BUSM7046
INNOVATION FOR NEW
MARKETS
WEEK 1
Your Facilitator
LET’S GET
INTO
TODAY’S
SESSION
Introductions
Unit Information
Concepts Introduction
SUPPORTING
ONLINE
MATERIALS
DETAILS (1)
Link to shared file
(1)
Classroom
Seminar
Every Wednesday at 6 pm from 3 April
onwards (10 weeks)
(2) Pre-Class
Innovation
exercises
Each week there is an innovation exercise you
need to prepare for before the weekly class /
seminar.
Prepare your notes for discussion during the
session
(3) Readings
Where applicable weekly readings will be
available for your reflection
3
(4)
Multimedia
Source
SUPPORTING
ONLINE
MATERIALS
DETAILS (1)
These are various
videos which you
need to watch and
address the
reflective questions
that follow
4
SUPPORTING
ONLINE
MATERIALS
DETAILS (2)
(6)
Innovation in
Action
Thinking
ChallengeApplying
Your Learning
These will be a variety of tasks to be
completed by students during the tutorial.
(7)
Innov
Monitor Case
Studies
Case studies to reinforce concepts will be
used in the sessions
(8)
Assignment
Support
There is a dedicated discussion forum
where you can post questions on the
assignments.
5
WEEK IN BUSINESS ACTIVITY
WELCOME
WE NOW LIVE IN THE AGE OF
“INNOVATION”
SO WHAT ABOUT INNOVATION AND NEW MARKETS?
ASSESSMENT OVERVIEW
ASSESSMENT
NUMBER
ASSESSMENT ITEM AND DUE DATE
LEARNING
OUTCOMES
VALUE
(/100)
1.
Seminar Presentation (Individual) (20 minutes)
1,3
15%
1,2,3
35%
3,4
20%
1,2,4
30%
Due: (Week 4)
2.
Group: Up to 3, 10 mins present
Case Study Report (Individual) (1,500 words)
Due: (Week 6)
3.
Scenario Workshop (Individual) (1,000 words)
Due: (Week 8)
4.
Project (Group):
Report (2,000 words) (20%)
Due: (Week 10) Group: Up to 6
Presentation (10 minutes) (10%)
Due: (Week 10)
OUTLINE
EXAMINE AN INDUSTRY SECTOR THAT YOU ARE FAMILIAR WITH, YOU ARE
THEN REQUIRED TO:
ASSESSMENT 1
SEMINAR
PRESENTATION
(15%)
DUE WEEK 4
•
PROVIDE AN OVERVIEW OF THE SECTOR OUTLINING THE KEY TRENDS IN
THE SECTOR
•
OUTLINE THE MAIN TYPES AND SOURCES OF INNOVATION IN THE SECTOR
•
IDENTIFY WHAT DISRUPTIONS MIGHT OCCUR IN THE SECTOR GIVEN YOUR
ANALYSIS OF THE TRENDS AND ARTICULATE HOW THESE DISRUPTIONS
MIGHT THREATEN EXISTING ORGANISATIONS
•
IDENTIFY WHAT NEW OPPORTUNITIES MIGHT EMERGE IN THE SECTOR AS A
RESULT OF THE DISRUPTIONS.
DETAILS
• STUDENTS WILL BE REQUIRED TO NOMINATE THEIR INDUSTRY SECTOR BY
WEEK 2
• THE PRESENTATION WILL BE NO MORE THAN 10 MINUTES WITH A FURTHER
DISCUSSION BY THE CLASS FOR 5-10 MINUTES.
• NOTE: IF THE CLASS IS LARGER THAN 15 THIS ASSESSMENT WILL BE DONE
IN PAIRS.
OUTLINE
• THIS IS AN INDIVIDUAL ASSESSMENT WHICH INVOLVES A
DETAILED CRITIQUE OF A CASE STUDY THAT FOCUSES ON
EMERGING MARKETS. THE CASE STUDY WILL BE POSTED ON
VUWS FOR STUDENTS TO ACCESS.
