Meeting increasing global demand requires dramatically improving resource productivity. Yet technological advances mean companies have an extraordinary opportunity not only to meet that challenge but to spark the next industrial revolution as well....
The resource revolution represents the biggest business opportunity in a century. However, success requires new approaches to management. Companies that try to stick to the old “2 percent solution” (just improve performance by 2 percent annually and you will be fine) are going to become obsolete quickly. Businesses that can deliver dramatic resource-productivity improvements at scale will become the great companies of the 21st century.Substitution, optimization, virtualization.
McKinsey Quarterly
Stefan Heck, consulting professor at Stanford University’s Precourt Institute for Energy, and Matt Rogers, a McKinsey director in the San Francisco office
2 comments:
“Enron has built a reputation as one of the world’s most innovative companies by attacking and atomising traditional industry structures.”
-McKinsey report, published a few months before Enron’s collapse.
Energy Trading, Fiber Optic Networks, Media Streaming, Midstream Gas, Brazillian and Indian Power plants, and Well Services, in hind sight, were probably under valued by Enron given today's on book valuations for the same assets at their new owners. They were supposedly over valued at the time. What a difference a few decades makes, huh? Back then, India and Brazil weren't known as BRICs yet, Streaming media over fiber optic internet was scoffed at before hulu and netflix. Energy and commodity trading became very common. Sad for all the folks who were destroyed by the fancy accounting.
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