Business analytics ,preparazione per esame orale, Dispense di Management Analysis And Systems

Scarica Business analytics ,preparazione per esame orale e più Dispense in PDF di Management Analysis And Systems solo su Docsity! BUSINESS ANALYTICS 1. 2. Location matter? (Yes, the location can significantly impact the success and growth of a business or startup. A favorable location can provide businesses with proximity to target markets, , access to specialized talent, networking opportunities, and infrastructure that facilitates operations. It can also enhance the visibility of the business, attracting customers, investors. Driver of Globalization at work : (Globalization at work refers to the increased interconnectedness and integration of economies, societies, and cultures worldwide. ● ICT (Information and Communication Technology, has driven globalization at work by facilitating instant communication,e-commerce, remote work. ● internationalization of firms (When firms expand their operations in foreign countries, it leads to increased interconnectedness of economies.) ● trade liberalization (Trade liberalization reduces trade barriers,facilitates free movement . This fosters business expansion, job creation, and economic integration.) Effects: ● People and business from everywhere are empowered and can access to this world platform. ● Globalization smoothens the cultural and social differences (space-less digital world)( by facilitating the exchange of ideas, knowledge, and cultural practices among different societies, fostering cross-cultural understanding and integration.) Implications for business of globalization : • every territory has the potential to become a global player (Expands Global market potential) • work can be performed far from the employee location (Enable Remote work) • cities and urban locations become less important(Changing importance of cities) • firms from everywhere can participate in the global market, but they are also exposed to competition from everywhere( Increased competition) Recent events that impact on globalization • COVID-19 pandemic: (The COVID-19 pandemic disrupted global supply chains, increased remote work, accelerated digital transformation, caused a decline in international trade.) there were also Crisis of some sectors(Travel and Tourism, Hospitality and Entertainment. • Ukraine war: ● Re-shaping of trade and political relations (The conflict has disrupted trade between Ukraine and its neighboring countries, particularly Russia.and Russia between other countries because of the sanctions. • China-USA relation ● Economic decoupling (Economic decoupling means reducing dependence on other countries for trade, investments,in order to increase economic indipendene.) ● Re-shoring (which refers to bringing back manufacturing or business operations from foreign countries to its home country. The goal is to reduce reliance and protect national interests.) (Clusters are formed when companies in related industries, along with supporting institutions such as universities, research centers, and government agencies, locate in close proximity to one another. This physical proximity allows for increased collaboration, knowledge sharing, and innovation within the cluster.) (The Metropolitan Century represents the rise of urbanization and the increasing significance of metropolitan areas in the 21st century. These areas are key drivers of economic growth, innovation, and cultural diversity, while also posing sustainability challenges.) REGIONS (TL3 regions, also known as Territorial Level 3 regions, refer to regional administrative divisions within a country. The economic performance of TL3 regions can vary widely depending on various factors, including the country's overall economic conditions, regional policies, infrastructure development, industrial composition, and access to markets.) (Regional innovation refers to the capacity of a region to generate, adopt, and implement new ideas, technologies, and processes that drive economic growth and competitiveness.) (Regional entrepreneurship involves creating a supportive ecosystem for entrepreneurs in a specific geographic area, including access to resources, networking opportunities, and favorable policies. It leverages local market opportunities, encourages collaboration, and contributes to job creation and economic development.) Discussion •Imagine you want to found a startup: what factors would you consider when deciding the location of your activities? 1. Market proximity:,as being close can facilitate market research, and faster response to market needs. 2. Talent availability, considering factors like universities, institutions, to ensure access to qualified employees. 3. Infrastructure: Consider the availability of robust infrastructure,facilitate the operations.. 5. Cost and funding: Evaluate the cost of living, office spaces, taxes, and other expenses. 6. Competition and industry cluster: Consider the presence of similar businesses or industry clusters in the area, as it can facilitate knowledge sharing. 7. Quality of life: Evaluate the overall quality of life factors such as healthcare, education. 8. Risk factors : Assess any specific risks associated with the location, such as political instability, natural disasters, or economic volatility, that may impact the stability and growth of your startup. 