Assignment No 1
The Latest Trends in Business
Engineering Economics & Management
Submitted By
Khawaja Hamza
(D-14-CS-02)
Submitted To
Engr. Maria Basheer
Dawood University of Engineering and
Technology Karachi
Index
Shareholder Value as a Strategy
1
IT as a Utility... 2
The Customer Chorus.
3
Enterprise Risk Management.
4
The Creative Organization..
5
Open Source Community resources beyond
software...
6
Going Private SOX workaround..
7
Behavioral Economics Freakonomics.
8
High Potentials..
9
Competing on Analytics
10
Reverse Innovation
11
Sustainability..
12
Shareholder Value as a Strategy
The value delivered to shareholders because of management's ability to
grow earnings, dividends and share price. In other words, shareholder
value is the sum of all strategic decisions that affect the firm's ability to
efficiently increase the amount of free cash flow over time.
Critics imply that managing for shareholder value is all about
maximizing the short-term stock price. Companies that manage for
shareholder value, the thinking goes, do whatever it takes to engineer an
ever-higher market price. That is a profound misunderstanding. The
premise of shareholder value, properly understood, is that if a company
builds value, the stock price will eventually follow. The objective is to
build value and then let the price reflect that value.
While some executives allow that they should not manage to increase
the short-term stock price, they remain reluctant to embrace the concept
of managing for shareholder value. It is worth explaining why this is the
right objective, and how other stakeholders including employees,
customers, and suppliers fit into the picture.
IT as a Utility
Using IT to leverage the business to new grounds has ALWAYS been the
case, not only for this decade, but for as long as I can remember,
business is built around IT, which is wrong as we were taught in Honors
classes, but when you look at what's driving a thriving Silicon Valley
business today, its the technology, believe it or not, but Google was
built on the idea of a technology that could be exploited, the business
side of it all came after they found out how to make one search yield 10
million records!
As customers and business partners increasingly demand greater
empowerment, utilities companies seek to improve interactions and
relationships in their entire business ecosystems by enhancing software
capabilities for collaboration, gaining deeper customer and market
insight and improving process management.
The Customer Chorus
Chorus is a Customer Intelligence and Reporting tool that helps
companies get in tune with what their customers think and feel in realtime.
With Chorus You Can:
Learn what your customers think and feel in real-time: Understanding
what your customers think and how they feel is crucial. Chorus analyzes
messages from customers in real-time allowing you to accurately
monitor how and why customers feel the way they do.
Increase customer loyalty: Customers come back when they're delighted.
Finding effective ways to give great service and surprise customers is a
breeze with Chorus.
Discover how your customers perceive your company: Your customers
email you every day, more than any other communication channel. How
much do you know about what's being said in those emails?
High impact marketing campaigns: Blanket mail-outs aren't enough
anymore. Chorus is great for creating targeted marketing campaigns. It
can find customer segments you never knew existed. For example: What
are you doing for all your customers who experienced some form of
natural disaster this month?
Enterprise Risk Management
The process of planning, organizing, leading, and controlling the
activities of an organization in order to minimize the effects of risk on an
organization's capital and earnings.
Enterprise risk management expands the process to include not just risks
associated with accidental losses, but also financial, strategic,
operational, and other risks.
Enterprise risk management (ERM) in business includes the methods
and processes used by organizations to manage risks and seize
opportunities related to the achievement of their objectives. ERM
provides a framework for risk management, which typically involves
identifying particular events or circumstances relevant to the
organization's objectives (risks and opportunities), assessing them in
terms of likelihood and magnitude of impact, determining a response
strategy, and monitoring progress. By identifying and proactively
addressing risks and opportunities, business enterprises protect and
create value for their stakeholders, including owners, employees,
customers, regulators, and society overall. (ERM).
The Creative Organization
The decade saw a general revolution in the way many organizations
came to view their source of competitive advantage, and a commitment
to finding ways to produce creative output more reliably. Even before
they embraced design thinking, managers were encouraging
collaboration, drawing on diverse perspectives, and engaging whole
workforces in ideation.
Apple and Google is a prime example. Remember the times not too long
ago when it was all Apple and Microsoft? Microsoft got kicked off the
bench it was warming for Google the leaders in innovation, this
innovation brings about revenue like never seen before, gone are the
days of pure manufacturing revenue innovative companies will last any
recession, go look at Apple and Google's numbers for the past year.
Open Source
The term "open source" refers to something that can be modified
because its design is publicly accessible.
In the last years, knowledge and learning management have made a
significant impact on the IT research community. Open Source for
Knowledge and Learning Management: Strategies beyond
Tools presents learning and knowledge management from a point of
view where the basic tools and applications are provided by open source
technologies.
Open Source for Knowledge and Learning Management: Strategies
beyond Tools explains an intense orientation to the critical issues of the
open source paradigm: open source tools, applications, social networks,
and knowledge sharing in open source communities. Open source
technologies, tools, and applications are analyzed in the context of
knowledge and learning, and this convergence formulates a challenging
landscape for the deployment of information technology.
