Program & Batch:

PDGM 2015-17

Term:

Third Term

Course Name:

BINE

Name of the faculty:

Topic/ Title :

MOTOROLA INNOVATION:
SUCCESS & FAILURE

Original or Revised Write-up:

Original

Group Number:

Group 4

Contact No. and email of Group

Coordinator:

Group Members:

9940125008, ft15karthikkumarp@imt.ac.in

Sl.

Roll No.

Name

150101027

Anurag Singh

150102049

Karthik Kumar P

150103078

Khushboo Somani

150101113

Siddharth Burman

150103096

Mridul Kalra

150103191

Tanmay Swarup

150103021

Akash Gupta

150101063

Krittika Mehrotra

MOTOROLA INNOVATION:

 Sanjay K. Jha, Co-CEO and CEO

MOTOROLA BEFORE SIX SIGMA

2008

Worlds frst GPRS cellular phone

2000
1991

Worlds frst GSM cellular phone

1986

Six sigma process

New Motorola Headquarters: CHICAGO
Worlds First Commercial High-Power Transistor
Company Name Change- Galvin manufacturing to Motorola
First Motorola Commercial FM Two-Way Radio System

1976
1955
1947
1941
1930

First Motorola Brand Car Radio

MOTOROLAS TIMELINE
MOTOR stands for car and OLA stands for sound
CEO: DENNIS WOODSIDE (for motorola mobility)
STARTED AS : GALVIN MANUFACTURING CORP. and first product was to develop
battery eliminator
FOUNDED IN: SEPTEMBER 1928
FOUNDERS : PAUL V.GALVIN & JOSEPH E.GALVIN

ABOUT THE COMAPNY

SUCCESS & FAILURE

In 1970s Motorola was going through hard times, when all its competitors were providing
grade A quality, services and products. Motorola was facing a consistent problem of defects
in its products mainly due to its manufacturing processes which was not up to the mark.
When, then CEO, Bob Galvin realised that he decided to meet all the concerned employees, it
was then when a sales manager told our quality stinks that came as an eye-opener for
Galvin and he personally looked into the matter, to figure out what real problem was.
He realised that other competitors products are 18 times better than their . So he asked the
company to produce 20 times better products and decrease the defects 10 times
There was establishment of Motorola Education and Training Center for the training of
employees for better efficiency but the problem was no one disputed the need for change, yet
at the same time no one knew how to truly make it happen and quality professionals at his
company were not powerful and experienced enough about business to lead change
Jack Germaine, a highly ethical, imposing , tough minded, cost focused business executive
came for the rescue, though he guided the company in right direction, but still a lot many
things were left to be accomplished.

EVOLUTION OF SIX SIGMA

What is six sigma?
Six Sigma approach is a collection of managerial and statistical
concept and techniques that focuses on reducing variation in
processes and preventing deficiencies in product.
identical.

The variation is small compared to the range of specification limit in a process that
has achieved six sigma capability.
A six sigma process is one in which 99.9999966% of the products manufactured are
statistically expected to be free of defects (3.4 defects per million)
Six Sigma is a very clever way of packaging and branding many aspects of Total
Quality Management (TQM)
( TQM is a management approach to longterm success through customer satisfaction
and quality sevices.)
Manufacturing methods of six sigma are used in all sort of production, i.e., Batch
production, Job production & Mass production

SIX SIGMA IN MOTOROLA

Galvin launches Six sigma quality program in 1987 which was just a concept introduced in
1986 and six sigma was to be implemented in every aspect of the company, be it, services,
product, process, administration. Galvin hired Harry to look after the six sigma research
department and wanted a short term knowledge transfer into word wide company.
But the major challenge faced by the company management was that companys employees
used to fudge the entire process rather than improving it, so it was important to change the
way they worked. So what Motorola did was that they ensured the success of six sigma by
making every employee, stakeholder of the concept and the approach they followed was
DMAIC. This approach aims at improving the existing business process
DMAIC stands for:
DEFINE:
We define the system, customers need and requirements and project goals specifically
MEASURE:
Measure various aspects of the current process and collect relevant data
ANALYZE:
Analyse the data under investigation and know the cause and effect relationship and
determine the root cause of the problem and make sure that that all the factors have been
covered
IMPROVE:

Optimise the process based on the data analysed using techniques such as design of
experiments, mistake proofing, standard work to create a new, future state process.
CONTROL:
Make sure that all the processes are under control limit in future, so that these lapses dont
turn into product defects.

The Corporate Policy Committee of Motorola then updated their quality goal as follows:
Improve product and service quality ten times by 1989, and at least one hundred fold by
1991. Achieve Six Sigma capability by 1992. With a deep sense of urgency, Galvin spread
dedication to quality to every facet of the corporation, and achieve a culture of continual
improvement to assure Total Customer Satisfaction. There is only one ultimate goal: zero
defects in everything we do.

DIGITAL SIX SIGMA

The association of Motorola and Six Sigma rose to a new level when Motorola launched
Digital Six Sigma level in 2003
Digital Six Sigma is an improvement over classical Six Sigma on three major counts:
Integration of information technology and new digital tools using Digital Six Sigma for
improved training, compliance, and to monitor performance on a continuous basis by
automating process control data.
Digital Six Sigma focuses on high-leverage issues that drive business improvements
throughout the organization. The major thrust in the new approach was to reduce "total
cycle time" or the time from when a Motorola customer places an order to the delivery,
and not to just eliminate defects
Understanding customer requirements and translate them into real engineering
requirements by using Digital six sigma in design and innovation

MOTOROLA FAILURE:
Inspite of six sigma technique becoming integral part of motorola, In mid and late 2000s ,
motorola incurred loses and was left behind by all the major competitors

The journey downhill:

Motorola came up with various version of its cellphone RAZR, bringing changes in its
hardware and displays, but what Motorola failed to realise was that customers buying
decision are changing. They want innovation in softwares rather than hardware. No one cares
how sleek your new version is from the previous one, they want to use real apps on phone
which require strong software support. They couldnt create product according to the
markets requirement. They manufactured what they think customers needed, not what
customers actually needed.
As clear from the graph below, it was important for them to innovate to rise again from
maturity stage which they failed to.

