Innovation Management

& Case study on

Bikanerwala : A Never-Ending Quest

to Delight Customers
Under the guidance of

Professor Meeta Dasgupta

Submitted by :
Kshipra Dwivedi 18P086

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Strategic Innovation
Strategic innovation is an organization's process of reinventing or redesigning its corporate strategy
to drive business growth, generate value for the company and its customers, and create competitive
advantage. This type of innovation is essential for organizations to adapt to the speed of
technology change.
Companies employing strategic innovation do not necessarily need to make changes to the goods
and services they sell to their customers, nor to the technologies that support these products, to
be successful. Strategic innovation often refers to innovation projects that occur at the executive
level.
Innovation = Invention + Commercialization
Strategic innovation considerations
Innovating corporate strategies could include the following considerations: what services or
products need to be reinvented or developed; what markets to compete in; what business models
to develop; how to optimize business processes; how to expand the customer base; how to position
the company's brand in relation to target customers; how to make the supply chain and value chain
more efficient; and go-to-market strategy.
Executing strategic innovation processes
Although strategic innovation initiatives are led by senior leaders, they need to foster a culture of
innovation that encourages collaboration across business teams and functions.
Well-known examples of companies that have seen success applying strategic innovation include
Apple, which expanded the use of computers to individuals; IBM, which expanded from selling
hardware to providing whole solutions; Ikea, which standardized the type of product it sold (flat
pack); and Nintendo, which expanded its customer base to women, adults and the elderly with the
launch of Wii.

Desirable
to
consumer

Possible Viable in
with Innovation
marketplace
technology

Characteristics of Innovation

 There is an object or target which is being changed

 It can be a product, a process, an individual’s lifestyle, an organization's strategy, a society
culture

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  Innovation vary in extent or magnitude i.e. degree to which one deviates from the past
 It is closely related to problem solving since generation & implementation of ideas for
change never transpire without difficulty
 A final characteristic is the impact of the change, the significance or range of its effects
Goals of Innovation
• Improving quality
• Creation of new markets
• Extension of the product range
• Reducing labor cost
• Improving production process
• Reducing materials
• Reducing environmental damage
• Replacement of products/services
• Reducing energy consumption
• Conformance to regulations

Sources of Innovation

Organizational Structure : Organic structures positively influence innovation. As there is lower

vertical differentiation, formalization, centralization. Organic organizations facilitate the flexibility,
adaptation & cross-fertilization.

Long tenure in Management : Managerial tenure apparently provides legitimacy & knowledge
of how to accomplish a task and obtain desired outcomes.

Slack Resources : Having an abundance of resources allows an organization to afford to purchase

innovations, bear the cost of instituting innovations & absorb failures.

Interunit Communications : Innovative organizations are high users of committees, task forces,
cross-functional teams that facilitate interaction across departmental lines

Types of Innovation

Incremental Innovation
Incremental Innovation is the most common form of innovation. It utilizes your existing
technology and increases value to the customer (features, design changes, etc.) within your existing
market. Almost all companies engage in incremental innovation in one form or another.

Examples include adding new features to existing products or services or even removing features
(value through simplification). Even small updates to user experience can add value, for example
below is an older version of Constant Contact’s email schedule page:

Disruptive Innovation
Disruptive innovation, also known as stealth innovation, involves applying new technology or
processes to your company’s current market. It is stealthy in nature since newer tech will often
be inferior to existing market technology. This newer technology is often more expensive, has
fewer features, is harder to use, and is not as aesthetically pleasing. It is only after a few iterations

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that the newer tech surpasses the old and disrupts all existing companies. By then, it might be too
late for the established companies to quickly compete with the newer technology.

There are quite a few examples of disruptive innovation, one of the more prominent being Apple’s
iPhone disruption of the mobile phone market. Prior to the iPhone, most popular phones relied
on buttons, keypads or scroll wheels for user input. The iPhone was the result of a technological
movement that was years in making, mostly iterated by Palm Treo phones and personal digital
assistants (PDAs). Frequently you will find that it is not the first mover who ends up disrupting
the existing market. In order to disrupt the mobile phone market, Apple had to cobble together
an amazing touch screen that had a simple to use interface, and provide users access to a large
assortment of built-in and third-party mobile applications.

