Innovation @ Merage - UCI Paul Merage School of Business : Consumer Products

Upgrading R&D in a Downturn

admin — Thu, 17 Mar 2011 23:36:00 GMT

Abstract: During global economic downturns, senior executives take many measures to reduce costs especially in their research-and-development budgets. However, such measures delay promising projects as well as adversely affect morale. This article’s main conclusion is that companies should take a more innovative and strategic approach to cutting R&D costs. They should use difficult economic periods as an opportunity to upgrade their R&D organization’s focus, practices, and management. This will not only help them to cut their costs in the long run but will also raise staff productivity and accelerate the process to develop new products for the customers.

Published: McKinsey Quarterly, February 2009

Authors: Christie W. Barrett, Christopher S. Musso, and Asutosh Padhi

Link: Upgrading R&D during Downturn

How to Plan Innovation

admin — Thu, 17 Mar 2011 23:33:00 GMT

Abstract: This article articulates the proposition that innovation is about problem solving, understanding how to ask the right questions, and seeing patterns before facts. All these aspects of innovation help companies develop the right product or service for their customers. This article’s main conclusion is that all the employees in a company have the necessary skills to be innovative. The key challenge faced by most of the companies is not to develop new innovative products for the customers but to create an experience for the customers that also preserves the brand equity those companies had built in the past. It is imperative for companies to preserve their brand equity and simultaneously seek out all the innovative opportunities discovered while developing a new product.

Published: Bloomberg Businessweek, March 2011

Authors: Laura Jakobsen

Link: Innovation

Restoring American Competitiveness

admin — Sat, 12 Mar 2011 00:00:00 GMT

Abstract: This article describes that many high tech products such as fabless chips, LCD for monitors, TVs, handheld devices like mobile phones, power semiconductors for solar panels are no longer produced in United States because the industrial commons required for the manufacturing of these products have been lost through outsourcing for short term cost benefits. The article defines industrial commons as the combined capabilities of the high technology firms and the other companies in the industry such as the suppliers of advanced materials, tools, production equipment, and components.

The article’s main conclusion is that the U.S government and industry should work together to revive the country’s industrial commons and thus restore the ability to manufacture a wide array of high technology products. The article also provides a number of suggestions to the policy makers of the U.S businesses about the role that government can play to rebuild the industrial commons and thus realize continued innovation and sustainable economic growth in United States.

Published: Harvard Business Review, July–August 2009

Authors: Gary P. Pisano and Willy C. Shih

Link: Read Full Article

Innovative Ways to Grow During the Downturn

admin — Fri, 25 Feb 2011 23:41:00 GMT

Abstract: This article concludes that well-timed innovations in a downturn can still create growth businesses. The article highlights three areas of change which can help companies succeed during the downturn.

• Be open to opportunities that lie outside the core business.

• Explore partnerships options.

• Invest time and money to unearth unmet consumer needs.

Consider for example, it is because of today's cost-conscious consumers that Wal-Mart Stores is moving to reorient their business models and to reinvent its private label brand, “Great Value”. This has been possible because of the increasing number of consumers who are now looking for private labels. This articles conclusion is that companies will need to challenge some of their basic assumptions to succeed during downturns.

Published: Businessweek, April 2009

Author: Jeneanne Rae

Link: Innovative Ways to Grow During Downturn

Rethinking Marketing

admin — Tue, 30 Mar 2010 22:18:00 GMT

Abstract: In order to maintain a competitive advantage in various industries it is important for companies to shift strategies and structure across the organization to be customer centric. In the past, companies have focused on vastly dispersing information to market their products to customers; however, companies are now shifting their marketing strategies to construct a two-way relationship between businesses and consumers. To implement this change, companies have transformed their marketing departments into “customer departments” and have replaced the CMO with a Chief Customer Officer (CCO). The CCO’s responsibility is to execute the company’s customer relationship strategy and oversee all “customer facing functions”. Rust, Moore, and Bhalla found that successful CCO’s removed obstacles that obstructed the flow of customer information throughout the organization. Brand Managers must become customer managers and no longer be focused solely on the sales of their products, but more globally on what the customers are asking for which will result in higher profits for the company. Lastly, functions such as market research, research and development, customer relationship management, and customer service must shift focus from their independent silos to cultivating customers for the entire company. The implementation of a customer centric strategy will result in new incentives based on customer lifetime value metrics in order to maintain sustainable health for the company. This strategic shift will soon be the only way to sustain a competitive advantage.

