Summer session explores opportunities, risks of digital disruption

Nearly three-quarters of a century into its existence, Safelite Group has reason to act like a market leader – it is one.

The ubiquitous Columbus-based glass repair and replacement services company has a presence in all 50 states, with the capability to serve about 97 percent of U.S. drivers. Even 70 years after its founding, it’s in growth and acquisition mode.

That doesn’t mean, however, that Safelite isn’t keeping an eye out for disruptors waiting in the wings to turn the business on its ear.

“We’re looking over our shoulder,” said Bruce Millard, the company’s vice president of digital and customer innovation. “We’re asking, ‘Who has the velocity to potentially cause us problems?’”

Millard was one of four speakers at the second of two summer sessions focused on top business challenges and co-hosted by the Center for Operational Excellence along with three other centers housed at Fisher College of Business: The Center for Innovation and Entrepreneurship, the National Center for the Middle Market and The Risk Institute. After surveying the state of the “talent war” in July, the centers brought together industry executives and academic experts to offer a mix of exciting developments, sobering realities and paths forward in the rapidly shifting world of data analytics and digital disruption.

Cisco’s Jeremy Aston

In his kickoff keynote, Jeremy Aston of tech communication giant Cisco shared how much — and how little — has changed in how companies are viewing and preparing for the threat of digital disruption. Cisco’s Global Center for Digital Business Transformation in a 2015 survey of nearly 1,000 executives found 15 percent said digital disruption was already occurring in their respective industries. At the same time, a scant one in 250 of those surveyed said digital trends would have a transformative impact on their industry. Fast-forward to a new survey round this year and the shift is staggering: Half of those surveyed said disruption was ongoing, while nearly one in three foresaw a transformative effect.

“Today, we’re under pressure to transform and perform,” said Aston, senior director of the Go to Market and Offer Monetization Office at Cisco.

One statistic that changed little in the two-year span hints at a gap Cisco’s research has found between companies’ awareness and action. In 2015, a quarter of those surveyed said they were “actively responding” to digital disruption. That number rose to just 31 percent this year.

“That is a dangerous game to play,” Aston said.

Drive Capital’s Mark Kvamme

While the media/entertainment trades and Cisco’s own technology products and services niche are easily most vulnerable to disruption, few – if any – parts of the economy are immune to companies born in today’s digital-first world. Speaker Mark Kvamme, a former Ohio economic development official and partner at venture capital investment firm Drive Capital, shared a dynamic portrait of “born digital” companies in Drive’s investment portfolio. One of them, Columbus-based startup CrossChx, has launched an artificial intelligence-enabled tool for the health-care industry that synthesizes and automates high-volume, repetitive tasks — prior authorizations, appointment reminders — outside the scope of patient care. On the analytics front, Columbus-based FactGem — run by Megan Kvamme — is helping companies translate hordes of data from far-flung sources into actionable intelligence.

All these innovations, Kvamme said, point to an unavoidable truth: “The amount of change we’re going to see in the next five to 10 years is going to spin everybody’s heads.”

A world of opportunity, however, also means a world of risk. Professor Dennis Hirsch, who runs the Program on Data and Governance at Ohio State’s Moritz College of Law, closed out the session with a look at the tricky terrain of data analytics in technology, which already has destroyed some players (student data repository InBloom) and led to serious brand damage for others (Uber).

“Big data is a crystal ball,” Hirsch said, “and that means it can be used for good — and for bad.”

As companies move forward, Hirsch said, it’ll be incumbent upon them to establish processes and guiding values that protect customers and treat them fairly. Technology and its innovative uses for data, in fact, are outrunning the law itself.

“The law hasn’t caught up, and to some extent it never will,” Hirsch said. “We need to be asking, ‘What does it mean to be responsible beyond just compliance?’”

A key tool companies can use as they make decisions on these issues, and the broader world of digital transformation, is a decidedly non-technological notion at heart: process. From a legal and ethical perspective, that means establishing them on the front end to mitigate the risks of leveraging big data. From a business agility standpoint, Aston of Cisco said in opening the day, that means having a perspective that extends beyond the flashy innovation itself.

