Category: Operations Management

Managing the seasonality of products

Posted by MIT Sloan Executive Education - 28 days ago

The seasonality of products is an issue that manufacturers, distributors, retailers, and consumers are well aware of. We all know back-to-school advertising, products, and sales hit stores in July. Soon after, we see Halloween items. And before Halloween even arrives, we start to see Christmas advertisements and promotions. Getting ahead of the season has become standard operating procedure.

But when is it too early to issue a seasonal product? Many craft beer aficionados are beginning to argue that the practice of "seasonal creep" has gone too far. Simply put, seasonal creep is when a beer specific to a season appears on store shelves way before the season actually hits. The best example is the category of pumpkin beers.

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It’s time to rethink wages

Posted by MIT Sloan Executive Education - 5 months and 15 days ago

For the last year or so, there’s been a significant amount of news coverage around the wages paid to low-income earners, such as those working at fast food outlets and in retail stores. There have been public protests, calls for boycotts, and legislation to raise the minimum wage in some states.

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The need for supply chain flexibility

Posted by MIT Sloan Executive Education - 6 months and 17 days ago

According to David Simchi-Levi, Professor of Engineering Systems at MIT Sloan, “a growing number of U.S. executives are moving some production operations back from overseas.” While there are a great number of factors driving that trend, one is the need for supply chain flexibility. Today’s global supply chain presents a significant amount of risk, mostly due to the combination of geographically diverse supply chains and Just-in-time (JIT) manufacturing that results in low inventory levels. 

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Clients and their perceptions can prevent successful diversification

Posted by MIT Sloan Executive Education - 7 months and 2 days ago

Why is it that some organizations can successfully diversify, while others cannot? Some businesses can increase their complexity by expanding into new markets, creating new products or services for new audiences and succeed, while others seek to do so, and fail.

Ezra Zuckerman, Professor of Technological Innovation, Entrepreneurship, and Strategic Management at MIT Sloan, claims that there are identity-based limits to diversification that have more to do with a client’s perception of the organization than the actual integrity of the services delivered by the organization. In other words, an organization can have superior talent, the best operations, and a delivery of new services or products that is top notch, but if somehow this new direction clashes with a client’s perception of the firm, they may lose the client. These factors should be closely examined prior to a company's diversification. 

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How to manage effectively in the face of risk

Posted by MIT Sloan Executive Education - 10 months and 24 days ago

With globalization comes increased risk and uncertainty in nations, environments, communities, and businesses. As growing complexity makes it more difficult to determine the source of risk in these complex systems, it also reveals the interdependent nature of risk within a greater ecosystem. New studies show the best way to manage an organization in the face of risk is to build resiliency—the ability to withstand, recover from, and maintain function through a crisis.  But in order to manage risk effectively, resiliency must be built into the entire interrelated system of an organization.

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How the digital marketplace is redefining customer relationships

Posted by MIT Sloan Executive Education - 1 year and 15 days ago

Many people today buy their household telecommunications services—house landlines, Internet access, and digital TV—in bundles. Yet go to the average telecommunications services provider’s website and you have to select which product you are inquiring about or need fixed. From an organization’s perspective, this makes complete sense. There’s a division for phone service, a division for Internet service, and a division for television. Specialists and technicians exist in each department to help you with whatever you need. But you get one bill each month, so why can’t the company recognize you as one customer with multiple products, instead of three separate customers?

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Yes, a robot may take your job

Posted by MIT Sloan Executive Education - 1 year and 1 month and 14 days ago

Smart machines are everywhere we go. They’re on the plant floor manufacturing our cars, and they are in our grocery stores scanning our purchases. In the case of the iPhone and Siri, they are even in our pockets. And that means that smart machines and robots will be taking more and more jobs. As Erik Brynjolfsson, Professor of Information Technology at MIT Sloan School of Management said on CBS’ 60 Minutes, “There are lots of examples of routine, middle-skilled jobs that are being eliminated the fastest.

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The design structure matrix: helping to see complexity in systems

Posted by MIT Sloan Executive Education - 1 year and 1 month and 26 days ago

Many global business organizations develop and manage complex systems with multiple interacting parts. In an effort to become more effective, efficient, and profitable in the face of growing complexity, businesses seek process innovations that help them streamline their systems. Perhaps that’s why the design structure matrix (DSM), originally developed in the 1970s to model design problems and used at MIT since the 1990s to research system complexity, has become a powerful tool for developing products and systems.

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