Saturday, May 22, 2004

Ten types of Innovation @
http://www.doblin.com/pov/TenTypesOverview.html

Finance 1
Business model How you make money Dell revolutionized the personal computer business model by collecting money before the consumer's PC was even assembled and shipped (resulting in net positive working capital of seven to eight days).

2
Networks
and
alliances How you join forces with other companies for mutual benefit Consumer goods company Sara Lee realized that its core competencies were in consumer insight, brand management, marketing and distribution. Thus it divested itself of a majority of its mfg. operations and formed alliances with mfg. and supply chain partners.

Process 3
Enabling process How you support the company's core processes and workers Starbucks can deliver its profitable store/coffee experience to customers because it offers better-than-market compensation and employment benefits to its store workers--usually part time, educated, professional, and responsive people.

4
Core processes
How you create and add value to your offerings Wal-Mart continues to grow profitably through core process innovations such as real-time inventory management systems, aggressive volume/ pricing/delivery contracts with merchandise providers, and systems that give store managers the ability to identify changing buyer behaviors in and respond quickly with new pricing and merchandising configurations.

Offerings 5
Product performance How you design your core offerings The VW Beetle (in both its original and its newest form) took the market by storm, combining multiple dimensions of product performance.

6
Product system How you link and/or provide a platform for multiple products. Microsoft Office "bundles a variety of specific products (Word, Excel, PowerPoint, etc.) into a system designed to deliver productivity in the workplace.
7
Service How you provide value to customers and consumers beyond and around your products An international flight on any airlines will get you to your intended designation. A flight on Singapore Airlines, however, nearly makes you forget that you are flying at all, with the most attentive, respectful, and pampering pre-flight, in-flight and post-services you can imagine.

Delivery
8
Channel How you get your offerings to market Legal problems aside, Martha Stewart has developed such a deep understanding of her customers that she knows just where to be (stores, TV shows, magazines, online, etc.) to drive huge sales volumes from a relatively small set of "home living" educational and product offerings.

9
Brand


How you communicate your offerings
Absolut conquered the vodka category on the strength of a brilliant "theme and variations" advertising concept, strong bottle and packaging design, and a whiff of Nordic authenticity.


10
Customer experience
How your customers feel when they interact with your company and its offerings Harley Davidson has created a worldwide community of millions of customers, many of whom would describe "being a Harley Davidson owner" as a part of how they fundamentally see, think, and feel about themselves.

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