According to the symposium leaflet the goal is “to give you as a student an impression fo what the market will look like in five years. […] most students will be looking for a job by that time […]” In the concluding section Iwill evaluate if this goal has been met for me personally. Let’s kick-off quickly with the first part of the opening speech.
Opening speech by Professor Ir. Roel Pieper
In this first section I will discuss a few interesting topics from the opening speech of professor Ir. Roel Pieper. Professor Pieper starts his presentation with the following statement on the title slide: “Value creation, nothing else matters.”
This task of value creation is perfectly suited for the entrepreneurs and intrapreneurs, since entrepreneurship is an engine of the economy especially in the current hard economic times.
Every new idea has a hype cycle
The first topic Iwould like to hightly is the so called hype cycle. But what is a hype cycle ? This is a concept developed by Gartner Research in 1995, and a formal definition of the concept and an explenation of the different phases can be found on a special hype cycle section of the Gartner Research website.
“A Hype Cycle is a graphic representation of the maturity, adoption and business application of specific technologies. Gartner has used Hype Cycles to characterize the over-enthusiasm or “hype” and subsequent disappointment that typically happens with the introduction of new technologies. […]”
A hype cycle consists of five different phases:
- Technology Trigger;
- Peak of Inflated Expectations;
- Trough of Disillusionment;
- Slope of Enlightenment;
- Plateau of Productivity;
Both in the “Gartner’s Hype Cycle Special Report for 2005” and the more recent press release “Gartner’s 2009 Hype Cycle Special Report Evaluates Maturity of 1,650 Technologies” give you some practical examples of using the hype cycle.
The triangle of value creation
The second topic I would like to discuss is the by Professor Pieper presented “triangle of value creation”. The triangle of value creation is a simple easy to use model, which can help you to understand some of the basic dynamics of a business (model) and the underlying relations.
Each variable in the triangle is relevent, and really understanding these variables and the relations is a huge advantage for the entrepreneur (in my personal opinion). Engineers are often trained to develop the best available technology on the market, but according to the triangle of value creation, technology only will not bring you success. Also if you just have the money and financials only, it won’t do it. If you have great market knowledge and market access only, it sometimes can work and result in success.
However the main overall idea of the triangle of value creation is that you clearly think about all the three key variables, the underlying relations, and a way to balance them (since each variable is relevant). With the triangle of value creation model you don’t think about just one aspect, and in my personal peception I can see clear links with the design of a business model, for example the design tools presented by Alexander Osterwalder.
Value stack analysis
Another important aspect in the process of value creation is a value stack analysis. The picture above gives a graphical representation of the general industry value chain, and let’s assume an entrepreneur has started the yellow company in the middle of the top row.
It is not hard to imagine that there is a distribution of the total value across the complete industry value chain (from left to right), and therefore for the entrepreneur it is important to understand which part of the total value stack is for his yellow company. Another example is for example a manufacturing company which delivers parts of a certain end-product that is directly sold to a customer. In this case it is important to understand what value the parts represent of the total value of the end-product.
In the value stack analysis you should also think about aspects like core ip and patents, brand value, distribution network or the power of purchasing. 🙂
Creating value top 10 !
The last topic I wanted to share from the opening speech of professor Roel Pieper is an overview of one of his slides, the so called creating value top 10 !!
- Accept that you win and lose;
- Leadership- responsibility – commitment;
- People quality;
- Who wins and who loses;
- The composition of the market;
- Multi-sourcing and -partners;
- Communication website;
- Communication – verbal pitch;
- Scalability – value triangle – value stack;
While this top 10 consists of some great items to think about, you might have noticed that in the sections above the last point is almost completely outlined. With the creating value top 10, I would like to end the opening speech section, and provide you with an idea of two workshops (out of four), which I attended in the afternoon program of the vision on the future symposium.
Workshop 1 – A close look at the IT (Structures) @ Centre for Information and Communication Technology, part of the Dutch Tax Administration
This workshop is organized by Saco Bekius of the Centre for Information and Communication Technology and Professor Dr. Jos van Hillegersberg from University of Twente. I don’t have a formal education in computer science and information technology, so with events like this symposium I always try to broaden my horizon and move out of your own professional field.
On the website of the Dutch Tax Administration you can read the following description of the Centre for Information and Communication Technology:
“The approximately 3,000 staff members of the Centre for Information and Communication Technology (B/CICT) in Apeldoorn develop, manage and monitor the entire computer system used by the more than 30,000 staff members of the Tax and Customs Administration. This makes B/CICT one of the largest internal ICT organisations in the Netherlands.”
