The Dim Lighting Case Analysis

...

- Jim West is worried that if he doesn’t go forth with the new idea, he may lose all the hard work of assembling his Research and Development department.

- Other departments feel threatened by Spinks. In addition, Jim West feels he is under pressure to improve the profit margins immediately

- The authors mixed these two points of reference to develop a force field diagram, based on Kurt Lewin's classic force field analysis technique According to Wernsing & Luthans (2008). It illustrates the drivers of, and resisters to organisational change (see Figure 2 & Figure 3). Force field analysis provides a framework for looking at the primary factors of positive organisational behaviour that influence organisational change in terms of PsyCap (change enabling forces) and resistance (change hindering forces).

[pic 2]

FIGURE 2: The social exchange theory at work in the organisation

[pic 3]

FIGURE 3: Drivers of resisters to change in organisation

---------------------------------------------------------------

- Technical:

(http://it4b.icsti.su) In today's knowledge-driven world, new technologies appear at shorter and shorter intervals. "Knowledge constantly makes itself obsolete, with the result that today's advanced knowledge is tomorrow's ignorance", stressed Peter Drucker. Innovation thus should be not a one-off event, but a continuous response to changing circumstances

- The technological aspect of this case is in the fore-front. The Dim Lighting Company’s current products are at the end of their lives. Continuous innovation is necessary because of the high-moving speed of technology.

- Both the Production Manager and Spinks want money to upgrade technical aspects of the company. Below figure indicates.

- Managerial:

- The General Manager, Jim West, has his career riding on this next year with the company. His decisions and suggestions to the group vice president will all have an effect on the company as a whole.

- Jim West feels caught between being innovative and trying to improve the bottom line immediately.

- Sustainable innovation system doesn't not just help to solve a problem but creates a new capacity, opening up opportunities for further innovation.

[pic 4]

FIGURE 4: Innovation: Industrial Enterprises versus Knowledge-based Enterprises

- Goals:

In establishing corporate goals and objectives, consider using management to get a group consensus. Available group decision-making techniques vary in degrees of formality and you can use them to facilitate this process. Techniques range from simple brainstorming to more sophisticated methods. The end result should be a clear definition of what a corporation views as its goals and objectives. When defined, these goals and objectives can then be built into the decision process.

- In the case of Dim Lighting corporate headquarters does not seem to value risk taking and moving into new projects. If their rejection of the lighting proposal is indicative of their decisions, the company as a whole may become entrenched in old technology.

- ALTERNATIVES

- Conduct research on micro-miniaturization (can be defined as a reduced to or produced in a very small size and especially in a size smaller than one considered miniature). In the case of Dim Lighting Company, the idea of taking a chance without knowledge of the new products success is frightening.

Advantages

Disadvantages

- Low cost (250, 000 / year for two years)

- Competitive advantages

- Long-term benefits

- Avoid global redundancy

- New technology found that greatly reduce energy requirements

- Low productivities

- Uncertain results

- High risk

- Length of time

---------------------------------------------------------------

- Jim West must explore the recommendations of the Accounting Department (presented by Carol Preston on her financial analysis about the proposed project) and Manufacturing/Production Departments (Bill Boswell on his presentation emphasized that there is a need for new machinery for their current production line).

- Before making a budget decision, West should contact corporate office to see if additional funds are available for R&D. Spinks’ project would have a long-term effect on entire industry and possibly the parent company would contribute to the R&D project.

- If additional funds are unavailable, the budget committee needs to make some compromises and come to a consensus-it should not be an all-or-nothing proposition. Funds should be allocated for both R&D and for upgrading essential equipment.

- West should also ask the accountant, Preston, to make a three-tiered analysis of the project: (1) best-case scenario, (2) worst-case scenario, and (3) probable scenario.

- Discard the micro-miniaturization of lighting sources project and invest on the improvements of the current equipment by purchasing new machinery.

Advantages

Disadvantages

- Quick productivity

- Easy to manage

- Very direct payback

- High cost (1,000, 000 USD)

- Maintaining cost

- Reduce workforce and making global redundancy

- Social and global environment affected (pollution)

- Failed to move into new technologies, the firm would be competitively obsolete

---------------------------------------------------------------