March 30, 2017

Developments in Operations Technology - Review Notes

Operations Technology Chapter from Chase Aquilano Jacobs Book


Much of the recent growth in productivity has come from the application of operations technology. In services this comes primarily from soft technology—information processing. In manufacturing it comes from a combination of soft and hard (machine) technologies.

Development in Technologies

Hardware technology developments  have generally resulted in greater automation of processes. Labor-intensive tasks originally performed by humans are getting more and more automated. Examples of these hardware technologies are numerically controlled machine tools, machining centers, industrial robots, automated materials handling systems, and flexible manufacturing
systems. These are all computer-controlled equipments and machines  that can be used in the manufacturing of products.

Software-based technologies are being used in the design of manufactured products and in
the analysis and planning of manufacturing activities. These technologies include computer aided design and automated manufacturing planning and control systems.


Hardware Systems

Numerically controlled (NC) machines are comprised of (1) machine tool used to turn, drill, or grind different types of parts and (2) a computer that controls the sequence of processes performed by the machine. NC machines are now in use many industries. In more recent models, feedback control loops determine the position of the machine tooling during the work, constantly compare the actual location with the programmed location, and correct as needed. This is often called adaptive control.

Machining centers represent an increased level of automation and complexity relative to
NC machines. Machining centers not only provide automatic control of a machine, they
may also carry many tools that can be automatically changed depending on the tool required
for each operation. In addition, a single machine may be equipped with a shuttle system so
that a finished part can be unloaded and an unfinished part loaded while the machine is
working on a part.


Industrial robots are now used as substitutes for workers for many repetitive manual activities
and tasks that are dangerous, dirty, or dull. A robot is a programmable, multifunctional
machine that may be equipped with an end effector. Examples of end effectors include a
gripper to pick things up, or a tool such as a wrench, a welder, or a paint sprayer.  Advanced capabilities have been designed into robots to allow vision, tactile sensing, and hand-to-hand coordination. In addition, some models can be “taught”a sequence of motions in a three-dimensional pattern. As a worker moves the end of the robot arm through the required motions, the robot records this pattern in its memory and repeats it on command.


Automated materials handing (AMH) systems improve efficiency of transportation, storage, and retrieval of materials. Examples are computerized conveyors and automated storage
and retrieval systems (AS/RS) in which computers direct automatic loaders to pick and place
items. Automated guided vehicle (AGV) systems use embeddedfloor wires to direct driverless vehicles to various locations in the plant. Benefits of AMH systems include quicker
material movement, lower inventories and storage space, reduced product damage, and
higher labor productivity.


The individual pieces of automation can be combined to form manufacturing cells or
even completeflexible manufacturing systems (FMS).A manufacturing cell might consist
of a robot and a machining center. The robot could be programmed to automatically insert
and remove parts from the machining center, thus allowing unattended operation. An FMS
is a totally automated manufacturing system that consists of machining centers with automated loading and unloading of parts, an automated guided vehicle system for moving parts
between machines, and other automated elements to allow unattended production of parts.
In an FMS, a comprehensive computer control system is used to run the entire system.

A FMS is in operation in the Cincinnati Milacron facility in Mt. Orab, Ohio, for over 20 years. In this system, parts are loaded onto standardized fixtures (these are called “risers”), which are mounted
on pallets that can be moved by the AGVs. Workers load and unload tools and parts onto
the standardized fixtures at the workstations shown on the right side of the diagram. Most
of this loading and unloading is done during a single shift. The system can operate virtually
unattended for the other two shifts each day.  The system is capable of producing hundreds of different parts.

Software Systems Computer-aided design (CAD) is an approach to product and
process design that utilizes the power of the computer. CAD covers several automated technologies, such ascomputer graphics to examine the visual characteristics of a product and
computer-aided engineering (CAE )to evaluate its engineering characteristics. Rubbermaid
used CAD to refine dimensions of its Tote Wheels to meet airline requirements for checked
baggage. CAD also includes technologies associated with the manufacturing process design, referred to as computer-aided process planning (CAPP).CAPP is used to design the
computer part programs that serve as instructions to computer-controlled machine tools,
and to design the programs used to sequence parts through the machine centers and other
processes (such as the washing and inspection) needed to complete the part. These programs
are referred to as process plans. Sophisticated CAD systems are also able to do on-screen
tests, replacing the early phases of prototype testing and modification.

CAD has been used to design everything from computer chips to potato chips. Frito-Lay,
for example, used CAD to design its O’Grady’s double-density, ruffled potato chip. The problem in designing such a chip is that if it is cut improperly, it may be burned on the outside
and soggy on the inside, be too brittle (and shatter when placed in the bag), or display other
characteristics that make it unworthy for, say, a guacamole dip. However, through the use
of CAD, the proper angle and number of ruffles were determined mathematically; the
O’Grady’s model passed its stress test in the infamous Frito-Lay“crusher”and made it to
your grocer’s shelf.

CAD is now being used to custom design swimsuits. Measurements of the wearer are fed
into the CAD program, along with the style of suit desired. Working with the customer, the
designer modifies the suit design as it appears on a human-form drawing on the computer
screen. Once the design is decided upon, the computer prints out a pattern, and the suit is
cut and sewn on the spot.

Automated manufacturing planning and control systems (MP&CS)are simply computerbased information systems that help plan, schedule, and monitor a manufacturing operation.
They obtain information from the factory floor continuously about work status, material
arrivals, and so on, and they release production and purchase orders. Sophisticated manufacturing and planning control systems include order-entry processing, shop-floor control,
purchasing, and cost accounting.

COMPUTER-INTEGRATED MANUFACTURING(CIM)

All of these automation technologies are brought together under computer-integrated manufacturing (CIM). CIM is the automated version of the manufacturing process, where the three
major manufacturing functions—product and process design, planning and control, and the
manufacturing process itself—are replaced by the automated technologies just described. Further, the traditional integration mechanisms of oral and written communication are replaced
by computer technology. Such highly automated and integrated manufacturing also goes
under other names:total factory automation and the factory of the future.
All of the CIM technologies are tied together using a network and integrated database. For
instance, data integration allows CAD systems to be linked to computer-aided manufacturing (CAM),which consists of numerical-control parts programs; and the manufacturing planning and control system can be linked to the automated material handling systems to facilitate
parts pick list generation. Thus, in a fully integrated system, the areas of design, testing, fabrication, assembly, inspection, and material handling are not only automated but also integrated with each other and with the manufacturing planning and scheduling function.

TECHNOLOGICAL RISKS
An early adopter of a new technology has the benefit of being ahead of the competition, but
he or she also runs the risk of acquiring an untested technology whose problems could disrupt
the firm’s operations. There is also the risk of obsolescence, especially with electronics-based
technologies where change is rapid and when the fixed cost of acquiring new technologies or
the cost of upgrades is high. Also, alternative technologies may become more cost-effective
in the future, negating the benefits of a technology today.

OPERATIONAL RISKS
There could also be risks in applying a new technology to a firm’s operations. Installation
of a new technology generally results in significant disruptions, at least in the short run, in
the form of plantwide reorganization, retraining, and so on. Further risks are due to the delays and errors introduced in the production process and the uncertain and sudden demands
on various resources.

