Lemon #112. Twenty strategies to innovate in costs

Lemon #112. Twenty strategies to
in costs

While reading “Costovation” from Stephen Wunker & Jennifer Luo Law we learned about twenty strategies and tactics to implement Costovation: 

  • Simplify the product: Focus on just the features that matter. 
  • Use technology to unlock new costovations. Harness new technology to excel in totally new ways- and at lower costs.
  • Dissolve the wall between operations and customer experience. Let customers participate.
  • Build a platform. Create the foundation for growth. 
  • Handle the network, not the goods. Create an asset-light operation by focusing on services or on facilitating a network of transactions. 
  • Costovate through external innovation: Use external innovation to lower the costs – and the risks- around new product development. 
  • Save the customization for later. Deploy postponement techniques to make personalization and customization more efficient.
  • Speed up build time with modularization. Accelerate the time it takes to build by breaking the product into smaller chunks. 
  • Find intention in waste. Reduce waste or find new uses for it. 
  • Put people where they matter. Embrace new approaches to human resourcing. 
  • Bypass steps in the value chain. Vertically integrate and play supply-chain leapfrog. 
  • Zoom in on last-mile delivery. Pay special attention to the costliest step in a parcel’s journey. 
  • Do not underestimate the power of self-service. Let products sell themselves. 
  • Tap into people’s desires to help others. Make customers into customer-service agents. 
  • Price only for the services rendered. Unbundle.
  • Get paid early. Declutter sales channels and lower inventory. 
  • Think twice about real estate. Examine how location can be an opportunity area for innovation. 
  • Share costs in the supply chain. Apply the sharing economy to your business functions. 
  • Seek complements in the value chain. Match up with organizations with opposite supply chains. 
  • Treat your suppliers like your costumers. Grow your accounts by helping your value chain become more productive.

Stephen Wunker & Jennifer Luo Law @ Costovation

Josep Guitart

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