How the company was able to pursue this innovation (process/product/

business model) and what are the steps in developing this innovation?
Process innovation: Nike
4 stages of Nike process innovation:
1. “Embrace disruption. This is where the ideas come from. They don't ask their engineers to
make a product better. They encourage them to change the process and the product alto-
gether.
2. Build in time for change. The original idea or prototype will very rarely be the successful
end innovation. Because of this, Nike understands that their engineers will possibly need to
make a thousand prototypes before they get it right.
3. Nike partners with the best. Admitting you don't know everything is a crucial step towards
creating something great. Collaboration with other innovators and organisations can intro-
duce unexpected insights that produce a better final product.
4. Nike holds company culture close. Company lore is sacred and new projects are treated
with the reverence of top-secret government documents. This culture helps keep employees
motivated to take the best possible innovations to the finish line of production.”

In order to male this innovation successful Nike collaborated with athletes like Paula Radcliffe to
ensure that shoes are really designed fo the sport performance. Additionally that made sure that:
“every employee that touched the shoe understood the importance of the product and that they were
proud of their input.”

Effect on supply chain: changes in production process, new machines, potential new production
places, more/less employees, new resources

Product innovation: Apple (iPhone)

Theres is a huge difference between iPhone that was rebased in 2007 and those that are expected to
be released in 2022. There are many aspects that have improved since first iPhone like camera, the
screen design its quality. First iPhone was a huge innovation in the phone industry, it first provided
multi-touch in of the changes in the iPhone since 2007, (not all):
• “3.5-inch display with a resolution of 320 x 480 pixels
• iOS, a new multi-touch interface controlled entirely by your finger
• Internet Connectivity (2G) with native email client and web browser
• 2-megapixel photo camera with NO video recording capabilities
• Ambient light sensor, proximity sensor
• On-screen keyboard
• 4GB / 8 GB / 16GB storage models
• YouTube and Google Maps applications, Google Search
• iPod music / video player with support for iTunes”

Effect on supply chain: change in raw materials, resources and the way of production, advertise -
ment. Potential new machines, more/less employees. No changes in transportation or delivery sys-
tem.

Business Model innovation: Netflix

In 2005 we can say that Netflix had business model innovation when they started to offer online
streaming service. It offered after rejecting the proposals for a hardware device that would aloud to
download movies only over night.
Netflix becomes one of the most popular streaming platform with amazing recommendation algo-
rithm. They were able to outperform the DVD’s.

Effect on supply and chain: there is no any changes in production or machinery. They only thing to
adapt its the platform for movie streaming, and algorithm (potentially more employees needed)

To summarise, currently in order to be successful supply and chain need to be extremely flexi-
ble to quickly adapt, and adjust to all changes due to fast evolving industries.