Seru Production System: An Organizational Extension of JIT

Speaker: Kathryn STECKE, Ph.D. School of Management
The University of Texas at Dallas

4 May 2012 - Room H006 - From 2 PM to 4 PM

Incentives for Complex R&D Projects

Speaker: Raul O. CHAO
University of Virginia, Darden School of Business

29 March 2012 - Class room H011 - From 2.30 PM to 4.30 PM

R&D projects are critical to innovation and growth, but are often plagued by organizational and project challenges. The organization hierarchy makes it difficult to manage R&D projects because knowledge and development effort needed to deliver project value are decentralized from managerial authority. Making matters worse, complexity in R&D projects often arises from interactions between the attributes that determine a project’s potential value. In light of these challenges, how should the firm structure incentives to ensure that managers reveal the true potential of a project and invest adequate resources to create value? Leading economic models of R&D often consider agency or complexity, but not both. In this paper, we develop a model that shows how an idea that emerges from search on a complex landscape is intimately tied to an agency problem of adverse selection and moral hazard. Our results show that incentives depend on both the mode of search employed in an organization as well as the complexity of the project. When organizations employ local search (exploitation), incentives should be set higher the more complex is the project. Conversely, when organizations employ distant search (exploration), incentives should be set lower the more complex is the project. The reason for this difference is the distribution of idea quality resulting from local or distant search on a complex landscape.

The architecture of complex engineered products, processes, and organizations

Speaker: Prof. Steven Eppinger Professor of Management Science and Innovation Massachusetts Institute of Technology, Sloan School of Management, USA

12 October 2011 - Room H7 HEC school - From 2:30 pm to 4:00 pm

Development of complex engineered systems is a highly interactive social process involving hundreds of people designing thousands of interrelated components and making millions of coupled decisions. In this seminar, I will introduce three views of product development complexity: a product view, a process view, and an organization view. We are able to learn about the complex social phenomenon of product development by studying the architectures of interaction among elements within each view using a method called design structure matrix (DSM). We also compare the alignment of the interaction patterns between the product, process, and organization domains. The results of this research have included new methods for studying product development problems as well as new methods for managing product complexity and complex processes.

Designing Experiential Services: The Customer Journey Perspective

Speaker: Stylianos (Stelios) Kavadias
Associate Professor of Technology and Operations Management College of Management, Georgia Institute of Technology, Atlanta

18 March 2011 - Room 41 - From 10.00 am to noon

In this paper, we explore the basic challenges that an organization faces in the design and introduction of an experiential service. In experiential services, the customer value extends beyond the functional benefits of the service and encompasses the overall experience. We build upon the customer journey, a widely used concept in service design, which views a service as a collection of individual "touchpoints" between the customer and the service provider. The interaction at each of those touchpoints creates a holistic experience for the customer which translates to a utility equivalent. A service provider may choose to control only a part of this journey and delegate the rest to the customers. We model the service experience as a process comprised of sequential touchpoints, and we identify the provider's optimal decisions concerning the number of service touchpoints she chooses to control and the price she charges. Our results reveal the non-monotonic effects of the touchpoint interactions between the provider and the customer. Those interactions may assume the form of losses (due to the inability to match fully the customer needs) or they may a affect the subsequent experiences (touchpoint dependencies). Finally, we also fully characterize the conditions under which the service provider may use the design decisions to effectively signal the experience potential of the service offering. We find that a separating equilibrium can be attained where, depending on the cost structure, the high type provider (i.e., the provider of the service with high experience potential) can successfully reveal her type either by signaling expertise (i.e., controlling fewer touchpoints) or by signaling efficiency (i.e., controlling more touchpoints). The price is used only as a signaling mechanism of last resort, that is, when the control of more or fewer touchpoints fails to communicate service potential. In the rest of the cases, the choice of the price or the number of touchpoints controlled by the provider conveys no additional information regarding the experience potential of the service, and therefore a pooling equilibrium is formed.

Bio: Stylianos (Stelios) Kavadias is the Edward J. Brown Jr. Associate Professor of Technology and Operations Management at the College of Management of Georgia Tech. His research focuses on the challenges that arise during the new product development (NPD) project portfolio selection decisions, and on the management of product co-development efforts (e.g. effectiveness and decision making in cross-functional product development teams). Stelios has received the 2nd prize in the George B. Dantzig Competition (INFORMS), and the Brady Family award for research excellence (Georgia Tech). He currently serves as the Department editor for the NPD, R&D and Project Management department of Production and Operations Management (POM) journal, and as an Associate Editor for Management Science's Entrepreneurship and Innovation Department, and POM's Management of Technology department. His research has appeared on different academic outlets (Management Science, POM). He teaches NPD/Innovation elective courses in the regular, part-time and Executive MBA programs at Georgia Tech, as well as in open enrollment and custom executive programs at the Huang Executive Education Center at Georgia Tech's College of Management. He has authored several case studies of Fortune 500 corporations (e.g. Microsoft, Saturn, Whirlpool, 3M, AT&T), and he has often spoken at corporate audiences (e.g. NCR leadership team, IHG Global IT conference, Pfizer Innovation Taskforce). He received his undergraduate Diploma in Electrical and Computer Engineering from NTUA (National Technical University of Athens), and his Ph.D. from INSEAD in France.

Brand Personality : the wining facets

Speaker: Audrey AZOULAY

30 November 1999

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