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Develop Your Speed-Based Target Profit Mechanism and Start to Live It
Published in Alin Posteucă, Speed-Based Target Profit, 2020
Corporate headquarters often have control over costs, revenues, and investments in operating assets. Periodically the return on investment (ROI) is calculated and it shows how changes in sales, expenses, and assets affect ROI. Any investment center's performance is often evaluated using a measure called ROI. ROI is defined as net operating income divided by average operating assets. Net operating income is income before taxes and is sometimes referred to as earnings before interest and taxes. Operating assets include cash, accounts receivable, inventory, plant and equipment, and all other assets held for operating purposes. The operating asset base used in the formula is typically computed as the average operating assets (beginning assets + ending assets) divided by 2.
How do platforms improve social capital within sharing economy-based service triads: an information processing perspective
Published in Production Planning & Control, 2022
Dun Li, Fu Jia, Tobias Schoenherr, Guoquan Liu
Information processing capacity can be fostered through intra-organizational structure design (Bensaou and Venkatraman 1995), which we identified in this research as being critical (Table 5). We operationalize organizational structure design as the degree of the platforms’ intra-organizational maturity (Tushman and Nadler 1978). Especially when there is a lack of an organismic (tightly and comprehensively connected) structure, the information processing capacity can be negatively affected. DiDi is an illustration of such, in that it spent billions of dollars on developing a world-leading information technology system, which includes ‘DiDi brain’, ‘transportation intelligence’, ‘DiDi safety’, the ‘artificial intelligence lab’, and ‘intelligent drive’. The first three initiatives support the daily ride-sharing business, while the latter two are responsible for self-driving automobiles. These initiatives directly enhance DiDi’s information processing capacity, which has its IT infrastructure team located in China. In contrast, Uber China did not locate technology support within China, which meant that all information technology decisions (i.e. software updates and data analysis) had to be made at the US-based Uber headquarters. This is indicative of Uber China having a relatively low degree of information processing capacity, which makes it potentially slower in responding to any IT issues.