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VYACHESLAV GERASHCHENKO
GELENA SAVRUK
VICTOR OKSENYUK
MAR 31, 2016
ADDED VALUE "LARGE"
How to create such added value that the result differed from the invested resources not on percent, and in times (and it is better - on orders of magnitude)? We asked this question during the international training module of MBA kmbs participants in the USA and the Netherlands.
Why did we choose these countries?
First, there is a radical difference in business efficiency between the two countries and Ukraine. For example, in 2013, the productivity of the average Dutchman was $ 72 per hour, American - $ 65, Ukrainian - $ 5 (excluding purchasing power parity, at the dollar exchange rate as of 2013). It is unlikely that an American employee presses the keys on the keyboard or runs 13 times faster than a Ukrainian. We were interested in what explains such a difference in productivity.
The second reason for our choice was to implement in these states complex management concepts that allow us to achieve extremely high results. The training module focused on four concepts: business ecosystems, clusters, public-private partnerships (PPPs), and innovative business models.
We decided to share with you five cases, each of which in its own way answers the question: how to create added value "in a big way"?
How to make an old hotel a popular hotel?
Charlie McGregor is a Scottish businessman. In 1982, his parents founded a dormitory construction company for the University of Edinburgh. In the early 2000s, Charlie began to feel that the current generation of students needed a different environment than the 1980s. It should have a refined design, active social life and at the same time - a comfortable private space. So in 2012 the first The Student Hotel appeared - a hybrid of a modern hotel and a student dormitory.
The first The Student Hotel was opened in Rotterdam, the next - in Amsterdam and The Hague. The choice fell on them, because, first, these cities are university hubs in Europe. And secondly, in the Netherlands there was access to cheap buildings due to the commercial real estate crisis. In urban centers, 20–30% of the premises were empty. The largest owner of this property was a pension fund, the main Dutch investor. Today he is a leading partner of The Student Hotel.
TODAY'S PROGRESSIVE COUNTRIES VIEW THEIR COMPETITIVENESS THROUGH THE PRISM OF CLUSTERS, NOT BRANCHES
The new hotel of this company usually opens in an empty house located near the universities. Inside the building is completely renovated for hotel rooms (from 200 to 600) and public space.
What does a student get? The complex decision under one roof - for living, studying, work and rest. Namely: a room with all hotel services, which is on average 30% cheaper than a rented apartment. In addition - areas for study, recreation, meetings, cafes, gyms, even classrooms. An additional bonus - bicycles, the use of which is included in the price rooms.
The student pays not for the whole year of residence, but only for nine months. In the summer - the "dead" season for universities - The Student Hotel becomes a hotel for tourists. During the academic year, students occupy about 80% of the rooms, and 20% is left for tourists. The result is room occupancy of almost 100% 365 days a year.
The Student Hotel enters into agreements with the city's leading universities. Also, the project is always supported by local authorities, because hostels are not located in the epicenters of tourist routes and in rooms that were previously empty. The opening of such a hotel increases activity and stimulates the economy of the district.
In 2014, The Student Hotel won the prestigious international competition "Best Hotel Innovation of the Year". Today the company is expanding throughout Europe. In 2015, hotels were opened in Paris and Barcelona, and plans to increase the hotel fund to 10,000 rooms with a capitalization of $ 1 billion by 2020.
Where to get € 600 million to save people from floods?
In 1993 and 1995, 22,000 people in the province of Limburg (southern Netherlands) were affected by floods. The river Maas, which carried meltwater from France, overflowed in this area. In 1995-1997, the municipality built a dam on the river. But this was a temporary solution that did not guarantee absolute flood protection in the future.
TODAY, EVEN A VERY SIMPLE PRODUCT IS THE RESULT OF THE INTERACTION OF MANY BUSINESSES
The first company that Alina Adams convinced of the need to install her know-how was Google. She agreed to pay $ 200,000 for one Artveoli device.
How to attract 3.3 million tourists a year to the mountain valley?
The Napa Valley is a wine location in California. On its territory (size 40 by 10 km) there are 9 towns and 125 thousand people live. It is one of the most famous wine valleys in the world, although only 4% of American wine is produced in the region.
In the 1950s, the owners of the largest wineries in the Napa Valley began to communicate regularly. This is how The Tuesday Lunch Group was created. Every Tuesday they had lunch together and thought about how to make the Napa Valley the best wine region in the world.
