Sputtering R&D Machine (HBR Case Study and Commentary)

Description

HomeStar's reputation for being "the first, the best, the only" name in appliances is under threat. For the second time in six months, upstart competitor Vanguard has pulled off a market coup: Its retro line of refrigerators, ranges, and dishwashers is a huge hit. Meanwhile, HomeStar's latest big idea--jumbo appliances--is bombing. CEO Hal Marden is chagrined: How did the company lose its edge? Kelly Dowd, HomeStar's head of marketing, blames Charlie Hamad, the company's chief engineer. Charlie is so focused on developing smart appliances--products that can cook, clean, and even shop--that he's lost touch with the changing marketplace, Kelly complains. Global competition is growing, and consumers' tastes are changing. Now, more than ever, churning out new products is critical to HomeStar's success. But Charlie, a 27-year veteran who has spearheaded almost every major technological advance in the industry, pooh-poohs the new, flashy products: "Form over function. Nothing new there but a fancy paint job and higher prices." Hal is torn. Charlie is a hero to him, but what if the market doesn't go for networked appliances? The company simply can't afford to put all its eggs in one basket. What's more, the biggest trade show of the year is just six months away, and HomeStar has nothing new to offer. Vanguard, meanwhile, is making product announcements every quarter. Is it time for Charlie to move on? How can HomeStar get its R&D efforts back on track? In R0208A and R0208Z, four commentators--Ideo's Tom Kelley, Whirlpool's Philip Pejovich, Thayer School of Engineering's Lewis Duncan, and Ealing Studios' John Kao--offer advice in this fictional case study. THIS CASE STUDY INCLUDES BOTH THE CASE AND THE COMMENTARY. FOR TEACHING PURPOSES, THE REPRINT IS ALSO AVAILABLE IN TWO OTHER VERSIONS: CASE STUDY-ONLY, REPRINT R0208X, AND COMMENTARY-ONLY, REPRINT R0208Z.

Keywords

Market positioning Product development R&D