leading through innovation 201205 3hrs - · pdf fileleading through innovation lim liat,...

1111BvOTechOptimizing Business with Technology

Leading ThroughInnovation

Lim Liat, Lim Liat, Lim Liat, Lim Liat, BvOtechBvOtechBvOtechBvOtech9999 MayMayMayMay 2012201220122012

Email: Email: Email: Email: [email protected]@[email protected]@bvotech.comWebsite: Website: Website: Website: www.bvotech.comwww.bvotech.comwww.bvotech.comwww.bvotech.com

Blog: Blog: Blog: Blog: http://limliat.blogspot.comhttp://limliat.blogspot.comhttp://limliat.blogspot.comhttp://limliat.blogspot.com

BvOtech Optimizing Business with Technology 2222Copyrights of Bvotech

Lim LiatLim LiatLim LiatLim Liat• BVOTECH provides training and consulting on BVOTECH provides training and consulting on BVOTECH provides training and consulting on BVOTECH provides training and consulting on

helping businesses to be more successful through helping businesses to be more successful through helping businesses to be more successful through helping businesses to be more successful through � Corporate Performance Management Methodologies� Innovations & Creative Thinking (Triz, BVITS)� Thinking Skills & Knowledge Management � Creating a Learning & Innovative Corporation

• Clients include Government Ministries, Statutory Boards, GLCClients include Government Ministries, Statutory Boards, GLCClients include Government Ministries, Statutory Boards, GLCClients include Government Ministries, Statutory Boards, GLC’’’’s, MNCs, MNCs, MNCs, MNC’’’’s, SMEs, SMEs, SMEs, SME’’’’s s s s and Startand Startand Startand Start----ups. ups. ups. ups. Investment Grants Award EvaluationInvestment Grants Award EvaluationInvestment Grants Award EvaluationInvestment Grants Award Evaluation Panel Panel Panel Panel Member.Member.Member.Member.

• Sat on the advisory boards of departments of NUS, NTU andSat on the advisory boards of departments of NUS, NTU andSat on the advisory boards of departments of NUS, NTU andSat on the advisory boards of departments of NUS, NTU and Ngee Ang Poly. Ngee Ang Poly. Ngee Ang Poly. Ngee Ang Poly. Member of Government Economic Review Committee 2002 for ICT.Member of Government Economic Review Committee 2002 for ICT.Member of Government Economic Review Committee 2002 for ICT.Member of Government Economic Review Committee 2002 for ICT.

• B Engr (1B Engr (1B Engr (1B Engr (1stststst Class Honors Class Honors Class Honors Class Honors ---- Gold) University of Singapore 1974; Gold) University of Singapore 1974; Gold) University of Singapore 1974; Gold) University of Singapore 1974; M Engr University of Alberta, Canada, 1976M Engr University of Alberta, Canada, 1976M Engr University of Alberta, Canada, 1976M Engr University of Alberta, Canada, 1976

• GovernmentGovernmentGovernmentGovernment’’’’s Merit & Commonwealth Scholarships. 5 Joint US Patents.s Merit & Commonwealth Scholarships. 5 Joint US Patents.s Merit & Commonwealth Scholarships. 5 Joint US Patents.s Merit & Commonwealth Scholarships. 5 Joint US Patents.• More than 30 years of IT and Management experience. He was a pioMore than 30 years of IT and Management experience. He was a pioMore than 30 years of IT and Management experience. He was a pioMore than 30 years of IT and Management experience. He was a pioneer of neer of neer of neer of

Singapore Computer Systems in 1980 and left as DyCEO in Singapore Computer Systems in 1980 and left as DyCEO in Singapore Computer Systems in 1980 and left as DyCEO in Singapore Computer Systems in 1980 and left as DyCEO in 2003 (Rev $500M, 2003 (Rev $500M, 2003 (Rev $500M, 2003 (Rev $500M, 2000+ Staff, 9 countries)2000+ Staff, 9 countries)2000+ Staff, 9 countries)2000+ Staff, 9 countries) to start BVOTECH. to start BVOTECH. to start BVOTECH. to start BVOTECH.

• Contact: Contact: Contact: Contact: [email protected]@[email protected]@bvotech.com, website: http://www.bvotech.com , website: http://www.bvotech.com , website: http://www.bvotech.com , website: http://www.bvotech.com


Table of ContentTable of ContentTable of ContentTable of Content1. Innovation is Value Creation – not just new ideas or products

• Customers don’t buy products but outcome & wow-experience• Case Study & Discussion: Breadtalk.

2. Value is determined by Customers and is Multi-Dim ensional � There are many ways to increase your value besides price or even functions.� Not just economic value but emotional & social value as well.� The secret of Apple’s success is Shibumi – Simplificity in Elegance with Depth.

3. Value Is Implemented through your Business Model � Know the Four Major Components of any Business Model then…

� Know how to change the Business Game Rules

4. Market Diffusion follow a Life Cycle� Different types of innovations for different stages of the cycle� Do you have a sustainable portfolio of innovations & how to create one.� Case Study & Discussion: Apple over Nokia

5. Execution with Measures and Targets � Manage Kairos Opportune Time(milestone) and not just Chronos Time

6. Transformation - Breaking free from old world-view and inertia� Don’t let past success becomes the future stumbling block. Deliberate Transformation� Case Study & Discussion: Kodak and Xerox

7. Building the Culture for Innovation � Sustaining Continued Innovations � Case Study & Discussion: Zappos

8. Q&A.


1. Innovation is 1. Innovation is 1. Innovation is 1. Innovation is Value CreationValue CreationValue CreationValue Creation

Customers donCustomers donCustomers donCustomers don’’’’t buy products t buy products t buy products t buy products butbutbutbut an outcomean outcomean outcomean outcome and and and and a wowa wowa wowa wow----experienceexperienceexperienceexperience

They don’t buy drills but holes. Not just coffee but good times with friends

or refreshment on-the-go


More than a creative idea

Innovation = New Ideas

+ Implemented

+ Giving $Value (Saving)The Process to convert ideas to invention & to get $$$

Innovation means Selling, not just inventing, of id eas & things. Ref. Steve Jobs, T Edison, Peter Drucker… .

