Marketing Innovation drives Market Leadership

Marketing executives have limited dollars and resources to invest on marketing programs and create market share growth. How do they pick the optimal go-to-market strategy to achieve market leadership? What markets do they invest into and how much? How do they create Marketing Innovation so that they are maximizing the marketing investments and generating higher revenue today and in the future?

The markets can be divided into five broad categories including Growth market, Emerging market, Existing market, Replacement market and Untapped market to create the appropriate context.

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

1. Growth market:

a. Growth market is the market where the organization is seeing the most business traction today. The marketing executive needs to first answer the following questions to establish the baseline: What is our current market share in the Growth market? Who are our prime customers? Why are the customers using our products? For how long? Do we provide an effective solution? Are we winning? Why are we winning? Who are we winning against?
b. The marketing executive also needs to determine the Growth market trends. Whether the Growth market is going to grow further. And determine whether the organization is growing at the pace of the Growth market or faster than the pace of the Growth market.
c. At this point an internal analysis of marketing programs that have worked well to get us to this position in the Growth market is needed. The marketing executive needs to determine what has worked and what has not. And why?
d. Now, the key question needs to be addressed on how marketing department can accelerate the business in this Growth market? Whether the department can create an assembly line of marketing programs to accelerate the growth in this market, and rapidly scale. What does the department need to create the assembly line?
e. Finally the department needs to determine the marketing tools, sales collateral and techniques needed to create the demand in the Growth market.
f. Knowing that Growth markets provide maximum revenue dollars today, minimum of 50% to 60% of the marketing investment should be focused on the Growth market. The marketing game is all about execution in the Growth markets.

2. Emerging market:

a. Any market where the organization is seeing an early traction is an Emerging market. The questions that the marketing deparment need to address are: Why are we seeing the early traction? For how long? Do we have an effective solution? Are we winning? Are there competitors prevalent in this market?
b. Now, the marketing department needs to determine whether the Emerging market is a new industry, a new geography, a new vertical, a new user, or a new application of our product.
c. At this point, market sizing and trending is needed. Is there a larger market here beyond the Emerging market? How big is the size of the potential Emerging market? What is the potential growth of this Emerging market? How can we win in this Emerging market? Again, marketing needs to have answers to these questions.
d. The marketing department should invest into one or two emerging markets. Marketing programs for an emerging market will be more creative, innovative and ad-hoc.
e. In an Emerging Market, it is always best to create a Hypothesis. Experiment. Test the hypothesis. Change as often as needed.
f. Knowing that there is a huge upside from investing in an emerging market, minimum of 10% to 20% of marketing investment should be focused here. There is mid-term to long-term revenue potential in the Emerging markets.

3. Existing market:

a. Existing market is the market consisting of the existing, long-standing customers. First, the marketing department needs to know who the existing customers are, why they purchased company's product, how long they have been using company's product, whether they are happy customers and loyal customers, and the company's current relationship with these customers. Another key question to address is how many customers the company loses every quarter and why.
b. It is very important to understand how the existing customers are using company's products. Whether the customers are using the products to the fullest potential. This would lead to key question: Can we market more of the same products to the existing customers? This is tied to extracting the maximum life-time value from the existing customers. Marketing needs to know the maximum life-time value of the existing customers.
c. Another key question that needs to be answered is: Can the company market different products to our existing customers? How do we do this?
d. Ultimately, the marketing department needs to determine the total revenue potential from existing customers. And assess on where the business is today, and the growth potential.
e. When it comes to execution, marketing department should analyze the marketing programs for the existing customers, on what has worked well in the past, and what has not worked well.
f. Another program to consider is whether the existing customers can refer the company to more customers. And what processes need to be in place to achieve this. An estimate of the total potential market of referral customers from the existing customers is essential. Again, establishing the baseline on where the company is with referral business, and analyzing the growth potential is needed.
g. Existing customers not only bring the company maintenance and ongoing service revenue, but provide a tangible upside at a lowered investment.
h. Minimum of 15% to 20% of marketing investment should be focused here. There is short-term revenue potential in the Existing markets (unless it is completely tapped).

4. Replacement market:

There are two replacement markets. Markets that the company takes away from Competitors and Adjacent markets.

a. Competitors:

1. Marketing department needs to have a deep understanding of the direct and indirect competitors and their business. Market share analysis needs to be conducted on Competitors' current market share, and importantly whether their market share is growing, shrinking or remaining flat.
2. Competitive marketing strategy needs to be established.
3. Simply put, competitors' customers need to be identified. A key question to ask is: Are the competitors' customers satisfied? How is our own customer satisfaction?
4. Analysis needs to be conducted on why the organization loses against the competitors, why it wins against them in new business. A list of the competitors' weaknesses needs to be surfaced as part of the SWOT analysis.
5. Further research on how many customers the company has won over from the competition needs to be undertaken (takeaways) and by the same token, existing customers lost to competition (giveaways).
6. Finally, marketing department needs to creatively finds ways to access the competitor's customer base (names, titles, industries, etc.).
7. At this point, marketing department is ready to create marketing programs to win away competitor's customers. At a minimum, the program includes campaign, offer, marketing and sales tools, fulfillment, product and data conversion and integration.
8. Minimum 10% to 20% marketing investment should be aimed at competition. There is mid-term revenue potential in Competitors' markets (programs take time to execute; customers take time to convert).

b. Adjacent market:

1. Adjacent markets are markets that are either sub-sets or super-sets of the solution that the company provides. The company must know on whether it provides a complete solution to the customer's problems or only a subset. For instance, the solution could be deeply embedded within a business process wherein the customer uses other technologies and products. If the company provides a complete solution, what is the strategy against those who provide only a subset? If the company provides a subset, what is the strategy to provide a complete solution? These questions need to be addressed.
2. The marketing department needs to determine the players in the Adjacent market that provide a complete solution or a subset, and whether they are potential competitors or partners.
3. Further, the marketing department needs to answer the following questions: Who are the customers? Are their needs maturing? Are they looking to upgrade and replace the other players? What is the market growth potential?
4. Finally the all-important analysis on resources, costs, profits and risks associated with entering an Adjacent market needs to be conducted. Questions such as entering the Adjacent market head-on, complementing existing players, or focus on a specific niche need to be addressed.
5. The key to execution in Adjacent Market is Experiment. Test a hypothesis. Change the strategy as often as needed.
6. Minimum 5% to 10% marketing investment should be aimed at Adjacent markets. There is mid-term to long-term revenue potential in the Adjacent markets (creating a strategy, executing and attracting customers will take time).
9. Executing marketing programs for adjacent markets require opportunistic measures and entrepreneurship.

5. Untapped market:

a. Untapped market is where the company has zero business and no traction. Marketing department needs to determine the Untapped markets, and reasons on why the company has not created any business in these markets.
b. Marketing has to answer the following questions: Can we tap into this market? What is the investment required? What is the available market?
c. Competitive analysis needs to be conducted on whether the competitors have already tapped into this market, and why.
d. As part of execution, marketing needs to think about creating beachheads, and whether the company can leverage their mindshare to build and create this market.
e. Since Untapped market is brand new, a key question on market entry needs to be analyzed: entering with partners or going direct.
f. Marketing department needs to think about creating opportunistic mechanisms to explore the untapped market, and should be willing to change them often.
g. Minimum 1% to 5% marketing investment should be aimed at untapped markets. There is long-term revenue potential in this market.
h. Untapped market is where companies evolve, become great companies and bring in new revenue and market share. Investing into untapped markets is high risk, high reward strategy.

Marketing Innovation requires strategy, disciplined execution, and entrepreneurship (especially outside Growth markets). Marketing Innovation can create significant market leadership for organizations that put all the marketing wheels in motion.

Download my Creativity and Innovation eBook. 212-page collection of over 55 best practices, case studies, and insights on the current state of Creativity and Innovation in Business at Top Innovators including Apple, Google, Netflix, 3M, Frito Lay, Johnson & Johnson, Proctor & Gamble, Toyota, GE, BMW, Deloitte, Southwest, Nike, IBM, Dell and more. "Your report from the eBook and definitive guide was the primary reference that we used." Used by over 500 leading organizations including HP, Pepsi, EDS, J&J, Nokia...Learn more Download Now

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

Originally published in 2006. Republished in 2009.

