Driving Innovation at PAR Springer-Miller (B)
(7 pages of text)
In fall 2009, the new president and chief executive officer of PAR Springer-Miller Systems, based in Stowe, Vermont, is tasked with leading the most significant innovation effort the company has undertaken since its founding in 1984. The company is a leading provider of property management, point-of-sale and spa management systems for high-end hotels, resorts, spas and casinos worldwide, but its legacy products are based on outdated technology and subject to increasing customer complaints; at the same time, the global recession has negatively affected the high-end market. In his first year, the new president has made significant progress in restructuring the organization and shifting its culture to a more entrepreneurial one. He is ready to begin the development of an entirely new product but has to decide on strategy, in particular deciding on the best market on which to focus the new software product and then mapping out a plan to execute its development and launch. How can he elicit a radical innovation from a team of management and employees so culturally rooted in their past accomplishments and legacy products? Should he look for a technology partner and develop the new product in a different location? Can the legacy products be kept up and running long enough for the new product to generate sufficient sales that they can be retired? These are the issues that must be addressed or the company may well face a dire future.
See A Case 9B14C022
This case series is appropriate for both graduate and advanced undergraduate courses covering entrepreneurship, innovation, organizational culture or the human aspects of technology development. Teaching objectives include:
- To explore the challenges of innovating a new product within a mature company.
- To illustrate the innovator's dilemma.
- To engage in market analysis.
- To identify organizational structures and processes that are most conducive to successful innovation within a long-established company.
Professional, Scientific, and Technical Services
United States, Medium, 2009
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