Welcome to Strategic Innovation Simulation: Back Bay Battery You are the president of Back Bay Battery, Inc., a $240 million revenue division of a $40 billion consumer electronics manufacturer. Back Bay Battery produces two types of batteries, the absorbed glass mat (AGM) battery and a new supercapacitor (SC) battery. The AGM is a heavy, lead-acid battery that is easy to handle, withstanding vibration and extreme conditions well. AGM batteries represent 80% of the company's revenue and have been a mainstay of the business. The newer supercapacitor batteries make up the remaining 20% of revenue. Back Bay Battery sells its batteries to businesses. There are three primary markets: Automobiles. Several characteristics of AGM batteries make them attractive for high end vehicles. They can be placed somewhere in the interior of the vehicle or the trunk since they are sealed. The rising popularity of start-stop engine technology (which improves fuel economy) means an increased demand from automakers because AGM technology is well suited to the increased power demands and frequent cycling. They are also beginning to be used for braking energy recovery (regenerative braking). A generator attached to the drivetrain of a popular European SUV captures the energy released during braking and uses it to power the many electrical subsystems on the vehicle. Both of these applications improved fuel efficiency. Warehouse equipment. Automated logistics warehouses use many pieces of equipment that use electrical power, such as stackers and robots, and Back Bay has carved out a growing niche, supplying batteries for these systems. Many of these systems draw high startup power and they need to undergo frequent charging cycles.