Sunday, April 16, 2017

Disruptive Innovation: 3 Case Studies

A few days ago, we mentioned the "disruptive innovation: the enterprise to achieve a breakthrough in 15 ways" this book, has been introduced to the six subversive innovation methods, today we give you three kinds.

The first is structural subversion. What is structural subversion? Plainly, in fact, is to break the original division of the function, there are different talent gathered together. The book gives an example: "imitation game" The film in 2015 won the Oscar for the best adaptation of the script, talking about the father of computer science Alan Turing's biography story. During the Second World War, Turing led his team to successfully crack the German "mystery" password system. His team is not only cryptographers, there are physicists, mathematicians, chess champions and crossword championships and so on these people. The book says that it is because of this interdisciplinary collaboration, will produce more new ideas, so as to crack the password.

The book also cited the example of Nissan, a carmaker, who used this method to turn around. In 1999, when Carlos Ghosn was appointed CEO of Nissan, the company was about to go bankrupt. But two years later, Nissan began to profit again, operating margin also reached 10.8%.

What is the key to success in Nissan? There are of course many of the factors, but the most striking is that Carlos Ghosn is keen on diversity, and he has established nine cross-functional teams. In these teams, the team leader in the management platform is not a technician, but a financial officer; a team leader who manages a dealer's business is neither a salesperson nor a legal person. After the completion of the nine teams, Ghosn gave these teams three months to write a proposal, these documents later became the famous "Nissan revival plan" basis, to help the company ended the 26-year loss of the situation.

The second is the subversion of cooperative relations, that is, in the two companies on the basis of cooperation, to bring subversive innovation. The relationship between the two companies may not be great, but the results of cooperation may be surprising. For example, Turkey's Beckham company ranked first in the European household appliances industry, the author of this book has asked its chief executive Levante said that if you and Paris L'Oreal cooperation, will produce what product? Although never thought about this before, Levante or carefully thought. He felt that in tropical countries, beauty products often melt, so many women will put the cosmetics in the refrigerator. So, if the company for the L'Oreal design a small refrigerator in the bedroom, like a beautiful cigar box so big, then there will certainly be a market. Levin said that the company for many years want to get rid of the "kitchen appliances," the shackles, this little idea may let their products into the people's bedroom.

There are some cooperation is also very unexpected, such as the cooperation of Amazon and Twitter, you only need to click on the mouse Twitter, you can add a product to the Amazon shopping cart; and then, such as Apple and the French luxury Hermes joint The introduction of a watch, Apple's smart watch with Hermes design beautiful shape, is a technical and classical process alliance.

The last one is sustainable-driven subversive. The core of this approach is that corporate social responsibility innovation can also guide enterprises to conduct a comprehensive innovation. Now more and more enterprises realize that they do not attach importance to environmental issues, do not care about the public interest, the image of the enterprise has a great impact. The book gives us an example of taking McDonald's.

In 1999, McDonald's French company encountered a major crisis. At that time a well-known French anti-globalization activists, said McDonald's a restaurant harm the local food industry and agriculture. That fall, just caught up with mad cow disease suddenly broke out, many people worry that McDonald's beef burger will be contaminated. In the face of these two thunderbolt, McDonald's did not hide aside, but carried out a lot of activities to show their commitment to civic responsibility. For example, McDonald's used frying oil through recycling, will become organic diesel, and McDonald's logistics cooperation company has been using these diesel; another example, McDonald's and France has nearly a thousand towns and villages signed a contract , The content is to help improve the public areas of garbage collection situation; they also and the French pediatrician association cooperation project to study the problem of child nutrition.

More importantly, these policies form a cumulative effect within the company, almost every McDonald employees have accepted this innovative culture. Employees are interested in improving the customer experience by discovering new and innovative ways. Now, McDonald's French companies are even pushing a project that they are not sure whether they can finish, that is, 100% self-contained energy.

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