Applied Research Technologies Case Study

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Register to read the introduction… England in 2015.

For the exclusive use of M. England, 2015.
4168 | Applied Research Technologies, Inc.: Global Innovation’s Challenges

Applied Research Technologies, Inc.
ART was one of the technology world’s emerging giants. The company had grown through the merger and acquisition of numerous technology-based industrial companies, acquired in the LBO buyout waves of the 1980s and 1990s.
By 2006, ART consisted of a portfolio of about 60 business units, each of which operated as a profit center. Total corporate revenue was $11 billion in 2006.1 Major divisions in the corporation included
Healthcare (medical diagnostic equipment), Industrial Automation (robotics), Energy (extraction, conversion, and transportation solutions for the oil and gas industry—including the Water
Management Division), and HVAC (Heating Ventilation and Air Conditioning, including climate control solutions for residential, commercial, and industrial markets). Exhibit 1 shows the organization structure of the company.
The company’s success had been built on its innovative and entrepreneurial culture, coupled with a decentralized management philosophy. ART’s vision statement, proudly displayed in almost
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England in 2015.


For the exclusive use of M. England, 2015.
4168 | Applied Research Technologies, Inc.: Global Innovation’s Challenges

Jackson also expressed her concerns with the $2,000 retail price point and pushed Vyas to clearly identify the risks associated with the plan. After further consideration, the team developed a risk assessment and response matrix, which they included in the business plan (Exhibit 6). The business plan revealed the need for $2 million in funding for beta batch production of RIMOS and the marketing budget to support its distribution and promotion.

Toward a Decision: Go or No Go?
An hour after receiving the investment proposal from his team, Vyas was still pacing back and forth trying to decide whether to support or reject their request for the $2 million in funding for
RIMOS. He knew his development team was absolutely convinced it could succeed, but he also realized that the unit’s existence and even his own career were being openly questioned.
Two floors above Vyas’s office, Jackson was also contemplating the RIMOS project. Having heard through the company grapevine that a funding request had been submitted to Vyas, she began

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