Intuit - Creating Innovations in Software Industry

Creating Innovations in Software Industry

Intuit (NASDAQ: INTU), the world's largest maker of financial management and tax software, is now branding itself as the Small Business software company with the goal of helping businesses to "start, run & grow" fast. Intuit is best known for the household software brands Quicken, QuickBooks and TurboTax created for small businesses, consumers and accountants. The company's mission was to "create new ways to manage personal finances for small businesses that are so profound and simple, customers cannot imagine going back to the old way," driven by "Right for My Business" strategy.

Today's Intuit is different with it's vision of "Going Beyond Innovation"

"Innovation is nothing new at Intuit. It's been our heartbeat for nearly a quarter century.

As the world evolves, so has Intuit, driven by the passion for inventing solutions to solve important problems, perfecting those solutions and delighting its customers. Intuit started small in 1983 with Quicken personal finance software, simplifying a common household dilemma: balancing the family checkbook. Little more than two decades later, Intuit's revenue tops $3 billion, being publicly traded on the Nasdaq Stock Market, and recognized as America's most-admired software company and one of the country's best places to work."

Source: Intuit.com Corporate Profile

Today, Intuit is creating a greater array of "Right for Me" customer-driven products and services to help manage a broader array of small businesses.

Despite the Great Recession, Intuit has been handily beating the earnings estimates for the past 4 quarters with an average Surprise percentage of an amazing 21.1%:

Earnings History	Jan-09	Apr-09	Jul-09	Oct-09
EPS Est	0.27	1.61	-0.12	-0.16
EPS Actual	0.34	1.68	-0.10	-0.10
Difference	0.07	0.07	0.02	0.06
Surprise %	25.9%	4.3%	16.7%	37.5%

Source: Yahoo Finance

Not just earnings, if you take a look at Intuit's revenue growth, it is good, averaging over 7% percentage year over year since 2007. As a matter of fact, the quarterly revenue growth is now accelerating further:

PERIOD ENDING		31-Jul-09	31-Jul-08	31-Jul-07
Total Revenue		3,182,537	3,070,974	2,672,947
Cost of Revenue		676,848	624,258	509,446
Gross Profit		2,505,689	2,446,716	2,163,501

Source: Yahoo Finance

The analysts are quite bullish on Intuit's stock performance for the next 12 months, with a current closing price of 30.03:
PRICE TARGET SUMMARY

Mean Target: 34.21 Median Target: 34.00 High Target: 40.00 Low Target: 29.00 No. of Brokers: 14

Data provided by Thomson/First Call

Intuit is focused on "Delighting the Customers" using the following principles:
Grow our customer bases
• Subscription: # customers
• Non-Sub: # current per. buyers

Offerings are recognized leaders at delighting our customers…

• Net Promoter scores >10 pts better than nearest alternatives
• Reduce controllable attrition

Develop innovative offerings to solve important customer problems
•# customers using new offerings launched in last 3 years

Source: Intuit Investor Day Presentation

Intuit is poised to deliver sizable new innovations in the near term:

New product pipeline 5x 10 year average

• Producing results:
• Mobile:7 launched; 17 in R&D pipeline
• Payments:12% of units sold on apps

How does Intuit innovate & delight the customer?

Intuit applies two core capabilities today:

1. Apply a customer centric mindset and CDI methodology using direct observation and savoring the surprises to:
Create clarity around target user(s)
Develop deep understanding of their dreams, work flows & key pain points

2. Apply design-for-delight principles to evoke positive customer emotion by:
Developing offerings that address large unmet or underserved needs…
…that are dramatically easier to use or a better value than alternatives
… helping end users save or make money (better money outcomes)

"Inside Intuit" authors Suzanne Taylor and Kathy Schroeder elaborate on how Intuit created Innovations in the Software Industry, warded off Microsoft, and achieved sustaining market leadership.

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

Here are the top five Innovations that Intuit created to achieve small business software market leadership:

1. Customer Evangelist Culture

Intuit ensured that the new hires understood the company's Holy Grail: A Happy Customer. Customer focus, wherein Intuit makes a difference in the customers' lives, is the everyday Mantra practiced by everyone at Intuit. Practices such as interviewing and hiring the right employees who believe in customer first, postage-paid "Customer suggestions" included with every copy of software (and follow through on the suggestions), answering service and technical support calls for at least four hours each month, "Follow Me Home" research wherein marketing and engineering staff literally follow a customer home and watch them install and use the software, database to track continuous customer feedback, customer advisory panel consisting of loyal customers providing feedback on new products, features and quality, and focus groups to conduct market research on how customers buy and use software (to manage money and finances).

These are just few of the Innovative mechanisms that Intuit installed to create an Industry first Customer Evangelist Culture that resulted in tremendous customer loyalty and market share growth.

2. Customer-Intuitive Design

By talking directly to prospective and ultimately current customers, Intuit founders and product managers built a deep understanding of exactly what the customer needs and pain points were. This led to defining software products to solve these fundamental customer needs. Whereas most software makers before Intuit were focused on creating "complex" software with an elaborate set of features that customers hardly ever used (and were confused), Intuit created new innovations in software design by creating software that a customer really cared for, and can benefit from on an everyday basis. Intuit engineers and product managers will go at lengths to understand the customer's mindset - from buying, to installing to using software, and becoming a loyal customer.

3. Customer-driven Marketing and Product Management

Most of the Software Industry before Intuit saw Marketing's role as marketing communications and brand marketing. However, Intuit realized early on that the marketing department must contribute as the company develops new products. And the role of Product managers was born wherein the Product Managers act as product business managers, oversaw income statements and all aspects of building the business. According to Scott Cook, the co-founder of Intuit, product managers must act as "champions of their products, embodying the voice of the customer not just for product development and marketing communications, but also for technical support, and overseeing the critical feedback loop between technical support and product development." Marketing also assisted the "Product Launch", wherein besides managing advertising, public relations and upgrade mailings, Marketing also created internal launch readiness, trained technical support and customer service, and created financial forecasts for the sales volumes for operations and planning.

4. Direct Marketing and Retailing

Although other software makers had tried direct marketing before, Intuit placed a big bet in their early days and want all out on their Direct Marketing campaign: "End Financial Hassles. $49.95" The Direct Marketing campaign targeted ads in three major magazines, slashed the price of Quicken in half, provided no copy protection, and was tied to wholesale distribution - all firsts for a software company. This resulted in huge sales and sustained the growth of Intuit. Intuit introduced "National Sales Tour" wherein employees visit the retailers and retailers' customers. This mitigated channel conflicts, brought employees closer to retailers and the customers, and created greater awareness of customer's buying habits - or as Cook put it, an all important "sense of the merchant." Intuit would expand Direct Marketing into Radio and then Television, and managed its two-pronged sales strategy of retail distribution and direct to expand the market share and leadership.

5. The Process driving Innovation

Intuit that went through several ups and downs from late nineties through early 2000, eventually began focusing on the "process and culture together to drive results" under the leadership of then CEO Steve Bennett (who came from GE). According to Bennett, "Bringing some of the big company process to small company customer innovation is our biggest challenge. Innovation isn't just about ideas, because ideas without operational rigor just fall apart." Bennett established rigor throughout the company, focusing the company on the "critical few" drivers and issues. Bennett also established Six Sigma mechanisms to achieve "Process Excellence" in various company processes. For example, the customer service team reduced customer wait times by 40%, and another product team reported 70% reduction in bugs due to Six Sigma processes.

Bottomline:

Today Intuit does over $3 Billion in annual software sales, is profitable, has a market cap of over $9 billion, and is poised to achieve annual double-digit sales growth. Importantly, Intuit is capturing the small business market share through established brands including QuickBooks, TurboTax, Quicken, Lacerte ProSeries, and Digital Insight.

