Zatta Revenue Management in Manufacturing

State of the Art, Application and Profit Impact in the Process Industry
1. Auflage 2016
ISBN: 978-3-319-30240-9
Verlag: Springer International Publishing
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 143 Seiten, eBook

This book focuses on the application of revenue management in the manufacturing industry. Though previous books have extensively studied the application of revenue management in the service industry, little attention has been paid to its application in manufacturing, despite the fact that applying it in this context can be highly profitable and instrumental to corporate success. With this work, the author demonstrates that the manufacturing industry also fulfills the prerequisites for the application of revenue management. The book includes a summary of empirical studies that effectively illustrate how revenue management is currently being applied across Europe and North America, and what the profit potential is.

Zielgruppe

Research

Autoren/Hrsg.

Zatta, Danilo

Inhaltsverzeichnis

1;Foreword;8
2;Preface;10
3;Acknowledgments;12
4;Contents;14
5;List of Figures;18
6;List of Tables;20
7;Acronyms and Symbols;22
8;Chapter 1: Introduction;24
8.1;1.1 Importance of RM;24
8.2;1.2 Motivation and Background;25
8.3;1.3 Objectives of the Book;27
8.4;1.4 Structure;28
8.4.1;1.4.1 Chapter 2: Concepts and Application;28
8.4.2;1.4.2 Chapter 3: State of the Art and Perspectives of RM in the PI;29
8.4.3;1.4.3 Chapter 4: Application of RM in Europe and North America;29
8.4.4;1.4.4 Chapter 5: Profit Impact of RM in the PI;30
9;Chapter 2: Concepts and Application;31
9.1;2.1 The Concepts of RM and PI;31
9.1.1;2.1.1 Definition of RM;31
9.1.2;2.1.2 Definition of PI;32
9.2;2.2 Demand-Management Decisions;32
9.3;2.3 The Innovative Elements of Revenue Management;33
9.4;2.4 Origins of RM;35
9.4.1;2.4.1 Airline Industry in the 1970s;36
9.4.2;2.4.2 Innovations Introduced by American Airlines;37
9.4.3;2.4.3 Implications of the Airline Heritage;38
9.4.4;2.4.4 Extension to Other Service Industries;39
9.5;2.5 RM in the Manufacturing Industry;40
9.5.1;2.5.1 Planning Approaches;41
9.5.2;2.5.2 Empirical Studies;41
9.5.3;2.5.3 Manufacturing Alternatives: MTS vs. MTO;41
9.6;2.6 Prerequisites for the Application of RM in the Service vs. PI;42
9.6.1;2.6.1 Heterogeneous Demand and Customer Segmentation;42
9.6.2;2.6.2 Stochastic Demand;43
9.6.3;2.6.3 Capacity Expiration;43
9.6.4;2.6.4 Fixed Capacity and Dynamic Demand;44
9.6.5;2.6.5 High Fixed Costs and Low Marginal Costs;44
9.6.6;2.6.6 Pre-booking Option;44
9.6.7;2.6.7 Economic Freedom to Act;45
9.6.8;2.6.8 Data Availability and Information Systems;45
9.6.9;2.6.9 Corporate Culture and Management Support;45
9.7;2.7 Price and Capacity Management;46
9.8;2.8 Profit Impact of RM;46
9.9;2.9 Fairness Within RM;47
9.9.1;2.9.1 Key Elements of Fairness;48
9.9.2;2.9.2 Fairness Within the Service Industry;48
9.9.3;2.9.3 Fairness Within the Process Industry;49
9.9.4;2.9.4 Price Increase Strategies;49
10;Chapter 3: State of the Art and Perspectives of Revenue Management in the Process Industry;50
10.1;3.1 Background of the First Empirical Study;50
10.2;3.2 Explorative Research and Hypothesis Derivation;50
10.3;3.3 Quantitative Study: Data Collection;52
10.4;3.4 Results: State of the Art of RM in the PI;54
10.4.1;3.4.1 Focus, Implementation and Introduction;54
10.4.2;3.4.2 Importance of RM;55
10.4.3;3.4.3 Type of RM System;56
10.4.4;3.4.4 RM as a Lever Contributing to Profit Growth;56
10.4.5;3.4.5 Future Use of RM;57
10.5;3.5 Trends and Perspectives;58
10.5.1;3.5.1 Barriers to the Introduction of RM;58
10.5.2;3.5.2 Benefits and Risks of RM;58
10.5.3;3.5.3 Alternatives to RM;59
10.5.4;3.5.4 Statements on RM;60
10.6;3.6 Conclusions;61
10.6.1;3.6.1 Results;61
10.6.2;3.6.2 Limitations and Outlook;61
11;Chapter 4: Implementation of Revenue Management in the Process Industry in North America and Europe;63
11.1;4.1 Background of the Second Empirical Study;63
11.2;4.2 Exploratory Research and Hypothesis Derivation;63
11.3;4.3 Quantitative Study: Data Collection;65
11.4;4.4 Results: RM in Practice;66
11.4.1;4.4.1 Importance of RM;66
11.4.2;4.4.2 Focus, Implementation and Period of Use of RM;67
11.4.3;4.4.3 Current Use of RM;69
11.4.4;4.4.4 Future Use of RM;71
11.5;4.5 Trends;72
11.5.1;4.5.1 Barriers to the Introduction of RM;72
11.5.2;4.5.2 Alternatives to RM;74
11.5.3;4.5.3 Statements on RM;75
11.6;4.6 Conclusions;76
