What are the cases of successful innovation?

Living in a rapidly changing society, you should strive for innovation, strengthen your capabilities, and be prepared for danger in times of peace. No matter how well you develop, you must always be prepared. The following are the cases of successful innovation that I have compiled for you, welcome to read!

Successful Cases 1

High-tech enterprises in the entrepreneurial period bear greater risks when engaging in innovative activities. Usually, their innovation risks mainly come from three aspects: technology risk, market risk, and financial risk. However, many companies have been able to swim against the current, become more courageous as time goes by, and even achieve great success. According to a survey of several companies, it was found that the "secret" lies in their grasp of several key factors for the success of innovation in high-tech startups. The main ones are:

1. Enterprises must have entrepreneurs with entrepreneurial spirit to lead the way

Innovation is like sailing against the current, if you don’t advance, you will retreat. In the business world, only entrepreneurs with entrepreneurial spirit dare and are good at swimming against the current. Schumpiter said that entrepreneurs are the soul of enterprises. This is the truth. Entrepreneurs with entrepreneurial spirit are able to seize opportunities, assess situations, and fight against repeated failures. Even if the company is already very large and has a high market share, they will not forget that their company is still in the entrepreneurial stage. In recent years, many high-tech startups in our country have achieved consecutive successes. One of the important reasons is that they have entrepreneurs with entrepreneurial spirit to lead the way.

2. Need to master "core technology" and "root technology"

Whether an enterprise masters the "core technology" needed for innovation and whether it has ownership of the technology determines the cost and cost of innovation. Efficiency, in turn, determines success in the market. The key to the rapid localization of foreign software in China is that many companies have mastered the core technology of software localization. For example, the technologies needed for enterprise innovation are divided into root technology, trunk technology, branch technology, and leaf technology. In the technology chain, whether the enterprise masters "root technology" determines the market coverage of the enterprise's products, and in turn determines the enterprise's success. Market share and profit margin. The reason why Intel is able to dominate the global market is that it masters the most advanced chip technology, and chip technology is the fundamental technology for manufacturing computers.

3. It is necessary to have people who master core technologies and root technologies.

Innovation of high-tech entrepreneurial enterprises requires continuous technical support. Technology is ultimately controlled by people. Therefore, it is very important to have people who master core technologies and root technologies. The popularity of Lenovo personal computers and Founder typesetting system in the Chinese market is closely related to the fact that they have people who master the core and fundamental technologies in this product field. On the contrary, some companies grow quickly but also collapse quickly. The lack of people who master core technologies and root technologies is often an important reason.

IV. An effective incentive mechanism must be established within the enterprise

Under the same external environment, whether a company can continue to innovate depends first on whether the company can construct a set of incentives. Incentive mechanism for employee innovation. Different employees have different personal needs, status and roles within the enterprise, so it is necessary to adopt classified incentive methods for all types of employees at all levels. Innovation first relies on the promotion and organization of entrepreneurs, and the innovation risks of entrepreneurial enterprises are first borne by entrepreneurs. "Property rights incentives" for entrepreneurs are the most effective, followed by "broad remuneration" incentive systems or methods. The so-called generalized reward is the organic combination of material reward and spiritual reward. If the incentives for entrepreneurs are not in place, one-sided emphasis on "restraints" is useless. Successful Cases 2

1. Introduction to Innovation and Innovation Management

What is innovation? Simply put, it is the use of existing natural resources or social factors to create new contradictory entities. human behavior. In economics, the origin of the concept of innovation is "Introduction to Economic Development" published by American economist Schumpeter in 1912. Schumpeter proposed in his work: Innovation refers to the introduction of a new combination of production factors and production conditions into the production system. It includes five situations: introducing a new product, introducing a new production method, opening up a new market, and obtaining a new source of supply of raw materials or semi-finished products. Schumpeter's concept of innovation covers a wide range, such as innovation involving technological changes and organizational innovation involving non-technical changes.

