1I N N O V A A T I O NI N N O V A A T I O NI N N O V A A T I O NI N N O V A A T I O NI N N O V A A T I O N                ...
ITC’s E-Choupal: A Mirage of the                American studios declared in May 2007           Immelt charted his own lea...
Industry        Broadcasting                     Google vs Baidu.com (A): The                    Localisation; CAGE Frame ...
and supply chain management efficiencies.       Industry        Mobile Phone                  Study; Strategies of P&G in ...
pressures encouraging consumers to reduce         in developing cleaner and fuel efficient        had planned to spend an ...
• To analyse how IT is helping the               • To discuss the challenges faced by Dell       Pedagogical Objectives   ...
The case looks at the introduction of this       Pedagogical Objectives                        Industry        Consumer El...
Pedagogical Objectives                           • Technology          Innovation         and     Keywords                ...
Open Innovation: The Case of                  SED Technology: Canon’s New                     and was branded as ‘The car ...
Pfizer, the largest global pharmaceutical     downloads and handheld music players. In       proposal, details the unconve...
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
Case studies on_innovation
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Case studies on_innovation

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Case studies on_innovation

  1. 1. 1I N N O V A A T I O NI N N O V A A T I O NI N N O V A A T I O NI N N O V A A T I O NI N N O V A A T I O N www.ibscdc.org
  2. 2. ITC’s E-Choupal: A Mirage of the American studios declared in May 2007 Immelt charted his own leadership style Poor? that it had obtained the rights for and brought about a cultural revolution in developing a theme park based on the GE. Expectations were high and the E-Choupal is a novel initiative of ITC extremely successful character of the challenges were many. Immelt had to face Limited (ITC), an Indian conglomerate, popular culture Harry Potter in US, UK several challenges. He had to provide to improve its marketing channel in and all over the world. Walt Disney parks leadership and lend vision to a large, diverse agriculture. It has its roots in Project and resorts have also tried to get the rights conglomerate like GE in the post 9/11 Symphony – a pilot project launched in for Harry Potter theme park but failed to volatile global business scenario. He also 1999 to organise ITC’s agri business. The strike a deal with the creator of the Harry had to shift the company’s focus towards business model was designed to Potter character, J.K. Rowling. Universal innovation and customer centricity in accommodate farmers, intermediaries in and Disney have been competing in the addition to posting continued growth in a the traditional model and the company entertainment industry for many years, and sluggish economy. The case study discusses through information technology. The main Walt Disney had been a leader in theme Immelt’s innovation and customer centric objective of e-Choupal is dissemination and parks. Though a tough competitor to approach and the impact it would have on disintermediation of price information. E- Disney in large theme parks segment; the company. Choupal deals with various products – feed emulating Disney’s strategies, Universal ingredients, food grains, edible nuts, was facing decline in the number of Pedagogical Objectives processed fruits and marine products. It attendants to its theme parks since 2004. has extended the basket to horticulture and With the announcement of a Harry Potter • To discuss the role of innovation in GE spices. As of 2007, e-Choupal operates in theme park planned to be ready by 2009, • To discuss the different leadership style the Indian states of Madhya Pradesh, industry experts anticipated Universal to and its impact at GE. Haryana, Uttaranchal, Karnataka, Andhra gain a momentum over Disney. It remains Pradesh, Uttar Pradesh, Maharashtra, to be seen how Universal would leverage Industry Automobile Industry Kerala and Rajasthan. By 2012, ITC has on the successful brand of Harry Potter to Reference No. INM0106B planned to expand the project to 15 states beat Disney in the theme park segment. Year of Pub. 2008 in India reaching 100,000 villages. ITC Teaching Note Available has launched Choupal Sagar, a multi- Pedagogical Objectives Struc.Assign. Available purpose retail outlet in the rural areas with plans to open 700 such rural malls by 2012. • To understand the strategies of Walt Keywords ITC-IBD has initiated a new store format Disney company Leadership style; situational leadership; Choupal Fresh Cash & Carry Stores for Innovative strategies; Jack Welch; cultural • To analyse how Disney used retailing fresh fruits and vegetables across revolution; organic growth; challenges; merchandising and cross-promotion to major Indian cities. ITC has piloted a share price; six sigma; Innovation achieve success in theme parks project with a three-part combo module Management Case Study; GE Global; work to manage the entire value chain. It is • To discuss the competition between out plan; sluggish economic market; harnessing the technology platform for Universal and Disney innovation improvement. The biggest test for ITC is the aggressive scaling up of its operations • To analyse the huge success of the “Harry to successfully reach its vision. Potter” phenomenon Fox Business Network (FBN) – • To discuss the challenges lying ahead for Pedagogical Objectives Universal that takes on the “Harry Talking Business to the Common Potter” brand further Man? • To understand the structure of the e- Choupal network • To debate the potential strategies to be In 2007, News Corporation owned by the used by Universal as against Disney’s. media mogul, Rupert Murdoch launched an • To discuss the benefits derived out of exclusive channel, Fox Business Network the e-Choupal network Industry Theme Parks (FBN). The new channel was different from Reference No. INM0107B CNBC which had a strong foothold in the • To discuss the future of the e-Choupal Year of Pub. 2008 business news market. FBN differentiated in terms of scalability. Teaching Note Available itself by offering business news to the Industry Rural e-Business Struc.Assign. Available common man and kept away from the elite Reference No. INM0108C and the serious audience served by CNBC. Keywords Year of Pub. 2008 By choosing a different audience, was FBN Teaching Note Available US Theme Parks Industry; Harry Potter; bypassing direct confrontation with the Struc.Assign. Available Universal Studios; Disney; Warner market leader? Would serving the Brothers; Theme Parks; Innovation mainstream audience help FBN sustain in Keywords Management Case Study; Entertainment; the long run? E-Choupal; Corporate Social Marketing; Brand Extensions; Movies and Responsibility; ITC Limited; Farmers; Books; J.K. Rowling; Entertainment; Brand Pedagogical Objectives India; Rural e-Business; Internet Kiosks; Leverage, Brand Value, Competition Value Chain Intermediaries; Choupal Sagar; • To analyse the competitive scenario of Innovation Management Case Studies; the business news market in the US Choupal Fresh; Rural Empowerment; Innovate for Growth: Immelt’s • To analyse the scope of differentiating Business Model; Supply Chain Management Strategy for GE its market entry and performance by using bypass attack strategies Jeffrey Immelt became Chairman and CEO • To analyse whether the competitive Will Harry Potter’s Magic Work for of GE in September 2001. Succeeding Jack strategies adopted by FBN be successful Welch was a challenge in itself, but instead Universal Studios Theme Parks? and payoff in the long-run? of trying to emulate Welch’s time tested Universal Parks and Resorts, a division of corporate management philosophies, Universal Studios Inc., one of the leading2 www.ibscdc.org