Converting Intangible Ideas into Tangible Value-Providing Realities. It is about value not new thin gs.

Innovation is about B usiness V alue Creation

Idea �� Process �� Invention �� Users �� Payments

BvOtech Optimizing Business with Technology 6666


2. Value is determined by 2. Value is determined by 2. Value is determined by 2. Value is determined by Customers Customers Customers Customers &&&&

it isit isit isit is MultiMultiMultiMulti----DimensionalDimensionalDimensionalDimensional

• There are many ways to increase your value There are many ways to increase your value There are many ways to increase your value There are many ways to increase your value besides price or even functions.besides price or even functions.besides price or even functions.besides price or even functions.

• NotNotNotNot just economic value but just economic value but just economic value but just economic value but psychological & socialpsychological & socialpsychological & socialpsychological & social value as well.value as well.value as well.value as well.


stickinessDon ’’’’t just compete on price. Think how to increase your offering value

in other rational, emotional & significance factors


Alberto AlessiAlberto AlessiAlberto AlessiAlberto Alessi’’’’s Formulas Formulas Formulas Formula

Developed from analysis of his company 300+ projects.

“Italian Design Factories”.

Hygiene factors

Motivators

If you are providing a service, can associated

with items that talk the same lingo

http://www.bnet.com/blog/sterling-performance/hat-tip-alessis-formula-for-innovation/668

Communication

& Language


http://www.slideshare.net/fred.zimny/roberto-verganto-design-driven-innovation

Light is not just Brightness but providing a comfortable, enchanting ambient.

Why should dining wares be boring ?Create new fascination and enjoy a better meal


Objects tell story - ConversationKids, want to drink?

Adapted from Prof Yao of dxmonline.com


Breadtalk Breadtalk Breadtalk Breadtalk 2011 Annual Report2011 Annual Report2011 Annual Report2011 Annual Report

16 countries, 400 boutique bakeries, 40 food atriums & restaurantsstaff strength of 6000 employees


HCL Competitive Curve HCL Competitive Curve HCL Competitive Curve HCL Competitive Curve –––– Think DifferentThink DifferentThink DifferentThink Different

• In a world full of In a world full of In a world full of In a world full of efforteffortefforteffort, I see , I see , I see , I see outcomeoutcomeoutcomeoutcome first first first first (through outcome based commercial (pricing) models)(through outcome based commercial (pricing) models)(through outcome based commercial (pricing) models)(through outcome based commercial (pricing) models)

• In a world of In a world of In a world of In a world of discrete servicesdiscrete servicesdiscrete servicesdiscrete services, I focus on , I focus on , I focus on , I focus on integrationintegrationintegrationintegration

• In an In an In an In an offeringsofferingsofferingsofferings----centriccentriccentriccentric world world world world ---- I see I see I see I see customercustomercustomercustomer centricitycentricitycentricitycentricity

• In a In a In a In a contractcontractcontractcontract driven world driven world driven world driven world ---- I practice I practice I practice I practice trusttrusttrusttrust & & & & transparencytransparencytransparencytransparency

• No more 'businessNo more 'businessNo more 'businessNo more 'business----asasasas----usualusualusualusual‘‘‘‘ (more of the same). (more of the same). (more of the same). (more of the same). I've seen the I've seen the I've seen the I've seen the inflectioninflectioninflectioninflection point...point...point...point...

� Back in 2005 HCL embarked on a transformational journey, focusing on value centricityvalue centricityvalue centricityvalue centricity in customer relationshipscustomer relationshipscustomer relationshipscustomer relationships and leveraging new market opportunitiesnew market opportunitiesnew market opportunitiesnew market opportunities while creating a unique employee experience.unique employee experience.unique employee experience.unique employee experience.


Breadtalk 2011 Annual ReportBreadtalk 2011 Annual ReportBreadtalk 2011 Annual ReportBreadtalk 2011 Annual Report

16 countries, 400 boutique bakeries, 40 food atriums & restaurantsstaff strength of 6000 employees


Is Breadtalk just selling bread?Is Breadtalk just selling bread?

Note: I have no relation to Breadtalk; Just observing and guessing their games ... for teaching purposes.

Vision: Establish BreadTalk as the foremost international, trend-setting lifestyle bakery brand

Mission : Leading a new lifestyle culture with new, innovative changes and creative differentiation to craft products with passion and vibrancy

Competitive Red Ocean ��Blue Ocean


2000 April George Quek & Wife invested $500K to start Breadtalk.2000 April George Quek & Wife invested $500K to start Breadtalk.2000 April George Quek & Wife invested $500K to start Breadtalk.2000 April George Quek & Wife invested $500K to start Breadtalk. 1July 11July 11July 11July 1stststst

Outlet opened at Bugis Junction Outlet opened at Bugis Junction Outlet opened at Bugis Junction Outlet opened at Bugis Junction –––– Large Shopping Mall. Dec, 2Large Shopping Mall. Dec, 2Large Shopping Mall. Dec, 2Large Shopping Mall. Dec, 2ndndndnd outlet at outlet at outlet at outlet at Novena Square, and HDB Bishan.Novena Square, and HDB Bishan.Novena Square, and HDB Bishan.Novena Square, and HDB Bishan.

