It is a long mail, but worth reading till the end
Recently read an interesting article in a magazine (Business India) on how innovation really works !!!
There are generally few myths among us about innovation. Some common myths and facts are here
- Innovation is about creating a hot new product ….
- a. Not really as New products are swiftly copied and rarely enjoy sustained benefits
- Innovation comes from being creative …
- a. The reality is it is far likelier to come from being disciplined than being creative
- Innovation is expensive demanding lot of resources …
- a. Failure to innovate is what is costly ….
- Create hundreds of ideas to innovate as chances of failure is high …
- a. Fewer bolder ideas based on you company’s capabilities and unmet customer needs discover work best
Are they not wonderful practical insights?
Similarly it talks about framework for innovation (Monitor framework) where 10 categories of innovation grouped under 4 main areas are discussed …
That is very interesting as most of us would always link innovation to creating great products only J
The 10 categories of innovation are
- a. Finance
i. Business Model – Defining new economic models (e.g.) Moser Baer’s high quality, low margin, high volume business to penetrate home entertainment business
ii. Networking – Enterprise Structure / Value Chain (e.g.) ITC which by passed “Mandis” and started procuring directly from farmers, then leveraging the same platform to create a distribution channel to sell their products to rural India, finally again using the same as a service platform to provide value added consulting services to farmers to improve productivity, reduce cost etc
- b. Process
i. Core Process – Building processes that others can’t duplicate – (e.g.) Again Moser Baer which leverages technical process capability in manufacturing CDs to get into entertainment industry
ii. Enabling process– Process innovation that helps workers to do their work faster, more easily, more friendly, more efficiently and more profitable (e.g.) Fab India’s decentralized procurement, quality assurance as well as inventory management model to procure products from community based art workers
- c. Offering
i. Product performance – Basic features of the products (Functionality and Performance) – (e.g.) TCS banking product that enables branchless banking in rural India which can be procured and easily customized by rural banks with very small capital / operation expenditure
ii. Product System – Extended system that surrounds an offering (degree of customizability) – (e.g.) NREGA – A government of India’s Rural employment scheme that can be fully customized depending on local community needs
iii. Service – How do you service your customer? – (e.g.) Airtel a pioneer in creating multiple service options meeting different customer segments like Being first private player to service in villages, SMS based support system, Vernacular IVR systems etc
- d. Delivery
i. Channel – Ability to connect your offering to the target customers – (e.g.) Again Moser Baer. Reason if we sell entertainment CDs for prices of chocolates, they have to be sold in shops selling chocolates, hence it is available in most of Shops
ii. Brand – How you express your offering benefits to the customers – (e.g.) Again ITC’s e-choupal, a well known name in rural India which it leverages to sell its own product as well as partner products though it started it with original objective of procuring goods from products bypassing mandis
iii. Custom Experience – Creating an overall experience for the customers – (e.g.) Again TCS’s hassle free quick to implement core banking solution for rural India
Knowing the above framework of innovation, is it that tough to innovate in CRMIT? No not at all …
Post your innovative ideas that can transform CRMIT using this web form https://spreadsheets.google.com/a/crmit.com/viewform?formkey=dFpSMHNrUDNSSzNZSjBWRkpXcldBNXc6MQ
You would given an option to nurture and lead that idea …