“We have to make thoughtful decisions,” Aston said, “and we can’t just be focused on technological outcomes. What’s the business outcome you need to drive?”

Global sourcing projects offer chance to connect with Fisher students

One of the best ways to unlock the value of your company’s membership in the Center for Operational Excellence is engaging with students at Fisher College of Business.

Prof. John Gray

Once again, COE is offering member companies the opportunity to partner with groups of students on projects designed to give them real-world experience – and give you real value at no cost. COE Associate Director John Gray is seeking interested companies to host a group project for his second-year MBA and junior/senior undergraduate “Strategic Global Sourcing” classes for autumn semester 2017.

To indicate your company’s interest, just fill out a quick survey by Tuesday, Aug. 8. If your project is selected, you’ll work with Prof. Gray in August to create a more detailed project scope, which will be presented to students at the start of the academic year.

In these projects, students take what they’re learning in class – make-vs.-buy decisions, location decisions, supplier management, and more – and apply it to a real-world problem-solving need at your company. By opening up your doors, providing data and committing to roughly one call per week, your company receives up to three hours of work per week per MBA student along with a written deliverable, which can include analyses conducted through the project.

Check out the “Student Engagement” section of COE’s website for more specifics on recommended project scope and more.

Many COE member companies take advantage of project opportunities as a way to network with students and build relationships that ultimately could open doors to internships and/or job opportunities. Projects also offer the chance for concrete ROI – the “I” being solely your company’s time and commitment.

Looking to engage more with the global sourcing community? Join Prof. Gray’s LinkedIn group. If you have questions or would like more details, contact him at gray.402@osu.edu.

Fisher Prof. Craig wins ‘best paper’ honor for retail industry research

A professor in the academic department closely affiliated with the Center for Operational Excellence is part of a team that took home a top research award for a recent paper on the retail industry.

nate craig fisher
Prof. Nathan Craig

Fisher Assistant Prof. Nathan Craig traveled to Washington, D.C., last month to accept the Ralph Gomory Best Industry Studies Paper Award, given annually by the Industry Studies Association. Craig and co-authors Nicole DeHoratius (University of Chicago) and Ananth Raman (Harvard Business School) clinched the honor for their paper “The Impact of Supplier Inventory Service Level on Retailer Demand,” published last year in Manufacturing and Service Operations Management.

The journal where Craig’s work was published was one of seven in a pool of contenders for the prize, which was judged by top researchers at universities in North America and Europe.

The winning paper breaks new ground in the field of retail research, which largely has examined business-to-consumer relationships in the past. Craig and his co-authors moved upstream in the supply chain to focus exclusively on the relationship between supplier service levels and retailer demand. By conducting a field experiment at Hugo Boss, Craig and his team were able to quantify the impact of a supplier boosting its fill rate, or the percentage of a customer order satisfied by a shipment. Specifically, an increase of only 1% in supplier fill rate lead to an 11% increase in retailer demand.

What does this mean for suppliers to retailers? Even the best ones, Craig and his team found, can fuel substantial increases in retailer demand by working toward incremental service-level gains. And those who ignore this link are missing out on a prime opportunity to boost profit and grow market share.

Check out the Management Sciences research portal for more on the latest work from Fisher’s top-ranked operations faculty.

COE Summit 2017: In Pictures

The Center for Operational Excellence launched its first-ever Leading Through Excellence summit in 2013 with a crowd of 200 process excellence leaders – and a vision for bringing together teams from a variety of companies to dive into the latest insights on leadership development and problem solving.

Just this month, COE concluded its fifth-annual summit, smashing records with a sold-out event that brought more than 400 change agents from more than 50 companies to Columbus. Here’s a look back at the event in pictures from photographer Jodi Miller:

Nearly three-dozen breakout sessions, workshops and keynotes take place at the Fawcett Center over Leading Through Excellence‘s three-day span, but hundreds of attendees also head off-site as well. COE member Engineered Profiles, led by President Mike Davis, hosted one of several tours during the summit, offering attendees an inside look at how the manufacturer sustains leader standard work in the plant and office sides of the business.

COE featured a leadership icon in sports – Buckeyes Football Coach Urban Meyer – as one of its keynote speakers. Meyer encouraged the crowd to “empower your people, give them ownership,” outlining how his trademark 10-80-10 philosophy allows him to leverage the talents of his elite players to build excellence throughout the team.

