Solution 2
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Back Bay Battery Simulation
Nathan J. KerrHeider College of Business- Creighton UniversityITM 738Back Bay Battery Simulation:1. Briefly describe a challenge you faced in each scenario.The challenge I felt the most was forecasting of sales numbers. Although I should haverealized early on, price reductions actually influenced the model. When dealing withdisruption, you just do not have the forecasting models that can predict proper price points.2. Identify at least two strategies that you used in addressing the challenge described above.Identify one strategy that worked and one strategy that did not work.To finally get a handle on profits/ losses/ etc., I initially raised the price of the ultra-capacitor to minimize the losses and to set a price-point different from the default set bythe model in 2012. This allowed me to devote a minimum of 3 million per year in processimprovements for price reductions of $0.50 per year. The remaining funds went to energydensity research until the breakthrough. I then shifted money to self-discharge for ultra-capacitors as that was the second desire from customers. No money went to NiMH untilself-discharge for ultra-capacitors had breakthrough and then I shifted money to processimprovements for NiMH so as to keep prices low and milk the rest of that market.3. Based on what you experienced in this simulation as well as what we have covered inclass, identify at least one specific piece of advice would you give to an innovative CEO.Your response should be clearly related to the readings and any readings referred toshould be cited.My biggest piece of advice is to forecast five and ten years out in order to identify theneeds of the customer and potential disruptors. Find unresolved problems from the customer’s stand- point and resolve them without overshooting. Use “associationalthinking” by finding similar solutions to other problems to apply to your niche.
(Anthony,2012)4.
What did you learn from the
Back Bay Battery Simulation
Nathan J. KerrHeider College of Business- Creighton UniversityITM 738Back Bay Battery Simulation:1. Briefly describe a challenge you faced in each scenario.The challenge I felt the most was forecasting of sales numbers. Although I should haverealized early on, price reductions actually influenced the model. When dealing withdisruption, you just do not have the forecasting models that can predict proper price points.2. Identify at least two strategies that you used in addressing the challenge described above.Identify one strategy that worked and one strategy that did not work.To finally get a handle on profits/ losses/ etc., I initially raised the price of the ultra-capacitor to minimize the losses and to set a price-point different from the default set bythe model in 2012. This allowed me to devote a minimum of 3 million per year in processimprovements for price reductions of $0.50 per year. The remaining funds went to energydensity research until the breakthrough. I then shifted money to self-discharge for ultra-capacitors as that was the second desire from customers. No money went to NiMH untilself-discharge for ultra-capacitors had breakthrough and then I shifted money to processimprovements for NiMH so as to keep prices low and milk the rest of that market.3. Based on what you experienced in this simulation as well as what we have covered inclass, identify at least one specific piece of advice would you give to an innovative CEO.Your response should be clearly related to the readings and any readings referred toshould be cited.My biggest piece of advice is to forecast five and ten years out in order to identify theneeds of the customer and potential disruptors. Find unresolved problems from the customer’s stand- point and resolve them without overshooting. Use “associationalthinking” by finding similar solutions to other problems to apply to your niche.
(Anthony,2012)4.
What did you learn from the