Abstract:
The case discusses different steps which Mastercard has followed in its digital transformation journey. They involve opportunity framing, creating innovation pathways, finding digital transformation opportunities, and innovation with partners within adaptive ecosystems. With the objective to stop competing with other payment processing firms (like Visa or Amex) and start competing with cash, Mastercard has moved from an undifferentiated processor of payments to a builder of unique technological platforms.

Pedagogical Objectives:
- Illustrate a four-step digital transformation journey
- Demonstrate how companies can build innovation pathways for digital transformation and beyond
- Provide examples of successful ecosystem building strategies in for-profit and non-for-profit sectors

Keywords:
Strategy, Digital Trasformation, Fintech, Ecosystems, Platforms, Innovation, Innovation Labs, Innovation Processes, Partnerships

Abstract:
The Tesla case provides multiple opportunities to discuss core strategy and innovation topics, such as: • Patterns of innovation, e.g., new technologies competing to replace older generations • Types of disruption, e.g., low-end versus high-end • The innovation ecosystem, e.g., thinking beyond a single technology to the interdependence of an ecosystem of supporting technologies • Systems strategy, e.g., thinking beyond the product to understand the role of technology architecture and systems • The innovation process, e.g. learning under conditions of uncertainty, scaling up for execution.

Pedagogical Objectives:
The teaching note is organized around a set of discussion questions that bring out each of these issues in the case. Videos of Tesla’s factory (available online) can be used to make the case more vivid, or compared with a video of a General Motors manufacturing plant to inspire further discussion (URLs are cited at the end of the case).

Keywords:
Innovation, Disruption, Technology Change, Architectural Innovation, Technology Strategy, Systems, Radical Innovation, Entrepreneurship, Corporate Governance, Value Creation, Strategy and Implementation

Prizes won:
- 2018 Case Awards Winner, Strategy and General Management Category, Case Centre