How can the A3 problem-solving structure be leveraged to involve all members of your team and generate discussion? Cal Poly Prof. Eric Olsen took 50 Leading Through Excellence attendees through an interactive workshop exploring lean facilitation methods that can be adopted at any organization.

Keynote speaker Donald Sull, a senior lecturer at the Massachusetts Institute of Technology, brought key insights from his book Simple Rules: How to Thrive in a Complex World. Sull and co-author Kathleen Eisenhardt set out to see how the best companies balance the need for standardization and efficiency with creativity and innovation. Sull offered that “simple solutions aren’t always better than complex ones, but just because it’s complex doesn’t mean it’s better.”

Fisher College of Business students are a vital element of Leading Through Excellence, where they volunteer on tours and introduce speakers and showcase some of their own work. Here, students share takeaways from Six Sigma projects they completed at non-profit and for-profit organizations in the Columbus area.

Dozens of teams from companies across the country – including this group from COE member and summit sponsor Huntington Bank, pictured here with Executive Director Peg Pennington (far left) – use the summit to hit “pause” on their schedules at the office and search for new insights they can use upon their return.

Summit breakout sessions are a mix of insights from Ohio State researchers and presentations from leaders at a wide variety of companies. Here, American Woodmark Corp. CEO Cary Dunston opens up on his journey as a leader and the crucial role of emotional intelligence.

 How can the art of storytelling be used in business to make a case for change? Aditi Patil (pictured, top right image) and Tony West of ThedaCare in their full-day workshop guided attendees on how to blend “hand,” “head” and “heart” to tell impactful stories as leaders.

Fisher Prof. and Associate Dean Elliot Bendoly, one of several faculty researchers featured at the summit, shared results from recent research he’s conducted on how cutting cycle time in different stages of research and development can help – or harm – market performance.

Businesses can’t ignore the digital revolution and have to decide “if you’re going to be the taxi cab or Uber,” keynote and Mindset Digital CEO Debra Jasper says in her presentation. 

Summit closing keynote Chris Yeh, (Buckeye fan and) co-author of The Alliance: Managing Talent in the Networked Age, argued that companies today need to view their employees less as a family and more as a team, empowered to reach outside to their extended networks to help solve tough challenges. “People are your differentiator,” Yeh said.

For a look at all summit photos, head to our Flickr page.

Want to join us in 2018? We’re back April 10-12 with featured keynote and The Power of Habit author Charles Duhigg.

Fisher Prof. Chandrasekaran earns ’40 Under 40’ honor

A publication covering the country’s graduate business school education scene has named one of Fisher College of Business’ Management Sciences professors among its ‘Best 40 Under 40.’

aravind chandrasekaranAravind Chandrasekaran, associate professor of operations at Fisher and an associate director for the Center for Operational Excellence, was unveiled as part of Poets & Quants’ 2017 class this weekend. The slate of “academia’s most impactful young professors” emerged from a pool of 421 nominations for 118 professors, a record for the six-year-old annual listing. Poets & Quants said it factors in nominations along with research quality, visibility in scholarly publications and popular media, and professors’ ability to motivate, inspire and translate difficult concepts.

Prof. Chandrasekaran has earned plaudits for his teaching and research. A nominating administrator at Fisher noted he could possibly the youngest person in the world to publish a paper in each of the four operations management journals considered the best in the field. Prof. Chandrasekaran at Fisher won teaching awards for his work in the MBA program in 2016 and 2012 along with the Pace Setter Award for Teaching Excellence in 2013.

Check out Prof. Chandrasekaran’s full profile on the Poets & Quants website or take a look at his research and teaching on Fisher’s website.

‘On Demand’ event Feb. 24 looks at supply chain impact of shifting consumer trends

prime now
Courtesy Amazon.com

With fourth-quarter and year-end financials for online retail juggernaut Amazon.com set to be released Feb. 2, industry watchers were abuzz with a statistic from digital commerce watcher Slice Intelligence: More than half of all 2016 growth in e-commerce came from Amazon alone.

