Applied Research Technologies Inc.

GROUP 5
Amol | Himani | Rajat | Rameshwar | Saurabh | Srujhana
 Company Overview & Case Brief
3-4

Best Innovation Practices At ART

5

Agenda Challenges Faced & Solutions

6

Tension in Culture
7-8

Recommendation
9-10
Company Overview
2007 2008 2009 2010 2011
Vision: We aim to change the world through innovation, and
to grow our place in it through entrepreneurship. Sales Forecast $ 5.45 $ 7.08 $ 8.86 $ 10.89 $ 13.07

Operating Income 10% 15% 20% 20% 20%

 ART was one of the technology world’s emerging giants Forecast

KEY STAKEHOLDERS
 Grown through Mergers & Acquisitions of numerous
technology-based industrial companies Management
Division Cynthia Jackson
 Acquired in the LBO buyout waves of the 1980s and 1990s Manager
Filtration Unit Peter Vyas
Sales &
 BY 2006, ART consisted of a portfolio of about 60 business units Marketing Lead Janice Wagner

The major division in the

corporation
Industrial
Healthcare Automation Energy HVAC

Group 5 Applied Research Technologies Inc. 3

Case Overview
FILTRATION UNIT
A persistent issue in the filtration unit.
Launched twice in the market-
unsuccessful, working on 3rd prototype.
ART INC.
World’s emerging technology giants,
M&A of numerous technology-based
industries.
CULTURE, PRACTICES &
MANAGEMENT
High level of decentralization, experts in
one division served as advisors in another,
new VP for the water division.
MINI OXIDATION’S 3RD LAUNCH
ATTEMPT
Phase 1: Product Concept & Market Analysis WAY FORWARD
Phase 2: Technical Specifications & Prototype Tensions, Challenges, and
Phase 3: Business Plan Recommendations
Best Innovation Practices at ART
Funding( The company’s R&D spending was double the rate for
U.S. industrial companies

TINKER TIME
ART encourages employees to spend a half day each
1 week experimenting, brainstorming, and thinking outside
the box.

PROOF OF CONCEPT
For promisable ideas, readily funds are available for beta batch
production.

Group 5 Applied Research Technologies Inc. 5

 Discuss the innovation challenges related to the project.
How well have these been managed?
1st Prototype: 2nd Prototype:
Application: Safe drinking water for developing Application: Safe drinking water for military & NGO
nations disaster relief
Challenges: Consumed too much power, frequent
Challenges: Detectable odor which was unacceptable battery replacement
to funders

3rd Prototype: Challenge Solution

Application: Residential Irrigation
1. Change in application from Use case change, lowered
Mini-Oxidation System (RIMOS) –
potable water to wastewater reuse disinfection quality, less power
Wastewater reuse for landscape consumption
irrigation
2. Delay in technical design Formal schedule with 2 weeks of
extra testing time

Group 5 Applied Research Technologies Inc. 6

 What are the tensions in a culture of innovations and
learning? How could these be minimized?
Tensions in Innovations & Learning culture
1. Expectations of results, fear of failure
2. High investment in R&D
3. Reduction in motivation of team members
4. Low idea turn around time, Time & Resource
constraints
5. Decision making, rejected idea opportunity cost
6. Burnout & Overload of ideas & creativity
Group 5 Applied Research Technologies Inc.
Minimize solutions
Open Culture, encouraging ideas even if they don’t
achieve success. (Worthy Attempts)
Learn from previous prototypes, Feasibility studies
Polymorphism of ideas, Keeping all stakeholders
informed
Stay Updated (Fast Track Pipeline)
Fail fast & better market research (Proof of
Concept)
Healthy work-life balance, Diverse Employment
7
 What are the tensions in a culture of performance and
profits? How could these be minimized?

Tensions in Performance & Profits culture Minimize Solutions

1. Resistance to change Uniformity & better designed change processes

2. Risk Aversion Mergers & Acquisitions, investment in varied levels of risks
3. Neglect towards Environment Concerns Stakeholder engagement, externality & risk assessment

4. Strict adherence to SOP Have scope for innovation & creativity in different SOP

Group 5 Applied Research Technologies Inc. 8

Recommendations
PETER VYAS –
Performed proper
due diligence on
the background of
All his eggs are in the products. Continued the ART
one basket! – Culture - “No shame in
“Risky Strategy failure when stretching
proposition” May be forced to move for big objectives”
forward due to his
connection with the mini-
oxidation unit –
Capitalize on HAS NO OTHER
knowledge gained OPTION
from the first two tries Did not review
– due diligence after
Not aligned with the 1st and 2nd trials
energy customer base. The technology matured
after 2nd attempt.
1. Differentiation
advantage.
2. First mover advantage
Recommendations
CYNTHIA JACKSON’S –

She will be able to capitalize Initial complaints – From her perspective,

on the success, yet if it fails it failures were due to Vyas might be seen as
will be her first failure in this technical mishaps, not being locked on one
role market research idea.

Focus on marketing forced her to

make revisions and fine-tune their
planning
1. Cutting cost – focus on one of two
1. Approve the last attempt before scrapping the unit
products (choose RIMOS)
2. Driving for cross-R&D cooperation 2. Request that the Filtration Unit be transferred
3. Operating income payoff is within under HVAC
3- 4 years 3. Or create a joint marketing agreement so that
• Pushed for a stress test – she
HVAC gets payback?
received pushback from
marketing
• Acceptable for these forecasts
Amol Wadhone Himani Gola Rajat Dalai​

Thank you!

Rameshwar Shi Saurabh Mohite Srujhana P