Question

Case Study: 10 Keys to Small Business Innovation

Creativity expert Teresa Amabile identifies three components of creativity: (1) Expertise. One must have the technical, procedural, and conceptual knowledge to generate potential solutions to a problem. (2) Creative thinking skills. A person must possess the willingness to take risks and to see problems or situations from different perspectives (3) Motivation. One must have an internal desire to develop creative solutions. This motivation often comes from the challenge that the work itself presents. Entrepreneurs and their employees can transform their companies into engines of innovation by combining these three components of creativity with what management consultant The Doblin Group calls the 10 types of innovation.

i. Business model. How does your company make money? These are innovations in the value proposition that a company provides its target customers and in the way it delivers value to its customers.

ii. Networks and alliances. Can you join forces with another company or entity for mutual benefit? A company may forge a synergistic relationship with another organization in which each company’s strengths complement the other.

iii. Organizational structure. How do you support and encourage your employees’ creative efforts? The most effective organizations use an appropriate structure and culture to align their talent to spark innovation.

iv. Core process. How does your company create and add value for customers? These innovations in a company’s internal processes result in superior business systems and work methods that result in benefits for customers.

v. Product or service performance. What are the most important features and functions of your company’s products or services? Innovations in functions and features can give a company’s product or service a significant edge over those of competitors.

vi. Product system. Can you link multiple products into a system or a platform? Bundling products can add value to customers.

vii. Service. How do you provide value-added service beyond your company’s products for customers? Some of the most successful businesses set themselves apart from their competition by providing unparalleled customer service.

viii. Channel. How do you get your products or services into customers’ hands? Some companies provide extra value to their customers by making their products and services available in many venues.

ix. Brand. What is your company’s “identity” in the marketplace? Successful companies use creative advertising, promotion, and marketing techniques to build a desirable brand identity with customers.

x. Customer experience. Does your company engage customers and give them reasons to come back to make future purchases? Innovative companies find ways to connect with their customers, creating a loyal base of “fansumers,” customers who not only purchase but act like fans who promote the company to their friends and family members.

Boatbound

Serial entrepreneur Aaron Hall took note of the “sharing economy” that emerged during the last recession and launched Boatbound, a peer-to-peer boat rental company that brings together boat owners who are willing to rent their boats when they are not in use and people who want a fun boating experience without the cost of owning a boat. Hall realized that 12.2 million boats are registered in the United States, yet the average owner uses his or her boat just 26 days per year. Boatbound screens all potential renters, verifies the condition and the safety of each boat, carries ample insurance on each boat, and covers general liability. Boat owners select their renters from Boatbound’s pool of applicants and set daily rental fees, and Boatbound collects 35 percent of the fee. Boatbound has rented every kind of boat, from kayaks to yachts with captains. Fees range from $200 to $8,500 per day. “As a boat owner and someone in the marine industry, I’ve been waiting for something like this my whole life,” says Aabad Melwani, owner of a marina. “I just didn’t know it.”

Henrybuilt

Scott Hudson, CEO of Henrybuilt, had created a profitable niche designing and building upscale kitchens that ranged from $30,000 to $100,000. In 2006, Hudson opened a New York City showroom, which doubled in size in just 18 months. By 2008, the company had more than 200 jobs in the United States, Mexico, and Canada. When the recession hit, however, new projects came to a standstill, and customers began cancelling orders. In response, Hudson launched a subsidiary, Viola Park Corporation, that provides customers lower-cost remodeling options that use its software rather than an architect to create “custom” variations on Henrybuilt designs. The result is a process that produces a kitchen much faster and at half the cost of a Henrybuilt kitchen. Henrybuilt sales have recovered, but Viola Park accounts for 20 percent of sales and is growing twice as fast as Henrybuilt. Unequal Technologies Robert Vito started Unequal Technologies in 2008 to supply protective clothing and gear, including bullet-proof vests, to military contractors. The protective gear is made from a lightweight yet strong composite material that he developed and patented. Two years later, the equipment manager of the Philadelphia Eagles called to ask whether Unequal Technologies could create a special garment for one of its star players who had suffered a sternum injury. Vito modified the bullet-proof vest for the player and soon had other players in the National Football League asking for protective gear. Unequal technologies went on to develop Concussion Reduction Technology (CRT), peel-and-stick pads for football helmets that are made from before it reaches the skull. Independent tests show that CRT reduces the risk of head injuries from impact by 53 percent. The company now supplies equipment to 27 of the NFL’s 32 teams and has its sights set on an even larger market: amateur sports. Vito says Unequal’s technology gives the company a competitive edge that has allowed it to increase sales from $1 million to $20 million in just one year.

(Source: Scarborough and Cornwall, 2016)

Required:

1. Drawing on the ten types of innovation and how Boatbound and Henrybuilt as small businesses applied the various types of innovation, develop an idea for a small business that will operate based on at least five (5) of the ten types of innovation illustrated in the case.

Answer 1

Q.1 Drawing on the ten types of innovation and how Boatbound and Henrybuilt as small businesses applied the various types of innovation, develop an idea for a small business that will operate based on at least five (5) of the ten types of innovation illustrated in the case.

Ans.- After carefully studying and analysing the innovative business models of Boatbound and Henrybuilt, I have decided to develop a business model of an EdTech Company. This business model will be based on the most of the innovation illustrated in the case. My business model along with the innovation which it satisfies can be presented as follows-

i. Business model- Considering the on-going pandemic, pursuing educational courses and preparing for various exams has come to a halt as the risk of the spread of infection is very high whenever two or more persons come into contact. So in a traditional teaching method without coming to university and classes, education will not be completed. But considering the current challenging time, My EdTech Company (lets name it Online University) will offer an online platform to complete some specific courses and prepare for exams.

ii. Networks and alliances.- The leading faculties from the top-notch universities will be contacted to prepare the course online. Then this course will be offered to the students/learners for a fee.

iii. Organizational structure.- The faculties will be encouraged to induce innovation in their pedagogy so that learners can comprehend the topic/subjects in a very good manner.

iv. Core process- The course will be taught in a very well manner, regular quizzes, and tests will be conducted. Live projects will also be given so that they can apply their knowledge. And the most important thing is that this will be at a very affordable price.

v. Product or service performance.- My company’s courses will have some unique features like taught by the leading faculties, regular tests, live projects, agreement with the appropriate companies to offer internship/job opportunities to the learners.

vi. Channel.- It will be promoted through digital marketing. Anyone can get enrolled by just paying a nominal fee online.

vii. Brand.- The agreement will be done with the various companies to ofeer internship/job oppertunities to the learners. This will not only differentiate my company but will also help in building a distinguished brand.

viii. Customer experience- Yes, we will offer a discount if a learner enrols himself in another curse after the completion of a course. They will also be encouraged to give their feedback so that the courses could be further improved.

So this is the business model which incorporates 8 innovations mentioned in the case study.

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