OPEN INNOVATION AT SIEMENS

Q1] Why did Siemens create an open innovation initiative?

Ans - 1. Breaking Silos: Siemens aimed to overcome divisional isolation and promote collaboration.
2. Identification of Experts: Lack of tools to identify technology experts within Siemens led to the need for a system like
Techno Web.
3. Knowledge Sharing: The goal was to enable sharing of information, prevent redundancy, and foster real-time
communication.
The aim was to generate new product ideas, address technology gaps, and solve various challenges through crowd
participation.

Q2] What programs went well and what went not well? Justify your answers.
Ans - Went well -
1. Techno Web 2.0 - Successfully connected 32,000 experts, facilitated knowledge sharing, and addressed real problems.
2. Idea Generation Contests (e.g., OSRAM LED, Smart Grid) - Engaged global participants, generated innovative ideas, and
led to successful collaborations.
Did not go well -
1. External Knowledge Brokers - Faced challenges in implementing ideas due to issues with technology compatibility and
unclear business impact.
2. Sustainability Contest - Received criticism about capturing the "best" ideas, raising questions about the effectiveness of
the contest.

Q3] WHAT KINDS OF OPEN INNOVATIONS WERE SUCCESSFUL AT SIEMENS? WHICH WERE NOT?
Successful Open Innovations at Siemens:
TechnoWeb 2.0: Identified technology experts, facilitated communication, and created a social platform for collaboration,
leading to over 32,000 registered users by 2013.
Smart Grid Contest: Generated ideas for Smart Grid business models and applications, resulting in over 2,000 community
submissions and 10 contracted research collaborations with universities.
Open Innovations Facing Challenges:
External Knowledge Brokers: Faced challenges in evaluating and implementing external proposals due to issues like unclear
business impact and reliance on external partners.
Technology Mapping Contest: Faced roadblocks during evaluation and implementation, with resistance from internal teams
and difficulties in finding clear business impact.
Mixed Success - Idea Generation Contests:
OSRAM LED Emotionalize Your Light Contest: Successfully engaged participants worldwide, but the true impact on product
development or market outcomes is not explicitly stated.
These assessments are based on the information provided in the case.

VISPERA: VISUAL INTELLIEGENCE FOR RETAIL

Q1: What should Ercil do regarding the data ownership issue?

Vispera's service offers several crucial benefits to members of the supply chain selling fast-moving consumer goods
FMCG
1. Improved In-Store Execution: Vispera enables real-time monitoring of in-store execution, ensuring that
products are positioned correctly on shelves. This contributes to better visibility and compliance with planograms,
leading to an enhanced customer experience.
2. Efficient Stock Management: With accurate data on stock levels and potential stockouts, supply chain members
can optimize inventory management. This prevents overstocking or stockouts, ultimately improving the efficiency
of the supply chain.
3. Enhanced Planogram Compliance: The technology assists in maintaining planogram compliance, ensuring that
products are arranged according to the desired layout. This consistency across stores contributes to a
standardized brand representation.
4. Quick Response to Issues: The real-time nature of Vispera's analysis allows for swift identification of issues such
as product misplacement or non-compliance. This enables members to take immediate corrective actions,
improving overall operational efficiency.
5. Data-Driven Decision-Making: The detailed reporting and analytics provided by Vispera empower supply chain
members to make informed decisions. This includes insights into product availability, share-of-shelf, and other key
performance indicators, fostering data-driven strategies.
Factors to Consider When Deciding to Adopt the Service:
1. Flexibility and Customization: Members should assess Vispera's flexibility in accommodating unique
requirements and complex calculations, especially if they require tailored solutions beyond standard offerings.
2. Business Acumen: Considering the need for business acumen, supply chain members should evaluate Vispera's
ability to not only act as a technology solution partner but also as a market research agency. This is crucial for
handling diverse data and providing meaningful insights.
3. Accuracy and Reporting Quality: The accuracy levels of Vispera's technology, surpassing manual reporting,
should be weighed against competitors. Additionally, the quality of reporting and how well it aligns with the
specific key performance indicators of the supply chain members should be considered.
4. Integration with Existing Systems: Compatibility and ease of integration with the existing systems and
workflows of supply chain members are essential factors to ensure a smooth adoption process.
5. Cost-Benefit Analysis: A thorough cost-benefit analysis should be conducted to assess the overall economic
impact of adopting Vispera's service, considering both the initial setup costs and ongoing fees.

