Don't Mobilize Your Business – Reinvent It
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This document discusses the opportunity that mobility provides for businesses to reinvent themselves beyond just mobilizing existing processes and products. It provides examples of companies that have innovated their offerings and business models through mobile, such as a smart pill bottle that improves medication adherence. The document advocates that companies should not just mobilize their existing business but reinvent it, and provides drivers for innovating products, business models and processes. It concludes by stating that reinvention starts with understanding customers and employees.
Don't Mobilize Your Business – Reinvent It
- 1. DON’T MOBILIZE YOUR BUSINESS – REINVENT IT!
- 2. MOBILITY IS AN OPPORTUNITY TO REINVENT YOUR BUSINESS THE MANAGER OF YOUR FIELD WORKERS TEAM HAVE ASKED FOR A MOBILE SOLUTION TO ENABLE THEM TO ACCESS CUSTOMER INFORMATION AND LOG DATA DURING CUSTOMER VISITS. YOU INTERVIEW THE KEY STAKEHOLDERS ABOUT THEIR NEEDS, MAP OUT THE PROCESS AND DESCRIBE THE MOBILE CUSTOMER JOURNEY THROUGH A FLOW CHART AND WIREFRAMES. THE SOLUTION IS DEVELOPED AND DEPLOYED AND JUST 6 MONTHS LATER PRODUCTIVITY INCREASES SUBSTANTIALLY FOR THE TEAM AS THEY REDUCE THE AMOUNT OF ADMINISTRATION WORK ON A PC BY 4 HOURS PER WEEK AND DATA ACCURACY IS INCREASED. MISSION ACCOMPLISHED? WRONG! THROUGH MOBILE, ORGANIZATIONS CAN INNOVATE THEIR OFFERINGS AND THE WAY THEY WORK IN TWO WAYS: 1. HARNESSING MOBILE TO ENERGIZE THEIR EXISTING PRODUCT OFFERINGS AND WORKERS. MOBILE CAN SERVE TO KEEP A COMPANY’S PRODUCT OFFERINGS MORE COMPELLING AND RELEVANT TO ITS TARGET MARKETS AS WELL AS MAKING EMPLOYEES MORE PRODUCTIVE, SATISFIED AND ENABLING BETTER CUSTOMER SERVICE. 2. TAPPING MOBILE TO DEVELOP ENTIRELY NEW OFFERINGS. MOBILE CAN OPEN ENTIRELY NEW WORLDS OF REVENUE. DIGITAL IN GENERAL AND MOBILITY ESPECIALLY IS AN OPPORTUNITY TO REINVENT YOUR BUSINESS INCLUDING PRODUCT, PROCESS AND BUSINESS MODEL INNOVATION. SO DON’T JUST MOBILIZE YOUR EXISTING BUSINESS AND ORGANIZATION - REINVENT IT! TO HIGHLIGHT WHAT WE MEAN, HERE ARE SOME GREAT EXAMPLES OF PRODUCT, PROCESS AND BUSINESS MODEL INNOVATION.
- 3. “THERE’S A WAY TO DO IT BETTER – FIND IT!” - THOMAS EDISON
- 4. GLOWCAP: SMART MEDICATION REMINDERS Half of people on medication have forgotten to take their prescription medicines on time (or at all), and more than $100 billion is spent annually because of excess hospitalizations stemming from poor medical prescription adherence. It’s all too clear that remembering something as simple as taking medications on time, every time, is anything but easy. Instead of just developing an application that reminds people to take their medicine, Vitality reinvented the pill bottle with Glowcap to help patients with reminders to take the medicine, keep track of how many pills they’ve taken and get a refill when the pill bottle is empty, plus much more. The product increases consumption of the pills to what the doctor ordered and reduces issues associated with patients not taking their medicine.
- 5. PROGRESSIVE: SMART CAR INSURANCE After analysis of billions of miles in driving data, Progressive found that key driving behaviors—like actual miles driven, braking, and time of day of driving—carry more than twice the predictive power of traditional insurance rating variables, like a driver’s age, gender and the year, make and model of the insured vehicle. Progressive therefore gave auto insurance customers the option of installing a tracking device connected to the car and get 10-15% discount if they drive in accordance with what is considered “correct” behavior. The device provides more data for the insurance company to reduce risk and increase profit but more importantly increases safety and reduces accidents on the roads. The same concept has since been launched by lots of other car insurance companies.
