About this Presentation
The presentation briefly describes the impact on management attention of the realities of organization’s environment: uncertainty, conflicts, and complexity. Rami discusses mainly uncertainty in brands and retailing; projections or forecasts on what stock to hold, how much, and where. Our ability to make accurate forecasts is getting worse because of three reasons. First, consumer personalization (brands/retailer response: hold a larger product range; reality: a lot of new products fall in the long tail, very low sales). Rami discusses a U curve of range and management attention. Second, Consumer tolerance time is getting shorter and shorter; response is a major performance measure. The brands/retailer must have higher stock closer to the consumer. Third, consumers expect new products as product life cycles are shorter and shorter. Brands/retailers must introduce new products faster and faster. Forecasts cannot respond to these factors. The solution is strategic placement of buffers, reduction of response time solve “mysteries” (deviations from predicted effect).
What Will You Learn
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Instructor(s)