DETAILS
ASSESSMENT
2: CASE
STUDY
REPORT (35%)
DUE WEEK 6
• THE CASE STUDY WILL FOCUS ON VARIOUS ISSUES COVERED IN
THE SEMINARS. STUDENTS ARE REQUIRED TO IDENTIFY CRITICAL
STRATEGIC SUCCESS FACTORS FOR THIS CASE AND ASSESS HOW
THESE CONFORM TO THEORY OR CONCEPTS AS COVERED IN THE
SEMINARS.
• CONCISENESS AND FOCUS IN APPROACHING THIS CASE ANALYSIS
IS CRUCIAL. THERE WILL BE A SET OF ACCOMPANYING QUESTIONS
FOR THE CASE STUDY.
OUTLINE
• INCREASINGLY, CREATION OF NEW MARKET VALUE IS BECOMING
CENTRAL TO SUCCESSFUL INNOVATION. YOU ARE REQUIRED TO
SELECT AN INDUSTRY IN A MARKET OF YOUR CHOICE IN ORDER TO
APPLY KIM AND MAUBORGNE’S (1999) NEW VALUE CURVE FOR
CREATING NEW MARKET VALUE.
DETAILS
ASSESSMENT
3: SCENARIO
WORKSHOP
(20%)
DUE WEEK 8
THE SCENARIO WORKSHOP REQUIRES YOU:
• IDENTIFY AN INDUSTRY IN A MARKET WHERE NEW MARKET VALUE
CREATION HAS BEEN UNDERTAKEN
• ARTICULATE AND JUSTIFY THE ROLE OF NEW MARKET VALUE
CREATION IN THE CONTEXT OF YOUR SELECTED INDUSTRY
• EVALUATE THE STRATEGIES THAT HAVE BEEN USED TO CREATE
NEW MARKET SPACE IN THIS INDUSTRY
OUTLINE
•
THE GROUP PROJECT WILL INVOLVE STUDENTS WORKING IN GROUPS TO
DEVELOP A NEW INNOVATION THAT IS PRIMARILY TARGETED AT
CONSUMERS IN EMERGING MARKETS.
•
THESE MARKETS – RANGING FROM THE BRIC COUNTRIES OF BRAZIL,
RUSSIA, INDIA, AND CHINA, TO MYRIAD COUNTRIES IN AFRICA, LATIN
AMERICA, ASIA, AND THE MIDDLE EAST – ARE NOW THE MOST DYNAMIC
ECONOMIES IN THE WORLD AND OFFER OPPORTUNITIES FOR INNOVATION
AND ENTREPRENEURIAL ACTIVITIES.
DETAILS
ASSESSMENT
4: PROJECT
(30%)
DUE WEEK 10
•
STUDENTS WILL FORM GROUPS IN THE FIRST SESSION AND WILL NEED TO
PRESENT A BRIEF OF THEIR PROJECT BY WEEK 6. THE BRIEF WILL TAKE THE
FORM OF AN OVERVIEW OF THE INNOVATION AND TARGET COUNTRY.
•
THE PRESENTATION WILL BE HELD IN WEEK 10 AND THE FINAL REPORT
WILL NEED TO BE SUBMITTED AT THE SAME TIME. THE PRESENTATION WILL
BE NO MORE THAN 15 MINUTES WITH A FURTHER 10 MINUTES OF
DISCUSSION AND QUESTIONS FROM THE OTHER CLASS MEMBERS. THE
FINAL ASSESSMENT WILL BE A COMBINATION OF THE PRESENTATION (10%)
AND REPORT (20%).
Business leaders must be able to
communicate effectively - and work
smoothly in teams.
