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What, Apple best practices aren't for everyone? Best practice innovation can transform a business, but it can also be devastating. Just look the recent JC Penney disaster. In this presentation we explore how one can fail at innovating an iconic retailer.
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How do you fail…
at innovating
…an iconic retailer?
Try to turn it into Apple.
Enter Ron Johnson.Former Apple Executive
Hired to
Hired to
INNOVATE
Hired to
INNOVATEand turn around
Hired to
JC Penney
INNOVATEand turn around
Ron’s Strategy?
Eliminate weekly sales
Create beautiful displays
The problem was…
Best practice innovation doesn’t always work.
Let’s eliminate sales.
Let’s eliminate sales.
Discounts aren’t cool
Let’s eliminate sales.
Sales are not hipDiscounts aren’t
cool
Let’s eliminate sales.
Sales are not hipDiscounts aren’t
coolCoupons are old school
Let’s eliminate sales.Apple would
never…
Sales are not hipDiscounts aren’t
coolCoupons are old school
Doesn’t this sound innovative….
…for an iconic retailer like JCP?
It worked for Apple. Right?
But JCP built business around…
WEEKLY SALES!
WEEKLY SALES!
And coupons.
WEEKLY SALES!
And discounts.
And coupons.
“We worked really hard and tried many things to help the customer understand that she
could shop any time on her terms.”
“But we learned she prefers a sale.”
“At times, she loves a coupon.”
“At times, she loves a coupon.”
Ron Johnson – Former JCP CEO
In 2012, JCP had one of the worst losses ever.
“It’s the worst performance I have ever seen by a company in one year.”
Walter Loeb – Independent Consultant
Apple’s best practices are fantastic.
Apple’s best practices are fantastic.
And beautiful.
But not for everyone.
Best practice innovation must be carefully thought out.
If you have built your business around a concept
or service…
…your customers might be used to it.
And might even like it.
And might even like it.
“At times.”
When Innovation Fails
The JC Penney Innovation Story
http://www.businatomy.com/blog/2013/5/28/3-types-of-innovation
www.businatomy.com