. How Did the Information Systems and the Organization Design Changes Implemented by Knudstorp Align with the Changes in Business Strategy?

294 Words2 Pages
. Jorgen Vig Knudstorp changed the way Lego did their business. He encouraged the designers to reuse components in their own products. Before this, the designers used to use 13000 components. After the reduction, they used only 7000 components, which was a big difference. This decreased up to 40% of designing cost. Each component’s mold costs up to 50000 euros. Thus, it was a significant decrease in cost. Since the designing cost became less, they could spend that money elsewhere to make sales better. They also started making blocks of famous super heroes and movies like Star Wars, Indiana Jones, Batman etc. This made a huge difference. This is similar to how Apple uses their old components to design new phones. Not only this, Apple also makes refurbished products. This means that they just replace the spoilt components of a phone with new components and resell it for a lower price. Lego also started making video games to keep customers satisfied. They made games which can be played on Computers, X-Box, Play Station and other important gaming devices. This was a huge step and people loved to see their favorite Lego characters virtually. They also entered Movie scene and made their own movies. One movie was released recently and did well at the box office. Animation also becomes easy for then since the size of the character is the same. They just have to change the look. Because of the growth, information systems of the company strained and they started hired more employees and opened more branches. They needed new technology for their games and movies. To solve some of these problems, Lego managers used similar techniques to create a modularized architecture for their information technology, making it possible to expand

More about . How Did the Information Systems and the Organization Design Changes Implemented by Knudstorp Align with the Changes in Business Strategy?

Open Document