Page 69 - Marketing Management

46 PART 1 UNDERSTANDING MARKETING MANAGEMENT

Disney with theme parks and Walmart with retailing as examples of
companies that were successful after having executed against a big
idea brilliantly over such a long period of time.
Northwestern’s Mohanbir Sawhney and his colleagues outline 12
Marketin
g
Marketing InsightInsight dimensions of business innovation that make up the “innovation radar”
(see Table 2.5) and suggest that business innovation is about
increasing customer value, not just creating new things; comes in
many flavors and can take place on any dimension of a business sys-
tem; and is systematic and requires careful consideration of all aspects
Creating Innovative Marketing of a business.
Finally, to find breakthrough ideas, some companies find ways to
When IBM surveyed top CEOs and government leaders about their pri- immerse a range of employees in solving marketing problems.
orities, business-model innovation and coming up with unique ways of Samsung’s Value Innovation Program (VIP) isolates product develop-
doing things scored high. IBM’s own drive for business-model innova- ment teams of engineers, designers, and planners with a timetable and
tion led to much collaboration, both within IBM itself and externally end date in the company’s center just south of Seoul, Korea, while 50
with companies, governments, and educational institutions. CEO specialists help guide their activities. To help make tough trade-offs,
Samuel Palmisano noted how the breakthrough Cell processor, based team members draw “value curves” that rank attributes such as a prod-
on the company’s Power architecture, would not have happened without uct’s sound or picture quality on a scale from 1 to 5. To develop a new
collaboration with Sony and Nintendo, as well as competitors Toshiba car, BMW similarly mobilizes specialists in engineering, design, produc-
and Microsoft. tion, marketing, purchasing, and finance at its Research and Innovation
Procter & Gamble (P&G) similarly has made it a goal for 50 percent Center or Project House.
of new products to come from outside P&G’s labs—from inventors, scien-
tists, and suppliers whose new-product ideas can be developed in-house.
Sources: Steve Hamm, “Innovation: The View from the Top,” BusinessWeek,
Business guru Jim Collins’s research emphasizes the importance April 3, 2006, pp. 52–53; Jena McGregor, “The World’s Most Innovative
of systematic, broad-based innovation: “Always looking for the one big Companies,” BusinessWeek, April 24, 2006, pp. 63–74; Rich Karlgard, “Digital
breakthrough, the one big idea, is contrary to what we found: To build a Rules,” Forbes, March 13, 2006, p. 31; Jennifer Rooney and Jim Collins, “Being
Great Is Not Just a Matter of Big Ideas,” Point, June 2006, p. 20; Moon Ihlwan,
truly great company, it’s decision upon decision, action upon action, day
“Camp Samsung,” BusinessWeek, July 3, 2006, pp. 46–47; Mohanbir Sawhney,
upon day, month upon month. . . . It’s cumulative momentum and no
Robert C. Wolcott, and Inigo Arroniz, “The 12 Different Ways for Companies to
one decision defines a great company.” He cites the success of Walt Innovate,” MIT Sloan Management Review (Spring 2006), pp. 75–85.

TABLE 2.5 The 12 Dimensions of Business Innovation
Dimension Definition Examples

Offerings (WHAT) Develop innovative new products or services. • Gillette MACH3 Turbo Razor
• Apple iPod music player and iTunes music
service
Platform Use common components or building blocks to • General Motors OnStar telematics platform
create derivative offerings. • Disney animated movies
Solutions Create integrated and customized offerings that • UPS logistics services Supply Chain
solve end-to-end customer problems. Solutions
• DuPont Building Innovations for construction
Customers (WHO) Discover unmet customer needs or identify • Enterprise Rent-A-Car focus on replacement
underserved customer segments. car renters
• Green Mountain Energy focus on “green
power”
Customer Experience Redesign customer interactions across all touch • Washington Mutual Occasio retail banking
points and all moments of contact. concept
• Cabela’s “store as entertainment
experience” concept

(Continued)