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I N N O V A A T I O N

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ITC’s E-Choupal: A Mirage of the American studios declared in May 2007 Immelt charted his own leadership style
Poor? that it had obtained the rights for and brought about a cultural revolution in
developing a theme park based on the GE. Expectations were high and the
E-Choupal is a novel initiative of ITC extremely successful character of the challenges were many. Immelt had to face
Limited (ITC), an Indian conglomerate, popular culture Harry Potter in US, UK several challenges. He had to provide
to improve its marketing channel in and all over the world. Walt Disney parks leadership and lend vision to a large, diverse
agriculture. It has its roots in Project and resorts have also tried to get the rights conglomerate like GE in the post 9/11
Symphony – a pilot project launched in for Harry Potter theme park but failed to volatile global business scenario. He also
1999 to organise ITC’s agri business. The strike a deal with the creator of the Harry had to shift the company’s focus towards
business model was designed to Potter character, J.K. Rowling. Universal innovation and customer centricity in
accommodate farmers, intermediaries in and Disney have been competing in the addition to posting continued growth in a
the traditional model and the company entertainment industry for many years, and sluggish economy. The case study discusses
through information technology. The main Walt Disney had been a leader in theme Immelt’s innovation and customer centric
objective of e-Choupal is dissemination and parks. Though a tough competitor to approach and the impact it would have on
disintermediation of price information. E- Disney in large theme parks segment; the company.
Choupal deals with various products – feed emulating Disney’s strategies, Universal
ingredients, food grains, edible nuts, was facing decline in the number of Pedagogical Objectives
processed fruits and marine products. It attendants to its theme parks since 2004.
has extended the basket to horticulture and With the announcement of a Harry Potter • To discuss the role of innovation in GE
spices. As of 2007, e-Choupal operates in theme park planned to be ready by 2009, • To discuss the different leadership style
the Indian states of Madhya Pradesh, industry experts anticipated Universal to and its impact at GE.
Haryana, Uttaranchal, Karnataka, Andhra gain a momentum over Disney. It remains
Pradesh, Uttar Pradesh, Maharashtra, to be seen how Universal would leverage Industry Automobile Industry
Kerala and Rajasthan. By 2012, ITC has on the successful brand of Harry Potter to Reference No. INM0106B
planned to expand the project to 15 states beat Disney in the theme park segment. Year of Pub. 2008
in India reaching 100,000 villages. ITC Teaching Note Available
has launched Choupal Sagar, a multi- Pedagogical Objectives Struc.Assign. Available
purpose retail outlet in the rural areas with
plans to open 700 such rural malls by 2012. • To understand the strategies of Walt Keywords
ITC-IBD has initiated a new store format Disney company Leadership style; situational leadership;
Choupal Fresh Cash & Carry Stores for Innovative strategies; Jack Welch; cultural
• To analyse how Disney used
retailing fresh fruits and vegetables across revolution; organic growth; challenges;
merchandising and cross-promotion to
major Indian cities. ITC has piloted a share price; six sigma; Innovation
achieve success in theme parks
project with a three-part combo module Management Case Study; GE Global; work
to manage the entire value chain. It is • To discuss the competition between out plan; sluggish economic market;
harnessing the technology platform for Universal and Disney innovation
improvement. The biggest test for ITC is
the aggressive scaling up of its operations • To analyse the huge success of the “Harry
to successfully reach its vision. Potter” phenomenon
Fox Business Network (FBN) –
• To discuss the challenges lying ahead for
Pedagogical Objectives Universal that takes on the “Harry Talking Business to the Common
Potter” brand further Man?
• To understand the structure of the e-
Choupal network • To debate the potential strategies to be In 2007, News Corporation owned by the
used by Universal as against Disney’s. media mogul, Rupert Murdoch launched an
• To discuss the benefits derived out of exclusive channel, Fox Business Network
the e-Choupal network Industry Theme Parks (FBN). The new channel was different from
Reference No. INM0107B CNBC which had a strong foothold in the
• To discuss the future of the e-Choupal
Year of Pub. 2008 business news market. FBN differentiated
in terms of scalability.
Teaching Note Available itself by offering business news to the
Industry Rural e-Business Struc.Assign. Available common man and kept away from the elite
Reference No. INM0108C and the serious audience served by CNBC.
Keywords
Year of Pub. 2008 By choosing a different audience, was FBN
Teaching Note Available US Theme Parks Industry; Harry Potter; bypassing direct confrontation with the
Struc.Assign. Available Universal Studios; Disney; Warner market leader? Would serving the
Brothers; Theme Parks; Innovation mainstream audience help FBN sustain in
Keywords
Management Case Study; Entertainment; the long run?
E-Choupal; Corporate Social Marketing; Brand Extensions; Movies and
Responsibility; ITC Limited; Farmers; Books; J.K. Rowling; Entertainment; Brand Pedagogical Objectives
India; Rural e-Business; Internet Kiosks; Leverage, Brand Value, Competition
Value Chain Intermediaries; Choupal Sagar; • To analyse the competitive scenario of
Innovation Management Case Studies; the business news market in the US
Choupal Fresh; Rural Empowerment; Innovate for Growth: Immelt’s • To analyse the scope of differentiating
Business Model; Supply Chain Management
Strategy for GE its market entry and performance by
using bypass attack strategies
Jeffrey Immelt became Chairman and CEO
• To analyse whether the competitive
Will Harry Potter’s Magic Work for of GE in September 2001. Succeeding Jack
strategies adopted by FBN be successful
Welch was a challenge in itself, but instead
Universal Studios Theme Parks? and payoff in the long-run?
of trying to emulate Welch’s time tested
Universal Parks and Resorts, a division of corporate management philosophies,
Universal Studios Inc., one of the leading

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Industry Broadcasting Google vs Baidu.com (A): The Localisation; CAGE Frame Work; Alliance

I N N O V A A T I O N
Reference No. INM0105B Exportability of Google's Strategies; Acquisitions and Partnerships;
Year of Pub. 2008 Business Model Chinese Google; Government Business
Teaching Note Available Environment; Internet Censorship; Online
Struc.Assign. Available Google is the most visited search engine Advertising; Innovation Management Case
with a 62.4% market share and is the most Study; International Business; Legal
Keywords profitable with $16.5 billion revenues in Environment and Regulations
Fox Business News; CNBC; Bloomberg; By- 2007. The company has seen stupendous
pass market entry startegy; innovative success in a short span of time. Its
PageRank technology, AdWords and
programming; NBCU; Business News; Dell Business Model (B): A Case
AdSense advertising programmes and
Financial News; Common Man; Naked Cow
product line-up has ensured that it stays
for Business Model Innovation
Boy; Innovation Management Case Study;
CNN ahead of competition. The changes it has Dell Inc. was the world's second largest PC
made to its business model signify its Company in 2007 in terms of market share.
business depth. Google, after conquering Dell was the market leader in 2004, but it
the US market, started offering its services lost its position to Hewlett-Packard
BabaJob.com, The Indian Social in other countries - through various search following changing competitive dynamics
Networking Start-up: interface languages and in a number of local in the PC industry. To regain its leadership
Differentiating with the Bottom of domains. Google's rise and profitability has position, Dell started selling its PCs through
the Pyramid made other international Internet giants retail chains. This was in sharp contrast to
like Yahoo! and Microsoft realise, albeit Dell's legendary business model of selling
BabaJob.com, a Bangalore-based start-up, late, the lucrativeness of search. They are customised PCs directly to customers. Dell
a unique Internet site that provides making efforts to grow in this direction. had attempted to sell through retail chains
employment to the poor through the Google's growth has attracted more previously in the 1990s, but abandoned it
concept of online social networking. The competitors and complaints. This case, the due to low profit margins. The case discusses
idea is to help the highly unorganised poor first in the series Google vs Baidu.com, the concept of 'active inertia', which results
workforce of the economy like maids, details the rise and growth of Internet from an inappropriate response to changing
helpers, drivers, cooks, etc. The case not search engines. Providing a brief historical competitive dynamics, and how Dell fell
only gives the wider view of this but also outlook, it focuses on how Google through into the trap of 'active inertia'. The case
highlights various issues, restricting the its innovative technology rose to success also discusses internal and external
member users to integrate them with the very soon. Revenue-earning models of challenges facing Dell in its attempt to
growing popularity of online social Internet companies are dealt in greater regain its leadership position in the PC
networking. It illustrates the process by detail, with focus on how Google makes industry.
which an illiterate gets job through the help money. The case also details Google's add-
of a mentor, and in the process the mentor ons to its products and services, for ensuring
gets rewarded for every jobseekers Pedagogical Objectives
growth and sustainability. This case helps
acceptance of job. discuss how Google has grown over the • How important is modifying a business
years. What has been the company's model for an organisation's success?
Pedagogical Objectives strategy? What is its business model and
what is so unique about it? Finally, it • To study the growing importance of the
The case is structured to let the students retail segment compared to the business
questions whether this business model is
analyse and understand: segment.
exportable - can Google use the 'one size
• To understand the dynamics of the social fits all' approach to its business model? Industry Personal Computers
networking market Reference No. INM0102A
Pedagogical Objectives Year of Pub. 2008
• To understand the business model of
Teaching Note Available
BabaJob.com The case is structured to let the students Struc.Assign. Available
analyse and understand:
• To understand the visibility of trust and
Keywords
risks associated with BabaJob.com • Search engines' business and revenue
models Dell; Computers; Business Model; Michael
• To understand the importance of
Dell; PC retailing; Segmenting; Targeting;
appropriate business model in the social • Google's business model and other Positioning; Innovation Management Case
networking space. factors, like its technology, products and Study; Active Inertia; Hewlett-Packard;
services, which have led to its success Compaq; Lenovo; Transformation;
Industry Social Networking
Reference No. INM0104 • The rationale behind Internet Strategic Inflection Point; SIP
Year of Pub. 2008 companies targeting overseas markets
Teaching Note Available
• Whether search engines business models
Struc.Assign. Available
and that of Google is exportable? Dell Business Model (A):
Keywords Strategic Inflection Points in the
Industry Internet Search & Navigation PC Industry
Social Networking; Dynamics of online Services
business; BabaJob.com; Business and Reference No. INM0103 Dell Inc. was the second largest PC
Revenue Model; Corporate Social Year of Pub. 2008 Company in 2007 in terms of global market
Responsibility; Organised and Unorganised Teaching Note Available share. The success of Dell was largely
Employment; Sean Blagsvedt; Innovation Struc.Assign. Available attributable to its direct selling business
Management Case Study; Critical success model, which was suitable for corporate
factors of e-commerce; Strategies of Keywords buyers and bulk purchasers. Dell had an in-
BabaJob.com; Bubble 2.0 Google; Baidu.com; China's Search Engine built advantage of lower costs due to its
Market; Business Model; Globalisation and highly efficient manufacturing operations

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and supply chain management efficiencies. Industry Mobile Phone Study; Strategies of P&G in Mexico;
However, with the changing competitive Reference No. INM0100C Innovation in Emerging Markets
dynamics, Dell was losing its cost Year of Pub. 2008
leadership in the industry. Dell's cost Teaching Note Available
advantage against its competitors was Struc.Assign. Available
Logitech: Competing through
eroding as competitors were following
practices like mass manufacturing and just- Keywords Innovation
in-time inventory management. After Mobile Phones; Advertising; Innovation In 2006, Logitech International SA
Hewlett-Packard became the market leader Management Case Study; Competiton; (Logitech), the Swiss public company
in 2007, Dell was considering various Mobile Serach Users; SMS; MMS which was established in 1981, recorded
options to sustain and regain its leading revenue of $1,797 million. Logitech, which
position in the PC industry. started with the OEM sector, expanded
through its retail business. It has diverse
P&G in Mexico: Profiting from
Pedagogical Objectives products in computer peripherals and
Product and Marketing commands leading positions in all its
• To understand the concept of business Innovations? product categories such as audio, video, PC
model innovation in the context of an navigation, Internet communication,
organisation's success Leading consumer packaged goods
manufacturer Procter & Gamble (P&G) has music, and gaming devices. Logitech has
• To understand, how the new competitive an impressive history of successfully been a highly innovative company, with a
dynamics when unaddressed would launching a vast array of new products. list of more than 65 industry ‘firsts’. It
undermine the success of existing With developed world markets becoming launched more than 130 new products
business models. increasingly saturated, multinational during 2006. But it faced stiff competition
corporations have turned to emerging from industry giants like Microsoft. In this
Industry Personal Computers scenario, can Logitech sustain its
markets like India, China, and Mexico.
Reference No. INM0101A competitive edge by just being innovative?
Realising the potential of consumers in the
Year of Pub. 2008 Will it be successful in keeping pace with
emerging markets, major MNCs are
Teaching Note Available technology and market, to retain its leading
penetrating the growing low-income
Struc.Assign. Available positions in its product categories?
segments. But the dynamics and the
Keywords consumer behaviour in these markets are
quite different from the developed markets. Pedagogical Objectives
Dell; Computers; Business Model; Michael According to many experts, the strategies
Dell; PC retailing; Segmenting; Targeting; • To understand the changing dynamics
that hold well in developed markets fail in
Positioning; Innovation Management Case of computer peripherals industry
developing markets. However, P&G, with
Study; Active Inertia; Hewlett-Packard; its long presence, has had tremendous • To understand how innovation drives
Compaq; Lenovo; Transformation; success in Mexico through its product and competition in the industry
Strategic Inflection Point; SIP marketing innovations.
• To discuss about various competitive
advantages of Logitech
Pedagogical Objectives
Mobile Phones: The Advent of a • To get an awareness of Logitech’s
New Advertising Medium • To discuss product profile and
products vis-à-vis competition
segmentation statistics of P&G
Marketers are constantly looking for • To analyse whether innovation can
• To discuss P&G's shift in its business
innovative ways and channels to send sustain growth for Logitech.
model from serving wealthiest customers
marketing messages. The attention of
in developed countries to low-income Industry Computer Peripherals
marketers swung towards mobile phones
consumers in emerging markets Reference No. INM0098B
as an innovative medium for this purpose,
Year of Pub. 2007
due to their mass usage. Mobile phone • To identify various opportunities and
Teaching Note Available
penetration around the world reached more challenges for companies in emerging
Struc.Assign. Available
than 2 billion as of 2008. This led to use of markets
short messaging, mobile search advertising, Keywords
and video files as advertisement platforms • To discuss the product and marketing
for reaching consumers. Most consumers innovation strategies of P&G in Mexico Computer Peripherals Industry; Logitech
around the world accept such messages, International SA; OEM; Innovation; New
• To debate on the sustainability of P&G's
according to their perceived relevance and Product Introductions; Technological
strategy of serving low-income
offers provided. Mobile phone advertising Innovation; MX Revolution; PC Industry;
consumers in the long run.
platforms have evolved, depending upon Microsoft; EPFL Incubator; Logitech;
the features of mobile phones that Industry FMCG Daniel Borel; Innovation Management
consumers use. The case analyses how Reference No. INM0099 Case Study; Growth Engines; Organic
mobile phones can be used better for Year of Pub. 2007 Growth Creative Technology
marketing communication. Teaching Note Available
Struc.Assign. Available
Pedagogical Objectives Keywords M&M’s Candy’s Innovative
• To understand the opportunities for
Marketing Strategies
Population and Income levels of People
marketing communication through in Latin America; Fortune at the Bottom In the high-tech culture of the new
mobile phone as a medium of the Pyramid; Mexican Retailing millennium, M&M’s Candy has fought
• To discuss how mobile phone Industry; Potential and Challenges from diligently to stay cool, contemporary and
advertisements should be designed Emerging Markets; Consumer Behaviour relevant to consumers in the 21st century.
considering how consumers react to in Mexico; Innovation Management Case It has faced incessant challenges from
advertisements through mobile phones. competitive brands as well as social

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pressures encouraging consumers to reduce in developing cleaner and fuel efficient had planned to spend an estimated amount

