Business executive • MAY 11
Case studies on innovation management
This new series is based on the work of Keith Goffin and Rick Mitchell, two professors of innovation at Cranfield University.
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KeitH GOFFin is Professor of Innovation and New Product Development at Cranfield School of Management. He is also an eminent consultant on innovation to many well known organisations.
he cases selected for this series are illustrative of the diverse ways in which innovation takes place. It does not much matter in what industry or in which country
innovative firms operate. They all have the common factor of initiative – the wanting to do something better. Whether this results in new products, better people relations, greater productivity, or whatever goal the innovators have in view, the result is greater satisfaction and generally improved profits. But profits, though important, are not the only goal. To
succeed in today’s economic environment, innovation across the whole of a business operation is needed. From the way in which customers are treated, to the fundamental way of producing the product or service, a fresh inventive attitude is essential. Without a good innovative shake-up, there isn’t going to be much of a profit; this is what these cases are showing us. So get out and do it – it’s innovate or quite possibly bust!
most modern in the industry. Having more modern aircraft has helped SIA differentiate their service product; passenger areas have larger than average seating, and a French fashion house designed the décor and all of the service ware (including the tableware). In-flight services have been constantly enhanced and the list of firsts here is long: first in-flight telephones; first in-flight fax machines; first Dolby surround sound and personal video screens in coach class. SIA also led in the introduction of electronic tickets and is flexible in allowing flight confirmations by telephone, fax or email. It is interesting to note that competitors have quickly
copied the technology-based innovations, whereas the quality of the service provided by staff has been harder for competitors to follow. In managing service innovation, a key question is: how can service operations be made hard to copy?
Singapore Airlines – Sustainable competitive advantage
Singapore International Airlines (SIA) has regularly been voted the world’s best airline in surveys by travel magazines. The quality of its services is legendary. Its business strategy is based on a solid service product and attention to every detail of the way it is delivered. A first-to-market innovation strategy has been an important part of SIA’s approach for years. The SIA product itself – air travel – is reliable and the
RicK MitcHeLL is Visiting Professor of Innovation Management at Cranfield University School of Management. He has more than 30 years of innovation management experience.
range of routes offered has been extended through alliances with other airlines. The way the service is delivered by SIA is designed to achieve maximum customer satisfaction; this includes both people and technology related ideas. Cabin staff are renowned for being friendly and helpful and this has been strongly promoted through the Singapore Girl advertising. Staff receive longer and more detailed training than that offered by other airlines. For example, all cabin trainees spend time in homes for the aged in order to understand the problems faced by older travellers (a growing segment worldwide). Technology is also constantly updated and the aircraft fleet is one of the
Jura – Exclusive coffee machines and more
Do you like cappuccino? The Swiss company Jura specialises in premium coffee machines, with a range of models for both private and professional use. For example, the top selling ‘Impressa Z5’ was the first machine to offer single-button operation to produce a cup of really frothy cappuccino. With its headquarters in Niederbuchsiten in
Switzerland, the Jura company was founded in the 1930s and its first product was a special electrical iron for use in manufacturing shoes. In 1937 Jura designed its first coffee machine and it is this line of products that has grown into an international business. In 2008 Jura, which employs 335 people worldwide, generated revenues of 405 million Swiss Francs (268 million Euros). The Impressa Z5 was developed to make top-tasting
coffee and Jura’s R&D has expertise in coffee grinding, brewing, and in producing excellent frothy milk – this requires expert knowledge in a number of technical
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