  3. 3. Industry Broadcasting Google vs Baidu.com (A): The Localisation; CAGE Frame Work; Alliance I N N O V A A T I O N I N N O V A A T I O N I N N O V A A T I O N Exportability of Googles I N N O V A A T I O N I N N O V A A T I O NReference No. INM0105B Strategies; Acquisitions and Partnerships;Year of Pub. 2008 Business Model Chinese Google; Government BusinessTeaching Note Available Environment; Internet Censorship; OnlineStruc.Assign. Available Google is the most visited search engine Advertising; Innovation Management Case with a 62.4% market share and is the most Study; International Business; LegalKeywords profitable with $16.5 billion revenues in Environment and RegulationsFox Business News; CNBC; Bloomberg; By- 2007. The company has seen stupendouspass market entry startegy; innovative success in a short span of time. Its PageRank technology, AdWords andprogramming; NBCU; Business News; Dell Business Model (B): A Case AdSense advertising programmes andFinancial News; Common Man; Naked Cow product line-up has ensured that it stays for Business Model InnovationBoy; Innovation Management Case Study;CNN ahead of competition. The changes it has Dell Inc. was the worlds second largest PC made to its business model signify its Company in 2007 in terms of market share. business depth. Google, after conquering Dell was the market leader in 2004, but it the US market, started offering its services lost its position to Hewlett-PackardBabaJob.com, The Indian Social in other countries - through various search following changing competitive dynamics Networking Start-up: interface languages and in a number of local in the PC industry. To regain its leadershipDifferentiating with the Bottom of domains. Googles rise and profitability has position, Dell started selling its PCs through the Pyramid made other international Internet giants retail chains. This was in sharp contrast to like Yahoo! and Microsoft realise, albeit Dells legendary business model of sellingBabaJob.com, a Bangalore-based start-up, late, the lucrativeness of search. They are customised PCs directly to customers. Della unique Internet site that provides making efforts to grow in this direction. had attempted to sell through retail chainsemployment to the poor through the Googles growth has attracted more previously in the 1990s, but abandoned itconcept of online social networking. The competitors and complaints. This case, the due to low profit margins. The case discussesidea is to help the highly unorganised poor first in the series Google vs Baidu.com, the concept of active inertia, which resultsworkforce of the economy like maids, details the rise and growth of Internet from an inappropriate response to changinghelpers, drivers, cooks, etc. The case not search engines. Providing a brief historical competitive dynamics, and how Dell fellonly gives the wider view of this but also outlook, it focuses on how Google through into the trap of active inertia. The casehighlights various issues, restricting the its innovative technology rose to success also discusses internal and externalmember users to integrate them with the very soon. Revenue-earning models of challenges facing Dell in its attempt togrowing popularity of online social Internet companies are dealt in greater regain its leadership position in the PCnetworking. It illustrates the process by detail, with focus on how Google makes industry.which an illiterate gets job through the help money. The case also details Googles add-of a mentor, and in the process the mentor ons to its products and services, for ensuringgets rewarded for every jobseekers Pedagogical Objectives growth and sustainability. This case helpsacceptance of job. discuss how Google has grown over the • How important is modifying a business years. What has been the companys model for an organisations success?Pedagogical Objectives strategy? What is its business model and what is so unique about it? Finally, it • To study the growing importance of theThe case is structured to let the students retail segment compared to the business questions whether this business model is analyse and understand: segment. exportable - can Google use the one size• To understand the dynamics of the social fits all approach to its business model? Industry Personal Computers networking market Reference No. INM0102A Pedagogical Objectives Year of Pub. 2008• To understand the business model of Teaching Note Available BabaJob.com The case is structured to let the students Struc.Assign. Available analyse and understand:• To understand the visibility of trust and Keywords risks associated with BabaJob.com • Search engines business and revenue models Dell; Computers; Business Model; Michael• To understand the importance of Dell; PC retailing; Segmenting; Targeting; appropriate business model in the social • Googles business model and other Positioning; Innovation Management Case networking space. factors, like its technology, products and Study; Active Inertia; Hewlett-Packard; services, which have led to its success Compaq; Lenovo; Transformation;Industry Social NetworkingReference No. INM0104 • The rationale behind Internet Strategic Inflection Point; SIPYear of Pub. 2008 companies targeting overseas marketsTeaching Note Available • Whether search engines business modelsStruc.Assign. Available and that of Google is exportable? Dell Business Model (A):Keywords Strategic Inflection Points in the Industry Internet Search & Navigation PC IndustrySocial Networking; Dynamics of online Servicesbusiness; BabaJob.com; Business and Reference No. INM0103 Dell Inc. was the second largest PCRevenue Model; Corporate Social Year of Pub. 2008 Company in 2007 in terms of global marketResponsibility; Organised and Unorganised Teaching Note Available share. The success of Dell was largelyEmployment; Sean Blagsvedt; Innovation Struc.Assign. Available attributable to its direct selling businessManagement Case Study; Critical success model, which was suitable for corporatefactors of e-commerce; Strategies of Keywords buyers and bulk purchasers. Dell had an in-BabaJob.com; Bubble 2.0 Google; Baidu.com; Chinas Search Engine built advantage of lower costs due to its Market; Business Model; Globalisation and highly efficient manufacturing operations 3 www.ibscdc.org
