Innovation at Caterpillar: The D7E Tractor Harvard Case Solution & Analysis

In 2009, Caterpillar shipped its starting D7E tractor, an "electric drive" machine in which electric motors moved the tracks along with blade, utilizing electricity from a generator powered by the diesel engine. In an industry where new products provided functionality gains of merely several percentage, the D7E moved 10 percent more stuff per hour, using 10- fuel that its forerunner. A much lower lifetime operating cost, had 40 percent fewer moving parts, as well as it was also simpler to control. When the job was initially approved in 2003, the D7E was meant to prove the electric drive theory for tractors out.

The D7E was picked for this particular function in part as it was a relatively low-volume machine, and supplied less risk for the new technology. Electrical drive was expected to be adopted by other products in the tractor product line of Caterpillar if successful. However, by the end of 2013, this had really not yet happened, nor had the firm announced plans to do that. It raises questions about the technology had not been rapidly accommodated to other Caterpillar tractors.

PUBLICATION DATE: February 27, 2014 PRODUCT #: SM223-PDF-ENG

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