Capgemini Consulting, the global strategy and transformation consulting brand of the Capgemini Group, has announced that its study conducted with the MIT Center for Digital Business -- ‘Digital Transformation: A road-map for billion-dollar organizations’ -- was ranked among the top 5 thought leadership publications of the last decade by Source*, following a thorough analysis of some 22,000 consulting reports globally.
Source, a leading market analyst firm for the consulting industry, assesses firms’ Thought Leadership performance through its White Space initiative. To celebrate 10 years of White Space, Source has identified five pieces of thought leadership from the last decade which have stood out and have been rated particularly highly. Capgemini Consulting was selected for a thought leadership research study revealing that only one third of large companies are succeeding in reshaping their business through digital technologies. The first phase of the study was published in November last year and phase two is due for launch later this year.
Didier Bonnet, one of the co-authors of the report and sponsor of Capgemini Consulting’s Digital Transformation programme, said: “We strongly believe that understanding the business implications of the new digital economy is at the top of the transformation agenda of business leaders. It is therefore very pleasing that Source has recognized the quality of our thinking on this critical topic.”
Fiona Czerniawska, Joint Managing Director, Source and Founder of White Space, said: “Capgemini Consulting’s work on digital transformation stands head-and-shoulders above other material in this space and will help put the firm in a strong position in this key market.”
White Space includes thought leadership from about 30 of the world’s leading consulting firms and provides detailed analysis. This analysis is updated regularly, giving up-to-date market intelligence on the state of the thought leadership market.
Showing posts with label experience economy. Show all posts
Showing posts with label experience economy. Show all posts
Tuesday, 25 September 2012
Sunday, 19 September 2010
Business Model Innovation, Stick to your Roots !!!
In my advisory practice we work a lot with large corporate companies. In our annual Global Innovation Survey we see the focus on Business Model Innovation and co-creation in the value chain getting more attention every year. The far majority of corporate companies invest in new business models to create sustainable value in a different way. A growing area for changing the current business model is to outsource not only supporting processes like Finance, IT or HR but also primary business processes such as Purchasing, R&D, Logistics and Manufacturing. Many well known Technology companies left their original core competences behind and become a Design, Marketing and Sales company (Philips is a clear example). I understand the business drivers behind this and that senior executives are seduced to go for short term sales growth and stock value. But I believe this is not a sustainable model for a leading innovator. In my opinion there is a need for a balance between R&D, Operations and Marketing & Sales within the boundaries of a corporate company in combination with an open innovation strategy to the outside world. Open innovation and co-creation seems to flourish if a company keeps substantially own core capabilities. The pitfall for large extend of outsourcing is that the company expect to manage the core process with contracts and SLAs. We see often that short term and top line successes are still hard to find. What is missing is a holistic view on collaboration an doing business! The leading success factor is all about trust and long term relationships.
I like to share two examples of successful business models in which core competences are not outsourced, the focus is not on short term money but collaboration with the outside world is based on many different but integrated aspect like economics, politics, social integration and education, green & sustainability, new style of leadership.
The first example is the Region of Voralberg in Austria. This is one of the most innovative industrialized export oriented region of traditional Europe. Many successful SMEs, traditional craft manufacturers like metal, wood, nutrition, electro, differentiate based on Product (high quality), Design (Modern Trendsetting) and Functionality (usable). There collaboration network enables them to find new product-market-combinations in a high frequency. The schools and education programs are a close partner in their network. The Region is relative small (less than 400.000 habitats) and accelerate on smartness, trust and regional proud rather than volume and power. (source: Prof. GJ Hospers, University Twente)
The second example is American Apparal. American Apparel is a vertically integrated manufacturer, distributor and retailer, based in downtown Los Angeles, California. We currently employ approximately 10,000 people globally (about 5,000 in LA), and operate more than 285 retail stores in 20 countries.
