Unleashing Innovation Across The Value Chain


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Presentation by Shabbir Akhtar made during the selection round to represent Globsyn Business School at AIMA's National Competition for Management Students 2012

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Unleashing Innovation Across The Value Chain

  1. 1. Unleashing Innovation Across The Value Chain A Mantra For Growth By: Shabbir Akhtar, Globsyn Business School – Global Campus
  2. 2. George Bernard Shaw: "Somepeople see things as they are andsay why? I dream things that neverwere and say why not."
  3. 3. InnovationRevolutionary 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. 4. The Tech IndustryRevolutionary 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
  5. 5. Value Chain
  6. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 16. Innovation Across the Value Chainan holistic approach is necessary to convert innovation into growth
  17. 17. Thank you Questions?Email: shabbir.pm10k@glogsynbschool.com | Twitter: @strategian