Organization 21C: Someday All Organizations Will Lead This Way

Inefficiencies and Opportunities Are Exposed

As these pressures intensify, the inefficiencies that still exist in doing business are also becoming increasingly evident. Take, for example, the whole area of logistics—the processes by which goods move from company to company or from company to customers. Globally, approximately two trillion dollars a year are spent on these services, and 40% of those dollars pay for administrative services, sometimes called paperwork. A transoceanic shipment can require up to 26 documents. What if we could improve the efficiency of these administrative processes by 50%? That would result in annual savings of 400 billion dollars.

No industry is free of these intercompany inefficiencies. Take healthcare, for example. ...