I N N O V A A T I O N
candy consumption. But its main challenge engines and gaining market share in the of US $75 million for the brand promotion
is keeping the brand simple, relevant to alternative fuel vehicle segment. and the acceptance level of new Jeep
consumers and yet maintaining among the common people.
growth.Over the years, colour, brand Pedagogical Objectives
personalities, globally recognisable Pedagogical Objectives
packaging, the 'melt in your mouth, not in • The case discusses Honda’s initiative to
your hand' slogan and the distinctive 'M' develop cleaner and fuel efficient engines • To understand the efforts made by DC
on each candy - all have played an to fight against the volatility in fuel to launch and promote ‘Jeep Compass
important role in raising the brand to an prices and to target the consumers
looking for the fuel efficient alternatives • To analyse how DC attempted to change
iconic status. Carrying on the spirit of its Jeep’s traditional rough & tough image
earlier marketing initiatives, M&M’s has • It also discusses the company’s strategy
decided to freshen up the brand and to gain market share in the alternative • To get an idea of the global sports utility
strengthen the emotional bonds with its fuel vehicle segment. market (SUV) market
loyal customers by leveraging the
compelling equities of colour and fun to Industry Automobile
• To discuss whether the new, ‘softer’, Jeep
create consumer interest. Reference No. INM0096P
would appeal to the customers.
Year of Pub. 2007 Industry Automobile
The case can be used to discuss the Teaching Note Not Available Reference No. INM0095K
dynamics of the candy industry, M&M’s Struc.Assign. Not Available Year of Pub. 2006
brand strategy including brand merchandise
Teaching Note Not Available
and brand characters and the use of retail Keywords
Struc.Assign. Not Available
channels, advertainment and Internet
Honda; Dream D-type engine; C1000 super
marketing to build personalized
cub; S-500; N-600 sedan; Honda Accord; Keywords
relationship with the customers.
Honda Civic; VTEC engines; Innovation DaimlerChrysler (DC); Jeep; Compass;
Management Case Study; Environmental Sports Utility Vehicle (SUV); Daimler-
Pedagogical Objectives protection Agency; Euro 5 emission norms; Benz; Chrysler; Diversifying; Marque;
• To discuss the dynamics of the candy Alternative fuel vehicles; DOHC diesel Global SUV market; Product launch;
industry engine; i- CTDi engine; IMA hybrid system; Innovation Management Case Study; Brand
honda FCX promotion; Rugged looks; Car based SUV;
• To analyse M&M’s brand strategy Softer Jeep; Off-road performance
including brand merchandise and brand
characters
DaimlerChrysler’s Compass SUV:
• To discuss the use of retail channels, Softening The Tough Jeep Indian Railways – IT Innovations
advertainment and internet marketing
Jeep was an automobile brand of
in Passenger Services
to build personalised relationship with
the customers. DaimlerChrysler (DC) which was known The Indian Railways’ operated in a highly
for its rugged looks and agile off-road complex environment that made it
Industry Confetionary Industry performance. It was one of the Chrysler imperative for its operations to be
Reference No. INM0097P subsidiaries and became a part of continuously updated with timely and
Year of Pub. 2007 DaimlerChrysler when Daimler-Benz accurate information to a variety of
Teaching Note Not Available merged with the Chrysler Corporation in business concerns. Further, the optimum
Struc.Assign. Not Available 1998. Since its inception in 1941 Jeep had utilisation of the available resources
Keywords dominated sport utility vehicle (SUV) demanded deployment of a robust
market for almost 65 years. Jeep was infrastructure through implementation of
Mars; Brand Strategy; Advertisement; famous worldwide for its rough and tough innovative and economical technologies.
Innovation Management Case Study; Brand looks and it was hugely popular among the
Character; Brand Personality; Brand adventure friendly people. By 2006 sales This case provides the reader an insight
Revitalisation; Mini Brand; Product of full-size SUVs were plummeting on into the various cost-saving innovations
personalisation regular basis and automakers were beginning that were adopted by IR in improving and
to admit that a shift of market was almost advancing their passenger services. The
inevitable. Several companies were progressive implementation of IT served
thinking of new products, car-based SUV as a thrust towards better responsiveness
Honda’s Green Technology to the rising passenger demands. The
being one of them. DC was among them,
Strategy in the US Auto Market and was about to take a new direction by communication infrastructure that IR built
Japan based Honda Motor Company is a launching its first car-based SUV which up over the years not only helped it cater
leading global automobile manufacturer. It emphasized on on-road performance rather effectively to the ascending customer needs
manufactures a variety of products like than boulder-hopping off-road feats. but also opened new avenues for revenue
small general-purpose engines, cars, Compass was Jeep’s first car-based SUV and generation. It augmented its revenues and
motorcycles, trucks, scooters. Since the it was the Jeep’s new initiative of focusing also helped it cut down surplus expenditures
early 2000s the volatility in fuel prices on-road performance. The management through better utilisation of resources by
and greater environmental awareness of Jeep realized that they needed to appeal way of improved demand analysis, better
forced many consumers to look for fuel to a wide range of customers and at the management of coaches and efficient
efficient alternatives. It has led to increased same time they also wanted to preserve its utilisation of railway tracks.
competition in the alternative fuel vehicle “rough-and-ready” image. DC was
segment. Honda has found its one fuel competing for Jeep’s success with the Pedagogical Objectives
strategy risky and decided to focus on philosophy of expanding as well as
diversifying. • To discuss the successive IT
technologies like clean diesels, hybrids and implementations at IR and how they
fuel cells which give it more flexibility. This case deals with promotion of the new help IR to cut cost and increase
The case study discusses Honda’s initiatives brand ‘Jeep Compass’ as the management efficiency
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• To analyse how IT is helping the • To discuss the challenges faced by Dell Pedagogical Objectives
passengers in better utilising the railway's
services. • To debate on Dell’s turnaround • To understand about onsite and offshore
strategies. models for delivering software services
Industry Transport
Reference No. INM0093K
Industry Personal Computers • To understand why and how Global
Year of Pub. 2007
Reference No. INM0092K Delivery Model is used by software
Teaching Note Not Available
Year of Pub. 2007 companies like Infosys to enhance
Struc.Assign. Not Available
Teaching Note Not Available service to its clients and to implement
Struc.Assign. Not Available Knowledge Management across the
Keywords company
Keywords
Indian Railways; Smithsonian Awards; EDP • To understand how Infosys changed its
(electronic data processing); Impress; Dell Inc; Apple; Dell business model; strategy to be one up on its competitors.
Concert; Centre for Railways Information Personal computer; US computer industry;
Systems (CRIS); CML; Passenger IBM (International Business Machines Industry Software Industry
Reservation System (PRS); Integrated Corporation); Server; Printer; Innovation Reference No. INM0091B
Voice Response System (IVRS); Unreserved Management Case Study; Notepad; Sony; Year of Pub. 2006
Ticketing Service (UTS); Innovation Graphical user interface; Gateway Teaching Note Not Available
Management Case Study; e-Ticket Computers; Premier Page web page; Struc.Assign. Not Available
Product recalls
Keywords
Onsite Model; Offshore Model; Global
Dell: From a Low Cost PC Maker
The Implementation of an Delivery Model (GDM); Process
to an Innovative Company
Improved Global Delivery Architecture; Innovation Management
Case Study; HR Recruitment; Managerial
During the late 80s, Michael Dell and his Model in Infosys: Will it
functions at Infosys; Knowledge
company, Dell Inc., revolutionized the Succeed? management; Software Industry
global PC market by the latter’s ‘Dell
Infosys, a software development company Competition; Collaborative Distributed
Direct Business Model’, where it
eliminated all kinds of middlemen and in India, initially provided onsite service Delivery Model
directly supplied customized PCs to the to its global clients. This being an
customers. For the last two decades, the expensive proposition, the company
company continued to be the market leader decided to complete projects at its Indian Whirlpool: Redefining Innovation
in the small household PC segment. offshore development centers and then
However, after enjoying the supremacy for implement them at the clients’ places. This The year 2005 had proved to be a year of
two decades since 2005, it started facing was also a challenge as there was no service exceptional achievements for the world’s
competition. August 2006 was the cruelest provider at the clients’ locations, causing number one home appliance brand
month for Dell as the company’s bottom a deterrent to the progress of projects. company, Whirlpool. It had achieved
line experienced an unprecedented decline. Besides, miscommunication added to the record net earnings of $422 million on
The company’s revenue and profit failed delay of project completion. To serve its record sales revenues of $14.3 billion, which
to match the expectations. Besides, it had clients effectively and in time, Infosys had in turn, propelled the company’s share
to write off US$ 450 million (mn) for the decided to open proximity centers close price to an all-time high of $92.64 by April
installation of defective capacitors in its to the clients’ locations. In the late 1990s, 2006.
computers and opt for workforce due to stiff competition from IBM, Wipro Much of Whirlpool's performance was
alignment. It also recalled lithium batteries and TCS, Infosys decided to adopt the attributed to the new products and features
manufactured by Sony from its laptop. The Global Delivery Model (GDM), which was introduced by the company, based on ideas
analysts were thus, skeptical about the based on the principle of taking work where received from the company’s employees
future of the organization. The company it could be done best in an economical working under the ‘innovation system’,
was termed as less innovative than its manner and with the least amount of established by the company’s former CEO,
competitors as it failed to launch innovative acceptable risk. In 2005 Infosys’ revenue David Whitwam in 1999. The innovation
products in the market. To be on the stood at $1,592 million. system was implemented to counter the
growth trajectory again, it planned to enter company’s almost stagnant performance
Infosys found that IBM, Accenture, TCS
into the consumer electronics segment. But over the past decade, judging by everything
and Wipro had also adapted GDM. Industry
the analysts were doubtful about the success from stock price to profit margin to
observers felt that GDM was a standardized
of Dell’s ‘Direct Business Model’ in the market share. The company’s failure to
IT model but had no competitive
consumer electronics segment. The case introduce exciting products or product
advantage. To combat competition and to
deals with Dell’s business model, viable features had reduced Whirlpool’s machines
differentiate itself from other Global IT
alternative of Dell’s business model and its to mere commodities and the prices of its
giants, Infosys started working on GDM
success in the consumer electronics most important products were falling each
2.0 and called it the “Collaborative
segment. It provides a scope for discussing year.
Distributed Delivery Model” (CDDM).
whether the turnaround strategy of Dell
would be successful and about the scenario To implement the new GDM, Infosys had Following the implemetation of the
of global PC industry and global consumer to set up more offshore development innovation drive, revenues from products
electronics market. centers around the globe. To succeed in its that fitted the company's definition of
efforts Infosys decided to acquire ‘innovative’ increased from $10 million
Pedagogical Objectives companies around the globe. in 2001 to $800 million in 2005, i.e., 5
percent of the company's record $14.3
• To discuss how Dell revolutionized the Would Infosys succeed in gaining the billion in total revenue. In 2005 alone,
global PC market competitive advantage and the Whirlpool launched more than twice as
differentiator that it hoped to achieve with many new products in half the time, as
• To analyse Dell’s Direct Business Model its improved GDM? compared to the time before the
• To understand the global PC industry innovation process was launched.

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The case looks at the introduction of this Pedagogical Objectives Industry Consumer Electronic Industry

I N N O V A A T I O N
successful innovation strategy. Reference No. INM0088A
• To understand Motorola as a technology Year of Pub. 2006
and innovation leader.
Pedagogical Objectives Teaching Note Available
• To understand the importance of Struc.Assign. Available
• To understand Whirlpool’s position in customer-centric approach
the home appliances market Keywords
• To discuss the importance of Innovation LG; LG Electronics; Blue Ocean Strategy;
• Stagnation of innovation system at as a competitive strategy.
whirlpool strategy; localisation; competitive
Industry Telecomunication strategy; market leader; new product
• Implementation of the innovation drive Reference No. INM0089A development; Innovation; India; China;
at Whirlpool Year of Pub. 2006 Middle East; Digital Electronics; CDMA
• Revival of Whirlpool through Teaching Note Available and GSM handset; LCD TV; Plasma TV;
implementation of innovation strategy. Struc.Assign. Not Available Innovation Management Case Study;
Mobile phones; Nokia; Samsung
Industry Home Appliance Industry Keywords
Reference No. INM0090B
Motorola; innovation; seamless mobility;
Year of Pub. 2006
technological leadership; core competency; ITC: Reshaping the Lives of
Teaching Note Not Available
Struc.Assign. Not Available
changing customer needs; reinventing Indian Farmers
vision; spin-offs; merger & acquisitions;
Keywords strategic alliances; differentiation; Launched in June 2000, 'e-Choupal', a
Innovation Management Case Study; revolutionary initiative by the Indian
Whirlpool; Innovation; ideas; home leadership change; reorganisation; culture FMCG giant ITC, became the largest
appliances; white goods; Innovation of innovation; fostering innovation etc initiative among all e-commerce
Management Case Study; David Whitman; interventions in rural India. By 2006, 'e-
Nancy Snyder; machines; innovative; Choupal' reached out to more than 3.5
Maytag; acquisition; strategies; metrics; million farmers in over 31,000 villages
knowledge management LG Electronics: The Blue Ocean growing a range of crops - soybean, coffee,
Strategy wheat, rice, pulses and shrimp, through
South Korea based LG Electronics, Inc. 5200 kiosks across six states (Madhya
Motorola: Fostering Innovation? (LGE) was a technology innovator in Pradesh, Karnataka, Andhra Pradesh, Uttar
electronics, information and Pradesh, Maharashtra and Rajasthan) in
Motorola, Inc. US based Fortune 100 communications businesses producing India. By 2010, the e-Choupal network
company, was known around the world for CDMA handsets, DVD players, optical planned to cover over 100,000 villages,
innovation and technological leadership in storage devices, canister vacuum cleaners, representing one sixth of rural India, and
embedded systems, wireless and broadband air conditioners and micro ovens. LGE had create more than 10 million e-farmers.
communications and made paradigm more than 72,000 employees working in Encouraged by the success of the e-Choupal
shifting contributions in two-way radio, about 77 subsidiaries and marketing units initiative, ITC launched ‘Choupal Sagar’
semiconductors, paging, space flight across the world. in 2004. The problems stumbled upon while
communications, cellular communications
In January 2006, the company launched setting up and managing these ‘e-Choupals’
etc. with global presence on six continents
“Blue Ocean Management” campaign to were primarily of infrastructural
and 69,000 employees over the world of
be one among the top 3 electronics, inadequacies, including power supply,
which 25,000 were engineers and scientists
information and telecommunications firms telecom connectivity and bandwidth, apart
with passionate commitment to R&D. It
in the world by 2010. But LGE was from the challenges of making the farmers
had 21,300 global patents in its name and
primarily known for its low-cost and the users of the network e-savvy in
reached sales of US $36.8 billion in 2006.
appliances, and faced challenges related to the inaccessible areas of rural India.
Motorola, a pioneer in wireless was company’s image, low profitability and Receiver of the Development Gateway
criticized for not capitalizing aggressively stiff competition across the world. With Award 2005, the e-Choupal initiative
on its innovations and failed to anticipate the tough road ahead would LGE be able to demonstrated that private sector can
great demand of digital mobiles. Motorola achieve its target by 2010? Would it be successfully achieve a balance between the
started to rethink on its core competency, able to make its competition irrelevant, conflicting goals of creating shareholder
realized changing customer needs, reviewed especially Samsung, its home rival? value and also fulfill the social
its history of innovation and finally
responsibility of development and growth.
reinvented its focus on innovation led by
Pedagogical Objectives
vision of ‘Seamless mobility’, develop ITC’s e-Choupal initiative began by
innovative culture through series of • To understand LG: a leading player in deploying technology to re-engineer
strategic moves like acquisitions, consumer electronics procurement of soy and other crops from
partnerships, spin-offs, increase R&D rural India. The e-Choupal graduated to
facilities, leadership change, differentiation • To understand consumer electronic serve as a highly profitable distribution and
in design etc. market and competitor product design channel. The effort taught
• To understand value based technological valuable lessons in rural engagement;
The case discusses cost cutting strategy,
innovation demonstrated the magnitude of
adopting specific corporate structure by
opportunity, at the same time illustrated
reorganization, impact of leadership • To understand geographic diversification the social and development impact of
change and organisation culture at and its strategies applied to gain market bringing global resources, practices, and
Motorola. Would Motorola be able to share better remuneration right at the doorstep
sustain the vision of ‘Seamless Mobility’
• To analyse the Blue Ocean strategy and of the Indian farmer.
to push Motorola forward in its innovation
efforts? Can Motorola efficiently its implementation at LGE.
capitalize on its innovations track record?

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Pedagogical Objectives • Technology Innovation and Keywords
development
• To understand ITC’s e-Choupal Apple; iPhone; iPod; Steve Jobs; Steve
initiative • Moore’s Law Wozniak; Smart Phones; Mobile
Telephony; Innovation Management Case
• To understand the rural sector of India • Challenges and Competition faced by Study; Cingular; Nokia; Motorola; Palm
and impact of e-commerce initiatives Intel. Treo; AT&T; Blue Tooth Device; Personal
on the sector Media Player
Industry Computer Industry
• To debate on the conflicting goals of Reference No. INM0086C
creating shareholder value and social Year of Pub. 2007
responsibility for a company. Teaching Note Available A Challenge to Innovation: Can
Industry Rural Development
Struc.Assign. Not Available
Netflix sustain growth?
Reference No. INM0087A Keywords
Netflix, the world’s largest online movie,
Year of Pub. 2006
Intel; Motherboard; Personal Computers; television and other filmed entertainment
Teaching Note Not Available
Innovation Management Case Study; rental subscription service (as of 2006),
Struc.Assign. Not Available
Gordon Moore; Robert Noyce; Silicon was an example of ‘innovation at work’.
Keywords wafer; Tera Scale; Semiconductor; Micro Operating almost like a mail-order
processor; Moore’s Law; AMD; business, the company had evolved a
Indian Tobacco Company (ITC); Cigarette Transistors; Integrated Circuits; 80 Core; successful and proven marketing strategy,
and tobacco giant; Imperial Tobacco Chipsets which helped it to grow into a highly
Company of India Ltd; Innovation profitable and established company. The
Management Case Study; Genesis of e- success was attributed to the high levels of
Choupal; The Sanchalak; The Samyojak; customer satisfaction and value added
e-Choupal; e-Choupal network; Mandi Apple iPhone – Will it Ring? services the company offered since
System; Indial Farmers; Rural India; Indian inception. With deals from all movie
In January 2007, Apple launched its
Farmers companies, and protected by a patent for
iPhone, a revolutionary device which
combined the features of a mobile phone its business model, the future of Netflix
and an iPod. With innovative and unique seemed to be certain.
Intel’s Trillionizing Processor features incorporated into the product, the However, the scene was set to change with
iPhone was expected to revolutionize the the advent of movie downloads and
During the International Solid State Circuits mobile phone market. However, the
Conference, Intel has announced that they analysts were skeptical about the continued
mobile market already consisted of a success of Netflix. Although Netflix itself
have successfully produced a multicore chip number of established players like
which has ‘80core’in it, though it is still in was to announce its own download venture
Motorola, Nokia, LG, Samsung, Sony in early 2007, it was to be seen how the
the research stage. It was previously Ericsson, Palm and others. Although
announced in Intel Developer’s Forum at company would remain competitive. The
experts rated the iPhone far above the case tries to bring out the highly successful
San Francisco in September 2006 that the existing models, Apple was expected to
company planed to come out with an ‘80 model that Netflix had adopted and if the
face various challenges in establishing itself success of this innovation could be sustained
core’ micro processor chip. The new chip as a major player in the existing market.
would be capable of exchanging data at one while facing newer challenges. The main
The Apple iPhone was highly priced and issues that the case tries to highlight are:
terabyte per second amongst its multiple aimed at targeting a niche market. In this
cores. Intel announced that it would be able 1) Should Netflix alter its business model?
scenario, it was to be seen if the iPhone 2) Can Netflix defend its business model
to start commercial production of such would make a mark and achieve success
chips by 2012. This announcement marked and maintain its market leadership
like Apple’s other products, the Mac and position? If so, what should its strategies
a watershed in the industry’s general shift the iPod.
towards multicore computing. Originally be?
known primarily to engineers and The case tracks the various technical
technologists, Intel's successful ‘Intel features of the Phone, its strategies to gain Pedagogical Objectives
Inside’ advertising campaign of the 1990s market share and challenges it will face in
• To discuss how ‘disruptive innovation’
made it and its ‘Pentium’ processor the already crowded mobile industry. The
strategies impact companies
household names. It has been ranked as case facilitates discussion on whether
the leader in the Semiconductor industry, Apple’s iPhone would succeed as the iPod. • To discuss how a successful business
and has been in this position from 1992 model can be sustained.
till present. Pedagogical Objectives
Industry Movie rentals (Entertainment)
The case details the various features of the • Strategies of launching a new Reference No. INM0084C
new chip, and the challenges Intel would technological product into an already Year of Pub. 2007
face by the introduction of the new chip. competitive market Teaching Note Available
The future of this chip is still to be Struc.Assign. Not Available
determined and would require working much • Challenges faced by Apple with iPhone’s
more closely with the hardware makers, launch Keywords
which could give Intel or another first • Competition from already established Netflix; Innovation; Movie rentals;
mover a massive advantage. players in the mobile market. Innovation; disruptive innovation; Reed
Hastings; Innovation Management Case
Pedagogical Objectives Industry Mobile Phone Industry Study; movie downloads; Apple; Amazon;
Reference No. INM0085C Patent; DVD market; Value added services;
• Microprocessor and Semiconductor Year of Pub. 2007 recommendation system; allocation
Industry Teaching Note Available system; customer satisfaction
Struc.Assign. Not Available
• Future strategies for success for a
computer maker

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Open Innovation: The Case of SED Technology: Canon’s New and was branded as ‘The car for the future’.

