daimler ag - strategic management of technological innovations (cems, gsom spsu)

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Authors: Ekaterina Gritskevich, Aleksey Konovalenkov, Anna Lisa Kurzbauer, Nikolay Semakov, Tibor Verlics Supervisor: Prof. Dr. Tatjana Samsonowa Daimler AG rep: Fabiola Gerpott

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  • Strategic Performance Management of Technological Innovations/ CEMS MIM/ Dec. 3, 2013 Reinventing the Wheel A Case Study by Ekaterina Gritskevich | Aleksey Konovalenkov | Anna Lisa Kurzbauer | Nikolay Semakov | Tibor Verlics
  • Agenda 1. Company and Product 1. Overview of Daimler 2. The C-Class 2. Problem Statement 1. The New C-Class Ramp Up 2. Encountered Difficulties 3. Analysis of the Current State 1. Strategy Map 2. Knowledge Strategy Framework 3. Knowledge-Sharing Hostility 4. Recommendations 1. Timeline 2. Information Capital Improvements 3. Organization Capital Improvements 4. Human Capital Improvements 5. Impact Assessment (KPIs) 5. Conclusion 2
  • 1. Company and Product 3
  • 1.1. Overview of Daimler One of the worlds most successful automotive companies since the birth of the automobile Wide product range International presence Strong position on all markets Mercedes-Benz Cars is the most important division Major revenue driver Growing market Stable revenue growth rate 4
  • 1.2. The C-Class The best selling product of Mercedes-Benz was introduced in 2007 Total sales over 1,5 million Produced in different plants for the different markets New model is coming in 2014 5
  • 2. Problem Statement 6
  • 2.1. The New C-Class Ramp Up Its success depends on the transfer of technical know-how & thus requires sharing knowledge 7 1st stages of network development: direction by Bremen Tacit knowledge sharing: international exchanges Creation of awareness: different programs Information flows: hierarchically via team leaders Communication tools: telephone-, video conferences, Netview, common files (partially in English), workshops
  • 2.2. Encountered Difficulties Internal communication problems are aggravated by external factors 8
  • 3. Analysis of the Current State 9
  • 3.1. Strategy Map How the key intangible assets contribute to the companys overall value creation 10 I O H
  • 3.2. Knowledge Strategy Framework Understanding the internal gaps to be overcome in order to achieve sustainable advantage
  • 12 3.3. Knowledge-Sharing Hostility IT alone cannot solve the challenge of knowledge-sharing KN Worker: reduction of own CA Shop-floor level: underestimation of own knowledge, fear of evaluation, respect for hierarchy & formal power KN Worker: acceptance & Not-Invented-Here syndrome Shop-floor level: perception of inferiority of colleagues solutions Transmitter Receiver
  • 4. Recommendations 13
  • 4.1. Timeline Daimler should improve its intangible assets sequentially to leverage its CA 14 Information Capital Integrated communication platform Organization Capital Changes in processes Changes in leadership style Human Capital Trainings Onboarding Hiring people with a good command of English
  • 4.2. Information Capital Improvements Our recommendation is a state of the art integrated platform to leverage communication 15
  • 4.2. Information Capital Improvements Jive is one of the leading solutions for company social networks, used by many satisfied customers 16
  • 4.3. Organization Capital Improvements Alignment of business- with knowledge processes: Creating, sharing, applying, replicating 17 Cross-plant problem solving Posting arising problems to Jive Involve all plants in the process Shop floor discussions Involvement of R&D Workers engagement Overcome cultural barriers Letter box Monitor flaws
  • 4.3. Organization Capital Improvements Alignment of business- with knowledge processes: Creating, sharing, applying, replicating 18 Translation English as Jive language Native speakers in US and SAR Elimination of GerMand Beijing cooperation with US/SAR Process step teams Production steps division Close team interaction Increased motivation
  • 4.4. Human Capital Improvements HRs role in enhancing knowledge sharing within the company is crucial for long-term success 19 Teach IT training Intercultural seminars Communication trainings Language courses Motivate Internal campaign Promotion of excellence Copied with pride Rewards
  • 4.5. Impact Assessment (KPIs) Indicators to measure the level of activity of proposed improvements 20 Information Resources needed for the system No. of documents uploaded No. of updates No. of groups created Time to the first response No. of replies No. of replies from other PST Organization Time to implement the new ideas Resources needed for implementation Human No. of trainings taken No. of employees travelled No. of employees bringing in new ideas Employees evaluation of knowledge intensity No. of people a worker cooperates with
  • 4.5. Impact Assessment (KPIs) Indicators to measure the outcomes of proposed improvements 21 Information Organization No. of repeating complaints Time to produce new knowledge Time to solve the problems Best practices implemented Improved speed of processes No .of ideas from idea box taken to further consideration No. of submissions sent to R&D as a result of discussions Human Employee satisfaction Efforts to get the necessary information New ideas implemented Communication skills improvement
  • 5. Conclusion Daimler should acknowledge the need to address the problem holistically, and not cure symptoms 22
  • Wheel we reinvent?
  • Wheel we reinvent? Well C !
  • Appendix 25 Adapted from: Kaplan, R. S. and D. P. Norton. (2004). Measuring the strategic readiness of intangible assets. Financial perspective Customer perspective Internal process perspective Learning & growth perspective