Within our business model, knitting, dyeing, cutting, sewing, photography, marketing, distribution and design all happen in the company's facilities in Los Angeles. The company operates the largest garment factory in the United States, at a time when most apparel production has moved offshore. With our recently opened stores in China, we are now selling Made in USA clothing in the largest consumer market in the world.
American Apparel leverages art, design and technology to advance the business process, while continuing to pioneer industry standards of social and environmental responsibility in the workplace.
(source: americanapparel website)
The most interesting thing about these examples is the strong vision and leadership on sustainable innovation. The strong believe in integrating the most important aspect of human life and living environment into the business model of their companies. It is not about short term, it isn’t about making fast and a lot of money, it isn’t about power play, it is about honesty, fairness, trust and real collaboration for every involved partner. And they are and will be successful! In my opinion the most corporate organization can learn a lot of these role models.
I like to share two examples of successful business models in which core competences are not outsourced, the focus is not on short term money but collaboration with the outside world is based on many different but integrated aspect like economics, politics, social integration and education, green & sustainability, new style of leadership.
The first example is the Region of Voralberg in Austria. This is one of the most innovative industrialized export oriented region of traditional Europe. Many successful SMEs, traditional craft manufacturers like metal, wood, nutrition, electro, differentiate based on Product (high quality), Design (Modern Trendsetting) and Functionality (usable). There collaboration network enables them to find new product-market-combinations in a high frequency. The schools and education programs are a close partner in their network. The Region is relative small (less than 400.000 habitats) and accelerate on smartness, trust and regional proud rather than volume and power. (source: Prof. GJ Hospers, University Twente)
The second example is American Apparal. American Apparel is a vertically integrated manufacturer, distributor and retailer, based in downtown Los Angeles, California. We currently employ approximately 10,000 people globally (about 5,000 in LA), and operate more than 285 retail stores in 20 countries.
Within our business model, knitting, dyeing, cutting, sewing, photography, marketing, distribution and design all happen in the company's facilities in Los Angeles. The company operates the largest garment factory in the United States, at a time when most apparel production has moved offshore. With our recently opened stores in China, we are now selling Made in USA clothing in the largest consumer market in the world.
American Apparel leverages art, design and technology to advance the business process, while continuing to pioneer industry standards of social and environmental responsibility in the workplace.
(source: americanapparel website)
The most interesting thing about these examples is the strong vision and leadership on sustainable innovation. The strong believe in integrating the most important aspect of human life and living environment into the business model of their companies. It is not about short term, it isn’t about making fast and a lot of money, it isn’t about power play, it is about honesty, fairness, trust and real collaboration for every involved partner. And they are and will be successful! In my opinion the most corporate organization can learn a lot of these role models.
Sunday, 3 May 2009
Innovation paradox: entrepreneurship versus the power of the corporate staff departments
International researches (as from 2006 up to and including most recent) indicates from that the members of the Council of Governing Board continue consider Innovation as the way to growth increase and secure continuity. The Credit Crisis hardly change anything in these thoughts.
The Top 3 most significant challenges for Innovation still remains: successful organizing innovation, increasing the speed of go-to-market and proving the profitability of innovation. Therefore, it is not a matter of new ideas but the realization of those ideas. In my opinion, the reason for this problem is caused by the phenomenon of:
The law of the Organization Gravitation.
The Organization Gravitation is the (economic and cultural) strength which prohibits organizational boarders to adapt to new ideas.
The key drivers behind this strength is the need of people to maximize continuity of their current status and maximizing security. If a critical mass of people in an organization sharing this need is reached, then they will be prepared to give up their individual freedom (free-thinking, experimenting, freedom of speech) for security provided by the organization.
This way company rules, control mechanisms, technocracy and bureaucracy occurs. The aim of company’s technocratic staff departments and corporate centers is carrying out the control and maintain the rules: watch-dogging the company’s status quo. And then the organization gravitation is born.
In practice the Organization Gravitation has proven not be a constant but dependent. As the new idea is proportionally more radical (further outside the existing frameworks of the organization) the organization gravitation will increase. As the outside world becomes more unsafe the organization gravitation will increase proportionally. As the lack of vision and leadership is stronger the organization gravitation will increase.
