1. Da Vinci Final_Layout 1 2011/06/27 2:08 PM Page 29

THE DA VINCI REPORT WI N TE R 2011 I SSU E

29

and technological direction: n Value proposition / Strategic

intent. The value proposition of Tirhani Auctioneers’ innovative initiative, called AuctioNet, is to create a network of nine independent auctioneering companies (one network partner per province) and an unlimited number of network associates.

n Market segment. AuctioNet deliberately seeks to transform the auctioneering industry (both movable and immovable asset categories) by targeting previously disadvan- taged auctioneering companies and empowering them with skills and knowledge.

n Value chain position / Integral process. As shown in the four quadrants of AuctioNet’s portfolio of service in the figure below, the company will offer auctioneering services, marketing, online portal and ben- efits such as database and global reach.

n Cost structure and margins. AuctioNet will charge minimal rates (10 percent royalty on gross commission and market-related charges for each auctioneering service rendered).

n Value network / Partnerships This will comprise auctioneering companies (network partners and associates) as well as real estate agents (associates).

n Competitive strategy. AuctioNet’s objective is to capacitate network partners and associates to offer innovative auctioneering services off a live and online platform.

n Business model. AuctioNet’s business model simul- taneously offers network partners and associates both a common identity and independence.

References AuctioNet, 2010: AuctioNet service offering presented as part of the strategic plan. http://www.auctionet.co.za. Date of Access: 12 October 2010.

Adair, J. (2007). Leadership for Innovation: How to Organise Team Creativity and Harvest Ideas. Kogan Page. London.

COSTS 10% Royalty on Gross Commission

Charge for Auction Services per service rendered

Adair, J. (2009). Effective Innovation: The Essential Guide to Staying Ahead of the Competition. Pan Books. London.

Baumgartner, J. Innovation Process Manage- ment (IMP). jpb.com

Baumgartner, J. (2005). The 10 Creative Myths: Article published in Report103, 22 November 2005 issue. jpb.com

Bessant, J. (2009). Essential Managers: Innovation. Dorling Kindersley Limited. London.

Burns, T. & Stalker, G. M. (1966). The Manage- ment of Innovation. Tavistock Publica- tions.

Da Vinci Notes. Services Seta Cohort (2010). Masters MOTI (Management of Technology and Innovation): Management of Innova- tion Module

Dess, G. G., & Beard, D. W. (1984). Dimen- sions of organisational task environments. Lexington, MA. Lexington Books.

Source: AuctioNet (2010) Conclusion

Innovation is not a “one size fits all” process but requires solutions tailor-made to each organisation. In addition to innovation develop- ment, broader areas of organisa- tion and project development must take place.

Today, more than ever before, in- novation is a key part of every or- ganisation’s business strategy and operations. Among other bene- fits, it enables companies to: n Create top-line growth with new products and business models.

n Yield bottom-line improvement with productivity and process improvements.

n Improve sales. n Improve relationships with sup-

pliers (through co-innovation projects).

n Define superior products and services for customers.

n Help management to adapt to changing business conditions.

With improved innovation compe- tency, most companies can signifi- cantly improve top- and bottom line performance, gain a competi- tive advantage and better adapt themselves to new challenges. The successful organisations of the future will be those that de- sign processes that range from in- cremental improvements to radical leaps forward.

The idea is to challenge employ- ees to get out of the “If it ain’t broke, don’t fix it” mode of think- ing so they constantly find ways of improving products, services, processes, business models and markets.

Fox, M.L. (1966). Creative Thinking E-book. Key Myths About Creativity. Sly as a Fox.com.

Gladwell, M. (2005). Blink: The Power of Thinking without Thinking. Little, Brown and Company. Great Britain.

Gladwell, M. (2008). Outliers: The Story of Success. Little, Brown and Company. Great Britain.

Innovation in Practice. (10 May 2009). The Corporate Perspective on Innovative Meth- ods. www.innovationinpractice.com.

Nelson, R. R., & Winter, S. G. (1982). An evo- lutionary theory of economic change. Cam- bridge, Mass. Belknap Press of Harvard University Press.

Phillips, F [Ed.]. (2009). Maastricht School of Management Series in Intercultural and Global Management: Managing Innova- tion, Technology and Entrepreneurship. Meyer and Meyer Media. UK.

Real Innovation Commentary. (28 November 2007). The Four Archetypes: Commentary by Cass Pursell. www.realinnovation.com/commentary/

Schwartz, P. (1991). The Art of the Long View. John Wiley & Sons.

Sternburg, R.J. (1988). The Nature of Creativ- ity. Cambridge University Press.

Torrance, E.P. (1984). The Role of Creativity in Identification of the Gifted and Tal- ented: The Gifted Child Quarterly. 28, No.4.

Von Oech, R. (2008). A Whack on the Side of the Head: How you can be More Creative. Business Press.

Wibler, K. (2003). Thought as Passion. The University of New York Press.

September 2011 | Management Today 37

MANAGEMENT OF INNOVATION

ONLINE PORTAL Online

Auction Portal

International Presence

SMS Email

Social Networking Print media Advertising

MARKETING

AUCTION SERVICES

Cataloguing Loading Clerking Dispatch

Bid calling

Database

National Footprint Common Identity

Maintain your identity

Access to skills base of the entire Nnetwork Diverse Skills Base

BENEFITS