Business reality vs investment
August 3, 2017
Digital transformation isn’t cheap and old-line enterprises are about to struggle to balance current results and future investments and swap out executives. In other words, investing in the future is swell until the core business starts to show signs of weakness.
Here are three recent examples of stalwart enterprises that are investing for the future with new captains.
Mattel outlined a digital transformation overhaul that focused on building toys that will teach and develop toddlers and prep them more for science, tech, and engineering careers well into the future. Mattel also talked analytics, user experience, and a design cadence that rhymed with what you’d hear from a tech company.
But there’s a cost. Mattel also cut its dividend and pulled its practice of shorter-term financial guidance and replaced it with longer increments. Mattel CEO Margo Georgiadis will take the funds that would have gone to a dividend and put it on digital transformation.