ORGANIZATIONAL RISKS
Firms may lack the organizational culture and top management commitment required to
absorb the short-term disruptions and uncertainties associated with adopting a new technology. In such organizations, there is a risk that the firm’s employees or managers may
quickly abandon the technology when there are short-term failures or will avoid major
changes by simply automating the firm’s old, inefficient process and therefore not obtain
the benefits of the new technology.

ENVIRONMENTAL OR  MARKET RISKS
In many cases, a firm may invest in a particular technology only to discover a few years
later that changes in some environmental or market factors make the investment worthless.
For instance, in environmental issues auto firms have been reluctant to invest in technology
for making electric cars because they are uncertain about future emission standards of state
and federal governments, the potential for decreasing emissions from gasoline-based cars,
and the potential for significant improvements in battery technology.


One more revision of the writeup has to be made.

Full material from the book

Updated  2 April 2017, 9 December 2011

Brand Building - Subject Update







2017

http://www.adweek.com/tag/branding/

The Power Of Consistent Branding That Tells A Story
https://www.forbes.com/sites/forbescommunicationscouncil/2017/02/15/the-power-of-consistent-branding-that-tells-a-story/

American Marketing Association
https://www.ama.org/topics/branding/Pages/default.aspx?

2016

Build Your Brand as a Relationship
Mark BonchekCara France
MAY 09, 2016, Harvard Business Review
https://hbr.org/2016/05/build-your-brand-as-a-relationship

How Social Media Is Changing the Way Industries Approach Branding
http://www.extension.harvard.edu/professional-development/blog/how-social-media-changing-way-industries-approach-branding

Digital or Die: The Choice for Luxury Brands
https://www.bcgperspectives.com/content/articles/technology-digital-consumer-insight-digital-or-die-choice-for-luxury-brands/



2015 A to Z Blogging Challenge Post

Brands are Promise Marks


Brands are psychology and science brought together as a promise mark as opposed to a trademark. Brands convey a uniform quality, credibility and experience.

Now building brands has become a lot less expensive and smart brands can take advantage of new tools and rocket up there globally, very fast.

http://www.forbes.com/sites/marketshare/2012/05/27/why-brand-building-is-important/
(The article indicates further links to various brand building activities)

Three Benefits of a Brand


A new product must have practical benefit. If that benefit is due to an invention (means, the customer is getting that benefit for the first time), there is an instant support for the product from people who were experiencing the need for the benefit but unable to satisfy the need.

Campaigns that carry an emotional element that helps consumers identify with the brand leave a deeper impression than those solely focused on practicality.

In addition to a practical benefit and an emotional benefit, consumers are now looking for a societal benefit. They want to know there’s a purpose behind the product. When brands listen to what their consumers are saying, they gain valuable insight to help direct their marketing strategies. In this way, consumers actually help shape the brand or co-create the brand
http://www.brandchannel.com/home/post/2015/02/25/150225-brandspeak-covert.aspx


10 resolutions to make for your brand in 2015

Marc Pritchard, Global Marketing and Brand Building Officer
Learn Brandbuilding from him through various YouTube videos
http://mgmtvideo.blogspot.com/2013/02/marc-pritchard-proctor-and-gamble-brand.html



Past Articles by Narayana Rao on Branding



Managing Product Lines and Brands
http://nraomtr.blogspot.com/2011/12/managing-product-lines-and-brands.html



Branding Strategy and Brand Equity
http://nraomtr.blogspot.com/2011/12/branding-strategy-and-brand-equity.html


Brand Positioning
http://nraomtr.blogspot.com/2011/12/brand-positioning.html


Updated  2 April 2017, 10 December 2015


March 29, 2017

Organizational Design and Culture - Review Notes


There are two parts in this chapter by Luthans

One is Organization Theory and Design. Two is  Organizational Culture

Organization Theory

Introduction

Chester Barnard defined a formal organization as a system of consciously coordinated activities of two or more persons. Barnard gave the opinion that authority really should come from the bottom up, rather than top-down bureaucratic approach.  It was Barnard's contention that the existence of a cooperative system is contingent on the human participant's ability to communicate,  come out with a common purpose, and their willingness to serve and strive toward a common purpose. The human beings play the most important role in the creation and perpetuation of formal organizations.

Apart from the role of the people in forming organizations and in working toward common goals as members of the organization, there is a division of labor in the organizations and therefore an organization is viewed as a system made of interacting parts. Open systems concept of organizations bring into picture the effect of environment on organizations. Organizations need information processing ability to take proper decisions that have less uncertainty.  Contingency approach to organization argues that organizations have to change in response to internal changes as well as external environment changes to adjust and survive.

In contrast to contingency approach, ecological approach to organization survival contends that there are drastic changes in external environment and only those organization fit to survive in the changed state of nature survive and other organizations die.



Culture

Every organization has a culture.  What is culture? It is behavior exhibited by members of an organization. The culture is shaped by values (ideas,which are presently actively promoted in the organization) and beliefs (presently not actively promoted - but are in the memory of the members of the organization). Defined this way, an organization may not have a uniform culture. There can be subcultures. An organization's culture is strong when more people display similar behavior.

Luthans gives the following six as important characteristics agreed by many scholars

1. Observed behavioral regularities.
2. Norms
3. Dominant values
4. Philosophy
5. Rules
6. Organizational climate

Organizational culture is the outcome of a system of shared meaning held by members that distinguishes the organization from other organizations. The system of shared meaning is a set of characteristics. According to the existing research, there are seven primary characteristics that, in aggregate capture the essence of an organization's culture.

1. Innovation and risk taking: The degree to which employees are encouraged to be innovative and take risks.
2. Attention to detail: The degree to which employees are expected to exhibit precision, analysis, and attention to detail.
3. Outcome orientation: The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes.
4. People orientation: The degree to which management decisions take into consideration the effect of outcomes on people within the organization.
5. Team orientation: The degree to which work activities are organized around teams rather than individuals.
6. Aggressiveness:The degree to which people are aggressive and competitive rather than easygoing.
7. Stability: The degree to which organizational activities emphasize maintaining status quo in contrast to growth.
(Reference for the 7 item model: C.A. O'Reilly III, J. Chatman, and D.F. Caldwell, "People and Organizational Culture: A Profile Comparison Approach to Assessing Person-Organization Fit," Academy of Management Journal, September 1991, pp. 487-516.

J.A. Chatman and K.A. Jehn, "Assessing the Relationship between Industry Characteristics and Organizational Culture: How Different Can You Be?" Academy of Management Journal, June 1994, pp. 522-553)

Organizational culture is conceptualized to have three components. One is the behavior. This the same behavior that we are studying in this subject of organizational behavior. While this behavior is the result of cognitive aspects (Perception and attribution, personality and attitudes,  Motivational needs and activities, positive psychology related aspects), dynamic aspects (communication, decision making processes, conflict management,  use of power and political activities, and group behavior) and management practices (job design, goal setting, supervision and control). The culture perspective advocates that values and belief lead to behavior in a more stable way.