I N N O V A A T I O N
P&G Initiative The idea of the hybrid car was conceived
by Hiroshi Okuda and Fujio Cho, the two
By 2000, in the wake of rapidly increasing In the late 1990s, Canon’s revenue declined former presidents of Toyota. But, it was
R&D expenditure, lackluster new product and few of its divisions became loss- making. Katsuaki Watanabe, the chairman of
launches and nearly flat sales, P&G, one of Fujio Mitarai, the president and CEO of the Toyota, who planned to bring hybrid cars
the largest global consumer products company, closed the money-losing divisions into the mainstream automobile market.
companies, decided to revamp its and undertook diversification strategies He planned to make hybrid more affordable
innovation model. The company’s existing through technological innovations. He to the consumers by improving production
innovation model was heavily dependent focused on the flat-screen TV segment with systems and developing better technologies
on its internal R&D department. This a new technology called the SED. By 2010, in batteries, motors and inverters. The quest
model worked well for the company over Fujio Mitarai wanted to post revenue of was to produce a third generation ‘Prius’
the decades. However, the above setbacks $50 billion with this new technology. The quickly and cheaply and sell one million
urged the CEO A G Lafley to reinvent the case gives an insight to Canon’s history and hybrids annually by 2010. If Katsuaki
innovation model to ensure consistent the challenges that it faced over the years. Watanabe became successful in his venture,
growth. Thus, the company initiated an It gives an overview of the global flat-screen Toyota would become the world’s finest
open innovation model, ‘connect and TV segment and Fujio Mitarai’s optimistic automobile manufacturer and a great
develop’. The new model encouraged the move with the SED TV. innovator. The story of the ‘Prius’
company to collaborate with external suggested that actually it was. The case
organisations for innovation ideas. Pedagogical Objectives study offers a scope of discussion whether
Connect and develop turned out to be a Toyota would be able to bring the car in
successful innovation model and helped • To understand how Canon as a camera mainstream market.
P&G launch new innovative products. The manufacturer had become an integrated
case starts with a short introduction of the manufacturer of precision equipments
Pedagogical Objectives
problems that P&G was facing in 2000. including camera, business machines and
The next section gives a brief history of optical products • To discuss how innovation play a key
the company underlining its innovative success factor in automobile industry
• To understand the emerging technology
products over the period. The case then in the consumer electronics industry • To discuss the concept of product
attempts to highlight the company’s new
launching in the context of automobile
approach to innovation – shifting from • To understand the global flat panel TV
industry
R&D to C&D – and elaborates how it industry
adopted and applied the new model. The • To discuss the concept of hybrid car and
subsequent sections present details of what • To understand the adoption of new
how Toyota plan to make the hybrid
is open innovation and how P&G benefited initiatives by Canon for its revival mode.
technology into the mainstream
from it. Industry Printing and Imaging automobile market
Equipment
• To discuss how an idea was visualised
Pedagogical Objectives Reference No. INM0082K
and then conceptualised and then turn
Year of Pub. 2006
• To understand how P&G developed and into a reality.
Teaching Note Not Available
implemented its open innovation model Struc.Assign. Not Available • Hybrid technology and various types of
called connect and develop (C&D)
hybrid technology.
Keywords
• To understand the culture of innovation
Industry Auto Manufacturing
at P&G Canon; Toshiba; Flat TV; Plasma; LCD;
Reference No. INM0081K
SED.
• To assess how P&G shifted its Year of Pub. 2006
innovation approach from in-house Teaching Note Not Available
R&D to C&D Struc.Assig. Not Available
Toyota's Prius: Car of the Future
• To discuss the benefits of open Keywords
innovation model In 1995, Toyota undertook ‘Project Prius’,
but it was not an easy task for the Japanese Toyota; Hybrid technology; Green house
• To analyse why open innovation model auto major. Satoshi Ogiso, chief engineer gas project.
is important for companies that want of the project, recalled that the first
to grow consistently prototypes of the car had even faced
• To discuss how P&G benefited from its starting problem. It took almost six Pfizer’s Foray into Sedatives: The
C&D innovation model. months to roll the car. Finally, when the American Dream?
car started, it moved for a few yards only.
Industry FMCG It was hard to imagine that Toyota, which It is boom time in the US sedatives market.
Reference No. INM0083K was known for its efficient production Sales have been on the rise and
Year of Pub. 2006 systems, was facing such trouble. Analysts pharmaceutical companies have been
Teaching Note Not Available felt that ‘Prius’ was a case of technological bombarding the public with their latest
Struc.Assign. Not Available problems, impossible demands and multiple generation of branded drugs which claim
miscalculations. It proved how a great to have negligible side effects while giving
Keywords the user a good night’s sleep. The lifestyle
company could overcome obstacles and
P&G; Open innovation; R&D; Budgeting; turn a dream into reality. Though ‘Prius’ of the Americans in the twenty first
Technology; 9 Sigma. represented only a small fraction of the century had given rise to a culture of
nine million cars and trucks that the insomniacs. While pharmaceutical
Japanese company planned to produce in companies and sleep centers have been
2006, it would be the first vehicle to provide advocating the immediate addressal of the
a serious alternative to internal combustion problem, critics are convinced that these
engines, designed for a world of scarce oil were mere money mongering activities.

9
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Pfizer, the largest global pharmaceutical downloads and handheld music players. In proposal, details the unconventional
company has been working on a new September 2006, it expanded its presence methods followed by Cuban in all his
sleeping drug generically named indiplon in the video on demand market and began endeavors.
which was due for launch in 2006. By end offering online movie download services
2002, Pfizer and Neurocrine entered into through its iTunes stores which sold music Pedagogical Objectives
an agreement for the commercialisation and television shows. But here, the scenario
and development of Indiplon. Neurocrine was different. Apple became the market • Movie making in Hollywood
had received an initial payment of $100 leader of online music downloads due to its • How Mark Cuban changed the movie/
million. Pfizer has also taken the first mover advantage in the music film exhibition process.
responsibility of funding the further downloads market and also due to
development of the drug, payment of cooperation from the music companies Industry Entertainment
royalties on worldwide sales and co which were threatened by music piracy. But Reference No. INM0078C
promotion fees in US. Pfizer’s entry into in the movie downloads business there were Year of Pub. 2005
this category which was hitherto dominated already a few players who have been Teaching Note Not Available
by Ambien with an 80% market share and operating for a number of years and Apple Struc.Assign. Not Available
Lunesta (about 11% share), has caused an was also expected to face competition from
increase in activity in the market. The the new entrants. Apple also got low Keywords
existing players have upped their ad spends cooperation from the movie studios due Hollywood; 2929 Entertainment; Mark
and are working towards coming up with to its pricing strategy. Added to these, the Cuban; Todd Wagner; DVD; Cable channels;
advanced versions of their drugs. quality of movie downloads was only almost Theatre and high definition.
DVD quality which was contrary to the
Analysts feel that given the current low high quality offerings like the HDTV’s, HD-
penetration levels of sleeping pills in the DVD and Blu-ray, which was gaining
American market there was a huge popularity in the US. Open Source: Software Model
potential for growth and room for many for the future?
more players. At the same time there is This case facilitates discussion on whether
also criticism about pharmaceutical Apple would succeed in its Movie Open source software has been gaining a
companies and medical practitioners, that Downloads venture. It also enables the lot of popularity as compared to the
they are hand-in-hand, in promoting the students to understand the issues involved proprietary model. Although the
sales of these drugs. These critics are of in the launch of a new technology service development in this arena started only in
the opinion that sleeping pills are not an and develop relevant marketing strategies. the late sixties, its growth has been
effective solution to the problem of phenomenal. The number of products on
insomnia. They advocate the Pedagogical Objectives this platform might be small but they have
identification and treatment of the been able to give established proprietary
underlying problem which is the root cause • To discuss the online movie download software makers like Microsoft a run for
of insomnia, and also the adoption of business in the US their money, forcing them to acknowledge
proper lifestyle and habits which they feel and even enter this field.
• Challenges faced by Apple in its movie
would solve most insomnia related download business venture This case study attempts to look at open
problems. source, its growth and its viability as
• Consumer trends in home compared to proprietary software. Efforts
Pedagogical Objectives entertainment. have been made to look at the open source
• Trends in the American Pharmaceutical Industry Entertainment model from all angles, even highlighting
industry using the Porter’s Five Forces Reference No. INM0079C any possible drawbacks.
Model Year of Pub. 2006
The discussion points are the advantages
Teaching Note Available
• Strategic groups within the and disadvantages of the model vis a vis
Struc.Assign. Not Available
pharmaceutical industry. the proprietary model and whether the
Keywords future of software can be completely
Industry Sedatives Market dependent on the open source platform.
Reference No. INM0080C Apple; Movie downloads; iPod; Music
Year of Pub. 2006 downloads; Tunes; DVD and Video market; Pedagogical Objectives
Teaching Note Available Online movie market; Amazon; AOL; News
Struc.Assign. Not Available Corp.; Technical services; VOD service; • To discuss the advantages and
Picture quality; Downloading time; disadvantages of the model vis a vis the
Keywords Technological difficulties. proprietary model
Sleeping Pill Market; Sedatives market; • Future of the open source platform.
American pharmaceutical companies;
Ambien; Indiplon; Insomnia; Corporate Mark Cuban: Breaking the Industry Software
reputation; Social responsibility; Ethical Hollywood Convention? Reference No. INM0077C
marketing; Deceptive marketing; Block Year of Pub. 2006
buster drugs; Direct to consumer In Hollywood, the conventional mode of Teaching Note Available
advertising; Patents; Generic drugs; Sleep releasing a movie was initially at the Struc.Assign. Not Available
centers. theatres and later on DVDs, home video
and cable channels. Challenging the Keywords
conventional mode, Mark Cuban, owner Open source model; Open source code; Free
of Dallas Mavericks and co-owner of 2929 software; Linux Torvalds; Netscape
Apple Ventures into Movie Entertainment, proposed to release movies Navigator; Microsoft; Open source
Downloads simultaneously in the theatres and on DVDs, programming; Eric Raymond; Proprietary
Apple, a Fortune 159 company, was the home video and cable channels. The case model.
market leader of online legal music while examining the responses to Cuban’s

10
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Console War VII Offshore Outsourcing in Legal Will Nokia Keep Buzzing?

I N N O V A A T I O N
Services: DuPont Leads all the
The popularity of video games is on the In mid-2004, Nokia faces stagnant
rise. The top players in the video games Way revenues and falling market share. Olli-
console market in the US, Sony, Microsoft Companies across the globe are Pekka Kallasvuo (Kallasvuo), Nokia new
and Nintendo, are busy bringing out their increasingly concentrating on their core CEO, undertakes several initiatives to
latest versions and the market is heating activities and outsourcing a number of their increase Nokia’s market share and revenue
up. Sony is the undisputed leader in the non-core activities to more cost growth. He pushes snazzier products to
market and its Playstation I and II are very advantageous locations. One non-core market faster and works towards bringing
popular amongst the gaming population. activity being increasingly outsourced is out more models that appeal to status and
Nintendo, who was the leader for the first related to legal work. DuPont pioneered trend-conscious buyers. To make up for a
ten decades of the gaming industry, has Legal Process Outsourcing with its ‘DuPont shortage of flip phones, Kallasvuo turns
lost share rapidly and been delegated to Legal Model’, to tackle the growing to outside manufacturers in Taiwan. To
third position as a niche player targeting number of litigations being faced by the overcome the difficulty of making
the younger gamers. company and also to reduce the costs different handsets for individual operators
involved. This led to the emergence of an without a reorganisation of its logistics
Microsoft though a late entrant in this chain, Nokia decides to customise handsets
market, has come out with the Xbox which organised Legal Process Outsourcing
(LPO) industry, with a number of through software rather than hardware
managed to end up in the second position. modifications. Nokia has also agreed to
Though Microsoft incurred losses in the companies following DuPont’s example.
Besides corporate entities, a number of US- operator customisation. It is committed
sixth generation of console wars, it is to including Wi-Fi in virtually all future
determined to strengthen its position. So, based law firms also started outsourcing a
part of their legal work. India has emerged devices from its multimedia and enterprise
in 2005, it released the latest version of its products groups. It is offering FM radio in
console Xbox 360 looking to increase its as a favoured destination for majority of
the work related to legal outsourcing. some phones. Next on cards is Digital TV,
share by virtue of being the first mover in new variations of 3G, support for RFID,
this round of console wars. Sony and However, a number of challenges remain
for the country in making a success story and faster alternatives to Bluetooth.
Nintendo are expected to release their latest Kallasvuo wonders if Nokia should focus
version by the end of 2006. out of its LPO industry in the future.
its research and resources solely on cellular
The case details the various generations in technology or should it invest in various
Pedagogical Objectives
the video gaming industry and gives a brief alternatives to cellular phones.
history of the top three players. The latest • To discuss the outsourcing industry since
moves by Sony, Microsoft and Nintendo its inception and the reasons for Pedagogical Objectives
are discussed in detail, along with the companies to outsource their non-core
implications of the first mover advantage activities and supposed-to-be core • The case traces Nokia’s growth strategy
which is expected to be in favour of activities in some cases over the years
Microsoft in this latest round. The case • It discusses Nokia’s product and
• To debate whether the model of legal
also raises the following questions: Will marketing initiatives taken to regain its
process outsourcing has the potential to
Microsoft gain mileage from its first- market leadership.
become a future trend with more and
mover advantage? Will Sony be able to
more companies willing to outsource Industry Mobile Phone
retain its dominant position and sustain its
their legal work Reference No. INM0074P
growth in this industry?
• To understand the initiatives taken by Year of Pub. 2006
Teaching Note Not Available
Pedagogical Objectives DuPont in pioneering legal process
outsourcing and to understand the Struc.Assig. Not Available
Understanding the video game console ‘DuPont Legal Model’
industry in terms of keywords
• To discuss the factors that resulted in Nokia; Ollila; Strategy; Kallasvuo; Mobile
• First mover advantage India becoming a favoured destination phone; US; Europe; N-Series; Wi-Fi; Wi-
• Production Efficiency Methods: for majority of the legal outsourcing Max; Nokia Business centre; RIM;
Economies of Scale, Learning Curve work Marketshare; Developing world; 3G.
Effects, The Experience Curve • To debate the challenges India could face
• Pricing Strategies in the future to continue as a favoured
destination for majority of the legal Philips-Seeking Commercial
• Co-branding Techniques. outsourcing work. Success through Innovations
Industry Video Game Industry Legal Process Outsourcing Royal Philips Electronics (Philips), is one
Reference No. INM0076C Reference No. INM0075 of the largest electronics companies in the
Year of Pub. 2006 Year of Pub. 2006 world. Philips has to its credit over 100,000
Teaching Note Available Teaching Note Not Available patents, including iconic products like
Struc.Assign. Not Available Struc.Assig. Not Available compact disc, compact audio-cassette and
Keywords keywords digital video discs. In 2000, Philips had
earned an income of $11.3 billion on sales
Sony; Play Station; Microsoft; X Box; Outsourcing; Offshoring; Legal Process of $44.4 billion. However, by 2001, its
Nintendo; Game Cube; Wii; Video gaming Outsourcing (LPO); DuPont; DuPont Legal profits started declining and it suffered
consoles; Entertainment media; HDVD; Model; Knowledge management; Office losses in 2002.This case discusses Philips’
Blu-ray; Branding; Gaming industry; Loss Tiger; Gaining competitive advantage failure to translate its technical expertise
leader pricing; First mover advantage. through LPO; Cost savings through into commercial gains and the subsequent
offshoring; India; Favoured Destination for turnaround strategy adopted by Philips.
LPO; Patent outsourcing.

