Monthly Archives: October 2015

business model, disruptive innovation, technology

Are all innovation disruptive?

Are all innovation disruptive?

This question was interestingly raised in last class’s tutorial and article illustrates an example of rising innovation that makes use of technology and the business model: service-providing apps.

Apps, such as Instacart, Sprig, Munchery examples of these services that provide the convenience shopping whenever and wherever, expanding virtual shopping to perishable goods such as groceries and meals. Other apps include laundry and mail services. These are flourishing in large American cities such as San Francisco and New York.

These services play on two trending values of the modern consumer: instant gratification, and technology dependency. These apps are easily accessible, meals, groceries, or clean laundry are simply a tap on your smartphone away. Convenience and time can now be purchased with money.

http://www.science-engineering.net/images/articles/mobile%20phone%20apps.jpg

http://www.science-engineering.net/images/articles/mobile%20phone%20apps.jpg

These services may be more disruptive to certain industries that rely on consumer segments who value convenience, and live the fast-paced lifestyle, where time is money. However, as a university student with minimal income and burdensome student debt, convenience isn’t really a commodity that I’m willing to shell out extra bucks for.

Thus, I think industries are only disruptive when a there is an unanimous shift in trends of consumers values. But as for me, I think I’ll stick with grocery shopping in person for now.

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Auto, Business Ethics, Environment

The Volkswagen Scandal: A Catalyst for the EV Industry

Maybe we’re all afraid of change.

We know that climate change is a problem, and carbon dioxide emissions are harmful for all of us, but why aren’t we trying to eradicate it? Why are we still demanding gasoline-run cars?

This current auto industry is not sustainable. Although radical improvements have been made to improve the environmentally-friendliness of a gasoline-run car, the auto industry is still stubbornly reliant on combustion engines and fossil fuels. As environmental awareness is raised and governments passing stricter regulations for emission-testing, this industry is bound to collapse and become obsolete sooner or later. Taking Volkswagen for example, we see that in order to remain viable in this outdated industry, ethical boundaries will inevitably be crossed.

The Volkswagen scandal isn’t the first time car companies are cutting corners to make emission-tests. For decades, emissions-testing isn’t as regulatory as it has been sold to consumers. European automakers makers arrange for their own testing of their cars, American cars differ from the way they preform in testing and they way they perform on the streets.

It is time that our consumer eyes are open to the misplaced truths that have been fed to us by automakers. Perhaps, this is the opportunity the EV industry is looking for to catalyst their domination of the auto market scene of the future.

http://www.yourenergyblog.com/wp-content/uploads/2013/02/electric-vehicle-industry.png

http://www.yourenergyblog.com/wp-content/uploads/2013/02/electric-vehicle-industry.png

Let’s embrace change.

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teamwork

Teamwork: Life or Death Situations

Hiroshi Mikitani, CEO of the Japanese internet giant, Rakuten, takes his leadership team on annual mountain-climbing trips to the peak of Mount Tanigawa, a mountain notorious for taking more lives than Mount Everest. Mikitani’s rationale for his yearly unconventional trip was that he saw it as a fantastic non-traditional opportunity to force his team to get to know one another on a deeper level. He saw the trip as a tangible representation and reminder of the teamwork necessary through whatever hills and valleys the company may face. (Pun intended).

Recently, I patted my fellow teammates on the back for completing the first part of the Group Business Plan and this article is a fantastic reminder of the importance of fostering teamwork. When a team member slips, are we there for them the whole way, thick and thin? Or will we, mindful of our own safety, let them keep falling?

http://benharkerphoto.com/wp-content/uploads/2013/03/cliff.jpg

http://benharkerphoto.com/wp-content/uploads/2013/03/cliff.jpg

This physical journey that the Rakuten’s leadership team embarks illustrates the how a team should function. We don’t necessarily have to take every team member we are met with in the future on a physical perilous hike, (albeit, there are many beautiful mountains in British Columbia to explore), but we should remember that our team members, as valuable assets as they are, are human too and it is worthwhile to take the given opportunity to invest in deeper, more meaningful relationships.

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Uncategorized

Behind the Operations of Zara: A Dynamic, High-Street Fashion Retailer

In this fast-paced modern society, consumers have a developed a need for instant gratification. Tables have turned for the food industry, the technology industry, and now the fashion industry. Among young adults, a shift is seen in taste from big brand names such as Abercrombie, to dynamic retailers that frequently renew their styles. Zara, a blossoming Spanish retailer specializing in high street-wear, is dominating the fashion scene with its cheap-chic apparel and its reliability to regularly renew stock and have new trends available.

What allows Zara to keep up with the demands of modern consumers is similar to Dell’s approach of extremely fast-paced operations: low inventory stock and high inventory turn-over rate. This mitigates whatever risks of carrying large inventories, especially in the spirited fashion industry, where trends bloom and wither rapidly. Zara takes only around two weeks for a drawing board design to become store-shelved, and allowing Zara introduced new trendy items weekly.

 

http://media1.popsugar-assets.com/files/2013/06/12/976/n/1922441/414106a80b505e3f_85b21502d2ea11e2b4bf22000aa80174_7.xxxlarge/i/Style-Clothing-Rack.jpg

http://media1.popsugar-assets.com/files/2013/06/12/976/n/1922441/414106a80b505e3f_85b21502d2ea11e2b4bf22000aa80174_7.xxxlarge/i/Style-Clothing-Rack.jpg

And here’s where economics comes into play. Zara, because of their tight turnover and low inventory, potentially faces an issue of scarcity of the more popular items. But Zara uses this as leverage, allowing the scarcity of popular items to keep consumers on their toes and to check back frequently for new stock, thus further increasing demand.

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