case innovation at retailers vsn 2.1e

8/6/2019 Case Innovation at Retailers Vsn 2.1E

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Entrepreneurial Innovation at Retail Stores:

Case Apple iPhone for the City(with Simulation Instructions)

We need to expand our product line. There are quite a few clever boys in the class

for the final game of cell phones. Apple, Google and Nokia from the West, and

Samsung from the East are stealing the show. We should not miss the show. In fact

we should al so become active supporters of one or the other clever guy. These

words were part of the preparation Retail Manager Appu had just made for the

meeting of the next morning.

1. Introduction

The manager Appu leads a major retail store in the city, which

is specialized in audio and video electronic goods, and now

looks forward to expanding his business with cell phones.

Considering the high market position of Apple iPhone in the

USA and outside, he was fancying the idea of adding this

specific product line. There already existed a number of stores

for cell phones in the city, yet there was no major store for

iPhone. Thus the manager liked to expand the stores existing

competitive position further by including the new product

line. As to how this has to be done was a challenge to Appu.

Appu had heard much about Apple Stores in the USA. He was

wondering whether his concern to capture the Apple iPhone

market was similar in any way to that of Apple Stores. Some

general background to the product and the stores could be

found, he thought. With these thoughts in his mind, he started

to look forward for paving the way for a product range as

advanced as that of Apple iPhone; see Figure 1.Figure 1Dedicated fans Apple iPhone

Apple iPhone TV Ad iPod& iTunes

(This and other Hyperlinks

may have to be Edited. Thenyou have to download video

and picture files using

separately supplied

information from

[email protected])
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A number of competitive products in the offer, some already

delivered through other shops in the city, however, made the

choice even more complex. For the sake of comparison the

manager asked one of his sales staff to make a brief survey

especially of the new generation of smart phones. The

survey revealed that the idea of taking up Apple iPhone

need not be the obvious and the best. The competitors

range of comparable products is broad as listed in Figure 2.

Whether he could develop some views on the product for

Many Smart phones in themarket

iPhone Competitors

Competitors iPhone

the future, which was not wholly in his hands, was a

separate issue. However major principles behind the success

of this product in the USA could be explored. Some of these

principles were visible in the Business Case he had comeacross in one of the meetings of the local Chamber of

Commerce. It was then told that the case Apples products

was an interesting one to discover scopes for improvement

in marketing and sales, or innovation. It was apparent also

for his business: see Apple products in Figure 3 and Apple

Store in Exhibit 1.

Figure 2Competitors productsagainst Apple iPhone

Figure 3A range of products atApple Store
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Apple stores

As an extension of its brand experience, Apple operates retail stores in the United States, Canada,

Japan, and the United Kingdom. The stores carry most of Apples products as well as many third-party

products and offer on-site support and repair for Apple hardware and software. The first stores were

opened in May 2001 and were designed for two purposes: to stem the tides of Apples declining share

of the computer market and to counter a poor record of marketing Apple products by third-party retail

outlets. The design of stores taken into account:

1. Creating an experience. This is accomplished through the striking glass staircase, store design,

and attention to the line of sight so that it feels more like walking into a hands-on museum

than walking into a retail store.

2. Honoring context. The store is organized by the context in which people use the products. With

digital cameras, photo printers, and Apples iPhoto software set up together, customers can

envision using these products in their own lives. By acknowledging the context in the design of

the store, Apple encourages its customers to dream about possibilities.

3. Prioritizing its messages. The store is visually spare with product packages kept below eye

level, and relatively few products on display. The store focuses on a handful of important

messages.

4. Instituting consistency. The Apple personality comes through every time the customer

encounters the brand, whether on television, in print or outdoor advertising, or through

interacting with one of Apples products. The Apple stores are no different, and Apple is able to

project that personality across all these channels by maintaining rigorous consistency of

design.

