P.S. Tell me if I’m making any sense on this.
Tuesday, July 18, 2006
ON LEADERSHIP
P.S. Tell me if I’m making any sense on this.
Thursday, July 06, 2006
INNOVATION 101
Read my professor’s column last Tuesday (July 4) at Businessworld. Professor Cruz’s latest article is entitled “Managing Innovations”. The article is all about Massachusetts Institute of Technology’s Sloan School of Management’s latest study on innovation penned by Sawhney, Wolcott, and Arroniz and is entitled, “The 12 Different Ways for Companies to Innovate”. The authors defined business innovation as “the creation of substantially new value for the customers and the firm by creatively changing one or more dimensions of the business system”. They go on to list 12 dimensions that are subject to innovation. A few points should be emphasized here. Innovation is not equal to new invention or breakthrough technology. Rather innovation is about in my interpretation of the article, redefining value, i.e., what is valuable to customer or better yet restructuring the value offering into a more superior value for customer. Furthermore, innovations can be made in several dimensions, which include not only the product but also the entire business. In layman’s term, there are many facets or “fronts” in the businesses where innovation could be made to offer customer a much more superior value that they needed. These dimensions are:
1. Offerings,
2. Platform,
3. Solutions,
4. Customer’s (Need and Satisfaction),
5. Customer Experience,
6. Value Capture,
7. Processes,
8. Organization,
9 .Supply Chain,
10. Presence,
11. Networking,
12. Brand.
My professor ended his article here (Of course, he defined each of them). But being a business school graduate, I can’t help but be amazed by the power of this new framework on innovation. Of the 12 dimensions, I felt that I could classify them into 4 broad but interrelated categories (I’m no genius by the way, so if you have other opinions please let me know). These categories are Product and Services (#1 – 3), Customer Relationship (#4 – 6), Process Efficiency (#7 – 9), and Distributions/Marketing (#10 – 12).
Offerings, the first dimension simply refers to the product and service offerings of a company. It is fairly obvious that innovation of this type can happen by simply introducing new product variants or a better improve version of the existing products. An example of the former would be the introduction of new flavors to an existing food product or beverage while for the latter; the higher “speed” of Pentium computers would be a great example.
Platform, the second dimension refers to the base technology from which all subsequent new products are created. The example that came to my mind is the computer CPU chip. Currently, the available processor chip in wide use is the Pentium chip but a new chip is being marketed now, the Xeon chip, which functions like a dual core processor, an entirely different technology from the Pentium.
Solutions refer to the combination of end products and services that a company offers to help solve customers’ needs. An example of an innovation in solutions is event management. Used to be, people or organization had to do it themselves in order to stage an event like call up the catering, reserve a place, set up the props, etc. Now with event management, a single entity would be doing all the legworks and people or organization just call them up. Of course, there are other examples of “solutions” out there and the most popular now is the call center.
Customer, which in my understanding refers to the discovery of untapped customer needs. However, this is not that simple. It is possible that the product or services is already present but the customer is unaware of the features of the product offering due to poor attention given or people aren’t aware of the “creative” features of a product or technology. A classic example of innovation of this type would be text messaging. The technology and the feature are already present then but firms and the market aren’t able to fully exploit its potential but once it did, the outcome is far beyond everybody’s imagination.
Customer Experience refers to the total sensory and emotional stimulation that the customer had while “consuming” the product or services. The advent of fast food is one such example. Before McDonalds came into the picture, food service is not only slow but also inconsistent and expensive in some cases. McDonald’s offer of quick service, cleanliness, and quality revolutionizes the entire food service concept.
Value Capture, according to the article is about generating new revenue stream while offering value product. The example I could think of relating to innovation of this type is SM malls. Everybody knew that SM is in the real estate business of selling/renting out commercial spaces inside a gigantic mall to different retailers and merchants. Their primary source of income is in the rentals. However, lately, one could find billboard ads conspicuously littering the place to take advantage of high volume of traffic. Of course most of the ads are related to the retailers the mall host but that is a new revenue stream for a real estate company. This is an innovation in the sense that not only it offers customer information but in the process, it also generates revenue for the company. Internet web sites are prime examples of this innovation. Most web sites gave content away for free but generate revenue through ads viewed or what the industry termed as “clicks”.