This dominance is the latest sign that Amazon is growing as an industry disruptor, shaking brick and mortar retail to its core and reframing what it means to be competitive – and to win. Amazon’s most headline-grabbing move of late – Prime Now one-hour delivery – demonstrates that what’s propelling the company along is a relentless push to satisfy customer demand with lightning speed and unprecedented convenience.

Indeed, a shift toward instant-gratification customer demand is transforming the supply chain as we know it – and for a variety of industries. In the space of several years, Uber has turned the personal transportation trade on its ear and become a model of disruption, leading the Wall Street Journal in 2015 to state “There’s an Uber for Everything Now.” In the traditional world of goods production and fulfillment, consumer product giants such as Procter & Gamble Co. are undertaking vast strategic overhauls of their distribution models.

These changes roiling in the operations, logistics and supply chain management worlds pose huge challenges to companies just as they present opportunities. The Center for Operational Excellence has teamed up with the Fisher College of Business Operations and Logistics Management Association for a look at this trend through a half-day Supply Chain Symposium event called “On Demand,” set for Friday, Feb. 24, from noon to 3:30 p.m. At this event, attendees will have the opportunity to hear from leaders at companies including Nestle USA, DHL and Amazon about how they’re working to keep pace with demand and stay competitive.

adrian kumarThe first speaker at the event is Adrian Kumar (pictured, right), VP of Solutions Design, North America for DHL. Kumar leads a team of 50 engineers and supply chain professionals to drive growth and continuous improvement across the US and Canada. He’ll be discussing how changing consumer trends are changing the traditional fulfillment model along with the economics behind the model, crowd-sourced delivery. Kumar also will highlight the shift to regional and local fulfillment centers and the challenges in addressing short supply chain lead times.

michael coburnThe keynote speaker at the event is Michael Coburn (pictured, right), head of customer-facing supply chain for Nestle USA. Coburn, a nearly 30-year Nestle veteran, will introduce the concept of short-shelf-life products and their impact on products and customers. By presenting Nestle case studies, he’ll also illustrate their challenges and complexities along with the evolution of the short-lead-time supply chain space.

The event, open to COE members and Fisher graduate students, will wrap up with a discussion panel where Kumar of DHL will join Rob Precord, project manager, supplier-facing supply chain at Nestle and Matthew Fein, an operations manager at Amazon in Columbus.

Registration is open now for this event, which will take place on Fisher’s campus.

First breakout sessions revealed as summit discount deadline approaches

Planning to attend the Center for Operational Excellence’s Leading Through Excellence summit in April? Less than two weeks remain to get the best available pricing on the three-day event.

summit-banner-resized-smallAny registrations before Jan. 1, 2017, automatically will receive 10% off the total price. Group registrations of five or more receive an additional 5% off, a discount in effect the duration of the summit sign-up period. The automatic early bird discount for individuals and groups of up to four drops to 5% at the beginning of the new year.

Leading Through Excellence, COE’s signature event, will take place April 11-13 and feature a wide variety of workshops, tours, breakout sessions and keynotes designed to help attendees sharpen their problem-solving and leadership skills. This year, we’re taking attendees to the Cleveland Clinic, exploring the power of business storytelling, and hosting sessions from leaders at companies including IBM, Bose, FedEx and more. Keynote speakers include communication expert Debra Jasper, CEO of Columbus-based Mindset Digital, and Chris Yeh, co-author of the bestseller The Alliance: Managing Talent in the Networked Age.

Details on all 20 breakout sessions will be posted by the end of January, but the first several are already up for review. They include:

cary dunston
C. Dunston

Emotional Intelligence: Becoming a Leader Who Cares, hosted by American Woodmark CEO Cary Dunston. In this session, Dunston will explores why leaders with the best intentions often make choices that limit their ability to be effective. The root cause, he proposes, is a lack of “emotional intelligence,” which can steer leaders to become emboldened by purpose and aligned with their core values.

The Power of Lean Habits, hosted by Eric Olsen, a professor at California Polytechnic State University. Drawing from Charles Duhigg’s bestseller The Power of Habit, Olsen in this session explores how companies can leverage the key components of the habit loop – cue, routine, reward, craving – to identify the lean and non-lean habits at work in their organizations.

