Eric Tse 's Tse and Tse Consulting Blog
A professional and personal space to share our experience...
Friday, October 12, 2012
Saturday, July 14, 2012
Security Model for Social Media and Mobile Devices
I would like to ignite industry leaders can ignite the public awareness of Security Model for Social Media and Mobile Devices.
Recent years there have been increase usage of social media and mobile devices. And there have been big increase in track records of cyber harassment, some are personal, systematic, organizational, commercial and COMMUNITY wise. Organizations take advantage and exploit features or loop holes of many web 2.0 features and mobile devices, for example systematically feeding emotional triggers, spreading hate, stalking (Monitoring) and integrating harassment.
While debating if we should use or ban social media, I think a better and more complete security model (architecture) should be implemented at different levels. I am aware there have been some features in social media application, but obviously this is not sufficient. I am not sure what exactly should be done. Industrial and social leaders should be responsible taking actions.
What I can think about now are.
- explicit use cases on explaining how cyber harassment and cyber bullying
- legal amendments such as anti Social Media Harassment Act
- features implemented the model (such as emotional triggers filter on feeds, granular security control) within social media and mobile applications.
-best practices, education and guidelines for user to protect themselves
- legal enforcement to address people and organizations to break the act
- health and technical support or resources to people who are vulnerable to attacks. - Integrate technical, health criminology knowledge in order to provide support.
- Monitoring, Governance and ethical enforcement on Social Media Service Provider Security
- Make people and organizations who attack visible to victims and public
Since I am a small potato, I am urging leaders who are more influential can lead this movement.
Eric Tse, Richmond Hill, Toronto
Tse and Tse Consulting -Security, Identity Access Management, Identity Access Management Toronto, Solution Architect, Consulting
Linkedin ID: hfetse@hotmail.com
company email: tsetseconsulting@gmail.com
My Company Web Site http://tsetseconsulting.webs.com/index.html
Company Blog http://tsetseconsulting.wordpress.com/
Company Blog 1 http://erictse2.blogspot.com/
Facebook Company Page http://www.facebook.com/tsetseconsulting
Friday, June 29, 2012
Access Identity Management FAQ 2012
Access Identity Management FAQ 2012
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Thursday, June 28, 2012
Charles Schwab Future Strategies
Charles Schwab Future Strategies
Greg
Morris and Hiu Fung Tse
MET AD 741 – Team Research Paper
June 17, 2012
Abstract
This paper proposes new directions to what the Charles Schwab
organization should take as it moves into the second decade of this millennium.
The paper first analyzes external business environmental changes in the past
decades. This includes market segmentation changes, change basis of
competitions, change in fee and services. Then the paper proposes some high level
strategies Charles Schwab should take to adopt the changes to push the business
forward. Strategies include: 1) Enable Direct Investors – Target Market to
Youth and Self Serve Nature; 2) Reduce Fees to Adopt the Elastic Market; 3) Mobile
Technology for Independent investors; 4) Mergers and Acquisitions to Extend
Technology Platform and Integrate Platform to New Market Segment; and 5) Scaling
Customer to Fine Tune Differentiation Among Different Customer Classes. By adjusting and fine tuning its business
model, according to the proposed strategies using an innovation process and
marketing concepts, we are looking forward to seeing Charles Schwab face
challenges and dynamic market shifts in the second decade of the millennium.
Market segment analysis introduction
Charles Schwab showed great innovation and growth
in the prior few decades in the financial investor market segment. When a large market share was controlled, around
2002, Charles Schwab started to squeeze its less wealthy clients by raising
fees and transaction charges on smaller-sized accounts. This caused some
customers to defect to discount brokerages such as Ameritrade, E*Trade and TD
Waterhouse that had grown up during the dotcom boom. Indeed, there had been tremendous
growth and consolidation among the
discount broker segment. In just the fourth quarter of 2005, mergers in the
discount broker segment
affected 3 million accounts and nearly half a trillion dollars in assets. Competitors were becoming better able to
compete with fully services firms.
Charles Schwab was facing more formidable competition especially at the
discount transaction-oriented customer segment. (Barnett and Mauldin, 2006)
Change in market
behaviour and competition basis
The most significant change to occur at Charles Schwab
over the past few years was its source of revenues. In 2000, 50% of Charles Schwab’s
revenue came from trading activities and 27% from asset-based fees. Things
changed by 2005 and by that time, 79% of Charles Schwab’s revenue was derived
from asset based products/services and interest. Only 17% came from trading
revenues. The shift away from dependence upon trading revenue allowed the
company to drop its trading commissions.
This is a positive trend for Charles Schwab because the market is
changing.
Change in Fees for
Services
In 2012, the Financial Services Authority will be banning
the paying of commission to giving advice.
The financial advisors would have to develop a few schedules that would
be directly related with the investors (Ross, 2009). This does remove expenses that Charles Schwab
would have to pay for commission allowing them to further lower the prices of
the of the trading activities. However,
there is a downside because the financial investors will now be
independent. Also, with the most
stringent qualifications that will be required the Ernst & Young is
expected the 35,000 advisors to shrink to 20,000 (Ross, 2009). Because the fees are being passed directly to
the consumers, some customers will refuse and want to buy direct from the
financial institution. Charles Schwab
will need to make this process as painless as possible.
