The Renaissance Innovator

Thoughts, examples and updates on the Renaissance Innovation Method

Posts from the “Examples” Category

A Business Model for Bangladesh

Posted on May 21, 2013

As we discuss in our recent blog post on HBR Blog Network, the death of over 800 people in the collapse of Rana Plaza, a building with garment factories in Bangladesh, spurred widespread outrage over working conditions in offshore factories. In the search for blame, many commentators point to the absence of building codes, lack of workplace safety rules, and the greed of US corporations.  Many of the solutions proposed are around paying people more to manufacture in the USA. But however well intentioned the ideas are, this is not the best use of one of the most productive workforces in the world. The true solution, we think, lies in understanding the changed nature of modern supply chains and identifying new business models better…

Categories: Examples, Others

Tesla’s Model S: Technology Outruns the Business Model

Posted on February 26, 2013

In our recent blog post on HBR blogging network we discussed the Tesla Model S, which is arguably the most promising all-electric contender for a slice of the luxury sedan market, but was panned recently by New York Times reporter John Broder, who finished his test-drive on the back of a flatbed truck. Elon Musk, co-founder of Tesla Motors, was quick to respond with accusations that the test was not performed under fair conditions. Whatever the rights and wrongs of the dispute, though, one thing is clear: Tesla has some way to go before it can get motorists to buy into its vision of an all-electric no-compromises luxury sedan.

Categories: Examples, Others

Extreme Focus and the Success of Germany’s Mittelstand

Posted on February 13, 2013

In a recent post on Harvard Business Review bloggers network, we discuss the extreme focus business model of Germany’s famed Mittlestand: Quick test: name one company that does one thing and does it very well. The companies that occupy the limelight are typically diversified giants that achieve growth through constant expansion into new markets and the introduction of additional product lines (just think P&G, GE, and Microsoft). But the truth is that the really successful companies are highly focused, achieving unprecedented efficiencies by designing a business model with a razor-thin focus and learning to do the one thing really well. Many of us academics still teach an old case about Shouldice Hospital, which only treats simple cases of hernias and nothing else but does it…

Categories: Examples, Theory

Business Model Innovation: The Gift that Keeps Giving

Posted on December 6, 2012

In a recent blog post on the Harvard Business Review bloggers network,  we discuss the sustainability of the advantage that come  from innovating the business model. With the Winter holiday shopping season, fashion apparel retailer Zara has been the focus of media attention — the New York Times recently profiled the innovative fast fashion business model pioneered by Zara, while Elizabeth Cline’s book on the costs of fast fashion has climbed up the sales charts. Despite this very recent popularity, the novel business model of Zara has gone virtually unnoticed for over 30 years, allowing Zara’s parent company, Inditex, to grow from zero to almost $20B in revenues. Why wasn’t it copied immediately? How can it be so sustainable and continue growing? The answer lies in a different type…

Categories: Examples, Theory

When Business Models Trump Technology

Posted on November 19, 2012

In a recent blog post on Harvard Business Review we discuss one of these frequent situations in which business model innovation is necessary to bring technological innovation to life. In case you missed it, the 2012 World Food Prize went to Daniel Hillel, an Israeli scientist who, in his own words, “…helped to develop the principle of shifting from low-frequency, high-volume irrigation to high-frequency, low-volume irrigation”, the system known as drip irrigation. Irrigation is a big deal in many countries: in just the last 50 years, the world population has doubled and irrigation water is increasingly becoming a critical constraint in many parts of the world. Study after study has shown that improved irrigation systems like drip irrigation can set in motion a new…

Categories: Examples

Why Apple Has to Manufacture in China

Posted on October 2, 2012

       Apple gets a lot of stick about manufacturing in China, and the issue came up again recently with the release of the iPhone 5. A recent article on the “Cult of Mac” contrasts Apple to Timbuk2, a US producer of traveler and messenger bags, that proudly locates most of its of its manufacturing in San Francisco, one of the most expensive places on earth. The workers in the factory are neither overworked nor are they underpaid, yet Timbuk2 is not struggling financially unlike many other US-based manufacturers. This begs the question: can’t Apple do the same and move jobs back from China?  We covered this issue in a recent post on HBR network.

Categories: Examples

Making car manufacturing sane: Business Model Innovation at Volkswagen

Posted on September 13, 2012

         After a brief hiatus due to vacations and travel over summer, the Renaissance Innovator blog is back!  While I was catching up on the stack of journals which accumulated over summer, a Fortune article about Volkswagen which describes transformation of the company from a local German producer to a global phenomenon with over €160B in sales caught my eye.  Volkswagen has quietly passed General Motors and Toyota last year to become the largest automotive maker in the world. So what is its secret?

Categories: Examples

Outclassing Sourcing Champions

Posted on May 28, 2012

With  increasing  specialization,  technological complexity, and globalization, firms now buy a long list of products and services from many outside providers. In industries like automobiles, consumer electronics and retail, reliably sourcing a multitude of products from supply chain partners is the key to success. Li and Fung limited, one of the worlds fastest growing companies,  is fundamentally altering this  sourcing landscape and is simultaneously changing the game in these industries which rely deeply on sourcing. It is a company which owns no production, transportation or retail facilities, but by becoming the key link in  the sourcing  practices of some of the worlds best known companies like Gap, Benetton  and Walmart, has found a novel winning formula. So how has this firm created a multi-billion dollar business…

Categories: Examples, Others

The Darwinian Workplace in the WinnerS-take-all Organizations

Posted on May 3, 2012

The latest issue of Harvard Business Review features an article “The Darwinian Workplace” on promoting healthy competition in the workplace that I co-authored.  The key message of the article is based on several research projects with highly innovative technology companies that implemented tournaments among its workers to increase worker productivity and, at the same time, to increase firm’s profitability. Competition in high-end jobs in industries ranging from movie making to professional athletes to politics is nothing new but can the same principles be applied in industries as mundane as retail, call centers and restaurants, which usually employ minimal-wage workers, with minimal motivation and incentives to work hard?  Labor costs in these industries typically represent the largest operating expense and the number of people employed…

Categories: Examples, Experiences

How to Innovate for a Greener World (and Make Money)

Posted on April 8, 2012

In the minds of both consumers and managers going green is typically thought as being associated with an additional expense.  We see this in food stores, for instance, where organic products cost more.  Despite this general perception, there exists a simple approach for just about any organization or household to become more sustainable and make more money in the process.  The miracle solution  lies in Energy Efficiency projects. For instance, replacing old incandescent and halogen light bulbs with new energy efficient compact flourscent bulbs, installing additional insulation, motion-activated light switches, replacing old-leaky windows, buying energy-efficient heaters, are all known to lower carbon footprint while dramatically lowering energy bills!  In fact, Energy efficiency projects are the easiest and the fastest way to reduce greenhouse emissions,…

Categories: Examples