May 29, 2017

Innovation Management - Research, Development, Design and Commercialization




2017

May

HOW TO APPLY LEAN THINKING IN INNOVATION, PRODUCT AND SERVICE DEVELOPMENT
Matti Perttula

Lean production seeks to increase flow (not resource) efficiency by reducing waste. Flow efficiency is calculated by dividing added value time with total time. The usual situation is that companies focus on resource efficiency rather than flow efficiency of a certain project.

http://www.innotiimi-icg.fi/blogi/item/785-lean-thinking-in-innovation-product-service-development

May 25, 2017

May - Management Knowledge Revision with Links






First Week  1 May to 5 May 2016


Cost Information for Pricing Decisions
Cost Behavior Analysis and Relevant Costs

Costing for Strategic Profitability Analysis
Cost Information for Customer Profitability Analysis

Costing for Spoilage, Rework and Scrap
http://nraomtr.blogspot.com/2011/12/costing-for-spoilage-rework-and-scrap.html
Costing for Quality, Time and the Theory of Constraints
http://nraomtr.blogspot.com/2011/12/costing-for-quality-time-and-theory-of.html


Costing for Inventory Management, JIT and Backflush
Cost Information and Analysis for Capital Budgeting

Cost Information for Management Control and Performance Control
Cost Information for Transfer Pricing

Second Week 8 May to 12 May 2016


Managerial Accounting or Management Accounting - Review Notes
Relevant Information and Decision Making - Marketing Decisions

Relevant Information and Decision Making - Production
Relevant Information and Decision Making - HR

The Master Budget - Accounting Information
Flexible Budgets and Variance Analysis - Review Notes

Responsibility Accounting for Management Control
http://nraomtr.blogspot.com/2011/12/responsibility-accounting-for.html
Accounting Information for Management Control in Divisionalized Companies
http://nraomtr.blogspot.com/2011/12/accounting-information-for-management.html

Capital Budgeting - Accounting and Cost Information


Revision of Organizational Behavior

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Introduction to Organizational Behavior
http://nraomtr.blogspot.com/2011/12/introduction-to-organizational-behavior_06.html

Third Week   15 May to 19 May

Environmental context: Information Technology and Globalization
 Environmental context: Diversity and Ethics

 Organizational Context: Design and Culture
Organizational Context:: Reward Systems

Perception and Attribution
http://nraomtr.blogspot.com/2011/12/perception-and-attribution-review-notes.html
Personality and Attitudes
http://nraomtr.blogspot.com/2011/12/personality-and-attitudes-review-notes.html

Motivational Needs and Processes
http://nraomtr.blogspot.com/2011/12/motivational-needs-and-processes-review.html
Positive Psychology Approach to OB
http://nraomtr.blogspot.com/2011/12/positive-psychology-approach-to-ob.html


Communication
http://nraomtr.blogspot.com/2011/12/communication-review-notes.html
Decision Making
http://nraomtr.blogspot.com/2011/12/decision-making-review-notes.html

Fourth Week  22 May to 26 May 2015



Stress and Conflict
http://nraomtr.blogspot.com/2011/12/stress-and-conflict-review-notes.html
Power and Politics
http://nraomtr.blogspot.com/2011/12/power-and-politics-review-notes.html

Groups and Teams
http://nraomtr.blogspot.in/2011/12/groups-and-teams-review-notes.html
Managing Performance through Job Design and Goal Setting
http://nraomtr.blogspot.in/2011/12/managing-and-leading-for-high.html

Behavioral Performance Management
http://nraomtr.blogspot.in/2011/12/behavioral-performance-management.html
Effective Leadership Process
http://nraomtr.blogspot.in/2011/12/effective-leadership-processes-revision.html


Great Leaders: Styles, Activities, and Skills
http://nraomtr.blogspot.in/2011/12/great-leaders-styles-activities-and.html
Principles of Innovation
http://nraomtr.blogspot.in/2014/11/the-ten-principles-of-innovation.html

Innovation - Strategic Issues and Methodology
http://nraomtr.blogspot.com/2014/11/innovation-strategic-issues-and.html
Idea Generation in Organizations
http://nraomtr.blogspot.com/2014/11/idea-generation-in-organizations.html


28 & 29 May

To June - Management Knowledge Revision

May Month - Birthdays of Management Scholars and Business and Industry Magnates and Accomplished Professionals - Biographies


