General Management

Interkulturelles Management

Medical Leadership

Finance

Real Estate

Informatics

## Der Markt für Elektrofahrzeuge

Das Marktvolumen in der weltweiten Automobilproduktion lag im Jahr 2023 knapp über 2.5 Billionen US-Dollar. Wobei Volkswagen (349 Mia. USD), Toyota (312 Mia. USD), Stellantis (205 Mia. USD), Ford (177 Mia. USD), General Motors (175 Mia. USD), BMW (168 Mia. USD), Mercedes-Benz Group (164 Mia. USD), Honda (141 Mia. USD), Hyundai (125 Mia. USD) und SAIC (103 Mia. USD) die umsatzstärksten Hersteller waren.

Der Markt für Elektrofahrzeuge wird 2024 auf über 540 Milliarden US-Dollar geschätzt, über die Hälfte aller Elektrofahrzeuge werden in den USA und in China (gefolgt von Deutschland, Frankreich und Norwegen) abgesetzt. Weltweit führend ist dabei der chinesische Hersteller BYD (2.9 Mio. verkaufte Fahrzeuge), gefolgt von Tesla (1.8 Mio.) und BMW (0.5 Mio.). 

## Eine Vision für die Zukunft

NIO wurde mit der Vision gegründet, die Mobilität der Zukunft zu revolutionieren. Das Unternehmen fokussiert sich auf Elektrofahrzeuge, die nicht nur umweltfreundlich sind, sondern auch durch innovative Technologien und ein ansprechendes Design überzeugen. NIO positioniert sich als Premium-Marke und zielt auf eine wohlhabende Kundschaft ab, die Wert auf Qualität und Leistung legt. 2023 lag der Umsatz von NIO bei 8.5 Milliarden US-Dollar.

## I﻿nnovative Technologien

Ein herausragendes Merkmal von NIO ist die Entwicklung von Batteriewechselstationen. Anstatt die Batterien in den Fahrzeugen aufzuladen, können NIO-Fahrer:innen ihre leeren Batterien in wenigen Minuten gegen voll aufgeladene austauschen. Dieses Konzept hat das Potenzial, die Reichweitenangst zu verhindern, die viele potenzielle Elektroautokäufer:innen plagt. Darüber hinaus investiert NIO in stark autonomes Fahren und künstliche Intelligenz, um seinen Fahrzeugen fortschrittliche Funktionen zu verleihen. 

## M﻿arkteintritt und Expansion

N﻿IO startete seinen Verkauf in China, wo die Nachfrage nach Elektrofahrzeugen aufgrund staatlicher Anreize und eines wachsenden Umweltbewusstseins stark ansteigt. Das Unternehmen hat sich schnell einen Namen gemacht und konnte in kurzer Zeit eine treue Kundenbasis aufbauen. Mit sechs Modellen hat NIO eine breite Palette von Fahrzeugen entwickelt, die unterschiedliche Bedürfnisse und Vorlieben abdecken. 

I﻿m Jahr 2021 wagte NIO den Schritt auf den europäischen Markt, beginnend mit Norwegen, einem der führenden Märkte für Elektrofahrzeuge. Diese Expansion zeigt das Bestreben des Unternehmens, seine Präsenz über China hinaus auszubauen und sich als globaler Akteur zu etablieren.

## H﻿erausforderungen und Zukunftsperspektiven

N﻿IO hat sich auch der Nachhaltigkeit verschrieben. Das Unternehmen verfolgt eine umweltfreundliche Strategie, die nicht nur die Produktion von Elektrofahrzeugen umfasst, sondern auch die Entwicklung von Recyclingprogrammen für Batterien. Diese Initiativen sind entscheidend, um den ökologischen Fussabdruck zu minimieren und das Vertrauen der umweltbewussten Verbraucher:innen zu gewinnen.

I﻿n der Zukunft plant NIO, seine Produktpalette weiter auszubauen und neue Modelle zu entwickeln, die den unterschiedlichen Bedürfnissen der Kund:innen gerecht werden. Das Unternehmen hat auch angekündigt, in die Entwicklung von Wasserstofftechnologie zu investieren, um eine breitere Palette von umweltfreundlichen Fahrzeugen anzubieten. 

## W﻿as wird anhand dieses Cases aufgezeigt?

N﻿IO ist ein faszinierendes Beispiel für einen modernen Automobilhersteller, der sich in einem sich schnell verändernden, kompetitiven Markt mit sehr hohen Eintrittsbarrieren und Investitionskosten behauptet. Mit einer klaren Vision, innovativen Technologien und einem starken Fokus auf das Gesamtkundenerlebnis hat das Unternehmen das Potenzial, eine führende Rolle in der globalen Automobilindustrie, insbesondere im Luxussegment, zu spielen.

Anders als seine Konkurrenten versucht NIO ein ganzheitliches Kundenerlebnis zu schaffen. Dafür hat NIO im Vergleich zu traditionellen Herstellern auch ein direktes Vertriebsnetz und eine starke Community aufgebaut. Die kundenzentrierte Herangehensweise zeigt sich auch im Ökosystem, das NIO über die letzten Jahre aufbauen konnte. Neben den Elektrofahrzeugen gehören dazu die austauschbaren Batterien und die dazugehörigen Batteriestationen, Community-Events und zahlreiche Lifestyle-Services.

Die Herausforderungen, denen NIO gegenübersteht, sind nicht zu unterschätzen. Einerseits möchte NIO international wachsen. Hier muss das Unternehmen in bisher unbekannten Märkten ähnliche ganzheitliche Kundenerlebnisse bieten können und lokale Communities aufbauen. Andererseits stellt die Bereitstellung einer weltweiten Batterie-Wechselstations-Infrastruktur eine grosse Herausforderung dar, da hauptsächlich das Luxussegment bedient wird. 

Die nächsten Jahre werden entscheidend sein, um zu sehen, ob NIO seine globalen Expansionsambitionen im Luxussegment verwirklichen kann und ob es gelingt, sich als einer der Hauptakteure im Bereich der Elektrofahrzeuge zu etablieren.

I﻿nsgesamt zeigt der Fall von NIO, wie wichtig es ist, in einer sich schnell verändernden Branche flexibel und anpassungsfähig zu bleiben. Die Automobilindustrie steht an einem Wendepunkt und NIO könnte eine Schlüsselrolle in der Gestaltung der Zukunft der Mobilität spielen.   

## S﻿ind Sie interessiert am Thema Strategisches Management?

Strategisches Management ist die zentrale Aufgabe der Unternehmensführung. Unser gleichnamiger [Kurs](https://execed.uzh.ch/de/management/module/strategie.html) führt in die Grundsätze, Konzepte und Instrumente des strategischen Managements ein und soll zukünftigen Manager:innen das Verständnis des internen und externen Umfelds eines Unternehmens, die Wettbewerbspositionierung, das Schaffen und Erhalten von Wettbewerbsvorteilen, die Strategieformulierung  und -umsetzung vermitteln. Anhand von Praxisbeispielen und Fallstudien haben die Teilnehmenden die Möglichkeit, das erlernte Wissen direkt an realen Unternehmensbeispielen, wie dem oben vorgestellten Fall von NIO, anzuwenden. 

[H﻿ier](https://execed.uzh.ch/de/management/module/strategie.html) finden Sie weitere Informationen zum Kurs "Strategisches Management". Der Kurs ist anrechenbar an die Studiengänge [CAS in General Mangement](https://www.executive-education.uzh.ch/de/management/studiengaenge/generalmanagement.html), [CAS in Leadership](https://www.executive-education.uzh.ch/de/management/studiengaenge/leadership.html) und [DAS in Unternehmensführung](https://execed.uzh.ch/de/management/studiengaenge/unternehmensfuehrung.html).

Zudem bietet auch unser [Executive MBA](https://www.emba.uzh.ch/de.html) Studiengang ein Modul zu Strategischem Management.

Weiter wird auch im Kurs "[Future Business Models](https://www.finance-weiterbildung.uzh.ch/de/programs/single-courses/future-business-models.html)" der spannende Case von NIO diskutiert.

Business Administration: General Management & Zentrale Dienste

In den letzten Jahren hat sich die Automobilindustrie rasant verändert. An der Spitze dieser Transformation steht NIO, ein chinesischer Hersteller von Elektrofahrzeugen. Gegründet im Jahr 2014, hat sich NIO schnell zu einem der führenden Akteure im Bereich der Elektroautos entwickelt und bietet eine spannende Fallstudie über Innovation, Marktstrategien und die Herausforderungen der globalen Automobilindustrie.

NIO: Der Aufstieg eines chinesischen Elektroautoherstellers

## A new milestone: science and practice in harmony

With its integration into the University of Zurich in 2009, [CUREM](https://www.curem.uzh.ch/de.html) took an important step towards raising the quality of real estate management training to an even higher level. UZH was the first university in Switzerland to offer a Master of Advance Studies in Real Estate. To this day, the program brings together the most renowned experts from Switzerland and abroad as lecturers. The Center is now looking forward to the next phase of its development: with the new professorships, CUREM is building a bridge between excellent research and practice-relevant further education. This is an important moment for CUREM and the entire Swiss real estate industry.

## New impetus for research: Prof. Dr. Christian Hilber and Dr. Francisco Amaral

The newly created professorships will be held by two outstanding academics, both of whom have in-depth expertise and international recognition in their fields. The professorships are based at CUREM and the Department of Finance at the UZH Faculty of Business, Economics and Informatics. 

**Prof. Dr. Christian Hilber** (pictured above right), who is taking up a part-time professorship ad personam (20%) at the University of Zurich, is an internationally renowned real estate economist and Professor of Economic Geography at the London School of Economics (LSE). His research focuses on housing supply and urban development, topics that are also highly relevant in Switzerland. *“It is a particular pleasure for me to be able to contribute my experience in Zurich. Switzerland is facing major challenges in the area of housing policy, and I am convinced that together we can develop solutions that are both economically and socially sustainable,”* says Prof. Hilber. In addition to his academic work, Prof. Hilber has extensive consulting experience for governments and international organizations such as the OECD and the Asian Development Bank.

**Dr. Francisco Amaral** (pictured above left) will join the University of Zurich as Assistant Professor (100%) in October 2024, bringing with him extensive expertise at the interface between financial and real estate economics. His research focuses on the question of how risk and return develop on the housing markets under different macroeconomic conditions. *“In Switzerland, as in many Western countries, the housing market plays a central role in the financial stability and well-being of society. In order to develop effective and sustainable measures to make the housing market more resilient and affordable, it is important to understand which factors influence the risks and returns in this market,”* says Dr. Amaral, who completed his doctorate at the University of Bonn.

## Support from strong practice partners

These important academic positions were created thanks to donations from three leading companies in the real estate industry: EBP, UBS and Wüest Partner. The motivations of the three funding partners show how important building bridges between academia and practice is for the further development of the real estate sector.

<br/>

*"We are committed to sustainable development. Accordingly, it is particularly important to us to create innovative and viable solutions for the challenges in the real estate sector and spatial development. In addition, the two professorships make it possible to build a bridge between science and practice and to further strengthen the training of qualified specialists. “*

**Matthias Thoma, CEO EBP**

<br/>

*"We want to play an active role in shaping change and the further development of the real estate sector. Through our partnership with CUREM, we are investing in the future of the real estate industry by supporting research and teaching at the highest level. In this way, we ensure that the next generation of professionals is well equipped to meet the complex challenges and opportunities of this important sector. “*

**Dr. Daniel Brüllmann, Leiter Real Estate DACH, UBS Asset Management**

<br/>

*"As experts in real estate valuation and consulting, we know how crucial sound knowledge is. We are interested in how real estate valuation methods will develop in the future and how strongly certain factors influence the development of real estate prices and rents. The new professorships are a strong signal that CUREM is a place where scientific excellence and practical relevance go hand in hand. "*

**Dr. Robert Weinert, Partner, Wüest Partner AG**

<br/>

## Zürich as a center for excellence in the real estate industry

The two professorships form the foundation for the further development of CUREM into a comprehensive center of excellence at UZH, which will be realized from the beginning of 2025. The future center of excellence will establish CUREM as a leading institution for real estate research and teaching in Switzerland and internationally. It will focus on four central areas: the promotion of research and knowledge transfer, cooperation with national and international partners, the further development of real estate management training courses and the transfer of knowledge in undergraduate teaching.

## ...learn more about CUREM - Center for Urban & Real Estate Management at the University of Zurich?

The Center for Urban & Real Estate Management (CUREM) offers practice-oriented continuing education, in-depth research and valuable networking opportunities in the real estate industry. Further information and the current range of continuing education courses can be found on the [website](https://www.curem.uzh.ch/de.html) of CUREM.

Real Estate & Urban Management

The Center for Urban & Real Estate Management (CUREM) and the Faculty of Economics at the University of Zurich are about to embark on an exciting new chapter. Since its foundation in 2003, CUREM has developed into a renowned address for continuing education in the real estate industry. Now, more than twenty years later, the center is taking another big step: from autumn 2024, two new professorships in the field of “Real Estate Economics & Finance” will be created with the support of three funding partners. This will not only further strengthen CUREM's scientific base, but also establish Zurich as a leading location for real estate economics research and teaching. 

First real estate professorships at the University of Zurich

## What was your main reason for choosing the MAS in Sustainable Finance?

I chose to attend the [](<>)[MAS in Sustainable Finance](https://www.finance-weiterbildung.uzh.ch/en/programs/mas/mas-sf.html) because the combination of finance, with its emphasis on economic principles and figures, and sustainability, with a touch of idealism, has always fascinated me. As we have seen in recent years, the concept of sustainable finance and its application sometimes exhibit flaws. But that’s what makes it so interesting for me. It has ultimately sparked my motivation to enrol in a program that allows me to gain an in-depth understanding of sustainable finance and use the skills acquired in my professional role. 

## What inspired you to choose this topic for your thesis?

In the courses "[Sustainable Development and Impact](https://www.finance-weiterbildung.uzh.ch/en/programs/single-courses/sustainable-development-and-impact.html)” and "[Sustainable Investing](https://www.finance-weiterbildung.uzh.ch/en/programs/single-courses/sustainable-investing.html)" at the University of Zurich, we learned about the aforementioned SDG financing gap and the immense amount of USD 4 trillion annually that is lacking to cover essential needs, especially in developing countries. This stands in complete contrast to the myriads of “sustainable” investment opportunities that have been issued during the last decade and have attracted trillions of USD. That divergence of capital flows was a puzzle to me, and I wanted to learn more about it and determine if there are ways to address it. 

## What methodologies did you use and what were the findings?

I evaluated whether investing in SDG financing gap-relevant investment funds yields improved risk-return ratios in diversified portfolios. This analysis was based on 40 constructed portfolios covering monthly fund returns from 2019 – 2023 and applying two distinct weighting methodologies. My findings suggest that adding a 5% share of selected impact funds to well-diversified portfolios increases the Sharpe ratio for half of the constructed portfolios. Especially, microfinance and small and medium-sized (SME) finance funds have proven to be well-functioning portfolio diversifiers, as they have reduced standard deviation in most portfolios. This indicates that the addition of investments relevant to the SDG financing gap could benefit risk-adjusted returns at the portfolio level, enticing both impact-oriented and traditional investors. 

## What is the conclusion and practical application of your thesis?

The conclusion of my thesis is that impact investing, specifically in SDG financing gap-relevant investment funds, can potentially play a significant role in bridging the underfunding of the Global Goals. By adding a minor share of selected impact funds to diversified portfolios, investors could not only achieve beneficial risk-adjusted returns but also contribute to the realization of the SDGs. However, it's important to note that high SDG ratings do not always guarantee impactful conduct. Therefore, investors need to exercise due diligence and consider multiple factors when making investment decisions. Overall, my thesis underscores the potential of impact investing as a tool for achieving both financial returns and sustainable development objectives. 

## What were challenges you faced during your thesis writing?

To stay focused on the narrowly defined topic and not get lost by covering too many other exciting aspects around the core part. I needed to maintain the perseverance required when it felt like it would never end. On top of that, before I started working on my thesis, my wife and I became proud parents of a son. This new setting proved challenging in many ways and resulted in a number of short nights. Thanks to the crucial support of my wife, Nora, who took care of so many other tasks during that period, I was able to dedicate the countless hours needed to bring everything on paper.

## Looking back, how has this program shaped your understanding and your perspective of sustainable finance?

The MAS in Sustainable Finance has significantly shaped my understanding and perspective of sustainable finance. Its strong practical orientation allowed me to immediately benefit from some courses and apply what I learned in my professional activities. Above all, I was able to acquire the necessary knowledge to critically assess sustainability in the financial sector. The exchange with classmates from various companies and industries was also invaluable, enriching my learning experience during the almost three years of the program.

## Thank you very much, Philipp Bamert!

Interested in learning more about Philipp Bamert's thesis? Read the [Executive Summary](https://www.executive-education.uzh.ch/static/ee-web-preview/images/uploads/summary.pdf). Further information about the MAS in Sustainable Finance can be found [here](https://www.finance-weiterbildung.uzh.ch/en/programs/mas/mas-sf.html).)

Philipp Bamert,43, works as a reporting analyst at LGT Capital Partners in Pfäffikon SZ and recently completed his Master of Advanced Studies (MAS) in Sustainable Finance at the University of Zurich. Here, he gives us an insight into his final thesis, for which he conducted a detailed analysis of the financing gap for the Sustainable Development Goals (SDGs). He analysed how impact investing can potentially help to close this gap.

Philipp Bamert, MAS Sustainable Finance

## How did you get the idea to pursue continuing education?

I studied Business Administration at the University of Applied Sciences for my Bachelor's and Master's degrees and then looked for further education at university level. The [MAS Finance](https://www.executive-education.uzh.ch/static/ee-web/en/offers/mas_finance/) programme at the University of Zurich quickly caught my eye. I asked the finance team whether it would be possible for me to take part in the programme alongside my ice hockey career. They then drew up a customised plan for me. This meant I could continue to play on the ice alongside my studies. 

## Why did you choose the MAS Finance?

I've always had a flair for and a great interest in finance and figures, even during my studies. That's why I joined Swiss Life in project controlling. My current job in Strategy is also in the area of finance. I was also impressed by the wide range of topics available on the MAS Finance programme. I was particularly interested in those modules that have points of contact with the insurance industry, such as [Future Business Models](https://www.finance-weiterbildung.uzh.ch/en/programs/single-courses/future-business-models.html) or [Insurance for Development](https://www.finance-weiterbildung.uzh.ch/en/programs/single-courses/insurance-for-development.html). For these reasons, I decided in favour of the MAS Finance, which I am still very happy about.