Building the Fit Organization, hosted by Dan Markovitz, Shingo Prize-winning author. Markovitz wrote his book of the same name after realizing too many companies in their pursuit of operational excellence were trying to mimic “the Toyota way” without translating the core concepts of lean into a language that resonates with their employees and in their unique corporate culture. This session offers the keys of the Toyota Production System in jargon-free terms.

The clock’s ticking. Read up on other breakout sessions or head to the summit website to explore the rest of the event and register! Fees start at $695 for employees of COE member companies, $975 for non-members.

Is faster always better in R&D? Study says it’s complicated

Getting to the market before a competitor can mean the difference between smashing success and crushing defeat. This has prompted many companies to look critically at their product development processes in hopes of finding new ways to slash time.

bendoly, elliot
Elliot Bendoly

So is faster better? New research this year from Fisher College of Business Associate Dean Elliot Bendoly shows it’s not that simple.

Bendoly’s research, co-authored by Rao Chao of the University of Virginia and published this year in Production and Operations Management, took the novel step of scrutinizing the product development process at eight distinct stages – spanning the “fuzzy front end” to market entry – to find out what happens when each one is sped up.

They found evidence that shortening two of the eight stages – beta/market testing and technical implementation – was linked to market value gains, though only to a certain point. How aggressively companies innovated and how much time they cut were key factors of influence. The research, which you can read about in full on the Management Sciences department website, might break new ground in how we view the product development process.

Fisher’s Management Sciences department, where COE’s associate directors reside, is a powerhouse in generating the latest research insights the managers’ most critical challenges. Check out these other research highlights, published in recent months:

Bad behavior damages trust in buyer-supplier relationships – Prof. James Hill

Understanding the three stages of business relationships – Dept. Chair Kenneth Boyer

Finding an easier way to roll out electronic medical records in healthcare – Prof. Aravind Chandrasekaran

Managing quality in outsourced production – Prof. John Gray

Event preview: Keys to collaboration in any industry

As a researcher, Prof. Aravind Chandrasekaran doesn’t hang his hat in one particular industry.

In the 12 years he’s been contributing to our knowledge on issues such as innovation, knowledge creation and health-care delivery, he’s walked the floor in manufacturing plants, chased high-tech electronics as they move through the R&D pipeline, and scrutinized discharge instructions for kidney transplant recipients.

At the heart of his research is the question of handoffs: How can we move information more efficiently? How can we bring products to market more rapidly? How can we discharge patients and ensure they won’t be readmitted days later?

Prof. Chandrasekaran is bringing key insights from his research across this variety of industries to the Center for Operational Excellence’s Dec. 2 seminar, where managers can learn how they can collaborate across departments – even across their supply chains – and avoid common roadblocks such as employee burnout, intellectual property leaks, and scope creep. His 10:30 a.m. presentation is followed by a 1 p.m. keynote from Pete Buca, a top executive at manufacturer Parker Hannifin who’s giving an inside look at the company’s remarkable collaboration with Cleveland Clinic.

COE spoke to Prof. Chandrasekaran about his research and what attendees can expect at his Dec. 2 keynote.

COE: This summer, you led a three-part “Innovation Summer” series for COE. How does your upcoming keynote build on that?

AC: We focused this summer specifically on product and process innovation by looking at companies such as 3M and Johnson & Johnson. This keynote is meant for the R&D folks that attended this summer but a much broader audience, as well. I’ll be sharing keys to the “perfect handoff” by looking at examples in manufacturing, health care and IT services, not just R&D. There’s not a single COE member that wouldn’t benefit from it.

COE: Let’s talk about health care, specifically what non-health care companies can learn from your extensive research in that field.

AC: A lot of discussion in recent years has centered on what health care can learn from other industries, particularly manufacturing. I think the reverse is true, too: In health care, you have specialists – physicians, nurses – who are extremely skilled at what they do. At the same time, you have a complex ecosystem with tons of variation across patients, even caregivers. Those two components are present in just about any industry. As a result, many of the tools and processes I’ve worked with caregivers to apply in health care can be easily transferred to other settings.

COE: Speaking of handoffs, what are some of the biggest mistakes companies make when collaborating across departments or the supply chain?

