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Loyalty programmes have long been wedded into customer-facing brands’ marketing strategies. The idea here is to make people stay loyal to a brand, and incentivizing them to do so. But stats show otherwise. A report submitted by the McKinsey Global Institute claims that over half of those companies who have loyalty programmes fare equally well or in fact worse than those that don’t. As a result, some innovators who have succeeded in making loyalty pay have come together to share their views on what works best. Firstly, loyalty must be integrated with the overall experience as Starbucks has done so successfully. Business intelligence must be used from the granular bits of data gathered to aid in decision-making. Strategic partnerships must be built along the way which benefits all stakeholders, such as that between Sainsbury and Nectar. These collaborations must seek to solve the customer’s as well as the industry’s pain areas. The difference between the real cost to the customer and the perceived value must keep rising. The reinvestments made from these loyalty programmes need to be allocated to the customer bringing maximum profits.

Source:https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/making-loyalty-pay-six-lessons-from-the-innovators

Uploaded Date:12 November 2018

Jeff Bezos believes in a startup culture to pervade Amazon at all times. This is good for fostering a culture of business innovation and avoiding the stasis common at other large firms. One of the unique features new recruits encounter at Amazon, in comparison to other places is that PowerPoint presentations are banned. Instead, those speaking need to do a six-page narrative discussion. Bullet-pointed word docs are equally considered unsuitable. This narrative style allows for more immersive discussion. Bezos has never been a stickler for the corporate strategy drafted. Instead, decisions can easily be reversed if counter proof, better for business or value addition are presented. One need not wait for all the data or information to arrive. Decisions must not stall for this want. There is room for disagreement. But once a commitment has been made, that needs to be executed. Waiting for consensus is not part of the Bezos style of management as that would delay the work.

Source:https://www.forbes.com/sites/eriklarson/2018/09/24/how-jeff-bezos-uses-faster-better-decisions-to-keep-amazon-innovating/#66f7178c7a65

Uploaded Date:10 November 2018

The big 5 US tech companies- Microsoft, Facebook, Amazon, Apple and Alphabet (Google)- are now so powerful they literally dwarf their entire competition. There have been calls from antitrust groups to regulate the growth and power of these five. Each time there is some sort of competition emerging in the market, they end up acquiring them. Their dominance extends across internet search, web browsers, cloud hosting, desktop operating systems, mobile operating systems and online ad revenues. Business intelligence provided by Synergy Research puts Google domination of internet search for example at above 50% of the total and Microsoft’s for desktop OS at a similar percentage. This, plus the enormous data these five hoard, makes them a dangerous proposition. Across the Atlantic, in Europe they have already faced antitrust regulations. There are however, justifiable fears that too much of regulation could stifle business innovation. That is why in the US, such regulation has been lesser. Their power as platforms are also allowing several other businesses to flourish within a network, so they are being valued by startups.

Source:http://mitsloan.mit.edu/newsroom/articles/will-regulating-big-tech-stifle-innovation/?utm_source=mitsloantwitter&utm_medium=social&utm_campaign=bigtech

Uploaded Date:09 November 2018

Chief Innovation Officers are now everywhere, as all companies are embracing business innovation as a means of survival and not just growth. Instead of trying to manage innovation, these people must lead the innovators. This is because everyone has a different idea of innovation. It involves optimizing the resource use. Instead of innovation managers, one needs leader-preneurs who have a vision and understand the corporate strategy. The status quo needs to be honed or changed. Such leaders deliberately manage serendipity and chaos, while managers merely standardize. Instead of trying to control, leader-preneurs inspire. To get the results, trust needs to be built in. Innovation champions are identified from within the team, high goals set for them and execute at speed. They are information buffs. Teamwork and collaboration are key maxims to this. The team they build must embrace inclusion and diversity.

Source:https://www.innovationexcellence.com/blog/2018/10/12/lead-innovators-dont-manage-innovation/

Uploaded Date:09 November 2018

Tien Tzuo who is an MBA from Stanford, has written about the transition to the subscription model of business in his book Subscribed: Why the Subscription Model will be your Company’s Future- and What to do about It. After a decade working for Salesforce, in 2008 Tzuo founder a software company called Zuora, to help companies make the transition to this subscription model. According to him, it was Adobe that provided the initial blueprint for this model. Subscription based businesses seek to swallow the previously supreme fish model. The subscription model is throwing up huge quantities of data warehousing as all this is then processed to deduce valuable business insights. This is allowing for direct customer relationships, and a more personalized touch. Uber, Netflix, Surf Air, Caterpillar and Blue Apron are prominent examples of such businesses. The role of business schools is also diminishing in this current environment.

Source:https://www.gsb.stanford.edu/insights/why-every-business-will-soon-be-subscription-business

Uploaded Date:08 November 2018

People are often uncomfortable to change, but when they do hit off, the results are multi-fold. Successful business disruption is the ultimate goal for innovators and entrepreneurs. The likes of Netflix, Uber, Tesla and Airbnb have managed to do something to this tune. Kodak went the other way, from market leader to bankruptcy. In order to cause such large-scale disruption, the first rule is to offer something radically new as Amazon has been doing. Creativity and business innovation must always be prioritized above merely “best practices”. The technology available and the gargantuan data warehousing capabilities now at hand, must be used to gauging valuable business insights. These insights so fetched must be made to work by empowering decision-making.

Source:https://www.forbes.com/sites/robertglazer/2018/10/31/3-ways-to-disrupt-business-as-usual-in-your-industry/#2f7ac08b4657

Uploaded Date:06 November 2018

A study was conducted by a marketing professor from INSEAD to understand the impact of Research and Development (R&D) initiatives across industries. For the study, only large companies with a turnover in excel of a billion dollars were chose. Instead of healthcare or high-tech industries that have the largest R&D budgets, the study sought to analyze for the CPG companies with more modest budgets. These firms’ budgets are more concentrated towards marketing. The results of the business research showed that companies with a smaller R&D budget had a higher impact on sales than those with the largest ones including P&G which has overall the largest. The former group includes the likes of Henkel, Reckitt Benckiser, L’Oreal and Beiersdorf. The giants such as P&G fared worse off because their entire focus was on disruptive, large-scale business innovations. This took much longer a timeline to fruition and the results were often patchy. The smaller ones did not have the budget to explore the big changes, but instead worked on incremental innovations. The biggest of the firms often have their origins in chemical or pharmaceutical industries, thus placing the research team on a pedestal, which the latter had no compunction to.

Source:https://hbr.org/2018/09/reevaluating-incremental-innovation

Uploaded Date:27 September 2018

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