5. Designing for change. The front window displays are rigged using simple flat panels mounted

on tracks and cables. The system allows the displays to be changed quickly and easily while still

allowing a diverse range of possibilities for grabbing the attention of passersby.

6. Not forgetting the human element. The people who staff the store form an integral part of the

overall experience. Apple store employees dont look like run-of-the-mill retail workers.

Instead of name tags, they have business cards. And they all carry iPods on their belts, creating

the impression that they dont just work for Apple they live the lifestyle Apple is selling to

customers. Apples retail workers are brand emissaries.

Apple - iPhone 4 - TV Ad -App Store

Which market to serve and how?

Thanks to the involvement of a specialist on innovation, the

new business could now be scrutinised in only two

workshops. The workshops need be attended by a few persons

including the retail manager himself. All persons were

considered responsible for taking a decision on the needed

innovation beyond the product to marketing and sales. The

assignment of the workshop was thus specified.

AssignmentIdentify the most promisingmarket segment(s) for the newApple iPhone product line.Make a list of customer valuepropositions and how we canposition this product line inthat market.

Exhibit 1Case Apple Stores and

product exhibits
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Collaboration with INPAQT expert

In order to ensure that the participants stood open to signals

from outside and that the internal discussions did not go on

for ever, the external advisor was asked to take the lead. The

advisor belonged to a reputed consultancy firm, INPAQT of

the Netherlands, which claims to possess the most advanced

methods, software tools and simulations for innovating

businesses. Though the advisor should facilitate the

workshops, active participation by the participants would

yield the most suitable strategy for the store.

In the discussion that took place between the team and the

advisor prior to the first workshop, the following was agreed

upon as stated by the advisor.

The approach

Customer value propositionsFirstly relevant stakeholders in the business area would be

listed, and subsequently a stakeholder analysis will be carried

out in the workshop. After that, the most promising market

segment(s) would be selected. It was quite essential to know

which customer groups to target; Figure 4.

1Program of demands (POD)

consists of a prioritized list of

product attributes, formulated bycustomers and retailers. Product or

service attributes may refer to:

1. Functionalities;

2. Interface;

3. Support functions;

4. Costs such as price and relatedmaintenance;

5. Life span; and

6. Availability and accessibility.

They encompass the whole product

including the hardware, software,

services, package, and price.

UNLEASHING YOUR POWER TO INNOVATE!www.inpaqt.com

The selected market segments are expected to perceive a

definite set of priorities, also called customer value

propositions. These need to be defined and subsequently

translated into a program of demands1

(POD). This POD will

consist of various properties, or attributes, of the products or

services, which should fulfil the proposed values. The following

step of POD was to find out suitable functions that support the

identified values through the related attributes as shown in

Figure 5. By taking this step we can get insight as to which

functions create most value for the customers and with which

we can differentiate ourselves from the competitors. Such

functions are critical to the proposed business, thus they need to

be exploited through undertaking appropriate innovationactivities.

Figure 4Customers values could be

diverse depending ondemography, culture,economical and socialstatus

The 20 Countries With theHighest Per Capita Cell-PhoneUse
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1Copyright belongs to INPAQT

Innovation Management Suite

Identifying requirements of innovationThe critical functions thus identified can be met with

specific functional requirements that should also be

measurable. After identifying them, they will have to be

developed, if required. In other words, we will invest on our

innovation efforts with appropriate yardsticks. The others,

less value generating requirements, can be filled in as much

as possible with existing standard solutions, thus calling for

no additional investments of our resources. Alternatively,they can be outsourced. These are termed as general

requirements. Also any additional requirements of attributes

that are not fully covered by functions can be included in

this category. This choice underlines the most "value for

money". The sequential process of the simulation is

schematically shown in Figure 5.

Finally this innovative approach should help us enhance

our market position when we undertake the sale of the new

product Apple iPhone Next. We will do this by analysing

whether the new customer values support our corporate

values, and the corporate image.