Download my Creativity and Innovation eBook. 212-page collection of over 55 best practices, case studies, and insights on the current state of Creativity and Innovation in Business at Top Innovators including Apple, Google, Netflix, 3M, Frito Lay, Johnson & Johnson, Proctor & Gamble, Toyota, GE, BMW, Deloitte, Southwest, Nike, IBM, Dell and more. "Your report from the eBook and definitive guide was the primary reference that we used." Used by over 500 leading organizations including HP, Pepsi, EDS, J&J, Nokia...Learn more
Download Now

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

Acknowledgments:

Suzanne Taylor and Kathy Schroeder - "Inside Intuit" - Harvard Business School Press

Originally published in 2006. Republished in 2009.

3M - The Innovation Machine

3M (NYSE: MMM) "Innovative technology for the changing world" is one of the top 20 innovators in The Innovation Index. In an earlier blog post on "Failures and Stumbles driving Innovation", we talked about how 3M has created its own Innovation Machine to stimulate growth over the last hundred plus years.

"Our company has, indeed, stumbled onto some of its new products. But never forget that you can only stumble if you're moving."

- Richard P. Carlton, Former CEO, 3M Corporation, 1950

"To the outside world, what we do looks a little like magic. We create entirely new product categories and breathe new life into markets crying for reinvention. It’s been called 'the 3M effect.' Harnessing innovation for your benefit- that’s the practical magic behind 3M’s success."

- George W. Buckley, Chairman, President and CEO of 3M

With over 76,000 employees, 3M produces over 55,000 products, including: adhesives, abrasives, laminates, passive fire protection, dental products, electrical materials, electronic circuits and optical films.^[1] 3M has operations in more than 60 countries – 29 international companies with manufacturing operations, and 35 with laboratories. 3M products are available for purchase through distributors and retailers in more than 200 countries, and many 3M products are available online directly from the company. - Source: Wikipedia

Who is 3M?
3M is fundamentally a science-based company. We produce thousands of imaginative products, and we're a leader in scores of markets – from health care and highway safety to office products and optical films for LCD displays. Our success begins with our ability to apply our technologies – often in combination – to an endless array of real-world customer needs. Of course, all of this is made possible by the people of 3M and their singular commitment to make life easier and better for people around the world. - Source: 3M Investor Relations

Since 2007, 3M stock performance is relatively flat (down about 9%), whereas S&P 500 is down more than 25%. 3M quarterly earnings have been climbing, despite the great recession, and positively surprising the analysts:

Earnings History	Dec-08	Mar-09	Jun-09	Sep-09
EPS Est	0.93	0.86	0.94	1.17
EPS Actual	0.97	0.81	1.20	1.37
Difference	0.04	-0.05	0.26	0.20
Surprise %	4.3%	-5.8%	27.7%	17.1%

On the other hand, 3M topline revenue has been relatively flat since 2007, and profits are also leveling off:

PERIOD ENDING		31-Dec-08	31-Dec-07	31-Dec-06
Total Revenue		25,269,000	24,462,000	22,923,000
Cost of Revenue		13,379,000	12,735,000	11,713,000
Gross Profit		11,890,000	11,727,000	11,210,000

However, 3M is bullish about the future - 2010 and beyond:
* Innovation is alive and well at 3M, and our growth capability is improving
* 3M sees huge opportunities for value creation –health care and emerging markets only scratch the surface
* 3M’s business model is unique and produces sustainable premium margins and ROIC
* 3M can fund growth, address fiduciary needs and return significant cash to shareholders –due to a strong balance sheet and outstanding free cash flow.

Essentials of 3M’s Growth Plan in 2010 and beyond:
Rebuilding & extending the core; lowest risk and fastest results

• Protect and defend the core; inventing a new future
• Broaden the product portfolio to become more important to customers

Invest in the future

• R&D spending increases, protecting our flanks and engaging the labs
• Fixing chronic capacity issues
• Adjacencies, Emerging Business Opportunities and

Making Supporting Acquisitions
Improving supply chain speed and efficiency

• Shortening supply chains
• Driving growth by with regional brands and manufacturing
• Releasing working capital and lowering entropy costs and the effective tax rate

Experiment with new markets

• Emerging Business Opportunities (EBOs) and other adjacencies

Greater emphasis on International markets growth

Source: 3M Investor Relations

After 100 years, 3M follows a business model based on “the ability to not only develop unique products, but also to manufacture them efficiently and consistently around the world (3M).”^[6]

Incentives - Innovations' Starting Point
In a news story in the Boston Globe titled "In some cases, nothing succeeds like failure", Gustave Manso, a Brazilian-born finance professor at MIT Sloan School of Management claims: "To induce employees to explore new ideas, you have to tolerate early failure and reward long-term success." Manso believes that "the challenge is to craft incentives that will make creative people comfortable with thinking big and taking risks."

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

The Globe story cites Manso's favorite on experimentation and intra-entrepreneurship, a story that has become both a model and a fable among the innovators: "Spencer Silver, a researcher at the St. Paul technology company 3M, discovered a new kind of light adhesive in 1968 that initially was shelved because it couldn't compete with more robust glues and had no obvious commercial application. A decade later, his colleague Art Fry recognized that the adhesive, which stuck lightly to surfaces and was readily repositioned, would be perfect for the best-selling product 3M eventually launched as the Post-it Note."

3M - Failures to Innovation Machine

3M is quite possibly the most innovative company of our times that even CEOs of other visionary companies admire. 3M is best known for its household brands such as Post-it Note, Scotchgard, Scotch tape, and many more. 3M initially failed in its mining business, and eventually stumbled onto most of the successful innovations that we know 3M for, including Post-It, Masking and Scotch tape. "Although the invention of the Post-it note might have been somewhat accidental, the creation of the 3M environment that allowed it was anything but an accident," according to Collins and Porras, authors of Built to Last.

3M institutionalized such mechanisms to drive Innovation as the "15 percent rule" - technical people spend up to 15 percent of their time on projects of their own choosing or initiative, "25 percent rule" - each division should produce 25 percent of annual sales from new products and services introduced in the previous five years (which later increased to 30 percent), "Golden Step" award - given to those creating successful new business ventures originated within 3M.

More growth mechanisms were created to stimulate internal entrepreneurship, test new ideas, create unplanned experimentation, share new ideas, develop new innovation, cross-fertilize technology, ideas and innovation, stimulate innovation via customer problems, speed product development and market introduction cycles, provide profit sharing, and promote "a small company within a big company feel" by creating small autonomous business units and product divisions -- over a dozen business processes to stimulate creativity, innovation and growth -- in early 1990 3M had over sixty thousand products and over forty separate product divisions.

Incentives for Innovation

Manso wants to create incentives such as "slow-vesting stock options, golden parachutes, debtor-friendly bankruptcy laws, and, in academia, tenure" to motivate the employees to innovate without worries about failure and job insecurity.

"Incentive schemes that motivate exploration are fundamentally different from standard pay-for-performance incentive schemes used to motivate effort," Manso wrote in an abstract this fall. "The optimal compensation scheme that motivates exploration exhibits substantial tolerance (or even reward) for early failure."

In Blocking Creativity and Innovation on this blog, we talked about creating a system that unblocks innovation and creativity by building new processes, creating an innovation culture and rewarding and recognizing the innovators.

Five takeaways stimulating Innovation

Authors Collins and Porras summarize their findings from 3M and provide five takeaways to drive Innovation at any business:

1. "Give it a try--and quick!" - Essentially echoing on having a process to try out a lot of stuff, and keeping what really works. The key here is to do something. Keep on trying something new.

2. "Accept that mistakes will be made." - Learn from the mistakes quickly, and move on. Failures are part and parcel of what creates new innovation. Don't repeat the same mistakes.

3. "Take small steps." - Experiment, but on a small scale. When something looks promising, go all out and seize the opportunity. This way one can do plenty of inexpensive experiments that create a funnel of would-be innovations.

4. "Give people the room they need." - Without entrepreneurship, there is no experiment. Without experiment there is no success or failure. People need some time, incentives, job security and room to experiment.

5. "Mechanisms - build that ticking clock!" - How do you harness creativity and build innovation? It cannot happen simply by chance. Companies need to create practices and tangible mechanisms to experiment, try out new ideas and innovate.

