Entrepreneurship; Strategy and general management; Technology, R&D management
Keyword(s)
Innovation, leadership, luck
Exceptional innovations are often attributed to brilliant strategies or leaders with superior foresight. But luck is in fact necessary for exceptional innovations in many ways.
ISSN (Print)
0015-6914
ESMT Working Paper
Beyond retail stores: Managing product proliferation along the supply chain
Management sciences, decision sciences and quantitative methods; Product and operations management
Keyword(s)
Product proliferation, lead-time reduction, process redesign, delayed differentiation
Product proliferation occurs in supply chains when manufacturers respond to diverse market needs by trying to produce a range of products from a limited variety of raw materials. In such a setting, manufacturers can establish market responsiveness and/or cost efficiency in alternative ways. Delaying the point of the proliferation helps manufacturers improve their responsiveness by postponing the ordering decisions of the final products until there is partial or full resolution of the demand uncertainty. This strategy can be implemented in two different ways: (1) redesigning the operations so that the point of proliferation is swapped with a downstream operation or (2) reducing the lead times. To establish cost efficiency, manufacturers can systematically reduce their operational costs or postpone the high-cost operations. We consider a multi-echelon and multi-product newsvendor problem with demand forecast evolution to analyze the value of each operational lever of the responsiveness and the efficiency. We use a generalized forecast-evolution model to characterize the demand-updating process, and develop a dynamic optimization model to determine the optimal order quantities at different echelons. Using anonymized data of Kordsa Inc., a global manufacturer of advanced composites and reinforcement materials, we show that our model outperforms a theoretical benchmark of the repetitive newsvendor model. We demonstrate that reducing the lead time of a downstream operation is more beneficial to manufacturers than reducing the lead time of an upstream operation by the same amount, whereas reducing the upstream operational costs is more favorable than reducing the downstream operational costs. We also indicate that delaying the proliferation may cause a loss of profit, even if it can be achieved with no additional costs. Finally, a decision typology is developed, which shows effective operational strategies depending on product/market characteristics and process flexibility.
Analyse von Jahres- und Konzernabschlüssen [Analysis of annual and consolidated financial statements]
In Betriebswirtschaft für Führungskräfte: Eine Einführung in betriebswirtschaftliches Denken und Handeln, 5th ed., edited by Walther Busse von Colbe, Adolf G. Coenenberg, Peter Kajüter, Ulrich Linnhoff, Bernhard Pellens, 811–838. Stuttgart: Schäffer-Poeschel.
Andreas Bonse, Ulrich Linnhoff, Bernhard Pellens (2021)
Human resources management/organizational behavior
Keyword(s)
Executives, career shocks, coaching
This is a practitioner article based on a recently published academic paper on career shocks of executive. The article explains the phenomenon of a career shocks and offers strategies for dealing with them.
In Betriebswirtschaft für Führungskräfte: Eine Einführung in betriebswirtschaftliches Denken und Handeln, 5th ed., edited by Walther Busse von Colbe, Adolf G. Coenenberg, Peter Kajüter, Ulrich Linnhoff, Bernhard Pellens, 505–546. Stuttgart: Schäffer-Poeschel.
Ulrich Linnhoff, Bernhard Pellens (2021)
Subject(s)
Finance, accounting and corporate governance
Keyword(s)
discounted cashflow, capital budgeting, net present value, monte carlo analysis, wacc, cost of capital, capital expenditure (CAPEX), business plan
Secondary Title
Betriebswirtschaft für Führungskräfte: Eine Einführung in betriebswirtschaftliches Denken und Handeln
Edition
5th ed.,
Pages
505–546
ISBN
978-3-7910-3760-8
ISBN (Online)
978-3-7910-4135-3
Book Chapter
Jahresabschluss [Annual financial statements]
In Betriebswirtschaft für Führungskräfte: Eine Einführung in betriebswirtschaftliches Denken und Handeln, 5th ed., edited by Walther Busse von Colbe, Adolf G. Coenenberg, Peter Kajüter, Ulrich Linnhoff, Bernhard Pellens, 723–774. Stuttgart: Schäffer-Poeschel.
Andreas Bonse, Ulrich Linnhoff, Bernhard Pellens (2021)
total consumer time, digital gatekeepers, gatekeeper power
Pages
37
ISSN (Online)
2190-9938
Book
Betriebswirtschaft für Führungskräfte: Eine Einführung in betriebswirtschaftliches Denken und Handeln [Business administration for managers: An introduction to business thinking and action]
5th ed.,Schäffer-Poeschel
Walther Busse von Colbe, Adolf G. Coenenberg, Peter Kajüter, Ulrich Linnhoff, Bernhard Pellens (2021)
Subject(s)
Strategy and general management
Keyword(s)
Accounting, finance
Grundlegende Fragen der Unternehmensführung, betriebswirtschaftliche Methoden, Werkzeuge und Zusammenhänge verstehen: Das Buch vermittelt Führungskräften und Studierenden die notwendigen BWL-Kenntnisse. Praxisorientiert und leicht verständlich erschließt es - gerade auch für Nicht-BWLer - alle wichtigen Themen: Von der Ausrichtung auf Markt und Wettbewerb, über die Gestaltung interner Strukturen und Prozesse, bis hin zu den Instrumenten der Unternehmenssteuerung und der Finanzberichterstattung. Für die 5. Auflage wurden sämtliche Beiträge überarbeitet und aktualisiert. Mit Übungsaufgaben, Lösungshinweisen und Kurzglossar wichtiger englischsprachiger Fachbegriffe.
Volume
5th ed.,
Pages
911
ISBN
978-3-7910-3760-8
ISBN (Online)
978-3-7910-4135-3
Online article
Design Thinking: the customer-centric way to innovate
Design thinking, digital transformation, innovation, customer centricity
Business owner and managers are facing the challenge of how to best drive digital transformation in their organizations. Design thinking might be one method to address these challenges and, at the same time, support a mindset change within the companies.
ESMT Working Paper
Effectiveness and efficiency of state aid for new broadband networks: Evidence from OECD member states
Economics, politics and business environment; Information technology and systems; Technology, R&D management
Keyword(s)
Fiber optic technology, state aid, ex-post evaluation, efficiency, OECD countries
JEL Code(s)
C51, C54, H25, L52, O38
The deployment of new broadband networks (NBNs) based on fiber-optic transmission technologies promises high gains in terms of productivity and economic growth, and has attracted subsidies worth billions from governments around the world in the form of various state aid programs. Yet, the effectiveness and the efficiency of such programs remains largely unstudied. We employ panel data from 32 OECD countries during 2002-2019 to provide robust empirical evidence of both. We find that state aid significantly increases NBNs by facilitating the deployment of new connections to 22% of households in the short term and 39.2% in the long term. By comparing the actual amounts of state aid support to the estimated impact on GDP growth, we also find it to be highly cost efficient, as the programs break even after three years on average.