Innovation
Executive summary
Business organizations have implemented and embraced different organizational strategies that have contributed positively to the performance, and general business productivity. Product innovation strategy has been one of the strategies used to improve product performance and increase sales within an organization. Innovation models are important features of a successful organization. Advanced technology has led to the use of improved business strategies in increasing productivity and performance. Business organizations have embraced different changes in the social and technological aspect to provide products and services suitable for customers. Multiple innovation models may be incorporated into the business strategy to provide efficiency in operations. Most companies in competitive industries have used the Doblin’s innovation models to remain at the top of the competition. Innovation strategies help organizations to improve on products and services according to the prevailing market conditions. The ten types of innovations embrace different areas of product development thus provide a suitable technique to increase production efficiency. Appropriate innovation models need to be selected for an organization so as to provide a better result. This paper elucidates three of the ten types of innovations as per Doblin group and pins down its application in various business organizations. The paper also discusses efficiency in applying the innovation models, and further recommendations.
Introduction
More than often, innovation tends to concentrate on product performance, new products, new features and updates. Product innovation has always been centered on the Research and Development practices in designing and developing new products. The Doblin ten types of innovation have improved product innovations in nine other innovation models incorporating every stage of business functionality. Most organizations have invested heavily in research and development as a means to achieve innovation. However, innovation tries to encapsulate most areas that surround product innovation. Business organizations have remained on top of competition through proper utilization of these strategies in achieving high production and sales. Appropriate use of these strategies produces excellent results in business performance and efficiency.
According to Doblin, there are ten types of innovations which, when utilized and incorporated into the business strategy, and an organization is likely to be successful. Heightened transformations in business organizations have made innovation imperative for the companies. Demand for innovation has been precipitated by the urge to acquire and keep customers, remain competitive in the industry, and absorb more productive employees. The ten types of innovations have provided a new business transformation in identifying innovative opportunities and improve firms’ performance against their competitors. This paper focuses on the network, product performance, and brand types of innovations within the Doblin’s context, their application in the consumer value provision, and how different organizations have embraced some of these innovations for the achievement of the firm’s objectives.
The Doblin group is an innovative organization within the Deloitte Consulting LLP that is responsible for the implementation of strategic tools to change the management and increase organizational capability building. Organizations need to focus beyond product innovation when dealing with breakthrough innovation. In the modern age, technology has increased and improved products and services provided by imitators. As a result, the product innovation strategy as a means to create value for the firm has become a useless strategy. The ten types of innovation is a concept that brings on board nine other significant innovations in addition to product innovation. There are three categories of the Doblin Ten types of innovations which include Configuration, Offering, and Experience. Configuration part of the model entails practices and strategies employed by a firm to make profits. The offering category in the model covers the core product elements, organization, and integration of the product. The experience encompasses different ways through which an organization interacts with its customers.
An application to Provide Value to Consumers
The Ten types of innovation, as stipulated by Doblin, offer a meaningful insight to business organizations in innovation strategies. In the modern age, organizations need to be flexible and creative with the strategies used so as to gain a competitive advantage within the industry. It is important to adapt and embrace the ten types of innovations as they provide an opening to identify and evaluate different innovative opportunities. With the implementation of the above-mentioned innovation practices in an organization, the success of product and service innovation is guaranteed. Some firms fail in product innovation because of focusing on a particular type of innovation rather than a multiple (Sutherland & Canwell, 2008). According to Doblin group, a firm that utilizes multiple innovation types increases the chances of improving its general performance.
This paper will focus on three types of Doblin’s innovations that include network, product performance and brand innovation. The above mentioned innovations are from the three major innovation categories: configuration, offering, and experience. Network innovations are of vital importance in an organization as paramount decisions and investments are made out of partnerships. Product performance innovation has a large impact on the customers’ acceptance of products and services. Brand innovation determines whether customers remain loyal to the brand or choose alternative brand. The above three models are equally significant as the others; however, they tend to manifest more often in most organizations. An analysis of the three models is based on Virgin Atlantic Airline, Coca-Cola Company, and Nike Company.