  4. 4. and supply chain management efficiencies. Industry Mobile Phone Study; Strategies of P&G in Mexico; However, with the changing competitive Reference No. INM0100C Innovation in Emerging Markets dynamics, Dell was losing its cost Year of Pub. 2008 leadership in the industry. Dells cost Teaching Note Available advantage against its competitors was Struc.Assign. Available Logitech: Competing through eroding as competitors were following practices like mass manufacturing and just- Keywords Innovation in-time inventory management. After Mobile Phones; Advertising; Innovation In 2006, Logitech International SA Hewlett-Packard became the market leader Management Case Study; Competiton; (Logitech), the Swiss public company in 2007, Dell was considering various Mobile Serach Users; SMS; MMS which was established in 1981, recorded options to sustain and regain its leading revenue of $1,797 million. Logitech, which position in the PC industry. started with the OEM sector, expanded through its retail business. It has diverse P&G in Mexico: Profiting from Pedagogical Objectives products in computer peripherals and Product and Marketing commands leading positions in all its • To understand the concept of business Innovations? product categories such as audio, video, PC model innovation in the context of an navigation, Internet communication, organisations success Leading consumer packaged goods manufacturer Procter & Gamble (P&G) has music, and gaming devices. Logitech has • To understand, how the new competitive an impressive history of successfully been a highly innovative company, with a dynamics when unaddressed would launching a vast array of new products. list of more than 65 industry ‘firsts’. It undermine the success of existing With developed world markets becoming launched more than 130 new products business models. increasingly saturated, multinational during 2006. But it faced stiff competition corporations have turned to emerging from industry giants like Microsoft. In this Industry Personal Computers scenario, can Logitech sustain its markets like India, China, and Mexico. Reference No. INM0101A competitive edge by just being innovative? Realising the potential of consumers in the Year of Pub. 2008 Will it be successful in keeping pace with emerging markets, major MNCs are Teaching Note Available technology and market, to retain its leading penetrating the growing low-income Struc.Assign. Available positions in its product categories? segments. But the dynamics and the Keywords consumer behaviour in these markets are quite different from the developed markets. Pedagogical Objectives Dell; Computers; Business Model; Michael According to many experts, the strategies Dell; PC retailing; Segmenting; Targeting; • To understand the changing dynamics that hold well in developed markets fail in Positioning; Innovation Management Case of computer peripherals industry developing markets. However, P&G, with Study; Active Inertia; Hewlett-Packard; its long presence, has had tremendous • To understand how innovation drives Compaq; Lenovo; Transformation; success in Mexico through its product and competition in the industry Strategic Inflection Point; SIP marketing innovations. • To discuss about various competitive advantages of Logitech Pedagogical Objectives Mobile Phones: The Advent of a • To get an awareness of Logitech’s New Advertising Medium • To discuss product profile and products vis-à-vis competition segmentation statistics of P&G Marketers are constantly looking for • To analyse whether innovation can • To discuss P&Gs shift in its business innovative ways and channels to send sustain growth for Logitech. model from serving wealthiest customers marketing messages. The attention of in developed countries to low-income Industry Computer Peripherals marketers swung towards mobile phones consumers in emerging markets Reference No. INM0098B as an innovative medium for this purpose, Year of Pub. 2007 due to their mass usage. Mobile phone • To identify various opportunities and Teaching Note Available penetration around the world reached more challenges for companies in emerging Struc.Assign. Available than 2 billion as of 2008. This led to use of markets short messaging, mobile search advertising, Keywords and video files as advertisement platforms • To discuss the product and marketing for reaching consumers. Most consumers innovation strategies of P&G in Mexico Computer Peripherals Industry; Logitech around the world accept such messages, International SA; OEM; Innovation; New • To debate on the sustainability of P&Gs according to their perceived relevance and Product Introductions; Technological strategy of serving low-income offers provided. Mobile phone advertising Innovation; MX Revolution; PC Industry; consumers in the long run. platforms have evolved, depending upon Microsoft; EPFL Incubator; Logitech; the features of mobile phones that Industry FMCG Daniel Borel; Innovation Management consumers use. The case analyses how Reference No. INM0099 Case Study; Growth Engines; Organic mobile phones can be used better for Year of Pub. 2007 Growth Creative Technology marketing communication. Teaching Note Available Struc.Assign. Available Pedagogical Objectives Keywords M&M’s Candy’s Innovative • To understand the opportunities for Marketing Strategies Population and Income levels of People marketing communication through in Latin America; Fortune at the Bottom In the high-tech culture of the new mobile phone as a medium of the Pyramid; Mexican Retailing millennium, M&M’s Candy has fought • To discuss how mobile phone Industry; Potential and Challenges from diligently to stay cool, contemporary and advertisements should be designed Emerging Markets; Consumer Behaviour relevant to consumers in the 21st century. considering how consumers react to in Mexico; Innovation Management Case It has faced incessant challenges from advertisements through mobile phones. competitive brands as well as social4 www.ibscdc.org
  5. 5. pressures encouraging consumers to reduce in developing cleaner and fuel efficient had planned to spend an estimated amount I N N O V A A T I O N I N N O V A A T I O N I N N O V A A T I O N I N N O V A A T I O N I N N O V A A T I O Ncandy consumption. But its main challenge engines and gaining market share in the of US $75 million for the brand promotionis keeping the brand simple, relevant to alternative fuel vehicle segment. and the acceptance level of new Jeepconsumers and yet maintaining among the common people.growth.Over the years, colour, brand Pedagogical Objectivespersonalities, globally recognisable Pedagogical Objectivespackaging, the melt in your mouth, not in • The case discusses Honda’s initiative toyour hand slogan and the distinctive M develop cleaner and fuel efficient engines • To understand the efforts made by DCon each candy - all have played an to fight against the volatility in fuel to launch and promote ‘Jeep Compassimportant role in raising the brand to an prices and to target the consumers looking for the fuel efficient alternatives • To analyse how DC attempted to changeiconic status. Carrying on the spirit of its Jeep’s traditional rough & tough imageearlier marketing initiatives, M&M’s has • It also discusses the company’s strategydecided to freshen up the brand and to gain market share in the alternative • To get an idea of the global sports utilitystrengthen the emotional bonds with its fuel vehicle segment. market (SUV) marketloyal customers by leveraging thecompelling equities of colour and fun to Industry Automobile • To discuss whether the new, ‘softer’, Jeepcreate consumer interest. Reference