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
scanners
Smart tags cost 0.5 Euros each
and are currently too
expensive for every item in
very supermarket

K. Goffin and R. Mitchell 2005

Box Case 1.2: Gillette

Gillette Mach 3 razor is a first-to market product

Developed at a very high cost
A UK supermarket chain was quickly able to produce a good copy
at a fraction of the original cost
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 www.gillette.com

K. Goffin and R. Mitchell 2005

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 www.tetley.co.uk

K. Goffin and R. Mitchell 2005

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

K. Goffin and R. Mitchell 2005

Box Case 1.5: Singapore Airlines

Voted worlds best airline in

surveys by travel magazines
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

K. Goffin and R. Mitchell 2005

Case Study: DoCoMo

How can partnerships and alliances help a company in the

service sector achieve its innovation strategy?
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?

K. Goffin and R. Mitchell 2005

Figure 1.11: DoCoMo i-Mode Collaboration

Inter-Operability Inter-Operability
Platform
Vendors

Business Portal
Opportunity Functionality

Co-marketing Co-marketing
NTT
Handsets Content
DoCoMo

Volume Revenue
Handset Opportunity Collection Content
Vendors Content / Handset Integration Providers

i-modeCollaborationConceptv2.ppt
K. Goffin and R. Mitchell 2005
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 professionals
Treatment being improved not only by drugs and medical
technology but also through suitable use of quality management
techniques
Culture of medical profession changing

K. Goffin and R. Mitchell 2005

Box Case 2.2: Dutch Government Policy and R&D

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 R&D 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 R&D expenditures and the number
of R&D employees has increased

K. Goffin and R. Mitchell 2005

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 roads
Over 1000 petrol stations offering gas
supplied by Repsol YPF in 205 towns and
cities in Argentina
Average annual saving per year = one
months average salary
Repsol YPF and VW offer a full service
(inc. installation and registration)

K. Goffin and R. Mitchell 2005

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
1950s
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
dynamics

Photos taken from www.extricom.de

K. Goffin and R. Mitchell 2005

Box Case 2.5: Dvorak versus QWERTY

QWERTY
Are the best innovations
always adopted?

Dvorak

K. Goffin and R. Mitchell 2005

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?

K. Goffin and R. Mitchell 2005

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

Hold
List of potentials

Reject Review Development

File: Richardson1.ppt
K. Goffin and R. Mitchell 2005
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 available
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
Dcor, 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 www.boeing.com

K. Goffin and R. Mitchell 2005

Box Case 3.2: Dial-a-Flight

Successful European Internet retailer of

travel and tourism services
Strategy to improve customer contact
and provide customization
Fast search engine, high personal
contact for confirmation (your
representative)
Employees are skilled, personable and
enthusiastic about their products

K. Goffin and R. Mitchell 2005

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 it

K. Goffin and R. Mitchell 2005

Box Case 3.4: Innovating in Healthcare

In many healthcare systems, waiting times are long, staff

members are overworked and drab dcor 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

K. Goffin and R. Mitchell 2005

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

K. Goffin and R. Mitchell 2005

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?

K. Goffin and R. Mitchell 2005

Figure 3.5: AXA Innovation Quadrant

Create new customer- Improve existing products,

focused opportunities services and processes
(10%) (40%)

Eliminate non-value Re-use AXA global

adding activities success stories
(40%) (10%)

K. Goffin and R. Mitchell 2005

Box Case 4.1: Allianz Versicherung

Hauspannenversicherung House 24
hour breakdown service
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 out
Allianz organizes the payments
Developed by cross-functional, dual
company team

K. Goffin and R. Mitchell 2005

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

K. Goffin and R. Mitchell 2005

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 possible
Components whose variety can add high
perceived value are given high priority

K. Goffin and R. Mitchell 2005

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 arrived
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

K. Goffin and R. Mitchell 2005

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 consumption
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

K. Goffin and R. Mitchell 2005

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 products?

K. Goffin and R. Mitchell 2005

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

K. Goffin and R. Mitchell 2005

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

K. Goffin and R. Mitchell 2005

Box Case 5.3: Clarks

Company planned to enter the walking

boots segment
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 comfortable

K. Goffin and R. Mitchell 2005

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.

