickly as possible. In accounting terms, this means: Grow revenues instead of managing costs.
                                  • The readiness can be judged easily by counting how many freshly trained MBAs were ready to face the disruptions caused by the Covid pandemic. The pace of transformation in business school curricula we outline would differentiate the leading MBA programs from the rest.



                                  Some relevant characteristics of this "genioux fact"

                                  • Category 2: The Big Picture of the Digital Age
                                  • [genioux fact deduced or extracted from HBR]
                                  • This is a “genioux fact fast solution.”
                                  • Tag Opportunities those travelling at high speed on GKPath
                                  • Type of essential knowledge of this “genioux fact”: Essential Analyzed Knowledge (EAK).
                                  • Type of validity of the "genioux fact". 

                                    • Inherited from sources + Supported by the knowledge of one or more experts.


                                  References


                                  “genioux facts”: The online programme on MASTERING “THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)655, Fernando Machuca, November 14, 2021, blog.geniouxfacts.com, geniouxfacts.com, Genioux.com Corporation.


                                  ABOUT THE AUTHORS


                                  PhD with awarded honors in computer science in France

                                  Fernando is the director of "genioux facts". He is the entrepreneur, researcher and professor who has a disruptive proposal in The Digital Age to improve the world and reduce poverty + ignorance + violence. A critical piece of the solution puzzle is "genioux facts". The Innovation Value of "genioux facts" is exceptional for individuals, companies and any kind of organization.




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