Bottomline

3M has launched many new innovations in the marketplace thereby solidifying its position as a top innovator of technology governed by systematic processes and excellent manufacturing.

For instance, in November, 3M introduced a new connector for microSD cards which has the smallest form factor available, and yet provides excellent connection and locking mechanisms. 3M opens up the removable flash memory card market for phones, digital cameras, gaming and more.

Earlier, in an effort to broaden the market share in the auto industry beyond the professionals, 3M went direct to consumers, the do-it-yourselfer and car enthusiasts, with a new line of consumer care car products. 3M introduced three ready-to-use product solutions that range from better appearance and shine, to increased performance and repair.

3M is also driving Hydrogen Fuel research along with the Department of Energy, and is innovating MicroTouch capacitive TouchSense System.

China and India represent the most important growth opportunities for 3M
•China –potential to reach > $3B by 2014
•India –potential to reach > $1B
•China + India =~40% of US Economy in size with 1/8thGDP/capita

Source: 3M Investor Relations

These are just a few examples of the new innovations at 3M that are both practical and ingenious, solving the innate customer need and creating new markets and growth. As with all innovations, at times it addresses a ready market that creates immediate revenue growth, at times it creates a new market entry in an emerging market that is about to happen.

3M is one of the top 20 innovators in The Innovation Index. Although the stories of the planned failures stimulating growth at 3M are passed along by various authors who study the innovations at 3M from inside, or by company employees who go on to become innovators themselves, it would be great if 3M were also to publish an annual list of the top initiatives that failed and lessons learned from these. The rest of the industry can greatly benefit from such wisdom.

Download my Creativity and Innovation eBook. 212-page collection of over 55 best practices, case studies, and insights on the current state of Creativity and Innovation in Business at Top Innovators including Apple, Google, Netflix, 3M, Frito Lay, Johnson & Johnson, Proctor & Gamble, Toyota, GE, BMW, Deloitte, Southwest, Nike, IBM, Dell and more. "Your report from the eBook and definitive guide was the primary reference that we used." Used by over 500 leading organizations including HP, Pepsi, EDS, J&J, Nokia...Learn more
Download Now

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

References:

In some cases, nothing succeeds like failure

The Innovation Index

Failures and Stumbles driving Innovation

Blocking Creativity and Innovation

www.3m.com

Originally published in 2006; republished in 2009.

P&G - Procter & Gamble - Innovating & Growing with Business Model

Did you know that Procter and Gamble - P&G makes all these cool products below that you use everyday in your house?

You betcha... from Duracell and Gillette to Crest, Charmin to Tide, Bounty to Iams - P&G is the world's largest consumer goods company. As a matter of fact, "three billion times a day, P&G brands touch the lives of people around the world." P&G has a bigger mission that they are trying to fulfill: "Provide branded products and services of superior quality and value that improve the lives of the world's consumers, now and for generations to come."

P&G is one of the Top 20 innovators of the Innovation Index.

P&G stock is doing relatively well compared to the major indexes. Here is a snapshot of how well P&G is holding up since 2007, beating both S&P 500 and Dow Jones indices:

Why is P&G doing so well?

One answer: Innovation. Innovation driving new business, innovation driving growth, innovative leadership by past CEO of P&G A.G. Lafley, & current CEO Bob McDonald. Another fact that most investors may not know about: Barclays Global Investors and Berkshire Hathaway (Warren Buffett's company) are the top two institutional holders of P&G.

P&G has been making or handily beating the earnings estimates for the past 4 quarters (despite the Great Recession):

Earnings History	Dec-08	Mar-09	Jun-09	Sep-09
EPS Est	1.58	0.80	0.79	0.99
EPS Actual	1.58	0.84	0.80	1.06
Difference	0.00	0.04	0.01	0.07
Surprise %	0.0%	5.0%	1.3%	7.1%

(Courtesy - Yahoo Finance)

P&G Revenue & Gross Profit are beginning to climb back (check earnings results below), after divesting major businesses such as the prescription business in 2009 (courtesy - Yahoo Finance). Sales fell in 2008-2009 (yearly sales for June 2009) owing to the recession, divesting of businesses, and P&G's ill-timed strategy of raising prices for its products in the midst of the Great Recession that backfired. The price increases initially helped buoy sales, but eventually sales suffered. P&G is correcting the price increase strategy of 2008 beginning in Q3 of 2009.

PERIOD ENDING		30-Jun-09	30-Jun-08	30-Jun-07
Total Revenue		79,029,000	83,503,000	76,476,000
Cost of Revenue		38,898,000	40,695,000	36,686,000
Gross Profit		40,131,000	42,808,000	39,790,000

P&G Global Business Unit Organization

Courtesy: P&G Quarterly News. PG.com

24 of P&G's brands have more than a billion dollars in net annual sales,^[15] and another 18 have sales between $500 million and $1 billion. (Courtesy - Wikipedia). These P&G brands are run as business units, with brand heads managing the operations, products & profits.

Billion dollar brands

• Ariel is a brand of laundry detergent/liquid available in numerous forms and scents.
• Actonel is a brand of the osteoporosis drug risedronate co-marketed by Sanofi-Aventis.
• Bounty is a brand of paper towel sold in the United States, Canada, and the United Kingdom (rebranded to "Plenty" in the UK after being sold to SCA Svenska Cellulosa Aktiebolaget).
• Braun is a small-appliances manufacturer specializing in electric razors, coffeemakers, toasters, and blenders.
• Crest is a brand of toothpaste.
• Dawn is a brand of dishwashing detergent.
• Downy/Lenor is a brand of fabric softener.
• Duracell is a brand of batteries and flashlights.
• Fusion is a brand of men's wet shave razors and is the quickest P&G brand to have reached $1 billion in annual sales.
• Gain is a brand of laundry detergent and fabric softeners.
• Gillette is a safety razor manufacturer.
• Head & Shoulders is a brand of shampoo body wash, and deodorant.
• Old Spice is a brand of aftershave and shaving cream.
• Ivory is a soap.
• Nice 'n Easy is a hair coloring product.
• Olay is a brand of women's skin care products.
• Oral-B is a brand of toothbrush.
• Pampers is a brand of disposable diaper.
• Pantene is a brand of hair care products (conditioners/styling aids).
• Prilosec OTC is a brand of heartburn medicine co-marketed by AstraZeneca.
• Pringles is a brand of potato chips.
• Puffs is a brand of facial tissue.
• Secret is a brand of antiperspirant and deodorant.
• TAG is a deodorant and body spray.
• Tide is a brand of laundry detergent.
• Vicks is a brand name of over-the-counter medicines (Formula 44, Sinex, NyQuil/DayQuil)
• Wella is a brand name of hair care products (shampoo, conditioner, styling, and hair color).
• Whisper is a brand of pantyliners sold primarily in Asian markets.

Global Products A to Z

Most of these brands, including Bounty, Crest, Pringles, Puffs, and Tide, are global products available in several continents. Procter & Gamble products are available in North America, Latin America, Europe, the Middle East, Africa, and Asia.

How did P&G do in the latest quarter?

"The Procter & Gamble Company (NYSE:PG) reported net sales of $19.8 billion for the July - September quarter which exceeded the Company's guidance. Organic sales growth was up two percent versus a guidance range of flat to minus three percent on better than expected results across most business segments. Diluted net earnings per share increased three percent to $1.06, above the Company's guidance range of $0.95 to $1.00. The Company raised its outlook for the October - December quarter and fiscal 2010 organic sales growth citing modestly higher expectation for market growth. The Company also increased the low end of its fiscal year guidance range by $0.03 per share to reflect the higher top-line growth projection." - Courtesy PG.com Quarterly Press Release.

"Our September quarter results give us encouragement we are making the right choices to grow market share profitably," said President and Chief Executive Officer Bob McDonald. "We are investing in innovation, expanding our portfolio and improving consumer value to serve more consumers, in more parts of the world, more completely. We are driving simplification and improving execution while leveraging scale to create cost efficiencies that help fund these investments and accelerate growth."

