The Good Spending

Follow my blog with Bloglovin Is Agile methodology a CPO panacea? Once again , let's refer to the 2021 Deloitte CPO Survey , which is called "Using agility to address changing chief procurement officer priorities." The Deloitte suggested solution to multiple CPO challenges is agility. Personally, I get alerted when offered a uniform recipe for many problems.  Don't you feel this prescription is somewhat simplified?  E.g., the agile methodology doesn't address cost-saving, which is the no. 2  top CPO priority per this report.  Lean does.  Agile is one of the generic supply chain management strategies Supply chain modeling starts from segmentation. It could be product-, customer-, supply,  geography-related, or a combination thereof.  Actually, agile is one of four generic supply chain management strategies  segmented by lead time and demand predictability: Kanban - continuous replenishment; Lean - fixed capacity and variable level of services; Agile - fixed leve

Blogs Directory A closer look at our buying behavior.  Our everyday buying behavior attracts the constant attention not only of marketers but scientists.  Let's see how neuroeconomics explains why we prefer one product over another and how price-sensitive we are.  Neuroeconomics - the science of buying. Neuroeconomics is a new field of science that combines economic theories with neuroscience, computer models, and psychology. It is meant to explain what's happening in the consumer's brain when making everyday economic decisions .    Notably, it explains   how consumers decide to purchase (or not to) one product over another based on an analysis of our neural functions.  We will briefly summarize the neuroeconomics research on simple purchasing decisions and propose conclusions for corporate fellows.  Science will inevitably prove that our brain puts value above the price . The scientific model of value-based choices The Attentional Drift-Diffusion Model (aDDM) describes

Do we really make rational business decisions? Usually, the business decision-making process is analytical and rational and includes extensive information-gathering and detailed analyses.  Therefore, it portrays the decision-maker as " homo economics ," capable of rational decisions and driven by ambition to obtain the highest possible outcome for predetermined goals. Is it really so?  The Paradox of Rationality We have already touched upon the theory of bounded rationality by  Herbert A. Simon . Classical economics is based on two cornerstone assumptions: the economic actor has a particular goal, e.g., profit or asset utilization; the economic actor is substantively rational. Such considerations narrow economic analysis tools to mathematics only, as any rational activity can be explained by numbers. Simon added psychology to the equation and introduced the notion of " bounded rationality ," which results in seemingly irrational choice outcomes by individuals due