OMIS6700 MANAGING NEW TECHNOLOGY

MODULE 2

INTRODUCTION
CASE REVIEW: “EMI AND THE CT SCANNER”
 TESLA MOTORS
•By 2015, Tesla Motors was a $3.2 billion company on track
to set history.
•As of 2017, it also has a sports utility vehicle, and a more
moderately priced mass market car.
•Production starting in China
•New Model Y Electric Crossover scheduled for imminent
release in 2019
•Charging Station Buildout continues
•Semi Truck, Roadster & Pickup Truck Development Ongoing
Read more on Tesla in Chapter 6.

OMIS6700: CLASS 1 2
 TESLA MOTORS
•Unlike other automakers that were using new, expensive large-format
batteries, Tesla used thousands of small-format laptop batteries,
connected together.
•To ease people’s anxieties about purchasing an electric vehicle, Tesla was
building Supercharger stations across the country, and was providing a
roadside assistance program, and a guaranteed resale value.
•… but still losing money !
https://insideevs.com/news/346413/tesla-q1-2019-earnings-financial/
•And what seems to be a somewhat chaotic “pell mell’’ type of process
https://www.greentechmedia.com/articles/read/teslas-new-products-
and-challenges-in-2019#gs.si270x

OMIS6700: CLASS 1 3
TESLA MOTORS
Non Traditional Product Development Process;

https://blogs.lse.ac.uk/management/2018/02/05/how-tesla-is-
changing-product-life-cycle-in-the-car-industry/
“Agile” parallel process – but high risk !
https://www.technologyreview.com/s/601876/teslas-strategy-is-risky-
and-aggressive-but-it-has-worked/

OMIS6700: CLASS 1 4
TESLA MOTORS
Discussion Questions:
1. Is the Tesla Model S a radical innovation or an incremental
innovation? Competence enhancing or destroying, and from whose
perspective? Is it a component or an architectural innovation?
2. What factors do you think influence the rate at which consumers
have adopted (or will adopt) the Tesla Model S?
3. Where do you think electric vehicle battery technology is on the
technology S curve?
4. Do you think Tesla Motors will be profitable? Why or why not?

OMIS6700: CLASS 1 5
EMI AND THE CT SCANNER (A)
▪ How would you describe the strategic
position of the CT scanner initiative relative to
EMI’s core business? The medical equipment
business?
▪ How well is the company doing as of 1972?
▪ What is your evaluation of their performance
to date?
▪ What should Dr. Powell do now?

OMIS6700: CLASS 1 6
EMI AND THE CT SCANNER (B)
▪ As a Board Member of EMI in 1972, would you vote
for the Six Million Pounds Capital Request to enter the
Scanner business?
▪ By the end of the (B) case another 5 years have
elapsed, and things have changed greatly. How well
is EMI doing now?
▪What problems does EMI face in 1977? Where are
they going wrong?
▪What organizational problem does EMI face in
1977?
▪What should Dr. Powell do now?
OMIS6700: CLASS 1 7
TEAM DISCUSSIONS
▪ Please gather in your teams to exchange contact info
and discuss potential topics for your research project

OMIS6700: CLASS 1 8