Your SlideShare is downloading. ×
0
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Shanzhai and growth hacking
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Shanzhai and growth hacking

1,580

Published on

Shanzhai and Growth Hacking are new models towards innovation - grow first, then innovate.

Shanzhai and Growth Hacking are new models towards innovation - grow first, then innovate.

Published in: Technology
1 Comment
6 Likes
Statistics
Notes
  • free download here link 100% working:https://app.box.com/s/olzwnk240vfm2ir8yfdw
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
1,580
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
1
Likes
6
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Shanzhai and Growth Hacking DR. VIRGINIA CHA OCTOBER 8, 2012 C H I E F, R E S E A R C H A N D I N N O VAT I O N , INSTITUTE OF SYSTEMS SCIENCE, N AT I O N A L U N I V E R S I T Y O F S I N G P O R E A D J U N C T P R O F E S S O R , S C I E N C E E N T R E P R E N E U R S H I P, I N S E A D ENTREPRENEUR-IN-RESIDENCE, INSEAD EXECUTIVE ADVISOR, NUS ENTREPRENEURSHIP CENTRE ENTREPRENEUR-IN-RESIDENCE, SINGAPORE MANAGEMENT UNIVERSITY
  • 2. What is Innovation? 2
  • 3. Product InnovationImage Source: Google Images 3
  • 4. ProcessInnovation 4
  • 5. ProcessBusiness Model Innovation Innovation 5
  • 6. Service InnovationImage Source: Google Images 6
  • 7. Why do firms pursue innovation? 7
  • 8. Innovation leads to growth 8
  • 9. Innovation Frameworks• Blue Ocean Strategy• Business Model Canvas• Disruptive Innovation• Design Thinking 9
  • 10. Tool/Strategy: Blue Ocean (Value Innovation)Indicative Case: Cirque du SoleilFramework: Strategy CanvasApproach: Eliminate/Reduce/Raise/Create individual factors VS Source: W. Chan Kim and Mauborgne. Blue Ocean Strategy. Harvard Business School Press. 2005 10
  • 11. Tool/Strategy: Business Model Canvas Indicative Case: Nespresso Framework: Systematic approach to describe, challenge, design, and invent new business modelSource: Alexander Osterwalder and Yves Pigneur. Business Model Generation. 11
  • 12. Tool/Strategy: Disruptive Innovation Indicative Case: Wii Framework: F k Performance T j t P f Trajectory Ch t Chart Approach: Lower cost product targeting marginal customers with niche feature and grow performance overtime to win mainstreamImage Source: http://www.thefgi.net/theory-disruptive-innovation/ 12
  • 13. Sustaining Strategy Bringing a better product g g p Customer willing to accept extra product performance b t t d t f but into an established market not willing to pay Performance P f Industry Performance Trajectory demanded at the high end of the market Produc Performance ct Performance Disruptive demanded at the low technological end of the market innovation Low-End Disruption Addressing over serviced customers with a lower cost “good-enough” business model TimeSource: Clayton Christensen. The Innovator’s Dilemma.Harvard Business School Press. 2005 13
  • 14. Tool/Strategy: Design Thinking Indicative Case: Redesigning the Shopping Cart, IDEO Approach: Collaborative and human centric design human-centricSource: IDEO 14
  • 15. Design Thinking: IDEO Zinio Reader Heartstream Defibrillatorhttp://www.techdecoded.com/wp-content/uploads/2010/10/Zinio-Reading-Experience-e1286233330137.jpg,http://msnbcmedia.msn.com/j/msnbc/components/photo/_new/110901-defribulator-hmed230p.grid-6x3.jpg 15
  • 16. Redesigning the Shopping CartSource: http://www.youtube.com/watch?v=M66ZU2PCIcM 16
  • 17. Source: http://www.google.com.sg/imghp?hl=en&tab=wi 17
  • 18. Design Thinking Encourages Prototyping Tab Interface Tab Interface iPhone Stencil g Ticketing SystemSource: http://www.google.com.sg/imghp?hl=en&tab=wi 18
  • 19. Common Characteristics of Innovation Approaches • Start with Design/Strategy • Market Understanding • New Markets/Applications • Creating Original/Novel Works • Purposeful go to market model go-to-market 19
  • 20. Introducing ShanzhaiI t d i Sh h i Chinese: 山寨, shānzhài 20
  • 21. What is Shanzhai? Copied, Pirated or Imitation Goods• Electronics• Clothing• Food• Drink• Ads• Mobile PhonesSource: http://www.google.com.sg/imghp?hl=en&tab=wi 21
