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Research - 15.10.2024 - 10:30 

Innosuisse project: Risk management for global production networks

HSG researchers are working with partners from science and practice to make companies more resilient in times of crisis. The results of the project funded by the Swiss Innovation Agency Innosuisse were presented at the St.Gallen Production Management Conference.

Many manufacturing companies today operate globally distributed production networks in which value creation processes are closely linked across several locations. However, this dependence on international networks also makes companies susceptible to disruption. Current geopolitical conflicts and socio-economic developments have highlighted the fragility of these networks. In order to remain competitive in the long term, companies must be able to react to external influences at an early stage and make strategic decisions based on sound risk assessments. 

But how can country risks be recognised and future risks better managed? The Innosuisse-funded research project is investigating this question. The Institute of Technology Management (ITEM-HSG) at the University of St.Gallen has teamed up with the Institute of Accounting, Controlling and Auditing (ACA-HSG) as well as the practice partners Endress+Hauser, Phoenix Contact, Weidmann and IT-Logix. As part of the project, IT-Logix developed a dashboard with two features:

  • Various visualisations for monitoring and analysing country risks at location and network level.
  • A ‘what-if scenario’ function with which companies can simulate strategic decisions based on external influencing factors and country risks.
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Support companies in the identification of risks

Integrated into a software solution, the newly developed approaches enable the data-based analysis of country risks at various levels. By being able to map scenarios for future country developments, companies can make more informed strategic decisions on product allocation and location selection and thus pursue a more robust risk management strategy. The most important results at a glance:  

  • Strengthening the resilience of global production networks: The project shows how companies can use innovative approaches and software solutions to make their production networks more resilient to geopolitical and socio-economic risks. This increases the long-term competitiveness of Swiss companies on global markets.
  • Data-driven risk management strategies: Thanks to the newly developed dashboards and ‘what-if scenarios’, companies can make informed, data-based decisions regarding country risks. This improves their ability to react quickly and strategically to external influences.
  • Promoting innovation through practical research: The Innosuisse project illustrates how close collaboration between science and business leads to practical solutions that sustainably strengthen the innovative power of the Swiss economy. It also shows that practical research can help companies to position themselves for the future and effectively implement innovations in practice.

The results of the project will be discussed with industry experts at the St.Gallen Production Management Conference on 15 and 16 October 2024. The project team is open to new project partners who are interested in innovative approaches to risk management in order to jointly develop further progress and practical solutions.

Image: Adobe Stock / it-logix.ch

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