11
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Pedagogical Objectives challenger to Intel. Though Intel dominated • To understand the importance of
the microprocessor industry since 1980s, marketing and supply chain
• The case discusses Philips’ failure to AMD’s introduction of dual core Opteron management
convert its technical expertise into resulted in a steady increase in its market
commercial gains share. AMD planned to move to quad-core • To understand how Motorola
processors by 2007. Intel planned its pricing, differentiated its products through
• It also discusses the turnaround strategy designing.
adopted by Philips. marketing programmes, product bundling,
new product introductions and other Industry Cellphone Industry
Industry Consumer Electronics strategies to hamper AMD’s growth. With Reference No. INM0070B
Reference No. INM0073P a stiff competition in the microprocessor Year of Pub. 2005
Year of Pub. 2006 market, analysts were of the opinion that it Teaching Note Not Available
Teaching Note Not Available would be difficult for AMD to achieve a Struc.Assig. Not Available
Struc.Assig. Not Available growth of 30% by 2008. Does AMD have
the brand image to achieve growth amidst keywords
keywords
stiff competition? Will AMD’s position in Differentiation; Design; Cellphone market;
Compact Disc; Philishave; DVD formats; the microprocessor market improve Evolution of design; Integration;
Matsushita; Magnavox; LG Electronics; further? Can AMD win over Intel using its Marketing; Supply chain management;
LCD; Sony Corp.; Gizmos; Sense and virtual gorilla strategy on a longer run? Competitors; Market share.
Simplicity.
Pedagogical Objectives
• To understand how a small player can Piggly Wiggly Carolina’s tryst
Motorola – Fighting to Win compete with the market leader with ‘Pay By Touch’
Motorola has seen a slide in fortunes since • To discuss how technology plays a vital The case deals with the deployment of
the mid-1990s. A pioneer of various role in company’s growth. biometric payments in Piggly Wiggly
wireless technologies, it has missed the
Industry Microprocessor
Carolina Company (PW), an American
shift from analog to digital cell phones,
Reference No. INM0071B
supermarket chain. This largest employee-
losing its market leadership to Nokia.
Year of Pub. 2006
owned, privately held retail company in
Edward Zander (Zander), the man hired to
Teaching Note Not Available
South Carolina is leading the movement
turn Motorola around, decides to focus on
Struc.Assig. Not Available
towards a new way of shopping with its
innovation and revamps Motorola’s the
Pay By Touch scheme. The pilot phase,
strategy for new products with greater
keywords covering four stores, ends successfully,
emphasis on design. The success of Razr, a
satisfying both the convenience-minded
new sleek phone launched by the company, AMD; INTEL; Microprocessor industry;
customers and cost-conscious
has a very positive impact on both Strategic; Partnership; Innovation; management. The scheme helps in faster
Motorola’s image and employee morale. Leadership; Virtual Gorilla strategy; check-outs, more payment options and
Zander realizes that heavy dependence on Secondary source of intel; Technological highly secure transactions. But will the
one phone is risky and looks for ways to leadership; Low price. company-wide roll out of the scheme
systematically develop new products.
covering 120 stores be successful? With
Zander has also streamlined operations and
questions being raised by human rights
restructured the organisation. The case
discusses Zander’s turnaround strategy and
Motorola: Differentiation through activists on potential abuses in future the
efforts to increase Motorola’s market share. Designing situation demands sensitive handling of
customer relations by the company. The
The case focuses on Motorola’s use of design case can be used to discuss the potential
Pedagogical Objectives as a tool for differentiation. Motorola, the impact of biometric payments on both the
2nd largest cellphone manufacturer, under retailer and its customers and lessons learnt
• The case discusses Zander’s turnaround
the leadership of Edward Zander, has used by a first mover in implementing a
strategy and efforts to increase
designing to stop the decline in its market relatively new technology.
Motorola’s market share
share and reclaim the number two position
• The case also emphasises on Zander’s from Samsung. The case talks about Moto Pedagogical Objectives
product line strategy and promotion Razr, the thinnest cell phone ever created.
strategy for Motorola. Along with the design innovations for the • To understand how biometric payment
Razr, the case talks about the evolution of was deployed in Piggly Wiggly
Industry Mobile Phone design as a strategy at Motorola and the
Reference No. INM0072P basis of the future generation of cell phone • To discuss the impact of the payment
Year of Pub. 2006 such as the Pebl, the Slvr and the Rokr. The system.
Teaching Note Not Available case study also showcases the importance Industry Retail
Struc.Assig. Not Available of marketing and supply chain Reference No. INM0069B
keywords management and the integration of the Year of Pub. 2005
various functions to make the Razr the most Teaching Note Not Available
Motorola; Wireless; Turnaround strategy; successful product in the Motorola portfolio Struc.Assig. Not Available
Moto; Zander; Pebl; Razr; Mobile phones; after StarTac. The case ends with a
Nokia; 3G; Management; Product profile; discussion of the competitors’ strategy and keywords
Mobile phone design; Promotion; Rokr. the challenges that Motorola might Supermarket; Electronic payment; Cost
encounter in the future. cutting; Self service; Payby touch;
Biometric payments; Promotions;
AMD’s “Virtual Gorilla” Strategy Pedagogical Objectives Convenience minded customers
Since its origin in 1969, AMD had evolved • To understand about Moto Razr in
from a second source player, to an upcoming Motorola

12
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Knight Transportation Internet. Despite Napster being forced to Playstation; LCD screen; Innovation;

I N N O V A A T I O N
Incorporated in 2004 shut down, other services like ‘Gnutella’ Marketing.
and ‘Kazaa’ took over the P2P domain.
Knight Transportation Inc. (KTI), a US- Despite the negative image associated with
based trucking company has figured in the P2P, the early 2000s saw a horde of
Forbes list of ‘200 Best Small Companies
Sharp Corporation: Sustaining
developments that aimed at using P2P
in the US’ for ten years in a row (1995- technologies to develop applications Leadership through the Aquos
2004). In an industry whose fortunes are which had the power to change the nature LCD TV
dictated by the growth of the economy, of businesses in the New Economy. Since the launch of its Aquos brand in
KTI has emerged as the market leader in
2001, Sharp had maintained its leadership
the short-to-medium haul category. Under Pedagogical Objectives position in the Liquid Crystal Display
the leadership of Kevin P. Knight, KTI is
(LCD) TV market. The company’s
following a business model characterised • To discuss about the birth and growth of
leadership was a result of early investment
by high asset utilisation and a disciplined P2P technologies
in the LCD technology and manufacturing
operating system. The effective use of low
• To highlight the latest developments in processes, development of the Aquos brand
emission engines, intelligent vehicle
enterprise-based P2P applications and concerted efforts in the sales and
technologies and Pre-Pass scheme has
marketing and constant introduction of
provided definite cost advantages to KTI. • To debate on P2P’s potential to new models. However, with the demand
By adopting better pay packages for its influence businesses across the world. for the LCD TVs estimated to reach 50
drivers, KTI is performing better than
Industry Information Technology million units worth $47 billion in 2007,
industry standards in the area of driver
Reference No. INM0067B competition was getting intense.
retention. But of late KTI is planning to
Year of Pub. 2005 Companies like Sony and Samsung were
enter unfamiliar terrains in the northeast
Teaching Note Not Available setting up new manufacturing facilities
dominated by a competitor. The case is
Struc.Assig. Not Available along with launching new brands while
designed to help students to analyse the
second tier manufacturers were under
steps taken by KTI to maintain low keywords cutting prices. As a result, Sharp’s market
operating expenses, to evaluate the
P2P technology; Sharing files; Client share had declined from 50% in 2003 to
importance of integrating technology into
35% in 2005. The challenge for Sharp was
its operations to remain profitable, and to server; Napster model; Network; Gnutella
to sustain its leadership position and
examine whether a change is needed in its model; Fasttrack network; Decentralised
maintain its operating margins with
business model when facing heads on approach; Media channels; Media
increasing competition in the LCD TV
competition with an established player. promotions.
market.
The case can be used as part of the
operations management curriculum for
Pedagogical Objectives
MBA students. Playstation Portable: The
Walkman of the 21st Century • The strategy of the company to make
Pedagogical Objectives LCD its core technology; its pros and
This case describes Sony Corporation’s cons
• To understand about the tracking (Sony) entry into the handheld gaming
industry in the US market in 2004 with the launch of the • The steps taken for the development of
Playstation Portable (PSP). It discusses in the Aquos brand
• To understand how knight’s operating
model worked depth the strategy used by Sony to gain • The future plan of action adopted by
market share from its chief rival Nintendo the company
• To discuss how knight used technology which had dominated the handheld market
in its path towards excellence. with its GameBoy series since 1998. The • Steps taken by Sharp to address its
case also talks about Sony’s attempt to competitors.
Industry Trucking
create an all-in-one entertainment device,
Reference No. INM0068B Industry Television
with the PSP capable of playing games,
Year of Pub. 2005 Reference No. INM0065B
music and movies to compete against
Teaching Note Not Available Year of Pub. 2005
convergence devices like the Apple’s iPod
Struc.Assig. Not Available Teaching Note Not Available
music player. The case ends with the
Struc.Assig. Not Available
keywords challenges that Sony might face in
attracting non-gamers to a gaming device. keywords
transportation; Trucking industry; ICC
regulations; Competition; Shipment Sharp Corporation; Tokuji Hayakawa;
Pedagogical Objectives
payments; Operating model; Cost control; Aquos; LCD TV; CRT TV; PDP TV; Japan
Freight volume; Truckload freights. • To discuss about the gaming industry in China; Sony; Samsung; LG; Philips; Fujitsu;
Japan Matsushita; Hitachi.
• To understand the strategies adopted by
Peer-to-Peer (P2P): Yesterday, Sony.
Today and Tomorrow From Community of Practice to
Industry Electronic Industry On-Demand Workplace: IBM’s
The latter part of the 1990s saw the Reference No. INM0066B
development of P2P technology with the
Journey in Knowledge
Year of Pub. 2005
launch of ‘Napster’. The main aim behind Teaching Note Not Available
Management
creating the Napster software was to enable Struc.Assig. Not Available In 2004, IBM was the world’s largest
users or peers on a network to swap music information technology and Services
files. Although Napster became a worldwide keywords
Company with revenue of 96 billion
phenomenon within a year of its launch, it multiplayer gaming; Memory stick; dollars. IBM Global services, largest unit
was also held responsible for the gaming; Handheld gaming machine; of IBM had played a very active role in
proliferation of music piracy on the

13
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starting the knowledge management the entire On-Demand initiative into Pixar Animation Studio: The
initiative (Annexure I) within the uncertainty. Success Story
organisation to capture the valuable
experiences and insights of employees. Pedagogical Objectives Pixar was one the leading digital animation
IBM Global Services had implemented a studio in the US. As of January 3rd 2004,
knowledge management initiative called • To discuss the concept of On-Demand Pixar had created and produced five
community of practice to enhance computing animated feature films, Toy Story, A Bug’s
communication and collaboration among Life, Toy Story 2, Monsters, Inc. and
• To understand the problems that needs
employees. Finding Nemo, which were marketed and
to be resolved before accepting On-
distributed by The Walt Disney Company
The success of community of practice in Demand
. All of these were blockbusters which
IBM Global Services prompted IBM to offer • To elucidate how IBM uses On-Demand grossed a total of $1.2 billion, with an
it as a solution to its clients. The acceptance model. average of around $200 million per film.
of this solution in the market encouraged With the success of all the films in a row,
Lou Gerstner, the then CEO of IBM, to Industry Information Technology Pixar had built up a brand image for itself.
invest in further research in the area of Services The case discusses about various factors
knowledge management. Gerstner felt that Reference No. INM0063B behind the success of Pixar studio. The
IBM should become more proactive in Year of Pub. 2005 case further highlights on the business
knowledge management activities and Teaching Note Not Available model of Pixar and its unique work
develop knowledge management systems Struc.Assig. Not Available environment and culture.
and related products. With that objective in
mind, IBM developed a knowledge keywords
Pedagogical Objectives
management system known as Lotus IBM; Big Blue; On-Demanding Computing;
Discovery System which was successfully IBM Global Services; Grid Computing; • The state of the digital animation
implemented in IBM and was offered as a PWC consulting; Computing on tap; E- industry in the US
product in 2001. But due to problems like business On-Demand; Open standards;
incompatibility and pricing, it was withdrawn • Pixar strategy of blend between the
Resource sharing; JP Morgan Chase;
from the market in 2004. technical and the creative process
Hewlett-Packard; Sun Microsystems; Sam
Palmisano; Web services. • Pixar ’s dependence on the senior
Pedagogical Objective management personnel
• To discuss about knowledge management • Pixar’s lack of diversification from the
in IBM. New Balance: Striking Balance core business.
with Comfort
Industry Information Technology Industry Digital Animation
Services In 2004, New Balance Athletic Shoe Inc. Reference No. INM0061B
Reference No. INM0064B was the third largest athletic shoe Year of Pub. 2005
Year of Pub. 2005 manufacturer in the US. With its unique Teaching Note Not Available
Teaching Note Not Available set of philosophies that included an Struc.Assig. Not Available
Struc.Assig. Not Available ‘endorsed by no one’ stand, retention of
25% manufacturing in the US, and a middle- keywords
keywords aged customer segment as its primary target Digital animation industry in the US; Pixar
IBM; Knowledge management; customers, the company was the only Animation Studio; Walt Disney; Dream
Community of practice; IBM Global company to grow during the stagnated shoe Works; Ed Catmull; Steve Jobs; Apple
Services; Lotus Discovery System; industry in the mid 1990s. Despite huge computers; John Lasseter; Animation
Knowledge Portals; Knowaledge advertising expenses and celebrity process; Renderman; Block buster movies;
management system; Enterprise endorsements from the major players such Business model; Creative process; Story
Information portal; On-Demand as NIKE, Reebok and Adidas, the company line; Lucasfilms.
workplace; Tacit Knowledge; Explict grew and gained market share in the highly
knowledge evolution of community competitive athletic shoe industry. This
practice; Externalisation; Intellectual case discusses the survival and growth
strategies adopted by New Balance. Carbon Nanotechnologies
capital management; Socialisation.
Incorporated-Gearing up for the
Pedagogical Objectives Nanomarket
IBM: On-Demand Losing • New Balance’s growth strategies Carbon Nanotechnologies Incorporated
Demand? (CNI) is a Texas based nanotechnology
• State of the US Athletic Shoe Industry company, whose journey begins in 2000,
When Sam Palmisano took over the reins as a spin-off from Rice University. By
at IBM in late 2002, he laid out a grand • Future outlook of New Balance.
2005, with the support of a broad
vision for the company. He termed his Industry Sports Shoe Intellectual Property (IP) portfolio in the
vision ‘E-business On-Demand’ and placed Reference No. INM0062B areas of production processes, enabling and
a gamble on the concept of providing Year of Pub. 2005 end-use technologies, CNI has emerged as
computing power and services on-demand, Teaching Note Not Available the world’s leading producer of nanotubes.
like electricity, where the user paid for Struc.Assig. Not Available The case study traces the growth of CNI
services used. Although On-Demand was from a startup to its emergence as a leading
publicised as the best thing to happen after keywords supplier of nanotubes. CNI has formed
the Internet, the concept itself was inlaid New balance; US Athletic Shoe Industry; strategic alliances with companies like
with a few major flaws that needed to be Athletic Shoes; Jim Davis; Nike; Reebok; Sumitomo, 3P, Entegris, etc., to reach a
ironed out before the idea took root in the Adidas; New Balance Suspension System wider market. It is also focusing on
market. The early 2000s saw IBM lose Jim Tompkins; Width-sizing; Celebrity consolidating its own intellectual property
major contracts with its customers plunging endorsements. portfolio by way of patent protection and

14
www.ibscdc.org
licensing its technical know-how to be restricted to patients who did not • The role played by the other tire

I N N O V A A T I O N
potential buyers. While future seemed respond to any other existing drugs manufacturers in making PAX
bright, questions were still being asked on available for MS. innovation a worldwide product
how the company would shape up in the
• Michelin’s strategy of emphasising on
emerging nanotech industry. Pedagogical Objectives
product innovation
• To discuss the perils of accelerated drug
Pedagogical Objectives • The success of the PAX system in
approvals
comparison to successful radial tires
• Potential benefits of consolidating a
• How Biogen would re-launch Tysabri in
broad Intellectual Property portfolio for • Will PAX have an edge over the radial,
the market, and what would be the
a nanotech start-up company like CNI since PAX has been accepted in the US
market reaction
market at an early stage of its innovation?
• Market entry strategies of CNI
• How Biogen would face the patent
Industry Tire Industry
• Market positioning strategies of CNI expiry of its block buster drug, Avonex.
Reference No. INM0058B
• Strategies to develop end-use market for Industry Bio-pharmaceutical Year of Pub. 2005
a relatively new technology. Reference No. INM0059B Teaching Note Not Available
Year of Pub. 2005 Struc.Assig. Not Available
Industry Nanotechnology Teaching Note Not Available
Reference No. INM0060B keywords
Struc.Assig. Not Available
Year of Pub. 2005
Michelin Group; PAX system; Radial tires;
Teaching Note Not Available keywords
Product innovation; Tire manufacturers;
Struc.Assig. Not Available
Tysabri; Biogen IDEC; FDA; Bio- Self supporting tires; Original equipment;
keywords pharmaceutical industry; Accelerated Market Delayed Entry; Global Tire
approval; Block buster drug; Side effects Industry; Channels of distribution Run-flat
Carbon Nanotechnologies Incorporated of drug; Drug withdrawl; Avonex; MS technology; Flat tires; Goodyear; Pirelli.
(CNI); Nanotechnology; Nanomaterials; patients; Clinical trials; PML; Multiple
Carbon nanotubes; Start-up companies; Age sclerosis; Alternative multiple Clinical
funding; Richard Smalley; Bob Gower;
Business Strategy; Intellectual Property
trials; PML; Multiple sclerosis; Alternative Microsoft in Blog World
multiple sclerosis drugs.
Portfolio; Patents; Strategic alliances; B2B; The case talks about the phenomenon of
Market entry strategies; End-use markets. blogging which appeared on the Internet in
the 1990s. Soon they caught the attention
Michelin: Managing PAX
of regular Internet users, leading to the
Innovation
Biogen IDEC: Troubles with sudden spurt in the number. In 1998, there
Tysabri In 2003, Michelin Group was the number were about 30,000 blogs. In 1999, the
one original equipment (OE) tire introduction of Blogger, a free blogging tool
In 2003, Biogen IDEC was formed by the manufacturer in the world with a market by Pyra Labs led to the sharp rise in growth
merger of Biogen NV and IDEC share of 19.2%. The group which pioneered of blogs. Big players like Google and Yahoo
Pharmaceuticals Corporation (IDEC). It the radial tire came out with a new concept entered the market with the release of free
became the world’s third largest bio- of PAX system in 1998. PAX system was blogging tools. Microsoft though a late
pharmaceutical company after the merger. based on the run-flat technology, wherein entrant had undertaken many initiatives to
In 2003, IDEC merged with Biogen to form the vehicle could move smoothly even if capture the mass market through the release
Biogen IDEC. Biogen IDEC had a revised the tire was flat. It could run up to 125 of innovative blogging tools and ideas. It
product line, resulting from the synergies miles at a constant speed of 50mph. had also incorporated RSS technology in its
of both the companies. (Exhibit-1I). In Michelin commercially launched the PAX products to be released soon. Analysts were
2004, Biogen IDEC submitted for FDA system in Europe in 2002. It was first made however keeping their fingers crossed over
approval, a new drug, Tysabri, which was available in the limited series of the Renault the reaction of hard-core bloggers to these
to be used for the treatment of multiple Scenic minivans. But as the sales of PAX initiatives.
sclerosis. By mid February 2005, Biogen equipped vehicles fell short of expectations
IDEC ran into trouble, when two of the Renault decided to discontinue using the Pedagogical Objectives
patients, who were part of the clinical trials PAX system. Having failed in the European
of Tysabri, developed a very rare brain • To discuss about the evolution of blog
market, Michelin was keen to extend its
disease, Progressive Multifocal innovation in the US market. Honda Motor • To discuss about the initiatives of
Leukoencephalopathy (PML). Despite all Company first adopted the PAX system Microsoft in blogs.
the roadblocks, Biogen IDEC had high on its Odyssey model. The case discusses
hopes of getting Tysabri back into the the structure of the tire industry and the • To understand the concept of RSS
market by 2005 end. Biogen IDEC faced scope of the OE and Replacement technology.
the risk of patent expiry, by 2011, for its
Equipment market. Product innovations Industry Blogs/Internet
blockbuster drug, Avonex. In April 2005,
in the tire industry and the delayed entry Reference No. INM0057B
Biogen IDEC released a two year clinical
of radial tires in the US market are also Year of Pub. 2005
study report on Tysabri, which reaffirmed
discussed. The case then talks about Teaching Note Not Available
the positive effects of the previously
Michelin’s product innovation and the Struc.Assig. Not Available
reported one year data of clinical trials.
various dimensions of the PAX system.
Biogen IDEC planned to continue the
keywords
safety probe till 2005 end. Based on those
reports, the company planned to submit a Pedagogical Objectives Microsoft; Blogging; Bill Gates;
request to FDA about resumption of Tysabri • The state of the tire industry and the Community; Networking; Web Log; MSN
sales. But industry experts believed that if Spaces William Gates; Blogsphere; Blog
acceptance of innovations in the
Tysabri came back, its prescriptions could word; Bloggers; Online Journal; Online
industry
Communities.

