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Box Case 1.1: Metro AG’s ‘Future Store’, Germany


Box Case 1.1: Metro AG s Future Store , Germany World s fifth largest retailer joined forces with Intel and SAP to build a fully working prototype ... – PowerPoint PPT presentation

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Title: Box Case 1.1: Metro AG’s ‘Future Store’, Germany

Box Case 1.1 Metro AGs Future Store, Germany
  • Worlds fifth largest retailer joined forces with
    Intel and SAP to build a fully working
    prototype supermarket
  • RFID smart-tag technology used on all products
  • Shopping trolleys have touch screen computers and
  • Smart tags cost 0.5 Euros each and are currently
    too expensive for every item in very supermarket

Box Case 1.2 Gillette
  • Gillette Mach 3 razor is a first-to market
  • Developed at a very high cost
  • A UK supermarket chain was quickly able to
    produce a good copy at a fraction of the original
  • Gillette have been more dependent therefore on
    expensive television advertising to protect sales
    of their product
  • When products are easy to copy, competitors can
    leapfrog original features and Wilkinson Sword
    Company have now introduced a 4 blade razor

Photos taken from
Box Case 1.3 Tetleys Teabags
  • Tetley is a market leader and the originator of
    the round teabag
  • Advertising was based around a better cup of tea
    that would result from bags where the tea could
    circulate better
  • Knew that competitors would try and copy
  • Hired consultants to develop a new manufacturing
    line for round teabags
  • When new product was introduced competitors were
    unable to obtain similar manufacturing equipment
    and Tetley maintained its lead

Photos taken from
Box Case 1.4 Les Concierges, India
  • Targets cash rich, time poor segment starting
    in Bangalore
  • Idea is an in-company help desk offering
    executives 4 categories of support
  • shopping
  • everyday and special tasks
  • entertainment
  • travel
  • Company philosophy is High tech / High touch
  • 1m and over 350 staff

Box Case 1.5 Singapore Airlines
  • Voted worlds best airline in surveys by travel
  • First-to-market strategy for many years
  • More modern aircraft offering
  • larger than average seating
  • first in-flight phones and faxes
  • Led in the introduction of electronic tickets
  • Flexible for flight confirmations by phone, fax
    or email
  • Staff receive longer and more detailed training
  • Visit senior citizens homes

Case Study DoCoMo
  • How can partnerships and alliances help a company
    in the service sector achieve its innovation
  • How can service and product strategies of
    different companies be aligned to target specific
    customers segments?
  • How can a service provider make it harder for
    competitors to copy innovations?

Figure 1.11 DoCoMo i-Mode Collaboration
Box Case 2.1 Australian Medical Care
  • Healthcare is a major part of the service sector
  • ARCHI supports implementation of effective and
    quality improvements through
  • seminars, publishing reports, producing case
    studies and communicating new ideas to healthcare
  • Treatment being improved not only by drugs and
    medical technology but also through suitable use
    of quality management techniques
  • Culture of medical profession changing

Box Case 2.2 Dutch Government Policy and RD
  • Many governments have used relaxation of taxation
    as a means to stimulate innovation
  • In Holland, where companies deduct income tax and
    social security payments directly, they have been
    allowed to pay lower tax amounts on behalf of
    their RD staff
  • Proved popular with SMEs, who receive 60 of the
    budget allocated to the scheme
  • Nearly 15,000 organizations benefited in 1999
  • Research has shown that both RD expenditures and
    the number of RD employees has increased

Box Case 2.3 Repsol YPF, Argentina
  • Distributes natural gas to over 9 million clients
    in Spain and Latin America
  • In partnership with VW, introduced the Polo CHG
    in 2002
  • Now nearly 1 million gas-powered cars on the
  • Over 1000 petrol stations offering gas supplied
    by Repsol YPF in 205 towns and cities in
  • Average annual saving per year one months
    average salary
  • Repsol YPF and VW offer a full service (inc.
    installation and registration)