According to Professor Paul Wagner, a local wine expert, the valley's pioneers were difficult and awkward interlocutors. But they are good understood that frontal competition kills the potential of the region. That's why they chose the metaphor of the Olympic team: "Every winery wants to get gold, but we train together."
Today, the Napa Valley is over 400 wineries, almost all of which have tasting rooms or restaurants for visitors. Booking.com offers 105 hotels and apartments in the region, 15 of them - five-star, 30 - four-star. There are 125 restaurants in the valley, which in 2014 received 11 Michelin stars. There is an airport that accepts private and charter flights, there are seven golf courses.
In 2014, the Napa Valley was visited by 3.3 million tourists. And they spent $ 1.63 billion there. Professor Wagner says: “Napa sells not a wine, but a vacation ticket. Not all our wines are the best. And, by and large, our competitors are not Bordeaux, but Las Vegas, New York and Paris. Napa Valley is a region where you can come and experience what paradise is like. At each winery you will be met by a concierge, whose task is to provide you with a unique wine experience and rest. "
The owners of the Napa Valley wineries created what Michael Porter called a business cluster in 1990. These are geographically concentrated groups of interconnected companies that compete and cooperate. Today, progressive countries view their competitiveness through the prism of clusters, not industries. This approach makes it possible to unite groups of people, to unite industries, as well as universities around specific industries. Such an interaction is able to generate a whole that is greater than the sum of its parts.
COOPERATION AND COMPETITION AT THE SAME TIME - STRATEGIES OF BUSINESSES, REGIONS, COUNTRIES IN GENERAL ARE BASED ON THIS PRINCIPLE
How to create the Internet, a computer mouse and hundreds of other innovations under one roof?
SRI International (Stanford Research Institute) is a research institute headquartered in Silicon Valley. In 1970, it legally separated from Stanford University, remaining integrated into its ecosystem thanks to professors and researchers.
This institute has become one of the world's drivers of innovation. The Internet, Siri voice search, LED TVs, cancer drugs, artificial muscles, robotic surgeons - it's all invented here.
Ksaba Shabo, a representative of SRI International, explained to the participants of the training module the main idea of SRI International: “We are the soul of Silicon Valley. People from the world's 2,000 largest companies come to us once a year. Each of them asks: what is new with us? We do not produce anything ourselves, we never compete with our customers. Honestly, we can't produce anything because we would always be in the market too early. For example, we invented the computer mouse in 1964. "
One of SRI International's leading partners is the United States government. The vast majority of innovative projects are commissioned by the state and later commercialized on the market. Ksaba adds: "Right now we are doing well - the government wants to intensify the transition from a production economy to an innovation economy."
SRI is a bridge between education and corporations. Its success is impossible without Stanford University, where the focus is - basic sciences. The institute is part of the complex business ecosystem of Silicon Valley, which includes researchers, universities, large corporations and the state.
In fact, Silicon Valley extends far beyond the mountains of California. She proves clearly that the key question for today's manager is what ecosystem he is a part of and what his role is in it. Because nowadays, even a very simple product is the result of the interaction of many businesses.
Coopetition (cooperation + competition) is a word we often hear from speakers in the United States and the Netherlands. Cooperation and competition at the same time - the strategies of businesses, regions and the country as a whole are based on this principle. This principle underlies all four concepts on which we focused: business ecosystems, clusters, PPPs and innovative business models. It is very likely that coopetition is one of the answers to the question of added value "on a large scale".
Source: Open
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Jun 18 2019, 13:45
How to create such added value that the result exceeded the invested resources not on percent, and in times (and it is better - on orders of magnitude)? We asked this question during the international training module for MBA kmbs participants, which took place in the USA and the Netherlands.
Jun 27 2019, 09:35
I have been managing ecosystems for over eight years. The experience of creating business ecosystems, managing them, joining other ecosystems allowed me to painlessly increase the value of businesses by 2-3 times.
Jun 27 2019, 09:30
Today, both in the Western world and in Ukraine, we are seeing the return of philosophy to the public sphere. We see a growing interest in philosophy in a broad sense. It is associated with a set of certain skills that are increasingly needed: the ability to read, write and speak. We now feel the need to rediscover these competencies.