Business caseAfter the workshops we hope to be in a position to compile

all needed inputs for presenting the product, and the

supporting service, which should meet all customer

requirements and needs. Finally, the resulting business

concept should bring clarity to our proposed business

expansion. Throughout this innovation journey the tools of

the Innovation Management Suite (IMS)1

software of

INPAQT will be used since they have proved very effectivein similar approaches to building new businesses.

Figure 5Schematic representation oftransferring customer values toneeded action requirements

Customergroups

Attributes

Customersvalues

Functions

General

requirements

Functional

requirements

Customergroups

Attributes

Customersvalues

Functions

General

requirements

Functional

requirements


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Workshop 1

2. Business Concept

Stakeholders analysis

The first workshop started with a short briefing of all

participants of the innovation team that consisted of:

1. The current retail manager, Appu, and his assistant2. The sales manager; he is also the head of the

marketing department

3. The major shareholder4. The financial controller

The scope of the project was projected by the retail manager

Appu. It lasted no longer than 5 minutes. Then thebrainstorming session began.

Customer target groups

In about 10 minutes after the start of the session, the main

stakeholders were identified. There was some discussion

about how best to define the customers. By definition, the

customer is essential. Without the customer, there is no

market and therefore no revenues from the business. Of the

various customer groups, however, teenagers and hobbyists

appeared the most attractive customers to focus on. Business

people and globetrotters scored the next highest. Theranking was done using a score of 5 as essential and 1 as

marginal. After some discussion among the participants, it

was decided to make value maps for the teenagers and the

business people as two major customer groups. In addition,

it was soon also clear that the new product must be

interesting enough for the retailer to sell. Therefore the

retailers also get the score 5, because when they are not

interested in promoting the product nothing will be sold.

The diagram thus drawn using the product and essential

stakeholders is shown in Figure 6.

Figure 6The product and majorstakeholders


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Figure 7Various stakeholdersincluding customers

Creating Stakeholders diagram

There are yet more important stakeholders whose interests

count, though those stakeholders need not be included for

decision making. Their interests, however, will reflect in the

form of their value identity for the proposed innovation. Thestakeholders have already been identified and shown in

Figure 7. While ranking the importance of various

stakeholders a semi-quantitative method was used using

every ones gut feeling.

Exercise 1: Hands-on practice and access to simulationsFigure 6 is a starting diagram for the complete simulation. In order to get familiar with the

simulation, you may start with a hands-on practice.

A brief introduction to the Demo Case can be watched through the link below. If required,

make changes using Edit Hyperlink (For better video quality look at List of Video clips)

LoginIn order to do the simulation, first you have to login into the e-learning module. You have been

supplied with login codes and access link to the module. In case you have any difficulty, you

may follow the instructions provided in de tutorial below. If required, make changes using

Edit Hyperlink

Access to various sectionsSubsequently access the Assignment and read through various sections. There are simulations

in Demo form as well as an independent simulation for your own project. Open up those

simulations to discover that the former has been partly worked out and left for you to completeit. The latter is completely empty for the simulation of your own project.

For accessing various sections, the following tutorial can be helpful:

1Fre uentl asked uestions Lo in roblems

Part 0_Introduction brief1

2Fre uentl asked uestions_Read-onl
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Exercise 2: Hands-on practice - Draw diagram view of stakeholders

You are required to add in the Demo version that you have accessed, the stakeholders shown in

Figure 3. Though they are already identified and shown in Figure 3, you are required to

practice by clicking on the stakeholder icon ( ) and placing it on the diagram, drawing the

arrow and giving the score. You may place a different score than that mentioned in Figure 3, ifyou have an argument for that. Give the link by using Edit Hyperlink

In order to do this, go to Demo Tool: Apple iPhone Next and then Stakeholder analysis

Frequently Asked Questions

While drawing diagram, you may find the following tutorials handy. You may need to give

the link by using Edit Hyperlink

Customer value map

In order to make a customer value map the relevant values

must first be listed. Basically there are 4 classes of values,

namely:

1. Psychological values, such as pleasure, and ease of use

2. Economic values, such as low cost

3. Social values, such as image and status4. Environmental and biological values, such as health and

safety.