Box Case 2.4 Extricom GmbH, Germany
  • Small company near Stuttgart
  • Competing in the twin-screw extruder market
  • Original twin-screw extruder developed in the
  • Today, there are over 100 companies worldwide
    offering twin-screw technology
  • Technology has largely become a commodity
  • Margins are relatively narrow
  • Led to the market leaders to also produce
    replacement parts for their competitors machines
  • Extricom has developed the latest technology
    12-screw extruders which allow materials to be
    processed more efficiently through improved flow

Photos taken from
Box Case 2.5 Dvorak versus QWERTY
  • Are the best innovations always adopted?

Case Study Richardson
  • How can successful companies avoid being trapped
    with one technology or product concept?
  • How can links between the innovation strategy and
    new product development be made effective?
  • How can the product concepts be selected that are
    most likely to be successful?
  • Should new technologies be developed parallel to
    new products?

Figure 2.4 Case Study Richardson
Core business review
Mission corporate objectives
S.W.O.T analysis
Technology push
Blue Sky Research
Marketing audit
Customer pull
Objectives Market penetration New product
development Market extension Diversification
Strategic screen
List of potentials
File Richardson1.ppt
Box Case 3.1 Boeing and Airbus
  • Boeing and Airbus have been challenged to provide
    more innovative cabin designs
  • Within the limitations of costs and space
  • Focus is to be on the spatial layout, i.e. more
    comfortable seating and cabins that give
    impression of space
  • Innovation s such as luggage bins that lift out
    of the way provide extra space
  • Décor, mirrors, dividing walls and lighting can
    all give the impression of more space
  • Size of windows has also been found by
    psychologists to have a strong influence on
    passenger well-being

Photos taken from
Box Case 3.2 Dial-a-Flight
  • Successful European Internet retailer of travel
    and tourism services
  • Strategy to improve customer contact and provide
  • Fast search engine, high personal contact for
    confirmation (your representative)
  • Employees are skilled, personable and
    enthusiastic about their products

Box Case 3.3 Malaysia Airlines
  • One third of the dollar value of all goods
    shipped globally is air freight, growth rate over
    6 for next 20 years
  • Shipments from Asia include high value
    electronics and perishables, e.g. seafood
  • Prompted by the Gap Model Malaysia Airlines
    management conducted interviews. In-depth
    discussions with 19 airfreight managers revealed
    a total of 44 attributes of airfreight
  • Information gained allowed them to decide on how
    to enhance service augmentation and how to price

Box Case 3.4 Innovating in Healthcare
  • In many healthcare systems, waiting times are
    long, staff members are overworked and drab décor
    is not unusual
  • The role of the augmented service, in particular
    the servicescape, has been linked directly to the
    bottom-line in recent research in the US
  • Hospitals that had been decorated in pastel
    shades and where attractive artwork was hung on
    the walls were found to have a higher level of
    well being in their patients
  • These departments found that dosages of
    self-administered painkillers were up to 45
    lower, subsequently leading to significant savings

Box Case 3.5 Halifax Building Society
  • Focuses on the fast development of new service
    products, including new lending packages for
    house purchasers
  • Reduced time to develop and introduce new
    mortgage packages from six months to a few weeks
  • Four main steps to development process
  • Concept development
  • Trial
  • Delivery system definition
  • Introduction

Case Study AXA Insurance
  • What sort of ideas lead to the most important
    innovations? Are they brainwaves that lead to
    radical products or are they more pedestrian?
  • How can the best ideas be selected?
  • How can the nature of innovation be effectively
    communicated within a service organization?

