Innovation Case Study
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Transcript of Innovation Case Study
Innovation Case AnalysisChristine B. Bartolata
Outline of the Presentation
Overview of the Company and its Business Analysis of the Industry Evaluation of the Innovation System Description of the Innovation Project:
Form, Type, Protection, Strategy Formulation and Business Model Implementation/Commercialization Methods and Approaches
Analysis of Strategic, Implementation and Deployment Problems & Issues
• Recommendations Learning and Conclusion
Overview of the Company and its Business
How it Started:
PASSION PROJECT in De La Salle University
SEC registered in July 2014
Joined and won during Ideaspace Boot camp
Carl Mamawal (CEO)
Ingko Marfoni (CTO, Designer)
Miguel Marfoni (Shop Manager)
80% Split among co-
founders
Ownership:
20% Ideaspace
engineers, designers, fabricators…
Overview of the Company and its Business
Carl Mamawal (CEO)
Ingko Marfoni (CTO, Designer)
Miguel Marfoni (Shop Manager)
engineers, designers, fabricators…
Overview of the Company and its Business
Carl Mamawal (CEO)
Ingko Marfoni (CTO, Designer)
Miguel Marfoni (Shop Manager)
80% Split among co-
founders
Ownership:
20% Ideaspace
engineers, designers, fabricators…
Overview of the Company and its Business
Goals:
NYFTILaunch a Kick starter Campaign
SHORT - TERM
Sell 25 - 40 bicycles per year
LONG - TERM
Build a manufacturing plant in the Philippines
Export esp. to Europe
Attitude Towards Innovation:
DO IT YOURSELF (DIY) mindsetVision:“ ”
To provide efficient mobility solution to the world. To celebrate a lifestyle lived largely in the city with your very own folding and functional handmade bicycle.
Analysis of the Industry
Bicycle is a form of human powered vehicles (HPVs); also called cycling.
City Commercial Recreational Organized Rides Mountain
Analysis of the Industry
Bicycle is a form of human powered vehicles (HPVs); also called cycling.
City Commercial Recreational Organized Rides Mountain
Analysis of the Industry
Bicycle Sales by Category (2005-2012)Type 2005 2006 2007 2008 2009 2010 2011 2012 Change '11 vs. '10 Change '11 vs. '05
Road/700c 16% 18% 21% 20% 20% 23% 24% 25% +2 -2Mountain bike 29% 24% 25% 26% 24% 22% 23% 24% +4 +10Hybrid/cross 14% 19% 17% 18% 21% 21% 20% 20% -4 +4Comfort 14% 17% 15% 16% 15% 13% 14% 13% -1 -1Youth 15% 14% 12% 12% 13% 12% 12% 12% - -3Cruiser 6% 6% 7% 6% 6% 6% 6% 5% -1 -1Recumbernt/Tandem 2% 1% 3% 1% 1% 2% 1% 2% +1 -Electric NA NA NA NA NA 0.60% 0.30% 0.50% +2 NAFolding NA NA NA NA NA 0.20% 0.40% .4%` - NASource: National Bicycle and Dealers Association
* Market is considered to be small* No dominant design exist in the market
Analysis of the Industry
Porter’s Five Forces
Rivalry Among Competitors
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat of New Entrants
Threat of Substitutes
Analysis of the Industry
Porter’s Five Forces: Rivalry Among Competitors
Threat of Substitutes
Bargaining Power of Suppliers
Rivalry Among Competitors
Bargaining Power of Buyers
Threat of New Entrants
LOW Nyfti is the first folding
bicycle ever made in the Philippines.
Nyfti bicycles are all handmade.
Nyfti bicycles are highly customizable.
Analysis of the Industry
Porter’s Five Forces: Bargaining Power of Suppliers
Threat of Substitutes
Bargaining Power of Suppliers
Bargaining Power of Buyers
Rivalry Among Competitors
Threat of New Entrants
HIGH All the raw materials are
imported from various parts in Europe, US and Japan.
Non-exclusive supplier-owner relationship.
Analysis of the Industry
Porter’s Five Forces: Bargaining Power of Buyers
Bargaining Power of Suppliers
Threat of Substitutes
Bargaining Power of Buyers
Threat of New Entrants
Rivalry Among Competitors
MODERATE The bicycles are priced with 40%
profit margin. The price of Nyfti is near the
average price of folding bicycles around the world.
Analysis of the Industry
Porter’s Five Forces: Threat of Substitutes
Bargaining Power of Suppliers
Threat of Substitutes
Bargaining Power of Buyers
Rivalry Among Competitors
Threat of New Entrants
LOW No competitors exist locally. Locally manufactured therefore
parts repair and other after-sales services are readily available.
Analysis of the Industry
Porter’s Five Forces: Threat of New Entrants
Threat of Substitutes
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat of New Entrants
Rivalry Among Competitors
MODERATE to HIGH No economies of scale. Patent pending for the geometric
process of creating a folding bicycle.
Weak cost advantages
Evaluation of the Innovation System
IDEA CREATION PRODUCT DEVELOPMENT
PRODUCT COMMERCIALIZATION
Non-linear innovation process.
Evaluation of the Innovation System
IDEA CREATION PRODUCT DEVELOPMENT
PRODUCT COMMERCIALIZATION
Non-linear innovation process.
“PASSION PROJECT”
NYFTI Product Development IDEASPACE
AIM
BIR
SEC
DLSU
One-year R&D joint venture with DLSU’s Engineering Department to develop electric folding bicycle.
