1. I N N O V A T I O N A U D I T SONY THE GAME BEGINS IN 3 2 1

2. SONY Press Start ... May 7, 1946 and is headquartered in Minato-Ku,Japan. Operates three business units- Electronics, Entertainment and Financial Services. Major products -Televisions, Digital imaging, Semiconductors, Electronic components, Professional solutions, Medical Staff Strength of 168,200 183 countries. Mission: "To experience the joy of advancing and applying technology for the benefit of the public. Brand Message: Make. Believe.

3. SONY Core Competencies Brand Name Networking Global Market Position Design Development Manufacture MINIATURIZAT ION

4. SONY Innovative Organisation Restructuring in its organizational structure. The quest to be innovative is one of reasons for the restructuring. Latest Restructuring was on April 1st, 2012. Divisionalised and Adhocracy.

5. SONY Innovative Organisation

6. SONY Innovative Organisation Visionary-Top-down identification. President Kazuo Hirai, Sony switches to a new management structure with gaming - core pillar. New structure - Revitalization and Growth of Electronics Businesses and Deliver Compelling User Experiences as One Sony. Three core pillars: digital imaging, game and mobile.

7. SONY Initiatives to promote innovation Lunch time learning aimed at encouraging creativity and managing stress Sony University at nurturing talents anywhere in the world High Potential Programme-Progresses the core skills of Super Sony Folk Work Smart-Designed to enhance an individual's body, mind, emotions

8. SONY Diffusion of Innovation Diagram Nintendo Entertainment system (62 million units sold) 1972 Nintendo N64 (33 million units sold) Nintendo Super Famicon (49 million units sold) Odyssey, Magnavox (330,000 units sold) Innovators Sony Play station (125 million units sold) 1983 Nintendo, Color TV game6 (3 millions units sold, in Japan) Nintendo Game Boy (118 million units sold) Early Adopters Early Majority Source : http://dotpixelgames.com/wp-content/uploads/2010/04/video-game-timeline.jpeg Sony PS 2 (138 million units sold) Sony PSP (76 million units sold) Nintendo DS (154 million units sold) Xbox (24 millions unit sold) late Majority X Box 360 (76 million units sold) Laggards Sony PS 3 (77million units sold)

9. SONY Innovative Timeline Introducing New disc format Blu-ray in its new PS3, internet gaming Conflict with Nintendo, Entering Game Console Industry 1983 1994 2005 2013 2000 Introducing Dual-Analog Technology, Shift in User Experience Persuading Game developer to work under their new platform, CD-ROM Introducing PS4, Game Sharing, Face Tracking. More?

10. SONY Porters Generic Strategy Lower Cost Differentiation SONY Broad Target Cost Differentiation Leadership SONY Narrow Target Focus Focus Generic Strategy (Porter, 1980)

11. SONY Blue Ocean Diagram

12. SONY Response to threats and Opportunities

13. SONY SONY Technology Lock-In Strategy Technically differentiate product (incompatible with rival, so zero sum game) Introduce better quality products Form strategic alliances (catch-up) Develop more effective process technologies Price Target marketing in leading magazines and media Cross-leverage installed user bases in related markets Understand heterogeneous demand (distinct user groups) Build brand image amongst key socio-economic groups Improve / exploit distribution channels Exploit better organisational resources Exploit better access to key resources

14. SONY Processes Search Select Implement Capture Process is top-down Senior management search and select Middle to lower level management deal with Implementation Capture is determined as success or failure by the whole organisation

15. SONY Top management commitment and visible support for innovation Time based strategies Carry-over strategy Linkages CONTINUOUS INNOVATION AS A MULTI ACTOR PROCESS Research design and commitment Integration within the firm, Extensive networking Incremental development strategy, Upstream with suppliers Manufacturing strategy Process MARKET SUCCESS Implementation and launch, Downstream with demanding customers

16. SONY Linkages Collaborations: IBM & Toshiba Unity Technology Ustream Acquisitions: Psygnosis Verant Interactive Partnerships: Nintendo FIFA

17. SONY UEFA Champion League Tomorrows Hottest Titles Sponsorship Ozzfest Vans Warped Tour Dont mess with Zohan

18. SONY Learning: Kolbs experiential learning cycle Experience Honest capture of experiences (even costly failure) thus having raw materials to reflect Reflection what happened, what worked well, what went wrong etc.. Experience Experiment Reflection Conceptualizing capturing and codifying the lessons learned into framework and eventually procedures to build on lessons learned. Concept Experimentation the willingness to try and manage things differently next time, to see if the lessons learned are valid.

19. SONY Learning Capturing and re-using past experiences: - SCE in 1993 - Nintendo project - Collaboration - SMEs R&D & Business Development - Incentives to third-party software developers - Indirect knowledge sharing Experimentation: - Using CDs . - Using DVDs in PS2. - High price and still sales. - High speed core processor Cell in PS3 - Promoting independent game developers

20. SONY Learning Conceptualizing: - Releasing PS4 - lower price - Utilization of all Sonys resources (intelligence and information). Learning and Adaptability - Main strength - Cutting edge technologies into PSs hardware. - Improvising on the product even after its release there by finding new ways for price reduction. - Reasonably pricing of PS4. - Enabling offline mode in PS4. - Encouraging independent game developers.

21. SONY Strategy 7 6 5 4 3 Innovative Organization Learning 2 1 0 Process Linkages I N N O V A T I O N A U D I T