2001 to develop BreadTalk as a global brand, leading the trend t2001 to develop BreadTalk as a global brand, leading the trend t2001 to develop BreadTalk as a global brand, leading the trend t2001 to develop BreadTalk as a global brand, leading the trend to break into o break into o break into o break into international markets .international markets .international markets .international markets .

2003 Central Kitchen. 50 varieties (150 now). Apr 2003 IPO. Fran2003 Central Kitchen. 50 varieties (150 now). Apr 2003 IPO. Fran2003 Central Kitchen. 50 varieties (150 now). Apr 2003 IPO. Fran2003 Central Kitchen. 50 varieties (150 now). Apr 2003 IPO. Franchising.chising.chising.chising.2007 Sales of $157M, 32 outlets in Singapore and 139 others in B2007 Sales of $157M, 32 outlets in Singapore and 139 others in B2007 Sales of $157M, 32 outlets in Singapore and 139 others in B2007 Sales of $157M, 32 outlets in Singapore and 139 others in Beijing, eijing, eijing, eijing,

Bangkok, Kuala Lumpur and Shanghai, and franchises in Dubai, HonBangkok, Kuala Lumpur and Shanghai, and franchises in Dubai, HonBangkok, Kuala Lumpur and Shanghai, and franchises in Dubai, HonBangkok, Kuala Lumpur and Shanghai, and franchises in Dubai, Hong Kong, g Kong, g Kong, g Kong, Indonesia, Kuwait, Nanjing, the Philippines, Shenzhen and TaiwanIndonesia, Kuwait, Nanjing, the Philippines, Shenzhen and TaiwanIndonesia, Kuwait, Nanjing, the Philippines, Shenzhen and TaiwanIndonesia, Kuwait, Nanjing, the Philippines, Shenzhen and Taiwan. Under . Under . Under . Under Group, 3 food courts in Singapore, 17 in China and one in Hong KGroup, 3 food courts in Singapore, 17 in China and one in Hong KGroup, 3 food courts in Singapore, 17 in China and one in Hong KGroup, 3 food courts in Singapore, 17 in China and one in Hong Kong, and ong, and ong, and ong, and six restaurant concepts in Singapore. 2,000 employees worldwide,six restaurant concepts in Singapore. 2,000 employees worldwide,six restaurant concepts in Singapore. 2,000 employees worldwide,six restaurant concepts in Singapore. 2,000 employees worldwide, of whom of whom of whom of whom 800 are based in Singapore.800 are based in Singapore.800 are based in Singapore.800 are based in Singapore.


BreadTalkBreadTalkBreadTalkBreadTalk Culture Culture Culture Culture –––– Values ExpressedValues ExpressedValues ExpressedValues Expressed

• Mission: Leading a new lifestyle culture with new, innovat ive changes and creative differentiation to craft produ cts with passion and vibrancy

• Vision: Establish BreadTalk as the foremost international , trend-setting lifestyle bakery brand

• Core Values：：：：

1. Team Building

2. Learning

3. Innovate

4. Life of Bread

5. Customer 1st

6. Trust is Top

• BreadTalk Stores have great interior design, using modern materials and giving the beautiful trendy image.

• BreadTalk Store has a open and a separate kitchen. • All products are made, baked and sold in the shop t o ensure

freshness• Large glass perspective of working space, all displ ayed in front

of the customer, so that staff, customers, products have the most user-friendly & direct communication.

• BreadTalk is a brand of service-oriented businesses , rather than production-oriented-based enterprises.

• BreadTalk Store are located in the choiced city cen ter, which isbased on high-quality, high-yield, quality service to win customers.

• BreadTalk Headquarter R&D - "creative and fashionabl e" as market positioning and segmentation.

Physical & Behavioral


Note: I have no relation to Breadtalk, observing and guessing their games ... for teaching purposes.

Integrative Synergistic ValueGeorge Quek 51


Behavioral Economics Behavioral Economics Behavioral Economics Behavioral Economics –––– Surprise!Surprise!Surprise!Surprise!

1.1.1.1.Decision making is not fully Decision making is not fully Decision making is not fully Decision making is not fully rational (economics)rational (economics)rational (economics)rational (economics)

2.2.2.2.The irrationality is predictableThe irrationality is predictableThe irrationality is predictableThe irrationality is predictable！！！！3.3.3.3.Social vs Market FrameworkSocial vs Market FrameworkSocial vs Market FrameworkSocial vs Market Framework

•Social is more powerful than cost$•Solution to big issue may not cost much•People pay more for green energy; bring their own shopping bags.