1
2
3 - Sidney S. Alexander (1916)
4
5 - Jerry A. Hausman (1946)
6 - Sigmund Freud (1856), Kenneth Blanchard (1939)
7
8 - Benjamin Graham (1894)  [Graham - Rao Method]
9
10 - Daniel Bell (1919), William James Reddin (1930),  Ikujiro Nonaka (1935)
11 - Morris Llewellyn Cooke (1872)
12 - Thomas H. Carroll II (1914)
13
14 - William R. Spriegel (1893), Mark Zuckerberg (1984) [Zuckerberg - Narayana Rao Reading Challenge 2015]
15 - Paul Samuelson (1915)
16 - Edward T. Hall (1914), Merton Miller (1923), Robert Butler Wilson Jr. (1937),  Catherine Tucker (1977)
17
18
19 - Harold Koontz (1908) Biography: http://mtrrp.blogspot.com/2014/05/prof-dr-harold-koontz-biography-and.html
20 - Henry Gantt (1861), Edwin C. Nevis (1926)
21
22
23 - Michael Porter (1947)
24 - Lilian Gilbreth (1878),
25 - Paul Cootner (1930)
26
27 - Philip Kotler (1931)
28
29
30
31




One Year MBA Knowledge Revision Plan

January  - February  - March  - April  - May   -   June

July  - August     - September  - October  - November  - December

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Old Plan
To be Removed



Opportunities or Areas for Innovation














Product Design Efficiency Engineering

Project Management - Introduction - Revision Article



Selling Process – Prospecting

Sales Process – Call Planning



Approaching the Prospect

Interacting with the Prospect



Prospect Objections During Sales Presentations

Trial Close



Sales Closing Techniques

Service to Customer: Follow Up After The Sale

Second Week


Risk Premium

Safety Stock Determination



Scanning of Environment for Marketing Ideas

Scientific Approach, Engineering Approach, Management Approach



SHAREHOLDER VALUE MANAGEMENT THEORY REVIEW

Software Cost Management



Statistics - Introduction

Stock Market Efficiency Theory and Implications for Financial Management



Supervision - Introduction - Public Administration

Supply Chain Cost Reduction

Third Week






Suppy Behavior/Decisions of Firm in Competitive Markets

System Design Principles



Talent Management

Target Costing and Target Cost Management



Total Improvement Management

Total Industrial Engineering - H. Yamashina



Valuation and Verification of Closing Stock - Auditing

Valuation of Bonds and Equity Shares

Fourth Week



Variance Analysis, Flexible Budget and Management Control





What is Strategy in Simple Terms?

Who is a Knowledge Worker?



Communities of Practice

Audit Report - Auditing



Political Strategies in Use for Acquiring and Using Power

Personal Power and Social Power



Soft Power - Hard Power

Power - The Concept and Theory in Organizational Behavior




























May 11, 2017

Organizational Behavior - Revision Articles with Links and Schedule


Organizational Behavior - Revision Articles Based on Fred Luthans Book






12 May

Introduction to Organizational Behavior



May Third Week   15 May to 19 May 2015


Environmental context: Information Technology and Globalization
Environmental context: Diversity and Ethics

Organizational Context: Design and Culture
Organizational Context:: Reward Systems

Perception and Attribution
Personality and Attitudes

Motivational Needs and Processes
Positive Psychology Approach to OB


Communication
Decision Making

Fourth Week  22 May to 26 May 2015



Stress and Conflict
Power and Politics

Groups and Teams
Managing Performance through Job Design and Goal Setting

Behavioral Performance Management
Effective Leadership Process


Great Leaders: Styles, Activities, and Skills






Innovation Management

Principles of Innovation

Innovation - Strategic Issues and Methodology
Idea Generation in Organizations


To June - Management Knowledge Revision


Updated  13 May 2017



Writing on Top Management Challenge Areas - Reflection


Writing on Top Management Challenge Areas for A to Z Blogging Challenge - Reflection





For the April A to Z Blogging Challenge 2017, I wrote on the theme top management challenges. I got an opportunity to think about the issues facing the top management and do literature review regarding the topic. I realize now that I can continue the work on these articles for further and provide a further list of related articles that can be read by interest top managers to develop an understanding of the published literature on the issues identified. Thus I see the potential for studying and enlarging the ideas during the rest of the year. So I am happy that my exercise is a fruitful one.

Index to all articles published

Page views count of each article

I got more than 5000 page views for the articles during the challenge period. I am happy with the page view performance also.

I intend to write next year on the theme Entrepreneurial CEO Characteristics and Activities. The series will use the article "HIRING AN ENTREPRENEURIAL LEADER". By: BUTLER, TIMOTHY. Harvard Business Review. Mar/Apr2017, Vol. 95 Issue 2, p84-93. as the primary resource. The topics are likely to be from the following.

