managing tech
Please Read the following examples and map all of the innovations in the 4Ps innovation space (Slide 20). Please justify your answers.
It is very important to differentiate product vs. service innovation and product vs. process innovation. Also analyze the degree of radicalness for each of them.
All answers must be submitted to Moodle by June the 19th
ClassPass: Currently operates in 20 US cities. From $79-$99/month (varies by city) for unlimited lessons from a wide range of boutique fitness studios: from cycling to
pilates, yoga, strength training, dance, martial arts, and more. The stipulation is no more than 3 classes from the same studio in that month. The site is extremely
user friendly and answers every question prospective users would want to know. It’s a win for consumers because ClassPass enables them to explore a range of exercise
options far more affordably than was ever possible.It’s a win for small studios, including new concepts, because it increases their awareness and trial in a low cost
manner. More people try than otherwise would, because the cost per class is so incredibly low and users want to get their monthly money’s worth. To a large extent,
ClassPass users utilize slots that would go empty, so there is little incremental cost to the boutique studios. Because classes seem fuller as a result, they appear
more popular. The studios hope to convert some of the trials into more permanent memberships. ClassPass is also great for the fitness class industry because it
encourages more people to enter the market and try as many different exercise options as possible in a short time frame; And because those consumers are motivated to
exercise as often as possible during the month, the exercise is more likely to turn into a habit.
Bluesmart Suitcase: This genius suitcase solves the most concerning problems travellers have with their luggage in ways previously unimaginable. It’s a prime example
of how technology can transform something very basic and functional and solve age-old problems. Bluetooth tracks the location via a proximity heat map. GPS helps find
the suitcase if it’s missing over a longer distance. A built-in digital scale weighs bags so you can easily tell if it’s overweight, and a built-in battery lets users
charge devices. A digital lock lets users lock their suitcases with their smartphones, and if users get separated from their luggage, they can lock the suitcase
remotely. A large, easily accessible, outside pocket on the carry-on version makes it much easy to access just the laptop when going through airport security. The
Bluesmart suitcase is priced comparably to other high-end luggage, so the value added is great.
3M’s Transportation Load Control Center: In 1982, 3M, like every other company, had to leave transportation decisions to each plant and distribution center. Roy
Mayeske, at that time the Executive Director of 3M Transportation, had the idea to centralize transportation planning to look for network synergies. 3M took mainframe
software being used by Schneider National – one of its major carriers – and modified it to be workable from a shipper perspective. Ship sites called in planned
shipments; carriers and routings were phoned back. The LCC is now of course a standard practice today.
Christian Louboutin Nail Polish: Christian Louboutin is to my mind, one of the most innovative people on the planet. The most recent category he’s entered is nail
polish, pioneering a new luxury segment. Everything about his new nail polish screams unique/different/innovative/luxurious. The patented design of the 8-inch tall
bottle, with a pointed spire, reminiscent of his iconic ballet flat spike heel, is a statement by itself. Too tall to fit in an average mirrored bathroom cabinet, it’s
likely to be displayed in the open, like a form of art. The glass bottle is faceted like a jewel. On display, it’s a conversation piece that reflects on the creative
taste of the owner. The $50 bottle comes in a tiny smart looking patent leather box covering the base, making it a fun gift item. The brush shape is triangular and is
said to eliminate air bubbles when applied. Because the unique formulation results in 2 coats looking like 20 for ordinary polishes, the price might not be as high as
it seems.
The Universal Product Code: Though the idea to use some form of printed and even wireless automatic product identification had been around for decades, lack of
standards had precluded individual ideas from gaining any sort of critical mass. In 1970, a company called Logicon wrote a standard for something close to what became
known as the Universal Product Code (UPC) to identify via a bar code a specific SKU, an effort that was finalized a few years later by George Laurer. The first
implementation of the UPC was in 1974 at a Marsh’s supermarket in Troy, OH north of Dayton. The invention triggered the auto ID movement, forever changing supply chain
practice and information flow.