Soon the team identified a number of values. An intense

discussion took place, however, about one specific value,

namely design. Some said that this is a value which

provides psychological well-being. The others argued that

this is not a value, but a reflection upon psychological

well- being such as aesthetic. Design is something that

belongs to the product, thus a product attribute. There

was no consensus yet; thus it was concluded to keep it asit is.

Brand image, services and product choice were

identified as superior values. These values are displayed in

Figure 8 ( icons). Brand image was perceived more

important for teenagers than for business persons. Thus

using again the scale of 5 (5 major and 1 for minor

importance) the former was scored with 5 and 3

respectively. Services however, is not so important for a

teenager in comparison with a business person, thus 3 and

5 respectively. Similarly product choice scored 2 and 4.

DefinitionValue: The value of any product isthe outcome of its ability to meet acustomers priorities.

Part 1 Pro ect customer stakeholder identification

3Frequently asked questions_Delete elements

4Frequently asked questions_Draw arrow
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Figure 8Diagram view of sample mind-mapping of target customer

groups, their values ( ) andattributes ( )

Then the team proceeded to determine the product

properties in the tongue of the customer. They are

considered also as criteria that buyers use for deciding

which of the products offers the most value to them. A

buyer gives due consideration to these product related

attributes in his judgement as to whether the product

complies with his wishes.

Major product attributes in our Case, for example, are

wide choice of applications and reliability ( icons).In addition to the direct relationship between an attribute

and a value, now it is seen that cross relationships with other

values also exist as shown in Figure 8. Reliability is a

strong property of services. Design was found to

contribute much to the brand image. Thus it is now

concluded that design indeed is an attribute. The team

started with a discussion whether these attributes can be

measured, in accordance with scoring and ranking.

As the team proceeded with an enthusiastic contribution

by everyone, at a given moment, the screen was filled with a

number of values and attributes. Moreover, nobody was anylonger able to add any important new values and attributes

to the map. Also the map had become already complex.

Only a limited set of complex relationships and their scores

are shown in Figure 9. Taking every combination in turn

also the scores between all values and all attributes were

refined. By this process everyone was forced to look at the

product from the customers perspective. It was noted that

customer groups may differ in their scores to the values, but

the type of attributes related to the different values, and their

scores remained the same.

DefinitionAttribute: A product attributeis the element with which thecustomer describes productquality.


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Exercise 3: Add more values and attributesPlace these additional values, attributes and their scores using Demo Tool. Your learning

experience will be high if you add one or two new values and attributes, and make some

changes in the existing scores.

In order to do this, go to Demo Tool: Apple iPhone Next and then Value mappingbasic. You can proceed with placing new values and attributes, connecting those for showing

their relationship and then ranking them with scores. Name the diagram, for example, Value

mapping basic 1. Brief instruction films are provided. You may need to give the link by using Edit

Hyperlink

Figure 9Diagram view of nearlycomplete mind-mapping oftarget customer groups

The customer value matrix

The team decided to convert the value map into a so-called

value matrix. The value matrix can be seen as an alternate

presentation of the value map. In fact all scores get

transferred from the diagram view to the matrix view. This

is done firstly by selecting all elements on the screen: the

product, customer groups, values and their attributes. By

clicking Create Matrix in the menu balk, a dialogue box

appeared. The model Value Proposition was chosen for the

matrix view, and a name is given: for example, Valueproposition basic as shown in Figure 10.

Part 2_Value identification

Part 3_Attribute identification
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Figure 10Matrix view of sample valuesand their attributes

Exercise 4: Create Value Proposition MatrixTransfer the diagram to the Value proposition matrix using Demo Tool. You can use the data

already supplied in the Demo Case.