Strategy 1 Enable Direct
Investors – Target Market to Youth and Self Serve Nature
Pure self-directed investing is "a very
teeny market”. The key to this company's continued growth, and to really
becoming finances Wal-Mart, is to get people to think of Charles Schwab as the
best place to go for investment expertise.
Since fees are being changed on the advisor side, Charles Schwab wants
to make sure the fee structure is simple and transparent. Also some of the customers will not want to
pay advisor fees and will become direct investors. In the time of change, Charles Schwab will
need to build a trust with their clients (Warwick-Ching, 2009). When the financial recession occurred clients
began to pay more attention to the charged fees. A straight forward schedule that clients can
understand will help build a comfort level with clients and invest directly
without an advisor. Working with the
self service customers a target market will need to be validated with market
research. The trends of this market and
competitor offerings will need to be examined.
Charles Schwab will want to not only meet the basic needs but also the
unstated customer needs (Leybourne, 2012, Lecture 5). With the shift in market, Charles Schwab will
want to base their basis of competition on convenience to the consumer (Leybourne,
2012, Lecture 3)
Fidelity has been able to grow to one of the biggest 401k administrators. 401k investors are commonly direct investors and this market is a large potential growth sector for Charles Schwab. The reason for this growth was because customers get access from their employers. Charles Schwab will want to work on getting access to these companies and overtake the large competitor. The employees that would be given access will be direct investors. A number of these investors will be younger and would start with smaller sums of funds but it will prove profitable with a large number of individual investors (Gibbs, 2010). Charles Schwab has begun work on these products but will need to continue to innovate to obtain these low maintenance direct customers.
Strategy 2 Fees to Adopt to Elastic Market
However, some customers will
not come direct. To better compete in
this segment of business Charles Schwab completely revised their approach, cutting
trading fees on average by over 50%. Trading commissions continued to be a shaky
source of revenue in the industry; for example, in October 2006, Bank of
America began offering free trading to customers who kept a minimum balance of
$25,000 in combined checking, savings or CD accounts at the bank (Bank of
America). With the clear fee schedule
being instituted, Charles Schwab should consider a flat charge and introduce
performance related fees. Performance
related fees would be harder for existing companies to develop as the cost base
and could lead to competition from start-ups (Warwick-Ching, 2009). Charles Schwab will need to have agile and
not fear the change of acting like a start-up.
By using this technique, Charles Schwab will be able to focus on not
only maintaining their market share but also finding growth opportunities
within the market (Adams, 2002). With
starting this structure now, Charles Schwab would be ahead of the
competition. The performance related
fees would be difficult to institute but would clients may be more comfortable
with fees when they are outperforming the expected return. Similar fees have historically been used in
hedge funds (Vincent, 2009). With
advisor fees and flat charges likely becoming the norm in the industry,
performance fees would create a new revenue stream that would be a win/win for
both parties. Charles Schwab will need
to work closely with their funds to develop fair benchmarks for the expected
returns.
Strategy 3 Mobile Technology for Independent investors
There are new enhancements in technology to help
support the businesses of independent registered investment advisors (RIAs).
Among the enhancements available for advisors to view at IMPACT, an annual
financial industry conference, is a new workflow library that is to be a key
part of the Schwab Intelligent Integration initiative. Schwab Intelligent Technologies™, a
subsidiary of The Charles Schwab Corporation, is also announcing a new
relationship with independent software vendor (ISV) Salentica, which will
increase the number of RIA firms that can benefit from Schwab Intelligent
Integration.
The focus on technology continues with other new
online capabilities on display at the conference including Charles Schwab’s
upcoming mobile application for the iPhone™ and enhancements to the Schwab
Alliance web site that supports clients of advisors who custody assets with
Schwab Advisor Services (BusinessWire, 2011).
In 2011, the World Economic Forum concluded there were only about 10% of
adult that used mobile financial services and those were primarily payments
(2011). There is a large amount of
growth with the segment and the alliances with the mobile partners will allow
Charles Schwab to continue to be the innovators of integrating technology with
the products. Finding new technological
methods of integration can also extend the life cycle. As the mobile devices are used it will start
with the early adopters before having mass market acceptance (Moore,
1995).
Strategy 4 Mergers and
Acquisitions to Extend Technology Platform and Integrate Platform to New Market
Segments
Sometimes organizations cannot do everything themselves,
and there is an argument that maybe they shouldn't. Historically, there has
been a growing trend towards a focus on what you are good at, and getting
others to do the other stuff.
From Charles Schwab perspectives, there are two
directions for mergers and acquisitions. One is to extend their technology
platform through acquiring companies with new trading technologies. The other is acquiring companies that have
different business trading market and integrate their technology platform into Charles
Schwab’s businesses. This allows Charles
Schwab to have a collaborative network that lets the each part focus on what
they do best. It allows a synergistic
alliance that is more valuable as a complete product (Leybourne, 2012, Lecture
4). The following approaches are a start
to help with the other strategies.
