Sahlman, Vincent Dessain, Monika Stachowiak Describes the financing, strategy, and growth decisions facing fortu, a young German battery company.
How to Write a Summary of an Article? Fortu Powercell GmbH Case Nowadays, it is critical for the companies of many industries to pay a lot of attention and efforts on the management of technology and innovation.
This ability is more or less developed in companies, regarding their maturity and their structure.
Studying its situation would the occasion for us to present several concepts that managers in fields where technology and innovation matter need to embrace if they want to take relevant strategic decisions. We are going to start our analysis with a quick reminder of the case, what are the critical Fortu powercell gmbh case to keep in mind before to present some considerations Fortu powercell gmbh case to the work of several experts, researchers in the management of technology and innovation.
Finally, we will conclude with some suggestions for the executive team of fortu Powercell. Another work we would like to quote is the work of Christensen on disruptive innovation. To summarize, we can differentiate two type of innovation: A sustaining innovation targets demanding, high-end customers with better performance than what was previously available.
|[Case Memo] fortu PowerCell GmbH HBR Case Study Recommendation Memo, MBA, Executive MBA||Order now Thus we distinguish two types of disruptive innovations, the new-market disruption and the low-end disruption. The second one is focusing at the low-end of the original mainstream value network, on the customers whose expectations regarding the product are lower than what is actually proposed on the market.|
A disruptive innovation consists in the introduction of a product, a service which is not as good as currently available products but compensates thanks to its simplicity, its convenience, its low cost which would appeal new or less-demanding clients.
Thus we distinguish two types of disruptive innovations, the new-market disruption and the low-end disruption. The second one is focusing at the low-end of the original mainstream value network, on the customers whose expectations regarding the product are lower than what is actually proposed on the market.
It is quite critical to define what kind of innovation is the fortu Powercell because the way people should manage sustaining and disruptive innovations are totally different. A sustaining technology strategy is not a viable way to build new-growth businesses for instance and usually once they have developed and established the viability of their superior product, entrepreneurs who have entered on a sustaining trajectory should turn around and sell out to one of the industry leaders behind them.
Also, an idea that is disruptive to one business way be sustaining to another. If this is the case, it is better to redefine the product or the service in a way that it would be an opportunity which is disruptive relative to all the established players in the targeted market space or another solution is to not invest at all.
Otherwise, it could be extremely difficult to beat the established companies which would defend their positions.
Burgerlman and Siegel would also contribute to our analysis with their work on the minimum winning game. When the MWG has been defined, the top management can set relevant milestones against which meaningful progress can be measured. The risk of an undefined MWG is a focus on a set of feasible but fairly limited and unconnected milestones along a road that leads nowhere or the elaboration of a serie of vague visions.
The first MWG is influenced by 3 drivers, the technology development, the product development and the business strategy. The management team should put a lot of efforts to balance their influence in order to prevent one of them to dominate the interplay, because of the potential negative effects related to each one of these driver.
Nevertheless, one of them should be the main driver but not all the time the company is trying to achieve its MWG. Shifting the balance of drivers in due time is necessary to achieve this goal. We mention this work because we would like to determine if one of the options considered by the fortu Powercell management team is a correct MWG, if they have developed a correct thinking about the options they defined.
Considering the nature of the product fortu Powercell wish to sell, we must consider the work of Henderson and Clark on architectural innovation or the technology S-curve for components of Christensen.
About the first named, it raises a distinction between several innovations as they could be incremental, modular, architectural or radical. Incremental innovation basically refines and extends an established design whereas radical innovation establish a new dominant design.
Qualify the fortu Powercell innovation would give us some clues about how established firms would react if the product is commercialized. The input of the S-curve theory in our thinking is that it forces us to not forget that the other technologies are maybe not mature and still have some potential that could lead to a fierce competition between them and the fortu Powercell technology.
Finally, we would like to mention the work of Christensen, Musso and Anthony about capturing the returns from research, which talk about when, where and why integration is needed and introduce the notion of decoupling point.
Basically, it illustrates the fact that a product with proprietary, interdependent architecture is subject to an interdependence of its components. The way one component is designed and made depends on the way the other components are being designed and made. In this case, the control of the design and manufacturing of every critical component of the system by a process of integration allows companies to develop a competitive advantage.
A product with a modular architectures means that individual sub-systems can be upgraded without redesign everything. In this case, being specialized, not-integrated, is the best solution.
We think it is important to keep in mind these notions as fortu Powercell is looking to enter the market of batteries for defined products.
If the product has an interdependent architecture or a modular architecture, that makes a difference on how fortu Power should define its strategy. As a conclusion for this part, we want to remind that these theories and works presented are what we mainly used to mold our thinking about this case, to evaluate the situation of fortu PowerCell and its possibilities.
Suggestions In this part, we are going to present a few suggestions for the fortu Powercell executive team regarding what we presented before.Case Study Recommendation Memo Assignment. At Fern Fort University, we write fortu PowerCell GmbH case study recommendation memo as per the Harvard Business Review Innovation & Entrepreneurship case memo framework.
fortu PowerCell GmbH is a Harvard Business (HBR) Case Study on Innovation & Entrepreneurship, Fern Fort University provides HBR case study assignment help for just $ Our case solution is based on Case Study Method expertise & our global insights. Fortu PowerCell GmbH, a Karlsruhe, Germany, company, has proposed building a vehicle battery manufacturing plant on the site, which would employ more than people.
fortu PowerCell GmbH Case Solution,fortu PowerCell GmbH Case Analysis, fortu PowerCell GmbH Case Study Solution, Describes the funding strategy and growth decisions facing Fortu, a young German-based batteries. The company is considering the installation in eastern Ge. Fortu Powercell GmbH Case Nowadays, it is critical for the companies of many industries to pay a lot of attention and efforts on the management of technology and innovation.
Indeed, the development of new technologies is a potential source of competitive advantage and the ability of the companies to innovate and/or to respond to competitors. fortu PowerCell GmbH is a Harvard Business (HBR) Case Study on Innovation & Entrepreneurship, Fern Fort University provides HBR case study assignment help for just $ Our case solution is based on Case Study Method expertise & our global insights.