Challenging Assumptions - Digging Deeper

Most people reading this will know of the freezing weather that gripped the UK over the Christmas and New Year periods together with the associated problems. Although there was some panic buying of food in the shops, by and large we survived unscathed. Did this mean that when the road conditions were appalling, my local supermarket was making superhuman efforts to deliver my Cornflakes?

Towards the end of the freeze I went to a local supermarket and was wandering up and down the aisles when I overheard a conversation between two of the department managers. The first was obviously toeing the company line and said something like "the shelves have been full, the supply chain has been doing a great job". Nice, I thought, he recognises the contribution of drivers and warehouse staff in difficult circumstances. The second manager said "there were less people going to the supermarket because of the bad weather".

It did not matter to me, since I was getting what I wanted, but it highlights a valid point. Accepting observations about full shelves without looking at all the facts meant that I was making a number of assumptions. If I was the supermarket manager I could be patting myself on the back believing that the arrangements I had put in place worked well. Next time there was a big freeze I could do exactly the same. But what if the local council gets better at clearing roads, or everybody buys four wheel drive cars? More people will arrive at the supermarkets and the food may disappear.

Do you think that this is what happened to many of our businesses between 18 months and two years ago? There is no need to become highly cynical, but learning to question the status quo and challenge assumptions is an essential component of an innovation system.

Big Changes for Christmas - Exclusive Interview With Nick Clouse Junior

An insightful and perhaps shocking interview with the man who holds all of the reins regarding the running of Christmas.





Watch here or go directly to YouTube.

Ten ways to Innovate

Many people are stuck when it comes to thinking about why or where you can innovate. You do not have to limit yourself to Marketing or R&D, anyone can get involved. Here are some hints as to where you can get started.

1. Take a look at your business model i.e. How do you go about making money? Dell attempted to turn the turn the personal computer production business model on its head by collecting money before the customer’s PC was assembled and shipped. This greatly improved the cashflow of the business by holding funds for around seven to eight days.
   


2. Organise your business networks and alliances i.e. Do you join forces with other businesses for mutual benefit? Many supermarket chains have ceased to run their own logistics and concentrated on their core businesses of selling goods. Wal-Mart suppliers have also joined forces (normally competitors) to ensure that small 'just in time' deliveries are aggregated to become cost effective.
   


3. Do your processes and procedures support your core processes? i.e. How do you support the company's core processes and workers? Starbucks has delivered its profitable coffee experience to customers because it offered good wages and employment benefits to workers. These were often part time, well educated individuals or students who were motivated and proactive.
   


4. Take a look at your core processes i.e. How do you create and add value to your offerings. Wal-Mart continues to grow profitably through real-time inventory management systems, aggressive contracts with merchandise suppliers, and feedback systems that give store managers the ability to identify changing buyer behaviours and respond rapidly.
   


5. Product performance i.e. How do you design your core offerings The VW Beetle (in both its original and its newest form) took the market by storm, as did the Apple iPod and iPhone. These have performance designed in and can be spun out into multiple offerings.
   


6. Product system i.e. How do you link and provide a platform for multiple products. Microsoft Office "bundles a variety of specific products (Word, Excel, PowerPoint, etc.) into a system designed to deliver productivity in the workplace whilst the iPhone now delivers pretty much the same on the move (plus a phone and entertainment). The system serves a number basic needs and solves consumer problems.
   


7. Service i.e. How do you provide value to customers and consumers that goes beyond the norm? An international flight on a low cost airline will get you to your intended destination. A flight on say Emirates or Thai International will leave you wondering whether you have been flying at all. Do your customers want to just get there or get there refreshed and ready to clinch a big business deal?
   


8. Channel i.e. How do you get your offerings to market? In the US Martha Stewart has developed a deep understanding of her customers so that she knows just which channels to use (stores, TV shows, magazines, online) to obtain huge sales volumes from a relatively small set of "home living" educational and product offerings. This is prety much the same technique as that used by shopping channels such as QVC.
   


9. Brand i.e. How do you communicate your offerings. In the UK, the cute Meerkats employed by CompareTheMarket.com/CompareTheMeerkat.com told us exactly what the online insurance seller did and did not do. The spin off was of course the hugely successful viral marketing campaign that accompanied it.
   


10. Customer experience i.e. How do your customers feel when they interact with your company and its offerings? Harley Davidson has created a worldwide community of millions of customers, many of whom would describe "being a Harley Davidson owner" as a part of their identity. This also extends to some quaint British sports cars such as Morgan for instance.

These are only suggestions, there are probably many more places that you can innnovate. Good luck!