In practice we see beautiful examples of this law and its developments.
Radical innovation within the existing limits of large organization appears to be difficult. Dr. Axel Rosenø describes in the presentation “Developing Radical Innovation Capabilities in Established Firms” the tensions between the existing organization and radical innovation. Philips has chosen to spin out many innovations in order to avoid the Organization Gravitation (see also Henry Chesbrough and open innovation).
The insecurity in the outside world has increased enormously by the Credit Crunch. As a result, the (corporate) rules have increased enormously. We see a strong tendency of centralizing the power to the corporate centers with the aim far-reaching standardization, shared service centers and cost cutting projects. Nearly every organization starts to behaves as a herd animal: in search of the security and surviving in the herd. But now is the moment to step outside the herd and act anti-cyclics. Again in the world of first class innovation the example comes from discounter Ryanair: not in spite of, but thanks to the economic crisis we are able to manage significant discount for the purchase of new, better planes (Michael O'Leary, the director of Ryanair). Examples of lack of vision and leadership are not only restricted to the businesses but also in politics this is not an exception. Although Obama and Merkel give it a fair try.
If the Organization Gravitation has reached a certain scope a so-called Organization Black Hole is born: an organization with maximum closed borders and internal autism for renewal and entrepreneurship. The attraction of the Organization Gravitation is so strong that escaping becomes impossible is. Only a terrible impact (bankruptcy or take-over) can break open the borders. By then Entrepreneurs and Intrapreneurs probably have left the organization already.
The Top 3 most significant challenges for Innovation still remains: successful organizing innovation, increasing the speed of go-to-market and proving the profitability of innovation. Therefore, it is not a matter of new ideas but the realization of those ideas. In my opinion, the reason for this problem is caused by the phenomenon of:
The law of the Organization Gravitation.
The Organization Gravitation is the (economic and cultural) strength which prohibits organizational boarders to adapt to new ideas.
The key drivers behind this strength is the need of people to maximize continuity of their current status and maximizing security. If a critical mass of people in an organization sharing this need is reached, then they will be prepared to give up their individual freedom (free-thinking, experimenting, freedom of speech) for security provided by the organization.
This way company rules, control mechanisms, technocracy and bureaucracy occurs. The aim of company’s technocratic staff departments and corporate centers is carrying out the control and maintain the rules: watch-dogging the company’s status quo. And then the organization gravitation is born.
In practice the Organization Gravitation has proven not be a constant but dependent. As the new idea is proportionally more radical (further outside the existing frameworks of the organization) the organization gravitation will increase. As the outside world becomes more unsafe the organization gravitation will increase proportionally. As the lack of vision and leadership is stronger the organization gravitation will increase.
In practice we see beautiful examples of this law and its developments.
Radical innovation within the existing limits of large organization appears to be difficult. Dr. Axel Rosenø describes in the presentation “Developing Radical Innovation Capabilities in Established Firms” the tensions between the existing organization and radical innovation. Philips has chosen to spin out many innovations in order to avoid the Organization Gravitation (see also Henry Chesbrough and open innovation).
The insecurity in the outside world has increased enormously by the Credit Crunch. As a result, the (corporate) rules have increased enormously. We see a strong tendency of centralizing the power to the corporate centers with the aim far-reaching standardization, shared service centers and cost cutting projects. Nearly every organization starts to behaves as a herd animal: in search of the security and surviving in the herd. But now is the moment to step outside the herd and act anti-cyclics. Again in the world of first class innovation the example comes from discounter Ryanair: not in spite of, but thanks to the economic crisis we are able to manage significant discount for the purchase of new, better planes (Michael O'Leary, the director of Ryanair). Examples of lack of vision and leadership are not only restricted to the businesses but also in politics this is not an exception. Although Obama and Merkel give it a fair try.
