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18P086 SM Bikanerwala
18P086 SM Bikanerwala
18P086 SM Bikanerwala
Submitted by :
Kshipra Dwivedi 18P086
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Strategic Innovation
Strategic innovation is an organization's process of reinventing or redesigning its corporate strategy
to drive business growth, generate value for the company and its customers, and create competitive
advantage. This type of innovation is essential for organizations to adapt to the speed of
technology change.
Companies employing strategic innovation do not necessarily need to make changes to the goods
and services they sell to their customers, nor to the technologies that support these products, to
be successful. Strategic innovation often refers to innovation projects that occur at the executive
level.
Innovation = Invention + Commercialization
Strategic innovation considerations
Innovating corporate strategies could include the following considerations: what services or
products need to be reinvented or developed; what markets to compete in; what business models
to develop; how to optimize business processes; how to expand the customer base; how to position
the company's brand in relation to target customers; how to make the supply chain and value chain
more efficient; and go-to-market strategy.
Executing strategic innovation processes
Although strategic innovation initiatives are led by senior leaders, they need to foster a culture of
innovation that encourages collaboration across business teams and functions.
Well-known examples of companies that have seen success applying strategic innovation include
Apple, which expanded the use of computers to individuals; IBM, which expanded from selling
hardware to providing whole solutions; Ikea, which standardized the type of product it sold (flat
pack); and Nintendo, which expanded its customer base to women, adults and the elderly with the
launch of Wii.
Desirable
to
consumer
Possible Viable in
with Innovation
marketplace
technology
Characteristics of Innovation
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Innovation vary in extent or magnitude i.e. degree to which one deviates from the past
It is closely related to problem solving since generation & implementation of ideas for
change never transpire without difficulty
A final characteristic is the impact of the change, the significance or range of its effects
Goals of Innovation
• Improving quality
• Creation of new markets
• Extension of the product range
• Reducing labor cost
• Improving production process
• Reducing materials
• Reducing environmental damage
• Replacement of products/services
• Reducing energy consumption
• Conformance to regulations
Sources of Innovation
Long tenure in Management : Managerial tenure apparently provides legitimacy & knowledge
of how to accomplish a task and obtain desired outcomes.
Interunit Communications : Innovative organizations are high users of committees, task forces,
cross-functional teams that facilitate interaction across departmental lines
Types of Innovation
Incremental Innovation
Incremental Innovation is the most common form of innovation. It utilizes your existing
technology and increases value to the customer (features, design changes, etc.) within your existing
market. Almost all companies engage in incremental innovation in one form or another.
Examples include adding new features to existing products or services or even removing features
(value through simplification). Even small updates to user experience can add value, for example
below is an older version of Constant Contact’s email schedule page:
Disruptive Innovation
Disruptive innovation, also known as stealth innovation, involves applying new technology or
processes to your company’s current market. It is stealthy in nature since newer tech will often
be inferior to existing market technology. This newer technology is often more expensive, has
fewer features, is harder to use, and is not as aesthetically pleasing. It is only after a few iterations
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that the newer tech surpasses the old and disrupts all existing companies. By then, it might be too
late for the established companies to quickly compete with the newer technology.
There are quite a few examples of disruptive innovation, one of the more prominent being Apple’s
iPhone disruption of the mobile phone market. Prior to the iPhone, most popular phones relied
on buttons, keypads or scroll wheels for user input. The iPhone was the result of a technological
movement that was years in making, mostly iterated by Palm Treo phones and personal digital
assistants (PDAs). Frequently you will find that it is not the first mover who ends up disrupting
the existing market. In order to disrupt the mobile phone market, Apple had to cobble together
an amazing touch screen that had a simple to use interface, and provide users access to a large
assortment of built-in and third-party mobile applications.
Architectural Innovation
Architectural innovation is simply taking the lessons, skills and overall technology and applying
them within a different market. This innovation is amazing at increasing new customers as long
as the new market is receptive. Most of the time, the risk involved in architectural innovation is
low due to the reliance and reintroduction of proven technology. Though most of the time it
requires tweaking to match the requirements of the new market.
In 1966, NASA’s Ames Research Centre attempted to improve the safety of aircraft cushions.
They succeeded by creating a new type of foam, which reacts to the pressure applied to it, yet
magically forms back to its original shape. Originally it was commercially marketed as medical
equipment table pads and sports equipment, before having larger success as use in mattresses.
