MBA501: Dynamic Strategy and Disruptive Innovation Assessment 2 Organisation Case Study – Fantasy Film Structure Fantasy Film is a digital animation studio that specialises in animated feature films, digitally animated advertising, digital animation software, and digital special effects for live action films. Although the organisation has production facilities in Brisbane, San Francisco, and Los Angeles it remains centrally controlled by a senior executive team from company headquarters located in Sydney. The managerial structure is ‘top down’ meaning that all decisions such as project appraisal and selection are made by the senior executive team and then filter down to the lower levels in the organisational hierarchy. Four Businesses Fantasy Filmoperates the following four strategic business units: 1. Fantaspace This business produces digital animation feature films generating $4.8 billion in revenue. The Fantaspace production “Slippery Bob” won the Academy Award last year for best animated feature film. 2. Advantage This business creates digitally animated advertising for television and the Internet and generates $1.9 billion in revenue for Fantasy Films. Important clients include Amazon, Tesla Motors, and Apple. 3. Anisoft This business builds digital animation software generating $200 million in revenue. DreamWorks has just signed on as a client subscriber. 4. DigiFX This business produces special effects for live action feature films and generates $150 million in revenue. The business has just been contracted to perform the digital special effects work on the upcoming film ‘Aquaman’. The findings of a recent report into these four business and their respective markets are presented in the following tables: Business Findings Market Findings New Product Fiasco– ‘Script Doctor’ Anisoft recently completed a new product development project called ‘Script Doctor’. The software program helps storywriters and film directors to identify potential problems in early drafts of movie scripts such as weak characters and underdeveloped scenes. The product cost $3 million and six months to develop. When the managers of Anisoft presented their completed product ‘Script Doctor’ to the managers of Fantaspace for their feedback they discovered that Fantaspace had already been using a very similar (but slightly superior) script analysis program they had developed themselves over five years ago. In fact, Fantaspace believe their Academy Award for “Slippery Bob” would not have been possible without their own in-house script analysis program. The situation has raised some serious concerns for the senior executives of Fantasy Film. Why did the managers of Fantaspace fail to realise their script analysis program could be packaged and marketed to Anisoft clients? And why did the managers of Anisoft waste $3 million and six months developing a product that already existed within the organisation?