Dare to be unproductive # 3: Renovation or the art of recycling innovation

by bold-lichterman

Frenchweb publishes the correct sheets of the book “Dare to be unproductive», By Davy Rey. He demonstrates that innovation as a whole will allow the emergence of the unproductive enterprise. In this excerpt, renovation becomes an innovation tool for companies.

“An example of a renovation is the iPhone 5c: released barely a year after the iPhone 5 without noticeable performance improvements and at a very close price, the iPhone 5c suddenly offered a simply wider choice of bright colors and a shell. in rounded plastic: with a more “fun” and less technical design than the previous opus, the iPhone 5c has above all made it possible to make users wait before the arrival of version 6 of the smartphone.

A renovation therefore requires reopening the specifications of an existing product and developing a limited set of specifications, in order to incorporate the changes to be made to the model. The challenge of this innovation project comes down to limiting the consumption of resources: it must not slow down other, more ambitious projects, for which capacities must be reserved. The company will, for example, entrust the responsibility of a renovation to a young project manager. (…)

The extension of the range, that is to say the addition of a family of new products or services to the company’s catalog, makes it possible to reshuffle the cards within a dynamic segment. The extension makes it possible to adapt to the evolution of the demand, in particular when this one does not revert suddenly but is satisfied to slip. (…) The Renault Zoe, even if it is frankly reminiscent of its big sister, the Clio, is not an electric version, but a model called to evolve separately. It is therefore indeed an extension: a model released to appeal to a fringe of consumers wishing to drive an electric vehicle, some of whom may not have a petrol model by ecological or economical choice. (…)

The company can redesign its offer in order to find consumers in related unexplored but promising segments: it is a pivot, which protects a company in a less comfortable position in a very unstable market. By developing functionalities – functional value – or positioning – emotional value – capable of appealing to a niche market, the company is telling a new story around an offer adjusted to the margin, therefore by capitalizing on its assets and its “ acquired ”, without major investment. (…) With a century and a half of technological innovation and cutting-edge lubrication performance, Motul understood that it was in a position to develop in this niche market, whose very high demands discourage competition. All it had to do was pivot, that is to say, adapt the functional content of its offer to conquer an adjacent market.

While entering a related market requires a development effort, the company’s installed capacities make it possible to limit investment to redesigning the offer. (…)

McDonald’s, in its reconquest of a French public that has become skeptical about the conformity of its products with healthy eating standards, continues to reinvent itself through specific and localized menus. It must also be said that the burger culture, revisited by restaurateurs in a more qualitative form, is widely spread on the plates of the French. Competition is fierce and introduces new, higher standards. Like a snub, McDonald’s counter-attack on breweries and tea rooms, with the concept of McCafe.

Inspired by the arrival of Starbucks in Paris and Lyon, McCafé plays the coffeehouse American style, which seems to find its audience in major European cities, while nevertheless adapting to its target. Viennese pastries, as well as traditional American pastries, are offered to accompany a multitude of hot and cold drinks, all arranged in a “corner” a little away from the restaurant. What to denote with the smell of fries served a few meters away. However, McDonald’s does not seem to really innovate compared to what Starbucks already offers.

The break with existing models – brasserie, tearooms or coffeehouse – lies in the fact that the McCafé concept is inseparable from the burger restaurant. The offer complements a range of products already in place and the objective is not only to attract the traditional clientele of cafes and Starbucks, but also to tempt seated consumers with an alternative to “fast” desserts. foods ”and the traditional café that ends all good meals with us – at the risk of cannibalizing a small portion of restaurant sales. McDonald’s thus relies on a well-established network of franchised restaurants to penetrate in an unprecedented way a market at first sight not entirely related to that of fast-food.

I call this type of movement a breakthrough, which allows the conquest of new markets, a priori far from the core business of the company, by deploying an offer that breaks with what exists and while relying on assets already financed, that is to say without further developing the structure. (…)

Spontaneous generation is the most radical innovation there is and all these successes highlight its three properties:

  • it creates markets and overthrows others in the process: for example, Facebook literally killed MSN, Waze eliminated the paid and stand-alone GPS device

  • it generates very rapid changes in consumption patterns

  • it is mainly the work of start-ups: companies that are poorly formatted and small enough to quickly change course when necessary.

Spontaneous generation therefore threatens all well-established players in the markets that these young innovators target. Detecting the arrival of these dangerous new entrants is key for a business. (…)

Already today, with Web 2.0, companies are finding success in activities that did not exist a few years ago. Airbnb, Waze, Kickstarter, as well as all online banks and insurers, have significantly changed the markets they attacked or caused new ones to emerge.

Airbnb now gives vacationers an alternative to traditional hotels, by bringing together offers from individuals on the same platform. Previously, you had to go through the classifieds to find a rental and be lucky not to pay too much for your vacation. From now on, villas, apartments for rent or guest rooms are accessible to everyone, everywhere in the world. For individuals posting their ad, it is a significant additional income. Going even further, Couchsurfing brings together an international community of globetrotters, often young students to whom international exchange programs have made them want to travel. The principle is simple: as a member of this community, you offer to host for free other members passing through your area. ”

Read also:

Dare to be unproductive # 1: When data has made the company unproductive

Dare to be unproductive # 2: the cloud and 3D printing are disrupting the codes of productivity

Dare to be unproductiveThe book “Daring unproductivity” by Davy Rey (Lulu.com). This is a questioning of the productivist mechanisms of our companies and a new model refocused on innovation, to improve their performance.

Davy rey is a manager at STEP Consulting, a performance improvement consulting firm. He has been supporting large groups, as well as SMEs and mid-cap companies, for nearly 10 years. But it also maintains a strong link with the world of start-ups and deciphers the major economic and technological changes of our time. For two years, he has tried to summarize it on the professional blog he runs: Perspectives.

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