LANCÔME PARIS GRANDIÔSE Wide-Angle Fan Effect Mascara: The unique curved, patented “swan neck” wand makes it easier to reach all parts of your eyelashes. The flower
shape of the brush coats eyelashes more evenly and completely, and the formula uses “rose-cell extract” to keep eyelashes “soft and supple”. Each element has a unique
“reason why” it’s superior that sounds compelling to prospective users. In particular, the unique wand shape, is a strong visual indicator of overcoming what has
historically been a key product category negative: The difficulty straight wands have in fully reaching the opposite eye’s lashes.
Taylorism: In the late 1800s, the great Frederick Taylor takes the first scientific approach to manufacturing. In the early 1880s, he invents the concepts of using
time studies on the factory floor, and based on that work, the notion of “standard times” for getting specific tasks done. Later develops the concept of incentive
systems and piece-rate pay plans. Taylor’s ideas were simply seminal – and often controversial – and dramatically influenced the practice of manufacturing over the
next few decades and even to this very day.
Tile: Tile fulfills a need every human being has: occasionally loosing important items and panicking to find where it could be. It’s an app with small, little
devices/tiles that consumers stick on important items, like phones, keys, purses, and wallets. A proximity sensor plays a musical sound if the item is within 100 feet,
so you can walk around to see if it’s hiding nearby. Friends can also be called upon to access the app if their help is needed to search other locations you’ve been.
It’s an innovation that solves a universal problem.
Curve Screen 4K Ultra HDTVs: Curved TV screens launched by LG and Samsung in 2014 sold well in 2014 and sales are expected to soar in 2015 as the price comes down
significantly. While there are some issues, like difficulty mounting on walls, more space required because they stick out, and glare when the largest screens are
viewed from certain angles, curved HDTV’s provide a more immersive and exciting viewing experience that more closely approximates actually being within the onscreen
environment.
Distribution Requirements Planning (DRP): In the late 1970s, Andre Martin ran operations for Abbott Labs Canada, and found himself caught between manufacturing and
distribution managers, who could never seem to get inventory questions right and always blamed each other. Realizing that what was needed was a sort of Manufacturing
Resources Planning for inventory distribution, Martin led a successful effort to build the first computerized DRP system, which in turn led to a book that created the
software category of DRP, as several technology firms built products based on these ideas. Was in many way the start of today’s supply chain planning software
industry.
The FedEx Tracking System: After re-inventing the category of express parcel shipments, FedEx went a step further in the mid-1980s with its development of a new
computerized tracking system that provided near real-time information about package delivery. Outfitting drivers with small handheld computers for scanning pick-ups
and deliveries, a shipment’s status was available end to end. The Fedex system really drove the idea that “information was as important as the package itself,” and was
foundation of our current supply chain visibility systems and concepts.
The Toyota Production System: When James Womack and several co-authors wrote “The Machine that Changed the World” in 1990, it was of course not a Toyota car that had
such an impact, but rather the Toyota Production System (TPS) that was the foundation of the company’s dramatic success across the globe. Pioneered by Toyota’s Taiichi
Ohno and a few colleagues, TPS not only is the foundation for today’s Lean manufacturing and supply chain practices, but the concepts have penetrated versus every area
business. TPS truly did change the world.
Cicret Bracelet: Still in the fundraising stage, the Cicret Bracelet, looks like a wearable fitness band. The waterproof bracelet contains a projector that through use
of the app, projects all the visuals from your smartphone (in the size of a smartphone screen) onto your arm, and you can touch and manipulate the image just like a
smartphone. This includes answering calls, surfing the web, searching for weather, setting an alarm, looking for directions, etc. A key advantage over a wearable watch
is that the screen size is so much larger for viewing. This comes in handy for when viewing from a distance, like following a Google Maps route when you’re on a bike.