GROUP ROLES AND INDIVIDUAL STRENGTHS
TASK ROLES: Task roles involve getting the job done
no matter what
Initiators contribute new ideas or encourage new
directions;
GROUP
ROLES AND
INDIVIDUAL
STRENGTHS
Summarizers pull things together, recap, or add
perspective;
Clarifiers help others understand what is occurring;
Information seekers ask for input or direction
Source: Kazemak 1991 and 2008)
MAINTAINENCE ROLES
Involve ensuring that a job is done well and that the
group feels good about it:
GROUP
ROLES AND
INDIVIDUALS
STRENGTHS
Encouragers boost morale by commending others;
Harmonizers mediate others' differences; and
Gatekeepers ensure that everyone has a chance to
contribute.
Source:Kazemak.(1991 and 2008)
MAKING GROUP ACTIVITY FUN
IF YOU FEEL LOST OR CONFUSED, CALL A FIVE
MINUTE STRETCH BREAK
MOVE!
NO ONE CAN BE ENGAGED AND PRODUCTIVE
AFTER SITTING STILL FOR HOURS.
DISCUSSION FORUM
IS THERE
SUCH A
THING AS
NEW
MARKETS?
“Serendipity - A History Of
Breakthroughs”
Can you think of major historical
breakthroughs that created new
markets?
IS THERE
SUCH A
THING AS
NEW
MARKETS?
• HTTPS://WWW.YOUTUBE.COM/WATCH?V
=BUG8THPHQXI
• TYPES OF MARKETS
CASE STUDY
INNOENTREP MONITOR
POST IT NOTE
HTTPS://WWW.YOUTUBE.COM/WATCH?V=KVROPFUJ60I
INNOENTREP
MONITOR
THE POST –
IT- NOTE
FROM 3M
• A CHEMIST DEVELOPED AN ADHESIVE WITH PROPERTIES
THAT WERE NOT INTERESTING IN TERMS OF THE ORIGINAL
PROJECT AS TWO
OBJECTS COULD NOT BE GLUED
PERMANENTLY TO EACH OTHER WITH IT.
• HOWEVER, THEY COULD BE REMOVED FROM EACH OTHER
EASILY. THIS THEN LED
TO A COMPLETELY NEW
APPLICATION AND DEVELOPMENT OF A COMPLETELY NEW
AND HIGHLY PROFITABLE BUSINESS FOR 3M.
INNOENTREP MONITOR
THE WALKMAN
• ORIGINALLY DEVELOPED BECAUSE OF A NEW NEED THAT
COULD BE FULFILLED BY THE COMBINATION OF A
CASSETTE PLAYER WITHOUT A RECORDING FUNCTION
AND SMALL HEADPHONES.
INNOENTREP
MONITOR
THE
WALKMAN
• THE NEW GADGET MADE IT EASIER TO LISTEN TO YOUR
FAVOURITE MUSIC, DURING ALL KINDS OF ACTIVITIES
WITHOUT DISTURBING OTHER PEOPLE TOO MUCH.
• THE CONCEPT WAS ORIGINALLY BASED ON AN
UNEXPECTED
OBSERVATION
–
THAT
ENGINEERS
DEVELOPED THIS APPARATUS AND LABELLED IT AS
UNSUITABLE FOR THE WELL KNOWN AND DEFINED
MARKET OF THAT TIME.
• WHAT OTHER PRODUCTS HAVE SINCE EVOLVED SINCE
THE WALKMAN INNOVATION?
WEEKLY CONCEPT CHECKLIST
SPOTTING WHERE AND HOW NEW MARKETS CAN BE
CREATED AND GROWN
THE TELEPHONE
ALEX BELL’S INVENTION OF THE TELEPHONE DID NOT LEAD TO AN OVERNIGHT REVOLUTION
OF THE TELECOMMUNICATIONS SECTOR. IT DEPENDED ON THE CREATION OF A MARKET FOR
PERSON TO PERSON COMMUNICATIONS
SPOTTING WHERE AND HOW NEW MARKETS CAN BE CREATED AND GROWN
THE AUTOMOBILE
• HENRY FORD DID NOT NECESSARILY INVENT
THE CONCEPT OF A CAR BUT BY
DEVELOPING AND SELLING A CHEAP CAR
THAT “EVERYMAN” COULD AFFORD HE GREW
THE MASS MARKET FOR PERSONAL
TRANSPORTATION.