Figure 3.5 AXA Innovation Quadrant
Create new customer- focused opportunities (10)
Improve existing products, services and
processes (40)
Eliminate non-value adding activities (40)
Re-use AXA global success stories (10)
Box Case 4.1 Allianz Versicherung
  • Hauspannenversicherung House 24 hour breakdown
  • Covers most important house emergencies for 4,86
    EUR a month
  • Covers up to 300,- EUR per callout
  • Single call and qualified tradesmen will be sent
  • Allianz organizes the payments
  • Developed by cross-functional, dual company team

Box Case 4.2 Formule 1 Hotels, France
  • Launched in 1985, new concept for low-cost hotels
  • Customers just wanted a good nights sleep
  • Just provide basic facilities no traditional
    features, e.g. lounges, eating facilities,
    receptionist, spacious rooms, etc
  • Market leader in the sector
  • Within 10 years market share exceeded that of its
    5 nearest rivals combined

Box Case 4.3 Fiat IVECO
  • Mass-customization has influenced many companies
  • Fiat have designed a matrix for engineers to
    analyze the trade-offs between cost and
    customization of components in car design
  • Compares cost of variety against the importance
    to the customer of variety of car components
  • Variety that has low value is eliminated where
  • Components whose variety can add high perceived
    value are given high priority

Box Case 4.4 Betamax and VHS
  • Sony launched Betamax, the first video recorder
    designed for the home market, in 1975 JVC
    followed with the VHS a year later
  • Sony was first-to-market but their 1-hour
    recording length was felt to be too short
  • VHS offered 2 hours from the start and many major
    companies decided to wait for it
  • Sony launched a 2-hour machine only 5 months
    after the launch of the VHS
  • The market for VCRs grew dramatically from
    around 20,000 units a year in 1975 to nearly 20M
    in 1983 and 40M in 1987
  • Sonys sales grew until 1984 but dropped when VHS
  • JVC gave greater emphasis to signing up partners
    and distributors
  • The better range of pre-recorded films in turn
    made VHS more popular with buyers

Box Case 4.5 Hewlett-Packard
  • When it first emerged, inkjet could not rival the
    quality of laser printing
  • But it was low cost, low noise and low power
  • HP set up a separate division tasked with
    exploiting inkjet in whatever applications it
    could find
  • Strategy paid off when the quality of inkjet
    printing eventually rose high enough to displace
    laser from much of the desktop market
  • However, HP would still have had a profitable, if
    modest business, without this improvement

Case Study Domino Printing Sciences
  • How can companies recognize that their
    technological basis is facing a technical limit?
  • Do such technological limits necessarily matter?
  • What issues face a company adopting a new
    technology that fully replaces their current one?
  • What issues face a company adopting a new
    technology that overcomes deficiencies of their
    current one but does not fully replace it?
  • What problems may a single-technology company
    expect to face when it adopts new, overlapping

Box Case 5.1 PA Consulting Group, UK
  • Around 200 engineers, scientists and technicians
  • Technical Director perceives his role as tending
    his garden in which creativity can flourish
  • Creativity is a free spirit it is an elusive
    subject to harness effectively into the delivery
    of business benefits
  • Division has been responsible for a number of
    hugely successful product innovations for
    well-known companies

Box Case 5.2 Equant
  • Major data network provider
  • Used repertory grid interviews to spot emerging
    customer needs
  • Found that customers perceptions are not just
    based on technical measures

Box Case 5.3 Clarks
  • Company planned to enter the walking boots
  • Conducted ethnographic market research into both
    the usage of walking boots and the buying
    decision I needed to understand the buying
    habits, end use and expectations of our new
    customer (Product Manager)
  • Identified that potential buyers will try on only
    about 2-3 pairs of boots
  • Designed the tongue of the boot so that potential
    buyers perceived the boots to be particularly

Box Case 5.4 Micro Scooters
  • The urban scooter was smash hit and continues to
    be popular today.
  • Wim Obouter recognized that when he wanted to go
    out for a drink or a meal in the evening, it was
    often too far to walk but not far enough to
    warrant getting his bicycle out of the cellar, or
    to drive.
  • He found a partner company to fund the tooling
    and a Japanese retail partner with an opening
    order of 20,000 scooters. These sold immediately
    and the market grew quickly to sales of 75,000
    units per weekalmost an instant success.
  • the product was great but it needed a strong
    brand to maintain a market leadership position.
  • With hindsight, Wim sees two issues with patents
    the time required before cover is achieved and
    the investment needed to enforce them.

