Innovative Organisation: J C Bamford Excavators Limited - Case Study Example

J C Bamford Excavators Limited: An Analysis of an Innovative Organisation Contents 3 Introduction 4 The JCB Company 4 J C Bamford Excavators Limited Main Competitive Strategy 6 The Innovative Aspect of JCB 6 Operational Strategies 7 The Analysis of Innovativeness of JCB 11 The Wheeled Excavator, A JCB Innovation 11 Conclusion 17 Bibliography 18 Total Number of Words = 2,337 words Abstract The research undertaken is focused on the innovations of J C Bamford Excavators Limited which is renowned and trusted in the production of construction machines. The main vision of the company is to contribute ‘innovative and high performance products and solutions’ to the consumers. For that matter the line of products referred to as the Wheeled Excavator line had been considered as a leading set of technologies in the construction field on the basis of simplicity of the manipulation, productivity, ease in control, versatility, comfort and safety of use, high quality of products, service accessibility and profitability of use. Introduction The study is aimed to analyse an organization that is known for its innovative process in terms of the techniques applied or the technologies that had been developed and created. The focus of the research undertaken is the J C Bamford Excavators Limited known for the applied technological innovations in its specific field. Through the presentation of the paper, issues such as the objectives and strategies of the company, the product development and product application and the end results of product implementation are discussed. It is mainly based on objective to critically evaluate and innovation contributed by the company to the industry through the analysis of the intrinsic and extrinsic business environment. The JCB Company The J C Bamford Excavators Limited (JCB) operates on the vision to contribute ‘innovative and high performance products and solutions’ to the consumers. The company’s specialisation is the field of construction. On the basis of the mission, vision and operational strategy of the company, it became one of the top three manufacturers of construction equipments in the international arena on the 64 years of JCB history. The clientele is from every part of the world, specifically 150 nations operating 1,500 dealer depot locations (J C Bamford Excavators Ltd, 2009b). The JCB company started through a tipping trailer created by the founder Joseph Cyril Bamford in a garage in Uttoxeter in 1945. After more than half a century JCB has the capacity to produce 22,000 machines on a yearly basis. Seventy percent of the production is exported to countries around the globe (Barclay, Dann and Holroyd, 2000: 103). To date the company can account for more than 300 machines to its name (J C Bamford Excavators Ltd, 2009b). In terms of the company’s market share, 2006 and 2007 can be considered to have set all time high records. In 2006, 22,741 machines had been produced with a turnover of $3.5 billion. The sales of the said year gave JCB a market share of 10.4 percent in the construction equipment market. During the time it is recognized as the third-largest manufacturer of midland digger machines in terms of both production number and market share (Rental Equipment Register, 2007). In 2007, a new market opened up for JCB. The largest demand for production came from India. From 10,800 machines in 2006, 17,000 machines were sold in India. After setting the highest record of sales and production in 2006, the year 2007 even gave the company a new all-time high sales record to beat. From 10.4 percent, the market share had even risen to 12 percent by selling 72,000 machines (Duckers, 2008). Presently, JCB has a total manpower of 7000 in the operation located in 4 continents. The success of the company can be attributed to the continuous creation of technologically valuable innovation that can be applied to the construction industries. This had been possible through the attention given to research and development of new products which are commonly unprecedented technologies in the field (J C Bamford Excavators Ltd, 2009b). Through the recorded success of the J C Bamford Excavators Limited, one of the queries of interest is the strategy being used by the company in terms of innovating products and at the same time maintaining a high level of production. J C Bamford Excavators Limited Main Competitive Strategy The success of JCB can be attributed to the synergy of different aspects. The innovation through research and development, the marketing strategy and the operation techniques contribute to the status of the company. JCB then is a company that can be described as a manufacturing enterprise plus a site of discovery. The Innovative Aspect of JCB As an innovative institution, it is recognized to produce original equipments and technological solutions to the field of construction. Based on the study undertaken to determine the main method employed by JCB to be able to continuously come up with technologically applicable and feasible strategies, the ‘use of the post-development review’ is regarded as the main philosophy applied (Barclay, Dann and Holroyd, 2000: 104). The ‘open and collaborative post-development review’ process is a method of quality control assessment. It can be considered only as part of the complex view of the process implemented in CB operation but it presents an important portion to recognize the company’s strategy. In the process of research and development, an idea of a certain product is established in a precise and specific manner with the expected function. This is referred to as Project A which is considered as a draft. Project A is the target of in-depth scrutiny and study in terms of applicability, feasibility, functionality of the different components and the efficiency (Barclay, Dann and Holroyd, 2000: 104). After the review process, errors are eliminated and