Extending Technologies
Platform
In March 2000, Charles Schwab acquired CyberCorp and its
subsidiary CyberTrader, a fast-growing online brokerage with specialized
electronic trading technology for highly active traders. Also in 2000, Charles Schwab
acquired the Chicago-based firm, Chicago Investment Analytics, which developed
proprietary stock analysis based on quantitative modeling techniques for
institutional clients.
Integrating
Technologies Platform into new market Segment
In January 2000, Charles Schwab announced an all-equity
deal valued at approximately $2.8 billion to acquire the venerable U.S. Trust. Charles
Schwab’s management hoped to leverage the company’s IT assets with U.S. Trust’s
high-touch, high-margin relationships. (Burgelman and Meza, 2008)
In January 2004, Charles Schwab paid approximately $340
million to purchase SoundView Technology Group, an equity research firm. Charles Schwab combined SoundView with
automated trading technology and market-making functions previously developed
by Charles Schwab to create a combined institutional research and trading
capacity (Burgelman and Meza, 2008)
These two trends will continue in the second
decade. Charles Schwab needs to determine what kind of technologies they would
need to acquire that would enhance their user trading experience. These synergistic alliances allow the
companies to align their strategies. On the other hand, Charles Schwab needs to
determine if there is some potential existing high value trading markets that
have not been computerized.
Strategy 5 Scaling Customer to Fine Tune Differentiation Among Different
Customer Classes
Charles Schwab representatives were able to offer
investors personal advice. Smaller investors with up to $50,000 to invest
generally received mass advice, making use of investment tools that were online
or otherwise easily scalable. For Charles Schwab retail, that sweet spot was
customers with investible assets between $50,000 and $2 million. Accounts with
more than $250,000 were assigned a relationship manager.
One key challenge Charles Schwab faced was
efficiently and effectively serving clients with less than a quarter of a
million dollars in their accounts. The company wanted these customers to feel
they were being serviced well and serviced by the firm without the need of an
individual representative. This was important because in the investment
industry, sales representatives and other financial planners often took some or
all of their clients with them when they switched firms or opened up their own
investment management practices.
For all of Charles Schwab’s investments in
technology and scalable investment platforms, its physical network of branches
remained an important part of the business. Most of Charles Schwab’s new assets
came in through the branches. The physical locations were important to
customers; even younger customers seemed reassured by the physical branches (Burgelman and Meza, 2008).
Conclusion
Charles Schwab has been an innovator for the last
couple decades. The product offering is
marketed different but the complete investment product is still similar. Charles Schwab is finding new ways to bring
sustaining technology instead of disruptive technology to the market
(Leybourne, 2012, Lecture 2). As the
financial industry, especially fees change Charles Schwab will want to stay on
the forefront of the technology and other product offerings. To stay ahead in the future Charles Schwab
will need to increase the number of direct investors and see the potential of
the youth market. There will also need
to be a change the fee structure and they should consider performance fees as
the market has become more elastic. Increased use of mobile technology, continued
trend of acquisitions, and scaled services for the different customers are
additional strategies that will be needed to keep a future competitive
edge. With the strategies, Charles
Schwab will provide services that will allow them to grow and build a trust
with customers.
References:
(2006). Bank of America press release - “$0 Online Equity Trades are
Coming Soon”. Retrived from http://www.bankofamerica.com/investing/index.cfm
(2011, November 2). Schwab Talks Technology for Independent Investment
Advisors at Annual Conference. BusinssWire. Retrieved from http://www.businesswire.com/news/home/20111102006291/en/Schwab-Talks-Technology-Independent-Investment-Advisors-Annual
(2011). The Mobile
Financial Services Development Report 2011. World Economic Forum. Retrieved
from http://www.scribd.com/doc/55337266/The-Mobile-Financial-Services-Development-Report-2011
Adams, R. (2002). Big
Companies need to Act more like Start-Ups. A
Good Hard Kick in the Ass: Basic Training for Entrepreneurs. (pp.237-263).
New York: Random House/Crown Business.
Barnett, Megan and Mauldin, William. (2006, July 11). The Right Broker
for You. Smart Money. Retrieved from http://www.smartmoney.com/invest/markets/the-right-broker-for-you-19754/
Burgelman, Robert and
Meza, Philip. (2008, January 3). The Charles Schwab Corporation in 2007: Fixing
and Redefining the Core Business. Harvard Business Review. Retrieved from
http://hbr.org/product/the-charles-schwab-corporation-in-2007-fixing-and-/an/SM35C-PDF-ENG
Gibbs, Lisa. (2010, January 14). Charles Schwab
is selling advice. Should you take it?.
CNN
Money. Retrieved from http://money.cnn.com/2010/01/14/pf/charles_schwab.moneymag/
Leybourne, Steve. (2012).
