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requires more warehouse space but allows new designs to
be displayed more quickly. These choices allow Zara to
shorten the design-to-retail cycle to as little as 15 days and
to sell most of its merchandise at full price.
10. Presence. Points of presence represent the channels and
channel partners that a company employs to take its
offerings to market. Presence innovation involves
creating new points of presence or using existing points
of presence in creative ways. In the 1980s, when Titan
Watches Limited entered the Indian watch market with a
wide range of stylish quartz wristwatches, it was locked
out of watch retailing channels that were controlled by its
competitor. Titan took a fresh look at the channel, asking:
must watches be sold at watch stores? Titan found that
its target customers also shopped at jewelry stores,
appliance stores, and consumer electronics stores. Titan
pioneered the concept of “nontraditional outlets”
(NTOs)—an innovative retail format that took the form
of freestanding kiosks placed within other retail stores.
For service and repair, Titan complemented its NTOs
with a nationwide after-sales service network where the
watches could be repaired. NTOs’ success contributed to
Titan’s ascendancy as the Indian watch industry leader.
11. Networking. Networking involves connecting the
company or its products with customers through a
network, that is, creating networked versions of products,
services, and solutions. Networking innovation entails the
enhancement of the intelligence, flexibility, or
effectiveness of a firm’s offerings. It is increasingly a
source of competitive advantage for businesses in all
industries, beyond the traditional “back office” venues of
information technology. Consider how Mexican industrial
giant CEMEX redefined its offerings in the ready-to-pour