THE CHANGING AIRLINE MARKET — NEW WAYS OF SERVING ESTABLISHED
AND MATURE MARKETS
IDENTIFY HOW THE AIRLINE MARKET HAS EVOLVED OVER TIME
AIRLINES
AIRLINES
• ONLINE AUCTION
SPOTTING
WHERE AND
HOW NEW
MARKETS CAN
BE CREATED
AND GROWN
EBAY JUSTIFIES ITS PRICE TAG AND
VALUATION
NOT
BASED
ON
THE
TECHNOLOGY BEHIND ITS PRODUCT
INNOVATION BUT ON ITS CREATION AND
LEADERSHIP OF CREATING AND GROWING
A NEW MARKET.
THE
INTERNET AS
A NEW
MARKET
GAME
CHANGER
THE INTERNET HAS PROFOUND IMPACT ON
CHANGING MARKETS IN SERVICE SECTOR
WHICH HAVE BEEN REAL GAME SECTOR
CHANGERS:
• AMAZON IN RETAILING
• GOOGLE IN ADVERTISING
• SKYPE IN VIRTUAL TELEPHONY
• EBAY IN MARKET TRADING AND AUCTIONS
SO WHAT IS
THE ESSENCE
OF GROWTH
FOR FIRMS?
1. EXISTING MARKET GROWTH - EXPANDS BY
INCREASING MARKET SHARE THROUGH PRICE
& OTHER SOURCES OF SCA (SUSTAINABLE
COMPETITIVE ADVANTAGE)
2. CUSTOMER – DRIVEN MARKET GROWTH GROWS BY HELPING TO CREATE NEW
CUSTOMERS FOR EXISTING OFFERINGS
3. INNOVATION – DRIVEN PRODUCTS AND
SERVICE GROWTH - CREATES NEW MARKETS
BY OFFERING NEW PRODUCTS, SERVICES AND
PROCESSES
LET’S MOVE
ON TO
INNOVATION!!!
• THROUGH OVERUSE, MISUSE, HYPE AND
ENTHUSIASM, THE WORD INNOVATION HAS
ESSENTIALLY LOST ITS MEANING. WE OFTEN
CONFUSE THE OUTCOME AND THE PROCESS AND
WE DESCRIBE EVERYTHING IN BREATHLESS
TERMS, WHETHER IT IS A MODEST PRODUCT
EXTENSION
OR
A
MARKET
CREATING
BREAKTHROUGH.
LET’S MOVE ON TO
INNOVATION!!!
THE WORD INNOVATION IS ABOUT
CHANGE AND IS FROM LATIN AND
MEANS “CHANGING, MAKING NEW”
EXAMPLES OF INNOVATION SIGN POSTS:
1. THE GOLDEN ROUTE TO BUILDING A GROWING
AND PROSPEROUS COMPANY”
INNOVATION
SIGNPOSTS
2. “INNOVATION IS NOT AN ISOLATED EVENT BUT
RATHER A TRAJECTORY, CONSISTING OF MANY
SMALL EVENTS”
3. ‘TODAY INNOVATION IS ABOUT NEW SERVICES
,VALUE PROPOSITIONS AND BUSINESS MODELS’
4. “SOMETHING DIFFERENT THAT HAS IMPACT –IS
BOTH
MORE
IMPORTANT
AND
MORE
ACCESSIBLE THAN EVER BEFORE”
EXAMPLES OF INNOVATION SIGN POSTS:
1. “INNOVATION IS OUR LIFEBLOOD”……SIEMENS
INNOVATION
SIGNPOSTS
2. “INNOVATION DISTINGUISHES BETWEEN
LEADER AND A FOLLOWER..” STEVE JOBS
A
3. “WE ARE ALWAYS SAYING TO YOURSELF …WE
HAVE TO INNOVATE . WE HAVE GOT TO COME
UP WITH THAT BREAKTHROUGH,” BILL GATES
Can you think of an example of innovation that
you use on a daily basis?