resolved. In this manner, not only the project itself had been improved but the process of production and the process of review are also enhanced. The said method had been initiated in 1995 and applied ever since. Basically, the said activity is a company-wide assessment of the product at hand. This can be attributed to the fact that all personnel who contributed to the development of the project are gathered to discuss the product which at the said point is referred to as A. When the perceived errors had been identified and issues ha been resolved, plans will be made for the construction of Project B which is the successful product. Upon completion it is still reviewed to determine if the errors had been corrected and the planned improvements had been undertaken (Barclay, Dann and Holroyd, 2000: 105). Figure 1. The Quality Control Assessment in JCB. This technique which is applied by the JCB can be considered as one of the most important strategies that can ensure the quality and innovativeness of ideas and products given to the consumers. Aside from the attention given to the innovative aspect of the company, the maintenance of the operational strategies is also given attention by the JCB. Operational Strategies Through the history of the JCB, the company had been able to continuously improve in different aspects. During the after war period, the need for construction machineries had been answered by the company and as the years pass, JCB developed constantly. Aside from the different accessible locations of service offices of JCB, it also caters clients and consumers through the online interface wherein background information on the company, the product offered and the activities undertaken can be perceived. Information about the history of the company and the corporate social responsibility are also stated. Environmental responsibility had been one of the focuses as observed in the sites of the company’s offices and the consciousness in terms of possible polluting effects of production. In addition, energy efficiency and recycling of materials are promoted (J C Bamford Excavators Ltd, 2009b). Due to the fact that JCB is a continuously developing company, the marketing strategy of the company is also very effective. Every aspect contributes to the attractiveness of the company to its clientele. These are the quality of the manufactured machineries, the reasonable prices, the promotion and the product placement (J C Bamford Excavators Ltd, 2009b). The quality of the products is the primary reason for the success of the company. Due to the attention given to the quality control and product review and assessment the history of commendable quality is a solid marketing strategy. Another recognized strength of the company is the product range which is important to be able to answer to the multitude of construction needs of the market. From the 3C backhoe loader, other technologies are developed through the years. Presently, the company offers products such as agricultural telescopic handlers and wheeled loaders, articulated dump trucks, compact excavators, double drum vibratory rollers, dumpsters, fastrac tractors, lighting tower, micro excavators and other midland construction machineries and related products (J C Bamford Excavators Ltd, 2009b). The JCB brand itself known in all parts of the world became another aspect for the strength of product promotion. The company even explored fields that can improve the brand such as insurance, training, finance, organic food, clothing, toys and tools. This array is added to the main products. Also, different industry solutions are included in the company’s services such as related to agriculture, airports, compaction, construction, demolition, grounds care, house building, industrial, government and defence, ports and terminals, quarrying, railroad and road facilities, timber and forestry activities, and waste and recycling projects (J C Bamford Excavators Ltd, 2009b). The company can be considered to be continuously growing and improving but there are different challenges that can be faced in the future. One is the failure to uphold the company’s own reputation in being innovative. Due to the fact that JCB is commonly the one setting the standards in the field, other companies are bound to compete. In a very dynamic and volatile market, it is a great challenge to keep a high market share. To be able to maintain the status of the company, it is important to maintain a well motivated research and development group to continue the legacy of innovation of the brand. Other challenges that can be faced by an innovative company such as JCB include long development time, problem in coordination of the factors within and outside the company and high risk factor in terms of application and acceptance of the public. Development also has limited insight from the consumer thus it can still be considered as risk. In addition the right innovation can be subjective on the different groups of consumers (Robertson-Begg, n.d.). JCB, as a company known for innovation then is needed to have balance in the different aspects of operation to ensure a continuous corporate growth to the rapidly developing international market and its flourishing demands and needs. The Analysis of Innovativeness of JCB Innovativeness is defined as the process within which technological products and solutions are created for consumer application and profitability (Robertson-Begg, n.d.). In JCB the mission and vision of the company are clearly projected towards being a leader in innovations in the construction business. In terms of innovativeness the company can be considered to have a clear perspective of its goals in terms of product production, implementation and the future direction. The main evidence of the said view is the successful array of construction machineries that JCB has created and developed through the years. The Wheeled Excavator, A JCB Innovation The Wheeled Excavator