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The first seminar of Friends4Growth in Ho Chi Minh city with Dr. Philip Charles ZERRILLO (Dr.Z) from SMU - Singapore Management University. …

The first seminar of Friends4Growth in Ho Chi Minh city with Dr. Philip Charles ZERRILLO (Dr.Z) from SMU - Singapore Management University.

Friends4Growth
Together We Grow
--------------------------------------------------
Friends4Growth is a group of young professionals, who share a common passion to learn and grow more in their career through formal and informal educational opportunities. The group was founded by Vietnamese national Le Tran, a Wharton MBA Class of 2009.

The Friends4Growth mission is as follows:

- Be a place for young professionals to exchange and enhance knowledge
- Bring educational opportunities to members by providing access to well-known professors, business leaders and industry experts
- Provide information of universities around the world to members with intention to study abroad
- Share experience in studying, job search, working and living outside Vietnam

To achieve its mission, the group organizes various activities on a monthly basis to its members, such as:

- Seminars on various industry topics, with a sponsorship of the Singapore Management University.
- Coffee chats with experienced professionals from more developed economies
- Q&A sessions covering overseas life and work from seasoned experts


Website: www.friends4growth.com
Join us at: http://facebook.com/friends4growth and http://vn.linkedin.com/in/friends4growth
If you have any inquiry, please contact us at info@friends4growth.com

