Applied Research Technologies, Inc: Global Innovation’s Challenges
Applied research technologies, Inc is a huge corporate group of about 60 business units that all operate as a profit center. Now considerate as one of the technology world’s giant, its major divisions include-but are not limited to- healthcare, industrial automation, energy (extraction, conversionand transportation solutions for oil and gas) as well as heating, ventilation and air conditioning systems for residential, commercial and industrial markets. Through its very wide panel of expertise and experience, it benefits from massive funding possibilities that coincide with its corporate culture that consist in innovation and entrepreneurship.
Because of globalization, competition withinthe industrial sector has become pretty though, especially coming from fast developing countries like China, India or Brazil.
Basically the positive point in those developing markets is that the demand, on a very large point of view, is growing and specifically the one for water, either for drinking or not-for-drinking consumption.
Actually it is a well known fact that access to water is going tobe one of the most important issues of our time, with a forecasted worldwide population of over 9 billion people by 2025.
Talking about figures and so as to illustrate the purpose above, the total US water industry on its own represents a market of over $106 billion.
To succeed in this era of killing competition ART, Inc and more especially its filtration unit, benefits from several internalresources that are as follows next.
2°) the filtration business unit:
In the past, the unit’s core line of the filtration business unit was the mobile water treatment, but new Chinese competitors appeared in the late 1990s, making an erosion of margins.
Therefore ART decided to develop the next generation of filtration product.
But today after two high-profile new product’s failures, the unitlost confidence (by 2006, it was losing about $6 million annually).
- A flaw with the design and a lack of interest in the market place, probably consequences of an inappropriate marketing mix.
In this business unit team, most people considered the project very promising and are very involved. They think the product could be the answer of the global water problem.
Peter Vyas is themanager of the filtration unit, one of the 60’s ART Company business’ units.
He already experienced two failures in trying to bring his product on the market.
First failure=> on the developing country market => problems with odors
Second failure in Western countries=> no odors but need of too much power
Peter Vyas knows his development team is absolutely convinced they could succeed, buthe also realized that the unit’s existence and even his own career are openly questioned.
His superior newly promoted, the VP Water Cynthia Jackson knows her actions would be closely watched on this unit.
After analyzing the situation we are answering the following question:
Investing 2 million$ to re-launch a mini oxidation product or not?
Go or no go?
B) SWOT Analysis of theenvironment
StrengthTEAM/PROJECT-Well qualified and experimented staff-Good capacity in investment, especially in R&D-team confident with the latest iteration -they believe they’re heading in the right direction-New boss, Cynthia Jackson wants to protect the team and make sure they get support-She thinks they’re making progress-Vyas is young and dynamic-The team in place is made ofentrepreneurial-minded individuals-A brand new technology evaluation team has been settled-Vyas believes this project can help million people in their lives [corporate goal]-Vyas is also an excellent talented manager, able to recruit, motivate and retain good people-Highly committed-to-the-product team-no one wants to be involved in another failure = everyone wants to succeed-close attention to the detail (the...
Lire le document complet
Veuillez vous inscrire pour avoir accès au document.