X-Rite

Management of Technology and Innovation Case Study

Presented By:
Aditi Agarwal Anjana Carri Prashant Anand Hemant Bhojwani Safaee Mahyar

About X-Rite
Founded in 1958 by Lars Siegler engineers

global leader in color science and technology.

Began manufacturing X-Ray marking tape.

In 1990, X-Rite began to shift its emphasis to the field of color measurement.

About X-Rite
develops, manufactures, markets and supports innovative color solutions through measurement systems, software, color standards and services.

helps users get color right the first time and every time.

range of industries served- printing, packaging, photography,

graphic design, video, automotive, paints, plastics, textiles, dental and medical

 spectro-colourimeters manufactured. Users included graphic arts

1989

firms.

multi-angle spectrophotometer- which could measure the colour

1991

of metallic paint for customers such as auto manufacturers and body shops MiX-Rite- for use in paint stores that could formulate precisely blended paints to match the colours of wallpaper or fabrics in a home

1992

1993

open its first foreign office in Cologne, Germany A new subsidiary, X-Rite GmbH, was formed to run its German operations

 A round of acquisitions starts with purchase of H. Miller Graphic Arts of England.

1994

introduced the Digital Swatchbook, which could analyse a colour in the real world and then transfer it to a computer screen

the purchase of light measurement device maker Labsphere, Inc. of North Sutton, New Hampshire. The company also bought a second manufacturing site in Grandville, across the street from its main facility

1995

Co-founder Ted Thompson retires;

2001

Dental colour matching system (ShadeVision) are unveiled.

X-Rite products

Other uses of X-Rite products

Fabric/ textile manufacture Dye/ Ink manufacture

In food industry- colouring agents

Plastics industry- e.g. manufacture of handset casings Cosmetics industry- lipsticks, nail paints

Diagnostics

Effect of changing customer base on the OS

Effect of changing customer base on the OS

with 47 of the firm's 203 employees working as engineers- had swelled the ranks of its employees to more than 400 in Grandville and nearly 100 at the former Colorgen facility near Boston, Massachusetts, and its German and newly opened Hong Kong offices by 1994. reorganization of X-Rite into four business units - imaging; printing; coating, plastics, and textiles; and new business development.

By 2001, the company announced another restructuring and layoffs of almost 10 percent of its workforce.

Effect of changing customer base on the OS

Engineering activities :
RD&E activities intensified.

Additional research investments were made at few of the acquired

companies, and at the Company for the development of the ShadeVision dental shade matching system. In addition to the RD&E, costs were incurred to develop new software products

Effect of changing customer base on the OS

Production and Operations Procedures:
Would require a change as a completely new device has to be manufactured- accommodate for the new design A 30,000-square-foot expansion of the company's Grandville facility was completed in late fall to help fulfill orders for X-Scans and the company's successful line of spectro-colourimeters Streamlined to help keep cost of the devices low. opened manufacturing facilities- Grandville, Germany, Switzerland, France and Italy.

Effect of changing customer base on the OS

Financial systems:
Exposed to more risk and cost of research than its followers- thus systems would change to minimise such risks. Allocation of monetary resources would change
brought in investment bank Broadview International LLC as a consultant on acquisitions and investments. The company formed a new subsidiary, XR Ventures, to facilitate this activity.

Effect of changing customer base on the Organizational Process:

Acquisition of Technology:
X-Rite also signed a two-year, $10 million deal with DuPont to supply it with spectrophotometry instruments

Designs:
Making devices more user-friendly, aesthetically appealing hygiene concerns mandated that the part be either disposable or capable of being sterilized- for medical markets ; FDA guidelines to be considered easy to interface with computer allowing real-time measurements

the purchase of light measurement device maker Labsphere, Inc. of North Sutton, New Hampshire. purchase of the assets of Colorgen, Inc., a bankrupt maker of colour matching equipment.

Effect of changing customer base on the Organizational Process:

Integration and exploitation of technology: Manufacturing:
different designs require different manufacturing procedures A 30,000-square-foot expansion of the company's Grandville facility However, due to immense product lines and the large order volumes, started outsourcing key components Procedures adopted to allow competitive pricing of the products

What happens when new uses for old technology emerge?

Introduction of new technology often present complex opportunities & challenges for organization, leading to

changes in managerial practices & emergence of new

organizational forms. Competition products ( innovation, product

development)
Customer loyalty Able to enter a new market with strength & credibility

What happens when new uses for old technology emerge?

What happens when new uses for old technology emerge?

Accuracy

Large amount of production

Less time consuming Employees efficiency increases ( well trained employees) Sales growth Employee satisfaction

What happens when new uses for old technology emerge?

Reduce production and distribution cost.

Better utilization of resources

Better quality production with different variation Organizational changes- new products & processes as well as new market as factors of Creative destruction Overall business growth which lead to more acquisition.

What happens when new uses for old technology emerge?

There is always a risk of product imitation by the

competitors. Because of this companies have to be fast in

launching their product and make profits for longer period before competition kills their products

References:
http://en.wikipedia.org/wiki/Technology_broking Guvenis, M.M.,(1989). The influence of technological innovations and organizational change on facility planning. Retrieved from , http://www.engr.psu.edu/ae/cic/publications/TechReports/TR_00 9_Guvenis_1989_Influence_of_technological_innovation.pdf Babyak, Richard J. 2003. Visionary design. Appliance Manufacturer, 51 (1): 24.

DaCosta, V. 2004. The color of white. RDH, 24(11):34.

http://www.fundinguniverse.com/company-histories/x-rite-inchistory/