Untitled Document
 
 
 
 
  March 2000:
Magnus Wennerholm, Vice President Marketing General Manager
 

 

       
 

Q: You've been with Carmen for a year now. What are your impressions so far?
A: That the market is in a transition period where demands are increasing dramatically. Airlines create Operation Control Centers where Fleet, Crew and Yield management are brought together. The planning process is seen less as a step by step process than than a number of parallel functions where interaction and feedback between the systems are crucial.

Q: How does this change demand on the suppliers?
A: It changes everything. The products must handle greater complexity, and demands on services, support and quality will increase. The "black box" concept will not work with the demand on flexibility. It is similar to what I experienced at Oracle. At the beginning of the 90s it was very much a benchmark decision for what database to use. Today it is a matter of service, functionality and fitting into the overall IT picture.

Q: So, what will happen to optimization?
A: The key challenge will be to handle greater complexity in less time. I expect that future benchmarks will have more to do with finding acceptable solutions very quickly instead of the "perfect" solution too late. If you can solve a new scenario in 5 minutes rather than 5 hours, it is not only 4 hours and 55 minutes that's saved. It could be the difference between having and not having the time to try it out. Without speed you end up with a perfect solution for the wrong problem.

Q: How do you see Carmen's position for these new challenges?
A: Deciding years ago to develop a rule and modeling language (Rave), for flexibility and simulation capabilities, was brilliant. Now it is the basis for target control, and integrated optimization between functions. It wasn't something planned ­ but then there's nothing wrong with being lucky! Focus is another issue. Carmen is by far the largest company that focuses totally on solving these issues. It has helped us establish a unique research team.

Q: What will be the pricing philosophy of Carmen's products in the future?
A: The important issue for our clients is the return on their investment. With the rental concept they know that the money spent is reinvested in new, improved products. We are not trying to make huge profits or pay dividends to shareholders. We want as much money as possible to bring even more value to our clients. With the rental agreement we have to prove ourselves every year. It's a bit like being married!

Q: What is your focus at Carmen?
A: My focus is on communication. Sometimes we do brilliant things but forget that they aren't brilliant until our clients actually experience their value. Sometimes we make mistakes and fail to inform our clients about the impact. Sometimes we just fail to listen. It all comes down to communicating. As we expand this will be even more important.

Q: Shouldn't you be focusing on sales?
A: I don't believe in having sales as a focus. Sales will always be the result of how well we execute our daily operation. If we focus on our clients' needs, sales come automatically. Sure, we could boost revenue short-term by ignoring our clients and focusing on new business. But to have healthy long-term growth we should never forget who is paying our bills.

 

"Without speed you end up with a perfect solution for the wrong problem."
 
 
   
Magnus Wennerholm
Vice President Marketing
General Manager