Agile for Customer Delight

Editor's Notes

1. Super Bowl is the National Football League championship game, played annually at the beginning of february (first sunday). Actually it is the finals between two conferences, National Football Conference and the American Football Conference winners. Each year it is watched by more than 100 million viewers, which makes it one of the most watched TV events of the year. 30-seconds of fame during one of the most watched TV events of the year, is only for super rich brands that had spent months [and millions] preparing for their big 30-second moment of fame. 2013, the average cost of a 30-second advertisement was around $4 million.. There were around 50 adds in 2013.. Best Super Bowl Commercials of 2013: http://www.youtube.com/watch?v=gDovzhqwS7g (Samsung, Audi, Toyota, Pepsi, Budweiser, Coca Cola etc)
2. For the first time in its history, the power went out during the first half of the game for about half an hour..Everyone was in shock, waiting and looking for what's going to happen.
3. At this weird moment in big time sports history with everyone a little confused, the social media masterminds at Oreo tweeted: “Power out? No problem. You can still dunk in the dark” The tweet was sent out to Oreo followers with those clever words and a simple visual of a solitary Oreo cookie in the dark. It was retweeted 15,000 times. Folks glanced down at their smart phones and howled as they received this mobile quip. People at parties were left commenting about how clever Oreo was. And, following the event, there were all kinds or articles written about how smart Oreo was.
4. At the beginning of 2000s the digital revolution swept the world and camera film sales dropped 90 per cent in 10 years.
5. Fujifilm was the number two imaging company behind Kodak. Kodak didn’t make it, going bankrupt last year. Fujifilm not only survived but emerged into the digital world of today with a series of innovative new businesses. The beginning of the new millennium witnessed the rapid spread of digital technology in cameras. Demand for photographic films showed a sudden plunge in line with the growing popularity of digital cameras. In response, Fuji Photo implemented management reforms aimed at effecting drastic transformation of its business structures. Even as early as the 1980s, the company had foreseen the switch from film to digital, so "it developed a three-pronged strategy: to squeeze as much money out of the film business as possible, to prepare for the switch to digital and to develop new business lines." While both film manufacturers recognized this fundamental change, Fuji Photo adapted to this shift much more successfully[3] than Eastman Kodak (which filed for bankruptcy in January 2012). Fuji Photo's diversification efforts also succeeded while Kodak's had failed; furthermore Kodak built up a large but barely profitable digital camera business that was undone quickly by smartphone cameras.[3] Kodak tried to fulfil the user needs of their customers based on the additional possibilities of the new digital imaging technology and Fujifilm in opposite tried to find new applications for their existing Technologies. Fujifilm focused in medical systems, graphic systems, biomaterials, industrial products, optical devices etc. Fujifilm also focused on applying its technologies in new areas. Fujifilm's expertise in nanotechnology for placing chemicals onto film, for instance, was carried over to applying cosmetics to facial skin. Expereince with photosensitive materials helped it with fine chemicals and industrial materials. Today, Fujifilm's medical-imaging equipment business is growing quickly.
6. Faced with a serious challenge to its core business, the company learned early on that to stay viable, it had to innovate. Rather than abandon the film production business, however, the company reflected on how it might apply its expertise to new markets. “We are a photo-imaging company,” says Mr Kohn, “but we realised that human skin shares similar properties to thin-film photo processes.” Just as free radicals can mar a smooth complexion, they can also degrade photo-imaging quality. Fujifilm recognised that the oxidation control mechanisms it invented to prevent photos from deteriorating over time could be modified to produce creams that preserve skin quality. Indeed in September 2007 the company launched a line of skincare products, called Astalift, based on technology it had developed for film. “A few years ago, who would have imagined moisturising with a photo-finishing byproduct?” says Mr Kohn. “But the ability to find new and non-traditional avenues to apply our strengths is fundamental to our ability to remain competitive and responsive.”
