Innovation in Times of Economic Crisis James Champy Chairman Emeritus, Consulting, Dell Services
2©.
Culture
• The shared values and beliefs of an enterprise – usually manifested in the behaviors of people.
• Can an organization change its culture and/or behaviors?
3©.
Processes
• A group of activities that uses one or more kinds of input to create an output a customer values
• Do you change how people think and then change what they do, or change what people do and then change what they think?
4©.
• VISION OUTSMART!Where ideas come from
• CUSTOMER INSPIRE!Why customers come back
• EXECUTION DELIVER!The importance of the every day
5©.
Business Models Are Changing
The Flaws in Business Models That Created the Crisis:
• Too much tolerance for risk
• Inefficient supply chains
6©.
The Environment
We are in a condition of overcapacity in many industries
Technology has enabled enterprises to become dramatically more efficient
The economy has required enterprises to drive for even further efficiency
In some economies, new jobs will only be created when new businesses are created and begin hiring
Customers will continue to demand and expect more for less
7©.
Business Models Are Changing
Characteristics of New Business Models:
• Technology enabled
• Lean
• Scalable
8©.
Counterintuitive (or Forgotten) Principles
• You can find ideas in many places. Innovation is as much about process as about products.
• Most new business models require a combination of high-tech and high-touch.
• Engaging customers is about aligning with their values – authenticity is required.
• Resources are available for innovation – even in difficult times – but hard decisions must be made.
• Efficiency can drive quality.
9©.
Outsmart! Case Study
WHAT IT DOES:
Provides access to a global community of over120,000 performers.
WHAT IT SAW:
A global love for music, but an inability to globally access performers; a “cottage” industry that could be transformed.
HOW IT OPERATES:• Performers register with
their portfolios• Customers subscribe to the
service• Services are booked over the
Internet
10©.
Questions
• What are the unmet needs of the communities / customers you serve?
• What processes or services can you offer to meet those needs?
• Do you serve a market that needs to be organized? Create “communities”?
11©.
WHAT IT DOES:
Provides non-critical, clinical care from a facility.
WHAT IT SAW:
Most healthcare providers have focused on diagnosis and treatment. Minute Clinic’s founders saw the opportunity to change how healthcare is delivered.
HOW IT OPERATES:• A retailer mentality• Staffed by nurse practitioners• Enabled by information
technology• Open 7 days a week• Patients are seen in ten to
fifteen minutes• Complements the healthcare
system
Outsmart! Case Study
12©.
Questions
• Are there assumptions about how you operate that prevent your delivering the services the market requires?
• Can a change in a “frame of reference” help you think differently about the services that you offer?
13©.
WHAT IT DOES:
Provides customized, pre-packaged supplements and medications for horses.
WHAT IT SAW:
Most barn operations fail to manage the complexity of providing a horse with multiple supplements and medications on a daily basis. The potency of supplements and medications were also being reduced.
HOW IT OPERATES:• Delivers a 30-day supply of
supplements and medications customized for each horse
• Substances are contained in a single plastic container for each day, clearly marked with the horse’s name
• Works with suppliers to achieve efficiencies and bulk discounts
• Provides a high-level of customer service
Outsmart! Case Study
14©.
Questions
• What are the confounding challenges that your constituencies encounter?
• Can you provide “solutions” to these challenges?
• What services can be better enabled by “high-tech, and what service still require “high-touch”?
15©.
Convenient Simple
GreenFun
Smart
Inspire! Case Study
Vision to provide reliable and convenient access to on-demand transportation
Offering a new model of automobile for transportation
Elegantly combines the promise of the Internet with wireless communications and online communities
Example of how innovative businesses can harmonize business goals with the values of their customers and their communities
16©.
Questions
• What processes can you move to your constituencies to help serve them better?
• Do your processes and business model align with the values of your constituencies?
17©.
Inspire! Case Study
Member-centered approach to health benefits
Strives to be an advocate in prescription care
Focused on renewing the relationships patients have with their trusted physicians and pharmacists through increased face-to-face communication
Providing exceptional customer service to the more than 1.2 million members
18©.
Questions
• What are your channels to market?
• Who are your channel partners?
• Do your partners enhance or detract from the value you deliver?
19©.
Deliver! Case Study
21©.
Questions
• Are you making hard choices that enable innovation?
• What management style best serves your enterprise?
• Do you have an approach for managing change – process and behavior?
22©.
Deliver! Case Study
23©.
Questions
• How efficient and effective are your operations?
• How do you measure quality – “customer” experience?
• What processes can be reengineered to deliver both efficiency and quality?
25©.
Questions
• How will technology change the way you operate?
• Do your processes align the interests of everyone engaged in the system of your work?
• Do you express an elevated sense of purpose?