Inventory Routing - A Strategic Management Accounting Perspective

This dissertation develops a strategic management accounting perspective of inventory routing. The thesis studies the drivers of cost efficiency gains by identifying the role of the underlying cost structure, demand, information sharing, forecasting accuracy, service levels, vehicle fleet, planning horizon and other strategic factors as well as the interaction effects among these factors with respect to performance outcomes. The task is to enhance the knowledge of the strategic situations that favor the implementation of inventory routing systems, understanding cause-and-effect relationships, linkages and gaining a holistic view of the value proposition of inventory routing. The thesis applies an exploratory case study design, which is based on normative quantitative empirical research using optimization, simulation and factor analysis. Data and results are drawn from a real world application to cash supply chains. The first research paper shows that performance gains require a common cost component and cannot be explained by simple linear or affine cost structures. Inventory management and distribution decisions become separable in the absence of a set-dependent cost structure, and neither economies of scope nor coordination problems are present in this case. The second research paper analyzes whether information sharing improves the overall forecasting accuracy. Analysis suggests that the potential for information sharing is limited to coordination of replenishments and that central information do not yield more accurate forecasts based on joint forecasting. The third research paper develops a novel formulation of the stochastic inventory routing model that accounts for minimal service levels and forecasting accuracy. The developed model allows studying the interaction of minimal service levels and forecasting accuracy with the underlying cost structure in inventory routing. Interestingly, results show that the factors minimal service level and forecasting accuracy are not statistically significant, and subsequently not relevant for the strategic decision problem to introduce inventory routing, or in other words, to effectively internalize inventory management and distribution decisions at the supplier. Consequently the main contribution of this thesis is the result that cost benefits of inventory routing are derived from the joint decision model that accounts for the underlying set-dependent cost structure rather than the level of information sharing. This result suggests that the value of information sharing of demand and inventory data is likely to be overstated in prior literature. In other words, cost benefits of inventory routing are primarily determined by the cost structure (i.e. level of fixed costs and transportation costs) rather than the level of information sharing, joint forecasting, forecasting accuracy or service levels.

Profitable Customer Management: A Study in Retail Banking

The increasing focus of relationship marketing and customer relationship management (CRM) studies on issues of customer profitability has led to the emergence of an area of research on profitable customer management. Nevertheless, there is a notable lack of empirical research examining the current practices of firms specifically with regard to the profitable management of customer relationships according to the approaches suggested in theory. This thesis fills this research gap by exploring profitable customer management in the retail banking sector. Several topics are covered, including marketing metrics and accountability; challenges in the implementation of profitable customer management approaches in practice; analytic versus heuristic (‘rule of thumb’) decision making; and the modification of costly customer behavior in order to increase customer profitability, customer lifetime value (CLV), and customer equity, i.e. the financial value of the customer base. The thesis critically reviews the concept of customer equity and proposes a Customer Equity Scorecard, providing a starting point for a constructive dialog between marketing and finance concerning the development of appropriate metrics to measure marketing outcomes. Since customer management and measurement issues go hand in hand, profitable customer management is contingent on both marketing management skills and financial measurement skills. A clear gap between marketing theory and practice regarding profitable customer management is also identified. The findings show that key customer management aspects that have been proposed within the literature on profitable customer management for many years, are not being actively applied by the banks included in the research. Instead, several areas of customer management decision making are found to be influenced by heuristics. This dilemma for marketing accountability is addressed by emphasizing that CLV and customer equity, which are aggregate metrics, only provide certain indications regarding the relative value of customers and the approximate value of the customer base (or groups of customers), respectively. The value created by marketing manifests itself in the effect of marketing actions on customer perceptions, behavior, and ultimately the components of CLV, namely revenues, costs, risk, and retention, as well as additional components of customer equity, such as customer acquisition. The thesis also points out that although costs are a crucial component of CLV, they have largely been neglected in prior CRM research. Cost-cutting has often been viewed negatively in customer-focused marketing literature on service quality and customer profitability, but the case studies in this thesis demonstrate that reduced costs do not necessarily have to lead to lower service quality, customer retention, and customer-related revenues. Consequently, this thesis provides an expanded foundation upon which marketers can stake their claim for accountability. By focusing on the range of drivers and all of the components of CLV and customer equity, marketing has the potential to provide specific evidence concerning how various activities have affected the drivers and components of CLV within different groups of customers, and the implications for customer equity on a customer base level.

