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Unleashing Innovation Across
      The Value Chain
      A Mantra For Growth


               By: Shabbir Akhtar,
     Globsyn Business School – Global Campus
George Bernard Shaw: "Some
people see things as they are and
say why? I dream things that never
were and say why not."
Innovation
Revolutionary                  Evolutionary
• Non-linear innovators tend   • Linear innovators tend to be
  to be revolutionary            evolutionary, making
• the automobile, the            incremental improvements
  phonograph, the Internet     • better engines for cars,
                                 better sound systems for
                                 the phonograph, the World
                                 Wide Web for the Internet
The Tech Industry
Revolutionary               Evolutionary
• Telephone, mobile phone   • iPhone, Android
• Photography               • Digital Photography
• Computers                 • Laptops
• Internet                  • World Wide Web
• Web logs                  • Facebook
• MAILBOX                   • Hotmail
• Web Crawler               • Google
• Napster                   • iTunes
Value Chain
Innovation in Inbound Logistics
                • Build-to-order model;
                  reduces working capital
                • Dell wanted to do away
                  with inventory as it is a
                  liability in the technology
                  industry
                • Advancement of the
                  internet allowed Dell to
                  process orders in real-
                  time
                • Raw materials are
                  ordered based on
                  customer orders
Innovation in Operation
            • Apple spend exorbitantly
              wherever necessary, and
              reap the benefits in the long
              run
            • Engineers spend months
              living close to suppliers and
              manufacturers, helping to
              tweak the industrial
              processes
            • Apple makes prepayments
              to key suppliers ensuring
              availability and limits the
              options for competitors
Innovation in Outbound Logistics
                • Foxconn, a Taiwan-based
                  company with factories in
                  China, manufactures
                  Apple’s products
                • Foxconn ships finished
                  products from its Chinese
                  factories to warehouses
                  across the globe
                • Products are sold directly by
                  Apple allowing better
                  production forcasts
                • Online Ordering model
                  allows monitoring of
                  demand
Innovation in Marketing and Sales
              Product

                  • 2011; year of the tablets,
                    pioneered by Apple
                  • 2012; year of the hybrids,
                    pioneered by ASUS
                  • PadFone and Transformer
                    Prime, innovative products
                    that take tablet experience
                    to new level
                  • Innovation in laptop market
                    too; low cost products to
                    compete with Ultrabooks
Innovation in Marketing and Sales
              Price

                 • Micromax launched in 2008
                   with feature-packed low-
                   cost Indo-china phones
                 • Before 2008, market ruled
                   by multinational giants and
                   grey market of Chinese
                   phones
                 • Micromax revolutionized
                   the market with its low-cost
                   Android phones with
                   sophisticated designs
Innovation in Marketing and Sales
              Place

                 • Apple Independent Stores
                   designed around customer
                   needs
                 • Destination Stores setup
                   not to sell; instead to
                   respond to customer
                   queries
                 • Stores are a part of the
                   company’s branding
                   strategy; reflect company’s
                   minimalistic design
                   philosophy
Innovation in Marketing and Sales
             Promotion

                  • 845 Million users worldwide
                    (by CrunchBase.com)

                  • Facebook does not promote
                    itself to attract users
                  • Facebook Plugins on more
                    100000 sites and growing (by
                    Facebook)

                  • Providing users with all their
                    online needs through Apps
                  • Users spend 50% more time
                    on sites with Facebook
                    Plugins (by Gigya)
Innovation in Marketing and Sales
              Sales

                 • Multi-level Marketing
                   introduced in 1945 by
                   California Vitamin Company
                 • E-commerce
                   commercialized by Amazon
                   and Ebay in 1995
                 • Integration of MLM to e-
                   commerce in 2001 by
                   YourTravelBiz.com
                 • YTB reported Gross Profit of
                   29.12 M in FY 2011-2012 (by
                      MacroAxis.com)
Innovation in Service
           • Social Media at the center
             of serving customers
           • Ground Control and
             Listening Command Center
             with 70 employees
           • Monitoring 25,000 events a
             day in 11 languages
           • Customer queries answered
             within 24 hours
           • Tell consumers about
             services, expertise or
             unique selling proposition
           • Create thought leadership
Innovation in Support Activities
•   Procurement: Apple
•   Technology Development: IBM    (by Bloomberg)


•   Human Resource Management: Google                    (by ET & GPTW)


•   Firm Infrastructure: Google
                           (by The Economic Times & Great Place To Work)
Innovation Across the Value Chain




an holistic approach is necessary to convert innovation into growth
Thank you

                     Questions?

