Management for Professionals More Information About This Series at Christoph Franz • Thomas Bieger • Andreas Herrmann Editors

Management for Professionals More information about this series at http://www.springer.com/series/10101 Christoph Franz • Thomas Bieger • Andreas Herrmann Editors

Evolving Business Models How CEOs Transform Traditional Companies Editors Christoph Franz Thomas Bieger Roche Holding Ltd University of St.Gallen Basel, Switzerland St.Gallen, Switzerland

Andreas Herrmann Institute of Customer Insight University of St.Gallen St.Gallen, Switzerland

ISSN 2192-8096 ISSN 2192-810X (electronic) Management for Professionals ISBN 978-3-319-48937-7 ISBN 978-3-319-48938-4 (eBook) DOI 10.1007/978-3-319-48938-4

Library of Congress Control Number: 2017937747

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This Springer imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Contents

Introduction: Globalization and the Opening of New Markets ...... 1 Thomas Bieger, Christoph Franz, and Andreas Herrmann Transformation of Teaching and Research in a Globalized IT-Driven World ...... 11 Thomas Bieger Banks Caught Between Regulation, Technical Progress, and Proﬁtability ...... 27 Martin Blessing and Tobias Bange Business Models in the Chemical Industry Amid a Changing Competitive Landscape ...... 41 Kurt Bock Business Model Innovation: Some Key Success Factors at Bosch ...... 61 Volkmar Denner Environmental Management ...... 75 Jens-Uwe Fischer Innovation for Health: Success Factors for the Research-Based Pharmaceutical Industry ...... 93 Christoph Franz Industry Expertise and Dynamic Challenges: Perspectives of an Adopted Railwayman ...... 113 Rüdiger Grube The Airline Industry: Flying on Its Own Is not Enough ...... 125 Harry Hohmeister From Data to Business: A Paradigm Shift in Industry ...... 141 Joe Kaeser Engineering the Intangible: Strategic Success Factors in the Luxury Watch Industry ...... 153 Georges A. Kern

v vi Contents

Industry Expertise in the Digital Media Industry: Specialization vs. Disruption of Online Business Models ...... 181 Clemens Trautmann Royal Dutch Shell in a Changing World: Navigating Uncertainty ..... 195 Ben van Beurden Into the Future on the Digital Highway ...... 209 Dieter Zetsche About the Authors

Tobias Bange Vice-President, Commerzbank AG, born in 1960, studied German and sociology in Frankfurt. From 1989 to 1999, he worked as an independent ﬁlmmaker for Hessischer Rundfunk and other public broadcasters. In 1999, he moved to Dresdner Bank and subsequently to Commerzbank. From 2009 to 2013, he also played an active role in the staff unit of the Government Commission Ger- man Corporate Governance Code. Since 2008, he has worked in the Public Affairs/Issue Management Department of Commerzbank where his areas of responsibility include issues relating to ﬁnancial market regulation.

Thomas Bieger Prof. Dr. rer. pol., Full Professor of Management with a special focus on the Tourist Industry, President of the University of St.Gallen and Director of the Institute for Systemic Management and Public Governance at the University of St.Gallen (IMP-HSG). Thomas Bieger has published, conducted research, worked in consultancy and taught at various universities (among them the Univer- sity of Innsbruck, the Vienna University of Economics and Business, the Universita` della Svizzera italiana in Lugano and the University of Otago), with a special focus on service management and network management, as well as desti- nation management and location management. He served as Chairman of CEMS (The global alliance in Management education) from 2010–2014. Currently he is President of the Chamber of the Swiss university presidents in within swissuniversities.

vii viii About the Authors

Martin Blessing President Personal and Corporate Banking and President UBS Switzerland, UBS Group AG and former Chairman of the Board of Managing Directors, Commerzbank AG, was born in 1963; he studied business administration in Frankfurt and St.Gallen. From 1989 to 1996, he worked for the management consultants McKinsey for the last two years as a partner. From 2000 to 2001, Blessing was Chairman of the Board of the direct bank Advance Bank which at that time was part of Dresdner Bank. On 1 November 2001, he became a member of and, in 2008, Chairman of the Board of Managing Directors. On 7 May 2009, he was appointed Chairman of the Bank’s Board of Managing Directors by the Supervisory Board of Commerzbank.

Kurt Bock is Chairman of the Board of Executive Directors of BASF SE, a position he assumed in May 2011. Bock is currently responsible for Legal, Taxes and Insurance, Strategic Planning and Controlling, Communications and Government Relations, Global Executive Human Resources, Investor Relations and Compliance. From 2003 until 2011, he was Chief Financial Officer of BASF SE, and during that time, from 2007, he was also Chairman and Chief Executive Officer of BASF Corporation, based in the USA. In 1985, Bock started his career with BASF in finance. From 1992 until 1998, he held several management positions in Germany and Brazil for the automotive supplier and electronics company Robert Bosch. Bock returned to BASF in 1998. Kurt Bock was born in Rahden, Eastern Westphalia, Germany, in 1958. From 1977, he studied Business Admin- istration at the Universities of Münster and Cologne as well as at Pennsylvania State University, USA, and received his diploma in 1982 from the University of Cologne. In 1985, he earned his doctorate in Economics from the University of Bonn. Kurt Bock is married and has three children.