It isn’t a big surprise that this part of the Dutch Tax Administration is of vital importance of the whole Tax Administration organization. In other words you could call it the backbone of the organization, which therefore makes it very interesting to discuss.
The impact of e-service trends @ the Dutch Tax Administration
- Key e-services trends;
- Current services and organization of the Dutch Tax Administration;
In this first part of the workshop the attendees should brainstorm and engage in an open discussion on how e-services trends will have an impact on the Dutch Tax Administration. What should the Dutch Tax Administration of the future look like ?
The importance of organizational and IT architecture @ the Dutch Tax Administraion
- Architecture modelling and legacy architecture transformation;
- Current organizational- and IT architecture of the Dutch Tax Administraion;
The second part also consited of an open discussion on what should happen in organization, processes and IT to achieve the Dutch Tax Administration of the future. Due to the wide variety of professional- and educational backgrounds of the attendees these discussions were great, interesting and highly valuable.
Personally I learned some more aspectes about e-services trends and IT architecture as well as legacy architecture transformations and their organizational impact.
Workshop 2 – International Risk Management @ Storck Aerospace
This workshop is organized by Joanne Geurts, Floor Richters & Robert Imhof of Storck Aerospace and Professor Dr. Rez Kabir from University of Twente.
On the Storck Aerospace website, you can find a formal description from this interesting business unit of Storck B.V., which will be producing parts for the Joint Strike Fighter:
“Stork Aerospace designs, develops and produces advanced structures and electrical systems for the aerospace and defence industry and supplies integrated maintenance services and products to aircraft owners and operators. The Aerospace group carries out these activities with 3,532 employees.”
It won’t be hard to imagine that production of parts of a multimillion euro fighter plane, involves accurate management of high-end product specifications, safety regulations, challenges for manufacturing and tracebility. In the light of these aspects this workshop consists of a business case where you need to assess the risks of setting up a factory in Chili, Soutch America.
The used method for analyzing the risks is the “Gross Hazard Analysis“, which I will discuss step by step below:
Step 1 – Determine scope
Step 2A – Identify risk
Is the risk caused by human, technical failure, or nature ?
Step 2B – Asses risk
It is very important to understand the difference between danger and risk, since these are two very different concepts. Danger = potential treat for people or business and is not quanitified !
Risk = severence * probability (quantifiable !!) with severence: I – catastrophic, II – critical, III, IV and with probability: A, B, C, D, E, F
Step 3 – Determine the Risk Profile
With help of the graph above you can create a risk profile, which consists of the several indiviual risks you thought about in the previous steps. This Risk profile gives you an overview of the portfolio of different individual risks. A simple rule or constraint is that all risks above the blue line need to be mitigated. In other words the risk profile is higher if many of the individual risks are above the blue line.
Step 4 – Making a decision about the risk
In this final step you need to make a decision to (1) eliminate, (2) reduce, (3) transfer or (4) accept the risk(s).
In addition to the application of the Gross Hazard Analysis in a Storck Business Case, Professor Dr. Rez. Kabir held an excellent presentation about International Financial Risk Management. This was a great complementary, but very insightful presentation (certainly in the current economic times). Professor Dr. Rez Kabir discussed a well tought-out financial risk analysis of Storck Aerospace based on the publically available information (like press releases and annual year reports).
Concluding thoughts and wrap-up
At first I would like to compliment the student association Stress with the excellent organization of the Vision on the future symposium. At first a highly interesting and valuable opening speech, which addressed both scientific theoretical- and business practical aspects.
Second the organizers of the Vision on the future symposium were able to collaborate with highly interesting companies to participate in the workshops. You could only choose two out of four workshops to attend, so I missed the workshop about Logistics @ Schiphol Group (however have done a Balance Score Card case about the Schiphol Group in the past) and Human Resource Management @ Kock.
Furthermore the workshops during events like a symposium are great opportunities to broaden your horizon and the challenge is to show an excellent performance in a different professional- or education field. Despite I don’t have a formal educational background in Computer Science and IT, both the background as a Mechnical Engineer and Business Administration (Business Model Innovation & Technical Innovation) helped to add real value to the discussions. In the second workshop I could see some parallels of underlying concepts of International Risk Management and Failure Mode and Effects Analysis which I knew from my Mechnical Engineering background.
In the traditional plenary session all the different topics of opening speech and workshops are connected, where students needed to share their experiences and knowledge from the particular workshop(s) they attended. After a final round of good discussions, the closing words of the Vision on the future symposium chairman and a drink, I could look back at a highly interesting day !!