15
www.ibscdc.org
MphasiS: Grappling with New the device’s addictive nature and the Protocols; LEMONADE; WAP; Short
Challenges emergence of products that supported a Messaging Services; Handled devices;
variety of platforms posed a challenge to Wireless communication; Mobile
MphasiS BFL Ltd, a mid-tier ITES-BPO Blackberry’s dominance in the mobile messaging systems; PDA; Non-voice
player with twin head offices, one in email market. mobile services; Smart phones.
Bangalore and another in New York, is a
pioneer in launching an integrated business Pedagogical Objectives
model offering both IT and BPO services
in 2001. Its initiatives to bag repeated • To discuss about the market driven Skype: Leading the VoIP
business from clients by offering smarter, business model of RIM Revolution?
cheaper software for a process undertaken In 2004, the global market for Voice over
• To highlight the problems of having a
by them has helped in building a strong set Internet Protocol (VoIP) had reached
proprietary system in a market
of customers. But by mid-2005, the around $82 billion. There were around
increasingly dominated by open
company seems to have entered a rough 1,100 VoIP providers in the US. Skype
standards and solutions.
patch. The financial fraud involving its technologies was one such privately held
BPO employees has raised serious concerns Industry Computer Networking Global Internet Telephone company which
about data security of clients. Barings, a Equipment offered VoIP services. Skype revolutionised
key investor with 35.6% of shares also has Reference No. INM0055B the VoIP market by offering free internet
plans to exit the company by December Year of Pub. 2005 telephony to the customers. Backed by the
2005. The case talks about the initiatives Teaching Note Not Available success of its music file sharing system
taken by Jerry Rao, the chairman and CEO Struc.Assig. Not Available Kazaa, Skype offered its services based on
of MphasiS to tide over the problems. With the P2P technology which eliminated the
the backlash against outsourcing in the US, keywords
middlemen and the benefits thereof was
steps were taken to lessen client Wireless email; Mobile email; Blackberry; passed on to the customers. Since its
concentration and geographic risk by Research in Motion; RIM; Good launch, Skype’s software had been
entering into Far East markets and focusing technology; Vodafone; Visto; Handled downloaded nearly 145 million times, and
more on domestic businesses. But with the devices; Wireless communication; Mobile around 35 million registered users were
entry of global tech MNCs into the ITES- messaging systems; Non-voice mobile using Skype’s services as of March 2005.
BPO sector the competition is proving services; SEVEN. The case discuss on the business model of
tougher. Skype and the technology behind it. The
case further highlights on the challenges
Pedagogical Objectives faced by the company.
Mobile Email – The Latest in
• To understand about the business model Messaging Mania
in MphasiS Pedagogical Objectives
The evolution of wireless communication
• To discuss the effects of the steps taken technology has revolutionised the way in • To understand the Business model of
by the CEO. which people communicate. By the late Skye
1990s, email and devices like cell phones • To discuss the implications of the P2P
Industry ITES – BPO
and pagers had become an indispensable technology
Reference No. INM0056B
part of daily life. In order to combine the
Year of Pub. 2005 • To discuss the long-term implications
efficiencies of paging and email, the idea
Teaching Note Not Available of the revenue model of Skype.
of mobile messaging was conceptualised.
Struc.Assig. Not Available
But problems like the lack of open Industry Internet Telephone
keywords standards and the question of Reference No. INM0053B
interoperability between various devices Year of Pub. 2005
ITES – BPO industry; MphasiS; Jerry Rao; stood in the path of growth of the
Barings India Investment Limited; Mergers Teaching Note Not Available
technology. Struc.Assig. Not Available
and Acquisitions; Off-shore billing rates;
Niche positioning; Expansion plans of keywords
Pedagogical Objectives
global tech MNCs; Integrated business
model; Global platform-based company; • To discuss about the evolution of mobile Product Launch; Disruptive Technology;
Transaction-based pricing model; messaging and looks at the practical Skype; VoIP; InternetTechnology; KaZaa;
Divestiture move by investors; NASSCOM; hurdles that the technology has to Business Model; Niklas Zennstorm;
Informatiion security; Customer overcome Vonage; World of mouth; Napster; VoIP
Satisfaction. Providers in the US; Free calls.
• To analyse the reasons behind
technological developments

Blackberry: Wired for Growth • To discuss the potential problems that a Innovation at Wyeth: ‘Managing’
technology has to overcome before Scientific Productivity
Wireless communication technology grew becoming commercially viable for wide-
rapidly during the 1990s. Towards the end spread use. The late 1990s marked the beginning of
of the decade, a need was felt to develop a tumultuous years for the global
technology that combined the benefits of Industry Mobile Messaging pharmaceutical industry. Companies were
cellular phones and email. Canadian Reference No. INM0054B plagued by problems such as declining R&D
company ‘Research in Motion’ developed Year of Pub. 2005 productivity, rising costs of
the ‘Blackberry’ handheld device to cater Teaching Note Not Available commercialisation and shortening
to the increasing demand for mobile email Struc.Assig. Not Available exclusivity periods. Wyeth, one of the
applications. The innovative combination world’s largest research-driven
keywords
of voice and email services on a single pharmaceutical and healthcare products
device contributed to the massive Mobile messaging; Wireless email; Mobile companies, was also faced with the same
popularity of Blackberry. But criticism on email; Blackberry; Open standards; LEAP
16
www.ibscdc.org
problem – rising R&D expenses but Analysts felt that it was too early to more than 1,200 companies exhibited their

I N N O V A A T I O N
lowering R&D productivity levels. conceive a burgeoning market for space products.
tourism. It was important to understand
Robert Ruffolo, who joined Wyeth as the size of the future space market, the Herman Miller believed that their product
executive vice president, Pharmaceutical growth potential of the market and was a new reference point for progressive,
Research and Development, in November customer characteristics of the market. productive workplaces, designed
2000, attributed Wyeth’s problem to specifically to attract and support
inefficient handling of its R&D (drug Analysts had conflicting opinion on the knowledge workers. The competition had
discovery) product pipeline. Using lessons success of space tourism. Some opined that proved that My Studio was a successful
drawn from non-pharma manufacturing a successful venture and new market were innovation. Yet, the commercial success
industries, Ruffolo reorganised the entire at the threshold. In the years to come, of the product remained to be seen. Also,
R&D’s drug discovery function, internally mankind would take yet another gigantic the bigger question was, could products like
referred to as, “The New Way of Working”, step by commercialising the space arena. ‘My studio’ be helpful in countering the
with a view to instill discipline and to bring They saw a potential impact of public space expected shortages of knowledge workers?
about efficiency in the existing system. travel on the aerospace industry, the
Wyeth pledged to deliver an unprecedented tourism and hospitality industries, and in Pedagogical Objective
two New Molecular Entities (NMEs) every the countries where public space travel
year beginning from 2006 and for many organisations would be located. They • To understand the role of ergonomics in
years thereafter. How successful was further envisioned that by the end of the retaining and attracting employees.
Ruffolo’s action? Would Wyeth be able to century, there would be thousands of Industry Office Furniture
deliver its promise? common people who would witness the Reference No. INM0050B
charm of seeing the earth from the space Year of Pub. 2006
Pedagogical Objectives and explored the enigmatic space beyond. Teaching Note Not Available
On the other hand, some other analysts Struc.Assig. Not Available
• To help develop ‘out of the box’
thinking opined that space tourism would fall flat keywords
after the initial zeal and innovative efforts
• To understand the process of looking at on grounds of extreme high cost and Herman Miller; Office; Furniture; My
the ‘business angle’ in areas like science sustainability of the industry. They thought studio; Environment; Work place;
and medicine that unlike aeroplane, which remained an Knowledge; Workers; NeoCon awards;
• To understand HR issues better. indispensable means of transport even after Behaviour; Organisation; Work station;
accidents, the spaceplane would suffer serious Cubicle; Cubicle-variant; Doudlas Ball;
Industry Pharmaceutical jolts and cause ruination of the industry if Psychology; Employees.
Reference No. INM0052B some accidents occurred in the future.
Year of Pub. 2006
The coming years would only tell whether
Teaching Note Available
a market beyond the blue sky existed or Connect and Develop model in
Struc.Assig. Not Available
not. P&G
keywords
This is a narrative case about ‘Connect and
Innovation; R&D; Pharmaceutical Pedagogical Objective Develop’ model in P&G. Till the 1990s,
industry; Robert Ruffolo; Wyeth; Bonus; • To understand the advancements in space most of the companies used ‘closed
Drugs; Incentive; Productivity; US; tourism. innovation’ models to leverage their
Discovery pipeline; Scientist; Scorecard; businesses. But in 2000, as companies using
Performance. Industry Space ‘closed innovation’ model witnessed decline
Reference No. INM0051B in their sales, they adopted a new model
Year of Pub. 2006 called ‘open innovation’. P&G, which
Teaching Note Available witnessed failure in its business in 2001,
Space Tourism: The Sky is Not the Struc.Assig. Not Available introduced an ‘open innovation’ model,
Limit called the ‘Connect and Develop’ model.
keywords
On April 12th 1961, Yuri Gagarin (Russian With the success of the new model, a few
Astronaut) travelled to space and etched Space Tourism; Dennis Tito; Space market; analysts wondered whether it would become
out his name in the annals of history books Subtorial Space Travel; Orbital Space a universal model for companies, which were
forever. For the next forty years space Travel; Price factor; Revenue forecast; struggling to control their businesses.
travel was only confined to astronauts. In Commercial space venture; Virgin Galactic;
April 2001, American businessman, Dennis space challenges. Pedagogical Objectives
Tito became the first civilian traveller to
pay $20 million for a trip to space. In • To understand what is Connect and
Develop model
April 2002, South African entrepreneur, Herman Miller: Designing
Mark Shuttleworth, became the second Furniture for Office Comfort • To discuss how C & D model can be used
commercial space tourist. in leveraging business.
Herman Miller Inc., the second biggest
These events initiated the discussions on office furniture company in the US, Industry Retail
space tourism and opened the doors for launched a new product, a cubicle-variant Reference No. INM0049B
further flights by customers. These trips of office furniture system called ‘My Studio Year of Pub. 2006
marked the beginning of what could be a Environment’ at the NeoCon World Trade Teaching Note Not Available
lucrative 21st century industry. There were Fair in June 2006. The cubical-variant, Struc.Assig. Not Available
already several space tourism companies designed by Douglas Ball, went on to win
planning to build suborbital vehicles and keywords
the coveted NeoCon 2006 Best of
orbital destinations within the next two Competition award and the Gold Award in Procter & Gamble; Connect and develop;
decades. These companies had invested the Furniture Systems Category, in the Research and Development; Closed
millions, believing that the space tourism 17th annual NeoCon Awards function where Innovation; Open innovation; Networks;
industry was on the verge of taking off.
17
www.ibscdc.org
Nine Sigma; Dell; Xerox; IBM; Cisco; Method’s Innovation: A Cutting keywords
Innovations; P&G products; Yet 2.com; Edge? Method; Dish soap; All purpose cleaners;
Technology.
Home-cleaning products were one of the entreprenuership; Products; Designing;
most sluggish, lack-luster categories in the Merchandising; Home cleaners; Branding;
US market. Industry giants like Procter USA.
Acer: Will its LCD TV venture be and Gamble (P&G), the Clorox Co.,
successful? Colgate-Palmolive (CP), and SC Johnson
In 2005, Taiwan’s Acer, was the world’s had massive infrastructure, thousands of Canon: Betting on SED
No.4 branded PC vendor with a market employees, and billions of dollars in sales. Technology
share of 4.4%. In the same year the However, their products looked very
revenues of the company reached to similar to each other and had not changed Canon is one of the leading names in the
US$9.7 billion. Acer’s product portfolio much from how they looked 50 years ago. business of printers, copiers and cameras.
included notebook and desktop PCs, Liquid With the advent of Method in the market, In 2006, Fujio Mitarai, the CEO of Canon
Crystal Display (LCD) TVs, projectors, the scenario changed. A company with just invested billions on a new technology called
servers, cameras and handhelds. 45 people dared to challenge giants like Surface-conduction Electron-emitter
P&G which had 140,000 employees world Display (SED), developed jointly with
Acer executives predicted that their wide. The company went on to become Toshiba Corporation. It was expected that
desktop computer sales would gain strength one of the fastest-growing household this new technology would enable Canon
and that the company would soon surpass products companies in the US in 2005 with to muscle into the flat-screen TV market.
China’s Lenovo, which was No.3 in the revenue of about $35 million and it was It was believed that this technology would
global PC sector. To bolster earnings, Acer the pioneer in making mundane home- yield images of superior quality; compared
sold the stakes which it had in Taiwan cleaning products into catchy items. to Liquid Crystal Displays (LCD) or plasma
Semiconductor Manufacturing company screens, while consuming much less power.
(TSMC) and other companies. The The company believed that “your home is With this technology Canon was making
company did this because it was facing two a reflection of who you are and how you attempts to enter into the flat TV market
very significant competitive challenges by want to live, and we know that you want to by 2007. However, many big players like
Dell and Hewlett-Packard. These two live clean”. Created by two San Francisco Panasonic kept away from this new
American giants were putting lots of young entrepreneurs, the Method team tried technology because of high costs. Industry
pressure on the Taiwanese company by to transfer the household cleaner from an analysts felt that Canon’s success in SED
lowering their prices. Dell was cutting prices object that remained under the sink to a TV would be possible only if the price gap
so much that Acer’s price advantage was must-have counter-top accessory. The was closed between SED technology and
disappearing. products’ innovative packaging design took other technologies like LCD and PDP.
cleaning to a whole new level functionally,
As a result Acer decided to focus on LCD aesthetically and environmentally. In the
TVs to reduce its reliance on notebook PC Pedagogical Objectives
category of “have to buy” commodities,
sales and other computer peripherals. LCD Method made the consumers “want to buy” • To understand the role of SED
was another business area of Acer. It was dishwashing soap. The entire organisation technology in gaining a strong foothold
believed that moving into TVs represented was based on speed and innovation and the in the flat-TV market
a major about-face for the company. By organisation culture was fueled by passion,
2008, the company was expecting revenues a ‘can-do’ entrepreneurial spirit, challenging • To understand the digital display
from LCD TVs to surpass $1billion. conventional thinking and a great group of technology market
witty and talented individuals. • To understand the role of Fujio Mitarai
Would Acer’s diversification into LCD TVs
guarantee retention of its market position? FMCG analysts said that Method did in enhancing the brand value of Canon.
everything differently. Analysts were Industry Consumer Electronics/
Pedagogical Objectives allured by the start-up company’s Television
innovative strategies and they questioned Reference No. INM0046B
• To understand the evolution of Acer whether Method would be able to entice Year of Pub. 2006
company the American consumer away from the Teaching Note Available
• To understand Acer’s entry and focus in giants of the household products industry. Struc.Assig. Not Available
the LCD TV market and reducing its Would Method’s product innovation
reliance on notebook PC sales and other guarantee long-term success and keywords
computer peripherals sustainability in the market?
Canon; SED; Flat panel; Toshiba; LCD;
Telivision; Fujio Mitarai; PDP; Plasma;
• To understand Acer’s Australian market. Pedagogical Objectives Display; CRT; Digital display; Image;
Industry Electronics • To understand the roles of Eric Ryan Fidelity; Technology; High-definition;
Reference No. INM0048B and Adam Lowry in constructing the Digital Television.
Year of Pub. 2005 Method firm
Teaching Note Not Available
Struc.Assig. Not Available • To discuss Method’s innovation
strategies as a start-up company in the Communispace Corp.: Using
keywords home-cleaning products industry Web for New Product
LCD; PDP; Micro-professor; Micro-
Development and Creating
• To understand the role of Karim Rashid Customer Bonds
processor; Form factor; Heuristic Thermal in designing dish soap bottles.
power; Management system; Palm Founded in 1999, Communispace Corp.
operating system; Response time; Contrast Industry FMCG
creates private online communities to
ratio; Resolution; integrated circuit; Reference No. INM0047B
generate market insights for its clients like
displays; X computer concept; ‘Hongya’. Year of Pub. 2006
Unilever, Reebok, Whirlpool, Kraft,
Teaching Note Not Available
Johnson & Johnson, etc. It designs
Struc.Assig. Not Available

18
www.ibscdc.org
communities based on the research needs • To debate whether it was an advantage Music Piracy and iTunes

