Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 10.04.2018
Revision date: 17-May-2018
Length: 14 pages
Data source: Field research
Abstract
This is part of a case series. The bottom-up 'Spaghetti Organization' for pioneering innovation at Oticon was successful growing the top line for almost two decades, but gradually became too fragmented and costly as the company increased in size. The failure of a high cost revolutionary new product launch, together with the appointment of a new president triggered a redesign of the innovation process towards technological innovation in competence domains producing modules that could be assembled into new products designed by brand specific product teams. However, the new innovation process led to frustration and confusion.
Industry:
Size:
Revenues DKK8 billion (USD1.5 billion)
Other setting(s):
1991-2014
About
Abstract
This is part of a case series. The bottom-up 'Spaghetti Organization' for pioneering innovation at Oticon was successful growing the top line for almost two decades, but gradually became too fragmented and costly as the company increased in size. The failure of a high cost revolutionary new product launch, together with the appointment of a new president triggered a redesign of the innovation process towards technological innovation in competence domains producing modules that could be assembled into new products designed by brand specific product teams. However, the new innovation process led to frustration and confusion.
Settings
Industry:
Size:
Revenues DKK8 billion (USD1.5 billion)
Other setting(s):
1991-2014