7. 80% of business is on basic lines (massive production with cheap production but long lead times), 20% is on fast fashion (expensive to produce since produced in small batches, short lead time) Zara is consider to be the pioneer in fast fashion, with its twice a week supply to its stores with new fashion items. For comparison, the usual times are from six to nine months (Bruce and Daly, 2006) for far east clothing industry, 4 months for an international brand and only a week for Zara (Zhang, 2008). This way Zara can react immediately on demand changes and even if an item is not salable, there are small number of it in a store. The new items in store keep people coming back every week and find new goods to buy. It helps to keep the stores “fresh” and minimize the risk of wrong forecasting (Dutta, 2002). These facts are well known by Zara and used in its daily operations. Zara’s designers gather data on sales and inventory from each of its stores on a daily basis and use this to inform their view of the situation. This process is named Shared Situation Awareness by Sull and Turnocni. It consist of three steps: observe the raw data, making sense of raw data and testing hypotheses (Sull and Turconi, 2008). The raw data comes from quantitative and qualitative approaches. Sales and replenishment reports are examined hourly by the Zara’s store managers. On the other hand store managers order items themselves instead of relying on what has being sent from the headquarters. The accuracy of their forecasting affects their compensation, which makes them more responsible. Part of the qualitative data gathering is direct customer feedback given to shop assistants daily. Another one is after shop closes, the store manager and assistants turn to a recovery team and try to recall what happen during this day, as well as sort out tried, but unsold items in fitting rooms and try to find a pattern, which can be fed to the design team. The gathered raw data is analyzed in Zara's headquarter, where design team, fast prototyping team, market specialists and buyers sit together in tightly coupled teams. The discussions are located in three halls with open layouts: one for man, woman and children clothes. Based on feedback new designs are made, prototyped and rated by the team. Depending on the outcome, there are trowed away or send to store to test if customers will buy them.
8. Zara's success is due to many reasons, e.g. efficient supply chain, efficient organization management, and one of the most important customer orientation. When the movie Marie Antoinette was released October 2006 in the cinemas and become total hit in EU and US, Zara's stores were populated with puffy ball gowns and jackets from velvet with golden buttons (Sull and Turconi, 2008). Another example of listening to its customers' voice was after 9/11 act in New York. For a week the colorful outfits were replaced with back and dark colored clothes in Zara's stores.
9. Zappos is an online shoe and clothing shop currently based in Las Vegas, Nevada, founded in 1999. National Retail Fondation’ın yaptığı Customers’ Choice Awards anketinde Zappos 2007‘den beri en beğenilen, müşteri memnuniyeti en fazla olan şirket arasında top 3’te.. ZAPPOS In July 2009, the company announced it would be acquired by Amazon.com in an all-stock deal worth about $1.2 billion.[4][5][6] Since its founding in 1999, it has become one of the world's largest online shoe stores.[7] Zappos was ranked 23rd on the Fortune magazine's list of "Best Companies to Work For" in 2009, 15th in 2010, sixth in 2011, dropping slightly to 11th in 2012
10. http://www.youtube.com/watch?v=o8DuHpMxIt4
11. Agile describes a shared organizational culture and formal set of processes based on iterative and incremental activities and cross-functional teams.
12. Video izlet, 1:07’de sonlandır 10 adet core value’ları var, müşteri odaklılığı, yaratıcı ve farklı olmayı, eğlenceli bir çalışma ortamını tetikleyen..
13. Bu culture and people and process transformation..bu dönüşümü başarılı kılabilecek ya da engelleyebileck kişiler people ın..o yüzden onlarla değişim üzerinde çalışmalısın.. Culture değişimi ise çok çok zordur..bu noktada bezelye sevmeyen çocuğu ikna etme anajosi ile benzer bir durumla karşı karşıyayız..
14. We are not talking about simply eating more peas, we are talking about eating peas that they didn’t like
15. She put a child who didn’t like peas at a table with several other children who did. Within a meal or two, the pea-hater was eating peas like the pea-lovers. We tend to conform to the behaviour of people around us, which is what makes culture change particularly challenging because everyone is conforming to the current culture.