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In 03 tilt 2015 niraj dawar

'Jugaad' is the improvised, frugal Indian approach to innovation. It is becoming increasingly influential in the thinking of many corporations. This series of presentations examines creativity and innovation and means to apply proven techniques for driving systematic, repeatable and managed innovation in your company.

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In 03 tilt 2015 niraj dawar

  1. 1. 01/03/15 Unleash the Spark of Innovation with Jugaad! A One-Day Workshop Session 3: Tilt – Innovation Goes Downstream in the Value Chain
  2. 2. 01/03/15 Framework for the Workshop Post-Lunch Mindspace IDEO, 7 Rules Manpower 10 Faces Pre-Lunch Methods NABC Exercise SCAMPER Marketspace Tilt 4Ms: Methods, Marketspace, Mindspace, Manpower
  3. 3. 01/03/15 Creative Exercise 3 Join all the dots, using only four straight lines, without lifting the pen from the paper.
  4. 4. 01/03/15 Creative Exercise 3 Join all the dots, using only four straight lines, without lifting the pen from the paper.
  5. 5. 01/03/15 Creative Exercise 3 A solution is not always possible at the same level on which the problem exists. You need to go beyond the current boundaries. Connecting the dots.
  6. 6. Intro to Tilt – Niraj Dawar
  7. 7. 01/03/15 Tilt – Repositioning Innovation Product focused and production oriented companies think their competitive advantages lies in sourcing, production, logistics and product feature innovation.
  8. 8. 01/03/15 Tilt – Repositioning Innovation However, these activities are more and more often being commoditized or outsourced.
  9. 9. 01/03/15 Tilt – Repositioning Innovation These activities are driven by economies of scale.
  10. 10. 01/03/15 Tilt – Repositioning Innovation These activities are driven by economies of scope.
  11. 11. 01/03/15 Upstream  Internal – within the company  Access to low-cost suppliers; patents; efficiency in production  Cost leadership or differentiation  New products, technologies, R&D  Erodes as competitors catch up, imitate or leapfrog Downstream  External – in the marketplace  Market information; customer relationships  Cost and risk reduction  New ways of interacting with customers  Accumulative – can grow with time, experience, networks Locus of competitive advantage Types of competitive advantage Basis of customer value Innovation Sustainability of competitive advantage Source: Tilt – Shifting your strategy from Products to Customers (Niraj Dawar) P70 Tilt – Repositioning Innovation
  12. 12. 01/03/15 "Innovation in a downstream facing company is no longer about manufacturing better products. It is about better ways of interacting with customers, better ways of delivering information to customers, and better ways of reducing customers' costs and their risks” Tilt – Repositioning Innovation Source: Tilt – Shifting your strategy from Products to Customers (Niraj Dawar) P70
  13. 13. 01/03/15 In a retail outlet, a consumer buys a can of Coke as part of a 6-pack. The price is about Rs.15 per can. Tilt – Repositioning Innovation These activities are driven by economies of scale.
  14. 14. 01/03/15 The same consumer, on a hot summer day, gladly pays Rs.90 for a chilled can of Coke sold at the point-of-thirst through a vending machine. Tilt – Repositioning Innovation These activities are driven by economies of scope.
  15. 15. 01/03/15 The focus of innovation has shifted downstream to customer satisfaction, customer acquisition and customer retention. Tilt – Repositioning Innovation Rs. 15 Rs. 90
  16. 16. 01/03/15 Tilt – Repositioning Innovation http://www.exgroup.com/index.php?section=our_approach&page=cust_exp_mgmt Designing The Product Experience Data on the Experiential World of the Customer Structuring The Customer Experience Engaging in Downstream Innovation Building the Experiential Platform 1 2 3 4 5
  17. 17. 01/03/15 Tilt – Repositioning Innovation http://www.exgroup.com/index.php?section=our_approach&page=cust_exp_mgmt Data on the Experiential World of the Customer Customer Value Creation • A customer is ready to pay a 500 per cent price premium for a can of Coke delivered to her from a tailor-made machine in whatever the circumstances she wants it. 1
  18. 18. 01/03/15 Tilt – Repositioning Innovation http://www.exgroup.com/index.php?section=our_approach&page=cust_exp_mgmt Data on the Experiential World of the Customer Building the Experiential Platform • It is chilled, it is single serve and it is at the point of thirst, thus moving the concentration away from upstream activities 1 Innovation Space 2
  19. 19. 01/03/15 Tilt – Repositioning Innovation Source: Tilt – Shifting your strategy from Products to Customers (Niraj Dawar) P70
  20. 20. Video of Tilt – Where is Your Center of Gravity?