Processes refer to the set of activities related to internal operations. By internal operations, it doesn’t merely meant production processes. It also encompasses other activities like accounting, customer support, etc. The idea of innovation at this stage is to improve efficiency and thus lower cost.
Organization refers to the reporting relationship between units. It also refers to the structure in which “work” is divided, i.e., to roll out a car, several work should be done, production, accounting, sales, etc. and the people - units that handle those work. Innovation of this type would mean to simplify the communication line such that responses could be made not only immediately but also accurately. Decision time would also be trimmed. Furthermore, “work” procedures would be simplified, streamlined, and made efficient as well as cost effective.
Supply Chain refers to the activities relating to the transmission of information on product requirement from the end customer to the primary suppliers and the delivery and transportation of the materials and products from the suppliers to the end customers. Innovation of this type centers on simplifying, reducing the communication link between the end users and the suppliers while at the same time improving the reliability, quality, and the speed of delivery of products from suppliers to end users. The last 3 types of innovation can be categorized as innovation on efficiency. Here, innovation is not merely about introduction of the expensive and latest technology but rather it is all about better control and coordination. There are many tools to identify possible “innovation” on efficiency. Tools like TQM, Reengineering, Six Sigma, Lean Manufacturing System are some of the prime examples.
Presence refers in my view to the visibility of the product or service to the target market. Presence in my understanding has two forms, namely, market presence and presence in the mind. The former deals with distribution while the latter talks about advertisements. Innovation in distribution refers to the use of creative alternative means of distribution like selling through the World Wide Web. Advertising innovations would be using new mediums other than the established ones like tri – media campaign, sponsorships etc. An example I could think of is internet advertising or being advertised/incorporated in a popular movie, e.g., James Bond’s favorite car, BMW.
Network as I understand refers to the “link” that connects the company and it’s products to it’s intended customers. This is not simply referring to distribution. It could also encompass co – marketing arrangements like promotion, partnering, co – branding etc. Innovation of this could also come in the form of “creating” new distribution channel aside from the existing channels. An example would be sports shoes. I remembered when I was young sports shoes are sold in department stores. Nowadays, sports shoes can be seen in sports equipment stores or fashion boutiques catering to a sporty lifestyle crowd.
Brand refers to the imagery conjured by the buyer that conveys the promise of the provider of what to expect from the use of the latter’s product or services. It is a promise made by the supplier to the customer. Innovation on brand in my view pertains to the creative way of positioning the brand either by extending it or rebranding it. An example of the former is the extension of sports shoes brands into sports apparel. As for the second case, an appropriate example would be the creation of the “mass luxury” market and the repositioning of some luxury brands into that category.
From a Strategic Management perspective, the list of dimensions to innovate afforded the strategy maker a focus for them to design their strategy. Using Michael Potter’s 5 forces framework on competition, the competitive forces in the industry conspire limit the maximum prices that a company could profitably charge, in short, a price ceiling while at the same time, these forces tend to establish a price floor (cost pressure) below which the company would experience a loss. The difference between the price ceiling and the price floor is the average profit potential that a company in the industry could reasonably expect given the host of competitive pressure. When the price ceiling collapses and the price floor is forced upward due to cost pressures, companies in the industry would felt literally feel the squeeze in their profitability. Michael Potter proposes 3 generic strategies to neutralize the squeeze. The first is Differentiation that is how to convince buyers that the company’s product is unique and therefore deserving of the price it dictates and not what the competitor dictates. This strategy negates the price pressure by “pushing” the ceiling higher. Of the 12 dimensions to innovate, the strategy maker should focus more on the Customer relationship category. Other categories are important too but the emphasis should be how the customer feels about the product or service, specifically, how it felt different from the other offerings. The second strategy is Low Cost, which is finding ways to lower the “overall” cost of the company, not only production cost but also overheads. This strategy negates the cost pressures and hence lowers if not maintains the price floor. Obviously, the efficiency category of the 12 dimensions is useful for the strategy maker to focus his attention on. The third strategy according to Potter is to focus on a certain segment of the industry (by the way, this is not the niche in marketing terminology). The idea of the strategy is to focus on a segment of the industry where the competitive pressures are the weakest and hence the company would feel “less squeeze” on it’s profitability. The strategy maker in this case should focus more on innovating the distribution and marketing side. For an aspiring entrepreneur, the 12 dimensions of innovation would help them figure out what to offer in a highly competitive market. One of the possible ways for entry available to an entrepreneur is to provide innovative products and services on the table that buyers really dig and makes existing player run for their money. Sawhney et al’s framework can help do just that by focusing the would – be entreprenuer’s mental prowess towards figuring out what to innovate. It is really difficult to come up with a new idea, a new innovation from the existing offerings by the established players that really offers superior value to customers. However it would be easier if one has something to start with.