K. Goffin and R. Mitchell 2005

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 designers?

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 functionality?
K. Goffin and R. Mitchell 2005
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 stages
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 Fair
Decisions made by panel of judges drawn from industry
and a variety of non-profit organizations

Source: Chapman Wood and Hamel, 2002.

K. Goffin and R. Mitchell 2005

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

K. Goffin and R. Mitchell 2005

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 scores.
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.
K. Goffin and R. Mitchell 2005
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, R&D progress)
Team learnt to have the courage to say no
K. Goffin and R. Mitchell 2005
 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

Product Line / Process

Spinning
High
Weaving

Cutting
Return
Sewing

Packaging

Low

Incremental Radical Fundamental

Risk

K. Goffin and R. Mitchell 2005

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?

K. Goffin and R. Mitchell 2005

Figure 6.15: Britannias Project Scoring System

Element Weight Manager responsible for scoring

Benefits 4 Marketing and Finance

Customer need 3 Customer Excellence
Strategic fit 3 Marketing
Business risk 4 Product Management
Systems and 3 Information Services
processes
Operational 3 Operations and Sales
complexity
Delivery cost 4 Finance
Dependencies 3 Information Services
Priority 3 Managing Director

K. Goffin and R. Mitchell 2005

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?

K. Goffin and R. Mitchell 2005

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 reactions
Ensures that employees are adequately
trained on the new product before its
release
Essential to have a reliable but flexible
NPD process
Key success factors?

K. Goffin and R. Mitchell 2005

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 sales.
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.

K. Goffin and R. Mitchell 2005

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 products.
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
products.
K. Goffin and R. Mitchell 2005
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 Alps.
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

K. Goffin and R. Mitchell 2005

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. Cunard)
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

K. Goffin and R. Mitchell 2005

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?

K. Goffin and R. Mitchell 2005

Box Case 8.1: United Parcel Service Culture and
Innovation

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
documentation
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)

K. Goffin and R. Mitchell 2005

Box Case 8.2: Texas Instruments

There can be a downside to inventiveness if it becomes the strongest

component of R&D culture - it can lead to the proverbial reinvention of
the wheel.
R&D 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 resources.
Texas Instruments (TI), the developer and manufacturer of integrated
circuits, has taken steps to avoid NIH as part of their Vision 2005
initiative.
This includes an annual NIHBWDIA prize for the R&D employee who
takes an idea from somewhere else and makes a significant contribution
to product or process innovation

K. Goffin and R. Mitchell 2005

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

K. Goffin and R. Mitchell 2005

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.

K. Goffin and R. Mitchell 2005

Box Case 8.5: Lockheed

Sometimes large organizations can stifle

innovation through their control systems
and routines.
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 R&D
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.

K. Goffin and R. Mitchell 2005

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 R&D 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 innovation.

K. Goffin and R. Mitchell 2005

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 approach.
It was decided to create a share scheme for the
project with a sum of several hundred thousand
dollars reserved for rewarding the large team
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.

K. Goffin and R. Mitchell 2005

Box Case 9.1: Evotec OAI

Leading provider of biological, chemical and

screening services, 600 employees
Clients include BASF, GlaxoSmithKline,
Pfizer and Roche
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

K. Goffin and R. Mitchell 2005

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.

K. Goffin and R. Mitchell 2005

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 working.
Getting enough people with the right
experience is something we need to work on.
Thirdly, its about getting everyone involved.

K. Goffin and R. Mitchell 2005

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
interacted
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 ideas
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

K. Goffin and R. Mitchell 2005

Case Study: Sidler GmbH & Co

What roles can outsourcing play in a companys

innovation strategy?
What criteria should be used for selecting partners?
How can confidentiality be managed for innovation
projects involving interorganizational collaborations?

K. Goffin and R. Mitchell 2005

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.

K. Goffin and R. Mitchell 2005

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.

K. Goffin and R. Mitchell 2005

Box Case 10.3: Vodafone Group Plc

Worlds largest mobile telecomm

company with 146 million customers
Group R&D 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

K. Goffin and R. Mitchell 2005

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.

K. Goffin and R. Mitchell 2005

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.

K. Goffin and R. Mitchell 2005

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?

K. Goffin and R. Mitchell 2005