Untangling Spaghetti: How Innovation Changed at Oticon (A)

Case Solution

Soren Stranne, Anja Maier, Paul Strebel
IMD ()

The bottom-up “spaghetti organization” for breakthrough innovation at Oticon worked for nearly two decades to drive sales, but gradually became too fragmented and expensive as the company grew. The failure of a costly launch of a revolutionary new product, together with the appointment of a new president, led to a reshaping of the innovation process towards technological innovation in areas of competence that produced modules that could be assembled into new products designed by product of Mark. equipment. However, the new innovation process generated frustration and confusion. Learning objectives: Manage the change in the innovation approach. Design of an innovation process that adapts to the development of technology and the size of the company, in particular the tension between bottom-up creativity and the development of an integrated product portfolio that takes advantage of the changing needs of the market. Understand the importance of aligning the organization and culture to support change (applying the Galbraith Star model).

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