What is sexy, new and exciting that P&G is innovating?

P&G recently introduced Cascade Complete All-in-1 ActionPacs.

Cascade Complete All-in-1 ActionPacs "give you the confidence of a job done right. It breaks down, dissolves, and rinses away tough food particles without the need to pre-wash."

Here is what one highly satisfied P&G customer had to say about All-in-1 ActionPacs:

OMG this is the most amazing product

"I have an older dishwasher that came with the apartment I live in. You had to completely wash the dishes before putting them in the dishwasher. I was basically using it to drain the dishes. I saw this on T.V. and went to walmart and got it. All I can say is it is almost magical the way it cleans. I tested it on several hard to wash dishes, dried oatmeal, dried rice krispy cereal and my stainless steel pots and everything came out clean, no stuck on food, no hard water residue. thank you! thank you! thank you! what a time saver. I am disabled and one of the hardest things to do is standing over the sink washing dishes."
By beadjeannie. Reviewer from Fresno, CA August 14, 2008

Marketing Machine

According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than any other company; the $2.62 billion spent by P&G is almost twice as much as that spent by General Motors, the next company on the Nielsen list.^[5] P&G was named 2008 Advertiser of the Year by Cannes International Advertising Festival.^[6]

Bottomline:

P&G is a great company with great leadership and employees, and highly satisfied customers. P&G will be around for the next 100 years. P&G will continue to grow high single digits even in this economy because of the breadth of its products, creativity and innovation, global market share, and delighted repeat customers who will not buy another brand. When P&G made increases in product prices to bolster revenue & profits - as high as 16 percent because of higher costs for plastic, energy, and paper in 2008 - consumers reacted and bought less of P&G products, and sales fell. P&G changed strategies in Q3 2009 to react to the price-conscious buyers & accommodate frugal shoppers: "Company leaders say they are cutting prices about 10 percent of their global product line, stepping up promotions such as coupons and other discounts, and making more “value” pitches to consumers." P&G also announced a new plan for its laundry business, slashing the price of Cheer detergent by 13 percent and promoting it as a bargain brand. In CEO McDonald's words: "the focus on innovation, expanding our portfolio and improving consumer value" are keys to P&G's continued growth.

Download my Creativity and Innovation eBook. 212-page collection of over 55 best practices, case studies, and insights on the current state of Creativity and Innovation in Business at Top Innovators including Apple, Google, Netflix, 3M, Frito Lay, Johnson & Johnson, Proctor & Gamble, Toyota, GE, BMW, Deloitte, Southwest, Nike, IBM, Dell and more. "Your report from the eBook and definitive guide was the primary reference that we used." Used by over 500 leading organizations including HP, Pepsi, EDS, J&J, Nokia ... Learn more
Download Now

Selected references:
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

Innovation Index Reports

Introducing The Innovation Index
Annual Report 2007 - The Innovation Index gains 66%
Measuring Business Innovation Success
Q1 2008 Report - Innovation Index ahead of S&P 500
Q2 2008 Report - Top Innovators Deliver
Top 50 Innovative Companies in the world
Annual Report - Chapter One - Total Innovation Activity
Annual Report - Chapter Two - The Top Innovator
Annual Report - Chapter Three - The Innovation Insights
Innovation and Stock Performance Correlation
Future earnings guidance, A leading indicator
Smart Investing In Tough Economic Times
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies

About the Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.The Innovation Index returned 66% in 2007 based on performance model, and would have returned 174% over the previous five years (2002-2006) based on historical model*. This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S&P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NASDAQ: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Originally published in 2008; republished in with major revisions in 2009.

Business Innovation Tool Kit - eBook, Insights, Annual Report

Business Innovation Resource Kit used by 500+ innovative companies worldwide - Best Seller (deployed at Nokia, EDS, Pepsi, HP, 500 more...)

Business Innovation Resource Kit includes eBook, Guide, Presentation, Annual Report and Insights on Creativity & Innovation in Business.

Innovation eBook and Definitive Guide is a 212-page collection of over 55 best practices, case studies, and insights on the current state of Innovation in Business at Top Innovators including Apple, Google, Netflix, 3M, Proctor and Gamble, Johnson and Johnson, Toyota, GE, BMW, Deloitte, Frito Lay, IBM, Nike, Starbucks, Southwest Airlines, Microsoft, Dell, Tata, Intel and more. With pertinent articles from this award-winning Creativity And Innovation Driving Business Blog, this Faculty eBook provides real-world examples on how the Top Innovators innovate and grow their business successfully time and again, especially during economic cycles. Creativity And Innovation in Business is a definitive guide and resource that will help you unblock creativity, uncover and create game-changing innovations, and make exponential business growth a reality.

"I teach Applied Creativity and Innovation for a College near Toronto, Canada. I gave my business students an assignment to work with one of the top 10 innovative companies and to research/report on what makes them innovative, type of innovative challenges, benefits, etc. Your report from the eBook and definitive guide was the primary document that they used for their work." - Business School Professor

Download Now

"1) Innovation and growth is not (just) a fuzzy process of screwing around vigorously (SAV) but can be a systematic process,

2) Innovation and growth is not (just) something that happens in a department like R & D or product development,

3) Innovation and growth is not just about products or solutions - it is about creating a transformational change in the way people live, work and play." - Chapter 26, Erich Joachimsthaler, author of "Hidden in Plain Sight"

Who should buy?

The Innovation eBook and Definitive Guide has been downloaded and used by over 1,000 professionals, faculty and innovators at educational institutions and businesses all around the world including EDS, Ericsson, Center for Sales Strategy, IdeaChampions, Acara Global, Byrne Dairy, Cleveland Clinic, Magpie, DOJ/FBI, HP, Hewlett Packard, Intervista Institute, Fryett Consulting Group, Satellite Shelters, ProductVentures, Speakeasy - a Best Buy company, Jarden Consumer Solutions, Hallmark, Infinium, DeakinPrime - Deakin University, Lucas-TVS, McCann Worldgroup, S.P.Jain Center of Management, Suffolk University, RiCoMan, AmpControl, Craig Rispin, Momentive, Champion Laboratories, University of Phoenix, University of Washington, SFR - Neufbox, Attwood as Edison, Academy of Sport, Ideogenesis, Principled Innovation, Meridian Partners, Ananzi, Tangibility, Syngenta Global, Speedy, The Business Lab, Deloitte, Lane Management, University of California at Irvine, Wharton Business School, Babson University, Larsen & Toubro, Nokia, Credera, Pfizer, Bilkent University, Indian Institute of Science, Bacardi, Chick-fil-A, LG Electronics, Pepsi and many more.

If you are a marketing executive, information executive, IT executive, product manager, marketer, product marketer, business consultant, product designer, brand manager, marketing manager, VP of products, VP of marketing, VP of technology, research & development director, product director, product marketing manager, marketing consultant, brand consultant, innovation consultant, chief innovation officer, engineer, engineering student, business school student, business school professor, technology student, technology consultant, design engineer, consultant, trainer, professor, sales operations manager, sales director, sales consultant or management consultant - this book and definitive guide is for you! If you are one of the key executives of the company or the CEO, buy this guide for your company!

