Nypro Presentation

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Managing Innovation
at Nypro, Inc. (A)
Dongyuan Zhu
Xingxing Liu
Ye Wang

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


2

Company Overview




The fifth largest custom injection molder in the world, and
the largest non-automotive molder.
Three divisions:






Strategically aligned with customers base




Healthcare
Electronics/communications
Customer/industrial
Building plants near customers in vital markets

Striving for uniform world-class technology at all plants.


Highly decentralized organization

3

Perceived management problems/issues






Company facing a shifting basis of competition
which was speed and variety in the future.
Lankton perceived a new market for Nypro, and
was considering how and where to disseminate
the revolutionary molding machine, NovaPlast,
across the company.
Company having the challenge of being
innovative while keeping consistent across plants.

4

The alternatives of adopting NovaPlast
Alternative 1: building a new plant


Strengths







Most popular with senior management
Engineering efficiency
Centralizing development would facilitate personal oversight of project
Being done rather quickly

Weaknesses




Transportation costs
Against current philosophy of being decentralized
No successful experience
5

The alternatives of adopting NovaPlast
Alternative2: scatter across the network


Strengths







Close-to-customer manufacturing particularly important in the market segment
Allows for the pontential to capture more market share
Puts more engineers and marketers to work on exploiting the
NovaPlast
Better technology would emerge

Weaknesses



Against economy of scale philosophy
Unproven technology and no clear indication of its feasibility 6

The alternatives of adopting NovaPlast
Alternative3: apply internal market effect, focus on
making it successful at a single plant.


Strengths
 Could

be implemented rather quickly
 Allow for engineering/efficiency to be gathered
 Could evaluate how resource planning systems
interoperate
 Use “internal market” for innovation


Weaknesses
 Time

consuming to deploy if research shows that the
flexibility is required in other international markets
7

The alternatives of adopting NovaPlast
Alternative4: not use NovaPlast
 Strengths


The niche market identified and capability allows
company to compete in market

 Weakness

Avoids taking advantage of the strengths,
innovation

Not dealing with problem of the changing market
and competition


8

Recommendation






Go with making NovaPlast successful at a single
plant.
-Less weakness
-Allows flexibility towards others
Short term
-Continue with evaluation
-Continue pursuing orders
-Gather data relating to effectives and efficiency
Long term
- Decide on long term deployment strategy
9

Discussion questions


Is NovaPlast a disruptive or sustaining
innovation for Nypro?
 A new-market



What is Nypro’s process to implement new
innovations?
 Following



disruption

four steps

Nypro had a good process for exploiting
sustaining innovation but not for the disruptions?
 CEO

needs to stand astride the interface between
mainstream business units and new disruptive growth
businesses.
10

Process of implementing innovations


Find the actually occurred process innovations.



Select the most important innovations which can
implement in other plants.



Find the ways to transfer the innovation from the
original team to other teams and plants.



Nypro sets up the new rules of the innovation.
11

Reference


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