The difficulty of audio visual and group B & O has dismissed half of its innovation division, despite a rescue plan that includes many more new products. People are baffled by the strategy, but director Kalle Nielsen maintains its direction.

There will be fewer conceived ideas for new products from Bang & Olufsen future. Audio and visual group, which is under heavy financial pressure after a nosedive know sales and declining earnings, has laid off a significant part of the staff in charge of devising new concepts and products to its portfolio.

According to Berlingske Business' information is well over half of the 40 employees of the 'Idéfabrik, its product innovation department either been fired or have even left the company over the past six months.

Most have been dismissed in connection with the recently held firing rounds where approximately 400 employees had to wave goodbye to the job.

But several of the B & Os, both current and former employees say to Berlingske Business, that they are baffled by the decision to cut so badly in the innovation department. It is contrary to the strategy, says the criticism.

'How can we on the one hand say that you will have several new products on the street, and with the other hand cut the department to develop them?, "Says the bemused by an anonymous B & O employee.

Redundancies are part of the rescue plan and new strategy, Pole Position, CEO Kalle Nielsen's part.

Sales of new double

The goal is to reverse the trend in the B & O, who had a true rædselsår in 2008 with a naughty streak downward revisions and hiding rate and a sub-target is that sales of new products, more than double in the coming year.

But according to CEO Kalle Nielsen, there is nothing contradictory in, on the one hand, to dismiss in the innovation department and on the other hand, focus on that new products will save the company.

"For the first we cut less than the average cuts in the organization of product development organization. And furthermore we change the way we develop new products by establishing a common technology platform, so one should not start from scratch to develop new technologies to all new products. Thereby we achieve a more efficient, while we can focus on developing new product features, "explains the director.

Pinedød forced to cut

And he backed up by Lars Topholm, equity analyst at investment bank Carnegie.

"The cuts are natural in that they are in crisis and in that they create a single technology platform, so they need fewer men," says Lars Topholm.

He sees, however, also risks associated with the B & Os cuts, but stresses that at this time is the key for B & O simply to survive.

"There is obviously a risk of losing the creative element, and it is my great concern for the B & O prospectively, but inversely with their economic situation is really critical, and they are pinedød forced to cut.They simply do not have the freedom to invest in innovation to the same extent as before. "

Fear old modes

However, it is not just a question of whether B & O management on the one hand, rates of innovation, on the other hand, cuts in development that concerns the B & O employees, Berlingske Business has spoken to.

They argue that it is primarily the employees of the former IdéLab made redundant and that there is a shift in the company towards earlier times when it absolutely had designers who specified.

Since IdéLab was founded in 2003 by the then Director Torben Ballegaard Sorensen, it was as a counterpart to the established development in the company, which chief designers as David Lewis or Jacob Jensen came with an idea, the engineers translated into reality.

IdéLab would rather develop digital concepts, but already in 2006 in an article in the renowned business magazine Business Week, it was clear that cooperation between the designers and the digital concept developers did not work optimally.

"They have their own agenda," said chief designer Davis Lewis for the magazine about the people from IdéLab.

Digital important development

Many of them are now redundant, including a portion of those who were part of the BeoSound 5, B & Os newly launched digital sound system.

But the thrushes B & O down IdéLab and digital developments can have fatal consequences for the company, warned a source with detailed knowledge of B & O, and suggests that it is precisely in IdéLab, digital ideas born and developed.

B & O director Kalle Nielsen refuses, however, that the company in any way cut down on the digital development of decimate IdéLab.

'With the adjustments we've made, we have sought to balance the number of employees who work with new concepts and with those who subsequently achieve them, "he said and stressed that the B & O aims to be advanced as of digital innovation.

"Digital development is absolutely essential. Indeed, the development of digital technology a key element in Pole Position Strategy and we have shifted responsibility for the top level of the product development organization so that the digital has been pulled far forward, "says Kalle Nielsen.

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B & O Cuts down development