Operations Management

Operations Management Case study (20 Marks) This case discusses the innovation principles and processes adopted by Dyson Appliances Limited (DAL), a market leader in the vacuum cleaner market. Experts felt that product design was a core competency at DAL and the innovative designs of its product had enabled it to command a premium price in a market that was previously known for price discounting. According to analysts, DAL's constant focus on innovation had led to its cornering a market share of 32 percent and 46 percent in the US and UK vacuum cleaner markets in Analysts attributed the success of the company to the innovation principles and processes institutionalized by DAL's founder James Dyson (Dyson). They felt that Dyson was the source of innovation at DAL. He is himself widely known as the inventor of the first bag less vacuum cleaner (DC01, DAL's first product) that took the vacuum cleaner market by storm in the early 1990s.

Since then, he and his team had churned out innovative models of vacuum cleaners that had helped DAL gain a market leadership position. In addition to vacuum cleaners, its other products such as The Contra rotator (a washing machine) and Dyson Air blade (a hand dryer), were hailed by experts as being equally innovative. Analysts felt that DAL's deep set culture of innovation gave it an edge over its competitors. DAL approach to innovation drew inspiration from Thomas Alva Edison's (Edison) step by step approach where he made a single change to the prototype at a time in order to perfect his invention. Inspired by the thoughts of Edison, the engineering and design staff at DAL made a single change to the prototype that led to the launch of an innovative product. The integrated approach to design and development of new products adopted by engineers and design staff at the company had fostered a culture of innovation at DAL.

Answer the following question. Q1. Examine the innovation principles and processes followed by DAL. Q2. Debate how innovation helped DAL emerge as the leader in the vacuum cleaner industry. Q3. Explain how innovation can lead to a competitive advantage and how DAL had developed a core competency in product design.