Innovation Models That Click

Digital & Online Marketing Summit , IQPC

19th May 2009

Omar AsgharHead, Wealth Management

Mashreq

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Innovation …

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Innovation Is Easy

Hangout with weird

And thou shalt become more weird

Hangout with ‘duh’

And thou shalt become more ‘duh’

Tom Peters

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Think For Yourself & Stop Copying A Rival

To grow, companies need to break out of

a vicious cycle of competitive

benchmarking & imitation.

W. Chan Kim & Rene Mauborgne

Financial Times 2003

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Creating The Purple Cow

To create and sell something remarkable,

you need to be daring, original, passionate

and gutsy. You cannot be remarkable by

following someone else who is remarkable.

Seth GodinFast Company 2003

Godin’s ideology combines three elements:

1- The end of TV-industrial complex;

2- No deceit, No spam;

3- Ideas must earn the buzz by being

remarkable

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Differentiating Between Cows

Lets look at the success of some remarkable companies …

What do …

Four Seasons or Motel 6 …

Neiman Marcus or WalMart …

Nokia or Nintendo …

possibly have in common?

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Embracing The Remarkable Cow

… The thing they have in common is that they have nothing in

common!

They are outliers, they are on the fringes, super-fast or super-slow,

very exclusive or very cheap, extremely big or extremely small.

The leader is the leader because he did something remarkable. And that

remarkable thing is now taken, so its no longer remarkable when you decide

to do it

- Seth Godin

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A Futurist’s Innovation ModelNever mistake a clear view for a short distance – Paul Saffo

Source: Saffo.com; Every 30 years or so, a science discipline turns into a technology and transforms our lives. Chemistry,

Physics, Electronics and …

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Models of Innovation

> Process improvements that enhance the quality of life

> Altering consumer behavior through Science & Art

> New media driven business models

> Test labs, participation and wisdom of crowds

> Creating passion through innovation

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Making Things “Faster”

Printing

Gutenberg revolutionized the spread of information

Replaced monks doing calligraphy

The Internet

Internet takes Gutenberg to a whole new level

All of the world’s information easily accessible at the click of a button

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Enhancing The Quality Of Life

Limited Liability

Gave birth to a new, risk-taking generation

Provided employment and opportunity across the society

Free Markets & Capital Markets

Allowed individuals to take risks, try their ideas, and work to fashion “progress”

From Adam Smith to Milton Friedman, from hedge funds to Goldman Sachs, scads of Nobel Prizes have been awarded to folks who have figured out bits and pieces of this piece of magic.

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Low-Tech And Lean Services

Dabbawalas (box carriers)

Mumbai’s globally recognized business of carrying and delivering fresh homemade food to offices.

About 200,000 Tiffins delivered everyday by 5,000 dabbawalas

One mistake in 16 million deliveries

Inspired credit courses in the world’s leading universities on process design and quality

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Banks: Open All Day, 24X7

Innovations in Banking

- Ability to bring the bank to the customer via multiple channels in

mediums desired by customers …’bringing the bank to you’

- From Branches to Call Centers to ATM’s to Mobile Banking to

Virtual Banks

- Plastic currencies to revolving credit to home equity lines

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Models of Innovation

> Process improvements that enhance the quality of life

> Altering consumer behavior through Science & Art

> Enabling technologies and new media driven business models

> Test labs, participation and wisdom of crowds

> Creating passionate customers through innovation

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Adopt & Adapt – The Ultimate Product Placement

Remember HotBot? Or AltaVista? There were search

engines before Sergey Brin and Larry Page set up

Google in 1998.

Radically simple: They started by asking Web surfers if

they were feeling lucky—and changed the world.

Google lifted search it to its current heights, by disrupting

the nascent Web search industry, and sending tremors of

fear into every corner of traditional media.

Revolutionalized Web-based e-mail and provided free

tools such as maps and online driving directions.

We no longer search for something on the Web.

We “Google” it.

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Adopt & Adapt – The Modern Home Wrecker

The BlackBerry made standalone, unconnected

PDAs irrelevant and simultaneously enhanced

(respond to e-mail on the soccer-game sidelines!)

and destroyed (respond to e-mail during dinner!)

the work-life balance of professionals

everywhere.