I N N O V A A T I O N
of its clients, recruits respondents and for Toyota or was it a commercial risk.
provides analysis of the surveys conducted. In mid-2004, the launch of the first non-
Industry Global Automobile Industry governmental, manned ‘rocket-powered
The insights generated help the corporate
Reference No. INM0044A sub-orbital vehicle’ called SpaceShipOne
to identify customer preferences and new
Year of Pub. 2005 ushered in the new era of space travel.
business opportunities that help in
Teaching Note Not Available Richard Branson’s Virgin Group, a British
increasing customer loyalty and market
Struc.Assig. Not Available business conglomerate entered into a
penetration.
licensing deal with Mojave Aerospace
keywords
Ventures, which owned the technology of
Pedagogical Objectives
Business strategy; Innovations; Product the spacecraft. With this technological
• To analyse the business model of Launch; Product life cycle; First mover assistance, Branson’s ‘Virgin Galactic’
Communispace Corp. Advantage; Product life cycle. company aims to become the world’s first
commercial space tourism operator.
• To understand how consumer research Branson plans the commercial launch of
through online communities help in his sub-orbital space vehicles by 2007. The
generating ideas for new products and Promoting Water Management
company has further plans for orbital space
services in India travel, space hotels and eventually carrying
• To highlight the benefits that businesses Chennai – a metro of India had recurring travellers to moon. However, skepticism
accrue from online consumer water shortages. In 2001 after an acute abounds about Virgin Galactic’s plans of
communities in terms of increasing shortage, Shekhar Raghavan, a professor affordable space travel in terms of safety
customer loyalty and business growth. of physics reintroduced Rain Water and cost.
Harvesting (RWH) systems. A citizen’s
Industry Web-based Software and
action group formed, educational Pedagogical Objectives
Services
institutions and corporates participated and
Reference No. INM0045 • To understand the development of
the concept was promoted widely in the
Year of Pub. 2006 online digital music market and its
city. The state government was involved
Teaching Note Not Available influence on music piracy
and RWH became a part of urban planning
Struc.Assig. Not Available
in Chennai. The people’s movement • To discuss the effectiveness and adequacy
keywords became a government’s initiative. A variety of the combative measures adopted by
of promotions including door to door the music industry
Private Online Communitiy; Market campaigns were carried out and technical
Research; Brainstorm; Respondent; Chat assistance was provided for installations. • To debate the role of Apple’s iTunes to
Bulletin Board; Insights; Market The success of RWH brought international usher in an alternate business model to
penetration; Product innovation; recognition to Chennai, and was the result curb digital music piracy.
Positioning; Traditional research; of a workable idea, backed up with Industry Appliance
Customer loyalty. perseverance and community and Reference No. INM0042
government support. Year of Pub. 2005
Teaching Note Available
Toyota: Driving Hybrids into the Pedagogical Objectives Struc.Assig. Available
Mainstream • To discuss the six P’s of social marketing keywords
Toyota Motor Corporation, the world’s and the gradual implementation of RWH
at various levels in the city iTunes; Music piracy; Napster; IFPI
No. 2 car maker in 2004, was the first to
(International Federation of the
launch a hybrid vehicle, ‘Prius’, in 1997 in • To discuss the role and importance of Phonographic Industry) commercial piracy
Japan and in 2000 in the US. The Prius public-private partnerships in increasing report; Music sales; World Intellectual
brought about a revolution in car adoption of resource management Property Organisation; EMI; Sony;
manufacturing, and opened a niche market techniques Universal; BMG; CD-ROM piracy; MP3;
for hybrid vehicles.
Kazaa; Pirated music market; Music piracy
• To debate on the methods of natural
The case talks about the first mover and organised crime.
resource management and innovative
advantage Toyota got by launching Prius. practices in use.
It discusses the initiatives undertaken by
Toyota to bring their environmental Industry Urban Environment 3M’s Innovations: A Rethink on
friendly hybrid car into mainstream. The Available at www.ibscdc.orgwww.ecch.com
the Guiding Principles?
case highlights the growth strategy and Reference No. INM0043A
brand building exercises adopted by Toyota. 705-043-1 Minnesota, Mining and Manufacturing Co.,
Looking at the success of Prius, big car Year of Pub. 2005 known as 3M, is known for its culture that
makers like Ford & Nissan licensed Teaching Note Not Available had spawned ground-breaking research
Toyota’s Hybrid Synergy Drive Struc.Assig. Not Available products. 3M had developed this culture
Technology to produce hybrid vehicles. under the guidance of one of its earliest
keywords
president’s, William McKnight. This
Pedagogical Objectives Social marketing; Change management; innovation-oriented culture had served the
Public-private Partnerships; Policy company well until the 1980s, when sudden
• To discuss Toyota’s first mover change; Social behavioral change; Resource downturn in the economy and other radical
advantage in hybrid cars Management; Rain water harvesting. changes in the business environment
• To analyse the impact of such resulted in the company’s fortunes
environment friendly version of cars and plummmeting. Sensing a deficit of inherent
imitation by the competitors leadership talent in the company, its board
roped in an outsider, James McNerney

19
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(McNerney), who had been previously with Pedagogical Objectives • To highlight the Internet censorship in
GE, for the first time in 3M’s history to China and the methods used by the
rescue it out of its quagmire. McNerney • To understand the need for a culture government to censor online
was initially successful with his policy of change at Whirlpool information
job cuts and other cost-cutting measures • To discuss the need for global companies
like Six Sigma, in boosting 3M’s bottomline, • To debate whether Baidupedia would be
to understand consumer needs and successful in the long run and whether
but his policies had an adverse impact on preferences in each of their markets and
the employee morale. Eventually, he quit Chinese people would accept the
adapt their offerings accordingly authoritative source of information
to lead Boeing Co. 3M next hired another
outsider George Buckley, who was entrusted • To understand the process of culture management.
the task of ensuring active bottomline and change at Whirlpool Industry Internet Content Providers
yet preserve 3M’s unique innovation- • To discuss whether the culture of Reference No. INM0039
oriented culture. innovation at Whirlpool will enable the Year of Pub. 2006
company to sustain its leadership Teaching Note Not Available
Pedagogical Objectives position in the appliance industry Struc.Assig. Not Available

• To discuss the evolution of the unique • To debate Whirlpool’s acquisition of keywords


organisational culture that gave 3M its Maytag and whether it would continue
innovation orientation and helped it to Internet Censorship in China; Free Online
to innovate and launch distinct products. encyclopedia; Wikipedia; Open Content
forge path-breaking inventions
Industry Appliance Business Model; Communist Government
• To discuss how a change in business Reference No. INM0040 in China; Great Firewall of China; Internet
environment can force an organisation Year of Pub. 2006 Usage in China; Self-censoring Online
to bring about a change in its internal Teaching Note Not Available Encyclopedia; Authoritarian View of
culture Struc.Assig. Not Available Information Management; Politically
Sensitive Content; Internet Censorship
• To discuss what possible factors enable keywords Law in China; Freely Accessible Content.
decadence to seep into the culture of an
organisation Corporate culture; Innovation
management; Change management; Supply
• To discuss how restructuring strategies Chain Management (SCM); Barriers to Cirque du Soleil: Creating a Blue
must be designed keeping in view the Innovation; Differentiation; New product Ocean by Balancing Creativity
driving force of various organisations development; Knowledge management and Business
(for example, at 3M – Innovation). system; Brand management; Brand value;
E-learning; Communication systems; Use In a maturing circus industry dominated by
Industry Specialty Chemical
of technology in change management. more than a century old giant players like
Manufacturing
the Ringlings and Barnum & Bailey, Guy
Reference No. INM0041
Laliberté and Daniel Gauthier founded
Year of Pub. 2006
Cirque du Soleil (Circus of the Sun) in 1984.
Teaching Note Not Available China’s Baidupedia: An
Cirque was a new entrant in an industry,
Struc.Assig. Not Available Authoritarian Alternate to which was afflicted with falling revenues
keywords Wikipedia? and profit for a long time. During this time,
Since 1995, Internet usage in China has children, the traditional patrons of the
Innovation; Manufacturing; Organisational circus, were more attracted towards
culture; Business research; Research-assisted continued to expand rapidly as the Chinese
government has managed to promote the television, computers and video games
production; 15% rule; McKnight principles; compared to animal acts, clowns and
Post-it notes; Six Sigma; Management development of the Internet for its
economic benefits while controlling it jugglers featured in a circus. Rather than
strategy; Emerging business opportunities. sticking to the age-old formula for running
through strict censorship. Wikipedia, the
free online encyclopedia was blocked like a circus, Laliberté and Gauthier built their
many others in China, as the government circus along unconventional lines. After
Innovation at Whirlpool: The DNA felt that it featured articles on politically identifying that the three core elements
of Corporate Culture sensitive issues. To fill in the gap, of any circus were the tent, the clowns and
Baidu.com, a domestic Internet company the acrobatic acts, they did away with the
Whirlpool Corporation, the world’s largest expensive animal acts and launched shows
launched Baidupedia, an online
manufacturer and marketer of home based on unique themes, soundtrack,
encyclopedia in Chinese language. Unlike
appliances had a very strong engineering costumes and sets. Cirque’s ‘one of a kind’
Wikipedia, whose members are free to add
and manufacturing culture, with constant shows that resembled theatric and ballet
content without being monitored,
focus on cost and quality. But by the mid- performances, targeted adults rather than
Baidupedia is highly censored and its entries
1990s, its annual sales levelled off. children. After achieving phenomenal
are thoroughly screened before being
Consumers were unable to differentiate success in a matter of two decades, Laliberté
uploaded to the site. Skepticism runs high
Whirlpool’s products. And with falling planned to extend the Cirque du Soleil brand
about the future success of Baidupedia as it
prices of home appliances, Whirlpool to spas, restaurants and resorts.
is opined that Baidupedia ignores the basic
witnessed that its products were being
principle of any online free encyclopedia,
reduced to commodities. Consequently, the Pedagogical Objectives
which is giving freedom to its patrons to
company decided to change its corporate
write and edit content. • To discuss and contrast the traditional
culture. With the vision ‘Innovation comes
from Everyone Everywhere’, Whirlpool business model of the circus industry and
transformed itself from the traditional Pedagogical Objectives the new business model of Cirque du
manufacturing discipline to a customer- • To understand the business model of free, Soleil
focused enterprise providing innovative open-ended, online encyclopedias • To discuss the Blue Ocean strategy in
products to its consumers.
the context of Cirque du Soleil

20
www.ibscdc.org
• To discuss the sustainability of Cirque du Industry Innovation and Technology keywords

I N N O V A A T I O N
Soleil’s unique brand of entertainment Available at www.ibscdc.orgwww.ecch.com
in the light of an increasing number of Reference No. INM0037
AMD (Advanced Micro Devices); Flash
‘copycat’ circus shows 306-453-1
memory chips; EEPROM (Electrically
Year of Pub. 2006
Erasable Programmable Read-only
• To debate Cirque’s proposed Teaching Note Not Available
Memory); Fujitsu AMD Semiconductor
diversification strategies. Struc.Assig. Not Available
Limited; Spansion; NexGen; 3D! Now
technology; MirrorBit; PowerNow
Industry Circus
keywords technology; SDRAM (Synchronous
Reference No. INM0038
Dynamic Random Access Memory);
Year of Pub. 2006 Xerox PARC (Palo Alto Research Center); ‘QuantiSpeed’ architecture; True
Teaching Note Not Available Innovation; Commercialisation failure; performance initiative; China Basic
Struc.Assig. Not Available Commercialisation; Business model; Education Software Company; mySAP
Intellectual property rights; Licensing;
keywords Product development; Technology
CRM (Customer Relationship
Management); Prefetching
Cirque du Soleil; Circus industry; Traditional management; Leadership; Restructuring;
business model; Blue Ocean strategy; Red Sponsored research.
Ocean strategy; Guy Laliberte; Daniel
Gauthier; Ringling Brothers; Barnum & Steve Jobs: The Disruptive
Bailey; Brand management; Cost control AMD: The Customer-centric Innovator
R&D; Talent acquisition; Trade offs Innovation Strategies With the launch of Apple iPods in 2001
strategic fit; Set and costume design;
(100 pieces sold every minute) and the
Mystere Alegria Quidam; Reinventing the Jerry Sanders (Sanders) and seven of his iTunes Music Store in 2003 that has sold
circus. friends founded AMD on May 1 st 1969. one billion songs online since its inception,
Based in Sunnyvale, California, Advanced Steve Jobs has re-defined the rules of the
Micro Devices (AMD) ranks No.2 in the digital music business. Disney’s acquisition
Xerox’s Palo Alto Research design and manufacture of PC of Pixar made Steve Jobs a powerful
microprocessors, flash memory chips and
Center: Getting Inventions to the embedded processors and generated sales
competitor in the global entertainment and
Market revenue of $5,847.6 million in 2005. As
media industry. When chronicled, Job's
business practices right from the
Xerox PARC (Palo Alto Research Center), customers sought higher performance, establishment of Apple Inc. through iTunes
the research division of Xerox was lower cost solutions to help revitalise their music store might qualify him as a
established in 1970 for the development business, AMD transformed itself from a disruptive innovator. Not only has he made
of ‘future technologies’. It pioneered perennial also-ran into a formidable threat each of his companies worth their salt, but
technologies like the Mouse, Personal to the dominance of the industry giant, also reinvented a business practice.
Computer (PC), Graphical User Interface Intel. AMD made advances against Intel
(GUI), Ethernet and Laser Printer. But and gained popularity with the success of
its Athlon and Opteron chips. AMD Pedagogical Objectives
Xerox’s management failed to perceive the
commercial opportunities in most of these employs the path of ‘Customer-centric • To understand the concept of disruptive
innovations. Short-sightedness on part of Innovation’ to deliver innovative solutions innovation and debate whether Steve
the management, communication gap that its customers seek to succeed. Jobs can be characterised as disruptive
between marketing and research divisions, innovator
inappropriate market positioning Pedagogical Objectives
• To discuss the need for companies to
strategies, ineffective business model, poor
• To understand the evolution of AMD manage disruptive innovations
technology management, lack of leadership
into one of the biggest competitors to
and lack of efforts to protect intellectual • To analyse the growth strategies of Apple
industry giant Intel
property and licensing, resulted in PARC’s and Pixar and the innovative business
failure to capitalise on its innovation and • To discuss the strategies to outwit an approaches of Steve Jobs
in turn it affected Xerox financially. As aggressive rival
part of the turnaround of Xerox, PARC • To discuss how disruptive innovations
was spun-off into a wholly-owned • To highlight the importance of create challenges for the incumbent
subsidiary of Xerox. Xerox adopted a customer-centric initiatives in companies and affect an industry as a
sharper strategy for the research center to technology companies whole.
commercialise its latest technologies. • To discuss customer-centric innovative Industry Not applicable
strategies initiated by AMD Reference No. INM0035
Pedagogical Objectives Year of Pub. 2006
• To debate whether customer-centric Teaching Note Not Available
• To understand the prominence of PARC innovative strategies would enable AMD Struc.Assig. Not Available
as a leading technological innovation hub to become stronger, more efficient,
more responsive and intensely focused keywords
• To discuss the failure to commercialise
on delivering innovative solutions that
the innovations at PARC Disruptive innovation; Apple Computers;
its customers seek to succeed.
Graphical User Interface (GUI) operating
• To discuss various business strategies
Industry Microprocessors, system; Pixar Animation Studios;
adopted by Xerox to commercialise
Microcontrollers & DSPs Competition in the global Personal
technologies of its research centers
Reference No. INM0036 Computer (PC) market; On-line
• To understand the process of Year of Pub. 2006 entertainment; Digital music players; On-
commercialisation of technologies and Teaching Note Available line music stores; iPod; Video iPod; Disney’s
innovations Struc.Assig. Not Available acquisition of Pixar Animation Studios.

• To debate on the economic relevance


of spin-offs.

21
www.ibscdc.org
Corning, US Glass and Ceramics • To discuss Tsuyoshi Kikukawa’s strategy keywords
Maker: 150 years of Innovative to revamp the innovation process in the
Eos Airlines; All-business class carriers;
Experience company.
Commercial aviation industry; Long-haul
In the history of global businesses, it is Industry Photographic and Optical air travel; Transatlantic commercial
observed that some companies prosper by Equipment Manufacturers aviation; European airlines; Heathrow
making continuous innovations in their Reference No. INM0033 Airport; Premium airlines; Stansted; David
business practices, as others grow by using Year of Pub. 2006 Spurlock.
Teaching Note Not Available
their financial muscle to acquire other
Struc.Assig. Not Available
companies. A few prosper by making
patient investments that can take decades keywords Toshiba’s Innovation Strategies
to pay off. Corning – a glass and ceramics
maker established 150 years ago, is one of Olympus; Japan; Innovation; Product Toshiba Corporation had a long history of
those companies that stuck to innovation development strategy; Research and being a technological innovator. The
since its incorporation and made development; Future Creation Laboratory; company depended on its innovation
investments in ambiguous technologies, Creative Destruction; Digital camera strategies to gain a competitive edge over
some of which paid off and some did not. business; Tsuyoshi Kikukawa. its competitors, which it plans to employ
Still, the company persisted with in the future as well.
innovation and eventually made
technology its competitive advantage in EOS Airlines, World’s First All- Pedagogical Objectives
specific fields like LCD glass, flat-panel business Class Carrier: Low-cost • To highlight the innovation strategies
screens, optical fiber products,
Model in Long-haul Air Travel? of Toshiba
environmental technologies and laboratory
products for life sciences research. It is Yet another new business model has taken • To discuss whether the innovation
observed that matching Corning’s strength birth in the wired commercial aviation strategies would also enable Toshiba to
in these areas would be a Herculean task industry. But, unlike its predecessors, this stay ahead of its competitors in the
for any other company. time the new model is in the much lucrative future.
transatlantic route between New York and
Industry Electronics
Pedagogical Objective London and in the high-yield business
Reference No. INM0031
travellers’ segment. A new airline called
• To discuss continuous innovation as the Year of Pub. 2005
EOS, a single-class airline, started
competitive advantage of Corning. Teaching Note Not Available
operations in mid-October 2005, with a
Struc.Assig. Not Available
Industry Optical Switching and single Boeing 757 (accommodating 200
Transmission Components passengers), redesigned to carry 48 keywords
Reference No. INM0034 passengers. EOS likes to call its passengers
‘guests’ and the experience of flying, the Toshiba Corporation; Innovation strategies;
Year of Pub. 2006
airline says, will be like travelling on a Technological innovator; Commoditisation;
Teaching Note Not Available
private jet. The carrier offers a separate Technical collaboration; Technological
Struc.Assig. Not Available
cabin for every passenger furnished with: breakthroughs; Pioneer in electronic
keywords (1) 21 square feet (two square metres) of products; Notebook PC (personal
space; (2) fully reclinable 78-inch bed with computer) segment; Memory chips; DVD
Corning; Innovation as competitive segment.
cashmere blankets and Tempur-Pedic
advantage; Glass industry; Optical fibres;
pillows; (3) china crockery; (4) a personal
Liquid crystal display (LCD) screens; Flat
DVD player; (5) individual in-flight
screens; Technology as competitive
advantage; Laboratory equipment;
entertainment devices; and (6) a guest seat High Sales with Low Margins:
Emission control systems.
for every passenger, with arrangements Notebook PC Makers’ New
made to host dinner or a business discussion.
Success Formula?
The aim is to make the passengers arrive
refreshed and revived after a seven hour Notebook computers were introduced in
Olympus’ ‘Creative Destruction’: flight across the Atlantic. All this for a the early 1980s and formed a smaller
Tsuyoshi Kikukawa Revamping lower price than the competitors. Even segment of the personal computer market.
the Innovation Process though analysts express doubts over the However, notebook computers have started
success of the single-class and lone flight registering high sales since the early 1990s.
Since his appointment as the President of business model, seasoned players are taking By 2005, notebook sales even surpassed
Olympus in 2001, Tsuyoshi Kikukawa has a note of the experiment, lest they lose desktop sales in the US market. Rapid
introduced the concept of ‘creative business as happened in the early 1970s in technological developments and reductions
destruction’ wherein each department and the case of low cost carriers. in the prices of notebooks were primarily
every employee is allowed to critically responsible for the surge in sales. Though
examine the existing processes in the Pedagogical Objectives sales increased for the notebook industry,
company and reinvent them if required. In the margins kept declining due to the drop
2003, Kikukawa also established the Future • To discuss on the necessity and viability in prices of notebook computers owing to
Creation Laboratory in Tokyo, conducting of EOS’ business model intense competition among the industry
various research projects and creating players.
sustainable competitive edge for Olympus • To discuss the strategies of the new
by focusing on product development for carrier and the sustainability thereof.
Pedagogical Objectives
the future. Industry Aviation
Reference No. INM0032 • To highlight the changing trends in the
Pedagogical Objectives Year of Pub. 2005 notebook industry
Teaching Note Not Available
• To discuss the merits and demerits of • To discuss the problem of low margins
Struc.Assig. Not Available
the tradition of innovation at Olympus with high sales.

