Six Innovation Models
Creators- Apple,Tesla,Nerfix,Lululemon Athletica
Solutionbuilders –Nike,Starbucks,GoPro,Traget,Under Armour
Leveragers -Zara,Toyota Motor,Costco
Fast followers -Reck
itt,Benckiser Group, Tencent ,JP Morgan Chase
Define your innovation buckets
Innovation Leader – Determine Gap between growth and current operations
Top Leaders-Determine broad categories of innovation that could fill gap
Zero in on a few strategic opportunity areas
Innovation Leader & Internal Advisers: Meet at least dozen customers to probe unmet needs
Innovation Leader & Top Leaders: Hold workshop to choose 2-3 opportunity areas
Form a Small Team to Develop innovation
Innovation Leader– Dedicate a handful of people to developing innovations
Innovation Leader,CEO& CFO-Find and Eliminate “ZOMBIE” Innovation Projects
Development Team & Innovation Leader-Develop Process Checklist
Create a Mechanism to shepherd Projects
Innovation Leader:-Select and train senior leaders to oversee development team, and established Oversight Rules
Senior Shepherds & Development Team – Conduct First review and first Innovation Project
Paths to Business Model Innovation
What Mix of Products or Services Should You Offer?
Search for commonalities across products.
Create a hedged portfolio.
When Should You Make Your Key Decisions?
Postpone the decision.
Change the order of your decisions.
Split up the key decisions.
Who Are the Best Decision Makers?
Appoint a better-informed decision maker.
Pass the decision risk to the party that can best manage the consequences.
Select the decision maker with the most to gain.
Why Do Key Decision Makers Choose as They Do?
Change the revenue stream.
Synchronize the time horizons.
Integrate the incentives.
Create a culture of innovation
Influencing innovation and ideas at the organizational level.
Acknowledge and reward innovation. Promoting innovation and ideas should be on every leader´s scorecard.
Inject creativity with acquisitions
Dedicate time to innovation
Suspend assumptions and judgements
7 Criteria to Select the Best Idea
Clarity, Usability, Stability, Scalability, Stickiness ,Integration, Profitability
Evaluating your innovation
Any original concept, new or improved device, product, material, business model, process or service can be considered an innovation. The true test of whether an innovation can become a business success is when:
a new device, product or service becomes accepted by the marketplace
Very few innovations end up making money for their creators. Many factors can contribute to this low success rate, such as:
the innovation is not technically feasible
We Know the Best
We are Listening
We Do it Best
Seeking share to Steal
Protecting our turf
Ready to react
Typically led by a visionary,creators disrupt,markets and make focus,big bets
Solution Builder win by understanding and Delighting customers
Leverage innovate their core business model to drive ongoing advantage
Expander use a core capability to enter and dominate adjacent markets
Defender focus on points of advantage in mature or slow – Changing sector
Fast Follower optimize their capabilities to react rapidly to competitive innovations
A closed Innovation approach
Excellence in customer insight
Concentration on innovation that can speed the expansion of the model
A Mandate for growth. A Focus on one or two advantaged capabilities.
Continued improvement to maintain edge of current offering
A Focus on sensing and Speed to improve on competitive Innovation and lower risk
Deliberate life cycle management
A Focus on the full purchase experience
A Focus on one or two advantage capabilities, consistent in market expansion
Consistent in market experimentation
Rigorous defensive monitoring of potential disruption
Investment in go to market excellence
A Limited number of big bets
Centralised governance to keep the customer at the centre of innovation
An open empowering innovation culture
An open empowering Innovation culture
Use of M&A and partnership to keep pace
Flat organisation to facilitate rapid decisions
Reckitt,Benckiser Group, Tencent ,JP Morgan Chase
Lesson to be learned
Details Regarding Operation
A platform for learning about anything
Leverage the intelligence and expertise of normals to create a massive intellectual marketplace.
Is an educational marketplace, anyone can attend these classes by paying $20 or $25 ,but in past march Skill share reduced it for $10.Like other educational start up Skillshare doesn’t use professors from top-notch universities you need not be a Ph.D. to be able to teach something useful and relatively inexpensive — to become a lifelong learner
Personal styling made smarter by data and trendy part-time fashionistas
A product that uses smart data to surprise and delight — and save consumers time — is a win.
Stitch Fix originally targeted the mid-20s urban professional who has a demanding job and doesn’t have much time to shop, but appreciates being on-trend and looking nice. Combination of the art and science hasn’t been seen before in retail industry
Cutting out the middleman — especially a behemoth one — and transforming a medical device into a fashion accessory
Change the way people see an industry.
Warby Parker eliminated the intermediary and added not only an immense cool factor, but also a social good element.
