Innovation at Its Best

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Innovation at Its Best
ENT-435: Intrapreneurship and Innovation
Grand Canyon University
December 1, 2012

Innovation at Its Best
The need for automobile insurance on all vehicles is not only a necessity but also the law. There are numerous drivers on the roads today that are underinsured or have no insurance to begin with. These facts can be very expensive in the event that a driver is in an automobile accident without insurance. What can be done to ensure that the problem of driving without insurance is rectified or at a minimal? How will the public benefit from investing in the solution to this problem? These are the type of questions reviewed when the Blue Ocean Strategy was chosen in the development of the Driver’s Insurance License (DIL). With the Blue Ocean Strategy process, the following subjects covered in this paper include the opportunity to ensure insurance on the driver of a vehicle and the success of the product. The impact on the result of this product, the customer value created by this product, the implementation process, and the measurement of impact that this product will have on society by using the Blue Ocean Strategy considers these. Sometimes it is necessary to reward smart behavior even when that behavior is the law anyway. Everyone needs a little incentive to do the right thing from time to time and what better way to do that than make it mandatory in order to drive certain vehicles and reward them with a tax credit for every year that they are properly insured. That was the basis of the development of the Driver’s Insurance License. The concept of the Driver’s Insurance License is to ensure that properly insured drivers with the minimum requirements of the registered State the license is in receive added benefits and discounts from the State and Government. The Blue Ocean Strategy offered several variables in the product development, production, marketing, and distribution of the Driver’s Insurance License. What would meet the needs of the consumer, the state laws, and the insurance industry? How to address this dilemma or obstacle and meet the needs of each party is main concern needs addressing?

Research and development determined after much brainstorming and many hours conducting research of various products and/or solutions, that was already on the market to achieve this endeavor or one that came close to an answer emerged on the Louisiana Department of Insurance website. Act 824 approved and taken into immediate effect on August 1, 2012, by Louisiana Legislation which relative to proof of insurance; to allow for the usage of mobile electronic devices as a method of providing proof of insurance (Representatives Cromer And James, 2012), effectively allowing drivers to display electronic proof of insurance on cell phones and tablets. According to Idaho Department of Insurance Legislation website Idaho Senate came up with a Bill that would allow for the use of electronic proof of automobile insurance effective July 1, 2012, “Senate Bill 1319 – Amends Idaho Code § 49-1232 to expressly allow an individual to produce proof of automobile insurance in an electronic format in lieu of a paper certificate”.

In order to utilize the Blue Ocean Strategy effectively to create an uncontested market space by collaborating with various state departments of transportation and insurance companies that would allow for an electronic stripe or bar embedded on the back of the State Driver’s License (Kim and Mauborgne, 2005). This partnership would bring in additional revenue to the State and the Insurance Companies would receive greater volumes of consumers. This idea would not stop with the State and Insurance Companies but would also provide incentive tax credits to consumers’ that elect to pay the additional nominal fee for this added feature to their driver’s license. Car companies that put card readers into the dashboard on their vehicles would also receive a tax credit and deductions for...
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