One of the greatest things that assist in improving and maintaining a successful business is by being innovative. Being capable of adapting to the various changes in the industry through the application of innovation assists the company is thriving and surviving. Blockbuster is a video game and movie rental business that was declared bankrupt and faced closure in many of its stores while the stores that remained were bought by Dish network. This essay will give an analysis of the missed opportunities for innovation that negatively impacted Blockbuster. It also describes the reward systems and innovation measurement for the existing employees. The essay also explains the process for problem-solving as well as a description of the implementation and evaluation of innovation. It also describes the assessment of acquiring external technology as well as the implementation processes. Lastly, the essay looks at the ecosystem of the organization regarding innovation.
One of the missed opportunities that negatively impacted Blockbuster was the introduction of the convince factor by the competing companies that shifted the way the consumers accessed their favorite movies and video games. For instance, a company like Redbox started selling their films and video games from a retail kiosk and this eased the accessibility of such films and games by customers from the local chain store or supermarket. Streaming Companies like Hulu and Netflix increased customer’s convenience in acquiring the movies while they were still at home. Blockbuster failed to keep up with the changing lifestyles of the people as well as the need for the convenience stores. Blockbuster also was unable to focus on advisory or consultative selling so that it would turn its stores onto some de facto recommenders. It did not also implement the true social networks to catalog and rate the movies and even ignored the use of customer data in developing the predictive engine that could be used by me, members in locating their new sites. The company would have encouraged its store associates to establish some ongoing customer relationships as well as the ways of promoting all the library titles. This would have made them the movie’s experts and moved their brand to a new platform of distribution (Baskin, 2013). Another missed opportunity for Blockbuster occurred in 200 when the Blockbuster CEO John Antioco was approached by Reed Hastings who wanted to sell him the company he had founded, Netflix, at only $50 million. Antioco thought that buying this business would be a very small niche and thus declined the offer. Netflix by then was just a DVD mailing service. Today the company’s worth is almost that of CBS with a market valuation of $32.9 billion. Netflix has also managed to reach the 50 million mark in the number of subscribers and has stretched to 40 countries according to the reports by CNN in 2017 (Chong, 2015).
Innovation may be derived from any employee. For instance Howard Schultz the Starbucks CEO went to every store manage around the world so that he would acquire some ideas from them on how they would enhance innovation in the company to ensure increased competitiveness and productivity. The employees were able to come up with various ideas that would assist him in redesigning the café experience. Blockbuster will measure innovation through perceiving the number of ideas generated by their employees every month. The reward of this idea from the employee would be enabling the employees to have a feeling that they had personal investments in the company. This will motivate the other employees to contribute some more new ideas so that they get private investments in the company.
The problem-solving process that would be adopted by the company would involve some steps. The first step that will be applied by the company is to ideate. The company would first identify their challenges, goals or desires. This is the initial step since it is easily assumed. Once the problem is identified and understood the company would then collect some information about the issue and also develop a clear comprehension of it. After forming the understanding then questions will be asked to generate solutions. The second step is to ideate. It involves the exploration of the ideas. Ideas will be created to answer the challenges that were perceived in the first step. The fourth step would be developing. It is a step that involves the formulation of the solution. This is the convergent stage of creative problem solving, and it will include focusing on the evaluation of all the possible options to derive the best solutions. The last step is implementation. It is the formulation of the plan. Once the best solution is chosen by the company, it would then have an idea of action. This would be possible by identifying the action and resources that would allow for the implementation of the chosen solution (Mindtools content team, 2018). Next, the company will communicate the plan to ensure that every person who is involved in accepting and understanding it.
