STRATEGY INNOVATION: CREATIVITY INTO STRATEGIC VISION

Emilio Genovesi, STRATEGY INNOVATION

STRATEGY INNOVATION:CREATIVITY INTO STRATEGIC VISION

Emilio Genovesi


1. WHY TO INNOVATE:SITUATION IN BUSINESS CONTEXT



products are cheaper to replace than to repair

increased semantic consumption:the product gets old in its symbolic value

increased number of brands: growingdemand for novelties

1. WHY TO INNOVATE: SITUATION IN BUSINESS CONTEXT

A PRODUCT’S LIFE IS GETTING SHORTER AND SHORTER


decreased brand loyalty

readiness to try new brands and dropthe old ones

more information available to guide the choice


CONSUMERS ARE MORE SELECTIVE AND MONEY CONSCIOUS


more competition in the marketplace

increasing number of segments

very niche markets leading to less profits


THE MARKET IS HYPER-FRAGMENTED


a market can suddenly shrink or even disappear due to a technological leap (e.g.: Polaroid)


CREATIVE DESTRUCTION:AN ADDITIONAL RISK



CONSEQUENCES



CONSEQUENCES

Understand your own right innovation is the new competitive advantageInnovation in incremental products is not enough anymoreWhat about other dimensions of innovation such as new processes and business models that guarantee product success?


2. STRATEGY INNOVATION:WHAT IT IS



2. STRATEGY INNOVATION: WHAT IT IS

is the ability or set of skills able to generate new thingsCREATIVITY



is the process of taking an original idea and convertingit into a measurable value in a given context

INNOVATION



is a shift of a corporation’s business strategy in order to generate new valuefor both the customer and the corporation

This shift goes beyond incremental products or services,it includes new products, processes and new business models.

STRATEGY INNOVATION


INCREMENTAL PRODUCTS STRATEGY INNOVATION


STRATEGY INNOVATION SHIFT: ADVANTAGES AND DRAWBACKS

Emilio Genovesi, STRATEGY INNOVATIONA

DV

AN

TAG

ESD

RAW

BAC

KS


cheap, easy, fast, less risky, short time results

easy to be imitated, less margin profit

growth opportunity, first-mover advantage, high profit

high risk, expensive, difficult,long time results



STRATEGY INNOVATION SHIFT: ADVANTAGES AND DRAWBACKS


3. THE ROLE OF DESIGN:AN HISTORICAL PERSPECTIVE



THE 60’s

3. THE ROLE OF DESIGN: AN HISTORICAL PERSPECTIVE

The PRODUCT

DESIGN FOR…MANUFACTURING

The 60ies


THE 60’s


The PRODUCT

The 60ies



THE 80’s


The PRODUCT

The PRODUCT IDENTITY

The 60ies

The 80ies


DESIGN FOR…MANUFACTURING+COMMUNICATION


THE 80’s




The 80ies


THE 80’s



The 80ies



THE 90’s


The PRODUCT


The BRAND

IDENTITY

The 60ies

The 80ies

The 90ies



DESIGN FOR…MANUFACTURING+COMMUNICATION+STORYTELLING


THE 90’s


The BRAND

IDENTITY


The90ies


THE 90’s


The BRAND

IDENTITY

The90ies



TODAY


DESIGN FOR…MANUFACTURING+COMMUNICATION+STORYTELLING+STRATEGY

The PRODUCT


The BRAND

IDENTITY

The CORPORATE

VISION

The 60ies

The 80ies

The 90ies

Today





4. THE GLOBAL OFFER IN THE GLOBAL MARKET

ITALY USA CHINA TURKEY

PRODUCT

PRODUCT IDENTITY

BRAND IDENTITY

CORPORATE VISION




PRODUCT

PRODUCT IDENTITY

BRAND IDENTITY

CORPORATE VISION




PRODUCT

PRODUCT IDENTITY

BRAND IDENTITY

CORPORATE VISION




PRODUCT

PRODUCT IDENTITY

BRAND IDENTITY

CORPORATE VISION

Emilio Genovesi, STRATEGY INNOVATIONEmilio Genovesi, STRATEGY INNOVATION

5. INNOVATION IN THE ENTIREBUSINESS MODEL


INNOVATION IN PRODUCT

INNOVATIONIN PROCESS

INNOVATIONIN POSITION

PRODUCTIONSUPPLY CHAIN

PRODUCT DEVELOPMENTMANUFACTURING

ACTIVITIESRESOURCES AND

PARTNERS

POST-PRODUCTIONSUPPLY CHAIN

LOGISTICS

DISTRIBUTION

MARKETING

WHAT? HOW? WHO?