Values are explicitly stated by organizations. But, members of an organization assess the organization's value by the behavior exhibited by leaders of the organization. Organization members have an understanding of the organization's values and this can be captured by talking to members. Then the organization members have an aspirational values which they feel their organization must espouse.  Beliefs are formed in people due to long period of living, education and experience. They also have an effect on behavior. Managers of an organization try to communicate new value system that is required to attain the goals of the organization and then try to demonstrate appropriate behavior so that many in the organization accept the values as relevant and also being practiced by the top leaders. As more members of the organization accept the relevance as well as adherence to new values by the top leaders, the values become shared values and influence the organization's behavior. Then the climate in the organization changes. Organizational climate is the perception of outsiders regarding their encounters with the organization and its members. Change in values, change in behavior and its results are likely to change beliefs over a period of time.


Updated  1 April 2017.  15 May 2016,  9 July 2014, 5 June 2014, 4 December 2011

March 28, 2017

Digital Supply Chain - Design, Management and Transformation



Digital Supply Chain - Design, Management and Transformation




DIGITAL SUPPLY NETWORK—THE NEW STANDARD FOR MODERN SUPPLY CHAIN MANAGEMENT

A more connected, intelligent, scalable and rapid supply network.
https://www.accenture.com/in-en/insight-digital-supply-network-modern-supply-chain-management

Digital supply networks


Turn your supply chain into an “always-on” strategic differentiator
Organizations are achieving operational performance breakthroughs as digital supply networks enable supply network visibility—and unprecedented insights.
https://www2.deloitte.com/us/en/pages/operations/solutions/digital-supply-networks.html


Digital Supply Chain Transformation


Today’s best supply chains use state-of-the-art information and communication technologies such as scanners, GPS, PDAs and tagging methods such as barcodes or RFID. Paper based supply chain documents are increasingly being replaced by Electronic Document Management.
Capgemini Consulting helps our clients build new operating models which incorporate seamless supplier integration, optimal inventory management and efficient execution of pull strategies in order to optimize working capital and transportation cost.
https://www.capgemini-consulting.com/supply-chain-management/digital-supply-chain-transformation
https://www.capgemini.com/business-services/digital-supply-chain




March 2017

Industry 4.0: The Five Steps Towards A Digital Supply Chain
by Strategy&, part of the PwC network

https://www.forbes.com/sites/strategyand/2017/03/21/industry-4-0-the-five-steps-towards-a-digital-supply-chain/#16b38b505287



February 2016
Three Paths to Advantage with Digital Supply Chains
FEBRUARY 01, 2016 by Amit Ganeriwalla, Gideon Walter, Libor Kotlik, Robert Roesgen, and Stefan Gstettner
https://www.bcgperspectives.com/content/articles/supply-chain-management-technology-digital-three-paths-advantage-digital-supply-chains/

March 25, 2017

The Chief Supply-Chain-Management Officer - The New COO



The Chief Supply-Chain-Management Officer


Supply-chain management as an activity started only two decades ago. It started as a hotch-potch of a handful of disciplines that were not systematically linked.  However, in global companies,  separately handling the different aspects of SCM components, such as purchasing and warehousing, started to become expensive and ineffective. The challenge of cost reduction resulted in the rise of strategic sourcing and collaborative relationships with suppliers. CEOs thus looked for SCMOs who knew how to achieve cost efficiencies and possessed operational and outsourcing expertise. The relationships with the suppliers and distributors led to a chain development in real sense. Today, supply-chain management process links the chain  end to end: Planning, procurement, manufacturing/operations, and logistics are planned  together to devise economical solutions. The SCMO is expected to know all four functions thoroughly. He should be able to plan and to create an environment in which the multiple functions share knowledge and work together smoothly.

Sustainability is rapidly becoming an important concern  for executives who manage this function. Companies are finding that they can create and execute sustainability strategies throughout their supply chains, from suppliers to customers. So more and more SCMOs are being asked by their boards and CEOs to take up sustainability.

SCMOs will continue to pursue low costs  either through strategic or diverse sourcing, both onshore and off. They will need to manage long-distance logistics and transportation, taking into account unpredictable external factors that could have a major impact on costs, such as political instability or the price of oil. SCMOs will have to be technologically savvy and partner with CIOs to invent new ways for their companies to interact with customers and suppliers,

SCMOs will need to be big-picture thinkers who can participate in strategic and operational decisions at the highest level, in the C-Suite Conference Room. Since SCMOs will be active and equal members of the executive team, experience in running a business unit, managing a P&L, and interacting with customers will serve them well.

SCMOs will need experience in organizational design, which is a core management function. International experience will grow more critical in the job,  as global supply chains become more commonplace.

SCMOs will need to understand emerging markets and be ready to develop innovative solutions as some of the current solutions in the developed markets may not work in emerging markets, India being an important one.

https://hbr.org/2011/03/the-new-path-to-the-c-suite
HBR March 2011 Issue

http://www.cio.com/article/2438839/cio-role/9-essential-competencies-for-successful-c-level-executives.html

March 24, 2017

Evolution of The Quality Management Philosophy and Practice






Till 1800, production of goods and services was primarily done by single person owned or family owned facilities. The quality of the item was negotiated and set by the individual owner-operator who was in turn also responsible for producing the item. This phase, which continued till Taylor's publication of Shop Management, that is the time period up to 1900, is now called the period of ‘Operator Quality Control’. In operator quality control,  controlling and improving quality of the product was aligned with the philosophy of pride in workmanship.

In the early days of factory of production, foreman became the most important managers of the factories. He is responsible for all management activities. So during the early days of factory production,  a second phase of quality management evolved, which is now termed as  the ‘Foreman Quality Control’ period.  Supervisors are now responsible to ensure that quality was achieved. We can imagine that he is doing some inspection. Also, the operator may not be directly talking to the customer now. Foremen or supervisors controlled the quality of the product, and they were also responsible for the shop floor operations.

The next phase of qual­ity is the ‘Inspection Quality Control’. With more complicated prod­ucts and processes it became impossible for the foreman to keep close watch over the quality dimension. Inspectors were assigned to check the quality of a product after processing. Individual product standards were set, and any discrepancies between standard and actual product features was reported. Defective items were set aside as scrap, and few items with minor defects are reworked to meet the specified standard or specification. This practice was picked up by Taylor, and inspection or quality foreman became one of the functional foremen in Taylor's functional foremanship model.  As we know, Taylor's function foremanship model was converted into line and staff model of management and inspection departments were established. They became very big also with plant level quality control or inspection head with many inspectors reporting to him.

In 1924, Wal­ter A. Shewhart of Bell Telephone Laboratories introduced the concept of statisti­cal charts to monitor variability of the process using measurements of product characteristics.  These charts were called process control charts. In the latter half of 1920s, H. F. Dodge and H. G. Romig, also from Bell Telephone Laboratories, proposed acceptance sam­pling plans for inspection. These plans proposed the concept of samples for inspection, thus elimination 100 percent inspection and saving inspection time. It is a productivity improvement innovation in inspection. But, it was stated that sample based inspection will give similar rate of outgoing quality as 100% inspection was giving. Industrial engineers adopted sample inspection plans in their productivity improvement practice. During 1930’s application of acceptance sampling plans was in full flow in industries. In 1929, Walter Shewhart with the help of American Society for Testing Materials (ASTM), American Society of Mechanical Engineers (ASME), American Statistical Association (ASA), and Institute of Mathematical Statistics (IMS) created the joint committee for the development of statistical techniques for application in engineering industries.

http://nptel.ac.in/courses/110101010/

Total Quality Management: Focus on Six Sigma - Review Notes

March 23, 2017

A to Z of Management: Theory, Principles, Methods, Techniques, Tools and Practice