  21. 21. 01/03/15 In the last 10 years there have been two major innovations in the automobile industry. Tilt – Repositioning Innovation http://www.dgermancar.com/volkswagen/volkswagen-golf-blue-motion-races-2011-rac-future-car-challenge.html An Upstream Strategy (on the product side) Electric engines are replacing IC engines
  22. 22. 01/03/15 What is downstream strategy? Different customers have different needs. Tilt – Repositioning Innovation http://www.responsys.com/blogs/nsm/cross-channel-marketing/secret-customer-centric-innovation-qa-niraj-dawar/
  23. 23. 01/03/15 A downstream strategy means … Noticing how customers have very different needs than what the automobile industry typically provides. Tilt – Repositioning Innovation http://www.responsys.com/blogs/nsm/cross-channel-marketing/secret-customer-centric-innovation-qa-niraj-dawar/
  24. 24. 01/03/15 What is downstream strategy? Instead of selling a customer one car, what if you sold a temporary ownership which would allow them to specify the type of car that they would need for a few hours or a few days? Tilt – Repositioning Innovation http://www.responsys.com/blogs/nsm/cross-channel-marketing/secret-customer-centric-innovation-qa-niraj-dawar/
  25. 25. 01/03/15 In the last 10 years there have been two major innovations in the automobile industry. Tilt – Repositioning Innovation http://www.dgermancar.com/volkswagen/volkswagen-golf-blue-motion-races-2011-rac-future-car-challenge.html Downstream On the customer side temporary ownership.
  26. 26. 01/03/15 Why would customers prefer temporary ownership? Brands such as Zipcar have created a rental model similar to the hourly bicycle rental. This innovation is huge and will grow to be even bigger as consumers realize that the cars we buy are kept parked for 90 % of the time and are only used for 10 % of the time, so why pay for the other 90 %? Tilt – Repositioning Innovation http://www.responsys.com/blogs/nsm/cross-channel-marketing/secret-customer-centric-innovation-qa-niraj-dawar/
  27. 27. 01/03/15 Tilt – Repositioning Innovation http://www.exgroup.com/index.php?section=our_approach&page=cust_exp_mgmt Data on the Experiential World of the Customer Customer Value Creation A customer is ready to pay a price premium for a car that can be a SUV for one weekend and a family car for the next. 1
  28. 28. 01/03/15 Tilt – Repositioning Innovation http://www.exgroup.com/index.php?section=our_approach&page=cust_exp_mgmt Data on the Experiential World of the Customer Building the Experiential Platform Think of one customer who needs a variety of different vehicles for different activities who’s only interest is temporary purchase. 1 Innovation Space 2
  29. 29. 01/03/15 Tilt – Repositioning Innovation http://www.exgroup.com/index.php?section=our_approach&page=cust_exp_mgmt Designing The Product Experience Data on the Experiential World of the Customer Structuring The Customer Experience Engaging in Downstream Innovation Building the Experiential Platform 1 2 3 4 5
  30. 30. 01/03/15 Tilt – Repositioning Innovation http://bit.ly/1k8a0Tq A T Kearney – Reducing Complexity in Retail Banking
  31. 31. 01/03/15 Tilt – Repositioning Innovation Accenture - New Banking Distribu1on Models http://www.accenture.com/SiteCollectionDocuments/PDF/FinancialServices/Accenture-Banking-2016.pdf
  32. 32. 01/03/15 Tilt – Repositioning Innovation Accenture - New Banking Distribu1on Models http://www.accenture.com/SiteCollectionDocuments/PDF/FinancialServices/Accenture-Banking-2016.pdf
  33. 33. 01/03/15 Tilt – Repositioning Innovation Accenture - New Banking Distribu1on Models http://www.accenture.com/SiteCollectionDocuments/PDF/FinancialServices/Accenture-Banking-2016.pdf
  34. 34. 01/03/15 Tilt – Repositioning Innovation Accenture - New Banking Distribu1on Models http://www.accenture.com/SiteCollectionDocuments/PDF/FinancialServices/Accenture-Banking-2016.pdf
