Innovation Learnings Models

A.   Sporadic or Distinct Phases of Learning 

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B.   Continuous Phases of Learning

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What does this mean ?

Both “ Learning Models ” are in general use and each has merit. However, depending on the – urgency to create new products / services with huge appeal, need to increase relevance and revenue,  the nature of the innovation(s), how important it is to learn fast, etc.  – there is need to recognize which model best enables your organization to –

1. Improve
   • UX
   • operational efficiencies
   • decision making
2. Expand opportunities
3. Increase
   • Revenues
   • Profits
   • Competitive Advantage
4. Better Manage
   • Change
   • Risk

So while both Learning Models are in use, the difference pertains to the objectives to be achieved based on the desired culture of the organization and the mindset of leadership to effect change and meaningfully improve outcomes from innovation. In this context, the organization is much better positioned for success to be more entrepreneurial with the “ Continuous Learning Model “.

Example of a “ Continuous Learning Model ” to increase the rewards from innovation

Starbucks / Amazon Go – Collaboration

Starbucks collaborating with Amazon Go on a New York City store to combine the Starbucks Pickup concept with the Amazon Go concept.

Outcomes  

The Amazon / Starbucks collaboration has resulted in an elegant Go store designed by Starbucks to pull in commuters with a predictable rhythm as well as for cross-sell and up-sell opportunities.

In addition, the high brand affinity for Starbucks adds a halo effect to the Amazon brand with people in their daily lives and those wishing to hang out in their place — and paying for the privilege !

Further –

1.  Amazon gets a front-row seat to study Starbucks’s hyper-efficient food and beverage operations.

2.  Starbucks realizes high value by –
  A. Observing how their customer experience is impacted by technology
  B. Learning about Amazon’s Go technology

… with important insights on –

1. How does purchase size per customer visit compare between traditional Starbuck stores and the Amazon Go location ?
2. Is there an uptick in grab ‘n’ go purchases versus Starbucks’ own grab ‘n’ go items ?
3. How does dwell time in the Go store compare to traditional Starbucks locations nearby ?
4. How do customers feel about the presence of the Amazon Go security gates and all the surveillance cameras ?
5. How does the composition of the customer experience in the Amazon Go store affect customer visit frequency ?
6. How does the composition of the customer experience in the Amazon Go store affect brand perception ?
7. How does the composition of the customer experience in the Amazon Go store affect customer loyalty ?

With success in business being about expanding capabilities, making ongoing operational efficiency improvements, delivering  a great experience and value for Customers, etc.  In addition to having more ways for a brand to increase relevance and revenue, it’s also important to mitigate your products and services from being commoditized. And the more aware you are of the different learning models to identify and make good on opportunities.

Continuous  Learning  &  Experimentation  is  Essential  for  Success

With Starbucks / Amazon Go collaboration utilizing a “ Continuous Learning Model ” based on experiences and experiments –  Chick-fil-A,  Kaiser Permanente, OSF HealthCare and others have also invested in facilities to prototype and test new products / services as well as potential alterations to current products / services.  This is essential to improve the probability of success by expanding organization capabilities, increasing business appeal, and further improving the User experience. 

If interested in learning more about how to “ Innovate for Impact “, please contact CAIL.

Jan 27, 2022  –  CAIL Innovation commentary      info@cail.com      www.cail.com      905-940-9000