Download Now

TABLE OF CONTENTS

Chapter 1 - The Top 50 Innovative Companies In The World
Chapter 2 - The Innovation Index - Top 20 Innovators
Chapter 3 - Measuring Business Innovation Success - Key Benchmarks
Chapter 4 - Failures And Stumbles Driving Innovation - Five Takeaways
Chapter 5 - Blocking Creativity And Innovation - Nine Processes
Chapter 6 - Six Ways To Find Innovation - "See with new eyes"
Chapter 7 - Five Principles For Successful Business Innovation
Chapter 8 - Is Innovation Cyclical? - Four Common Blunders
Chapter 9 - Can Leadership Create Innovation? - Ten Leadership Ideas
Chapter 10 - Top Ten Creative Leadership Traits - Be The Leader and Innovator
Chapter 11 - Creating Team Innovation - Seven Characteristics
Chapter 12 - Creating Team Innovation - Effective Teams Examples
Chapter 13 - Creating Team Innovation - Ten Principles To Unleash Innovation
Chapter 14 - The Future Of Management, Creativity And Innovation - Upend Business Models
Chapter 15 - How Much Creativity Is Enough?
Chapter 16 - Co-Creation Driving Innovation At Top Innovators
Chapter 17 - Marketing Innovation Creating Market Leadership
Chapter 18 - Consumer Innovation Best Practices - Six Steps To Lead Innovation
Chapter 19 - The Innovation Gap - Disruptive Innovation versus Sustaining Innovation
Chapter 20 - Are Children More Creative Than Adults?
Chapter 21 - Questions Lead To Creativity, Answers Lead To Innovation
Chapter 22 - Expanding Your Business Innovation Capacity
Chapter 23 - Innovation Insights And Wisdom From Greatest Innovators
Chapter 24 - Turn Complaints Into Solutions, Innovations And Success
Chapter 25 - Why Some Ideas Survive And Others Die
Chapter 26 - Ten Answers For Driving Innovation And Growth At World Class Innovators
Chapter 27 - Strategic Innovation At Deloitte - The "Apple" Of Services Innovation
Chapter 28 - Toyota's Innovation Factory
Chapter 29 - Ipod - Apple's Best Innovation
Chapter 30 - Apple Iphone Rising - Top Ten Innovations
Chapter 31 - Google Versus Yahoo - A Tale Of Two Cities
Chapter 32 - Youtube - $1.65 Billion Innovation And Counting
Chapter 33 - Blockbuster Versus Netflix - Winner Takes All?
Chapter 34 - GE And P&G - Innovations Driving Growth & Six Growth Principles
Chapter 35 - Can Dell Turnaround Dell? Seven Thoughts For Turnaround
Chapter 36 - Innovations Brewing At Starbucks ? Five Takeaways
Chapter 37 - Southwest Airlines Flying High With Ten Innovations
Chapter 38 - Innovations At Microsoft - Four Business Pillars
Chapter 39 - Direct Marketing And Direct Mail Innovation At USPS
Chapter 40 - Disruptor Zune Versus Innovator Ipod
Chapter 41 - 100% Electric Ultra Fast Innovation - Tesla
Chapter 42 - Nike Versus Adidas - The Innovation Game Is On
Chapter 43 - People Innovation - We Think Culture Of Innovation
Chapter 44 - Intel - Exponential Innovations
Chapter 45 - Five Innovations In Software Industry - Intuit Case Study
Chapter 46 - Google Versus Microsoft - The Enterprise Battle Heats Up!
Chapter 47 - Launch Of Tata Nano - A Watershed Moment in Indian Autos
Chapter 48 - How Can GM Turnaround The Business? Is Innovation The Answer
Chapter 49 - Doubleclick A Smart Buy For Google
Chapter 50 - Microsoft Walk-Off Home Run With Aquantive
Chapter 51 - IBM's $5 Billion Cognos Acquisition
Chapter 52 - Top Acquisitions By The Top Innovators
Chapter 53 - Will Yahoo merge with Microsoft?
Chapter 54 - Innovation And Stock Performance Correlation
Chapter 55 - The Innovation Index Annual Report
Chapter 56 - $1 Billion Or The Future

Eight new chapters added, including a detailed report on "Measuring Business Innovation Success"

Download Now

Innovation eBook details invaluable tools to unlock:
Creativity -> Ideas -> Innovations -> Success -> Profits

The Innovation Bootcamp On Demand Resource Kit Tools:

The entire Innovation Bootcamp On-Demand tools for your business to unleash the creativity and innovation within your own environment! You can selectively leverage the key concepts of the Innovation Bootcamp at your own pace, at your office or at your home, and share them with your team. The Innovation Bootcamp On-Demand Resource Kit includes:

• The complete Innovation Bootcamp presentation and handouts containing over 400 presentation slides to spark new ideas, channel team creativity and create innovation factory.


• 100+ pertinent strategies and tools, hands-on techniques and uncommon insights to unleash creativity and innovation at your business


• The Innovation Bootcamp Resource Kit consists presentation slides of Six Engaging Online Workshop Sessions:


• 1. Benchmarking and Leading with Innovation
• The Business Case for Innovation


• 2. Unblocking Creativity and Innovation
• The Essential Processes and Skills


• 3. Unleashing Team Innovation
• Great Teams Deliver Great Innovations


• 4. and 5. Business Innovation Case Studies
• Learn how Top Innovators Lead with Innovation (Google, Netflix, Apple, Toyota, more)


• 6. Building an Innovation Factory
• Create a sustainable, scalable Innovation Business Model


• "The Innovation Bootcamp provided an excellent orientation on the topic of innovation and I learned several new techniques for generating and successfully implementing new ideas. Plentiful real world case studies was another aspect I liked about the program. I highly recommend it." - IT Manager, Top 5 IT Services Business

There's more:

Special Offer: Buy eBook today and get the Annual Innovation Report from Creativity And Innovation Driving Business delivered FREE! (a $99 value)

About the Author

Sanjay Dalal is an innovator and entrepreneur with over fifteen years of leadership experience in Silicon Valley and High Tech companies. Dalal is the founder of India Business Network. Dalal authored and launched the Innovation Faculty eBook and Definitive Guide on Creativity and Innovation in business in 2008, used by over 500 leading organizations and professionals all over the world including HP, Hallmark, Cleveland Clinic, Pepsi, EDS, and major universities. Dalal published over 200 articles in the last two years on the real-time state of innovation in business at this blog on Creativity and Innovation Driving Business, and introduced the Innovation Index in December 2006 that correlates business, innovation and stock performance. Dalal was the president and managing director of the innovative investment company, Innovation Index Group, that systematically invested into the Top 20 Innovators of the Innovation Index. Dalal filed joint U.S. Patent on "Hands-On Labs" for delivering live, hands-on training over Web Meetings by simulating a training lab environment. Dalal has launched innovative products such as WebEx Training Center and WebEx Sales Center to market, and grown product line revenue to tens of million dollars in annual revenue. Dalal holds executive certification on Leading Management Teams from Cornell University, and is an engineering scholar graduate in Electrical Engineering from The University of Texas at Austin. Dalal attended Arizona State University for graduate education in Computer Science. Dalal secured the first position in the 50th William Lowell Putnam Math Competition. Dalal volunteered as a basketball coach on three separate occassions for Fremont NJB, Irvine NJB, and Rancho Middle School 7th graders, as an art master for 2nd graders, and as the secretary of the School Site Council. Dalal was a member of the Technology Advisory Committee for the Fremont School District containing over 40,000 students, an appointed position by the Board of Education. Dalal is a Web 2.0 adviser for Cal State Fullerton, Extended Education and a lecturer on "Making the business case for Web 2.0". Dalal, an appointed member of the Dean's Leadership Circle of The Paul Merage School of Business, University of California, Irvine, is a guest lecturer at the University of California, Irvine for the Strategic Innovation class. Dalal is an active Rotarian at the Rotary Club of Newport-Irvine.

Innovation eBook is brought to you by Creativity And Innovation Driving Business based in Irvine, CA.