Sunday, July 02, 2006
Film Critique: ¼ Matrix + ¼ Spiderman + ¼ Lover’s Quarrel + ¼ Nostalgia = Superman Returns
I got to watch “Superman Return” on the opening night, June 28 and boy! The place was jam-packed and queues were long. It seemed that everybody was eager to welcome the Man of Steel back to the big screen. I would say that the movie is quite good. Worth every penny you’d paid for but I am not exactly enthusiastic to see it again for a second time unlike Spiderman or Harry Potter. Not that it is unexciting but rather I had a seen better movie of the same genre like Spiderman. Prior to the movie, I had been watching the “old” Superman movies played by the late Christopher Reeves on TV.
PLOT
The story of the latest installment of Superman revolves around the “tension” between Superman and Lois Lane with the latter moving on and eventually marrying Perry White’s nephew and she also had a kid, Jason. The diabolical scheme hatched by Luthor could be best describe as only a sub – plot to the main storyline. The plot of the story starts with Superman returning to Earth after a disappearance of 5 years without saying goodbye in order to search for the remains of his home world, Krypton only to discover it as a desolate and lonely place. He returned to Earth only to found out that the world has learned to “live” without him including his love, Lois Lane. In fact, Lois even wrote an editorial entitled, “Why the World doesn’t need Superman”, which won her a Pulitzer. So there you have it, a cynical world and a scorned woman who pretend to have gotten over her love. Throw in the mix is Lex Luthor who manages to serenade an old dying spinster (just assuming) into bequeathing him her entire fortune. He then went to Superman’s lair in the North Pole and steals the crystals and used it to “grow” a whole new Kryptonian continent out in the Atlantic, which would eventually “devour” the entire North American continent. As usual, our hero saved the day but this time, he didn’t manage to get the lady’s hand. Compared to the “old” Superman movies, I would say that the new film has more substance and entirely believable, which is unlike the “old” movies (just seen them recently from the reruns). The old movies are both blatant and idealistic. Superman Returns has a more developed storyline. However, one could find the influence of recent movies like the Matrix and Spiderman to name a few in the film. “Borrowed” from the Matrix are the bullet time actions and graphics and the implicit Christian ideological overlay. The Christian overtone is evident in the movie like when Superman flew Lois to the clouds and asks her if she hears anything. To which, she answered no. Superman then told her that he hears everything and he hears people asking for a savior and with that, he disprove Lois’ thesis that the world doesn’t need a Superman. Or like in the case of the voice of Joe – El, Superman’s father reminding him about the potential of the human race and that he is sending his son to make sure Superman leads them to their potential. Or like the scene wherein Superman in a cross like position fell to Earth after saving the world. All of this tends to emphasize a sublime Christian message. Even so, the movie lacks the philosophical depth of the Matrix. Interestingly, there was a scene where Lois kisses Superman in his hospital bed hoping that he would “wake” up from his coma. This scene reminds me of the scene where Trinity kissed Neo, which not only magically revived Neo inside the Matrix but also transform him into the One. So cliché. As for the influence of Spiderman, it is apparent that the director wanted to project the human side of Superman much like in the movie, Spiderman. The director painstakingly projects that the Man of Steel is not only vulnerable physically to Kryptonite but also to emotional stress. Here, Superman wallows in self – pity, embroiled in jealousy to the point of becoming a stalker, and is genuinely lonely. Although the director succeeded in portraying the “human” Superman but I felt that the connection with the audience isn’t quite “complete”. In Spiderman, the viewers felt intimately connected to Spiderman/Peter Parker but not in Superman. I postulated that it is because in Spiderman, Peter Parker is the main persona and Spiderman is only his sideline or in comic book term, his alter ego. Sam Ramsey (Spiderman’s director) portrays Peter Parker as struggling to juggle being himself and Spiderman. In Superman, the opposite happens. Here, Superman is the main persona and Clark Kent is the alter ego, or to be more accurate, a disguise. The superhuman challenge of being a superhero isn’t present at all, e.g., Clark