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    Managing Innovation at Nypro, Inc. (A)

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    GibreelChamcha
    This document discusses Nypro's adoption of a new molding machine called NovaPlast. It presents 4 alternatives: building a new plant, scattering NovaPlast across existing plants, focusing on one plant, or not using it. The recommendation is to focus on making NovaPlast successful at a single plant first to gather data before wider deployment. Key perceived issues are Nypro facing shifting competition requiring more speed and variety, and ensuring innovation while maintaining consistency across decentralized plants.

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    Managing Innovation at Nypro, Inc. (A)

    Uploaded by

    GibreelChamcha
    462 views13 pages
    This document discusses Nypro's adoption of a new molding machine called NovaPlast. It presents 4 alternatives: building a new plant, scattering NovaPlast across existing plants, focusing on one plant, or not using it. The recommendation is to focus on making NovaPlast successful at a single plant first to gather data before wider deployment. Key perceived issues are Nypro facing shifting competition requiring more speed and variety, and ensuring innovation while maintaining consistency across decentralized plants.

    Original Description:

    Innovation at Nypro

    Original Title

    Nypro

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    This document discusses Nypro's adoption of a new molding machine called NovaPlast. It presents 4 alternatives: building a new plant, scattering NovaPlast across existing plants, focusing on one plant, or not using it. The recommendation is to focus on making NovaPlast successful at a single plant first to gather data before wider deployment. Key perceived issues are Nypro facing shifting competition requiring more speed and variety, and ensuring innovation while maintaining consistency across decentralized plants.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    462 views13 pages

    Managing Innovation at Nypro, Inc. (A)

    Uploaded by

    GibreelChamcha
    This document discusses Nypro's adoption of a new molding machine called NovaPlast. It presents 4 alternatives: building a new plant, scattering NovaPlast across existing plants, focusing on one plant, or not using it. The recommendation is to focus on making NovaPlast successful at a single plant first to gather data before wider deployment. Key perceived issues are Nypro facing shifting competition requiring more speed and variety, and ensuring innovation while maintaining consistency across decentralized plants.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 13

    Managing Innovation

    at Nypro, Inc. (A)


    Dongyuan Zhu
    Xingxing Liu
    Ye Wang
    1

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

    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.

    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

    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 Nypros 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

    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

    11

    Reference

    Clayton M. Christensen, Michael Overdorf. Meeting the


    Challenge of Disruptive Change. Harvard Business
    Review Article. Mar 1, 2000.

    12

    12

    Thank you!

    Questions?

    Dongyuan, Xingxing & Ye, March 10, 2008.

    13

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