JC Penny is yet another example of an established company’s failure to treat innovation differently then other business processes. In my opinion, JCP made two critical mistakes, they abandoned the customer base that made them old, but profitable. Second, they brought in high profile people that had success at Apple and Target without embracing the culture of either Apple or Target inside JCP. When organizations are attempting to shift from business to design leadership it is often untidy and failure must be embraced. In the end, JCP tried to change more aspects of their company then the company was ready to absorb. Lower prices everyday should not be hard to embrace, but when your customer base is in their 50s and older, coupons are how their shopping culture interprets a “good deal.” Finally, innovation is exciting yet rout with great risk. I believe an organization can mitigate transitional risk, but understanding your core user-base might keep an organization going in the right direction as it seeks to gain a new core customer-group.