3. Analysis of markets: location Why economic activities are concentrated in space? (Economic activities are concentrated in space due to several factors, including agglomeration economies, localization economies, urbanization economies, Jacobs externalities, and local demand with specialized institutions. These factors create a clustering effect that leads to increased productivity, innovation, and competitiveness in a specific geographic area.) the factors are: • Agglomeration economies: economies where firms benefit from being located close to one or more firms. ● Localization economies (specialization) (Alfred Marshall, 1920):, are industry-specific advantages that benefit all firms within a particular sector. ● Drivers: ● Natural resources ● labour market pooling; ● the creation of specialized suppliers; ● knowledge spillovers Incremental innovation: continuous improvements to a radical innovation(LOW) Radical innovation  are rare and unpredictable  require large expenditures on R&D for a highly uncertain return on investment Incremental innovation  can produce a range of important benefits.  Although the impact of radical innovation in markets could be huge, the cumulative impact of incremental innovation is just as great.  Also, the implementation of many radical innovation (e.g. the airplane) requires many incremental innovation. Measuring innovation Problems • Two main problems in measurements 1. Commensurability: we have to find what can and what cannot be measured in innovation. 2. Novelty: What is “new”? 1. Does an innovation have to never been used in the world before, or does it only need to be new to a firm? 2. Does an innovation have to incorporate a radical novel idea, or only an incremental change? 3. What kinds of novelty count as an innovation? One of the most common framework is the knowledge production function (KPF)(1): 5. INNOVATION Measuring innovation Advantages • Long period • Detailed sub-classification • Good harmonization across countries DISADVANTAGES - Input only Measuring innovation Patents • A patent is a public contract between an inventor and a government that grants time-limited monopoly rights to the applicant for the use of the invention. • Contract:  The inventor reveals detailed information on the invention  The State guarantees limited (in time and space) protection against others using that invention ADV: It has potencial for commercial success • There are many information attached (who invented it, where, which technology embodied, etc) • Long time series (since 18th century) • The data are freely available • The patent application (and grant) is very close to the date of invention/innovation DIS: It is closer to invention than to innovation • Economic value may vary a lot across patents • Some invention are not patented • Some invention are not patentable • Patents are used as strategic behaviour against competitors Other IP indicators Trademarks • A trademark is a unique sign that distinguishes the goods or services of one company from those of others. It can be a word, logo, symbol, shape, color, sound. • A trademark registration will confer an exclusive right to the use of the registered mark . • It can last 10 years (if fee continues to be paid) . Is trademark a good indicator of innovation? Trademarks are not a perfect indicator of innovation. They mainly show branding and commercial aspects, not technological advancements. To understand innovation better, it's important to look at other factors like patents, research, and market performance. Using multiple indicators gives a more complete picture of innovation. Not all innovative firms use trademarks Firms using trademarks are not necessarily innovative firms ADV: It is very much linked to a commercial use • There are many information attached (who invented it, where, which “class” embodied) • Long time series • The data are freely available • It covers “service” innovation • They are also used by micro and small firms. DIS: The content of innovation may vary a lot some may be ignificant and some not• The economic value may vary a lot How can we use IP analytics to inform business decisions? IP analytics provides valuable data and insights that inform business decisions across various aspects, including competitive intelligence, innovation opportunities, portfolio management, risk assessment, market trends, and licensing/partnership strategies. By leveraging IP analytics, businesses can make more informed, data-driven decisions, optimize their IP assets, and gain a competitive edge in the market. 