Essay on Simulation: Lithium-ion Battery

Words: 3808
Pages: 16

Simulation Strategic Innovation Simulation: Back Bay Battery (v2)

Clayton M. Christensen; Willy Shih

Added on Sep 22, 2014, Purchased on Sep 22, 2014, Expires on Sep 22, 2015

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Product #:7015-HTM-ENGFormat: English Web Based HTML
In this single-player simulation, students play the role of a business unit manager at a battery company facing the classic Innovator's Dilemma. Students have to manage R&D investment tradeoffs between the unit's existing battery technologies versus investing in a new, potentially disruptive battery technology. Over the course of eight simulated years, students must address a number of challenges including the timing and level of investment across both mature and new businesses,
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Many batteries can typically only stand around 500 cycles and then need to be replaced. This is a challenge for portable device designers; the first failure mode is often the battery’s inability to hold a charge.  Self-discharge to 50%: The time it takes for a battery to self-discharge. Most rechargeable batteries lose some amount of their charge just sitting on a shelf. This limits their application in devices such as safety equipment that might sit for unpredictable time periods between use.
 Recharge Time: How quickly a battery will recharge. Fast recharge time is usually a consumer benefit, especially for things like mobile phones or music players. A typical NiMH battery can be recharged in two to four hours.
 Price: The cost variance of different battery types. Since small rechargeable batteries tend to come in standard form factors and output voltages, they are a fungible commodity with almost no barriers to substitution. Different battery types might require different chargers, but in general the low substitution costs make batteries a highly competitive commodity, where price is a major factor driving purchase decisions.
Interestingly, battery makers have tended to focus in relatively narrow product segments an d technologies. Disposable-battery makers have typically not become major players in rechargeables,