The good jobs strategy – Zeynep Ton

MIT Sloan Adjunct Associate Professor Zeynep Ton

MIT Sloan Adjunct Associate Professor Zeynep Ton

From Acast. 

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Zeynep Ton is a Professor of Operations Management at the MIT Sloan School of Management.

She studies the retail sector and the way that some firms have invested in paying more and doing more for their workers. She studied firms like QuikTrip, Trader Joes, Mercador in Spain – she found that firms that treat their workers better achieve better results.

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Why GoPro needs to pick a model–John Carrier

MIT Sloan Sr. Lecturer John Carrier

MIT Sloan Senior Lecturer John Carrier

From Huffington Post

GoPro’s recent loss of $107.5 million is certainly dramatic. After all, last year it announced a profit of $16.8 million. However, it’s also a cautionary tale for all new companies that find themselves in a similarly precarious financial position after enjoying rapid financial success. When this happens, it’s time to take a hard look at the business model.

The big question the company should ask is whether it aspires to be more like Crocs, Chrysler, or Apple. These three companies have all found varying degrees of success through very different models. Each offers substantial pros and cons so it is important for GoPro to know its vision and find the right fit.

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A deep look inside Apple Pay’s matchmaker economics – Richard Schmalensee and David S. Evans

MIT Sloan Professor Richard Schmalensee

MIT Sloan Professor Richard Schmalensee

From Harvard Business Review

Standing on stage on September 9, 2014 at Apple’s Worldwide Developer’s Conference (WWDC), Tim Cook announced, “We’ve created an entirely new payment process, and we called it Apple Pay.” Cook displayed a video of a woman who held her iPhone 6, the company’s upcoming upgrade, near a payment terminal.  She paid in the blink of any eye. “That’s it,” Cook said, exclaiming twice over “just how fast and just how easy” the new payment method was. An Apple press release claimed the new service would “transform mobile payments.”

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When selling virtual products abroad, don’t put prices on autopilot — Joey Conway and Catherine Tucker

MIT Sloan Assoc. Prof. Catherine Tucker

MIT Sloan Assoc. Prof. Catherine Tucker

From TechCrunch

If you have a physical product that you want to sell in more than one country, determining the price in different markets can be challenging. You might have to open an office in each country, or at least hire a consultant to assess local demand and analyze the competition.

But if you have a virtual product — say an app for a mobile phone — setting the price for it in different countries is easy. Using the individual exchange rate, the app store instantly will convert the price from your home country to any of the world’s many currencies.

This is, very likely, how prices are set for most smartphone applications sold in different countries. As developers prefer to spend time solving technical challenges, it is all too convenient to leave the responsibility of currency calculations and pricing to Apple or Google or some other virtual marketplace.

But is this the best approach when sellinginternationally? Is there a more profitable way to price virtual products sold in different currencies?

We explored these questions in an experiment that was both a real-world business trial and an academic exercise. We wanted to see whether we could boost revenue for a virtualproduct, Root Checker Pro, an app that helps Android users customize their phones. The app is sold through Google Play — the app store for Android devices — in more than 130 countries.

For our experiment, we selected six different currencies — Australian dollar, Canadian dollar, British pound, Mexican peso, Malaysian ringgit and Saudi riyal. Over six months, we charged various prices for the app in each of the currencies to see how sales and revenue would respond.

Read the full post at TechCrunch.

Joey Conway is creator and owner of Android app Root Checker Pro. He received his MBA from the Sloan School of Management in May 2015.

Catherine Tucker is a Professor of Marketing at MIT Sloan.  She is also Chair of the MIT Sloan PhD Program.

What Apple’s standoff with the FBI means for your medical records — Zen Chu and Maulik D. Majmudar

MIT Sloan Senior Lecturer Zen Chu

MIT Sloan Senior Lecturer Zen Chu

From Fortune

The data privacy debate is overlooking a very important issue.

The issue of data privacy on mobile phones has been brought to public and judicial debate again with Apple’s AAPL 0.56% refusal to create a backdoor into its operating systems. The debates so far have failed to highlight that granting governments access to mobile phone data opens access to not only sensitive financial and personal information, but also the crown jewels of healthcare: patient health records. Now that the majority of patients and doctors are accessing, storing, and transmitting healthcare information via mobile phones and connected medical devices, smartphone security has become a lynchpin of patient data security.

Healthcare data breaches are a real and serious threat and have already led to identity theft, financial loss, civil rights and employment discrimination, and even a risk to patient safety. In addition to the moral responsibility of protecting these data, the Health Insurance Portability and Accountability Act (HIPAA) specifically mandates that patient data be encrypted and assigns meaningful fines to violations. These breaches by hospitals, companies and doctors can add up to multi-million dollar liabilities.

Last year saw the active theft of over 100 million health records, as reported in Health IT Security, with the vast majority from malicious hacking. These data breaches involved electronic medical records, which can sell for more than 20 times the value of a stolen credit card. Today, most hospital and medical records systems have created smartphone apps and web portals for both patients and doctors to access via the smartphone in their pockets, enabling smartphones to be the new weakest link protecting personal health information.

Healthcare records contain mission critical and sensitive information, including social security numbers, financial information, diagnostic test results, medical diagnoses, and the correct dosages of hazardous drugs. Dr. John Halamka, a professor at Harvard Medical School and CIO of Beth Israel Deaconess Medical Center, wrote about his hospital’s experiences with internet-connected drug infusion pumps, which have been compromised. In extreme cases, malicious hacking also could be used to disrupt the workings of a heart pacemaker or drug infusion pump to deliver the wrong amounts of hazardous drugs.

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