## What did you particularly like about the programme?

Firstly, I liked the numerous options available. Based on my profession and interests, I was able to put together a degree programme that was perfectly suited to me. 

Secondly, I was very pleased to meet so many exciting and different people from very different fields of work. Because I come from a sporting background and have only been working in the professional world for three years, so to speak, I lacked a view from outside the insurance industry. Thanks to my fellow students, who have worked for the federal government or in banks, for example, I now have this perspective. I found this very exciting and enriching for my own professional career.

## What was the biggest challenge of the programme?

It was a challenge for me to juggle work, family and further education. However, with good organisation and support at work and in my private life, anything is possible.

## W﻿hat are you key takeaways from the MAS?

I really liked the whole topic of corporate finance, I was able to take a lot from it for my understanding of the financial world and its interrelationships. I really liked the fact that current topics, such as the current banking crisis, were taken up and discussed straight away and not just going over old material, because the world of finance is changing very quickly. I found it extremely exciting to discuss this with experts.

## What will you remember most from this time?

I thought it was great to get to know the University of Zurich and to be a part of it for four years. It was great to have a coffee or a beer with the professors and talk about business and private matters or exchange different views. Getting to know the many people and their stories and experiences was very valuable for me and I will always remember that fondly. I also think it's great that I'm still in contact with some people.

## Is there a topic in Finance in which you could acquire more knowledge?

I was particularly interested in the M&A topics and I would like to take what I learnt in these areas with me and implement and deepen it in the insurance industry. The fact that experts from the industry gave the lectures made it particularly exciting for me.

## What did you gain from the programme?

It has brought me a lot on various levels. On the one hand, on a human level, as I got to know a lot of people from different sectors. This also benefits my employer. Because in the area of strategy, where I work, it's extremely important to know what's going on with the banks and the other big players on the market.

On the other hand, the specialised knowledge I have acquired has of course also helped me. I can take a lot from topics such as corporate finance for my job, for example when it comes to KPIs and their interpretation for the insurance industry.

Basically, I believe that continuing your education is always a good thing. If you set yourself a goal and achieve it with a lot of discipline, it's an incredibly good feeling.

## Would you recommend the MAS Finance and if so, to whom?

Yes, absolutely, I would recommend it to anyone working in the financial industry. Continuing your education at a very high level, receiving input from experienced lecturers and at the same time continuing to work in your profession is a perfect match. I am also extremely grateful to my employer, Swiss Life, for making this experience possible.

## How would you describe your experience with the UZH Finance Executive Education team? 

I found the team to be very professional, very approachable and super organised. I always felt very well prepared thanks to all the tools and information we were provided with. Communication was also exactly as you would want it to be; solutions were always sought and presented for any questions or problems.

## And right at the end: Which is more strenuous - a hockey season or a semester of MAS Finance?

There were always ups and downs during the season and the semester, I think that's part of it. I certainly knew my way around the skates a bit better and knew from experience that things go up again after a low point. I still had to learn that in the MAS. But in both sport and studying, it's possible to achieve something as part of a team, which makes both very exciting and worthwhile.

## T﻿hank you very much, Lukas Flüeler!

(﻿[Here](https://www.executive-education.uzh.ch/static/ee-web/en/offers/mas_finance/) you will find more information about the MAS Finance.)

Lukas Flüeler, 35, works as a Strategy Manager at Swiss Life and lives in Bern. The father of two is well known to all Swiss hockey fans: As a former ZSC goalkeeper, he can look back on a 15-year career with four championship titles. He can now also boast another success: the completion of the MAS Finance programme at the University of Zurich. Thanks to a customised study plan and a great deal of discipline, he was able to successfully complete the course while working full-time - first on the ice and then in the office at Swiss Life. He particularly appreciated the personal contacts and the broadening of his horizons that he gained from his fellow students.

Lukas Flüeler, MAS Finance

A football match in the top European leagues generates over three million data points. On the one hand, optical tracking systems in the stadiums automatically track each player and the ball 25 times per second. On the other hand, trained operators manually collect approximately 1,700 on-ball events such as passes, shots, dribbles and tackles. Performance evaluation of teams is one important area in which this plethora of data can add value for decision-making. Because: Key outcomes in football, like goals and match results, are notoriously unreliable performance measures. 

## T﻿he league table that never lies?

Goals are exceptionally rare events in football. On average, approximately 2.7 goals are scored per match and matches are regularly decided by a single goal. As a consequence, the random component in a match result is substantial. However, only the match results count for the league table ranks. How likely is it therefore that the league table accurately reflects the strength of all teams when the role of luck is considerable? Quite unlikely. To be reasonably confident that the table does not «lie» in this regard, each team would have to play much more than the traditional 38 games per season.

## U﻿sing detailed data as a "lie detector"

The right choice of detailed football data can help to evaluate a team‘s performance more accurately. While many performance metrics have been proven to be widely useless (e.g. distance covered by a team or the number of crosses played), focusing on shots has been promising. Shots are positively correlated with goals and occur much more often. However, because some shots are better than others, each shot must be assigned with a scoring probability. This is the intuition behind the «expected goals» (xG) metric, which gained importance in recent years. The scoring probability of each shot is typically estimated based on the position on the pitch (distance and angle), rule setting (open play, free kick, penalty kick), body part, defensive pressure, and goalkeeper position. These estimates can then be aggregated into xG for each team and match to reflect a performance evaluation metric that is less prone to randomness. 

While this approach is not without limitations, it is very useful to detect «lies», i.e., situations in which good and bad luck played a considerable role in determining match results. Moreover, xG are merely the starting point of a more process-oriented performance evaluation in football. Instead of only evaluating shots, one could evaluate all on-ball events using «expected possession value» models for which tracking data become highly relevant.

## W﻿hy is a "lie detector" useful?

Football clubs and fans are primarily interested in match results and the rank in the league table. This likely leads to outcome bias in the performance evaluation of decision-makers, where the role of good and bad luck in match results is underestimated. Thus, being informed about «lies» in match results helps to avoid many mistakes such as dismissing the coach due to a string of bad luck or changing the strategy of play even though it is not warranted. Outcome bias is a far-reaching phenomenon, and luck in key outcomes is regularly mistaken for skill. 

The resulting implications for performance evaluation extend beyond football: Not only in sports, but also in business and industry, individuals as well as companies can therefore improve their decisions by incorporating data-driven «lie detectors» in their evaluation of past decisions or performance.

Text: Prof. Dr. Raphael Flepp (Assistant Professor of Sports Data Based Management and Economics)

Source: Oec. Magazine issue #18

Nowadays, sports clubs employ entire teams of data analysts. Their analyses help to uncover bias in the performance evaluation of decision-makers – and are therefore crucial for game strategy, the transfer of players or the dismissal of coaches. Text: Prof. Dr. Raphael Flepp

Luck vs. skill –  the role of sports data analytics  

In the current issue you will find summaries of the ten best final theses of the MAS Real Estate 2022/2023. The publication offers you quick access to the latest findings in the fields of **real estate investment**, **real estate** **portfolio and asset management** and **project development**.

[Here](https://vdf.ch/immobilienwirtschaft-aktuell-2023-e-book.html?hrsg_org_id=3093) you can order the book or download the free eBook.

The publication *Immobilienwirtschaft aktuell* appears annually and is published by the Center for Urban & Real Estate Management (CUREM).[Center for Urban & Real Estate Management (CUREM)](https://www.curem.uzh.ch/de.html).

**About CUREM**

CUREM is part of the Faculty of Economics at the University of Zurich and is dedicated to real estate research and continuing education. Its aim is to promote a professional real estate industry in Switzerland. In addition to the RICS-accredited, part-time "[Master of Advanced Studies in Real Estate](https://www.executive-education.uzh.ch/static/ee-web/de/offers/mas_real_estate/)" and the "Certificate of Advanced Studies in Urban Management", CUREM organizes various compact courses, expert workshops and specialist events.

Groundbreaking impulses for the Real Estate industry

"Immobilienwirtschaft aktuell 2024" (in German)

I magine a typical Tuesday afternoon at work. As you work to cross an important item off your to-do list, a member of your team knocks on your office door to ask a question. Ten minutes later, just as you are getting into the flow of the task again, another colleague pings you on Teams to give you an update on a joint project. Just five minutes after that, the next knock happens already – leaving you wondering when you’ll ever actually get to work toward crossing off your goal from your list. 

This kind of scenario may be all too familiar. The modern work environment is full of interruptions that impede progress towards individual goals, causing feelings of lost productivity and frustration – maybe even with well-meaning team members. But while team members can contribute to these interruptions, they also help a person’s productivity toward their own goals by providing feedback, helping resolve roadblocks, and offering morale boosts. 

A team of UZH researchers – including Alexander Lill, André Meyer, and Prof. Thomas Fritz from the Department of Informatics and Prof. Lauren Howe from the Department of Business Administration, along with Prof. Gail Murphy from the University of British Columbia – explored how mindsets can be shifted to encourage team members to perceive their team as supporting individual productivity. In a study with software development teams at
a multinational company, participants were asked to report their feelings of productivity each day. Then, they began a reflection exercise that prompted participants to consider how their team contributes to their productivity
by answering the question “How does your team help you to be productive?” in the daily surveys.

This exercise related to 1.7% higher perceptions of daily productivity on average, with participants reporting up to an 8.8% boost. Participants reported that this reflection led them to be more aware of what everyone is doing for the team, and they began to view their efforts to help the team as productive. However, results depended on initial team cohesion. For teams with high initial cohesion, the exercise further strengthened positive team feelings
and productivity. But in teams with low cohesion, the exercise backfired, potentially undermining both cohesion and productivity.

The research shows how workers can rethink productivity to increasingly recognize the role that other people, like team members, play in helping them to be productive at their jobs. Productivity is not a solo act, but  a multiplayer game.

R﻿ead the [whole study](https://dl.acm.org/doi/10.1145/3610184).

T﻿ext: Lauren Howe

Source: Oec. Magazine issue #20

Business Administration: EMBA

Research by UZH Professors Thomas Fritz and Lauren Howe suggests that contemplating "How does your team help you to be productive?" helps workers recognize their team's contribution to their productivity, rather than undermining it. Text: Lauren Howe

Rethinking Productivity with a Team Mindset

## Prof. Scherer, why should companies pursue CSR?

Today, the assumption of social responsibility by companies is "taken for granted". The question is therefore no longer whether companies should take on social responsibility, but what exactly they should and can do about it. Due to their resources (i.e. knowledge, people, capital, relationships), companies have a key role to play in tackling social and ecological problems. In addition, compared to state actors, they can also act beyond national borders.

## What problems do companies face?

In an environment of rapid social and technological change, new problem areas are constantly emerging in which companies and their responsible commitment are required without their behavior already being sufficiently pre-regulated by laws or regulations. Public discourse is constantly renegotiating how social problems should be addressed by state, private and civil society players and how they should be tackled based on a division of labor.

## What issues do companies face with regard to CSR?

These could be questions like these, for example: What responsibility do companies have for the physical and mental health of their employees and that of their suppliers or customers during the corona pandemic? How can and should this responsibility be exercised? What responsibility do companies have in the wake of the war in Ukraine? Towards business partners, customers, employees in Ukraine and Russia? How can and should this be perceived? The examples show that there is no ex ante defined answer to each of these questions, but that they must be developed in social discourses involving the various stakeholders. Companies must create suitable structures and processes and develop the ability not only to react appropriately, but also to act proactively with regard to latent or emerging problem areas.

## What role does globalization play in this?

Today, many companies operate in heterogeneous institutional contexts with different political, legal and moral frameworks. Large parts of global value creation are outsourced to states with authoritarian or fragile regimes, i.e. they take place beyond the reach of democracy and the rule of law. We can therefore no longer assume that the law and moral expectations will channel the behavior of profit-oriented companies in such a way that its effects are beneficial to society and future generations. Closing these regulatory gaps is the task of "global governance", in which companies participate and define and enforce rules for the global economy either in the course of self-regulation or in concert with state and non-state actors such as NGOs and civil society groups.

## Which companies do you see as pioneers?

More than 10,000 companies are involved in the United Nations Global Compact (UNGC). They have assumed responsibility and voluntarily committed themselves to protecting human rights, enforcing social and environmental standards and fighting corruption within their sphere of influence, i.e. along the value chains that affect them and also outside their own company boundaries. The UN Global Compact sees itself as a learning platform on which companies can exchange experiences and contribute to institutional change, particularly in regions where state actors do not have the will or capacity to ensure compliance with minimum social and environmental standards. In this context, companies play an important steering role and (co-)develop solutions that must be tailored to the institutional and sector-specific contexts. The UNGC website provides a wealth of information on corporate best practices.

## What is the Faculty of Business Administration and Economics doing in the area of CSR?

The WWF is well positioned in the area of CSR and business ethics research. In terms of citations of relevant publications in scientific journals, UZH is one of the world's leading universities and business schools. In addition, our young academics researching these topics have developed into an "export hit" over the last decade and now hold professorships at top universities in Switzerland and abroad.

## And what about teaching?

In teaching, the WWF pursues a decentralized approach in which it is up to the lecturers and professors to integrate the topics of ethics and responsibility into the respective subject canon. This makes sense insofar as different ethical challenges arise depending on the subject area, e.g. in IT, marketing, accounting, banking, leadership or human resource management. Nevertheless, we are faced with the challenge of pooling existing capacities and expertise in order to achieve greater impact and even greater visibility. The Center for Responsible Finance, for example, is a step in this direction.

## What do you want for the future?

Another overdue step would be the creation of professorships with a dedicated focus on ethics and responsibility. This would enable us to focus more strongly on basic principles and methods, to supplement the existing canon of subjects in teaching and to acquire young, successful talent for the WWF, especially as these areas are currently where the music is being played and an above-average number of publications have been published in top journals with a high impact in recent years.

*(Prof. Dr. Andreas Georg Scherer holds the Chair of Fundamentals of Business Administration and Theories of Entrepreneurship at the Institute of Business Administration at the University of Zurich. In 2020, the University of Hamburg awarded him an honorary doctorate.)*

Text: Jennifer Zimmermann

Source: Oec. Magazine #17

### **.﻿..interested?**

Our compact course [Corporate Governance and Corporate Social Responsibility](https://www.finance-weiterbildung.uzh.ch/de/programs/single-courses/corporate-governance-and-corporate-social-responsibility.html) provides an overview and understanding of the tasks and objectives of the main players in corporate governance. Participants will learn how current environmental and social developments affect the existing corporate governance framework and its actors. Another focus is on the current development of the legal framework and regulation, the key drivers of any corporate governance framework.

COO & Finance

Prof. Andreas Scherer has been researching corporate social responsibility for years. In this interview, he reveals where the biggest challenges lie and why companies play a key role when it comes to CSR. Text: Jennifer Zimmermann

"CSR: companies play a key role"

### **Both of you are strongly engaged in shaping the «future of work». What does it actually mean?**

ELODIE LHUILLIER (EL): For us at Google, the future of work describes a change of work paradigms, influenced by technological, generational, and social shifts.

JOCHEN MENGES (JM): On the research side, we think that the future of work actually happens twice: Once today, in our heads – how we think it will happen and how we prepare. And then in reality – how these changes will actually play out.

### **So, how will the world of work change in the future?**

JM: There is a clear shift in how work has developed: from our hands to our heads to our hearts. That’s what the future of work will be about: What we as people do with our hearts when machines do what we used to do with our heads and hands. 

EL: By recentering on the heart, we move from a process-centered to a more human-centered approach to work, supported by technology.

### **Do these findings feed into research on the future of work?**

JM: There is a heavy focus on the technological developments and on macro policy questions. What’s been neglected is the question about the future of work in the here and now: What’s happening in people’s heads and how that relates to how they feel and what they do about the future of work. That’s the unique angle that we take at UZH.

### **Does this research have an impact on the practice of HR?**

EL: Yes, I think research insights come through in all industries and companies as they have to adapt to attract and keep talent. At Google, we base most of our people practices and processes on data and research. We stay very tuned to what’s happening in research and academia, and we have an internal People Innovation Lab that researches people topics.

### **Google invests a lot in people innovation. What is the benefit?**

JM: People innovation brings the scientific mindset to HR, a practice that is largely experience-based – you do what you think has worked. We want to create an HR practice that is evidence-based. That’s where a lot of innovation is going to happen in the future so that we can better understand how people can be their best at work, both from a wellbeing and a productivity side.

EL: People spend such a large part of their lives at work; that work should be an experience that contributes to their happiness, fulfillment, and health. That’s why we believe that a human-centered approach is key, and that research and innovation can help us address the challenges.

### **So, in a nutshell: What skills will be needed in the job market of the future?**

EL: With increasing automation, the focus will be more and more on those skills that are unique to humans, revolving around emotional intelligence, resilience, the ability to strive for self-improvement.

JM: We need STEMpathy – coined by Thomas Friedman in a New York Times article – i.e. both technical and socioemotional skills. How we combine both types of skills will determine the success of people in the future.

### **What should companies do to foster emotional intelligence?**

EL: Fundamentally, it’s about care and respect. Giving people a voice, listening to them, leaving room for emotions. By exposing ourselves more to emotions in a professional context, we will all become a little bit more fluent and increase our collective emotional intelligence.

JM: On the one hand, companies need to focus on emotional intelligence as an individual skill set that employees should have and be able to grow at work. On the other hand, and this is often lacking, companies should build a culture that encourages employees to use and show their emotional intelligence at work and that rewards employees for doing so. We thus need companies to develop into what I call «emotionally intelligent organizations».

### **Some people might be skeptical when  they hear about emotional intelligence. Why should they nevertheless invest in developing those skills?**

JM: Because it benefits them. If we’re better able to deal with emotions so that they can help us reach our goals, we are just better off : our well-being and happiness increase, and we’re better colleagues. Beyond that, evidence tends to show that emotional intelligence relates to job performance, creativity, sick days – to many of the things that matter in businesses and that turn into what we often call the hard results.

EL: Yes, absolutely. I see emotional intelligence as a foundation. Once you have this capability, you have the ability to recognize when you need to adapt or change.