Q2: What should Ercil do regarding the data ownership issue?

Ercil should approach the data ownership issue systematically and proactively:
1. Define Data Ownership: Clearly define what constitutes data in the context of Vispera's services. This involves
determining whether it includes raw images, derived key performance indicators (KPIs), or a combination of both.
2. Stakeholder Involvement: Engage in discussions with stakeholders, including customers, to understand their
expectations and concerns regarding data ownership. This will provide insights into how different scenarios, such as
data captured by customer representatives or Vispera's fixed cameras, are perceived.
3. Business Model Implications: Evaluate how data ownership impacts Vispera's business model. Consider whether the
company should capture and own the data itself or if there's a need to negotiate data ownership terms with
customers.
4. Segmented Offering: Explore the possibility of segmenting Vispera's service offerings based on data ownership. This
may involve pricing packages differently depending on whether the data belongs to the customer, Vispera, or other
stakeholders.
5. Compliance with Privacy Regulations: Given the rising concerns about data privacy, ensure that any approach to data
ownership aligns with privacy regulations and standards. This is crucial for maintaining trust with customers and
partners.
6. Communication and Transparency: Regardless of the chosen approach, communicate transparently with customers
about data ownership policies. Clear communication builds trust and helps customers understand how their data is
handled.
7. Global Perspective: As Vispera aims to become a global player, consider the data ownership landscape in different
regions and tailor approaches accordingly. Different markets may have varying expectations and regulatory
environments regarding data ownership.
By addressing these considerations, Ercil can navigate the complexities of data ownership, ensuring that Vispera's
approach aligns with both customer expectations and the company's strategic goals.

ITC ECHOUPAL INITIATIVE

Q1: What was ITC’s motivation for creating the eChoupal?

Ans - ITC's Motivation for Creating the eChoupal:
1. Strategic Alignment: Aligning shareholder value creation with national welfare, ITC aimed to blend business goals with
broader societal impact.
2. Catalyst for Growth: Fuelled by the imperative for growth, ITC sought to extend the success of the eChoupal concept
from soybeans to other agricultural products.
3. Revolutionizing Supply Chain: The eChoupal was a pivotal shift toward a direct, knowledge-sharing supply chain,
aiming to empower farmers and enhance product quality.
4. Empowering Farmers: Knowledge sharing on best practices and direct sourcing aimed to empower farmers, reducing
reliance on mediators and ensuring quality produce.
5. Technology-Driven Efficiency: Leveraging web-based tech, the eChoupal streamlined processes, enabling real-time
price discovery and transparent interactions.
6. Traceability and Quality: Traceability, crucial in commodities like seafood, provided accountability, ensuring premium
prices for quality-assured products.
7. Adaptive Approach: Piloting in diverse regions with different crops allowed ITC to adapt strategies, culminating in the
"Roll Out, Fix It, Scale Up" model.
8. Diversification for Value: Beyond soybeans, ITC explored diverse commodities, aiming to generate value through
traceability, matching production to demand, and an electronic marketplace.
This succinctly captures ITC's strategic vision, growth catalyst, supply chain innovation, farmer empowerment, tech-
driven efficiency, and value diversification through the eChoupal initiative.

