As the world’s largest producer of industrial enzymes, Novozymes had been strong for many years to bio-engineer enzymes that break down cellulose into fermentable sugars could invest. In 2010, the company had launched what would have thought that is a breakthrough product for the conversion of crop residues of corn into fermentable sugars for the production of fuels. But the problem was that the company controls only a piece of the value chain. To be successful in this nascent area, should the … Read more »

As the world’s largest producer of industrial enzymes, Novozymes had been strong for many years to bio-engineer enzymes that break down cellulose into fermentable sugars could invest. In 2010, the company had launched what would have thought that is a breakthrough product for the conversion of crop residues of corn into fermentable sugars for the production of fuels. But the problem was that the company controls only a piece of the value chain. To be successful in this nascent area, the company should fit into an existing ecosystem? If so, how much coordination effort required to explore the many pieces, including equipment and yeast to integrate suppliers? Or should Novozymes build their own ecosystem? And if so, how much control should be left on each level of the value chain? The case is to expose students to the challenges of the compilation value chain participation strategies in an environment where they can learn about industrial biotechnology, including some cutting methods in directed evolution.
To maximize their effectiveness, color cases should be printed in color.
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from
Willy Shih,
Chai Sen
Source: Harvard Business School
14 pages.
Release Date: 1 July 2013. Prod #: 614001-PDF-ENG
Novozymes: definition of cellulosic ethanol value chain HBR case solution

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