From Low Cost to Global Leadership: Computime (Hong Kong) Leads Through Innovation

Abstract

The case describes the evolution between 1999 and 2008 of a family-owned contract manufacturing company into a publicly traded, US$400 million global firm. The son of the founder, Bernie Auyung, assumed the CEO position with the company during this period and has worked with his father to build a broader, professional management team. In the process the company has applied a range of leading-edge innovation management and strategy tools that put it far ahead of most Chinese peer companies. Computime provides an exceptional model for other companies in developing countries looking to evolve from a low-cost competitor into a global leading company with its own technologies and brands. Students are asked to assume Bernie's role and suggest the path forward. The teaching note describes what the team actually did, and addresses the questions raised at the end of the case.Computime provides an exceptional example of how to evolve from an entrepreneur-led startup competing on low cost and the vision of the founder to a global, professionally managed company listed on a major exchange (the Hong Kong Stock Exchange in this case). Students are also able to explore a company in the process of instituting many of the leading innovation management tools described in classes focused on innovation management. The case would also be quite valuable for classes focused on the challenges facing family enterprises that must evolve beyond the control of a visionary founder. It resonates particularly well with students in developing economies both in Asia and beyond.