In this article, I would like to challenge quote from internal R&D innovation that “before open innovation, the lab was our world. Now with open innovation, the world has now become our lab”. I don’t believe that this statement accurately reflects Mondelez innovation process. I would argue as someone who has worked on the launch of more than 20 skus at the company, many of the most innovative ideas and successful product launches at Mondelez have come from the creativity of the employees who have been able to pair the internal capabilities with external consumer preferences. There are many logistical complexity that comes with innovation most specifically in the key categories where the company competes. Examples of this include the launch of OREO as a chocolate brand with the OREO CREME EGG in Canada and the launch of OREO MILK chocolate bars in the US in Europe. Also when addressing innovation in OREO, the Fourth of July OREO used previous similar process to its CADBURY MINI EGGS portfolio while the STRIDE GUM launch of SOUR PATCH KIDS GUM comes from the flavor technology of its SOUR PATCH candy portfolio and ownership of trademarks.
When considering the dynamics of politics and its importance to the economic dynamic of a nation, corporations almost always benefit from having strong relationships with the government in the regions in which they are operating. Although the government currently does not have the financial capability to fund impactful innovation, it does have the opportunity to incentives individuals as well as private corporations with other levers such as tax breaks. If the government can break down the barriers that currently prevent the brightest and most passionate individuals to aid implement changes or work for the government through partnerships, they will ultimately be able to launch projects that will help the people of their nation.
The example presented for GE presents as an innovative way that the company is able to gain a competitive edge in Aerospace Manufacturing. This technology also appears to enable designers to push the limits of what can be built as well as the timelines required to manufacture complex machinery. I think GE is making a smart investment when looking to expand its capabilities in additive manufacturing. One area that I think this type of manufacturing can be most value add is in the assembly and repair of remote large machinery such as wind turbines. This would potentially hasten the build times as well as reduce the down time required for the machines to be fixed.
When considering the challenges facing corporations looking to advertise not only must companies consider the effectiveness of their messaging, but they must also consider whether their advertising is actually reaching their consumers. Facebook and YouTube are platforms that have been able to build multi-billion dollar revenue businesses through the accurate targeting of customers through advertising and in many ways have democratized advertising so that it is not limited to large corporations with multi-million dollar brand budgets. In the wake of their success other corporations have also developed platforms to advertise for everyday websites to mommy blogs. Although on a brand by brand basis this may represent minimal waste, when aggregated this creates billions of dollars of waste. I agree that P&G is likely one of the best firms to look at tackling this challenge. However, given that brand strategy is their core competency, I think that they should outsource this challenge to their media team as a joint venture. If successful, this will ultimately create an opportunity for P&G to purchase their media team and bring the resource fully in house to remain competitive. However, if the results are able to make the entire market more efficient and reduce fraud in the advertising space, this may be something powerful to benefit consumers everywhere and be an opportunity that other companies will purchase if not solely owned by P&G.
Overall, as more competition arises in the credit card industry AMEX must take steps to be proactive in maintaining their customer base. In terms of differentiation, many banks(such as JP Morgan Chase) have additional levers to maintain customer loyalty. In considering options for moving forward, I think AMEX must be extremely cautious in looking to ask consumers to reveal more data. Many lawsuits have been filed against corporations claiming breach of privacy and government trends indicate that the political atmosphere will lead to further consumer protections. One feature of its product offering that AMEX can potentially leverage is its points system. Customers who are more price sensitive or points savvy, may be willing to complete surveys or opt in to share more specific purchase data if it results in gaining more points that can be used towards travel and other activities. This would ultimately help reduce the risk of claims against breach of privacy and reputational risk if executed properly.