Innovate or Die?

Trends | Door Jan Middelkamp

13 January 2016 20 reacties

In his famous book, The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail, Christensen points out to an important dilemma in terms of needs for innovation. The most successful companies are successful because they listened to their customers and invested in technologies and products to address the needs of their (future) customers. But these are the same reasons why these companies failed: they listened to their customers and enjoyed the ‘’safe-zone’’ for too long! Sometimes you literally have to Kill the company (read this book of Bodell) before setting up something truly innovative. 

Biowearables
Around the globe, there are many examples of interesting innovations, like Biowearables. Laura Hill published a short article on WELLTODO (November 26th 2015) on the future of wearables, discussing Biowearables. The so-called Tech Tats, high-tech tattoos, have the capability to collect, store, send and receive data much like a Fitbit or an Apple Watch. But instead it uses skin-mounted components and conductive paint to create a circuitry that lives on the human body.

Within the health and fitness sector, Ray Algar discusses the success of Boutique fitness studios. He states that the strategic profile for a studio differs from traditional fitness clubs (gyms). Boutiques studios like SoulCycle, PT studios, etc choose to eliminate the membership model, which it believes to be unnecessary in forging engagement with customers. The range of facilities is reduced and it raises its strategic emphasis in six factors upon which the studio wishes to build its reputation. 

Boutique studios invest more in design to create a distinctive brand image which communicates to customers that they are stepping into a club that looks and feels more a retail store than gym. The use of enabling technologies is increased, which provides customers with a greater sense of autonomy which is very empowering, check online for class availability, select a preferred bike or place in a class, book, pay and charge ancillary items such as rental items, food and water to a stored payment card, creating a simple and cashless experience. Activity specialisation is critical because the studio’s long-term success is dependent on it developing a deep expertise.

 


Do you innovate or Die?
To investigate your need or opportunity for successful innovation, the two models can be used: the Product Lifecycle Model and the Boston Consultancy Group (BCG) Matrix. Usually, the lifecycle of a product, program, service or even a business model, is described chronologically in the following stages: development, introduction, growth, maturity and decline. When products are at the end of their lifecycle, there is a need for innovations to maintain the level of business. The same with the BCG Matrix. Analyse your situation before it is too late!

The Boutique studios made it clear that innovation is not limited to new products. Innovations are can be related to products, process innovation, market innovation, business model innovation, and social & environmental innovation. For example the Boutique fitness studios mostly do not offer totally new fitness products or programmes, but they do address new markets (millennials) and use new processes and business models. 

More about innovation? Visit the EHFF in Cologne, April 6th 2016: www.europeactive.eu!

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