11.6.1;4.6.1 Results;76
11.6.2;4.6.2 Limitations and Outlook;77
12;Chapter 5: Use and Profit Impact of Revenue Management in the Process Industry;78
12.1;5.1 Background of the Third Empirical Study;78
12.2;5.2 Exploratory Research;79
12.3;5.3 Quantitative Study: Data Collection;81
12.4;5.4 Results: RM in Practice;83
12.4.1;5.4.1 RM Profit Impact Evaluation and RM Years of Utilization;83
12.4.2;5.4.2 RM Introduction and Use;84
12.4.3;5.4.3 Impact of RM Utilisation on Profits;85
12.4.4;5.4.4 A Priori and a Posteriori Estimation of Profit Improvement Due to RM;87
12.4.5;5.4.5 Barriers that Hinder RM Implementation;88
12.4.6;5.4.6 Reasons for Not Implementing RM;90
12.5;5.5 Conclusions;91
12.5.1;5.5.1 Results;91
12.5.2;5.5.2 Limitations and Outlook;92
13;Chapter 6: Conclusions;93
13.1;6.1 Summary and Results;93
13.2;6.2 Final Remarks and Future Research Directions;94
14;Appendix A: Questionnaires;96
14.1;A.1 Questionnaire for the First Empirical Study;96
14.1.1;Section I: Company Background;96
14.1.2;Section II: Application of RM;97
14.1.3;Section III: Statements on RM;101
14.2;A.2 Questionnaire for the Second Empirical Study;101
14.2.1;Section I: Company Background;101
14.2.2;Section II: Application of RM;102
14.2.3;Section III: Statements on RM;106
14.3;A.3 Questionnaire for the Third Empirical Study;107
14.3.1;Section I: Company Background;107
14.3.2;Section II: Application and Success of RM (For Companies Using It);108
14.3.3;Section III: Reasons for Not Employing RM (For Companies Not Using It);112
15;Appendix B: Correlation Matrixes;116
15.1;B.1Impact of the Barriers´ Evaluations on Real Decision to Introduce RM;116
15.2;B.2 Spearman Correlation Matrix of the Metric Variables;117
16;Appendix C: State of the Art and Implementation of Revenue Management in Germany;119
16.1;Zusammenfassung;119
16.2;C.1 Problemstellung;119
16.3;C.2Anwendungsvoraussetzungen und Instrumente für Revenue Management in der Prozessindustrie;120
16.3.1;C.2.1Anwendungsvoraussetzungen;120
16.3.2;C.2.2Instrumente: Preis- und Kapazitätsmanagement;121
16.4;C.3Stand der Forschung;122
16.5;C.4Qualitative Vorstudie und Arbeitshypothesen;123
16.6;C.5Empirische Untersuchung;125
16.6.1;C.5.1Datenerhebung;125
16.6.2;C.5.2Ergebnisse: Derzeitiger Stand des Revenue Managements in der Prozessindustrie;127
16.6.2.1;C.5.2.1Fokus, Umsetzung und Einführungszeitraum;127
16.6.2.2;C.5.2.2Bedeutung von Revenue Management;128
16.6.2.3;C.5.2.3Ausprägung des Revenue Management Systems;129
16.6.2.4;C.5.2.4Revenue Management als Massnahme zur Erkösverbesserung;130
16.6.2.5;C.5.2.5Zukünftiger Einsatz von Revenue Management;131
16.6.3;C.5.3Trends und Meinungen;131
16.6.3.1;C.5.3.1Hindernisse bei der Einführung von Revenue Management;131
16.6.3.2;C.5.3.2Chancen und Risiken von Revenue Management;132
16.6.3.3;C.5.3.3Alternativen zu Revenue Management;133
16.6.3.4;C.5.3.4Positionen zum Revenue Management;133
16.7;C.6Wesentliche Ergebnisse und Limitationen der Studies;134
16.7.1;C.6.1Wesentliche Ergebnisse;134
16.7.2;C.6.2Limitationen;135
17;About the Author;138
18;References;139

Über Autor(innen)

Dr. Danilo Zatta, Partner and Managing Director at The Boston Consulting Group

(BCG) in Munich, is a leading expert in topline growth with over 20 years of

consulting experience. He specialized in profit improvement on the revenue side.

Before joining BCG, he worked for several of the world’s leading consultancies in

the fields of strategy and marketing.

Danilo has conducted hundreds of projects both in Europe and globally for large

corporations as well as for medium-sized companies and private equity investors in

numerous sectors. He was thus able to develop strong expertise in e.g. strategies,

sales and pricing excellence programs, M&A and post-merger integration, pricing

processes, as well as business and revenue models.

He has published over 20 books on topics including corporate strategies and

pricing. His articles are regularly published in e.g. Harvard Business Review and

The Journal of Revenue and Pricing Management. He is a regular speaker and

chairman at events, forums and leading business schools.

Danilo studied Economics at the Luiss University in Rome, Italy as well as at the

UCD in Dublin, Ireland. He holds a Master of Business Administration (MBA)

from INSEAD of Fontainebleau, France and Singapore. He received his doctoral

degree (Ph.D.) in revenue management and pricing at the Technical University of

Munich, Germany.