Christian Terwiesch

Christian Terwiesch
  • Andrew M. Heller Professor at the Wharton School
  • Professor of Operations, Information and Decisions
  • Professor of Health Policy, Perelman School of Medicine
  • Co-Director, Mack Institute of Innovation Management
  • Department Chair

Contact Information

  • office Address:

    3730 Walnut Street
    573 Jon M. Huntsman Hall
    Philadelphia, PA 19104

Research Interests: healthcare operations, innovation management, lean operations, new service delivery models

Links: CV, Personal Website, Coursera - Operations Management, Healthcare Operations Online, Mastering Innovation

Overview

Christian Terwiesch is the Andrew M. Heller Professor at the Wharton School of the University of Pennsylvania. He is a Professor in and the chair of Wharton’s Operations, Information, and Decisions department, co-director of Penn’s Mack Institute for Innovation Management, and also holds a faculty appointment In Penn’s Perelman School of Medicine. His research on Operations Management and on Innovation Management appears in many of the leading academic journals ranging from Management Science to The New England Journal of Medicine. He is an award winning teacher with extensive experience in MBA teaching and executive education.

Professor Terwiesch is the co-author of Matching Supply with Demand, a widely used text-book in Operations Management that is now in its third edition. Based on this book, Professor Terwiesch has launched the first Massive Open Online Course (MOOC) in business on Coursera. By now, well over half a million students enrolled in the course.

His first management book, Innovation Tournaments, was published by Harvard Business School Press. The novel, process-based approach to innovation outlined in the book was featured by BusinessWeek, the Financial Times, and the Sloan Management Review and has lead to innovation tournaments in organizations around the world. His latest book, Connected Strategies, combines his expertise in the fields of operations, innovation, and strategy to help companies take advantage of digital technology leading to new business models. The book has been featured as the cover story of the Harvard Business Review and has been shortlisted for the prestigious Thinkers 50 award, the “Oscar of Management”.

Professor Terwiesch has researched with and consulted for various organizations. From small start-ups to Fortune 500 companies, he has helped companies become more innovative, often by implementing innovation tournament events and by helping to restructure their innovation portfolio. He holds a doctoral degree from INSEAD and a Diploma from the University of Mannheim.

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Research

  • Lennart Meincke, Ethan Mollick, Christian Terwiesch, Prompting Diverse Ideas: Increasing AI Idea Variance.

    Abstract: Unlike routine tasks where consistency is prized, in creativity and innovation the goal is to create a diverse set of ideas. This paper delves into the burgeoning interest in employing Artificial Intelligence (AI) to enhance the productivity and quality of the idea generation process. While previous studies have found that the average quality of AI ideas is quite high, prior research also has pointed to the inability of AI-based brainstorming to create sufficient dispersion of ideas, which limits novelty and the quality of the overall best idea. Our research investigates methods to increase the dispersion in AI-generated ideas. Using GPT-4, we explore the effect of different prompting methods on Cosine Similarity, the number of unique ideas, and the speed with which the idea space gets exhausted. We do this in the domain of developing a new product development for college students, priced under $50. In this context, we find that (1) pools of ideas generated by GPT-4 with various plausible prompts are less diverse than ideas generated by groups of human subjects (2) the diversity of AI generated ideas can be substantially improved using prompt engineering (3) Chain-of-Thought (CoT) prompting leads to the highest diversity of ideas of all prompts we evaluated and was able to come close to what is achieved by groups of human subjects. It also was capable of generating the highest number of unique ideas of any prompt we studied.

  • Nicolaj Siggelkow and Christian Terwiesch (2023), Create Winning Customer Experiences with Generative AI, Harvard Business Review.

    Abstract: The launch of ChatGPT will be remembered in business history as a milestone in which artificial intelligence moved from many narrow applications to a more universal tool that can be applied in very different ways. While the technology still has many shortcomings (e.g., hallucinations, biases, and non-transparency), it’s improving rapidly and is showing great promise. It’s therefore a good time to start thinking about the competitive implications that will inevitably arise from this new technology. Many executives are wrestling with the question of how to take advantage of this new technology and reimagine the digital customer experience? For value creation to happen, we have to think about large language models as a solution to an unmet need, which requires a precise understanding about the pain points in customer experiences. From finance to healthcare and from education to travel, industry observers expect an explosion of service innovations and new digital user experiences on the horizon.