Address: 8105 Irvine Center Drive, Suite 900, Irvine, CA 92618
Main Phone #: 1-949-288-6880

Creativity And Innovation Case Studies

Creativity And Innovation Case Studies

• Can GM Turnaround? Is Innovation the answer?
• General Motors - GM - was ranked a top 20 innovative company in the world according to the BCG - Business Week 2008 survey. In early 2008, everyone was bullish about GM's future. However, in just over a year since this review was published, the big question on everyone's mind today is: "Can GM survive?" If you answer this question with YEA, then you ask the next question: "How can GM turnaround? Is Innovation the answer?"
• 2008 Innovation and Innovator of the year
• The 2008 Innovation of the year: http://www.barackobama.com/, My.BarackObama.com
• The 2008 Innovator of the year: President-elect Barack Obama and his campaign team
• Apple iPhone Goes Global - iPhone 3G
• The biggest surprise in the Apple announcement: iPhone 3G is available at half the price of the original iPhone at only $199 for the 8GB model in the U.S., and $299 for the 16GB model. And the new iPhone 3G packs twice the punch - it is twice as fast. Apple iPhone 3G will be rolled out in 70 countries globally.
• How can Apple turnaround the iPod sales growth?
• On the one hand, Apple is poised to have a great year of iPhone sales - Apple Innovation blog and Innovation Index Group, Inc. estimate that Apple will sell more than 12 million iPhones in 2008. Most of the industry analysts estimate Apple to sell more than 8 million iPhones in 2008. But will the growth of iPhone business cannibalize the growth of iPod business?
• Google innovates with Google Apps
• Google Apps Team Edition can become a useful alternative to Microsoft Office for small businesses, students, schools, small teams, non-profits and as such individuals looking to create and share basic documents, spreadsheets and presentations. It does not carry the price tag of Microsoft Office, and provides basic collaboration leveraging Docs, Calendar and Talk.
• Will Yahoo ride into the sunset?
• This is one acquisition where Google is not going to try to outbid Microsoft. There will be intense negotiations between Yahoo and Microsoft on the future of Yahoo Search, key Yahoo properties such as email and Finance, and Yahoo employees. However, in the end, this would be too sweet a deal for the Yahoo board to reject - or would they? Will Yahoo ride into the sunset?
• Apple Inc. Kicks Off 2008 with bold innovations
• Can Apple top 2007? One thing is certain with Apple and Steve Jobs: It does not idle. It does not rest. It does not quit. Apple kicked off 2008 with planned new innovations that espouse unbridled creativity.The most significant announcement from Apple came in the heavily crowded laptop segment: MacBook Air
• Strategic Innovation at Deloitte
• "Strategic Innovation at Deloitte". Key points on what drives innovation at Deloitte, and how innovation drives business. Deloitte is a worldwide organization consisting of some 147,000 employees (talent), with offices in more than 140 countries, aggregate revenues of $23.1 billion in fiscal year 2007, and serving more than 80% of the 2007 Fortune Global 500.
• Apple Creativity Innovation Case Studies
• All major case studies on Apple's creativity in business, business innovation, new products, new launches, business growth, Steve Jobs and more...
• Apple introduces new iPhone and iPod touch
• Apple Inc. today added new models of the iPhone(TM) and iPod(R) touch which have "double the memory, doubling the amount of music, photos and videos that customers can carry with them wherever they go."
• Apple - iPod - Best Innovation
• iPod, powered by Apple, introduced in 2001 and masterminded by Steve Jobs, combines outstanding design, easy-to-use interface, superb performance, and an experience like no other. Apple assumed the world’s number one innovative company position and held it again in 2006 in large part due to the exponential growth of iPod – aptly called the iPod phenomenon.
• Apple iPhone Rising - Top Ten innovations
• Make calls by "simply pointing at a name or number." Visual Voicemail is definitely an industry first, a new innovation, that "lets users look at a listing of their voicemails, decide which messages to listen to, then go directly to those messages without listening to the prior messages." And eight more noteworthy innovations.
• The Apple Google Juggernaut - besting Microsoft?
• If Apple and Google merge, the combined company will amass estimated revenue of $66.1 billion in 2009, thereby eclipsing Microsoft, whose estimated annual revenue in 2009 will be $62.4 billion. It will be a merger unlike any other in the history of mergers, and will create a powerhouse that might just topple the mighty Microsoft (NASDAQ: MSFT) from the throne.
• What drives Apple's innovation?
• Apple’s innovation and growth is first and foremost driven by inner conviction about the outer world – a conviction that is manifested by Steve Jobs and largely led by him and people around him. This conviction is about changing how consumers live around music or entertainment. It is not merely a product focus, although it might appear this way.
• Google versus Yahoo - A tale of two cities
• When one examines the growing gap between Yahoo and Google in terms of quarterly revenue, quarter over quarter revenue growth, quarterly net income, quarterly net profit margin, yearly innovations and stock performance gains, the picture becomes increasingly clear. Google is unstoppable at this juncture!
• Google's New Search: Step in the right direction
• Google's new search technology is an early effort towards making searching for information better. Google has the right vision of integrating the search across various dimensions of Web, Images, Video, Products, etc. and providing comprehensive results. However, implementing this algorithm for new search, producing the results in parallel, and showing the results in a visually appealing and contextually easy-to-understand manner is going to be key.
• Is DoubleClick a Smart Buy for Google?
• DoubleClick's innovative technology and ad platform provides Google an ability to provide display ads from agencies and advertisers. DoubleClick provides a ready-made platform, advertisers and agencies, publishers and relationships that have taken over ten years to build.
• Can Yahoo! catch Google?
• Before Google became Google, Yahoo! owned the search business. However, since Google search came onto its own, Yahoo! search was forgotten and relegated to the number two position. No one even considered the possibility that someday Yahoo! search can generate the type of revenue that Google generates, and possibly take on Google on the core search business that it owns a majority market share by a long shot.
• Google versus Microsoft - Enterprise Battle
• With the introduction of Google Apps Premier Edition, Google has the opportunity to create new market share, and grab market share from Microsoft Office and Email applications. Google Apps Standard and Education Edition has 100,000 business customers today; at an average of 10 users per customer, this translates to 1 million end users potentially using Google Apps today.
• Google - YouTube Innovations
• YouTube will remain an independent business retaining its distinct brand identity. What is not clear is what Google will do to its own Video service. What Google will provide though is the monetization for YouTube's Video services through its advertiser relationships and global reach. If 1% of the 70 million Videos that are served daily click on a Google served advertisement, this would result in 700,000 daily click-through or 255 million click-through in a year (without accounting for any new growth).
• Microsoft Innovating or Buying Search Market
• Is Microsoft innovating by creating a new business model for Search or are the recent announcements a new attempt to catch up with Google and Yahoo! in the Search market share? Pay users to Search using Microsoft Live Search.
• Microsoft Walk-off Home Run with AQuantive
• Microsoft waited until the ninth inning and two outs to deliver the walk-off game-winning home run with AQuantive Acquisition. The home run hit was worth $6 billion!! And for AQuantive investors, a mouthwatering $66.50 a pop - all cash (no credit).
• Microsoft - The Innovator
• Ballmer talks about the four core pillars that make Microsoft's People Ready business fulfill today's business needs. Is Microsoft launching a new wave of innovation with Windows Vista, Office 2007 and Exchange 2007 and some 30 new products? Or are these merely nice-to-have product enhancements that users were asking for, and were just delayed for the past few years?
• Cisco betting BIG with WebEx purchase
• Cisco Systems, Inc. today announced the acquisition of WebEx Communications, Inc., the leader in web conferencing, for $3.2 billion - or 7 times WebEx projected revenue of $457 million in 2007. Cisco is betting big with this acquisition on the potential upside in web and video conferencing revenue in the unified communications market space.
• Blockbuster versus Netflix - Winner is...
• Who will be crowned the winner of movie rentals? Would it be Blockbuster whose stock price has appreciated more than 80% in 2006, and importantly, has finally figured out the appropriate formula: Blockbuster Total Access. Or would it be Netflix, who has found time and again to improve upon its business model, and has shown ability to innovate with the recently announced online movie downloads?
• 3M - The Innovation Machine
• 3M this year has launched many new innovations in the marketplace thereby solidifying its position as a top innovator of technology governed by systematic processes and excellent manufacturing. A few examples of the new innovations at 3M that are both practical and ingenious, solving the innate customer need and creating new markets and growth.
• Intel - The Innovator
• Intel announced game changing, record-setting innovation in transistor technology last week comprising of two new materials used in making transistors: high-k and Metal gates. How big is this innovation? This 45nm technology represents the biggest technological change and creativity in 40 years, extends Moore's Law into the next decade, and increases Intel's lead by more than a year over the rest of the semiconductor industry with working 45nm processors codenamed "Penryn".
• How can Dell turnaround Dell?
• Dell has seen its market cap go down by about 20% in the last thirteen months, in large part due to average quarterly and annual top-line revenue growth, reduced profits, and losing the number one position as the world’s top supplier of new computers to Hewlett-Packard. Michael Dell, the founder, founding CEO and chairman of Dell Inc., took over the CEO roll of Dell again. Dell made Dell the number one computer company in the world. Now, Dell has perhaps the toughest act of his career: Turnaround Dell, beat HP, and make Dell the number one computer company in the world – again!
• Southwest Airlines - Flying High
• Southwest provides the best overall value in low cost airline travel. Southwest may not offer all the frills, but does offer clean all leather seats with reasonable leg room, along with basic compliments including pillows, blankets, snacks, juice, soda, and water on all flights. The best available feature is no charge for changes on full-fare reservations. What are the top ten key innovations that make Southwest Airlines soar higher, drive new growth, and perform better than the competition?
• Starbucks - Brewing Innovations
• Starbucks has become a pervasive coffee brand throughout the world, and the company is cleverly exploiting the Starbucks brand to launch new innovations in complementary and adjacent industries accounting for the solid revenue growth. Starbucks wants you to become that frequent customer who spends upwards of $10 each day on a combination of their handcrafted coffee beverages, sandwiches, cookies and music. Starbucks monthly allowance anyone?
• GE - Innovations Driving Growth
• GE has a daunting revenue challenge each year: create $15 billion or higher in new business each year or about the size of Nike's total revenue. The strategy at GE emphasizes sound business processes driving creativity and innovation, and is rooted on the following three pillars.
• P&G - Innovations Driving Growth
• P&G needs to carve out $7 billion in new business each year, comparable to IAC Interactive's total revenue. Large numbers indeed. The strategy at P&G is buoyed by the following three pillars driving new innovations.
• Adidas versus Nike - Innovation Game
• "We built our brand around the athlete and his or her personality, creativity and innovation. I think that's what gives the Nike brand the edge it has today," - Nike. Adidas is about to launch a new innovative campaign in the NBA praising the Team Spirit in sports.
• Toyota - The Innovation Factory
• How does an organization implement one million new creative ideas each year? And become a perennial top ten profitable companies of the world. And achieve market leadership while relentlessly pursuing perfection and delivering some of the best new innovations the world has ever seen.
• Wal-Mart - The Green Innovation
• Wal-Mart's CEO Lee Scott says "he wants to turn the world's largest retailer into the greenest." What is the Green Innovation? Green Innovation is any innovation that seeks to make our environment safer. Green Innovation is a win-win for the business, the environment and the community.
• Intuit - Software Innovations
• Intuit is the world's largest maker of financial management and tax software. Intuit is best known for the household software brands Quicken, QuickBooks and TurboTax created for small businesses, consumers and accountants. Here are the top five Innovations that Intuit created to achieve software market leadership.
• U.S.P.S. - Direct Marketing Innovation
• According to Direct Marketing Association -- DMA, direct marketing generates incremental sales of more than $1.93 trillion in the U.S, or 10.3% of the U.S. GDP. Direct Marketing delivers more than double the ROI of other marketing efforts -- each Direct Marketing dollar spent generates an ROI of $11.65 compared to an ROI of $5.29 for other marketing programs.
• Tesla - 100% Electric Innovation
• A 100% Electric car. An ultra fast car that goes 0 to 60 miles in 4 seconds flat, with a top speed over 130 mph. A car that provides 100% torque all the time - great performance and acceleration anytime from stop to start to go. A car that is six times as efficient as the best sports cars while producing one-tenth of the pollution.
• Red Hot Growth in Indian Business
• The current annual Indian GDP growth is 9% and is showing no signs of slowdown; Indian business has unprecedented access to capital, Indian innovation and entrepreneurship is booming, Indian business is riding a wave of "incredible confidence", over 100 Indian corporations have market capitalization of over $1 billion, Indian IT exports are poised to grow 30% to 35% yearly, major multi-nationals have made multi-billion dollar investments in India, Indian manufacturing, retail, real estate and exports are becoming bell-weathers -making the current state and growth of economy and business in India "absolutely red hot."
• India Software Services Innovations
• Amazon.com, Cisco, Dell, eBay, GE, Google, HP, IBM, Intel, Microsoft, Target Corporation and Yahoo are 12 of the Top 20 Innovators of The Innovation Index who have setup their software operations or development centers in India. Each innovator is addressing its growing needs for cutting-edge software for the global customer base by creating offshore Software Operations in India.
• The Growing Global Indian Innovation
• Indian Americans are the top entrepreneurs among immigrant groups in the United States, and in setting up the largest number of engineering and technology companies over the past decade. Indian Americans account for 26 per cent of tech firms founded by immigrants as a whole.
• Innovation Lessons from eBay CEO
• eBay CEO and President Meg Whitman not only provided a historical overview of eBay and provided insights on how eBay is positioning adroitly for the future, but also shared real world lessons on Business, Innovation, Leadership and more. What are the Five things People do online? Five Principles that drive Innovation at eBay.
• Red Auerbach - Master NBA Innovator
• "Auerbach was an innovator in almost everything he did," said Jerry West, who played for the rival Los Angeles Lakers and now runs the Memphis Grizzlies. "He not only brought the black athlete to Boston; more importantly, he recognized the greatness of the athletes that he had.” The world knows Red Auerbach as the “greatest coach that ever lived.”
• President Clinton - Creative Philanthropy
• What do former president Bill Clinton, world’s richest billionaire Bill Gates, world’s second richest billionaire Warren Buffett, hedge fund maestro Paul Tudor Jones and the maverick Marc Benioff have in common? These leaders are the new innovators uprooting the old business of philanthropy by creating entirely new business models, leveraging influence, forming strategic partnerships and collaborations, creating ventures and integrated approach, engaging pro-actively with the receiving organizations and setting specific performance targets for the foundations and recipients.
• Senator Obama - Bold Innovations
• "If we act boldly, then our economy will be less vulnerable to economic disruption, our trade balance will improve, the pace of U.S. technological innovation will accelerate, and the American worker will be in a stronger position to adapt to the global economy," states Barack Obama, the Democratic U.S. Senator of Illinois, in his book "The Audacity of Hope". Senator Obama lays out a vision for reclaiming the American Dream aided by a government built on our best traditions, representing our everyday lives, uniting our common hopes and dreams, and creating an unbreakable bond.
• Senator Clinton - 9-point Innovation Agenda
• Senator Hillary Clinton unveiled a 9-point Innovation Agenda "to renew the nation’s commitment to research; help create the premier science, engineering, technology and mathematics workforce; and upgrade our innovation infrastructure". Senator Clinton emphasized that America is still an "innovation superpower," yet, Senator Clinton points out the real Challenges facing Americans today.

