MM 5014

MANAGEMENT OF INNOVATION,
TECHNOLOGY AND
ENTREPRENEURSHIP
MBA YPG 52, Institute of Technology Bandung
Name
: Valdi Mughni Budiman
Nrp
: 291144408

Elco Mandiri :
A brace to support patients and a business to support life
---------------------------------------------------------------------------------------------------------------The learning point :
1. The Founders ;
Dr. Deni Elius: He is a general practitioner and he is the founder of Elco Mandiri.
Christian: She focused as distributor for medical equipment for Operation Room and ICU
Dr. Elius Oldest Brother: He is responsible for financial and the patent issues
Desi: She is Dr. Elius youngest sister. She is responsible at production unit and human
resource.
2. Business Idea ;
The business idea is to help many patients in case of emergency with different economic
conditions. Dr. Elius decided to use wood as brace was come from the small hospital, he
found that a proper brace is not always available because of its expensive price and
uncomforing situation happened because made from recycle materials and unhygienic braces.
This brace can help people and also to make money for their family.
3. Marketing Strategy ;
Dr. Elius has observed a lot of need of braces for doctors and hospital as well as patients.
From these customer experiences, he could make wood braces which are practical,
comfortable, and hygienic and also offer low price to lower the barrier of small hospitals.
Finally, the customers recognized tha value of Elco brace and place many order.
4. Product innovation ;
Dr. Ellius makes new product development, new kind of braches which are useful to
customers. The product innovation is the key for companys growth. Elco has given an
exlcusive contract because Dr. Elius had succesfully finished a new product innovation
namely folding brace. in additon, Desi who take responsibility in productuin unit, forecast
that the production capacity will be increased as Elco Mandiri will grow further.

5. The Challenges & Issues ;

-

Standardization

Elco has made some standard procedures, patterns and template there are still product off the
forms. This happen usually with new or temporary workers. Another problem are the sewers
are moody so if they have a bad mood, everythings going wrong
-

University Researchers

I believe he need to find university researcher in Bandung to make his medical equipment
products more useful. For ex he can cooperate with FSRD ITB for making innovation
products design. Because the company need inovation to compete and grow in the market so
he needs to find university researcher with fresh idea of innovation.
-

Dr. Elius has to decide should Elco Mandiri go global by himself or joining with
companies.

By Himself
Advantages

Disadvantages

- The risk of failure is high

- The process of globalization may
be slow

He knows the drill because of

learning to globalize step by step
The company will gets full profit
The company has full control for
its products, brand & customers

By Join with Companies

Advantages
-

Low Cost
Low Risk

Disadvantages
- Elco cant control of its products,
brand and customers
- Elco will get small profit

Dr. Elius dont know the arrangement to cooperate with local manufacture