•Childcare Late Pick-up Problem• Charging a fine caused the late pick-up

frequency to be doubled！• Cancelling the fine brought no reduction.

http://www.youtube.com/watch?v=LmJzQ3cVt88

most most most most


Understanding Customers, Opportunities & Value Proposition


3. Value Is Implemented 3. Value Is Implemented 3. Value Is Implemented 3. Value Is Implemented through Business Modelthrough Business Modelthrough Business Modelthrough Business Model

---- Change the Game RulesChange the Game RulesChange the Game RulesChange the Game Rules1.1.1.1. Value Consumption Value Consumption Value Consumption Value Consumption –––– Customer Experience is the true Brand. Customer Experience is the true Brand. Customer Experience is the true Brand. Customer Experience is the true Brand. 2.2.2.2. Value Delivery Value Delivery Value Delivery Value Delivery –––– The ChannelsThe ChannelsThe ChannelsThe Channels3.3.3.3. Value Creation Value Creation Value Creation Value Creation –––– The ProcessThe ProcessThe ProcessThe Process4.4.4.4. Value Capture Value Capture Value Capture Value Capture –––– Pricing and Revenue Collection Model (Financial)Pricing and Revenue Collection Model (Financial)Pricing and Revenue Collection Model (Financial)Pricing and Revenue Collection Model (Financial)


Components of a Business ModelComponents of a Business ModelComponents of a Business ModelComponents of a Business ModelA combination to create a competitive advantage.

Suppliers Process Output Channels CustomersInput

Network/Eco-System

Product�Systems�Platforms

Core & SupportiveSolution & Service

Personalized Experience

Management & Organization

Business Model Innovation

Social-Media Innovation

Delivery, Marketing, Msg

Supply Chains

1. How you create value? 2. How you delivery value?3. How you value is consumed?4. How you get paid?

People&Skills


Realization of Value

• Consumption is a journey of many touch points.• I don’t care what you say, but I will never forget

how you make me feel.

AttentionInterestDecideAction


Doblin.comDoblin.comDoblin.comDoblin.com Types of Innovation & MarginsTypes of Innovation & MarginsTypes of Innovation & MarginsTypes of Innovation & Margins

1. Cust-Experience

2. Brand

3. Channels

4. Service

5. System/Platform

6. Products

7. Core Process

8. Enabling Process

9. Network-Partners

10.Business Model

Innovation is more than just product or service ….

Most$ Spent

Fin

ance

Pro

cess

Offe

ring

D

eliv

ery

Most $Profit


Is Apple iPod an mp3 Player?Is Apple iPod an mp3 Player?Is Apple iPod an mp3 Player?Is Apple iPod an mp3 Player?It is about your listening to your favorite It is about your listening to your favorite It is about your listening to your favorite It is about your listening to your favorite

song at $1 per song (not pay $20 CD song at $1 per song (not pay $20 CD song at $1 per song (not pay $20 CD song at $1 per song (not pay $20 CD of 19 songs that you donof 19 songs that you donof 19 songs that you donof 19 songs that you don’’’’t want) on t want) on t want) on t want) on the movethe movethe movethe move

The new value experience has The new value experience has The new value experience has The new value experience has …………Challenges:Challenges:Challenges:Challenges:1.1.1.1. Songs Songs Songs Songs –––– Music Industry Music Industry Music Industry Music Industry

�� copy protectioncopy protectioncopy protectioncopy protection2.2.2.2. Selection, Purchase, DeliverySelection, Purchase, DeliverySelection, Purchase, DeliverySelection, Purchase, Delivery

�� iTunes Software on Mac, PCiTunes Software on Mac, PCiTunes Software on Mac, PCiTunes Software on Mac, PC3.3.3.3. Mobile Play Device Mobile Play Device Mobile Play Device Mobile Play Device �� iPodiPodiPodiPod4.4.4.4. Rational, Emotional, Significance Rational, Emotional, Significance Rational, Emotional, Significance Rational, Emotional, Significance

AppealAppealAppealAppealStylistic Design, Ease of use, Social Status, Innovative, Artistic

Mini Jan 2004

4GB, 8hrs

1st G: Oct 2001

5-10GB, 10hrs, Mac

2nd G: Jul 2002

20GB, 10hrs, Mac/Win

3rd G: Apr 2003

40GB, 8hrs, Mac/Win

Nano Sep 2005

4GB, 14hrs

6.5th G: Sep 2008

160GB,

36hrs/6hr video

iPod Touch

Sep 2007

8-32GB 22hrs iPhone


Customer Experience Features MatrixCustomer Experience Features MatrixCustomer Experience Features MatrixCustomer Experience Features Matrix

Prestige

ProLife-Health

Environment

Wow

Lifestyles

Easier

Safer

How

fixed?

Community

Better

Cheaper

Faster

How

Retired?

How better?(Accessories)

How I Use?How

Delivered?

How I

Buy?

How I

know?Time

Factors

In specific features that are meaningful and valueable to your customers

Rational

Emotional

Significance


10 Design Rules for10 Design Rules for10 Design Rules for10 Design Rules for thethethethe DummiesDummiesDummiesDummies

1.1.1.1. No Brain Rule No Brain Rule No Brain Rule No Brain Rule –––– Everything is obvious. Everything is obvious. Everything is obvious. Everything is obvious. • No Manual & No learning needed.