### **How will this change the way we lead in the future?**

EL: Apart from getting things done, the developmental and emotional aspect of management will be important.
A good manager needs to create an inclusive, trusting team environment and show concern for the success and well-being of the team and its members.

JM: When it comes to leadership, two things matter: a concern for people and a concern for results. It’s really important that these dimensions work together instead of prioritizing one over the other.

### **A big change in our daily work life happened just recently due to the pandemic. What impact has it had regarding the future of work?**

EL: It accelerated the change and forced pretty much every industry to think about what the future of work
will look like.

JM: It also shifted attention towards the people-centered approach. On the one hand, technology allowed us to remain productive despite social distancing. On the other hand, it became clear that technology still
leaves a lot of human needs unfulfilled.

### **After almost two years of people working mainly remotely, will there still be a need for physical office sites in the future?**

EL: Well, we’ll need a refresh after the pandemic. The first thing will be to focus on why employees need to be in
the office. A lot of data indicates that the future of the office will be one of interaction and collaboration above all.
The other challenge will be to optimize hybrid types of work, to ensure that every employee can participate in a meeting, no matter where he or she works.

JM: The shift in work design from functional entities to socioemotional spaces will make the office of the future
very different. Spaces are now more thought of as environments that spark emotions to facilitate work. In a next step, we will also have to think about how to get that same kind of experience in the virtual format and ultimately how to blend the two.

### **So, in summary: How can companies prepare for the future of work?**

JM: I’d say, join the [HR Valley](https://www.leadthefuture.org/hr-valley), the people innovation ecosystem that we’re currently developing in Zurich . It will
bring businesses, academia, and others together to co-create the future by jointly working on it. Let’s bundle up and address this issue together – it’s too big for any company to solve alone.

EL: Listening to your employees is crucial: giving them a voice and hearing what’s working, what’s not. Thus, an individual company will learn but also benefit from other companies’ experiences through an open exchange about the challenges and how to tackle them.

### **And what can we do in our own lives to create our version of the future?**

EL: As an individual, I try to be comfortable with my emotions: being able to talk about them and handling them in a productive fashion. And as a mother, I’m trying to help my kids learn to embrace and deal with their emotions from a young age on so that they are able to interact with others in an emotionally intelligent way.

JM: The future is ours to create. We can all shape it, rather than simply await it, through the choices we make every day. Choices that relate to how we inform ourselves, critically think about and ultimately prepare for the future; how we endorse and invest into skillsets and values; and how we relate to, work with and lead others. When my children grow up, I hope that they will find themselves in a world of work that will have embraced the principles of emotional intelligence and that will enable everyone to do what we are best at as people: be human.

*(﻿Professor Jochen Menges holds the Chair of Human Resource Management and Leadership and serves as the Director of the [Center for Leadership in the Future of Work](https://www.leadthefuture.org/) at the University of Zurich. In his research, he focuses on the social dynamics between leaders and followers, and on the role of emotions and motivation in organizational life.*

*As Head of HR for Switzerland, Elodie Lhuillier is responsible for Google‘s HR strategy in Switzerland, with a strong focus on culture, diversity and dealing with unique people challenges locally. The Zurich office is Google‘s largest research and development site outside of the USA and employs over 4500 people of more than 85 nationalities.)*

T﻿ext: Tania Weinfurtner, Photo: Caroline Krajcir

S﻿ource: Oec. Magazine issue #16

When we talk about the future of work, we mainly focus on new technologies and tech-related skills. Prof. Jochen Menges from the University of Zurich and Elodie Lhuillier from Google Switzerland discuss why we should keep an eye on people, as well. Text: Tania Weinfurtner, Photo: Caroline Krajcir

From Head to Heart – Shaping the Future of Work

From automating routine tasks to improving decision making through advanced analytics, the uses of AI in the finance and accounting industry are diverse and have the potential to revolutionize the way these sectors work. According to a [report](https://www.mordorintelligence.com/industry-reports/artificial-intelligence-in-accounting-market) by Mordor Intelligence, the use of AI in the accounting industry is expected to grow by 33.5% annually between 2024 and 2029.  

What specific advantages does artificial intelligence offer and what tasks can it perform?  

1. **Automation of routine tasks:** AI can automate repetitive tasks such as data entry, invoicing and categorizing transactions. This not only saves time, but also reduces human error that can occur in manual processes.
2. **Real-time analysis:** With the help of AI, financial data can be analyzed in real time. This enables companies to react quickly to changes in the market and make informed decisions. By analyzing large amounts of data, trends can be identified at an early stage and appropriate measures can be taken.
3. **Fraud detection:** AI can help detect fraudulent activity by identifying patterns and anomalies in financial data. By using machine learning algorithms, suspicious transactions can be detected and investigated faster.
4. **Forecasting accuracy:** By analyzing historical data, AI can make accurate predictions about future financial results. These forecasts help companies to better plan their budgets and make strategic decisions.
5. **Improved customer service:** AI-powered chatbots can handle financial customer queries quickly and efficiently. By using Natural Language Processing (NLP), chatbots can answer complex questions and support customers around the clock, increasing customer satisfaction.

Artificial intelligence can take on many other tasks in the area of accounting and finance. These include, for example, the automatic classification of documents or the personalization of financial reports. AI can also support portfolio analysis, the identification of investment opportunities and the optimization of trading strategies.

Overall, AI offers numerous benefits to accounting and finance organizations by increasing overall efficiency, reducing errors and improving the accuracy of work - an advantage in a world where skilled workers are increasingly difficult to find. It also allows professionals to focus on those tasks that require higher problem-solving skills and cannot be automated.

Finance & Zentrale Dienste

Artificial intelligence (AI) has had a huge impact on accounting and finance in recent years and there are numerous ways in which AI can be used to good effect in these areas.

What are the benefits of using artificial intelligence in accounting and finance?

Prof. Dr. Claudio Tessone examines fraudulent practices such as wash trading and rug pulling. In wash trading, traders engage in bogus transactions by repeatedly buying and selling the same asset to each other at a progressively higher price, creating the illusion of demand for the asset. This can dupe outside investors into acquiring the asset for an overblown price. Tessone’s research has shown that wash trading is a widespread practice. “This is startling,” the blockchain researcher says, “because most perpetrators don’t even cover their tracks.” This means that a look at the blockchain would show potential buyers that the price was manipulated.

Another form of fraud is rug pulling. In this type of scam, investors are promised high returns if they invest in a crypto project. When enough money has been gathered, the project developers then abscond with all of the liquid funds, pulling the rug out from under the feet of the other investors and leaving them holding worthless shares (tokens) in the project.

Tessone finds it incomprehensible that many buyers and investors don’t do closer due diligence when they purchase digital securities. “They often are naïve and don’t understand that the transparency of the blockchain would enable them to see that they are getting conned.” Tessone is thus advocating for rules for the digital economy analogous to those governing the bricks-and-mortar economy. Switzerland already has such laws in place. “We need them worldwide,” Tessone says. At the same time, though, all of the laws on the books are useless if investors don’t prudently scrutinize who they are entrusting their money to. 

T﻿ext: Thomas Gull (editor UZH Magazine) / originally published on [UZH News](https://www.news.uzh.ch/en/articles/news/2024/Cryptocurrencies.html)

## M﻿ore information

[P﻿rof. Dr. Claudio J. Tessone](https://www.ifi.uzh.ch/en/bdlt/Team/Tessone.html)

[UZH B﻿lockchain Center](https://www.blockchain.uzh.ch/) 

## M﻿atching offer

[C﻿AS in Crypto Compliance](https://www.executive-education.uzh.ch/static/ee-web/en/offers/cas_crypto_compliance/)

Blockchain technology creates complete transparency in the trading of digital assets such as non-fungible tokens (NFTs) or coins. When a unique digital asset of that kind is sold, the transaction is recorded in a blockchain. Despite that, digital trading opens up a wide range of possibilities for fraud.

Fraud in the Digital Economy

## W﻿hat is it all about?

In today's fast-paced business landscape, the spotlight on companies extends beyond profit margins and the bottom line. Companies face a rising tide of expectations from their stakeholders on topics such as environment, people, and corporate governance, increasingly also with a view towards the strategic anchoring of these topics. Navigating this dynamic terrain is no longer a choice but a necessity for companies as the convergence of these elements becomes the cornerstone for every successful long-term business model.

Addressing this development and supporting companies in dealing with the evolving intertwined issues professionally, the University of Zurich’s finance executive education program is launching a [Certificate of Advanced Studies (CAS) in Stakeholder Management and Stewardship](https://www.finance-weiterbildung.uzh.ch/en/programs/cas/cas-stakeholder-management-and-stewardship.html). The curriculum for this course was developed together with the leading professional associations in the field, the Center for Corporate Reporting and exchange operator SIX.

<br/>

*“This CAS combines a unique combination of lecturers from Academia and industry, offering participants insights into the conceptual thinking behind the various stakeholder topics as well as experience reports on the implementation of different approaches."*  

**Dr. Christoph Wenk Bernasconi, CAS Program Lead**

<br/>

## S﻿tructure

Starting from the most established corporate dialogue on financials, the [CAS](https://www.finance-weiterbildung.uzh.ch/en/programs/cas/cas-stakeholder-management-and-stewardship.html) modules, which can be booked individually, expand to increasingly strategically relevant discussions and engagements on board structures, compensation arrangements, climate change impacts, and biodiversity considerations with stakeholders such as institutional investors, employees, customers, NGOs, or governments, all within a constantly evolving legal and regulatory framework.

The [CAS](https://www.finance-weiterbildung.uzh.ch/en/programs/cas/cas-stakeholder-management-and-stewardship.html) makes use of the University of Zurich’s broad offering of disciplines to provide participants with cutting-edge research from the University and ETH Zurich on topics such as business administration, communications, earth sciences, finance, legal, media or public sphere and society. Combined with hands-on views from industry experts, this program not only provides participants with the background knowledge of the stakeholder topic, but also offers guidance on how to implement it.  

<br/>

*“The dialogue with stakeholders is a central element of a listed company’s sustainability efforts. Participants will learn best practices on stakeholder engagement, with a particular focus on the key topics discussed in our [SIX Sustainability Handbook](https://www.six-group.com/en/products-services/the-swiss-stock-exchange/site/investor-relations-handbook.html). This program is a natural next step in our efforts to increase transparency on sustainability matters.”*  

**Vera Sokulskyj, Head Issuer Relations, Primary Markets, SIX Swiss Exchange**

<br/>

## T﻿arget group

The [CAS](https://www.finance-weiterbildung.uzh.ch/en/programs/cas/cas-stakeholder-management-and-stewardship.html) is targeted at professionals working in the field of investor relations, communications, sustainability, finance and legal and shall establish a comprehensive, structure education program for the Swiss market. The first modules will start in August 2024.

<br/>

*"The Center for Corporate Reporting (CCR) has built an international network of experts to support member companies in line with its mission “Enabling Stakeholder Excellence and Value Creation”. The CCR is convinced that interdisciplinary teamwork across functions and hierarchies coupled with integrated thinking is needed to meet today’s challenges of the transformation to a sustainable economy. Therefore, we support the new CAS of UZH since it provides inspiration and tools to meet increasing and diverse stakeholder requirements."* 

**Reto Schneider, Founder, Center for Corporate Reporting** 

<br/>

## I﻿nterested?

[M﻿ore information](https://www.finance-weiterbildung.uzh.ch/en/programs/cas/cas-stakeholder-management-and-stewardship.html) on the program.

[A﻿pply now!](https://www.finance-weiterbildung.uzh.ch/en/registration.html)

Developed with SIX and Center for Corporate Reporting

New program: CAS in Stakeholder Management & Stewardship 

The history of Bitcoin, the first successful cryptocurrency, begins with a white paper-cum-manifesto: in October 2008, a certain Satoshi Nakamoto published a 9-page academic paper titled Bitcoin: A Peer-to-Peer Electronic Cash System, in which he explains how a new, electronic currency that enables direct payments between users without involving banks as relay stations could work. “Satoshi wanted to end governments’ and banks’ monopoly on currencies and monetary transactions,” Claudio Tessone explains, adding, “Instead of them being centrally organized and controlled, Satoshi’s idea was to create and oversee currencies and their value ‘democratically.’ This was an anarcho-capitalist concept: the market should regulate itself without state intervention.” Tessone is a professor of blockchain and distributed ledger technologies at UZH. He researches the economic incentives for cryptocurrencies and the blockchain technology that makes them possible.

## Fostering trust

Satoshi Nakamoto, whose true identity is unknown, put his money where his mouth is and rolled out the Bitcoin software as an open-source code in 2009. He “mined” the first 50 bitcoins and set the rules on how to mine others. Mining is the process through which new bitcoins get minted and brought into circulation.

Nakamoto also defined what it takes to mine bitcoins: proof of work. In the realm of cryptocurrencies, “proof of work” means that participants, called miners, must prove that they have completed the computational work required to verify and validate a block of digital data records, a multiple of which make up a blockchain, and to add it to the existing blockchain as the next block. This work is essential to the blockchain because the blockchain consists of a ledger of all verified transactions. The gapless documentation of those transactions is designed to foster the necessary trust in Bitcoin and to supplant the faith that market participants typically place in institutions like central banks. Nakamoto phrased it this way: “What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.”

In the beginning, bitcoins were practically worthless. Software developer Laszlo Hanyecz went down in history as the person who conducted the first-ever commercial transaction using a cryptocurrency: he paid 10,000 bitcoins in exchange for two pizzas. That would have equated to a sum of more than 600 million US dollars at the peak of bitcoin’s all-time price high. Rumor has it that Hanyecz doesn’t regret his decision. His pizza purchase, in his view, was a crucial step toward establishing cryptocurrencies as a medium of exchange. 

## Few market participants left

In January 2013, the value of one bitcoin surpassed the USD 1,000 mark for the first time. A couple of booms and crashes later, one bitcoin today costs more than 30,000 Swiss francs. “My wife sometimes criticized me for not having bought any cryptocurrencies even though I’ve been studying and researching them for more than a decade now,” Claudio Tessone says. The crypto researcher attributes his personal reluctance toward cryptocurrencies to his aversion to risk. Moreover, and importantly, through his research Tessone is also familiar with the problems facing cryptocurrencies today.

Most cryptocurrencies have evolved quite differently than their founders intended, particularly with regard to the concept of decentralizing power and spreading it among as many participants as possible by involving many different actors in the minting of crypto coins. “What we’re seeing today is exactly the opposite,” Tessone explains. “Today there are only a few giant market participants left that are capable of mining new coins,” he says.

## Incumbents benefit more

Why is that? Given the growth of crypto systems, today it takes an enormous amount of computing power and thus an awful lot of computer hardware and energy to verify and validate data chains. That’s expensive and thus requires a lot of capital. A lone market participant with their computer therefore no longer has any chance of doing this work and earning the right to new coins.

This is why some blockchains require “proof of stake” instead of “proof of work.” Proof of stake requires less computational power, but favors incumbent market participants who already have a greater stake weight. The proof-of-work and proof-of-stake mechanisms both lead to a concentration of power in cryptocurrencies and blockchains. That actually ought to undermine trust because trust is based on collective control by stakeholders who have a mutual interest in everything operating fairly. “If there are only a handful of them left, why should anyone trust them?,” Tessone asks. “Especially if they’re anonymous,” he adds. Concentration of power is dangerous, the blockchain researcher says, because it’s an invitation to malfeasance. “That’s why laws are needed to regulate cryptocurrencies.”

How could it have gotten to this point? Tessone blames it on misplaced incentives. Since it was transparent from the start how to mine new coins, participants worked out how to exploit the system by, for example, acquiring massive computing power to produce proof of work. “Today in the crypto world we are observing the same phenomena that prevail in the real economy: for whosoever hath, to him shall be given, or in other words, the rich get richer,” Tessone says. Moreover, cryptocurrencies usually are not used as a means of payment. Most coins are hoarded as speculative assets.

## Something more useful

According to Tessone, the evolution of Bitcoin and other cryptocurrencies is an example of “what can go wrong despite the best intentions.” That certainly goes for Bitcoin, whose founder wanted everyone with a computer to be able to participate in it. Satoshi Nakamoto’s own thoughts about this are unknown. He issued his last public message in December 2010 on the Bitcointalk online forum and then disappeared without a trace in April 2011.

Do cryptocurrencies have a future? In his analytical research, Tessone has observed that some cryptocurrencies are trying to configure their respective systems in a way that doesn’t as richly reward concentration down to just a small number of participants. It remains to be seen whether that is enough to rectify systems’ current design flaws. Tessone sees the real value of cryptocurrencies lying more in the innovations they have spawned. “Those innovations could be applied to the broader economy to do something more useful,” the crypto researcher sums up.

Thomas Gull is editor of the UZH Magazin / Originally published on [UZH News](https://www.news.uzh.ch/en/articles/news/2024/Cryptocurrencies.html)on 07.02.2024.

## I﻿nterested in the topic?

Our[ CAS in Crypto Compliance](https://www.executive-education.uzh.ch/static/ee-web/en/offers/cas_crypto_compliance/) provides insight into blockchain regulation and blockchain forensics as well as a technical approach to crypto compliance.

Cryptocurrencies like Bitcoin were created to circumvent the monopoly on money held by nation states and central banks. The digital currencies were to function more democratically and be widely disseminated. But the opposite has happened, blockchain researcher Claudio Tessone notes. Text: Thomas Gull / Translation: Mark Rabinowitz / Photo: Jos Schmid

Mining Coins

## When did you first encounter the topic of “further education” or think about the topic?

I first thought about further education in the spring of 2014. At that time, I was already self-employed as a communications consultant. Since I was increasingly providing strategy and marketing services for my clients, it was time to gain new qualifications.

## Why did you choose an Executive MBA?

To be able to set new impulses, I needed entrepreneurial expertise. It should also be training at management level. The decisive factor for the [Executive MBA](https://www.emba.uzh.ch/en/) was the holistic teaching of core entrepreneurial topics as well as the reputation as the best management training.

## What reasons motivated you to complete your Executive MBA studies at the University of Zurich? Motivation?

I already knew the University of Zurich from my journalism studies. However, I also looked at other courses for the [Executive MBA](https://www.emba.uzh.ch/en/). I compared the lecturers, the image of the institution and finally the backgrounds of my fellow students. The EMBA ranking in the Financial Times also played a role. In addition to the University of Zurich, there were three other institutions to choose from at the end. Ultimately, the structure of the modules, the proximity to the office and family and the attractive Learning Expeditions spoke in favor of the UZH.

