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Managing Innovation at Nypro, Inc. (a)

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Submitted By rmina
Words 350
Pages 2
Problem: Competition was shifting as traditionally Nypro ahead of others by offering high precision moulds which not only satisfied but delighted the customers. But in recent times completion has caught up and have started similar producing moulds which needed high precision.
Decision: Gordon Lankton has decided to incorporate an innovative product called NovaPlast. But due to the structure of the organization with 21 plants globally he has to take a call as how to introduce the product.
Alternatives:
Lankton has three alternatives in front of him on the issue of leveraging the capability of NovaPlast:
1. Build a new plant employing only NovaPlast machines: The advantage of having all the NovaPlast machines in a single plant is engineering efficacy. The Centralized development would facilitate personal oversight of project. Also the senior management is all in favour. However this option does not align with Nypro’s close-to-customer strategy. It will result into longer delivery time which is the most critical factor determining customer demand and satisfaction in the current competitive market scenario.
2. Install 2-3 machines in each plant: Having NovaPlast machine in each plant will help Nypro in quoting shorter delivery time and capture more market share. It aligns with the company’s close-tocustomer manufacturing policy. There could be however opposition from plant employees to adoption of an unproven technology and standardized employment of NovaPlast in all plants as it happened in the case of MRP2 system. To spur innovation, plants can be allowed to compete for developing best techniques for developing mould design with the new machine.
3. Employ NovaPlast in single plant and move to internal market of innovation to test commercial viability: This option could be implemented very quickly and allow for engineering efficacy. However it will

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