The scarcity of resources and the unlimited demand are a major problem in today’s world. Innovation management refers to creating a new and more effective resource allocation and integration paradigm to achieve effective utilization and multiplication of resources. This kind of innovation plays a comprehensive, overall, guidance and coordination position in the national innovation system, whether it is institutional innovation, technology innovation, product innovation, market innovation Whether it is knowledge innovation or enterprise innovation, its success ultimately depends on the coordinated development of organizational structure and management activities, so innovation management is the foundation and guarantee of all innovation.

2. The significance of innovation management is to optimize resource allocation

Innovation in management theory originated from the outbreak of the first industrial revolution in the United Kingdom in the mid-18th century, especially the widespread use of steam engines. , machine mass production has replaced the old manual workshop productivity development, and new management ideas and systems are urgently required to adapt to it. When studying the impact of division of labor on improving production efficiency, the famous British economist Adam Smith pointed out that if production workers do not carry out division of labor and cooperation, one person can only produce 20 needles a day. After division of labor and cooperation, the number can reach 48,000. many. The results of repeated experiments show that the advantage of division of labor and cooperation is that after producers specialize in a specific operation, it is easier to master production skills, improve their proficiency quickly, and can greatly improve labor productivity. From then on, this principle It later became an important guiding ideology for organizing the division of labor and conveyor belt production. That is, a complex production process is decomposed into a number of processes, and each process can be divided into a number of operating positions or procedures. Workers work in fixed positions according to prior regulations. The program operation quickly reached the level of proficiency. Adam Smith's innovation in management theory turned the slow development process of the handicraft era into a real furious era of production.

At the end of the 19th century and the beginning of the 20th century, as the scale of production continued to expand, management became more complex. Taylor of the United States proposed the scientific management theory. Taylor, who was a worker, used his experiments to provide scientific basis for improving work efficiency. In addition, he proposed the "piece-rate wage system" theory on this basis, which triggered the development of capitalist countries. Operation rationalization movement, Taylor is known as the "Father of Scientific Management". The management method he created is called the Taylor System. His masterpiece "Principles of Scientific Management" marked the birth of management science. Taylor's scientific management theory and Fayol's organizational management theory together formed classical management. school.

In his book "Introduction to Economic Development" published in 1912, Joseph Schumpeter incorporated innovation management into economic development theory for the first time and demonstrated the important role of innovation in the process of economic development. He believed that innovation is a new combination of production means. He pointed out that the concept of innovation includes at least the following five situations: (1) Adopting a new product? That is, a product that consumers are not familiar with yet? Or a new version of a product New features. (2) Adopt a new production method, that is, a method that has not yet passed empirical testing in the relevant institutional departments. This new method does not need to be based on new scientific discoveries; and, it can also exist in Among the new ways of dealing with a product in business. (3) Open up a new market, that is, a market that a certain manufacturing sector of the country concerned has not entered before, regardless of whether this market has existed before. (4) Stealing or controlling a new source of supply of raw materials or finished products, regardless of whether the source already exists or is created for the first time. (5) To realize a new organization of any kind of industry, such as creating a monopoly position or breaking a monopoly position. Obviously, Schumpeter's concept of innovation discusses the role of new resource allocation methods in promoting economic development from the perspective of innovation management, and has touched upon the core of innovation management. Of course, in terms of the generality of innovation management theory, Schumpeter’s theory still has some imperfections and inaccuracies. For example, he did not realize that the role of innovation in economic development lies in the successful implementation of a new way of allocating resources. , so that the utilization of resources meets the requirements of maximizing the interests of the whole society. However, Schumpeter's innovation management theory provides space for thinking about effectively integrating resources.

In short, innovation management is a process of shifting resources from inefficient use to high-efficiency use. With the advent of the era of knowledge economy and the rapid development of high-tech industries, management ideology, management theory and management functions are facing a new protracted war and a new revolution, and innovation management has entered a new stage.