2.2.2.2. One Button Rule One Button Rule One Button Rule One Button Rule –––– Minimize Choices Minimize Choices Minimize Choices Minimize Choices 3.3.3.3. Complete Rule Complete Rule Complete Rule Complete Rule ---- Just All Needed & No moreJust All Needed & No moreJust All Needed & No moreJust All Needed & No more4.4.4.4. No Movement & Effortless Rule. No Movement & Effortless Rule. No Movement & Effortless Rule. No Movement & Effortless Rule. 5.5.5.5. Ergonomics/Naturally Rule Ergonomics/Naturally Rule Ergonomics/Naturally Rule Ergonomics/Naturally Rule

• Finger is better than Mouse or Styler6.6.6.6. Instant Rule Instant Rule Instant Rule Instant Rule –––– The Response time is 0 The Response time is 0 The Response time is 0 The Response time is 0 7.7.7.7. Just in Time RuleJust in Time RuleJust in Time RuleJust in Time Rule8.8.8.8. Ask Once RuleAsk Once RuleAsk Once RuleAsk Once Rule9.9.9.9. DonDonDonDon’’’’t Bother Me Rulet Bother Me Rulet Bother Me Rulet Bother Me Rule

• Fix it yourself. Call me when you can’t.10.10.10.10. Know Me Rule Know Me Rule Know Me Rule Know Me Rule –––– Anticipate for Me.Anticipate for Me.Anticipate for Me.Anticipate for Me.

The Dummy’s Golden Rule: Minimum effort with Maximum Returns” or “MaxValue@Ze roCost”

http://mind-value.blogspot.com/2011/03/10-design-rules-for-dummies.html


Value Delivery & Changing Game Rules

The conventional rules:1. Supplier�manufacturers�distributors

�wholesalers� retailers� end-users.2. Physical, Info, $ tiedly linked-up. 3. Sequential. Break them!


Value Creation Process


Secret of Meaningful Differentiation:Secret of Meaningful Differentiation:Secret of Meaningful Differentiation:Secret of Meaningful Differentiation:Intensified & SimplicityIntensified & SimplicityIntensified & SimplicityIntensified & Simplicity

Business Model

Value Creation (operations) Value DeliveryValue Consumption

& Collection

Suppliers&Partners

Process & Spt*

PeopleSkills

Management&Organization

Products&Systems

Solutions&Service

Channels& Msg-ScMd*

Customer Experience

1 Have Differentiating Factors across the Value-Chain

2 But have 1 – 2 factors only in each category

3 Intensified the Factor against next best competitor’s

Leading Music

Labels

Outsourced

Manufacturing

99cents a Song

on the go

Brand, Retail

Stores, Online

WOW Customer

Experience

Innovative, Ease of Use,

…APPLE…Culture

iTunes, iPod,

Accessories

4 Reduce Number of Factors � Main ObjectiveDo those valuables that are easy for you & hard for others

*Spt: Supportive Processes e.g. IT applications; ScMd: Social Media Network

High Touch, high valueHigh Efficiency, low costs


Blue Ocean Strategy Blue Ocean Strategy Blue Ocean Strategy Blue Ocean Strategy –––– New MarketNew MarketNew MarketNew MarketStrategy Canvas Strategy Canvas Strategy Canvas Strategy Canvas –––– Factors CurvesFactors CurvesFactors CurvesFactors Curves

Eliminate Reduce Raise Create

High Value

Is it valueable to customers and cheap and easy for me to do

Location-

Presence

Speed Kids-Attraction Service Taste Price Ambient Menu Choices Healthy Food Funs & Thrills

Low Value

McDonald Restaurant

Food Court

My NewCoy

• Customer can’t tell you. Think

non-consumers

• Competitors can’t tell you,

think alternatives.

• Use customers' terms,

outside-in, to describe the

factors

• Use 6 Paths

• Apply E-R-R-C

• Try BVITS 10 ops


The Radial ChartThe Radial ChartThe Radial ChartThe Radial Chart

Location-Presence

Speed

Kids-Attraction

Service

Taste

Price

Ambient

Menu Choices

Healthy Food

Funs & Thrills

McDonald

Restaurant

Food Court

MyNewCoy


Differentiation 2x2 or Cross: Differentiation 2x2 or Cross: Differentiation 2x2 or Cross: Differentiation 2x2 or Cross: ThumbThumbThumbThumb----Speaker vs. CompetitorsSpeaker vs. CompetitorsSpeaker vs. CompetitorsSpeaker vs. Competitors

MobilitySize & Weight

Quality of Sound

Low

Low

High

High

Size of shape denotes price

STech

Thumb-Speaker

Head Phones

Ear-Phones, Built in Speakers

Major BrandsCreative, Sony, Bose


4. Market Diffusion Life Cycle4. Market Diffusion Life Cycle4. Market Diffusion Life Cycle4. Market Diffusion Life Cycle

Following SFollowing SFollowing SFollowing S----Curve and Double Bell CurvesCurve and Double Bell CurvesCurve and Double Bell CurvesCurve and Double Bell CurvesDifferent Types of Innovations for Different StagesDifferent Types of Innovations for Different StagesDifferent Types of Innovations for Different StagesDifferent Types of Innovations for Different Stages


SSSS----Curve of PhotographyCurve of PhotographyCurve of PhotographyCurve of Photography

Photo camera by capturing image through chemicals exposure to light (level 4) based on scientific principle of light (level 5)

PerformancePerformancePerformancePerformance

Digital Camera

Film Camera

Subsystems improvement（Level 1-2 )LCD Display of settings（Level 3）

Image capture based on CCD/CMOS light sensitivity (Level 4)

Creative DestructionJoseph A. Schumpeter 1912

Market success supportedby improvement in printingTechnology color-ink-jet. Innovation ecosystem.