A to Z: Management -  Blog Posts by Narayana Rao




Letter "A"

1. Adoption of New Products and Processes
2. April - Management Knowledge Revision
3. Advertising

 Letter "B"

Brand Building Update 2015

Business Firm and Society - The External Environment, Social Responsibility and Ethics - Review Notes
Business Conceptualization - Management Insights from Economics, Engineering Economics, Managerial Economics, Industrial Economics
Branding

Letter "C"  -

Culture Change Management Process

Channels of Distribution
Letter "D" -

Distribution Warehouse

Discount Policy
Demand


 Letter "E"-

Efficiency Improvement - Need and Role of Industrial Engineering

Excellence
 "F" -

Finance for Non-Finance Managers

Foresight
 Letter "G" -

Goal Setting for MBO


Letter "H" -

Human Resource Training - Role of Indicated Reading Lists

Health
 Letter "I" -

Innovation Marketing

Innovation
 Letter "J" -

Job Design

Job Satisfaction


 Letter "K" -

Knowledge Management Software Packages

Knowledge Management
Letter "L" -

Location of Production Facilities

Leadership Development
Letter "M" -

Market Orientation

Make in India Campaign - Industry Sectors Information
Motivation

Letter "N" -

Needs and Wants - Marketing Concepts

New Products
Letter "O"

Organizational Sociology

Organizing

Letter "P"

Product Development

Productivity

Letter "Q"

Quantitative Thinking for Management

Quality

 Letter "R"  -

Relaxation During Work Day - Recovering from Fatigue

Research

Letter "S" -

Six Sigma - Zero Defect Movement Systematized

Salesmanship

Letter "T"  -

The Role of Theory in Practice of Engineering and Management

Training

Letter "U"  -

Understanding Marketing Productivity

Utlility

Letter "V" -

Value Engineering - Recent Developments

Vision

Letter "W" -

Work-Methods Science

Waste Elimination

Letter "X"  -

X Reminds me of Theory X


Letter "Y" -

Y Reminds me of Theory Y


Letter "Z"  -

Z Reminds me of Theory Z

March 20, 2017

A to Z of Top Management Activities, Functions and Challenges - A to Z Blogging 2017 Challenge Theme




Top Management Activities, Functions and Challenges


A distinction between leadership, the leader, and the work of leading. Leadership is the principal dynamic force in organization that stimulates, motivates, and coordinates the organization in the accomplishment of its objectives. A leader is one who accepts responsibility for the success-
ful achievement of the organization's objectives, and is able to get the support of its members in the accomplishment of these objectives. The work of leading is management. It must be done in a
manner that is satisfactory to the group that is being led. Otherwise, the leader will not have its voluntary support.

Every executive should be a leader. The term executive includes, therefore, every employee whose principal responsibility has to do with directing and supervising the work of others. It includes, accordingly, all executive employees from and including the president to the lowest supervisor


Business objectives have been defined as values that the business organization is required or expected to acquire, create, preserve, or distribute. Values can be created only by work. The utility of an 
economic good or service is its ability to provide the customer or the organization with certain values that are needed or desired.  Its principal attributes are those of time, place, form, and possession. 
The creation of customer utilities makes possible the satisfactory accomplishment of the organization's primary service objectives.

Business functions may be classified broadly as managerial and operative. Management is the function of executive leadership.

Managerial functions involve the work of planning, organizing, resourcing, executing and controlling. My posts will describe the activities involved in these functions in A to Z sequence.

The accomplishment of the organization's economic mission requires the provision of various physical factors in performance. What they are depends on the requirements for the effective, economical performance of the particular business functions. The characteristics of the factors that are available may modify the method of performing them, however. They include such items as land, 
buildings, machinery, tools, materials, money, and any other physical implementation of these functions. They are capital items, either current or fixed.


Index for the posts


A to Z: 2017 Blogging Challenge - Top Management Challenge Areas

March 17, 2017

Digital Marketing Adoption by Fortune 500 Companies




December 2016
The Top Sales Strategies Fortune 500 Companies Use
80 percent of Fortune 500 companies are active on Twitter.
sales and marketing automation is one of the sales strategies that Fortune 500 companies use.

Nov 2016
The Technology Behind Fortune Global 500 Companies
https://www.translatemedia.com/translation-blog/technology-behind-fortune-global-500-companies/


The McKinsey View: The State of Digital Marketing & How to Capture Value
Full report on Salesforce State of Marketing 2016 can be downloaded from this web page.
https://www.salesforce.com/uk/blog/2016/11/the-mckinsey-view-the-state-of-digital-marketing.html

October 2016

Are Fortune 500 and Inc. 500 Companies Using Instagram?

Some 30% of Fortune 500 companies and 22% of Inc. 500 companies have active Instagram accounts- Research from The Center for Marketing Research, University of Massachusetts, Dartmouth.
http://www.marketingprofs.com/charts/2016/30947/are-fortune-500-and-inc-500-companies-using-instagram

July 2016

Fortune 500 Companies Search for Marketing Tools - July 2016
Email marketing is still very important component of marketing communications and sales
https://komarketing.com/industry-news/report-fortune-500-companies-focused-marketing-tools-july-2016/


What Marketers Can Learn from Fortune 500 Companies Mastering Instagram
http://www.toprankblog.com/2016/07/marketers-instagram/

March 2016
Only 17% of Fortune 500 Companies Actively Use Pinterest
http://www.socialmediatoday.com/social-networks/only-17-fortune-500-companies-actively-use-pinterest


The 2015 Fortune 500 and Social Media
http://www.umassd.edu/cmr/socialmediaresearch/2015fortune500/

June 2015
WHY AREN'T FORTUNE 500 COMPANIES BLOGGING?
16% of the Fortune 500 companies had public-facing RSS feeds in 2008
31% of the Fortune 500 companies had public-facing RSS feeds in 2014
https://www.tributemedia.com/blog/why-arent-fortune-500-companies-blogging


March 2015
59% of B2B Fortune 500 Companies Use Marketing Automation
https://www.clickz.com/59-of-b2b-fortune-500-companies-use-marketing-automation/26744/


September 2014
University of Massachusetts Dartmouth Center for Marketing Research releases a study of social media adoption among Fortune 500 companies every year

83% of the Fortune 500 have corporate Twitter accounts with a Tweet in the past thirty days. This represents a 6% increase since 2013.

80% of the Fortune 500 are now on Facebook. This represents a 10% increase in the last year alone.