Kent isn’t pressured to be Superman nor is Superman having difficulties being Clark Kent. He has problems with his love life and that’s it. One of the noticeable “things” in the movie is the director’s adherence to the original Superman, which thus gave the audience a sense of nostalgia and instantly connects with the “old” Superman movies. Scenes like Superman dishing statistics after saving the day. “Statistically speaking, flying is still the safest means of transportation.” Or Lois lane fainting upon seeing Superman the first time. Or Lex Luthor’s comical obsession with real estate and his means of attaining his goal, which instantly reminds you of the first Superman movie. Or the romantic flying date between Superman and Lois Lane. Even the music reminds me of the old Superman. It helps the movie a lot in terms of familiarity. However, what really makes the movie click was the unexpected twist and turn of the plot. It was so unexpected and unsuspecting that one would be totally blown away when it happened. The first twist was the revelation that Superman has a son and he is no other than Lois’ kid, Jason the super kid. Everybody thought that Jason was a human kid born to Lois and her present husband but not between her and Superman. This is because of the myth being established in the previous movies. In Superman 3 wherein Superman went rouge, Superman slept with a woman but she didn’t get pregnant and all throughout the subsequent sequels, there was no hint at all that Superman and Lois ever slept together. In fact, some fans are beginning to wonder if Superman is at all gay. Well, this movie dispels that speculation. The second twist was the “almost” death of Superman. Nobody expects Superman to die in this movie but the director plays it in such a way that death is somehow plausible to the point that it could be expected. It makes anybody watching to stay at the edge of their seat wondering correction, worrying about Superman. Overall, the plot is great.
SPECIAL EFFECTS
The special effects used in the movie is simply awesome and way beyond the standards of the “old” Superman movie. Thanks in part to the latest advances in CGI technology and of course, to the Matrix who started it all. This time around, Superman’s cape is actually flowing when he is up in the air. The most unforgettable part of the special effects scene is Superman’s saving of a free falling Boeing airplane. Damn, it was simply exhilarating! The CGI animation of Superman is also quite realistic that there are times it is difficult to tell whether it is the actor doing the stunts or it was pure graphics.
CHARACTER DEVELOPMENT AND ACTORS
As was mentioned, the director attempted and succeeded in humanizing Superman by making him vulnerable emotionally. Even so, there is a limitation to the humanizing factor. The development of Clark Kent on the other hand was somehow stunted in this movie. Here, Clark is literally a disguise. The old movies portray Clark Kent as somehow possessing a separate identity as an average Joe who is tired of being sacrificed to protect the identity of Superman. Notice the awkwardness Clark Kent exudes when he tries to be both nice and geeky as opposed to the natural macho and brutish persona of Superman. That separateness of identity becomes more acute that it came full blows in Superman 3. That tension is noticeably absent in the new movie. Furthermore, in the TV series, Smallville, there is no Superman persona but only Clark Kent. In the TV series, Clark is struggling to live a normal life even though he is anything but normal. Again, one can’t find that here in the movie. Brandon Routh plays well as Superman but he looks too smart and confident as Clark Kent than the traditional awkward geeky nice guy image that Clark should be. Lois Lane played by Kate Bosworth is still tough, feisty but is also somewhat mellowed down compared to the old Lois. She also exudes feminine beauty. I find that meallowing down to be a welcome change not that I’m a sexist but rather I find it to fit Lois’ new role as a mother of a 5 year old and a loving wife. Lex Luthor played by Kevin Spacey on the other hand is somewhat well, not exactly a disappointment or a let down but let’s just say, short of expectation. The problem is not in that Kevin Spacey’s acting (he is actually played the part well) but in both the director and the actor’s understanding of Luthor. The “old” Luthor played by Gene Hackman is flamboyant and displayed theatrical flair. He is the epitome of an arrogant mad genius who desired to become a king even for a day. Kevin Spacey’s Luthor by comparison seemed a lot more subdued and “quiet”. However, I don’t find that to