Applied Research Technologies,Inc: Global Innovation Challenges
Applied Research Technologies Inc.
Diyora Hitesh V Regd No. PA1110
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Applied Research Technologies,Inc: Global Innovation Challenges
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Abstract
Applied Research Technology deals in several business area such as Healthcare, Executive VP Energy, Industrial Automation and HVAC. They have a very good collaboration and good team work . The company believes in innovation and entrepreneurship. It has been stated in Company’s vision statement that “ We aim to change the world through innovation, and to grow our place in it through entrepreneurship.” For this ART encouraged employees to spend a half day each week “
experimenting , brainstorming, and thinking outside the box. The company is successful because of its innovative and entrepreneurial culture and also because of its decentralized management philosophy.
Applied Research Technologies,Inc: Global Innovation Challenges
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PROBLEM
In June 5 2006 Peter Vyas Paced his office as he Grappled With a request for $ 2 Million to re-launch a mini water- oxidation system product. Despite 2 failures to bring this product to market over the past three years, his team was confident this latest iteration was a winner. Cynthia Jackson, Vice president of ART’s Water management Division, has to decide whether to grant permission to re-launch a mini water- oxidation system product or not.
Applied Research Technologies,Inc: Global Innovation Challenges
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ANALYSIS
ART is attempting third time to launch Mini- oxidation system after failure of first two attempts. Features of Mini- oxidation system:
Mini-oxidation system is different from the other product which are already present in the market.
Mini-oxidation can be used in any area because it uses battery power.
Mini-oxidation is easy to transfer because it is small in size.
Mini- oxidation system can waste water into potable water without any chemical in minutes.
Market Analysis:
Mini-oxidation system has a great market potential in India and China as demand of filter water is increasing due to rapid industrialization and due to rise in population.
There will be huge demand in commercial places like restaurant, grocery stores, laundry, farms, uniform companies, landscape irrigation.
Applied Research Technologies,Inc: Global Innovation Challenges
INTERPRETATION
Following are merits and demerits of re-launching product. MERITS:
Price of Mini-oxidation system is lower as compare to benefits which customers will receive by this product.
There are no competitor in the market.
Mini-oxidation system is small in size.
Mini-oxidation can be used in any area because it uses battery power.
DEMERITS:
Mini-oxidation system requires frequent battery replacement
It has already been failed for two times.
R&D effort underway in several companies in china and Canada which can give huge competition.
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Applied Research Technologies,Inc: Global Innovation Challenges
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SYNTHESIS Sales And Profit Forecast
YEAR
FORECAST SALES($ millions)
2007 2008 2009 2010 2011
$ 5.45 $ 7.08 $ 8.86 $ 10.89 $ 13.09
FORECAST OPERATING INCOME 10% 15% 20% 20% 20%
After analysing different aspect of the case, sales forecast and from the merits and demerits, I recommend that RIMOS must be launched into the Market.
Applied Research Technologies,Inc: Global Innovation Challenges
LEARNING
Different aspects that a manager should consider before taking decision regarding launching of new product.
To understand duties of manager in organization.
Continues effort towards innovation leads to success.
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Applied Research Technologies,Inc: Global Innovation Challenges
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QUESTIONS AND ANSWERS: 1) As per peter vyas , how would you handle the expenditure request for the re-launch of
the mini water oxidation system?
I would have launch the product first in India or China with low production capacity because there is more demand in these countries and once product will be successful in these countries I would launch it in US market.
2) As per Cynthia Jackson would you approve the expenditure if vyas send it up to
you?
Yes, I would have approved the expenditure because the product developed by the Vyas and his team is unique in market and it is the culture of the company to invest in the new innovation because of which they have gain their name in the market.
3) How effective has vyas been as the frontline manager at ART? How effective has
Jackson been as an ART division vice President?
Vyas has been effective as front line manager he has selected a team of well qualified people and he has maintain the culture of the company by putting new innovative ideas and also implemented these ideas to design new products. Jackson has also been effective as division vise President as was acutely aware of the mounting losses in the Filtration Unit, and she had already devoted a significant amount of time trying to get them back on track.
Applied Research Technologies,Inc: Global Innovation Challenges 4) How well has Vyas managed the Global challenges this project involved?
Vyas managed the Global challenges by making a collaboration with the ITC and the support of Indian technician.
5) How has ART been able to foster innovation & entrepreneurial environment in the
context of a large corporate entity?
ART is able to encourage development of Innovations and entreprenurial by investing huge amount in innovations and giving employees time or half day leave for thinking something innovative.
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