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IBM Forest and Paper Innovation Center, part of IBM Business Consulting Services, is celebrating its first year of operation by demonstrating how an on-demand business model can increase the after tax return on capital employed (ROCE) in the forest industry from a typical 5% up to as high as 22%. According to the report, although government business enterprises normally are required to operate commercially and usually take the same legal form as private sector businesses, they often enjoy a monopoly and their political context makes their financial reports unreliable for simplistic measures such as return on capital employed. Improvement in the return on capital employed to 10. |
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