Jibbitz began in 2005 when Sheri Schmelzer started making charms to fill holes in Crocs shoes. She and her husband Rich saw the business potential and officially launched Jibbitz.com. In 2006, Crocs acquired Jibbitz for $20 million. Some lessons from Jibbitz' success include controlling growth speed, thinking big about extending the business model, maintaining a simple infrastructure, and relying on word-of-mouth marketing. The team proposes a "TO-BE" innovation for Jibbitz that utilizes various IT technologies like ERP, SNS, and mobile to improve customer experience, increase participation and loyalty, and provide new value through transparency and customization.

1. IM621 Value innovation with IT / Prof. Kim, Soung HieOUTSMART ofJibbitzTeam#6Yang Seong SooMoon Sung Jin Son Hee Joo Yun Sahyuck Ham Seung Wan

2. 2Out SMART idea of JIBBITZ0Contents…Company OverviewAS-IS innovationTO-BE innovation – our idea

3. 3Company Overview - JIBBITZⅠIn 2005, Sheri Schmelzer spent the rest of the day filling holes in the family’s 12 pairs of Crocs.In February 2006, while Seri designed, Rich strategized. They decided to sell the charm through jibbitz.comWhen her husband, Rich came home, He could get the idea thathe could make big profitfrom that. And he’d filed a patentRich soon found a way to get plastic Jibbitz manufactured in China. And they moved the operation out of their homeone of Crocs' founders spotted Lexie’sJibbitz at the local pool, handed her his business card, and said, “Have your mom call me.”In December 2006, Crocs bought Jibbitz for $20 million, with the Schmelzers staying on board.

4. 4Company Overview – CROCSⅠCrocs Inc. makes footwear for men, women, and childrenGeneral info & Recent HighlightProduct Features Headquarter- 6328 Monarch Park Place Niwot, Colorado

5. regional headquarters - Niwot  the Americas - Singapore  Asia - the Hague  Netherlands & Europe

6. Recent Highlight - Crocs Inc. signs with top teams in NASCAR (a new driver of earnings) - Acquisition of new companies Jibbitz - 2007’s 4Q earnings up 236% year over year, $112 millionThe unique resin material, croslite Ideal for casual wear, as well as boating, hiking, fishing, and gardeningA soft, lightweight, non-marking, slip & odor-resistant shoeCustomerSatisfaction125 Countries

7. 5Company Overview – CROCS business status ⅠCrocs Inc. has made excellent growth but there are many risks Business HighlightRisks[Growth Rate(%) / 2007]1Seasonality2Decline in popularity[Distribution of Sales]3Competition

8. 6AS-IS Innovation - 2. Lessons From JibbitzⅡControl the speedThink BigControl the speed about the biz idea.Even if you have too much of good ideas,timely providing is more important.Rich Schmelzer understood that without the infrastructure to handle potential demand efficiently, he had to limit his commitments to customersThink big and consider the extension of biz model. Small market size make bizuneasy to keep doing. From the beginning, Jibbitz'sgrowthpotential was limited only by the soaring growth of Crocs itself, but not all new ventures are so lucky.

9. 7AS-IS Innovation - 2. Lessons From JibbitzⅡConsider your infrastructureThink targeted marketingDo not neglect your biz infrastructure and consider reengineeringJibbitzheld its payroll to just 40 employees even as it grew in overseas markets and outsourced production to China. Keep your organization's structure Simple, then you can make your bizgrow easily. Build a goal & think targeted marketingOne way Rich Schmelzer kept operations under control was by relying on word-of-mouth marketing and Jibbitz.com; he avoided spending on traditional ads.Non-traditional marketing could beenough to Jibbits

10. AS-IS Innovation - 2. Lessons From JibbitzⅡTake the long viewSheri and Rich Schmelzer were planning Jibbitz product extensions into anythinghaving holes, such as, anklets, wristbands and cell phone charms.Definitely you should think about thefuture of the company in order to survive in more competitive market & population declining environment. Product extension8