INNOVATION AT THE LEGO GROUP

Group 6:
Abhimanyu Kakkar
Anjali Mahajan
Gauri Patil
Shagun Parmar
Shyam Dahiwal
How to manage and reward outside inventors to produce good exoforce toys?

Award external inventors

- Incentivize based on the sales and customer rating of toys
- Opportunity to be part of LEGO based on design success

Manage external inventors

- Establish proper channels of idea exchange like Design DNA
- Designate LEGO personnel to keep track of progress
Pay inventors or users?
-Pay inventors for the ideas
- User are already rewarded through usage, testing and contest
Usable and Creative Products
- Clear communication of required design characteristics
- Prototypes to be rated by sample users
 How to manage and reward outside producers of complementary products such as T-shirts, games, movies, etc?

How to Manage How to Reward

Incorporate into LDP Program Revenue Sharing model

This will enable to incorporate the real spirit behind the % of revenue would be shared
characters ensuring that everything “came from the
same place”

Productive Feedback Loop and contract mechanism

Brand Visibility
Feedback about the products to be given to LEGO
Provide direct visibility to outside producers
Concerns of producers to be addressed by LEGO
on LEGO websites, make them sponsors for
Contracts to ensure for performance standards
LEGO events
How to reward mindstorm users to produce the next generation toy?

• Proposition: “The power to build the future with your own hands”
“You said it, we heard it”
“Your participation to revolutionise what you love”

Monetary Benefits:
• Every successful innovative idea during testing of beta units (with whom NDA is signed) shall earn points. If
cumulative points exceed 10, person shall earn cash prizes or scholarships in case of students who want to
pursue education in technology
• If Mindstorm users come with an idea that increases the functionality of the kit by 50%, they shall earn a part of
revenue from sales of the kits in that year
• Presents on occasions (like Christmas) like Lego-kits etc

Non-Monetary Benefits:
• Recognition and publicity on Lego boxes sold
• Opportunity to collaborate with designers(or Concept Lab), (in the forms of internships) directly
• Sending greeting cards on occasions to make them feel valued in the Lego Universe admirers
• Volunteers shall be recognised in terms of certificates/ momentos and shall be featured on company’s website
How would you restructure the product development process.

Timeline People Involved Tasks

Feb Team level, PMs Identification of opportunity(through Voice of Customer/ market trend analysis)* in specific toy lines through
internal brainstorming, and placement of same on the Innovation Grid
May Team level, PMs • Each idea(design) is supported by financials, sales revenue expected, competition pressure, development
time (preliminary analysis)
• Shortlist the most promising for P0 gate presentation
P0 June Team Managers, Top managers & • All the teams shall outline the concept, the need identified, revenue expected, budget needed
business head(possibly design expert) • Some of the projects shall be funded and selected to develop among the ideas presented by the different
teams
• Selection shall be constrained by the budget decided for the year
• Other ideas can be developed further for next year’s P0 presentation
• Focus on novelty, manufacturability and popularity amongst customers while selecting design
P1 September Team Managers, Top managers & • Progress report on the projects, how is it in accordance to the promise timelines, health of the project,
business head(possibly design expert) any help required from senior managers
• First prototype unveiled, any risks expected in terms of design imitability in future or wrt quality and
potential solutions to the same in terms of any patents or complementary resource development etc
• How has the industry structure shaped? Can it be changed? Is there a future threat expected
P2 December Team Managers, Top managers & • Prototyping of the design (which shall be frozen by the end of this gate)
business head(possibly design expert) • Manufacturability of the design and the probable costs (if any other machine needs to be purchased or
outsourced)
• Technology used – Is it ready to sell, can’t be hacked? Is there a need to involve the customers in terms of
beta testing after NDA
• Budget released in this phase for initial prototyping**
P3 January Team Managers, Top managers & Final meet on the health of the product, to check if some risks in project have appeared / and how to manage
business head(possibly design expert) them.
If everything fine, release budget for mass manufacturing, employ distribution strategy and allocate resources

*Market research to have been done in last quarter of previous year

** Prototypes shall be more and more refined as the gates progress