Dealing with Darwin::::How Great Companies Innovate at Every Phase of their Evolution

Product�Service or

�Consumables(pay-in-use)

Category-Maturity Life-cycle

Adapted from Geoffrey A. Moore, 2005, “DEALING WITH DARWIN”

Buy the Books

�� Meaningful

Customer Intimacy

Operation Excellence

Reposition into a growth categoryIn product or application innovation

TALCTech Adoption Life Cycle

ProductLeadership

Disruptive

Productize

Application, Solution

Platform

Line Extension Enhancement Experiential,High Touch

Marketing

OrganicRenewal

StructuralM&A

Sell & Exit

Category blur

Value/Lean Engineering

IntegrationModularization

Process Renewal

Value Migration

New Category

Mature Market

http://www.dealingwithdarwin.com/

Innovator Early Early Late Laggard

Adopter Majority

Cultural Factors?Services?Processes?


Case Study: Apple over NokiaCase Study: Apple over NokiaCase Study: Apple over NokiaCase Study: Apple over NokiaWhat do you are the reasons for the success of Apple What do you are the reasons for the success of Apple What do you are the reasons for the success of Apple What do you are the reasons for the success of Apple

over the Leader Nokia in smartphone?over the Leader Nokia in smartphone?over the Leader Nokia in smartphone?over the Leader Nokia in smartphone?• ____________________________________________________________________________________________________________________________________________________

• ____________________________________________________________________________________________________________________________________________________

• ____________________________________________________________________________________________________________________________________________________

• ____________________________________________________________________________________________________________________________________________________

• ____________________________________________________________________________________________________________________________________________________


Net cloud centric

1 to 1

1 to Net

Is there a need?Less is More

Chrome Tablet Win by openness

Win by Integration


Value Capture


How to Beat How to Beat How to Beat How to Beat ““““FreeFreeFreeFree””””


Can You Survive & Growth ?


5. Execution with Objectives, 5. Execution with Objectives, 5. Execution with Objectives, 5. Execution with Objectives, Measures and TargetsMeasures and TargetsMeasures and TargetsMeasures and Targets

Kairos Opportune Time vs Chronos TimeKairos Opportune Time vs Chronos TimeKairos Opportune Time vs Chronos TimeKairos Opportune Time vs Chronos Time


Strategy Execution with Balanced Strategy Execution with Balanced Strategy Execution with Balanced Strategy Execution with Balanced Scorecard Scorecard Scorecard Scorecard –––– A Simple ExampleA Simple ExampleA Simple ExampleA Simple Example

FinancialMeasures & Targets

eg +Cash Flow

CustomersValue Proposition

eg Low-cost

ProcessKnow-howeg Efficiency

Learn&GrowKey Job Roles &

Skillseg Numbers& Competences

Learn&Grow Support Systems

eg IT

Learn&GrowCulture

Climate Survey

Learn&GrowSelect, Dev,

Motivate, RetainTalentsA-Class

Turnover %

无为无为无为无为而治而治而治而治

1. Know and Learn by setting Measures + Targets2. Let the system do the managing3. Train and Motivate the People that they self-managed


Kairos HappeningKairos HappeningKairos HappeningKairos Happening----Time vs Chronos TimeTime vs Chronos TimeTime vs Chronos TimeTime vs Chronos Time

• Seasons or Cycles Seasons or Cycles Seasons or Cycles Seasons or Cycles –––– right task for the right time (MDLC)right task for the right time (MDLC)right task for the right time (MDLC)right task for the right time (MDLC)• Effectiveness vs Efficiency Effectiveness vs Efficiency Effectiveness vs Efficiency Effectiveness vs Efficiency –––– Not all minutes Not all minutes Not all minutes Not all minutes are equalare equalare equalare equal....

� Structure time for creativity, idea generation, reflections.• Outcome and not effortOutcome and not effortOutcome and not effortOutcome and not effort

� Your contribution is defined by value you create and not the amount of time you spend creating it

� Effectiveness from engaged heart, brilliant mind and perfected skilled body through practices.

• You canYou canYou canYou can’’’’t manage time but manage your taskst manage time but manage your taskst manage time but manage your taskst manage time but manage your tasks� By cause-effect, first thing first, importance of priority.� By linked objectives, measures and targets ….� How you spend your money and time is your real priority

even though you did not plan for it.


6. Innovation: Breaking free 6. Innovation: Breaking free 6. Innovation: Breaking free 6. Innovation: Breaking free from old worldfrom old worldfrom old worldfrom old world----viewviewviewview

1.1.1.1. Innovation Inertia Innovation Inertia Innovation Inertia Innovation Inertia –––– Experience determine our world viewExperience determine our world viewExperience determine our world viewExperience determine our world view2.2.2.2. RVP Theory RVP Theory RVP Theory RVP Theory –––– Success is the stumbling block to ChangeSuccess is the stumbling block to ChangeSuccess is the stumbling block to ChangeSuccess is the stumbling block to Change3.3.3.3. Disruptive Innovation Disruptive Innovation Disruptive Innovation Disruptive Innovation –––– Kodak vs XeroxKodak vs XeroxKodak vs XeroxKodak vs Xerox


Non-consu

mers

Non-consu

ming Contexts

New Market Disruption




Compete against non

Compete against non

Compete against non

Compete against non----consumptionconsumptionconsumptionconsumption

Sustaining Innovation

Better products for established markets

Diff

eren

t Per

form

ance

Mea

sure

Target overshot customers with

lower cost business model

RVP fights change

RVP fights change

RVP fights change

RVP fights change

Moore’ Market/Category Development Life Cycle.