Q2: What principles did it employ as it built the newly fashioned supply chain?
Ans - Principles Employed in Building the eChoupal Supply Chain:
1. Strategic Piloting: ITC's approach involved strategic pilots in different regions, allowing them to learn, adapt, and
validate concepts before scaling up.
2. Adaptive Management: The "Roll Out, Fix It, Scale Up" model exemplified ITC's adaptive management approach,
refining strategies based on pilot learnings.
3. Knowledge Transfer: Leveraging the success of soybeans, ITC extended its knowledge-sharing model to coffee, aqua
food, and horticultural products.
4. Logistics Efficiency: ITC aimed to reduce organization costs by eliminating non-value-added activities, fostering
efficiency between farm and factory.
5. Quality Assurance: Understanding diverse crops' characteristics, such as wheat varieties, enabled ITC to analyse and
purchase based on chemical composition, ensuring quality.
6. Market Dynamics Understanding: Acknowledging the unique dynamics of each crop and region, ITC navigated intricate
agricultural and socioeconomic conditions.
7. Real-Time Price Discovery: Traders net, ITC's electronic trading platform, enhanced real-time price discovery, crucial in
volatile markets like coffee.
8. Long-Term Vision: Beyond immediate savings, ITC envisioned sustainable value through traceability, matching
production to demand, and an electronic marketplace.
This encapsulates the strategic, adaptive, knowledge-driven, and efficiency-focused principles underpinning ITC's
development of the eChoupal supply chain.

AMAZON IN CHINA AND INDIA

WHAT IS THE LOGIC BEHIND AMAZON PRIME? WHY ARE ECONOMIES OF SCALE ON THE DEMAND SIDE IN
MOST E-COMMERCE BUSINESSES?
Amazon Prime is a subscription service offered by Amazon that provides members with various benefits, fostering
customer loyalty and encouraging repeat business. The key features of Amazon Prime include:
• Free and Fast Shipping: Prime members enjoy free and fast shipping on eligible items, often with one-day or
two-day delivery options. This convenience encourages more frequent and impulsive purchases.
• Access to Amazon Prime Video: Members can stream a vast library of movies, TV shows, and exclusive
content through Amazon Prime Video. This additional service enhances the value of the subscription.
• Prime Music: Prime members have access to a selection of songs and playlists through Amazon Prime Music,
expanding the entertainment offerings.
• Kindle Owners' Lending Library: For those with Kindle e-readers, Amazon Prime includes access to a lending
library, allowing members to borrow and read e-books.
• Amazon Family: This feature provides family-oriented benefits, such as exclusive family-oriented offers and
discounts on family-related products.
• Early Access to Deals: Prime members often get early access to Amazon's Lightning Deals and exclusive
promotions, enhancing the overall shopping experience.
• The logic behind Amazon Prime is to create a comprehensive ecosystem that makes it highly attractive for
customers to stay loyal to Amazon. By bundling together various services and benefits, Amazon aims to
increase customer retention, boost customer spending, and differentiate itself from competitors.
• Regarding economies of scale on the demand side in most e-commerce businesses, this is often tied to the
concept that as the number of customers increases, the average cost per customer decreases. Key reasons for
this include:
• Shipping Costs: With a larger customer base, e-commerce platforms can negotiate better deals with shipping
carriers, reducing the per-unit shipping cost.
• Operational Efficiency: As order volumes increase, e-commerce businesses can optimize their operational
processes, such as order fulfillment, inventory management, and customer service, leading to cost savings.
• Technology Infrastructure: Investments in technology infrastructure, including website maintenance, server
costs, and cybersecurity, can be spread across a larger user base, reducing the average cost per user.
• Marketing and Advertising: E-commerce platforms often benefit from economies of scale in marketing and
advertising. The cost of acquiring a new customer can be distributed over a larger customer base.
 • Negotiating Power: A larger customer base gives e-commerce platforms increased negotiating power with
suppliers, enabling them to secure better pricing for products.
In summary, the larger the customer base, the more opportunities for cost optimization and efficiency, contributing to
economies of scale on the demand side in e-commerce businesses.