Architectural Innovation
Architectural innovation is simply taking the lessons, skills and overall technology and applying
them within a different market. This innovation is amazing at increasing new customers as long
as the new market is receptive. Most of the time, the risk involved in architectural innovation is
low due to the reliance and reintroduction of proven technology. Though most of the time it
requires tweaking to match the requirements of the new market.

In 1966, NASA’s Ames Research Centre attempted to improve the safety of aircraft cushions.
They succeeded by creating a new type of foam, which reacts to the pressure applied to it, yet
magically forms back to its original shape. Originally it was commercially marketed as medical
equipment table pads and sports equipment, before having larger success as use in mattresses.
This “slow spring back foam” technology falls under architectural innovation. It is commonly
known as memory foam.

Radical innovation
Radical innovation is what we think of mostly when considering innovation. It gives birth to new
industries (or swallows existing ones) and involves creating revolutionary technology. The
airplane, for example, was not the first mode of transportation, but it is revolutionary as it allowed
commercialized air travel to develop and prosper.

The four different types of innovation mentioned here – Incremental, Disruptive, Architectural
and Radical – help illustrate the various ways that companies can innovate. There are more ways
to innovate than these four. The important thing is to find the type(s) that suit your company
and turn those into success.

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Value Innovation

Value innovation is one of the most prominent programmatic approaches to innovation currently
in use. It is different from building layers of competitive advantages & does not means segmenting
market & accommodating customer needs. It’s main focus is on offering those products & services
which creates a superior buyer value in existing markets & enables a quantum leap for the firm to
create new markets. Value Innovation also differs from technology innovation. New technology
developed does not becomes a value innovation unless it is cheap enough for MASS BUYERS

Barriers to Innovation

 External Barriers
 Market-Related Barrier
 Government & its Policies
 Others (Technical, Societal, & Inter
Organizational Barriers)
 Internal Barriers
 People Related
 Structural
 Strategy Related

Overcoming Barriers to Innovation

Make People Part of the Change

One of the biggest barriers to innovation is politics—people
are motivated by a blend of saving face, maintaining
momentum, and being recognized as a hero. Too many
innovation efforts disregard the past and somehow we’re
surprised when people who represent the past don’t embrace
new ideas. This is why it’s important to make people part of
the change from the beginning.

Rally Support with Purpose Driven Stories

Endorse channels of communications that allow employees (or even customers) to share stories
representing the organization's purpose. Progressive organizations often recognize that other
companies and individuals are in pursuit of the same big goals. And in response create
communities of passion that share praise for those outside the company who act towards the same
purpose. It’s always easier to get your new idea adopted when people are already primed to be
excited about it. Two examples that come to mind around purpose are CVS helping people on the
path to better health and a former P&G executive tearing down the stock price tickers in the office
and replacing them with images of customers they were serving.

Empower Middle Managers

In larger companies, middle managers need to be selected, trained, and empowered to drive
innovation strategies. It’s not enough to have leaders that prioritize, incentivize, and create an
inspiring vision for innovation. They also have to defer power. In particular, they need that power
to go to good managers who can execute on their innovative strategies and systems. One example
of this approach comes from the decentralized leadership espoused by retired Navy Seal
commander, Jocko Willink, who saw that Seals on the ground needed the ability to react quickly
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to rapidly changing situations in combat. Innovation really does have to move both up and down
the chain of command. You might even discover a few rising stars in the process.

Reward Innovation
Without sponsorship for innovation, it's difficult for people to feel safe to experiment, especially
if individual goals don't align with organizational goals. Inevitably, the daily fire drill takes
precedence. If innovation is truly important to the company's purpose, it should be built into
“how” people get rewarded (annual compensation) and the P&L (experimental budgets). Some
organizations celebrate and reward individual or team innovation successes through rituals,
activities that can help nudge the culture of your team or organization toward behaviors that
support creativity.

Get Untangled from the Jargon

At large organizations and those that have invested efforts in innovation, there's often a huge
mismatch in what people call things. It’s easy to get lost in a jumble of jargon. If the stuff works,
it shouldn't matter what you call it. People have a tendency to drown in the lingo, but a bit of
listening and cooperation can go a long way.