  • 22. Source: http://www.google.com.sg/imghp?hl=en&tab=wi 22
  • 23. Everything can be shanzhai-ed in China… Shanzhai McDonald and Shanzhai Watson’s Shanzhai Pop stars.Source: Baidu.com and Google Images 23 23
  • 24. Everything can be shanzhai-ed in China… 24Source: http://china.globaltimes.cn/editor-picks/2010-05/529441.html 24
  • 25. Everything can be shanzhai-ed in China…Photo from http://enovatechina.com/blog/shanzhai-phones-the-great-socialist-experiment/ 25 25
  • 26. Shanzhai 1.0 Copy & GraftSource: Baidu.com and Google Images 26
  • 27. Products of Shanzhai 1.0Photos taken by author/research assistants on trips to Huaqiangbei, Shenzhen, 2010-2011 27
  • 28. Products of Shanzhai 1.0Photos taken by author at Huaqiangbei, Shenzhen, 2012 28
  • 29. Components of Shanzhai 1.0Photos taken by author/research assistants on trips to Huaqiangbei, Shenzhen, 2010-2011 29
  • 30. Shanzhai 2.0 Apple Peel Released July 2010 as a ‘ ki ’ R l dJ l ‘skin’ iPod Touch Apple Peel for the iPod Touch It acts like a phone without a screen. Inside contains • GSM module • Antenna • SIM card slot • Extra battery ½ price iPhonePhoto source: Virginia Cha 30
  • 31. The Brothers Behind the Apple PeelSource: TVB Pearl Special Broadcast on Shanzhai and the Apple Peel 31
  • 32. 32 32Photo source: Virginia Cha
  • 33. Shanzhai 2.0 No longer just copying hardware (fake iPhones ) Building on existing electronics and through incremental innovation creating products around th ti d t d them (A l peel) (Apple l)Source: http://www.google.com.sg/imghp?hl=en&tab=wi, Photo source: Mili, apple, dx-power company websites. 33
  • 34. Photo source: http://www.szgaoju.com 34
  • 35. Apple Pan (Apple Peel 2.0) Thumb drive for iPhone, Th b d i f iPh iPod, and iPad No iTune needed Costs 288 RMBPhoto source: http://www.szgaoju.com 35
  • 36. Shanzhai 2.0 Peel Concept for SoftwarePhoto source: Xiaomi 36
  • 37. Shanzhai 3.0 Innovation Platform Local smart mobile phone developer with own R&D p p development, such as K-Touch, Meizu and Xiaomi All grew first then developed innovations Platform approach: Software + Hardware + ServiceImage sources: http://cdn.slashgear.com/wp-content/uploads/2012/01/meizu-mx-1.jpg 37http://www.whatsondalian.com/ent_images/Xiaomi_phone_a881b31faf416736.jpg
  • 38. Tianyu and Product Innovation 38 Android 2 2 smartphone 2.2 uses dual-core processor NVIDIA Tegra 2 512MB RAM and 8GB of internal memory 480 × 800 resolution 3.8-inch size touchscreen 5 Megapixel camera which can record 720p video 0.3 Megapixel front camera for video chat supports GPS / A-GPS, Bluetooth and WiFi connectivity. pre-loaded with applications f Si W ib QQ K i i l d d ith li ti for Sina Weibo, QQ, Kaixin, Youku FM-tuner, microSD card slot, digital compass, accelerometer and ambient light sensors 100GB free of online storage cloud computing Released in China in mid-April 2011 through China Unicom to about 3500 Chinese yuanPhoto source: Virginia Cha 38
  • 39. Xiaomi M1 Xiaomi M1Photo source: Xiaomi 39
  • 40. Image source: China Daily 40
  • 41. Progress of the Shanzhai Model of Innovation Copy & Graft Layer & Innovate on Modularity • I t Interesting ti • L Layer in i • N f New forms of f combo of features to fill consumption features at low in gaps of • Platform cost performance approach and • Product & • Single multi- multi GTM dimension disciplinary capabilities R&D capability R&D capability Success at each stage l d to growth h leads h 41
  • 42. Failures and Winners Not all Shanzhai Producers Make Progress Shanzhai producers who can follow growth path Those who just copy fade away j py ySource: www.booz.com/global/home/what_we_think/featured_content/shan_zhai, http://www.google.com.sg/imghp?hl=en&tab=wi 42
  • 43. Case Study 1: TencentSource: www.booz.com/global/home/what_we_think/featured_content/shan_zhai, http://www.google.com.sg/imghp?hl=en&tab=wi 43
  • 44. Case Study 2: Renren Renren Group SNS Online Games Social Shopping (ala Pinterest)Source: Renren Annual report 44
