Team Contacts
Executive Summary
This report focuses on preparing a plan to implement an innovation plan of an organization to solve an issue that the company is facing. The organization taken in consideration is 7-Eleven convenience stores chain that operates in many countries of the world. The problem for which the solution is presented her is that the stores are getting over-crowded due to long waiting lines for coffee. To solve the issue the company has decided to move the coffee vending machine outside the store. To inform this innovation to the targeted customers, the management has decided to launch a plan that will in creating the awareness without harming the revenue generation of the company. The report includes the problem, innovation, target market, company’s competitors, resources plan, design thinking tools description, launch plan, communication plan, and long-term plan for he innovation. The conclusion concludes the findings of the report and make some recommendation. Along with it a Gantt Chart is also added.
Contents
Introduction 4
Innovation 4
Problem it will solve 5
Target Market 6
Competitors 6
Design Thinking Tools 6
Launch Plan 8
Communication Plan 9
Resources Plan 9
Physical resources 9
Human resources 10
Intellectual Resources 10
Financial Resources 10
Long-Term Plan 10
Conclusion 11
Recommendations 11
Time Frame 11
References 13
Introduction
Organizational innovation can be explained as the implementation of new ideas and methods in the organization subjected to the business undertakings, external and internal relations or workplace environment. This is done with the aim of gaining success or resolving issues an organization is facing. 7-Eleven is a Japanese-American franchisee operated convenience stores chain running more than 56,600 stores in around 18 countries across the world. It was the first store that started selling take-away coffee packs which developed a habit of taking a coffee from 7-Eleven and start a day with freshly brewed coffee. (Ollila & Yström, 2016) Recently the company’s management got an issue rising at many stores that the lines of people for coffee becomes so long that it creates inconvenience for other customers. The company wanted a solution for the issue without affecting the revenue generation of the company. The report presented here will help in finding the solution for the issue that the company is facing (Corsi & Di Minin, 2013).
Fig 1: – 7-Eleven Logo
Source: – http://corp.7-eleven.com/corp/about
Innovation
Innovation can be explained at to try something new and unique or making a change in the traditional ways to satisfy the customers. To solve the issue at the 7-Eleven stores the management has to change its traditional ways and opt for something that is new and innovative. To solve the issue the management of the company has decided to place the coffee vending machine outside the store. It will be coin operated machine which will serve freshly brewed coffee once the coin is inserted in the machine. It will have different flavours that a customer can select when inserting the coin (Rajapathirana & Hui, 2017).
Fig 2: – Coffee Vending Machine
Source: – www.istockphoto.com
Problem it will solve
Innovation is not successful until and unless it resolves the issues for which it is implemented for. Installing the Coffee Vending Machine outside the 7-Eleven store will help in bifurcating the customer segment into two parts. People who wanted purchase just coffee will take it outside the store and move, where as other customers will enter the store to make other purchases. This will help in reducing the chaos in the store happening especially in the morning and evening time. Also, there will no loss of revenue in implementing this innovate
Ion (Dougherty, 2016).
Target Market
Target market are the people whom the organization wants to pitch for selling the products. The main target market for 7-Eleven stores are the people who comes to convenience store for making there day to day purchases. But, keeping in mind the innovation company is implementing then the target market will be the people who want the coffee, but does not wanted to spend time waiting in the line and take another option. Also, the people who do not visit the store because of the crowd in the peak hours will come to the store without any second thought (Dodgson, 2016).
Target market will include the following: –
Office goers
Students
Morning walkers
Coffee lovers
People living within the one-mile radius of the store
Competitors
Competitors are those who covers the market share for the same products the organization is selling. Though 8-Eleven is a convenience store still it has a huge market for the drinks and eatables it sells. As this report is focusing on the coffee that 7-Eleven sells then the competitors for the organization will not be another convenience store but the café, and store selling coffee. There are many convenience stores and coffee-selling cafes that are also giving quick services to the coffee lovers. For example, Nestle, Costa Coffee, Dunkin Donuts, and McDonald’s are some big competitors of 7-Eleven (Koch, 2012).