No. INM0096P would appeal to the customers. Year of Pub. 2007 Industry AutomobileThe case can be used to discuss the Teaching Note Not Available Reference No. INM0095Kdynamics of the candy industry, M&M’s Struc.Assign. Not Available Year of Pub. 2006brand strategy including brand merchandise Teaching Note Not Availableand brand characters and the use of retail Keywords Struc.Assign. Not Availablechannels, advertainment and Internet Honda; Dream D-type engine; C1000 supermarketing to build personalized cub; S-500; N-600 sedan; Honda Accord; Keywordsrelationship with the customers. Honda Civic; VTEC engines; Innovation DaimlerChrysler (DC); Jeep; Compass; Management Case Study; Environmental Sports Utility Vehicle (SUV); Daimler-Pedagogical Objectives protection Agency; Euro 5 emission norms; Benz; Chrysler; Diversifying; Marque;• To discuss the dynamics of the candy Alternative fuel vehicles; DOHC diesel Global SUV market; Product launch; industry engine; i- CTDi engine; IMA hybrid system; Innovation Management Case Study; Brand honda FCX promotion; Rugged looks; Car based SUV;• To analyse M&M’s brand strategy Softer Jeep; Off-road performance including brand merchandise and brand characters DaimlerChrysler’s Compass SUV:• To discuss the use of retail channels, Softening The Tough Jeep Indian Railways – IT Innovations advertainment and internet marketing Jeep was an automobile brand of in Passenger Services to build personalised relationship with the customers. DaimlerChrysler (DC) which was known The Indian Railways’ operated in a highly for its rugged looks and agile off-road complex environment that made itIndustry Confetionary Industry performance. It was one of the Chrysler imperative for its operations to beReference No. INM0097P subsidiaries and became a part of continuously updated with timely andYear of Pub. 2007 DaimlerChrysler when Daimler-Benz accurate information to a variety ofTeaching Note Not Available merged with the Chrysler Corporation in business concerns. Further, the optimumStruc.Assign. Not Available 1998. Since its inception in 1941 Jeep had utilisation of the available resourcesKeywords dominated sport utility vehicle (SUV) demanded deployment of a robust market for almost 65 years. Jeep was infrastructure through implementation ofMars; Brand Strategy; Advertisement; famous worldwide for its rough and tough innovative and economical technologies.Innovation Management Case Study; Brand looks and it was hugely popular among theCharacter; Brand Personality; Brand adventure friendly people. By 2006 sales This case provides the reader an insightRevitalisation; Mini Brand; Product of full-size SUVs were plummeting on into the various cost-saving innovationspersonalisation regular basis and automakers were beginning that were adopted by IR in improving and to admit that a shift of market was almost advancing their passenger services. The inevitable. Several companies were progressive implementation of IT served thinking of new products, car-based SUV as a thrust towards better responsiveness Honda’s Green Technology to the rising passenger demands. The being one of them. DC was among them, Strategy in the US Auto Market and was about to take a new direction by communication infrastructure that IR builtJapan based Honda Motor Company is a launching its first car-based SUV which up over the years not only helped it caterleading global automobile manufacturer. It emphasized on on-road performance rather effectively to the ascending customer needsmanufactures a variety of products like than boulder-hopping off-road feats. but also opened new avenues for revenuesmall general-purpose engines, cars, Compass was Jeep’s first car-based SUV and generation. It augmented its revenues andmotorcycles, trucks, scooters. Since the it was the Jeep’s new initiative of focusing also helped it cut down surplus expendituresearly 2000s the volatility in fuel prices on-road performance. The management through better utilisation of resources byand greater environmental awareness of Jeep realized that they needed to appeal way of improved demand analysis, betterforced many consumers to look for fuel to a wide range of customers and at the management of coaches and efficientefficient alternatives. It has led to increased same time they also wanted to preserve its utilisation of railway tracks.competition in the alternative fuel vehicle “rough-and-ready” image. DC wassegment. Honda has found its one fuel competing for Jeep’s success with the Pedagogical Objectivesstrategy risky and decided to focus on philosophy of expanding as well as diversifying. • To discuss the successive ITtechnologies like clean diesels, hybrids and implementations at IR and how theyfuel cells which give it more flexibility. This case deals with promotion of the new help IR to cut cost and increaseThe case study discusses Honda’s initiatives brand ‘Jeep Compass’ as the management efficiency 5 www.ibscdc.org
  6. 6. • To analyse how IT is helping the • To discuss the challenges faced by Dell Pedagogical Objectives passengers in better utilising the railways services. • To debate on Dell’s turnaround • To understand about onsite and offshore strategies. models for delivering software services Industry Transport Reference No. INM0093K Industry Personal Computers • To understand why and how Global Year of Pub. 2007 Reference No. INM0092K Delivery Model is used by software Teaching Note Not Available Year of Pub. 2007 companies like Infosys to enhance Struc.Assign. Not Available Teaching Note Not Available service to its clients and to implement Struc.Assign. Not Available Knowledge Management across the Keywords company Keywords Indian Railways; Smithsonian Awards; EDP • To understand how Infosys changed its (electronic data processing); Impress; Dell Inc; Apple; Dell business model; strategy to be one up on its competitors. Concert; Centre for Railways Information Personal computer; US computer industry; Systems (CRIS); CML; Passenger IBM (International Business Machines Industry Software Industry Reservation System (PRS); Integrated Corporation); Server; Printer; Innovation Reference No. INM0091B Voice Response System (IVRS); Unreserved Management Case Study; Notepad; Sony; Year of Pub. 2006 Ticketing Service (UTS); Innovation Graphical user interface; Gateway Teaching Note Not Available Management Case Study; e-Ticket Computers; Premier Page web page; Struc.Assign. Not Available Product recalls Keywords Onsite Model; Offshore Model; Global Dell: From a Low Cost PC Maker The Implementation of an Delivery Model (GDM); Process to an Innovative Company Improved Global Delivery Architecture; Innovation Management Case Study; HR Recruitment; Managerial During the late 80s, Michael Dell and his Model in Infosys: Will it functions at Infosys; Knowledge company, Dell Inc., revolutionized the Succeed? management; Software Industry global PC market by the latter’s ‘Dell Infosys, a software development company Competition; Collaborative Distributed Direct Business Model’, where it eliminated all kinds of middlemen and in India, initially provided onsite service Delivery Model directly supplied customized PCs to the to its global clients. This being an customers. For the last two decades, the expensive proposition, the company company