Q1: Would expanding Amazon's presence and diversifying into more businesses help attain a greater standing in
the Indian market, or was it better to focus on a few core businesses? Explain your argument.
Expanding Amazon's presence and diversifying into more businesses in the Indian market can be a strategy with both
advantages and disadvantages.
Advantages:
1. Risk Mitigation: Diversification can help Amazon reduce risk by not relying solely on one sector. In India, a dynamic
market with unpredictable regulatory changes and competition, spreading across various businesses can provide
resilience.
2. Catering to Diverse Consumer Needs: India is a diverse market with varying consumer preferences. By expanding into
multiple businesses, Amazon can cater to a broader range of customer needs, thereby enhancing its appeal to a wider
customer base.
3. Leveraging Synergies: Some of these businesses may have synergies that Amazon can exploit effectively. For example,
its ecosystem of e-commerce, payments, and digital content services can create cross-selling opportunities, increasing
customer loyalty and engagement.
Disadvantages:
1. Complexity and Focus: Diversifying into multiple businesses can lead to operational and managerial complexity. It
might become challenging to manage and focus effectively on each business segment, potentially diluting Amazon's core
competence.
2. Regulatory Challenges: As seen in the case, regulatory changes can be a significant challenge. Expanding into multiple
businesses means that Amazon has to navigate different sets of regulations, which can be resource-intensive and complex
to manage.
3. Resource Allocation: Diversification requires substantial resources, including capital and talent. Ensuring proper
allocation of resources across diverse business segments is crucial. Misallocation can hinder overall growth.
To address these challenges, Amazon should consider a balanced approach. It can diversify strategically into areas that
align with its core competencies and have significant growth potential. Simultaneously, the company should continue to
focus on its e-commerce business, as it remains the backbone of its operations in India.

Q2: How should Amazon prepare for future regulatory changes?

To prepare for future regulatory changes, Amazon should:
1. Engage with Government: Maintain an open and constructive dialogue with Indian regulatory authorities. Proactively
engage with policymakers to provide insights and suggestions on e-commerce regulations. Being a collaborative partner
with the government can help Amazon anticipate and adapt to regulatory changes effectively.
2. Compliance and Transparency: Ensure full compliance with existing and future regulations. Transparency in business
operations is essential to gain trust among regulators and consumers. Amazon should make sure that it adheres to all local
laws and regulations.
3. Adaptability: Develop a flexible business model that can swiftly adapt to changing regulations. Being able to pivot in
response to evolving laws is a strategic advantage. Amazon should establish a regulatory monitoring system to stay up-to-
date with any changes and quickly adjust its operations.
4. Local Partnerships: Consider forming strategic partnerships with local businesses or entities to strengthen its position
and ensure compliance with local regulations. Local partners can provide valuable insights into the local business
environment and regulatory landscape.
5. Advocate Industry Standards: Collaborate with industry associations and even competitors to advocate for industry-
wide standards and best practices that benefit all stakeholders. Together with competitors, Amazon can engage with
regulators to shape industry regulations that are fair and reasonable for all market participants.
By adopting a proactive, compliant, and adaptable approach to regulatory changes, Amazon can navigate the evolving
regulatory landscape while continuing to grow in the Indian market. This approach ensures Amazon's readiness for any
regulatory challenges that may arise in the future.

WHAT ISSUES DO COMPANIES FACE IN OPEN INNOVATION INTERVENTIONS? HOW CAN THEV BE RESOLVED?
Issues in Open Innovation Interventions:
• Resistance from Internal Teams: Internal teams may resist collaboration with external sources due to concerns
about intellectual property, security, or a lack of incentive.
• Unclear Business Impact: Defining and communicating the business impact of open innovation projects can be
challenging, leading to skepticism and hesitancy among participants.
• Lack of Specific Problem Definitions: If the problem statements or requests for proposals are not well-defined, it
can result in submissions that are impractical or irrelevant.
 • Integration Challenges: Integrating external solutions or knowledge into existing workflows may present
technical, cultural, or operational challenges.