- 6. VIGGA: BABY CLOTHES RENTAL Consumers are being urged to extend the life of their clothing to avoid millions of tonnes of garments ending up in landfills every year. Especially for children’s clothes, that are only worn for a short period of time. Vigga provides a children’s clothes rental membership service. Sign up and a couple of weeks ahead of the due date of the child the Vigga changing bag is ready for collection, complete with the newborn’s first beautiful wardrobe. The clothing is ethically made in organic fabrics, in a neutral unisex design. As soon as the child outgrows the newborn size, members are supplied with the next size up and the newborn clothing will be returned to Vigga, where it will be environmentally-friendly dry cleaned and made ready for another new baby.
- 7. INDUSTRIAL CLEANING: A NEW BUSINESS MODEL One of DMI’s clients is a global leader in cleaning industry technology and related machinery. The biggest complaint from customers is when the machinery breaks down due to lack of maintenance. They aimed to solve this by analyzing cleaning machine telemetry data, ERP and other data to provide better information to its field services team, sales people and customers. We helped them design a solution which monitors performance, usage, issues and predicts when maintenance is required. The customers as well as the company’s Business Service Contractors, can now confirm whether the cleaning has taken place and the location of the machines themselves. Fleet service metrics can also be reviewed to optimize overall operations. The company can also monetize its data by marketing this solution to its customers as a new service and introduce new business models such as pay-as-you- clean as an alternative to renting the actual machinery.
- 8. MORE EXAMPLES Nicolas Bry provides an excellent list of Business Model innovation in his blog Rapid Innovation in Digital Time. BCG lists four approaches to business model innovation in here. And then of course there is the Business Model Canvas that we’ve been using at DMI to continuously document, evaluate and review our own business model and opportunities for change, enhancements and optimization.
- 9. WHAT ARE THE DRIVERS OF PRODUCT, BUSINESS MODEL AND PROCESS INNOVATION?
- 10. POSSIBLE DRIVERS OF PRODUCT INNOVATION > Changes in customer requirements/behavior > Adding more functions/features to meet demand or needs > Increasing salability (appearance) or product’s life cycle > Improving quality and reliability > Reducing processing and manufacturing costs > Enhancing ease in manufacturing (removing unnecessary or complicated attributes) > Standardization and simplification efforts in an organization
- 11. POSSIBLE DRIVERS OF BUSINESS MODEL INNOVATION > Pricing and Offering, (e.g. moving from one-off purchase to subscriptions such as Spotify and Amazon Unlimited) > Distribution and Channels > Sharing economy (e.g. Zipcar and Airbnb) > Design and Manufacturing > Two-sides and asymmetric (e.g. Google’s free to consumer and advertiser pays model) > APIs (e.g. flighstats data) > Platform (e.g. force.com)
- 12. POSSIBLE DRIVERS OF PROCESS INNOVATION > Improving quality of output > Improving productivity and efficiency > Controlling and reducing process wastage or work in process inventory > Reducing processing time or cost > Ensuring timely delivery > Reducing health hazards and improving safety of workforce > Forced by product design or technology changes
- 13. “IMPLEMENTING BEST PRACTICE IS COPYING YESTERDAY, INNOVATION IS INVENTING TOMORROW.” - PAUL SLOANE
- 14. WHERE DO YOU START? According to an article in Harvard Business Review, very few organizations routinely think, “How can we tweak our business model? How can we find a better, more efficient, greater value- creating business model?” Managers and organizations would benefit by thinking deeper about the design and not thinking about it as a one-time or once in two years thing of, “Is there a better way?”, but as an ongoing, dynamic capability that the firm has. Mobility projects are a great opportunity to not only mobilize what you have, but to rethink what you do and how you work. So you want to venture into the unknown and reinvent rather than just mobilizing. Where do you start? There’s a myriad of different innovation processes and methodologies but whichever one you choose, start with your customers and employees.
- 15. THE FIRST END-TO-END MOBILITY COMPANY IN THE WORLD. www.dminc.com At DMI we help businesses and government organizations reinvent themselves through mobility. Are you looking for a partner that can help you innovate? Contact us for more information!