continued to be the market leader decided to complete projects at its Indian Whirlpool: Redefining Innovation in the small household PC segment. offshore development centers and then However, after enjoying the supremacy for implement them at the clients’ places. This The year 2005 had proved to be a year of two decades since 2005, it started facing was also a challenge as there was no service exceptional achievements for the world’s competition. August 2006 was the cruelest provider at the clients’ locations, causing number one home appliance brand month for Dell as the company’s bottom a deterrent to the progress of projects. company, Whirlpool. It had achieved line experienced an unprecedented decline. Besides, miscommunication added to the record net earnings of $422 million on The company’s revenue and profit failed delay of project completion. To serve its record sales revenues of $14.3 billion, which to match the expectations. Besides, it had clients effectively and in time, Infosys had in turn, propelled the company’s share to write off US$ 450 million (mn) for the decided to open proximity centers close price to an all-time high of $92.64 by April installation of defective capacitors in its to the clients’ locations. In the late 1990s, 2006. computers and opt for workforce due to stiff competition from IBM, Wipro Much of Whirlpools performance was alignment. It also recalled lithium batteries and TCS, Infosys decided to adopt the attributed to the new products and features manufactured by Sony from its laptop. The Global Delivery Model (GDM), which was introduced by the company, based on ideas analysts were thus, skeptical about the based on the principle of taking work where received from the company’s employees future of the organization. The company it could be done best in an economical working under the ‘innovation system’, was termed as less innovative than its manner and with the least amount of established by the company’s former CEO, competitors as it failed to launch innovative acceptable risk. In 2005 Infosys’ revenue David Whitwam in 1999. The innovation products in the market. To be on the stood at $1,592 million. system was implemented to counter the growth trajectory again, it planned to enter company’s almost stagnant performance Infosys found that IBM, Accenture, TCS into the consumer electronics segment. But over the past decade, judging by everything and Wipro had also adapted GDM. Industry the analysts were doubtful about the success from stock price to profit margin to observers felt that GDM was a standardized of Dell’s ‘Direct Business Model’ in the market share. The company’s failure to IT model but had no competitive consumer electronics segment. The case introduce exciting products or product advantage. To combat competition and to deals with Dell’s business model, viable features had reduced Whirlpool’s machines differentiate itself from other Global IT alternative of Dell’s business model and its to mere commodities and the prices of its giants, Infosys started working on GDM success in the consumer electronics most important products were falling each 2.0 and called it the “Collaborative segment. It provides a scope for discussing year. Distributed Delivery Model” (CDDM). whether the turnaround strategy of Dell would be successful and about the scenario To implement the new GDM, Infosys had Following the implemetation of the of global PC industry and global consumer to set up more offshore development innovation drive, revenues from products electronics market. centers around the globe. To succeed in its that fitted the companys definition of efforts Infosys decided to acquire ‘innovative’ increased from $10 million Pedagogical Objectives companies around the globe. in 2001 to $800 million in 2005, i.e., 5 percent of the companys record $14.3 • To discuss how Dell revolutionized the Would Infosys succeed in gaining the billion in total revenue. In 2005 alone, global PC market competitive advantage and the Whirlpool launched more than twice as differentiator that it hoped to achieve with many new products in half the time, as • To analyse Dell’s Direct Business Model its improved GDM? compared to the time before the • To understand the global PC industry innovation process was launched.6 www.ibscdc.org
  7. 7. The case looks at the introduction of this Pedagogical Objectives Industry Consumer Electronic Industry I N N O V A A T I O N I N N O V A A T I O N I N N O V A A T I O N I N N O V A A T I O N I N N O V A A T I O Nsuccessful innovation strategy. Reference No. INM0088A • To understand Motorola as a technology Year of Pub. 2006 and innovation leader.Pedagogical Objectives Teaching Note Available • To understand the importance of Struc.Assign. Available• To understand Whirlpool’s position in customer-centric approach the home appliances market Keywords • To discuss the importance of Innovation LG; LG Electronics; Blue Ocean Strategy;• Stagnation of innovation system at as a competitive strategy. whirlpool strategy; localisation; competitive Industry Telecomunication strategy; market leader; new product• Implementation of the innovation drive Reference No. INM0089A development; Innovation; India; China; at Whirlpool Year of Pub. 2006 Middle East; Digital Electronics; CDMA• Revival of Whirlpool through Teaching Note Available and GSM handset; LCD TV; Plasma TV; implementation of innovation strategy. Struc.Assign. Not Available Innovation Management Case Study; Mobile phones; Nokia; SamsungIndustry Home Appliance Industry KeywordsReference No. INM0090B Motorola; innovation; seamless mobility;Year of Pub. 2006 technological leadership; core competency; ITC: Reshaping the Lives ofTeaching Note Not AvailableStruc.Assign. Not Available changing customer needs; reinventing Indian Farmers vision; spin-offs; merger & acquisitions;Keywords strategic alliances; differentiation; Launched in June 2000, e-Choupal, a Innovation Management Case Study; revolutionary initiative by the IndianWhirlpool; Innovation; ideas; home leadership change; reorganisation; culture FMCG giant ITC, became the largestappliances; white goods; Innovation of innovation; fostering innovation etc initiative among all e-commerceManagement Case Study; David Whitman; interventions in rural India. By 2006, e-Nancy Snyder; machines; innovative; Choupal reached out to more than 3.5Maytag; acquisition; strategies; metrics; million farmers in over 31,000 villagesknowledge management LG Electronics: The Blue Ocean growing a range of crops - soybean, coffee, Strategy wheat, rice, pulses and shrimp, through South Korea based LG Electronics, Inc. 5200 kiosks across six states (MadhyaMotorola: Fostering Innovation? (LGE) was a technology innovator in Pradesh, Karnataka, Andhra Pradesh, Uttar electronics, information and Pradesh, Maharashtra and Rajasthan) inMotorola, Inc. US based Fortune 100 communications businesses producing India. By 2010, the e-Choupal networkcompany, was known around the world for CDMA handsets, DVD players, optical planned to cover over 100,000 villages,innovation and technological leadership in storage devices, canister vacuum cleaners, representing one sixth of rural India, andembedded systems, wireless and broadband air conditioners and micro ovens. LGE had create more than 10 