The “no frills” flight was popularized by Southwest Airlines in the U.S. and subsequently by the likes of Ryan Air and easyjet in Europe. Low Cost Carriers or LCCs as they are known in the industry became possible due to reconfiguration of their operating model to lower cost, such as point-to-point flights, disembarking on the tarmac and not the gate, use of secondary airports for lower access fees, standard planes, cooperative and non-unionized employees, outsourcing to reduce fixed cost, simple offices, use of IT for efficiency, bypassing travel agency channel, and increasing asset utilization by adding more flights per day benefiting from faster turnaround time per flight.
Gone are the days when airlines would offer hot meals in local flights to economy passengers. Nowadays, it is customary for airlines to sell snacks as part of their effort to raise revenues, as they compete in a red ocean of low prices. Other airlines resort to reducing complimentary weight of bags, still others impose luggage fee, fees for changing flights, upgrade fees, or higher prices for seats that have bigger leg space or that can recline more, part of ancillary fees that are increasingly becoming popular among airlines. Other types of ancillary fees include seats for the obese (counted as two seats), early boarding, advance seat assignment, seat with infant, and the list keeps getting longer. Read more
There has been a growing interest in business model innovation (BMI). What exactly is BMI and how does one go about it?
Business model innovation is a new way the company creates and delivers value to a set of consumers and customers at a profit. For easier understanding, BMI has 3Vs and 4Cs.
The 3Vs refer to value creation (target market and value proposition), value capture (revenue model and cost) and value maneuvering (resources and processes, as well as value network), which all aim to attain superior economic value (profit and cash flow) for the firm.
Imagine a triangle with each of the 3Vs at each corner and their two elements mentioned above on each side. For the value proposition to reach its target market, the appropriate channel needs to be established. For the value proposition to reach sustainable revenue, customer bonding strategy is needed. A new configuration of process and resources may be needed to reduce cost, while complementors need to be identified in the value network to deliver the new value created. Read more
Innovation has two elements – novelty and commercial success. Novelty without commercial success is an invention. Commercial success without novelty is me-too. One tool in planning a novelty is applying the law of the opposite.
The law of the opposite states that in order to be successful, one should go in a direction that is in contrast from most others. And there are several models that have been testament to this.
The opposite of soda with lots of sugar is called Zero, hence attracting lapsed consumers. The opposite of a struggling learner is an intelligent one and Ahead Tutorial is targeting those who want to get ahead, the bigger segment of noncustomers, instead of those who are a little slow on the uptake, which is a much smaller segment. The opposite of boring is interesting and this is seen in the colorful and expressive characteristics of Belle de Jour Planners for career women who use printed planners to slow them down in their fast-paced lifestyle, instead of using digital alternative. The opposite of grading quality of answers is grading quality of questions, thus Markprof Foundation’s annual marketing leadership bootcamp for graduating university student leaders increase mindfulness of students on critical thinking by asking the right questions. Read more
About the same time last year, I was invited by the Financial Executives Institute of the Philippines (FINEX) at their annual conference held at Shangri-La at The Fort to share the learning and development innovations instituted by Mansmith and Fielders Inc. I was featured in ‘Learn to Rock’, the session on education and how this has sparked innovation and creativity together with Dr. Jikyeong Kang, President and Dean of the Asian Institute of Management, and Bro. Armin Luistro, President of the De La Salle Philippines who both had impressive ideas, as well.
It was my first presentation as the new Chief Innovation Strategist of Mansmith and Fielders Inc., and shared the 8 innovations where I was involved from formulation to launch.
1) From generalist to specialist
Most seminar companies are generalist, offering many different seminars. Mansmith and Fielders Inc decided to limit its offering to only marketing, sales, strategy, and innovation, with over 70 different courses, the widest in the world. This includes many seminars that are only available in Mansmith and Fielders. Check out its most extensive courses in www.mansmith.net
2) From product innovation to business model innovation
Mansmith and Fielders Inc is not just a learning institution, it is active in helping the marginalized. In fact, 100% of the proceeds from its marketing book sales go to charity. Read more