be disturbing. In fact, I liked it. The “modern” depiction of Lex Luthor both in TV (Smallville) and in comic books is a shrewd, amoral, malevolent, manipulative, and machiavellian businessman/politician. Kevin Spacey in the first part of the movie adhere to this modern depiction. His portrayal of Luthor at this stage is best described as a “silent killer”. The problem with the portrayal came in the latter part of the movie when Luthor starts to unveil his evil scheme. Here, Kevin Spacey tried to imitate or more sarcastically, ape the flamboyance and flair of Gene Hackman, which turns out to be a total farce. Furthermore, the director and writer should seriously consider upgrading Luthor’s persona including his IQ. This is because I find his scheme less diabolical but more hairy, audacious, and also elementary. Lex Luthor’s scheme is to “sink” North America and replace it with the Krytonian crystal continet. There is only one problem to that scheme and that is, what they’re going to eat? I mean can you grow anything on an icy crystal wasteland? Ok, so they (Luthor and his cohorts) could make use of soiless farming or hydroponics technology but would that sufficed to feed a population? Furthermore, Luthor possesses the crystals, which contains among others advance Krytonian technologies and database collated from 28 known galaxies. There is somewhere within that database a blueprint on how to built a Weapon of Ultimate Destruction a.k.a. a Doomsday device, which he could use to blackmail the world. In spite of this, Lex Luthor is inexplicably infatuated with “real estate” (remember Superman 1?). Makes me wonder whether or not Lex Luthor is the “world’s greatest criminal genius” or simply the “most diabolical real estate developer the world has ever seen” and complete and utter failure at that! Apparently, the producers wanted to project the “gravity” and “evilness” of Luthor’s scheme and which is why they choose that scheme but it degrades the “seriousness” of the film.
DIRECTION AND DIRECTOR
Bryan Singer’s (the director) take on this latest movie on Superman is to focus on the two main characters, namely, Lois and Superman. The focus is so narrow that everybody else is relegated to second place including Clark Kent and Lex Luthor. The effect of this focus is to provide crystal clear clarity on the theme and is less likely to muddle the issue at hand. The director handles this kind of direction quite well. Too well, in fact that some point in the movie, I had this queasy feeling that it is more of a romance film rather than an action – adventure flick.
ASSESSMENT
Overall, I find the film to be excellent and I actually liked it. It is as I said worth every penny paid. Aside from that, the facts being introduced in this film opens new avenues and possibilities as to the future direction of the film franchise. It would wet anybody’s curiosity as to what will happen to Jason, the super kid. Or how would the love triangle (Superman – Lois – White, the husband) or even the quadrangle (including Clark Kent) would unravel in the next few films. One could only wonder or even speculate but for now, I just like to say, “Welcome back, Superman!”
Monday, June 19, 2006
A LITTLE GIRL NAMED MEGAN
Monday, June 12, 2006
DAY 5: ONE FINE DAY
Thursday, May 25, 2006
On The Da Vinci Code
Friday, May 19, 2006
DAY 4: THE PILGRIMAGE
POSTSCRIPT
When I was writing this piece, I realize how difficult was it for the ancient soldiers manning the Great Wall. The importance of the Great Wall cannot be undermined. For the Great Wall was the demarcation line between civilization and barbarity, dividing the agricultural farmlands from the desert, and serve as a bulwark of order against chaos. The ancient soldier was given this great burden and the task was by no means easy. Imagine soldiers wearing full armor, carrying spears, arrows, and swords as well as provisions running up and down the steep slopes of the wall without the aid of a handrail. It is bad enough to climb the wall, what more carrying all those things? There are times when winters are harsh and the snowfall heavy, soldiers are forced to “stay” at their post at the towers without relief for days perhaps. Imagine them shivering in coldness and hunger. The scenery although magnificent and awesome are all too familiar to them for they have watched the slopes turned from green to brown to white and to green again. Their routine task everyday may not be much since they’re just simply watching, waiting, wondering when would the barbarians come and perhaps at times, they would their gaze towards the north, inside the Great Wall, also wondering……….. wondering when they would go home…….. if at all.