The concept of innovation management is more fresh and perfect, and its frequency of use and expanded functions exceed that of any previous period.

3. The value of management lies in continuous reform and innovation

Innovation is the embodiment of the value of management. For an enterprise, its basic function is innovation, including innovation management. The purpose of innovation management is to improve the allocation efficiency of the company's limited resources so that unchanged production factors can play a greater role. This efficiency must not only be reflected in many production indicators such as accelerated capital turnover, reduced resource consumption coefficients, and improved labor productivity. , but also be reflected in the economic benefit indicators, that is, improving the economic benefits of the enterprise.

In the context of economic nationalization, innovation is particularly important for enterprises to cope with competition and challenges. Therefore, Thomas Peters stated clearly in "Success in Chaos? A Guide to the American Management Revolution" that outstanding Enterprises do not believe in excellence itself, but only in continuous improvement and continuous change. In other words, tomorrow's outstanding companies prefer change, do not like things that are eternal, and seek development and take-off in chaos.

The preference change mentioned here is actually the basic motivation for innovative management. Only through continuous innovation can the value of management be reflected to the maximum extent. At present, smart business leaders in many countries understand that in an era of rapid change and fierce competition, failure to innovate means destruction.

IV. Case Analysis-Red Star Macalline International Furniture Chain

Since its establishment in 1986, Red Star Macalline has been among the top 50 of China’s top 500 private enterprises for six consecutive years. It has been rated as "Top 50 Chinese Chain Enterprises", "China's Top Ten Independent Innovation Brands", "The Only Iconic Brand in China's Home Furnishing Industry", etc. It has also won the "China Enterprise Management Special Contribution Award" and "China's Top Ten Economy". Integrity Demonstration Unit, Public Satisfaction China's Top Ten World Famous Furniture Brands, and many other honors, and has been awarded titles such as "National Civilized Unit" and "National Youth Civilization Award". At the "2006 CCTV Annual Employer Survey" press conference held by CCTV on March 28, 2007, Red Star Macalline was also shortlisted for the top ten employers, becoming the only shortlisted brand in the Chinese home furnishing industry.

As a leader in the furniture industry, Red Star Macalline’s success is due to its continuous practice of innovation management. Taking into account both low-cost and differentiation strategies can ensure that companies can reduce production costs while also meeting customer needs. This not only helps achieve value innovation, but also gives companies lasting core competitiveness.

As a giant in China’s furniture industry, Red Star Macalline’s successful experience not only attracts the attention of its competitors, but also provides good inspiration to companies in other fields. The fundamental reason why Red Star Macalline has achieved such brilliant performance is that it has implemented a set of innovative management that can continuously create value, that is, breaking the constraints of traditional industry rules, minimizing corporate costs, and at the same time using differentiated products and services to fully meet the market needs of target customer groups.

(1) Red Star Macalline’s differentiation strategy

Differentiation strategy, also known as unique strategy, is to differentiate the products or services provided by the company and form some industry-wide Something unique in it. Differentiation strategies can be achieved in many ways: uniqueness in design or brand image, technical features, appearance features, customer service, distribution network and other aspects. Ideally, a company differentiates itself in several ways. It should be emphasized that the differentiation strategy does not mean that the company can ignore costs, but at this time cost is not the company's primary strategic goal.

1. Conceptual design of products

Under the condition that products are increasingly converging, relying solely on the functional characteristics of products to meet customer needs can no longer effectively form the core competitiveness of an enterprise. In order to better cultivate customer loyalty, the best way is to combine the functional and emotional characteristics of the product. On the basis of ensuring quality and function, use the product as a medium to pass on the corporate culture to customers. Emotionally satisfy customers' needs, thereby ensuring customers' dependence on the corporate brand.

According to past market rules, furniture companies should be committed to providing functional products, but Red Star Macalline takes into account the special significance of furniture in people’s daily lives and strives to use furniture with rich artistic taste. , create a comfortable and warm home atmosphere for customers, thereby distinguishing themselves from other companies.

