Interesting read Iulia. It seems like Fab.com tried to follow a “build it and they will come” approach that didn’t work. They tried to build operational capabilities that were not aligned with their initial business model or with their value proposition. I wonder how the European Rocket-Internet sister company ended up doing ? Did they stick with the initial model ?
Great article Steven – always very interesting to learn about how the innovation process is managed in industries, like video games, that are more of an art than science. Bethesda is a great example of how the throughput time of the innovation process is perfectly aligned with the “anticipation”-based business model. The downside of the business model is that they are too dependent on just two products. They therefore do not want to take too much risk with these products and end up doing more of the same. I wonder if this anticipation / quality value proposition could be scaled up in a larger company with more products ? Or would the community of fans not like the company anymore if it becomes a big player ?
Very interesting case: Reminded me of our first HBS case on Narayana Hrudayalaya ! Very interesting to see how the tools and concepts like Just In Time that we have seen in the industrial or electronic industries (e.g. Toyota) in TOM apply to healthcare providers. I am wondering if this model could be exported to developed countries in a viable way ?
Interesting take on one of the largest healthcare companies in the world. I in particular find their innovation through acquisition approach very interesting: It is a great way to be flexible in a fast changing environment, and to acquire and retain talent. Their decentralized approach to integrating the newly acquired companies shows that they don’t acquire for cost synergies but rather for knowledge and revenues. I am wondering however whether the fact of not integrating the operations of the acquired companies will, in the long term, create organizational silos and increase complexity and duplication of work ?