Resolution Strategies:
• Clear Communication: Clearly communicate the goals, benefits, and business impact of open innovation
initiatives to internal teams, addressing concerns and emphasizing the potential advantages.
• Incentive Structures: Develop incentive structures that motivate both internal and external participants, ensuring
that contributions are recognized and rewarded appropriately.
• Robust Problem Definition: Invest time in crafting well-defined problem statements or requests for proposals to
attract relevant and actionable solutions.
• Structured Integration Plans: Develop structured plans for integrating external solutions, considering technical
compatibility, cultural alignment, and operational feasibility.
Addressing these issues requires a combination of effective communication, strategic planning, and creating a conducive
environment for collaboration between internal and external stakeholders.

BUILDING A "BACKDOOR" TO THE IPHONE: AN ETHICAL DILEMMA

Q]What are the types of dilemmas did Tim Cook face?

Ans - Types of Dilemmas Faced by Tim Cook:
Tim Cook, as Apple's CEO, confronted several ethical dilemmas stemming from the government's demand to
build a backdoor to unlock the iPhone used by a terrorist involved in the San Bernardino attack. The key
dilemmas include:
Privacy vs. National Security: The core dilemma revolves around striking a balance between safeguarding
customer digital privacy and contributing to national security efforts.
Consequences of Compliance: Cook faced the ethical question of potential consequences if Apple complied
with the government's demand, potentially compromising the privacy and security of millions of iPhone users.
Feasibility and Technological Implications: The feasibility of creating a backdoor and its broader implications
on Apple's commitment to encryption and user privacy presented complex technological and ethical challenges.

2] Is there a conflict between Cook's commitment to private life and his commitment as a
company leader?
Ans - There exists a potential conflict between Cook's commitment to private life values and his role as a
company leader:
Private Life: Tim Cook, driven by personal values and principles, advocated for user privacy and opposed the
creation of a backdoor that could compromise customer data.
Company Leader: As Apple's CEO, Cook had a responsibility to consider the interests of shareholders, the
company's reputation, and the potential impact on national security, introducing a conflict between personal
values and corporate obligations.

3] How will you evaluate that Tim Cook could have resolved the dilemma he had faced?
Ans - Tim Cook's resolution of the dilemma can be assessed based on the framework proposed by Badaracco:
Consequences: Cook's decision to prioritize customer privacy aimed at minimizing potential harm to users by
preventing the creation of a tool that could compromise their security.
Rights: The stance aligns with protecting the rights of Apple users to privacy, as emphasized in Cook's open
letter, highlighting the importance of safeguarding fundamental rights.
Values and Commitments: Cook's decision is consistent with Apple's long-standing commitment to user
privacy and encryption, reflecting the company's values and brand image.
Feasibility: Considering the technological and legal complexities, Cook's decision aligned with the feasibility
of maintaining Apple's commitment to encryption and privacy protection.

4] What should Cook have done?

Ans - Given the complex nature of the situation, Cook's decision appears ethically sound, considering the
potential long-term consequences of creating a backdoor. However, ongoing dialogue with government
agencies, exploration of alternative solutions, and proactive engagement in shaping policies related to
encryption and national security could be beneficial.
In conclusion, Tim Cook's commitment to prioritizing customer privacy over the government's demand reflects
a principled stance aligned with Apple's values, but ongoing ethical vigilance and engagement with stakeholders
are essential in navigating similar dilemmas in the future.
WAS TIM COOK RIGHT IN DENYING THE US GOVERNMENT OF BUILDING A BACKDOOR
TO THE IPHONE? WHICH SIDE WOULD YOU TAKE AND WHY?

The question of whether Tim Cook was right in denying the US government's request to build a backdoor to
the iPhone is subjective and depends on individual perspectives. Here are arguments for both sides:
Arguments for Tim Cook's Decision:
User Privacy: Tim Cook's decision aligns with Apple's longstanding commitment to user privacy. Creating a
backdoor could compromise the privacy and security of millions of iPhone users, setting a precedent that
might be exploited in the future.
Security Concerns: Building a backdoor introduces a potential security risk, as it creates a vulnerability that
could be exploited by malicious actors. This could lead to unauthorized access to user data, posing a
significant threat to individuals.
Broader Implications: Cook's stance reflects concerns about the broader implications of creating a tool that
could be used beyond the specific case in question. Once such a tool exists, there is a risk that it could be
employed for purposes other than national security, undermining the trust in encryption.