If the Organization Gravitation has reached a certain scope a so-called Organization Black Hole is born: an organization with maximum closed borders and internal autism for renewal and entrepreneurship. The attraction of the Organization Gravitation is so strong that escaping becomes impossible is. Only a terrible impact (bankruptcy or take-over) can break open the borders. By then Entrepreneurs and Intrapreneurs probably have left the organization already.
Sunday, 6 April 2008
Business Model Innovation: Rational versus Emotional value performance
In my Innovation Team we work with clients on innovation and the influence on their current business model. We analyze the current business model using a framework based on the ideas of Alexander Osterwalder. We focus on the business model impact of the innovation portfolio of the client. In addition to the financial (Rational) performance of the business model we analyze the emotional side of the performance as well. We find out that two value performance indicators can be measured and managed on the emotional side of the business model: Reputation and Experience.
Reputation is the way stakeholders think of, speak about and act upon the image of your company. If you can create a company that people identify with, that is responsive to their sense of values, justice, fairness, ethics, compassion and appreciation, they will help you to be successful [Walter Haas, Jr., Chairman of Levi-Strauss].Reputation can be measured and managed. Good examples and cases can be tracked from the Reputation Institute. RI is the leading international organization devoted to advancing knowledge about corporate reputations and to providing professional assistance to companies interested in measuring and managing their reputations proactively.
Experience is a well known term in marketing for many years. In relation to innovation a new term is out: Experience Innovation. Clients and customers choose products and services more and more for emotional reasons. The get a first idea of what Experience means look at Wikepedia: Value can be placed on a continuum from undifferentiated (referred to as commodities) to highly differentiated. A possible classification for each stage in the evolution of value is:
- If you charge for undifferentiated stuff, then you are in the commodity business.
- If you charge for distinctive tangible things, then you are in the goods business.
- If you charge for the activities you perform, then you are in the service business.
- If you charge for the feeling customers have because of engaging you, then you are in the experience business.
- If you charge for the benefit customers (or "guests") receive as a result of spending that time, you are in the transformation business.
Experience can also be measured and managed. In 2005 Thomas Thijssen, director of research of the European Centre for the Experience Economy developed, together with Ed Peelen (Nyenrode Business School) and Susan Bink (University of Amsterdam), a new tool to measure the impact of meaningful experiences.
To become successful in business model innovation is is vital to include the two additional building blocks in the business model framework: REPUTATION and EXPERIENCE.
Reputation is the way stakeholders think of, speak about and act upon the image of your company. If you can create a company that people identify with, that is responsive to their sense of values, justice, fairness, ethics, compassion and appreciation, they will help you to be successful [Walter Haas, Jr., Chairman of Levi-Strauss].Reputation can be measured and managed. Good examples and cases can be tracked from the Reputation Institute. RI is the leading international organization devoted to advancing knowledge about corporate reputations and to providing professional assistance to companies interested in measuring and managing their reputations proactively.
Experience is a well known term in marketing for many years. In relation to innovation a new term is out: Experience Innovation. Clients and customers choose products and services more and more for emotional reasons. The get a first idea of what Experience means look at Wikepedia: Value can be placed on a continuum from undifferentiated (referred to as commodities) to highly differentiated. A possible classification for each stage in the evolution of value is:
- If you charge for undifferentiated stuff, then you are in the commodity business.
- If you charge for distinctive tangible things, then you are in the goods business.
- If you charge for the activities you perform, then you are in the service business.
- If you charge for the feeling customers have because of engaging you, then you are in the experience business.
- If you charge for the benefit customers (or "guests") receive as a result of spending that time, you are in the transformation business.
Experience can also be measured and managed. In 2005 Thomas Thijssen, director of research of the European Centre for the Experience Economy developed, together with Ed Peelen (Nyenrode Business School) and Susan Bink (University of Amsterdam), a new tool to measure the impact of meaningful experiences.
To become successful in business model innovation is is vital to include the two additional building blocks in the business model framework: REPUTATION and EXPERIENCE.
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