Embrace Constraints
It's counterintuitive to some, but constraints can create clarity. For example, the reason The
Terminator story rests on the premise of an android from the future coming back to the "present"
was due to a limited budget—they didn't have enough for special effects of the future
Clarity of purpose enables people, teams, and organizations to design the right constraints that
create conditions for innovation to emerge and be applied. Like the NASA Mars Rover team: they
had a limited budget, limited weight, and limited time. However, their sole goal was to send 6
wheels onto Mars. Constraints can be inspiring.

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Bikanerwala : A Never-Ending Quest
to Delight Customers
Food Industry in India

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Bikanervala :Introduction
The outlets are owned by company, by directors or by franchisees. Current emphasis is on
company-owned outlets for better control over quality and customer satisfaction.

Bikanerwala : Offerings
Bikanerwala offers a range of pocket friendly range of food items starting from sweets, fast food
and ethnic cuisines.

 Cuisines from all over India

 Authentic taste of dishes
 All major cuisines from North Indian to south Indian
 Minimal oil, spices – Healthy
 Introduction of Pizza, Pasta and continental
 Delivery in 2 mins
 Customization - ‘Choose your pasta’
 Also, frozen deserts such as ice creams

Bikanervala :The Innovation Journey

Need: Hygienic, tasty food with large variety and pocket friendly prices
Innovations

 Cuisines from all part of India under one roof

 Authentic style of cooking retained
 Dishes that fit flavour of different season
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  Food for everyone in family
 Innovations like Navratri Khana
 Local needs and tastes kept in mind- Eg. ‘Ghar ki Thali’ and fast food in Gurgaon
Need: A true ‘Family restaurant’ with quality ambience at not so high prices
Innovations

 Spacious with natural lighting and comfortable furniture

 Exhibits and posters to create lively atmosphere, changed with season/festivals
 Separate space for light snacks, sweets & lunch/dinner
 Easily accessible information through pamphlets, displays and guides
 Free of cost Kids activity areas with games, toys & rides
Need: To have a happy and satisfied customer
Innovations
● Buzzer based system for waiting-signal to specific customer when his food is ready
● Mobile application for ordering-by the time you reach outlet, food is ready
● Customer friendly refund policy

Need: To maintain a high quality and standard in food and customer service across all restaurants
Innovations
● Traditional workforce to maintains authenticity(& not professional chefs), complemented
by highly skilled employees
● Dedicated customer service department-fast and efficient
● Subtle system for assessing customer satisfaction
● Centralized cooking for uniformity, maintaining high quality raw materials
● Performance based variable pay for employees

Need: Operational efficiency and matching international standards with respect to hygiene and
ambience
Innovations
● Investment in ERP for billing, production and inventory management
● Clearly defined SOPs for aspects like taking order, food handling, etc.
● Implementing 5S Principles in cleanliness and efficiency parameters

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SWOT Analysis

Bikanerwala : Innovation Portfolio

Challenges Faced
Need to meet ambience and quality standards : With new multinational food outlets chains
entering India, the customers have started comparing Indian eating joints to international
standards. Bikanerwala has to improve to meet these standards with respect to ambience and
hygiene.
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Challenges in getting trained and qualified workers and high attrition among workers :
With high unity within karigars, they leave in groups. Due to this, the attrition rate is very high.
Also, there are no institutes providing training regarding ethnic sweets. This develops the challenge
in getting trained and qualified workers.

Need of developing options to tap the increasing market potential : With increasing market
potential from the year 2013 to 2018, the steps need to be taken to capture this potential.

Innovations in offerings (To tap the market potential)

 Midnight Menu : Considering the potential of IT sector shift system, the midnight menu
can be defined. This would focus on needs of high earning individuals.

 Diet-friendly Menu : The introduction of diabetic sweets could be developed for

complete menu to tap the potential.

 Outdoor catering : The expertise in arranging parties at the current outlets could be
utilized by extending in terms of outdoor catering. This could include parties, chat centres,
occasions like get-togethers etc.

 Special offers : Special offers to attract select target segment such as ladies special
offerings

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