INNOVATION
IS THE
IMPERATIVE
OF MODERN
TIMES
Try to think of at least 3 different recent examples
of innovation that you utilise in your day-to-day
life and try to determine whether they are
innovations, inventions or both.
Also, ask yourself whether or not the innovation is
truly something new or if it was derived in some
way from a prior product, technology or invention.
INNOVATION IS NOT INVENTION
CONCEPTUALISING
INNOVATION
• INNOVATION MAY INVOLVE INVENTION, BUT IT
REQUIRES MANY OTHER THINGS AS WELL — INCLUDING
A DEEP UNDERSTANDING OF WHETHER CUSTOMERS NEED
OR DESIRE THAT INVENTION, HOW YOU CAN WORK WITH
OTHER PARTNERS TO DELIVER IT AND HOW IT WILL PAY
FOR ITSELF OVER TIME.
INNOVATIONS HAVE TO KEEP THEIR EARN
• INNOVATIONS HAVE TO RETAIN VALUE TO YOU OR
YOUR ENTERPRISE.
41
Innovation is more than just new
products
CONCEPTUALISING
INNOVATION
• Innovations should be about more than
products. They can encompass new ways of
doing business and making money, new
systems of products and services and even
new interactions and forms of engagement
between your organization and your customers.
Innovations have to keep their earn
• Every living thing comes from a living thing
• Few innovations are entirely new
42
COMMERCIALISATION OF ALL NEW COMBINATIONS
BASED UPON THE APPLICATION OF :
WHAT IS
INNOVATION?
• T-A NEW TECHNOLOGY
• A-A NEW APPLICATION IN THE FORM OF A NEW
PRODUCT, SERVICE OR PROCESS
• M-A NEW MARKET OR MARKET SEGMENT
• O-A NEW ORGANIZATIONAL FORM OR NEW
MANAGEMENT APPROACH (SCHUMPETER)
It is a mindset
WHAT IS
INNOVATION?
A key to gaining
competitive advantage
sustainable
Process of noticing small things that
later on may lead to unexpected
breakthroughs
REFLECTIONS
WHY DO YOU THINK
INNOVATION IS IMPORTANT
IN THE MODERN DAY
BUSINESS ENVIRONMENT?
46
WHAT IS INNOVATION?
Step back to the year 2000!
There was no FaceBook, Skype, MSN, Instagram or Twitter!
A few started using blogs or some instant messaging application using their mobile.
There was no YouTube—Google only had an annual revenue of $19 million! Now they make
that in a few hours!
Apple was still Apple Computer worth $3billion compared to $3T now!
Brazil, China and India were on the fringes of the world economy
Books were only available in hardcopy.
But all this has changed due to our evolving needs as consumers which have been
addressed by some of the above innovations
Companies need new discoveries and strategies to
drive growth and survival.
The pace of change requires greater flexibility and
innovation effectiveness.
WHY IS
INNOVATION
IMPORTANT ?
Efficiency is no longer enough. Organic growth is
critical to achieve breakthrough results.
Innovation successes are now expected (and
demanded) by customers and analysts.
