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How do these technologies create business value for the implementing organizations. Please read the case and answer3 questions at the end.

How do these technologies create business value for the implementing organizations.
Please read the case and answer3 questions at the end.

Goodyear, JEA, OSUMC, and Monsanto: Cool Technologies Driving Competitive Advantage.

If necessity is the mother of invention, then capitalism is

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surely the mother of innovation. Companies are being

driven to develop unique applications of undeniably cool

technologies by the drive to create a sustainable competitive

advantage. “At the end of the day, as cool as this thing we’ve

developed is, it’s a tool,” says Stephanie Wernet, Goodyear’s

CIO. “It is meant to serve a business end. In our case, this

tool lets us put out new, more innovative products faster

than the competition.”

Working with Sandia National Labs, Goodyear’s IT

department developed software to design and test tires virtually.

In the past, the company built physical prototypes and

tested them by driving thousands of miles on tracks. Using a

mathematical model, the software simulates tire behavior in

different driving conditions so that the designer can see how

the tire gets pushed, pulled, and stretched as it rolls down a

road, hits bumps, turns corners, screeches to a halt, and grips

the road in wet, dry, and icy conditions. Goodyear wanted to

shorten that time to get its products to market more quickly.

Three research and development employees advanced

the idea of testing prototypes using computer simulations,

which could do the job faster.

The company had never done simulations but figured

initial investments and subsequent maintenance costs were

worth the payoff. Goodyear’s cost of goods sold, as well as its

sales, decreased by 2.6 percent from 2003 to 2004, the year

its first fully simulated tires hit the market. Meanwhile, the

research and development (R&D) budget for tire testing and

design decreased by 25 percent.

Custom-built software runs on hundreds of processors on

hundreds of Linux computers in a massively parallel computing

environment. Goodyear invested more than $6 million to

build this high-powered computing environment. It plans to

expand and upgrade its Linux clusters to meet business demands

for new tires and to improve the fidelity of its virtual

tests. The company believes it is the first tire maker to use

computers to design and test its wheels. Although the auto

industry has done computer-assisted design work since the

1980s, the technology had not been applied to tires because

their malleable materials made simulation difficult.

Designers can perform 10 times more tests, reducing a

new tire’s time to market from two years to as little as nine

months. Goodyear attributes its sales growth from $15 billion

in 2003 to $20 billion in 2005 to new products introduced as

a result of this change.

Public utility JEA uses neural network technology to

create an artificial intelligence system it has recently implemented.

The system automatically determines the optimal

combinations of oil and natural gas the utility’s boilers need

to produce electricity cost-effectively, given fuel prices and

the amount of electricity required. It also ensures that the

amount of nitrous oxide (N2O) emitted during the generation

process does not exceed government regulations.


 

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