Luxembourg, 30-31 October 2003 CIW CLUSTER T-SHOE INNOVATION PROJECT.

CIW CLUSTERLuxembourg, 30-31 October 2003

T-SHOE INNOVATION PROJECT


T-SHOE INTERACTION WITH AMs

AM CLIPMARKETING PLAN:

To draw a diffusion plan with the key actors in Spain. - Elements of diagnosis for the diffusion strategy:

- The Market- The Actors

- Strengths of the innovation:- Reduce the time to market- Adapted to the need for flexibility of the market (changes every 6

months)- Reduce cost of pre-series- Do not need to change the manufacturing process

- Weaknesses of the innovation:- High investment- It is one machine tool more- Need of training



AM LIFESTYLE AND STRATEG.IST :

IMPROVEMENT CIRCLES:

- Analysis for the setting up and facilitation of Improvement Circles (IC) to analyse and adapt T-SHOE Technology to the technical and cultural requirements of target SMEs and service companies.

- Continuous improvement to cope with changes and innovation.

- To promote the participation of the partners and solve the problems jointly

Luxembourg, 30-31 October 2003

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AM LIFESTYLE - STRATEGI.ST

BUSINESS IDEA:

ClientsSystem

Company Organisati

onalSystem

ProductSystem

To whom, a

nd where

do I offer m

y

products/se

rvices

How do I

organise m

yself

to do itWhat d

o I

offer



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BUSINESS IDEA:

Already existing products and new marketable products can be grouped into two different set of items, according to similarities between them:

1) High-touch products:

a) Consulting not software-linked

b) Fast prototyping

2) High-tech products:

a) Software

b) Consulting software-linked

c) 3D- Digitizer



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BUSINESS IDEA: STRUCTURE 1STRUCTURE 1

Juridical

Organizational

Roles / functions

• Current legal structure will be maintained

• through the same net.

• High-tech products (software, consulting software-linked and Digitizer 3-D) are distributed Average distributor should be bigger than now in order to assure better territory coverage.

• High-touch products (consulting not linked to software, fast prototyping service) are distributed directly by Inescop.

• Different resources will manage high-tech and high-touch products.

• They will operate on a paritary basis being only subject to Inescop CEO.



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++++++ ------• No clear border-line between

business and technical structures (high-touch vs high tech products)

• Lack of dedicated entrepreneurial energies only business-oriented

• Unclear profit and rewarding system

• Inescop-centered decision system, heavy influence of associates

• Risk of inefficient management of a more complex produc-system and distribution net (give-up some products/markets?)

• No clear border-line between business and technical structures (high-touch vs high tech products)

• Lack of dedicated entrepreneurial energies only business-oriented

• Unclear profit and rewarding system

• Inescop-centered decision system, heavy influence of associates

• Risk of inefficient management of a more complex produc-system and distribution net (give-up some products/markets?)

• Less initial costs for structure

• Immediate availability of Inescop equipments, laboratory, tools etc.

• No newco start-up costs

• Less initial costs for structure

• Immediate availability of Inescop equipments, laboratory, tools etc.

• No newco start-up costs



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Juridical

Organizational

Roles / functions

A Newco X will be constituted, whose equity will be owned by Inescop (51%) and by an entrepreneur (49%).

High-tech products (software, consulting software-linked and Digitizer 3-D) are distributed through the same net.

Average distributor should be bigger than now in order to assure better territory coverage.

High-touch products (consulting not linked to software, fast prototyping service) are distributed by Newco X.

Inescop resources will manage High-tech products.

Newco X resources will manage High-touch products.



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++++++ ------• Start-up costs

• Have to co-ordinate Inescop and Newco’s activities, e.g. sell consulting no-softwares to previous software buyers from Inescop.

• Different “energy-degree” due to different structures managing high-tech and high-touch products: Newco X profits = Entrepreneur profits while profits from high-tech sales = Inescop profits.

