STRATEGY INNOVATION: CREATIVITY INTO STRATEGIC VISION

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STRATEGY INNOVATION: CREATIVITY INTO STRATEGIC VISION

  1. 1. Emilio Genovesi, STRATEGY INNOVATION STRATEGY INNOVATION: CREATIVITY INTO STRATEGIC VISION Emilio Genovesi
  2. 2. Emilio Genovesi, STRATEGY INNOVATION 1. WHY TO INNOVATE: SITUATION IN BUSINESS CONTEXT
  3. 3. Emilio Genovesi, STRATEGY INNOVATION A PRODUCT’S LIFE IS GETTING SHORTER AND SHORTER products are cheaper to replace than to repair increased semantic consumption: the product gets old in its symbolic value increased number of brands: growing demand for novelties 1. WHY TO INNOVATE: SITUATION IN BUSINESS CONTEXT
  4. 4. Emilio Genovesi, STRATEGY INNOVATION CONSUMERS ARE MORE SELECTIVE AND MONEY CONSCIOUS decreased brand loyalty readiness to try new brands and drop the old ones more information available to guide the choice 1. WHY TO INNOVATE: SITUATION IN BUSINESS CONTEXT
  5. 5. Emilio Genovesi, STRATEGY INNOVATION THE MARKET IS HYPER-FRAGMENTED more competition in the marketplace increasing number of segments very niche markets leading to less profits 1. WHY TO INNOVATE: SITUATION IN BUSINESS CONTEXT
  6. 6. Emilio Genovesi, STRATEGY INNOVATION CREATIVE DESTRUCTION: AN ADDITIONAL RISK a market can suddenly shrink or even disappear due to a technological leap (e.g.: Polaroid) 1. WHY TO INNOVATE: SITUATION IN BUSINESS CONTEXT
  7. 7. Emilio Genovesi, STRATEGY INNOVATION CONSEQUENCES 1. WHY TO INNOVATE: SITUATION IN BUSINESS CONTEXT
  8. 8. Emilio Genovesi, STRATEGY INNOVATION CONSEQUENCES Understand your own right innovation is the new competitive advantage Innovation in incremental products is not enough anymore What about other dimensions of innovation such as new processes and business models that guarantee product success? 1. WHY TO INNOVATE: SITUATION IN BUSINESS CONTEXT
  9. 9. Emilio Genovesi, STRATEGY INNOVATION 2. STRATEGY INNOVATION: WHAT IT IS
  10. 10. Emilio Genovesi, STRATEGY INNOVATION CREATIVITY is the ability or set of skills able to generate new things 2. STRATEGY INNOVATION: WHAT IT IS
  11. 11. Emilio Genovesi, STRATEGY INNOVATION INNOVATION is the process of taking an original idea and converting it into a measurable value in a given context 2. STRATEGY INNOVATION: WHAT IT IS
  12. 12. Emilio Genovesi, STRATEGY INNOVATION STRATEGY INNOVATION is a shift of a corporation’s business strategy in order to generate new value for both the customer and the corporation This shift goes beyond incremental products or services, it includes new products, processes and new business models. 2. STRATEGY INNOVATION: WHAT IT IS
  13. 13. Emilio Genovesi, STRATEGY INNOVATION STRATEGY INNOVATION SHIFT: ADVANTAGES AND DRAWBACKS INCREMENTAL PRODUCTS STRATEGY INNOVATION 2. STRATEGY INNOVATION: WHAT IT IS
  14. 14. Emilio Genovesi, STRATEGY INNOVATION STRATEGY INNOVATION SHIFT: ADVANTAGES AND DRAWBACKS INCREMENTAL PRODUCTS INCREMENTAL PRODUCTS STRATEGY INNOVATION STRATEGY INNOVATION ADVANTAGES cheap, easy, fast, less risky, short growth opportunity, first- time results mover advantage, high profit DRAWBACKS easy to be imitated, less high risk, expensive, difficult, margin profit long time results 2. STRATEGY INNOVATION: WHAT IT IS
  15. 15. Emilio Genovesi, STRATEGY INNOVATION 3. THE ROLE OF DESIGN: AN HISTORICAL PERSPECTIVE
  16. 16. Emilio Genovesi, STRATEGY INNOVATION THE 60’s The 60ies The PRODUCT DESIGN FOR… MANUFACTURING 3. THE ROLE OF DESIGN: AN HISTORICAL PERSPECTIVE
  17. 17. Emilio Genovesi, STRATEGY INNOVATION THE 60’s The 60ies The PRODUCT DESIGN FOR… MANUFACTURING 3. THE ROLE OF DESIGN: AN HISTORICAL PERSPECTIVE
  18. 18. Emilio Genovesi, STRATEGY INNOVATION THE 80’s The The 60ies 80ies The The PRODUCT PRODUCT IDENTITY DESIGN FOR… DESIGN FOR… MANUFACTURING MANUFACTURING + COMMUNICATION 3. THE ROLE OF DESIGN: AN HISTORICAL PERSPECTIVE
