New Age of Innovation Chapter 1 notes

The Transformation of Business

BASIC Pillars
-N=1
-value is based on unique personalized experiences of the consumer
-R=G
-no firm is big enough in scope and size to satisfy the experiences of one consumer at a time

Model T
-consumers were treated as an undifferentiated group
-all resources had to be within the firm to capture value

TutorVista
-student choose the time when he wants to be tutored
-lessons are personalized for that student
-training for teacher, can take from 60 to 100 hours
-initial reviews show that US students participating in the system had dramatically improved their understand of the subjects ant their performance
-TutorVista has access to 600 tutors
-$99 a month
-Resources are accessed as need from a global resource pool
-TutorVista currently has over 10,000 paying students, and it is expanding its tutor base over 5,000 tutors to countries outside India, including the US
-the power of technology and analytics can be focused on the needs of a single individual

Truck Tires
-Vendors sell their products competing largely on the basis of price, durability and brand awareness
-contract with fleet owners to charger per mileage of usage
-the revenue is based on tire usage not on a one-time tire sale
-the retail business shift from transaction base to an ongoing relationship with the consumer
-the firm get details data on how the individual drives

Driver Safety
-help a specific driver improve their skill
-installed sensors that measure tire performance in real time and relay the date to a central date center

Goodyear vs. Bridgestone
-Goodyear already has a program that measures tire performance

B2B and B2C
-the firm is moving from selling a product to selling a service
-the firm is moving from a transactional relationship to a service relationship

Principle 1: N=1
-one customer experience at a time
-no single first can provide the range of skills
-if vendors do not align their resources to capitalise on the first two weeks the release is dead
-the consumers experience must be simple and intuitive

R=G
-approach to understanding the nature of there resource base of large firms and learning now to access high quality service
-large firms focus on sensing what is available and leveraging the innovations that are coming out of labs

N=1 and R=G social movement
-whether it is buying tires or renting movies we are migrating to an N=1 world

Video on GM and the New Age of Innovation