LEVELS OF INNOVATION:
INCREMENTAL, BUSINESS-MODEL, CHANNEL-MODEL
All businesses innovate. But, rearranging the deck furniture
on the Titanic (an incremental innovation)
is not as powerful as getting an iceberg-resistant ship or an ice-berg-free
innovation is when you rethink the system of how you organize your
resources to create a breakthrough value for some target group of customers. You
may also, simultaneously, eliminate wasteful or dying activities. Common
phrasings: Weed to feed. Prune to grow. Downsize, Upgrade, Refocus and
Revitalize. Do a “Blue Ocean Strategy”, etc.
Continue reading 137. Amazon’s Channel-Model Innovation Challenge
PRICING EFFICIENCY ISN’T PRICING EFFECTIVENESS
Practice good-pricing hygiene. Don’t underprice SKUs or customers if they will continue to (happily) buy from you at higher prices. But, consider also the positive trade-off of lower prices in exchange for larger average order-size buying. What are your general buying and selling incentives for increasing order size?
CASE STUDY ON ORDER-SIZE ECONOMIES
For 2018, a $100MM contractor-supply distributor had roughly 4000 active accounts. More facts:
Continue reading 136. SELL WIN-WIN, LOWER PRICING (?)
AMAZON’S WAR ON CRaP
Amazon’s analytics can identity SKUs on which they “Can’t
Realize a Profit” (CRaP). Even with their improving, world’s best fulfillment
and last-mile delivery costs, they can’t cover costs on items lower than $15
AMZ’s fixes to date?
Continue reading 135. Fix Your CRaP Items and Their Root Causes