Download my Creativity and Innovation eBook. 212-page collection of over 55 best practices, case studies, and insights on the current state of Creativity and Innovation in Business at Top Innovators including Apple, Google, Netflix, 3M, Frito Lay, Johnson & Johnson, Proctor & Gamble, Toyota, GE, BMW, Deloitte, Southwest, Nike, IBM, Dell and more. "Your report from the eBook and definitive guide was the primary reference that we used." Used by over 500 leading organizations including HP, Pepsi, EDS, Nokia...Learn more
Download Now

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

Innovation Index Reports

Introducing The Innovation Index
Annual Report 2007 - The Innovation Index gains 66%
Measuring Business Innovation Success
Innovation Index Group BUY Recommendations
Q1 2008 Report - Innovation Index ahead of S&P 500
Q2 2008 Report - Top Innovators Deliver
The Innovation Index Fund FAQ
Top 50 Innovative Companies in the world
Annual Report - Chapter One - Total Innovation Activity
Annual Report - Chapter Two - The Top Innovator
Annual Report - Chapter Three - The Innovation Insights
Innovation and Stock Performance Correlation
Future earnings guidance, A leading indicator
Smart Investing In Tough Economic Times
To Sell Or Not To Sell - You Decide
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies

About the Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.The Innovation Index returned 66% in 2007 based on performance model, and would have returned 174% over the previous five years (2002-2006) based on historical model*. This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S&P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NASDAQ: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

*Past Performance Does Not Guarantee Future Results