In the existing matrix Value proposition basic, the additions that you just made under

Exercise 1, are not implemented yet. You can do this implementation by clicking Matrix on the

menu balk, selecting Organize view ..., and clicking the new values and attributes that youhave just added.

Name the matrix, for example, Value proposition basic 1.

A brief instruction film isprovided. You may need to give the link by using Edit Hyperlink

Simulation for prioritizing values and attributes

The attributes are positioned at the top in the first row. Below the identified customer groupsthe corresponding scores for the identified values are seen. Any needed value or attribute can be

added also at this stage by simply clicking on the corresponding icons. The value proposition

matrix of the nearly complete analysis using the diagram view of Figure 9 has been shown in

Figure 11. All values are now in the first column on the left.

Figure 11Customer valueproposition attributematrix

Part 4_Convert BM in Value Matrix
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With the set scores in the matrix, it is easy to find out the importance of each attribute for value

creation. We can calculate the attribute importance on value creation for the individual

customer groups. Then we click on the icon and select each customer group separately. Forthis analysis Positive Attribute Importance was chosen, and Negative Attribute Importance

was deleted. Also the Overall Attribute Importance that is normalized and expressed on a

scale of 10 was subsequently calculated. This is done by clicking the icon . With this we

combine the value creation potential of the attributes for both customer groups.The relative overall importance of the attribute design is the topper. Only next comes high

product value and all other attributes even less important.

Obviously these results are the outcome of the teams own analysis. It is based on the

experience and intuition of the team members. One may call this category of analysis a GIGO

system, meaning Garbage In,Garbage Out or "Rubbish in, Rubbish out system. This may,

however, be biased. In order to make it realistic, it may have to be validated by market

research. It is decided to validate the results later in a small survey. The team decided to do this

using the companys other retail outlets. For the present, the team considered this initial

estimate as tentative.

The new product against other products

After calculating the relative importance of the product attributes, the team wanted to score

similar products of major competitors. The scores range between 5 (perfect) and 1 (marginal).

Two major competitive products were identified: Smart phones and the relatively new Google

phone. In addition to these competitive scores, the team wanted to score the old product of

Apple iPhone as well. This product was noticed better than those of the competitors. However

in a high demanding market, a better product and better marketing and sales is not a luxury any

more. Thus the new generation iPhone was identified, and how it should be placed in the

market was scored in the last row. On some attributes, improvements were identified as

marginally or absolutely necessary. And on the other attributes no improvements were marked

as necessary. Taking up these attributes any further for improvement would require resourcesthat are far too scarce and costs far too high.

Exercise 5: Make a proposal of prioritized attributesWorkout on the sample matrix view Overall attribute importance. Fill in the competitorsdata for attributes. Make your own judgement for prioritizing attributes of the new proposed

product Apple iPhone. Next, obtain Product value realization of all products in the analysis.Use the Demo Tool for this exercise. The mode of simulation is explained in the video clip

below. You may need to give the link by using Edit Hyperlink

Part 5 1 Com etitive values and attributes

Exercise 6: Evaluate the resulting effects on customer valuesSimulate resulting customer values as affected by prioritizing the attributes using the Demo

Tool. The mode of simulation is explained in the video clip below. You may need to give the link

by using Edit Hyperlink

These results can be used for the report as explained in the video clip below.

Part 5_2_Com etitive values and attributes

Part 6 Re ort rioritizin values
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The attributes have been scored and competitive positioning of various similar products being

done, the advisor exposed to the team also the values that are relatively hard to measure.

There is an indirect approach for establishing the rather abstract and complex perceptions of

customer values. The advisor did this exposure by clicking the blue icon for each existing

product. Also the future proposed iPhone is shown to impact in its brand image. Product

choice is quite important, at least against market giants such as Smart phones. Surprisingly,however, price scores low. There was a long discussion whether high product value is an

important attribute for creating values such as price and experiences. In the tradition of

positioning the product at the high end, this may not be strange at all. However it was

concluded that specifically for Apple product line the former price has little effect. I t was

agreed that experiences refer to far too emotional features, and not contributed by an

economically defined attribute high product value.

