Zero Revolution

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In densely populated areas, ride-pooling—where multiple passengers share a car—may be favored to reduce congestion. App-based mobility services have grown because consumers value what they provide—they did not come about due to government fiat. With electric vehicles EVs , however, government subsidies, incentives, and regulation have been the key stimulant. If a shift to EVs takes place at scale, the implications will be large for both the oil and electric power industries.

But light vehicles today account for only about a third of total oil demand, and the timing and pace of change are far from clear. More than 1 million electric vehicles were sold worldwide in , up 43 percent from the prior year. Recent sales have grown rapidly, but fast growth is easier when the starting point is near zero.

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EVs still accounted for only 1. If supportive government policies fade away, EV sales could be hobbled, possibly severely. The lack of recharging infrastructure is another major challenge. But questions about their economics remain. Even with continued policy support and proliferation of fast-charging infrastructure, the shift to EVs will take time.


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The most profound innovation is driverless technology. Leading tech companies and startups are active, partnering with—and sometimes competing with—the big carmakers. Driverless technology will provide opportunities to generate additional revenues by providing entertainment, information, and communications to passengers, so firms from other industries are becoming active in the driverless vehicle race as well.

One big impact of driverless technology will be improved road safety. More than 1 million people are killed each year in car accidents around the world. In addition to saving lives, driverless technology may reshape how we live.

But, as is often the case, the company lacked visibility into its spending. Particularly valuable were ZBB dashboards that allowed the retailer to drill down by cost category and filter by cohorts of stores with similar characteristics see Figure 1. For example, when examining supplies costs, the retailer identified stores that were nearly identical across key characteristics such as sales, sales mix, basket size and location, yet the supplies budget for some of those stores was nearly double that of others in the same cohort.

The retailer saw an additional benefit from the granular internal benchmarking data that ZBB provided: Some costs began to decline even before any budget adjustments. For example, travel spending started to fall as soon as the organization got wind that management could easily see which functions, regions and stores were under- or over-performing compared with peers by cost subcategory.

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Historically, this retailer had been successful in using procurement-led efforts to reduce the rate of spending in key categories. Yet, without the disciplined ZBB approach, those savings were often re-spent in increased usage. While the initiative owners declared success, pointing to significant savings, those dollars never seemed to materialize on the bottom line.

In addition to implementing ZBB, retailers that truly want to address structural challenges with their current cost base turn to zero-based redesign for a onetime reset. Unlike traditional cost-cutting, which starts with the current state and looks at how the existing organization and activities can be improved—thus justifying what to cut—ZBR begins with the desired future state, defining which activities are required and justifying what to keep. That means investing to understand the process redesign and simplification needed to implement the business strategy, identify the resources required to deliver those activities and design the optimal organizational structure to support those resources.

ZBR results in dramatically simplified processes, with fewer steps, fewer meetings and fewer people attending meetings. Over the past several years, another US-based retailer revamped its strategy to compete more effectively amid rapid industry disruption. However, it needed to generate significant cost savings to fund the new strategy while reorienting each function within the organization around the new set of priorities.

It relied on zero-based redesign. The company used ZBR to transform its human resources function, reimagining the HR business partner role to focus on providing senior leaders with strategic support on their most important human capital and workforce planning issues. Administrative tasks were peeled away and consolidated. HR silos within different parts of the business were broken down and replaced with HR centers of expertise for activities such as talent acquisition.

Highly manual and inefficient HR processes were streamlined through automation, replaced by employee self-service or eliminated. Savings across HR subfunctions varied dramatically, as the zero-based approach allowed the retailer to prioritize strategic costs—those like technology, central data and analytics, which contribute to revenue and profit growth—while eliminating costs in nongrowth areas.

Process redesign was required to support the changes. The retailer automated applicant screening, for example, and reduced administrative roles in the store.

The Zero Revolution - Henk Peeters

It needed to update its year-old IT systems to enable more self-service options for employees. Meanwhile, a huge cultural change was necessary to pull it all off. Enviada por Rodrigo , Traduzida por Pedro. Recomendar Twitter.

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