And unlike a smartphone, the bracelet and image on your wrist are water resistant, so you can use the device in the bathtub to speak on the phone, read, and search the
Web.
The Ford Assembly Line: Henry Ford actually got the idea for the assembly line approach from the flow systems of meat packing operations in the Midwest, but it was
Ford’s adoption of the production approach with a continuously moving line for Model T’s in 1913 that revolutionized not only automobile assembly but took the practice
of manufacturing to new levels in other sectors as well. Total time of assembly for a single car using the production line fell from 12.5 labor hours to 93 labor
minutes, ultimately making cars affordable for the masses, changing not only supply chain but society.
Economic Order Quantity (EOQ): Economic Order Quantity is a mathematical approach for determining the financially optimal amount of product to order from suppliers
based on inventory holding costs and ordering costs. The original concept is generally credited to Ford Whitman Harris, a Westinghouse engineer, from an article in
1913, but it was a much later article in the Harvard Business Review in 1934 by RH Wilson that made EOQ mainstream. The formulas are still taught today, and the basis
for much supply chain decision-making even in this era.
Selfie Sticks: They’re a great example of problem solution innovation. Ranging from $10-$30, Selfie Sticks are an inexpensive and easy way to take pictures of
yourself, alone or with others. They’re funny, and gratifying to use because the pictures create priceless memories. In an incredibly simple way, Selfie Sticks enhance
our lives.
The Ocean Shipping Container: It is hard to imagine today, but until the mid-1950s, there was no standard way to ship products on ocean carriers, and most were shipped
on whatever container or platform the producing company deemed best. The result was terribly inefficient handling on both sides of the equation, poor space utilization
on the cargo ships, and high logistics costs. Enter Malcom McLean, legendary logistics entrepreneur and visionary who invented the standard steel shipping container
first implemented in 1956 at the port of New Jersey. Someone would have thought of it eventually, but McLean’s invention started the explosion in global trade.
P&G’s Continuous Replenishment: Until 1987 or so, order patterns in the consumer goods supply chain were almost totally dependent on whatever the manufacturer sale
person and retail buyer decided between them. That’s until Procter & Gamble bought a mainframe application from IBM for “continuous replenishment” (which had been
deployed a handful of times in other markets), re-wrote it for consumer goods to retail, and as a result dramatically changed that entire value chain by driving orders
based on DC withdrawals and sales data.
Amazon Dash: The tagline is Shopping Made Simple! It’s essentially a bar code reader and voice transmitter in the shape of a wand, that links into the Amazon Fresh
delivery system and smartphone, shopping app. Literally with the wave of the wand, the dash scans bar codes of items in homes consumers want to repurchase, or you can
simply speak into the microphone and tell the device what you’d like to order: up to 500,000 items, from groceries to guitar strings. The purchases can be queued up
and delivered when the customer chooses. In the brilliant video demo, a very young child narrator explains how easy the device is to use.
Ball® FreshTECH Automatic Home Canning System: Home canning dates back to the late 1700’s. A tricky balance of procedures insures foods can be safely preserved and
kept at room temperature without growing bacteria that can be life threatening. Ball has developed a high tech appliance with proprietary SmartPRESERVE™ Technology
that automates the process to safely preserve foods reliably, with less effort, faster, and less energy and water required. It appeals to me, as I’ve always liked the
idea of canning, but have been afraid to since my unsuccessful attempt at making blueberry jam as a teenager. Several weeks after making the jam, upon opening the jar,
I found mold had grown inside!
Apple Pay: iPhones are the ultimate convergent device. Now, with the Apple Pay app, they do away with the need for physical credit cards. Once the Apple Pay has been
downloaded, all one needs to do is point the phone at the retailer’s Near Field Communication reader and press the “Touch ID” part of the iPhone screen. No need to
open the app each time. Apple Pay avoids time locating credit cards and the risk of putting them back in the wrong place. The process is also expected to reduce credit
card fraud. The genius, 5-second demo video is the most effective one I’ve eve