Lastly, the team was curious to know whether it was possible to create one total score of

the value creating potential of the new product versus the old product. It was explained that this

could be done by clicking on the icon named Product Concept Score. This calculates the

total value creating score for the present product and the new product concept (see Figure 11).

This score was calculated for both teenagers and business people. In both cases the score ofthe proposed product concept was higher than the score of the present product. The team

concluded that this was an easy way to generate more concepts and see which of the concepts

seemed to be the best for both targeted customer groups.

Conclusions on customer value propositions and their

attributes

Everybody realized that these results were based upon the

present knowledge, experience and gut feeling of the team.

One question, however, came up after the above analysis.Why is there concern to place a new product and a new sales

and marketing approach with special attention on services?

In a dynamic market with rather short product life cycles it is

better to be the leader, both with the product and also at retail

stores. The product is designed, developed and supplied by

major manufacturers of the electronic industry. It is the

responsibility of the retail stores to position the product in the

market with supporting services. A chain-store such as Apple

Stores does it systematically at its 300 and odd stores in the

USA. In the upcoming Indian market, the role of an

individual major store in the city is not entirely negligible in

this regard; the contribution by services can be substantial. In

addition, telecom service providers have a strong influence in

the market, for contributing to the required services.

Then the team determined the scores for the new product

which the retailer would wish and thus can recommend to the

manufacturer to develop at least for the upcoming Indian

market. In general, the product should be as good as the

competitors (the qualifiers) and on a few attributes it must

have a higher score (the differentiators or USPs). The higher

scores are preferentially given to those attributes that matterhigh to the customer. It was decided to give priority to high

product value for augmenting services.


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Workshop 2

2.2. Functions and their requirementsThe second workshop started with making an inventory of

functions necessary to realize the attributes. Wherever

possible the functions were described with a verb and anoun. With this, each function is defined more precisely in

the description box; see Figure 12.

DefinitionFunction: A functionrepresents an action to be

performed by athing, orthe purpose of an activity;a function is convenientlyexpressed in a verb-nouncombination.

Figure 12Function description indetail

Defining functions in this way prevents us from

immediately start thinking in terms of solutions. In general,by defining the functions with a verb and a noun we are

stimulated to look for innovative solutions for those

functions. For example, Range of application functionalities

need to be provided; thus Provide a range of application

functionalities. This could facilitate searching for suitable

application, and giving choice of performance criteria such as

price, language, network choice, etc. This statement, provide

a range of application functionalities, would contribute to

fulfilling the attribute. Accordingly the team defined various

functions to fulfil the product attributes as shown in Figure

13. In the figure, however, the verbs have not been typed for

compactness.

Defining values, attributes and functions more precisely

was important for using the matrices later; it was more so

especially for the participants with limited technical

background. With this approach they became more involved

and committed to the whole innovation process. Scoring the

contributions of the functions to the attributes between 5 and

1 was done as before.


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Figure 13Functions for fulfillingproduct attributes

Exercise 7: Add more functions in the diagram viewExpand the diagram Quality Function Deployment basic on the Demo Tool. Choose a fewnew functions than those provided in the complete diagram of Figure 12, and score them.

Remember to update theset of attributes by copy from the previous diagram and paste

them on the present new diagram of functions.

Simulation for prioritizing functions and their requirements

The function analysis matrix

After having described a number of functions for fulfilling the attributes, the team decided toconvert the mind map of these functions into a matrix. This was done by clicking on the Create

a new matrix view icon in the toolbar and choosing Function Analysis matrix. The matrix that

appeared after completing the dialogue box looks as shown in Figure 14. The functions ( )

were listed in the first column of this matrix and the attributes ( ) in the first row. The Overall

Attribute Importance ( ) for the customers value creation was the first row just beneath the

attributes. If this row is not present, click on the icon in the menu balk. It will then appear in

the matrix view. After having done that, the participants devoted themselves to further

identifying any functions that were yet to be added for substantiating the attributes.