Lecture 2 – Types of Innovation, and their Organizational and Market
Challenges. Boston University. Retrieved from http://vista.bu.edu/webct/urw/tp0.lc5116011/cobaltMainFrame.dowebct
Leybourne, Steve. (2012).
Lecture 3 – Innovation as Value Creation: Understanding the Basis of
Competition. Boston University. Retrieved from http://vista.bu.edu/webct/urw/tp0.lc5116011/cobaltMainFrame.dowebct
Leybourne,
Steve. (2012). Lecture 4 – Alliances and Partnerships as a Way to Add Value to
Products and Services. Boston
University. Retrieved from http://vista.bu.edu/webct/urw/tp0.lc5116011/cobaltMainFrame.dowebct
Leybourne, Steve. (2012).
Lecture 5 – Using Market Research Techniques to Add Value. Boston University. Retrieved from http://vista.bu.edu/webct/urw/tp0.lc5116011/cobaltMainFrame.dowebct
Moore, G.A. (1995).
Crossing the Chasm - And Beyond. Inside the Tornado Harper Business Essentials.
p. 13-26.
Ross, Alice (2009, October
16). Investors set to pay more for advice. Financial Times. Retrieved from http://www.ft.com/intl/cms/s/2/b3d423ce-ba81-11de-9dd7-00144feab49a.html#axzz1x9uyXwbu
Vincent, Matthew. (2009,
October 16). Fees shake-up will result in extra sums. Financial Times.
Retrieved from http://www.ft.com/intl/cms/s/2/949c01d8-ba78-11de-9dd7-00144feab49a.html#axzz1x9uyXwbu
Warwick-Ching, Lucy.
(2009, October 16). Wealth management under fire. Financial Times. Retrieved
from http://www.ft.com/intl/cms/s/2/267c8dee-ba82-11de-9dd7-00144feab49a.html
Eric Tse, Richmond Hill, Toronto
Tse and Tse Consulting -Security, Identity Access Management, Identity Access Management Toronto, Solution Architect, Consulting
Linkedin ID: hfetse@hotmail.com
company email: tsetseconsulting@gmail.com
My Company Web Site http://tsetseconsulting.webs.com/index.html
Company Blog http://tsetseconsulting.wordpress.com/
Company Blog 1 http://erictse2.blogspot.com/
Facebook Company Page http://www.facebook.com/tsetseconsulting
Hyundai Touch the Market Case – General Issues and Using Ethnography
Case Summary and Background
Hyundai was interested
in designing new automobiles that would specifically attract the Gen Y
audience, which had historically found the brand to be less-than interesting
both from a styling and a functionality standpoint.
What they did: They
designed and implemented a Touch The Market (TTM) Immersion, taking key
stakeholders and designers (both American and Korea) through a multi-day event
that include: 1) Experiential, metaphoric exercises around the concept design.
2) Automotive and non-automotive panel discussions. 3) Digital college campus
scavenger hunt. 4) Competitive ride and drives. 4) Group ethnographies.
Each participating team
captured these experiences in a competition culminating in a deliverable that
included new concept design and features.
The Impact is this TTM
approach enabled new vehicle designers to gain a range of highly stimulating
perspectives on and emotionally based learning’s about Gen Y, enabling the
design of two new vehicles slated for 2012 launch.
General Issues:
Issues it raises
includes
-
How does a company select one of the
customer centric innovation approaches among others- especially at the concept
stage?
-
How would we know this process developed
will really bring the right customer input?
-
How can we develop better vehicles, vehicles
that better fulfill the needs of the customer?
-
What is the true coax and how to get
true coax from customer?
-
How can we incorporate the Voice of the
customer?
-
Use and misuse of the ethnographic
approach to guiding product development and/or improvement.
-
Community-style development, adding
non-American participants.
Ethnographic approach
Goal and Problem Statement
In order to help the
team gain a deeper understanding of the glamour mom, Hyundai ventured out into
where these women lived: their homes, hearts, and world. Hyundai got to know
what mattered to them, so that Hyundai could make the Santa Fe more meaningful
to them. This type of ethnographic research takes into account that what people
say does not always jive with what they think and feel. So Hyundai watched,
listened, asked questions, and let people speak freely about their lives.
Ethnographic research allowed Hyundai to approach consumers as whole
individuals in order to create products that connect them to the Hyundai brand.
(Hyundai, 2007)
What Ethnography is
Ethnography is a
qualitative research method aimed to at exploring cultural phenomena which
reflect the knowledge and system of meanings guiding the life of a cultural
group. (Geertz, C. 1973) (Philipsen, G. 1992).
It studies people, ethnic groups
and other ethnic formations, their ethnogenesis, composition, resettlement,
social welfare characteristics, as well as their material and spiritual culture.
In the biological sciences, this type of study might be called a "field
study" or a "case report", both of which are used as common
synonyms for "ethnography".(Boaz, Wolfe, 1997)
Pros, Cons Limitations of Ethnography (Katz, 2006)
Pros
-
A lot of information can be gained from
observing a customer’s environment first-hand
-
An oft-cited reason for using
ethnography is the belief that many “unspoken” needs exist that, when
discovered, can lead to enormous breakthrough innovations—real “game-changers”
in industry parlance. Some say that the only way to “hear” these unspoken needs
is through observation.