  • Nicolaj Siggelkow and Christian Terwiesch, “New Business Models for the Digital Age: From After-Sale Services to Connected Strategies”. In Creating Values with Operations and Analytics, edited by Hau Lee, Ricardo Ernst, Arnd Huchzermeier, Shiliang Cui, (Berlin: Springer, 2022), pp. 23-39

    Abstract: More and more firms use connected technologies to reshape fundamentally the way in which they interact with their customers. Rather than having few episodic interactions, companies are trying to create a continuous relationship with their customers that reduces friction and allows companies to anticipate the needs of their customers. In this chapter, we discuss new business models enabled by this development. We do so by reviewing some of the literature on after-sales services in general and some of Morris Cohen’s pioneering research in particular. We then extend this prior work by articulating a framework of “Connected Strategy” in the form of a taxonomy of four connected customer experiences. Finally, we apply our Connected Strategy framework to the domain of healthcare delivery.

  • Nicolaj Siggelkow and Christian Terwiesch (2021), Designing a Seamless Digital Experience for Customers, Harvard Business Review.

    Abstract: Connected strategies can become a powerful new source of competitive advantage. And connected technologies have greatly advanced over the recent past. Customers and employees are increasingly expecting well-designed digital experiences, a trend that certainly has further accelerated during the pandemic. Consequently, the question companies face currently is not a matter of “whether they should implement a connected strategy,” but a matter of “how.” When designing a successful connected strategy, the technological innovation is only one piece of the puzzle. In order to create a lasting competitive advantage, companies need to match the right technological solutions with the right customer needs. This article discusses four connected customer experiences that firms can create: 1) respond-to-desire; 2) curated offering, 3) coach behavior, and 4) automatic execution, to turn episodic interactions with customers into continuous relationships.

  • Christian Terwiesch (Forthcoming), Work after Work: The Impact of eVisits on Provider Work Hours.

  • Diwas KC, Stefan Scholtes, Christian Terwiesch (2020), Empirical Research in Healthcare Operations: Past Research, Present Understanding, and Future Opportunities, Manufacturing and Service Operations Management, 22 (1), pp. 73-83.

  • Dawson Kaaua, Santiago Gallino, Christian Terwiesch, S Mehta (Working), The Impact of Waiting Location on Customer Satisfaction: An Empirical Analysis of Preoperative Patient Flow.

  • Christian Terwiesch, Bradley R. Staats, Marcelo Olivares, Vishal Gaur (2019), A Review of Empirical Operations Management over the Last Two Decades, Manufacturing and Service Operations Management.

  • Tan (Suparerk) Lekwijit, Christian Terwiesch, David Asch, Kevin Volpp (Forthcoming), Evaluating the Efficacy of Connected Healthcare: An Empirical Examination of Patient Engagement Approaches and Their Impact on Readmission.

    Abstract: Connected healthcare is a form of health delivery that connects patients and providers through connected health devices, allowing providers to monitor patient behavior and proactively intervene before an adverse event occurs. Unlike the costs, the benefits of connected healthcare in improving patient behavior and health outcomes are usually difficult to determine. In this study, we examine the efficacy of a connected health system that aimed to reduce readmissions through improved medication adherence. Specifically, we study 1,000 patients with heart disease who received electronic pill bottles that tracked medication adherence. Patients who were non-adherent received active social support that involved different types of feedback such as text messages and calls. By integrating data on adherence, intervention, and readmission, we aim to (1) investigate the efficacy of connected healthcare in promoting medication adherence, (2) examine the relationship between medication adherence and readmission, and (3) develop a dynamic readmission risk-scoring model that considers medication adherence and use the model to better target non-adherent patients. Our findings suggest that patients are more likely to become adherent when they or their partners receive high levels of intervention that involve personalized feedback and when the intervention is escalated quickly and consistently. We also find that long-term adherence to two crucial heart medications, statins and beta-blockers, is strongly associated with reduced readmission risk. Lastly, using counterfactual simulation, we apply the dynamic readmission risk-scoring model to our setting and find that, when using an intervention strategy that prioritizes high-risk patients, we obtain 10% fewer readmissions than we would obtain without considering readmission risk while using the same effort level from the patient support team.

  • Nicolaj Siggelkow and Christian Terwiesch (2019), Five Questions to Consider When Pricing Smart Products, Harvard Business Review.

    Abstract: The revenue model is one of the most important elements of a firm’s strategy. It defines the ways in which a firm gets compensated for the value that its products or services generate. In the old days, revenue models primarily consisted of picking a “good” price. Connected, smart devices are changing this paradigm. To think systematically about revenue models and to spot opportunities for improvement, consider: what is paid for, when the payment is made, who is paying, why the customers are paying, and what currency the customer is paying with.

