Innovation
Innovation is turning an idea into a solution that adds value from a CUSTOMER 's perspective.
Viewed in this way, Innovation can take many forms & either be big or through small steps with a clear focused goal,cumulatively market changing.
Types
- Product: this could be formulation, a change in packaging size, a new use for the product
- Own Invention:
- Adapted Technology: applying technology that already exists such as APs
- Disruptive: creating a new value re-thought proposition (think Uber)
- Marketing: getting the product or service to market in a new non traditional way
Sources
It is unlikely that meaningful concepts will be generated by a formulated New Product Development Committee .
To be successful Innovation has to be customer facing & so is most likely to come from the marketplace or interpretation of sales data trends.
Interaction with customers & prospects is key & the ability to LISTEN paramount.
This therefore means reliance on Owner interaction with customers & prospects or the Sales Force (if such luxuries still exist) but that Cinderella
function called the Sales Office should not be forgotten - it is in daily contact with the marketplace & with the right personnel could be a mine of
useful information.
BUT just remember quite often customers do NOT know what they want - they certainly did not articulate the need for the iPhone.
That is when the clever bit of intepretation of trends comes in.
Innovation Case Study 1 - Domino's Pizza Group
We have all heard of technology "Unicorns" who have applied technology to disrupt an industry with Uber & Spotify readily springing to mind.
We also widely appreciate how the advent of PCs, the Mobile Phone, 3D Printers, & the Web helped level the business playing field between obese corporates & SMEs.
Less well covered is how even the most mundane business can seize & retain competitive advantage thorugh the adoption of relevant technology advances.
Step forward Domino's Pizza Group: whilst a large PLC, its approach to exploiting available technology can be readily adopted by SMEs.
- Around 80% of its orders are now made online, versus 30% 6 years ago
- Two thirds of orders are now made on a smartphone or tablet, with its app now allowing for one click ordering & finely tuned payment options, to allow credit card data to be saved
- To maintain this "arms race" in technology & stay ahead of the compettion, Domino's invested heavily in technology- up 150% in 2 years
- This extends to its Head Office staff where out of 230, no less than 85 are software engineers & technologists
- BUT in focusing on the ultimate (eating) customer, Domino's forgot about its franchisees & sharing the increased profitabiltiy, which has soured relationships
hell o hoq are u