Case Study Texas Instruments
  • How does the chosen innovation strategy impact
    the management of ideas?
  • If end users do not understand the technology,
    how can they generate useful inputs for product
  • How can managers match market trends to
    technological advances?
  • How can customers be encouraged to give ideas
    that are not simply based on improving current

Box Case 6.1 The World Bank
  • Aim is to alleviate poverty. Used to avoid
    funding anything with a high risk, decision
    process was slow
  • Now project selections projects in the way
    venture capitalists make funding decisions
  • Spread risks , not just going for the big one
  • Initial funding is now available for the first
  • Subsequent financing is dependent on defined
    results being achieved in a set timeframe
  • Experimenting more and running pilot programmes
    to test radical ideas
  • Range of products being considered and the
    selection process is transparent Innovation
  • Decisions made by panel of judges drawn from
    industry and a variety of non-profit

Source Chapman Wood and Hamel, 2002.
Box Case 6.2 Zara
  • Spanish fashion retailer - major part of the
    Inditex Group
  • 90 of goods made in own factories in northern
    Spain and Portugal transported to over 600 stores
    in 30 countries
  • 15 return on sales 5 times the typical level
    in the sector and still growing strongly
  • Described as possibly the most innovative and
    devastating retailer in the world
  • Key to Zaras success is the speed with which it
    can get new designs to market 2-3 weeks, the
    norm in the sector being 5-10 months

Box Case 6.3 Laserco
  • A manufacturer of laser systems based in the US
    and Germany
  • It was clear that managers in the two parts of
    the company had different tolerances of risk. The
    two teams also tended to emphasize different
    aspects of the market, the Americans being more
    used to seeking high volume opportunities while
    the Germans tended to pursue applications with
    lower volume but higher margins.
  • we discussed the facts of each project and then
    scored them individually. Then we discussed the
  • At the end we recorded the range of each score as
    well as the mean. People felt much more
    comfortable not trying to force a consensus.

Box Case 6.4 Agilent Technologies
  • Financial controlling took wider role champions
    and drives the portfolio for maximum return
  • Became a business partner
  • Developed portfolio tools and techniques (e.g.
    scoring for attractiveness/risk diagrams) with
    top management
  • The value is in the discussion and less in the
    absolute value of the scores
  • Senior managers all measured on the performance
    of the whole portfolio (not just, for example,
    RD progress)
  • Team learnt to have the courage to say no

Box Case 6.5 Fruit of the Loom
  • Used a bubble diagram to summarize all of the
    process innovation projects within the company
  • Process innovation portfolio management has been
    very successful for Fruit of the Loom

Case Study Britannia Building Society
  • What difficulties face a company trying to create
    an innovation culture?
  • Can innovation be imported into an organization
    from outside or must it grow from within?
  • How does innovation management differ in service
    and manufacturing enterprises?
  • What criteria are appropriate for evaluating
    projects in the service sector?

Figure 6.15 Britannias Project Scoring System
Box Case 7.1 NZ DoC, New Zealand
  • Invasions of rats from overseas on many south
    Pacific islands killing indigenous birds
  • NZ DoC looked at eliminating rodents entirely
    (impossible) - the Pest Eradication
    Programme Restoring the Dawn Chorus
  • Development of new poisons and experiments on
    small islands to eliminate a single rodent
  • Moved to larger and more complex islands and
    multiple species
  • 13 species of rodent had been eradicated from 60
    islands by 1990 20 by 2001
  • Other countries are now copying the DoCs success
  • Key success factors?

