Professional Documents
Culture Documents
Nypro s Background
Source: www.nypro.com
Nypro s Background
Clinton, MA
North Carolina
Chicago
Puerto Rico
Germany
Singapore
GENERATION
Scanning Recombination
SELECTION
Evaluation Legitimization
RETENTION
Enactment Routinization
REPLICATION
Knowledge sharing Adaptive variation Problem solving
Adapted from Zollo, M. and Winter, S.G. 2002. Deliberate learning and the evolution of dynamic capabilities. Org. Sci. 13 (3), 339-351.
Excerpted from Innovation Tournaments by C. Terwiesch and K. Ulrich, Harvard Business Press, 2009
Excerpted from Innovation Tournaments by C. Terwiesch and K. Ulrich, Harvard Business Press, 2009
Excerpted from Innovation Tournaments by C. Terwiesch and K. Ulrich, Harvard Business Press, 2009
Innovation at Intel
CEO Grove s view on his role in decisions to continue to support or not a business activity: You need to be able to be ambiguous in some circumstances. You dance around it a bit, until a wider and wider group in the company becomes clear about it. That s why continued argument is important. Intel is a very open system. No one is ever told to shut up, but you are asked to come up with better arguments. People are allowed to be persistent.
Burgelman, R.A. 1991. Intraorganizational ecology of strategy making and organizational adaptation: Theory and field research. Org. Sci. 2 (3), 239-261.
NovaPlast Decision
Why do they want to try NovaPlast machines?
NovaPlast Decision
Alternative 1 Build a new plant that uses ONLY Novaplast machines
Alternative 2
Install a few Novaplast machines in every plant
Alternative 3
Install a Novaplast machine in a single plant Let the internal innovation market spread the innovation throughout the company
Organizational Capabilities
Sustaining or Disruptive?
Internet commerce Digital photos mp3 format Flash memory E-books Open-source development Total quality management
Types of Innovation
Reverse Innovation at GE
A surgical C-arm - - A high-quality, high-priced product designed for hospital in wealthy countries. A proposal to develop, manufacture, and sell a simpler, easier-to-use, and substantially cheaper product in India. to no one s surprise, it was not approved
A simple, streamlined global product line was much more efficient than custom offerings fears that a lower-priced product would weaken the GE brand and cannibalize existing sales lower-priced products would drag down overall margins why the energies of GE s scientists and engineers should be diverted from [top dollar] projects
Source: Immelt, Govindarajan, and Trimble. How GE is Disrupting Itself. Harvard Business Review. October 2009.
Reverse Innovation at GE
A (cheap) portable, PC-based ultrasound machine - The products owe their successful development to an organizational anomaly in GE -Developed by an independent unit, within the ultrasound business unit, based in Wuxi, China.
Source: Immelt, Govindarajan, and Trimble. How GE is Disrupting Itself. Harvard Business Review. October 2009.
Key Lessons
Discovering innovation opportunities by solving problems Two distinct strategies to discover and deploy innovation opportunities
- Top-down (deliberate) - Bottom-up (emergent) - Each strategy require different organizational mechanisms to implement it
Customer choice is a critical decision because it determines the capabilities to develop Understanding current organizational capabilities is critical - When is an organization, as opposed to the individuals within it, incapable of implementing certain type of innovations?
Nypro Today
Still focused on precision injection molding - The vast majority of Nypro's machines are less than five years old-all and are high precision machines
Employs over 17000 people Has over 1500 machines in 44 manufacturing locations in 15 countries around the world Sales have reached the billion dollar level It is one of the largest ESOP (Employee Stock Ownership Plan) in USA Recently re-organized into market-focused global business units that create direct interface between customers and Nypro managers at all levels
Adapted from http://www.nypro.com