Volkmar Denner has been chairman of the board of management of Robert Bosch GmbH and a shareholder of Robert Bosch Industrietreuhand KG since 1 July 2012. His responsibilities include corporate strategy, corporate communications and real estate and facilities. As chief technology ofﬁcer, he also has corporate responsibility for research and advance engineering, technology coordination and new business areas. ln addition, he is responsible for the subsidiaries Bosch Software Innovations GmbH and Bosch Healthcare Solutions GmbH. Born in Uhingen, Germany, on 30 November 1956, Volkmar Denner is married and has three children. After taking his university entrance examination in 1975, he studied physics at the University of Stuttgart, graduating in 1981. After a research stay in the USA, he completed a doctorate in physics (Dr. rer. nat.) at the University of Stuttgart in 1985. About the Authors ix

He is a member of the managing board of the VDA (German Association of the Automotive lndustry), a member of the executive board of BBUG (Baden-Baden Entrepreneur Talks) and the chair of the Association of Friends of the University of Stuttgart.

Jens-Uwe Fischer studied metallurgy at the Technical University Berlin (TU) and Economic Science at the Tech- nical School Berlin (TFH). After working for 5 years as a scientific assistant at the Institute of metallurgy TU Berlin, he functioned in 1984 as the project manager of the German Agency Technical Cooperation (GTZ) at the Technical University Istanbul (ITU¨ ). In 1988, he received a Doctorate in Metallurgy at in the Technical University Berlin. Since 1989, he worked as the general manager of the Group Berlin Steelworks GmbH. In 1992, he was employed as the head of the Department Business Development ABB Fla¨kt Group GmbH and appointed as the deputy environmental officer ABB Germany and later as head of the PC paint application of the ABB Flexible Automation GmbH. In 1995, he was employed in the German Railway Association (Deutsche Bahn AG) as the manager of Soil Remediation Department and since 1997 as the head of the brownfield recycling management department till 2013. In the year 2000, he was appointed as an honorary professor at the University Leipzig in the Economic Science Faculty—Institute for Infrastructure and Resources Management—with the subject inte- grative brownfield recycling management. Since 2013, he held several advisory positions as senior expert for example as the chairman of the advisory board and as member of the executive board of the ITVA (Engineering-Technical Society for contaminated Sites and brownfield recycling) and since 2016 chairman of the advisory board immobilien-experten AG. He is a member of the National Academy of Science and Engineering (acatech) and as well a member of the soil protection Commission of the Federal Environment Agency (UBA).

Christoph Franz was born in Frankfurt am Main, Germany, in 1960. After graduating from Darmstadt Tech- nical University and the E´ cole Centrale de Lyon in Indus- trial Engineering, he earned his PhD in Political Science from Darmstadt Technical University and worked as a post- doc at the University of California, Berkeley. Franz started his career at Lufthansa AG in 1990 and joined Deutsche Bahn AG in 1994, where he was appointed a Member of the Executive Board and CEO of the Passenger Transport Division. He was then appointed CEO of Swiss International Air Lines AG in 2004 and was later promoted to CEO of Lufthansa Airlines in 2009. From 2011 to 2014, Christoph Franz was the CEO of Deutsche Lufthansa AG. He has served as the Chairman of the Board of Directors of Roche Holding AG since 4 March 2014. Further mandates include the boards of Stadler Rail AG and Zurich Insurance Company Ltd. He is a Member of the Board of Trustees of Ernst Gohner€ Foundation and of the Advisory Board of the University of St.Gallen (HSG). Christoph Franz is married and a father of ﬁve children. x About the Authors

Rudiger€ Grube Before joining Deutsche Bahn, Dr. Rüdiger Grube had been a member of the Board of Management of Daimler AG since 1 October 2001, where he was responsible for Corporate Development including Corporate Strategy, Mergers and Acquisitions, Industrial Participations and IT; from 1 October 2004, he also oversaw all of Daimler AG’s activities in North East Asia (including the growing Chinese market). In addition, he served as Chairman of the Board of Directors of the European Aero- nautic Defence and Space Company (EADS N.V.). Born in Hamburg on 2 August 1951, Dr. Rüdiger Grube completed his commercial and technical training in metal aircraft construction and went on to gain a degree in automotive engineering and aircraft construction from the University of Applied Sciences in Hamburg. He later studied vocational and business teaching at the University of Hamburg. He lectured production and engineering at the University of Hamburg from 1981 to 1986. Having gained his doctorate in the areas of industrial science and polytechnology at the Universities of Hamburg and Kassel in 1986, he went on to join Messerschmitt-Bolkow-Blohm€ GmbH (later Daimler-Benz Aerospace or DASA in 1989).

Andreas Herrmann Prof. Dr. rer. pol., is Full Profes- sor of Management with a focus on Customer Insight and Director of the Institute for Customer Insight at the Univer- sity of St.Gallen (ICI-HSG). Andreas Herrmann has published on product and price management, on market research topics, and on branding issues. He has directed many projects in collaboration with collegues at MIT, Columbia University, and Stanford University. Beyond his academic work, he is very much involved in consulting mainly for the automotive industry.

