Authors: Ekaterina Gritskevich, Aleksey Konovalenkov, Anna Lisa Kurzbauer, Nikolay Semakov, Tibor Verlics Supervisor: Prof. Dr. Tatjana Samsonowa Daimler AG rep: Fabiola Gerpott

1. Strategic Performance Management of Technological Innovations/ CEMS MIM/ Dec. 3, 2013
Reinventing the Wheel
A Case Study by
Ekaterina Gritskevich | Aleksey Konovalenkov |
Anna Lisa Kurzbauer | Nikolay Semakov |
Tibor Verlics

2. Agenda
1. Company and Product
1. Overview of Daimler
2. The C-Class
2. Problem Statement
1. The New C-Class Ramp Up
2. Encountered Difficulties
3. Analysis of the Current State
1. Strategy Map
2. Knowledge Strategy Framework
3. Knowledge-Sharing Hostility
4. Recommendations
1. Timeline
2. Information Capital Improvements
3. Organization Capital Improvements
4. Human Capital Improvements
5. Impact Assessment (KPIs)
5. Conclusion
2

3. 1. Company and Product
3

4. 1.1. Overview of Daimler
One of the world’s most successful automotive
companies since the birth of the automobile
•Wide product range
•International presence
•Strong position on all markets
•Mercedes-Benz Cars is the most
important division
•Major revenue driver
•Growing market
•Stable revenue growth rate
4

5. 1.2. The C-Class
The best selling product of Mercedes-Benz was
introduced in 2007
Total sales over 1,5 million
Produced in different plants for the different markets
New model is coming in 2014
5

6. 2. Problem Statement
6

7. 2.1. The New C-Class Ramp Up
Its success depends on the transfer of technical
know-how & thus requires sharing knowledge
7
1st stages of network development: direction by Bremen
• Tacit knowledge sharing: international exchanges
• Creation of awareness: different programs
• Information flows: hierarchically via team leaders
• Communication tools: telephone-, video conferences,
Netview, common files (partially in English), workshops

8. 2.2. Encountered Difficulties
Internal communication problems
are aggravated by external factors
8

9. 3. Analysis of the Current State
9

10. 3.1. Strategy Map
How the key intangible assets contribute to
the company’s overall value creation
10
I O H

11. 3.2. Knowledge Strategy Framework
Understanding the internal gaps to be overcome
in order to achieve sustainable advantage

12. 12
3.3. Knowledge-Sharing Hostility
IT alone cannot solve the challenge
of knowledge-sharing
KN Worker: reduction of own CA
Shop-floor level: underestimation of
own knowledge, fear of evaluation,
respect for hierarchy & formal power
KN Worker: acceptance &
“Not-Invented-Here” syndrome
Shop-floor level: perception of
inferiority of colleagues’ solutions
Transmitter
Receiver

13. 4. Recommendations
13

14. 4.1. Timeline
Daimler should improve its intangible
assets sequentially to leverage its CA
14
Information
Capital
• Integrated
communication
platform
Organization
Capital
• Changes in
processes
• Changes in
leadership style
Human Capital
• Trainings
• Onboarding
• Hiring people with
a good command
of English

15. 4.2. Information Capital Improvements
Our recommendation is a state of the art
integrated platform to leverage communication
15

16. 4.2. Information Capital Improvements
Jive is one of the leading solutions for company
social networks, used by many satisfied customers
16

17. 4.3. Organization Capital Improvements
Alignment of business- with knowledge processes:
Creating, sharing, applying, replicating
17
Cross-plant
problem solving
Posting arising
problems to Jive
Involve all plants
in the process
Shop floor
discussions
Involvement of
R&D
Workers’
engagement
Overcome
cultural barriers
“Letter box”
Monitor flaws

18. 4.3. Organization Capital Improvements
Alignment of business- with knowledge processes:
Creating, sharing, applying, replicating
18
Translation
English as Jive
language
Native speakers
in US and SAR
Elimination of
Ger←→Mand
Beijing
cooperation
with US/SAR
‘Process step’
teams
Production steps
division
Close team
interaction
Increased
motivation

19. 4.4. Human Capital Improvements
HR’s role in enhancing knowledge sharing within
the company is crucial for long-term success
19
Teach
IT training
Intercultural
seminars
Communication
trainings
Language
courses
Motivate
Internal
campaign
Promotion of
excellence
Copied with
pride
Rewards

20. 4.5. Impact Assessment (KPIs)
Indicators to measure the level of
activity of proposed improvements
20
Information
•Resources needed
for the system
•No. of documents
uploaded
•No. of updates
•No. of groups
created
•Time to the first
response
•No. of replies
•No. of replies from
other PST
Organization
•Time to implement
the new ideas
•Resources needed
for implementation
Human
•No. of trainings
taken
•No. of employees
travelled
•No. of employees
bringing in new
ideas
•Employees’
evaluation of
knowledge
intensity
•No. of people a
worker cooperates
with

21. 4.5. Impact Assessment (KPIs)
Indicators to measure the outcomes
of proposed improvements
21
Information
Organization
•No. of repeating
complaints
•Time to produce new
knowledge
•Time to solve the
problems
•Best practices
implemented
•Improved speed of
processes
•No .of ideas from idea
box taken to further
consideration
•No. of submissions
sent to R&D as a
result of discussions
Human
•Employee satisfaction
•Efforts to get the
necessary information
•New ideas
implemented
•Communication skills
improvement

22. 5. Conclusion
Daimler should acknowledge the need to address
the problem holistically, and not ”cure symptoms”
22

23. Wheel we reinvent?

24. Wheel we reinvent?
We’ll C !

25. Appendix
25
Adapted from: Kaplan, R. S. and D. P. Norton. (2004). Measuring the strategic readiness of intangible assets.
Financial
perspective
Customer
perspective
Internal
process
perspective
Learning &
growth
perspective