In 2014, 31% of the studied companies had corporate blogs, showing a decrease of 3% in use of this content tool during the past year.
http://simplymeasured.com/blog/new-study-80-of-fortune-500-companies-active-on-facebook-and-twitter/#sm.00007txm35b3md84z3h22lon664y1

March 2014
Does a Fortune 500 company need a social media strategy?
(as of 2013, over two thirds of all F500 companies maintain active Twitter accounts, and almost as many have Facebook pages)
http://www.hellosoutherly.com/does-a-fortune-500-company-need-a-social-media-strategy/


July 2013

University of Massachusetts Dartmouth Social media activity report of Fortune Magazine’s Fortune 500 list  indicates that
34 percent of this year’s Fortune 500 companies are now actively blogging,
77 percent maintain active Twitter accounts,
70 percent have Facebook pages and
69 percent have YouTube accounts.
http://marketingland.com/fortune-500-companys-social-media-use-on-the-rise-52726


May 2012
How Fortune 500 Companies Use Social Media
Lot of statistics of that time
http://www.v3b.com/2012/05/how-fortune-500-companies-use-social-media/

March 16, 2017

Digital Marketing - Introduction, Evolution, Trends and Bibliography





https://www.thinkwithgoogle.com/

Gratner World Digital Marketing Conference 2015 Presentation
http://www.gartner.com/imagesrv/marketing/misc/gml1-b4-gml1_b4_118_sarner_mcguire_os.pdf

2015
https://www.accenture.com/_acnmedia/PDF-1/Accenture-and-Adobe-Unleashing-the-Power-Digital-Marketing.pdf

http://www.wipro.com/documents/mastering-the-digital-brand.pdf

https://www.infosys.com/digital/insights/Documents/digital-marketing.pdf

2012

Longitudinal Study of Digital Marketing Strategies Targeting Millennials
Journal of Consumer Marketing, Vol. 29, No. 2, (2012)
22 Pages Posted: 26 Oct 2016 Last revised: 23 Nov 2016
Katherine Taken Smith
Murray State University - College of Business
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2859146

https://www.atkearney.de/documents/856314/1214642/BIP_Digital_Marketing_Dont_Miss_the_Forest_for_the_Trees.pdf/8785e324-e319-4aa6-a9f6-9ea771915f2d


Training Programmes

http://executiveeducation.wharton.upenn.edu/for-individuals/all-programs/digital-marketing-strategies-for-the-digital-economy



India

https://www.worldmarketingcongress.org/images/50%20Most%20Influential%20Digital%20Marketing%20Leaders.pdf

March 15, 2017

A to Z of Digital Transformation of Business - Marketing, Production, Sales, Supply and Service



Digital Transformation - Definition


We define digital transformation as the integration of digital technology into all areas of a business resulting in fundamental changes to how businesses operate and how they deliver value to customers.
https://enterprisersproject.com/what-is-digital-transformation

Digital Transformation Articles - Collection from Blogosphere



Digital Supply Chain - Design, Management and Transformation

2017


To Lead a Digital Transformation, CEOs Must Prioritize
Laurent-Pierre Baculard
JANUARY 02, 2017
https://hbr.org/2017/01/to-lead-a-digital-transformation-ceos-must-prioritize

Leaders have to recognize the opportunity of digital transformation and the threat if the organization ignores the opportunity because of disruptive innovations made by others.

They have to plan the new business entity as a separate department within the existing business, or as a separate business that is handled by all existing functions, or a separate division etc. Then they have to organize and provide resources. In the area of human resources, they either have to recruit from outside or develop the internal talent. In developing the internal talent, the leader's personal examples become important. Change requires effort to learn new things and leader's initiatives to learn and implement will become the role model for others in the organization to follow. While in the early days, the leader's personal guidance is required, slowly the leader has to empower people to do activities independently.

Which departments are digital transformation change agents?

Digital departments are now very common, with 81% of companies citing their existence. 40% have a formalized cross-functional workgroup employing four to five full-time employees.
http://www.huffingtonpost.com/vala-afshar/the-2016-state-of-digital_b_12074114.html


https://reports.weforum.org/digital-transformation/

Digital Transformation - 2016  articles



Digital Transformation - CMU Course Page - Syllabus

Digital Transformation in the Age of Customer  - Full Report
Digital Transformation of Industries - World Economic Forum White Paper January 2016
Digital transformation: The three steps to success - MKinsey Article
Using IoT Data to Understand How Your Products Perform
What does ‘digital transformation’ really mean? - Marketing Week Article
6 Predictions About The Future Of Digital Transformation

2016 State of Digital Transformation


A

B

Browse 100+ Books on Internet of Things - IoT Books
Business Analytics and Marketing Applications - 2016

C

D


Data Analytics - Driving Digital Transformation of Organization

Digital Oilfield of the Future

Digital Printing - Engineering Economic and Cost Analysis

Digital Transformation at Daimler Benz

Digital Transformation Books

Digital Transformation - CMU Course Page - Syllabus

Digital Transformation (DT) is a capstone course integrating the technical and managerial
aspects surrounding increased levels of digitization. As data starts to play a larger role in
managerial decision-making, what are the unique ramifications of these actions for
organizational dynamics? How can new information and communication technologies
(ICT) be deployed across an enterprise? What role does culture, organizational structure
and even adoption patterns play in understanding technology selection, user design and
how to derive value from technology? When analyzing DT, we need to examine change
from two perspectives:
• From a technology perspective: integration of new technologies, normalization of
data, and digitization of business processes.
• From a managerial perspective: new coordination and communication within and
across entities, new organizational forms, changing the information environment
underlying the business, and new incentive structures.
Successful efforts at digitization have to keep both technical and managerial perspectives in
mind. Using a collection of cases, this course will study how the deployment of ICT changes
interactions and processes within organizations, across organizations, within industries,
and across society

Cases discussed in the earlier Term

Case – ITC eChoupal (as a class)
Case – Dubai Port Authority (as a class)
Case –Security Breach at TJX
Case – VW in America
Case – Starbucks Mobile Payments
Case – Threadless, The Business of Community
Case - Project Hugo
Case – Newspapers
Case – Open vs. Closed Ecosystems – Nokia in 2010
Case – TV Disruption – Comcast Corporation

Digital Transformation in the Age of Customer - Full Report

Digital Transformation of Industries - World Economic Forum White Paper January 2016

Digital transformation: The three steps to success - MKinsey Article

E

F

G

H

I


Internet of Things - System Components
Internet of Things (IoT) - Very Big Business/Value Opportunity 2025
Introduction to Data Mining



J

K


L

M

Manufacturing System Digital Transformation and Reengineering


N

O

P

Q


R


S


T


The A-Z of digital transformation


U

Understanding Your Products Through IoT and Data Analytics
Using IoT Data to Understand How Your Products Perform

V

W

What is digital transformation?
What does ‘digital transformation’ really mean? - Marketing Week Article
What is Big Data and What are its Applications? - IBM Experts Explanation


X


Y


Z


Articles Starting with Numerals

2016 State of Digital Transformation

6 Predictions About The Future Of Digital Transformation


Updated 18 March 2017, 17 June 2016

March 13, 2017

Introduction to the Field of Operations Management - Review Notes


Planned Revision of Operations Management Chapters Starts on 16 March


The goal of operations management is wealth creation.
It is done by supplying quality goods and services effectively and efficiently


Role of Industrial Engineering in Operations Management


Industrial engineering contributes to operations management by increasing the efficiency of operations. Wealth creation round 1 is done by operations managers. Wealth creation round 2 is done by industrial engineers in operations systems.

Wealth creation is continuously done everyday by Shopfloor operators and their managers based on the designs and plans created by operations managers and industrial engineers.

Based on the Chapter 1 Introduction to the Field by Chase, Jacobs, Aquilano 12 Edition


The essence of operations management: creating great value to the customer while reducing the cost of delivering the good or service.

In the context of this book, "operations" refers to the processes that are used to transform the resources employed by a firm into products and services desired by the customers. "Supply" refers to how materials and services are moved to and from the transformation processes of the firm.

Great operations and supply management is essential to the success of the firm doing business in goods or services.

