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Google Inc. of the West and Xiaomi Inc. of the East

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1 Google Inc. of the West and Xiaomi Inc. of the East
Google Meets Xiaomi This Photo by Unknown Author is licensed under CC BY-ND Google Inc. of the West and Xiaomi Inc. of the East

2 Stanford University of California
Founders Founded by two student PHD dropouts Stanford University of California

3 Founders Founded by 7 well educated men . Jun Lei CEO
B.A. in Computer Science Mr. Bin Lin Co-founder, President B.S. in Electrical Engineering Mr. Wanqiang Li Co-founder, Senior Vice President B.S. in Industrial Engineering Dr. Guangping Zhou Co-founder, Senior Vice President PhD in Electrical Engineering from Georgia Tech Mr. Kong-Kat Wong Co-founder, Vice President Purdue University with a B.S. in Computer Science 6. Mr. Feng Hong Shanghai Jiao Tong University 7. Mr. Chuan Wang Co-founder, Vice President University of Science and Technology Beijing with a M.S. in Computer Science Founded by 7 well educated men

4 Google vs. Xiaomi Founding year Company ownership
Company core competency Operation scale

5 Flat Management Morality Intellectual Physical Ability Cooperation
Elegance

6 Entrepreneurship

7 What does innovation mean?

8 The phone almost at bill-of-material prices
Does not own a hardware factory. Does not own a physical store. Spends very little on advertising Profits by selling phone-related peripheral devices, online videos, themes, etc.

9

10 6 of the World's top 10 Smartphone Brands are Chinese

11 Xiaomi Joins Samsung as India's Top Smartphone Maker: IDC

12 Innovators?

13 Xiaomi Integrating User-driven Innovation and the Organizational Design
Xiaomi is focusing on being the most user-collaborative mobile internet company, which constantly exceeds user expectations, through innovations in software, hardware and Internet services.

14 What is something we all have that we can’t live without?
Our Smartphone!!!! Estimated 1.8 Billion smartphones out in the world and within arms reach to all its users. 9 out 10 searches are done with a smartphone than any other device (computers). Xiaomi made it possible for the consumer to acquire a high-end quality product, at a reasonable price. Primary focus is in Chinese and adjacent markets, which is why the company name to most people outside of Asia, may be unknown

15 Theoretical Framework in Xiaomi Study
Open Innovation (new way of thinking) Want, Find, Get, Manage Model

16 Open Innovation New way of thinking!
Basic concept is that no business is an island, meaning that you cannot stand alone and you will have to engage the environment around you. Xiaomi has millions of fans and users and therefore the company has to identify who to collaborate with and how to collaborate with these individuals Xiaomi will have to formally structure itself to be able to engage with these fans, without letting the fans come too close to or influence too much on the company operations

17 Want Model Diffusion of innovation?
Want to acquire a deeper understanding of the relationship between new technology and new ideas in regards to how, why, and with what rate these are being spread amongst users through communication in cultures Scouting Observing channels over a certain period of time, where the communication amongst participants in a social system is the process where the diffusion occurs Strategy Diffusion of messages with information shared between participants through communication on the social platform is vital to fully grasp in order to benefit from the shared knowledge

18 Find Model 3 Phases in Find Model
First we want to establish why you have to scout for individual capability providers and which errors might occur in this process. Secondly we want to establish the definition of a social media platform. Third is how a company successfully can use its social media assets to single out important individuals whom the company is interested in collaborating with

19 Get Model • Lead User and Participatory Design
Lead users are usually involved in the initial exploration phase where the task is to define problems. In participatory design, participants are invited to co-operate with technicians, engineers, designers and developers during innovation process, bringing about new ideas to optimize the product

20 Manage Model How Xiaomi could structure their organization to easily collaborate with its external environment? Many organization structures that Xiaomi can use Ambidextrous organizations Open systems – Contingency Theory Organic organization Matrix Design

21 Keys to Success to User Driven Innovation
Xiaomi constructs user loyalty is based on various activities held by in the Xiaomi Forum. Accurate grasp of users’ insight (Constant updating of internet necessitates more accurate and comprehensive understanding of consumers’ minds) Motivation and reward strategy(Motivating external stakeholders to supply innovation is particularly challenge because of the possible misaligned interests between these stakeholders and the focal firm)

22 STRUCTURING AN ORGANIZATION
Xiaomi have succeeded in creating collaborative approach, which is controlled by the demand of the market. This gives them a better chance of creating commercially successful innovations, and thereby maintaining a sustained competitive advantage.


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