Managing Technological Changes

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CASE STUDY Analysis – “Managing Technological change: A Box of Cigars for Brad”

Company Background and Environmental factor: Diversified Manufacturing Corporation (DMC) is a technology based company into manufacturing construction and medical equipments and recently started manufacturing oil-drilling equipments. They have the superior product line and excellent cost structure in the current market. Past five years the sales is 120%, Profits up 80% more success and very few failures. The company has the clean competitive edge and had winning product lines with their electromechanical control for the equipments as it was best and reliable. Over the years they cost reduced and priced competitively and resulted on sales. The company is still leader in the industry with functional skills and adequate technical capabilities.

Players: VP manufacturing Miles Atkinson became CEO of DMC 5 years ago.

Brad Youngman VP for corporate development in DMC helps the company set a clear strategic direction, VP finance Cutler Sims, VP R&D Jim Pasinaro, Sales head Sid Rogers,

General counsel Seymour Crawford and VP Manufacturing Horace Bender.

Recent Event: DMC still using old but reliable technology like electromechanical controls for their heavy earth movers while their competitor Focused Industries (FI) are in with new solid-state devices and integrated circuits into their heavy equipment controls systems.

Communication in DMC between R&D and Sales department are not on proper sync, as the R&D believe their electromechanical system is the reason for success till date while the sales team predicted market for electromechanical has dried up and their competitor FI with new technology may take up the market soon

Central Issue: Managerial problems in DMC that has lost strategic control of technology and its competitive edge by becoming insulated from technological realities and by allowing important technological decisions to be...