## What were your impressions during the training? Have your expectations of the EMBA been fulfilled? What do you see critically?

The [EMBA](https://www.emba.uzh.ch/en/) offered me a comprehensive insight into all areas of corporate management and placed the right focus for me as a management consultant in strategic management, corporate finance, and marketing. The insights into foreign markets such as Brazil, Africa and China were also instructive. My expectations were clearly fulfilled in that I now had the relevant tools for sustainable business strategies in my hand. However, I hoped for a little more from an interdisciplinary placement. A concrete “business plan” module in which several company specific aspects would have been considered at the same time would have been helpful.

## Can you already use the knowledge and experience imparted in your everyday professional life? What do you see as the benefit of your Executive MBA degree when you think about your day-to-day business?

The [EMBA](https://www.emba.uzh.ch/en/) program was crucial for me to develop from a communications consultant to a holistically thinking business consultant. The knowledge imparted is now a basic requirement for my work, which involves analyzing our clients’ problems, deriving measures from them, and implementing them.

## What was a particularly nice/special experience? What did you like especially?

The stays abroad in Yale University and Fudan University Shanghai remain unforgettable. While the focus at Yale was on education with “edutaining” speakers, Shanghai impressed with the dynamism of the city. The gala evening on the occasion of the annual briefing by the Swiss Ambassador to China, which took place in Shanghai in 2016, was, along with some very cool events with the class, the highlight of the entire [EMBA](https://www.emba.uzh.ch/en/) supporting program.

## Who would you recommend the EMBA UZH to?

The[ Executive MBA](https://www.emba.uzh.ch/en/) at the University of Zurich is management training at the highest level. I recommend it to managers who have a lot of initiative and can contribute the knowledge to their companies. Technically, the EMBA is aimed at people who would like to bring their business knowledge up to date and/or need to be prepared for working with other cultures and the challenges of digital transformation.

## T﻿hank you very much, Philipp Koller!

Philipp Koller is a business developer and owner of the STRATS Company on Grossmünsterplatz in Zurich. Together with specialists from various disciplines, he helps SMEs and start-ups develop and implement new business ideas. From strategy (Strats) to marketing and communication to visuals, STRATS covers all relevant aspects to (re)position companies in creative and innovative ways; flexible, pragmatic, personal. Before becoming self-employed, he worked in larger communications and marketing agencies, where the cumbersome overhead bothered him. Philipp Koller studied journalism, constitutional law and history at the University of Zurich and graduated with a Master of Arts (lic. phil.). He is married and lives in Zurich with his wife and four sons.

Philipp Koller, Executive MBA

## How was your start and your first impression?

As expected, the start in September was very intensive. I was able to hold important discussions with the university management, the Executive Board, the Faculty of Business and Economics, our professors and all employees. I also held talks with other faculties at the University of Zurich and, of course, gathered impressions from external stakeholders. My impression was very positive and I am particularly looking forward to working with an ExecEd team that is very open to new ideas and has great ideas for the future development of Executive Education.

## What impressed you the most?

Executive Education was founded as an institute just over two years ago. I am impressed that the team has shown a more than solid result in this short and very crisis-ridden period despite international and national challenges (pandemic). We can build on this and I am very positive about the future. I look forward to mastering the challenges ahead together.

## Where do you see the biggest challenges for the continuing education landscape and Executive Education?

We live in an increasingly complex world characterized by exponentially accelerating technological, economic and social change. These changes require additional skills in order to tackle and, in the best case, solve current and future problems. As part of the largest comprehensive university in Switzerland, at an internationally attractive and competitive location in Zurich, Executive Education at the Faculty of Business, Economics and Informatics can make a major contribution to closing these skill gaps. In order to accomplish this mission, we need to be courageous and lead the way, which is not a given in this day and age. There is a lot to do!

## Which new Executive Education offer are you particularly looking forward to?

Executive Education offers around 30 certification programs in the form of EMBA, MAS, DAS and CAS as well as over 60 courses in the areas of General Management, Finance, Information Technology, Urban & Real Estate Management, Intercultural Management and Medical Leadership. For example, we are the leading provider in Europe in the field of blockchain and rank 3rd worldwide. The Faculty of Business, Economics and Informatics at the University of Zurich has a unique constellation: we teach and research in the fields of management, economics, finance, informatics and computer science. This means that, unlike other universities, we can credibly offer interdisciplinary courses in executive education.

Specifically, I am looking forward to the CAS program in Generative AI, which will be offered from 2024. But also to the upcoming programs in the areas of entrepreneurship, leadership, stakeholder management, technology and innovation. In addition, the modular approach of our programs allows even more flexibility for our participants.

## Thank you very much, Jürgen Brücker!

Under the motto "Are we brave enough to achieve our goals?", Jürgen Brücker drew a positive balance after his first 100 days in office. The good conditions at Executive Education are a good foundation for further developing continuing education at the Faculty of Business, Economics and Informatics with the team and for growing together.

Jürgen Brücker, CEO Executive Education: 100 days in office

Dr. Daniel Fasnacht lectures at the University of Zurich on trends, digital transformation, disruptive technologies and business model innovations. In his third book on the subject, which was published by Springer Verlag in November 2023, he explains why ecosystems promote limitless consumption and why platform business models will become the leading management approach of the next decade. Does transformation go hand in hand with creative destruction, is it a dystopia or an opportunity? What does the future of work in the ecosystem look like and what do managers need to consider?

With a foreword by Selina Yuan, President of Alibaba Cloud, the book combines theoretical concepts with concrete examples from leading companies such as Alibaba, Tencent, NIO, Alphabet, Apple, Amazon and Migros to provide readers with guidance in the new economic paradigm.

Click [here](https://link.springer.com/book/10.1007/978-3-658-42494-7) for the book "Offene und digitale Ökosysteme: Mehrwert durch Branchen- und Technologiekonvergenz, Springer, 2023" (available in German).

O﻿ur compact course matching the topic: "[Financial Services Ecosystems](https://www.executive-education.uzh.ch/static/ee-web/en/offers/course_%20financialservicesecosystems/)".

Finance & Custom Programs

Open and digital ecosystems help to develop and provide products and services across organizational boundaries. Different technologies are combined, which promotes new and cross-sector value creation. 

Trend: Industry and technology convergence

What was the greatest benefit of this training for Dr. med. Christoph Aufdenblatten, Head of Medical System at Hirslanden Klinik im Park, Zurich, and why does he still benefit from it? You can find the answers in our video interview:

(Note: At the time of the interview, Christoph Aufdenblatten was Head of Pediatric Orthopaedics and Traumatology at the University Children's Hospital Zurich. Since October 2023, he has been Head of Medical System at Hirslanden Klinik im Park, Zurich. Congratulations on this career move!)

<iframe width="560" height="315" src="https://www.youtube.com/embed/9VJ0AfrOV5k?si=v5DsE9_Eawt_Xsdn" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>

## Would you like to learn more about this program?

For more information on the CAS in Medical Leadership click [here](https://www.medlead.uzh.ch/de.html).

Business Administration: Medical Leadership

"The CAS in Medical Leadership has ignited my passion for leadership topics!"

Dr. med. Christoph Aufdenblatten, CAS Medical Leadership

## What issues are currently affecting the real estate sector?

The market environment has changed with rising interest rates, which have altered the willingness to invest. Conditions on the construction market have become more volatile due to global political uncertainties, rising prices and supply bottlenecks. In addition, there are currently numerous issues surrounding sustainability. Buildings are major emitters of CO2 and gray energy and there is still some homework to be done here. There are many efforts in this area that are now slowly being implemented. And rightly so, because the industry has a great responsibility and must make its contribution.

## Is this awareness new?

There has long been an understanding of the issue of sustainability and there are innovative investors who consciously pursue sustainable goals. But it is very difficult to be specific here. In the end, it is the cost calculation that counts. And because CO2 and grey energy do not have a price - or not as high a price as they should - sustainability is sometimes simply a narrative that is served. There is movement on the topic, but implementation is rather sluggish.

## How did you come up with the idea of attending the "Placemaking" course?

[CUREM](https://www.curem.uzh.ch/de.html) covers exactly the topics that I deal with on a daily basis, which is why I went there to find out about further training opportunities. And the course "[Placemaking](https://www.executive-education.uzh.ch/static/ee-web/en/offers/placemaking/)" appealed to me, as I had recently dealt with this topic myself. We advised a developer who was building on a large site. The owners were thinking about how they wanted to use the first floor. They were asking themselves what offers needed to be created so that people who work on site have complementary and attractive usage options that radiate beyond the building and increase the attractiveness of the location. After all, the perceived attractiveness of a location also increases the value of a property - all issues that play into the topic of placemaking. For this reason, the course piqued my interest and I was excited to learn new background information on this topic.

## What did you particularly like about this course?

I found the composition and size of the group optimal, there were interesting people and there were many exciting discussions among the participants. The course leader and the speaker Hans Karssenberg were very committed. They provided good illustrative material and further documentation and organized several excursions. They were actively interested in the exchange and experiences of the participants. The course also addressed certain ideological issues, which I think are important to discuss and reflect on. Of course, putting these topics into practice is another matter. But I found it useful and very exciting to deal with them. Overall, it was a very varied and entertaining training course.

## What key takeaway do you have from "Placemaking"?

One term that I particularly remember is "flat facade disease". It means that there is often a tendency in the urban planning context not to create accessibility via the first floor of new buildings. Instead, the building is self-contained, which means that many opportunities for exchange, as an interface to the public space, are lost. And making the problem tangible with this term made a lot of sense to me.

## Can you apply the newly acquired knowledge in your professional activity?

Yes, of course. I don't have a specific placemaking project on the table at the moment, but I received a lot of information on the course and learned about tools that I can use for analyses, either as a guide or as a pool of ideas.

## Would you recommend the "Placemaking" course and if so, to whom?

"[Placemaking](https://www.executive-education.uzh.ch/static/ee-web/en/offers/placemaking/)" is particularly exciting for people who are thinking about project and neighborhood developments, i.e. who are looking for ways to actively shape and curate them. The course provides helpful impulses for this. The profitability analysis of place-making measures was somewhat neglected. I am therefore all the more pleased that we will be able to make a contribution to this with Wüest Partner at the upcoming course in spring 2024.

## Thank you very much, Rebekka Habegger!

(﻿[Here](https://www.executive-education.uzh.ch/static/ee-web/en/offers/placemaking/) you will find more information about the compact course "Placemaking".)

Rebekka Habegger is 35 years old, studied civil engineering at ETH Zurich and then worked for six years in the planning of building construction and infrastructure projects. She has been working as a senior consultant in real estate consulting at Wüest Partner in Zurich for almost two years. She is also a volunteer on the national board of the "Network Women and SIA" of the Swiss Society of Engineers and Architects, where she co-represents the Zurich regional group. The network connects and promotes working women in the construction industry. Rebekka Habegger attended the "Placemaking" compact course to gain new impetus for her professional work. (Photo: © Mali Lazell)

Rebekka Habegger, Placemaking

## W﻿hat is it all about?

Arming oneself against financial crises is a major challenge. What helped in the last crisis can hurt in the next one. For example, an investor got off relatively lightly in the crisis following "Black Thursday" on October 24, 1929, if he had invested primarily in government bonds. However, this strategy failed in the 1980s, when inflation soared. At that time, real estate was the better asset protection. Real estate, in turn, experienced a sharp decline in the following decade. These examples show: There is no one singular strategy that protects against crises. And crises cannot be systematically predicted, as science has shown.

## W﻿hat to do?

There is only one way to protect against crises: Diversification. On the one hand, diversification means "not putting all your eggs in one basket". Capital investments should be spread across different industries and regions. But diversification goes much further than that. Because in the financial markets, you can diversify not only financial portfolios, but also the risks of your own life. For example, a fintech entrepreneur can diversify the entrepreneurial risk in the financial markets with defensive investments outside the fintech universe. Or a family man can hedge his mortgage payment obligation in the financial markets. Depending on his or her life situation, an investor should manage credit, interest rate, equity and currency risks differently to diversify the risks of his or her own life and align investments with personal goals. If diversification is understood broadly in this way, it is a valuable means of arming oneself against crises.

S﻿ource: Oec. magazine issue #19

Alexandra Janssen is head of asset management at Ecofin Group and shows how a broad understanding of diversification in investing provides security in times of crisis.

How to invest in times of crisis?

## You did your PhD in environmental sciences at ETH. Where does your particular interest in biodiversity come from?

Biodiversity is a term that has only recently been widely used. My interest in biodiversity comes mainly from my enthusiasm for nature, which was also fostered by my parents. As a child, I used to browse through animal books and watch documentaries. I was always impressed by the many different species of animals there are to discover. In a way, I still do today: on my social media, I see lots of great pictures of insects, sea creatures, and cute little mammals. I also still learn about new species every day, for example the [tree-kangaroo](https://en.wikipedia.org/wiki/Tree-kangaroo), or I learn new things about species I already know.

## What led you to work in a bank and get involved in financial topics?

During my research work at ETH Zurich, we also had to collect study credits (ECTS) in areas outside the subject. I decided to take a course called "Climate Finance", which was offered at the time in the field of resource economics. There I learned how large financial institutions support climate-damaging projects with billions of dollars. At the same time, I was looking for a way to invest my own money without supporting such harmful projects. That was in 2018 and my search was mostly fruitless. That's when I realized that there is a lack of knowledge about sustainability in the financial world. So as an environmental scientist, I can do my part by looking for a job in this field.

## Why is biodiversity of any interest to finance at all?

The situation is easily explained, but the solution to it is not simple: Today's economic system, which aims at global growth, only works because we do not consider natural resources in our balance sheet. We don't think about how important ecosystems are and what good they offer us, such as clean water or fresh air. That's why we don't give them a concrete value. Financial institutions need to be aware of the projects they support that affect biodiversity and the risks this poses to other investments. For example, it could happen that the financing of project A affects the success of project B in the long term due to damage to the environment. It is fundamentally important to take a long-term view of the economy and align investments accordingly. This knowledge should be communicated more broadly.

## Where do you see the biggest challenges in the interplay between biodiversity and finance?

In the last three years, we have made very great progress in this area. Now it is a matter of linking all these efforts together and translating them into concrete projects.

There is a lack of consistent frameworks and standardized data and metrics. This means that companies are not incorporating biodiversity into planning, operations and reporting. This could be due to a lack of clear rules from the government or a lack of support from industry. Therefore, there are hardly any projects that promote biodiversity and are financially feasible at the same time.

## What changes need to be sought in this area and what milestones have already been achieved?

We have reached a major milestone with the [Global Biodiversity Framework](https://www.cbd.int/convention/), which was adopted by all UN member countries in Montreal in December 2022. Goal number 14 of this plan says that biodiversity should be integrated into national legislation and that financial support should be directed towards this plan. Target number 15 says that banks and large companies should disclose what risks and impacts they have on species diversity and vice versa. In the fall of 2023, a framework will be released by the [Taskforce on Nature-related Financial Disclosure (TNFD)](https://tnfd.global/), which is similar in structure to the framework of the existing Taskforce on Climate-related Financial Disclosure (TCFD). Right now, there are ten times more subsidies for biodiversity-damaging activities than biodiversity-enhancing expenditures worldwide. Goal number 18 therefore says that we should stop these subsidies and instead support projects that are good for nature.  

## What is your personal motivation at work?

For me, it is clearly a matter of bringing more funds into projects and companies that preserve, promote or regenerate biodiversity and nature in general. At the same time, the aim is to reduce or eliminate harmful products and their production. While we often look to governments when it comes to nature issues, it makes sense to invest in companies that are themselves active in this area with their products and services, especially today and in the coming years. Financial institutions such as [radicant bank ag](https://radicant.com/) can offer products that enable customers to make a contribution.

## What advice do you have for people who want to deal with this topic for the first time?

It is important to understand why biodiversity and nature are important to us humans and why we should care about them. Like a portfolio, nature's complex systems only work when they are diversified. In the end, we all need healthy food, fresh air and clean water. To that end, we are happy when our environment looks beautiful, when we are safe from avalanches and floods, and when we are resilient to droughts and storms. Healthy ecosystems allow us to enjoy all of this. Sometimes we feel it directly, for example, as a protective forest over a village or mangroves on a coast. In other places, we notice it less directly, as with the forests in the Amazon or the Congo Basin, which absorb a lot of CO2 and release oxygen, which is then distributed throughout the planet.

So when we "save biodiversity," we're basically ensuring that we ourselves can survive safely as well.

## Finally, can you tell us an exciting fact about biodiversity that will surprise us?

We are currently experiencing the sixth great extinction of species. The fifth happened 65 million years ago when a large meteorite hit and the dinosaurs became extinct. The sixth mass extinction is now happening because of us humans: WWF has written a report on this, the [Living Planet Report](https://livingplanet.panda.org/en-IN/). It says that vertebrate populations worldwide have declined by 69% since 1970, a decline of more than two-thirds. For animals that depend on fresh water, we are talking about a loss of 83%. In addition to man-made pollution and exploitation, and also because of the climate crisis, the loss is mainly because habitats are disappearing. [For example, if all people gave up meat and dairy products from cows and sheep, we would only need a quarter of the land currently used for agriculture worldwide.](https://ourworldindata.org/land-use-diets) I find that amazing.

That's why we urgently need to change the way we farm, and also adapt our behavior. It is important to consider which companies you want to work for, and whether they are helping or harming biodiversity. So is choosing which bank to have one's money with. Lastly, choosing how to eat offers one of the most direct ways to act in an environmentally friendly way and support biodiversity.

## Thank you very much, Dr. Philipp Staudacher!

(﻿Click here for the [course Biodiversity and Finance](https://www.executive-education.uzh.ch/static/ee-web/en/offers/biodiversity_and_finance/).)

Dr. Philipp Staudacher is a lecturer in the Biodiversity and Finance course. He studied environmental sciences at ETH Zurich and is now checking whether investments are achieving the sustainability goals at the digital Swiss bank radicant ag. He is a specialist in all topics where nature and biodiversity overlap with finance and investment.