The BlackBerry's greatest disruption wasn't in

killing off competitors (Palm fired back with its

popular Treo smartphone in 2001) but in

breaking down the walls between work and

home and eroding the nine-to-five

paradigm.

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Adopt & Adapt – People Of The Pod

Multiple MP3 players existed before (and after) the

iPOD.

Apple created a passionate following when they

teamed this up with the knock-out iTunes store.

Today, the iPod and its eco-system are disrupting the

way we watch TV and movies—both are now available

for downloads.

Launched a whole new form of media, such as the

podcast, which allows anyone to become a radio

broadcasting host.

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Adopt & Adapt - Touch ‘n Go

Apple revolutionized the ‘Phone’ by integrating all daily activities into a

handheld device

The touchscreen and associated features (like ‘pinching’) transformed

customer experience

The most significant event - Apple released the SDK in Feb 2008,

allowing independent developers to offer games/apps to users across the

world

The download frenzy was phenomenal –

10 million apps downloaded in week 1, 500 mn apps by Jan’09

13-yr old Connor Mulcahy downloaded the 1 billionth app

(“Bump”) on 23rd Apr ’09

The technology is a sign of times to come, as shown in sci-fi movies

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“Disrupting” Face of Art … From Canvases

“Persistence of memory”- Salvador Dali, Spanish Surrealist

“Skull with burning cigarette”- Vincent Gogh, Dutch Post-

“Starry Night”- Vincent Gogh, Dutch Post-

Impressionist Impressionist

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New Face of Art – Installation Concepts

“Physical impossibility of death in the mind of someone living”- Damien Hirst, YBA

“Detail of 7 WTC”- Jenny Holzer, American conceptual artist using “Text as Art” in multiple mediums

“For the city”- Jenny Holzer installation

“For the love of God”- Damien Hirst, YBA

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Banks: Recognizing The TV-Industrial Complex

Assets

Cards

Liabilities

Integrated insights into Customer

Integrated Objectives and Processes

Integrated Customer Treatments

Integrated Treatment Delivery

Customer

Web

Phone

Branch

Optimal Customer Experience/Relationship

All Others

c

Assets

Cards Liabilities

Customer

All Others

ATM

Commensurate Value Exchange

Mktg.

Svc.

Offers

Viewing the customer as a segment of “1”

Persistence of customer interaction context

Recognizing the customer as the corporation’s most strategic asset

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Models of Innovation

> Process improvements that enhance the quality of life

> Altering consumer behavior through Science & Art

> Enabling technologies and new media driven business models

> Test labs, participation and wisdom of crowds

> Creating passionate customers through innovation

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New Media Businesses – Power Networking

Facebook has become, in just under 5 years, the home of more than 25 million corporate

employees (a Microsoft Facebook group has more than 10,000 members), political campaign

supporters and college alumni. Total users clocked 132 million in June 2008.

Begun as an online network site for college kids,

Reinvented itself into a platform for anyone to build software tools and services for its members.

Further disrupted by offering a free iPhone app. 25% of all iPhone users have used the app (source:

comScore). More than 1 million people are signing up every month; 30 million users clocked.

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New Media Businesses – I Tube, You Tube, We All Tube

Started as a way to share video clips between people

Changed the way we are entertained, how we are advertised to and how we promote ourselves online.

YouTube was launched in Feb 2005 and bought by Google for $1.65 billion. Is now home to amateur

advertisements, viral political campaign spots, video résumés—even executive apologies.

After JetBlue's major service disruptions, staffers at JetBlue posted then-CEO David Neeleman's apology to

customers on YouTube. The video site's popularity has even inspired Hollywood to create new bite-size

films.

YouTube was an integral part of the 2008 US presidential campaign strategy.

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New Media Businesses - What are you thinking?