Design Thinking Tools
To analyse the solution presented here for the issue 7-Eleven various design thinking tools were used and the outcome was scrutinized to confirm that solution is appropriate for the issue 7-Eleven was facing. Some examples of Design Thinking Tools used to analyse the solution was as follows: –
Mind Mapping
Story Telling
Brainstorming
Visualization
Journey Mapping
Concept Development
Why? How? And What?
2×2 Matrix
SWOT Analysis
These design thinking tools showed that the innovation plan decided for finding the solution for 7-Eleven problem is appropriate for the situation (Koch, 2012).
Fig 3: – Various Design Thinking Tools Applied
Source: – Self-Developed
Launch Plan
Any company bringing something new or making some change in the original methods have to inform its customers about it and that should be done through a properly detailed launch plan. Bringing this change in the infrastructure of the stores of 7-Eleven and how customers will be happy and comfortable with this innovation was in need to informed to its targeted customers and that is done as per the below-given launch plan: –
Table 1: – Launch Plan
Date
Activity
Outcome expected
1 September
Every store will have a board hanging in front of the coffee machine saying “Soon Renting a New Place”
People will get eager to find what how a coffee machine will rent another place.
1-7 September
All communication channels will carry the same tagline with 7-Eleven store in the background and its coffee machine saying “Soon Renting a New Place.”
It will create a rush between the people, specially between those who are regular visitor of 7-Eleven stores.
8 September
A new message will be flashed saying “Found a new house, you are invited for the house warming party on 9 September at your nearest 7-Eleven store.”
It will make people visit the nearest store to see the new innovation.
9 September
Every store will place flash cards for welcoming the new Coffee Machine placed outside the stores saying “My New Home.”
People will come to know that now coffee will be available outside the store.
Communication Plan
Lunch of a product can only find success when the message needed to be send to the targeted customers is clearly communicated and for that a company has to develop a communication plan. The communication plan for creating awareness of the above-given launch plan and about the change of place of the coffee machine at 7-Eleven is as follows: –
Message- The message that will be communicated to the customers will clearly state that there are some changes in the location of the coffee machine of 7-Eleven will take place on 9th of September (Volkova & Jakobsone, 2016).
Communication Media
Newspaper- This method of communication media has the widest coverage of the targeted customers.
Bill-Boards- Bill-Boards will placed at the areas where most of the traffic appears.
Vehicles- Vehicle painted with the message will be travelling every nook and corner of the city.
Social Media- Social websites like Facebook, Twitter, and Instagram will used to spread the message (Santovec, 2012).
Radio- Radio air time will be hired to spread the awareness about the innovation.
Communication Budget- The approximate expenses incurred for the whole communication awareness will be nearly $ 500 per store
Resources Plan
Resources are those things tangible or non-tangible that are required for fulfilling any plan taken up by the company. These resources are essential in the success of any innovation the organization is planning to adapt or introduce (Haupt, 2016). The resources required for managing the innovation at 7-Eleven stores are as follows: –
Physical resources
Every store will need a coffee vending machine or two as per the footfall of the customers.
Creating a place for the coffee vending machine need the change of infrastructure of the store.
Dustbins will be required to placed outside, next to the machine to maintain the cleanliness of the place (Moore, 2017).
Human resources
Coffee machine operator will be needed by each store to assist people in understanding the machine.
2 technicians need to be appointed to avoid any last minute technical issues that may arise in the coffee vending machine (Zhang, Cui & Zheng, 2016)
Intellectual Resources
The website of the company’s first page will be advertising the innovation and pictures different 7-Eleven stores on the day of the will be flashing so a computer technician will be required to manage and update the webpage.
Financial Resources
7-Eleven is successful convenience store chain which has sufficient funds for managing the financial needs of the innovation like communication media expenses. Rest the franchise owner will bear the expenses of change in infrastructure of the store as it will be easy for him to handle crowd at store after this (Ollila & Yström, 2016).
Table 2: – Approximate budget for the launch and communication plan
Expenses
Amounts ($)
Website changes
Advertisements in various medias
Coffee machine installation
Infrastructure change
Labour charges
Other expenses
500
3,500
8,000
1,000
200
800
Total
14,000
Long-Term Plan
7-Eleven is the store that always aims at providing best customer experience to its customers. This innovation is taken up the company because keeping the coffee counter inside the store was making the customer wait in the long lines for their turn to get coffee and also other customers were having issues with the crowd in the store. Due to these reasons, the management has decided to shift the coffee machine outside the store. If this innovation is liked by the customers and helps the company in the generation of better amount of revenue, then the management will aim at moving all other company’s personalised range of drinks like Slurpee counter outside the store. In the long-term the stores will be managed well and it will be easy to maintain hygiene and cleanliness in the store (Corsi & Di Minin, 2013).