The company will also be involved in innovation evaluation and implementation, and it will follow some steps. This first that will be followed is stating the goal or the problem. Once the company develops its purpose, it will then consider some other issues that are inclusive of the budget, participants, timeframe, resources as well as the rewards. The second step will involve the analysis of the idea generation methods. Once the company will be set it will then generate its ideas. Some of the approaches that it would use to come up with the innovative ideas include experimentation, brainstorming, and use of idea campaigns. The initial evaluation would be the third step. Once the company captures the right ideas, it would then evaluate them to determine the best one to consider. It will use the 5×5 criteria matrix that is most effective during the initial evaluation method. The criteria matrix will be used in determining the five criteria that could be used in ranking the promising ideas. The fourth step will be reporting. There will be the generation of a report on the top plans and their evaluations (Baumgartner, 2013). This will be followed by the pre-implementation stage. This a preliminary actions, for instance, the building of a business case, making a prototype or conducting some market research. Lastly is the implementation stage. After all the ideas are evaluated and the best one chosen it will then be put into action.
The company will outsource its technology to other firms. Through external sourcing, the company will be in the position of overcoming all the internal knowledge deficiencies, and it will also be able to resolve its problems of inadequate internal capabilities and resources. The firm will also be in a position to acquire the industry standard complements and technologies for the existing products that will unlock the innovations and technology in existence. When the company outsources its non-technological activities, it is given the opportunity of focusing on their capabilities and resources on developing their primary technological competencies (Kang, Jo& Kang, 2015). It will also enable the business to be highly flexible in strategic decision making for development of technology.
Six steps will be followed during the implementation of the technology. The first step would involve working from the ground up, and it involves starting from the most primary level. It assists in measuring what works with the new technology, the level of success as well as what does not work. The second step is the offering productive support. Once the technology is chosen for integration, the company will institute some support system to mitigate any difficulties during the transition. The third step is ensuring transparency in the whole process. This assists in reducing friction with the other workers who might not know the new technology. The fifth step is building of value. Employees should be communicated with openly, and they should get all the details about the changes and the motives behind them. Lastly is the maintenance of momentum. The company will establish a team that will monitor the implementation process and ensures its success. It will also maintain the technology and ensure compatibility with the existing technology (Ruch, 2016).
Blockbuster started experiencing its back fall in 2003 when it experienced stiff competition from the streaming companies like Hulu and Netflix. In 2004 Blockbuster introduced the Blockbuster.com which was the online competitor of Netflix. However, by that time, the company had ultimately engaged in mail DVD market, but Netflix was proliferating. Blockbusters revenues started stalling in 2007 whereby it experienced a drop of over $5 billion and 5100 stores were closed. Blockbuster did not take seriously the business model innovation that Netflix and other companies adopted that is the addition of streaming content together with the mail order rental market. The last thing that broke the company was the decision to remove it from the digital space by the CEO and more focus was put on the Brick and Mortar model. Therefore from such strategic choices and lack of innovation the company failed terribly. However, in 2011, it established the streaming space, but the market was highly competitive because other companies were already in (Bennington,2015).Currently, the company is keeping live content with only Blockbuster on-demand streaming which forms part of the Dish network service package.
Baumgartner, J. (2013). A Process for Innovation Planning | Innovation Management. Retrieved from http://www.innovationmanagement.se/imtool-articles/a-process-for-innovation- planning/
Bennington, D. (2015). Blockbuster Busted Part 1: An S-Curve Analysis | Chief Innovator. Retrieved from http://www.chiefinnovator.com/structure-methods/blockbuster-busted- part-1-s-curve-analysis
Chong, C. (2015). Blockbuster’s CEO once passed up a chance to buy Netflix for only $50 million. Retrieved from http://www.businessinsider.com/blockbuster-ceo-passed-up- chance-to-buy-netflix-for-50-million-2015-7?IR=T
Kang, K., Jo, G., & Kang, J. (2015). External technology acquisition: a double-edged sword. Asian Journal Of Technology Innovation, 23(1), 35-52. doi: 10.1080/19761597.2015.1010265
Mind tools content team. (2018). Creative Problem Solving Finding Innovative Solutions to Challenges. Retrieved from https://www.mindtools.com/pages/article/creative-problem- solving.htm
Ruch, D. (2016). Six Steps for Successfully Implementing New Technology. Retrieved from https://www.inc.com/dan-ruch/six-steps-for-successfully-implementing-new-techno.html