CONSISTENCY or FLEXIBILITY
PROVEN or POTENTIAL
CAREFUL or BOLD
EXPLORE or SETTLE
PREDICTABLE or POSSIBLE
BONUS or SALARY
SAFETY or OPPORTUNITY
MEDAL or JOY
PUZZLE or BLANK CANVAS
NIMBLE or STEADY
CHANGE or CONSTANT
KNOWN or UNKNOWN
PATIENCE or EXCITEMENT
FRONTIER or HOME
SET or OPEN
WILD or TAME
VARIETY or CERTAINTY
INHERIT or CREATE
OWN or MANAGE
SUGGEST or DIRECT
LEAD or PARTICIPATE
SHAPE or CONTROL
CAPTAIN or NAVIGATOR
OWNERSHIP or TITLE
GRACE or POWER
COMPLETE or REFLECT
ASPIRE or ACCOMPLISH
MEMBERSHIP or POSSESSION
KNOWLEDGE or POWER
PRESIDENT or MINISTER
PROFIT or EQUITY

I shall try to collect information and create initial posts and then make the updated posts for the April Challenge.

I thank the A to Z team  Arlee to Zealous participants for creating a network of bloggers and an event for acting and interacting. I intend to participate in the activities of AtoZ Challenge throughout the next year.

May 7, 2017

Business Reimagination - Digital Reimagination


It is the period of business reimagination.

Sometime back we had business process reengineering. Now we have business reimagination. This reimagination is triggered by new digital technologies. It is also being named digital reimagination.


Digital Reimagination

Five key technologies (Digital Five Forces)  are  maturing and  precipitating
the shift to the Digital Consumer Economy. These are Mobility and Pervasive Computing, Big Data,
Social Media, Cloud, and AI-Robotics. These forces are  being used in various permutations
and combinations to drive new applications. As a result, new Digital Composite Forces are emerging.

Foremost among them is the Internet of Things, which combines mobility and pervasive computing,
big data, cloud, and—increasingly—artificial intelligence.

Large number of  devices can be connected to the IoT  driving new economic opportunities. “Digital Reimagination.” involves leveraging a combination of the Digital Five Forces and Digital Composite Forces to reimagine the enterprise along one or more of six dimensions: business models, products and services, customer segments, channels, business processes, and workplaces.
http://info.tcs.com/rs/tcs/images/Report-HBR-ConnectedProducts.pdf
http://nraomtr.blogspot.com/2016/03/internet-of-things-businessvalue.html

When did the term start.

We are investigating. This 2012 presentation carries lots of examples of changes that occurred in various forms due to digital technologies.

https://scholarlykitchen.sspnet.org/2012/06/01/mary-meekers-internet-trends-2012-the-reimagination-of-nearly-everything/


2017 Videos

Lubomira Rochet, Digital Transformation at L'Oreal
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Said Business School, Oxford University
27 April 2017


The Re-Imagination of Healthcare and What's to Come -- 2013 DHC
December 2013
Moderated by StartUp Health's CEO Steven Krein, this panel of industry experts discusses why there has never been a more exciting time for healthcare innovation and what this means to healthcare ecosystem stakeholders like providers, patients, entrepreneurs, government, corporations, and investors. This forward-looking discussion explores how the Golden Age of Entrepreneurship and Digital Health is creating an innovation landscape in healthcare like we've never seen before.

Moderator: Steven Krein -- Co-Founder and CEO, StartUp Health

Eric Gertler -- Executive Vice President, New York City Economic Development Corporation

Maria Gotsch -- President and CEO, Partnership Fund for New York City

Ryan Olohan -- National Industry Director, Healthcare, Google

Todd Pietri -- General Partner, Milestone Venture Partners

www.DigitalHealthConference.com
www.nyehealth.org

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NYeHealth


Re-Imagining Work
Published on 25 Sep 2013
Dave Coplin, Chief Envisioning Officer at Microsoft, imagines what might be possible if more organisations embraced the full, empowering potential of technology & encouraged an open, collaborative & flexible working culture. Discover more RSA animations: http://bit.ly/1FKMHGv.
The RSA

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Become the Digital Transformation Expert in Your Organization -- Top 20 Whitepapers on Digital Transformation
Published on May 9, 2017
https://www.linkedin.com/pulse/become-digital-transformation-expert-your-top-20-whitepapers-tang

Number of MBAs in the World



The first MBA was started at  Dartmouth College’s Tuck School 114 years (1904) ago with a four-student class.

In 2011-2012, 191,571 people graduated from U.S. schools with advanced degrees in business, some 25.4% of all the master’s degrees conferred. That compares with 178,062 master’s degrees in education, or 23.6%, of all the advanced degrees.