Organizations and their application of innovation models
Virgin Atlantic Airline
The Virgin Atlantic forms one of the many Virgin Brands founded by Sir Richard Branson. Virgin Atlantic Airline has utilized a multiple of mix business strategies and innovations in gaining an upper hand in the airline industry. According to the founder, Virgin Atlantic Airline has accomplished its objectives by modifying and improving passenger experience onboard and on the ground (Balmforth, 2009).
Network
The Virgin Atlantic Company has entered into various partnerships and ventures in widening its network and improving customer service. In 2014, Virgin Atlantic entered into a joint venture with Delta Atlantic Airways with one of the primary objectives of providing a greater preference of routes. Delta Airways took 49 percent of the stake, while Sir Branson retained the majority 51 percent. The joint venture between these airlines has increased the number of passengers and a subsequent number of flights across the trans-Atlantic route. The increase in competition from British Airways, and Emirates, and Turkish Airlines has triggered new business innovations that will see enhanced competition with the UK and North America.
On the other hand, Virgin Atlantic partnered with Jet Airways which is the second largest airline in India in 2009 so as to connect passengers between the two countries. Operating over seventy destinations around the world, Jet Airways venture with Virgin Atlantic has improved business operations and increased the number of passengers in both Airlines (Lansley, 2008). Ventures and partnerships within the Airline industry play a significant role in connecting passengers, improving onboard and ground services, as well as increasing the number of passengers.
Product performance
The Virgin Atlantic Airline was founded by Sir Richard Branson in 1984 after a horrible experience and service with the British Airways. The firm has improved every aspect of service provision and created value for passengers’ money. According to Branson, Virgin Atlantic aimed at providing comfort, excellent services, and operational efficiency. Virgin Atlantic is the second largest airline in the United Kingdom with an increased number of destinations across the world. Product improvement in the airline has been manifested through its onboard and on the ground services (Smith & Taylor, 1998). Affordability aspect has been put into consideration by the provision of different flight classes which include the premium, and the regular classes. Segmentation in the airline offer passengers a choice of different classes based on the customers’ affordability and taste. On the other hand, seasonal prices provided by the airline ensure customers get offers and promotions during low seasons. The provision of the above-mentioned products and services attract customers leading to increased revenue.
Brand
Virgin Atlantic has converted its values, visions, and goals into action through the application of feasible strategies. The branding strategy of the firm has encompassed the airline's image and what it offers to its passengers. According to Branson, the airline strives to maintain a high standard and customer satisfaction driven business (Radjou, Prabhu, & Ahuja, 2012). Through a marketing mix of product, price, place, and promotion the company has increased its brand awareness across the world. The innovative branding strategy has created a positive image that spreads across the airline realm. Branson has bundled various values like quality customer service, value for money, and entertainment in satisfying the customers and making flights enjoyable. Quality customer service is of precedence to the company in ensuring company’s objectives are achieved. The company has a team of around 9000 employees across the world; trained and highly dedicated in providing best customer service. In 2011, the Virgin Atlantic Airline was recognized as “the Travel Brand of the Decade” by the Chartered Institute of Marketing’s Travel Industry Group (CIMTIG).
Recommendations
The Virgin Atlantic Airline has managed to remain competitive in the industry through its strategic techniques in improving business operations. The Virgin Atlantic Airline has increased its flights and expanded network through a partnership with Singapore Airlines, and Delta Airways among others. These partnerships have increased efficiency in transport and improved the general outlook. However, some areas need modifications and improvement in service provision. A further stable profit model needs to be implemented to help acquire more passengers thus increase business profits. Research on various customer needs and preferences may assist the firm in knowing what the customers need and don’t need. The company has been faced with a challenge of a limited number of planes. Increasing the number of planes would facilitate in increasing the passengers. Additionally, service provision on board ought to be improved through the employment of more skilled and competent personnel. The brand innovation strategy has been excellent though more brand marketing needs to be done outside the UK.
The Coca-Cola Company
The Coca-Cola Company is an international company that focuses on the manufacture and retail marketing of non-alcoholic beverage and syrups. The company offers a wide array of products and services through its subsidiaries across the world. The firm has implemented various business innovation strategies that have enabled it to maintain a top position in the vicious competitive industry.