Reinventing the world of stationery, by taking it online, then back offline
Post started in 2008 as the U.S. Postal Service’s biggest enemy — it encouraged people to email invitations and announcements, made pretty with hundreds of design templates. The site was free to use, though premium templates and envelope liners required prepaid “Coins.”
Curation of sustainable apparel with an emphasis on the items’ backstory and beautiful design
Storytelling — and the goods’ path to consumers — matters, and people will pay a premium for it.
Focus on high-quality, hand-crafted goods that are ethically produced (think: vegan leggings), locallysourced, environmentally conscious and made in America
On-demand home services, like cleaning or repairs, bookable from a sleek mobile app
Convenience is key.
The way we set up Handybook is to think about all the services you need inside your home and how we can be a remote control for managing those services.” Looks like people are clicking that remote.
Multiple, symbiotic revenue streams for the Popsugar woman
Content drives commerce, and people love a one-stop shop.
It’s become a global lifestyle brand with 41 million unique visitors and 234 million pageviews monthly.
A twist on the subscription service — Naturebox isn’t curating, it’s making all-natural snacks in-house
Making your own product gives the business an edge unparalleled by competitors who curate.
To date, NatureBox has developed 120 snack varieties and shipped 1 million boxes. Naturebox is taking on the $64 billion snack food category that to date has been chock-full of manipulative food science and unhealthy additives
Tracks the items you want via SKU, makes shopping (even more) fun via a Tinder-like interface
Shoppers like saving money; helping them do it means everyone wins.
The startup’s Hukk It Chrome extension creates a one-click experience for tracking coupon codes. (70% of discounts in the marketplace are coupon code-based).
A fully customizable registry, with group-buying for bigger gifts and a “cash fund.” Down with pots and towels!
A beautiful interface and the ability to customize go a long way, as does reinventing the traditional way of doing things.
This gifting trend “supports our bigger belief that couples today want to register not just for tangible products, but also for experiences that allow them to spend time together and keep date night alive,”
Ebooks plus a beautiful user interface
Embrace the direction of media consumption habits, make the price undeniable.
The monthly subscription is $9.95, which is far less than the price of a single book, hardcover or paperback. Oyster has emerged as a runaway success. In 2012, the social reading startup raised $3 million in 2012 from Founders Fund, and since then — in addition to raising another $14 million
Upending the taxi/transportation ecosystem with on-demand drivers and dynamic pricing
Innovation is an uphill battle, but it’s one worth fighting.
Uber the world’s largest taxi company, owns no vehicle .Uber has become a fixture in some of the world’s biggest cities. To date, the company has raised $1.5 billion and has hinted at expansion to other logistics markets, like same-day delivery and errands.
Bootstrapped, cause-oriented apparel with an army of campus reps
Millennials like customization and social enterprises — and they’ll evangelize for you.
Each of the pocket patterns on a Serengetee tee originates from a place the founders have visited and is tied to a social cause in the region. Customers personalize shirts (base color + pocket pattern) and thereby support a cause, thus becoming tied to and invested in global issues.
Fashion meets media in this fashion label, whose designs are inspired by customer interests
The customer is right, especially when it comes to her own taste.
Helps to reduce excess inventory and eschews fast fashion in favour of quality goods. where style-minded users could create their own “tear sheets.” Those tear sheets were then used by founder Allison Beal as inspiration for the inaugural StyleSaint collection, StyleSaint makes new collections every six to eight weeks based on those tear sheets, and uses $10.1 million of venture capital to fuel growth.
Create a sharing economy that utilizes empty rooms, apartments and homes, upending the hotel sector
Sharing is caring — peer-to-peer models save consumers money, help owners make money and create a more authentic, local experience for travel.
The world largest accommodations provider owns no real estate. collaborative consumption.” The site hosts 300,000 listings and has helped more than 4 million travellers book stays. Not content with just the space booking element, the site is also experimenting with group dining experiences.(Net worth $3.8Billion)
Rent the Runway
Rent inventory of high-end dresses at a fraction of the price to create a “Cinderella moment” and introduce women to brands they wouldn’t otherwise wear
Aspirational fashion and try-before-you-buy are potent sales drivers.
Rent the Runway was founded after a closet-full-of-clothes-and-nothing-to-wear moment so women could have access to the red carpet looks they see on celebrities, without breaking the bank (rentals are typically 10-15% of the dress’ ticket price).
Subscription boxes whet the appetite for beauty fiends
A little curation goes a long way in a crowded industry.
The mother of all subscription services. The beauty startup spawned an entire industry and influenced several of the businesses on this list. Birchbox introduced us to expert curation, the joys of surprise and delight and the idea of discovery ecommerce.