2. Differentiated services

Through the low-cost strategy, Red Star Macalline has won a large number of low- and middle-income customers. On this basis, Red Star Macalline has radiated its target customer groups to the outside world: first, targeting the same low- and middle-income consumers, Red Star Macalline has launched low-priced and delicious catering services in the store, which has attracted many people who originally People who don’t want to buy Red Star Macalline furniture become Red Star Macalline customers because of its low-price and fast catering; secondly, considering the fun of shopping, Red Star Macalline adopts a self-service shopping model, using detailed products The description has replaced the traditional personal clerk service, attracting many customers who are accustomed to self-service purchasing; at the same time, Red Star Macalline’s product display is divided into different units, and various furniture are naturally combined together, and customers can combine the The units can be copied into their own homes, eliminating the need for laborious design. This has enabled some people who originally did not like to spend time on furniture to become loyal customers of Red Star Macalline. Through the above methods, Red Star Macalline has sought out customer groups that are on the edge of the market but can bring huge benefits to the company.

3. Play the role of a good corporate citizen

Innovation management requires enterprises to look to the future, on the one hand, actively predict changes in external trends, and on the other hand, conduct in-depth analysis of changing trends. Analyze and find the fit points related to customer value and enterprise business model. At the same time, in order to form a true innovation management, it is also necessary to ensure that the above trends must have a decisive effect on the company's business, be irreversible, and have a clear route.

In recent years, people have been paying increasing attention to the environment. Not only some non-governmental organizations, but also many ordinary consumers will also pay attention to the external behaviors of enterprises when purchasing products. The furniture industry requires a large amount of raw materials, and these raw materials are closely related to the surrounding environment from initial procurement to later design and production. Red Star Macalline realized the importance of environmental protection to the long-term development of the company early on, and formulated relatively complete and practical work specifications.

Based on the keen insight into the market environment and consumption habits, Red Star Macalline has successfully played the role of "corporate citizen", and then adjusted product research and development from the perspective of environmental protection to satisfy customers and society’s potential needs in this regard. Facts have proved that Red Star Macalline furniture products with environmental protection concepts are becoming more and more popular among consumers across the country.

(2) Red Star Macalline’s low-cost strategy

In order to maximize the profit potential of innovation management, companies should take into account the low-cost strategy while developing differentiation strategies. First of all Implement strategic pricing to achieve cost leadership. In order to effectively control costs, it is necessary to clarify the order of costs and prices, that is, the price is not determined by traditional costs, but the price is first considered and then the target cost is deduced. The following is a detailed analysis of Red Star Macalline's low-cost strategy using this profit model of innovative management.

1. Strategic price

In order to provide customers with truly low-priced products and services, Red Star Macalline will fully consider customers’ price tolerance before designing products, and By setting the expected sales price based on product characteristics, the resulting target cost will be much lower than that of other companies, and future production processes will be within this target cost to ensure product performance and quality as much as possible.

2. Streamlined production operations and cost innovation

In terms of production operations, Red Star Macalline’s strategy mainly has three aspects: First, look for relatively low-priced raw materials. Red Star Macalline constantly seeks new materials and new technologies to reduce product costs. On the premise of ensuring quality, Red Star Macalline not only considers wood, but also makes full use of raw materials such as composite plastics. Secondly, adjust the production layout and locate production bases in low-cost areas. In addition, Red Star Macalline also uses flat packaging mode for product storage and transportation. Flat packaging not only helps adjust production layout nationwide, but also reduces storage and transportation space, greatly reducing product costs.

3. Cooperation with suppliers

Cooperation allows a company to take advantage of other companies’ advantages and economies of scale, narrowing the gap in production capabilities with other companies.

On the one hand, this can bring high-efficiency production capabilities to the company, and on the other hand, it promotes the implementation of the cost leadership strategy.