Network innovation
The network model of innovation aims at working with others in a collaborative effort to provide an innovative solution. An open innovation system strives on building partnerships and connections in gaining an upper hand in technology, processes, and brand credibility. An organization leverages expertise and skill set outside the firm in achieving product and services successfully (Saxena, 2009). Partnerships are important in the growth and development of an organization. The Coca-Cola Company has entered into different partnerships across the world in addressing economic, social, and environmental challenges. Some of the problems and challenges faced by the company require a collaborative approach. It is important to engage these organizations so as to facilitate the achievement of the firm’s goals and objectives (Kaplan, 2012).
For instance, the firm entered into a partnership with the World Wildlife Fund (WWF) in conserving nature and alleviates threats associated with the ecological system. According to WWF Chief Executive Officer, business and conservation are like two sides of a coin; thus organizations must strive to conserve the natural resources to accomplish desired business goals successfully (Richter, 2012). This partnership aims at protecting species and their habitats, transform markets and respective policies in alleviating the effects of production and consumption, and ensure that nature is given precedence when it comes to business and government decisions. The firm has also partnered with over 275 bottling partners who range from large organizations, public traded companies to small scale enterprises and family businesses. Bottling partners help the Coca-Cola Company in the manufacture, packaging, and also distribution of beverage.
Product performance
This type of innovation revolves around the quality, and features of the products being offered. The basic concept of product performance is the establishment of a unique and attractive product that offers competition in the market. Product performance innovation utilizes Research and Development strategy in developing a successful product. The Coca-Cola Company has well-established quality and governance processes that have ensured safety and quality of its products. The firm follows strict governance and compliance regulations laid down by the Coca-Cola Operating Requirements (KORE). High standards and processes within the firm operations are manifested in the production, packaging, and product delivery. These processes are undertaken based on the customers’ requirements and expectations. Caramel coloring done on various Coca-Cola products brings a strong appeal to customers thus improving sales and distribution within the organization (Carlson & Wilmot, 2006). Additionally, Coca-Cola has manufactured a wide range of products that include carbonated soft drinks, water, juice, energy drinks, and squashes among many others to expand its customer base.
Brand
The Brand type of innovation involves the perception and reputation of an organization’s products and services. The building of a robust and appealing brand is a key aspect in ensuring customer loyalty and survival in a competitive industry. The Coca-Cola brand has been in the soft drink industry for a long time as one of the leading non-alcoholic beverage in sales. Coca-Cola has incorporated different product variants into a one brand strategy so as to increase marketing efficiency of the brand. Some of these products include Coca-Cola, Coca-Cola Life, Coca-Cola Zero, and Diet Coke. Different marketing strategies have been undertaken by the firm to increase customer base and increase business productivity. Campaign programs and advertisements on brand awareness are consistently developed to create a wider brand territory. In January, the firm initiated the international TV spot anthem with “Taste the Feeling” as the punch line.
Recommendations
The Coca-Cola Company needs to get into more partnerships and ventures with relevant soft drink and beverage companies so as to increase product diversification and widen the customer base. As an international company, more joint ventures and partners are needed to increase the packaging and distribution network. The network is an important endeavor in a competitive market as it adds an advantage to the firm. The beverage industry has many players who offer competition to Coca-Cola products and services (Butler & Tischler, 2013). The firm has done tremendous work in introducing different variants of Coca-Cola in providing a broad range of customer preference and choices. Additionally, the company needs to offer a customer engagement platform where recommendations, needs, and preferences are deduced in the manufacture of these products.
Nike Company
Nike Incorporation is a multinational company that deals with the design, development, and sales of footwear, accessories, equipment, and services. The company has implemented business strategies focused on the sports lifestyle (Kumar, 2013). Nike has faced fierce competition in the market resulting in the implementation of various strategies. Nike has used different innovation strategies in driving up the firm’s sales and revenues.
Network innovation
The network type of innovation focuses on creating strong connections and relationships with various organizations to increase customer base and improve products and service delivery. In 2013, Nike partnered with blue signs technologies in ensuring a quick supply of sustainable materials to the firm. The partnership with blue signs technologies has helped the company eliminate hazardous substances while modifying new and durable materials. Additionally, the firm has also partnered with NOVA Company with the aim of improving its digital design. NOVA Company is owned by DreamWorks Animation SkgInc that focuses on the creation of 3D digital design system. The partnership has helped Nike in enhancing the digital design potential and in the creation of more digital prints and photo types (Morris, Ma, & Wu, 2000). Networking innovation strategy has worked well for Nike Company as it has facilitated in creating breakthroughs in sales and profitability.
