Class Notes 11/3/2008

"The Transformation of Business"

• Value is based on unique, personalized experiences of consumers
• N=1 (one consumer experience at a time)
• No firm is big enough in scope and size to satisfy the experiences of one consumer at a time
  
• R=G (resources from multiple vendors

• Model T
• Consumers were treated as an undifferentiated group
• All resources had to be within the firm to capture value

• TutorVista
• Student chooses the time when he wants to be tutored
• Lessons are personalized for that student
• Training for teachers, can take from 60 to 100 hours
• Initial results show that U.S. students participating in this sytem have dramatically improved their understanding of the subjects and their performance in them
• $99 per month
• TutorVista had access to 600 tutors
• Resources are accessed as needed from a global resource pool
• TutorVista currently has over 10,000 paying students, and it is expanding its tutor base of over 5,000 tutors to countries outside of India, including the United States
  
• The power of technology and analytics can be focused on the needs of single individuals through global rosources (N=1 and R=G)

• Truck tires
• Vendors sell their products competing largely on the basis of price, durability and brand awareness
• Contract with fleet owners to charge per mile of usage
• The reenue is based on the tire usage, not on a one-time tire sale
  
• The retial business shifts from a transaction base (selling a tire) to an ongoing relationship (continuous and ongoing measurements of usage and ability to provide feedback on better usage specific to a user) with the consumer
• Helps a specific drier improve their skills
• Installed sensors that measure tire performance in real time and relay the data to a central data center

• Goodyear vs Bridgestone
• Goodyear alreayd has a milage-based service for its fleet customers

• B2B and B2C
• The firm is moving from selling a product to selling as service
• The firm is moving from a transactional relationshp with a customer to a service relationship with a customer
• (B2B) organization, (B2C)

• Principle N=1
• One customer experience at a time
• Flexibility: if a company is focused on N=1 and that value is cocreated with the consumer then the firm has to be flexible
• Quality, Cost and Experience
• Collaborative Networks: no single firm can provide the ragne of skills to create N=1
• Complexity
• Customer Interfaces
• Scalability

• Principle R=G
• Access to Resources
• Speed
• Scalability
• Innovation Arbitrage
• The N=1 and R=G World
• N=1 and R=G: A Social Movement
  

Exam 2 was handed back today in class, I made a 95. I am content with this grade. We will have Chapter 2 of New Age of Innovation ready for presentation on Wednesday.