Box Case 7.2 Pizza Hut
  • 7-stage NPD process called the FRPP the Field
    Ready Product Process
  • Defines the steps that are necessary to develop
    the recipe, select suppliers, test
    manufacturability and ensure positive customer
  • Ensures that employees are adequately trained on
    the new product before its release
  • Essential to have a reliable but flexible NPD
  • Key success factors?

Box Case 7.3 Organon
  • Organon creates, produces and markets
    prescription drugs mainly for reproductive
    medicine, psychiatry and anaesthesia.
  • The main risks related to the uncertain demand
    for pharmaceuticals are over- capacity and lost
  • Organon product launch plans include different
    sales scenarios best, expected, and worst cases.
  • Based on these sales scenarios, a number of
    supply chain design options are prepared.
  • Each supply chain design option is quantitatively
    evaluated on 5 criteria finance, risk, available
    resources, flexibility to scale production up and
    down, and the confidence in the assumptions.
  • It is important not only to have an excellent
    product but also to match it with the best supply
    chain design.

Box Case 7.4 Bank of America
  • Bank of America realized that testing new
    services and delivery mechanisms is just as
    important as physical prototypes for tangible
  • 20 test branches were equipped with new systems
    and the staff received training on the test
    services that would be offered.
  • Staff members are normally paid on a commission
    basis and so they found that their incomes were
    dropping significantly because of the time that
    they spent on new services. This was solved by
    putting the staff on a fixed salary
  • It shows that the motivation of employees can be
    a key consideration in the design of new service

Box Case 7.5 Fiat Iveco
  • Iveco is the arm of Fiat responsible for
    manufacturing and marketing commercial and
    industrial vehicles, buses and diesel engines.
  • Truck drivers live in their vehicles on long
    journeys and so part of developing a vehicle is
    designing a living space.
  • To really understand truck drivers needs,
    Fumarola moved his whole marketing team for two
    weeks to a motorway truck stop just south of the
  • Many manufacturers design the next generation
    product by focusing on what the users needs will
    be at the time of the product introduction.
  • We have learnt to look further into the future,
    as our product life cycles are long that can
    mean thinking 20 years ahead

Box Case 7.6 Cruise Liners
  • World cruise business is 8 million guests per
    year, approx 150 cruise liners sailing the
    worlds oceans
  • Typical guest spends 2,500 for 7 nights
  • New concepts often encounter problems (e.g.
  • Safety deposit boxes missing
  • Lack of drawer space in staterooms
  • Lack of drinks stations in Food Court slowed
    the service
  • Waste outlets and air inlets
  • Blueprints discussed

Case Study Wipro Technologies
  • What are the issues when new product development
    is conducted at multiple sites? How can these
    issues be addressed?
  • How can the product development process be
    optimized through learning from each project?
  • What should companies do to stimulate learning
    that is not just related to specific new product
    development projects?

Box Case 8.1 United Parcel Service Culture and
  • One of 16 Fortune 100 companies from 1900,
    350,000 employees
  • Culture perceived as myths, rituals, language,
    ideas, goals and values
  • Policy Book and Code of Business Conduct
  • First logistics company to experiment with air
    freight (in 1925)
  • Focus on cost-effective package shipping led them
    to trail Fedex
  • Now offer choice of services (options on delivery
    and price)

Box Case 8.2 Texas Instruments
  • There can be a downside to inventiveness if it
    becomes the strongest component of RD culture -
    it can lead to the proverbial reinvention of the
  • RD engineers do not always need to start from
    scratch. Unfortunately the not invented here
    (NIH) syndrome, where researchers do not adopt or
    adapt existing ideas, instead insisting on
    developing their own original solutions, wastes
  • Texas Instruments (TI), the developer and
    manufacturer of integrated circuits, has taken
    steps to avoid NIH as part of their Vision 2005
  • This includes an annual NIHBWDIA prize for the
    RD employee who takes an idea from somewhere
    else and makes a significant contribution to
    product or process innovation