Once the list was completed, the team started with refining the scores. At the bottom of the

matrix, 2 rows with the scores on the attributes of the current product and the desired product

were present. These rows are characterized by a separate icon ( ).


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Figure 14Function analysis for scopeof prioritization

After all the functions were scored, the Overall Function Importance for the customer was

calculated by clicking on icon phi ( ). A column appeared at the right with numbers between 10and 1. This number indicates the team the relative contribution of the functions to customer value

creation.

By clicking on the icon in the menu balk named Function Value Realization, thecontribution of the current product functions on customer value creation was calculated. The

difference between the interest of the functions for creating customer value and how the current

product scored on this value made it possible to calculate the opportunity for improvement.

This was calculated using a simple formula, namely the "opportunity" is 2 times the importance

for the customer ( ) minus the score of the current product ( ).This number may never be

lower than the relative importance for the customer. The result is represented by omega ( ).

Exercise 8: Simulate opportunities based on functionsConstruct the Function analysis matrix on the basis of your diagram of functions. Calculate

Overall function importance of the new product, and identify 2 possible opportunities. Use the

Demo Tool for this analysis.

DefinitionGeneral Requirements areconsidered as additional valuesthat are not necessarily typicalof a specific product or service.

General Requirements

Customers usually have basic needs that are not necessarily

directly related to functional details. Yet they are related to

attributes and as important as the functions of the product or

service in consideration. Only a few to name are costs,

profitability to the retailer and various elements of

reliability. In the Quality Function diagram these were

now added by clicking on the specific icon ( ) and their

scores are given in Figure 15.


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Functional Requirements

Specific functions are performed by dedicated elements of

products or services. These elements may also perform other

functions. In System Dynamics the boundaries or interfaces

play a crucial role as to the relevance of these elements for a

function. A functional requirement can be added byclicking on icon, and naming it. For example, number

of applications was an essential functional requirement in

order to provide a range of application functions. In

essence each function is performed to certain extent by one

or more elements.

Simulation for prioritizing General RequirementsBy selecting these general requirements, attributes and their connecting scores, a matrix

representation could be made for an over view. This was done by clicking on the matrix view and

choosing for Requirement importance analysis. The resulting diagram is shown in Figure 16.

In the figure all identified attributes and their overall importance are included. Inherent to this

matrix, also functions and their overall importance are included. The attributes, as essential

elements of the simulation, thus are shown to be built on a firm basis of functions that are needed

to be put up and the general requirements that are needed be met with. Only on functional

requirement is included on the right of the matrix for the purpose of illustration.

Figure 15General requirements forfulfilling attributes

DefinitionFunctional Requirements areessential elements of products

or services with which theneeded functions will befulfilled.


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Exercise 9: Simulate for finding out opportunities based on General Requirements

Construct General requirement importance analysis matrixusing the Demo Tool.

Figure 16General requirement importancematrix

Conclusions on functions and requirements

Customer value creation as general requirement could be

calculated by clicking on the icon. The consultant added

that these scores said something about how critical these

requirements were to the reliability of the product. In

quality management one has to focus upon such

requirements. The resulting outcome was more front end

oriented rather than that with product orientation. It showed

that profitability for the retailer and accessibilityreliability in support of the product performance, are the

most important general requirements of Apple iPhone Next.

The second workshop was now almost finished. Everyone

had the feeling that the discussions were very fruitful and

much was achieved. Now there was a message for the

manufacturer and also to the supplier. One thing remained

on the priority, however: The final product should provide a

good quality/price ratio and has to differentiate itself from

competing products. Furthermore, it has to support the

corporate image. In order to check this, one final exercise

had to be executed before everyone could go home toperform his homework.


