Docstoc

Managing Innovation at Nypro_ Inc. _A_

Document Sample
Managing Innovation at Nypro_ Inc. _A_ Powered By Docstoc
					Managing Innovation
at Nypro, Inc. (A)

      Dongyuan Zhu
       Xingxing Liu
        Ye Wang
Agenda

 Company overview
 Perceived management problems/issues
 Alternatives
 Recommendation
 Discussion questions
 Reference



                                         2
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


                                                                 3
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.
                                                     4
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

                                                                          5
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

                                                                         6
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
                                                               7
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


                                                             8
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
                                                      9
Discussion questions

   Is NovaPlast a disruptive or sustaining
    innovation for Nypro?
    A   new-market disruption
   What is Nypro’s 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.

                                                        10
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.


                                                     11
Reference

   Clayton M. Christensen, Michael Overdorf. Meeting the
    Challenge of Disruptive Change. Harvard Business
    Review Article. Mar 1, 2000.




                                                            12
Thank you!


         Questions?




                       Dongyuan, Xingxing & Ye, March 10, 2008.



                                                            13

				
DOCUMENT INFO