This subject will provide you knowledge of concepts and tools to be  employed by companies around the world to craft effective and efficient operations. Efficiency means doing something at the lowest possible cost.  We can also say the goal of an efficient process is to produce a good or provide a service by using the smallest input of resources.  Effectiveness mean doing the right things to create the  most value for the company. Managers are responsible for effectiveness first. They have to find what customers want and then make arrangement for producing those items. Effectiveness in enhanced by understanding customers' needs and designing products that are acceptable to them.

A business education is incomplete without an understanding of modern approaches to managing operations. Operations management (OM) provides a systematic way of examining organizational processes. OM presents interesting career opportunities and the concepts and tools of OM are widely used in managing other functions of a business.

While marketing uncovers needs of people in general and uncovers needs of people at a particular point and books orders for the goods and services, it is the operations function of a business firm that develops goods and services and produces and delivers them to customers at the place where they desire the delivery.


Other Explanations of Operations Management


MIT's Explanation of Operations Management.

Operations Management deals with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want.

http://mitsloan.mit.edu/omg/om-definition.php

University of Strathclyde, Glasgow

Operations management is a value-adding area of an organisation concerned with innovation, production and distribution of goods and services to customers whilst ensuring that the use of organisational resources remains efficient and effective.

http://www.strath.ac.uk/siom/whatis/



Chase, Jacobs, Aquilano - Earlier Editions


In this chapter in the book, the time frame of management decisions is discussed along with the different types of transformation processes. Services are compared to goods production with emphasis on the primary inputs, resources, the primary transformation functions, and the typical desired outputs in a variety of service and operations examples. Value-added services are also discussed along with their benefit to external customers.

Operations management is identified within the organizational chart and its role in the organization is defined. Chapter one presents a concept map and outlines the textbook chapters. The chapters are grouped by the key themes of strategic planning, project management, decision analysis, quality, supply chain management, and e-commerce.

The historical roots of the development of OM are traced from scientific management through the moving assembly line, the Hawthorne studies, and on to today's current manufacturing topics including supply chain management and e-commerce. This chapter concludes with current issues facing OM executives including effectively consolidating the operations resulting from mergers, developing flexible supply chains to enable mass customization of products and services, managing global suppliers, production, and distribution networks, increased commoditization of suppliers, achieving the service factory, and achieving excellent service from service firms.



What is Operations Management?


Operations managemetn (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.

Operations management is a functional field of business with clear line management responsibilities. OM is frequently confused with operations research and management science (OR/MS) and industrial engineering. While all three are fields of management, both IE and OR/MS are staff management disciplines while OM is line management field. Operations management uses the tools of IE as well as OR/MS directly as well as indirectly through the project reports prepared by specialists, OM's role is distinct from these two disciplines.

Companies around the world desire effective and efficient operations. Operations managers design and operate the operations systems effectively and efficiently.

What is the difference between effectiveness and efficiency? 


Effectiveness mean doing right things that customers want to the specifications finalized by the organization. This effectiveness can be a daily issue in an organization producing custom products as the customer can keep on changing his requirement. The operations managers have to listen to the customer and agree on the specification and communicate the same to people in their works. Then they have to control the activity so that what is desired is getting produced. Effectiveness activities take significant time of managers. In production shops, a staff activity production planning and control helps production managers in ensuring the delivery of right product in right quantity at right time. So even in effectiveness activities, operations managers use staff specialists.

Efficiency means doing something at the lowest possible cost. Operations managers have to supply the agreed product at the lowest possible cost. They have the responsibility to make their operations efficient. So operations managers have to learn efficiency techniques and methods. Frederick Taylor emphasized efficiency along with effectiveness in his famous paper "Shop management". Industrial engineering is the discipline that emerged to take care of efficiency dimension of operations as a staff management discipline.

In operations management, three categories of decisions are taken.

Strategic (long-term) decisions
Tactical (intermediate-term) decisions
Operational planning and control (short-term) decisions

Strategic issues include what product (sevice) shall we make? How will we make the product? (technology decision) Where do we locate the facility or facilities? How much capacity do we build? Intermediate decisions can be thought of as annual plans, material purchase policies, staff levels adjustments and working capital support requirements for inventory financing. Operations decisions are daily machine dispatching decisions.




Chapter outline

Operations Management—A Critical Responsibility of Every Manager
Efficiency Defined
Effectiveness Defined
Value Defined

What is Operations Management?
Operations Management (OM) Defined

Transformation Processes
Transformation Process Defined
Differences Between Services and Goods

OM in the Organizational Chart

Operations as Service
Core Services Defined
Value-Added Serviced Defined

Why is Operations Not Perceived as Important?

Historical Development of OM
JIT and TQC
Mass Customization Defined
Manufacturing Strategy Paradigm
Service Quality and Productivity
Total Quality Management and Quality Certification
Business Process Reengineering

Supply Chain Management

Supply chain management is the name given to total system approach to managing the flow of information, materials, and services from raw material producers and suppliers through various factories and warehouses to the end customer of a consumer item or capital equipment or service.

A supply chain is a network of supply and operations processes. "Operations" refers to the processes that are used to transform the resources employed by a firm into products and services desired by customers. "Supply" refers to how materials and services are moved to and from the transformation processes of the firm.

From a company point of view Supply Chain manager is the former Works manager. The designation, works managers did not indicate his responsibility for supply chain even though he was handling that function in many companies. Designating his as Supply Chain Manager or as Supply Chain and Works Managers, will make him feel responsible for Supply Chain Design, Strategy and Operations.


Electronic Commerce

Current Issues in Operations Management

Case: Fast-Food Feast

Source
http://highered.mcgraw-hill.com/sites/0072983906/student_view0/chapter1/

McGraw Hill Operations Management Center

Presentation Slides - Field of Operations Management

Full chapter from Chase's Book

Summaries of all Chapters of Operation Management


Updated updated 16 March 2017,  2 Feb 2015,  3.12.2014, 10.2.2012

MBA Core Management Knowledge - One Year Revision Schedule

March 12, 2017

Productivity - Quotes



“Efficiency is doing better what’s already being done.” –Peter F. Drucker

“Improved productivity means less human sweat, not more.” –Henry Ford

“Productivity is being able to do things that you were never able to do before.” –Franz Kafka

March 11, 2017

Business Analysis - The Function - A Detailed Explanation


Business Analysis is the set of tasks, knowledge, and techniques required to identify
business needs and determine solutions to business problems. Solutions often include a
systems development component, but may also consist of process improvement or
organizational change.

Business analysis is distinct from financial analysis.

IIBA is the professional body promoting business analysis.

The IIBA is an organization that is dedicated to advancing the professionalism of its
members as well as the business analysis profession itself.

This note is based on the  BA Body of Knowledge published by IIBA.


Definition of the Business Analyst Role

A business analyst works as a liaison among stakeholders in order to elicit, analyze, communicate and validate requirements for changes to business processes, policies and information systems. The business analyst understands business problems and opportunities in the context of the requirements and recommends solutions that enable the organization to achieve its goals.

Definition of a requirement
A requirement is:
(1) A condition or capability needed by a stakeholder to solve a problem or achieve an objective.
(2) A condition or capability that must be met or possessed by a system or system component to satisfy a contract, standard, specification, or other formally imposed documents.
(3) A documented representation of a condition or capability as in (1) or (2).


