A123Systems Harvard Case Solution & Analysis

123Systems was a young company that was founded on the basic research materials at the Massachusetts Institute of Technology. Co-founder of the company, the-Ming Chiang, a professor at the Massachusetts Institute of Technology and served as a scientific consultant. Intellectual property based on science, which offered a radical method of lithium-ion batteries, which promise a high energy density, obtained a license from MIT. The concept of the company was based on laboratory demonstrations, the three components of the battery can be selected and processed in such a way that they organize themselves (due to internal molecular forces). This led to the fine structure of the battery and increase performance. After 14 months of research and development, the company found that it requires more time and resources than originally anticipated to take self-assembled battery on the market. However, additional IP for a new cathode material, which presented the interim market opportunities, also has been licensed from the laboratory of Chiang Kai-shek at the Massachusetts Institute of Technology. The new material was an advantage compared to the current electrode material: it meets the criteria for self-assembly, and it can replace the electrode in millions of lithium-ion batteries currently in production. The management team must decide whether to continue a breakthrough self-assembly technology or move resources to the commercialization of a new electrode material, and then return to the original technological breakthrough. "Hide
by H. Kent Bowen, Kenneth S. Morse, Douglas Cannon Source: Harvard Business School 15 pages. Publication Date: May 08, 2006. Prod. #: 606114-PDF-ENG

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