Welcome to Milestone 4, Cross Industry Innovation. This will be the agenda. There will be two major components each with four subcomponents. Component A will be reformulation of your vision and strategy, which includes problem redefinition. Choice of a new industry, choice of new key concepts and lastly to iron out the incompatibilities that exist with your present industry and your new one. Component B will be reformulation of your marketing mix. So from a cross Industry standpoint, you will reformulate your product, promotion, price, and place. So, lets get started. Let's begin by looking at our problem or to re-examine our problem. Sometimes our problem or how we define our problem might be a problem because it could be outdated. Problem is situation and era specific. So if your situation or era have changed then so does your problem. So we need to redefine your problem. We need to reassess our assumption that we're making about our environment. So the scoring tip here will be for you to think more deep down, to think more fundamentally as opposed to just looking at the superficial problems because the real problem maybe deeply rooted. So from that standpoint let's look at what happened with Yuhan-Kimberly. So I think from the vision's standpoint their vision being Confidence in a Better Life, that's absolutely fine. Nothing wrong there. But where the problem may be could be in their strategy. The fact that maybe from the two F's standpoint. F meaning Flexible Fit, maybe they're too skewed towards just the fit part. The selling the same products maybe still being concerned about CSR but maybe going forward, maybe they need to be more flexible. So in my standpoint maybe they're we definition of their problem specially from a strategy standpoint should be to be more flexible so that they can regenerate confidence towards a better life. Okay next having defined our problem we need to choose our new industry. So how do we solve our problem? Sometimes we have to look outside our industry. So I will have you choose one or more industry among the ones covered in this specialization. And so a requirement is that the new industry has to be different from the one that you presently are in. And the scoring tip here will be to have a similar problem but yet have a new and more innovation solution. So, from that standpoint, let's look at what YK did. Again, YK here meaning Yuhan-Kimberly. And again, the problem is for them to regenerate confidence towards a better life. Among the industries that we have covered, I would strongly suggest that the two key industries that they can benchmark are healthcare and B2B marketing. And the similarity of the problem is that of course whether it's they're a present business which is mostly manufactured products, paper products, even though they have other products Again the search for better life can be achieved with health care and even with B2B. Even better aging can be achieved with the adult diapers but with adult related services. But there is a key difference, and the difference will be in the kind of products that health care will offer. Instead of being pre manufactured, they may be much more service oriented, and also with B2B, of course, targeting becomes much more complex as we learned. Because we're now dealing with companies as opposed to with a individual consumers. The next step is having chosen these new industries, what are the key concepts that we have to benchmark? So here we need to focus in on new approaches that will help us solve our redefined problem. And so the scoring tip here will be again, to have that focus to pick and choose concepts that can directly help us solve or redefine the problem. So let's have a look at what YK did or what YK should do. So again the two industries that I strongly suggest are healthcare and B2B. In healthcare we can think about concepts like human-centered experience which is part of service marketing. We can also think about design thinking. These are concepts that were covered in the service marketing module. From the B2B marketing standpoint. A good summary approach was what I labeled the 4 W's Approach and it gets at how we should deal with buying centers, and also Push & Pull Approach. Which I think is a very important general in marketing but especially in B2B marketing given the derived nature of demand. So I would highly encourage you to review both the service marketing course as well as my B2B marketing course. To get reacquainted with these concepts. Okay, lastly just because we're bench marking other industries that doesn't mean that everything will go smoothly. If anything, you will have many incompatibilities between your existing industry and your new chosen one. So the onus is on you to iron them out, to tweak whatever inconsistencies that there are. My scoring tip here for you should be to, again, instead of just looking at the fundamental, excuse me, superficial differences, try to again probe more deeply as to what the fundamental differences are. Because on the surface it may be very similar, especially from the problem standpoint. But at a more fundamental level, such as that related to technology, that related to personnel, you may have major significant differences. So let's look at Yuhan-Kimberly and, here, we can identify major, major incompatibilities that exists between YK, and the new industry that they are bench marking. The fact that, in their existing industry, they pre-manufacture many of their products whereas in healthcare, it's much more service related. And therefore, you will need more personnel that will be able to confidently provide that kind of personalized service. From a B2B marketing standpoint. Again, the key concept that we have to think about is the buying center. And what that implies, of course, is that we also need a selling center to match up to the buying center. The fact that if you have many buyers, we too need to have many sellers.