Email: shabbir.pm10k@glogsynbschool.com | Twitter: @strategian

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Unleashing Innovation Across The Value Chain

  • 1. Unleashing Innovation Across The Value Chain A Mantra For Growth By: Shabbir Akhtar, Globsyn Business School – Global Campus
  • 2. George Bernard Shaw: "Some people see things as they are and say why? I dream things that never were and say why not."
  • 3. Innovation Revolutionary Evolutionary • Non-linear innovators tend • Linear innovators tend to be to be revolutionary evolutionary, making • the automobile, the incremental improvements phonograph, the Internet • better engines for cars, better sound systems for the phonograph, the World Wide Web for the Internet
  • 4. The Tech Industry Revolutionary Evolutionary • Telephone, mobile phone • iPhone, Android • Photography • Digital Photography • Computers • Laptops • Internet • World Wide Web • Web logs • Facebook • MAILBOX • Hotmail • Web Crawler • Google • Napster • iTunes
  • 6. Innovation in Inbound Logistics • Build-to-order model; reduces working capital • Dell wanted to do away with inventory as it is a liability in the technology industry • Advancement of the internet allowed Dell to process orders in real- time • Raw materials are ordered based on customer orders
  • 7. Innovation in Operation • Apple spend exorbitantly wherever necessary, and reap the benefits in the long run • Engineers spend months living close to suppliers and manufacturers, helping to tweak the industrial processes • Apple makes prepayments to key suppliers ensuring availability and limits the options for competitors
  • 8. Innovation in Outbound Logistics • Foxconn, a Taiwan-based company with factories in China, manufactures Apple’s products • Foxconn ships finished products from its Chinese factories to warehouses across the globe • Products are sold directly by Apple allowing better production forcasts • Online Ordering model allows monitoring of demand
  • 9. Innovation in Marketing and Sales Product • 2011; year of the tablets, pioneered by Apple • 2012; year of the hybrids, pioneered by ASUS • PadFone and Transformer Prime, innovative products that take tablet experience to new level • Innovation in laptop market too; low cost products to compete with Ultrabooks
  • 10. Innovation in Marketing and Sales Price • Micromax launched in 2008 with feature-packed low- cost Indo-china phones • Before 2008, market ruled by multinational giants and grey market of Chinese phones • Micromax revolutionized the market with its low-cost Android phones with sophisticated designs
  • 11. Innovation in Marketing and Sales Place • Apple Independent Stores designed around customer needs • Destination Stores setup not to sell; instead to respond to customer queries • Stores are a part of the company’s branding strategy; reflect company’s minimalistic design philosophy
  • 12. Innovation in Marketing and Sales Promotion • 845 Million users worldwide (by CrunchBase.com) • Facebook does not promote itself to attract users • Facebook Plugins on more 100000 sites and growing (by Facebook) • Providing users with all their online needs through Apps • Users spend 50% more time on sites with Facebook Plugins (by Gigya)
  • 13. Innovation in Marketing and Sales Sales • Multi-level Marketing introduced in 1945 by California Vitamin Company • E-commerce commercialized by Amazon and Ebay in 1995 • Integration of MLM to e- commerce in 2001 by YourTravelBiz.com • YTB reported Gross Profit of 29.12 M in FY 2011-2012 (by MacroAxis.com)
  • 14. Innovation in Service • Social Media at the center of serving customers • Ground Control and Listening Command Center with 70 employees • Monitoring 25,000 events a day in 11 languages • Customer queries answered within 24 hours • Tell consumers about services, expertise or unique selling proposition • Create thought leadership
  • 15. Innovation in Support Activities • Procurement: Apple • Technology Development: IBM (by Bloomberg) • Human Resource Management: Google (by ET & GPTW) • Firm Infrastructure: Google (by The Economic Times & Great Place To Work)
  • 16. Innovation Across the Value Chain an holistic approach is necessary to convert innovation into growth
  • 17. Thank you Questions? Email: shabbir.pm10k@glogsynbschool.com | Twitter: @strategian