Applied Research Case Study
4168
FEBRUARY 19, 2010
CHRISTOPHER A. BARTLETT
HEATHER BECKHAM
Applied Research Technologies, Inc.:
Global Innovation’s Challenges
On June 5, 2006, Peter Vyas paced his office as he grappled with a request for $2 million to relaunch a mini water-oxidation product. Despite two failures to bring this product to market over the past three years, his team was confident this latest iteration was a winner.
For Vyas, general manager of the Filtration Unit of Applied Research Technologies (ART), the request presented a major challenge. He recognized that his team had worked tirelessly to make this project a reality and strongly believed they were now headed in the right direction. But he also understood that the Filtration Unit’s track record of failure during this product’s development had hurt its credibility. If he supported the proposal, he knew he would be putting on the line not only his own personal credibility but also that of the entire unit.
Due to the project's size, final approval would be made by Vyas’s boss, Cynthia Jackson—the newly appointed vice president of ART’s Water Management Division. Jackson was acutely aware of the mounting losses in the Filtration Unit, and she had already devoted a significant amount of time trying to get them back on track. She had confided to one of her colleagues:
When I took on this assignment, I was told my first task was to “fix” the Filtration Unit. The unit only had one revenue-generating product line and had failed to bring a profitable new product to market in five years. It was clear that I was expected to either turn it around or shut it down.
I’m trying to protect them and ensure they get support, but my initial feeling is if they are to survive, they must become much more disciplined. They seem to be making progress on that front, but in all honesty, I sometimes wonder if it is time to cut our losses and initiate a harvest strategy for the unit.
FEBRUARY 19, 2010
CHRISTOPHER A. BARTLETT
HEATHER BECKHAM
Applied Research Technologies, Inc.:
Global Innovation’s Challenges
On June 5, 2006, Peter Vyas paced his office as he grappled with a request for $2 million to relaunch a mini water-oxidation product. Despite two failures to bring this product to market over the past three years, his team was confident this latest iteration was a winner.
For Vyas, general manager of the Filtration Unit of Applied Research Technologies (ART), the request presented a major challenge. He recognized that his team had worked tirelessly to make this project a reality and strongly believed they were now headed in the right direction. But he also understood that the Filtration Unit’s track record of failure during this product’s development had hurt its credibility. If he supported the proposal, he knew he would be putting on the line not only his own personal credibility but also that of the entire unit.
Due to the project's size, final approval would be made by Vyas’s boss, Cynthia Jackson—the newly appointed vice president of ART’s Water Management Division. Jackson was acutely aware of the mounting losses in the Filtration Unit, and she had already devoted a significant amount of time trying to get them back on track. She had confided to one of her colleagues:
When I took on this assignment, I was told my first task was to “fix” the Filtration Unit. The unit only had one revenue-generating product line and had failed to bring a profitable new product to market in five years. It was clear that I was expected to either turn it around or shut it down.
I’m trying to protect them and ensure they get support, but my initial feeling is if they are to survive, they must become much more disciplined. They seem to be making progress on that front, but in all honesty, I sometimes wonder if it is time to cut our losses and initiate a harvest strategy for the unit.