22
www.ibscdc.org
Industry Personal Computer Industry shows, news and sharing opinions over the Industry Pharmaceuticals Manufacturers

I N N O V A A T I O N
Reference No. INM0030 Internet. Listeners of these Podcasts (audio Reference No. INM0027
Year of Pub. 2005 programmes) can download these audio files Year of Pub. 2005
Teaching Note Not Available onto their PCs or iPods and listen to them Teaching Note Not Available
Struc.Assig. Not Available at their leisure. For a good Podcast, the Struc.Assig. Not Available
potential audience might be to the tune of
keywords 10,000 listeners. By February 2005, the keywords
Personal computer (PC) industry; number of Podcasts on the web had Pharmaceutical research; Novartis;
Notebook industry; Margins; Economies increased from 36 (in mid-2004) to more Blockbuster drugs; Patent expiry on
of scale; Low costs; High sales; than 4,000. While Podcasting competes blockbuster drugs; Generic drugs;
Competition; Technology; Average retail with Satellite and Internet radio, it poses a Collaborative research in global
price; PC manufacturers threat to the traditional radio industry. pharmaceutical industry; Strategic alliances
of Novartis; Novartis product pipeline.
Pedagogical Objectives
Google Print Program: • To highlight the evolution of radio
Encouraging ‘Fair Use’ or technology Innovation at Pixar: The Key to
Copyright ‘Infringement’? Sustainable Profitability?
• To discuss whether Podcasting is going
Google launched its ‘Print Program’ in to change the radio industry forever. Pixar Animation Studios has produced
December 2004. With the objective of some of the most successful movies in
Industry Radio
integrating all the books in the world into Hollywood history. A rare combination of
Reference No. INM0028
on-line content, it approached various high quality computer graphic animation,
Year of Pub. 2005
publishers and libraries. But the comedy, strong characterisation, engaging
Teaching Note Not Available
conventional libraries and publishing houses scripts and technical innovation is
Struc.Assig. Not Available
felt that the Google ‘Print Program’ considered to be the key behind the success
violated copyright laws and filed a lawsuit keywords of Pixar’s movies. Pixar is also known for
against the company. They felt that Google its talent pool that is considered to be one
amassed books without seeking permission The invention of radio; Wireless of the best in the industry. But with its
of the copyright-holders, which affected telegraphy; AM radio; FM radio; Traditional distribution contract with Disney coming
the revenues of authors and publishers. The US radio industry; Satellite radio industry; to an end along with Pixar’s decision to
controversy forced Google to suspend its Internet radio; Cable and radio; HD (High step up production, questions have been
‘Print Program’ until November 2005. Definition) radio; RSS (Real Simple raised about its future success.
Syndication) technology; Adam Curry;
Podcasting; Podcasts; Podcasting as business;
Pedagogical Objectives Pedagogical Objectives
Competition in podcasting; iPod’s.
• To highlight the controversy involving • To highlight how Pixar was able to
the fair use of the copyright law attract and nurture a team of highly
Novartis: Globalization of talented artists and computer experts
• To discuss whether retrieving and
indexing of unfound books on the web Pharmaceutical Research • To discuss Pixar ’s unique selling
was fair use or infringement proposition
Until 2000-2001, the global
• To discuss the impact of suspension of pharmaceutical industry used to consider • To discuss possible future courses of
the ‘Print Program’ on Google’s growth Novartis as a ‘sleepy European giant’ till action that Pixar can take in the light
plans. it released Glivec, a therapeutic drug that of its partnership with Disney coming
established itself as one of the most to an end.
Industry Internet Searching Services successful cancer therapies. By the turn of
and Portals Industry Motion Picture Production
the 21st century, while major pharma
Reference No. INM0029 and Distribution
players globally were facing a crisis of
Year of Pub. 2005 Reference No. INM0026
patent expiry on key drugs and poor
Teaching Note Available Year of Pub. 2005
research results, Novartis had 10 new drug
Struc.Assig. Not Available Teaching Note Not Available
launches slated between 2000 and 2003,
Struc.Assig. Not Available
keywords three times that of any of its competitors.
It had a Strategic Alliances division, which keywords
Google; Print service program; Expansion; by 2004 had signed over 320
Search engine; Copyright; Copyright collaborations, out of which 90 Pixar Animation Studios; Toy Story;
violation; Mass digitisation programme; collaborations were with biotech companies Finding Nemo; The Incredibles;
On-line computer library; Library project; and 230 with academic centres in 19 Innovation; Steve Jobs; Renderman;
Association of American University Press; countries. Due to its innovative research Marionette; Ringmaster; Disney-Pixar
Copyright Law. strategies, Novartis was adjudged by partnership.
Fortune, as the fourth best pharmaceutical
company in the world in 2004.
Podcasting: Revolutionising the Google Mini: Search Appliance
Radio Pedagogical Objective for Small and Mid-size Businesses
In mid-2004, the era of on-demand radio • To discuss how Novartis, under the Since the introduction of Google’s first
started with the phenomenon of leadership of professor Paul Herrling, search appliance in 2002, it has been
Podcasting (derived from iPod and the head of corporate research, is popular among large enterprises like Xerox
broadcasting). The new technology making efforts to sustain its growth by and the World Bank Group as it enabled
encourages individuals to build their own leveraging on its globalised research them to enhance their information search
radio stations by playing music, airing talk strategy. capabilities, reduce work duplication and

23
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achieve higher revenues. But, all this was Year of Pub. 2005 company has further plans for orbital space
provided at a premium price of $32,000. Teaching Note Not Available travel, space hotels and eventually carrying
In early 2005, Google introduced ‘Google Struc.Assig. Not Available travellers to moon. However, skepticism
Mini’, a smaller version of its earlier search abounds about Virgin Galactic’s plans of
appliance at $4,995, which was targeted at keywords affordable space travel in terms of safety
small and mid-size businesses (SMB’s) that Magink Display Technologies Inc.; and cost.
according to Google remained largely Mitsubishi Electric Corp.; Digital Ink;
untapped. Outdoor advertisement; Advertising Pedagogical Objectives
industry; Billboards; e-Ink Corp; Gyricon;
Pedagogical Objectives LED (light emitting diodes) technology; • To discuss the viability of Virgin
Display boards; Multiple revenue streams; Galactic’s plans of safe and affordable
• To highlight Google’s competitive Clear Channel International; Point of space travel
challenges purchase (POP) displays; Smart paper; • To discuss the potential of commercial
• To discuss the company’s foray into the Promotional displays. space tourism.
enterprise search business for SMB’s.
Industry Space Tourism
Industry Internet Searching Services Reference No. INM0022
and Portals Google’s Innovation-driven Year of Pub. 2005
Reference No. INM0025 Growth Teaching Note Not Available
Year of Pub. 2005 Struc.Assig. Not Available
Very few technologies, no matter how
Teaching Note Not Available
Struc.Assig. Not Available
influential they are in the day-to-day keywords
human life, make it to the lexicon. One
keywords such technology is Google – the most used Virgin Galactic; SpaceShipOne; White
search engine to explore the World Wide Knight; Richard Branson’s plans for space
Google Search Appliance (GSA); Google in Web. Although Google was not the first travel; Scaled Composites Ltd; Tier One
a box; Google Mini; Google’s competitors search engine on the Internet, with its Programme; Sub-orbital space flight; Ansari
in enterprise search; Google’s Search innovative page ranking method it X-Prize; Majave Aerospace Ventures; VSS
Appliance clients; Google Mini’s clients; revolutionised the search engine Enterprise; Space Hotel; Space tourism.
Google Mini’s technical advantages; technology to become an e-guide for the
Google’s revenue model; Google’s brand non-specialised Internet users.
strategy; Competition in search appliance
A G Lafley: Innovating P&G’s
business; Enterprise search market; Small
Pedagogical Objective Innovations
and mid-size businesses.
• To discuss Google’s innovations and its Procter & Gamble Co. (P&G), one of the
sustainability as a stand-alone search world’s largest consumer products
Magink Display Technologies engine in the wake of increasing companies, failed to double its sales between
competition from the likes of Yahoo
Inc.: Israeli Firm’s Billboard and Microsoft.
1990 and 2000 – a goal that it had met in
each decade since 1940. During that period,
Innovations
Industry Internet Searching Services &
the company reported a slump in the
The advertisement industry had always been Portals
growth of its sales and its market value
the arena for innovations, with a race Reference No. INM0023
plunged. By all accounts, the then CEO of
between companies to improve display Year of Pub. 2005
the company, Durk I. Jager had tried to
media with a technology that would Teaching Note Not Available
implement too many changes too quickly.
incorporate ‘viewability’ and ease of use. Struc.Assig. Not Available
He had introduced a slew of new products
One such innovation in the outdoor that failed to generate revenues. Jager was
advertisement category was Magink keywords ousted after only 17 months at the top –
Display Technologies Inc.’s Digital Ink. the shortest tenure of a CEO ever at P&G.
Google; Sergey Brin; Lawrence Page; In June 2000, Alan George Lafley, a P&G
This Israeli firm, in collaboration with
Search engine technology; Crawling and veteran for 23 years, took over the reins
Mitsubishi Electric of Japan, had developed
indexing; World wide web (www); Alta Vista; of the company. In contrast to Jager, Lafley
a new technology that reflects light in
PageRank; Page ranking; AdWords. directed the company's focus on the
different colours on applying a small
electric charge. Magink’s Digital Ink was established brands such as Pampers, Crest
economical when compared to LCD’s and Tide.
(liquid crystal displays) and flexible when Virgin Galactic: Game Plans for
compared with a paper printed billboard. Space Tourism Pedagogical Objectives
But it had some limitations and challenges
to overcome before being approved as the In mid-2004, the launch of the first non- • To discuss Lafley’s renewed focus on
advertising technology of the future. governmental, manned ‘rocket-powered innovation to improve the sales and
sub-orbital vehicle’ called SpaceShipOne profits of the company
ushered in the new era of space travel.
Pedagogical Objectives • To discuss the different strategies adopted
Richard Branson’s Virgin Group, a British
by Lafley to accelerate the innovation
• To provide an insight into Magink’s business conglomerate entered into a
process
Digital Ink and various other competing licensing deal with Mojave Aerospace
billboard technologies Ventures, which owned the technology of • To discuss as to which strategy for
the spacecraft. With this technological growth is better – focusing on
• To discuss outdoor advertising and the assistance, Branson’s ‘Virgin Galactic’ incremental innovation of existing
challenges for Digital Ink to emerge as company aims to become the world’s first products or taking a radical approach to
the technology for the future. commercial space tourism operator. innovation and introducing new products
Industry Advertising Branson plans the commercial launch of that can create growth opportunities for
Reference No. INM0024 his sub-orbital space vehicles by 2007. The the company.

24
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Industry Fast Moving Consumer Goods Samsung is poised to revolutionise the global European Football Clubs’ New

I N N O V A A T I O N
Reference No. INM0021 washing machine industry. Business Model: The Prospects
Year of Pub. 2004 and Perils
Teaching Note Not Available Pedagogical Objective
Struc.Assig. Not Available By 2004, the revenues of the European
• To discuss the future scenario of the global football clubs touched $12 billion and the
keywords washing machine industry when revenues of British, German, French and
Procter & Gamble (P&G); AG Lafley; innovative technology would keep Italian clubs had increased three times since
Durk I. Jager; Organisation 2005; 360- garments germ-free even after a month the mid-1990s. However, their
degree innovation; Connect and develop; of them being laundered. expenditure had also increased by leaps and
Billion-dollar brands; Tide; Crest; Pampers; Industry Electronics
bounds, thanks to the EU (European Union)
Kimberley-Clark Corp.; Colgate-Palmolive Reference No. INM0019
ruling that eased the movement of
Co; Unilever. footballers between the different clubs of
Year of Pub. 2004
Europe. It resulted in severe competition
Teaching Note Not Available
between the clubs to sign in the star
Struc.Assig. Not Available
footballers by offering hefty signing fees
The Napster Sour Note in keywords and salaries.
Bertelsmann’s Symphony
Samsung Electronics; Evolution of washing
Bertelsmann, one of the biggest media Pedagogical Objective
machines; Global washing machine business;
conglomerates in the world, faces two Samsung’s quantitative to qualitative growth; • To discuss the new business model of the
lawsuits, thanks to a decision made during Silver nano technology; Nano definition; premier football clubs and its implications
the dot com boom to partner Napster, the The process of silver wash; Major models on the global football business.
highly popular and controversial peer-to- of Samsung washing machines; Germ free
peer network. The lawsuits filed by the clothes from Samsung’s washing machines; Industry Sports and Recreation
music publishers, and two of its Innovations in washing machines; Reference No. INM0017
competitors, claim damages worth $17 Samsung’s future growth plans; The future Year of Pub. 2004
billion. The lawsuits charged that the loans of washing machines. Teaching Note Available
provided by Bertelsmann to Napster helped Struc.Assig. Available
the company to keep its services, which
keywords
facilitated a copyright infringement by its
users, running for eight months longer than FedEx: Revolutionising Global European football; Manchester United;
it would have otherwise done. Express Delivery Real Madrid; Olympique Lyonnais; David
Frederick W. Smith invented the express Beckham; Zinedine Zidane; Luis Figo; The
Pedagogical Objectives delivery industry by starting the Federal Union of European Football Associations
Express Corp. (FedEx) in 1971. Since then, (UEFA); Champions League; Television
• To discuss Bertelsmann’s motives behind rights in football broadcasting; Football
its decision to partner with Napster FedEx has transformed the business of
global logistics by integrating information related merchandising; Inter Milan.
• To discuss the merits and demerits of technology with logistics and by reducing
the lawsuits filed against Bertelsmann. the cost and time involved in the
transportation of raw materials and finished The iPod: Apple’s Trojan Horse?
Industry Music Industry
goods.
Reference No. INM0020 Apple’s iPod, introduced in 2001, has
Year of Pub. 2004 become one of the company’s best selling
Teaching Note Not Available
Pedagogical Objective
products of all time, even overtaking the
Struc.Assig. Not Available • To discuss the innovative techniques and Mac in sales. It has become a fashion
practices of FedEx, which has statement, heralding the computer maker’s
keywords
transformed the global express delivery entry into consumer electronics. Steve Jobs
Bertelsmann; Thomas Middelhoff; Media industry. is keen on using the iPod as a revival engine
conglomerate; Reinhard Mohn; Gunter for the company and a catalyst in its efforts
Industry Express Delivery Services to create a ‘digital hub’. Though it occupies
Thielen; Napster; Shawn Fanning;
Reference No. INM0018 the top slot, the iPod faces stiff
Recording Industry Association of America
Year of Pub. 2004 competition from companies like
(RIAA); The music industry; Bertelsmann
Teaching Note Not Available Samsung, Dell, Creative Technologies and
Music Group (BMG); Copyright
Struc.Assig. Not Available Sony.
infringement; On-line music; Sony BMG
Music Entertainment; Universal; EMI keywords
(Electrical and Music Industries). Pedagogical Objectives
Federal Express Corporation; Express
delivery industry; Overnight delivery • To discuss the development of the iPod
services; Logistics management; Just-in- and the cultural impact it had on the
Samsung’s Washing Machines: time; Build-to-order; Frederick W. Smith; way people listen to music
The “Nano” Innovation Customers; operations and services master
• To discuss the current and future
In 2003, Samsung Electronic Co. Limited on-line system (COSMOS); Barcode; Hub-
competition that iPod faces and Apple’s
developed ‘silver nano’ washing machines, and-spoke system; Global Operations
marketing efforts to promote the iPod
which utilised the disinfectant property of Control Centre (GOC); Malcolm Baldrige
National Quality Award in Services; • To discuss whether the iPod can sustain
nano-sized silver ions and come out with a
Integrated logistics management; FedEx; its lead in the face of cheaper, ‘me-too’
new genre of washing machines.
Leveraging on this new technology, FedEx super tracker. competitors.