Cons & Limitations
-
Onsite interviewing is far more
expensive and time-consuming than central-location interviewing.
-
To create an affinity diagram and
prioritize customer needs, these needs must, at some point, be expressed verbally
-
At risk of stating the obvious, there
has to be something that is possible and practical to observe or ethnographic
research simply does not make sense
-
Observation can alter behavior—the so-called “Hawthorne effect.”
-
Many environments do not lend themselves
to easy recording.
-
Many respondents don’t want to be
questioned while they are concentrating on the task at hand
How Ethnography relates to course concepts
Concepts: "exploration space" &
"what job was this product hired to do?"
It is very difficult to
reach the place in our imagination where we can project to what might be or
what others might think—but it is important to do this in order to successfully
understand products, and what they need to deliver. Many people call this leap to more abstract lateral thinking
"thinking outside the box." It is intellectually challenging, but
vitally important. (Unger, Leybourne, 2012)
Sometimes it helps to
have some sort of tool to assist in framing our thinking in a different way,
and taking us away from out comfortable thought processes. The tool is known as exploration matrix.
It's use is explained in some detail in the Christensen reading
"Discovering what has been Discovered: What Job was your Product Hired to
Do?" (Christensen C.M. 1999)
Analysis
As innovators, Hyundai can apply ethnography to understand customer
needs, using the three steps process.
Step 1: By joining customer regular life activities and events using
ethnographic approach, observe and perhaps ask actual customers how they use
the product, and what their values and priorities for the product are.
Step 2: Observe and ascertain what else the customers could have used
using ethnographic approach, and what the advantage of other products. This
identifies the competition, and opens up different social and emotional
dimensions of the customer experience.
Step 3: Back to the lower left-hand corner of the Exploration Space
Matrix, because solutions and improvements need to be based on what is possible
Does Ethnography do
a good job at that goal?
The goal as stated is
to gain a deeper understanding of the glamour mom. The direct measure would be
how mid age woman customers are satisfied with the design of the car and what
are the sales figures of the car related to mid age women. There is a lot of
good feedback about how the TTM. However there are not too many information on
how much TTM is using ethnographic approach to gather requirements for ladies.
Also there are sales figure related model but not specific to woman. However
this seems to help based on the assumption that woman are not as good as man in
terms of expressing their true feelings verbally. This ethnographic approach on
woman implies sexism and may not be a politically correct measure.
Final Remarks: What would Kawasaki or Adams say?
Kawasaki: Build crappy
cars that fulfill all the customer fantasies (Safety can be tested in beta
testing).
Adams: Do not assume
you really know your customers until you have ethnographically approached them.
Reference
Boaz. N.T. & Wolfe,
L.D. (1997). Biological anthropology. Published by International Institute for
Human Evolutionary Research. Page 150.
Christensen C.M. (1999)
Innovation and the General Manager Boston, MA: McGraw-Hill Irwin. Section 2.3 –
Discovering what has been Discovered: What Job was your Product hired to do?
(pp. 169-178)
Geertz, C. (1973).
Thick description: Toward an interpretive theory of culture. In The
Interpretation of Cultures: Selected Essays (pp 3-30). New York: Basic Books,
Inc., Publishers
Hyundai. (2007).
"Hyundai uses 'Touch the Market' to Create Clarity in Project
Concepts". Visions Magazine, June 2007
Katz. (2006).
Viewpoint, The truth about ethnography. PDMA Visions MAgAzinE
Philipsen, G. (1992).
Speaking Culturally: Explorations in Social Communication. Albany, New York:
State University of New York Press
Unger, Leybourne. (2012). MET AD 741 Lecture Notes,
Boston University
Eric Tse, Richmond Hill, Toronto
Tse and Tse Consulting -Security, Identity Access Management, Identity Access Management Toronto, Solution Architect, Consulting
Linkedin ID: hfetse@hotmail.com
company email: tsetseconsulting@gmail.com
My Company Web Site http://tsetseconsulting.webs.com/index.html
Company Blog http://tsetseconsulting.wordpress.com/
Company Blog 1 http://erictse2.blogspot.com/
Facebook Company Page http://www.facebook.com/tsetseconsulting
Eric Tse, Richmond Hill, Toronto
Tse and Tse Consulting -Security, Identity Access Management, Identity Access Management Toronto, Solution Architect, Consulting
Linkedin ID: hfetse@hotmail.com
company email: tsetseconsulting@gmail.com
My Company Web Site http://tsetseconsulting.webs.com/index.html
Company Blog http://tsetseconsulting.wordpress.com/
Company Blog 1 http://erictse2.blogspot.com/
Facebook Company Page http://www.facebook.com/tsetseconsulting
NTT DoCoMo Case
Introduction and Background
DoCoMo not only demonstrates the
power of marketing analysis and marketing techniques as they are applied to the
introduction of technology, but they also illustrate the power of “re-framing,”
or thinking about problems and opportunities differently which defines the
essence of a product or service differently (Unger, 2012).
