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Managing Innovation

at Nypro, Inc. (A)



Dongyuan Zhu
Xingxing Liu
Ye Wang
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Agenda
Company overview
Perceived management problems/issues
Alternatives
Recommendation
Discussion questions
Reference
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Company Overview
The fifth largest custom injection molder in the world,
and the largest non-automotive molder.
Three divisions:
Healthcare
Electronics/communications
Customer/industrial
Strategically aligned with customers base
Building plants near customers in vital markets
Striving for uniform world-class technology at all plants.
Highly decentralized organization
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Perceived management problems/issues
Company facing a shifting basis of competition
which was speed and variety in the future.
Lankton perceived a new market for Nypro, and
was considering how and where to disseminate
the revolutionary molding machine, NovaPlast,
across the company.
Company having the challenge of being
innovative while keeping consistent across
plants.

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The alternatives of adopting NovaPlast
Alternative 1: building a new plant
Strengths
Most popular with senior management
Engineering efficiency
Centralizing development would facilitate personal oversight of
project
Being done rather quickly

Weaknesses
Transportation costs
Against current philosophy of being decentralized
No successful experience
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The alternatives of adopting NovaPlast
Alternative2: scatter across the network
Strengths
Close-to-customer manufacturing particularly important in the
market segment
Allows for the pontential to capture more market share
Puts more engineers and marketers to work on exploiting the
NovaPlast
Better technology would emerge

Weaknesses
Against economy of scale philosophy
Unproven technology and no clear indication of its feasibility
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The alternatives of adopting NovaPlast
Alternative3: apply internal market effect, focus on
making it successful at a single plant.
Strengths
Could be implemented rather quickly
Allow for engineering/efficiency to be gathered
Could evaluate how resource planning systems
interoperate
Use internal market for innovation

Weaknesses
Time consuming to deploy if research shows that the
flexibility is required in other international markets
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The alternatives of adopting NovaPlast
Alternative4: not use NovaPlast
Strengths
The niche market identified and capability allows
company to compete in market

Weakness
Avoids taking advantage of the strengths,
innovation
Not dealing with problem of the changing market
and competition
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Recommendation
Go with making NovaPlast successful at a single
plant.
-Less weakness
-Allows flexibility towards others
Short term
-Continue with evaluation
-Continue pursuing orders
-Gather data relating to effectives and efficiency
Long term
- Decide on long term deployment strategy
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Discussion questions
Is NovaPlast a disruptive or sustaining
innovation for Nypro?
A new-market disruption
What is Nypros process to implement new
innovations?
Following four steps
Nypro had a good process for exploiting
sustaining innovation but not for the disruptions?
CEO needs to stand astride the interface between
mainstream business units and new disruptive growth
businesses.
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Process of implementing innovations
Find the actually occurred process innovations.
Select the most important innovations which can
implement in other plants.
Find the ways to transfer the innovation from the
original team to other teams and plants.
Nypro sets up the new rules of the innovation.
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Reference
Clayton M. Christensen, Michael Overdorf. Meeting the
Challenge of Disruptive Change. Harvard Business
Review Article. Mar 1, 2000.
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Thank you!

Questions?





Dongyuan, Xingxing & Ye, March 10, 2008.

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