Authors: Roland T. Rust, Christine Moorman, and Guarav Bhalla

Published: January – February 2010

Link: Harvard Business Review

Do You Matter? How Great Design Will Make People Love Your Company

Lynda Lawrence — Wed, 17 Jun 2009 23:30:00 GMT

By: Robert Brunner and Stewart Emory, FT Press (2009).

If you know anyone in love with an iPhone, you may understand the feelings that Brunner and Emery describe. According to them, this fierce devotion extends past the product to the company, and enables Apple to charge higher prices and be forgiven for any mistakes.

Does this apply to companies that don’t make the latest must-have gadget? Only if you concentrate on designing the customer experience as carefully as Apple has designed the entire experience of an iPhone purchase: the meticulous product design, the anticipation, the storytelling, the retail stores full of techies to answer questions, the exquisite packaging, the intuitive interface, the geniuses who do the set up, the follow-up emails, and the easy (and often free) downloading of thousands of apps you never realized you wanted.

If, and only if, you create a company that is focused on creating better-than-expected customer experiences, you can reap the benefits. That means top-down permission to play, no cutting corners, no incremental changes substituting for innovation (think Razr phones), quick prototyping, and even quicker response to the market (think GM).

While the recommendations are easier to apply to a product-focused company, they will apply to services. If you’re in charge of a small company that needs to innovate, or in charge of design and need to sell your ideas company-wide, this would be a good book to use.
I’d give it an 8.5 on the LL innovation meter—not a lot of new insight, but a persuasive argument.

Innovation Trickles in a New Direction

admin — Tue, 17 Mar 2009 20:55:00 GMT

Abstract: General Electric, Nokia and other companies are creating entry-level products for emerging nations and then repackaging them for more affluent countries in a process known as trickle-up innovation.

Published: March 9, 2009

Authors: Reena Jana

Link: BusinessWeek

Social Network Lending - Solving the Credit Crisis One Loan at a Time

admin — Tue, 03 Mar 2009 21:21:00 GMT

Abstract: In an innovative approach to the credit crunch, next-gen lenders are teaming up to market their on-line services to consumers. Using a peer-to-peer model, these lenders offer an interesting alternative to the traditional credit market.

Published: February 25, 2009

Author: Anya Kamenetz

Link: Fast Company

P&G's Innovation Culture

admin — Thu, 23 Oct 2008 21:22:00 GMT

Abstract: How we built a world-class organic growth engine by investing in people.

Published: Autumn 2008

Authors: A.G. Lafley with Ram Charan

Link: strategy+business

The Unique Advantage

admin — Thu, 23 Oct 2008 21:02:00 GMT

Abstract: Innovation is difficult for mature, slow-growth businesses and often results in long line extensions rather than high-profit, game-changing innovations. Companies, especially those focused on food and consumer products, need to rethink their innovation strategies to develop products that are unique and hard to copy.

Published: Autum 2008

Authors: Alexander Kandybin and Surbee Grover by Alexander Kandybin and Surbhee Grover

Link: strategy+business

What is Biomimicry?

admin — Thu, 23 Oct 2008 20:40:00 GMT

Abstract: Mother Nature is the surprising source of inspiration for a host of innovations. Engineers, scientists and product designers are taking cues from nature to solve the toughest design problems.

Published: September 2008

Authors: Hillary Woolley

Link: BNET

Designing the Future of Business

admin — Tue, 19 Aug 2008 16:35:00 GMT

Abstract: Forget total quality. Forget top-down strategy. Design is the engine that can transform a company into a powerhouse of nonstop innovation.

Published: August 13, 2008

Author: Marty Neumeier

Link: BusinessWeek

Hydrogen-Powered Cars: Brew Your Own

admin — Tue, 19 Aug 2008 00:44:00 GMT

Abstract: Home-brew kits for hydrogen may bring it back into contention as a vehicle fuel.

Published: July 30, 2008

Link: The Economist

Making Mobile Networks Cheap and Green

admin — Mon, 18 Aug 2008 23:26:00 GMT

Abstract: Innovative base station designs will enable those at the far reaches of the world to have cell phones.

Published: August 4, 2008

Author: Jennifer L. Schenker

Link: Spiegel Online International

Learning from the Olympics

admin — Fri, 08 Aug 2008 21:25:00 GMT

Abstract: From GE to Nestlé to watchmaker Omega, companies use the Games to test-drive new ideas—and strut their stuff.

Published: Business Week, August 7, 2008
Authors: Reena Jana, Frederik Balfour and Oriana Schwindt

Links: Business Week - article Business Week – related slideshow