Dr. Philipp Staudacher, expert for biodiversity and finance

## W﻿hat is it all about?

Hardly ever before has the shortage of labor in the Swiss economy manifested itself as much as in the recent past. Surveys of companies in almost all sectors show that this issue is one of the biggest obstacles to economic progress. At the beginning, it was mainly STEM professions that were affected. However, since the lifting of the most drastic Corona protection measures and the associated economic upswing, the bottleneck has manifested itself in practically all sectors and a large number of occupations. In addition to the healthcare and IT sectors, the construction and MEM industries are particularly affected.

What is also new is the extent of the staff shortage in the hospitality industry and the much greater impact on the industries as a whole. The main drivers of the labor shortage are demographic developments, high job growth and the comparatively low increase in the actual annual volume of work in Switzerland. There is widespread consensus that labor supply will not keep pace with labor demand in the future. Thus, it is assumed that there will be a shortage of about half a million workers over the next ten years.

## W﻿hat to do?

In principle, there are three ways to counteract the shortage of labor: In addition to better exploitation of the domestic labor potential, there is immigration from EU/EFTA and third countries as well as the complete or partial substitution of jobs through automation and digitization. Measures must be assessed in terms of their effectiveness, timeframe and social acceptance. For the Swiss Employers' Association, the priority is to better tap the domestic labor potential, although this alone is not sufficient. In addition, labor market-driven immigration from EU/EFTA and third countries remains essential to generate the necessary economic growth.

But companies themselves also need to rethink and become active: For example, they can increase their own attractiveness on the market by improving working conditions. For example, through flexible working, more and longer unpaid leave, family-friendly working conditions or an even more generous contribution to training and development costs. Overall, companies are also more willing to lower their requirements for potential employees and give them time to acquire the skills they lack in the company.

However, this usually only puts the company in a better position relative to its competitors. This only helps to alleviate the labor shortage in the economy as a whole if these efforts also lead to higher labor market participation by existing workers or those entering the labor market. Accordingly, the major levers for attracting workers in the medium term lie in politics. This can be done by improving the government's framework conditions. This includes, for example, higher incentives to work through taxation (e.g. abolition of the marriage penalty) or sufficient affordable third-party childcare options. The Swiss Employers' Association is committed to precisely such improvements.

S﻿ource: Oec. magazine issue #19

Simon Wey, Chief Economist of the Swiss Employers' Association and a sought-after expert on the subject of the shortage of skilled workers, shows how this can be counteracted.

How can the shortage of skilled workers be addressed?

In the current issue of *Immobilienwirtschaft aktuell* (only available in German) you will find the summaries of the top ten final theses of the [MAS Real Estate](https://www.executive-education.uzh.ch/static/ee-web/en/offers/mas_real_estate/) 2021/2022. The publication offers you quick access to the latest findings in the fields of **Real Estate Investment**, **Real Estate Portfolio** and **Asset Management** as well as **Project Development**.

[Here](https://vdf.ch/immobilienwirtschaft-aktuell-2023-e-book.html?hrsg_org_id=3093) you can order the book or download the free eBook.

The publication *Immobilienwirtschaft aktuell* appears annually and is published by the [Center for Urban & Real Estate Management (CUREM)](https://www.curem.uzh.ch/de.html)

![Immobilienwirtschaft aktuell 2023, German](images/uploads/curem.png "Immobilienwirtschaft aktuell 2023, German")

[CUREM](https://www.curem.uzh.ch/de.html) is dedicated to Real Estate industry research and continuing education. The aim is to promote a professional Real Estate industry in Switzerland. In addition to the RICS accredited, part-time [MAS Real Estate](https://www.executive-education.uzh.ch/static/ee-web/en/offers/mas_real_estate/) degree program and the [CAS Urban Management](https://www.executive-education.uzh.ch/static/ee-web/en/offers/cas_urban_management/), CUREM conducts various compact courses, expert workshops and professional events.

"Immobilienwirtschaft aktuell 2023" (in German)

## How did you get the idea to pursue continuing education?

A few years ago, I graduated from the ZHAW with a bachelor's degree in business administration with a specialization in Banking and Finance. When I changed jobs, I felt that in order to advance professionally, it would be beneficial to complete further training and acquire more knowledge.

I then informed myself about the various possibilities around Zurich. The modular structure of the courses offered at the University of Zurich, which allows for flexible design of the continuing education, was ultimately decisive for my choice. Since I was convinced by the offer, I registered for the [MAS Finance](https://www.executive-education.uzh.ch/static/ee-web/en/offers/mas_finance/) at very short notice, without attending an information event.

## What do you like most about the program?

I particularly like the modular structure and the ability to move modules from one semester to the next. This flexibility makes it possible to optimally combine work and further education. Especially with a 100% workload in a management position, not everything can always be planned and predicted.

I also like the contact with people from totally different areas and industries with different backgrounds, which is made possible thanks to the modularity of the program. For example, in the real estate valuation course, I met people who work in construction, who work in banks, or who do real estate valuations. I found this mix very interesting and enriching.

## What is the biggest challenge about it?

The "keep at it" (laughs). I find it a challenge to reconcile everything all the time. But it's very doable.

## What are your key takeaways from the MAS Finance?

There are many small things that give you "aha moments" again and again. For numerous things that one has already intuitively done correctly, one now receives a scientific explanation.

In addition, I was able to try out many new things and thus gained insight into previously unknown areas. There were many modules with topics with which I had no or hardly any contact so far or in everyday life, such as derivatives, futures or options. This gave me the opportunity to try out new areas as part of the training.

## What surprised you?

I was pleasantly surprised by the flexibility in the design of the program. On the one hand with regard to the modules, but also in general. I would not have expected that at the beginning. For example, on the one hand I could not complete the introductory seminar at the beginning of the program and on the other hand I once had to postpone an exam by a few weeks. You're not used to this kind of flexibility from classical training, and this surprised me in a positive way. I didn't expect that there would be so many individual opportunities. I found it great how cooperative the Finance team is and how they always helped to find a suitable, personal solution for everything.

## Is there a topic in Finance in which you could acquire more knowledge?

Yes, of course, you never stop learning. I think you could go into even more depth in all subject areas. However, there is no area in which I felt that we learned too little. The knowledge taught is very broad, as the modules range from real estate valuation to digital transformation or corporate finance.

## Would you recommend the MAS Finance and if so, to whom?

Absolutely, I have even already recommended it to others! The [MAS Finance](https://www.executive-education.uzh.ch/static/ee-web/en/offers/mas_finance/) is especially suitable for people who work in the Finance industry, have already attended a continuing education program and would like to dive a little deeper into the subject matter again. The program is also suitable for those who would like to refresh their knowledge with new trends and findings from science. Due to the modular structure, students have the opportunity to attend a compact course on a topic that particularly interests them. These courses are open to all interested individuals. It is not uncommon for someone to start with a compact course or CAS and then decide to take an MAS in the end.

## Will you remember anything in particular from that time?

I will never forget the open manner of the lecturers and the Finance  team. We had some fun aperitifs together. I also really appreciated the interesting conversations that took place after the modules or during lunch breaks.

## Thank you very much, Clarissa Ernst!

(﻿[Here](https://www.executive-education.uzh.ch/static/ee-web/en/offers/mas_finance/) you will find more information about the MAS Finance.)

Clarissa Ernst is 32 years old and works as a team leader in corporate banking at ZKB. She already started her career with ZKB during her apprenticeship and has held various positions there since then. She holds a bachelor's degree in Banking and Finance from ZHAW and is now in the final stages of the MAS Finance at the University of Zurich, which she is completing part-time. Since a management position requires a great deal of flexibility, she particularly appreciates the modular structure of the program. In this way, she is able to combine her job and her continuing education with ease. 

Clarissa Ernst, MAS Finance

## The history of the brand

Compared to other Swiss watch manufacturers, the Maurice Lacroix brand is a young player in the highly competitive watch market. The brand was founded in 1975 by a Swiss company that initially distributed various products, then represented numerous well-known Swiss watch brands before deciding to set up its own watchmaking company. In 1961, it bought a watch manufacture in the town of Saignelégier in the Jura, thus laying the foundations for the creation of Maurice Lacroix. Since then, the brand has gradually developed into an independent watch manufacturer with a good reputation. In 1990, the company achieved its first major success with the launch of the "Calypso" collection, which helped the brand, which until then had been considered an insider tip by retailers, to become better known.

In 2014, the previous Marketing Director, Stéphane Waser, was appointed CEO. The new "Aikon" collection, which stands for affordable luxury with technical excellence, was launched with the hope of strengthening the brand. The collection led to a new brand positioning. The brand rebranded itself as more casual and hip and appealed to a younger target audience, which in turn suited the Asian markets perfectly, where consumers are younger than in Western markets. Maurice Lacroix currently has five collections, of which the "Aikon" is still the most popular. In 2019, one of these models even won the Red Dot Design Award.

## C﻿hallenges in China

Maurice Lacroix entered the Chinese market at the end of the 1990s, first establishing an office in Hong Kong and then a subsidiary in Shanghai. Business and distribution in China were outsourced to a local supplier. In 2008, Maurice Lacroix sold its distribution rights for Asia to the market expansion service provider DKSH, which became the largest shareholder in 2011. At that time, there was a gold-rush atmosphere among watch manufacturers in the Chinese market and the brand enjoyed great success in China until 2014. But then sales figures began to decline. On the one hand, luxury goods were affected by the new gift-giving rules introduced by the Chinese government in its fight against corruption and by a new luxury tax; on the other hand, the country's economy declined and the watch market also shrank. Many sales outlets had to be closed and the sale of watches shifted mainly to the online business. However, after four years of online-only sales, the distributor rebuilt a physical network, which the brand hoped would help boost sales in China. "Consumers need to be able to see and touch a premium product like a luxury watch before they buy it," says Stéphane Waser.

## W﻿hat's next?

Around 16 million Swiss watches are exported every year - half of them to Asia ([source](https://www.eda.admin.ch/aboutswitzerland/en/home/wirtschaft/taetigkeitsgebiete/uhrenindustrie.html)). The opportunities for successful business activity in Asia therefore exist. But the question remains: How much of its resources should a small player like Maurice Lacroix, which has relatively limited marketing resources compared to its much larger competitors, allocate to the Chinese market and how much to the more established markets, which admittedly have far less growth potential? And given the ever-growing purchasing power in China, should it push the brand up the price range by offering more expensive watches?

The case of Maurice Lacroix offers students the opportunity to address a typical management challenge faced by SMEs: How can limited resources be used to support business growth in general and expansion in the Chinese market, which is highly competitive in the luxury watch sector, in particular?

## M﻿ore information

Case studies like these are developed by the [Europe-Asia Case Study Center](https://www.casestudycenter.uzh.ch/en.html). Since 2014, the Case Study Center has been developing real-life case studies with a clear focus on European and Swiss-Asian management challenges. This research provides students and lecturers with helpful impulses and information about different business models and challenges faced by Swiss and Asian companies.

The entire case study can be downloaded [here](https://www.thecasecentre.org/products/view?id=167247).

## E﻿uropean and Asian Business Management

Are you interested in our degree programs in European and Asian Business Management? [Here](https://www.eabm.uzh.ch/en.html) you will find the courses on offer.

Business Administration: EABM

The watch manufacturer Maurice Lacroix entered the Swiss watch industry relatively late. In its almost 50-year history, however, it has managed to establish itself in the crowded global field of luxury watch brands. CEO Stéphane Waser's goal was to create a brand image that would ensure brand recognition by capitalizing on the tradition of Swiss watchmaking and the flexibility of a young brand like Maurice Lacroix. Stéphane Waser regularly reflects on his growth strategy, for example for the Chinese market. Which approach makes the most sense given the limited resources available? Use this case study as an example to find out which topics students on our European and Asian Business Studies programs deal with.

Maurice Lacroix - how can a niche brand grow in the luxury segment?

## When did you get the idea to pursue further education?

I completed my last degree in 2010. The need to update my financial knowledge and learn new, relevant skills grew over the last few years. In doing so, I didn't want to reorient myself, but rather build on the knowledge I had acquired over the years.
Sustainable Finance is a buzzword these days, with a lot of half-knowledge and sometimes misconceptions. I was attracted by the idea of gaining a sound understanding of this new discipline with its various facets. So when I saw the new course at the University of Zurich advertised, it was an easy decision for me to sign up for the [MAS Sustainable Finance](https://www.executive-education.uzh.ch/static/ee-web/en/offers/mas_sustainable_finance/).

## When did you notice that sustainability was becoming an issue in the financial sector?

The issue really came to the fore in the last 5 to 6 years, with the introduction of the Sustainable Development Goals. UBS, my former employer, played a pioneering role in this area. In many places, the topic was not taken seriously at the beginning. However, a change has now taken place - from a compulsory exercise for many companies and banks to a deep conviction. I personally felt the same way. At the beginning, I was not fully aware of the urgency of the issue. Thanks to my studies, however, I now have a much better understanding of the whole situation.

## What did you particularly like about the programme?

I found the modular approach ideal, which allowed me to focus on the topic of Sustainable Finance and at the same time cover other topics that I also found exciting. In this way, the content of the program can be adapted to personal interests. In addition, this modularity allows a great deal of flexibility in terms of time. Only in this way was it possible for me to condense my studies and complete them in one year - in addition to my family commitments and, in the second half of the year, also in addition to my new job. Moreover, I was able to meet and exchange ideas with many interesting people from different areas and companies, which is also an advantage of the modularity.
I also particularly liked the competent lecturers from research and practice. On the one hand, there were renowned professors from the University of Zurich who gave us an insight into their research. On the other hand, there were counterparts from practice who always facilitated exciting discussions among the participants. I consider this combination of the university's theoretical foundation and the practical application to be valuable.

## What was the biggest challenge?

One challenge was the time aspect. Each module requires time for preparation, implementation and follow-up. At the beginning, it was not so easy to estimate the time required for the individual modules.

## What are your key takeaways from the MAS Sustainable Finance?

My first takeaway is the personal awareness and deep conviction that we have a responsibility. It is tempting to say that Switzerland is not a big emitter of greenhouse gases because we are, proportionally, only a small number of people. But the understanding that this is only half the truth is something I gained through this continuing education. In Switzerland, we consume and import an enormous amount. We are also responsible for the current situation, not just big producing countries like China or India. 
From the bank's perspective, it is clear that its own actions can be a model for other companies, but that the big leverage is clearly with the customers. As a bank, it is therefore important to convince customers to initiate the transition in their business areas and to support them in doing so. The great potential of financial institutions lies in helping to support companies on their way to a sustainable economy through the allocation of resources. In the end, it is the real economy that will make the difference, not the banks.
The second takeaway is this: I strongly believe that there is a need for global solutions on the sustainability issue. There are many stakeholders in the whole issue who are striving to bring about positive change. But these efforts need to be consolidated. The individual small, local patches do nothing; a binding, global agenda is needed.

## Was there anything that surprised you during the programme?

The extent and complexity of the topic surprised me. There are so many areas that play into the overarching topic of Sustainable Finance, and each in itself is almost endless. The deeper you dive into each topic, the more complex it becomes. This is probably also why so little change happens at first, as people freeze and resign themselves to complexity.

## Is there a topic in Sustainable Finance in which you could acquire even more knowledge?

Yes, certainly, in almost every one. I wouldn't presume to be an expert in any of these topics. But the [MAS](https://www.executive-education.uzh.ch/static/ee-web/en/offers/mas_sustainable_finance/) provides a broad and very good overview of the subject. Of course, there was not enough time in the continuing education program to go into all the sub-topics in detail. But the question is, is that even necessary? I find it dangerous to have a superficial half-knowledge or to be too deep in the details and only have an isolated way of looking at things. In order to bring the big picture forward, it is optimal to have a broad knowledge. I was able to acquire this thanks to the training.

## Are there challenges in your job that you can tackle directly with the help of the newly acquired knowledge?

Yes, I am already benefiting greatly from this further training. For example, there are two important Swiss Banking guidelines that come into force on January 1, 2024. One in the investment area, which says that you have to pick up ESG preferences from the investor. The other in lending, which requires that owners of single-family homes be educated and advised on energy efficiency. These are two concrete topics that are being implemented at our bank and in which I can now play an active role.

## Would you recommend the MAS Sustainable Finance and if so, to whom?

Yes, I would definitely recommend the course. There is a great need for well-trained specialists and accordingly there are many exciting opportunities on the job market. The [MAS](https://www.executive-education.uzh.ch/static/ee-web/en/offers/mas_sustainable_finance/) is suitable for people who are interested in sustainability and financial topics and would like to acquire sound knowledge in this area.

## T﻿hank you very much, Matthias Truninger-Riklin!

(﻿Click [here](https://www.executive-education.uzh.ch/static/ee-web/en/offers/mas_sustainable_finance/) for more information on the MAS Sustainable Finance.)

![Matthias Truninger-Riklin during a group work on the occasion of the MAS final seminar.](images/uploads/mat_trun.jpg "Matthias Truninger-Riklin during a group work on the occasion of the MAS final seminar.")

Matthias Truninger-Riklin is the first graduate of the MAS Sustainable Finance. He is 38 years old, lives with his family in Zurich and works as Head of Business and Sales Management at Aargauische Kantonalbank. Prior to that, he held various positions at UBS. His plan to take a break from his career to complete the MAS as a full-time course of study in one year only worked out to a limited extent. After only half a year, he was drawn back to the working world, and so he completed the second half of the program part-time - a time challenge that he mastered successfully.

Matthias Truninger-Riklin, MAS Sustainable Finance

In recent research, Prof. Alexander Wagner from the [Department of Banking and Finance at the University of Zurich](https://www.bf.uzh.ch/en.html) and co-authors show that investors have neglected the biodiversity footprint until recently. However, this has changed since the Kunming Declaration at the UN Conference on Biodiversity (COP15) in October 2021. Since then, companies with a larger footprint have delivered or been required to deliver particularly high returns. The results suggest that investors began to demand a risk premium at the prospect of and uncertainty about future biodiversity regulations. The question now is how competently companies are dealing with this biodiversity crisis.

(﻿Source: Oec. magazine issue #19)

## M﻿ore details?

C﻿lick [here](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4398110) to access the original publication.

## Interested in biodiversity and finance?

Then the course [Biodiversity and Finance](https://www.executive-education.uzh.ch/static/ee-web/en/offers/biodiversity_and_finance/) is right for you.

Read also the [interview](https://www.executive-education.uzh.ch/static/ee-web/en/blog/biodiversity_finance/) with one of the lecturers of the course, Dr. Philipp Staudacher.

Nature makes its way into Finance.

Do investors care about biodiversity?

