Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case
-
Reference no. IMD-3-1979
Published by: International Institute for Management Development (IMD)
Originally published in: 2008
Version: 28.03.2008
Length: 25 pages
Data source: Field research

Abstract

This is part of a case series. The (B) case describes the specific steps that the LEGO Group took to improve innovation. They include: (1) restructuring the company to make responsibility for each part of the business clearer. Each toy line was given responsibility for its own sales and profitability, and the Concept Lab, which before had lacked focus, was separated and charged with developing new ideas that were 'obviously LEGO but never seen before'; (2) the definition of innovation was redefined through the LEGO innovation matrix; (3) a new stage-gate process was implemented; (4) a new way of working with external inventors and complementary product producers was integrated into the structure and process; and (5) users were involved in the development of new toys, in particular the new generation of LEGO Mindstorms. Through these and other activities, the LEGO Group dramatically improved its performance, returning to profitability in 2005 and achieving very healthy profits in 2007.
Location:
Industry:
Size:
DKK9.5 billion (EUR1.2 billion)
Other setting(s):
2003-2007

About

Abstract

This is part of a case series. The (B) case describes the specific steps that the LEGO Group took to improve innovation. They include: (1) restructuring the company to make responsibility for each part of the business clearer. Each toy line was given responsibility for its own sales and profitability, and the Concept Lab, which before had lacked focus, was separated and charged with developing new ideas that were 'obviously LEGO but never seen before'; (2) the definition of innovation was redefined through the LEGO innovation matrix; (3) a new stage-gate process was implemented; (4) a new way of working with external inventors and complementary product producers was integrated into the structure and process; and (5) users were involved in the development of new toys, in particular the new generation of LEGO Mindstorms. Through these and other activities, the LEGO Group dramatically improved its performance, returning to profitability in 2005 and achieving very healthy profits in 2007.

Settings

Location:
Industry:
Size:
DKK9.5 billion (EUR1.2 billion)
Other setting(s):
2003-2007

Related