Requirements types

Business Requirements are higher-level statements of the goals, objectives, or needs of the enterprise. They are the reasons why a project is initiated and specify the things that the project will achieve.

User Requirements are statements of the needs of a particular stakeholder or class of stakeholders. They describe the needs that a given stakeholder has and how that stakeholder will interact with a solution. User Requirements serve as a bridge between Business Requirements and the various classes of solution requirements.

Functional Requirements describe the behavior and information that the solution will manage. They describe capabilities the system will be able to perform in terms of behaviors or operations – a specific system action or response.

Quality of Service Requirements capture conditions that do not directly relate to the behavior or functionality of the solution, but rather describe environmental conditions under which the solution must remain effective or qualities that the systems must have. They are also known as non-functional or supplementary requirements.

Assumptions and constraints identify aspects of the problem domain that are not functional requirements of a solution, and will limit or impact the design of the solution.

• Implementation requirements describe capabilities that the solution must have in order to facilitate transition from the current state of the enterprise to the desired future state, but that will not be needed once that transition is complete.

The Body of Knowledge

Body of knowledge will be described under the headings:

• BA Fundamentals
• Enterprise Analysis
• Requirements Planning and Management
• Requirements Elicitation
• Requirements Communication
• Requirements Analysis and Documentation
• Solution Assessment and Validation

BA Fundamentals

BA fundamentals explain what is business analysis and how is it carried out.

Enterprise Analysis

This activity is the collection of pre-project or early project activities and approaches for capturing the necessary view of the business to provide context to requirements and functional design work for a given initiative and/or for long term planning. It is important for those in the Business Analysis profession to understand the organizational environment in which they are working. They should understand how the project, which is being analyzed by him, supports the entire enterprise. Typical Enterprise Analysis activities are listed below. These activities are conducted concurrently and iteratively.

• Creating and maintaining the Business Architecture (understanding the current business architecture)
• Conducting feasibility studies to determine the optimum business solution
• Identifying new business opportunities
• Scoping and defining the new business opportunity
• Preparing the Business Case
• Conducting the initial Risk Assessment
• Preparing the Decision Package

Requirements Planning and Management

The Business Analyst must define the requirements activities that will be performed and how those activities will be performed on a project, in accordance with any existing standards in the organization. It includes identifying key roles, selecting requirements activities, managing the requirements scope and ongoing communication of the requirements gathering status. Proper planning and management of requirements gathering activities ensures the success of the requirements process and requirements deliverables.

Before initiating requirements activities and during the requirements process it is important to consider how the Business Analysis team is going about the requirements activities on a project.

Requirements Elicitation

The requirements serve as the foundation for the solution to the business needs. It is essential that the requirements be complete, clear, correct, and consistent. Leveraging proven means to elicit
requirements will help meet these quality goals.

The scope of the Elicitation work may be a new system or an enhancement to an existing system. The business analysis professional selects the appropriate mean(s) to gather the needed requirements based on the applicability of a technique’s process, key features and strengths and weakness.

Requirements Analysis and Documentation

The objective is to define and describe the characteristics of an acceptable solution to a business problem, so that the project team has a clear understanding of how to design and implement it.
Requirements analysis defines the methods, tools and techniques used to structure the raw data collected during Requirements Elicitation, identify gaps in the information (inform the requirement elicitation team to fill the gaps) and define the capabilities of the solution, which must be documented.

Deliverables from this process will be used by the project team to develop estimates for the time, resources, and budget required to implement a solution or solutions that will fulfill the requirements. The documentation is used to ensure that a consensus between all the stakeholders exists as to the behavior of the solution as it may require the concurrence of important stakeholders. The primary focus of documentation activity is to refine the proposed model of requirements based upon stakeholder feedback and iteratively ensure that  the proposed requirements support the business and user needs, goals and objectives.

Requirements Communication

The Requirements Communication step consists of  activities and considerations for expressing the output of the requirements analysis and documentation to a broad and diverse audience. Some requirements communication is done in parallel with Requirements Gathering and Requirements Analysis and Documentation. But bulk of it is done after requirements are finalized.  It includes presenting, communicating, verifying, and gaining approval of the requirements from the stakeholders and implementers of the project.

An effective business analyst must be able to clearly present the requirements in a format and structure that is appropriate for its intended audience. Business Analysts must understand the options and select the appropriate communication formats for their project. BAs must consider when and where communications need to take place, what communication approach is appropriate for each situation, and how each communication should be presented. Requirements must be “packaged,” reviewed, and approved before the solution is validated to ensure successful implementation.

Solution Assessment and Validation

This knowledge area covers the business analysis tasks necessary to ensure that the solution meets the stakeholder objectives, is thoroughly tested, and is implemented smoothly.

Once a solution design has been agreed upon, the Business Analyst assists the technology team with detailed design work including splitting a large project into phases, reviewing technical design deliverables, and helping to build usability into the application software.

In the case of a purchased solution, they will assist with any package customization decisions that need to be made and with interface requirements. As the solution is built and available for testing, the Business Analyst role involves supporting the Quality Assurance activities. They may help business stakeholders with user acceptance testing, defect reporting and resolution.

The Business Analyst is accountable for ensuring that the solution developed meets the defined needs and should assess project success after implementation. Business analyst is the first person to say that the solution takes care of all the requirements that he has specified.

https://www.iiba.org/Careers/Careers/understanding-the-s-in-business-systems-analysis.aspx

Business Analysis For Dummies

Kupe Kupersmith, Paul Mulvey, Kate McGoey
John Wiley & Sons, 01-Jul-2013 - 384 pages
https://books.google.co.in/books?id=PYSDj_G57r4C



March 10, 2017

Personality Traits and Characteristics for Facilitating Creativity


Traits proposed by Torrance

Fluency, flexibility, originality, and ability to sense deficiencies, elaborate, and redefine

Reference: Scientific Views of Creativity and Factors Affecting Its Growth
Author(s): E. Paul Torrance
Daedalus, Vol. 94, No. 3, Creativity and Learning (Summer, 1965), pp. 663-681


Ellis Paul Torrance (1915-2003) developed  the TTCT (Torrance Test of Creative Thinking) uses simple exercises that test divergent thinking and problem-solving skills.

A full TTCT measures five attributes:

Fluency—the number the ideas a person can think of in a given period of time
Flexibility—the range of categories for the ideas participants came up with
Elaboration—the amount of detail in responses
Originality—the rarity of the idea
Openness—resistance to premature closure


INDIVIDUAL CHARACTERISTICS OF INNOVATORS
1. Innovators normally have a clear vision about what they want to accomplish.
2. Innovators can clearly define the specific objectives and benefits of the emerging project or product.
3. Innovators can present their views effectively to persuade their peers or colleagues.
4. Innovators are capable of getting support not only from their superiors but also from their team members or colleagues.
5. Innovators are bold enough to take calculated risks and to face the unforeseeable impediments, difficulties or setbacks.
6. Innovators are capable of motivating and inspiring people into action, so that every team member
contributes significantly to the project and their cooperation or participation is total.
7. Innovators can influence or mobilize support and required resources to achieve the desired result.
8. Innovators can cope up with interferences such as criticism, tardiness, lack of corporate enthusiasm, disputes over allocation of time and other such resources for projects.
9. Innovators have the willpower to maintain momentum in spite of the decline in early enthusiasm and hard work of their team members.
10. Innovators are capable of ensuring the principle that credits or rewards of success are appropriately shared by the team members.