Prof. Anne Scherer and Dr. Cindy Candrian from the [](https://www.business.uzh.ch/en/institut/about.html)[D﻿epartment of Business Administration at the University of Zurich](https://www.business.uzh.ch/en/institut/about.html) present in their book "You & AI. A Guide to Understanding How Artificial Intelligence Is Shaping Our Lives,",﻿ published in 2023, the latest scientific findings on AI. They take us through the exciting world of AI and how it impacts our daily lives and society. 

How was AI developed and how do unconscious perceptions influence our reliance on it? How can machines be creative and how is our data being used by AI? The book shows how we can use AI to our advantage and what to look out for.

(Image source: excerpt from the book cover)

As artificial intelligence (AI) becomes more and more pervasive in our everyday lives, many pressing questions remain: What exactly is AI and how does it differ from human intelligence? How will AI affect our future and what challenges do we need to overcome to develop ethical AI?

"You & AI: A Guide to Understanding How Artificial Intelligence Is Shaping Our Lives"

Prof. Dr. med. Nicole Ochsenbein-Kölble, Director of the Department of Obstetrics at the University Hospital Zurich, explains what this further training has done for her professional practice and how it can be combined with everyday clinical practice.

( Note: At the time of the interview, Nicole Ochsenbein-Kölble was Head Physician at the Department of Obstetrics at the University Hospital Zurich. In September 2022, she was appointed Director of this clinic. Congratulations on this career move!)

<iframe width="560" height="315" src="https://www.youtube.com/embed/ua6wLO4pwok?si=uMNJ-xRfhrls-AuL" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>

## Would you like to learn more about this program?

For more information about the CAS in Medical Leadership click [here](https://www.medlead.uzh.ch/de.html).

"I would do it again in a heartbeat!"

Prof. Dr. med. Nicole Ochsenbein - Kölble, CAS Medical Leadership

## A provocative question to start with: Why does Switzerland need professional military pilots?

We professional military pilots defend Switzerland and form an important complement to the existing services of the police and Rega. For example, we provide helicopter standby services for the search for persons, disaster relief and search and rescue. In the case of forest fires, for example, civil helicopters are used first, but they can only carry 500 liters of water per drop - ours 2.5 tons. Or on a search mission, the Rega helicopter pulls out after an hour at the latest - after that, we take over. Thanks to our infrared equipment, we can also fly such missions at night. With the professional military pilots, the state has a strategic reserve for such missions, because it would not be economical to operate them in civilian mode. If we want to provide a safe country, we have to invest. This has become clear since the conflict in Ukraine.

## Originally, you completed a completely different education. You studied business administration. Why is that?

I always wanted to be a scout leader when I was a kid. I wanted to organize, optimize, hold together, move forward. So studying economics was an obvious choice, especially management and economics, which combines the best aspects of economics and business studies. How much of what you learned can you still apply today? A great deal. In particular, as head of SPHAIR and commander of helicopter training for the Air Force, I have to think very analytically and holistically, which I learned in economics lectures. From business administration, I use accounting and marketing - and also scientific work when I create a concept or launch a project.

## So would you make the same study choice again today?

Absolutely, and psychology as a second degree. I was particularly interested in the interdisciplinary aspects. I wrote my dissertation at the interface between psychology and economics. This area is also very important in my work, because we work with people and not with machines or large corporations.

## As a military pilot, you were also stationed abroad several times. What did you experience there?

My highlight was in Greece in 2015: I was able to save a village from the flames. There is nothing more fulfilling than that. Everything I had learned and done so far was worthwhile. It was also very impressive to see the destroyed villages in Bosnia from the helicopter. Those images really get under your skin. It's different from seeing them on TV or in the newspaper. And you know exactly what needs to be prevented.

## As an instructor, you work primarily with junior pilots. What is so special about it?

I get to share my passion. At the beginning of a SPHAIR course I have girls and boys, at the end they are young adults. They learn so much independence and self-confidence: When a young person sits at the controls of an airplane, eyes shining, making their own decisions, it's priceless. The best thing, of course, is to be able to recommend that he or she become a military or airline pilot.

## What advice do you have for today's young generation?

Try to realize what you dream of. Because you never know if you can do it if you don't try. Our core message is: If you dream of flying and you don't try, you have no certainty. It's the same with economics.

## What dreams of your own would you still like to realize?

I would like to travel the world even more - in the easiest way possible. There are so many interesting places and people in this world.

Author: Graziella Bomio, Photo: Peter Hauser

O﻿ec. magazine issue #19

Alumnus Beat Hedinger is living his dream. He is a military pilot, promotes young talent at SPHAIR and wrote his dissertation during foreign missions in the Balkans. Text: Graziella Bomio, Photo: Peter Hauser

A portrait: Beat Hedinger, from boy scout to military pilot

### **Actually, various crises dominate the headlines. Is the perception that crises are becoming more frequent true, or is this impression deceptive?**

LUKAS RÜHLI (LR): Basically, we have a media bias in favor of crisis reporting. The media report more on negative events than on positive ones, which distorts the public's perception accordingly. With COVID, the Ukraine war and the banking crisis, we are currently experiencing a random accumulation of crises. In reality, various statistics show that the vast majority of conditions in the world have improved significantly in recent decades. Nevertheless, the confidence of the population that the next generation will be better off than the current one has declined in the Western economies.

ALEXANDER WAGNER (AW): You first have to ask what you mean by crises in the first place. That's why there are no studies that clearly prove whether there are more or fewer crises. What is true, however, is that the interconnectedness of the world - trade, globalization, digitalization, the interconnectedness of society - is much greater and means that crises have a more resounding effect in many areas.

### **So you can't measure crises because they can only be defined as such subjectively?**

AW: What one considers a crisis is to a large extent in the eye of the beholder. In fact, calling it a crisis changes something about the situation. Used strategically, the word crisis triggers a Sense of Urgency, which can be used in entrepreneurship to deliberately pursue a specific goal. Of course, this carries the risk that people will react negatively to it and become afraid.

### **Do we perceive crises differently today than in the past?**

LR: What we used to have, we would constantly perceive as a crisis today. From today's perspective, the time before industrialization was a permanent crisis situation. Today, we have become much more resilient to crises due to prosperity. Mostly, we experience crises that make our lives a bit uncomfortable. Very few are existentially threatening. On the other hand, today's technologically advanced society has a new, fundamental potential for crisis that has fortunately not yet manifested itself. Think, for example, of the atomic bomb, biotechnology or AI. They could all theoretically lead to widespread extinction of humanity. Even though the probability is very low, it does exist. This is new.

### **Climate crisis, government crisis, midlife crisis - the spectrum of crises is very broad. What is the common denominator?**

AW: The word crisis comes from the Greek and also means decision. It does not necessarily have a negative connotation. So a crisis is a situation that requires decisions. It develops rapidly and, if no action is taken, quickly becomes negative. In most cases, there is some element of surprise. These characteristics are the common denominator of the interdisciplinary definition from the [UZH Center for Crisis Competence](https://www.crisiscompetence.uzh.ch/de.html), where researchers from seven faculties are involved.

LR: For me, a crisis is a situation where a certainty that was believed to be secure is shaken, and it often happens when there is no reaction to a change in the framework conditions. Of course, there are also exogenous catastrophes, which simply happen. But personal, political or governmental crises in particular are always a failure to make adjustments that would be necessary. Although they are partly predictable, it is then impossible to prevent them in the political or social system. Change only becomes possible once the crisis has been triggered.

AW: I can confirm that. Especially when I think of cases from the corporate world where a framework changes for a company. But it can also be that the change is deliberately triggered by someone with some intention. Especially in economic competition, there are strategic interactions. What is one person's opportunity can be another person's crisis.

### **Crises always have a negative connotation, but they can also serve as an impetus for progress and innovation. How can we learn from crises and make the most of them?**

LR: You have to be aware that in well-developed systems, fundamental change is almost impossible because the need is not seen as long as everything runs smoothly. That's where behavioral economics comes in. People are risk-averse and loss-averse. Losses usually reduce their well-being more negatively than gains of the same amount increase it. And that's why they have a status quo preference. Only a crisis leads to a state where the status quo becomes so unpleasant that people are prepared to make fundamental changes. That's why it takes such crises in highly developed social systems to bring about major changes.

### **You both take the view that many crises in companies in particular are "homemade". How can these be avoided?**

AW: There are various starting points, two of which seem particularly important to me from research and from my practical experience: good corporate governance and the consideration of behavioral science findings. You can rarely win a prize with good governance, but you can destroy a lot with bad governance. But crises cannot be avoided by banning bonuses for executives, as was recently decided in a motion. That backfires, because there are always incentives of some kind, including non-monetary ones. What matters is how people react to these incentives. Just as we cannot ban driving in order to avoid accidents, we cannot ban bad governance.

LR: We have to accept that crises are part of the game. Especially to a free economic system. If you want to prevent every crisis ex ante, you create a lot of rigidity in a system, which can lead to even more negative results in the long run. 

AW: And even if you could. It is simply prohibitively expensive to avoid all crises. The statement is very important and at the same time very controversial. You have to be sensitive to those who are affected by crises. It is difficult to communicate politically that it is not optimal for a state or a company to do everything to avoid everything.

### **What role do human behavior and communication play in a crisis?**

LR: To prevent crises of all kinds, communication, cooperation and honest dealings with one another are central. Followers, herd mentality, rigid hierarchical thinking and silo thinking are things that tend to promote crises. In a company, the boss has a great influence on the corporate culture. An atmosphere of lacking trust is harmful. An open and fair feedback culture is important.

AW: If it is allowed in the company to ask uncomfortable questions, then that is an element of crisis competence. The knowledge that something is not going well in a company has to surface somehow. And in order to learn something from crises, you have to make the learning explicit. That's why we talk about crisis competence. It's important to capture learning during a crisis so that it remains in organizational memory. It's not for nothing that people say you should never let a good crisis go to waste.

### **Mr. Wagner, you are co-director of the [UZH Center for Crisis Competence](https://www.crisiscompetence.uzh.ch/de.html). Why this focus on crisis competence and not, for example, on crisis management?**

AW: Because after the crisis is before the crisis. It's not about avoiding every crisis, it's about having the conviction that I as a manager, as an individual, or we as a society have the ways and means to deal with crisis. Another element of competence is to reduce the uncertainties somewhat and to understand what are the key, potential crises we need to focus on. We have limited resources and time and need a radar for those crises for which contingency plans are really needed. Pure crisis management is not enough.

### **Mr. Rühli, you, on the other hand, tend to take the view that most crises cannot be foreseen and can therefore not be prepared for, or only to a limited extent.**

LR: People generally overestimate themselves. Most of us assume that the future is an extrapolation of the development of the last ten years. However, the future is not predictable and cannot be planned. One can hardly prepare specifically for certain crises. The focus must be on communication, cooperation, flexibility, information exchange and on a certain redundancy in social and corporate structures, which generally promotes crisis resilience. 

AW: There are also really good research findings on redundancy. The hardest redundancy for a company is to have cash available. That has a strong opportunity cost, especially in low interest rate periods. But it has been shown that the companies that have more cash available do better through crises.

LR: On a corporate level, redundancy is somewhat at odds with efficiency. As a result, management is under constant pressure to justify its actions. The crux of the matter is that the better you protect yourself, the less likely it is that something will happen and the more likely it is that the precautionary measures will be perceived as excessive from the outside. As a result, there is a tendency at the corporate level to create too little redundancy. This effect is reinforced by a phenomenon known in game theory as the hostage dilemma: In individual cases, it is better to negotiate with hijackers to prevent them from harming the hostages. But if this is known, the more planes will be hijacked. Analogously, more crises occur when companies know that in case of doubt, the state will provide assistance. Because that further lowers the incentive to create that redundancy themselves.

Author: Maura Wyler, Photos: Caroline Krajcir

S﻿ource: Oec. magazine issue #19

### **A selection of offerings that will enhance your crisis competence:**

* [E﻿MBA](https://www.emba.uzh.ch/en/)
* [M﻿AS Real Estate](https://www.curem.uzh.ch/de/weiterbildungen/masterprogramm.html)
* [M﻿AS](https://www.finance-weiterbildung.uzh.ch/en/programs/mas/mas-sf.html) / [CAS Sustainable Finance](https://www.finance-weiterbildung.uzh.ch/en/programs/cas/cas-sustainable-finance.html)
* [C﻿AS Risk Management for Banking and Finance](https://www.finance-weiterbildung.uzh.ch/en/programs/cas/cas-risk-management-for-banking-and-finance.html)
* [C﻿orporate Governance and Corporate Social Responsibility](https://www.finance-weiterbildung.uzh.ch/en/programs/single-courses/corporate-governance-and-corporate-social-responsibility.html)
* [F﻿urther offers](https://www.executive-education.uzh.ch/static/ee-web/en/offers/)

What are the prerequisites for coping well with a crisis? Can we and do we want to avoid all crises if possible, or do crises even harbor opportunities for change? Alumnus Lukas Rühli and Prof. Alexander Wagner discuss distorted perception and the importance of crisis competence. Text: Maura Wyler, Photos: Caroline Krajcir

Prof. Alexander Wagner and Lukas Rühli

Find out in the interview how Rebekka Hatzung, Director of the Claraspital, Basel, has benefited from [CAS Medical Leadership](https://www.medlead.uzh.ch/de.html).

(Note: At the time of the interview, Rebekka Hatzung was Head of Medical Services and a member of the management team at Bethesda Hospital in Basel. Since January 2023, she has been Director of the Claraspital in Basel. Congratulations on this career move!)

<IframeBlock><iframe width="560" height="315" src="https://www.youtube.com/embed/swksuNhs2_M?si=t7_1DfeiBLNxoTzH" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe></IframeBlock>

## Would you like to find out more about this program?

F﻿or more information on the CAS in Medical Leadership click [here](https://www.medlead.uzh.ch/de.html).

"The program has given me a large network."

Rebekka Hatzung, CAS Medical Leadership

Almost every day, the media report on new cyber attacks. Despite security measures, companies must assume that they will fall victim to an attack sooner or later. The effects can be devastating: In addition to costs for coping, possible ransom payments and operational and service downtimes, there is also the threat of intangible damage such as loss of reputation and trust from customers and partners. Cyber attacks can thus pose an existential threat to companies.

## W﻿hat to do?

The basis is a high level of security that includes a secure IT infrastructure and established procedures, policies and processes. Employees are also key, and must be trained to recognize cyber risks and handle information in a security-conscious manner.

Nowadays, however, a successful attack can never be ruled out. A key component is therefore 24/7 monitoring of the systems in order to quickly detect potential cyberattacks and react correctly. In view of the high costs of operating such monitoring, the shortage of specialists or the lack of expertise, it is advisable to obtain this service from a managed security service provider. Companies that have been the victims of a cyber attack often do not have this protection. In a crisis situation, external incident response experts should be called in immediately, because every second counts. They provide support in dealing with the attack, take over communication with the attackers and help to quickly rebuild the systems.

S﻿ource: Oec. magazine issue #19

Thomas Meyer, CEO and founder of InfoGuard AG, one of the leading Swiss companies for comprehensive cyber security, provides information on the topic of cyber attacks.

What to do in case of an attack?

Stephanie Donati, Managing Director of Alzheimer beider Basel, explains in an interview what this further training has done for her professional practice.

(Note: At the time of the interview, Stephanie Donati was Head of the Management Staff at the University Psychiatric Clinics Basel. She has been Managing Director of Alzheimer beider Basel since September 2021. Congratulations on this career move!)

<IframeBlock><iframe width="560" height="315" src="https://www.youtube.com/embed/F0cfnkqWHK4?si=f-duwsGD-NhAkdR3" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe></IframeBlock>

## Would you like to learn more about this program?

For more information on the CAS in Medical Leadership click [here](https://www.medlead.uzh.ch/de.html).

"My favorite module was, of course, communication: language is power. Communication is incredibly important and very complex, especially in a hospital."

Stephanie Donati, CAS Medical Leadership

"Robots and computers could replace one in four workers," wrote the [Frankfurter Allgemeine Zeitung](https://www.faz.net/aktuell/karriere-hochschule/buero-co/roboter-und-computer-koennten-jede-vierte-arbeitskraft-ersetzen-15450996.html) five years ago. How is this currently assessed? One of the most frequently discussed topics against the backdrop of digital transformation and rapid developments in the field of artificial intelligence are questions about the substitutability of human labor by computers. To what extent will it be necessary to program computers instead of guiding people in the future? At first glance, the developments seem to go in only one direction, and that is steeply in the direction of constant digitization. Artificial intelligence is already capable of creating works of art, composing music or conducting complex dialogues in a chat, not to mention simpler, repetitive work in production or logistics, which is already carried out entirely by computers or robots.

By 2025, the amount of time humans and machines spend on tasks at work will be the same, according to the WEF's ["The Future of Jobs Report"](https://www.weforum.org/reports/the-future-of-jobs-report-2020/in-full/executive-summary). Experts estimate that 85 million jobs could be displaced by 2025 due to a shift in the division of labor between humans and machines. At the same time, however, 97 million new roles could emerge that are better adapted to the new division of labor between humans, machines and algorithms.

"In a few decades, we'll have human-level artificial intelligence," [says Stuart Russell](https://www.srf.ch/news/wirtschaft/heissdiskutiertes-thema-am-wef-kuenstliche-intelligenz-auf-dem-weg-zum-nobelpreis), who conducts research on the subject at Berkeley. However, he qualifies that some breakthroughs are still needed before then. Of course, this also raises the question of ethics. Should people be allowed to lose their jobs or should it be a priority to preserve them? In principle, it will become increasingly important for employees to acquire additional skills through permanent and targeted further training and thus to stand out from computers.

## What’s next?

Hiroaki Kitano, head of artificial intelligence research at Sony, takes an optimistic look into the future. Despite short-term disadvantages for employees, he sees a positive benefit in artificial intelligence. In an [interview with SRF](https://www.srf.ch/news/wirtschaft/heissdiskutiertes-thema-am-wef-kuenstliche-intelligenz-auf-dem-weg-zum-nobelpreis), he points out that in the future people will "perform more creative and distinctively human tasks". 