Going Private
A public company may choose to go private for a number of reasons.
An acquisition can create significant financial gain for shareholders and
CEOs, while the reduced regulatory and reporting requirements private
companies face can free up time and money to focus on long-term goals.
Because there are advantages and disadvantages to going private as well
as short- and long-term issues to consider, companies must carefully
weigh their options before making a decision. Let's take a look at the
factors that companies must factor in to the equation.
A take-private transaction is an attractive and viable alternative for many
public companies. As long as debt levels are reasonable and the
company continues to maintain or grow its free cash flow, operating and
running a private company frees up management's time and energy from
compliance requirements and short-term earnings management and may
provide long-term benefits to the company and its shareholders.
Behavioral economics
Behavioral and the related field, behavioral finance, study the effects of
psychological, social, cognitive, and emotional factors on
the economic decisions of individuals and institutions and the
consequences for market prices, returns, and the resource allocation.
Behavioral economics tends to split into theoretical and experimental
strands. If you do microeconomic theory, it's easy to mix in some
behavioral economics. Likewise, the techniques of experimental
behavioral economics are essentially the techniques of experimental
economics at large.
I think you might find it a little limiting to consider yourself a behavioral
economist from the start; one should be open-minded and look for the
questions you want to answer, then choose the tools to answer them. Let
yourself get drawn into whatever areas of research you enjoy most.
Economics is generally very open to diverse interests.
High Potentials
High-potential talent can help secure your long-term talent planning and
ensure a strong leadership pipeline. These people are the future leaders
of your company, and by using targeted development and succession
planning techniques, you can tap into their aspirations to lead big
changes and transform markets. Learn about the many ways you can
mold these high-potential leaders, capitalizing on their high performance
to achieve crucial business goals.
Its important to determine whether your high performing
employees want to move up in your organization. Thats the aspiration
component of what being a high potential employee means.
Also keep in mind that leadership doesnt necessarily mean climbing the
management ranks. An individual contributor who has the potential to
increasingly specialize and demonstrate leadership in their area can also
be a high potential employee.
Start by identifying what constitutes high potential in your
organization, then use your succession planning software to get
managers to rate their employees potential. At the same time, ask
managers to rate their employees readiness for promotion, and to
identify any who are at risk of leaving and why.
Competing on Analytics
Analytics (BA) refers to the skills, technologies, practices for continuous
iterative exploration and investigation of past business performance to
gain insight and drive business planning analytics focuses on developing
new insights and understanding of business performance based
on data and statistical methods. In contrast, business intelligence
traditionally focuses on using a consistent set of metrics to both measure
past performance and guide business planning, which is also based on
data and statistical methods.
Business analytics makes extensive use of statistical analysis, including
explanatory and predictive modeling and fact-based management to
drive decision making. It is therefore closely related to management
science. Analytics may be used as input for human decisions or may
drive fully automated decisions. Business intelligence
is querying, reporting, online analytical processing (OLAP), and "alerts."
Reverse Innovation.
The process of reverse innovation begins by focusing on needs and
requirements for low-cost products in countries like India and China.
Once products are developed for these markets, they are then sold
elsewhere - even in the West - at low prices which creates new markets
and uses for these innovations.
Typically, companies start their globalization efforts by removing
expensive features from their established product, and attempt to sell
these de-featured products in the developing world. This approach,
unfortunately, is not very competitive, and targets only the most affluent
segments of society in these developing countries. Reverse innovation,
on the other hand, leads to products which are created locally in
developing countries, tested in local markets, and, if successful, then
upgraded for sale and delivery in the developed world.
Reverse innovation has been identified as a key emerging trend in global
health systems. Key health areas where low-income countries can offer
solutions to medium and high-income country settings include, rural
health service delivery; skills substitution ; decentralization of
management; creative problem-solving; education in communicable
disease control; innovation in mobile phone use; low technology
simulation training; local product manufacture; health financing; and
social entrepreneurship. System-wide benefits may also be seen as
accruing across every part of the World Health Organization Health
Systems Framework, specifically the six building blocks of health
systems: service delivery; health workforce; health information medical
products, vaccines, and technologies; health financing; and health
leadership and governance. However, the applicability of developing
country innovations in developed country settings remains relatively
undocumented and further work needs to be undertaken to advance
understanding of health innovation diffusion between countries
Sustainability
Sustainability is being able to endure and survive in an environment into
the future. In terms of business, sustainability management is about
incorporating social, economic and environmental factors into your
business decisions. It involves placing an emphasis on future, long term
goals for your business rather than focusing on short term profits.
Sustainable management is needed because it is an important part of the
ability to successfully maintain the quality of life on our planet.
Sustainable management can be applied to all aspects of our lives. For
example, the practices of a business should be sustainable if they wish to
stay in businesses, because if the business is unsustainable, then by the
definition of sustainability they will cease to be able to be in
competition. Communities are in a need of sustainable management,
because if the community is to prosper, then the management must be
sustainable