Evaluation of the Innovation System
IDEA CREATION PRODUCT DEVELOPMENT
PRODUCT COMMERCIALIZATION
Non-linear innovation process.
“PASSION PROJECT”
NYFTI Product Development IDEASPACE
AIM
BIR
SEC
DLSU
One-year R&D joint venture with DLSU’s Engineering Department to develop electric folding bicycle.
VENTURE CAPITALS
Description of the Innovation Project: Form, Type, Protection, Strategy Formulation and Business Model
Description of the Innovation Project: Form, Type, Protection, Strategy Formulation and Business Model
NYFTI is both a sustaining and an architectural innovation that resulted to a product innovation.
NYFTI’s strategy includes its three competitive advantages:
Bike Mode Fold Mode Cart Mode
Description of the Innovation Project: Form, Type, Protection, Strategy Formulation and Business Model
In comparison to the industry:
Brand Price In Eur Price In Peso Headquarters PositioningAirnimal White Rhino 1899 93,373.83 United Kingdom Brompton H6L 1080 53,103.60 United Kingdom Montague Boston 8 950 46,711.50 United Kingdom High-endBeixo Compact Low 780 38,352.60 The Netherlands Nyfti 712 35,000.00 Philippines Dahon Jifo 609 29,944.53 California Tern Link P9 550 27,043.50 Singapore MidDahon Vybe C7A 380 18,684.60 California Carrera Transport 300 14,751.00 United Kingdom Tern Link C7 299 14,701.83 Singapore Low-endRaleigh Stowaway 3 275 13,521.75 United Kingdom Sources: Bicycle Retailer and Industry News, http://www.bicycleretailer.com/
Description of the Innovation Project: Form, Type, Protection, Strategy Formulation and Business Model
Supplier 1
Supplier 2
Supplier 3
Full Manufacturing
ProcessRetail Shop Consumers
Supply Chain Model
Retail Model
Description of the Innovation Project: Form, Type, Protection, Strategy Formulation and Business Model
Supplier 1
Supplier 2
Supplier 3
Full Manufacturing
ProcessRetail Shop Consumers
Supply Chain Model
Retail Model
* Customized NYFTI
Description of the Innovation Project: Form, Type, Protection, Strategy Formulation and Business Model
Supplier 1
Supplier 2
Supplier 3
Full Manufacturing
ProcessRetail Shop Consumers
Supply Chain Model
Retail Model
* Customized NYFTI
Design your own NYFTI Choose among a selection of
accessories (i.e. water bottle holder, soft case luggage (leather), front mount bag
Description of the Innovation Project: Form, Type, Protection, Strategy Formulation and Business Model
Key Partners Key Activities Value Proposition Customer Relationship
Customer Segments
- International suppliers in Europe, USA & Japan
- Designing and manufacturing folding bicycle
- Fully customizable colors and personalized accessories
- Long-term relationship with avid cyclists
- Targeted market segmentation:
- Joint ventures with DLSU
- Effective product turnaround
- made of high quality imported materials
- Attract and educate more customers
1. Cyclists who are also professionals.
- Ideaspace Foundation
- Collect feedback - handcrafted to perfection
- Listen to feedback 2. Extroverts, Travelers, Mavericks
- analyzing consumers demand and traffic
- durable but light and portable
Key Resources - first rate design and
aesthitically pleasingChannels
- website and
accounts on various platforms
- NYFTI shop at Paco, Manila
-guaranteed warranty
and support available- NYFTI's official website
- Social Media - Published articles - Ideaspace website Cost Structure Revenue Steams - Five full-time employees - Sale of goods, accessories and after-sales
services - Warehousing and logistics - Marketing expenses - CAPEX
NYFTI BUSINESS MODEL as of May 2015
Description of the Innovation Project: Implementation/Commercialization Methods and Approaches
Description of the Innovation Project: Implementation/Commercialization Methods and Approaches
In the process of creating a Kick starter Campaign to get more funding.
Analysis of Strategic, Implementation and Deployment Problems & Issues
Imported raw materials are highly affected by price changes in the world market;
The manufacturing process is very manual to keep up with demand;
Passive role of government in terms of support for alternative means of transportation.
The Philippine urban environment is not the most conducive place for cyclists.
The Philippine market is slow in the adoption of folding bicycle.
Not enough funding to manufacture more bicycles in the street
Outdated market analysis No product diversification
CONSPROS Very entrepreneurial Niche market where no dominant
design exist yet Active roles of universities and private
firms in technology transfer Focus on export quality and design. Support for the “GREEN” environment
movement Customer-driven market strategy Capable of competing in a mid to high
end market Positive attitude towards emerging
technology (electric folding bicycle) New opportunities to export in the
European by applying for the GSP or GSP+ arrangement.
Recommendations Create a kickass Kick starter Campaign
Market the product and communicate the brand effectively
Develop and create a more diversified portfolio
Keep on innovating
Learning & Conclusion
- END -
NYFTI is a viable business venture and has a potential to grow.
Providing high quality and export material bicycles and aspiring to create more jobs for the Filipinos are both great motivations and a true example of Technonationalism.
While both government (through DOST) and private firms are investing on emerging technologies and encouraging entrepreneurship, there is the unfortunate truth that there is a lack of connection between these two to maximize technology transfer.
Universities are great sources of talents.