Back Bay battery is one of the 20 manufacturers of Nickel Metal Hydride (NiMH) batteries and spends approximately 2%-3% of revenues on R&D. The worldwide market projection to grow at 9% is coming under pricing pressure from East Asian competitors which drives the commoditization of NiMH cells. Back Bay failed to make timely investment in Li-ion or Li-polymer batteries and the scale and learning makes it impossible to enter at this stage. The Ultracapacitor(UC) are new in the market which has caught the attention of NASA due to its rapid recharge time. As the product is new, Back Bay needs to invest in the range of $1 million to $7 million in R&D to realise the full potential of the technology.
The aim of the simulation is to get a good balance …show more content…
This is further collaborated by Govindaranjan three box solution where box 1 is about the competition for the present and box 2 and 3 are about the future competition. The simulation for BBB case provided a deep insight how the exploration done in UC closely resembles to the horizon 2 opportunity. The NiMH exploitation is done with horizon 1 in consideration and staying competitive in the existing market. The simulation further demonstrates that in the initial years UC is perceived as bleeding the BBB compared to NiMH stable performance.
As shown in figure 9, Rio Tinto’s mine of the future and incubator program are some of the most innovative program considered as frontier innovation. Lean six sigma productivity improvement and the maturing Chinese market are some of the horizon 1 goals to keep bettering the existing process and improve profit …show more content…
Rio Tinto’s operates under highly complex business model where process improvement is highly valued for the business. According to (Gronum et al., 2012), innovation breadth is highly successful if they align with the existing company’s business model.
The challenge I felt in the simulating exercise was to predict the forecasting of the yearly sales numbers. Moreover, the unknown related to the simulation is to understand the post sales issues related to the behaviour of the customer and the experiences that follow the sales. This is an integral part to understand the areas where R&D investment needs to be focussed. While my cumulative profit is the range of $200M to $460M, I also have been fired many times giving me an opportunity to learn and improve. As Moore (2007) points out, to maximize returns enterprise should also grow Horizon 2 and incubate business and not products. The experience provided me an insight how the R&D budgeting helps Rio Tinto to stabilise the innovation process by tying with universities to generate greater
The aim of the simulation is to get a good balance …show more content…
This is further collaborated by Govindaranjan three box solution where box 1 is about the competition for the present and box 2 and 3 are about the future competition. The simulation for BBB case provided a deep insight how the exploration done in UC closely resembles to the horizon 2 opportunity. The NiMH exploitation is done with horizon 1 in consideration and staying competitive in the existing market. The simulation further demonstrates that in the initial years UC is perceived as bleeding the BBB compared to NiMH stable performance.
As shown in figure 9, Rio Tinto’s mine of the future and incubator program are some of the most innovative program considered as frontier innovation. Lean six sigma productivity improvement and the maturing Chinese market are some of the horizon 1 goals to keep bettering the existing process and improve profit …show more content…
Rio Tinto’s operates under highly complex business model where process improvement is highly valued for the business. According to (Gronum et al., 2012), innovation breadth is highly successful if they align with the existing company’s business model.
The challenge I felt in the simulating exercise was to predict the forecasting of the yearly sales numbers. Moreover, the unknown related to the simulation is to understand the post sales issues related to the behaviour of the customer and the experiences that follow the sales. This is an integral part to understand the areas where R&D investment needs to be focussed. While my cumulative profit is the range of $200M to $460M, I also have been fired many times giving me an opportunity to learn and improve. As Moore (2007) points out, to maximize returns enterprise should also grow Horizon 2 and incubate business and not products. The experience provided me an insight how the R&D budgeting helps Rio Tinto to stabilise the innovation process by tying with universities to generate greater