• Top Ten Innovations in an Organisation

    • June 21, 2020
    • Posted By : NichefinConsulting Admin
    • Comments Off on Top Ten Innovations in an Organisation
    Type NoDescriptionExamplesCase Study
    1Profit ModelAd-Supported – Charge companies to place advertisements on your product. Flexible Pricing – Pricing changes based on market demand. Membership – Offer additional benefits in exchange for a membership fee. Metered Use – Users pay by the quantity of use instead of a flat fee. Switchboard – Create a new marketplace by connecting multiple sellers to multiple buyers.  Gillette took advantage of its customers’ user habits and strategically began to charge more and more for the once inexpensive blades. Without thinking twice, customers began to pay a lot for a razor that would soon dull and be tossed aside. Gillette enjoyed substantial profit boosts as a result of its timely shift in profit model.
    2NETWORK  Alliances – Share the risks and benefits of a partnership with a common goal, such as greater purchasing power. Open Innovation – Outsource research and development by making R&D needs known widely. Supply Chain Integration – Acquire or create a relationship with a supplier to lower costs. Secondary Markets – Find customers for “by-products” not initially seen as products.  Target succeeds by leveraging its unique partnerships with high-end designers to elevate its brand from just inexpensive wares. When Target launched its first of many major design partnerships, this innovation distinguished them from competitors. To date, Target has worked with over 75 major designers, from clothing to houseware.
    3STRUCTURECompetency Center – Create hubs of people and resources that specialize in a given skill and support an entire organization in that particular area. Corporate University – Invest in large-scale training for employees with a dedicated space and methodology. Knowledge Management – Codify information and insights for internal dissemination so multiple business units can all benefit. Outsourcing – Use external firms rather than internal staff to handle discrete tasks and projects.  Decentralization and transparency are at the core of Whole Food’s management philosophy. Rather than making decisions at the corporate level and issuing edicts to individual stores, each department within a given store has a wide berth for decision making. This structural innovation has created a culture wherein departments compete for profitability, and employees strive to outperform one another. The success of decentralization was made possible by an equal commitment to transparency.
    4PROCESS  Crowdsourcing – Outsource given tasks and cast a wide call for others to complete them. Flexible Manufacturing – Set up a manufacturing process that can be easily changed, customized, or redirected. Lean Production – Dramatically eliminate the waste and associated costs through everyday processes. On-Demand Production – Set up purchasing and fulfillment systems such that products are only produced when ordered.  Zipcar: Rather than building a complex infrastructure, Zipcar focused on cars and parking spots. This streamlined design lead to an exceedingly smooth rental experience for customers. Customers simply walked up to the car and unlocked it with their pre-approved “Zipcard”. No long longs, unnecessary paperwork, or add-on fees. Since the process was automated, management could easily focus on statistics such as which cars were rented the most, which might be having issues, or ways to fill inventory gaps.
    5PRODUCT PERFORMANCE  Added Functionality – Upgrade an existing product with new features or uses. Conservation – Highlight how a given product conserves environmental resources. Feature Aggregation – Combine the functions of multiple products into one. Performance Simplification – Dumb down a product to only its core and most useful function.  OXO Good Grips was initially focused on enabling those with relatively minor motor disabilities (e.g., trouble gripping or bending over) to maintain their independence while cooking. From observing his arthritic wife, Farber saw someone whose life could be significantly improved by cooking tools that were easier to grasp and maneuver and more ergonomically designed.  
    6PRODUCT SYSTEM  Complements – Put forth new products that are related to older products. Extensions/Plugins – Offer products, often from other manufacturers, that “go with” or “plug in” to a product you sell. Modular Systems – Design products that are functional separately but increase in functionality when used together. Product/Service Platforms – Sell products and services that work in conjunction with one another.Scion ingeniously leveraged the concepts of a product system in each of its car sales. As a brand of Toyota, Scion was an effort to capture sales from younger generations that preferred customization and choice in their purchases. Whereas competitors sold new pre-designed vehicles, Scion took the approach of allowing buyers to customize each detail of their new car. Each add-on was part of the greater product system and offered the potential for higher margins.
    7SERVICEConcierge – Offer indirectly related and unexpected services at customer’s request. Guarantee – Assure that products or services will be refunded if they fail to meet expectations. Loyalty Programs – Establish a system wherein customers are incentivized to buy even more due to special perks, rewards, and points. Personalized Service – Harness an individual’s specific preferences to provide tailored service.  Zappos had ten core values, the first of which is “Deliver WOW through service.” Key to this value is the fact that management empowered customer service representatives to take extraordinary actions on behalf of customers. These features not only made Zappos an attractive acquisition for Amazon, but they also enabled Zappos to spin off a consultancy, Zappos Insights, that helps other companies transform their approach to service.  
    8CHANNELFlagship Store – Invest in heavily branded, experience-rich retail stores where customers can experience your brand fully. Go Direct – Sell to customers directly online. Multi-Level Marketing – Utilize a third-party, unaffiliated sales force to sell the products they buy from you in bulk. Pop-Up Presence – Create temporary, low budget but high impact experiences for customers via these pop-up “shops” with more than a kiosk feel.Nespresso’s channel innovations ensured that customers never have to search hard to find the capsules for their pint-sized espresso machines. While Nespresso’s multitude of channels did add some complexity to the business, it allowed customers a variety of buying preferences that ultimately made it more attractive to customers. To appeal to younger, tech-savvy generations who prefers to buy online, Nespresso has an online Nespresso Club that sends automatic email reminders when it’s time to re-order. Lastly, Nespresso finds even more channels via B2B sales to hotels and airlines.
    9BRAND  Certification – Create a unique designation named after your brand that can be applied to products or services made by others. Component Branding – Elevate the overall value of new products by using branded components. Private Label – Establish your brand for goods manufactured by others. Value Alignment – State and bring into line company values and brand identity.  Traditional groceries rely on the power of individual product brands to drive sales within their stores. Trader Joe’s, however, has famously taken the opposite approach. With its private label Trader Joe’s brand, the store seeks out unique, seasonal, and quality products. By sourcing directly from individual suppliers, it locates lesser-known products and often appeals to customers’ fancies for buying local.
    10CUSTOMER ENGAGEMENT  Community and Belonging – Create opportunities where your customers can foster connections with one another. Experience Automation – Remove a repetitive task from a customer’s plate, freeing up their time for more enjoyable activities. Experience Simplification – Transform a complex experience into something simple, delighting customers. Mastery – Help customers deepen their skills or knowledge in a given subject through experiences or products you enable.By making it possible to see the full picture of one’s financial status in one place, Mint.com substantially simplified the challenge of keeping tabs on personal finances. Examples of how Mint.com engages users in new ways with their finances include automatically update information based on recent transactions, automatically tag and categorize purchases, and suggestions for ways to save or budget.    

    Source: Ten Types of Innovation: The Discipline of Building BreakthroughsBY: LARRY KEELEY, RYAN PIKKEL, BRIAN QUINN, HELEN WALTERS