Teaching

Online Teaching:

HEALTH CARE OPERATIONS with LAB: APPLYING HEALTH CARE OPERATIONS (Penn Medical Ethics and Health Policy Online Education Center)

INTRODUCTION TO OPERATIONS MANAGEMENT (Coursera)

Current Courses (Fall 2024)

  • HCIN6010 - Health Care Operations

    The word "operations" derives from the Latin "opus," and opus means work. So by definition, operations is about work. This course offers an introduction to operations management. After completing the course, you will be able to use a systematic approach to analyze and improve your work in health care settings. The course includes an examination of inefficiencies resulting from the three system inhibitors: waste, variability, and inflexibility. And it provides strategies for engaging in the ongoing process of reducing these negative impacts without sacrificing quality of care. Major units also cover health care delivery processes, lean ops, agility, and managing the service organization. You will practice identifying key performance indicators in health care systems, forecasting demand, predicting utilization and variability, determining staffing levels, and recommending process improvements and innovations to improve client satisfaction.

    HCIN6010001

    HCIN6010002

  • HCIN6012 - Connected Health Care

    Connected strategies have the potential to radically transform health care business models. By designing connected relationships and architectures, and developing digital and analog networks, we may be able to improve quality of care while also making efficient use of resources. These strategies can enhance existing organizations and can also foster disruptive innovation. In the first 4 weeks of the course, we will practice using the conceptual and practical components of connected strategies, including: • Building connected customer relationships • Designing connection architectures • Understanding new revenue models • And creating the infrastructure of connection In the final 2 weeks, you will methodically apply what you have learned to design a connected strategy for your organization or service, and you will come away with a body of work you will be able to build upon in future endeavors. After completing this course, you will be able to: 1. Identify points along the customer or patient journey that are good candidates for innovation. 2. Customize connected relationships to anticipate and seamlessly meet customer needs. 3. Discern financial opportunities offered by the implementation of connected strategies. 4. Select technological solutions that facilitate the implementation of connected relationships. 5. Create comprehensive connected strategies that are applicable in health care settings.

    HCIN6012001

    HCIN6012002

  • OIDD6110 - Quality And Productivity

    Matching supply with demand is an enormous challenge for firms: excess supply is too costly, inadequate supply irritates customers. In the course, we will explore how firms can better organize their operations so that they more effectively align their supply with the demand for their products and services. Throughout the course, we illustrate mathematical analysis applied to real operational challenges--we seek rigor and relevance. Our aim is to provide both tactical knowledge and high-level insights needed by general managers and management consultants. We will demonstrate that companies can use (and have used) the principles from this course to significantly enhance their competitiveness.

    OIDD6110001 ( Syllabus )

    OIDD6110003 ( Syllabus )

  • OIDD8990 - Independent Study

    OIDD8990003 ( Syllabus )

All Courses

  • HCIN6010 - Health Care Operations

    The word "operations" derives from the Latin "opus," and opus means work. So by definition, operations is about work. This course offers an introduction to operations management. After completing the course, you will be able to use a systematic approach to analyze and improve your work in health care settings. The course includes an examination of inefficiencies resulting from the three system inhibitors: waste, variability, and inflexibility. And it provides strategies for engaging in the ongoing process of reducing these negative impacts without sacrificing quality of care. Major units also cover health care delivery processes, lean ops, agility, and managing the service organization. You will practice identifying key performance indicators in health care systems, forecasting demand, predicting utilization and variability, determining staffing levels, and recommending process improvements and innovations to improve client satisfaction.

  • HCIN6012 - Connected Health Care

    Connected strategies have the potential to radically transform health care business models. By designing connected relationships and architectures, and developing digital and analog networks, we may be able to improve quality of care while also making efficient use of resources. These strategies can enhance existing organizations and can also foster disruptive innovation. In the first 4 weeks of the course, we will practice using the conceptual and practical components of connected strategies, including: • Building connected customer relationships • Designing connection architectures • Understanding new revenue models • And creating the infrastructure of connection In the final 2 weeks, you will methodically apply what you have learned to design a connected strategy for your organization or service, and you will come away with a body of work you will be able to build upon in future endeavors. After completing this course, you will be able to: 1. Identify points along the customer or patient journey that are good candidates for innovation. 2. Customize connected relationships to anticipate and seamlessly meet customer needs. 3. Discern financial opportunities offered by the implementation of connected strategies. 4. Select technological solutions that facilitate the implementation of connected relationships. 5. Create comprehensive connected strategies that are applicable in health care settings.

  • HCIN6060 - Applying Operations Mgmt

    Analyze 2 health care cases; through the process of forecasting, build a KPI tree; and recommend process improvements.