Accomplishment and Strength
DoCoMo
aims at "reframing," or creatively re-defining the "frame of
reference," or the way in which a set of criteria or dimensions of a
technology, product, or service should be perceived, understood, or
appreciated. This includes, most frequently, the dimension in which a specific target
(i.e. customer or group) the product or service is intended for (Unger,
2012). As Christensen's Product Exploration Matrix suggests, this proves beneficial more
broadly as it is typically consistent amongst viewing product and service
features (Christensen C.M, 1999).
Additionally, the NTT DoCoMo reinforces the theme of the fashion in which partnerships and alliances can extend the value of products as well as emphasises the importance, especially in a fast moving industry, of accurately understanding, at all times, the basis of competition in a product category (Unger, 2012).
NTT DoCoMo enables ideas and concepts, when carried out correctly, to be embraced by a particular market segment, leading to explosive growth over a very short period of time. DoCoMo contains the origins of many "smart phone" features in mobile communication that we often take for granted and see today regular mobile products. (Unger, 2012)
NTT DoCoMo applies the DICCE concept to market their products. Deep, Indulging, Complete, Elegant and Evocative, or DICCE, is a powerful marketing tool (Kawasaki, 2000). This tool involves the lifestyle factor of the target market, enforcing the idea that consumers will purchase a product because they want to either be different or because they want to identify with a group, or "tribe," of similar consumers. NTT DoCoMo, appealing to this natural human desire, constantly attempts to have their products as or more popular than the latest and trendiest mobile phone. They use the I-mode system, providing unique and extraordinary user experience to target audience, in order to achieve this (HBS, 2002).
Additionally, the NTT DoCoMo reinforces the theme of the fashion in which partnerships and alliances can extend the value of products as well as emphasises the importance, especially in a fast moving industry, of accurately understanding, at all times, the basis of competition in a product category (Unger, 2012).
NTT DoCoMo enables ideas and concepts, when carried out correctly, to be embraced by a particular market segment, leading to explosive growth over a very short period of time. DoCoMo contains the origins of many "smart phone" features in mobile communication that we often take for granted and see today regular mobile products. (Unger, 2012)
NTT DoCoMo applies the DICCE concept to market their products. Deep, Indulging, Complete, Elegant and Evocative, or DICCE, is a powerful marketing tool (Kawasaki, 2000). This tool involves the lifestyle factor of the target market, enforcing the idea that consumers will purchase a product because they want to either be different or because they want to identify with a group, or "tribe," of similar consumers. NTT DoCoMo, appealing to this natural human desire, constantly attempts to have their products as or more popular than the latest and trendiest mobile phone. They use the I-mode system, providing unique and extraordinary user experience to target audience, in order to achieve this (HBS, 2002).
Limitations
Cultural and natural human issues
involved in doing innovation at traditional bureaucratic organizations may
plague DoCoMo , but they demonstrate how to overcome these hurdles. For example,
in traditional Japanese companies, one is supposed to hire from within; however,
the CEO of DoCoMo hires two executives from the outside that have wireless
internet business experience in order to lead marketing and innovation.
Additional issues involve attempting to assimilate the concepts of one country (Japan) to different country. For example, most overseas operators are extremely reluctant to relinquish control over content to third parties, making it harder for overseas carriers to adopt the i-mode model. There were also differences in consumer behaviour. The team has been working with foreign telecommunication partners in order to bring the i-mode model to U.S. and European markets. On the other hand, they are adopting different marketing strategies for other international markets.
In 2002, DoCoMo faced some challenges regarding the use of "FOMA" (e.g. third generation or 3-G wireless technology) in their i-mode offerings within Japan. These issues greatly impacted the actual "user experience.” This also implies that a basis of competition is changing for the customers that they have targeted.
Additional issues involve attempting to assimilate the concepts of one country (Japan) to different country. For example, most overseas operators are extremely reluctant to relinquish control over content to third parties, making it harder for overseas carriers to adopt the i-mode model. There were also differences in consumer behaviour. The team has been working with foreign telecommunication partners in order to bring the i-mode model to U.S. and European markets. On the other hand, they are adopting different marketing strategies for other international markets.
In 2002, DoCoMo faced some challenges regarding the use of "FOMA" (e.g. third generation or 3-G wireless technology) in their i-mode offerings within Japan. These issues greatly impacted the actual "user experience.” This also implies that a basis of competition is changing for the customers that they have targeted.
When and
What was Relevant/ Irrelevant?
NTT DoCoMo market contains, though containing many
trend changes, one main trend change in particular. The NTT DoCoMo case initially leaned towards
marketing their products to business users exclusively. This was considered as
irrelevant; however, the information that started to accrue indicates that the
youth market began to engage with the product, resulting in a change of focus. To
make such change, one needs information, exhibiting just how powerful the
correct information can be.