Also, Motorola took some wrong decisions, they had a chance to buy nokia or/and qualcom,
The offer which they rejected. They missed the movement to 3G. Its biggest customers were
U.S. wireless carriers, didnt think they wanted 3G. Motorola didnt listen to its customers
customer rather did what its customer wanted.
Also, at one point of time, Motorola owned a lot of spectrum which they traded for equity in
Nextel, as a result whenever there was new fiscal year, they had to start all over again
whereas companys like Qualcomm had spectrum of billions of worth.

ACQUISITION OF MOTOROLA
ACQUISITION BY GOOGLE:
TH
G00gle acquired M0t0r0la m0bility 0n 13
february 2012 f0r $12.5
billi0ns
Under G00gle 0wnership, M0t0r0la's market share were expected t0 b00st
by a f0cus 0n high-quality entry-level smartph0nes, aimed primarily
at emerging markets;
M0t0r0la s0ld 6.5 milli0n ph0nesled by str0ng sales 0f its l0w-end M0t0
G, especially in markets such as India, and in the United Kingd0mwhere
the c0mpany acc0unted f0r 6% 0f smartph0ne sales s0ld in the quarter,
up fr0m nearly zer0. These g0als were c0mp0unded further by the May
2014
Intr0ducti0n 0f the M0t0 Ea l0w-end device aimed at frst-time
smartph0ne 0wners in emerging markets.

ACQUISITION BY LENOVO
G00GLE s0ld M0t0r0la M0bility t0 Len0v0 0n 30th 0ct0ber,2014 f0r $2.91 billi0ns Under
Len0v0 0wnership, M0t0r0la M0bility re-launched its pr0duct line in China with the l0cal
release 0f the sec0nd generati0n M0t0 X, and an upc0ming release 0f the M0t0 G LTE and
M0t0 X Pr0
0n July 28, 2015, it was ann0unced the next generati0n 0f M0t0 G and M0t0 X .
The M0t0 G was updated with higher end features.
The M0t0 X was differentiated int0 tw0 devices kn0wn as the "X Style" and the "X Play
Len0v0 has enc0uraged M0t0r0la t0 ad0pt a strategy 0f undercutting its c0mpetit0rs' prices
while 0ffering superi0r hardware

PRODUCT INNOVATION

MOTO G

Relatively l0w-c0st smartph0ne. The device is geared t0ward gl0bal markets and s0me US
m0dels supp0rt 4G LTE
0n September 5, 2014, M0t0r0la M0bility released its success0r t0 the 2013 versi0n 0f the
M0t0 G, called the M0t0 G (2nd generati0n). It came with a larger screen, higher res0luti0n
camera, al0ng with dual fr0nt-facing stere0 speakers.
M0t0r0la M0bility released the third generati0n 0f the M0t0 G series, called the M0t0 G (3rd
generati0n. It retained the same screen as bef0re but upgraded the pr0cess0r and RAM.
Furtherm0re, it has an IPx7 water-resistance certificati0n and c0mes int0 tw0 variants - 1GB
RAM / 8GB R0M and 2GB RAM / 16GB R0M. The device als0 has the latest (at the time)
Andr0id L0llip0p 0S v5.1.1.

MOTO E

It was an entry-level device intended t0 c0mpete against feature ph0nes by pr0viding a

durable, l0w-c0st device f0r first-time smartph0ne 0wners 0r budget-minded c0nsumers, with

a particular emphasis 0n emerging markets. The M0t0 E shipped with a st0ck versi0n 0f
Andr0id "KitKat"

The M0t0 E (2nd generati0n) was ann0unced and launched 0n March 10, 2015, in India.
Released in the wake 0f its successful first generati0n, the sec0nd generati0n 0f the M0t0 E
series still aims t0 pr0vide a sm00th experience t0 budget-0riented c0nsumers. It increased
the screen size t0 4.5" but kept the res0luti0n at 540 x 960px.

It came in tw0 versi0ns, a 3G-0nly 0ne p0wered by a Snapdrag0n 200 chipset and a 4G LTE
versi0n p0wered by a Snapdrag0n 410 chipset

MOTO X

0n September 5, 2014, M0t0r0la M0bility released the M0t0 X (2nd generati0n) smartph0ne.
This c0ntinued the trend 0f the c0mpany letting c0nsumers cust0mize their devices thr0ugh
their M0t0 Maker website, and added new cust0mizati0n 0pti0ns like m0re real w00d ch0ices
and new leather 0pti0ns.

The device itself als0 g0t many bump-ups in specs; with a new 5.2 inch (13 cm) 1080p super
AM0LED pentile display, a faster 2.5 GHz Qualc0mm Snapdrag0n 801 pr0cess0r, and an
impr0ved 13-megapixel rear camera capable 0f rec0rding 4k res0luti0n vide0 with a duel
LED flash.

The device als0 came with new s0ftware features al0ng with new infrared pr0ximity sens0rs