• Need to introduce adequate rewarding system for high-tech managers...

• Start-up costs

• Have to co-ordinate Inescop and Newco’s activities, e.g. sell consulting no-softwares to previous software buyers from Inescop.

• Different “energy-degree” due to different structures managing high-tech and high-touch products: Newco X profits = Entrepreneur profits while profits from high-tech sales = Inescop profits.

• Need to introduce adequate rewarding system for high-tech managers...

• “Dedicated” resources and structure for high-touch business (consulting ns, prototyping)

• New entrepreneurial energies

• Result-driven organization

• “Dedicated” resources and structure for high-touch business (consulting ns, prototyping)





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Juridical

Organizational

Roles / functions

• A Newco X will be constituted, whose equity will be owned by Inescop (51%) and by an entrepreneur (49%).

• High-tech products (software, consulting software-linked and Digitizer 3-D) are distributed by Newco Y through the same net.

• Average distributor should be bigger than now in order to assure better territory coverage.

• High-touch products (consulting not linked to software, fast prototyping service) are distributed by Newco X.

• Newco Y resources will manage High-tech products.

• Newco X resources will manage High-touch products.

• A Newco Y will be constituted, whose equity will be owned by Inescop (51%) and by an entrepreneur (49%).



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++++++ ------• Highest start-up costs

• Strong entrepreneurial/profit culture may impact on Inescop internal “atmosphere”

• Rivalry between Newco’s (profit centers) and Inescop (assets provider) must be avoided

• Highest start-up costs

• Strong entrepreneurial/profit culture may impact on Inescop internal “atmosphere”

• Rivalry between Newco’s (profit centers) and Inescop (assets provider) must be avoided

• Best focus on different business areas: high-tech and high-touch



• Best focus on different business areas: high-tech and high-touch





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BUSINESS IDEA CONCLUSIONS

Alternative 1 Alternative 2 Alternative 3

Strenghts

This alternative presents the lowest financial risk-degree because it does not imply new capital investment from external sources. Also managing costs are the lowest because high-tech business will be managed by already existing Inescop resources: only business skills to manage high-touch business need to be introduced (new personnel cost for Inescop).

This alternative will allow a better focus on high-touch business thanks to a fully dedicated company that does not have Inescop budget/cost costraints and therefore can invest more in personnel and distribution. The entrepreneurial-result driven organization is likely to prevent to invest in no-return markets and activities.

This alternative is optimal in terms of concentration and focus on the two businesses (high-tech and high-touch). High-tech products, currently sold by Inescop, will be managed by a Newco Y and high-touch products, that require new skills, will be managed by Newco X. The "profit-driven" mentality will be likely to shape both business more efficiently. Inescop role will be clear as service provider to Newco's (laboratory, research, etc.)

Weakenesses

The co-existence of business and technical skills in the same structure does not allow to clearly set the border line between high-touch and high-tech business which instead is recommandable given the difference of the two. The absence of private investments create less stimula to efficient management. Also risk of not exploiting high-touch market potential due to Inescop budget / cost costraints

This alternative has a higher financial risk degree because a new capital investment (Newco X) is required. Also managing costs are likely to be higher than alternative 1 due to "heavier" structure for distribution of consulting no software and prototyping. Risk of conflict between business culture of Newco X and technical culture of high-tech products managers..

This alternative has the highest financial risk degree because of new capital investment (Newco X Newco Y). Managing cost will be the highest cause also high-tech products will be within a separate structure.



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AM LIFESTYLECOLLABORATIVE ONLINE WORKING ENVIRONMENT

www.innovation-matters.net


http://www.innovation-matters.net/








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Useful tool for future projects

Luxembourg, 30-31 October 2003 CIW CLUSTER T-SHOE INNOVATION PROJECT.

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Transcript of Luxembourg, 30-31 October 2003 CIW CLUSTER T-SHOE INNOVATION PROJECT.