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  • Mohanbir Sawhney, Robert C. Wolcott and Inigo Arroniz, Sloan Management Review, Spring 2006
  • http://global.scienceboard.net/resources/publication.spotlight.php?id=7749
  • What have been the major marketing innovations in your industry and other industries? Disruptive Innovation – Napster; Oracle; Boston Scientific; FedEx; SW Airlines; eBay Application innovation – existing technology, e.g., On Star; iTunes; Symbol technologies; post-it notes; skin-so-soft bug repellent Product Innovation – Pampers; Google; Duracell; Swingline easy to refill staplers; Gatorade Process innovation – supply chain management, e.g., Wal-Mart Experiential innovation – Starbucks, Commerce Bank Business model innovation – IBM moving into services Structural innovation – deregulation of airlines Saturn – no change in car but change in pricing and community building
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    • 1. Philip C Zerrillo Ph.D.Singapore Management University pzerrillo@smu.edu.sg
    • 2. INNOVATIONInnovation, the exploitation of new ideas, is absolutely essential to safeguard and deliver high-quality jobs, successful businesses, better products and services for our consumers, and new, more environmentally friendly processes. (RT Hon. Tony Blair)
    • 3. INNOVATION“Imagination is more important than knowledge “ – Albert Einstein
    • 4. INNOVATION IS THECREATIVITY PROCESS OFGENERATING CONVERTING NEW OR CREATIVENOVEL IDEAS IDEAS INTO SOMETHING OF VALUE
    • 5. Some Thoughts on Innovation Inside-outside Four Quadrants The Innovation Portfolio Pyramid Marketing Innovation and the lifecycle
    • 6. There are 10 types of innovations 1 Inside-out Outside-in Process. Offering Delivery Finance Enabling Core Product/Service Service Customer Channel Brand Customer Business Value process process performance system Service experience model Networkassembled basic features,capabilities performance, and functionality how you connect how the your offerings to enterpriseproprietary processes your customers makes moneythat add value(including ICT) extended system that how you express surrounds an offering your offering’s enterprise structure benefit to customers and value chain how you service experience for customers your customers how you create an overall
    • 7. 12 Ways to Innovate Traditionally innovations are more often thought of in terms of products and technology. These are components of innovation, but ultimately innovation is about business models.Mohanbir Sawhney, Robert C. Wolcott and Inigo Arroniz, Sloan Management Review, Spring 2006
    • 8. The Sources of Firm Growth (Michael Porter) InorganicLeading companies need a Mergers Growthsystematic framework for profitable &growth – sustained growth of Acquisitionsrevenues and profits over a longduration with shareholder returns High risk & returnthatexceed the cost of capital Organic Expand the Core ‘Sweet spot’ Growth Moderate risk & higher return Optimize the Core Operational Excellence Low risk & return
    • 9. The market life cycle, which is different than the technology adoption life cycle, is elastic–meaning profits from aparticular market segment are not inherently finite–and companies can apply different types of innovation atdifferent times to keep the middle majority market elastic, maximizing profits from products. Technology Application Product Process Experiential Marketing Business Model Structural Innovation Innovation Innovation Innovation Innovation Innovation Innovation Innovation Product Customer Operational Leadership Intimacy Excellence
    • 10. Some of these are easier than others to engage or overcome. Marketing Innovation Experiential Service Innovation Innovation Process Business Innovation Model Innovation Product Innovation Application Structural InnovationRevenue Growth Innovation Disruptive Innovation Time Source: Moore (2005)
    • 11. Some Apply More Than Others“Our Industry is Unique?” Environment is low service Opportunities for after care service are limited Purchase takes place among a series of other purchases Customer experience level is high Purchase frequency is high Transaction needs to be completed immediately Customization opportunities are limited
    • 12. So; Where are the Innovation Plays?1. Cross functional innovation – (Any Where)  Every function is a place to innovate!  Finding the systemic business model innovation that enables market-leadership  Finding a business model that creates value for multiple parties2. Marketplace innovation3. Product innovation4. Supply chain innovation (an opportunity any process)5. Collaborative innovation (Inside and Outside)
    • 13. Why Is Innovation important?- The Stakeholders- View Company: firms that are innovative achieve higher growth rates and sustained profitability  Greater market valuation  Reduced funding costs Employees- Experience higher morale, greater work satisfaction, and esprit de corp  Easier to recruit, and retain Nations with a solid innovation engine have higher GDP growth, and greater economic prosperity  Singapore vs. Kenya ?
    • 14. The Stakeholders View- Impact on Society Innovation enables a wider range of goods and services to be delivered to people worldwide  Media, efficient food production, telecommunications, improved medical technologies, better transportation etc.  Increases gross domestic product or the output of the society by making labor and capital more efficient and effective
    • 15. Who is missing? Who is the missing party in this innovation discussion? http://www.photos8.com/masked_m an_graffiti_art-wallpapers.html
    • 16. Who is Missing? The partner and customer firms!  a study of 756 technology CEO’s reported that customers and partners were a significantly greater source of ideas for innovation than their own employees and R&D staff (IBM Industry Innovation CEO report)  The highest quartile of performers source 30% more ideas from outside their firm
    • 17. Who is Missing? Firms that look outside and inside perform best!  80% of the highest performing quartile cited collaboration is of great importance to their innovation process, as opposed to under 50% for the remaining firms.If you think you have all of the answers, or that it must be invented here- you are wrong
    • 18. Collaboration Collaboration insures  Customer centric innovations  Ready market  Committed market  Informed market  Reduces commercialization cost  Provides certainty
    • 19. Problems With Collaboration Control Timing Speed integration Varying commitmentThe most successful innovation partnerships come when the firm is open, quick and experienced in working together.
    • 20. A Few Examples of Collaborative Johnson Controls  Seats to interiors Dell  The payoff to collaboration!  Win - Win: How to get your supplier to fund your innovation The airline Industry
    • 21. There are five mutually exclusive Market Responding Growth Drivers that create top-line unit growth. High-Level Growth Drivers Increase Acquire New Volume/Revenue with Customers Existing Customers 1. 2. 3. 4. 5. Improve Create New Stimulate Customers of Non-Users of Retention Uses Current Uses Other Product / Companies Service While Growth Drivers provide a high level sense for what behavior we want to change or reinforce, further specificity is often required. Determining which of these is the right course of action is a meaningful first step
    • 22. Market Driving StrategiesBring “Best  Make an acquisition that “domesticates” the market andPractices” reduce intensity of competition inside  Example: Haliburton purchase of Landmark Graphics (reservoir flow visualization)Modify the Value  Change traditional power structure in value chain Creation  Example: Sony Playstation vs. game developers and Process publishers- (used third party developers to build scale)Change the  Develop scale that changes the competitive dynamic Basis of Scale  Example: The Auto-industry and the capital allocation  Eliminate players in the value chain, such as traditional Rethink distribution channels and suppliers Eliminate Players or – Example: Dell computer, online books, music…. Stages
    • 23. Market Responding  Everything starts with the customer. Begin with the customer and develop your business model---start with a demand and work backward---- The Market responding or Customer centric firm takes their lead from the customer  To be terrific they must go outside of the customer and understand the context in which their business takes place  Understand the “other forces” that will effect performance and the customer’s demand (e.g., competition and the environment )  Responding firms need to have insightful information and disseminate it broadly within the firm  Market driven organizations systemically outperform their rivals  Customer satisfaction, retention, loyalty advocacy
    • 24. Acquire Player in Value Chain
    • 25. Garden.Com√√√
    • 26. Delivering Value to Customers Product/Service Basis for Differentiation Characteristic Value Mechanism Price Lower Price Search Attributes Performance Unique Features (Tangibles) Benefits Service Packages Experience and Credence Reliability Service Quality Attributes Responsiveness Service Delivery Managed Risks Perceived Risks (Intangibles and Reward Loyalty Relationships Non-Monetary Costs) Trust Image, ExpertiseSource: Rajendra SrivastavaExecutive Briefing
    • 27. Customer/Brand Value at Capital One Product/Service Basis for Customer Value Characteristic Annual fees Interest rates Search Attributes Credit limit Late fees (Tangibles) Air-Miles Auto insurance Experience and Credence Knowledgeable Service Reps. Attributes Time spent on hold (phone & mail jail) (Intangibles and Accuracy of postings Non-Monetary Costs) Dispute resolution Prestige & reputation Good Value Cares about customers Trust Which attributes are important for attracting new customers? ….. keeping old ones?Source: Rajendra SrivastavaExecutive Briefing
    • 28. 45% 20% 15% 15% Better Cheaper Lack of Inadequate Product Product Personal or Rude Attention Service Search Attributes Experience Attributes Customer Attraction Customer Retention Source: Technical Assistance Research Programs Institute30
    • 29.  Leverage technology to improve responsiveness  One stop shopping  Service excellence at a fair price  Event-driven X-sell and Up- sell Customer insight management Risk monitoring31
    • 30. To Develop a True Growth Culture- We Need Champions –Everywhere!1. Framework for understanding the innovation event2. Insight into the opportunities for innovation3. An understanding of where we can commit disproportionate resources for disproportionate results4. Detailed planning process charged with action5. Frameworks for monitoring performance6. Creation of Innovation coaches/champions/ninja
    • 31. Airline Industry 1980- theAlbatross Key issues  “Seat is a seat”  Costs are overwhelming Conventional logic-  “low innovation industry- mange costs!” Key Costs  Fuel  Labor  Capital

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