Reliability innovation
A Performance Innovation which alters overall reliability, including product failure rates, delivery failure rates, customer focus changes, management policy changes, or changes in responsiveness to customer and distributor problems.
(See also Customer Buying Hierarchy)
Example 1:
In 1986, American Home Products was funding research that questioned the efficacy of generics. It also ran advertisements in medical publications raising doubts about generic substitutes for Inderal. (Year 1986-SIC 2834)
Explanation: Reliability Innovation: American Home Products was doing research and advertising back up claims of its drugs' superior effectiveness.
Example 2:
There has been increased tendency for Anheuser-Busch to own more of its wholesalers. For example, an Anheuser-Busch distributor must notify Anheuser-Busch when he wants to sell his business. Anheuser-Busch must approve the purchaser and has the option to match the offer price and buy that distributor Anheuser-Busch itself. (Year 1991-SIC 2082)
Explanation: With this Reliability Innovation, Anheuser-Busch is trying to maintain or improve the quality of its distribution network.
Example 3:
Some trucking industry companies developed new measures of quality results. (Year 1996-SIC 4213)
Explanation: This Reliability Innovation increases the probability that companies will deliver a quality result for their shippers.
Example 4:
FP&L cut down the length and cost of power outages by tracking storms, in order to place repair crews in more strategic positions. (Year 1988-SIC 4911)
Explanation: This Reliability Innovation reduced the customer's cost of maintaining a consistent supply of energy.
Example 5:
Wegman's has its own egg farm, established because it could not get the quality it wanted from existing hatcheries. (Year 1990-SIC 5411)
Explanation: This Reliability Innovation reduced the likelihood that the customer would have to return the product.
Example 6:
At Huffy, workers are expected to inspect their own work and to act as quality control on the person or machine next to them in the process.
(Year 1987-SIC 3751)
Explanation: This Reliability Innovation ensures that the products coming off the line are of higher quality and will function more frequently as promised.
Example 7:
Olds will start an unusual warranty program to cover used cars, which could help dealers sell more used cars and fetch higher prices. Olds' replacement offer suggests a recognition that poor quality had driven away many customers.
(Year 1990-SIC 3711)
Explanation: This Reliability Innovation ensures the consumer that the cars will function as promised.
Example 8:
Borden will redesign its packaging. The new logo: "If it's Borden, it's got to be good."
(Year 1992-SIC 2092)
Explanation: This Reliability Innovation seeks to ensure consumers of the high quality of the company's products.
Example 9:
At one Taco Bell, drive-thru customers see a video monitor flash back a list of their orders to avoid mistakes.
(Year 1991-SIC 5812)
Explanation: This Reliability Innovation allows the customers to make sure that the product they want is the product they ordered.
Example 10:
Compaq has a new service and support program. It promises that its technical support staff will resolve 95% of all calls in under 15 minutes.
(Year 1992-SIC 3571)
Explanation: This Reliability Innovation promises the customer more effective up time with a company computer than with a competing machine.