What Apple and Cineplex teach us about innovation

The holiday season is fast approaching and shopping to find the right gift for the ones you love is just beginning. It’s a time of increased shopping anxiety and a heightened need to get away from the madness by going to the movies. It was timely that Apple introduced new versions of its iPad, iPhone, software and computers to capitalize on consumer hunger for its products during this peak selling period. The most valued company in the world continues to prosper by introducing new innovative products every six months, well ahead of any competitor its size.

Also flexing its innovation prowess is a long-standing client Cineplex Entertainment. Its CEO, Ellis Jacob, has just been named Innovative CEO of the Year by Canadian Business magazine for his leadership in redefining the movie theatre experience. Both companies have prospered and strived during the economic downturn when most struggled to grow. Both these companies share strong similarities when it relates to the importance of innovation as a tool that drives their success.

Apple has developed innovative approaches to a variety of platforms and has become the envy of most companies. There is not a conference or presentation I have attended that did not reference Apple as the ideal role model. Cineplex redefined movie going in the ’80s by inventing the multiplex theatre, and has again reinvented the movie-going experience, allowing it to gobble up its competitors and maintain its dominate position in the movie theatre industry in Canada. Their relentless focus on innovation and redefining sleepy old industries is what sets these two firms’ innovation approaches apart.

We all know the MP3 player was well established before Apple launched its iPod product. What differentiated Apple from other MP3 manufacturers was how it engineered a holistic ecosystem that started with a new way to purchase music at 99 cents a song, providing consumers with easy access to millions of songs and in return, singlehandedly curbing the pirating of music. Through this process Apple redefined a category that had not changed in decades, moving sales from music stores to its online iTunes store, and in the process took a leadership role in the sale of music worldwide.

Cineplex has created a similar entertainment ecosystem by identifying that its true competitors are not other movie theatres but restaurants, online games, casinos, and any other venue where consumers are spending their discretionary dollars. In response to capturing a larger share of these dollars, Cineplex introduced new theatre experiences such as a mobile app that makes finding the right movie easier, a VIP program where patrons can enjoy a movie with a glass of wine and waiter service, plus a richer, more immersive, surround sound experience.

In both cases, Apple and Cineplex leverage their innovative approaches by providing services and products that answer the unmet needs of their customers. Their innovative ecosystems understand the importance of each brand’s moment of truth as part of the consumer’s path to purchase. By taking an innovative approach to each of these moments, they are able to redefine categories and earn significant market share advantage. With only one in 20 new innovative products succeeding, it’s essential to learn the importance of thinking holistically by rethinking your business model to meet the unmet needs of your consumers. When an organization clearly identifies a new white space not being served by its competitors, the odds of succeeding and breaking through increase. Innovation drives a deep craving for unique products that give us a sense of discovery and excitement. Like so many other Apple and Cineplex fans, that’s what I’ll be looking for over this holiday season.