  • HCIN6100 - Connected Health Care

    Technology has allowed firms to fundamentally change how they connect with their customers. Rather than having occasional, episodic interactions--where customers realize they have an unmet need and then look for ways to fill it--firms are striving to be continuously connected to their customers, providing services and products as the needs arise, even before customers become aware of them. There is probably no other industry for which this development will be as transformative as in health care delivery. Wearable devices, smart pill bottles, and digestible sensors--all of these technologies, and many more, are associated with the promise of improving the quality of care while also making efficient use of resources. This course explores the impact of connected strategies in general, and in particular the opportunities associated with them in health care delivery.

  • MGMT8910 - Advanced Study-Smgt

  • OIDD6110 - Quality and Productivity

    Matching supply with demand is an enormous challenge for firms: excess supply is too costly, inadequate supply irritates customers. In the course, we will explore how firms can better organize their operations so that they more effectively align their supply with the demand for their products and services. Throughout the course, we illustrate mathematical analysis applied to real operational challenges--we seek rigor and relevance. Our aim is to provide both tactical knowledge and high-level insights needed by general managers and management consultants. We will demonstrate that companies can use (and have used) the principles from this course to significantly enhance their competitiveness.

  • OIDD9410 - Dist System Sem

    Seminar on distribution systems models and theory. Reviews current research in the development and solution of models of distribution systems. Emphasizes multi-echelon inventory control, logistics management, network design, and competitive models.

Awards and Honors

  • Distinguished Fellow: Manufacturing & Service Operations Management, 2017
  • Executive MBA Excellence in Teaching Award (Philadelphia), 2017
  • Executive MBA Excellence in Teaching Award (San Francisco), 2017
  • Executive MBA Excellence in Teaching Award (Philadelphia), 2016
  • Executive MBA Excellence in Teaching Award (San Francisco), 2016
  • Named by Online Course Review as one of the 50 Most Popular MOOCs of All Time, 2015
  • Named by Talk Magazine as one of the Five Best Business Courses Online, 2015
  • Executive MBA Excellence in Teaching Award (Philadelphia), 2015
  • Executive MBA Excellence in Teaching Award (San Francisco), 2015
  • Executive MBA Excellence in Teaching Award (San Francisco), 2014
  • Helen Kardon Moss Anvil Award winner, 2012
  • MBA Excellence in Teaching Award, 2012
  • “Goes above and beyond the call of duty”, 2012
  • “Tough, but I’ll thank you in 5 years”, 2012
  • “Tough but I will thank you in five years” award recipient, 2011
  • “Goes above and beyond the call of duty” award recipient, 2011
  • One of ten faculty nominated by the MBA student body for the Helen Kardon Moss Anvil Award, 2010
  • MBA Excellence in Teaching Award, 2010
  • “Goes above and beyond the call of duty” award recipient, 2009
  • “Tough but I will thank you in five years” award recipient, 2009
  • Executive MBA Core Teaching Award, 2009
  • Wharton Class of 2008 “Goes above and beyond the call of duty” award recipient, 2008
  • One of ten faculty nominated by the MBA student body for the Helen Kardon Moss Anvil Award, 2007
  • MBA Core Teaching Award, 2007
  • Miller-Sherrerd Core Teaching Award, 2006
  • MBA Core Curriculum Award “Goes above and beyond the call of duty”, 2006
  • Teaching Awards for MBA and Executive MBA teaching, 1998-2005
  • MBA Core Curriculum Award “Goes above and beyond the Call of duty”, 2003
  • Miller-Sherrerd MBA Core Teaching Award, 2002
  • Teaching Excellence Award (Wharton), 2002
  • Executive MBA Teaching Award for best Core Course, 2002
  • Finalist in the Helen Kardon Moss Anvil Award, 2002
  • Research Grant from Wharton e-Business Initiative for Analysis of Name-Your-Own Price Retailing, 2002 Description

    $7,000

  • Miller-Sherrerd MBA Core Teaching Award, 2001
  • Finalist in the Helen Kardon Moss Anvil Award, 2001
  • Research Grant from Wharton e-Business Initiative for Analysis of Name-Your-Own Price Retailing, 2001 Description

    $17.1K

  • Teaching Excellence Award (Wharton), 2001
  • Teaching Excellence Award (Wharton), 2000
  • Finalist in the Helen Kardon Moss Anvil Award, 2000
  • Teaching Excellence Award (Wharton), 1999
  • Daimler Benz Research Grant as a participant of the Circle Member Group, 1995
  • Distinguished Fellow: Manufacturing & Service Operations Management, 1970

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Latest Research

Lennart Meincke, Ethan Mollick, Christian Terwiesch, Prompting Diverse Ideas: Increasing AI Idea Variance.
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In the News

What Will AI in Education Look Like? | Christian Terwiesch

Professor Christian Terwiesch discusses how AI is transforming education.…Read More

Knowledge at Wharton - 8/13/2024
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