Twitter captured the fascination of the world - what people are

thinking, and doing, all thrown up to your group of friends / network

Was rated the fastest growing website (Ac Nielson, 1382%)

Extensively used in the US Presidential campaign by Barack

Obama

When it was used by victims, and bystanders to gather news and

coordinate responses to the 26/11 Mumbai terrorist attacks, CNN

described it as “the day Social Media appeared to come of age”

More disruption is on the way - the combined power of human

mind and thoughts throws up immense possibilities, if supported by

the right computing capacity

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New Media Businesses – Virtually Inescapable

Started off as an alternative for gaming geeks

Has attracted many corporations to its virtual shores, including Starwood Hotels, Bain & Co., and

IBM, all there to test out hotel concepts, recruit candidates, or hold global collaborative meetings.

Auto makers are allowing residents to design their next car on TSL.

Gartner Research predicts that by 2011, 80% of Internet users will have avatars, or 3D digital

personas, and by the end of 2012, 50% of businesses will have virtual offices, or “networked virtual

environments.”

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Banks: Enabling A Virtual Financial World

> Online Brokerage

> Chip based credit cards

> Contact less technology

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Models of Innovation

> Process improvements that enhance the quality of life

> Altering consumer behavior through Science & Art

> Enabling technologies and new media driven business models

> Test labs, participation and wisdom of crowds

> Creating passionate customers through innovation

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Growing With People

Successful innovation is always enabled through test labs

•Finding non-target captives

•Expanding information through the knowledge of people

•Creating Experience Labs and Credit Testing

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Wii Like It Very Much

Nintendo's Wii - the hot-selling video game console, in which users swing wireless remotes to box,

play tennis, or hit home runs on their TVs.

Costs just $250, compared to $600 for Sony's PlayStation 3.

Originally wasn't targeted at the typical gaming enthusiast

Simpler graphics and active format have found fans among the traditionally nongaming populace, such

as grandmothers and soccer moms.

Wii sales have pummeled those of the PS3—and surged Nintendo's stock since its launch in Nov ‘06.

Wii Fit took the story further, with more than 1 mn units sold in less than a month of launch in Dec ‘07

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The Wisdom Of User Generated Content

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Turning Branches Into Experience Labs

> Credit Testing> Keep the Change> Paco Underhill

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Models of Innovation

> Process improvements that enhance the quality of life

> Altering consumer behavior through Science & Art

> Enabling technologies and new media driven business models

> Test labs, participation and wisdom of crowds

> Creating passionate customers through innovation

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Setting the world on fire

•"World on Fire" opens with the claim of having

cost $150,000

•Follows with a low-quality footage of McLachlan

in a plain room playing her guitar.

•Subsequently reveals it actually cost $15

•Then displays (in animated and videotaped

segments) how the remainder went to enriching

lives all around the globe through charity

donations.

•Graphically illustrates the impact that even

relatively small individual donations might have on

third-world poverty.

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MTF

•Chris Martin (Coldplay) is outspoken on issues of fair trade and has

done a great deal of campaigning for the charity Oxfam's Make

Trade Fair campaign.

•When performing, has variations of "Make Trade Fair", "MTF" or an

equal sign written on the back of his left hand and the letters "MTF"

can be seen emblazoned on his piano.

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The Pod Piper … creating passionate followers

Thousands of passionate iPod users click

their photographs across the world with

their iPods and share it with the iPod

community.

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The Pod Piper …

“When you start looking at a problem and it seems really simple with all these simple

solutions, you don’t really understand the complexity of the problem. And your

solutions are way too oversimplified, and they don’t work.”

“ … then you get into the problem, and you see it’s really complicated. And you come

up with these convoluted solutions. That’s sort of the middle, and that’s where people

stop, and the solutions tend to work for a while …”

“ … but the really great person will keep on going and find the key, underlying

principle of the problem. And come up with a beautiful elegant solution that works.”

- Steve Jobs

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Reverse-engineering passion…

“Surrender your whole being into a

note and gravity disappears”- Carlos Santana

Learning more

Wanting to keep getting better

Showing off…….

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Reverse-engineering passion…

The Secret of Passionate Customers

“It does not matter what customers think about you;

How they think about themselves as a result of their interactionwith you, your product, your company that matters”

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Setting the world on fire

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Thank Youomarsa@mashreqbank.com