6. Firm boundaries: the role of external sources of knowledge Open innovation fosters collaboration and knowledge sharing with external partners, whereas closed innovation emphasizes internal control and secrecy. Closed innovation: Closed innovation means a company keeps tight control over every step of its operations, from ideas to marketing. They invest heavily in internal R&D and recruit top talent to stay ahead of competitors. This allows them to generate the best ideas, be the first to market, and make big profits. They protect their innovations with intellectual property. The profits are then reinvested in more R&D to create more innovation and gain market power. What are the factors driving the change? (The factors driving the change towards a more open innovation approach can be categorized as erosion factors. Here are five key factors that contribute to this shift: -Skilled workforce mobility: The increasing availability and mobility of skilled workers allow for the transfer of knowledge and ideas across companies, fostering innovation. -Venture capital opportunities: The growth of the venture capital market provides funding avenues for startups and small firms, enabling them to pursue innovative ideas and compete with larger companies. -External options for new ideas: Seeking ideas from customers, suppliers, and research institutions expands the pool of innovative concepts, driving open innovation. -Internet and social media platforms: The internet and social media have revolutionized information sharing and collaboration, creating virtual communities for idea exchange, fostering open innovation practices.) • Open innovation is • (Open innovation is a collaborative approach where knowledge flows between organizations, using both financial and non-financial methods. It involves three types: bringing in external knowledge, sharing internal knowledge externally, and collaborative innovation. ) • Three types of OI: Outside-In (inbound), Inside-Out (outbound), and Coupled.  It also includes non-pecuniary flows of knowledge (i.e. sourcing and revealing), along with pecuniary mechanisms (i.e. acquiring and selling) How Prevalent Is Open Innovation?CHAT GPT Other industries are currently transitioning from closed to open innovation, due to critical innovation emerged from unlikely sources: • High-tech: copiers, computers, disk drives, semiconductors, telecommunications equipment, pharmaceuticals, biotechnology and even military weapons and communications systems • Medium and low-tech: automotive, health care, banking, insurance and consumer packaged goods 7. Firm boundaries: the role of external sources of knowledge Open innovation: leveraging external sources of innovation—( Collaboration with suppliers, customers, competitors, universities - Seeking for specific useful knowledge e.g. consultant companies) (Open innovation involves leveraging external sources of innovation, such as collaborating with customers, suppliers, and research institutions. It allows companies to access a broader range of ideas, expertise, and resources, accelerating innovation cycles, mitigating risks, expanding market reach, and fostering agility and adaptability. Additionally, open innovation promotes ecosystem development and networking, creating long-term relationships and a thriving innovation ecosystem.) Partners for collaboration • For-profit firms :  Incumbent firms, startups  Operating in the same industry/sector  Operating outside the industry/sector  Competitors  Consultants • Institutional  Universities (private, public…)  Government-funded research  Private not-for-profit • Universities  They mostly do basic research  Many universities (and government) push for research that has practical applications  → Technology transfer offices (TTOs) in universities are means to support the commercialization of the university research (e.g. patents, spinoff/startups) e.g. Glass to Power •Government-funded research  Directly investing in research, or supporting (e.g. subsides, grants) firms and institutions . • Private not-for-profit  Research institute, foundations, hospitals, professional societies, trade The Eclectic Paradigm is based on three key factors: • Ownership (O) advantages of firms:includes  Property rights and intangible assets  Advantages of common governance of assets  Institutional assets. • Location (L) advantages of locations (home and host countries):include  Natural and created resources  Infrastructures  Legal and regulatory system • Internalization (I) advantages: These advantages involve avoiding problems like opportunistic behavior, information assimetry, ensuring quality control of input, technologies, future markets, and market opportunities An indicator of international actitivies: FDI • Foreign direct investment (FDI): is a Cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy → Ownership of 10 percent or more of the voting power in an enterprise in one economy by an investor in another economy is evidence of such a relationship  Flows : the flows of capital in a given period (e.g. a year)  Inflows: the investment made by foreign based investors  Outflows: the investment made by national investors abroad Stocks: the level of investment at a given point (e.g. end of a year)  Inwards: the value of foreign investors’ equity  Outwards: the value of national investment abroad • FDI include: greenfield projects, M&A, joint ventures(different modes or strategies through which foreign direct investment (FDI) can be conducted) (Greenfield projects: Establishing new business operations from scratch in a foreign country. Mergers and acquisitions (M&A): Purchasing or combining existing companies in the host country. Joint ventures: Partnerships between two or more companies to establish a new business entity in a foreign country.) What FDI data can tell 1. What is the global trend in FDI?  Increasing vs decreasing globally?  