Today, LEGO is expanding in a failing toy market, with a toy plastic bits that combine to make objects that are clearly old technology. How did LEGO pull off such a feat? To trace its turnaround, LEGO employed a unique framework. Through a cross-functional team, this new organisation strategically manages innovation activities and actions. The team takes a wide picture of the company's innovation initiatives and divides them into eight categories: 1. Core processes include sales, operations, and financial planning; 2. Enabling processes include forecasting, market planning, and strategic planning. 3. Promotional messaging, website creation 5. Platforms that provide new uses and designs for the building blocks, 4. Offerings packaging, product presentation 7. Sales channel merchants, direct marketing, and 6. Customer engagement customer service, customer relationships 8. Revenue and pricing models for businesses. LEGO has created a new product line of LEGO board games that players can build with LEGO bricks as a result of this new structure. Every time you play such a board game, it will be different. In 2009, the new board game was released in the United Kingdom and Germany, followed by a global release in 2010.

References O Connell, Andrew. 2009. Lego CEO Jrgen Vig Knudstorp on leading through survival and growth. Harvard Business Review, 87 (1): 25/http://www.lego.com/eng/info/default.asp?page=facts

How do you think the changes that LEGO made will reshape the firm for the long term?