The company's experience LEGO: Things to know about innovations and Creative

The design team is locked in a closed room, fenced off from the company and comes up with an idea that will appeal to a customer or project manager. Creators come up with bright ideas, but do not know to know about what really needs company. Then it turns out that the latest innovations, for all its attractiveness, started the company in the next crisis. Is it possible to avoid such unfortunate innovation and creativity inefficient? You can, but it will have to change the process of creating new ideas.

Many companies do not pay enough attention to innovation and creative ideas, though, it would seem, companies how to BT, Microsoft, Starbucks, Xerox, Yahoo and others have proven that innovation in design - it is the key to success.

In the last century there were many cases in which due to the innovation and creativity of the company to overcome the crisis. But creative approach to business should be much wider than the closed brainstorming creatives team, who have no idea about the company's problems, its goals and its future development plans.

Innovation should be global, affect not only products, but also the structure of the company. The result is a new production process, due to which the creation of new products - and creative, and satisfying the needs of business.

An interesting example of these changes - the company LEGO, the world-renowned manufacturer of toys. If you disassemble the company's crisis, which lasted from 1993 to 2004, it is possible to answer two main questions:

1. Can creativity and innovation to help companies during the crisis?
2. Applicable whether a new model of development, with an emphasis on innovation and creativity for other companies?

The birth of a giant in the world of toys

The Danish company LEGO was founded in 1932 by Ole Kirk Christiansen, whose small joinery company failed due to lack of wood supply.

Christiansen switched to the production of wooden toys, then bought the machine for plastic molding and began producing plastic toys, which sold very well. After the death of the first owner of the company passed to his son - Kjeld Kirk Christiansen.

plastic "bricks" the LEGO Manufacturing, of the designer, to which we are accustomed, was launched 56 years ago, in 1958.

Now the company has about 5000 employees worldwide, more than 12,500 stores and 11,000 suppliers. In addition to the main base at LEGOLAND production facilities are located in Sweden, the Czech Republic, the USA and South Korea.

LEGO design team consists of 120 people in Denmark and 15 designers from Slough in the UK. However, it was not always. From 1993 to 2004, the LEGO experienced two serious crisis, but still remained afloat and even more.

Hard times LEGO

Until 1993, the LEGO face common challenges in the field of sales, but have not experienced serious problems, because in general sales and earnings continued to grow.

But after a difficult period between 1993 and 2004 year sales rose again and secured £ 163 million net profit in 2008. In the UK, sales increased by 51% and its market share increased from 2.2 to 3.3%.

What made the sales and revenues is not just decline and collapse into the abyss? And what did the LEGO company, not just to get out of this abyss, and to significantly increase their sales and revenue?

Between 1993 and 2004 the company was faced with two major problems. The first was discovered between 1993 and 1998, when LEGO toys have already been in all the stores, and the company began to grow.

In order to maintain steady growth, the company produced more products, but sales did not increase. Because of this increased expenditure, and profit accordingly declined.

The company suffered losses, which was followed by a wave of layoffs: a new job had to look for 1000 employees. Kjeld Kirk Kristiansen withdrew, saying that "perhaps he is not the man who can lead the company into the next generation."

The new president of LEGO Plougmann Paul understood that the company needs to innovate. After analysis of the market and consumers, he found that the children become smarter, the market is filled with serious competitors like toys from the "R" Us and Walmart.

In addition, many toy stores have moved production to China to reduce its cost, so just raise the price of toys, designers will not work - they do not survive the competition.

Innovation is the company - the company out of business

Since the company was built on innovation, which should meet the expectations of consumers and demands market, the LEGO response to the financial crisis of the release of a new product, hoping that it will open up new capabilities.

LEGO collaborated with other companies that produce toys based on famous movies such as "Star Wars" and "Harry Potter."

The company began to produce new Circuits designers in subjects known films, and it is well-known films attracted children and not LEGO building blocks as such.

Some of the products, such as designer of "Star Wars", perfectly entered the market and helped the company to survive, while others were a great failure, for example Galidor.

Despite the fact that LEGO turned to innovative thinking, new products do not solve the company's problems, as they liked to consumers due to the famous films and cartoons, and not because of the designer LEGO.

Themed products had short-term success, when interest in the film disappeared, toys are no longer buying. After LEGO will invest in innovation, the company was out of business.

Moreover, the new products reduce the proportion of the original detalek LEGO constructions which also have their fans.

Since creativity and innovation have become the cause of the second fall of the company in 2003. After having hosted the popular "Star Wars" and "Harry Potter", the two main themes of the new LEGO products, sales plummeted.

Of course, the main problem of LEGO was not in innovation but in their isolation from the company's business goals. It follows from this conclusion: when innovations are getting out of control and no longer consistent with the overall strategy of the company, between business and creativity there is a crack, which leads to the inevitable losses.

A new approach to creativity and business

Briefly describe how LEGO solved its problems with sales, you get the following: they again began to think within the company.

They returned to their traditional themes such as racing cars, the police station and schools. These toys allow children to use the same Circuits over and over again.

When buying a new set of the LEGO, you can simply add it to the old and fit Circuits. This is a key moment in the LEGO marketing and what customers really like.

So, the LEGO overcome the crisis by returning to traditional Circuits Design. But before they make this decision, innovations introduced in the manufacturing process.

Unlike many companies coming up with the concept in a closed room, the LEGO company came to creativity, not only in products but also in the production process.

Business Design

LEGO - this is one of the few companies clearly understand the importance of creativity in the organization. The company has introduced a new model of design development, known as the "design for business."

This model is designed to link the innovation c business plan of the company, creativity and design - the strategy of the organization and its corporate objectives. Such an approach is firmly connects different teams, which also helps to improve the process of innovation.

A set of tools and techniques used in the 'Design for Business' can be divided into related innovations and related design. Design - is the link between innovation and creativity.

Thus, one problem has been solved LEGO due to a new, more effective communication of design innovation. But still remains another problem of the company - the gap between marketing strategy and creative team. This gap has led to the fall of the next LEGO Company in 1990.

Common Vision LEGO

"Design for Business" was part of a seven-year strategy entitled "Common Vision", launched in 2004. The new vision is to stop to position the brand as the production of creative toys, and come up with something new. the marketing department proposed the creation of a broader vision of innovation and creativity in product design.

This vision served as a guarantee that the two parties - the business and creative - will pursue the same goal, and fully understand the company's business strategy. Due to the connection of business and creative staff learned to achieve strategic objectives, using other resources of the team.

While LEGO struggled with this problem, many companies do not take into account the design and creative ideas in their business strategy. Perhaps the problem was so urgent for the LEGO, because the company is focused on originality and creativity.

a common vision of the strategy to link together business and creativity. Creatives company released from their sealed room and brought up to date about the business objectives to be achieved.

Result: LEGO continues to exist and thrive.

a common vision of the strategy is designed for 7 years, but now she had a positive impact on sales and profits. In 2006, LEGO was named the sixth-largest global manufacturer of toys with a profit of £ 717 million. In 2006 the company earned £ 123.5 million more compared to 2005, increased profit by 6.5%.

conclusion

From LEGO history can be concluded for any company associated with creativity, design and the constant need for innovation.

You can not cut the designers and creative people from the business, locking them to brainstorm and giving a presentation about the company's strategy.

A clear understanding of where the company is moving and what goals will give the creative department of the company in the right direction to work, and the company itself - a smooth development and increased profits.