Product performance/system
The Nike Company has been proactive in endorsements strategies by sports stars across the globe. Nike is a leading company in the sportswear and equipment production. This strategy has provided greater market stability for the company in such a competitive shoe industry. The signing of basketball superstar, Michael Jordan, through endorsement strategy, has improved the overall sale of Nike products. Sports sponsorships have cost the company up to $ 8 billion investment from 2002 making it the highest spender on endorsements. Nike offers a wide array of products and services to its customers through retail outlets across the world. Quality and consistent modification of these products have attracted customers of all age (Fleisher & Bensoussan, 2010). Competition from rivals such as Reebok, Li Ning, and Adidas among others has resulted to a diversification of products and services. Apart from shoes, Nike sells shirts, shorts, sweats gear, socks, and backpacks among much more. The product system innovation is an extension of product performance where a firm creates a value of their product by adding products and services from an outside firm to its products. Nike Company has integrated a product system that encompasses a wide array of sportswear, and also allows athletes to track their movements.
Brand
The Nike brand marketing strategy has an emotional attachment to the customers as stories of heroism surround their advertisements. Nike brand remains to be a powerful brand across the world through its inspiration of loyal customers. Advertisements of Nike products and services are based on heroic stories that turn out to be excellent customer acquisition strategies. Increased competition in the market has led to more advanced brand marketing strategies that will ensure customer acquisition and retention. Nike’s brand strategy has played a significant role in winning customers’ trust and loyalty. The evolution and advancement of Nike’s brand strategy have been in line with customer needs and preferences. Additionally, Nike has designed a wide range of brands that have reached out to different customers across all lifestyles, and sports (Lansley, 2008). The use of hero archetype brand adverts has increased the number of customers and subsequent revenues.
Recommendations
Nike Company has implemented multiple strategies and business practices that have improved productivity and performance of the organization. The incorporation of various innovation strategies in the business organization has helped boost customer loyalty and increase customers. Being a design and development company, Nike needs to enter into partnerships with multiple firms to help improve product design and service provision. Additionally, the company should have more products under the product strategy so as to increase sales. The company has utilized the product performance innovation well through modification and enhancement of its products (Wong, 2008). However, more should be done in ensuring production of Nike products that fit a specific need of a particular customer segment. A brilliant work has been done in brand innovation, and the company needs to embrace the same techniques.
Building an attractive interaction between the consumer and the product offered is of crucial importance. A firm is required to probe customers’ needs and tastes to get a better understanding of the necessary product modifications. Nike has been actively involved in engaging customers through the wide range of products and services across the world. The firm consistently interacts with customers from all walks in determining their desire, and preferences (Carbasho, 2010). This relationship is a very crucial aspect of the business operations of Nike as it helps gain customers trust and loyalty. Nike Company has engaged in an enormous sponsorship program that encompasses various sports such as football, basketball, and tennis among others. Additionally, Nike’s brand has been strategically modified to attach customers emotionally to their products and services. As a result, the Nike Company has a strong connection.
Conclusion
The Doblin ten types of innovations have been welcomed with a positive impact on business productivity and performance. Most organizations have always focused on Research and Development when it boils down to product innovation. On the contrary, product innovation encompasses nine other innovations that, when utilized, result in improved business profits. In the modern age, business organizations have embraced a wide range of strategies precipitated by the highly competitive market environment, and improved technology. An organization needs to gain an upper hand in a competitive market through consistent innovations, and transformations in the business structure. Increased demand for products and services has consequently heightened the preference and taste for customers. The dynamic market environment has to be embraced through adaptability techniques so as to provide products and services in line with customers’ needs.
Increased competition in the market and advanced technological techniques has put pressure on business organizations to produce more reliable and high quality products and services. The ten types of innovation by Doblin group have changed the business perception of many entrepreneurs through multiple combinations of innovations. A combination of various innovations models in a business organization helps in product production and sales. These types of innovations provide an alternative to product research and development strategy. Changes in the social and cultural aspects of the society have led to variations in tastes and preferences and increased demand for different products and services. Business organizations ought to adapt to the prevailing transformations so as to remain competitive in the market.
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