PRODUCT DEVELOPMENT & TECHNOLOGY TRANSFER IN ROLLING STOCK: THE CASE OF INDIAN RAILWAYS
Sanjeev Kishore, A. Sahay & M. Chaturvedi
Management Development Institute
Case Objectives and Use
This case is intended to be used as a basis for class discussion in the course for Strategic Management of Technology and Innovation, in the second year graduate level course. The objective of the case is to impart an understanding of the strategy formulation process in the context of complex engineering products with emphasis on new product development process.
Strategy formulation deals with positioning the business against rivals, anticipating changes in demand and technologies. It matches the strategy to changing markets and technologies and influences the nature of competition through strategic actions such as investment in projects related to technology integration and new product development. Railway rolling stock is amenable to customization; RITES has to follow a strategy aimed at product differentiation along with efforts to reduce costs and improve quality. The main question asked at the end of the case is, “what technology and new product development directions should the protagonist recommend to his Board of Directors for enhancing competitiveness of Indian Railway rolling stock?”
Case Synopsis
The case describes the world market and technology status in the context of Indian Government owned public sector organization RITES Ltd. It also describes the major considerations of the railway rolling stock buyers and the major concerns of the protagonist, J S Marwaha (JSM), Executive Director of the Expotech, a major strategic business unit of RITES.
Complex engineering products are characterized by high product and process technology complexity and high value added during the later part of a long product life cycle. This kind of equipment requires superior level of inter-organizational collaboration as it is not possible for any one organization to work on all aspects of product and process technology. Superior system integration capabilities are critical for success. Both the ability to understand the customer requirements and the ability to collaborate among research, design, operating and manufacturing organizations are critical. The key challenge is to direct the design and development effort towards enhancing the competitiveness of IR rolling stock in the international market.
The authors developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, October 19-21, 2006, San Diego, CA. All rights are reserved to the authors and NACRA. © 2006 by Sanjeev Kishore. Contact person: Sanjeev Kishore, Management Development Institute, FPM Office, Gurgaon, India 122001, +91 9899897555, .