Women, Management and Leadership - Naiset ja johtajuus : NASTA Women's Leadership Project Final Report

Leadership without the full participation of women not only excludes women individually and collectively, but is also a huge waste of talent, knowledge and expertise. And crucially, given the current state of society and the world, this aspect of gender inequality is likely to become even more important in the future. NASTA - Women’s Leadership: A Research and Education Development Project was established in 2005 as a national multi-university project mainly and generously funded by Finnish Ministry of Education. The project aims at producing new knowledge and increasing understanding about women’s leadership, as well as promoting women’s leadership through research, development of teaching, and public outreach. NASTA is a joint effort of three Finnish universities – Hanken School of Economics, University of Jyväskylä School of Business and Economics, and the Helsinki School of Economics (now part of Aalto University) – and has been coordinated by Hanken. This report presents research and activities conducted within and around the project. NASTA activities have been many and various. They have examined the position and experiences of women in relation to leadership, management, organisation and work more generally. They have sought new knowledge about gender and leadership, on women leaders’ values, attitudes and behaviour, as well as about values, attitudes and behaviour in relation to women’s leadership. NASTA activities have included teaching, student supervision, research theses, research projects, publishing, networking, seminars, meetings, an international conference, and knowledge transfer into other sectors of society. The first section of the book introduces NASTA joint projects, including web-based teaching material, a survey of gender staffing and teaching on gender in business schools, critical review of previous research literature, and new empirical research. The next section includes research articles on different aspects of gender, leadership and manage¬¬ment from more individual projects conducted by participating researchers and research groups linked to NASTA across the three universities. The final section includes short presentations of other research in progress. The appendix lists publications by NASTA members – journal articles, research reports, books, chapters, journal special issues, popular journal articles, magazine articles - and masters, licentiate and doctoral theses that have been produced. These matters of women, leadership and management are not simply academic concerns but urgent matters for practice, organisations, management, policy, and society more generally.

Esimiestaitojen tärkeys, hallinta ja kehitystarpeet

This study examines the leadership skills in municipal organisation. The study reflects the manager views on leadership skills required. The purpose of this study was to reflect the most important leadership skills currently and in the future as well as the control of these skills. The study also examines the importance of the change and development needs of the leadership skills. In addition, the effect of background variables on evaluation of leadership skills were also examined. The quantitative research method was used in the study. The material was collected with the structured questionnaire from 324 Kotka city managers. SPSS-program was used to analyse the study material. Factor analysis was used as the main method for analysis. In addition, mean and standard deviations were used to better reflect the study results. Based on the study results, the most important leadership skills currently and in the future are associated with internet skills, work control, problem solving and human resource management skills. Managers expected the importance of leadership skills to grow in the future. Main growth is associated with the software utilisation, language skills, communication skills as well as financial leadership skills. Strongest competence according to managers is associated with the internet skills. Managers also considered to control well the skills related to employee know-how and manager networking. In addition, significant development needs are required in leadership skills. Main improvement areas were discovered in software utilisation, work control, human resource management skills as well as skills requiring problem solving. It should be noted that the main improvement areas appeared in the leadership skills that were evaluated as most important apart from software utilisation. Position, municipal segments and sex were observed to explain most of the deviation in received responses.

Mediapolulla - Kasvatustieteellistä ja teknisen alan osaamista yhdistämässä : Opiskelijoiden yhteistyö ja oppiminen tieto- ja viestintätekniikkaprojektissa

The study concentrated on interdisciplinary teamwork of students in Helsinki University Department of Education and Helsinki University of Technology. Students worked in small interdisciplinary groups (n 12) to plan and teach in an information- and communication technology (ICT) club in elementary schools. The focus of the study was co-operation in the student groups and students learning experiences. Theoretical background of the study consists of theories of collaboration and socially shared cognition. Study was an qualitative case study and the data was collected with individual focus interviews and learning diaries. The data was categorised and the connections between categories were analysed with a table. Shared cognition appeared as a form of distribution of tasks and in the actual processes of shared expertise. The tasks were shared according to students expertise. Processes of shared expertise were joint knowledge building, integration of interests, awareness and exploitation of others expertise and allowing freedom for others to use their expertise. Additionally expression of ones own views and setting an example to others were one sided sharing of expertise. Students of technology were responsible of technical issues and the responsibility sphere of educational science students was more fragmented. For instance they concentrated in taking children s abilities into consideration. The sphere of shared cognition included also the need for tutoring and learning from others. Usually students did not directly learn from representative of other discipline, instead the learning for instance of social skills happened indirectly. Learning was fostered if learning was set as a goal and prevented if the differences in expertise were too minor. Sharing of cognition was prevented if co-operation was too problematic. Co-operation was usually successful. Good planning, good person chemistry and appreciation of expertise of others promoted success. Problems caused by different backgrounds were usually slight. Successful interaction was complementary and equal. Groups were usually able to circumvent problems in communication and use of justification in discussion promoted co-operation. When comparing the groups in the scope of the study, two were found to be notably opposed and the other groups located between these extreme cases, but the elements of success prevailed. Learning experiences concentrated on social skills, project management, school world and ICT. Essential was achieved field experience and observation of ones own capabilities. In organisation of student interdisciplinary co-operation is important to ensure sufficient differences in expertise and guide students to gain complementary interaction and appropriate setting of goals. Interdisciplinary field project prepared students to face the demands of