Professor Dr. Jochen Menges is a researcher at the [Center for Leadership in the Future of Work](https://www.leadthefuture.org/) at the University of Zurich. There, multidisciplinary research is being carried out on a more human-centered work of the future in order to create a better working world for people. A [panel discussion he moderated with leading researchers on trends for 2023](https://aom.org/about-aom/aom-news/blog-detail_releases/blog-detail/releases/2023/03/20/aom-scholars-on-top-2023-trends-in-the-future-of-work) concludes that new technologies tend to create new and often better jobs. Furthermore, artificial intelligence can support managers in structuring their companies to help employees achieve greater productivity and well-being. In addition, the researchers note that the people, not the technologies, are in charge and that the use of new technologies is the key to producing the best solutions.

According to Professor Menges, looking cautiously optimistically into the future seems to be quite permissible for (human) employees.

Robots are no longer just supporting actors in science fiction films, but also an integral part of the working world. The buzzword "artificial intelligence in the workplace" is on everyone's lips. Will people soon no longer be in demand as employees?

Will computers replace all employees in the future?

The state of the earth affects us all, because it is our home and our breadwinner, our one planet – currently without alternative. But it is precisely this planet that is suffering. In this context, climate change is often the main topic of discussion. A no less important problem, however, is the loss of biodiversity. This is now considered an even more important problem than climate change. But what is meant by biodiversity and how does it affect us? Isn't it even practical if there are a little less weeds growing in our gardens and we don't have to share our slice of cake on the sun terrace with a swarm of annoying bees in summer? What may seem marginal at first glance, however, has a profound impact on our entire ecosystem and the global economy.

The term "biodiversity" encompasses the diversity of all life on Earth in terms of genetics, species and ecosystems. This diversity is necessary to stabilize all ecosystems and make them resilient to environmental influences. Biodiversity is essential for human well-being, a healthy planet and prosperity. Our food, medicine, energy, clean air and water, protection against natural disasters as well as recreation and cultural inspiration depend on biodiversity.

However, due to human activity, this necessary diversity is being threatened and increasingly lost. Mainly the changing use and exploitation of land and sea, climate change, pollution and invasive species are responsible for this decline. The collapse of biodiversity has numerous consequences, some of which, such as species extinction, are irreversible. It is estimated that 30-50% of all species could be extinct by 2050.

## Implications for the economy and finance

The loss of biodiversity not only affects nature and the environment, it also has consequences for the economic and financial system. Already today, [55%](https://www.swissre.com/institute/research/topics-and-risk-dialogues/climate-and-natural-catastrophe-risk/expertise-publication-biodiversity-and-ecosystems-services.html#/) of the global gross domestic product is highly or moderately dependent on ecosystem services and the loss of biodiversity causes a loss of [4 to 20 trillion](https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/portfolio-insights/JPM53671_Kapnick_The%20economic%20importance%20of%20biodiversity_2022_MAY_FINAL.pdf) US dollars per year.

Example: If more and more insects become extinct, 75% of the most important crops, including fruits, vegetables, nuts and seeds, as well as cocoa and coffee, are at risk because they depend on animal pollination. The loss of biodiversity thus always also means an economic loss and represents a financial risk. Moreover, as there is a time gap between the loss of biodiversity in a given area and its translation into a financial risk, it is challenging to make statements about possible future developments. Basically, the loss of biodiversity poses two types of risks to the financial system: on the one hand, biological risks related to the loss of ecosystem services, and risks caused by the transition to a low-impact economy.

To assess the impact of biodiversity loss on the economic and financial system, it is necessary to measure biodiversity. However, this is extremely complex, as many factors have to be taken into account and currently no standardized indicators exist.

## Elaboration of global policies

Global agreements have already been reached in the commitment to biodiversity conservation. For example, in December 2022, 196 countries signed an agreement under the [Kunming-Montreal Global Biodiversity Framework](https://www.cbd.int/gbf/) that establishes new rules for economic and financial systems and provides incentives for companies to redirect funds away from polluting and toward conserving them. In addition, large and transnational corporations and financial institutions in particular are to create transparency regarding dependencies on and impacts on biodiversity by 2030. Furthermore, the signatory states have agreed to conserve at least 30% of their land and water areas (also known as "30 by 30").

Currently, more data and research is needed on this topic. In addition, further policy frameworks need to be developed that cut across all sectors of the economy. The high urgency to promote biodiversity conservation is receiving more and more attention worldwide, and there is also a growing understanding of the need for a shift in thinking away from the paradigm of economic growth towards a sustainable global economy.

## What does the University of Zurich do?

At the University of Zurich, the importance of the interaction of biodiversity and finance and the need to generate knowledge is well known. Research on this topic is being conducted at various institutes, including the [](https://www.bf.uzh.ch/en.html)[Department of Finance](https://www.df.uzh.ch/de.html) of the Faculty of Economics and the [Center of Competence for Sustainable Finance](https://www.sustainablefinance.uzh.ch/en.html)[](https://www.sustainablefinance.uzh.ch/en.html).

In addition, the [Executive Education](https://www.executive-education.uzh.ch/static/ee-web/en/offers/biodiversity_and_finance/) department of the Faculty of Economics at the University of Zurich has launched the course [Biodiversity and Finance](https://www.executive-education.uzh.ch/static/ee-web/en/offers/biodiversity_and_finance/). A team of multidisciplinary lecturers from science and practice impart knowledge on the interaction of finance and biodiversity and thus make the topic accessible to the participants. The two-day course provides science-based information and concrete options for action. Participants acquire in-depth knowledge of the interconnectedness of biodiversity, the global economy and financial markets. For example, they receive an introduction to the topic of biodiversity from a scientific perspective, learn about current approaches to collect biodiversity financial data, and acquire knowledge about various political frameworks and activities in the financial sector.

## More exciting facts on the topic...

...can be found in the [interview](https://www.executive-education.uzh.ch/static/ee-web/en/blog/biodiversity_finance/) with one of the course teachers, Dr. Philipp Staudacher.

Two topics that seem to have no overlap are increasingly becoming the focus of attention worldwide.

What does finance have to do with biodiversity?

In a global study on workplace ethics, Baiba Renerte from the [Department of Banking and Finance o﻿f the University of Zurich](https://www.bf.uzh.ch/en.html) and co-authors collected data from more than 38,000 employees of Novartis in over 100 countries. 

They discovered that psychological safety – defined as “a shared belief that the team is safe for interpersonal risk-taking” – is directly related to the willingness to report unethical behaviors, across countries, culture, seniority, and functions. In other words, an environment in which employees feel comfortable reporting issues is vital to preventing future misconduct. Building a psychologically safe environment to facilitate speaking up about ethical conduct is relevant to both company reputation and long-term business performance. 

Unethical conduct can remain hidden for a time but is likely to be discovered eventually, causing far more harm than if it were caught and corrected early.

(﻿Source: Oec. magazine issue #19)

## M﻿ore details?

C﻿lick [here](https://sloanreview.mit.edu/article/fostering-ethical-conduct-through-psychological-safety/) to read the article.

## I﻿nterested in Leadership topics?

Here you will find our continuing education offerings in the field of [General Management](https://www.executive-education.uzh.ch/static/ee-web/en/area/generalManagement/).

How do organizations encourage people to speak up about ethical violations? And why do some employees choose to remain silent when others report misconduct? In a world where companies of all kinds are under increasing scrutiny, it is more important than ever that misconduct is reported so that leaders can respond quickly and appropriately.

Fostering ethical conduct through psychological safety

Digital transformation is not just about technology, it is more about a mindset driven by business strategy. Leaders who understand trends holistically can successfully steer their organizations into the digital paradigm and motivate teams who develop data-driven digital solutions aligned with experience-driven customer journeys. When people spend more and more time in the virtual world than in the real world, emotions take on an important meaning. Human-centered leadership creates trust, increases satisfaction and productivity.

# Recognizing digital disruptions with strategic early detection

A crucial aspect of managing trends is strategic early detection. Instead of focusing only on the present, thinking in scenarios can better extrapolate the needs, impacts, and strategies for the future. By imagining which technologies have which impact on the economy and society, leaders can take proactive steps to prepare the organization for change and seize opportunities. After all, not all digital innovations are disruptive – many things simply improve the status quo and do not have to turn the entire organization upside down.

> ***"Strategic early identification helps to systematically address the impact of industry and technology convergence."***

Disruptions require a rethink and an adaptation of the corporate culture. It's about fostering a willingness to innovate, establish agile working methods, and encourage employees to continuously develop new skills. Through an open and collaborative corporate culture, ideas can be exchanged, innovations can be driven and digital solutions can be developed that displace (disrupt) traditional business models over time.

# Emotional intelligence in leadership

In a world of digital disruption where artificial intelligence is becoming more and more present, emotional intelligence is a key to success. As technologies take over more and more tasks, recognizing and understanding emotions remains a skill that only humans possess. Therefore, emotional intelligence should have a high priority in the corporate culture.

Professor Jochen Menges researches emotional intelligence at the Center for Leadership in the Future of Work at the University of Zurich. According to this, emotional intelligence means that leaders are able to incorporate emotions into their thinking. This includes the ability to properly recognize and regulate both one's own emotions and the emotions of others. The right emotions can serve as motivation and drive companies forward, but this aspect is often underestimated. Emotions are closely linked to our performance and should be recognized as such.

Various research findings indicate that emotional intelligence can be learned. Unlike cognitive abilities, which are largely innate, emotional intelligence can be developed in a targeted manner. Managers should therefore invest in the development of their emotional intelligence. Employees who don't have a way to express their emotions at work tend to develop negative emotions, which has a destructive effect on their performance and health. Instead, work environments should be created in which employees have the freedom to experience the desired emotions in the workplace.

There are a variety of emotions that people want to feel in the workplace, and it is important to create a culture that allows and encourages all of these emotions. The University of Zurich, together with Adecco and the Boston Consulting Group, showed in a global study last year that creating an emotionally supportive environment has a positive impact on employee satisfaction, motivation and productivity. Managers should be able to create a climate of trust and openness in which employees can express their emotions freely.

> ***"Leadership in times of digital disruption requires more emotional intelligence."***

In addition, the development of emotional intelligence should not be limited to leaders but should be encouraged throughout the organization. Through training, workshops and the exchange of best practices, employees can learn to recognize and regulate their own emotions and develop empathy and emotional understanding for their colleagues.

# The future of work

Digitalization, generative artificial intelligence, but also business software solutions are necessary steps to initiate disruptive innovations or to optimize operational efficiency and thus remain competitive. The [Leadership Day](https://events.sap.com/ch/sap-now-zurich-en/en/home) of the "SAP NOW" conference at the Zurich Congress Center on April 25, 2023 made it clear that in an increasingly digitalized world, the combination of human and technological skills is more important than ever. The future of work needs digital leaders who foster a culture of emotional intelligence and open communication.

# More information

The [Center for Leadership in the Future of Work](https://www.leadthefuture.org/) and the [Executive Education](https://www.executive-education.uzh.ch/static/ee-web/en/customPrograms/) at the University of Zurich promote the aspects of digital disruption mentioned in the article in [diploma and compact courses](https://www.finance-weiterbildung.uzh.ch/en.html) and [company-specific continuing education programs](https://www.executive-education.uzh.ch/static/ee-web/en/customPrograms/).

Text by Dr. Daniel Fasnacht, Program Director

Leadership in times of digital disruption

[Here](https://www.oec.uzh.ch/de/current/news/2023/creditsuisse-krise.html) you will find a compilation of the most interesting media and opinion articles.

### **Interested in continuing education in finance?**

E﻿xplore our broad range of [continuing education programs in the field of Finance](https://www.executive-education.uzh.ch/static/ee-web/en/area/finance/).

Professors and alumni of the Faculty of Economics were sought-after experts in connection with the Credit Suisse crisis.

Our Professors on the Credit Suisse crisis

Business and society are undergoing a considerable transformation primarily induced by technology that significantly impacts how we live and act. Since technology has become a strategic imperative, we need an in-depth understanding of what trends drive digital transformation and how to master it.

The technology and industry convergence links e-commerce, social media, healthcare, payments, investments, travel, and leisure and raises experience-oriented business models. We need to understand how to compete when industries digitalise and collide. One option is to embrace digital tools and collaborate with diverse value-creating actors in an ecosystem across organisational and sector boundaries. Systematically understanding trends and developing digital transformation mastery are decisive factors for surviving and growing in a dynamic and digital world.

# Drivers for change and transformation

Various factors are relevant to change and transformation. Let’s start with changing customer expectations*.* Customers now expect fast, seamless, and personalised experiences across all channels, and digital technologies are vital to delivering those experiences. We have also noticed more and more disruptive competitors*.* New digital-native startups disrupt traditional industries, forcing established companies to adapt and transform to remain competitive. Digital technologies enable organisations to automate manual processes and reduce costs. Therefore*,* increased efficiencyis a decisive factor for profitable growth. The COVID-19 pandemic has accelerated the need for digital transformation as organisations have had to adopt new technologies to enable remote work and virtual collaboration. New work is an interpretation of flexible models and work structures that have changed under the influence of digitalisation. I also found regulatory requirements as a driver for change since many industries are subject to new regulations and compliance requirements that digital technologies can only meet. Lastly, the data explosion and advancesin digitaltechnologies to make sense of that data are key drivers of digital transformation.

# What is digital transformation?

Digital transformation refers to integrating digital technology into all aspects of an organisation’s operations, processes, and activities to fundamentally change how it delivers value to customers, employees, and other stakeholders. This involves leveraging what I call disruptive technologies, whereby the technology per se is not disruptive but rather its impact. Artificial intelligence, big data analytics, the Internet of Things (IoT), blockchain, cloud and quantum computing to automate manual processes, streamline operations, improve efficiency, enhance customer experience, and create new business models.

Digital transformation is about adopting new technologies and changing organisational culture, mindset, and processes to drive innovation, agility, and responsiveness. The goal of digital transformation is to create a more connected, data-driven, and customer-centric organisation that can thrive in the fast-paced, constantly evolving digital economy.

# Why now?

Digital transformation has recently become a priority for many organisations due to technology’s exponential development and data’s importance. To explain, I draw on the framework of the information value chain that describes the various stages of information processing and the value added at each stage. It is a way of understanding how data is transformed into valuable insights that inform decision-making. The information value chain typically consists of the following steps that all underly exponential growth:

1. **Data capture:** Collect raw data from various sources such as sensors, IoT, social media, or customer transactions. We saw a 50-fold growth from 2010 to 2020, and human- and machine-generated data will continue to grow hyper-exponentially.
2. **Data storage:** The collected data is then stored in a database for easy retrieval and analysis. According to Moore’s-Law (doubling transistors on a chip while reducing costs every two years), the data can be processed increasingly efficiently.
3. **Data processing:** This stage involves transforming the raw data into a more usable format, such as cleaning, aggregating, and filtering the data to remove errors or inconsistencies.
4. **Data analysis:** Once the data has been processed, it can be analysed using various techniques such as statistical analysis, data mining, or machine learning to identify patterns and trends.

Artificial intelligence can help organisations process large amounts of data and make sense of data more quickly and accurately, leading to faster and more informed decision-making. Through the so-called informationdissemination, insights can be gained from the analysis that is then communicated to relevant stakeholders through reports, dashboards, or visualisations. These insights are used for developing new products, optimising processes and improving customer services.

# Digital transformation leadership

Overall, digital transformation is necessary for organisations to remain competitive, meet customer expectations, and stay ahead of rapidly evolving technology and market trends. Managing trends involves understanding the underlying factors that drive change and taking proactive steps to adapt. Here I would like to refer to the discipline of strategic foresight*,* which involves exploring and anticipating potential future scenarios to inform strategic decision-making. Strategic foresight uses various tools and techniques to identify and analyse emerging trends and drivers of change and develop plausible future scenarios that can inform long-term planning. I suggest taking a future-back perspective instead of a present-forward perspective. Because with future-scenario thinking, we can better extrapolate the needs, impacts and strategies for the future.

Digital transformation is not solely about technology – it is more about a mindset guided by business strategy. Leaders who understand trends holistically can successfully steer their organisations towards digital transformation and inspirational motivate teams that develop data-driven digital solutions that meet experience-oriented customer journeys.

# More information

The Executive Education of the University of Zurich covers all aspects of digital transformation in degree programs, compact courses or [custom programs](https://www.executive-education.uzh.ch/static/ee-web/en/customPrograms). For instance, the CAS in Fintech, includes:

* [Digital Transformation](https://www.finance-weiterbildung.uzh.ch/en/programs/single-courses/digital-transformation.html)
* [Disruptive Technologies](https://www.finance-weiterbildung.uzh.ch/en/programs/single-courses/disruptive-technologies.html)
* [Future Business Models](https://www.finance-weiterbildung.uzh.ch/en/programs/single-courses/future-business-models.html)
* [Open Ecosystems](https://www.finance-weiterbildung.uzh.ch/en/programs/single-courses/financial-services-ecosystems.html)
* [Agile Strategies](https://www.finance-weiterbildung.uzh.ch/en/programs/single-courses/agile-fintech-strategies.html)

The impacts of digital transformation and how to master it

# What memories do you associate with the University of Zurich?

It was an insanely wonderful time with many positive memories. I remember the many "pushers" in the Lichthof at the beginning of my studies - and the first time I had to catch up on the intermediate exams. Towards the licentiate, things were more orderly, and I especially remember the many hours spent in the Central Library or the Museum Society. What I particularly liked about the University of Zurich was the liberal and university-like element, such as the opportunity to get a taste of other fields like psychology.

# Was it always clear to you that you wanted to study economics?

No, not at all. As a child I wanted to become a farmer - which was obvious, we lived in Appenzell at the time. After school, I first wanted to study psychology or chemistry, but then finally landed on economics - whereby financial and career aspects played a major role in this decision. But then I began to enjoy the economic way of thinking more and more. And this pleasure has remained until today. It still fascinates me how organisations work.

# What are you particularly proud of in your career?

Of the development of MiSENSO, the new specialist shop for acoustics and optics of the Migros Group. I was able to conceive and realise this idea at Migros and send it on its way. The shop-in-shop concept is growing, which makes me very happy.

# How would you describe yourself as a person? What values are important to you?

I like conceptual thinking on a solid basis - with a simultaneous view of what is implementable. That is why I am often found in strategy topics. Commitment is a central value for me. It is worthwhile to achieve something and to have the courage to try something new. Nothing ventured, nothing gained: If I have two possible courses of action, I choose the one where something could go wrong. It's like in sport: you don't win if you start with a margin of safety. In business, unfortunately, this is usually the opposite: that's why there are so many risk-averse managers. Those who have no exposure and remain unassailable often end up with the majority.

