Backbay Battery Simulation Reflection Report . In Playing

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BackBay Battery Simulation Reflection Report

In playing the simulation of the BackBay Battery, managing the company’s mature technology NiMH and the emerging potential disruptive UC technology, I learned many lessons from analysing the game results, and also from the decision making process during the simulation. I adopted many different strategies in different playing times. The following report will discuss three main strategies I adopted, namely 1. investing in both technologies, 2. nurturing new technology with profit form current health business, and 3. cost leadership strategy respectively.

For the first time I played, I tried to nurture the potential disruptive innovation in UC technology where I invested a great mount of RD
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Hence, it is hard for me to recover in that situation. I only reached the cumulative profit of -10.48M for the first time I played. Reasons contributed to the results are many. Firstly, I did not have clear position at first and did not stick to my long term plan; I managed to innovate in both the NiMH and also the UC technology. External environment changes also affect the sales and profit significantly. For example, the Lithium-ion battery producers made the price deduction influenced the price I offer to my customers. The other difficulty I faced is that customers preference changes are hard to predict. For instance, the customers’ increase of importance of recharge time has led to my investment in desired energy density not generating deserved customer preference. Even worse, the constant price reduction request made my company profit shrink. The challenge is that it is almost impossible for me to innovate in the two area to try to maximum my sales for all the customers. Clayton Christensen’s disruptive innovation theory also explains my failure experience, that is: every company that has tried to manage mainstream and disruptive business within a single organisation failed. The next time I play, I will nurture the disruptive UC technology in an separate entity and try sticking to a long term plan. I should manage the two technologies separately. Another important lessen learnt was that once decide a plan or a strategy, keep sticking to the strategy

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