is one of the most important innovations of the J C Bamford Excavators Limited on the basis of different reasons. The JS wheeled excavator is an array of products for a variety of specializations such as road construction, rehandling activities in the stockyards or any tasks in different types of conditions (J C Bamford Excavators Ltd, 2009c). The said innovation can be classified as a construction machines composed of the JS130W, JS145W, JS160W, JS175W and JS200W. The said array is favoured in the market for different reasons which can be considered as the recognition of the objective of the company to target the specific needs in terms of the construction business. The most basic reason for the acceptance of the market is the simplicity of the manipulation of the different models of the wheel excavator. In addition, other recognized benefits are productive to use, easily controlled, versatility, comfort and safety of use and high quality (J C Bamford Excavators Ltd, 2009c). The productivity of the wheeled excavator is based on the efficiency and speed of the machine. Based on the Turbocharged Isuzu Tier 3 engine, performance is quiet but consistent in performance. The productivity of the machine is based on the interaction of the said factors to other factors such as higher dipper force and flexibility of the chassis. Another factor is the ease of controlling the machines. This is related to the selectable work modes that can increase the efficiency of the machine and the performance of the operator (J C Bamford Excavators Ltd, 2009c). The versatility in function is another important characteristic of the wheeled excavator. In one of the models, the JS200W Wastemaster, there is feature that can change the boom and arm configuration, TAB booms and handling configurations. This is important specifically for a job of limited time. Functions such as this when added to the feature of loadover visibility are the presentation of the sensitivity of the company to the needs of the clientele. With construction machineries such as the wheeled excavator, it can be considered as a luxury to offer comfort. In the said group, in addition to improved visibility due to lower engine, the effortless operation, adjustable AMS monitor, comfort in seats and controls are also offered (J C Bamford Excavators Ltd, 2009c). These are some of the points that can explain the performance of JCB in the market in nations around the world. Ultimately, high quality of work and services can be done through the use of the innovative technology integrated in the wheeled excavator. JS130W JS145W JS160W Figure 2. Photographs of Wheeled Excavators JS130W, JS145W JS160W JS175W JS 200W Figure 2. Photographs of Wheeled Excavators JS175W and JS 200W. SWOT Analysis Figure 3. SWOT Analysis of JC Bamford Excavators Limited. Table 1. SWOT Analysis of the Company Internal Analysis Strengths Weaknesses ♦ Patents for the JCB wheeled range the JS130W, 145W, 160W, 175W and 200W ♦ Good reputation due to: simplicity of the manipulation productivity ease in control versatility comfort and safety of use high quality of products service accessibility profitability of use ♦ World Parts Centre for expert and specialized service ♦ 24/7 attention to clients ♦ Protection of purchased products through the innovation JCB LiveLink, an advanced telematics system using satellite and cellular technology that enables you to better protect your machine and accurately monitor and improve its performance ♦ Limited attention to corporate social plans and actions ♦ Lack of tangible plans related to natural resources ♦ Products concentration is limited to construction machines External Analysis Opportunities Threats ♦ International growth – from 1,500 dealer depots, spanning 150 countries across five continents to global expertise at a local level (attention to local clients of each branch) ♦ Continuous research and development for new needs in construction technology ♦ Additional services to maximize relationship with clients (e.g. financial advice) ♦ International growth can cause divided attention which can weaken the strong branches ♦ Possible change of tastes or reference of the clientele ♦ Changes in rules and regulations related to the products ♦ Emergence of new competitors in the field Source: (J C Bamford Excavators Ltd, 2009c), Conclusion The J C Bamford Excavators Limited (JCB), one of the top and most innovative companies in the construction machinery production has been explored. One of the arrays of produces had been discussed, the wheeled excavators model JS130W, JS145W, JS160W, JS175W and JS200W. The efficiency and functionality of these innovative creations are commendable. Regardless of the challenges in an innovative company, JCB had been successful for the last half a century and even continuously improving. Market control is strategic and mainly based on the monopoly and hold on a unique technology and the company operates on this principle. Bibliography Barclay, I., Dann, Z. and Holroyd, P. (2000), The New Product Development, Butterworth-Heinemann. Duckers, J. (2008), JCB Can Dig Itself out of Global Credit Crunch Hole, Birmingham Post.net. Available from: [Accessed 29 March 2010] J C Bamford Excavators Ltd (2009a), A Product of Hard Work [online], J C Bamford Excavators Ltd, Available from: [Accessed 29 March 2010] J C Bamford Excavators Ltd (2009b), Company Information [online], J C Bamford Excavators Ltd. Available from: [Accessed 29 March 2010] J C Bamford Excavators Ltd (2009c), Wheeled Excavator, JCB Sales. Rental Equipment Register (2007), Record Volumes Propel JCB to Third-Largest Construction Equipment Manufacturer. Available from: [Accessed 30 March 2010] Robertson-Begg, J. (n.d.) Innovation and Civil Engineering: An Intriduction. Lecture Notes. World Intelectual Property Organization (2004), Civil Engineering Support Structures by Hyperblast Limited, and Robert Malcom Moss and Peter Keith Woodward, WIPO. Read More