# What advice do you give to students of today?

Practice is the key. Instead of working towards top grades, my advice is to develop your own passion early on. It is also important to make a good start in your career. It helps if you can gain practical experience early on. And also change early if it doesn't fit. After a few years, it becomes more and more difficult to change sectors until you reach top management, where an outside perspective can again be seen as an asset. But until then it takes time.

# Speaking of passion: What do you burn for? And what do you absolutely still want to achieve?

What many people probably don't know: My first passion was water skiing! I have practised this sport from an early age and have taken part in numerous competitions abroad with a lot of commitment and heart and soul. Professionally, I take great pleasure in finding solutions to a difficult problem or when I manage to turn something negative into something positive. What I don't like at all, however, is when things just peter out. I would definitely like to achieve more serenity - a central element for a healthy work-life balance.

Author: Charlotte Ulmann, Pictures: Petra Wolfensberger

Oec. magazine issue #17

Alumnus Lukas Jezler has been CEO of the Gottlieb Duttweiler Institute (GDI) since 2021. In his new role, he has made "creating future" his motto - always with the aim of not only developing visions, but also implementing them. Author: Charlotte Ulmann, Pictures: Petra Wolfensberger

A Portrait: Lukas Jezler, CEO Gottlieb Duttweiler Institut

Finance Professor Markus Leippold is breaking new ground with his research: he is using artificial intelligence to approach problems in finance. He found the inspiration for his most important research project to date during a research stay at Google in 2019: There, the algorithm BERT, which underlies the Google search function, was developed. "In the future, computers should be able to understand texts and spoken words in the same way that humans can," the professor realised - and began to delve deeper into the subject. 

Together with his team, Leippold finally developed ClimateBERT - an algorithm with which climate-related, unstructured text information from various sources can be made available. Above all, however, assertions on the topic of climate can be analysed for facts. With the help of ClimateBERT, the research team was able to show that companies talk a lot about sustainability, but there is little behind it. 

## Concrete tool for supervisory authorities

This is problematic, says Markus Leippold. The market can only function efficiently if the relevant information from the companies is available to investors. After all, they have to be able to assess possible risks before they hand over money to companies. In addition to the uncertainties that a certain business model entails, they must also be able to assess the climate risks. ClimateBERT could help regulators to verify companies' statements. Financial analysts and investors could verify statements on climate-related risks - and thus distinguish sustainable action from greenwashing. However, Leippold also admits that it is currently difficult for companies to do business in a green way and to report this accordingly.  

> There is still a lack of simple, clear and internationally coordinated rules on what companies have to report. 

At the same time, according to Leippold's further research, the "sustainable finance literacy" of Swiss private investors is not very good, which makes them easy prey for greenwashing. 

Nevertheless, Leippold confirms that there is interest in Climate-BERT, but the political wheels grind slowly. He currently gives one or two lectures a week to make the financial industry and politicians aware of the tool and the greenwashing problem. Because: "What good is a paper that only a few people read, except for academic merit? He would rather use his academic freedom to really contribute to a change. Time is pressing. 

(Prof. Dr. Markus Leippold is Professor of Financial Engineering at the University of Zurich, Chairman of the Executive Committee and a member of the Study Programme Committee of the Finance Weiterbildung. He teaches in various executive education courses in the field of finance, including fintech, sustainability, risk management, financial theory, etc.)

Text: Elisabeth Liechti

Source: Oec. magazine issue #18

Companies are increasingly publishing information to show how they are responding to climate change. Markus Leippold, Professor of Financial Engineering, uses artificial intelligence to sift through and check this jungle of information. Text: Elisabeth Liechti

AI as a Tool for Sustainability Analysis

At a conference hosted by the Swiss Finance Institute together with Swiss Sustainable Finance and Building Bridges in Zurich in early October 2022, I asked the audience - primarily practitioners from the finance industry with an interest in sustainability - two questions. First, I asked participants to name the next major crisis (from a list of about ten choices). Second, I asked them to estimate whether ESG investments - those that pay particular attention to environmental (environmental, "E"), social (social, "S"), or governance (governance, "G") issues - would outperform or underperform the market in that crisis.

# Disagreement about the next big crisis

The trends that emerged from the results of the 120 or so votes cast were interesting: first, there was great heterogeneity among the participants. 17% saw a war with a nuclear power as the next big crisis, 17% extreme weather, 15% a major cyber attack, 13% debt, 13% erosion of social cohesion, 8% galloping inflation, 6% sudden loss of biodiversity, 1% psychological health, 1% another pandemic. No one chose the "other" category.

Although participants were a relatively homogeneous group, views were extremely diverse, at least in terms of the most important next crisis. So it's incredibly difficult for both policymakers and companies to prioritize.

We are in a situation of real uncertainty, not just a situation of risk. Risk means a situation where the probabilities of possible events occurring are known. Real uncertainty occurs when we do not know the probabilities of occurrence and the possible events at all.

The last three years illustrate the problem. Of course, there were (even loud) warnings of a pandemic somewhere (not least by Bill Gates, who basically has a big mouthpiece). But this is only clear ex post. Ex ante, on the other hand, i.e. before the outbreak of the pandemic, this was not so present. For example, in the World Economic Forum's (WEF) Global Risk Report, which appeared in early 2020 - just before the Covid 19 pandemic broke out - it is clear that few decision makers in the survey at the time considered a pandemic to be both a likely and relevant risk. And of course, a Russian invasion of Ukraine was not a complete surprise per se, certainly not since the 2014 events in Crimea. But again, the WEF's Global Risk Report, which appeared in early 2022 - just before the war broke out - hardly mentioned war as a key risk.

This is not an accusation against the decision-makers who were interviewed, but reflects the reality that decision-makers cannot keep all known and unknown crises in mind at the same time with the same intensity. One is always wiser after the fact.

# Consensus on the role of sustainable investment....

How was the second question, how ESG investments would perform in the context of the next crisis, answered by conference participants? It is clear that ESG measures are very diverse and have little correlation. Also, as mentioned, the participants had very different crises in mind. This makes it all the more impressive how clear the result was: 60% expected ESG investments to perform better or much better than the market, 28% equally well. Only 12% expected ESG investments to perform worse or much worse than the market.

# ...but no clear empirical picture on the resilience of sustainable investments.

With this question, it is worth looking at the empirical evidence on the performance of ESG investments in times of crisis. There are an incredible number of studies on the long-term performance of ESG. These come to quite different conclusions depending on which factors are controlled for and how. But in today's environment, the primary interest for many investors is not performance in average situations over long periods of time, but whether companies that receive high ESG scores are more resilient when crises occur.

Why would this be so? One theoretical argument is that customers and employees trust more sustainable companies, and that trust is especially important in times of crisis. Accordingly, investors would also appreciate this.

In the last 15 years, three crises in particular have received a great deal of attention: The 2007/08 global financial crisis, the Covid-19 crisis, and the Russia-Ukraine crisis. In the global financial crisis, there is indeed evidence that companies with high ESG scores performed better than otherwise similar companies (see, for example, the work of Lins, Servaes, and Tamayo 2017). It is important to note, however, that at that time the sample of companies for which ESG scores were available was still relatively small.

The Covid 19 pandemic was a big shock to a large number of companies. In addition to the obvious factors (such as industry affiliation) and hard factors (cash holdings and low debt), some studies also found some "softer" factors to be important. For example, Albuquerque, Koskinen, Yang, and Zhang (2020) provide evidence that stocks of U.S. companies with high environmental and social (ES) ratings outperformed during the market turmoil in February/March 2020.

However, these results or their interpretation have also been critically challenged. First, Demers, Hendrikse, Jos, and Lev (2021) argue that ESG ratings do not remain significant determinants of stock returns during the crisis if one also controls for differences in firms' intangible assets. Second, given the known discrepancies among ESG valuations, it is important to check robustness for different measures.

Bae, El Ghoul, Gong, and Guedhami (2021) argue that Albuquerque and co-authors' results are not robust when other ESG measures are used. Finally, Glossner, Matos, Ramelli, and Wagner (2022) find that institutional investors focused mainly on hard measures of financial resilience and did not noticeably increase their holdings in high ESG companies (suggesting that retail investors may have been responsible for the performance of these companies).

# Extremely mixed picture

Consistent with the experience from the 2008-2009 financial crisis and, to some extent, the Covid-19 pandemic, we might have expected companies with high ESG scores to outperform after the invasion and maintain that performance for at least some time.

In stark contrast, the figure shows that the stock prices of ESG companies fluctuated quite a bit both before and after the invasion. Some of the ESG valuations are actually positively related to returns shortly after the outbreak of war. In certain time periods, there is also contrary evidence to the prediction that companies with better ESG ratings would perform better during a crisis. In many cases, there is no statistically significant relationship. Overall, the picture that emerges is mixed.

In summary, it is all too easy for investors to rely on existing ESG ratings when making investment decisions in the face of potential future crises. All that glitters is not gold, it shows once again. And sustainable investing faces a major test anyway with the arrival of the likely recession.

But the results should not be interpreted by ESG critics, who now appear everywhere, to mean that sustainability analysis can never be a tool for identifying resilient companies in the future. They are an incentive to identify clearer factors that indicate corporate resilience in these challenging times. This will separate the wheat from the chaff for investors and investment solution providers.



Source: <https://themarket.ch/meinung/krisen-und-nachhaltige-investitionen-ld.7715>

The expectation is clear: sustainable investments should outperform the market in times of crisis. But that is precisely what was not evident in Russia's attack on Ukraine. This must be an incentive to identify the resilient companies with clearer factors.

Do Sustainable Investments Perform Better in Times of Crisis?

# Understanding sport

The topic of sport not only fascinates fans at the pub and in the stadiums. Sport generates an immense amount of attention that also appeals to many people outside the playing field and significantly influences and shapes our society and culture. It is therefore not surprising that in an increasingly complex world, sport is also attracting an increasing intellectual movement: In addition to cultural producers (film and music) and the media, who have been actively promoting this attention for decades, researchers in mathematics, physics and statistics are dealing with complex analyses in major sports such as baseball, basketball, ice hockey and football.

Economists are fascinated by the specifics of sport and analyse, for example, distribution mechanisms of different competition formats and their influence on the different players (leagues, clubs, athletes, fans). Business economists deal with strategic and operational management challenges that can be derived from the special market composition and regulatory measures in (professional) sport: Revenue offsets, transfer restrictions, salary caps, or cartels in North American leagues.

The power relations around sport and the different political and cultural anchoring of sport in society are of interest to scholars from management, sociology, political science and history. Development economists are interested in migration flows of international athletes and thus try to better understand the global and national labour market. Behavioural scientists observe individual and group behaviour using sports data from professional sports and thus draw conclusions for our society.

# Understanding the world better through sport

At the University of Zurich, the topic of sport has been intensively researched and taught for over 20 years. Among other things, with the Research Centre in Sports Administration ([www.crsa.uzh.ch](http://www.crsa.uzh.ch/)) or continuing education at the executive education level ([www.sportsmanagement.uzh.ch](http://www.sportsmanagement.uzh.ch/)).

Interdisciplinary research focuses on a sound understanding of sport. To this end, researchers draw on theories and methods from economics, behavioural and social sciences. The special features of sport and the composition of the industry raise exciting questions that are analysed from different perspectives. The focus is on economic, media, behavioural and legal research questions. On the other hand, important insights are also gained from sport to better understand social science phenomena in society. Here, sport is used as a laboratory for social science research to better understand human behaviour and interactions in society.

In a global and digitally networked world, it is imperative that these topics are also considered and discussed globally. This is the only way to understand the effects of larger movements and decisions on a national or regional level. The decisions of larger federations, sports clubs and stakeholders have long had an impact on national and regional sport.

Accordingly, there is a high demand for qualified staff and executives to solve complex management problems in international and national sports federations, sports clubs, in the management of athletes, in technology and media companies and in sports-related organisations.

The extra-occupational further education courses of the Executive Education of the Faculty of Economic Sciences of the University of Zurich in the field of sport start exactly here. Various courses are offered that address current challenges in the areas of management, economics, technology and analytics and provide in-depth knowledge to professionals and leaders from a wide range of fields. Participants acquire skills that they can apply effectively and efficiently in their professional environment - in international sports organisations, professional sports clubs, sports and media marketing agencies, and sports-related industries.

This is precisely where the Executive Education's part-time continuing education courses at the University of Zurich's Faculty of Economics in the field of sport come in. Various courses are offered that address current challenges in the areas of management, economics, technology and analytics and provide in-depth knowledge to professionals and leaders from a wide range of fields. Participants acquire skills that they can apply effectively and efficiently in their professional environment - in international sports organisations, professional sports clubs, sports and media marketing agencies, and sports-related industries.

Our lecturers teach and research in the fields of business and economics, sociology, finance, marketing, law, communication, mathematics, psychology or history. Furthermore, experts from industry are invited. In recent years, we have had the pleasure of inviting Christian Mueller, Ralph Straus, Nicolas Evans, David Dellea, Sven Schaefer, Carsten Koerl, Wolfgang Elsaesser, Pedro Fernandes Mestriner, Claude Ruibal, Urs Lehmann and many other guests.

In detail, our next courses will focus on the topics [Sports Analytics](https://www.sportsmanagement.uzh.ch/de/module/sportsanalytics.html) with Ulrik Brandes (ETHZ), [Sports Management and Sports Economics](https://www.sportsmanagement.uzh.ch/de/module/sportseconomics.html) with Helmut Dietl (UZH) and Raphael Flepp (UZH) , [Digital Sports Marketing](https://www.sportsmanagement.uzh.ch/de/module/sportsmarketing.html) with Andrea Giuffredi-Kähr (UZH), [Accounting & Finance in Sports](https://www.sportsmanagement.uzh.ch/de/module/finance.html) with David Oesch (UZH), \[Leadership in Sports](https://www. sportsmanagement.uzh.ch/en/module/leadership.html) with Jochen Menges (UZH) and Nicolas Bastardoz, [Entertainment Management](https://www.sportsmanagement.uzh.ch/de/module/entertainmentmanagement.html) with Leif Brandes, [Sports Law](https://www.sportsmanagement.uzh.ch/de/module/sportrecht.html) with Ulrich Haas, [the emergence of the modern sports industry](https://www.sportsmanagement.uzh.ch/de/module/sportgeschichte.html) with Christian Koller or [Sports Industry Insights](https://www.sportsmanagement.uzh.ch/de/module/industryinsights.html) with guest lecturers from the industry (e.g. Ralph Straus). We are also planning a study trip on the topic of innovation.

Sport is an important economic and social issue worldwide, moving people not only during major mega-events around the Football World Cup or the International Olympic Games. Even before the global pandemic of 2020, sport accounted for about 1-2% of the world's GDP. The global entertainment and media industry is estimated to be worth over USD 2,000 billion. The sports industry (excl. sportswear) is estimated to be worth over USD 200 billion. 

Why does the University of Zurich teach and conduct research on the topic of sport?

Responsible management is a core concern of Swiss Prime Site. This includes complying with legal requirements and regulatory standards and living out self-defined principles on a daily basis. These can be found, among other things, in our environmental policy concept and the code of conduct for suppliers. In the former, for example, we commit ourselves to operational climate neutrality in the long term (by 2040). The latter sets out both ecological and social guidelines for suppliers, such as respect for human rights and the prohibition of forced and child labour. We therefore not only focus on internal processes, but also exert influence on the external value chain. We are convinced that sustainable, future-oriented corporate governance increases resilience and thus creates long-term value for the company, stakeholders, society and the environment. One of the most relevant issues here is climate protection.

In the "linear organised throwaway economy", the real estate industry generates a large part of the waste in Switzerland. In addition, the real estate industry accounts for around half of the consumption of natural resources. Our goal is therefore to close the material cycles in our industry and to introduce an efficient circular economy. As a result, resource consumption will decrease significantly and CO2 emissions will be reduced substantially. Cooperation along the value chain also promotes sustainability. Whether with suppliers or partners during the construction phase or in the operation and maintenance of the properties. For example, by selecting biological materials and considering degradability during the construction phase. Further opportunities for exerting influence arise later in the occupancy phase through cooperation with the tenants, for example with jointly used areas, mobility offers, in the area of waste separation or by switching to green leases.

The Center for Urban & Real Estate Management (CUREM) of the Executive Education of the Faculty of Economics at the University of Zurich offers various compact courses and degree programmes in Urban & Real Estate Management. Sustainable Real Estate is one of them.

(About the authors: Karin Voigt is Chief Portfolio Officer Swiss Prime Site Immobilien AG and a UZH alumna. In 2014, she completed her MAS in Real Estate at the CUREM of the Executive Education of the Faculty of Economics at the University of Zurich. Martin Pfenninger is Head Group Sustainability at Swiss Prime Site AG.)

S﻿ource: Oec. Magazine issue #17

A text by Karin Voigt and Martin Pfenninger

Linking environment, real estate industry and construction

At two to four percent, the IT sector now accounts for a similar share of global greenhouse gas emissions as air travel. And video is the most energy-intensive thing you can do in the digital world when you're not training models or mining Bitcoins. I can't type the amount of data a video camera generates in an hour on a keyboard in ten working years. Still, it would be wrong to turn off the camera and get back on the plane. A virtual meeting produces 160-290 grams of greenhouse gas emissions per hour, and a flight to New York and back produces 2.5 tons per passenger. Only if I had to confer with New York for two hours a day for twelve years would a single flight be worthwhile.

This apparent contradiction to the statement about global emissions can be explained by the number of people using the Internet.

62 percent of people have access to the Internet, but only three percent fly at least once a year. If air travel were to "democratize" to the same extent as the Internet, the fight against climate change would already be lost. I can also use digital technology in a climate-conscious way. In the case of end devices, most of the climate impact is caused by production. So buy something new less often. And resist the temptation to make excessive use of seemingly unlimited capacities in the cloud. Because this has an impact on the size and energy consumption of the data centers.

T﻿ext: Lorenz Hilty (Professor at the Department of Computer Science and sustainability delegate at UZH)

S﻿ource: Oec. Magazine issue #17

The pandemic has forced us all in front of the monitors and thus turned us into climate protectors, because virtual meetings cause much less CO2 than traveling. Or is that perhaps not true at all? Text: Lorenz Hilty

Executive Education
Faculty of Business, Economics and Informatics

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