DoComon’s
Current Situation
NTT Docomo, accumulating more than 53 million
customers as of March 2008, more than half of Japan's cellular market, the company
provides a wide variety of mobile multimedia services. These include i-mode,
which provides e-mail and internet access to over 50 million subscribers, and
FOMA, launched in 2001, which was the world's first 3G mobile service based on
W-CDMA (nttdocomo.com, 2012).
In addition to wholly owned subsidiaries in Europe and North America, the company is expanding it’s global outreach through strategic alliances with mobile and multimedia service providers in Asia-Pacific and Europe. NTT Docomo is now listed in the Tokyo (9437), London (NDCM), and New York (DCM) stock exchanges (nttdocomo.com, 2012).
In addition to wholly owned subsidiaries in Europe and North America, the company is expanding it’s global outreach through strategic alliances with mobile and multimedia service providers in Asia-Pacific and Europe. NTT Docomo is now listed in the Tokyo (9437), London (NDCM), and New York (DCM) stock exchanges (nttdocomo.com, 2012).
History
and It’s Impact on Japanese Innovation
Ultimately, DoCoMo’s i-mode is far more than only a successful
mobile Internet service as it has proven to own a dynamic innovation system that
endogenously generates over time significant co-evolving innovations in
content, customer tastes and preferences, and applications, enabling
technologies and formation of organisations.
As such, it is appropriate to include DoCoMo’s i-mode system with other
key Japanese systemic innovations that have shown wide-ranging impacts, such as
the just-in-time system of production (Fransman,
2002).
Reference
Christensen C.M. Innovation and the General Manager Boston, MA:
McGraw-Hill Irwin. Section 2.3 – Discovering what has
been Discovered: What Job was your Product hired to do? (1999): pp. 169-178.
Fransman, Martin. “Explaining the success of NTT DOCOMO’s I-MODE
wireless Internet Service
HBS 9-502-031” (July 2002).
Kawasaki, Guy. "Don't Worry Be Crappy?" Rules for
Revolutionaries. (2000): Chapter 2.
"Company History | About Us | NTT DOCOMO Global." Company
History | About Us | NTT DOCOMO Global. Web. 29 May 2012.
.
Unger. Lecture 6, course MET AD 741, Boston University. (2012).
Eric Tse, Richmond Hill, Toronto
Tse and Tse Consulting -Security, Identity Access Management, Identity Access Management Toronto, Solution Architect, Consulting
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Eric Tse, Richmond Hill, Toronto
Tse and Tse Consulting -Security, Identity Access Management, Identity Access Management Toronto, Solution Architect, Consulting
Linkedin ID: hfetse@hotmail.com
company email: tsetseconsulting@gmail.com
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The Eli Lilly and Co. Case – Innovation in Diabetes Care: What Went Wrong? Why? and What Should the Next Step be?
The Eli Lilly and Co. Case – Innovation
in Diabetes Care: What Went Wrong? Why? and What Should the Next Step be?
As
a company, Eli Lilly may have achieved more success had they read chapters two
and nine of Adams' “ A Good Hard Kick in
the Ass: Basic Training for Entrepreneurs.”
Background
Despite
efforts of high investment to maintain it's dominant position as an insulin
manufacturer, the company began to see it's worldwide position weaken. To add
to the devastation, Lilly missed several waves of innovative opportunities
within the diabetes care market. At the time of the case, Lilly was engaged in
a determined effort to strengthen it's position in insulin and grow beyond that
single product, exploring alternative products and services (Unger, 2012).
Mistakes
Eli Lilly dropped in overall market
share in diabetes care from 1980 to 1995 (Christensen C.M., 1996). What
mistakes did Lilly make in its product and service initiatives, and why did
this happen? Is Eli Lilly & Co. talking to the right persons or groups to
determine what product features or advancements would be most appreciated by
the “diabetes related market?”
Lily
launched three innovative insulin products: the “Insulin pens”, “Match” and
“Humulin,” all priced premium in comparison to your traditional insulin and/or
insulin delivery syringes (HBS, 2004). Unfortunately, Lilly's tendency to
invest significant amounts of funding into commodities proved to be one of
leading factor in Lilly's decreasing market share. Usually, a customer will become
more price sensitive if satisfied with a certain commodity; therefore, the
buyer is less likely to purchase the product without some sort of substantial
gain (Anthony Romano, date).
Additionally,
Lilly and Novo launched several of the same products simultaneously in a race
to place first in the market. This marketing assault of new products outweighed
customer demand, presenting yet another downfall (Christensen C.M., 1999).
Lastly,
the behavior of a majority of the patient population towards the treatment and
care of their diabetes shifted, becoming substandard by patients determining
their own ways of therapy. In order to utilize insulin pens, patients must
effectively monitor and administer multiple insulin shots daily. Though it may
be an arduous and lengthy process for all parties, putting forth efforts that
will change the behavior of this majority could prove successful in repairing
the damage that has been done.
Lily
appears to avoid speaking or listening to the appropriate group of individuals
that can significantly improve their positions by determining products and
featuring advancements.
Lessons
Learned & Next Steps
What should we learn from this case?
Should Adams' way be our model?
