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APPENDIX 9.1

INNOVATION AT OAKLAND

FURNITURE – THE ROLE PLAYERS

>> ALEX RHEINGOLD: MANAGING DIRECTOR
In a few minutes, you will be chairing a meeting of a working group you have
established to discuss the possible adoption of ERP in Oakland. During this
meeting – which you will ensure keeps to time as is your usual practice – the
group will be addressed by a consultant, Sandy Corbett, on the benefits of ERP.
You saw Sandy (of Corbett Consulting) giving an impressive talk at a recent
industry conference on this topic – hence the invitation. You want to give people
in Oakland an opportunity for discussion before the final decision has to be
made. Knowing Oakland’s propensity for inertia you are keen that some deci-
sion is made to take the company forward. ERP seems to have great potential
for Oakland. You have a keen personal interest in this since you were the driving
force behind the recent management buyout, which at one point involved taking
out a second mortgage on your family home. Although this brought you close
to your Chief Designer, Rowan Gregory, some other members of the manage-
ment team have criticized you in the past for not really trusting them. They have
suggested that you sometimes go in and do things to suit you that are properly
their responsibility.
You are highly knowledgeable about the furniture industry and about Oak-
land’s place in it. You appreciate the variety of products in the industry (including
upholstery, bedding, and bedroom, kitchen, dining, occasional and office furni-
ture) and are aware of trends in the industry. These include the increased impor-
tance of fitted kitchens and other fitted furniture over the last decade or so; the
‘furniturization’ of many industrial and consumer products (such as TV cabinets,
DVD/CD/video storage, gas and electric fires, refrigerators and dishwashers);
the emergence of ‘minimalist Scandinavianstyle’ kitchen and bedroom furniture;
the growth of a bespoke sector; and increased competition from firms across
Europe. You are also aware that different products necessitate quite different
design parameters. Even where ergonomically similar, furniture is manufactured
to different severity grades as specified by FIRA (the Furniture Industry Research
Association). Oakland has focused on dining and occasional furniture, both of
which have been slower growing. It has suffered somewhat as a result, leading
the firm into losses after its initial very successful early growth. Nevertheless,

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