S.C. Santema

The effects of co-innovation on the value-time curve: a quantitative study on product level

Quantitative analysis with respect to co-innovation is very scarce. The aim of this paper is to make headway into this terrain by quantitatively analyzing the effect of co-innovation on the value-time curve in terms of indicators from Beelaerts’ 3C model.Analysis of car manufacturer market data shows that co-innovation decreases time-to-market and increases market share. A case analysis of three aerospace products, combined with the previously found relations, leads to further insight into current innovation performance of major aerospace companies.

An Investigation of Value Modelling for Commercial Aircraft

One of the issues with commercial aircraft design is that most of the methods of developing and propagating requirements allow for nominally satisfying but less than ideal designs to be produced. There is a significant body of work that illustrates the issues that are inherent with the standard requirements flow-down approach. As an attempt to address this, a series of approaches variously named Value-Driven and Value-Centric Design have been proposed. In looking at commercial aircraft and engine design and operations several authors have suggested using a simplified Value model known as Surplus Value. This paper investigates the derivation of and assumptions that are inherent to the standard surplus value formulation. Further, several interesting and potentially useful outcomes of the standard model are investigated including the relationship with discount rate and maximum used programme duration or product life. Lastly, this paper attempts to remove one of the most restrictive assumptions in the basic surplus value formulation. This results in a more general formulation that incorporates basic sales and operating leases plus the ability to provide managed services. The resulting model is more general, but does require more user information to use.

Developing a Strategic Framework for an Airline dealing with the EU Emission Trading Scheme

The European Commission has decided that the aviation sector will be included in the EU Emission Trading Scheme (ETS) in 2012. This has significant impacts on the business and the strategy of airlines. All of a sudden, airlines must possess emission rights in order to be able to operate their aircraft. Given the uncertainty over how exactly the EU ETS is going to be implemented in the next few years and the unexpected fluctuations in prices of fuel and the CO2 emission rights, airlines are faced with a multifaceted challenge: how to best incorporate EU ETS in the business strategy of an airline? In order to support airlines with this complex process, in this research project a strategy model with different regulatory scenarios is developed, with which the exposure of an airline to EU ETS can be calculated. The model has been piloted in an airline to determine how future airline strategy should be adopted based on the regulatory environment. It is clear from the analysis of the different scenarios, that every regulatory scenario has its own optimal strategy, ranging from increasing fuel efficiency to using alternative types of fuel.

Does Value Leverage Pay off? A Model for Measuring Value-Leverage Capabilities in Automotive Large-Scale System Integrators

Trends in the car and aircraft manufacturing industry showed an evolution in the configuration and management of the production network. For instance, the aerospace manufacturing industry tended to be a closed system, competing on scale of production and focusing on maximization of own profit. Nowadays the automotive companies are developing open systems under the influence of globalization, outsourcing, and co-creation of value. Doing this with suppliers causes a shift of value from the focal firm to the supply chain, creating a value levering position for the so-called large-scale system integrator (LSSI). The leverage of value on suppliers introduces the value-leverage capability of the LSSI company. The capability of the LSSI to balance continuation, conception, and configuration is crucial for (long-term) profitability and competitive position. To express the value-leverage capabilities, the authors propose the variables “turnover per employee” (T/E), “research and development per employee” (RD/E), and “profit per employee” (P/E), whose (inter) relationship determines the capabilities.

Aviation and the environment, rating airlines on their co2 efficiency

The aviation industry contributes about 2% to the total global manmade CO2 emissions, which is seen as the main (manmade) greenhouse gas inducing climate change. This paper focuses on the design of a CO2 rating system which makes it possible to make a fair comparison of the environmental performance of airlines with respect to CO2 on the basis of public available data. It is argued that airlines can be best compared on the amount of CO2 emitted per revenue ton kilometer (CO2/ RTK) on the basis of distance sectors. Therefore, an airline is rated on various distance sectors. The CO2 efficiency scores of an airline within a distance sector can then be compared with other airlines. For nine airlines the CO2 efficiency is modeled, and the distance sector boundaries are determined. It is shown that the relative positions of airlines may change when choosing a different boundary, since the CO2 efficiency changes with distance. It is also shown that on the basis of public available information it is difficult to accurately determine the CO2/ RTK of an airline, which is due to lack of detail in public available data. A sensitivity analysis has been performed to show on which parameters information in greater detail is needed.

The Valuation of Resources: Looking through the Eyes of the Customer

In this paper the concept of the value of resources is operationalized. It is argued that the resource value is determined in dyads, instead of within one firm. The purchasing model of Kraljic (1983) is used to operationalize “value” from a supply chain perspective. The value of the resource of a firm is determined by the value of the resource as perceived by its customer(s). The presented model can be used by organizations to build and develop their resource base, and thus create better relations with their customers.

Xperience the CITY: The City of Destination as an Integrator and Its Role in Co-creating Travel Experiences

Fast changing trends within a technology driven society and the context of new economic landscape call for new innovative approaches and reconfiguration of roles in existing supply and value chains. Xperience the CITY, is a project aiming to change the way we travel so far, by changing the existing tourism supply chain and taking the City of Destination from a passive to a more active role, acting as an integrator among demand and supply. At the same time it calls for co-creation and invites travelers to co-create travel experiences. Building upon the premises of service-dominant logic that the customer is a co-creator of value and the essence of the experience economy, this project attempts to explore innovative ways where traveling is approached holistically as an end-to-end service. Following an extensive review of literature and an Explorative Research (qualitative), a preliminary model along with a proposed service is developed. In order for this model to be tested and validated, a Validation Research (quantitative) was designed addressing all major stakeholders. By this research the authors obtained valuable insights from 514 Passengers, 42 Hotels, 6 Airlines and 6 Airports, regarding current practices and an almost catholic validation of the preliminary model. Not only passengers are deeply interested in thematic traveling and are ready to co-create with the industry and benefit from such strategies, but Airlines and Airports would be ready to fully incorporate such service into their practices.

Creating Value by Measuring Collaboration Alignment of Strategic Business Processes

In today’s competitive aviation landscape, it is imperative for a hub-airport and its network carrier to create sufficient added value in order to ensure survival. One way of doing this is to improve the collaboration on interdependent business processes. In this research, four of such processes have been studied, by using a model which contains thirtyone factors that determine the level of alignment within the collaboration. Studying the characteristics of the collaboration has proved a useful tool for identifying opportunities for an airport and an airline increasing the value that is to be created.