#### Slide 1: Introduction to New Products and Services

- **Key Concept**: New products and services represent a special case of innovation.

- **Main Idea**: High uncertainty due to external customer use.

- **Example**: Elkay Manufacturing Company's innovation in water fountains.

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#### Slide 2: Elkay Manufacturing Case Study

- **Problem Observed**: Difficulty in filling bottles at traditional water fountains.

- **Solution**: Creation of a “bottle filling station.”

- **Impact**: Rapid filling time, touchless use, and environmental benefits (reduced plastic waste).

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#### Slide 3: New Product Success Rate

- **Challenge**: High uncertainty in development and sales.

- **Statistics**:

- Only 28% of R&D projects pass testing.

- 24% of ideas are fully marketed.

- 14% achieve economic success.

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#### Slide 4: Examples of Product Failures

- **Microsoft Kin**: Failed smartphones.

- **Google Nexus Q**: Streamer device tech fail.

- **Coca-Cola C2**: Market confusion and flop.

- **McDonald's Arch Deluxe**: Unsuccessful burger aimed at adults.

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#### Slide 5: Reasons for New Product Success

- **Key Factors**:

- Understanding customer needs.

- Effective use of external technology and advice.

- Strong top management support.

- **Study Reference**: Project SAPPHO.

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#### Slide 6: Horizontal Coordination Model

- **Components**:

- Departmental Specialization: R&D, marketing, production.

- Boundary Spanning: External linkages with relevant sectors.

- Horizontal Coordination: Collaboration across departments.

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#### Slide 7: In Practice: Corning, Inc.

- **Product Example**: Gorilla Glass.

- **Approach**: Horizontal linkage model involving R&D, manufacturing, and sales.

- **Outcome**: Rapid development and commercial success.

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#### Slide 8: Open Innovation and Crowdsourcing

- **Open Innovation**: Extending innovation beyond organizational boundaries.

- **Example**: P&G's edible ink-jet process for Pringles.

- **Crowdsourcing**: Engaging online volunteers for ideas and solutions.

- **Example**: Goldcorp Challenge for mining solutions.

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#### Slide 9: The Need for Speed

- **Importance**: Rapid product development as a strategic advantage.

- **Industry Examples**:

- **Toys**: Mattel and Hasbro's quick response to trends.

- **Fashion**: Zara's fast-fashion model for rapid style turnover.

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### Notes:

- **Visuals**: Include images of the Elkay bottle filling station, failed products like Microsoft Kin, and
examples of successful innovations like Gorilla Glass.

- **Statistics**: Use graphs and charts to illustrate success rates and examples of product failures.

- **Interactive Element**: Consider including a case study discussion or a group activity on identifying
potential new product ideas and evaluating their innovation approach.
### Slide 1: Title Slide

**Strategy and Structure Change**

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### Slide 2: Introduction to Strategy and Structure Change

- Focus: Changes in organizational strategies, structures, management processes, and administrative

procedures.

- Historical Context: Previously, changes were incremental due to a stable environment.

- Contemporary Context: Radical changes needed due to new competitive demands.

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### Slide 3: The Need for Decentralization

- Trend: Organizations are cutting layers of management and decentralizing decision-making.

- Example: LEGO's shift from a hierarchical to a decentralized model.

- Outcome: Success with product lines like Ninjago and films like The Lego Movie.

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### Slide 4: Shift to Horizontal Structures

- Empowerment: Front-line employees are given decision-making power.

- Virtual Networks: Companies adopting e-business and virtual strategies.

- Responsibility: Top managers drive these organizational changes.

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### Slide 5: The Dual-Core Approach

- Definition: Compares management and technical innovation within organizations.

- Management Innovation: New practices, structures, strategies, or techniques to achieve organizational
goals.

- Technical Core: Focus on transforming raw materials into products/services.

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### Slide 6: Characteristics of Management Innovation

- Less Frequent: Management changes are less common than technical changes.

- Different Drivers: Triggered by different environmental sectors.

- Process: Follows a different internal process compared to technical changes.

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### Slide 7: Dual-Core Approach in Organizations

- Concept: Organizations have a technical core and a management core.

- Management Core: Focus on structure, control, coordination.

- Technical Core: Focus on production and customer-related processes.

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### Slide 8: Organization Design for Management Changes

- Mechanistic Structure: Suited for frequent management changes.

- Characteristics: Larger size, centralized, formalized.

- Organic Structure: Suitable for technical changes with bottom-up innovation.

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### Slide 9: Research Findings

- Mechanistic vs. Organic: Resistance to top-down initiatives in organic structures.

- Civil Service Reform: Easier in mechanistic organizations.

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### Slide 10: Crisis-Driven Changes in Technically Innovative Firms

- Response: Top-down change processes.

- Examples: Structural changes in FMC Subsea and strategy changes at J. Crew.

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### Slide 11: In Practice: GlaxoSmithKline

- Approach: Small, cross-disciplinary teams (Discovery Performance Units).

- Impact: Improved collaboration and decision-making in R&D.

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### Slide 12: Managing Painful Changes

- Strategy: Fast and focused approach for downsizing and restructuring.

- Employee Morale: Importance of swift and humane implementation.