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Thursday, May 15, 2008

Harvard Business School On Montague Folding Bikes

The development of the Montague folding bike was cited this week on the Harvard Business School website as an example of creative product development. Montague's story was highlighted because it illustrated the difficulties faced when introducing innovation (such as a full size mountain bike that folds) to an established industry reluctant to accept major change.

Here's what they wrote:
"Montague's creative insight was to develop a folding bicycle with the look and feel of a traditional bike... But if you mention a folding bicycle, most people conjure up an image of a small-wheeled, oddly shaped vehicle that they wouldn't categorize as a 'real' bicycle. The challenge is to change the beliefs and behaviors of both consumers and the distribution channels so that Montague folding bicycles have legitimacy."

Harry Montague, an avid cyclist, is an example of the sort of "user-entrepreneur" studied by Tripsas (an associate professor in the Entrepreneurial Management unit at Harvard Business School). "As a user, you tend to pick up on needs that folks sitting back in the market research labs don't necessarily see," she says. "Montague wanted a real bicycle that would fold—something to use for serious cycling that was sturdier than available folding models. He designed and built a prototype in his spare time (while fully employed as an architect) and discovered that others wanted to buy one." Montague's son David became interested in commercializing the innovation, and they cofounded the company in 1987. Today, Montague is the world's leading producer of full-sized folding bicycles, and its products (Paratrooper folding bike) have proven durable enough to be air-dropped for use by paratroopers in the U.S. military.
Titled "Getting Down to the Business of Creativity," the story is a reminder of the important roles that creativity and innovation play in business.

To read the full story, visit http://hbswk.hbs.edu/item/5902.html

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