1. INCREMENTAL INNOVATION
• EXPLOITS EXISTING FORMS OR TECHNOLOGY AND IS
DOMINANT PARADIGM
• IMPROVES SOMETHING THAT ALREADY EXISTS MAKING IT
NEW OR IMPROVED
TYPES OF
INNOVATION
• RECONFIGURES AN EXISTING FORM OR TECHNOLOGY TO
SERVE SOME OTHER PURPOSE
• TAKES LESS TIME AND IS LESS RISKY BUT HAS LIMITED
THRUST
• IIA:GPS TECHNOLOGY IN CARS
• WAL-MART'S EXEMPLARY SUPPLY SYSTEM OR DELL'S
APPLICATION OF JUST-IN-TIME PRODUCTION TO PERSONAL
COMPUTERS.
CASE STUDY IN ACTION
INCREMENTAL OF INNOVATION
DYSON – LEADING IN INCREMENTAL INNOVATION
• HTTPS://WWW.YOUTUBE.COM/WATCH?V=XN1LAPWOL00
• DYSON’S LATEST HAIR CARE TECHNOLOGY, THE DYSON
CORRALE™ STRAIGHTENER IS LAUNCHED LIVE IN PARIS.
WATCH AS CHIEF ENGINEER, JAMES DYSON AND WORLDRENOWNED HAIR STYLIST, JEN ATKIN DEBUT DYSON’S
BRAND NEW CORDLESS HAIR STYLER.
• FROM THE DEVELOPMENT OF THE TECHNOLOGY TO ITS
APPLICATION IN HAIR-STYLING, JEN AND JAMES UNCOVER
THE UNIQUE FEATURES OF THE DYSON CORRALE™ HAIR
STRAIGHTENER.
2. RADICAL INNOVATION
• NEW TO THE WORLD
• HAS POTENTIAL TO CREATE BASIS OF
COMPETITION
• CREATE ENTIRELY NEW MARKETS
TYPES OF
INNOVATION
• MORE RISKY AND OFTEN TIME CONSUMING AND
MORE EXPENSIVE
• IIA: DIGITAL IMAGING
CAN YOU THINK OF ANY EXAMPLES OF
RADICAL INNOVATION?
CASE STUDY
INNOMONITOR
INNOENTREP MONITOR
LESSONS FROM HISTORY ON INNOVATION AS A GAME
CHANGERS
Honda
Honda sent engineers to study the USA
market, and they used light motorcycles to
move around, in so doing they realised
potential for a new market. They entered the
US using motorcycles since there was no
competition and there was demand. Having
established infrastructure and a brand
presence they then introduced cars leveraging
on their innovative entrance into an
unprotected market segment.
Process Innovation
OTHER
FORMS OF
INNOVATION
• Lowers unit production costs
• Common in steel, glass, brewing,
chemicals and petrochemicals
industries
• Product-process innovation nexus:
mutually dependent
CASE STUDY
INNOMONITOR
OTHER FORMS OF INNOVATION
ZARA
• HTTPS://WWW.YOUTUBE.COM/WATCH?V=IR1B-EZ2X5G
• ZARA USES AN INTEGRATED AND EFFICIENT PRODUCTION
SYSTEM OF DESIGN, PRODUCTION, LOGISTICS, AND
DISTRIBUTION WHICH DRIVES SHORT TURNAROUND TIMES
AND ALLOWS STORE MANAGERS TO KEEP STOCK AT A
MINIMUM.
• ITS DESIGNERS CAN QUICKLY REVIEW PRODUCTION ISSUES
AND RESPOND TO CHANGING FASHION TRENDS.
• MEANWHILE, SUPPLIERS AND DISTRIBUTORS ARE CAREFULLY
LOCATED AROUND THE WORLD TO PROMOTE EFFICIENCY,
WHILE ZARA’S INTERNAL LOGISTICS SYSTEM IS SET UP SO
THAT THE TIME BETWEEN WHEN ORDERS ARE RECEIVED AT
DISTRIBUTION CENTRES AND WHEN MERCHANDISE IS
ACTUALLY DELIVERED TO STORES IS AS SHORT AS POSSIBLE.
