- Hi, welcome to this Global Strategy and Leadership
Knowledge Clip about Doblin's 10 types of innovation.
Also known as Doblin's 10 areas of business innovation.
This was created by Larry Keeley, who with Jay Doblin,
came up, after a lot of research,
at these different categories
that they could break up in the processes
of how an organisation
has gone about its innovation,
how it could be different from other organisations.
So you can see here,
the categories range from something like profit model,
which to us, normally, is fairly simple.
I have a product, I give it to you.
You give me some money. Exchanges occurred.
The trade has happened, and off we go.
The idea of what the network is, structure, process,
product performance, customer service, channel,
brand, and customer engagement.
Easiest way to always have a look at this
is to apply it to a practical example.
So I'm going to have a look at Flexicar.
Fairly simple business model,
Freedom of a car without the cost and hassles of owning one.
This comes under, I guess this disruption that's occurring
called access over ownership, similar to the Airbnb model,
accessing a property over having to buy a holiday house.
It's got to be easy to use.
They have to get customers in. They have to keep customers.
So things like loyalty programmes, discounts,
special offers are going to be important.
That the point, the very basic proposition of Flexicar
is you want to rent a car,
but you're not coming in for a holiday.
You only want it for four hours.
You don't want to drive the whole way to the airport
to pick up a car from traditional rental company
like Hertz or EuropCar.
You want a different offering.
And you don't, potentially,
actually want to own a car yourself,
if you can continue to get this service easily.
So we can apply it to these categories.
We don't know all of the information,
but we can take some educated guesses.
And we can also, for me say,
well, here's some dotted lines where
it's not strong to me about how much value
this particular category of innovation
will have provided for the overall value of Flexicar.
But if we think about the profit model, it is different.
The profit model is not,
here's your EuropCar that you pay $50 a day for,
and it comes down a little bit if you hire for a week.
This is here's your Flexicar that you only want
for three hours to get the kids somewhere
and do some shopping and pick them up again
and return it to the same spot.
Okay?
Here's something where you want to take this car
four times a week.
Whereas it's only when you go to Europe
that you need to pick up a Hertz car to use
for two weeks while you travel across Europe.
They're very different ways of making model.
This, sorry, ways of making money.
This is about getting the money in smaller amounts
with lots of customers.
The network part of this, in this sense,
is the fact that Flexicar is everywhere.
What I mean by that is,
I don't have to go to a major tourist hub or depot
to pick up a rental car.
These are spread out throughout the suburbs.
All right, so I can look at my phone using technology,
just like Uber and see where a Flexicar is
that I'm able to access quite quickly.
It could be a kilometre only from my house.
The structure of the business,
we don't know,
but I think we can assume here,
it doesn't have to be the same structure
as a traditional rental car company.
We don't have to have as many a customer facing staff.
We don't have to have little offices in the airport
or at the main train station.
So, that's quite different.
The process, again,
this is about smooth steps,
putting your credit card details,
putting your personal details,
so that next time you can hit a button.
I want to Flexicar from 12:00 PM to 2:30 PM.
At this point, pick up, book, walk, get the keys, done.
And off you go.
That is a different and a smoother process
that they must deliver in order to differentiate
from traditional rental companies.
The product performance,
I did the dotted line because it's a rental car.
It needs to get to get me from A to B.
Product system, again, it's about bringing you in,
but it's in this sense,
the product system is more about the fact that it's online,
it's an application that I can use.
I get the car, return the car. There's no hassles.
The same thing, service,
it doesn't have to be a huge amount of service
if everything runs smoothly, but you want the service there.
Of course, it's a rental car.
So, you have the same issues as any company,
like accidents, damage, things, traffic infringements,
things that have to be dealt with.
The channel and the brand,
we think about with Flexicar is starting,
you might know the name now if you live in Australia.
It's become a lot larger.
But at the start, especially,
the brand is not going to be adding
a huge amount of value until it becomes established.
The channel, it's kind of on the line.
But this one's also really important, customer engagement.
Because once you've got people with Flexicar,
you need to keep them, not away from EuropCar,
away from purchasing their own car.
That's where you've got to keep them.
So it's a different,
you see it's a different relationship
you're trying to have with your customer.
They're trying to convince you and I,
you don't need to own a car.
That's very different to Oh well,
If you get out our Hertz car,
you can have the latest BMW from the airport
and a special discount.
That's a different sort of offering.
All right so there's an example of one company.
If that doesn't work so well, apply products that you love.
Think of something that you've found quite successful,
that you also really like
and think about how they might've used
these 10 types of innovation.
Also, just to summarise, it's interesting.
And one of the reasons that Doblin came out with this,
theory I guess, his framework,
is that research showed that where we expect value
to come from, this is 10 years of value from products
is in the product performance.
It is in that product doing something faster or better
or lasting a bit longer than the version before.
The reality is lots of the value
doesn't come from that where we expect it.
It comes from things like the business model,
the value from Airbnb comes from
the access over ownership business model.
The value from Airbnb comes from the networking.
It's my house that I'm going to put on the market
to rent to a stranger.
The process comes from the ability for me to,
with an Airbnb app, look through it,
see where all of these properties are,
be able to filter quickly,
be able to hit with one button because it has all my details
to make that pre booking,
to be able to pay it full for now
or half and then half later.
All of that process is very different
to ringing around hotels.
The core processes are critical for Airbnb,
and they're now quite complex,
but they're quite different
to traditional way of getting accommodation.
So you can see here, this is where the value is added.
More so than here.
Yes, brand can still be important.
Customer experience is still very important.
But what was interesting, to me especially,
is that where we have always thought
product improvement in product innovation
has been the driver of overall value for the organisation,
it's not necessarily just in the product itself.
It's in the things that encompass it,
wrap around the product and make the whole thing,
the experience for the customer.
All right.
So hopefully that's given you quick oversight
into Doblin's 10 types of innovation.
It's in the study guide,
and you can go on to an example on Zara.
Bye for now.