  • 45. Case Study 3: BYD’s Manufacturing Cost Innovation • The BYD F3 is an exact copy of the Toyota Corolla, but costs 50% less to manufacture • In Zhengzhou, F3 owners can spend a few hundred Yuan to have the BYD emblem h bl replaced with a Toyota one• BYD Strategy: Cheap products for masses• Copy through reverse-engineering• Can you open new markets with cost innovation?Source: http://www.google.com.sg/imghp?hl=en&tab=wi 45
  • 46. Case Study 4: WingTech 闻 泰 集 团 46Photos taken by author on visit to Wingtech factory, Jiaxing, China. Aug. 30, 2011 46
  • 47. Case Study 5: Rigol Technologies Inc.Photo taken by author, Huaqiangbei, Sept 14, 2011 47
  • 48. 48Photo taken by Virginia Cha, Huaqiangbei, Sept 14, 2011
  • 49. 49Photo taken by Virginia Cha, Huaqiangbei, Sept 14, 2011
  • 50. Question: Without design or plan, how dothey develop their Go-to-market y p (GTM) capabilities? 50
  • 51. Shanzhai Mobile Phones – How did it start?Release of MTK Turnkey chipset (2005) created a platform for bazaar High R&D CostShort LongR&D R&DCycle Cycle The Advantage of Turn-Key The Turnkey platform shortened the R&D cycle from 9-12 months to < 3 months and lowered the technology costs for middle and small mobile Low R&D Cost phone manufacturers. MTK mobile phone manufacturers Vertically integrated mobile phone manufacturers 51
  • 52. Shanzhai and the Bazaar – The EcosystemProvides the fuel to a faster churning supply chain ecosystem Shanzhai Industry in Shenzhen Phone Manufacturers 3000+ Component Manufacturers 3000 Phone Mold Manufacturers 200 Industrial Design 100 Logistics, Trade and Tertiary Businesses 2000+ 52
  • 53. Shanzhai and the Bazaar – The EcosystemQuick R&D, Quick Design, Quick Manufacturing, Quick Shipment• A typical large-scale, vertically integrated, international phone manufacturer (e.g. Apple) takes up to a year from idea to product launch• In Shenzhen, the main “Bandit city” of Shanzhai, manufacturers just need 20 days.• Shanzhai manufacturers share ideas• Like Linux: Release Early and Often 53
  • 54. Product Releases Through Feedback Supply Chain Custo Trade Manuf mer r acturer Speed of feedback collection in Shenzhen? 7 Days 1 Day < 3 Day Customer Trader ManufacturerSynthesized based on interviews conducted from multiple trips to Shenzhen (2010-2011) 54
  • 55. Fast Iterations from Feedback Shanzhai iPhone 4 2 months • Traditional back cover • Irremovable back cover • internal SIM Card slot • External SIM Card slotSource: http://www.google.com.sg/imghp?hl=en&tab=wi 55
  • 56. Can Fast Growth Lead to Innovation? Shanzhai firms grow and develop own sources of innovationSource: http://www.google.com.sg/imghp?hl=en&tab=wi 56
  • 57. 4F’s of Shanzhai InnovationRapid Product Iterations Low costExperimentation Modular componentsQuick Response Affordable Fast Frugal Fit FadLocalizationL li i Trend setting d iTargeted features Early adoptorCustomized Status seeking 57
  • 58. Velocity of Implementation -- FAST iPhone and Ciphone Can you tell the difference? ySource: http://www.google.com.sg/imghp?hl=en&tab=wi 58
  • 59. Relentless Cost Reduction -- FRUGAL SamsungiPhone Galaxy 2 小米4s S3 S =RMB RMB RMB5,880 4,999 1,999 1 999 Image source: Google Images 59
  • 60. Localization -- FIT • Online Dating Platform Pl f • 5.5 million monthly active users • Sell “Stamps” for 2 RMB (0.40 SGD)Source: http://www.jiayuan.com/### 60
  • 61. Fashion Oriented -- FADCollectibles to let fans (mifan) buy into the xiaomi lifestyle and culture 61
  • 62. Shanzhai Progression1.0 is about copy + grafted on improvements2.02 0 is about a fusion of genuine products +accessories to stretch utility3.0 is about creating own innovation platform GROW FIRST THEN INNOVATE 62
  • 63. The rules f 21st century h l forInnovation have changed 63
  • 64. Alternate Innovation Model for the 21st Century FIRST GROW THEN PURSUE INNOVATION 64
  • 65. Is this a China only phenomenon? INTRODUCINGGROWTH HACKING 65
  • 66. What do these companies have in common?Growth h ki helped to d i growth at these companies i theirG h hacking h l d drive h h i in h ibeginning (start-up) stages: 66