  35. 35. 01/03/15 “To compete effectively, companies must shift from upstream to downstream activities, emphasizing how they define their competitive set, influence customers’ purchase criteria, innovate to solve customer problems, and build advantage by accumulating customer data and harnessing the network effect.” Innovation is hugely successful on more “downstream activities” close to the customer. Tilt – Repositioning Innovation
  36. 36. 01/03/15 Innovating in the customer experience. The sign-on to Fidor Bank is through Facebook Connect which, at this time, is one of the only bank that would work this way. Tilt – Repositioning Innovation
  37. 37. 01/03/15 For every 2,000 Facebook likes that Fidor receives, it raises the interest rate on FidorPay checking accounts by 10 basis points per year (with a cap of 15% per year). Tilt – Repositioning Innovation
  38. 38. 01/03/15 Fidor Bank is changing the banking service market by understanding the convenience of social media and engaging customers to co-design products and engaging community to give peer-to-peer support and rewarding customers for specific social interactions Tilt – Repositioning Innovation Source: Tilt – Shifting your strategy from Products to Customers (Niraj Dawar) P70
  39. 39. Video of Fidor Bank Innovation
  40. 40. 01/03/15 Tilt – Repositioning Innovation
  41. 41. 01/03/15 Tilt – Repositioning Innovation
  42. 42. 01/03/15 Tilt – Repositioning Innovation
  43. 43. 01/03/15 Tilt – Repositioning Innovation http://www.exgroup.com/index.php?section=our_approach&page=cust_exp_mgmt Designing The Product Experience Data on the Experiential World of the Customer Structuring The Customer Experience Engaging in Downstream Innovation Building the Experiential Platform 1 2 3 4 5
  44. 44. 01/03/15 Tilt Matrix - Touchpoints, Customer Costs, Customer Risks Prepurchase Purchase delivery, installation Usage Maintenance Disposal, renewal Costs incurred by customers Risks incurred by customers Source: Tilt – Shifting your strategy from Products to Customers (Niraj Dawar) P62 Tilt – Repositioning Innovation Fidor Bank – Downstream Advantage
  45. 45. 01/03/15 Tilt – Repositioning Innovation Accenture - New Banking Distribu1on Models http://www.accenture.com/SiteCollectionDocuments/PDF/FinancialServices/Accenture-Banking-2016.pdf
  46. 46. 01/03/15 Tilt – Repositioning Innovation Accenture - New Banking Distribu1on Models http://www.accenture.com/SiteCollectionDocuments/PDF/FinancialServices/Accenture-Banking-2016.pdf
  47. 47. 01/03/15 • Customer interaction, rather than the factory, becomes the core of business innovation. • The central strategic question changes from "How much more can we sell?" to "Why do customers buy from us?" and "What else does the customer need?” • Innovation to focus on how to reduce customers' costs and risks. • Competitive advantage can be gained by innovatively managing the flow of information in marketplace networks. Tilt – Repositioning Innovation Source: Tilt – Shifting your strategy from Products to Customers (Niraj Dawar) P70
  48. 48. 01/03/15 Mini-size Cooler ChotuKool Tilt – Products to Customers
  49. 49. 01/03/15 Touchpoints, Customer Costs, Customer Risks Prepurchase Purchase delivery, installation Usage Maintenance Disposal, renewal Costs incurred by customers Risks incurred by customers Tilt – Products to Customers Source: Tilt – Shifting your strategy from Products to Customers (Niraj Dawar) P62 Apply the Tilt Matrix to ChotuKool
  50. 50. 01/03/15 Making Innovation Work References Tilt Shifting Your Strategy From Products to Consumers By Niraj Dawar Harvard Business Review Press
  51. 51. 01/03/15 Framework for the Workshop Post-Lunch Mindspace IDEO, 7 Rules Manpower 10 Faces Pre-Lunch Methods NABC Exercise SCAMPER Marketspace Tilt 4Ms: Methods, Marketspace, Mindspace, Manpower
  52. 52. 01/03/15 Read Frooti Case Tomorrow’s Exercise
  53. 53. 01/03/15 Framework for the Workshop Post-Lunch Manpower 10 Faces Make It Work Key Learnings Pre-Lunch Mindspace Mental Models 7 Rules/ Frooti 3Ms: Mindspace, Manpower, Make It Work

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