Circularity Organization

In order to achieve sustainability goals, a paradigm shift is necessary: from a linear economy to a circular economy.Instead of having to buy the newest cell phone every two years to get the latest camera, you must rethink: Product design needs to be changed so that people buy a cell phone that they can use in the long term.. For example, the camera should be replaceable and regular upgrades with new functions should be possible. This form of circular economy, the so-called upgrade circular economy, offers both ecological and economic added value. Not only through re-use and recycling, but also thanks to upgrades of an existing product.

Depending on the size of the company, challenges of making progress in the circular economy differ. Large companies have already recognized the need to act due to regulations. But the obstacle for smaller companies to get started is still very high from a resource and competence perspective. For large corporates with global supply chain however, the sheer complexity of this endeavor is overwhelming. Therefore, we invited 7 leading global players and the Bundesverband der Deutschen Industrie e.V. (the the Association of German Industry) for elaborating shared challenges in organizing for circularity. In order to implement the circular economy, it is not only employees who need ato change their mindset and need training to gain an overview of what sustainability and the circular economy actually mean. Above all, it requires companies to rethink and develop a vision for the new product design. They have to develop a concept for reverse logistics to get back their products to realize the remanufacturing and upgrades. Therefore, a new IT and technology infrastructure as well as separate re-assembly-factories are needed.

Sustainability in Chile

The awareness for sustainability – especially in the younger generations – is already widespread. Our head of department Marc Patzwald was able to experience this at first hand during his trip to Chile when he was invited to a student sustainability tournament  to speak as a mentor about his perspective on the circular economy.

The Andean state holds the potential to play a key role in the energy transition and become a pioneer in renewable energies in South America. The conditions in Chile are ideal: the large Atacama Desert areas not only provide space for solar systems, but also the most intense solar radiation in the world. The country's long coastline is suitable for wind farms and the volcanoes also offer the opportunity to generate geothermal energy. At the same time, however, I witnessed the country's problems: Huge areas are polluted by mountains of (clothing) waste and whole sections of land are sacrificed to the mining of lithium and copper. Moreover, people do not benefit accordingly from the resulting wealth potential.

To understand sustainability as a business model that generates economic and ecological growth, people still need to drive sustainability efforts forward effectively and efficiently. Hence, it has been fantastic for Marc Patzwald to see the enthusiasm of students and entrepreneurs to find practical solutions to real-world sustainability problems in business – an opportunity for shareholders and mother earth alike.

Generative AI

OpenAI made headlines with the launch of ChatGPT: Artificial intelligence (AI) triggered both fears and great euphoria. With the launch of the platform, our department began to explore the topic from a scientific perspective.

In his doctoral lecture on generative artificial intelligence, our former colleague Thomas Scheuer raised the question of whether AI could become the wormhole in the technology universe. There is no question that the use of generative artificial intelligence will get us from A to B faster in technology management and will change the reality of technology management. Systematic technology management will then be possible with fewer resources. The question we need to ask is where and how to use them sensibly. Since there is still no single truth in the field of AI. Results that appear to be correct may contain false facts. The decisive factor is quality: AI is only as good as its database.

We can certainly make good decisions with the help of AI, but the human factor in companies remains important. A decision that is made in a team discussion will certainly be (still) better supported by the employees. Nevertheless, we need to create a mindset that accepts Artificial Intelligence as a new colleague. Our research on this topic remains exciting as we plan to further explore the actual state-of-the-art and best-practices in a consortium benchmarking on technology management in 2024. The wormhole will be opened.

Quantum Computing

Is this just hype or is it worth looking at it from a business perspective? Quantum computing is emerging as a potential paradigm shift in the computing world. The prospect of overcoming complex challenges, especially data-based problems, at unprecedented speed promises considerable advantages.

However, we are still a long way from application as we explored current QC use cases for manufacturing companies in a research project this year. We may not reach the medium maturity level until around 2030. This raises the question of whether companies should already be actively engaging with the world of quantum computing. Interesting use cases can already be derived and played through. The future of logistics will be significantly influenced by smart cities, self-driving vehicles and real-time data analysis, which will optimize traffic management and supply chains.

Current high-performance computers are reaching their limits when it comes to simulating the complex network of connected routes and systems. This is where simulations of quantum computers come into play. They have the potential to revolutionize the loading of planes and trucks by optimally using every inch of cargo space for safety and speed. They can also adjust routes in real time to avoid traffic jams and consider factors such as weather and demand.

And let's not forget: Quantum computers could predict customer demands more accurately, better coordinate production and reduce surplus stocks. It's all about finding the balance between costs and potential losses due to unpredictable market changes.

Corporate Venturing

In 2024, corporate venturing will continue to be an important topic for companies that want to expand and develop their core business with radical innovations to maintain their competitiveness.

In our current consortium benchmarking "Catching the wave: How the best corporates venture the unknown" together with INC Invention Center we derived valuable learnings in a trustful exchange with five successful practice companies. The overarching insight is that there is no one-fits-all solution. The design of the incubator must be tailored to the individual company and to the innovation direction of the parent company. We askedmore than 50 questions on success factors in the dimensions of strategic mission, organization, processes, culture, and mentality as well as performance management, to derive five key findings in corporate venturing that distinguish successful practices from followers. In the process, we developed a maturity index for corporate venturing together with Tobias Guthmann from the European Business School (EBS), that allows for an objective comparison against the benchmarking data of the largest study in Germany.