Reference no: EM132239827
Technological Innovation Strategy:
A Case Study in Brazilian Subsidiaries of MNCs
The process of technology strategy formulation in two cases of Brazilian subsidiaries from telecom industry. One company belongs to the equipment layer (EQUIPCOMPANY), and the other to the network layer (NETCOMPANY). In EQUIPCOMPANY, technology strategy and corporate strategy are formulated in conjunction, and the subsidiary is involved in the creation of global products. The main advantage of this approach is the alignment around a common vision and the synergy created among subsidiaries. However, the subsidiaries’ autonomy to create innovations highly adapted to a specific country is limited. In NETCOMPANY, the technology strategy derives from the marketing vision of the future, and the Brazilian subsidiary can define its own strategy, merely requesting parent company approval for implementation. This approach brings agility to decision making and allows its subsidiaries to create innovations highly adapted to local specific needs. Nevertheless, NETCOMPANY faces poor coordination among subsidiaries, possible duplication of work and investment, and a lack of synergy and collaboration on innovation projects.
EQUIPCOMPANY is a global company with revenues of over US$ 15 billion. About 15% of this value is invested in R&D. It belongs to layer I of the Fransman (2002) model, developing equipment and network services for telecom service providers. It has about 60,000 employees, 16,000 of which are involved in research and development, including individuals from the customization team, responsible for adapting its solutions to specific customer needs.
EQUIPCOMPANY has a matrix organizational structure. There are three business units, each responsible for a set of products and services. Moreover, the company is structured in seven global regions, each with a corresponding regional director. Therefore, it is very common that an employee reports to a regional head and to a head of the business unit.
(Read the full case study in attached file and give your answers)
1. Review the case study and write a conclusion in your own words. Conclusion should include your opinion and suggestions regarding implementation of Technological Innovation Strategy in concerned companies.(250-300 Words)
2. Based on your case review; give some more ideas and possible approaches for improving the concurrent engineering process or new product development process (concerned to telecom industry).(200-250 Words)
3. Explain various methods and approaches for collecting facts and figures for evaluating risk in new product development process. Moreover, how companies use information technology as tactical resource for managing issues in organization.(300-350 Words)