Assignment: Business Global
To solve some of these problems, Lego managers used the same approach they used for their blocks. They created a modularized and standardized architecture for their IS, making it possible to expand more quickly and add capacity and functionality as it was needed. They implemented an integrated enterprise system that gave them new applications for human capital management, operations support, product life cycle management, and data management. The new systems and services, purchased from vendors such as SAP and IBM , simplifi ed the IT architecture and the management processes needed to oversee the IS.
■ CASE STUDY 1‐1 Lego
20 Nelson D. Schwartz , “ Turning to Tie‐Ins, Lego Thinks Beyond the Brick ,” The New York Times , September 5, 2009 , http://www.nytimes. com/2009/09/06/business/global/06lego.html?pagewanted=all&_r=0 (accessed August 21, 2015) .
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One manager at Lego summed it up nicely, “The toy world moves onwards constantly, and Lego needs to re‐invent itself continuously. Signifi cant corporate re‐shaping introduced new energy to the company.” 21 He went on to say that simplifying Lego ’ s IT systems and implementing an effi cient product development process that was able to maintain quality and cost favorably positioned Lego to respond to the fast changing pace of the toy industry.
1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?
2. Which of the generic strategies does Lego appear to be using based on this case? Provide support for your choice.
3. Are the changes implemented by Knudstorp an indication of hypercompetition? Defend your position.
4. What advice would you give Knudstorp to keep Lego competitive, growing, and relevant?
Sources: Adapted from http://www.nytimes.com/2009/09/06/business/global/06lego.html (accessed August 21, 2015) ; Brad Wieners , “ Lego Is for Girls ” (December 19, 2011 ), 68 – 73 ; information from Lego ’ s 2012 annual report, http://www.lego.com/en‐us/aboutus/news‐ room/2013/february/annual‐result‐2012 (accessed March 29, 2015); and “Lego Case Study,” http://thelegocasestudy.com (accessed March 29, 2015).
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