Conclusion
Innovation is an important step that every organization has to take to find success in the business. 7-Eleven is one of largest convenience stores chain. It is having issues with the crowd accumulated in the store waiting for its famous coffee. Keeping the customer’s satisfaction on the priority the company has decided to place a coffee vending machine outside the store to divide the crowd a per their need and choice of purchase. It is a good step to avoid commotion at the store. Hence the conclusion of the solution is that keeping the coffee vending machine outside the store will help the store manager to manager the store more efficiently and effectively.
Recommendations
There are certain factors that arises when a project is applied. Also, reading the plan again and again bring small errors that may decrease the expected output from the applied innovation.
Some recommendations for better implementation of the solution are as follows: –
There should two counters for coffee one outside and one inside the store as it will help to maintain those customers who wanted purchase coffee as well as other products.
Discount offers can be given to the customers to attract more foot-fall in the store.
Other than coffee more options like Slurpee can also be placed next to the coffee vending machine
People may not like the wending machine’s coffee taste as they are in a habit of drinking freshly brewed coffee. So, the other counter can serve only freshly brewed coffee.
Time Frame
It is important to decide what needs to be done and when. As this allows the timely completion of the project and lower operational costing. The Gantt Chart for the innovation of keeping the coffee vending machine outside the store and its launch plan and communication plan along with their time frame is given here: –
Table 3: – Gantt Chart
Date
Activities
1 Sep
2Sep
3 Sep
4 Sep
7 Sep
8 Sep
9 Sep
Mouth Publicity
Web Page Development
Social media Presence
Communication
Launch
This Gantt chart indicates that an awareness will start from 1 September and website will display the advertisement about the innovation by the 2nd of September. The social media presence and message communication through various communication channels will start from 1st September till 9the September. The Launch will take place on 9the of September.
References
Corsi, S., & Di Minin, A. (2013). Disruptive Innovation … in Reverse: Adding a Geographical Dimension to Disruptive Innovation Theory. Creativity And Innovation Management, 23(1), 76-90.
Dodgson, M. (2016). Innovation and play. Innovation, 19(1), 86-90.
Dougherty, D. (2016). Organizing for innovation in complex innovation systems. Innovation, 19(1), 11-15.
Haupt, G. (2016). Hierarchical thinking: a cognitive tool for guiding coherent decision making in design problem solving. International Journal Of Technology And Design Education.
Hemphälä, J., & Magnusson, M. (2012). Networks for Innovation – But What Networks and What Innovation?. Creativity And Innovation Management, 21(1), 3-16.
Koch, A. (2012). Authority and Managing Innovation: A Typology of Product Development Teams and Communities. Creativity And Innovation Management, 21(4), 376-387.
Moore, R. (2017). Innovation Watch—Innovation Initiative Unveils New Strategic Plan. Opflow, 43(8), 8-8.
Ollila, S., & Yström, A. (2016). Exploring Design Principles of Organizing for Collaborative Innovation: The Case of an Open Innovation Initiative. Creativity And Innovation Management, 25(3), 363-377
Rajapathirana, R., & Hui, Y. (2017). Relationship between innovation capability, innovation type, and firm performance. Journal Of Innovation & Knowledge.
Santovec, M. (2012). Design Thinking: A Tool to Solve Challenging Problems. Women In Higher Education, 21(11), 7-7.
Volkova, T., & Jakobsone, I. (2016). Design thinking as a business tool to ensure continuous value generation. Intellectual Economics, 10(1), 63-69.
Xia, G. (2011). Research about Corporation Product Innovation Plan. Energy Procedia, 13, 1355-1361.
Zhang, L., Cui, Y., & Zheng, M. (2016). Two-way open innovation and firm growth: the moderating effect of external environment. Asian Journal Of Technology Innovation, 24(1), 123-141.