AC: I think a really common one is that departments or companies take for granted that the other party has a clear understanding of the process. This is at the root of so many problems I’ve seen in R&D and health care. There’s also a misconception that the rules and requirements established at the beginning of a process don’t change. They can, sometimes in a way that can take us by surprise. I’ll be sharing insights in my keynote that can help managers address both of these common missteps.

COE: What’s causing more of these surprises?

AC: The increasingly global nature of business plays a not insignificant role here.  More than ever, companies are dealing with language and cultural barriers, regulations and political risks – and the stakes for success have never been higher.

To register for Prof. Chandrasekaran’s keynote and the entire Dec. 2 seminar, click here.

Parker Hannifin, Cleveland Clinic partnership focus of Dec. 2 keynote

Being a top hospital in the country, Cleveland Clinic is home to countless great ideas poised to transform into life-altering, even life-saving, medical advancements.

Getting those ideas out of the heads of its top-ranked physicians and onto the market has been the focus of a remarkable collaboration between the hospital and one of its neighbors in the Cleveland economic scene: Manufacturer Parker Hannifin Corp.

pete buca
Pete Buca

This partnership, which began quietly nearly a decade ago and was formally announced in 2014, is the focus of the afternoon keynote at the Center for Operational Excellence’s Dec. 2 seminar. At the event, Parker Hannifin VP Pete Buca will share details on the Cleveland Clinic collaboration, which has become a bustling pipeline of medical device ideas the company is working to bring to life using its own product development process, dubbed “Winovation.”

Recently ranked the No. 2 hospital in the country, Cleveland Clinic sees more than 5 million patient visits a year and employs more than 3,000 caregivers. That same U.S. News & World Report ranking called it the No. 1 hospital in the country for cardiology and heart surgery and one of the top five for diabetes and endocrinology, gastroenterology, orthopedics and pulmonology, among others.

Parker Hannifin, meanwhile, is an $11 billion-a-year maker of motion and control technologies that spent about $360 million on research and development in its latest fiscal year. It’s a supplier to more than 400,000 customers that span just about every significant manufacturing, transportation and processing industry in the economy: Food and beverage, life sciences, renewable energy, agriculture and aerospace, just to name a few.

Parker and Cleveland Clinic began collaborating several years ago in an effort to connect the engineering and product development prowess of the former with the critical insights into health-care challenges at the latter. To translate these two capabilities into action, Parker employees sat in on surgeries and communicated with surgeons, leaders told Crain’s Cleveland Business. Interactions like these spawned the 100-plus ideas that initially populated the partnership’s pipeline.

One product seeking to eventually make its way to the market is what’s called the Cleveland Multiport Catheter (CMC), a bold attempt to advance the treatment of brain cancers. Gliomas – a type of tumor in the glue-like supportive tissue of the brain – are resistant to radiation and other common therapies, largely because of the natural barrier in the body that keeps circulating blood out of the brain.

Surgical catheters that pump cancer drugs directly into the brain have been used on a trial basis for the past few decades, according to an October 2015 article by a CMC inventor, but have key limitations. Two in particular, according to the article, must be used in a special operating room, and left in only for several hours. The CMC, which began development in 2009, can be implanted in any neurological OR then be left in place for several days, ultimately delivering more cancer drugs, wrote inventor Dr. Michael Vogelbaum.

Cleveland Clinic partnered with Parker Hannifin to manufacture the CMC and treated its first patient with the device about two years ago. A March update revealed seven patients have undergone treatment with the CMC, which now has an Investigational New Drug application formally on file with the U.S. Food and Drug Administration. Dr. Vogelbaum said in a CMC update video that the device ultimately could help treat other neurological conditions such as Alzheimer’s Disease, Parkinson’s Disease and epilepsy.

At COE’s Dec. 2 seminar, Buca will share other exciting developments with Cleveland Clinic and detail how other organizations can learn from their collaborative innovation efforts. The featured keynote at the seminar’s morning session is Fisher College of Business Prof. Aravind Chandrasekaran, an award-winning researcher who will be sharing keys to collaboration.

Head to COE’s website to read more about this members-only session, or register now.