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Subject: Entrepreneurship Assignment No.

2 (Mattson Project Delta (A) A New Recipe for Innovation)

GIFT Business School


Steve Gundrum who was owner of Mattson wants to improve the company's innovativeness. He was little bit confused by seeing the innovations in the Software development where the innovation rate is very high as compared do the food industry. Mattson is located in Silicon Valley, California, is an independent developer of new products for the food and beverage industry. Mattson produced the products and brings them to market. The products include

new beverages, snacks, frozen meals, and many other food and beverage products as a contractor to the large producers in the industry. Gundrum believes there's an opportunity to improve his innovation system by borrowing from the leading-edge software firms that surround him. Although Gundrum has no back ground in the software industry but he deeply studied the development phases of software. In the process of developing software two methods are being used in the industry. 1. Open source method 2. Extreme programming method Open source is free license and relied on the large number of experts, who works on the parts of the problem that they knew best. While extreme programming is a set rule of methodology in which a team of two broke the problem down into a smallest and then solve the each part of the problem together in successive. In the testing phase Gundrum introduce three different ways to produce a product. Gundrum creates a contest the basic purpose of Gundrum was to develop a better cookies. There were three working teams in this contest, one using Mattson's traditional hierarchical team structure, one using open source development, and a third using extreme programming. The basic purpose of this case is to understand deeply the importance of team composition and structure in the innovation process. It also shows the power of reaching across industry boundaries to find new ideas, not just for products but for business process and structure as well. The larger and basic goal of the Gundrum was to create a quicker system for bringing new food and beverage products to market. According to him, on a traditional way it takes a time to introduce the new product in the market and the time taken in this process was more than two years to take the product at the shelf of the store. For the innovation in the food industry and to feed the hungry well, Gundrum decided to start a competition in the food industry, it is not for profit earning. The goal was personally imported for the Gundrum. All formulas which will b generated successfully from the experiment would become freely available in any company who are interested in making cookies.

Problems How should he staff the teams? What skills and personal characteristics should he look for? Traditional team For the traditional team the same which is being used in the industry will be used that the production process will follow the same hierarchy level; a manager which is expert in the field will lead the team and all the workers will work under his orders. In this culture of work manager should be innovative. In this phenomenon a department product development will come with an idea, then production department make the product according to the idea and quality department checks the product on the basis of chemically mixture and microbiology and the food technologist will check the healthy ingredients. In this phenomenon Gundrum should develop a team which is reliable to do work under the instructions of managers and let the things go. XP Production Team The XP production team stands for the extreme programming team. The characteristics of this team are low risk, small-team approach knowing for the development of new products. In this team each team member participate in each phase of the project. According to the Gundrum we adopted this model for the food industry, as in the software industry two members make a team, one member works on programming and other member debugging it. When the firm has talented people they should go for this team. The XP team for Project Delta has, a culinary expert, a food scientist who worked in confectionery before coming to Mattson. They used wireless tablet PCs and other digital collaboration technologies to generate their formulation.

OS production Team The open source production team is a sensible team in this team, members work together to produce a better product. They have their clear goals, they are risk takers. For this purpose different team works on the same goal according to their knowledge and expertise. At the end

which team gave the best, their product key will be use for the further process. In this production team each member must talented , risk taker, innovative. How should he manage the process for the teams (if at all)? Is there fourth team using some different method that he should try In my opinion there must be another team which must be fourth team which plays his role. Because Gundrum wants the innovative product in the food industry to serve the people well. For this purpose he should try different team which comes up with a new and innovative idea for this purpose he can established a feedback system from the customers about their existing product, and what type of change they want to see in the product. Through this phenomenon a continuous development phase will be running according to the demand of the customers.