Telephone PCs

Photocopiers

AutoCADBudget Airlines

Digital PhotographyISP’s WiFi & Skype

Time

Per

form

ance

Disruptive Innovation TheoryDisruptive Innovation TheoryDisruptive Innovation TheoryDisruptive Innovation Theory

Company improvement trajectoryCustomer demand trajectory

LowLowLowLow----end Disruptionend Disruptionend Disruptionend Disruption

Blue OceanBlue OceanBlue OceanBlue Ocean

New Value Creation

New Value Creation

New Value Creation

New Value Creation

low-end �low m

argin

Are you neglecting your low ends that give opportunity for disruptors?Have you look at creating new markets – your non-consumers?Raynor – Deliberate Disruption for Organization Growth


Wrong Mission Wrong OutcomesWrong Mission Wrong OutcomesWrong Mission Wrong OutcomesWrong Mission Wrong Outcomes• Typewriter Smith Corona Typewriter Smith Corona Typewriter Smith Corona Typewriter Smith Corona

� missed the boat because they thought they were in the typewriter business. From Desktop to Portable to Electronic Assist to Ink on Paper.

• KodakKodakKodakKodak –––– The Chemical Film CompanyThe Chemical Film CompanyThe Chemical Film CompanyThe Chemical Film Company� Loose out in the rise of digital technology.� Actually, Kodak was very early in the digital game. Except that it

was never taken seriously then because they are still successful in the film world.“If it not broken, don’t fix it.”.

� Wrong Strategy. They addressed the High End market with a new digital technology and find it not-marketable – much more expensive than film and not as good. (Read “Seeing What’s Next”By Clay Christiansen on Theories of Innovations).

� It changes its mission to imaging. 19 Jan 2012 – Eastman Kodak filed for Chapter 11 bankruptcy protection

• Stories of 2 brick layers. What are you doing?Stories of 2 brick layers. What are you doing?Stories of 2 brick layers. What are you doing?Stories of 2 brick layers. What are you doing?� One says I am laying brick.� Another says I am building a Cathedral� Question – what did become of them?


Xerox TransformationXerox TransformationXerox TransformationXerox Transformation


7. Building the Culture for 7. Building the Culture for 7. Building the Culture for 7. Building the Culture for InnovationInnovationInnovationInnovation

Sustaining Continued Innovations Sustaining Continued Innovations Sustaining Continued Innovations Sustaining Continued Innovations


Competitive AdvantageCompetitive AdvantageCompetitive AdvantageCompetitive AdvantageDecreases over timeDecreases over timeDecreases over timeDecreases over time

Examples of GAP

• New product

• Lower priced offering

• Superior customer- service

Examples of CAP

• Proprietary technology

• Market share leadership

• Brand popularity

GA

P

CAP

Earnings

Time

GAP (Competitive Advantage Gap)• Differentiation from closest competitor• Created superior returns

CAP (Competitive Advantage Period)• Barriers to competitor entry, customer exit• Sustains superior returns

1. External: Competitors catch-up.2. Internal: growth results in complexity, proliferation of offerings and pride and

company slowly departs from its core differentiation strength that brings the success!

剑剑剑剑道道道道：「：「：「：「步不步不步不步不稳则剑乱稳则剑乱稳则剑乱稳则剑乱，，，，步不快步不快步不快步不快则剑则剑则剑则剑慢慢慢慢。」。」。」。」


Case Study Case Study Case Study Case Study ---- ZapposZapposZapposZappos


A Internet Retailer Offer thisA Internet Retailer Offer thisA Internet Retailer Offer thisA Internet Retailer Offer this

•The 3CThe 3CThe 3CThe 3C’’’’s Businesss Businesss Businesss Business

•Free shippingFree shippingFree shippingFree shipping•Free return shippingFree return shippingFree return shippingFree return shipping•365365365365----day return policyday return policyday return policyday return policy•24/7 124/7 124/7 124/7 1----800 toll800 toll800 toll800 toll----free number on every pagefree number on every pagefree number on every pagefree number on every page•Overnight delivery occasionally for loyal Overnight delivery occasionally for loyal Overnight delivery occasionally for loyal Overnight delivery occasionally for loyal customers.customers.customers.customers.

Customer Service

Clothing (includes shoes)

Culture of

Happiness


Customer Service: What we do internallywe do internallywe do internallywe do internally

• No call times, no sales-based performance goals for reps.• The telephone is one of the best branding devices available.• Run warehouse 24/7. Inventory all product (no drop-shipping).• 5 weeks of culture, core values, customer service, and warehouse

training for everyone in Las Vegas office.• We’ll pay you $2000 to quit. (Hiring takes 2 interviews – for

competence and another by HR for culture fit)• Culture Book (stories of how staff & customers saw and did)• Interviews & performance reviews are 50% based on core values &

culture fit.• Twitter helps build company culture. (Employees attend a training

class on use of Twitter)


Zappos Core Values1.1.1.1. Deliver WOW Through ServiceDeliver WOW Through ServiceDeliver WOW Through ServiceDeliver WOW Through Service2.2.2.2. Embrace and Drive ChangeEmbrace and Drive ChangeEmbrace and Drive ChangeEmbrace and Drive Change3.3.3.3. Create Fun and a Little WeirdnessCreate Fun and a Little WeirdnessCreate Fun and a Little WeirdnessCreate Fun and a Little Weirdness4.4.4.4. Be Adventurous, Creative, and OpenBe Adventurous, Creative, and OpenBe Adventurous, Creative, and OpenBe Adventurous, Creative, and Open----MindedMindedMindedMinded5.5.5.5. Pursue Growth and LearningPursue Growth and LearningPursue Growth and LearningPursue Growth and Learning6.6.6.6. Build Open and Honest Relationships With Build Open and Honest Relationships With Build Open and Honest Relationships With Build Open and Honest Relationships With

