The author argues that The best way for any organizaton to detect, define and share customer insights is hiding in plain sight: Your own employees can help you create an insight-driven organization. He shows how canvassing the thoughts, fears and experiences of customers with your own managers and employees has three key advantages: The 'researcher' knows the subject matter; he/she can be more creative than an outsider about designing the experience; and you can save untold market research budget dollars. In the end, he shows that in an era of Big Data, 'big qualitative insights' remain a powerful competitive weapon.
Hardly a day goes by without the announcement of a promising new frontier for Artificial Intelligence (AI), and corporate investments in Big Data are touted regularly for the dividends they yield. But we don't hear much about the demand created by this rising 'supply': In a world of Big Data and AI, the demand for sound and distributed judgment is increasing quickly. The author argues that 'qualitative judgment'-the ability to make a decision based on a personal interpretation of the context and the available facts-has never been more important. He provides four steps for leaders to take in order to 'democratize' judgment in their organization.
Most leaders recognize that in today's innovation-obsessed economy, they need to look beyond their own walls and collaborate externally with other organizations in their ecosystem to create new products and solutions. While the need for collaboration has been well-documented in the business-to-consumer (B2C) context, it is less so in the business-to-business (B2B) space. The authors show that, when done right, B2B collaborative innovation can generate benefits in four distinct areas, including decreased risk and increased trust. Based on their work with leading companies like BASF, Daimler and VentureMed, they describe the four 'traps' that collaborators face, and how to surmount them.
Without realizing it, even well-managed companies versed in modern practices can generate an environment that is hostile to innovation. As a result, the authors argue that large companies need to have a distinct Innovation Unit, headed up by a senior executive who reports directly to the CEO. They provide a framework for designing the mission and scope for an in-house Innovation Unit, anchored by seven key tasks for the firm's innovation leader, including 'scanning for best practices' and 'designing shelter for innovations'.
The author argues that far too many companies continue to focus on a numbers- and data-driven approach to innovation. Strategy and innovation, he says, should not be a mere exercise in analytics, but a qualitative process in which analysis serves the insights born out of individual observation and reflection. He explains why so many business people are uncomfortable with the 'qualitative' world, providing six strategies for improving qualitative judgment in an organization.
This case examines the unique business model of Ristorante D'O, a high end gourmet restaurant located near Milan, Italy. Founded by Chef Davide Oldani, D'O offers meals at approximately one-third the price of other Michelin starred restaurants. Oldani has made this business model profitable by making a conscious set of operating strategy choices (menu, meal design, service process, lay-out, reservation process) that reduce waste and inefficiency, while preserving quality. The case enables students to understand how cost-quality trade-offs can be altered through creative operating strategies, and sufficient data are available to analyze the operating model in depth. A second focal point of the case concerns Oldani's choices for growth. The wait list for D'O is currently 18 months. He can presumably open another D'O at a different location. At the time of the case, however, is considering opening a new restaurant in the same vicinity as D'O that would operate at an even lower price point. Case debate can center around whether this new restaurant format makes sense from a strategic point of view, and, in particular, whether the capabilities and know-how acquired in operating D'O are applicable to the new restaurant. The deeper issue in the case concerns how businesses based on the creative talent of an individual (like Chef Oldani) can grow, without losing what makes them special.
Fiat ended its 27-year absence in the North American automobile market when the first Cinquecento (500)-a very small, iconic Italian car that had strong sales in Europe-was delivered on March 10, 2011. The Italian automaker re-entered the market through an alliance with Chrysler, the American automaker Fiat acquired in April 2009. For Laura Soave, Chrysler Group's head of Fiat Brand North America, the first delivery marked a watershed in a journey that began 12 months before when she first took responsibility for re-launching the Fiat brand in North America. As the first product of the Fiat-Chrysler alliance, the outcome of the Cinquecento launch would indicate how the integration of operations, and in particular the sharing of technology, platforms, components, manufacturing plants, and distribution networks would drive the long-term health of both Fiat and Chrysler. This case looks at the various strategic and operational challenges Soave faced throughout the process.