Box Case 8.3 QB Shell, Japan
  • Hairdressing chain in Asia
  • Addressed time poor segment
  • Process flow analysis conducted and service
    augmentation optimized
  • Ergonomic shells
  • No payments
  • Waiting lights
  • Locations
  • Major success

Box Case 8.4 3M
  • There are three levels at which 3M has taken
    steps to stimulate more innovation at the
    company, team and individual level.
  • At the company level these goals were 30 per cent
    of revenues must be from products less than four
    years old and ten per cent from products less
    than one year.
  • Action Teams were introduced for NPD. 3M found
    that not only the Action Teams needed training
    but also top management needed coaching to back
    off and really empower the team.
  • At the individual level, 3M have taken steps to
    promote and reward innovation. The rule that
    development people can spend up to 15 per cent of
    their time on investigating their personal ideas
    is almost as famous as the Post-it.

Box Case 8.5 Lockheed
  • Sometimes large organizations can stifle
    innovation through their control systems and
  • Mimicking the advantages of a small start-up is a
    popular approach that is normally referred to as
    starting a skunk works.
  • The original skunk works was created to
    accelerate the design of a new jet fighter in
    1943. Lockheed assigned a team of 23 engineers to
    the project and freed them from the bureaucracy
    and the official RD process.
  • The results for Lockheed were dramatic the
    Shooting Star jet was designed in 43 days and
    was the first American-designed aircraft to
    exceed 500 miles per hour.

Box Case 8.6 Fischer GmbH
  • Manufacturer of industrial fixing devices based
    in southern Germany
  • The company has a tradition of innovationit has
    filed hundreds of patentsand so there has always
    been a strong focus on RD generating ideas for
    new products.
  • Employees contributions to innovation are
    assessed in annual appraisals using a 1-5 scale.
  • Although the rating is subjective, it stimulates
    discussion between employees and management about

Box Case 8.7 Zenith Electronics
  • The US-based Zenith Electronics Corporation
    normally used after the event awards, given to
    teams or individuals for top performance.
  • A multi-million dollar contract with a heavy
    delivery time penalty clause led to a new
  • It was decided to create a share scheme for
    the project with a sum of several hundred
    thousand dollars reserved for rewarding the large
  • Dedicated team members were allocated 200 shares
    and part-timers received 50. The initial value of
    the shares was zero but the successful
    achievement of each milestone and quality target,
    led to set increases in the share value, whereas
    each day of delay would lead to a defined loss in
    share value.
  • Zenith has recognized the need to regularly
    update their reward system.

Box Case 9.1 Evotec OAI
  • Leading provider of biological, chemical and
    screening services, 600 employees
  • Clients include BASF, GlaxoSmithKline, Pfizer and
  • 5 years ago OAI conducted an innovation audit
  • Interviews held with all functions and levels
  • Results were revealing staff rated OAI low on
    creativity innovation was not perceived as
    customer-led knowledge not optimally applied
    not enough communication between the two
    divisions clearer rewards needed
  • Audit showed that management and employees viewed
    potential for innovation differently. Management
    quickly set about making some significant changes

Box Case 9.2 Cobra, Thailand
  • Based in Chonburi in Thailand, founded in 1985.
    Manufacturer of windsurf and surfboards and a
    range of other items for recreational sports.
  • Cobra is constantly developing the combination
    of methodologies and materials says Pierre
    Olivier Schnerb, Vice President of Technology.
    For example, Cobra Tuflite? technology applies
    techniques learnt from windsurfing to surfing.
  • The employees have intimate knowledge of the
    sports for which they manufacture equipment.
  • In order to stay innovative, employees are given
    the power to create, experiment, and decide.

Box Case 9.3 Fiat Iveco
  • Massimo Fumarola says, in my opinion there are
    three challenges in managing innovation.
  • one has to do with the organization and there is
    a dilemma. On the one hand we want employees to
    work in structured, methodical ways to produce
    products in a timely, in fact a very disciplined
    way. On the other hand, we want people to
    challenge the established ways of thinking and
  • Getting enough people with the right experience
    is something we need to work on.
  • Thirdly, its about getting everyone involved.

