Digital Microscopy at Carl Zeiss

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Digital Microscopy at Carl Zeiss

Ulrich Simon, the head of the Microscopy business group at Carl Zeiss AG knew that his unit was
facing a disruptive threat, so he chartered a special team to tackle the industrial segment. Given a
high degree of autonomy, the project team developed an understanding of the marketplace
challenge and proceeded to develop and execute on a new business plan. Simon gave the team
ample freedom to develop new processes and priorities appropriate to the market segment needs,
but he couldn't help but wonder whether it would continue as a stand-alone unit or he would need
to reintegrate it into the mainline business. He also was nervous about the plan itself. The team had
established timelines and milestones, but now they had to execute and deliver their first product
next year.

Q1. What was the Main parameter of value driving the microscopy in Industrial Segment and in
biomedical research/life sciences?
The Main parameter of value driving the microscopy in industrial segment was Ease of use,
productivity, price.
The Main parameter of value driving the microscopy in biomedical research/life sciences were High
performance, uncompromising design, flexible systems. (Users were Scientists, clinicians and
researchers)

 
 
Q2. What should Simon do to enhance design capabilities within two different microscopy
segments? Will it make sense to integrate two segments? If yes, why? If not, why? 
Simon should make the microscopes easy to use with easy user interface, improve features and
productivity to enhance the capabilities in the industrial and material research segment.
It would not make sense to integrate the two segments at this time, but first develop the digital
microscope and serve in the industrial and material research segment. It will make sense to
integrate the two segments when Carl Zeiss improve the digital microscopy technology to meet high
performance requirements of the biomedical and life-sciences technology. So, Carl Zeiss should work
on the S-curve of the digital microscopy.

 
Q3. If you were in Simon’s position, what strategies you would deploy in both segments.
The digital microscopy is a disruptive innovation as it is serving an unserved market and also it has
started at a lower level with low end equipment which are easy to use. This has found application in
industrial market and material research segment. As the S-curve of this technology is in nascent
stage and has potential to enter and disrupt other segments too, we would suggest entering this
segment to meet the needs of the customers in this segment and parallelly invest in development of
digital microscopy technology to tap other segments by improving and innovating in this technology.
As the conventional microscopy is currently being used in high end application, we should continue
to serve this segment.

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