million e-farmers.communications and made paradigm more than 72,000 employees working in Encouraged by the success of the e-Choupalshifting contributions in two-way radio, about 77 subsidiaries and marketing units initiative, ITC launched ‘Choupal Sagar’semiconductors, paging, space flight across the world. in 2004. The problems stumbled upon whilecommunications, cellular communications In January 2006, the company launched setting up and managing these ‘e-Choupals’etc. with global presence on six continents “Blue Ocean Management” campaign to were primarily of infrastructuraland 69,000 employees over the world of be one among the top 3 electronics, inadequacies, including power supply,which 25,000 were engineers and scientists information and telecommunications firms telecom connectivity and bandwidth, apartwith passionate commitment to R&D. It in the world by 2010. But LGE was from the challenges of making the farmershad 21,300 global patents in its name and primarily known for its low-cost and the users of the network e-savvy inreached sales of US $36.8 billion in 2006. appliances, and faced challenges related to the inaccessible areas of rural India.Motorola, a pioneer in wireless was company’s image, low profitability and Receiver of the Development Gatewaycriticized for not capitalizing aggressively stiff competition across the world. With Award 2005, the e-Choupal initiativeon its innovations and failed to anticipate the tough road ahead would LGE be able to demonstrated that private sector cangreat demand of digital mobiles. Motorola achieve its target by 2010? Would it be successfully achieve a balance between thestarted to rethink on its core competency, able to make its competition irrelevant, conflicting goals of creating shareholderrealized changing customer needs, reviewed especially Samsung, its home rival? value and also fulfill the socialits history of innovation and finally responsibility of development and growth.reinvented its focus on innovation led by Pedagogical Objectivesvision of ‘Seamless mobility’, develop ITC’s e-Choupal initiative began byinnovative culture through series of • To understand LG: a leading player in deploying technology to re-engineerstrategic moves like acquisitions, consumer electronics procurement of soy and other crops frompartnerships, spin-offs, increase R&D rural India. The e-Choupal graduated tofacilities, leadership change, differentiation • To understand consumer electronic serve as a highly profitable distribution andin design etc. market and competitor product design channel. The effort taught • To understand value based technological valuable lessons in rural engagement;The case discusses cost cutting strategy, innovation demonstrated the magnitude ofadopting specific corporate structure by opportunity, at the same time illustratedreorganization, impact of leadership • To understand geographic diversification the social and development impact ofchange and organisation culture at and its strategies applied to gain market bringing global resources, practices, andMotorola. Would Motorola be able to share better remuneration right at the doorstepsustain the vision of ‘Seamless Mobility’ • To analyse the Blue Ocean strategy and of the Indian farmer.to push Motorola forward in its innovationefforts? Can Motorola efficiently its implementation at LGE.capitalize on its innovations track record? 7 www.ibscdc.org
  8. 8. Pedagogical Objectives • Technology Innovation and Keywords development • To understand ITC’s e-Choupal Apple; iPhone; iPod; Steve Jobs; Steve initiative • Moore’s Law Wozniak; Smart Phones; Mobile Telephony; Innovation Management Case • To understand the rural sector of India • Challenges and Competition faced by Study; Cingular; Nokia; Motorola; Palm and impact of e-commerce initiatives Intel. Treo; AT&T; Blue Tooth Device; Personal on the sector Media Player Industry Computer Industry • To debate on the conflicting goals of Reference No. INM0086C creating shareholder value and social Year of Pub. 2007 responsibility for a company. Teaching Note Available A Challenge to Innovation: Can Industry Rural Development Struc.Assign. Not Available Netflix sustain growth? Reference No. INM0087A Keywords Netflix, the world’s largest online movie, Year of Pub. 2006 Intel; Motherboard; Personal Computers; television and other filmed entertainment Teaching Note Not Available Innovation Management Case Study; rental subscription service (as of 2006), Struc.Assign. Not Available Gordon Moore; Robert Noyce; Silicon was an example of ‘innovation at work’. Keywords wafer; Tera Scale; Semiconductor; Micro Operating almost like a mail-order processor; Moore’s Law; AMD; business, the company had evolved a Indian Tobacco Company (ITC); Cigarette Transistors; Integrated Circuits; 80 Core; successful and proven marketing strategy, and tobacco giant; Imperial Tobacco Chipsets which helped it to grow into a highly Company of India Ltd; Innovation profitable and established company. The Management Case Study; Genesis of e- success was attributed to the high levels of Choupal; The Sanchalak; The Samyojak; customer satisfaction and value added e-Choupal; e-Choupal network; Mandi Apple iPhone – Will it Ring? services the company offered since System; Indial Farmers; Rural India; Indian inception. With deals from all movie In January 2007, Apple launched its Farmers companies, and protected by a patent for iPhone, a revolutionary device which combined the features of a mobile phone its business model, the future of Netflix and an iPod. With innovative and unique seemed to be certain. Intel’s Trillionizing Processor features incorporated into the product, the However, the scene was set to change with iPhone was expected to revolutionize the the advent of movie downloads and During the International Solid State Circuits mobile phone market. However, the Conference, Intel has announced that they analysts were skeptical about the continued mobile market already consisted of a success of Netflix. Although Netflix itself have successfully produced a multicore chip number of established players like which has ‘80core’in it, though it is still in was to announce its own download venture Motorola, Nokia, LG, Samsung, Sony in early 2007, it was to be seen how the the research stage. It was previously Ericsson, Palm and others. Although announced in Intel Developer’s Forum at company would remain competitive. The experts rated the iPhone far above the case tries to bring out the highly successful San Francisco in September 2006 that the existing models, Apple was expected to company planed to come out with an ‘80 model that Netflix had adopted and if the face various challenges in establishing itself success of this innovation could be sustained core’ micro processor chip. The new chip as a major player in the existing market. would be capable of exchanging data at one while facing newer challenges. The main The Apple iPhone was highly priced and issues that the case tries to highlight are: terabyte per second amongst its multiple aimed at targeting a niche market. In this cores. Intel announced that it would be able 1) Should Netflix alter its business model? scenario, it was to be seen if the iPhone 2) Can Netflix defend its business model to start commercial production