Entrepreneurial Marketing

CHAPTER 9Converging Innovation and Improvement: Solution‐Centric Approach for Higher Profit Margin

When we innovate, does it always lead to improvement?

Not necessarily. In fact, it's easy for things to go astray. So much is at play when we innovate that nothing is guaranteed. It takes a lot of orchestrated effort to move the needle in improvement.

Take the case of Bytedance. Established in 2012, the company has produced so many apps that it has earned the nickname “app factory.” Among the most well‐known are TikTok and Toutiao. Its recent innovations have spurred on tremendous growth, including a 60% revenue increase in 2021.¹ That same year it was valued at more than US$425 billion.² Let's look further at how the innovations of TikTok and Toutiao have led to their significant growth.

Created in 2017, TikTok is a short‐video sharing platform. It has reached 1 billion users faster than any other social media company. TikTok's most substantial competitive advantage comes from its speed, ability, and AI technology, which together offer consumers a mix of products and services. For instance, the app features hashtags, audio and video editing, and image filters—all in one place. Previously, these elements weren't available in a single app. Users can easily grab what they need and seamlessly produce content.³

FIGURE 9.1 Innovation and improvement elements in the omnihouse model ...