managing a business - strategy; innovation; and creativity
Post on 15-Apr-2017
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Managing a Business
Dr. Pavan SoniFounder and Innovation Evangelist
Inflexion Point ConsultingInnovation.evangelist@gmail.com
www.pavansoni.com
Course outline• On strategy • On creativity • On innovation
3
On strategy
4
What is strategy?“Strategy is as much as about what to do, as what not to!”“winning the war, without
fight the war”Achievement of Sustainable
Competitive Advantage
Do they all make the
same profits?
5
Your pricing is subjected to where to are positioned!
How do these brands differentiate?
Competitive
Positioning: Why you can’t be
everything?
Source: Porter (1980)
Sources of value, pricing
and costs
9
Chose where you derive your value from and the cost and pricing
targets
Sources of value, pricing
and costs
10
Chose where you derive your value from and the cost and pricing
targets
11
The playing field
ENTRY BARRIER
EXIT BARRIER
HIGH
LOW
HIGH LOW
Property rights (patents, trademarks, etc.)
Being a moving target
Saturating the market’s carrying capacity
12
Identifying your core competenceUnifying and pervasive
principlesProvides access to
multiple marketsCritical in producing
end productsDifficult to imitate
Source: Barney (1991)
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Can your core competence become your core rigidity?
Kodak Digital Camera (circa 1975)
Business Model shows the ways
14
05/02/2023 Business Model Generation (Osterwalder and Pigneur, 2010)
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PSP/ Xbox versus Wii focusKey Partners Key Activities Value
Proposition High
performance console
Console audience
Customer Relation
Customer Segments
Hardcore gamers
Game developers Key Resources
Channels
Cost Structure Revenue Streams Hardware sales at a loss Royalties from developers
Sony PlayStationMicrosoft Xbox
Key Partners Key Activities Value Proposition Family console Access to
console users Cheap game
development cost
Customer Relation
Customer Segments
Casual gamers Game
developersKey Resources
Channels
Cost Structure Revenue Streams Profitable hardware sales Royalties from developers
Nintendo Wii
05/02/2023 Pavan Soni, Innovation Evangelist 16
05/02/2023 Business Model Generation (Osterwalder and Pigneur, 2010)
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Long tail explained for music industry
Advent of two sided markets
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Positive externalityVs.
Negative externality
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Key takeaways• The choice of industry is the starting point• Competitive positioning (Value maximizer or Cost minimizer)• Different ways of adding and demonstrating value• Entry and exit barriers matter. Importance of erecting entry barriers• Identify and bolster core competence• Core competence could become core rigidity • Business models matter• Several pricing models exist
20
On creativity
Creativity is the ability to challenge, question and explore. It
involves taking risks, playing with ideas, keeping an open mind
and making connections where none are obvious.
- Victoria and Albert Museum of Childhood
Novelty Utility
Divergent Thinking
23
Evolution of synaptic joints
Source: Corel, JL. The postnatal development of the human cerebral cortex. Cambridge, MA: Harvard University Press; 1975.
In the first few years of life, 700 new neural connections are formed every second.
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Development of mental abilities
Source: C.A. Nelson (2000). Credit: Center on the Developing Child
The brain’s capacity for change, or “plasticity” decreases with age
Cognitive, emotional, and social capacities are inextricably intertwined throughout the life course.
Be resourceful
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Take half chances
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Perseverance pays
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Communicate enough
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Pavan Soni (www.PavanSoni.com)
The Medici Effect
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Great Ideas are born at the Intersection of Disciplines
Linear Growth
Discovering Intersections
I am imagining bringing 100s of people together from different backgrounds and disciplines within a region and have them work together to unleash an explosion of transformational
ideas.- Frans Johansson
Source: Medici Effect
Pavan Soni | www.PavanSoni.com | 309/24/2016
Introducing variance
Intuitive experiments
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Latent inhibitions
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IQ and creativity: Latent inhibitions
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Pavan Soni | www.PavanSoni.com | 34
Hone multiple affinities
9/24/2016
Source: IDEO
Pavan Soni (www.PavanSoni.com) 35
Taking hobbies seriously
Pavan Soni (www.PavanSoni.com) 36
Key takeaways• Take half chances• Be resourceful • Challenging the obvious • Perseverance pays • No act is too small• Communicate enough • Having a service mindset • Learn to manage failure • Experimentative mindset • Take hobbies seriously
37
On innovation
Innovation starts with ‘Discovery’
38
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Think of the entire value chain Pre-purchase Purchase Usage Repurchase
Value for money
Risk reduction
Convenience
Share of customer’s wallet
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Look at the non-customers Soon to be non-
customers Refusing non-customers Unexplored non-
customers
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Designing for the ‘extreme users’
Denmark based Arla Foods develops milk products for NASA
Movies with sub-titles were meant for hearing impaired
Volvo buses were designed to get wheelchairs inside
43
Key takeaways
• Innovation is a process • Think of the entire value chain • Look at non-customers
• Soon to be non-customers• Refusing non-customers• Unexplored non-customers
• Design for the ‘extreme users’
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