Rethinking Innovation and Design for Emerging Markets: Inside the Renault Kwid Project

Rethinking Innovation and Design for Emerging Markets: Inside the Renault Kwid Project


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Rethinking Innovation and Design for Emerging Markets: Inside the Renault Kwid Project by Christophe Midler, Bernard Jullien, Yannick Lung

The authors have put together a fascinating narrative of the creation process of one of the most successful example of frugal engineering in recent years. They bring out insightful details of what managerial, organizational and technological pathways were taken to come up with a disruptive innovation that has the potential to change the entry-level automobile market in India and other emerging markets. The book significantly deepens and extends the knowledge of disruptive and reverse innovation, as well as of strategic alliance management. The book keeps the reader captive and is a must read for all who have an interest in innovation.

Product Details

ISBN-13: 9781138037205
Publisher: Taylor & Francis
Publication date: 05/17/2017
Pages: 178
Product dimensions: 6.10(w) x 9.40(h) x 0.60(d)

Table of Contents

About the Authors ix

Foreword xi

Introduction 1

Part I Incredible Kwid 5

Chapter 1 Upstream Exploration: April 2010-October 2011 7

1.1 A Growth Strategy with Echoes of 1995 7

1.2 The Need for Coordination Within the Renault-Nissan Alliance 8

1.3 The Key Role of an integrated Exploratory Approach: LCI 11

1.4 The Alliance Converges on a Strategic Scenario 14

1.5 Convergence Driven by XBA 15

Chapter 2 From Definition to Confirmation: A Unique and Independent Approach (October 2011-July 2012) 19

2.1 Formation of the 2ASDU Team 21

2.2 Confirming the "2ASDU Way" 24

Chapter 3 Product-Process Development: Spring 2012, Autumn 2013 27

3.1 Target-Based Cost Control 28

3.2 Adjusting Specifications According to the Local Market 31

3.3 To Save a Few Rupees More 33

3.4 Hitting Deadlines Under "Design to Cost" 37

3.4.1 Converging on a Style: An Early but Adjustable Freeze 39

3.4.2 Extended Supplier Relationships; Key Dates Driven by Achieving Targets 41

3.5 The New Powertrain Plant: An Example of Frugal Industrial Investment 42

3.5.1 A Plant Without Walls or Doors 43

3.5.2 Deconstructing the Guidelines 44

3.5.3 Targeted Innovations 45

3.5.4 Machine Installation: Compactness, Flexibility, and Manual Transfers 45

3.5.5 The Vehicle Plant: Difficult Coexistence in the Nissan Site 45

3.6 Behind the Scenes in India 47

3.6.1 No Plant Is an Island 47

3.6.2 Lean Production Versus Indian Administration 48

Chapter 4 Supplying from India 51

4.1 Indianization 51

4.2 Three Supplier Stories 55

4.2.1 Supplier A 55

4.2.2 Supplier B 56

4.2.3 Supplier C 57

4.3 Supplying in the Chennai Region 58

Chapter 5 Investment Decisions at Industrial Start-Up and Ramp-Up: July 2013-June 2016 61

5.1 Responding to Risks 61

5.1.1 Development of Crash Safety Performance 62

5.1.2 Acoustics 63

5.2 Project Commando Meets Plant Bureaucracy 64

5.3 Leveling the Competitiveness of the Plant 66

Chapter 6 The Commercial Launch of Kwid in India: March 2015-June 2016 69

6.1 Lessons Learned from Entry 69

6.2 Indianizing the Business 72

6.3 Throwing Down the Gauntlet to Maruti and Hyundai 74

6.4 Success Comes at a Price 77

Chapter 7 Prospects for International Deployment of a New Lineage: 2016 and Beyond 81

7.1 A Difficult Transition: The End of a Project and the Birth of a New Lineage 82

7.2 Kwid's Indian Product Lineage 83

7.3 International Expansion Plans Confirmed 84

7.4 Brazil: The First International Deployment 85

Part II Fractal Innovation, Frugal Engineering, and Emerging Countries Growth Strategy 91

Chapter 8 Fractal Innovation and Creative Product Development 93

8.1 Fractal Innovation 94

8.2 Organizational Conditions of Fractal Innovation 96

8.2.1 Concurrent Engineering 96

8.2.2 Intrusive Management 100

8.2.3 Heavyweight Project Management 101

8.3 The Dynamics of Fractal Innovation and Design Processes: The Return of Creative Product Development 102

Chapter 9 The Maturation of a "Trickle-Up" Approach of the Automobile at Renault 109

9.1 Renault: Built to be Ambivalent 113

9.2 From the Logan to the Kwid: A Marginality Less and Less Marginal 117

9.3 A Crew of Real Renault Fighters 120

9.4 The Emergence of Peaceful Co-Existence Between the Entry Range and the Rest of the Segment 123

Chapter 10 The Global Innovation Playing Field 127

10.1 Internationalization: The Hallmark of the Automotive Industry 128

10.2 The Entry Range: The Main Driver of Renault's Delayed Internationalization 130

10.3 The Kwid: A Case of Reverse Innovation? 132

10.4 The Role of Proximity 137

10.5 Will India Be a Lead Market for the Kwid? 140

Conclusion 143

Bibliography 149

Appendix: List of People Interviewed 157

Index 161

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