Global Innovation’s Challenges, Case Study Example

There are several issues that need to be addressed with Applied Research Technologies, Inc. and their global innovation challenge. Two previous failed attempts to market the mini water-oxidation products over the past three years. Despite their confidence that this this times the product is ready, Vyas still has the failed attempts to overcome. Backing the product could ruin his credibility and that of the entire team. The unit only produced one revenue generating line in five years.  In fact, it is calculated that the filtration unit has been losing $6 million dollars annually since 2006. They need to decide if the best option is to launch the product again or to harvest it and start new.

There are several different stakeholders in this scenario that need to be considered. First would be Applied Research Technologies, Inc. They are funding not only the management and research unit, but they are investing and losing money on this attempt to launch this product. David Hall, founder and CEO, encourages and demands creativity and promoting new products. By pulling the plug on this project it could send a mixed signal to his company, but funding it when it is not complete could be far too costly. Cynthia Jackson oversees the project and has to validate it prior to pitching it for the third time. Peter Vyas is directly responsibility for the filtration unit, and has to validate its potential for success. Both Cynthia and Peter have not only their credibility on the line, but also potentially their positions.

Strengths:

Applied Research Technologies, Inc. (ART) is one of the world’s technology emerging giants. They base their management approach on its entrepreneurial and innovative culture. That along with their decentralized management philosophy has strengthened their success. Encouraging their employees to think and be innovative is not just an idea, but it is part of their job. The management set the stage for divisions like the filtration unit to be extremely successful.

Weaknesses:

The filtration unit’s lack of discipline. Having promising technology in search of a market is ineffective if it is not nailed down.  The filtration unit is seen as a waste of company resources and it a drain on the entire unit. Their previous failures has challenged the management’s credibility. Allowing them the lead way to work on their own pace could be compromising their success.

Opportunity:

ART management sets highly aggressive goals with their performance objectives. In fact their own personal compensation is tied to this objective. Innovation is their competitive advantage. It Peter and Cynthia can get their team to perfect the filtration system, they could captivate their market and create excessive revenue potential for the company. They both have their own form of management which collectively could be beneficial for their success.

Threats:

If the team fails for a third time, the unit is as risk of being eliminated. The excessive amount of money would be lost. The management team in its entirety would lose their credibility. They believe that they have fixed the issues, however they are not completely confident in their unit.

There are options available for the filtration unit, and the stakeholders have their challenged with these options, both positive and negative.  The first option would be to launch the product for the third time. The positives of this would be Applied Research Technologies, Inc. would have an innovative product that the market desperately needs. It would be lucrative. For David Hall, Cynthia Jackson, and Peter Vyas they would have a successful venture under their belts and that is credible and financially beneficial. They second option would be to terminate the project. Applied Research Technologies would lose all the money they invested on this venture. David Hall would be required to start from scratch on a new project. Cynthia Jackson and Peter Vyas has this filtration unit’s failure on their reputations. The last option would be harvest the project and take it in a new direction. For Applied Research Technologies, Inc. there is no guarantee that they will find success with the new project. David Hall would have to be involved with the new direction to ensure that it does not repeat itself. Cynthia and Peter would have to spend a lot of time learning on the past failures to try to ensure that it does not happen again. They also will have lost their credibility because the filtration unit will have appeared to have failed.

Based on the information of this project, the best solution for this project would be to launch it for a third time. Knowing the failures that occurred previously, the likelihood of the occurring again are slim to none. The unit was able to go back to the drawing board and fix the problems, and ensure that they have solidified their project. Because of the amount of time and money invested in this unit, it is more feasible to give it a last shot to find the success they are striving for. At the end of this, if it does fail, they can salvage what they can to recoup some of their loss. If it is successful, they will be able to make up the revenue lost in the first two failed attempts.

Peter and Cynthia have two different perspectives that are impacting their decision making. Cynthia has been appointed to oversee the project and validate essentially. The other department managers have made it very clear that they feel this department is a waste of company resources. Cynthia not only has to look out for the profitability of the company, but the credibility of her whole department. Peter Vyas has been hired to manage this project. He has been marked with the other two failed attempts, so for him it is vital to find the success or walk away from it. He has less control over accepting the final presentation, but his credibility is on the line if he supports it moving forward.

Peter Vyas appeared to manage from his own experience and success. He exhibited directive, participative, and the ability to delegate.  Focusing less on the task and more on supporting their behavior. Vyas directly uses this approach when working and organizing his team. His management style proves to be effective because he hires individuals who experience their own knowledge in the Filtration Unit’s development. Providing opportunity to work on their own and make their own decisions, giving them the room to utilize their expertise. It creates an environment to produce great results for their products. Keeping the other informed on the project keeps him trusted and respected by his employees. He also hired project manager Janice Wagner who carried the same effective management styles as he did.

Contrary to Peter Vyas’ style of management, Cynthia Jackson exhibited more of a consultative style of leadership. Jackson is more supportive but still has high focus on the task itself. This may not have been as effective in staff or project motivation. She even when to the extent of hiring a new vice president to protect against additional financial loss. Jackson did believe in her water filtration team, however her position was to verify its working potential or to shut it down. Her management position in and of itself challenged the potential for effectiveness.

The company has a very difficult decision to make. As a leader in innovation technology, this could greatly affect their appearance and credibility in the global market. However if it is successful, it could validate them and give them a significant advantage. The management all has a significant role in determining how this project will advance. It is vital to look at all aspects before making a decision. However, because of how vital the filtration could be to developing countries it is an idea that needs to be developed. Ultimately the decision at hand is weather to move forward, retire it, or harvest it for future projects.