Box Case 9.4 Synectics
  • Leading innovation management consultancy,
    founded in 1960
  • Founders taped thousands of hours of new product
    development meetings and analysed how people
  • Tools and techniques were developed for
    generating creative product ideas
  • springboards generating thoughts that lead to
    new thinking
  • excursions process to enable the power of the
    subconscious to be released onto a problem
  • itemized response process for protecting
  • These techniques have been applied in a diverse
    range of companies. Key successes include
  • helping Liptons turn iced tea from a summer
    product to a popular year-round drink
  • improving the logistics processes for a major
    shipping line

Case Study Sidler GmbH Co
  • What roles can outsourcing play in a companys
    innovation strategy?
  • What criteria should be used for selecting
  • How can confidentiality be managed for innovation
    projects involving interorganizational

Box Case 10.1 Automotive
  • The concept is to assemble cars in retail parks
    from kits shipped in from low-cost manufacturers
    in India or China.
  • By using plastic panels the company would be able
    to customise the vehicles to a high degree so as
    to be able to follow fashions.
  • Crucially, the vehicles would be leased, not
    sold, so that returned cars could be refurbished
    and leased again at a reduced rate.
  • Since there would be no second hand market, theft
    would be little or no problem (why would you
    steal a car that cannot be resold?) so insurance
    would be cheap.

Box Case 10.2 The lotus effect
  • Biologists from the University of Bonn in Germany
    investigated the lotus effect, the apparently
    smooth leaves of this plant repel water and
    almost all dirt and grime. Nanotechnology has now
    enabled this surface to be mimicked and
    easy-to-clean products are now entering the
    marketplace these include coatings for bathroom
    ceramics, paint for walls, and coatings for
    surgical devices. Easy-to-clean technology
    promises to save time.

Box Case 10.3 Vodafone Group Plc
  • Worlds largest mobile telecomm company with 146
    million customers
  • Group RD consists of 7 research and development
    centres around the world
  • German centre in Munich has 34 permanent
    employees, 20 contract staff and 20 students
  • Analyze trends, new technologies, build visions,
    monitor players and track the business
    environment to derive ideas for tomorrows
    competitive products and services
  • Present ideas at the Annual Conference attended
    by 150 Chief Technology Officers and Strategy
    Directors worldwide

Box Case 10.4 The Jaipur Foot
  • Bio-medical engineers have long studied the
    workings of the body and designed artificial
    limbs, some of which incorporate microprocessors.
  • It is estimated that 500 people per day are
    killed or lose a limb as a result of land mines
  • However, these civilians do not have the money or
    access to the high-tech devices
  • The Jaipur Foot is the solution and it is made of
    simple materials rubber, wood and aluminum -
    which are not only readily available but also can
    be worked by local craftsmen. Typically it takes
    45 minutes to build, lasts five years and costs
    about 30.

Box Case 10.5 Microsoft
  • Microsoft had little competence in the design of
    many of the key elements that go to make up a
    games console.
  • For a successful entry into this established and
    competitive market Microsoft would have to
    assemble a coalition of suppliers, whose work
    would make or break the project.
  • Microsoft had one technical card to play a suite
    of software called Direct X that made it easy to
    write games.
  • Microsoft now provides only the business and
    design concept, the finance, the styling, and the
    core operating software .All the key components
    and the manufacturing were subcontracted.
  • The X Box was launched in November 2001, by mid
    2004 they had sold 14 million units

Source Takahashi, 2002.
Case Study Hewlett-Packard BITS
  • What will be the challenges in the future in
    managing innovation?
  • Which aspects of the customer relationship are
    essential to a business model?
  • What are the key differences between managing
    innovation in small and large organizations?