Bosch India: Value for Money innovation in Common Rail Diesel Systems

Abstract

The case analyses some of the new product development and innovation efforts being undertaken at Bosch in India for their diesel Fuel Injection Systems (FIS) and draws management insights from the same. The key protagonist is Rakkiappan Baskaran, who heads Diesel Systems Research and Development at Bosch in India. The case starts in early 2014 in Bangalore, India, with Baskaran pondering the challenges presented to the company by the delay in mandatory implementation of Bharat Stage-IV emission norms by the Indian government. This delay would have a cascading effect and subsequently also delay the introduction of Bharat Stage-V norms. Bosch, in the past few years, has made several incremental innovative developments to its FIS, specifically those used in low price commercial vehicles (LPVs), which have made them ready to meet Bharat Stage-V emission norms. However, this delay means that they will have to redefine their strategy on how to derive the best possible outcomes from their innovations in this area, and that is the inflexion point in the case. In this context, the case looks back at the initial drivers and opportunities that prompted Bosch to embark on this series of innovations. It examines Bosch’s innovation culture and how it translates into the “value-for-money” innovation undertaken by the Diesel Systems group, imperative for developing markets such as India. A brief insight is also given into the group’s philosophy of product innovation and the processes underpinning this philosophy.