CommunicationCommunicationCommunicationCommunication7.7.7.7. Build a Positive Team and Family SpiritBuild a Positive Team and Family SpiritBuild a Positive Team and Family SpiritBuild a Positive Team and Family Spirit8.8.8.8. Do More with LessDo More with LessDo More with LessDo More with Less9.9.9.9. Be Passionate and DeterminedBe Passionate and DeterminedBe Passionate and DeterminedBe Passionate and Determined10.10.10.10. Be HumbleBe HumbleBe HumbleBe Humble


Factors of Business Factors of Business Factors of Business Factors of Business Success Success Success Success • Again I saw that under the sun Again I saw that under the sun Again I saw that under the sun Again I saw that under the sun

� the race is not to the swift, � nor the battle to the strong, � nor bread to the wise, � nor riches to the intelligent, � nor favor to those with knowledge, � but time and chance happen to them all.

• In addition, no human being knows his time: In addition, no human being knows his time: In addition, no human being knows his time: In addition, no human being knows his time: � Like fish captured in a cruel net, � or as birds caught in a snare, � so also are human beings caught

by bad timing that surprises them.

Ecc 9:11-12 by Solomon – Wisest man of the world


Factors of Business SuccessFactors of Business SuccessFactors of Business SuccessFactors of Business Success

1. Speed1. Speed1. Speed1. SpeedAgility: Decision making, mobilizationAgility: Decision making, mobilizationAgility: Decision making, mobilizationAgility: Decision making, mobilization

2. Strength2. Strength2. Strength2. StrengthResources, sizesResources, sizesResources, sizesResources, sizes

3. Wisdom3. Wisdom3. Wisdom3. WisdomKnowing & doing the right thingsKnowing & doing the right thingsKnowing & doing the right thingsKnowing & doing the right things

4. Understanding4. Understanding4. Understanding4. UnderstandingDiscernment, positioningDiscernment, positioningDiscernment, positioningDiscernment, positioning

5. Skill5. Skill5. Skill5. SkillKnow howKnow howKnow howKnow how

6. Timing6. Timing6. Timing6. TimingRight time Right time Right time Right time –––– not just being 1not just being 1not just being 1not just being 1stststst, trends, trends, trends, trends

7. Chance7. Chance7. Chance7. ChanceOpportunities or MisOpportunities or MisOpportunities or MisOpportunities or Mis----fortunefortunefortunefortune

Combination Brings

SuccessOne Factor alone is

Not Enough

8. Be Watchful of Changes!

Ecc 9:11-12



ConclusionsConclusionsConclusionsConclusions1.1.1.1. Innovation is Value CreationInnovation is Value CreationInnovation is Value CreationInnovation is Value Creation

• Customers don’t buy products but outcome & wow-experience2.2.2.2. Value is determined by Customers and is MultiValue is determined by Customers and is MultiValue is determined by Customers and is MultiValue is determined by Customers and is Multi----Dimensional Dimensional Dimensional Dimensional

• There are many ways to increase your value besides price or function• Not just economic value but emotional and social value as well.

3.3.3.3. Value Is Implemented through Business Model Value Is Implemented through Business Model Value Is Implemented through Business Model Value Is Implemented through Business Model ---- Change the Game RulesChange the Game RulesChange the Game RulesChange the Game Rules� Value Consumption

• Experience is the true Brand. Experience is the true Brand. Experience is the true Brand. Experience is the true Brand. • A journey A journey A journey A journey ---- from knowing, attraction, experience from knowing, attraction, experience from knowing, attraction, experience from knowing, attraction, experience ………… and upgrade.and upgrade.and upgrade.and upgrade.• Minimax Minimax Minimax Minimax ---- Not many functions but fewer meaningful functions implemented iNot many functions but fewer meaningful functions implemented iNot many functions but fewer meaningful functions implemented iNot many functions but fewer meaningful functions implemented in depth.n depth.n depth.n depth.

� Value Delivery – Not necessary a straight sequence.� Value Creation – The process, internal and external/open exchanges.� Value Capture – Pricing and Collection Model. Users need not pay! Attention is value…

4.4.4.4. Market Diffusion Life Cycle Market Diffusion Life Cycle Market Diffusion Life Cycle Market Diffusion Life Cycle ---- Following SFollowing SFollowing SFollowing S----Curve and Double Bell CurvesCurve and Double Bell CurvesCurve and Double Bell CurvesCurve and Double Bell Curves� Different types of innovation for different stages of the cycle

5.5.5.5. Execution with Measures and TargetsExecution with Measures and TargetsExecution with Measures and TargetsExecution with Measures and Targets� Manage Kairos Opportune Time(Milestones) vs Chronos Time

6.6.6.6. Transformation: Breaking free from old worldTransformation: Breaking free from old worldTransformation: Breaking free from old worldTransformation: Breaking free from old world----view and inertiaview and inertiaview and inertiaview and inertia� Don’t let past success becomes the future stumbling block. Deliberate Transformation.

7.7.7.7. Building the Culture for Innovation Building the Culture for Innovation Building the Culture for Innovation Building the Culture for Innovation ---- Sustaining Continued Innovations Sustaining Continued Innovations Sustaining Continued Innovations Sustaining Continued Innovations

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