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Simulation: Lithium-ion Battery
Simulation Strategic Innovation Simulation: Back Bay Battery (v2)

Clayton M. Christensen; Willy Shih

Added on Sep 22, 2014, Purchased on Sep 22, 2014, Expires on Sep 22, 2015

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Product #:7015-HTM-ENGFormat: English Web Based HTML
In this single-player simulation, students play the role of a business unit manager at a battery company facing the classic Innovator's Dilemma. Students have to manage R&D investment tradeoffs between the unit's existing battery technologies versus investing in a new, potentially disruptive battery technology. Over the course of eight simulated years, students must address a number of challenges including the timing and level of investment across both mature and new businesses, choices regarding market opportunities and inherent product performance characteristics, requirements to meet constraining financial objectives and constant trade-offs between investment options, all in the context of uncertain market information. The entire simulation can be played in 1.5 seat hours, plus debrief. This second release of the web-based Strategic Innovation Simulation: Back Bay Battery combines the proven learning objectives and storyline of the original with an updated user experience and enhanced administrative features. A Teaching Note contains an overview of theory, simulation screens, and reference materials.
Welcome to the Back Bay Battery Simulation
You are the President of Back Bay Battery, Inc., a $240 million revenue division of a $40 billion consumer electronics manufacturer. Back Bay Battery produces two types of batteries: Nickel Metal-Hydride (NiMH) batteries, which represent 80% of the company's revenue, have been a mainstay of the business. The newer ultracapacitor batteries make up the remaining 20%.
Back Bay Battery sells its batteries to businesses that produce consumer electronics. The three primary markets are:
Portable power tools: Power tools are drills, sanders, electric screwdrivers, and

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