  19. 19. Emilio Genovesi, STRATEGY INNOVATION THE 80’s The 80ies The PRODUCT IDENTITY DESIGN FOR… MANUFACTURING + COMMUNICATION 3. THE ROLE OF DESIGN: AN HISTORICAL PERSPECTIVE
  20. 20. Emilio Genovesi, STRATEGY INNOVATION THE 80’s The 80ies The PRODUCT IDENTITY DESIGN FOR… MANUFACTURING + COMMUNICATION 3. THE ROLE OF DESIGN: AN HISTORICAL PERSPECTIVE
  21. 21. Emilio Genovesi, STRATEGY INNOVATION THE 90’s The The The 60ies 80ies 90ies The The The PRODUCT PRODUCT BRAND IDENTITY IDENTITY DESIGN FOR… DESIGN FOR… DESIGN FOR… MANUFACTURING MANUFACTURING MANUFACTURING + + COMMUNICATION COMMUNICATION + STORYTELLING 3. THE ROLE OF DESIGN: AN HISTORICAL PERSPECTIVE
  22. 22. Emilio Genovesi, STRATEGY INNOVATION THE 90’s The 90ies The BRAND IDENTITY DESIGN FOR… MANUFACTURING + COMMUNICATION + STORYTELLING 3. THE ROLE OF DESIGN: AN HISTORICAL PERSPECTIVE
  23. 23. Emilio Genovesi, STRATEGY INNOVATION THE 90’s The 90ies The BRAND IDENTITY DESIGN FOR… MANUFACTURING + COMMUNICATION + STORYTELLING 3. THE ROLE OF DESIGN: AN HISTORICAL PERSPECTIVE
  24. 24. Emilio Genovesi, STRATEGY INNOVATION TODAY The The The Today 60ies 80ies 90ies The The The The PRODUCT PRODUCT BRAND CORPORATE IDENTITY IDENTITY VISION DESIGN FOR… DESIGN FOR… DESIGN FOR… DESIGN FOR… MANUFACTURING MANUFACTURING MANUFACTURING MANUFACTURING + + + COMMUNICATION COMMUNICATION COMMUNICATION + + STORYTELLING STORYTELLING + STRATEGY 3. THE ROLE OF DESIGN: AN HISTORICAL PERSPECTIVE
  25. 25. Emilio Genovesi, STRATEGY INNOVATION ITALY USA CHINA TURKEY PRODUCT PRODUCT IDENTITY BRAND IDENTITY CORPORATE VISION 4. THE GLOBAL OFFER IN THE GLOBAL MARKET
  26. 26. Emilio Genovesi, STRATEGY INNOVATION ITALY USA CHINA TURKEY PRODUCT PRODUCT IDENTITY BRAND IDENTITY CORPORATE VISION 4. THE GLOBAL OFFER IN THE GLOBAL MARKET
  27. 27. Emilio Genovesi, STRATEGY INNOVATION ITALY USA CHINA TURKEY PRODUCT PRODUCT IDENTITY BRAND IDENTITY CORPORATE VISION 4. THE GLOBAL OFFER IN THE GLOBAL MARKET
  28. 28. Emilio Genovesi, STRATEGY INNOVATION ITALY USA CHINA TURKEY PRODUCT PRODUCT IDENTITY BRAND IDENTITY CORPORATE VISION 4. THE GLOBAL OFFER IN THE GLOBAL MARKET
  29. 29. Emilio Genovesi, STRATEGY INNOVATION 5. INNOVATION IN THE ENTIRE BUSINESS MODEL
  30. 30. Emilio Genovesi, STRATEGY INNOVATION INNOVATION INNOVATION INNOVATION IN PRODUCT IN PROCESS IN POSITION PRODUCTION SUPPLY CHAIN PRODUCT DEVELOPMENT MANUFACTURING ACTIVITIES RESOURCES AND PARTNERS VALUE PROPOSITION MARKET DEFINITION PRODUCTS / SERVICES TARGET OFFER CREATIVITY CUSTOMER EXPERIENCE POSITIONING TECHNOLOGY POST-PRODUCTION SUPPLY CHAIN LOGISTICS DISTRIBUTION MARKETING WHAT? HOW? WHO? 5. INNOVATION IN THE ENTIRE BUSINESS MODEL
  31. 31. Emilio Genovesi, STRATEGY INNOVATION 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 5. INNOVATION IN THE ENTIRE BUSINESS MODEL
  32. 32. Emilio Genovesi, STRATEGY INNOVATION 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHAT”
  33. 33. Emilio Genovesi, STRATEGY INNOVATION DEFINITION Innovation in value proposition differs from incremental products it includes new experiences to customers 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHAT”
  34. 34. Emilio Genovesi, STRATEGY INNOVATION IDEA New value in products & services New experience 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHAT”
  35. 35. Emilio Genovesi, STRATEGY INNOVATION CASE STUDY IKEA Innovation starts from the “what” and extends to “how” and “who” FOCUS good design to make everyday life better” available for everyone 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHAT”
  36. 36. Emilio Genovesi, STRATEGY INNOVATION INNOVATION INNOVATION INNOVATION IN PRODUCT IN PROCESS IN POSITION PRODUCTION SUPPLY CHAIN Maintaining low cost by outsourcing, flat package, economies of scale Customer involvement in value chain VALUE PROPOSITION MARKET DEFINITION Particular and contemporary Young and middle-low income design family with good value for Low-cost, self-assembly CREATIVITY money furniture People ready to trade off service Scandinavian culture with low price POST-PRODUCTION SUPPLY CHAIN Flat packaging for cheap storage and transportation WHAT? HOW? WHO? 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHAT”/ IKEA INNOVATION MAP
