Innovation - the life blood of small business
This may be the greatest single innovation of 2006. It is not invention, but it is adaptation. It is smart, cool, thoughtful and very profitable. According to one story this innovation was implemented by Burger King franchisees in Indiana. What they did was merge the drive-up-window and the remote call center.
Here’s how it works. You drive up to the ordering station at your local Burger King and yell your order. Someone at a remote call center takes your order, asks if you want fries with that, and oh, they have a special on strawberry shakes. The order taker types you order into their remote computer which sends it to the computer in the kitchen of the local store where you are waiting in line. The people at the local store take your money, give you your order and send you on your way. Mean while the order taker is taking another order from the same store or some other store miles away.
Some of the benefits of this approach are fewer ordering mistakes, higher worker productivity, reduced head count and elimination of peak period staffing problems. The real benefit is that stores that use this approach are moving a third more cars through the line. There is now a new company, I believe in New Hampshire, that provides this service to any drive-thru store. They are concentrating on the east coast.
Let’s see this innovation reduces cost, increases inventory turn, increases customer satisfaction and increases per store profits. It didn’t some from big corporate headquarters or university or think tank. It came from small business owners on the ground with their customers. Wow.
Why do you innovate? If you don’t your competition will and they will put you out of business.
How do you innovate? First, listen and observe what is happening around you. Second, think. Third, don’t wait for anyone to tell you what to do. It’s your money that is on the line. Fourth, try something. Whatever it is it won’t work perfectly. Fifth, adjust and try again. Sixth, measure the impact of what you do to make sure it provides some sort of positive to your business. Seventh, go back to the beginning and start again with something else.
There are several good books on innovation if you want to read. Try Innovation: The Five Disciplines for Creating What Customers Want by Carlson and Wiltmot or The Long Tail:Why the Future of Business is Selling Less of More by Anderson.
An important point: Innovation must have some value in order to be meaningful. Edison made an automated vote counter for the Congress, but they would not pay for it. It was not an innovation just an interesting toy. Always questions about money. Even if you do not intend to charge for the innovation, ask will someone pay for this? and how much? and when? People will tell you yes and oodles and right away. Be skeptical. Only believe about a third of the answers. Until someone reaches into their pocket and hands you the money you don’t know if anyone will pay.
Another important point: Small innovations are at least as valuable as large ones. Make small improvements when you can rather than waiting for some enlightened moment. Toyota did not get to be the biggest auto maker in the world with a series of major innovations. They got there with millions of little ones such as use 4 screws to attach a foot plate when 3 would work well, because the stupid thing will stay on for 200,000 miles without a problem.
Here is the big tip. You can make the drive-thru call center you business.
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