Sunday 13 February 2011

Innovate or die ?!?

There is a large City Centre hotel I stay at when I’m in London, which the chief appeal is its location and its sheer size means that usually I can get a room. I’ve been using this hotel for more than two years now, yet the receptionists never fail to ask me on arrival if this is my first visit? I cannot tell you how irritating that is and how needless?  Why does this major hotel (you'll know it) not have a decent CRM system? how has this huge accommodation provider, not implemented a simple, cheap software system that helps them understand their customers? its dark ages stuff !!  
Even powerful global brands are not immune to constantly having to evolve and develop.
I was really struck by the leaked memo from the new Nokia CEO, Stephen Elop, who circulated a memo to 1300 staff this week, urging a “change in behaviours” and wanted staff to understand that the  company were standing on a “burning platform”.
It’s a refreshingly honest appraisal and a genuine call to arms – pulling no punches and not couching anything in management speak or failing to address the issues
"The first iPhone shipped in 2007, and we still don't have a product that is close to their experience. Android came on the scene just over 2 years ago, and this week they took our leadership position in smartphone volumes. Unbelievable."
Worth noting in 2007 that Nokia had a 38% market share – 3 years later they have lost 10% on that position and slipping.
In the same week, ebay CEO John Donahoe, went to great lengths to highlight how ebay inc had re-invented itself and rally the market and investors.
Analysts had been critical for sometime, suggesting that they had fallen behind the curve, particularly the outdated site search facility, failing to address fraud issues and an overly complicated purchasing procedure.
“We are a different ebay” he said this week in San Jose, “we are driving the next generation of ecommerce”.
There was a nod and a wink in his full statement, to the fact that ebays users had changed and developed and the company had not necessarily moved with them – particularly that the auction aspect of ebay is significantly less important to them than it used to be and the fixed price sales are really what is driving the business.
Late last year Amadeus produced a really insightful report, called Hotels 2020: Beyond Segmentation, which brought together the thinking of 610 senior hospitality CEO’s and their views about market trends, innovation and customer need over the next decade.
“Unique, connected and informed ……….. understanding a customer is a strategic imperative for hotels in todays world”
The report implores hotel, accommodations providers to seek feedback at every opportunity and use every interaction to gather record, analyse and then inform strategy.
 Most people attribute the famous,”Innovate or Die” quote to Damon Darlin in a 1997 article: innovate or die on the Net
Bill Gates says it is the phrase he still lives by - maybe I could just add, listen, innovate or die.

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