Arguments Against Tim Cook's Decision:

National Security: The US government's request was rooted in national security concerns, particularly in
the aftermath of a terrorist attack. Granting access to the iPhone could provide valuable information that
might help prevent future attacks or apprehend individuals involved in terrorist activities.
Legal Compliance: The government's request, backed by a court order, sought assistance in a criminal
investigation. Arguably, complying with such lawful requests is a civic duty, and failure to do so might be
seen as obstructing justice.
Balancing Rights: In complex situations, there is a need to balance individual privacy rights with broader
societal interests, such as national security. Some may argue that in exceptional cases, limited compromises
on privacy may be warranted for the greater good.
Ultimately, whether Tim Cook was right or not is a matter of personal perspective and ethical considerations.
It involves weighing the importance of individual privacy against national security concerns and the
potential consequences of either decision.

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LIST ANY THREE POTENTIAL ETHICAL ISSUES THAT MAY RISE WHILE BUILDING MIS IN
AN ENTERPRISE AND SUGGEST WAYS ON 1-2 SENTENCES TO ADDRESS THOSE.
Privacy Concerns:
Addressing Solution: Implement robust data encryption and access controls, conduct regular privacy impact
assessments, and ensure compliance with data protection regulations such as GDPR. Additionally,
transparently communicate data usage policies to users and obtain explicit consent.
Bias in Decision-Making Algorithms:
Addressing Solution: Regularly audit and validate algorithms for bias, employ diverse datasets during model
training, and involve ethicists and diverse stakeholders in the development process to ensure a more
inclusive and fair representation of different demographics.
Security Vulnerabilities:
Addressing Solution: Conduct thorough security audits, implement best practices for secure coding,
regularly update and patch software systems, and provide ongoing cybersecurity training to personnel.
Establish incident response plans to address and mitigate potential security breaches promptly.

WHAT ARE THE ISSUES WITH ARTIFICIAL INTELLIGENCE DRIVEN SYSTEMS? PLEASE
ENUMERATE WITH EXAMPLES.
Artificial Intelligence (AI) driven systems come with various challenges and issues. Here are some key
concerns:
Bias and Fairness:
Example: Facial recognition systems trained on biased datasets may exhibit racial or gender bias, leading to
inaccurate or unfair outcomes, especially for underrepresented groups.
Transparency and Explainability:
Example: Complex machine learning models, such as deep neural networks, often lack transparency, making
it challenging to explain how a specific decision was reached. This can be problematic in sensitive areas like
healthcare or finance.
Privacy Concerns:
Example: AI systems that process large amounts of personal data may raise privacy issues if not adequately
protected. For instance, AI-driven surveillance systems may infringe on individuals' privacy rights.
Security Risks:
Example: Adversarial attacks can exploit vulnerabilities in AI models. Malicious actors might manipulate
input data to mislead the system or cause it to make incorrect predictions.
Job Displacement:
Example: Automation driven by AI can lead to job displacement in certain industries. For example, self-
driving vehicles may reduce the demand for human drivers.
Ethical Concerns in Decision-Making:
Example: AI systems making critical decisions in areas like criminal justice may raise ethical questions if
not programmed to consider the societal impact or if biased in their decision-making processes.
Lack of Regulation and Standards:
Example: The absence of clear regulations and standards for AI development and deployment can result in
inconsistent practices and inadequate safeguards across different applications and industries.
Data Quality and Dependence:
Example: AI models heavily rely on the quality and representativeness of training data. If the data used for
training is incomplete or biased, the model's performance may suffer.
Exacerbation of Inequalities:
Example: Access to and benefits from AI technologies may not be distributed equally, potentially widening
existing social and economic disparities.
Unintended Consequences:
Example: AI systems may produce unexpected or unintended outcomes that were not considered during the
development phase, leading to unforeseen consequences.
Addressing these issues requires a combination of technical advancements, ethical considerations, and
regulatory frameworks to ensure responsible AI development and deployment.