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ZOOMING IN
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REPORTS
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TREND HUNTER
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ITEMS OF INTEREST
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ZOOMING IN
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The Limit of Risk
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The world of laptops is so hot it's almost smoking. Dell has recently had to recall 4.1 million batteries. Apple has followed suit, with 1.8 million, and Panasonic with 6,000. In all three cases the recall is due to the danger of fire or explosion. In some cases, batteries have actually exploded or burst into flames. Toshiba, too, has announced a voluntary battery recall affecting 340,000 laptops, though in this case due to a potential charging or discharging issue. All these batteries were supplied by Sony, which, it seems, sourced them from another supplier. Given the potential problems for users (one laptop exploded as its owner was boarding a plane) and, on a different scale, the damage such quality defects undoubtedly do to manufacturers, it becomes imperative to review quality control procedures and question the policy of serial outsourcing. The challenge is to ensure that product reliability is not undermined by efforts to maintain profit margins by cutting costs to the bone and speeding new model introduction. At least, not to the extent of running risks such as have made headlines recently.
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Commentary by Jaume Ribera, IESE professor
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Incidents with batteries are always very damaging to a manufacturer's reputation. And occasionally they may have serious consequences for customers. Because the danger was relatively unknown until quite recently, most users are not prepared for it.
Full Story (PDF, 22 Kb)
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REPORTS
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Spain Needs to be More Competitive
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Title: The Global Competitiveness Report 2006-2007 Source: World Economic Forum (WEF) Date: 27 September 27, 2006 Abstract: This year, for the first time, Switzerland leads the World Economic Forum's global competitiveness rankings. The Alpine nation stands out among the 125 countries taking part in the survey (177 in 2005) for its excellent infrastructure, high level of technological innovation, and strong corporate R&D investment, among other things. As in previous years, the Nordic countries rank high, with Finland and Sweden holding second and third place. In contrast, the United States drops from first to sixth place. While its business environment remains excellent, the World Economic Forum's experts warn that its competitiveness is threatened by major economic imbalances. Spain remains in 28th place, the same as last year. According to IESE professor Eduardo Ballarín, who coordinated the Spanish contribution to the report, labor market flexibility is one of the main challenges Spain must address in order to improve its position in this ranking. It also needs to reduce goods market distortions.
Full Story
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Lack of Communication Between IT Managers and General Management Causes Concern
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Title: IT Managers Survey Source: Intel and Coleman Parkes Date: September 2006 Abstract: During April and May this year, at Intel's request, Coleman Parkes Research conducted a survey of IT managers in nine European countries, including Spain. The sample was restricted to companies with at least 500 employees. The main conclusion is that “there are challenges to be overcome” in communication between IT managers and general management. Also, 68% of the 900 respondents said that aligning IT objectives with business objectives is their biggest challenge. In a finding that seriously questions IT efficiency, 85% of IT managers claimed to have no reliable model for calculating and communicating to top management the total cost of new IT resources. On the security front, 74% of respondents said their main concern is maintaining security, while 66% believe that the biggest threat comes from the company's own employees. Overall, Spanish IT managers have the same concerns as their European colleagues, though they give priority to integration problems in IT systems.
Full Story (PDF, 26 Kb) (In Spanish)
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TREND HUNTER
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Online Video Looking to Make Money
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The runaway success of YouTube, with nearly 20 million unique users per month, has ignited interest in video downloads. Suddenly, everyone wants to be in the online video distribution business. One example is the iTunes store, which has started to offer a video service, initially in the United States, in collaboration with Disney. Others include Amazon.com's Unbox and MTV Networks, which has reached an agreement with Google to distribute ad-supported video programming through Adsense, Google's advertising network. It remains to be seen which business model prevails. For the time being, however, some players are relying on advertising as their main source of revenue. One such is NBC Universal, with its more than 200 affiliated television stations. NBC has announced a new, on-demand video web site, National BroadBand Company (NBBC). However, IDC experts warns that the insertion of advertising clips may turn users off and in the long run lead to fewer visits.
Articles in Financial Times (payment service), Wharton and The Economist (payment service) News in BusinessWeek
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ITEMS OF INTEREST
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Copyright 2008 e-business Center PricewaterhouseCoopers & IESE Business School.
Copyright 2008 e-Business Center PwC&IESE. All rights reserved. This document can be redistributed, retransmited or copied without modifying for any but commercial use. This copyright comment and the URL http://www.ebcenter.org must be included at all times.
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