OTHER FORMS OF INNOVATION
IKEA
• HTTPS://WWW.YOUTUBE.COM/WATCH?V=NOYBX0_GT
NW
• IKEA DEVELOPED FLAT-PACK FURNITURE WITH
NO VARIATION BY REGION OR COUNTRY.
• ITS PRODUCTS INCLUDED THE SAME HARDWARE
AND INSTRUCTIONS REGARDLESS OF WHERE
THEY WERE PURCHASED, THUS HELPING TO
STREAMLINE
THE
COMPANY’S
INTERNAL
PRODUCTION PROCESSES.
OTHER FORMS OF INNOVATION
TOYOTA AND JUST IN TIME
• HTTPS://WWW.YOUTUBE.COM/WATCH?V=CAUX
HJBB5CM
• THE
CAR
MAKER’S
FAMOUS
“LEAN”
PRODUCTION SYSTEM REDUCED WASTE AND
EXCESS, DRIVING ASTONISHING EFFICIENCY
AND CONTINUAL PRODUCT AND PROCESS
IMPROVEMENTS THROUGHOUT THE COMPANY
• FIRST ON THE MARKET IN THE MID-1950S WITH BABY
DIAPERS DUE TO POST WAR BABY BOOM ERA.
• EARLY PRODUCT ONLY GAINED 1% MARKET SHARE DUE TO
PRICE AND PERFORMANCE ISSUES.
INNOENTREP
MONITOR
PROCTER
AND
GAMBLE’S
DILEMMA
• P&G ADDRESSED PERFORMANCE PROBLEM BY USING NEW
MATERIALS AND NEW DESIGN BUT STILL FACED THE
CHALLENGE TO HAVE A COST-EFFECTIVE WAY OF
MANUFACTURING THE PRODUCT. CHALLENGE WAS THE
MULTI-PART MULTI-MATERIAL ASPECT OF THE PRODUCT
WHICH HAD TO BE MANUFACTURED IN LARGE VOLUMES AT
LOW PRICES.
• P&G FACED THE SAME PROBLEM WITH ITS PRINGLES CHIPS
WHERE PRODUCT CONCEPT WAS EASY BUT THE PROCESS
WAS DIFFICULT
SERVICE INNOVATION
• INNOVATION IS NOT THE SOLE DOMAIN OF
PHYSICAL PRODUCTS OR MARKETS
OTHER
FORMS OF
INNOVATION
• SERVICE INNOVATION HAS EMERGED AS A KEY
DIFFERENTIATOR
CASE STUDY
INNOENTREP IN ACTION
ZAPPOS
OTHER FORMS
OF
INNOVATION
• HTTPS://WWW.YOUTUBE.COM/WATCH?V=JL7LTHP4J6W&LIST=PLSBRPF
D7AX6IGTQXH_8WMRVGJLVXN4HJA&INDEX=4
• ZAPPOS’ CUSTOMER SERVICE REPS ARE EMPOWERED TO DO JUST
ABOUT ANYTHING THEY NEED TO DO TO ENSURE USERS HAVE A
GOOD EXPERIENCE.
• THIS INCLUDES SENDING SHOPPERS FLOWERS OR SPENDING HOURS
ON THE PHONE TO ENSURE THEY FIND EXACTLY THE RIGHT
PRODUCTS.
• WHEN ZAPPOS FINDS ITSELF OUT OF STOCK OF A NEEDED ITEM, ITS
REPS WILL FAMOUSLY ORDER THE PRODUCT FROM A COMPETITOR
AND SHIP IT OVERNIGHT TO ENSURE IT ARRIVES ON TIME.
• AMAZON PAID $1BILLION
SERVICE
INNOVATION
IN ACTION
Dell PC-innovative strategy of
skipping the middlemen &
selling custom –configured PCs
directly to buyers.
No-Frills
Budget
AirlinesSouthwest, Virgin, Rynair-low
fares, frequent service and fun,
Unit Information
WEEK
RECAP
New Markets
Innovation