37 Ways to Innovate – Idea 4: Low Cost

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This idea suggests making the service or product more affordable than the competitors by lowering the cost to produce the said product. It also suggests introducing new budget offers that can WOW or delight the customers.
But to make this really happen, marketing should work work closely with operations and logistics to come up with cost-effective production costs.

Operations should apply process improvement techniques such as Six Sigma for quality and innovation. Operations can also apply Value engineering (similar to service cost analysis) to come up with cost-efficient materials to create or deliver the product.

Logistics should aim for Just-in-time (JIT) service level to production operations by looking at how to make the supply chain more streamlined and low cost in order to deliver the needed materials with the right quantity, right quality at the right time.

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