VALUE PROPOSITIONPRODUCTS / SERVICES

OFFER

EXPERIENCE

TECHNOLOGY

MARKET DEFINITIONTARGET

CUSTOMER

POSITIONING

CREATIVITY

5. INNOVATION IN THE ENTIRE BUSINESS MODEL


Design driven innovation can start from one of the process’ elements, but when it becomes strategy innovation it influences also all the others

Strategy innovation’s success lies in understanding where the creative break must be introduced



INNOVATION AROUND THE “WHAT”



Innovation in value proposition differs from incremental products it includes new experiences to customers

DEFINITION

5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHAT”


New value in products & servicesNew experience

IDEA



Innovation starts from the “what”and extends to “how” and “who”

good design to make everydaylife better” available for everyone

CASE STUDY IKEA

FOCUS




INNOVATION IN PROCESS

INNOVATION IN POSITION


Maintaining low cost by outsourcing, flat package, economies of scaleCustomer involvement in value chain


Flat packaging for cheap storage and transportation

WHAT? HOW? WHO?

VALUE PROPOSITIONParticular and contemporary design

Low-cost, self-assembly furniture

Scandinavian culture

MARKET DEFINITIONYoung and middle-low income family with good value for money

People ready to trade off service with low price

CREATIVITY

5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHAT”/ IKEA INNOVATION MAP


INNOVATION AROUND THE “HOW”



5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “HOW”

Innovation in supply chain process and marketing capabilities

Develop unique capabilities and operational structures to make the offer easily available

DEFINITION


Change in value chain

Relationship with suppliers

Drive cost down by making trade-off or create structural cost advantage

IDEA



design, production, and distribution processes designed to quicklyrespond to shifts in consumer demands

CASE STUDY ZARA

FOCUS

Innovation starts from the “how”and extends to “what” and “who”







In-house productionValue chain controlStrategic alliancesSpeed in product development


Fast deliveryCareful shop location choice

WHAT? HOW? WHO?

VALUE PROPOSITIONTrend followerFashionable but affordable apparel

MARKET DEFINITIONFrom teenagers to middle-aged woman

CREATIVITY

5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “HOW” / ZARA INNOVATION MAP


INNOVATION AROUND THE “WHO”



5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHO”

Innovation in targeting non -potentional consumers or non-consumers in market segment or a new market

DEFINITION


Redefine costumer segments and target those with underserved needs

Create a new costumer segment in existing or new market

Create new marketing strategies

IDEA



realize that more than 50% of revenues come from service

the transformation from supplying hardware to supplying consulting, outsourcing and IT service

CASE STUDY IBM

FOCUS

Innovation starts from the “who”and extends to “what” and “how”



5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHO” / IBM INNOVATION MAP





In-house productionValue chain controlStrategic alliancesSpeed in product development


Fast deliveryCareful shop location choice

WHAT? HOW? WHO?

VALUE PROPOSITIONTrend followerFashionable but affordable apparel

MARKET DEFINITIONFrom teenagers to middle-aged woman

CREATIVITY


6. THE RULES OF STRATEGY INNOVATION



RELIABILITY

Consistent and predictable outcomes

VALIDITY

Outcomes that meets objectives

Information based on past data Substantiation based on future events

Avoidance of bias Acknowledgement of the reality of bias

Use of limited number of objectives and variables A broad number of diverse variables

Minimization of judgements Integration of judgements



EXISTING MARKET NEW MARKETReliability Validity

COMPANY

CURRENT PRODUCT

Business modelProducts & ServicesProcessInnovation

Visible strategy innovation

INCREMENTAL PRODUCT

Visionary strategy innovation

Business modelProducts & ServicesProcessBreakthrough nnovation

NEW GENERATION

PRODUCT



Thank you.

Documents

STRATEGY INNOVATION: CREATIVITY INTO STRATEGIC VISION