of such would make a mark and achieve success chips by 2012. This announcement marked and maintain its market leadership like Apple’s other products, the Mac and position? If so, what should its strategies a watershed in the industry’s general shift the iPod. towards multicore computing. Originally be? known primarily to engineers and The case tracks the various technical technologists, Intels successful ‘Intel features of the Phone, its strategies to gain Pedagogical Objectives Inside’ advertising campaign of the 1990s market share and challenges it will face in • To discuss how ‘disruptive innovation’ made it and its ‘Pentium’ processor the already crowded mobile industry. The strategies impact companies household names. It has been ranked as case facilitates discussion on whether the leader in the Semiconductor industry, Apple’s iPhone would succeed as the iPod. • To discuss how a successful business and has been in this position from 1992 model can be sustained. till present. Pedagogical Objectives Industry Movie rentals (Entertainment) The case details the various features of the • Strategies of launching a new Reference No. INM0084C new chip, and the challenges Intel would technological product into an already Year of Pub. 2007 face by the introduction of the new chip. competitive market Teaching Note Available The future of this chip is still to be Struc.Assign. Not Available determined and would require working much • Challenges faced by Apple with iPhone’s more closely with the hardware makers, launch Keywords which could give Intel or another first • Competition from already established Netflix; Innovation; Movie rentals; mover a massive advantage. players in the mobile market. Innovation; disruptive innovation; Reed Hastings; Innovation Management Case Pedagogical Objectives Industry Mobile Phone Industry Study; movie downloads; Apple; Amazon; Reference No. INM0085C Patent; DVD market; Value added services; • Microprocessor and Semiconductor Year of Pub. 2007 recommendation system; allocation Industry Teaching Note Available system; customer satisfaction Struc.Assign. Not Available • Future strategies for success for a computer maker8 www.ibscdc.org
  9. 9. Open Innovation: The Case of SED Technology: Canon’s New and was branded as ‘The car for the future’. I N N O V A A T I O N I N N O V A A T I O N I N N O V A A T I O N P&G Initiative I N N O V A A T I O N I N N O V A A T I O N The idea of the hybrid car was conceived by Hiroshi Okuda and Fujio Cho, the twoBy 2000, in the wake of rapidly increasing In the late 1990s, Canon’s revenue declined former presidents of Toyota. But, it wasR&D expenditure, lackluster new product and few of its divisions became loss- making. Katsuaki Watanabe, the chairman oflaunches and nearly flat sales, P&G, one of Fujio Mitarai, the president and CEO of the Toyota, who planned to bring hybrid carsthe largest global consumer products company, closed the money-losing divisions into the mainstream automobile market.companies, decided to revamp its and undertook diversification strategies He planned to make hybrid more affordableinnovation model. The company’s existing through technological innovations. He to the consumers by improving productioninnovation model was heavily dependent focused on the flat-screen TV segment with systems and developing better technologieson its internal R&D department. This a new technology called the SED. By 2010, in batteries, motors and inverters. The questmodel worked well for the company over Fujio Mitarai wanted to post revenue of was to produce a third generation ‘Prius’the decades. However, the above setbacks $50 billion with this new technology. The quickly and cheaply and sell one millionurged the CEO A G Lafley to reinvent the case gives an insight to Canon’s history and hybrids annually by 2010. If Katsuakiinnovation model to ensure consistent the challenges that it faced over the years. Watanabe became successful in his venture,growth. Thus, the company initiated an It gives an overview of the global flat-screen Toyota would become the world’s finestopen innovation model, ‘connect and TV segment and Fujio Mitarai’s optimistic automobile manufacturer and a greatdevelop’. The new model encouraged the move with the SED TV. innovator. The story of the ‘Prius’company to collaborate with external suggested that actually it was. The caseorganisations for innovation ideas. Pedagogical Objectives study offers a scope of discussion whetherConnect and develop turned out to be a Toyota would be able to bring the car insuccessful innovation model and helped • To understand how Canon as a camera mainstream market.P&G launch new innovative products. The manufacturer had become an integratedcase starts with a short introduction of the manufacturer of precision equipments Pedagogical Objectivesproblems that P&G was facing in 2000. including camera, business machines andThe next section gives a brief history of optical products • To discuss how innovation play a keythe company underlining its innovative success factor in automobile industry • To understand the emerging technologyproducts over the period. The case then in the consumer electronics industry • To discuss the concept of productattempts to highlight the company’s new launching in the context of automobileapproach to innovation – shifting from • To understand the global flat panel TV industryR&D to C&D – and elaborates how it industryadopted and applied the new model. The • To discuss the concept of hybrid car andsubsequent sections present details of what • To understand the adoption of new how Toyota plan to make the hybridis open innovation and how P&G benefited initiatives by Canon for its revival mode. technology into the mainstreamfrom it. Industry Printing and Imaging automobile market Equipment • To discuss how an idea was visualisedPedagogical Objectives Reference No. INM0082K and then conceptualised and then turn Year of Pub. 2006• To understand how P&G developed and into a reality. Teaching Note Not Available implemented its open innovation model Struc.Assign. Not Available • Hybrid technology and various types of called connect and develop (C&D) hybrid technology. Keywords• To understand the culture of innovation Industry Auto Manufacturing at P&G Canon; Toshiba; Flat TV; Plasma; LCD; Reference No. INM0081K SED.