  37. 37. Emilio Genovesi, STRATEGY INNOVATION 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “HOW”
  38. 38. Emilio Genovesi, STRATEGY INNOVATION DEFINITION Innovation in supply chain process and marketing capabilities Develop unique capabilities and operational structures to make the offer easily available 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “HOW”
  39. 39. Emilio Genovesi, STRATEGY INNOVATION IDEA Change in value chain Relationship with suppliers Drive cost down by making trade-off or create structural cost advantage 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “HOW”
  40. 40. Emilio Genovesi, STRATEGY INNOVATION CASE STUDY ZARA Innovation starts from the “how” and extends to “what” and “who” FOCUS design, production, and distribution processes designed to quickly respond to shifts in consumer demands 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “HOW”
  41. 41. Emilio Genovesi, STRATEGY INNOVATION INNOVATION INNOVATION INNOVATION IN PRODUCT IN PROCESS IN POSITION PRODUCTION SUPPLY CHAIN In-house production Value chain control Strategic alliances Speed in product development VALUE PROPOSITION Trend follower Fashionable but affordable MARKET DEFINITION apparel CREATIVITY From teenagers to middle-aged woman POST-PRODUCTION SUPPLY CHAIN Fast delivery Careful shop location choice WHAT? HOW? WHO? 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “HOW” / ZARA INNOVATION MAP
  42. 42. Emilio Genovesi, STRATEGY INNOVATION 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHO”
  43. 43. Emilio Genovesi, STRATEGY INNOVATION DEFINITION Innovation in targeting non -potentional consumers or non-consumers in market segment or a new market 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHO”
  44. 44. Emilio Genovesi, STRATEGY INNOVATION IDEA Redefine costumer segments and target those with underserved needs Create a new costumer segment in existing or new market Create new marketing strategies 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHO”
  45. 45. Emilio Genovesi, STRATEGY INNOVATION CASE STUDY IBM Innovation starts from the “who” and extends to “what” and “how” FOCUS realize that more than 50% of revenues come from service the transformation from supplying hardware to supplying consulting, outsourcing and IT service 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHO”
  46. 46. Emilio Genovesi, STRATEGY INNOVATION INNOVATION INNOVATION INNOVATION IN PRODUCT IN PROCESS IN POSITION PRODUCTION SUPPLY CHAIN In-house production Value chain control Strategic alliances Speed in product development VALUE PROPOSITION Trend follower Fashionable but affordable MARKET DEFINITION apparel CREATIVITY From teenagers to middle-aged woman POST-PRODUCTION SUPPLY CHAIN Fast delivery Careful shop location choice WHAT? HOW? WHO? 5. INNOVATION IN THE ENTIRE BUSINESS MODEL INNOVATION AROUND THE “WHO” / IBM INNOVATION MAP
  47. 47. Emilio Genovesi, STRATEGY INNOVATION 6. THE RULES OF STRATEGY INNOVATION
  48. 48. Emilio Genovesi, STRATEGY INNOVATION RELIABILITY VALIDITY Consistent and predictable outcomes 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 6. THE RULES OF STRATEGY INNOVATION
  49. 49. Emilio Genovesi, STRATEGY INNOVATION Reliability EXISTING MARKET NEW MARKET Validity Business model COMPANY Products & Services Process Innovation Visible Business model CURRENT strategy Products & Services PRODUCT innovation Process INCREMENTAL Breakthrough nnovation Visionary PRODUCT strategy innovation NEW GENERATION PRODUCT 6. THE RULES OF STRATEGY INNOVATION
  50. 50. Emilio Genovesi, STRATEGY INNOVATION Thank you.

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