Red Star Macalline has established a rational and long-term cooperative relationship with suppliers across the country. In addition to cooperating with suppliers, Red Star Macalline also encourages competition among suppliers and Orders are given to manufacturers with lower measured prices. This not only ensures that Red Star Macalline products are based on the lowest cost, but also are produced with the highest efficiency and shipped to distribution centers around the country.

Through the above model, Red Star Macalline not only integrated its own logistics system, but also deeply integrated the low-cost strategy into every process of corporate operations, achieving the goal of achieving target costs.

To sum up, value innovation is the cornerstone of innovation management, which is achieved through the simultaneous attention to costs (to achieve target-based changes and pay attention to cost control) and buyer value (goals). As an active practitioner of innovative management, Red Star Macalline controls production costs within expected targets by continuously improving its logistics system across the country. We strive to achieve perfection in all aspects and meet the needs of customers to the greatest extent. These two aspects interact with each other as the strategy is promoted, and play a positive and lasting role in promoting the value innovation of enterprises.

V. Conclusion

The market economy is developing at a rapid pace. Enterprises are like sailing against the current of the market economy. If they do not advance, they will retreat. Economic nationalization is a characteristic of economic development in today's world. The economies of various countries are interconnected, interdependent, and integrated through commercial exchanges. Today's national economy is integrated. China has joined the WTO for many years and has integrated into the tide of the world economy. Modern resources, technology, information, talents and commodities are flowing across the country, and enterprise competition is becoming increasingly fierce. Looking at contemporary enterprises, only by continuous innovation can they take the initiative in competition and remain invincible. Innovation is a concept and an intrinsic requirement for the survival and development of enterprises. Success Stories 3

Tesla: Open Source and Enterprise Innovation Alliance

Tesla’s success is attributed by the industry to the success of Internet thinking, and Musk’s move to open patents , it also embodies the spirit of the Internet - freedom, equality, openness, and sharing. But is he really a living Lei Feng?

The purpose of Tesla's open source of all patents is to let more people With a low threshold, people or companies can stand on the shoulders of giants and join the wave of development and popularization of electric vehicles in the world. On the surface, opening up patents allows competitors to take advantage. However, this move has virtually improved the universality of Tesla's technology, allowing it to seize a favorable position in the formulation of future standards.

Therefore, the hidden effect behind this is that if Tesla’s patent open source reaches a certain scale and its technical allies grow to a certain size, they will have to be compatible with Tesla’s charging standards. Obviously, if Tesla establishes an industrial alliance supported by Tesla technology, then I believe that the excess production capacity of the super battery factory will be absorbed by Tesla’s allies. At this time, Tesla will not only be an electric vehicle leader The manufacturer is also the controller of the upstream core battery resources.

On January 23, 2015, Musk appeared at the North American Auto Show in Detroit. This time, Musk said that the real enemies Tesla faces are not necessarily traditional manufacturers and dealers, but users who are accustomed to internal combustion locomotives and the huge industrial inertia rooted in traditional business formats. To break this shackles, alliance is the best way.

Therefore, Tesla welcomes other car manufacturers to enter the electric vehicle industry because it wants to form a "matrix" of electric vehicles instead of going it alone. In this way, the overall electric vehicle industry will With greater potential energy, in terms of market cultivation, policy breakthroughs, technology accumulation, and the formation of the electric vehicle industry chain, it will form a group ecological effect and increase the volume of electric vehicles.

Therefore, Tesla needs allies, not enemies. Tesla’s previous openness of patents was also for this purpose. Fans believe that Tesla is expected to form an alliance similar to the Open Handset Alliance, which was how companies such as Google and Samsung relied on this alliance to take most of the pizza out of Apple's mouth.

As Musk said, to be successful, electric vehicles require technology from many fields other than the automotive industry. This ability to integrate and innovate is more important to Tesla than any other traditional car manufacturer. Good at. Tesla is a good example, telling us that through openness and cooperation, we can develop an industrial ecosystem and establish an enterprise technology innovation alliance, thus driving innovation in the entire electric vehicle industry.