25
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Industry Consumer Electronics Pedagogical Objectives Tivo: Pioneering the Interactive
Reference No. INM0016
• To discuss the technology glitches that Television
Year of Pub. 2004
Teaching Note Available
eBay faced and how it completely Digital video recording, a relatively new
Struc.Assig. Available
overhauled its technology architecture concept, was pioneered by TiVo Inc. The
to reduce site outages and improve its concept of digital video recording
keywords site availability eventually resulted in the emergence of
iPod; Apple computer; iTunes; Steve Jobs; • To discuss the importance of technology the interactive television industry. But
Hard disc players; MP3 players; Portable in a fast-growing Internet business. many media and broadcasting companies
players; Creative technologies; Dr Michael opposed the practices followed by TiVo,
Industry Internet Auctions whose service allowed a television viewer
Bull; Low battery life; Sony Vaio; FireWire.
Reference No. INM0014 not only to pause, rewind and record
Year of Pub. 2004 television shows according to the preferred
Teaching Note Not Available schedule but also to skip commercials.
Segway HT: Troubles and Struc.Assig. Not Available Realising the potential, cash-rich
Challenges of the Revolutionary companies like Microsoft and America
keywords
Human Transporter Online (AOL) also made their foray with
eBay; On-line trading; Pierre Omidyar; extended services. TiVo’s future appeared
In 2001, Dean Kamen invented Segway to be in trouble. But TiVo survived by way
Meg Whitman; Technology architecture
HT, which was to revolutionise the of tie-ups, multiple revenues and
and infrastructure; Outages; Maynard
transport system. Designed to address the technology licensing.
Webb; eBay’s front-end and back-end
problem of pollution and congestion in
applications; V3 technology; Technology
urban areas and to improve the travelling
glitches; The trust factor; Scaleable user Pedagogical Objectives
efficiency of the urban populace, Segway
interface.
HT was expected to be widely accepted • To discuss how a venture capital funded
across the globe. However, by 2003, Segway firm like TiVo, turned an idea into a new
was selling much less than expected, and it industry
remained a novelty rather than an Innovating 3M’s Innovations
alternative means of mass transport • To discuss the growing competition in
3M, a globally admired company that was the interactive television industry.
system.
consistently ranked in the list of top
innovators for several years, has seen a Industry Consumer Electronics
Pedagogical Objective decline in the number of breakthrough Reference No. INM0012
products that characterised the company. Year of Pub. 2004
• To discuss the troubles and challenges
3M then brought in James W. McNerney, Teaching Note Not Available
faced by Segway in promoting its
the first outsider to head the company. Struc.Assig. Not Available
innovation as a safe and effective mode
of transport. McNerney advocated a more structured keywords
approach to innovation and brought
Industry Transport Machinery changes that became a matter of Interactive television industry; Personal
Reference No. INM0015 speculation. television industry; Digital video recorder;
Year of Pub. 2004 Sources of revenues; TiVo’s manufacturing
Teaching Note Not Available Pedagogical Objectives and service partners; ReplayTV;
Struc.Assig. Not Available Microsoft’s ultimate TV; Word-of-mouth
• To discuss the essence of 3M’s strengths endorsement; Marketing budget; Subscriber
keywords in innovation and the corporate culture base.
Segway HT; Human transporter; Dean that encouraged new ideas
Kamen; Ginger; Intelligence transporter; • To discuss whether McNerney’s new
Dynamic stabilisation system; City Segway approach to innovation would succeed Utility Computing: IBM On-
Tours; Electronic personal assistive or stifle the innovation that has been demand
mobility devices; I-series; P-series; the cornerstone of the company since
Rad2GoQ; Saga; Revolutionising human its inception. Since the late 1990s, the IT industry
transport. witnessed the growth of a new concept –
Industry Chemicals and Computer ‘utility computing’. The core idea of this
Software concept was to transform computing power
Reference No. INM0013
eBay’s Technology and peripherals into utility like water and
Year of Pub. 2004 electricity so as to enable businesses to
Management Teaching Note Available convert their fixed costs on IT
eBay is the most successful on-line person- Struc.Assig. Available infrastructure into variable costs. Under
to-person trading community on the keywords this concept, businesses could hire
Internet. Within four years, eBay’s site computing software and services as and
was able to attract millions of people from 3M innovations; Post-it-notes; Minnesota when required rather than outrightly
around the world through its auction-style mining and manufacturing; 3M purchasing those resources. Sensing a huge
and fixed-price formats. But as the number restructuring; James McNerney opportunity, International Business
of users grew, eBay was plagued with restructuring 3M; Six sigma; Global Machines (IBM) came up with its own
problems pertaining to IT (information innovator; Cost cutting strategies at 3M; version of utility computing named ‘on-
technology) architecture. It was believed Organisational restructuring; Leadership demand computing’ and in late 2002, IBM
that eBay’s IT department failed to keep development at 3M; 3M 30% rule; Grant announced that it had committed $10
up with the speed of eBay’s growth. genesis at 3M; Corporate culture for billion for this project.
innovation; Most admired company.

26
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Pedagogical Objectives Intelligent speed adaptation system; Honda pharmaceutical company, Pfizer, for

I N N O V A A T I O N
City; Colligation mitigation brake system; norvasc (the world’s top-selling
• To discuss the conceptual framework of Takeo Fukui; Automotive safety research hypertension medicine) with its generic
‘utility computing’ facility. version. The company, after being
• To discuss the competitive advantages successful in its API and generic business,
of IBM as a forerunner in this new IT is heading towards new drug discovery. By
2008, the company intends to be among
revolution. Nanotechnology: New Vistas for
the top 50 global pharmaceutical
Industry Information Technology US companies and by 2013 among the top
Services 25.
Nanotechnology, the science of small
Reference No. INM0011
things, seems to have arrived to rule the
Year of Pub. 2004
world in a big way. It all started with Richard Pedagogical Objectives
Teaching Note Not Available
Feynman's thought of writing an
Struc.Assig. Not Available • To discuss the impact of a product patent
encyclopaedia on a pinhead. The
regime on the top drug manufacturers in
keywords researchers are now aiming for something
India
big: space elevators, nanorobs that can build
Utility computing; International Business copies of themselves, nanobots that can • To analyse Dr. Reddy’s strategy of
Machines (IBM); On-demand computing; be swallowed to cure cancer and solar cells heading towards new drug discovery and
Grid computing; Autonomic computing; for using inexpensive energy. being a discovery-led global
Metered service model of computing; Nanoproducts, which are expected to pharmaceutical company.
Outsourcing in IT utilities; Microsoft create a $1 trillion market by 2015, is being
dynamic systems; IBM global services; hailed as the next industrial revolution. Industry Pharmaceuticals
Tivoli software; IBM i-series; Open Reference No. INM0008
standards in computing; Linux; Sun Pedagogical Objectives
Year of Pub. 2004
Microsystems N1 data platform; HP utility Teaching Note Not Available
data centre. • To understand the role of clusters in Struc.Assig. Not Available
research and development of new
keywords
technology and how the US is developing
Honda into the Safety Car Market nanohubs Dr. Reddy’s Laboratories Limited; Ranbaxy
• To discuss the importance of venture Laboratories Limited; Drug discovery;
Automobile manufacturers have Research and development; Indian
capitalists and academia in the successful
innovations up their sleeves. Car designers pharmaceutical industry; Novartis; Active
implementation of research and the
and manufacturers have always focused their pharmaceutical ingredients; Pfizer Inc.;
benefits of successful development of
research to provide comfort, safety and ease Generic drugs; Bulk active pharmaceuticals;
this new technology to the US economy.
of driving to their vehicle users. Honda Branded generics; Specialty
Motor Company went beyond that with its Industry Nanotechnology pharmaceutical; United States Food and
commitment to provide ‘safety for Reference No. INM0009 Drug Administration; New drug application;
everyone’ that included pedestrians who Year of Pub. 2004 Abbreviated new drug application.
shared the roads. The increasing number of Teaching Note Not Available
pedestrian deaths due to road accidents Struc.Assig. Not Available
further reinforced its commitment. Besides
enhancing its image as a company keywords Airbus: Flying High with A380
committed to its corporate social Nanotechnology applications; National When the European consortium, Airbus
responsibility, Honda's initiative was also Science Foundation; National Industrie (Airbus), announced the
leveraged as a tactic to differentiate Honda nanotechnology initiative; Richard development of the world’s biggest
from its competitors. On its anvil, Honda Feynman; Rice University; Zyvex; passenger plane – the A380 – on December
has the new safety technology in all its cars Nanohubs in US; Nanodefend and 9 th 2000, many aviation experts wondered
to comply with the stricter safety rules being nanogreen; Venture capital; Government whether the consortium was taking a
implemented by Euro NCAP that would hit support; Lux Capital; reckless gamble. Though the A380 was the
the market from 2006 onwards. NanoBusinessAlliance; Nanotechnology most advanced, spacious and efficient
and government’s role. aircraft ever conceived, assembling such a
Pedagogical Objective huge plane was considered as a technological
feat involving huge complexity. Based on
• To analyse Honda’s initiatives to make its prediction that there would be a huge
its cars safer for the pedestrians and its Dr. Reddy’s Laboratories: On the demand for larger aircrafts in the future,
implication on the company’s future New Drug Discovery Trail Airbus took a calculated risk in
business potential and profitability. manufacturing the A380 superjumbo. Airbus
With India’s imminent shift from process
Industry Automobile patent regime to product patent regime, partnered with many manufacturers to
Reference No. INM0010 post 2005, a host of top Indian drug firms help build and fund the A380. Analysts feel
Year of Pub. 2004 such as Dr. Reddy’s, Ranbaxy, Wockhardt, that if the A380 fails, it would become a
Teaching Note Not Available Lupin Laboratories and others, realised the crushing burden not only to the
Struc.Assig. Not Available need to do their own drug-discovery shareholders of Airbus but also for suppliers
research. Dr. Reddy’s, one of the leading and European taxpayers, as they invested
keywords billions of dollars on this plane.
players in the Indian pharmaceutical
Honda Motor Company; Safety for industry, is also one of the leading Active
everyone; Euro NCAP; Honda Civic; G- Pharmaceutical Ingredient (API) and Pedagogical Objectives
Con; Polar II; Crash test; Pedestrian safety; generics players in the top pharma markets
• To discuss the reasons behind Airbus’
Tochigi Research and Development (R&D) of the world. It has also challenged and
decision to introduce the A380
Centre; Vehicle stability assist system; won a lawsuit against the world’s leading
superjumbo

27
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• To discuss the probable outcomes in case Eli Lilly’s Cialis: A Rising Star Pedagogical Objective
the A380 fails to deliver the expected
returns. For men with Erectile Dysfunction • To discuss Project Platypus, Mattel’s out-
(numbering 23 million in the US alone) of-the-box, unconventional and creative
Industry Aerospace Pfizer's blockbuster pill, Viagra, was the product development process.
Reference No. INM0007 only answer until September 2003. It held
Industry Toys and Games
Year of Pub. 2004 a colossal 96% of the US market for
Reference No. INM0004
Teaching Note Not Available impotence pills. In 2002, Viagra, the first
Year of Pub. 2004
Struc.Assig. Not Available oral drug to treat this male condition,
Teaching Note Not Available
reached $1.7 billion of global sales, of which
keywords Struc.Assig. Not Available
$1.1 billion came from the US. In
Airbus Industrie; Airbus Consortium; September 2003, Bayer and keywords
Relationship with suppliers; Supply chain GlaxoSmithKline’s Levitra hit the
management; Mission-critical systems; impotence market. In November 2003, Project Platypus; Mattel; Ivy Ross; Ello;
Composite materials; Assembling the Cialis, co-marketed by Seattle’s Icos and US toy industry; Fashion dolls; Robert A.
A380; Manufacturing sites; Political Eli Lilly & Co, entered this market space. Eckert; Skunk works; Creativity;
considerations; Risk sharing partners; Cialis is a yellow coloured pill and Viagra, a Corporate story telling; Out-of-the-box
Goodrich and Rockwell Collins; Conditional blue one. Viagra and Levitra each had an thinking; Collaboration; Innovation;
agreements; Trade dispute. effectiveness window in the range of 4-6 Barbie; Product development.
hours. Cialis expanded this window to 36
hours. Following its success in Europe,
7E7: Boeing’s Big Bet
Australia and New Zealand, Cialis entered Biogenerics: Opportunities and
the lucrative US market in December Challenges
Since its entry into commercial aircraft 2003.
manufacturing in 1916, Boeing was the Back in 1982, the first biotech product,
undisputed leader in the industry. But the Pedagogical Objective recombinant human insulin hit the market.
emergence of Airbus in 1970 held back Hitherto, the biotechnology industry had
Boeing’s marathon success. Particularly, the • To discuss Cialis’ strategy in the US where largely been immune to generic
Airbus A340 seemed to eclipse the success the pill has to contend with Levitra and competition with most firms still struggling
of the 747, Boeing’s time-tested aircraft the market leader, Viagra. to turn their ideas into products. The boom
since 1969. For the first time in its history, in generic pharmaceuticals has not included
Industry Pharmaceuticals Manufacturers
Boeing’s market share fell to 49% in 2001, biotech medicines. The last five years
Reference No. INM0005
while Airbus reigned with 51% market however saw the biotech market growing
Year of Pub. 2004
share. Problems multiplied for Boeing when at a CAGR rate of 27.7%. Patent protection
Teaching Note Not Available
Airbus commenced the manufacturing of on many biotech drugs is on the verge of
Struc.Assig. Not Available
the A380 in 2001, which was touted to expiry. By 2006, 11 biotech drugs worth
beat the 747 on all parameters. Having keywords more than $13 billion in annual sales would
being crisscrossed by Airbus and ridiculed face generic competition in America and
Cialis; Viagra; Levitra; Eli Lilly; Icos; Lilly the EU. However, hurdles remain in the
by industry observers for being slow to
Icos; Pfizer; Bayer; GlaxoSmithKline form of the complexity of the biogeneric
react, Boeing, finally, announced its plans
(GSK); Impotence market; Erectile development process, regulatory barriers
to build the 7E7, which, the company said,
dysfunction; Pharmaceutical; Strategy; and lobbying by patent holding companies.
would outperform all the existing aircrafts.
Food and Drug Administration; FDA.
While Boeing based its future on the speed
of aircrafts (less travel time), Airbus relied Pedagogical Objectives
on the seating capacity.
Project Platypus: Mattel’s • To highlight the increasing competition
in the biotechnology industry that has
Pedagogical Objectives Unconventional Toy
largely been immune to generic
Development Process competition
• To discuss Boeing’s philosophy for the
future after it shelved two of its earlier The US toy maker Mattel is world leader • To discuss the challenges facing the
projects, the 747X and the Sonic Cruiser in the design, manufacture and marketing generic drug manufacturers such as
of toys and family products. Barbie, the complexity of biogeneric development
• To discuss Boeing’s competitive most popular fashion doll from Mattel
strategies vis-à-vis Airbus process, regulatory barriers and lobbying
accounted for nearly a third of Mattel's by patent holders.
• To analyse the changes Boeing had revenues and 40% of its profits in 1999.
initiated in its manufacturing process. However, the 1990s saw rapid changes in Industry Biotechnology
the tastes and preferences of children. The Reference No. INM0003
Industry Aerospace product life cycles of many a toy lasted Year of Pub. 2004
Reference No. INM0006 only a couple of years. Mattel needed to Teaching Note Not Available
Year of Pub. 2004 move beyond regular products such as Struc.Assig. Not Available
Teaching Note Not Available Barbie. Mindful of this, Mattel unveiled a
Struc.Assig. Not Available keywords
new product development process dubbed
keywords ‘Project Platypus’. It was an Generics; Biogenerics; Pharmaceuticals;
unconventional, cross-functional and re- Biotechnology; United States Food and
Boeing 7E7; Dreamliner; Airbus A380; Hub occurring toy development process that Drug Administration (USFDA); European
and spoke system; Composites; Risk laid stress on open idea sharing. The first Medicines Evaluation Agency (EMEA);
sharing partners; Life cycle product teams; Project Platypus session concluded in Hatch Waxman Act; Dr. Reddy’s
Layoffs; Sonic Cruiser; Outsourcing. December 2001. Ello, a construction set Laboratories Limited; Teva
for girls, resulted from this session. Pharmaceuticals; Sicor; Barr Laboratories;

28
www.ibscdc.org
Novartis; Patent; Abbreviated new drug Industry Pharmaceuticals

I N N O V A A T I O N
application; Exclusivity period. Reference No. INM0001
Year of Pub. 2003
Teaching Note Not Available
Nokia’s ‘N-Gage’ing Initiative Struc.Assig. Not Available

keywords
In 2002, Nokia, the world’s No.1 mobile
phone maker, troubled with falling mobile Lipitor; Research and development; Drug;
phone sales and increasing competition, Blockbuster; Zocor; Pfizer; Warner
was looking for new growth opportunities. Lambert; Pharmaceutical industry; Food
The company known for its innovation in and Drug Administration; Celebrex;
mobile phones ventured into the lucrative Generics; Mergers and acquisitions;
but highly competitive mobile gaming Atorvastatin; Patent; US pharma industry.
industry with the launch of N-Gage, a mobile
phone-gaming device. After spending
millions on the development and
promotion of N-Gage, Nokia found itself
competing with giants like Sony, Nintendo
and Microsoft.

Pedagogical Objective
• To discuss how mobile phones have
emerged as a popular medium for playing
games and Nokia’s efforts and challenges
in establishing itself in the gaming
market through N-Gage.
Industry Wireless Telecommunications
Headsets
Reference No. INM0002
Year of Pub. 2004
Teaching Note Available
Struc.Assig. Available

keywords
Nokia; N-Gage; Mobile phones; Mobile
gaming market; Gaming industry; Video;
TV and console games; PC and Internet
based games; Mobile gaming; Nintendo;
Playstation; X-box; Sega; Game Boy
Advance.

Lipitor: The Case of a Blockbuster


Drug
The major driver of the pharmaceutical
industry is R&D. While research and
innovation costs increase, companies are
pressurised to improve their R&D
productivity. To leverage on their
investments and research capabilities,
companies turn to mergers and
acquisitions. But consolidation has always
decelerated R&D productivity. The
industry has become increasingly
dependent on blockbuster drugs. Most
blockbusters that emerged are
cardiovascular drugs. Statins belong to this
class. Lipitor, a statin, was discovered and
developed by Warner Lambert and quickly
became a blockbuster.

Pedagogical Objective
• To discuss the importance of
blockbusters in today’s global pharma
industry and how Lipitor emerged as a
megabrand.

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