Harry Hohmeister is a member of the Lufthansa Group Executive Board, where he is in charge of Hub Management since January 2016. He was Chief Executive Ofﬁcer of Swiss International Air Lines from 2009 until 2015. Hohmeister has over 25 years of experience in the airline industry. Having trained to become a commercial air transport ofﬁcer, Hohmeister joined Deutsche Lufthansa in 1988, where he held various positions and became Vice President Planning with responsibility for the entire Lufthansa network in 1996. In 2000, he joined Thomas Cook Airlines, for whom he held various executive management functions in Germany and the UK over the next 5 years. He came to SWISS in 2005, initially as a Member of the Management Board and Head of Network. About the Authors xi

Joe Kaeser is President and Chief Executive Officer of Siemens AG. He has over 30 years of experience at Sie- mens, where he has held a variety of top management positions in finance and strategy both inside and outside Germany. Joe Kaeser began his career at Siemens in 1980 in the field of components and semiconductors. In 1999, he joined the Corporate Finance Department. In 2001, he was appointed Chief Financial Officer of the Information and Communication Mobile Group. From 2004 to 2006, he served as Siemens’ Chief Strategy Officer. Prior to his appointment as CEO in August 2013, he was the company’s Chief Financial Officer for 7 years.

Georges A. Kern grew up in Germany and France. He studied Political Science in Strasbourg, France, and subsequently obtained a degree in Business Administration from the University of St.Gallen, Switzerland. He acquired his ﬁrst professional experience in the fast-moving consumer goods sector at Kraft Foods Switzerland before joining the Swiss watch industry at TAG Heuer (LVMH group). In 2000, he joined the Switzerland-based luxury goods group Richemont, and following the acquisition of A. Lange &Sohne,€ Jaeger-LeCoultre and IWC, he was active in the integration of these brands into the company. In 2002, at the age of 36, he became the youngest CEO within Richemont when he joined IWC Schaffhausen. In 2017, he was appointed Head of Watchmaking, Marketing and Digital at Richemont. Kern is also committed to charitable causes, serving as a member of the Board of Trustees of the Laureus Foundation Switzerland, which promotes the use of sport as a tool for social change. He is also a Founding Curator of the Global Shapers Community in Zurich.

Clemens Trautmann (born 1977 in Braunschweig) has been President and CEO of Deutsche Grammophon GmbH, part of Universal Music Group, since December 2015. He previously held various executive roles at Axel Springer SE, most recently as Chief of Staff to Chairman and CEO Dr. Mathias Dopfner,€ as well as Managing Direc- tor and CFO of its online property portal, Immonet. In these roles, he was responsible for a variety of strategic projects focusing, for example, on digital transformation, new business development, corporate acquisitions, innovative management methods and organisational culture. Clemens Trautmann earned his doctorate in law while simultaneously studying music, including at The Juilliard School, New York. As a member of a European working group on intellectual property, he served on the research staff of the Max Planck Institute for Comparative and International Private Law. He has given solo and chamber music performances, for example, at Lincoln Center’s ‘Mostly Mozart Festival’ and at the Berlin Philharmonic Hall in the ‘Debut on Deutschlandradio’ series and has been awarded prizes by the Schleswig-Holstein Music Festival and the German Music Council. xii About the Authors

Ben van Beurden became Chief Executive Ofﬁcer of Royal Dutch Shell plc in January 2014. He joined Shell in 1983, after graduating with a Master’s degree in Chemical Engineering from Delft University of Technology in the Netherlands. Van Beurden’s career at Shell spans both the upstream and downstream businesses. In January 2005, he became Vice President, Manufacturing Excellence, based in Houston, USA. In this role, he was responsible for oper- ational excellence and initiatives in reﬁning and chemicals manufacturing. In December 2006, Van Beurden was appointed Ex- ecutive Vice President, Chemicals, based in London, UK. During this time, he was appointed to the boards of a number of leading industry associations including the International Council of Chemicals Associ- ation and the European Chemical Industry Council. In 2013, Van Beurden became Downstream Director and a member of the Executive Commit- tee, with regional responsibility for Europe and Turkey.

Dieter Zetsche has been a member of the Board of Management of Daimler AG since 16 December 1998 and Chairman of the Board of Management of Daimler AG since 1 January 2006. He is also Head of Mercedes-Benz Cars. Prior to this, he held various positions in the company, including President of Mercedes-Benz Argentina (1989), President of Freightliner Corp. (1991), Member of the Board of Management with responsibility for Commercial Vehicles (1999) and CEO of the Chrysler Group (2000). Dr. Dieter Zetsche was born in Istanbul, Turkey, on 5 May 1953. After attending school in Frankfurt, he studied electrical engineering from 1971 to 1976 at the University of Karlsruhe and graduated as an engineer. He joined the research department of what was then Daimler-Benz AG in 1976. Dr. Zetsche completed a doctorate in engineering in 1982 at the University of Paderborn.