Ref: Prof. A. Senguttuvan, CREATIVITY AS A NECESSARY COMPONENT OF ENGINEERING RESEARCH & DEVELOPMENT


A chapter having very good content on the topic of personality and creativity
https://books.google.co.in/books?id=XwjUAgAAQBAJ&pg=PA266#v=onepage&q&f=false




http://thesecondprinciple.com/creativity/creativetraits/   Number of lists of traits are given in this article.

March 6, 2017

Direct Marketing and Its Management - Kotler's Chapter - Topic Summary



Direct Marketing - Definition by Direct Marketing Association (DMA)


"Direct marketing is an interactive marketing system that uses one or more advertising media to effect a measurable response and/or transaction at any location."

The response of direct marketing is measurable as the marketing messages are sent to expected marketing decision makers and the messages are so designed that responses can be clearly identified.

Direct marketing messages are now being used to build relationships also. Examples would be sending birthday cards and information booklets.

Direct marketing is growing at higher rate than that of retail sales. Even in business-to-business to sales direct marketing is delivering results.

Direct marketing accounts for almost 48% of total advertising spending, and companies spend more than $161 billion on direct marketing per year (2005 year).

Direct marketing produced $2.05 trillion in sales in 2012.

Personalizing communications and providing information about the products about which they have interest at the right time increases marketing communication effectiveness. Right information about the right product (which he intends to buy) to the right person at the right time is the focus of direct marketing. Databases are used to pick the potential right customers and the things they may be interested in.

Benefits Reported by Users


Consumers short of time and tired of traffic and parking headaches appreciate direct marketing.
Significant number of persons report benefits from direct marketing methods. Consumers report that home shopping is convenient and also allows them to compare catalogues and order. Even business buyers report that they can go through relevant literature and make better choices without tying up time in meeting salespeople.

The growth of next-day delivery via FedEx, Airborne, and UPS has made delivery fast and easy.


Benefits Reported by Sellers


Sellers are reporting benefits. Sellers can buy targets mailing lists like recently married people, people who had a child birth recently, people who bought a home recently etc. They can customize and personalize messages. Direct marketing can be so designed that the message reach the prospects at the right moment and hence read by more-interested persons. The cost effective approaches can be determined among the direct marketing approaches.  Direct marketing approach becomes less visible to competitors.

For every $167 spent on direct mail, U.S. marketers sell $2,095 in goods. (Figure of 2014 or 2015)
http://squidcircle.com/cool-stats/

Direct Marketing Channels


Direct Mail
Catalog Marketing
Telemarketing
Interactive TV
Kiosks
Web Sites
Mobile Devices
Newspaper Advertisements with offers
Radio Ads with offers
TV Ads with offers
Home shopping TV channels

Direct Mail


In direct marketing, an offer, announcement, reminder or other item is sent to an individual customer. Highly selective mailing lists are used for the purpose. Letters, flyers, foldouts, CDs, DVDs, and computer discs and pen drives are sent through direct mail and parcel services. Although the cost per thousand people is higher than mass media, the people reached are better selected participants,  But direct mail is already a saturated channel as the response rates are falling in recently in financial services industry as compared to earlier days.

In the design of direct-mail campaigns or programs, marketers have to decide on their objectives, target markets, and prospects, offer elements, means of testing the campaigns and measures of campaign success.

Objectives

In the case of expected orders, a response rate of 2% is normally considered good. The response rate is determined by the product category, price and the nature of offer. Direct mail can also be used to produce prospect leads, strengthen customer relationships.

Direct Mail Offer Elements

The direct mail offer strategy has five elements - the product, the offer, the medium, the distribution method, and the creative strategy. All can be tested. The mail itself has five components: the outside envelope, sales letter, circular, reply form, and reply envelope.

Some important findings of researchers related to direct mail communications.

1. The envelope should contain an illustration, and it must have a catchy reason to open it such as the announcement of a contest or benefit. Sometimes a nonstandard shape or size of envelope also attracts the attention.
2. The sales letter has to be brief on a good quality paper. It must start with a personal salutation and a headline in bold type. It should be signed by someone whose title is important. Computer-typed or printed letters are getting better response compared to printed letters. A pithy P.S. also increases response rate.
3. A colorful brochure or circular with detailed explanation of the offer accompanying the letter increases the response rate and offsets the increased cost.
4. The mailers must have a toll-free number for giving clarifications and bookings and a supporting website from which coupons etc. can be printed.
5. A postage free-reply envelope dramatically increases response rate.

Once again it is important to stress that all can be test marketed.

Direct marketing has effect on awareness, intention to buy and word of mouth apart from the actually buy order.

Direct marketers can calculate life time value of customers and campaign break-even response rate can be determined.

Direct Mail Target Selection

Recency, frequency and monetary amount are the criteria based on which targets are selected for sending direct mail. Point systems are used to select potential buyers. The potential targets are also determined by demographic segmentation to decide the products which are offered to certain segments.

Catalog Marketing


In catalog marketing, catalog containing all items offered by sale by the firm is given to customers. The marketing method is used in both business to business sales as well as business to consumer sales.

Read Catalog Strategists Tool Book
http://www.nmoa.org/catalog/catalogtoolkit.htm
NMOA - National Mail Order Association

The catalog marketing is an important segment of sales in USA. The internet and catalog retailing industry includes 20000 companies with annual revenue of $350 sales. The companies operate special call centers to answer questions related to items covered in the catalogues, send free gifts and sales promotion vouchers, operate ecommerce sites to make buying more convenient and even organize exhibitions to provide a chance to see and feel the products. More detailed catalogs are uploaded on the websites to make more information accessible to interested persons.

Dell is the leading catalog marketer in USA.
http://www.encyclopedia.com/economics/economics-magazines/industry-profiles-catalog-and-mail-order-houses-0


Print versus Digital Catalogs


Why the Print Catalog Is Back in Style
Denise Lee Yohn
Harvard Business Review, FEBRUARY 2015
https://hbr.org/2015/02/why-the-print-catalog-is-back-in-style

http://blog.catalogmachine.com/marketing/digital-catalogs-best-product-marketing-sales-tool-small-businesses-online-stores/

https://www.bakergoodchild.co.uk/the-role-of-print-in-direct-marketing/

http://www.prnewswire.com/news-releases/ricoh-engagement-marketing-executive-symposium-fosters-conversations-on-prints-role-in-an-omnichannel-world-300390148.html

http://squidcircle.com/cool-stats/


Seven Tips for Direct Marketers (Graphics services example)
https://www.xerox.de/digitaldruck/latest/BDMWP-02G.PDF


http://www.euromonitor.com/direct-selling-in-the-us/report

References

Marketing Management, 13th Edition, Philip Kotler and Kevin Lane Keller
Marketing Management, 15th Edition, Philip Kotler and Kevin Lane Keller, 2016



Planned Revision schedule for marketing chapters is in February and March

Updated  9 March 2017, 29.1.2015, 11.6.2014,19.3.2013, 2.12.2011

Kotler's Book Chapter
http://www.pearsoned.ca/highered/showcase/kotler/pdf/9780132473958_ch17.pdf