Lecture 8 industry studies student
- 1. Industry Studies: Consumer Goods Industry Topic: Innovation and Change in the Consumer Goods Industry Topic Number:8
- 2. Overview Innovation and change play a fundamental role in an organisations ability to keep pace with a market, drive it forward and get ahead of the competition. In addition, it is important for firms operating in the CGI to innovate around process to reduce costs and become more socially conscious and effective. In this lecture, we will learn all about how innovation and change is done in organisations operating in the CGI. We will initially look to understand what innovation is and the different kinds of innovation that firms can adopt. We will also look at emerging forms of innovation from emerging markets. Thereafter, we will look at some of the challenges to making innovation and change happen in organisations and how we can overcome these. Finally, we will look at a number of different approaches to change management organisations can use. 2
- 3. Learning Outcomes 3 • Determine and describe what innovation is in an organisation • Articulate the different models of innovation used in the East and West • Be able to discuss the challenges faced in implementing innovation and change • Critically evaluate a number of change models to determine the optimal way to create change in organisations
- 4. Innovation Most of us understand that innovation is enormously important. It’s the only insurance against irrelevance. It’s the only guarantee of long-term customer loyalty. It’s the only strategy for out-performing a dismal economy. Gary Hamel Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow. William Pollard
- 6. What is innovation? Innovation can be defined as the application of new ideas to the products, processes, or other aspects of the activities of a firm that lead to increased “value.” This “value” is defined in a broad way to include higher value added for the firm and also benefits to consumers or other firms.
- 7. Characteristics of innovation A key issue here is to distinguish innovation, the bringing to market of a truly novel item, from imitation, the adoption of a new technique or design that is already in the market. New to a firm New to a domestic market New to a world market
- 8. Two types of innovation Product Innovation Process Innovation The introduction of a new product, or a significant qualitative change in an existing product. The introduction of a new process for making or delivering goods and services.
- 9. Radical vs Incremental Innovation Incremental Radical • Extension of existing product • Developed in response to a specific market need • Customer pull • New tech creates new market • Market creating • Technology push Substantial
- 11. Where does this sit on the spectrum? https://www.youtube.com/watch?v=dG0vLFFtZDs
- 12. What is disruptive/radical innovation? https://www.youtube.com/watch?v=qDrMAzCHFUU#t=188
- 13. What is disruptive/radical innovation?
- 14. Lets consider some examples
- 15. But why is it important to innovate
- 16. But why is it important to innovate? “Our resilient brands will strengthen their market positions and performance as they comprehensively satisfy the preferences of our customers”. “We are not changing direction we will continue to move full-steam ahead with our core business, which is stores“ Chairman HMV, 2007 CEO Blockbuster, 2001
- 17. How do Western firms innovate?
- 18. For example, Unilever’s R&D center network
- 19. R&D at the heart of a business
- 20. However, emerging markets are developing their own way of innovating https://www.youtube.com/watch?v=hvMQKx-uBi0 Watch from 1:50
- 21. At the heart of Jugaad
- 22. So picture this scenario
- 23. What is it? Jugaad Innovation Jugaad is a colloquial Hindi word that roughly translates as ‘‘an inno- vative fix; an improvised solution born from ingenuity and cleverness.’’ Jugaad is, quite simply, a unique way of thinking and acting in response to challenges; it is the gutsy art of spotting opportunities in the most adverse circumstances and resourcefully improvising solutions using simple means. Jugaad is about doing more with less. The word jugaad is also applied to any use of an ingenious way to ‘‘game the system.’’ A missed call here and there…
- 24. What is it? Jugaad Innovation https://www.youtube.com/watch?v=mrFyPaie3pQ
- 25. The 6 key principles of Jugaad Seek opportunity in Adversity Do More with Less Think and Act Flexibly Keep it simple Include the margins Follow your heart
- 26. Thinking Outside the (Ice) Box WHAT IF your fridge can operate without electricity? Source: http://www.mitticool.in/ Source: http://gizmodo.com
- 28. The Innovator’s Dilemma https://www.youtube.com/watch?v=qDrMAzCHFUU
- 29. The case of Kodak A vacation with Kodak Focused on women Made it social Introduced the brownie
- 30. But along came digital; why couldn't they The incumbent s curse Core rigidities Leadership and culture Strategic flux Diversify into what exactly? Cannibalisation innovate?
- 32. How can you minimise failure? Market research… …Think again…
- 33. Product and customer lifecycle
- 34. Change Management Approaches S-Curve Paradox Source: Handy (1994)
- 35. Change Management Approaches Kotter’s Eight Steps Source: http://www.kotterinternational.com/our-principles/changesteps)
- 36. Change Management Approaches Congruence Model Source: Nadler and Tushman (1988)
- 37. End of presentation © Pearson College 2013
Editor's Notes
- #25: Watch the first minute