Contributed Articles

Using Business Anthropology for Strategic Cost Reduction

by ANDREAS WESTER HANSEN, Senior Manager, ReD Associates In recent years, business anthropologists have come to play a role as top-level advisors to large corporations. In particular, anthropologists have helped corporations shift their gaze from an inside-out perspective to an outside-in perspective on their companies (Madsbjerg and Rasmussen, 2014a). Business anthropologist (Baba, M. 2006) who have challenged the conventional inside-out approach to corporate decision-making, have often been active in helping companies pursue ‘blue ocean strategies’ (Kim and Mauborgne 2015, Kim and Maugborne 2005), ‘disruptive innovations’ (Christensen, 1997) or more generally to pursue ‘differentiation’ as opposed to ‘cost leadership’ strategies (Porter, 1985). Other times, business anthropologists have studied and helped companies make sense of their organizational cultures (Schein 2004) or focused on the globalizing nature of the contemporary organization (Jordan, 2013). Cost reduction is still considered outside of domain of...