Different role of developed vs developing countries? 2. What are the most relevant countries in FDI flows?  By home country?  By host country? 3. Which sector is relevant?  More manufacturing or services?  Natural resources or IT? FDI trends follows business cycles - COVID-19 severely affected FDI trends worldwide - War in Ukraine ( with many countries experiencing a decline in foreign investments due to economic uncertainty and disruptions . The ongoing war in Ukraine has also affected FDI, as geopolitical tensions and instability can deter investors from entering or expanding operations in the region.) Difference between level and dyad in FDI predictors: se kam msu kyt  Levels: The level refers to the absolute value of a factor and its impact on FDI. It considers the characteristics of the destination location and the parent firms.  Dyad: (The dyad focuses on the importance relative to the source of FDI. It considers the fit between the parent firm's home country and the destination location. Distance between home country and host country  Geographical :such as  Transportation costs and coordination cost increase with higher geographical distance  Geographical distance between the home country and the host country impacts FDI due to logistical factors, transportation costs, and market proximity. Shorter distances facilitate business operations, trade, and lower transportation costs.) Cultural / institutional: Cultural and institutional distance refers to differences in culture, business practices, legal systems, and regulations between the home and host countries. These differences can create barriers for foreign investors, making it challenging to understand and adapt to the local business environment.) 9. Internationalization strategy: location choices Types of FDI • Horizontal FDI  Investment in the same sector in a different country (e.g. Pirelli opening a new factory in Brazil, or acquiring a tyre company in Romania) • Vertical FDI (investim ne azienden qe blen ose shet produkte nga azienda qe investon)  It includes investments in a firm which supplies to or buy products from the investing company.  Backward vertical FDI: suppliers  Forward vertical FDI: buyers • Conglomerate  An investment made in a different unrelated industry (e.g. LVMH – originally the fashion house Louis Vuitton – investing in a magazine in Argentina) The drivers of different types of FDI • FDI is driven by:  Markets  size of the market, growth potentials, consumers’ preferences and tastes  Assets  access to new, complementary resources and capabilities to improve and/or expand existing technologies, managerial practices or employees’ skills  Natural resources  depends on the local natural resources as main attraction (mostly in emerging countries)  Efficiency seeking  access to lower cost of labour, to enhance productivity • Other factors:  institutional quality  Political stability , low levels of corruption and bureaucracy, rule of law and private property rights, easy access to finance  macroeconomic stability:  Low inflation rates, and low volatility of exchange rates Emerging countries and their MNEs SE KAM MSU (Emerging countries have MNEs that are expanding globally, driven by market opportunities, resources, and cost advantages. They face challenges include limited brand recognition, lack of international experience, competition from established MNEs, navigating complex regulatory environments, managing cultural differences, and accessing financing and technology.) Location home factors:  Abundance of natural resources, specialization in natural resources endowments  Low technological capabilities  Large potential markets, low purchasing power of consumers  Low institutional quality Firms:  lack of ownership advantages and international experience Drivers of FDI:  Seeking what it is missing at home or costly to develop internally (technology, brands, managerial skills, qualified labour)  Mainly through M&A ( Innovation-related FDI • Innovative activities:  basic/applied R&D, development stage, testing & design Why do firms internationalize their innovative activities? Firms internationalize their innovative activities to expand their market reach, access new knowledge and resources, and gain a competitive advantage in global markets. How far are MNEs willing to go with their R&D in order to be close to a knowledge cluster? pra pytja eshte going far r to search for different factors than home OR Staying close to minimize differences. (MNEs are often willing to go to great lengths to be close to a knowledge cluster for their research and development (R&D) activities. Being in proximity to a knowledge cluster offers numerous advantages, such as access to specialized talent, collaboration opportunities with other firms and research institutions, knowledge spillovers, and a vibrant innovation ecosystem.) EVEN THOUGH THE DISTANCE MAY BE AN ISSUE. • Main issues related to the role of distance:  Geographical vs institutional (national culture, language and religion, legal system, regulatory and trade regimes, travel and living conditions)  Factors vary according to the type of transnational activities - Distance (both cultural and, even more, institutional) are particularly important for knowledge-seeking laboratories