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2.3.Branding

The team explored the impact of customer values on brand

building, and also on brand sustainability. The advisor took

the team through Brand assessment of the product. The

images listed in Table 1 originate from automotive industry,and are often applied to brand identification of cars. Similarly

brand and corporate images, also of other products, can be

identified. Many FMCG and consumer durables fall in this

category of brand creation. Also services are easy to analyse

using the criterion shown in Table 1.

The team identified various brand values of the existing

product Apple iPhone old that contribute to different brand

images of Apple organization. By using the first choice of

brand values in each image the archetype of the Apple could

be established as shown in Table 1.

DefinitionBrand is a name, sign, symbol,or design, or a combination ofthem that makes a product orservice unique.

Brandimages

1st Brandvalue

2nd Brandvalue

3rd Brandvalue

Image 1 Revolutionary Creative OptimisticImage 2 Pioneer Original OptimisticImage 3 Innovative Exceptional ProfessionalImage 4 Attractive Dominant DreamingImage 5 Unique Path-breaking Intelligent

Table 1Brand images and theirvalues for existing AppleiPhone old

For this analysis the team confined to use a single product

Apple iPhone old for finding out the archetype of the

organization Apple. The prescribed brand values to images forthe existing Apple iPhone old yielded the archetype

represented in Figure 17.

It was observed that Explorer and outlaw scored quite

high. This means Apple is a solo concern with its own

uniqueness in innovation, and trend. All other archetypes

including creator were quite low. The latter conclusion from

the analysis, however, surprised everybody in the team.

Figure 17

Corporate image, orarchetype, of the organizationApple using the lastsuccessful product Apple

iPhone old


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Exercise 10: Assess brand image of the new productGo to Brand Assessment Tool and rank various images as you would anticipate on the future

Apple iPhone Next. Using these scores find out the archetype of the corporation Apple.

Exercise 11: Explore the consistency of brand image of the new productConstruct the diagram view and the matrix on the basis of the data that you have collected so far.

Start with a blank new diagram Branding and copy into this the values that you have chosen

before. Then identify various brand values, give possible relationship with customer values andscore them. Explore whether the brand image created by Apple iPhone Next is consistent with the

existing image.

Go to Brand Assessment Tool and rank various images as you would anticipate on AppleiPhone Next.

The next consideration is whether the major brand values

would be supported by the previously chosen customer

values for Apple iPhone Next. Which customer values

are elevated with the inclusion of the brand values that are

so important to the product manufacturer and the retailer?

In order to do this analysis, the diagram analysis was

carried out by linking customer values ( ) with the

identified brand values ( ) as shown in the diagram

view of Figure 18.

Figure 18Diagram view of corporate imagerelated to customer values

Simulation for brand value support of the new productSubsequently using this diagram and clicking on the matrix view, corporate brand values and

customer values were integrated. Brand value support to product value realization became evident

to the team by clicking on and selecting Apple iPhone Next. The outcome shows that AppleiPhone Next indeed falls reasonably in line with the long held innovative vision of the

organization.


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Conclusions on brand management

The team looked into the Brand matrix in Figure 19 for

judging how far the planned new product was a step forward

compared to the current product. It appeared that this was

quite the case with the new iPhone Next. The consultant

added that in order to be sure, however, we have to wait and

see what the manufacturer, Apple Corporation, is likely to

take up for the upcoming Indian market.

The new product shows that the corporate image related to the brand as innovator

is the most relevant. This means that we are on the right track. The retail manager

concluded the innovation advisors analysis. He continued, Gentlemen, we know

now what will help us look forward to our own business. We also know now what

message can be given to the manufacturer about the best design and how it can

support the corporate brand image. He closed the meeting with a strong feel of

relief for reaching the much promising market of the most modern cell phones in

the city.

Figure 19Contribution of Apple iPhoneNext to corporate brand image

case innovation at retailers vsn 2.1e

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