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,
Many batteries can typically only stand around 500 cycles and then need to be replaced. This is a challenge for portable device designers; the first failure mode is often the battery’s inability to hold a charge.  Self-discharge to 50%: The time it takes for a battery to self-discharge. Most rechargeable batteries lose some amount of their charge just sitting on a shelf. This limits their application in devices such as safety equipment that might sit for unpredictable time periods between use.
 Recharge Time: How quickly a battery will recharge. Fast recharge time is usually a consumer benefit, especially for things like mobile phones or music players. A typical NiMH battery can be recharged in two to four hours.
 Price: The cost variance of different battery types. Since small rechargeable batteries tend to come in standard form factors and output voltages, they are a fungible commodity with almost no barriers to substitution. Different battery types might require different chargers, but in general the low substitution costs make batteries a highly competitive commodity, where price is a major factor driving purchase decisions.
Interestingly, battery makers have tended to focus in relatively narrow product segments an d technologies. Disposable-battery makers have typically not become major players in rechargeables,
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