This “slow spring back foam” technology falls under architectural innovation. It is commonly
known as memory foam.
Radical innovation
Radical innovation is what we think of mostly when considering innovation. It gives birth to new
industries (or swallows existing ones) and involves creating revolutionary technology. The
airplane, for example, was not the first mode of transportation, but it is revolutionary as it allowed
commercialized air travel to develop and prosper.
The four different types of innovation mentioned here – Incremental, Disruptive, Architectural
and Radical – help illustrate the various ways that companies can innovate. There are more ways
to innovate than these four. The important thing is to find the type(s) that suit your company
and turn those into success.
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Value Innovation
Value innovation is one of the most prominent programmatic approaches to innovation currently
in use. It is different from building layers of competitive advantages & does not means segmenting
market & accommodating customer needs. It’s main focus is on offering those products & services
which creates a superior buyer value in existing markets & enables a quantum leap for the firm to
create new markets. Value Innovation also differs from technology innovation. New technology
developed does not becomes a value innovation unless it is cheap enough for MASS BUYERS
Barriers to Innovation
External Barriers
Market-Related Barrier
Government & its Policies
Others (Technical, Societal, & Inter
Organizational Barriers)
Internal Barriers
People Related
Structural
Strategy Related
Reward Innovation
Without sponsorship for innovation, it's difficult for people to feel safe to experiment, especially
if individual goals don't align with organizational goals. Inevitably, the daily fire drill takes
precedence. If innovation is truly important to the company's purpose, it should be built into
“how” people get rewarded (annual compensation) and the P&L (experimental budgets). Some
organizations celebrate and reward individual or team innovation successes through rituals,
activities that can help nudge the culture of your team or organization toward behaviors that
support creativity.
Embrace Constraints
It's counterintuitive to some, but constraints can create clarity. For example, the reason The
Terminator story rests on the premise of an android from the future coming back to the "present"
was due to a limited budget—they didn't have enough for special effects of the future
Clarity of purpose enables people, teams, and organizations to design the right constraints that
create conditions for innovation to emerge and be applied. Like the NASA Mars Rover team: they
had a limited budget, limited weight, and limited time. However, their sole goal was to send 6
wheels onto Mars. Constraints can be inspiring.
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Bikanerwala : A Never-Ending Quest
to Delight Customers
Food Industry in India
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Bikanervala :Introduction
The outlets are owned by company, by directors or by franchisees. Current emphasis is on
company-owned outlets for better control over quality and customer satisfaction.
Bikanerwala : Offerings
Bikanerwala offers a range of pocket friendly range of food items starting from sweets, fast food
and ethnic cuisines.
Need: To maintain a high quality and standard in food and customer service across all restaurants
Innovations
● Traditional workforce to maintains authenticity(& not professional chefs), complemented
by highly skilled employees
● Dedicated customer service department-fast and efficient
● Subtle system for assessing customer satisfaction
● Centralized cooking for uniformity, maintaining high quality raw materials
● Performance based variable pay for employees
Need: Operational efficiency and matching international standards with respect to hygiene and
ambience
Innovations
● Investment in ERP for billing, production and inventory management
● Clearly defined SOPs for aspects like taking order, food handling, etc.
● Implementing 5S Principles in cleanliness and efficiency parameters
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SWOT Analysis
Challenges Faced
Need to meet ambience and quality standards : With new multinational food outlets chains
entering India, the customers have started comparing Indian eating joints to international
standards. Bikanerwala has to improve to meet these standards with respect to ambience and
hygiene.
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Challenges in getting trained and qualified workers and high attrition among workers :
With high unity within karigars, they leave in groups. Due to this, the attrition rate is very high.
Also, there are no institutes providing training regarding ethnic sweets. This develops the challenge
in getting trained and qualified workers.
Need of developing options to tap the increasing market potential : With increasing market
potential from the year 2013 to 2018, the steps need to be taken to capture this potential.
Midnight Menu : Considering the potential of IT sector shift system, the midnight menu
can be defined. This would focus on needs of high earning individuals.
Outdoor catering : The expertise in arranging parties at the current outlets could be
utilized by extending in terms of outdoor catering. This could include parties, chat centres,
occasions like get-togethers etc.
Special offers : Special offers to attract select target segment such as ladies special
offerings
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