“We have more than 250 operating companies in 60 countries employing approximately 115,000 people.” Statements like these illustrate how large companies, almost by definition, are highly confusing entities. They encompass all sorts of legal entities for tax and other purposes that have little to do with running the business. Even the actual lines of business can be highly complex because of the sheer number of products and departments. They acquire and divest businesses all the time, mash them up in a variety of confusing business units, and sometimes obfuscate their reporting to avoid giving away too much information to competitors. Private companies are often even worse, of course, because they are not required to report as much information.
Brekiri is working on solving this problem by providing a clear, simple set of metadata to help you get your bearings on a company you’re researching, whether it’s a potential customer, competitor, or partner. We show you the business unit structure, categorize those units into more specific industry segments than other sources, and give you a jumping off point for searching for financials, people, or other topics. Continue reading What Does This Company Do Again?
I was talking with a private equity firm last week about how they did their research into software and hardware technology niches to understand potential investments, competitors, and market dynamics. They estimate that 80% of the material they read is a waste of time, yet they consider their research process a proprietary advantage. I think that conversation reveals a basic business assumption that is about to change dramatically.
In every industry, you can picture thousands of unfortunate analysts across dozens of companies all doing essentially the same work. They’re all forecasting market growth, analyzing competitors, trying to understand customers, and so on. And they read the same news, the same financial reports, and the same market research, for the most part. The results of this work are closely guarded proprietary analyses, yet they’re all very similar. There’s a huge amount of duplicated effort that doesn’t add much value. Continue reading Open Source Business Analysis
Having taken a look at LinkedIn’s financials, I also want to drill down a bit and look at the product from a user perspective.
LinkedIn is clearly going to have an extremely good IPO, whether they end up valued at $3 billion or $4 billion. So it’s odd to say they’ve done a bad job of leveraging their assets, but it’s true. The reason is that LinkedIn is really three or four very different products bundled into one. The company has done a good job of developing and exploiting the recruiting product, but they’ve been pretty mediocre on the other ones, whether due to constrained resources or a lack of attention. Continue reading The Many Faces of LinkedIn
Among social networks, LinkedIn is a fascinating outlier. It’s by far the largest professional network, and as such it personifies the debate over whether people want different networks for different purposes. I think the answer is yes. Both Facebook and LinkedIn are based on webs of relationships, but no degree of privacy controls or slapped-on features can turn Facebook into an effective business networking tool. Perhaps I’m biased. For me, Facebook is a place to socialize, while LinkedIn is a place to promote myself professionally. Just because two products look similar, it doesn’t mean they do the same job.
Let’s take a closer look at LinkedIn now that the company is moving towards an IPO. Continue reading Is the LinkedIn IPO a Good Deal?
Healthcare providers are under pressure on a variety of fronts. Patients demand extensive care regardless of cost. Payers both public and private are struggling to reduce costs, and the resulting billing struggles result in high administrative overhead. Staffing is in short supply, resulting in high overtime and temporary staffing costs. New technology and equipment require large capital expenditures that many facilities cannot afford. Pharma and medical device manufacturers get a much bigger share of the healthcare profit pie.
The situation is even worse for hospitals in particular. They’re overwhelmingly complex organizations, and as a result they’re difficult to manage. They also have high fixed costs, and there is often over-capacity in specific geographical markets, leading to intense competition. From a Porter’s Five Forces perspective, most of the puzzle pieces look pretty bad. Continue reading Who Will Survive Hospital Consolidation?