Tag Archive: return on investment

Robots Taking on Pharmaceuticals & Food?

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According to the Wall Street Journal, robots are taking on pharmaceuticals and food preparation.  In pharmaceuticals, companies like Eli Lilly and GlaxoSmithKline are investing heavily in automation to radically change the process of drug discovery.   If robots can handle thousands of samples around the clock (although costs will decrease or be reallocated to more valuable tasks), these results pale in comparison with the vast opportunity to develop drugs quicker! Are you radically re-thinking and innovating with speed in mind? Meanwhile, a burger joint will open in San Francisco that makes $6 burgers entirely by robot.  Creator is betting that robots can create…
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Technology – Should We Take It or Leave It?

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Technology is a hot topic. Artificial intelligence. Autonomous vehicles. 3D printers and additive manufacturing. Business intelligence. We can’t stop talking about it. Many times, these topics are somewhat like fads. Even though there are benefits, we can get carried away and not even pay attention to whether we are gaining value. Thus, we should take a step back and ask a few questions: 1. Do we need the technology or is it just cool? 2. What value does the technology provide? Does it yield a return on investment? What is that return on investment? 3. What is most valued by…
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Case Study in the Power of Design

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Situation: Our client had implemented an ERP system several years ago. As is typical when a system is implemented, they implemented the basics and then took a break to run the business. Although you start out thinking of vast improvements and how you’ll automate all sorts of processes, getting the foundation working effectively with high levels of customer service and some level of efficiency typically takes quite a lot of effort. The team is tired and needs to smooth out the day-to-day business. Understandable. The good news is that they were set up for the future with an improved base.…
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The Right Combination of Technical & Communication Skills ROCKS!

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I am the Chair of the APICS West Coast student case competition, and we just wrapped up our 2017 event. We had 104 students from around the world fly into San Diego to compete. It was a really impressive group of students! The competition is judged 50% on the technical score (the return on investment achieved after several rounds running a business simulation game) and 50% on the presentation to the Boards of Directors of the company. I have to say….some of the best presentations were those who didn’t perform as well on the ROI because they learned from it, took…
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Why Looking at Return on Investment (ROI) is So Much Better than Cost

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How many times have you heard about managing cost (or saving money) in the past week? I bet quite a few, as almost all companies focus significant efforts on cost. In all functions, and certainly if you are in or responsible for Operations, a large portion of your responsibility is to reduce cost. Similar to real estate where it is “location, location, location”, I often hear about “cost, cost, and cost”. Certainly managing cost is vital to success; however, being solely focused on cost will drive you to failure! Instead, I advocate thinking about return on investment. For example, if…
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