The case study details the situation faced by Emerging Market Projects Department of Robert Bosch Engineering and Business Solutions India (RBEI), India in January 2014. RBEI, one of the Bosch group's subsidiaries in India, was established in 1998 at Bangalore, India. In 2004, RBEI had been tasked with designing and engineering mechatronic automotive products tailored specifically to meet the needs of emerging economies. Operations were integrated with two other Bosch entities, one which manufactured its engineered products and another unit which was in charge of regional coordination and external sales of the product. An important dimension of this success was their dedication to the process of innovative frugal engineering. Their ability to drive out the unnecessary costs and engineer robust and quality products to fit the unique demands of the emerging economies was significant to the needs of the entire automotive value chain. RBEI, had realised that the 'low lying fruit' of frugal engineering had been successfully harvested. To further maintain a commitment to driving down costs, there was a need for new external and internal market based solutions. The question was whether RBEI management was ready for such steps....

1. ROBERT BOSCH ENGINEERING, INDIA (RBEI) – AN
INNOVATIVE FRUGAL ENGINEERING
The case study details the situation faced by Emerging Market Projects Department of Robert Bosch Engineering
and Business Solutions India (RBEI), India in January 2014. RBEI, one of the Bosch group’s subsidiaries in India,
was established in 1998 at Bangalore, India. In 2004, RBEI had been tasked with designing and engineering
mechatronic automotive products tailored specifically to meet the needs of emerging economies. Operations were
integrated with two other Bosch entities, one which manufactured its engineered products and another unit which
was in charge of regional coordination and external sales of the product.
An important dimension of this success was their dedication to the process of innovative frugal engineering.Their
ability to drive out the unnecessary costs and engineer robust and quality products to fit the unique demands of the
emerging economies was significant to the needs of the entire automotive value chain. RBEI, had realised that the
‘low lying fruit’ of frugal engineering had been successfully harvested. To further maintain a commitment to
driving down costs, there was a need for new external and internal market based solutions. The question was
whether RBEI management was ready for such steps.
The case study allows one to appreciate the concept of frugal engineering, its importance/need in emerging economies
and the growing significance of these emerging economies as a market in themselves. Understanding key functionality
and developing one platform for BRIC countries for volume/scale for many small OEMs. Competencies required
for end-to-end development (software, hardware and mechanical), validation and manufacturing was key.
Pedagogical Objectives
• To understand the external market dynamics and the internal challenges/implications faced by an established
captive division of a multinational enterprise (MNE) for continued success, depicted in the case by mapping
EME Department, RBEI
• To comprehend the concept of frugal engineering, its importance/need in emerging economies and the growing
significance of these emerging economies as a market in themselves
• To gain insight into the changing nature of the automobile industry as it becomes increasingly interwoven
with the electronics industry and explore the merging and shifting boundaries of industry
Case Positioning and Setting
This case can be used at the Undergraduate, Graduate and Executive Education level courses that have a focus on
Emerging Market Innovation and Corporate Venturing by MNEs operating in emerging markets.
ABSTRACT
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