• To assess how P&G shifted its Year of Pub. 2006 innovation approach from in-house Teaching Note Not Available R&D to C&D Struc.Assig. Not Available Toyotas Prius: Car of the Future• To discuss the benefits of open Keywords innovation model In 1995, Toyota undertook ‘Project Prius’, but it was not an easy task for the Japanese Toyota; Hybrid technology; Green house• To analyse why open innovation model auto major. Satoshi Ogiso, chief engineer gas project. is important for companies that want of the project, recalled that the first to grow consistently prototypes of the car had even faced• To discuss how P&G benefited from its starting problem. It took almost six Pfizer’s Foray into Sedatives: The C&D innovation model. months to roll the car. Finally, when the American Dream? car started, it moved for a few yards only.Industry FMCG It was hard to imagine that Toyota, which It is boom time in the US sedatives market.Reference No. INM0083K was known for its efficient production Sales have been on the rise andYear of Pub. 2006 systems, was facing such trouble. Analysts pharmaceutical companies have beenTeaching Note Not Available felt that ‘Prius’ was a case of technological bombarding the public with their latestStruc.Assign. Not Available problems, impossible demands and multiple generation of branded drugs which claim miscalculations. It proved how a great to have negligible side effects while givingKeywords the user a good night’s sleep. The lifestyle company could overcome obstacles andP&G; Open innovation; R&D; Budgeting; turn a dream into reality. Though ‘Prius’ of the Americans in the twenty firstTechnology; 9 Sigma. represented only a small fraction of the century had given rise to a culture of nine million cars and trucks that the insomniacs. While pharmaceutical Japanese company planned to produce in companies and sleep centers have been 2006, it would be the first vehicle to provide advocating the immediate addressal of the a serious alternative to internal combustion problem, critics are convinced that these engines, designed for a world of scarce oil were mere money mongering activities. 9 www.ibscdc.org
  10. 10. Pfizer, the largest global pharmaceutical downloads and handheld music players. In proposal, details the unconventional company has been working on a new September 2006, it expanded its presence methods followed by Cuban in all his sleeping drug generically named indiplon in the video on demand market and began endeavors. which was due for launch in 2006. By end offering online movie download services 2002, Pfizer and Neurocrine entered into through its iTunes stores which sold music Pedagogical Objectives an agreement for the commercialisation and television shows. But here, the scenario and development of Indiplon. Neurocrine was different. Apple became the market • Movie making in Hollywood had received an initial payment of $100 leader of online music downloads due to its • How Mark Cuban changed the movie/ million. Pfizer has also taken the first mover advantage in the music film exhibition process. responsibility of funding the further downloads market and also due to development of the drug, payment of cooperation from the music companies Industry Entertainment royalties on worldwide sales and co which were threatened by music piracy. But Reference No. INM0078C promotion fees in US. Pfizer’s entry into in the movie downloads business there were Year of Pub. 2005 this category which was hitherto dominated already a few players who have been Teaching Note Not Available by Ambien with an 80% market share and operating for a number of years and Apple Struc.Assign. Not Available Lunesta (about 11% share), has caused an was also expected to face competition from increase in activity in the market. The the new entrants. Apple also got low Keywords existing players have upped their ad spends cooperation from the movie studios due Hollywood; 2929 Entertainment; Mark and are working towards coming up with to its pricing strategy. Added to these, the Cuban; Todd Wagner; DVD; Cable channels; advanced versions of their drugs. quality of movie downloads was only almost Theatre and high definition. DVD quality which was contrary to the Analysts feel that given the current low high quality offerings like the HDTV’s, HD- penetration levels of sleeping pills in the DVD and Blu-ray, which was gaining American market there was a huge popularity in the US. Open Source: Software Model potential for growth and room for many for the future? more players. At the same time there is This case facilitates discussion on whether also criticism about pharmaceutical Apple would succeed in its Movie Open source software has been gaining a companies and medical practitioners, that Downloads venture. It also enables the lot of popularity as compared to the they are hand-in-hand, in promoting the students to understand the issues involved proprietary model. Although the sales of these drugs. These critics are of in the launch of a new technology service development in this arena started only in the opinion that sleeping pills are not an and develop relevant marketing strategies. the late sixties, its growth has been effective solution to the problem of phenomenal. The number of products on insomnia. They advocate the Pedagogical Objectives this platform might be small but they have identification and treatment of the been able to give established proprietary underlying problem which is the root cause • To discuss the online movie download software makers like Microsoft a run for of insomnia, and also the adoption of business in the US their money, forcing them to acknowledge proper lifestyle and habits which they feel and even enter this field. • Challenges faced by Apple in its movie would solve most insomnia related download business venture This case study attempts to look at open problems. source, its growth and its viability as • Consumer trends in home compared to proprietary software. Efforts Pedagogical Objectives entertainment. have been made to look at the open source • Trends in the American Pharmaceutical Industry Entertainment model from all angles, even highlighting industry using the Porter’s Five Forces Reference No. INM0079C any possible drawbacks. Model Year of Pub. 2006 The discussion points are the advantages Teaching Note Available • Strategic groups within the and disadvantages of the model vis a vis Struc.Assign. Not Available pharmaceutical industry. the proprietary model and whether the Keywords future of software can be completely Industry Sedatives Market dependent on the open source platform. Reference No. INM0080C Apple; Movie downloads; iPod; Music Year of Pub. 2006 downloads; Tunes; DVD and Video market; Pedagogical Objectives Teaching Note Available Online movie market; Amazon; AOL; News Struc.Assign. Not Available Corp.; Technical services; VOD service; • To discuss the advantages and Picture quality; Downloading time; disadvantages of the model vis a vis the Keywords Technological difficulties. proprietary model Sleeping Pill Market; Sedatives market; • Future of the open source platform. American pharmaceutical companies; Ambien; Indiplon; Insomnia; Corporate Mark Cuban: Breaking the Industry Software reputation; Social responsibility; Ethical Hollywood Convention? Reference No. INM0077C marketing; Deceptive marketing; Block Year of Pub. 2006 buster drugs; Direct to consumer In Hollywood, the conventional mode of Teaching Note Available advertising; Patents; Generic drugs; Sleep releasing a movie was initially at the Struc.Assign. Not Available centers. theatres and later on DVDs, home video and cable channels. Challenging the Keywords conventional mode, Mark Cuban, owner Open source model; Open source code; Free of Dallas Mavericks and co-owner of 2929 software; Linux Torvalds; Netscape Apple Ventures into Movie Entertainment, proposed to release movies Navigator; Microsoft; Open source Downloads simultaneously in the theatres and on DVDs, programming; Eric Raymond; Proprietary Apple, a Fortune 159 company, was the home video and cable channels. The case model. market leader of online legal music while examining the responses to Cuban’s10 www.ibscdc.org

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