2018 – THERON Business Model – Workshop

Your business is challenged by new ventures, requires adjustments or rejuvenation? A newly started business lacks traction or is to be designed completely from scratch? You or your team are not sure about relevant options to take your business forward or you are entering unfamiliar areas of expertise? You are challenged by digitalization, transforming your operations to 100% renewable energy sources, or just in general increasing competition and ever faster Innovation cycles? Instead of threats you see opportunities and you want to think about how to leverage them to your favor in the best way?

TheronSight 02/2017 | Creating The Future

Leaders today face an innovation challenge. Interviews with executives confirm that economic results from innovations are low, while the buzz on innovation explodes. High media coverage is glorifying the rare disruption and unlikely success, and positions ‘best practices’ as a ‘holy grail’ for success in volatile times. Thus, ‘innovation’ has become one of the most overused words. To spur organic growth by innovation, practitioners are faced with a plethora of conflicting messages. Some of the suggested approaches, however, have not yet been tested in practice and some even forget that it is all about creating value for customers.

What is our Sales Force up to?

A direct sales force is – at approximately €100k per FTE – an expensive proposition. Yet there are – contrary to most other functions of a company – few publications on how this expensive resource is being managed. This is quite surprising since objective indicators of sales performance are as important for the success of a company as, for instance, state-ofthe-art production planning: “You can’t manage what you don’t measure” (Peter F. Drucker). Revenue, margin and liquidity of a company depend in large part on proper management of the sales function.

TheronSight 01/2017 | Effective digitalization, a magic lever for more profit in E-Commerce

Can E-Commerce (EC) be a success for more than a few, or will most E-Commerce companies go bankrupt, like Unister (Ab-in-den-Urlaub.de, etc.)? The average annual profit of the 546,293 ECommerce shops in Germany is around just 1,288 EUR. A recent analysis undertaken by the iBusiness magazine shows that top E-Commerce sellers achieve an average profit margin of just 0.3% on a turnover above 100m. A fierce and sustained cut-throat competition in the E-Commerce field seems unavoidable.

Post-Merger Integration demystified

Mergers & acquisitions are essential means to fulfill strategic growth and profit targets. However, studies reveal that two thirds of all deals fail on delivering results due to common issues. Professionally managed post-merger integration (PMI) helps to avoid these failures. This article presents the THERON PMI methodology, a proven and effective approach for commercial successful mergers & acquisitions.

TheronSight 01/2016 | Strategy – it´s more of a science than an art!

When put on the spot, well-versed strategy consultants commonly quote the phrase: “Strategy is an art, not a science”.

When Google Fails

What do you think – is there a big difference between operating a pub and running a coach company?

Case study: „Brandenburg Gate“ – How not to build an airport

The “Brandenburg Gate Saga”, the story of Berlin’s new BER Airport, is not a typical case study of a privately owned and operated infrastructure asset. In fact, it never made it that far. Private investors who had initially demonstrated their clear interest in a public-private-partnership and their capabilities to erect and operate the German capital’s new airport pulled out as soon as they understood the detrimental dynamics of this project.

Theron press: Berlin Brandenburg „How not to build an airport“, INFRASTRUCTURE INVESTOR

As an example of how not to build a project, Theron ManagementAdvisors’ Peter Jumpertz presents thecautionary tale of Berlin’s still unfinished Brandenburg Airport.

„Corporate Venturing“ – It is high time that large-scale companies spend a huge amount of money and reduce their share prices

From the point of view of companies, times of low interest rates have hidden potential to increase values – investments in risky businesses. This fact is often ignored by large-scale companies in particular. Rigid planning processes that have been applied for many years prevent companies from identifying unusual chances. Large-scale companies, in particular, tend to carry their previous year budgets forward and are therefore not able to use such chances systematically.

TheronSight 02/2013 | Views on E-Mobility

Further development of e-mobility has been discussed frequently in politics and the media. Public discussion often tends to follow the claims of lobbyists for subsidization and public investment in the infrastructure in this context. Moreover, it only focuses on solutions for passenger cars in metropolitan areas. In this document we briefly review many of these common beliefs and trends and summarize them, thus providing a new perspective on the overall development risks and opportunities in conjunction with emobility.

„Demand/Supply Split“ – Systematic Value Destruction

It is a matter of fact that certain issues whose origin is not entirely clear are particularly persistent. This applies to religion, myth, conventional wisdom, bad reputa‐ tion, to name just a few examples.

TheronSight 01/2013 | Systematic Management ofthe Time to Market in IT

Systematic management of the time to market (TTM) in as well as by means of information technology has a major impact on the success of a company in many industries. Important innovations with respect to products and processes can be launched within a shorter period of time, costs will decline ceteris paribus and satisfaction with IT in the company will increase.

dU + dEα = δQ + δW | lessons from another world

Economists are very different from physicists insofar as only few of them have managed to bridge the gap between psychology and real matter. There is no effective transfer of knowledge between the ivory towers in real life. It is a pity. In fact, it is even fatal since economists, irrespective of whether they focus on economics or business, are actually looking for new solutions.

„Big Data“ – Hands off!

The world is crowded with data. After the invention of the “internet of things” at the latest, the abundance of digital traces which human beings and machines leave will overwhelm us completely. If we believe the fortune tellers of modern age, this mass of bits contains a great treasure – the Holy Grail of global giants and the growth hormone of courageous entrepreneurs at the same time. And who are the treasure hunters? Chief information officers, of course.

Commercial Due Diligence – Everybody knows how it works!

Nobody wants to buy a pig in a poke – for good reason. In fact, more than two third of all acquisitions miss their objectives due to various reasons. Hence, nobody can take the risk to acquire a company without prior examination.

TheronSight 02/2012 | Typical of IT – you can´t live without it, but you can´t live with it either

This statement and similar ones express the frustration which many executives feel with respect to dealing with “electronic data processing” in their companies. Even though such a statement might sound superficial and unfair, there is some truth in it.

Danger Zone: IT-Projects

Implementation of major IT projects is a formidable management and supervisory challenge. Internal and external suppliers will invest considerable effort and their best sales people to convince IT budget owners that everything will be fine if they trust in their experience to get the job done. Survey results of the Standish Group (Cio.com, 18 June 2009), conducted among 400 firms, by contrast, warn of a rather sobering reality. Only 32% of IT projects are successful in terms of their schedule, budget and requirements.

The end of an era – Goodbye SMS

A business which once was considered to be the greatest innovation in the tele‐ communications industry is going to cease. The Short Messaging Service (SMS), a great success story of the German high‐tech industry, faces a sad end.

Crowding-out?

More than twenty years ago, while studying at university, we learned about a terrifying effect called “crowding‐out”. Since then we haven’t heard this word anymore. That’s quite amazing. It seems as though it has completely disappeared from the minds of bankers and bureaucrats. Has it just been another economic theory which has been reduced to absurdity by reality?