More than 16 million people in the U.S., roughly 8% of the country's population, now has a master's on his or her resume (2014)


On  July 19 2013,  Financial Times, p. 8, has a report on business schools (Emma Boyde, “A degree of relevance for the 21st C.?”   p. 8).   According to FT,    there are 15,673 institutions worldwide offering business degrees at all levels.    Basically, America invented the MBA.  In 2011-12,  some 156,400 students were enrolled in US MBA programs.

 



For detailed reading

http://fortune.com/2014/05/31/mba-popular-masters-degree/

https://timnovate.wordpress.com/2013/07/17/too-many-mbas-in-the-world/



India

April 2016
India has at least 5,500 B-schools in operation now.
In 2015-16, these schools offered a total of 5,20,000 seats in MBA courses, compared to 3,60,000 in 2011-12.


January 2015
According to AICTE, the number of management institutions have risen from 2,614 in 2006-07 to 3,364 in 2013-14.
According to All India Council for Technical Education (AICTE), 3,54,421 students enrolled for MBA in 3,364 institutions across the country last year.


http://economictimes.indiatimes.com/news/industry/services/education/out-of-three-lakh-mba-graduates-every-year-only-10-are-employable-experts/articleshow/45867352.cms

http://www.assocham.org/newsdetail.php?id=5651

May 1, 2017

Costing for Quality, Time and the Theory of Constraints



Cost Accounting and Cost Measurement for Poor Quality Related Costs



Companies that fail to achieve quality at design level to provide as per customer requirement will fail in the market place. Also if the production system is unable to produce as per the design specification, spoilage will occur, rework will occur and failure of the product at the customer's place occurs sooner than expected.  Failure at the customer's end results in customer dissatisfaction, return of the product for repairs and bad word of mouth for the brand. Rework results in extra costs of production. Spoilage is also a loss due to material loss, labor loss and overhead loss associated with the spoilage. As the costs of poor quality are understood and quality improvement methods have evolved, accounting for poor quality related costs also emerged.

Cost of quality framework

Cost of quality framework states that quality can be improved by improving design and production processes and this will reduce appraisal costs, internal failure costs and external failure costs. Also increase in appraisal cost has the potential to reduce internal and external failure costs. To see this phenomenon in practical real life situations, cost accountants are being asked to prepare poor cost of quality statements showing the amount spent on each category of the following costs.

Prevention costs

Appraisal costs

Internal failure costs

External failure costs

Then quality managers and engineers or industrial engineers can come out with plans to increase prevention costs and appraisal costs and decrease internal and external failure costs. Needless to say engineering or managerial economics requires that incremental cost incurred must be less than the benefit realized that is decrease in total failure costs.

Cost accountants have to take the cost of quality categories as cost objectives and provide cost figures for them.


Seven Step Activity Based Costing for Determining Cost of Quality


1. Identify the Cost Objects - Concerned product, total cost of quality, individual category of cost of quality

2. Identify Direct Costs - There are no direct costs related to cost of quality

3. Select the Cost Allocation Bases to Use for Allocating Indirect Costs of the Product - For quality related work design hour, inspection hour, rework hour, were taken as cost allocation bases. In the case of external failure there is cost of transporting the item back to the company. For this a transport event is taken as the cost allocation base.

4. Identify the Indirect Costs Associated with Each Cost Allocation Base - Total cost incurred in product design, process design, inspection, rework due to internal and external failure, transport of customer returns are accumulated.

5. Compute the Rate Per Unit of Each Cost Allocation Base - For each activity, total quantity of performance (cost allocation base) is determined and it is used to divide total cost incurred to get the rate per unit of each cost allocation base,

6. Compute the Indirect Allocated to the Product - Compute the quantities of each cost allocation base related to poor quality used by the product.  Multiplying quantity with the corresponding rate per unit of the collection base will give the indirect to be allocated to the product for that allocation base.

7. Compute the Total Cost of the Cost Object: In our case of cost of quality is the cost object and we add all items of cost of quality framework to get total cost of quality.


Nonfinancial Measures of Quality

Nonfinancial measures are also important and their importance is brought into limelight by the balanced score card approach, Cost and management accountants have also a role to play in recording data of nonfinancial measures and creating statements of these measures.

Nonfinancial measures of customer satisfaction as index of quality

1. Market research studies on customer preference and satisfaction with specific products and product features.
2. The number of defective units reported by customers as a percentage of products shipped.
3. The number of customer complaints in a period say a month
4. Percentage of products that experience a early or excessive failure
5. Delivery delays - Percentages - Highest number of days
6. On-time delivery rate



Reference
Horngren, Foster, Datar,  Cost Accounting: A Managerial Emphasis, 10th Edition, Prentice Hall Inc., 2010


Updated 3 May 2017, 6 May 2015
First Published 8 December 2011