  • 67. What is Growth Hacking? Growth hacking is a set of tactics and best practices for growing users Hacking in any method to achieve goals. In this sense the only goal is growth. “A growth hacker is a person whose true north is growth. Everything they do is scrutinized by its potential impact on scalable growth. Is positioning important? Only if a case can be made that it is important for driving sustainable growth (FWIW, a case can generally be made) ” (FWIW made). Sean Ellis formerly of Dropbox, now founder and CEO of Q l f d d f QualarooSource: http://startup-marketing.com/where-are-all-the-growth-hackers/ 67
  • 68. Growth Hacking from Airbnb Airbnb, i il to Ai b b similar t couchsurfing, b t with h fi but ith intervention (not p2p). Airbnb reverse engineered its posts to Craigslist, a functioning trustworthy site with a 10M+ user base Leveraged Craigslist traffic to automatically link to airbnb, without sanctioning from Craigslist (‘stole the traffic’) ffi ’) Airbnb has listings in more than 26,0000 cities and 192 countries. 6 iti d t iSource: http://andrewchen.co/2012/04/27/how-to-be-a-growth-hacker-an-airbnbcraigslist-case-study/ 68
  • 69. Pinterest Pinterest i a website started in 2010 that Pi t t is b it t t d i th t allows users to post photos Users can easily post things from other websites to Pinterest Pinterest prompts users to “Describe your pin…” Currently 11+ million daily unique views As of March 2012 Pinterest is the #3 social networking site in the US with over 104 million unique visitors per month. "YOU ACKNOWLEDGE AND AGREE THAT, TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE ENTIRE RISK ARISING OUT OF YOUR ACCESS TO AND USE OF THE SITE, APPLICATION, SERVICES AND SITE CONTENT REMAINS WITH YOU. "Source: http://mashable.com/2012/04/06/pinterest-number-3-social-network/ 69
  • 70. Dropbox Then: 1. Si Signup D i Driven Homepage H Common now, pioneered here 2. Easy Signup Process Name, Email, Password Now: 3. Refer a Friend With incentives. Also works as a way to track and analyze users activitiesSource: http://blog.kissmetrics.com/dropbox-hacked-growth/ 70
  • 71. 4. Social Media Incentivize sharing, make your users see a benefit in marketing your product 5. Sharing with Simplicity Very little effort to use service. Simplicity is key 6. Availability on Multiple Devices & Platforms Accessible from mobile and tablet devices Designed specifically for mobile and tablet devices. d iSource: http://www.slashphone.com/dropbox-updates-its-mobile-apps-on-various-platform-2311873 71
  • 72. Dropbox Analytics • Simpler Referral Program g • 22-25% of new users were referred by friends Jan-08 No Growth • TechCrunch50 • UI Refresh Hacking Launch • Simpler Homepage • Mac, Windows, Linux and Mobile Versions go live Analytics, A/B TestingSource: http://techcrunch.com/2009/04/24/dropbox-now-effortlessly-syncing-files-for-1-million-members/ 72Source: http://www.crunchbase.com/company/dropbox
  • 73. De-emphazing Planning – Other ApproachesSource: Eric Ries and Steve Blank 73
  • 74. Innovation Approach vs Growth Approach• Start with design/strategy • Start with growth as objective• New markets/applications • New customers• Novel/original works • Not important to be original• Market research/prototyping /p yp g • Experimentation/release early, as test vehicle before product release frequently. Continuous launch beta instead of official releases.• Purposeful to-to-market p • Launch first, then iterate the product• Cathedral • Bazaar 74
  • 75. SummaryInnovate for Growth • Blue Ocean Strategy • Business Model Canvas • Disruptive Innovation • Design ThinkingGrow first, then Innovate • Shanzhai as a new form? • Growth HackingWhich model works for the 21th century? 75
  • 76. Where Good Ideas Come Fromhttp://www.youtube.com/watch?v=NugRZGDbPFU 76
  • 77. ThankTh k you! ! 77
  • 78. Photo Creditshttp://www.flickr.com/photos/smartjunco/384290043/http://www flickr com/photos/smartjunco/384290043/Andrew W. Sieber Attribution-NoDerivs Licensehttp://www.flickr.com/photos/aqaba/304927371/John Parkinson Attribution-NoDerivs Licensehttp://www.flickr.com/photos/pixelbuilder/7187652204/in/photostream/Weslie Leung Attribution-NonCommercial License Attribution NonCommercial 78

×