Lesson
Learned 1: The Shifting Basis of Competition – Develop a Sense of Pain
While
other companies are constantly developing and introducing new products and
services, along with making incremental improvements to existing ones, Lily
refuses to play on on a static competitive space.
Adams, discussing “customer pain,” suggests that Lily ought to put themselves in the shoes of potential customers to "develop a sense of their pain" (Adams R, 2002). This way, Lily can obtain the knowledge necessary to release products that are of high customer demand.
Adams, discussing “customer pain,” suggests that Lily ought to put themselves in the shoes of potential customers to "develop a sense of their pain" (Adams R, 2002). This way, Lily can obtain the knowledge necessary to release products that are of high customer demand.
Lily
should be looking for wicked, brutal, vicious, hideous pain amongst potentials
– the type of pain that makes people want to fix their situation immediately.
Lily
should ascend the market-validation pyramid by practicing the following,
step-by-step: Lily must lay down the groundwork by: verifying the pain around
the problem, along with a likely market, using secondary research (i.e. the
internet, analyst reports, the industry press) in order to discover market
data, market size, and direction of market trends.
Stages:
ñ Stage 1: Explore the pain. Use
questionnaires to do quantified market research which will in turn uncover the
target market. Then:
◦
Perform customer interviews to
locate the greatest pain.
◦
Create a heat map to visually
represent where the worst pain lies.
◦
Generate several hypotheses
about target markets.
ñ Stage 2: Envision the solution.
Test the target market hypothesis found in Stage 1 against a set of quality
influences. Then:
◦
Develop and sharpen a
presentation and product prototype.
ñ Stage 3: Establish credibility.
Evoke excitement in leverage influencers (thought leaders, analysts,
consultants, and editors) about your company, product, and prospects.
Lesson
Learned 2: Explore new opportunities
Undoubtable
are the difficulties that may arise if Lily were to change their way of
thinking, transcending normal patterns of thought, as they have historically
been consistant in their ideas about what can be made possible. This fact makes
reaching that place in Lily’s imagination in which they hold the power to
predict customer desires, but, despite this obvious hurdle, understanding of
potential clientele allows for successfully understanding the products in which
they need to deliver.
"Discovering
what has been discovered: What Job was your Product Hired to Do?" (Christensen C.M., 1999b).
As
much as Lily ought to know what the customers are demanding, they must follow
out these steps in order to be successful:
ñ Step 1: Watch and ask actual customers
the way in which they use the product, what their values consist of, and what
they prioritize, starting with the most important aspects, in the product.
ñ Step 2: Ascertain the advantages of
alternative products that customers could have opted for. This will help to
identify the competition and open up different social and emotional dimensions
of the customer experience.
ñ Step 3: After product requirements have
been identified, back track to the lower left-hand corner of the Exploration
Space Matrix because solutions and improvements need to be based on what is possible
(Christensen C.M., 1999b).
Lesson
Learned 3: Validate Markets
Lily
only has a one-time snapshot. Losing your edge is the first step to becoming
dead meet, so one must keep implementing effective ongoing strategies for
assessing customers and their needs in order to validate the market again and
again. Never stop focusing on the customer!
(Adams R, 2002).
Reference
Adams R.
(2002) A Good Hard Kick in the Ass: Basic Training for Entrepreneurs New York:
Random House/Crown Business
Christensen C.M. (1996) Eli Lilly and
Company: Innovation in Diabetes Care Harvard Business School Publishing,
Boston, MA 02163
Christensen C.M. (1999) Innovation and
the General Manager Boston, MA: McGraw-Hill Irwin. Module 2 – Finding New
Markets for New and Disruptive Technologies. (pp. 95-102)
Christensen C.M. (1999b) Innovation and the
General Manager Boston, MA: McGraw-Hill Irwin. Section 2.3 – Discovering what
has been Discovered: What Job was your Product hired to do? (pp. 169-178)
(eReserve)
HBS 9-696-077 (April 2004). Eli Lilly and
Company: Innovation in Diabetes Care.
Anthony Romano, (date), Eli Lilly and
Company: Innovation in Diabetes Care
Unger. (2012). Lecture 3, course MET AD
741, Boston University
Eric Tse, Richmond Hill, Toronto
Tse and Tse Consulting -Security, Identity Access Management, Identity Access Management Toronto, Solution Architect, Consulting
Linkedin ID: hfetse@hotmail.com
company email: tsetseconsulting@gmail.com
My Company Web Site http://tsetseconsulting.webs.com/index.html
Company Blog http://tsetseconsulting.wordpress.com/
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Eric Tse, Richmond Hill, Toronto
Tse and Tse Consulting -Security, Identity Access Management, Identity Access Management Toronto, Solution Architect, Consulting
Linkedin ID: hfetse@hotmail.com
company email: tsetseconsulting@gmail.com
My Company Web Site http://tsetseconsulting.webs.com/index.html
Company Blog http://tsetseconsulting.wordpress.com/
Company Blog 1 http://erictse2.blogspot.com/
Facebook Company Page http://www.facebook.com/tsetseconsulting
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