Innovation or Crash and Burn?

Something was missing as Heather walked into the familiar department store but she couldn't quite put her finger on it.  What is it, she thought, same store front, the red lettering and logos were everywhere, the cosmetic counter was in the same location and so were the clothing, the kitchen ware and the linens but it was definitely different.  The clothing racks were unkempt and the shelves of neatly folded sweaters and designer jeans now had the look of a teenagers bedroom after a sleep over.  As she took the escalator up to the kitchen department and began to stroll through the isles it was immediately obvious that the usual knowledgeable and helpful staff was completely absent.  It was as if all the staff had gone on break at the same time.          Through the years this store had exerted a tremendous amount of energy to create a very specific set of expectations in their customers and that level of service and quality is exactly what Heather had come to expect.  Growing in frustration as she looked for someone to help her with a simple question about cookware, she thought: if all the reasons I've been coming here for so long are gone why would I come back?  

This fable is an example of one company's effort to innovate out their existing business model in order to cut costs and attract new customers but it might be at the expense of their core customer.  The consequences of this type of radical innovation can be catastrophic if it doesn't work!!  In this case "loyal" as opposed to "fickle price shopping" customers are some of the most valuable assets a company can have and shouldn't be expected to stay loyal when all they have become accustomed to is no longer there!!

---