What's the Big Idea?

What’s the Big Idea?

        Michael Collins created BIG with his extensive business knowledge, creative ability, and knack for innovation. According to our textbook Managing Innovation, implementing innovation “is not a single event but requires attention to acquiring the knowledge resources to enable innovation, executing the project under conditions of uncertainty which require extensive problem-solving and launching the innovation into relevant internal or external markets (p.59).” Collins came up with a perfect strategy for this.

        BIG became so successful in the kids market, however, it was time for them to branch out in order to have continuing success. They decided that they would expand into the home and garden industry. One of the problems that BIG was facing was that because of the rise of technology, the demand for children’s toys is shrinking somewhat. Instead of the traditional toys, children are now playing with cell phones, iPods, tablets and computers. The toy market was continuously changing and so BIG needed a new market to be successful in.

        According to the case, BIG intended to use the same successful process in the home and garden industry that was used in the kid’s industry. The problem with that is whether or not that would work. Could BIG successfully expand beyond its initial focus in the kids industry to other vertical markets in order to meet the projected business plan? This is the most important problem that BIG is facing. Although the process may be transferrable from the kids industry to home and garden, there are several variables that may be of concern. Collins does not have the experience or the knowledge in the home and garden market to provide the same intuitive leadership that has provided so much success in the kids industry. The key to process is the leader, BIG was unsure that they could find a leader that would succeed in the home and garden area, as well as Collins did in the kids market. They needed to find the right person to manage the unit just as the kids unit was being managed. Managing Innovation, explains that an important element is the presence of key enabling figures. "Creative structures and clever buildings will count for very little if the organization does not have the right type of leadership...The leaders needs to have the ambition, share in the purpose and role model the desired behaviors (p.145)." 

        The key stakeholders involved in this main problem are the sponsors who provided funding to BIG in order expand into home and garden, as well as Michael Collins. The sponsors and investors are affected because if BIG is not successful in the home and garden market, they basically lost out on all the money that was invested. They are putting their trust into BIG and if they do not succeed, it could hurt all parties involved, including Michael Collins. Collins is putting a lot of time and knowledge into the home and garden market. He has had already so much success, and if his plan works, that will make BIG grow even further into other industries.