Strategic Management of Technology

TM583 Course Project: STRATEGIC MANAGEMENT OF TECHNOLOGY

June 16, 2012

Section 1 - Strategy

TCO F - Given an organizational and industry context identify and suggest a deployment strategy that will facilitate the success of a technologically driven organization.

Exide Technologies was founded by W.W. Gibbs in 1888 and was then called Electric Storage Battery Company. Gibbs purchased the ideas and patents of inventor Clement Payen to make the storage battery a commercial product. Gibbs targeted electric lighting companies so they could use the storage batteries to provide services to their customers. Today, Exide has advanced to serving the complex stored energy needs of customers around the globe, providing services and systems that enhance vehicle performance and fleet utilization as well as those that reduce risk of temporary interruptions. Exide's strengths consist of its global footprint and melding of two significant bases of experience and technology in the transportation and industrial battery industry.

Exide Technologies has operations in more than 80 countries, and the products and services to meet the worlds' stored energy needs in transportation and industrial markets. With more than 120 years in the battery business, Exide has the experience, advanced research and development capabilities, and knowledge to provide solutions to various stored energy requirements. With countless contributions to the growth of technology, the company's story reflects the spirit of innovation at its best. They leveraged their core competencies of stored energy by assimilating the design and processes of competitors, and acquiring those that augmented its competencies to produce a viable company that has stood the test of time. However, during their hard times, they fumbled in so many ways which led to appointing former president and vice chairman at Chrysler Corporation, Robert A. Lutz as Exide's Chairman of the Board in 1998. He reorganized the worldwide management structure into Global Business Units and sold off non-battery units to allow the company to concentrate on its primary business.

Looking towards the future, it was apparent that they needed a new deployment strategy for exploiting technological innovation and leveraging core competencies for unrelenting competitive advantage. The solution at the time, emanated in the form of acquiring GNB Technologies, a leading North American supplier of automotive batteries. Conversely, two years later Exide filed for bankruptcy after compiling a debt of $2.5 billion as a result of the acquisitions, but their determination to be the best stored energy provider enabled them to dig their way out. They facilitated this by increasing its annual R&D spending by 50% in the subsequent years, including $10M invested in upgrading